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                                                                   EXHIBIT 10.05

                         WARRANTHOLDERS RIGHTS AGREEMENT

     WARRANTHOLDERS RIGHTS AGREEMENT dated as of October 25, 2000 among AVATECH
SOLUTIONS, INC., a Delaware corporation (together with its successors,
"Avatech"), and THE CIT GROUP/BUSINESS CREDIT, INC. ("CIT") (CIT and such
other warrantholders of Avatech as may, from time to time, become parties to
this Agreement in accordance with the provisions hereof, the "Warrantholders").

     WHEREAS on the date hereof, the Stockholders (as defined herein) are the
beneficial owners of 6,020,877 shares of Voting Common Stock (as defined
herein), there are outstanding options to purchase 400,255 shares of Voting
Common Stock, and there are outstanding warrants to purchase 64,000 shares of
Voting Common Stock, and CIT purchased and is the beneficial owner of the
Warrants (as defined herein) to purchase 16,213 shares of Voting Common Stock;
and

     WHEREAS Avatech wishes to provide to the Warrantholders and the holders of
the Conversion Shares the rights described herein;

     NOW THEREFORE the parties hereto agree as follows:

                                    ARTICLE I

                                   DEFINITIONS

     SECTION 1.1.   DEFINITIONS.

     Unless otherwise defined herein, the following terms used in this Agreement
shall have the meanings specified below.

     "Affiliate" means, with respect to any Person, any of (i) a director or
executive officer of such Person, (ii) a spouse, parent, sibling or descendant
of such Person (or a spouse, parent, sibling or descendant of any director or
executive officer of such Person) and (iii) any other Person that, directly or
indirectly, controls, or is controlled by or is under common control with such
Person. For the purpose of this definition, "control" (including the terms
"controlling", "controlled by" and "under common control with"), as used with
respect to any Person, means the possession, directly or indirectly, of the
power to direct or cause the direction of the management or policies of such
Person, whether through the ownership of voting securities or by contract or
agency or otherwise.

     "BHC Act" means the Bank Holding company Act of 1956, as amended.

     "Commission" means the Securities and Exchange Commission or any other
Federal agency at the time administering the Securities Act.

     "Common stock" means the Voting Common Stock.

     "Conversion Shares" means (i) any shares of Voting Common Stock or other
securities issued upon the exercise of any Warrants and (ii) any securities
issued with respect to any of such shares or other securities referred to in
clause (i) upon the conversion thereof into other securities or by way of stock

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dividend or stock split or in connection with a combination of shares,
recapitalizaiton, merger, consolidation or other reorganization or otherwise;
PROVIDED that any of such securities shall cease to be Conversion Shares when
such securities shall have (x) been disposed of pursuant to a Public Sale or (y)
ceased to be outstanding.

     "Debt" of a Person means at any date, without duplication, (i) all
obligations of such Person for borrowed money, (ii) all obligations of such
Person evidenced by bonds, debentures, notes or other similar instruments, (iii)
all obligations of such Person to pay the deferred purchase price of property or
services, except trade accounts payable arising in the ordinary course of
business, (iv) all Capital Leases of such Person, (v) all obligations of such
Person to purchase securities (or other property) which arise out of or in
connection with the sale of the same or substantially similar securities (or
property), (vi) all non-contingent obligations of such Person to reimburse any
bank or other Person in respect of amounts paid under a letter of credit or
similar instrument, (vii) all equity securities of such Person (other than the
Warrants) subject to repurchase or redemption otherwise than at the sole option
of such Person, (viii) all Debt secured by a Lien on any asset of such Person,
whether or not such Debt is otherwise an obligation of such Person, and (ix) all
Debt of others Guaranteed by such Person.

     "Exchange Act" means the Securities Exchange Act of 1934, or any successor
Federal statute, and the rules and regulations of the Commission thereunder, all
as the same shall be in effect at the time. Reference to a particular section of
the Securities Exchange Act of 1934 shall include a reference to the comparable
section, if any, of any such successor Federal statute.

     "Financing Agreement" means the Financing Agreement dated as of
October 25, 2000 between Avatech and CIT, as amended from time to time.

     "Initial Public Offering" means the first registration of an offering of
shares of Common Stock under the Securities Act which becomes effective (other
than by a registration on Form S-4 or S-8 or any successor or similar forms).

     "Investment" means any investment in any Person, whether by means of share
purchase, capital contribution, loan, time deposit or otherwise.

     "Other Shares" has the meaning set forth in Section 3.2.

     "Person" means a corporation, an association, a partnership, a trust, a
limited liability company, an organization, a business, an individual, a
government or a subdivision thereof or a governmental agency.

     "Public Sale" means any sale of Common Stock to the public pursuant to an
offering registered under the Securities Act or to the public through a broker,
dealer or market maker pursuant to the provisions of Rule 144 (or any successor
provision then in effect) adopted under the Securities Act.

     "Registrable Securities" means any Conversion Shares until the date (if
any) on which such Conversion Shares shall have been transferred or exchanged
and new certificates for them not bearing a legend restricting further transfer
shall have been delivered by Avatech and subsequent disposition of them shall
not require registration or qualification of them under the Securities Act or
any similar state law then in force.

     "Registration Expenses" means all expenses incident to Avatech' performance
of or compliance with Sections 3.2 through 3.5 hereof, including (i) all
registration, filing and NASD fees, (ii) all fees and expenses of complying with
securities or blue sky laws, (iii) all word processing, duplicating and printing

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expenses, (iv) all messenger and delivery expenses, (v) the fees and
disbursements of counsel for Avatech and of its independent public accountants,
including the expenses of any special audits or "cold comfort" letters required
by or incident to such performance and compliance, (vi) the fees and
disbursements of any one counsel and any one accountant retained by the holder
or holders of more than 50% of the Registrable Securities being registered,
(vii) premiums and other costs of policies of insurance (if any) against
liabilities arising out of the public offering of the Registrable Securities
being registered if Avatech desires such insurance and (viii) any fees and
disbursements of underwriters customarily paid by issuers or sellers of
securities, but not including underwriting discounts and commissions and
transfer taxes, if any, PROVIDED that, in any case where Registration Expenses
are not to be borne by Avatech, such expenses shall not include (i) salaries of
Avatech personnel or general overhead expenses of Avatech, (ii) auditing fees,
(iii) premiums or other expenses relating to liability insurance required by
underwriters of Avatech or (iv) other expenses for the preparation of financial
statements or other data, to the extent that any of the foregoing either is
normally prepared by Avatech in the ordinary course of its business or would
have been incurred by Avatech had no public offering taken place.

     "Regulated Holder" means any holder of Warrants or Conversion Shares, if
such holder is effectively restricted or prohibited from holding, exercising or
transferring, in whole or in part, the Warrants or Conversion Shares by reason
of any Regulatory Requirement, including without limitation if such holder is a
bank holding company within the meaning of the BHC Act or a subsidiary thereof
subject to Regulation Y under the BHC Act.

     "Regulatory Change" means, with respect to any Regulated Holder, (i) any
change on or after the date hereof in United States federal or state or foreign
laws or regulations (including the BHC Act and Regulation Y thereunder); (ii)
the adoption on or after the date hereof of any interpretation or ruling
applying to such Regulated Holder, individually or as a member of a class, under
any United States federal or state or foreign laws or regulations by any court
or governmental or regulatory authority charged with the interpretation or
administration thereof; or (iii) the modification on or after the date hereof of
any agreement or commitment with any such governmental or regulatory authority
that is applicable to or binding upon such Regulated Holder.

     "Regulatory Requirement" means any existing or future Federal or state
statute, rule, regulation, guideline, order, request or directive (whether or
not having the force of law and whether or not failure to comply therewith would
be unlawful), including without limitation, the BHC Act and the regulations
thereunder.

     "Restricted Payment" means (i) any dividend or other distribution on any
shares of Avatech' capital stock (except dividends payable solely in shares of
its capital stock of the same class) or (ii) any payment on account of the
purchase, redemption, retirement or acquisition of (a) any shares of Avatech'
capital stock or (b) any warrant or other right to acquire shares of Avatech'
capital stock.

     "Restricted Securities" means the Warrants, the Conversion Shares and any
securities obtained upon exchange for or upon conversion or transfer of or as a
distribution on Warrants, the Conversion Shares or any such securities; PROVIDED
that particular securities shall cease to be Restricted Securities when such
securities shall have (x) been disposed of pursuant to a Public Sale, (y) been
otherwise transferred or exchanged and new certificates for them not bearing a
legend restricting further transfer shall have been delivered by Avatech and
subsequent disposition of them shall not require registration or qualification
of them under the Securities Act or any similar state law then in force (z)
ceased to be outstanding. Whenever any particular securities cease to be
Restricted Securities, the holder thereof shall be entitled to receive from the
issuer thereof or its transfer agent, without expense (other than transfer
taxes, if any), new securities of like tenor not bearing a legend of the
character set forth in Section 2.2.

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     "Securities Act" means the Securities Act of 1933, or any similar Federal
statute, and the rules and regulations of the Commission thereunder, all as the
same shall be in effect at the time. Reference to a particular section of the
Securities Act of 1933 shall include a reference to the comparable section, if
any, of any such similar Federal statute.

     "Significant Stockholder Group" means one or more Stockholders holding 25%
or more, individually or in the aggregate, of the Common Stock of Avatech.

     "Stockholders" means the holders of the Common Stock of Avatech.

     "Subsidiary" means any partnership or corporation or other entity of which
securities or other ownership interests having ordinary voting power to elect a
majority of the board of directors or other persons performing similar functions
are at the time directly or indirectly owned by Avatech.

