Document:

<PAGE>

                                                                   EXHIBIT 10.11

                             AVATECH SOLUTIONS, INC.

                             2000 STOCK OPTION PLAN

         1. PURPOSE. The purpose of this plan (the "Plan") is to secure for
Avatech Solutions, Inc., a Delaware corporation (the "Company"), and its
shareholders, the benefits arising from capital stock ownership by employees,
officers, and directors of the Company, and its subsidiary corporations, who are
expected to contribute to the Company's future growth and success. Except where
the context otherwise requires, the term "Company" shall include all present and
future subsidiaries of the Company as defined in Sections 424(e) and 424(f) of
the Internal Revenue Code of 1986, as amended from time to time (the "Code").
Those provisions of the Plan which make express reference to Section 422 shall
apply only to Incentive Stock Options (as that term is defined in the Plan).

         2  TYPES OF OPTIONS AND ADMINISTRATION.

                  2.1 TYPES OF OPTIONS. Options granted pursuant to the Plan may
be either (a) incentive stock options ("Incentive Stock Options") meeting the
requirements of Section 422 of the Code; or (b) Non-Statutory Options which are
not intended to meet the requirements of Section 422 of the Code ("Non-Statutory
Options").

                  2.2. ADMINISTRATION.

                           2.2.1. The Plan will be administered by the Board of
Directors of the Company (or any committee thereof appointed pursuant to Section
2.2.2), whose construction and interpretation of the terms and provisions of the
Plan shall be final and conclusive. The Board of Directors may, in its sole
discretion, grant options to purchase shares of the Company's Common Stock
("Common Stock"), establish a vesting schedule, and issue shares upon exercise
of such options as provided in the Plan. The Board shall have authority, subject
to the express provisions of the Plan, to construe the respective option
agreements and the Plan, to prescribe, amend, and rescind rules and regulations
relating to the Plan, to determine the terms and provisions of the respective
option agreements, which need not be identical, and to make all other
determinations which are, in the judgment of the Board of Directors, necessary
or desirable for the administration of the Plan. The Board of Directors may
correct any defect, supply any omission or reconcile any inconsistency in the
Plan or in any option agreement in the manner and to the extent that it shall
deem expedient to carry the Plan into effect and it shall be the sole and final
judge of such expediency. No director or person acting pursuant to authority
delegated by the Board of Directors shall be liable for any action or
determination under the Plan made in good faith.

                                      -1-
<PAGE>

                           2.2.2. The Board of Directors may, to the full extent
permitted by or consistent with applicable laws or regulations and Section 2.2.1
of this Plan delegate any or all of its powers under the Plan to a committee
(the "Committee") appointed by the Board of Directors, and if the Committee is
so appointed all references to the Board of Directors in the Plan shall mean and
relate to such Committee.

         3. ELIGIBILITY. Options may be granted to persons who are, at the time
of grant, employees, officers, or directors of the Company; PROVIDED, HOWEVER,
that the class of employees to whom Incentive Stock Options may be granted shall
be limited to all employees of the Company. A person who has been granted an
option may, if he or she is otherwise eligible, be granted additional options if
the Board of Directors shall so determine.

         4. STOCK SUBJECT TO PLAN. Subject to adjustment as provided in Section
14 and Section 15 below, the maximum number of shares of Common Stock which may
be issued and sold under the Plan is Two Hundred Fifty Thousand (250,000) shares
of Common Stock. If an option granted under the Plan shall expire or terminate
for any reason without having been exercised in full, the unpurchased shares
subject to such option shall again be available for subsequent option grants
under the Plan. If shares issued upon exercise of an option under the Plan are
tendered to the Company in payment of the exercise price of an option granted
under the Plan, such tendered shares shall again be available for subsequent
option grants under the Plan; PROVIDED, HOWEVER, that in no event shall such
shares be made available for issuance to reporting persons or pursuant to
exercise of Incentive Stock Options.

         5. FORMS OF OPTION AGREEMENTS. As a condition to the grant of an option
under the Plan, each recipient of an option shall execute an option agreement in
such form not inconsistent with the Plan as may be approved by the Board of
Directors. Such option agreements may differ among recipients.

         6. PURCHASE PRICE.

                  6.1. GENERAL. Subject to Section 2.2.1 of this Plan, the
purchase price per share of stock deliverable upon the exercise of an option
shall be determined by the Board of Directors; PROVIDED, HOWEVER, that in the
case of an Incentive Stock Option, the exercise price shall not be less than
100% of the fair market value of such stock, as determined by the Board of
Directors, at the time of grant of such option, or less than 110% of such fair
market value in the case of options described in Section 11(b).

                  6.2. PAYMENT OF PURCHASE PRICE. Options granted under the Plan
may provide for the payment of the exercise price by delivery of cash or a check
to the order of the Company in an amount equal to the exercise price of such
options, or, to the extent provided in the applicable option agreement: (a) by
delivery to the Company of shares of Common Stock of the Company already owned
by the optionee having a fair market value equal in amount to the exercise price
of the options being exercised or (b)

                                      -2-
<PAGE>

by any other means (including, without limitation, by delivery of a promissory
note of the optionee payable on such terms as are specified by the Board of
Directors) which the Board of Directors determines are consistent with the
purpose of the Plan and with applicable laws and regulations (including, without
limitation, the provisions of Regulation T promulgated by the Federal Reserve
Board). The fair market value of any shares of the Company's Common Stock or
other non-cash consideration which may be delivered upon exercise of an option
shall be determined by the Board of Directors.

         7. OPTION PERIOD. Each option and all rights thereunder shall expire on
such date as shall be set forth in the applicable option agreement, except that,
in the case of an Incentive Stock Option, such date shall not be later than ten
(10) years after the date on which the option is granted and, in all cases,
options shall be subject to earlier termination as provided in the Plan.

         8. EXERCISE OF OPTIONS. Each option granted under the Plan shall be
exercisable in three (3) equal annual installments from the date of grant;
provided, however, that the Board of Directors may, in individual cases, elect
to grant an option that shall be exercisable in full or in installments at such
time or times and during such period as shall be set forth in the agreement
evidencing such option, subject to the provisions of the Plan.

         9. NONTRANSFERABILITY OF OPTIONS. Options shall not be assignable or
transferable by the person to whom they are granted, either voluntarily or by
operation of law, except by will or the laws of descent and distribution, and,
during the life of the optionee, shall be exercisable only by the optionee.

         10. EFFECT OF TERMINATION OF EMPLOYMENT OR OTHER RELATIONSHIP. Except
as provided in Section 11(d) with respect to Incentive Stock Options, and
subject to the provisions of the Plan, the Board of Directors shall determine
the period of time during which an optionee may exercise an option following (a)
the termination of the optionee's employment or other relationship with the
Company (and such period may end on the day prior to such termination of
employment) or (b) the death or disability of the optionee. Such periods shall
be set forth in the agreement evidencing such option.

         11. INCENTIVE STOCK OPTIONS. Options granted under the Plan that are
intended to be Incentive Stock Options shall be subject to the following
additional terms and conditions:

                  (a) EXPRESS DESIGNATION. All Incentive Stock Options granted
under the Plan shall, at the time of grant, be specifically designated as such
in the option agreement covering such Incentive Stock Options.

                  (b) 10% SHAREHOLDER. If any employee to whom an Incentive
Stock Option is to be granted under the Plan is, at the time of the grant of
such option, the owner of stock possessing more than 10% of the total combined
voting power of all

                                      -3-
<PAGE>

classes of stock of the Company (after taking into account the attribution of
stock ownership rules of Section 424(d) of the Code), then the following special
provisions shall be applicable to the Incentive Stock Option granted to such
individual:

                           (i) The purchase price per share of the Common Stock
subject to such Incentive Stock Option shall not be less than 110% of the fair
market value of one share of Common Stock at the time of grant; and

                           (ii) The option exercise period shall not exceed five
years from the date of grant.

                  (c) DOLLAR LIMITATION. For so long as the Code shall so
provide, options granted to any employee under the Plan (and any other incentive
stock option plans of the Company) that are intended to constitute Incentive
Stock Options shall not constitute Incentive Stock Options to the extent that
such options, in the aggregate, become exercisable for the first time in any one
calendar year for shares of Common Stock with an aggregate fair market value
(determined as of the respective date or dates of grant) of more than $100,000.

                  (d) TERMINATION OF EMPLOYMENT. DEATH OR DISABILITY. No
Incentive Stock Option may be exercised unless, at the time of such exercise,
the optionee is, and has been continuously since the date of grant of his or her
option, employed by the Company, except that:

                           (i) an Incentive Stock Option may be exercised within
the period of three months after the date the optionee ceases to be an employee
of the Company (or within such lesser period as may be specified in the
applicable option agreement); PROVIDED, HOWEVER, that the agreement with respect
to such option may designate a longer exercise period, PROVIDED FURTHER that the
exercise after such three-month period shall be treated as the exercise of a
non-statutory option under the Plan;

                           (ii) if the optionee dies while in the employ of the
Company, or within three months after the optionee ceases to be such an
employee, the Incentive Stock Option may be exercised by the person to whom it
is transferred by will or the laws of descent and distribution within the period
of three months after the date of death (or within such lesser period as may be
specified in the applicable option agreement); and

                           (iii) if the optionee becomes disabled (within the
meaning of Section 22(e)(3) of the Code or any successor provision thereto)
while in the employ of the Company, the Incentive Stock Option may be exercised
within the period of one year after the date the optionee ceases to be such an
employee because of such disability (or within such lesser period as may be
specified in the applicable option agreement).

                                      -4-
<PAGE>

         For all purposes of the Plan and any option granted hereunder,
"employment" shall be defined in accordance with the provisions of Section
1.421-7(h) of the Income Tax Regulations (or any successor regulations).
Notwithstanding the foregoing provisions, no Incentive Stock Option may be
exercised after its expiration date.

         12. ADDITIONAL PROVISIONS.

                  12.1. INVESTMENT REPRESENTATIONS. The Company can require any
person to whom an option is granted, as a condition of exercising such option,
to give written assurances in substance and form satisfactory to the Company to
the effect that such person is acquiring the Common Stock subject to the option
for his or her own account for investment and not with any present intention of
selling or otherwise distributing the same, and to such other effects as the
Company deems necessary or appropriate in order to comply with federal and
applicable state securities laws, or with covenants or representations made by
the Company in connection with any public offering of its Common Stock.

                  12.2. COMPLIANCE WITH SECURITIES LAWS. Each option shall be
subject to the requirement that if, at any time, counsel to the Company shall
determine that the listing, registration, or qualification of the shares subject
to such option upon any securities exchange or under any state or federal law,
or the consent or approval of any governmental or regulatory body, or that the
disclosure of non-public information or the satisfaction of any other condition
is necessary as a condition of or in connection with, the issuance or purchase
of shares thereunder, such option may not be exercised, in whole or in part,
unless such listing, registration, qualification, consent, or approval, or
satisfaction of such condition shall have been effected or obtained upon
conditions acceptable to the Board of Directors. Nothing herein shall be deemed
to require the Company to apply for or to obtain such listing, registration, or
qualification, or to satisfy such condition.

                  12.3. VIOLATIONS OF LAW. The Company shall not be required to
sell or issue any shares of stock under any option if the sale or issuance of
such shares would constitute a violation by the individual exercising the option
or the Company of any provision of any law or regulation of any governmental
authority, including without limitation any federal or state securities laws or
regulations. Specifically in connection with the Securities Act of 1933, as
amended (the "Act") the Company shall not be required to sell or issue such
shares unless the Company has received evidence satisfactory to it that the
holder of such option may acquire such shares pursuant to an exemption from
registration under such Act, and the shares of stock to be issued upon the
exercise of all or any portion of any option granted under the Plan shall be
issued on the condition that the optionee represents that the purchase of stock
upon such exercise shall be for investment purposes and not with a view to
resale, distribution, offering, transferring, mortgaging, pledging,
hypothecating or otherwise disposing of any such stock under the circumstances
which would constitute a public offering or

                                      -5-
<PAGE>

distribution under the Act or the securities laws of any state. No shares of
stock shall be issued upon the exercise of any option unless the Company shall
have received from the optionee a written statement satisfactory to legal
counsel for the Company containing the above representations, stating that
certificates representing such shares may bear a legend restricting their
transfer and stating that the Company's transfer agent or agents may be given
instructions to stop transfer of any certificate bearing such legend. Such
representation and restrictions provided for herein shall not be required if (i)
an effective registration statement for such shares under the Act and any
applicable state laws has been filed with the Securities and Exchange Commission
and with the appropriate agency or commission of any state whose laws apply to
the transaction, or (ii) an opinion of counsel satisfactory to the Company has
been delivered to the Company to the effect that registration is not required
under the Act or under the applicable securities laws of any state. Any
determination by the Committee regarding the foregoing shall be final, binding,
and conclusive. The Company shall not be obligated to take any affirmative
action in order to cause the exercise of an option or the issuance of shares
pursuant thereto to comply with any law or regulation or any governmental
authority.

                  12.4 RESTRICTION ON TRANSFER OF STOCK The certificate or
certificates for Common Stock issued upon the exercise of an option shall bear
the following legend:

                           THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN
                           REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
                           AMENDED (THE "ACT") AND MAY NOT BE OFFERED, SOLD OR
                           OTHERWISE TRANSFERRED, ASSIGNED, PLEDGED OR
                           HYPOTHECATED UNLESS AND UNTIL REGISTERED UNDER THE
                           ACT OR UNLESS THE COMPANY HAS RECEIVED AN OPINION OF
                           COUNSEL SATISFACTORY TO THE COMPANY AND ITS COUNSEL
                           THAT SUCH REGISTRATION IS NOT REQUIRED.

                           THE SHARES OF STOCK REPRESENTED BY THIS CERTIFICATE
                           ARE SUBJECT TO CERTAIN RESTRICTIONS ON TRANSFER
                           CONTAINED IN THE COMPANY'S 2000 STOCK OPTION PLAN AND
                           IN AN OPTION AGREEMENT, A COPY OF WHICH WILL BE
                           FURNISHED UPON REQUEST BY THE ISSUER. UNDER THE
                           PROVISIONS OF THE PLAN AND THE AGREEMENT, THE HOLDER
                           OF THE SHARES OF STOCK REPRESENTED BY THIS
                           CERTIFICATE HAS NO RIGHT TO REQUIRE THE COMPANY TO

                                      -6-
<PAGE>

                           REGISTER THE SECURITIES REPRESENTED HEREBY.

         13. RIGHTS AS A SHAREHOLDER. The holder of an option shall have no
rights as a shareholder with respect to any shares covered by the option
(including, without limitation any rights to receive dividends or non-cash
distributions with respect to such shares) or to inspect books and records until
the date of issue of a stock certificate to him or her for such shares. No
adjustment shall be made for dividends or other rights for which the record date
is prior to the date such stock certificate is issued.

         14. ADJUSTMENT PROVISIONS FOR RECAPITALIZATIONS AND RELATED
TRANSACTIONS.

                  14.1. GENERAL. If, through or as a result of any merger,
consolidation, sale of all or substantially all of the assets of the Company,
reorganization, recapitalization, reclassification, stock dividend, stock split,
reverse stock split, or other similar transaction, (a) the outstanding shares of
Common Stock are increased, decreased, or exchanged for a different number or
kind of shares or other securities of the Company or (b) additional shares or
new or different shares or other securities of the Company or other non-cash
assets are distributed with respect to such shares of Common Stock or other
securities, an appropriate and proportionate adjustment may be made in (i) the
maximum number and kinds of shares reserved for issuance under the Plan, (ii)
the number and kind of shares or other securities subject to any then
outstanding options under the Plan, and (iii) the price for each share subject
to any then outstanding options under the Plan, without changing the aggregate
purchase price as to which such options remain exercisable. Notwithstanding the
foregoing, no adjustment shall be made pursuant to this Section 14 if such
adjustment would cause the Plan to fail to comply with Section 422 of the Code.

                  14.2. BOARD AUTHORITY TO MAKE ADJUSTMENTS. Any adjustments
under this Section 14 will be made by the Board of Directors, whose
determination as to what adjustments, if any, will be made and the extent
thereof will be final, binding and conclusive. No fractional shares will be
issued under the Plan on account of any such adjustments.