     "Voting Common Stock" means the common stock, par value $0.1 per share, of
Avatech.

     "Warrant Securityholder" means at any time any Warrantholder or any holder
of Conversion Shares (and for purposes of Section 2.8 shall include any Person
that held Warrants that were redeemed pursuant to Section 5.3 of the Warrants).

     "Warrantholders" has the meaning set forth in the introductory paragraph.

     "Warrants" means the Warrant or Warrants originally issued to CIT, as such
Warrants may be transferred or otherwise assigned, but only to the extent not
theretofore exercised, redeemed or expired in accordance with their respective
terms.

     All references herein to "days" shall mean calendar days unless otherwise
specified.

                                   ARTICLE II

             TRANSFER OF SHARES; PAYMENTS TO WARRANT SECURITYHOLDERS

     SECTION 2.1.   GENERAL.

     Except as otherwise provided in this Agreement or by law, each Stockholder
may transfer its shares of Common Stock at any time to any Person.

     SECTION 2.2. RESTRICTIONS ON TRANSFER; LEGEND ON CERTIFICATES.

     (a)     Except as otherwise provided in this Agreement, Restricted
Securities shall not be transferable except (i) pursuant to an effective
registration statement under the Securities Act, (iii) pursuant to Rule 144 or
144A (or any successor provisions) under the Securities Act or (ii) pursuant to
a transaction that is otherwise exempt from the registration requirements of the
Securities Act.

     (b)     Unless otherwise expressly provided herein, each certificate for
Restricted Securities and each certificate issued in exchange for or upon
transfer of any thereof shall be stamped or otherwise imprinted with a legend in
substantially the following form:

     "THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
     UNDER THE SECURITIES ACT OF 1933 AND MAY NOT BE SOLD OR

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     OFFERED FOR SALE UNLESS REGISTERED UNDER SAID ACT AND ANY APPLICABLE STATE
     SECURITIES LAWS OR UNLESS AN EXEMPTION FROM SUCH REGISTRATION IS AVAILABLE.
     THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE ALSO SUBJECT TO AND HAVE
     THE BENEFIT OF A WARRANTHOLDERS RIGHTS AGREEMENT DATED AS OF OCTOBER 25,
     2000 AMONG AVATECH SOLUTIONS, INC. AND THE WARRANTHOLDERS PARTIES THERETO,
     COPIES OF WHICH ARE ON FILE WITH AVATECH SOLUTIONS, INC."

     (c)     Any other provision of this Agreement to the contrary
notwithstanding, no transfer of any Restricted Securities other than pursuant to
a Public Sale may be made to any Person unless such Person shall have agreed in
writing that such Person, as a holder of Restricted Securities, and the
Restricted Securities it acquires shall be bound by and be entitled to the
benefits of all the provisions of this Agreement applicable to such Restricted
Securities (and upon such agreement such Person shall be entitled to such
benefits). Any purported transfer of Restricted Securities without compliance
with the applicable provisions of this Agreement shall be void and of no effect,
and the purported transferee shall have no rights as a Warrantholder or
Shareholder (as applicable) or under this Agreement. In the event of such
non-complying transfer, Avatech shall not transfer any such Restricted
Securities on its books or recognize the purported transferee as a shareholder
or warrantholder, as the case may be, for any purpose, until all applicable
provisions of this Agreement have been complied with.

     SECTION 2.3.   PERMITTED TRANSFERS.

     The restrictions on transfer provided in Section 2.2 (a) shall not be
applicable to (i) any transfer in compliance with federal and all applicable
state securities laws to an Affiliate of the holder of Restricted Securities,
from an Affiliate of such holder to such holder or between Affiliates of such
holder (if any such Affiliate to whom shares of Restricted Securities have been
transferred by a holder thereof ceases to be an Affiliate of such holder of
Restricted Securities, such Restricted Securities shall immediately be
transferred back to the transferor thereof), (ii) any transfer upon the death of
any holder of Restricted Securities to such holder's executors, administrators
or testamentary trustees or (iii) any transfer to a trust the beneficiaries of
which include only the holder of such Restricted Securities or such holder's
spouse, parents, siblings or descendants (any transferee referred to in (i),
(ii) or (iii) above being referred to herein as a "Permitted Transferee");
PROVIDED that no such transfer shall be made to any Permitted Transferee unless
such Permitted Transferee shall have agreed in writing that such Permitted
Transferee, as a Stockholder or Warrantholder (as the case may be), and the
shares of Common Stock or Warrants it acquires shall be bound by and be entitled
to the benefits of all the provisions of this Agreements applicable to Common
Stock or Warrants (as the case may be), and upon such agreement such Permitted
Transferee shall be entitled to such benefits.

     SECTION 2.4.   TAG-ALONG RIGHTS.

     If a Significant Stockholder Group (any such Person or group of such
Persons for purposes of Section 2.4, the "Transferor") wishes to transfer its
shares of Common Stock or any portion thereof to any Person (the "Transferee"),
the Transferor shall first give to Avatech and each Warrant Securityholder
(pursuant to a list provided by Avatech) a written notice (a "Transfer Notice"),
executed by it and the Transferee and containing (i) the number of shares of
Common Stock that the Transferee proposes to acquire from the Transferor, (ii)
the name and address of the Transferee, (iii) the proposed purchase price, terms
of payment and other material terms and conditions of such proposed transfer,
(iv) an estimate, in the Transferor's reasonable judgment, of the fair market
value of any non-cash consideration offered by the Transferee and (v) an offer
by the Transferee or Transferor to purchase, upon the purchase by the Transferee
of any shares of Common Stock owned by the Transferor and for the same per share
consideration, that number of Conversion Shares (or if such number is not an
integral number, the next

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integral number which is greater that such number) of each Warrant
Securityholder which shall be the product of (x) the aggregate number of
Conversion Shares either then owned, or issuable upon exercise of Warrants then
owned, by such Warrant Securityholder and (y) a fraction, the numerator of which
shall be the number of shares of Common Stock indicated in the Transfer Notice
as subject to purchase by the Transferee and the denominator of which shall be
the sum of (A) the total number of shares of Common Stock then owned by the
Transferor and its Affiliates plus (B) the total number of Conversion Shares
either then owned, or issuable upon exercise of Warrants then owned, by each
Warrant Securityholder. Each Warrant Securityholder shall have the right, for a
period of 20 days after the Transfer Notice is given, to accept such offer in
whole or in part, exercisable by delivering a written notice to the Transferor
and Avatech within such 20-day period, stating therein the number of shares of
Common Stock (which may be the number of shares set forth in the offer by the
Transferor or Transferee, as the case may be, or may be. Prior to the earlier of
(x) the end of such 20-day period or (y) the acceptance or rejection by each
Warrant Securityholder of the Transferee's or Transferor's offer, as the case
may be, neither the Transferor nor its Affiliates will complete any sale of
shares of Common Stock to the Transferee. Thereafter, for a period of 60 days
after the prohibition under the proceeding sentence shall have terminated, the
Transferor may sell to the Transferee for the consideration stated and on the
terms set forth in the Transfer Notice the shares of Common Stock stated in the
Transfer Notice as subject to purchase by the Transferee, PROVIDED that the
Transferor or Transferee, as the case may be, shall simultaneously purchase the
number of shares of Common Stock as calculated above from those Warrant
Securityholders who have accepted the Transferor's or Transferee's offer, as the
case may be. The provisions of this Section 2.4 shall not apply to transfers
between the Transferor and any of its Affiliates or between Affiliates of the
Transferor.

     SECTION 2.5.   DRAG-ALONG RIGHTS.

     If at any time prior to an Initial Public Offering, a Significant
Stockholder Group with drag-along rights (any such Person or group of such
Persons for purposes of this Section 2.5, the "Transferor") wishes to transfer
all of the shares of Common Stock owned by it and its Affiliates (PROVIDED that
such shares of Common Stock constitute more than 50% of all shares of Common
Stock on a Fully Diluted Basis (as defined in the Warrants) at such time) in a
bona fide sale to any Person (the "Proposed Transferee") pursuant to which the
consideration to be paid by the Proposed Transferee consists solely of cash and
freely tradeable securities with an active public market and the Transferor and
its Affiliates will not receive, in connection with the transactions
contemplated at the time of such transfer, any other securities or options to
acquire securities of Avatech, then the Transferor shall have the right (the
"Drag-Along Right") to require each Warrant Securityholder to sell to the
Proposed Transferee for the same per share consideration received by the
Transferor all of the Conversion Shares and Warrants (calculated, in the case of
any Warrants, on the number of Conversion Shares for which such Warrant is
exercisable at such time) held by such Warrant Securityholder; PROVIDED that (a)
such price per share is not less than the Fair Market Value (as defined in the
Warrants) of Avatech per share of outstanding Common Stock on a Fully Diluted
Basis and (b) each Warrant Securityholder shall not be obligated to make any
representation or warranty, or incur any liability in connection with any such
transfer, other than as to its ownership of the Conversion Shares or Warrants
being transferred by it. To exercise the Drag-Along Right, the Transferor shall
first give to Avatech and each other Warrant Securityholder (pursuant to a list
provided by Avatech) a written notice (a "Drag-Along Notice") executed by the
Transferor and the Proposed Transferee and containing (a) the number of shares
of Common Stock that the Proposed Transferee proposes to acquire from the
Transferor and its Affiliates, and certifying that such shares constitute all of
the shares of Common Stock owned by the Transferor and its Affiliates and more
than 50% of the shares of Common Stock on a Fully Diluted Basis at such time,
(b) the name and address of the Proposed Transferee, (c) the proposed purchase
price (certifying that such price per share is not less than the Fair Market
Value of outstanding Common Stock on a Fully Diluted Basis), terms of

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payment and other material terms and conditions of the Proposal Transferee's
offer, (d) a statement by the Proposed Transferee that the Proposed Transferee
(i) has been informed of the Drag-Along Right provided for in this Section 2.5
and (ii) has agreed to purchase the Conversion Shares in accordance with the
terms of this Section 2.5 and (e) the aggregate number of Conversion Shares or
Warrants owned by each Warrant Securityholder with respect to which the
Transferor wishes to exercise its Drag-Along Right pursuant to this Section 2.5.
Each Warrant Securityholder shall thereafter be obligated to sell to the
Proposed Transferee the Warrants and Conversion Shares subject to such
Drag-Along Notice, PROVIDED that the sale to the Proposed Transferee is
consummated within 60 days of delivery of the Drag-Along Notice. If the sale is
not consummated within such 60-day period, then each affected Warrant
Securityholder may sell, but shall no longer be obligated to sell, such Warrant
Securityholder's Warrants or Conversion Shares pursuant to such Drag-Along
Notice. The provisions of this Section 2.5 shall not apply to transfers between
the Transferor and any of its Affiliates or between any of its Affiliates.