         15. MERGER, CONSOLIDATION, ASSET SALE, LIQUIDATION. ETC.

                  15.1. GENERAL. In the event of a consolidation or merger or
sale of all or substantially all of the assets of the Company in which
outstanding shares of Common Stock are exchanged for securities, cash, or other
property of any other corporation or business entity or in the event of a
liquidation of the Company, the Board of Directors of the Company, or the board
of directors of any corporation assuming the obligations of the Company, may, in
its discretion, take any one or more of the following actions, as to outstanding
options: (a) provide that such options shall be assumed, or equivalent options
shall be substituted, by the acquiring or succeeding corporation (or an
affiliate thereof), PROVIDED that any such options substituted for Incentive
Stock Options shall

                                      -7-
<PAGE>

meet the requirements of Section 424(a) of the Code, (b) upon written notice to
the optionees, provide that all unexercised options will terminate immediately
prior to the consummation of such transaction unless exercised by the optionee
within a specified period following the date of such notice, (c) in the event of
a merger under the terms of which holders of the Common Stock of the Company
will receive upon consummation thereof a cash payment for each share surrendered
in the merger (the "Merger Price"), make or provide for a cash payment to the
optionees equal to the difference between (i) the Merger Price times the number
of shares of Common Stock subject to such outstanding options (to the extent
then exercisable at prices not in excess of the Merger Price) and (ii) the
aggregate exercise price of all such outstanding options in exchange for the
termination of such options, and (d) provide that all or any outstanding options
shall become exercisable in full immediately prior to such event.

                  15.2. SUBSTITUTE OPTIONS. The Company may grant options under
the Plan in substitution for options held by employees of another corporation
who become employees of the Company, or a subsidiary of the Company, as the
result of a merger or consolidation of the employing corporation with the
Company or a subsidiary of the Company, or as a result of the acquisition by the
Company, or one of its subsidiaries, of property or stock of the employing
corporation. The Company may direct that substitute options be granted on such
terms and conditions as the Board of Directors considers appropriate in the
circumstances.

         16. NO SPECIAL EMPLOYMENT RIGHT. Nothing contained in the Plan or in
any option shall confer upon any optionee any right with respect to the
continuation of his or her employment by the Company or interfere in any way
with the right of the Company at any time to terminate such employment "at will"
or pursuant to the terms of any applicable employment agreement or to increase
or decrease the compensation of the optionee.

         17. OTHER EMPLOYEE BENEFITS. Except as to plans which by their terms
include such amounts as compensation, the amount of any compensation deemed to
be received by an employee as a result of the exercise of an option or the sale
of shares received upon such exercise will not constitute compensation with
respect to which any other employee benefits of such employee are determined,
including, without limitation, benefits under any bonus, pension,
profit-sharing, life insurance, or salary continuation plan, except as otherwise
specifically determined by the Board of Directors.

         18. AMENDMENT OF THE PLAN.

                  18.1. PROCESS TO AMEND PLAN. The Board of Directors may at any
time, and from time to time, modify or amend the Plan in any respect, except
that if at any time the approval of the shareholders of the Company is required
under Section 422 of the Code or any successor provision with respect to
Incentive Stock Options, or under other applicable law, the Board of Directors
may not effect such modification or amendment without such approval.

                                      -8-
<PAGE>

                  18.2. EFFECT OF AMENDMENT AND CONSENT OF OPTIONEES. The
termination or any modification or amendment of the Plan shall not, without the
consent of an optionee, affect his or her rights under an option previously
granted to him or her. With the consent of the optionee affected, the Board of
Directors may amend outstanding option agreements in a manner not inconsistent
with the Plan. The Board of Directors shall have the right to amend or modify
the terms and provisions of the Plan and of any outstanding Incentive Stock
Options granted under the Plan to the extent necessary to qualify any or all
such options for such favorable federal income tax treatment (including deferral
of taxation upon exercise) as may be afforded incentive stock options under
Section 422 of the Code.

         19. WITHHOLDING. The Company shall have the right to deduct from
payments of any kind otherwise due to the optionee any federal, state, or local
taxes of any kind required by law to be withheld with respect to any shares
issued upon exercise of options under the Plan. Subject to the prior approval of
the Company, which may be withheld by the Company in its sole discretion, the
optionee may elect to satisfy such obligations, in whole or in part, (a) by
causing the Company to withhold shares of Common Stock otherwise issuable
pursuant to the exercise of an option or (b) by delivering to the Company shares
of Common Stock already owned by the optionee. The shares so delivered or
withheld shall have a fair market value equal to such withholding obligation.
The fair market value of the shares used to satisfy such withholding obligation
shall be determined by the Company as of the date that the amount of tax to be
withheld is to be determined. Any optionee who has made an election pursuant to
this Section 19 may only satisfy his or her withholding obligation with shares
of Common Stock which are not subject to any repurchase, forfeiture, unfulfilled
vesting or other similar requirements.

         20. CANCELLATION AND NEW GRANT OF OPTIONS, ETC. The Board of Directors
shall have the authority to effect, at any time and from time to time, with the
consent of any affected optionees, (a) the cancellation of any or all
outstanding options under the Plan and the grant in substitution therefor of new
options under the Plan covering the same or different numbers of shares of
Common Stock and having an option exercise price per share which may be lower or
higher than the exercise price per share of the canceled options or (b) the
amendment of the terms of any and all outstanding options under the Plan to
provide an option exercise price per share which is higher or lower than the
then-current exercise price per share of such outstanding options.

         21. EFFECTIVE DATE AND DURATION OF THE PLAN.

                  21.1 EFFECTIVE DATE. The Plan shall become effective when
adopted by the Board of Directors, but no option granted under the Plan shall
become exercisable unless and until the Plan shall have been approved by the
Company's shareholders. If such shareholder approval is not obtained within
twelve months after the date of the Board's adoption of the Plan, i.e., on or
before November 9, 2000, options previously

                                      -9-
<PAGE>

granted under the Plan shall not vest and shall terminate and no options shall
be granted thereafter. Amendments to the Plan not requiring shareholder approval
shall become effective when adopted by the Board of Directors; amendments
requiring shareholder approval (as provided in Section 18) shall become
effective when adopted by the Board of Directors, but no option granted after
the date of such amendment shall become exercisable (to the extent that such
amendment to the Plan was required to enable the Company to grant such option to
a particular person) unless and until such amendment shall have been approved by
the Company's shareholders. If such shareholder approval is not obtained within
twelve months of the Board's adoption of such amendment, any options granted on
or after the date of such amendment shall terminate to the extent that such
amendment was required to enable the Company to grant such option to a
particular optionee. Subject to this limitation, options may be granted under
the Plan at any time after the effective date and before the date fixed for
termination of the Plan.

                  21.2. TERMINATION. The Plan shall terminate upon the close of
business on the day next preceding the tenth anniversary of the date of its
adoption by the Board of Directors, i.e., on November 10, 2009. Options
outstanding on such date shall continue to have force and effect in accordance
with the provisions of the instruments evidencing such options.

         22. PROVISION FOR FOREIGN PARTICIPANTS. The Board of Directors may,
without amending the Plan, modify awards or options granted to participants who
are foreign nationals or employed outside the United States to recognize
differences in laws, rules, regulations or customs of such foreign jurisdictions
with respect to tax, securities, currency, employee benefit, or other matters.

Adopted by the Board of Directors on November 9, 1999.

                                      -10-<PAGE>

                                                                   EXHIBIT 10.12

                             AVATECH SOLUTIONS, INC.

                             STOCKHOLDERS' AGREEMENT

         THIS STOCKHOLDERS' AGREEMENT (the "Agreement") is made as of the first
day of April, 1998, by and among those shareholders whose names are set forth as
signatories to this Agreement (collectively referred to hereinafter as the
"Stockholders"), and AVATECH SOLUTIONS, INC., a Delaware corporation (the
"Corporation" or "Avatech").

                              EXPLANATORY STATEMENT

         A. The parties hereto believe that it is desirable and in their mutual
best interests to control the ownership of the Common Stock and that the
execution of this Agreement will help facilitate the continuous, harmonious and
effective management of the affairs, policies, and operations of the
Corporation.

         B. It is the intention of the parties, by executing this Agreement, to
restrict the transfer of all shares of Common Stock and to provide a market for
the sale of Common Stock shares upon the occurrence of certain events as
provided herein.

         C. Certain of the Stockholders, as listed in ATTACHMENT A attached
hereto and incorporated by reference herein, are employees of the Corporation.
The Corporation recognizes that the loss of the services of any employed
Stockholder would constitute a serious impairment to the effective conduct of
the Corporation's business, and hopes that by executing this Agreement, each
employed Stockholder will be induced to remain in the Corporation's employ.

                                    AGREEMENT

         NOW, THEREFORE, in consideration of the matters set forth in this
Explanatory Statement and the mutual covenants, promises, agreements,
representations and warranties of the parties hereto, the parties hereto do
hereby covenant, promise, agree, represent, and warrant as follows:

         1. DEFINITIONS. Capitalized words and phrases used in this Agreement
have the following meanings:

                  1.1. "Accountants" means the independent certified public
accountants examining or reviewing the books and accounts of the Corporation at
the relevant time; if there be none, then the independent certified public
accountants who last performed such services for the Corporation.