     SECTION 2.6.   [RESERVED]

     SECTION 2.7.   RESTRICTIONS ON TRANSFER BY REGULATED HOLDERS.

     (a)     Notwithstanding anything else set forth herein to the contrary, in
the event of any reasonable determination in good faith by any Regulated Holder
that, by reason of any Regulatory Requirement, such Regulated Holder is
effectively restricted or prohibited from holding, exercising or transferring
(as the case may be) any Warrant or Conversion Shares (or any portion thereof),
Avatech shall use reasonable good faith efforts to take such action as it may
determine is reasonably necessary and appropriate to permit such Regulated
Holder to hold, exercise or transfer (as the case may be) such Warrant or
Conversion Shares (or any portion thereof) in such manner as is necessary to
comply with such Regulatory Requirement. All such actions shall be taken at the
expense of Regulated Holder. Regulated Holder shall give written notice to
Avatech of any reasonable determination by it hereunder and the transfer or
other action it believes may be necessary or appropriate to permit it to comply
with such Regulatory Requirement. In the event of a Regulatory Change, the
effect of which is to permit such Regulation Holder to hold, exercise or
transfer such Warrant or Conversion Shares in any other manner, the foregoing
proviso shall be deemed modified to permit the holding, exercise or transfer of
such Warrant or Conversion Shares in such other manner.

     (b)     Nothing in this Agreement (including without limitation
Sections 2.4 and 2.5) shall require any Regulated Holder to make a transfer of
Warrants or Conversion Shares in a manner not permitted by Section 2.6(a) (an
"Impermissible Transfer"). If any provision of this Agreement (including without
limitation Sections 2.4 and 2.5) would otherwise require any Regulated Holder to
make an Impermissible Transfer as a condition precedent to making a transfer of
Warrants or Conversion Shares in a manner permitted by Section 2.6(a) (a
"Permissible Transfer"), then such Regulated Holder shall not be required to
make such Impermissible Transfer as a condition precedent to making such
Permissible Transfer.

     SECTION 2.8.   ADJUSTMENT EVENT FEE.

     If (a) any Adjustment Event shall occur within 90 days after the Optional
Redemption Date and (b) the Consideration Per Share for such Adjustment Event is
greater than the Redemption Price Per Share then, immediately upon the
occurrence of such Adjustment Event, Avatech shall pay to each Warrant
Securityholder an amount equal to the product of (x) the number of shares of
Voting Common Stock issuable upon exercise of the Warrants of such Warrant
Securityholder that were redeemed and (y) the difference between the
Consideration Per Share for such Adjustment Event and the Redemption Price Per
Share paid to such Warrant Securityholder.

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     "Adjustment Event" means:

     (a)     the completion of an Initial Public Offering by Avatech; or

     (b)     25% or more of the:

             (i)    Common Stock on a Fully Diluted Basis (as defined in the
     Warrants) on an aggregate basis is sold, exchanged, transferred or
     otherwise disposed of by Avatech or any stockholder of Avatech (as part of
     a single sale or a series of sales); or

             (ii)   assets of Avatech and its Subsidiaries on a consolidated
     basis are, directly or indirectly, sold, exchanged, leased, transferred or
     otherwise disposed of as an entirety or substantially as an entirety (in
     one transaction or a series of transactions) to any Person or related group
     of Persons; or

     (c)     the stockholders or directors of Avatech consummate a definitive
agreement or plan for any merger, consolidation, recapitalization,
reorganization, restructuring or other business combination of Avatech and,
after giving effect to such transaction, the stockholders of Avatech on the
Optional Redemption Date will no longer hold, directly or indirectly, securities
representing in the aggregate a percentage of the total voting power entitled to
vote in the election of directors, managers or trustees of the corporation
surviving or resulting from such transaction greater than 75% of the percentage
of such total voting power with respect to Avatech represented by the Common
Stock held by such stockholders on the Optional Redemption Date; or

     (d)     the stockholders or directors of Avatech consummate a definitive
agreement or plan for the liquidation or dissolution of Avatech.

     "Consideration Per Share" means:

             (i)    in the case of any Adjustment Event described in clause (a)
     or (b)(i) of the definition of Adjustment Event, the highest consideration
     per share (if any) received by Avatech or any stockholder of Avatech from
     the sale, exchange, transfer or other disposition by it of Common Stock in
     connection with such Adjustment Event; and

             (ii)   in the case of any other Adjustment Event, the highest
     consideration per share of Common Stock that would be received by any
     stockholder of Avatech upon the disposition of all or substantially all of
     the Common Stock or of the assets of Avatech (determined by reference to
     all of the consideration received by the stockholders of Avatech (as
     stockholders) for that portion actually disposed of in connection with such
     Adjustment Event, or which would be received by such shareholders if
     Avatech were liquidated immediately following receipt of the consideration
     received by Avatech in connection with such Adjustment Event).

     "Optional Redemption Date" means the date of any redemption of the Warrants
pursuant to Section 5.3 of the Warrants.

     "Redemption Price Per Share" means the Optional Redemption Price (as
defined in the Warrants) which was paid to the Warrant Securityholders pursuant
to Section 5.3 of the Warrants (determined on a per share basis by reference to
the number of shares of Voting Common Stock issuable upon exercise of the
Warrants that were redeemed).

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     SECTION 2.9.   NO RESTRICTIVE AGREEMENTS.

     Avatech has not entered into and will not enter into any stockholders
rights agreement, registration rights agreement or similar arrangements the
performance by Avatech of the terms of which would in any manner restrict or
limit, or materially conflict with, the performance by Avatech of its
obligations under this Agreement.

                                   ARTICLE III

                               REGISTRATION RIGHTS

     SECTION 3.1.   [RESERVED].

     SECTION 3.2.   INCIDENTAL REGISTRATION.

     (a)     If Avatech at any time proposes to register any of its securities
under the Securities Act (other than by a registration on Form S-4 or S-8 or any
successor or similar forms) whether for its own account or for the account of
the holder or holders of shares other than Registrable Shares (any such shares
with respect to any registration, "Other Shares") requested to be included in
such registration by the holder or holders thereof, it will each such time give
prompt written notice to all Warrant Securityholders of its intention to do so
and of such holders' rights under the Section 3.2. Upon the written request of
any such holder made within 20 days after the receipt of any such notice (which
request shall specify the Registrable Securities intended to be disposed of by
such holder and the intended method of disposition thereof), Avatech will use
its best efforts to effect the registration under the Securities Act of all
Registrable Securities which Avatech has been so requested to register by the
holders thereof, to the extent requisite to permit the disposition (in
accordance with the intended methods thereof as aforesaid) of the Registrable
Securities so to be registered, by inclusion of such Registrable Securities in
the registration statement which covers the securities which Avatech proposes to
register; PROVIDED that if, at any time after giving written notice of its
intention to register any securities and prior to the effective date of the
registration statement filed in connection with such registration, Avatech shall
determine for any reason either not to register to delay registration of such
securities, Avatech may, at its election, give written notice of such
determination to each holder of Registrable Securities and, thereupon, (i) in
the case of a determination not to register, shall be relieved of its obligation
to register any Registration Expenses in connection therewith), and (ii) in the
case of a determination to delay registering, shall be permitted to delay
registering any Registrable Securities, for the same period as the delay in
registering such other securities. Avatech will pay all Registration Expenses in
connection with each registration of Registrable Securities pursuant to this
Section 3.2.

     (b)     If Avatech at any time proposes to register any of its securities
under the Securities Act as contemplated by Section 3.2 and such securities are
to be distributed by or through one or more underwriters, Avatech will, if
requested by any holder of Registrable Securities as provided in this Section
3.2, use its best efforts to arrange for such underwriters to include all the
Registrable Securities to be offered and sold by such holder among the
securities to be distributed by such underwriters, PROVIDED that if the managing
underwriter of such underwritten offering shall inform Avatech and holders of
the Registrable Securities requesting such registration and all other holders of
any other shares of Common Stock which shall have exercised, in respect of such
underwritten offering, registration rights comparable to the rights under this
Section 3.2 by letter of its belief that inclusion in such distribution of all
or a specified number of such securities proposed to be distributed by such
underwriters would interfere with the successful marketing of the securities
being distributed by such underwriters (such letter to state the

                                        9
<Page>

basis of such belief and the approximate number of such Registrable Securities
and such Other Shares proposed so to be registered which may be distributed
without such effect), then Avatech may, upon written notice to all holders of
such Registrable Securities and holders of such Other Shares, reduce PRO RATA
(if and to be extent stated by such managing underwriter to be necessary to
eliminate such effect) the number of such Registrable Securities and Other
Shares the registration of which shall have been requested by each holder
thereof so that the resultant aggregate number of such Registrable Securities
and Other Shares so included in such registration, together with the number of
securities to be included in such registration for the account of Avatech, shall
be equal to the number of shares stated in such managing underwriter's letter.