                  1.2. "Act" means the Securities Act of 1933, as amended.
<PAGE>

                  1.3. "Agreed Value" means the per share dollar amount last
established by the Board of Directors of Avatech for purposes of the 1998
Employee Stock Purchase Plan ("ESPP"). Notwithstanding anything contained in
this Agreement to the contrary, if the date of the most recent determination of
Agreed Value is more than eighteen (18) months prior to the date on which the
death of the Decedent (as such term is defined below) occurred, the Disability
occurred, the Transfer Notice was received, the Involuntary Transfer Notice was
received, or the Termination occurred, Agreed Value shall be determined by the
Board of Directors, or, if the Board of Directors so chooses, by a valuator
retained by the Corporation. Notwithstanding anything contained in this
Agreement to the contrary, if the shares were purchased by an employee pursuant
to the ESPP within six (6) months of the date on which the death of the Decedent
(as such term is defined below) occurred, the Disability occurred, the Transfer
Notice was received, or the Involuntary Transfer Notice was received, or the
Termination occurred, Agreed Value shall be the ESPP Value.

                  1.4. "Agreement" means this Stockholders' Agreement, as
amended from time to time.

                  1.5. "Book Value" means the dollar amount value, computed on
the accrual basis of accounting, and in accordance with generally accepted
accounting principles, of the net aggregate stockholders' equity of the
Corporation, divided by the total number of shares of Common Stock outstanding
on the date of the computation (as hereinafter provided). Notwithstanding
anything contained in this Agreement to the contrary, the computation of Book
Value shall be subject to the following provisions:

                           1.5.1. In no event shall the determination of Book
         Value include any proceeds, collected or collectible by the
         Corporation, under any policy or policies of life or disability
         insurance insuring the life or disability of a Stockholder as a result
         of the death or disability of a Stockholder.

                           1.5.2. No additional allowance of any kind shall be
         made for the goodwill, trade names or any other intangible asset or
         asses (the "Intangible Assets") of the Corporation other than the
         aggregate dollar amount for any of such Intangible Assets appearing on
         the most recent balance sheet of the Corporation prior to the date set
         forth in Section 1.5.3 for determining Book Value.

                           1.5.3. Book Value shall be computed and determined as
         of the end of the last full year immediately preceding the year in
         which either the death of the Decedent occurred, the Disability
         occurred, the Transfer Notice was received, the Involuntary Transfer
         Notice was received, or the Termination occurred.

                           1.5.4. In no event shall any reserve for contingent
         liabilities, in excess of the amount of such reserve appearing on the
         most recent balance sheet of the Corporation prior to the date set
         forth in Section 1.5.3 for determining Book Value, be treated as a
         liability for purposes of determining Book Value.

                           1.5.5. In no event shall any adjustment be made to
         Book Value as a

<PAGE>

         result of any event occurring subsequent to the valuation date set
         forth in Section 1.5.3, whether or not that event constitutes an
         adjustment to the federal or state income tax liability of the
         Corporation.

                           1.5.6. Book Value shall be determined by the
         Accountants. The determination by the Accountants shall, for purposes
         of this Agreement, be final, conclusive and binding upon each of the
         parties hereto.

                           1.5.7. Anything contained in this Agreement to the
         contrary notwithstanding, Book Value shall be calculated for the
         purposes of this Agreement on an accrual basis even if the Corporation
         shall have utilized different accounting principles for any prior
         period.

                  1.6. "Closing" means the Decedent Closing Date, the Transfer
Closing Date, the Involuntary Transfer Closing Date, the Disability Closing
Date, or the Termination Closing Date, where there is no distinction among them
in the context.

                  1.7. "Code" means the Internal Revenue Code of 1986, as
amended from time to time (or any corresponding provisions of any succeeding
law).

                  1.8.  "Common Stock" means the Corporation's ten million,
(10,000,000) authorized shares of common stock, with par value of $.01 per
share.

                  1.9.  "Corporation" means Avatech Solutions, Inc., a Delaware
corporation.

                  1.10. "Days" means all calendar days, inclusive of Saturdays,
Sundays and days which are legal holidays under the laws of the United States or
the State.

                  1.11. "Disability" means, with respect to a Stockholder who is
an employee of the Corporation or its subsidiaries at the time the Disability
occurs, the first to occur of:

                           1.11.1. A Stockholder being declared legally
         incompetent under the laws of the State, in which event the date of the
         Disability shall be deemed to be the date of such declaration.

                           1.11.2. The Corporation receiving a written opinion
         from a physician designated by the Corporation to the effect that a
         Stockholder has incurred a mental or physical condition that can
         reasonably be expected to prevent such Stockholder from carrying out
         the Stockholder's material duties for the Corporation for a period of
         six months or longer from the date of such opinion, in which event the
         date of the Disability shall be deemed to be the date of the
         physician's written opinion; each Stockholder hereby covenants and
         agrees to cooperate with any physician so designated by the Corporation
         to determine whether such Stockholder has suffered a Disability,
         provided that any physician so designated shall consult with any
         physician designated by, or on behalf of, such Stockholder.

<PAGE>

                           1.11.3. The Corporation being entitled to receive a
         payment under any Disability Policy with respect to a Stockholder, in
         which event the date of the Disability shall be deemed to be the date
         on which the Stockholder was first deemed disabled pursuant to the
         Disability Policy.

                           1.11.4. A Stockholder being deemed disabled under the
         provisions of the Social Security Act, 42 U.S.C. Section 416, in which
         event the date of the Disability shall be deemed to be the first date
         on which the Stockholder satisfied the requirements contained therein.

                  1.12 "Disability Policy" means any disability insurance policy
insuring against the Disability of a Stockholder and set forth on the Disability
Insurance Schedule attached hereto as Schedule 1.12.

                  1.13. "ESPP Value" means the actual amount paid by the
employee per share for his or her shares which actual amount is 85% of the fair
market value at the time of purchase.

                  1.14. "Event of Bankruptcy" means with respect to any
Stockholder, any of the following:

                           1.14.1. Filing a voluntary petition in bankruptcy or
         for reorganization or for the adoption of an arrangement under the
         Bankruptcy Code (as now or in the future amended) or an admission
         seeking the relief therein provided.

                           1.14.2. Making a general assignment for the benefit
         of creditors.

                           1.14.3. Consenting to the appointment of a receiver
         for all or substantially all of a Stockholder's property.

                           1.14.4. In the case of the filing of an involuntary
         petition in bankruptcy, an entry of an order for relief.

                           1.14.5. The entry of a court order appointing a
         receiver or trustee for all or a substantial part of a Stockholder's
         property, without the Stockholder's consent.

                           1.14.6. The assumption of custody or sequestration by
         a court of competent jurisdiction of all or substantially all of a
         Stockholder's property.

                  1.15. "Involuntary Transfer" means any nonvolitional Transfer
of Common Stock whatsoever and shall be deemed to occur if:

                           1.15.1. A Stockholder is subject to an Event of
         Bankruptcy.

                           1.15.2. A Stockholder's shares of Common Stock are to
         be Transferred pursuant to: (i) a divorce or separation decree,
         property settlement or any other form of

<PAGE>

         judicially approved marital arrangement; (ii) the foreclosure of any
         lien or other security interest; (iii) a judicial sale; or (iv)
         otherwise by operation of law.

                  1.16. "Life Policy" means any life insurance policy insuring
the life of a Stockholder and set forth on the Life Insurance Schedule attached
hereto as Schedule 1.16.

                  1.17. "Termination" means the termination of a Stockholder's
employment with the Corporation for any reason whatsoever other than death or
Disability, the Stockholder with respect to whom a Termination occurs is
referred to as the "Terminated Stockholder." It is understood that the
Termination provisions hereof shall not be applicable to non-employee
stockholders.

                  1.18. "Note" means the Corporation's unsecured non-negotiable
promissory note in the form attached hereto as Exhibit 1.18.

                  1.19. "Person" means any individual, partnership, corporation,
trust or other entity.

                  1.20. "Security" has the meaning set forth in the Act.

                  1.21. "Seller" means the personal representatives of the
Decedent, the Disabled Stockholder, the Transferor, the Involuntary Transferor,
the Terminated Stockholder or the Terminated Stockholder, where there is no
distinction among them in the context.

                  1.22. "Shares" means the Decedent Shares, the Transferor
Shares, the Involuntary Transferor Shares, the Disability Shares, the
Termination Shares or the Termination Shares, where there is no distinction
among them in the context.

                  1.23. "State" means the State of Delaware.

                  1.24. "State Acts" means the securities laws of any state or
the District of Columbia, as amended from time to time.

                  1.25. "Stockholder" means a Person owning of record any shares
of Common Stock and executing this Agreement or a counterpart thereof.