     SECTION 3.3.   REGISTRATION PROCEDURES.

     (a)     If and whenever Avatech is required to effect the registration of
any Registrable Securities under the Securities Act as provided in Section 3.2.,
Avatech shall, as expeditiously as possible:

             (i)    prepare and (within 60 days after the end of the period
     within which requests for registration may be given to Avatech or in any
     event as soon thereafter as possible) file with the Commission the
     requisite registration statement to effect such registration (including
     such audited financial statements as may be required by the Securities Act)
     and thereafter use its best efforts to cause such registration statement to
     become and remain effective; PROVIDED that Avatech may discontinue any
     registration of its securities which are not Registrable Securities at any
     time prior to the effective date of the registration statement relating
     thereto; PROVIDED FURTHER that before filing such registration statement or
     any amendments thereto, Avatech will furnish to the counsel selected by the
     holders of Registrable Securities which are to be included in such
     registration copies of all such documents proposed to be filed, which
     documents will be subject to the review of such counsel;

             (ii)   prepare and file with the Commission such amendments and
     supplements to such registration statement and the prospectus used in
     connection therewith as may be necessary to keep such registration
     statement effective and to comply with the provisions of the Securities Act
     with respect to the disposition of all securities covered by such
     registration statement until the expiration of 90 days after such
     registration statement becomes effective;

             (iii)  furnish to each seller of Registrable Securities covered by
     such registration statement and each underwriter, if any, of the securities
     being sold by such seller such number of conformed copies of such
     registration statement and of each such amendment and supplement thereto
     (in each case including all exhibits), such number of copies of the
     prospectus contained in such registration statement (including each
     preliminary prospectus and any summary prospectus) and any other prospectus
     filed under Rule 424 under the Securities Act, in conformity with the
     requirements of the Securities Act, and such other documents, as such
     seller and underwriter, if any, may reasonably request in order to
     facilitate the public sale or other disposition of the Registrable
     Securities owned by such seller;

             (iv)   use its best efforts to register or qualify all Registrable
     Securities and other securities covered by such registration statements
     under blue sky or similar laws of such jurisdictions as any seller thereof
     and any underwriter of the securities being sold by such seller shall
     reasonably request, to keep such registrations or qualifications in effect
     for so long as such registration statement remains in effect, and take any
     other action which may be reasonably necessary or advisable to enable such
     seller and underwriter to consummate the disposition in such jurisdictions
     of the securities owned by such seller, except that Avatech shall not for
     any such purpose be required to qualify generally to do business as a
     foreign corporation in any

                                       10
<Page>

     jurisdiction wherein it would not but for the requirements of this
     subdivision (iv) be obligated to be so qualified, to subject itself to
     taxation in any such jurisdiction or to consent to general service of
     process in any such jurisdiction;

             (v)    use its best efforts to cause all Registrable Securities
     covered by such registration statement to be registered with or approved by
     such other governmental agencies or authorities as may be necessary to
     enable the seller or sellers thereof to consummate the disposition of such
     Registrable Securities;

             (vi)   notify the holders of Registrable Securities and the
     managing underwriter or underwriters, if any, promptly and confirm such
     advice in writing promptly thereafter:

                    (A)   when the registration statement, the prospectus or any
             prospectus supplement related thereto or post-effective amendment
             to the registration statement has been filed, and, with respect to
             the registration statement or any post-effective amendment thereto,
             when the same has become effective;

                    (B)   of any request by the Commission for amendments or
             supplements to the registration statement or the prospectus or for
             additional information;

                    (C)   of the issuance by the Commission of any stop order
             suspending the effectiveness of the registration or the initiation
             of any proceedings by any Person for that purpose; and

                    (D)   of the receipt by Avatech of any notification with
             respect to the suspension of the qualification of any Registrable
             Securities for sale under the securities or blue sky laws of any
             jurisdiction or the initiation or threat of any proceeding for such
             purpose;

             (vii)  notify each seller of Registrable Securities covered by such
     registration statement, at any time when a prospectus relating thereto is
     required to be delivered under the Securities Act, upon Avatech' discovery
     that, or upon the happening of any event as a result of which, the
     prospectus included in such registration statement, as then in effect,
     includes as untrue statement of a material fact or omits to state any
     material fact required to be stated therein or necessary to make the
     statements therein not misleading in the light of the circumstances then
     existing, and at the request of any such seller promptly prepare and
     furnish to such seller and each underwriter, if any, a reasonable number of
     copies of a supplement to or an amendment of such prospectus as may be
     necessary so that, as thereafter delivered to the purchasers of such
     securities, such prospectus shall not include an untrue statement of a
     material fact or omit to state a material fact required to be stated
     therein or necessary to make the statements therein not misleading in the
     light of the circumstances then existing;

             (viii) make every reasonable effort to obtain the withdrawal of any
     order suspending the effectiveness of the registration statement at the
     earliest possible moment;

             (ix)   otherwise use its best efforts to comply with all applicable
     rules and regulations of the Commission, and make available to its security
     holders, as soon as reasonably practicable, an earnings statement covering
     the period of at least twelve months, but not more than eighteen months,
     beginning with the first full calendar quarter after the effective date of
     such registration statement, which earnings statement shall satisfy the
     provisions of Section 11(a) of the Securities Act;

                                       11
<Page>

             (x)    provide and cause to be maintained a transfer agent and
     registrar for all Registrable Securities covered by such registration
     statement from and after a date not later than the effective date of such
     Registration Statement;

             (xi)   use its best efforts to list all Registrable Securities
     covered by such registration statement on any securities exchange on which
     any of the Common Stock is then listed and, if not so listed, to be listed
     on the NASD automated quotation system and, if listed on the NASD automated
     quotation system, use its best efforts to secure designation of all such
     Registrable Securities covered by such registration statement as a NASDAQ
     "national market system security" within the meaning of Rule 11Aa2-1 of the
     Securities and Exchange Commission or, failing that, to secure NASDAQ
     authorization for such Registrable Securities and, without limiting the
     generality of the foregoing, to arrange for at least two market makers to
     register as such with respect to such Registrable Securities with the NASD;
     and

             (xii)  use its best efforts to provide a CUSIP number for the
     Registrable Securities, not later than the effective date of the
     registration.

Avatech may require each seller of Registrable Securities as to which any
registration is being effected to furnish Avatech such information regarding
such seller and the distribution of such securities as Avatech may from time to
time reasonably request in writing for purposes of preparing the relevant
registration statement and amendments and supplements thereto.

     (b)     Each holder of Registrable Securities agrees by acquisition of such
Registrable Securities that, upon receipt of any notice from Avatech of the
occurrence of any event of the kind described in subdivision (vii) of Section
3.3(a), such holder will forthwith discontinue such holder's disposition of
Registrable Securities pursuant to the registration statement relating to such
Registrable Securities until such holder's receipt of the copies of the
supplemented or amended prospectus contemplated by subdivision (vii) of Section
3.3(a). In the event Avatech shall give any such notice, the periods specified
in subdivision (ii) of Section 3.3(a) shall be extended by the length of the
period from and including the date when each seller of any Registrable
Securities covered by such registration statement shall have received such
notice to the date on which each such seller has received the copies of the
supplemented or amended prospectus contemplated by subdivision (vii) of Section
3.3(a).

     (c)     If any such registration or comparable statement to any holder of
Registrable Securities by name or otherwise as the holder of any securities of
Avatech, then such holder shall have the right to require, in the event that
such reference to such holder by name or otherwise is not required by the
Securities Act or any similar federal statute then in force, the deletion of the
reference to such holder.

     SECTION 3.4.   UNDERWRITTEN OFFERINGS.

     (a)     [reserved];

     (b)     Each holder of Registrable Securities agrees by acquisition of such
Registrable Securities not to sell, make any short sale of, loan, grant any
option for the purchase of, effect any public sale or distribution of or
otherwise dispose of any equity securities of Avatech, during the ten days prior
to and the 90 days after the effective date of any underwritten registration
pursuant to Section 3.2 has become effective, except as part of such
underwritten registration, whether or not such holder participates in such
registration, and except as otherwise permitted by the managing underwriter of
such underwriting (if any). Each holder of Registrable Securities agrees that
Avatech may instruct its transfer agent to place stop transfer notations in its
records to enforce this Section 3.4(b).

                                       12
<Page>

     (c)     [reserved];

     (d)     No Person may participate in any underwritten offering hereunder
unless such Person (i) agrees to sell such Person's securities on the basis
provided in any underwriting arrangements approved, subject to the terms and
conditions hereof, by the Person or a majority of the Persons entitled to
approve such arrangements and (ii) completes and executes all agreements,
questionnaires, indemnities and other documents (other than powers of attorney)
required under the terms of such underwriting arrangements.

     SECTION 3.5.   INDEMNIFICATION.