                  1.26. "Transfer" means any sale, hypothecation, pledge,
assignment or other transfer, be it voluntary or involuntary to a Stockholder or
third person, inter vivos, testamentary, by operation of the laws of devise and
descent or any other laws, and, when used as a verb, to voluntarily or
involuntarily, to a Stockholder or third person, inter vivos, testamentary, by
operation of the laws of devise and descent or any other laws, sell,
hypothecate, pledge, assign or otherwise transfer.

                  1.27. "Voluntary Transfer" means any Transfer of Common Stock
other than an Involuntary Transfer.

<PAGE>

         2. EXPLANATORY STATEMENT: RESTRICTIONS ON TRANSFER.

                  2.1. The matters set forth in the Explanatory Statement are
incorporated by reference in, and made a substantive part of, this Agreement.

                  2.2. Each Stockholder covenants, promises and agrees that he
shall not Transfer all, any portion of, or any interest or rights in, the shares
of Common Stock owned of record or beneficially by such Stockholder except
pursuant to the terms and provisions of this Agreement. Each Stockholder hereby
acknowledges the reasonableness of the restrictions on Transfers imposed by this
Agreement in view of the purposes of the Corporation and the relationships of
the Stockholders.

                  2.3. Strict compliance shall be required with each and every
provision of this Agreement and particularly with the procedures set forth
herein with respect to any Transfer of any shares of Common Stock. It is
understood and agreed by the parties hereto that no Stockholder shall have the
right or power to Transfer any shares of Common Stock except in strict
compliance with the procedures set forth in this Agreement. The attempted
Transfer of any shares of Common Stock by any Stockholder shall be deemed
invalid, null and void, and of no force or effect, and the transferee of any
such shares shall not be entitled to vote such shares, receive dividends on such
shares or have any other rights in and with respect to such shares unless such
Transfer is made in conformance with and pursuant to the terms of this
Agreement.

         3. ESTATE AND GIFT TAX PLANNING EXCEPTION. Notwithstanding anything in
this Agreement to the contrary, any Stockholder may Transfer any or all of his
Common Stock to a family member (or a trust for the benefit of such persons)
pursuant to this Section. (For the purposes of this exception, a "family member"
is defined as any husband, wife, son, daughter, grandson, or granddaughter of
the Stockholder). Upon such Transfer, the family member shall hold the shares of
Common Stock received in such Transfer subject to the terms of this Agreement,
and shall execute, seal and deliver a document substantially in the form of
ATTACHMENT B attached hereto, binding him to the terms and conditions of this
Agreement as an additional Stockholder party.

         4. DEATH OF A STOCKHOLDER.

                  4.1. Upon the death of a Stockholder (the "Decedent"), the
Decedent's personal representatives (the "Representatives") shall have the
option to retain ownership of the shares or sell all of the shares of Common
Stock owned of record and beneficially by the Decedent at the time of the
Decedent's death (the "Decedent Shares") to the Corporation or other
Stockholders in accordance with this Agreement. In the event that the
Representatives desire to sell the shares, Representatives shall first provide
written notice to the Corporation and the Corporation shall have the option, but
not the obligation, to purchase the shares. In the event that the Corporation
elects to purchase the shares, the Corporation shall, by written notice
addressed to the Representatives, fix a closing date (the "Decedent Closing
Date") for such purchase. The Decedent Closing Date shall be neither earlier
than ninety (90) Days after the Representatives' written notice is received by
the Corporation. If the Corporation elects to purchase the Decedent

<PAGE>

Shares, the Corporation shall purchase the Decedent Shares on the Decedent
Closing Date at a price per share (the "Decedent Purchase Price") which shall be
equal to Agreed Value.

                  4.2. In the event that a Life Policy exists on the life of the
Decedent Stockholder, the dollar amount of the Decedent Purchase Price
multiplied by the number of Decedent Shares (the "Aggregate Decedent Purchase
Price") shall be paid in cash on the Decedent Closing Date to the extent of the
dollar amount of the net (i.e., after tax, including by way of example, any
alternative minimum tax liability imposed on the Corporation by virtue of its
receipt of such proceeds) cash proceeds received by the Corporation under the
Life Policy insuring the life of the Decedent (the "Net Life Insurance
Proceeds"). To the extent that the Net Life Insurance proceeds exceed the
Aggregate Decedent Purchase Price (the "Excess Insurance Proceeds"), the Excess
Insurance Proceeds shall belong to the Corporation and neither the Decedent nor
the Decedent's personal representatives shall have any right, title or interest
in or to the Excess Insurance Proceeds. In the event that the Aggregate Decedent
Purchase Price shall exceed the Net Life Insurance Proceeds (the "Decedent
Purchase Price Cash Shortfall"), the Corporation shall have the right to either:

                           4.2.1. Pay the Decedent Purchase Price Cash Shortfall
         in cash on the Decedent Closing Date; or

                           4.2.2. Elect prior to or on the Decedent Closing Date
         to pay the Decedent Purchase Price Cash Shortfall in installments as
         provided in Section 9 of this Agreement.

                  4.3 If the Corporation fails to exercise its option to
purchase the Decedent Shares, the Representatives shall continue to hold the
Decedent Shares subject to all of the terms and conditions of this Agreement.

         5. VOLUNTARY TRANSFER OF STOCK.

                  5.1. Subject to the restrictions on transferability imposed by
the Act and State Acts, Stockholder (individually, a "Transferor") shall be
permitted to Voluntarily Transfer all of the shares of Common Stock owned of
record and beneficially by the Transferor (the "Transferor Shares") to any other
Person (a "Transferee"), pursuant to a bona fide written offer (the "Transferee
Offer") by such Transferee to purchase all, but not less than all, of the
Transferor Shares for a purchase price denominated and payable in United States
dollars, in accordance with the provisions of this Section 5 of this Agreement.

                  5.2. Prior to any Voluntary Transfer of the Transferor Shares,
the Transferor shall first give the Corporation written notice (the "Transfer
Notice"). The Transfer Notice shall contain each of the following:

                           5.2.1. The identity of the Transferee.

                           5.2.2. A true, correct and complete copy of the
         Transferee Offer.

<PAGE>

                           5.2.3. An offer (the "Offer") by the Transferor to
         sell the Transferor Shares to the Corporation for a price per share
         (the "Transfer Purchase Price") equal to the lesser of Agreed Value or
         the per share price contained in the Transferee Offer.

                  5.3. The Offer shall be and remain irrevocable for a period
(the "Offer Period") ending at 11:59 P.M., local time at the Corporation's
principal office, on the ninetieth (90th) Day following the date the Transfer
Notice was received by the Corporation. At any time during the Offer Period, the
Corporation may accept the Offer by giving written notice to the Transferor of
such acceptance (the "Offeree Notice"). The Transferor shall not cast a vote as
a stockholder or as a director on the question of whether the Corporation shall
accept the Offer. In the event that the Offer is accepted by the Corporation,
the Offeree Notice shall fix a closing date (the "Transfer Closing Date") for
such purchase which shall be neither earlier than ten (10) nor later than ninety
(90) Days after the expiration of the Offer Period.

                  5.4. In the event that the Offer is accepted by the
Corporation, the dollar amount of the Transfer Purchase Price multiplied by the
number of Transferor Shares (the "Aggregate Transfer Purchase Price") shall be
paid in cash on the Transfer Closing Date unless the Corporation shall elect
prior to or on the Transfer Closing Date to pay the Aggregate Transfer Purchase
Price in installments pursuant to the provisions of Section 9 of this Agreement.

                  5.5. If the Corporation shall reject the Offer or fail to
accept the Offer (within the time and in the manner specified in this Section 5
of this Agreement), then the Transferor shall be free for a period (the "Free
Transfer Period") of thirty (30) Days from the expiration of the Offer Period to
Transfer the Transferor Shares to the Transferee, for the same or greater price
and on the same terms and conditions as set forth in the Transfer Notice. Such
Transfer shall be: (i) subject to any additional restrictions on Transfers that
may be imposed by this Agreement, by any other agreement between all of the
parties hereto, by statute, law, ordinance, rule or regulation or by the Charter
or By-Laws of the Corporation; (ii) permitted, provided that the purchase of the
Transferor Shares will not result in the imposition of a personal holding
company tax or other similar Federal or state punitive tax on the Corporation;
and (iii) permitted, provided that the Transferee and, if the Transferee is
married the spouse of the Transferee, shall execute, seal and deliver a document
substantially in the form of ATTACHMENT B attached hereto (the additional
requirements set forth in clauses (i)--(iii) of this sentence are referred to
collectively as the "Additional Restrictions"). If the Transferor does not
Transfer the Transferor Shares within the Free Transfer Period, the Transferor's
right to Transfer the Transferor Shares pursuant to this Section 5 of this
Agreement shall cease and terminate.

                  5.6. Any Transfer by a Transferor after the last day of the
Free Transfer Period or made without strict compliance with the terms,
provisions and conditions of this Section 5 of this Agreement and the other
terms, provisions and conditions of this Agreement shall be absolutely null and
void.

                  5.7. In the event that the Corporation elects to accept the
Offer and the Transferor should die or become an Involuntary Transferor, a
Disabled Stockholder, a Terminated Stockholder prior to the Transfer Closing
Date, the provisions of this Section 5 shall

<PAGE>

be and remain operative, and the provisions of Sections 4, 6, 7, or 8, as the
case may be, shall be inapplicable.

                  5.8. Notwithstanding the provisions of this Section 5 to the
contrary, but provided that each of the Additional Restrictions is complied
with, any Stockholder may at any time, and from time to time, Transfer all or
any portion of the shares of Common Stock owned by such Stockholder to any other
Stockholder.

                  5.9 If the Corporation or any Stockholder is purchasing any
Common Stock of a Stockholder who has transferred a portion of his Stock to a
family member or a trust pursuant to this exception, then the Corporation or
such Stockholder shall purchase the Common Stock held by the family member in
the same manner and upon the same terms as the Stock of the transferring
Stockholder's Stock is being purchased.

         6. INVOLUNTARY TRANSFER OF STOCK.

                  6.1. In the event of an Involuntary Transfer of any shares of
Common Stock owned of record or beneficially by any Stockholder (the
"Involuntary Transferor Shares"), the Corporation shall have the option (the
"Involuntary Transfer Purchase Option") to purchase all, but not less than all,
of the Involuntary Transfer Shares for a price per share (the "Involuntary
Transfer Purchase Price") equal to Agreed Value.

                  6.2. The Involuntary Transfer Purchase Option shall be and
remain irrevocable for a period (the "Involuntary Transfer Period") ending at
11:59 P.M., local time at the Corporation's principal office on the thirtieth
(30th) Day following the date of the Corporation's receipt of notice (the
"Involuntary Transfer Notice") from the Stockholder owning the Involuntary
Transfer Shares (the "Involuntary Transferor") or any Person acquiring or to
acquire any interest in the Involuntary Transfer Shares (the "Involuntary
Transferee"). At the earliest practicable opportunity, the Involuntary
Transferor covenants and agrees to furnish the Involuntary Transfer Notice to
the Corporation or cause the Involuntary Transfer Notice to be furnished to the
Corporation. The Involuntary Transfer Notice shall set forth the nature and
terms of the Involuntary Transfer, the number of shares of Common Stock involved
therein, and shall identify the Involuntary Transferee.

                  6.3. At any time during the Involuntary Transfer Period, the
Corporation may elect to exercise the Involuntary Transfer Purchase Option by
giving written notice of its election to the Involuntary Transferor and the
Involuntary Transferee. The Involuntary Transferor shall not cast a vote as a
stockholder or as a director on the question of whether the Corporation shall
elect to exercise the Involuntary Transfer Purchase Option.

                  6.4. In the event that the Corporation elects to exercise the
Involuntary Transfer Purchase Option, the Corporation's notice of such election
shall fix a closing date (the "Involuntary Transfer Closing Date") for such
purchase which shall be not earlier than five (5) Days after the date of such
notice of election, nor later than thirty (30) Days after the expiration of the
Involuntary Transfer Period.

<PAGE>

                  6.5. In the event that the Corporation elects to exercise the
Involuntary Transfer Purchase Option, the dollar amount of the Involuntary
Transfer Purchase Price multiplied by the number of Involuntary Transferor
Shares (the "Aggregate Involuntary Transfer Purchase Price") shall be paid in
cash on the Involuntary Transfer Closing Date.

                  6.6. If the Corporation fails to exercise the Involuntary
Transfer Purchase Option, the Involuntary Transfer Shares may be Involuntarily
Transferred free and clear of this Agreement.

                  6.7. In the event that the Corporation elects to exercise the
Involuntary Transfer Purchase Option and the Involuntary Transferor should die
or become a Transferor, a Disabled Stockholder, or a Terminated Stockholder
prior to the Involuntary Transfer Closing Date, the provisions of this Section 6
shall be and remain operate, and the provisions of Sections 4, 5, 7, or 8, as
the case may be, shall be inapplicable.

         7. DISABILITY OF A STOCKHOLDER.

                  7.1 Provided that a Stockholder shall not have terminated
full-time employment with the Corporation for any reason other than Disability,
upon the Disability of a Stockholder employed by the Corporation at the time the
Disability occurs (the "Disabled Stockholder"), the Corporation shall have the
option to purchase (the "Disability Purchase Option"), and the Disabled
Stockholder shall have the obligation to sell, all of the shares of Common Stock
owned of record and beneficially by the Disabled Stockholder at the time of the
Disability (the "Disability Shares") for a price per share equal to the Agreed
Value (the "Disability Purchase Price").

                  7.2. The Disability Purchase Option shall be and remain
irrevocable for a period (the "Disability Transfer Period") ending at 11:59
P.M., local time at the Corporation's principal office on the ninetieth (90) Day
following the date of the Corporation's receipt of notice (the "Disability
Transfer Notice") from the Disability Stockholder. At the earliest practicable
opportunity, the Disability Stockholder covenants and agrees to furnish the
Disability Transfer Notice to the Corporation. The Disability Transfer Notice
shall set forth the nature of the disability and the number of shares of Common
Stock involved therein.

                  7.3. At any time during the Disability Transfer Period, the
Corporation may elect to exercise the Disability Purchase Option by giving
written notice of its election to the Disability Stockholder. The Disability
Stockholder shall not cast a vote as a stockholder or as a director on the
question of whether the Corporation shall elect to exercise the Disability
Purchase Option.

                  7.4. In the event that the Corporation elects to exercise the
Disability Purchase Option, the Corporation's notice of such election shall fix
a closing date (the "Disability Closing Date") for such purchase which shall be
not earlier than five (5) Days after the date of such notice of election, nor
later than thirty (30) Days after the expiration of the Disability Transfer
Period.

<PAGE>

                  7.5. If the Corporation fails to exercise the Disability
Purchase Option, the Disabled Stockholder shall continue to hold Disability
Shares subject to all the terms and conditions of this Agreement.

                  7.6. The dollar amount of the Disability Purchase Price
multiplied by the number of Disability Shares (the "Aggregate Disability
Purchase Price") shall be paid in installments as provided in Section 9 of this
Agreement.

                  7.7. In the event that the Disabled Stockholder should die or
become a Transferor, an Involuntary Transferor, or a Terminated Stockholder
after the date the Disability occurred but prior to the Disability Closing Date,
the provisions of Section 7 shall be and remain operative, and the provisions of
Sections 4, 5, 6, or 8, as the case may be, shall be inapplicable.

         8. TERMINATION OF EMPLOYMENT.

                  8.1. Immediately upon a Termination, the Terminated
Stockholder shall be deemed (without any further action required on the part of
the Terminating Stockholder) to have offered for sale (the "Termination Offer")
to the Corporation all of the shares of Common Stock owned of record and
beneficially by the Terminated Stockholder on the date of the Termination (the
"Termination Shares").

                  8.2. The Termination Offer shall be deemed made by the
Terminated Stockholder on the date the Terminated Stockholder receives written
notice from the Corporation of a Termination (the "Termination Notice"). The
Termination Offer shall be and remain irrevocable for a period (the "Termination
Offer Period") ending at 11:59 P.M., local time at the Corporation's principal
office on the sixtieth (60th) Day following the date the Termination Notice was
received. At any time during the Termination Offer Period, the Corporation may
accept the Termination Offer by giving written notice to the Terminated
Stockholder (the "Terminated Stockholder Notice") of such acceptance. The
Terminated Stockholder shall not cast a vote as a stockholder or as a director
on the question of whether the Corporation shall accept the Termination Offer.

                  8.3. In the event that the Termination Offer is accepted by
the Corporation, the Terminated Stockholder Notice shall fix a closing date (the
"Termination Closing Date") for such purchase which shall be not earlier than
ten (10) nor later than ninety (90) Days after the expiration of the Termination
Offer Period.