     (a)     Avatech agrees to indemnify and hold harmless each holder of
Registrable Securities whose Registrable Securities are covered by any
registration statement, its directors and officers and each other Person, if
any, who controls such holder within the meaning of the Securities Act, against
any losses, claims, damages or liabilities, joint or several, to which any such
indemnified party may become subject under the Securities Act or otherwise,
insofar as such losses, claims, damages or liabilities (or actions or
proceedings, whether commenced or threatened, in respect thereof) arise out of
or are based upon any untrue statement or alleged untrue statement of any
material fact contained in any registration statement under which such
securities were registered under the Securities Act, any preliminary prospectus,
final prospectus or summary prospectus contained therein, or any amendment or
supplement thereto, or any omission or alleged omission to state therein a
material fact required to be stated therein or necessary to make the statements
therein not misleading, and Avatech will reimburse each such indemnified party
for any legal or any other expenses reasonably incurred by them in connection
with investigating or defending any such loss, claim, liability, action or
proceeding; PROVIDED that Avatech shall not be liable in any such case to the
extent that any such loss, claim, damage, liability (or action or proceeding in
respect thereof) or expense arises out of or is based upon an untrue statement
or alleged untrue statement or omission or alleged omission made in such
registration statement, any such preliminary prospectus, final prospectus,
summary prospectus, amendment or supplement in reliance upon and in conformity
with written information furnished to Avatech by or on behalf of such holder
specifically for use in the preparation thereof. In addition, Avatech shall
indemnify any underwriter of such offering and each other Person, if any, who
controls any such underwriter within the meaning of the Securities Act in
substantially the same manner and to substantially the same extent as the
indemnity herein provided to each Indemnified Party. Such indemnity shall remain
in full force and effect regardless of any investigation made by or on behalf of
such holder or any such director, officer, underwriter or controlling person and
shall survive the transfer of such securities by such holder.

     (b)     Each prospective seller of Registrable Securities hereunder shall
indemnify and hold harmless (in the same manner and to the same extent as set
forth in subdivision (a) of this Section 3.5) Avatech, each director of Avatech,
each officer of Avatech and each other person, if any, who controls Avatech
within the meaning of the Securities Act, with respect to any statement or
alleged statement in or omission or alleged omission from such registration
statement, any preliminary prospectus, final prospectus or summary prospectus
contained therein, or any amendment or supplement thereof, if such statement or
alleged statement or omission or alleged omission was made in reliance upon and
in conformity with written information furnished to Avatech by or on behalf of
such seller specifically for use in the preparation of such registration
statement, preliminary prospectus, final prospectus, summary prospectus,
amendment or supplement. Any such indemnity shall remain in full force and
effect, regardless of any investigation made by or on behalf of Avatech or any
such director, officer or controlling person and shall survive the transfer of
such securities by such seller. The amount payable by any prospective seller of
Registrable Security with respect to the Indemnification set forth in this
subsection (b) in connection with any offering of securities will not exceed the
amount of net proceeds received by such prospective seller pursuant to such
offering.

                                       13
<Page>

     (c)     Promptly after receipt by an indemnified party of notice of the
commencement of any action or proceeding involving a claim referred to in the
preceding subdivisions of this Section 3.5, such indemnified party will, if a
claim in respect thereof is to be made against an indemnifying party, give
written notice to the latter of the commencement of such action; PROVIDED that
the failure of any indemnified party to give notice as provided herein shall not
relieve the indemnifying party of its obligations under the preceding
subdivisions of this Section 3.5, except to the extent that the indemnifying
party is actually prejudiced by such failure to give notice. In case any such
action is brought against an indemnified party, unless in such indemnified
party's reasonable judgment a conflict of interest between such indemnified and
indemnifying parties may exist in respect of such claim, the indemnifying party
shall be entitled to participate in and to assume the defense thereof, jointly
with any other indemnifying party similarly notified, to the extent that the
indemnifying party may wish, with counsel reasonably satisfactory to such
indemnified party, and after notice from the indemnifying party to such
indemnified party of its election so to assume the defense thereof, the
indemnifying party shall not be liable to such indemnified party for any legal
or other expenses subsequently incurred by the latter in connection with the
defense thereof. No indemnifying party shall, without the consent of the
indemnified party, consent to entry of any judgment or enter into any settlement
of any such action which does not include as an unconditional term thereof the
giving by the claimant or plaintiff to such indemnified party of a release from
all liability in respect to such claim or litigation. No indemnified party shall
consent to entry of any judgment or enter into any settlement of any such action
the defense of which has been assumed by an indemnifying party without the
consent of such indemnifying party.

     (d)     If the indemnification provided for in the preceding subdivisions
of this Section 3.5 is unavailable to an indemnified party in respect of any
expense, loss, claim, damage or liability referred to therein, then each
indemnifying party, in lieu of indemnifying such indemnified party, shall
contribute to the amount paid or payable by such indemnified party as a result
of such expense, loss, claim, damage or liability (i) in such proportion as is
appropriate to reflect the relative benefits received by Avatech on the one hand
and the holder or underwriter, as the case may be, on the other from the
distribution of the Registrable Securities or (ii) if the allocation provided by
clause (i) above is not permitted by applicable law, in such proportion as is
appropriate to reflect not only the relative benefits referred to in clause (i)
above but also the relative fault of Avatech on the one hand and of the holder
or underwriter, as the case may be, on the other in connection with the
statements or omissions which resulted in such expense, loss, damage or
liability, as well as any other relevant equitable considerations. The relative
benefits received by Avatech on the one hand and the holder or underwriter, as
the case may be, on the other in connection with the distribution of the
Registrable Securities shall be deemed to be in the same proportion as the total
net proceeds received by Avatech from the initial sale of the Registrable
Securities by Avatech to the purchaser bear to the gain realized by the selling
holder or the underwriting discounts and commissions received by the
underwriter, as the case may be. The relative fault of Avatech on the one hand
and of the holder or underwriter, as the case may be, on the other shall be
determined by reference to, among other things, whether the untrue or alleged
untrue statement of a material fact or omission to state a material fact relates
to information supplied by Avatech, by the holder or by the underwriter and
parties' relative intent, knowledge, access to information and opportunity to
correct or prevent such statement or omission; PROVIDED that the foregoing
contribution agreement shall not inure to the benefit of any indemnified party
if indemnification would be unavailable to such indemnified party by reason of
the proviso contained in the first sentence of subdivision (a) of this Section
3.5, and in no event shall the obligation of any indemnifying party to
contribute under this subdivision (d) exceed the amount that such indemnifying
party would have been obligated to pay by way of indemnification if the
indemnification provided for under subdivisions (a) or (b) of this Section 3.5
had been available under the circumstances.

     Avatech and the holders of Registrable Securities agree that it would not
be just and equitable if contribution pursuant to this subdivision (d) were
determined by PRO RATA allocation (even if the holders

                                       14
<Page>

and any underwriters were treated as one entity for such purpose) or any other
method of allocation that does not take account of the equitable considerations
referred to in the immediately preceding paragraph and subdivision (c) of this
Section 3.5 The amount paid or payable by an indemnified party as a result of
the losses, claims, damages and liabilities referred to in the immediately
preceding paragraph shall be deemed to include, subject to the limitations set
forth above, any legal or other expenses reasonably incurred by such indemnified
party in connection with investigating or defending any such action or claim.

     Notwithstanding the provisions of this subdivision (d), no holder of
Registrable Securities or underwriter shall be required to contribute any amount
in excess of the amount by which (i) in the case of any such holder, the net
proceeds received by such holder from the sale of Registrable Securities or (ii)
in the case of an underwriter, the total price at which the Registrable
Securities purchased by it and distributed to the public were offered to the
public exceeds, in any such case, the amount of any damages that such holder or
underwriter has otherwise been required to pay by reason of such untrue or
alleged untrue statement or omission. No Person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Securities Act)
shall be entitled to contribution from any person who was not guilty of such
fraudulent misrepresentation.

                                   ARTICLE IV

                                  MISCELLANEOUS

     SECTION 4.1.   NOTICES.

     All notices and other communications provided for hereunder shall be dated
and in writing and shall be deemed to have been given (i) if given by telecopy,
when such telecopy is transmitted to the telecopy number specified in this
Section and telephonic confirmation of receipt thereof is obtained or (ii) if
given by mail, prepaid overnight courier or any other means, when received at
the address specified in this Section or when delivery at such address is
refused. Such notices shall be addressed to the appropriate party to the
attention of the person who executed this Agreement at the address or telecopy
number set forth under such party's signature below (or to the attention of such
other person or to such other address or telecopy number as such party shall
have furnished to each other party in accordance with this Section 4.1).

     SECTION 4.2.   BINDING NATURE OF AGREEMENT.

     This Agreement shall be binding upon the inure to the benefit of and be
enforceable by the parties hereto or their successors in interest, except as
expressly otherwise provided herein.

     SECTION 4.3.   DESCRIPTIVE HEADINGS.

     The descriptive headings of the several sections and paragraphs of this
Agreement are inserted for reference only and shall not limit or otherwise
affect the meaning hereof.

     SECTION 4.4.   SPECIFIC PERFORMANCE.

     Without limiting the rights of each party hereto to pursue all other legal
and equitable rights available to such party for the other parties' failure to
perform their obligations under this Agreement, the parties hereto acknowledge
and agree that the remedy at law for any failure to perform their obligations

                                       15
<Page>

hereunder would be inadequate and that each of them, respectively, shall be
entitled to specific performance, injunctive relief or other equitable remedies
in the event of any such failure.

     SECTION 4.5.   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 NORTH
CAROLINA. EACH OF THE PARTIES HERETO HEREBY SUBMITS TO THE NONEXCLUSIVE
JURISDICTION OF THE UNITED STATES DISTRICT COURT FOR THE WESTERN DISTRICT OF
NORTH CAROLINA AND OF ANY NORTH CAROLINA STATE COURT SITTING IN MECKLENBURG
COUNTY FOR PURPOSES OF ALL LEGAL PROCEEDINGS ARISING OUT OF OR RELATING TO THIS
AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY. EACH OF THE PARTIES HERETO
IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION WHICH
SUCH PARTY MAY NOW OR HEREAFTER HAVE TO THE LAYING OF THE VENUE OF ANY SUCH
PROCEEDING BROUGHT IN SUCH A COURT AND ANY CLAIM THAT ANY SUCH PROCEEDING
BROUGHT IN SUCH A COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM. EACH OF THE
PARTIES HERETO IRREVOCABLY CONSENTS TO SERVICE OF PROCESS IN THE MANNER PROVIDED
FOR NOTICES IN SECTION 4.1. NOTHING IN THIS AGREEMENT WILL AFFECT THE RIGHT OF
ANY PARTY TO THIS AGREEMENT TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY
LAW.

     SECTION 4.6.   COUNTERPARTS.

     This Agreement may be executed simultaneously in any number of
counterparts, each of which shall be deemed an original, but all such
counterparts shall together constitute one and the same instrument.

     SECTION 4.7.   SEVERABILITY.

     In the event that any one or more of the provisions contained herein, or
the application thereof in any circumstances, is held invalid, illegal or
unenforceable in any respect for any reason, the validity, legality and
enforceability of any such provision in each other respect and of the remaining
provisions contained herein shall not be in any impaired hereby. It being
intended that all of the rights and privileges of the parties hereto shall be
enforceable to the fullest extent permitted by law.

     SECTION 4.8.   ENTIRE AGREEMENT.

     This Agreement is intended by the parties hereto as a final and complete
expression of their agreement and undertaking in respect to the subject matter
contained herein. This Agreement supersedes all prior agreement and
understandings, written or oral, between the parties with respect to such
subject matter.

     SECTION 4.9.   AMENDMENT TO WAIVER.

     Any provision of this Agreement may be amended if, but only if, such
amendment is in writing and is signed by Avatech and the Warrantholders. Any
provision may be waived if, but only if, such waiver is in writing and is signed
by the party or parties waiving such provision and for whose benefit such
provision is intended.

                                       16
<Page>

     SECTION 4.10.  NO THIRD PARTY BENEFICIARIES.

     Nothing in this Agreement shall convey any rights upon any person or entity
which is not a party or an assignee of a party to this Agreement.

                                       17
<Page>

     IN WITNESS WHEREOF, the parties have caused this Agreement to be executed
and delivered as of the date first above written.

                                        AVATECH SOLUTIONS, INC.

                                        By: /s/ Henry D. Felton
                                            ------------------------------------
                                        Name: Henry D. Felton
                                              ----------------------------------
                                        Title: Chairman & Chief Executive Off.
                                               ---------------------------------

                                        Address:   11403 CRONHILL DR., Suite A
                                                   -----------------------------
                                                   Owings Mills, MD. 21117
                                                   -----------------------------
                                        Telecopy:  410-902-8324
                                                   -----------------------------

                                        [STOCKHOLDERS IDENTIFIED IN
                                        2.4, 2.5, AND, IF DRAG RIGHTS OPTION
                                        USED, 2.6]

                                        By: - NONE -
                                           -------------------------------------
                                        Name:
                                             -----------------------------------
                                        Title:
                                              ----------------------------------

                                        Address:
                                                   -----------------------------

                                                   -----------------------------
                                        Telecopy:
                                                   -----------------------------

                                        THE CIT GROUP/BUSINESS CREDIT, INC.

                                        By:
                                           -------------------------------------
                                        Name:
                                             -----------------------------------
                                        Title:
                                              ----------------------------------

                                        Address:   The CIT Group/Business
                                                     Credit, Inc.
                                                   Two First Union Center
                                                   Charlotte, North
                                                     Carolina 28230-0337
                                                   Attn: Regional Credit Manager
                                        Telecopy:  (704) 339-2208
                                        Telephone:

<Page>

     IN WITNESS WHEREOF, the parties have caused this Agreement to be executed
and delivered as of the date first above written.

                                        AVATECH SOLUTIONS, INC.

                                        By:
                                           -------------------------------------
                                        Name:
                                             -----------------------------------
                                        Title:
                                              ----------------------------------

                                        Address:   Avatech Solutions, Inc.
                                                   11403 Cronhill Drive, Suite A
                                                   Owings Mills, Maryland 21117
                                                   Attn:  Henry Felton
                                                   Fax No.  410-902-8324

                                        THE CIT GROUP/BUSINESS CREDIT, INC.

                                        By: Dominick A. Varipapa
                                           -------------------------------------
                                        Name: DOMINICK A. VARIPAPA
                                             -----------------------------------
                                        Title: ASSISTANT VICE PRESIDENT
                                              ----------------------------------

                                        Address:   The CIT Group/Business
                                                     Credit, Inc.
                                                   Two First Union Center
                                                   Charlotte, North
                                                     Carolina 28230-337
                                                   Attn: Regional Credit Manager
                                        Telecopy:  (704) 339-2208
                                        Telephone: (704) 339-2217<Page>

                                                                   EXHIBIT 10.06

                                 LOAN AGREEMENT

     This Loan Agreement (the "Agreement") is entered into as of this 25th day
of January 1999 between Autodesk, Inc. (the "Holder"), a Delaware corporation,
with its principal offices located at 111 McInnis Parkway, San Rafael,
California 94903 and Avatech Solutions, Inc., with its principal offices located
at Owings Mills, Maryland, Avatech of California, Inc., Avatech of Connecticut,
Inc., Avatech Solutions of Colorado, Inc., Avatech of Florida, Inc., Avatech of
Maryland, Inc., Avatech of Michigan, Inc., Avatech of Nebraska, Inc., Avatech of
New Jersey, Inc., Avatech of New York, Inc., Avatech of Virginia, Inc., and
Technical Learningware Company, Inc. (hereinafter collectively the "Borrower").

                                    RECITALS

     A.    Holder wishes to lend to Borrower and Borrower wishes to borrow from
Holder up to Three Million Dollars ($3,000,000.00) on the terms and conditions
set forth in the Secured Promissory Notes attached hereto as Exhibit A (the
"Note")

     B.    Holder and Borrower agree that such loan and any and all other
amounts due Holder from Borrower at any time shall be secured by the assets of
Borrower (the "Collateral") on the terms and conditions set forth in the
Security Agreement between Holder and Borrower attached hereto as Exhibit B (the
"Security Agreement").

     C.    In connection with making such loan, Holder requires that Borrower
makes certain representations, warranties and covenants, all as set forth
hereinafter, upon which Holder relies in making such loan.

     NOW, THEREFORE, IN CONSIDERATION FOR THE MUTUAL COVENANTS AND
REPRESENTATIONS SET FORTH HEREIN, THE PARTIES AGREE AS FOLLOWS:

     1.    LOAN.

           1.1      Subject to the terms and conditions of this Agreement,
Holder agrees to lend to Borrower and Borrower agrees to borrow from Holder up
to Three Million Dollars ($3,000,000.00) pursuant to the terms and conditions of
the Note.

           1.2      The loan shall be made at a closing (the "Closing") to be
held at the principal officers of Holder, as set forth above, on the date of
this Agreement or such later date as shall be mutually agreeable to Holder and
Borrower (the "Closing Date"), at which time Holder shall (i) deliver to
Borrower a wire transfer of Three Million Dollars ($3,000,000.00); and (ii)
Borrower shall execute and deliver to Holder the Note and Borrower and Holder
shall execute the Security Agreement.

           1.3      Borrower understands that Holder makes no promises of any
further

                                        1
<Page>

support. Accordingly, Holder shall have no obligation to provide any further
financial support beyond that contemplated under the terms of this Agreement,
nor shall Holder have any obligation to provide any technical, marketing or
other advice, or opportunities to Borrower. Holder reserves the right to provide
or refuse to provide any assistance in Holder's sole discretion.

     2.    SECURITY.

           All obligations of Borrower under this Agreement and the Note shall
be secured by the Collateral pursuant to the terms and conditions set forth in
the Security Agreement, executed by Borrower as debtor in favor of Holder as
secured party, granting Holder a security interest in the Collateral (subject
only to the security interest held by First Union National Bank, or such
financial institution replacing it as a secured party, under various loan
documents for an amount not exceeding Three Million Dollars ($3,000,000.00) in
principal, plus interest, attorneys' fees, late charges, and other costs and
expenses due and owing under the agreements between Borrower and First Union
National Bank (the "Credit Limit")). Borrower covenants and agrees to execute
and deliver the Security Agreement and such other documents as may be necessary
for the perfection and preservation of Holder's security interest in the
Collateral.

     3.    CONDITIONS PRECEDENT.

           The obligation of Holder to disburse the loan to Borrower at Closing
is subject to the condition precedent that, on the Closing Date, there shall
have been delivered to Holder the following documents executed by Borrower:

           3.1      This Agreement;

           3.2      The Note;

           3.3      The Security Agreement; and

           3.4      Appropriate Financing Statements on Form UCC-1 relating to
the Collateral subject to the Security Agreement.

     4.    REPRESENTATIONS AND WARRANTIES OF BORROWER.

           Borrower represents and warrants that:

           4.1      Each company listed as Borrower is a corporation duly
organized and existing under the laws of a state, and is properly licensed and
in good standing in every jurisdiction in which it is doing business, except
where failure to be so qualified would not have a material adverse effect on
Borrower's business.

                                        2
<Page>

           4.2      The execution, delivery and performance of this Agreement
and any instrument or agreement required of Borrower hereunder are within
Borrower's powers, have been duly authorized and are not in conflict with the
terms of the articles of incorporation or bylaws of Borrower, or any instrument
or agreement to which Borrower is a party or by which Borrower is bound or
affected.