                  8.4. In the event that the Termination Offer is accepted by
the Corporation, the Corporation shall purchase the Termination Shares at a
price per share (the "Termination Purchase Price") equal to Agreed Value;
provided, however that Termination Shares purchased pursuant to the ESPP in the
six (6) months preceding Termination shall be purchased at a price per share
equal to the ESPP Value, and any Termination Shares purchased pursuant to the
ESPP more than six (6) months prior to the Termination shall be purchased at a
price per share equal to 85% of the Agreed Value. The dollar amount of the
Termination Purchase Price multiplied by the number of Termination Shares (the
"Aggregate Termination Purchase Price") shall be paid in

<PAGE>

cash on the Termination Closing Date unless the Corporation shall elect prior to
or on the Termination Closing Date to pay the Aggregate Termination Purchase
Price in installments pursuant to the provisions of Section 9 of this Agreement.

                  8.5. In the event that the Termination Offer is accepted by
the Corporation and the Terminated Stockholder should die or become a
Transferor, an Involuntary Transferor, or a Disabled Stockholder prior to the
Termination Closing Date, the provisions of this Section 8 shall be and remain
operative, and the provisions of Sections 4, 5, 6 or 7, as the case may be,
shall be inapplicable. In the event that the Termination Offer is rejected or
not accepted by the Corporation, the Terminated Stockholder shall continue to
hold the Termination Shares subject to all of the terms and conditions of this
Agreement.

         9. INSTALLMENT PAYMENTS.

                  9.1. In the event that the Corporation is to pay the Decedent
Purchase Price Cash Shortfall, the Aggregate Transfer Purchase Price, the
Aggregate Disability Purchase Price, the Aggregate Termination Purchase Price or
the Aggregate Termination Purchase Price (collectively, the "Aggregate
Indebtedness"), the Aggregate Indebtedness shall be paid by the Corporation in
twenty (20) equal quarterly installments by making, sealing and delivering the
Note to the personal representatives of the Decedent, the Transferor, the
Disabled Stockholder, the Terminating Stockholder or the Terminated Stockholder
(collectively, the "Payee").

                  9.2. In the event that a Payee should die prior to the payment
by the Corporation of the Aggregate Indebtedness, the terms of payment shall be
and remain those elected by the Corporation, and the provisions of Section 4
shall be inapplicable.

         10. INSOLVENCY.

                  If the Corporation shall not be permitted to purchase lawfully
all of the Shares or to pay, from time to time, any payment owed on the
Aggregate Indebtedness: (i) the entire amount which may lawfully be paid shall
be paid immediately on such account; and (ii) the surviving or remaining
Stockholders shall promptly take such steps as may be appropriate or necessary
to enable the Corporation to purchase and pay lawfully for all of the Shares
purchased under the applicable provisions of this Agreement, or to pay, from
time to time, any payment owing on the Aggregate Indebtedness including, by way
of illustration and not by way of limitation, an up-to-date appraisal of the
assets of the Corporation, or including in the Note such language as is required
by law to allow the Corporation to issue the Note (and the Payee hereby consents
to the inclusion of such language, if required, in the Note).

<PAGE>

         11. DELIVERY OF CERTIFICATES.

                  11.1. The Closing shall take place at 10:00 A.M. at the
offices of the Corporation. At the Closing, the stock certificate or
certificates representing the Shares shall be delivered to the Corporation duly
endorsed in blank, and the Corporation shall pay the purchase price therefor in
cash, or in the case of an election by the Corporation pursuant to Section 9 of
this Agreement, by making, sealing and delivering the Note.

                  11.2. If a tender of the purchase price in cash or by the Note
shall be refused, or the stock certificate or certificates representing the
Shares, duly executed, as aforesaid, shall not be so delivered, then the
Corporation is hereby appointed the attorney-in-fact of the Seller, with full
power and authority to execute, seal and deliver the stock certificate or
certificates in the Seller's name and stead, and to perform any and all other
and further acts desirable, necessary or proper in order to transfer such stock
certificate or certificates to the Corporation in accordance with the terms,
provisions and conditions of this Agreement.

                  11.3 The power of appointment granted pursuant to Section 11.2
hereof is a special power of appointment coupled with an interest and is
irrevocable and shall survive the death, Disability, legal incapacity, Event of
Bankruptcy or insolvency of a Stockholder.

         12. SECURITIES LAWS AND ENDORSEMENTS OF STOCK CERTIFICATES.

                  12.1. The Stockholders severally acknowledge that the Common
Stock acquired by them has not been registered under the Act, or any State Acts.
The Stockholders severally represent and warrant that they acquired their shares
of the Common Stock without a view to the offer, offer for sale, or the sale in
connection with the distribution of such shares of Common Stock and that they
will hold such shares of Common Stock indefinitely unless subsequently
registered under the Act and the State Acts or unless an exemption from such
registration is available and an opinion of counsel for the Corporation, in form
and substance satisfactory to the Corporation, is obtained to that effect. The
provisions of Sections 4, 5, 6, 7, and 8 hereof are in all respects subject to
the Act and the State Acts and all regulations promulgated thereunder. All
certificates representing shares of Common Stock subject to this Agreement shall
be legended conspicuously in substantially the following form:

          The securities represented by this stock certificate have been
          acquired pursuant to an investment representation on the part of the
          holder thereof and shall not be sold, pledged, hypothecated, donated,
          or otherwise transferred, whether or not for consideration, by the
          holder except upon the issuance to the Corporation of a favorable
          opinion of its counsel and the submission to the Corporation of such
          other evidence as may be satisfactory to counsel for the Corporation
          in either case to the effect that any such transfer shall not be in
          violation of the Securities Act of 1933, as amended, and applicable
          state securities law.

                  12.2. Each Stockholder realizes that the Corporation does not
file, and does not in the foreseeable future contemplate filing, periodic
reports in accordance with the provisions of

<PAGE>

Sections 13 and 15(d) of the Securities Exchange Act of 1934, as amended, and
also understands that the Corporation has not agreed to register any of its
securities for distribution in accordance with the provisions of the Act or to
take any actions respecting the obtaining of an exemption from registration for
such securities or any transaction with respect thereto. Hence, by virtue of
certain rules respecting "restricted securities" promulgated under the Act, the
Common Stock acquired by the Stockholders must be held indefinitely unless and
until subsequently registered under the Act and/or the State Acts or unless an
exemption from such registration is available, in which case the amount of the
Common Stock that may be sold may be limited.

                  12.3. Upon the execution of this Agreement, all certificates
representing shares of Common Stock owned of record and beneficially by the
Stockholders shall be conspicuously legended as follows:

          The shares of stock represented by this Certificate are restricted as
          to transfer by the terms, conditions and covenants of an Agreement
          with respect thereto dated as of the 1st day of April, 1998, a copy of
          which is on file with the Corporation. The Corporation will
          gratuitously furnish a copy of said Agreement to any party having a
          valid interest therein. Any transfer of stock other than in accordance
          with said Agreement shall be absolutely null and void.

         13. STOCK ISSUED IN THE FUTURE. Unless waived in writing by all of the
parties hereto, before any additional shares of Common Stock are issued in the
future to any person, other than a signatory to this Agreement, such person and
such person's spouse shall be required to become a party to and to execute,
acknowledge, seal and deliver a copy of this Agreement prior to the issuance of
such shares of Common Stock, and the certificates therefor shall be legended as
provided in Section 12 of this Agreement; thereafter, such person shall be
deemed to be a "Stockholder" for all purposes of this Agreement.

         14. AFTER-ACQUIRED STOCK. Whenever any Stockholder acquires any
additional shares of Common Stock other than the shares of Common Stock owned at
the time of the execution of this Agreement, such shares of Common Stock so
acquired shall be subject to the terms of this Agreement, and the certificates
therefor shall be surrendered to the Corporation for legending in accordance
with Section 12 of this Agreement, unless already so legended.

         15. TERMINATION. This Agreement shall be perpetual until the happening
of any of the events listed below, upon the first to occur of which all rights,
duties and obligations, other than the duties and obligations relating to
registration under or exemption from the Act and the State Acts, as set forth in
Section 12 of this Agreement, and rights, duties and obligations respecting
payment of the Aggregate Indebtedness to any one or more of the Stockholders,
shall cease:

                           15.1. The agreement in writing of all holders of the
         outstanding shares of Common Stock who are parties to, or who are bound
         by, this Agreement to terminate this Agreement.

<PAGE>

                           15.2. The dissolution of the Corporation.

                           15.3. The receipt by the Corporation from the
         Securities and Exchange Commission of an order of effectiveness as to
         any registration statement for the sale of any capital stock of the
         Corporation under the Act, whether or not such capital stock is owned
         by any of the Stockholders.

                           15.4. In the event that there shall be only one (1)
         owner of issued and outstanding shares of Common Stock of the
         Corporation.