           4.3      No approval, consent, exemption or other action by, or
notice to or filing with, any governmental authority is necessary in connection
with the execution, delivery, performance, or enforcement of this Agreement or
any instrument or agreement required hereunder, except as may have been obtained
and certified copies of which have been delivered to Holder.

           4.4      There is no law, rule or regulation, nor is there any
judgment, decree or order of any court or governmental authority binding on
Borrower, which would be contravened by the execution, delivery, performance or
enforcement of this Agreement or any instrument or agreement required of
Borrower hereunder.

           4.5      This Agreement is a legal, valid and binding agreement of
Borrower, enforceable against Borrower in accordance with its terms, and any
instrument or agreement required to Borrower hereunder, when executed and
delivered, and will be similarly legal, valid, binding and enforceable, except
as enforcement may be limited by bankruptcy, insolvency or other similar laws
affecting the enforcement of creditors' rights generally, and subject to rules
of law governing specific performance, injunctive relief and other equitable
remedies.

           4.6      Borrower has good and marketable title to the Collateral
which is subject to the Security Agreement, free and clear of all clouds to
title and of all security interests, liens, encumbrances or rights of others,
other than those in favor of First Union National Bank and those listed on
Schedule A attached hereto.

           4.7      Borrower represent that as of the Closing that the loan by
Holder hereunder shall be prior and superior to any other indebtedness of
Borrower other than the security interest held by First Union National Bank
("Bank"). Except for the due filing or recording of financing statements on Form
UCC-1 pursuant to the Security Agreement, no further action is necessary in
order to establish and perfect Holder's security interest in or lien on all
Collateral subject only to the security interest of the Bank.

           4.8      There are no suits, proceedings, claim or disputes pending
or, to the knowledge of Borrower, threatened against or affecting Borrower or
its property, the adverse determination of which might affect Borrower's
financial condition or operations or impair Borrower's ability to perform their
obligations hereunder or under any instrument or agreement required hereunder.

           4.9      Borrower has provided to Holder preliminary drafts of
financial statements of Borrower for fiscal year end 1997 and 1998 (June 1997
and June 1998), and financial

                                        3
<Page>

statement and balance sheet, and unaudited financial statements for the period
of July through September 1998 (collectively the "Financial Statements").
Borrower represents that the Financial Statements were prepared in accordance
with generally accepted accounting principles and fairly represents Borrower's
financial condition and results of operations as of the date thereof.

     5.    COVENANTS.

           Borrower covenants and agrees that so long as any amount is due
Holder from Borrower upon the Note or otherwise:

           5.1      Borrower will promptly notify Holder of any "Event of
Default" (the term "Events of Default" being as defined in the form of Security
Agreement attached hereto as Exhibit B) or any event which, upon a lapse of time
or notice or both, would become an Event of Default.

           5.2      Borrower will deliver to Holder as soon as available, but no
later than one hundred twenty (120) days after the close of each fiscal year,
Borrower's financial statements for the fiscal year, prepared in accordance with
generally accepted accounting principles and certified by independent certified
public accountants reasonably acceptable to Holder.

           5.3      Borrower will deliver to Holder as soon as available, but no
later than forty-five (45) days after the close of each quarter, Borrower's
unaudited financial statements as of the close of such quarter, certified by a
responsible officer of Borrower as being complete and correct and fairly
representing Borrower's financial condition and results of operations.

           5.4      Borrower will deliver to Holder at the Closing a written
budget for each fiscal year occurring during the term of this Agreement and,
when available but in no event later than ninety (90) days after each fiscal
year end occurring during the term of this Agreement, a budget for each
succeeding fiscal year, together with any written revisions to such budgets.

           5.5      Borrower will deliver to Holder such additional information
relating to Borrower's financial condition and results of operations as Holder
may reasonably request from time to time.

           5.6      Borrower agrees that proceeds from the loan made hereunder
shall be used for the purpose of opening new offices, hiring new employees,
producing training materials, purchasing and selling Holder's products, and
repayment of any debt due and owed by Borrower to Holder or to First Union
National Bank. In no event shall proceeds from the loan be used for any of the
following purposes without prior written consent of Holder:

                    (a)   Acquisition of securities or assets of another
business;

                    (b)   Acquisition of property, plant or equipment except (i)
acquisitions in the ordinary course of business each in the amount of less than
Fifty Thousand Dollars

                                        4
<Page>

($50,000.00); and (ii) such equipment or Holder's products as are directly
related to the primary purpose of the loan.

                    (c)   Repayment of any debt, including shareholder notes,
other than as explicitly allowed in this section;

                    (d)   Bonuses, extraordinary salary increases or deferred
compensation for officers or directors of Borrower; or

                    (e)   Trade shows, advertising, production of marketing
materials or brochures.

           5.7      Borrower will promptly notify Holder of any material claim,
action, suit or proceeding against Borrower or its assets.

           5.8      Borrower will maintain current capital, including
subordinated debt, of at least One Million Five Hundred Thousand Dollars
($1,500,000.00), plus equity existing as of the date of this Agreement.

           5.9      Borrower will maintain a ratio of current assets to current
liabilities (excluding the current portion of any subordinated indebtedness), in
each case determined in accordance with generally accepted accounting principles
of at least 1.0 to 1.0.

           5.10     Borrower will maintain a ratio of total liabilities to
permanent capital of no greater than 10 to 1.0

           5.11     Borrower will not borrow, from First Union National Bank or
otherwise, additional funds such that at any time there is due and owing from
Borrower to First Union National Bank an amount in excess of the Credit Limit or
further encumber any of the assets constituting Collateral under the Security
Agreement without the prior written consent of Holder.

     6.    EVENTS OF DEFAULT.

           The occurrence of any of the "Events of Default" as defined in the
Security Agreement, at the option of Holder, shall make the remaining unpaid
balance of the Note immediately due and payable.

     7.    CONFIDENTIAL INFORMATION.

           Each of Holder and Borrower agrees not to use any Confidential
Information of the other party disclosed to it, for its own use or use by any
other person or for any purposes except to carry out, perform and enforce its
obligations under agreements between Holder and Borrower, and not to disclose
any such Confidential Information except to employees (or

                                        5
<Page>

consultants subject to confidentiality provisions similar to this Section 7) who
are required to have such information in order to carry out, perform or enforce
such obligations. Borrower and Holder will take all reasonable measures to
protect the secrecy and avoid disclosure or use of Confidential Information in
order to prevent it from entering the public domain or possession of persons
other than those persons authorized hereunder to have any such information,
which measures shall include, without limitation, the highest degree of care
that each utilizes to protect its own confidential information of a similar
nature. Either party shall notify the affected party promptly in writing of any
misuse or misappropriation of Confidential Information which may come to such
party's attention.

           For purposes of this section, "Confidential Information" means (i)
the terms of this Agreement, the Secured Promissory Note and Security Agreement
and accompanying transactions (provided, however, that said Agreement, Secured
Promissory Note and Security Agreement may be disclosed to a party having a
secured position with Borrower prior to that of Holder), as well as (ii) any
proprietary information, technical data, trade secrets or know-how, including,
without limitation, research, product plans, products, services, customers,
markets, software, developments, inventions, processes, formulae, technology,
designs, drawings, engineering, hardware configuration information, marketing,
finances or other business or technological information disclosed by either
party to the other either directly or indirectly. "Confidential Information" of
a disclosing party does not include any information which: (i) is known to the
receiving party at the time of disclosure; (ii) has become publicly known
through no wrongful act of the receiving party; (iii) has been rightfully
received by the receiving party from a third party without restriction on
disclosure and without breach of any agreement with the disclosing party; (iv)
has been independently developed by the receiving party as evidenced by
appropriate documentation; (v) has been approved for release by written
authorization executed by an authorized officer of the disclosing party; (vi) is
required to be disclosed by the receiving party pursuant to a requirement of
law; or (vii) (A) is not provided in writing or on magnetic media, or (B) if
provided orally, is not confirmed in writing to be confidential within fifteen
(15) days after disclosure. Should Borrower wish to disclose the specific terms
of this Agreement or the other Loan Documents to a potential investor or
investors, it shall first obtain written consent to such disclosure from Holder,
which consent shall not be unreasonably withheld with respect to bona fide
potential investors.

           Each party acknowledges that the other's Confidential Information is
unique property of extreme value to the other party, and that unauthorized use
or disclosure thereof would cause the other party irreparable harm that could
not be compensated by monetary damages. Accordingly, each party agrees that the
other will be entitle to injunctive and preliminary relief to remedy any actual
or threatened unauthorized use or disclosure of the other party's Confidential
Information.

           Nothing in this Section 7 is intended to supersede any existing
agreement between the parties under which confidential technical or market
information has or may be given by one party to the other. As to matters not
covered by such existing agreements, this Section 7 shall

                                        6
<Page>

control in the absence of any specific agreement to the contrary.

     8.    MISCELLANEOUS.

           8.1      Any communications between the parties hereto or notices or
requests provided herein to be given may be given by mailing the same, postage
prepaid, to the other party as follows:

                                             BORROWER:

                                             Avatech Solutions, Inc.
                                             11403 Cronhill Drive, Suite A
                                             Owings Mills, MD 21117
                                             Attention: Charles Cullen

                                             and a courtesy copy to:

                                             Richard M. Goldberg, Esq.
                                             Shapiro and Olander
                                             20th Floor, Charles Center South
                                             36 South Charles Street
                                             Baltimore, MD 21201-3147

                                             HOLDER:

                                             Autodesk, Inc.
                                             111 McInnis Parkway
                                             San Rafael, California 94903
                                             Attention: Treasurer

                    8.2      This Agreement, together with the covenants and
warranties contained in it, shall bind and inure to the benefit of the parties
hereto and their respective successors and assigns, provided, however, that
Borrower may not assign this Agreement or any of the rights of Borrower
hereunder without the prior written consent of Holder.