                           15.5. In the event that there is a merger,
         consolidation or share exchange whereby the Corporation is not the
         surviving or successor corporation, as the case may be.

         16. AGREEMENT DRAFTED BY CORPORATION'S ATTORNEY. The Stockholders
severally acknowledge and represent that the Corporation's counsel, Shapiro and
Olander prepared this Agreement on behalf of and in the course of its
representation of the Corporation, as directed by the Board of Directors of the
Corporation. Further, each Stockholder severally acknowledges and represents
that he or she has been advised that a conflict of interest may exist between
his interests and those of the Corporation and the other Stockholders, has been
advised by the Corporation's counsel to seek the advice of independent counsel,
has had the opportunity to seek the advice of independent counsel, has been
advised by the Corporation's counsel that this Agreement may have tax
consequences, has received no representations from the Corporation's counsel
concerning the tax consequences of this Agreement, has been advised by the
Corporation's counsel to seek the advice of independent tax counsel, and has had
the opportunity to seek the advice of independent tax counsel.

         17. NOTICES. Any notice, payment, demand or communication required or
permitted to be given by any provision of this Agreement shall be in writing and
shall either be: (a) delivered personally to the party or to an officer of the
party to whom it is directed, in which case a signed receipt therefor shall be
received; or (b) sent by certified mail, return receipt requested, postage
prepaid, addressed as follows: if to the Corporation or if to the Stockholders,
at the addresses set forth below their several signatures, or to such other
address or addresses as may be designated from time to time in accordance with
this Section 17. Any such notice shall be deemed to be delivered, given and
received for all purposes of this Agreement as of: (i) the date noted on the
signed receipt if delivered personally; or (ii) the date deposited in a
regularly maintained receptacle for the deposit of the United States mail, if
sent by certified mail.

         18. ADDITIONAL ACTIONS AND DOCUMENTS.

                  18.1. Each of the parties hereto agrees to take or cause to be
taken such further actions, to execute, acknowledge, seal and deliver or cause
to be executed, acknowledged, sealed and delivered such further instruments and
documents and to use his reasonable efforts to obtain such requisite consents as
any other party may from time to time reasonably request in order to fully
effectuate the purposes and fulfill the intent of this Agreement.

<PAGE>

                  18.2. Any Stockholder who is an officer or director or both of
the Corporation and whose stock ownership in the Corporation shall terminate for
any reason whatsoever shall resign, effective upon such termination, as such an
officer and director, and shall resign as a trustee of any pension or profit
sharing plan of the Corporation or any other employee benefit plan of the
Corporation of which such Stockholder is a trustee.

         19. CONSENT AND APPROVAL OF SPOUSE. Each married party to this
Agreement agrees to obtain the consent and approval of his spouse, by the
execution, sealing and delivery of this Agreement by such spouse, to all the
terms, provisions and conditions of this Agreement. Should an unmarried party to
this Agreement become married, or should a married party to this Agreement
divorce and remarry after the date hereof, such party agrees to obtain the
consent and approval of such spouse, by the execution, sealing and delivery of
this Agreement by such spouse, to all of the terms, provisions and conditions of
this Agreement.

         20. INSERTION IN WILL. Each Stockholder agrees to insert in his Will a
provision, or to execute a Codicil thereto, directing and authorizing the
Stockholder's personal representatives to fulfill and comply with the terms,
provisions and conditions of this Agreement and to sell and transfer the
Stockholder's shares of Common Stock in accordance herewith.

         21. INSURANCE.

                  21.1. The Corporation shall have the right to make application
for, take out, and maintain in effect Life Policies whenever and in such amounts
as, in the opinion of the Board of Directors of the Corporation, may be required
for the benefit of the Corporation.

                  21.2. The Corporation shall have the right to make application
for, take out, and maintain in effect Disability Policies whenever and in such
amounts as, in the opinion of the Board of Directors of the Corporation, may be
required for the benefit of the Corporation.

                  21.3. Each Stockholder hereby covenants and agrees to take
such other and further actions and execute and deliver such other and further
documents necessary to enable the Corporation to acquire the Life Policies and
the Disability Policies.

         22. OPTION TO PURCHASE INSURANCE POLICIES. The Seller (or upon the
termination of this Agreement in accordance with Section 15, all of the
Stockholders) shall have the option to purchase any life insurance policies on
his life (or their lives) owned by the Corporation within ninety (90) Days after
the Closing (or date of the termination of this Agreement) by tendering to the
Corporation in cash, or by certified check, that dollar amount which is equal to
the sum of:

                  22.1. The interpolated terminal reserve of each such policy
and any paid up additions; plus

                  22.2. Any dividends or dividend accumulations credited to such
policy; plus

                  22.3. The unearned portion of any premium paid beyond the date
the policy is to be transferred; less

<PAGE>

                  22.4. Any indebtedness against such policy and any loan
interest accrued thereon as of the date of transfer.

In the event that a Stockholder exercises this option to purchase the life
insurance policies, the Corporation shall promptly deliver to such Stockholder
the policy or policies together with such written documents as are necessary to
convey full title in the policies to the Stockholder. If the Stockholder does
not exercise this purchase option, the Corporation may dispose of or deal with
the policy or policies in the manner it desires.

         23. INTEGRATION. This instrument contains the entire integrated
agreement among the parties and supersedes all prior oral or written agreements,
commitments or understandings with respect to the matters provided for herein,
and no modification shall be binding upon the party affected unless set forth in
writing and duly executed by each party affected.

         24. OWNERSHIP OF STOCK. Each Stockholder severally represents and
warrants that:

                  24.1. He or she is the sole owner of the number of shares of
Common Stock set forth opposite his or her signature hereto, evidenced by the
certificate number or numbers shown immediately after such number of shares.

                  24.2. All of such shares are free and clear of any and all
liens, claims, charges, security interests, or encumbrances of any kind.

                  24.3. He or she has the full and entire right, power and
authority to sell or otherwise transfer such shares in accordance with the
terms, provisions and conditions of this Agreement.

         25. BINDING EFFECT. Each of the covenants and agreements in this
Agreement by or on behalf of any of the parties hereto shall bind and inure to
the benefit of their respective heirs, guardians, personal and legal
representatives, successors and permitted assigns.

         26. GOVERNING LAW. This Agreement shall be construed and enforced in
accordance with, and the rights of the parties shall be governed by, the laws of
the State of Delaware, except in regard to its choice of law.

         27. SPECIFIC PERFORMANCE. In the event of a breach of this Agreement,
any non-breaching party hereto may maintain an action for specific performance
against the party or parties hereto who are alleged to have breached any of the
terms, conditions, representations, warranties, provisions, covenants or
agreements herein contained, and it is hereby further agreed that no objection
to the form of action in any proceeding for specific performance of this
Agreement shall be raised by any party hereto so that such specific performance
of this Agreement may not be obtained by the aggrieved party. Anything contained
herein to the contrary notwithstanding, this Section 27 shall not be construed
to limit in any manner whatsoever any other rights and remedies that an
aggrieved party may have by virtue of any breach of this Agreement.

<PAGE>

         28. HEADINGS. The descriptive headings of the several sections and
subsections of this Agreement are inserted for convenience only, do not
constitute a substantive part of this Agreement, and are not intended to
describe, interpret, define, or limit the scope, extent or intent of this
Agreement as a whole, or any provision hereof. All schedules and exhibits
referred to in this Agreement are hereby deemed a substantive part of this
Agreement.

         29. COUNTERPARTS. This Agreement may be executed in counterparts, each
of which shall be an original, but all of which shall together constitute one
document.

         30. CONSTRUCTION. Each and every term and provision of this Agreement
has been mutually agreed to and negotiated by the parties hereto, and shall be
construed simply according to its fair meaning and not strictly for or against
any party.

         31. SEVERABILITY. Each and every term and provision of this Agreement
is intended to be severable. If any term or provision hereof is illegal or
invalid for any reason whatsoever, such illegality or invalidity shall not
affect the legality or validity of the remainder of this Agreement.

         32. TIME. Time is of the essence with respect to all aspects of this
Agreement.

         IN WITNESS WHEREOF, the parties hereto have executed, sealed and
delivered this Agreement or caused this Agreement to be executed, sealed and
delivered on the day and year first hereinabove set forth.

<TABLE>
<S>                                         <C>

WITNESS/ATTEST:                             AVATECH SOLUTIONS, INC.

____________________________________        ____________________________________
V. Joel Nicholson, Secretary                Ronald Diegelman, President

____________________________________
Employee

</TABLE>

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00039-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00039-of-00352.parquet"}]]