                    8.3      No delay or omission by Holder to exercise any
right under this Agreement shall impair any such right, nor shall it be
construed as a waiver thereof. No waiver of any single breach or default under
this Agreement shall be deemed a waiver of any other breach or default. Any
waiver, consent or approval under this Agreement must be in writing to be
effective.

                    8.4      Borrower and Holder each shall bear its own costs
and expenses incurred in connection with the preparation and administration of
this Agreement and any instrument or agreement required hereunder. Borrower
agrees to pay all costs, expenses and

                                        7
<Page>

attorneys' fees reasonably incurred by Holder in connection with the enforcement
of this Agreement.

                    8.5      This Agreement, and any agreement, document or
instrument attached hereto or referred to herein, integrate all the terms and
conditions mentioned herein or incidental hereto, and supersede all oral
negotiations and prior writings in respect to the subject matter hereof. In the
event of any conflict between the terms, conditions and provisions of this
Agreement and any such agreement, document or instrument, the terms, conditions
and provisions of this Agreement shall prevail. This Agreement may be executed
in counterparts, and each counterpart shall be deemed an original instrument,
but together shall constitute one and the same instrument. Additionally, any
signatures sent by facsimile shall be deemed to be originals and shall have all
of the same force and effect and import as an original signature, regardless of
whether or not the parties shall or shall not later receive one or more such
original signature.

                                        8
<Page>

                    8.6      This Agreement shall be construed in accordance
with the laws of the State of California (excluding rules regarding conflicts of
law). The parties hereby submit to the personal jurisdiction of and venue in the
Superior Court of the State of California, County of Marin, and the United
States District Court for the Northern District of California in San Francisco.

                    8.7      The illegality or unenforceability of any provision
of this Agreement or any instrument or agreement required hereunder shall not in
any way affect or impair the legality or enforceability of the remaining
provisions of this Agreement or any instrument or agreement required hereunder.

                    8.8      In addition to any rights and remedies of Holder
provided by law, Holder shall have the right, without prior notice to Borrower,
any such notice being expressly waived by Borrower to the extent permitted by
applicable law, upon the occurrence and during the continuance of an Event of
Default, to set-off and apply against any indebtedness, whether matured or
unmatured, of Borrower to Holder, any amount owing from Holder to Borrower. The
aforesaid right of set-off may be exercised by Holder against Borrower or
against any trustee in bankruptcy, debtor-in-possession, assignee for the
benefit of creditors, receiver or execution, judgment or attachment creditor of
Borrower or against anyone else claiming through or against Borrower or such
trustee in bankruptcy, debtor-in-possession, assignee for the benefit of
creditors, receiver, or execution, judgment or attachment creditor,
notwithstanding the fact that such right of set-off shall not have been
exercised by Holder prior to the occurrence of an Event of Default. Holder
agrees promptly to notify Borrower after any such set-off and application by
Holder, PROVIDED that the failure to give such notice shall not affect the
validity of such set-off and application.

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement by
their duly authorized officers as of the day and year first above written.

"Holder"                                                "Borrower"

AUTODESK, INC.                               AVATECH SOLUTIONS, INC.

By: /s/ [ILLEGIBLE]                          By: /s/ Henry D. Felton
    -------------------------------
 Name: [ILLEGIBLE]                            Name: HENRY D. FELTON
      -----------------------------
 Title: [ILLEGIBLE]                           Title: CHAIRMAN & CEO
       ----------------------------

                                        9
<Page>

                                             AVATECH OF CALIFORNIA, INC.

                                             By: /s/ Henry D. Felton
                                                --------------------------------
                                              Name:  Henry D. Felton
                                                   -----------------------------
                                              Title: President
                                                    ----------------------------

                                             AVATECH OF CONNECTICUT, INC.

                                             By: /s/ Henry D. Felton
                                                --------------------------------
                                              Name:  Henry D. Felton
                                                   -----------------------------
                                              Title: President
                                                    ----------------------------

                                             AVATECH SOLUTIONS OF COLORADO, INC.

                                             By: /s/ Henry D. Felton
                                                --------------------------------
                                              Name:  Henry D. Felton
                                                   -----------------------------
                                              Title: President
                                                    ----------------------------

                                             AVATECH OF FLORIDA, INC.

                                             By: /s/ Henry D. Felton
                                                --------------------------------
                                              Name:  Henry D. Felton
                                                   -----------------------------
                                              Title: President
                                                    ----------------------------

                                             AVATECH OF MARYLAND, INC.

                                             By: /s/ Henry D. Felton
                                                --------------------------------
                                              Name:  Henry D. Felton
                                                   -----------------------------
                                              Title: President
                                                    ----------------------------

                                             AVATECH OF MICHIGAN, INC.

                                             By: /s/ Henry D. Felton
                                                --------------------------------
                                              Name:  Henry D. Felton
                                                   -----------------------------
                                              Title: President
                                                    ----------------------------

<Page>

                                             AVATECH OF NEBRASKA, INC.

                                             By: /s/ Henry D. Felton
                                                --------------------------------
                                              Name:  Henry D. Felton
                                                   -----------------------------
                                              Title: President
                                                    ----------------------------

                                             AVATECH OF NEW JERSEY, INC.

                                             By: /s/ Henry D. Felton
                                                --------------------------------
                                              Name:  Henry D. Felton
                                                   -----------------------------
                                              Title: President
                                                    ----------------------------

                                             AVATECH OF NEW YORK, INC.

                                             By: /s/ Henry D. Felton
                                                --------------------------------
                                              Name:  Henry D. Felton
                                                   -----------------------------
                                              Title: President
                                                    ----------------------------

                                             AVATECH OF VIRGINIA, INC.

                                             By: /s/ Henry D. Felton
                                                --------------------------------
                                              Name:  Henry D. Felton
                                                   -----------------------------
                                              Title: President
                                                    ----------------------------

                                             TECHNICAL LEARNINGWARE COMPANY,
                                             INC.

                                             By: /s/ Ronald C. Diegelman
                                                --------------------------------
                                              Name:  Ronald C. Diegelman
                                                    ----------------------------
                                              Title: Chairman
                                                    ----------------------------

<Page>

                                    EXHIBIT A

                             SECURED PROMISSORY NOTE

$3,000,000.00                                                   January 25, 1999
                                                          San Rafael, California

           FOR VALUE RECEIVED, Avatech Solutions, Inc., a corporation organized
under the laws of the State of Delaware, Avatech of California, Inc., Avatech of
Connecticut, Inc., Avatech Solutions of Colorado, Inc., Avatech of Florida,
Inc., Avatech of Maryland, Inc., Avatech of Michigan, Inc., Avatech of Nebraska,
Inc., Avatech of New Jersey, Inc., Avatech of New York, Inc., Avatech of
Virginia, Inc., and Technical Learningware Company, Inc. (hereinafter
collectively referred to as the "Borrower"), hereby promises to pay to Autodesk,
Inc., a corporation organized under the laws of the State of Delaware, or its
assigns ("Holder"), at the principal offices of the Holder presently located at
111 McInnis Parkway, San Rafael, California 94903, the principal sum of Three
Million Dollars ($3,000,000.00), together with accrued interest at the rate
specified hereinafter.

           This Note is issued subject to the terms and conditions of a Loan
Agreement between the Borrower and the Holder of even date herewith (the "Loan
Agreement"), as well as the following additional terms and conditions:

           1.       TERMS OF PAYMENT.

                    Principal and interest on this Note shall be due and payable
in eleven (11) quarterly equal installments (adjusted, however, for any
prepayments of principal) commencing with the payment of all accrued interest
and amortized principal on the first day of the month following six months from
the execution date (e.g., if the execution date is January 25, the first payment
shall be due August 1), and continuing thereafter on the same day of each
succeeding three month interval until maturity (e.g., if the execution date is
January 25, the second payment shall be due November 1). A copy of the payment
schedule is attached as Schedule 1.

           2.       RATE OF INTEREST.

                    The unpaid principal on this Note shall bear interest from
the date hereof until maturity at a rate of nine and three quarters percent
(9-3/4%) per annum.

           3.       SECURITY AGREEMENT.

                    Repayment of this Note is secured by certain assets of the
Borrower pursuant to a Security Agreement between the Borrower and the Holder of
even date herewith

                                       12
<Page>

(the "Security Agreement")

           4.       PREPAYMENT.

                    This Note may be prepaid, at the Borrower's election, at any
time prior to maturity without premium or penalty. Prepayments shall be applied
first to interest accrued and then to principal due under this Note.

           5.       EVENTS OF DEFAULT.

                    If any Event of Default (as hereinafter defined) shall
occur, the Borrower hereby promises to give Holder immediate (other than as
provided in this Section 5) oral and written notice of such occurrence, the
principal and accrued interest on this Note may be accelerated and declared due
and payable at the option of Holder.

                    For the purposes of this Section 5, "Event of Default" shall
mean any of the following.

                    (a)   NONPAYMENT.

                          Failure by the Borrower to pay the principal or
interest hereunder within ten (10) days after the date when due;

                    (b)   ACT OF INSOLVENCY.

                          Any affirmative act of bankruptcy or insolvency by the
Borrower, or the filing by the Borrower of any petition or action under or the
commencement of any proceedings (not subject to subsection (c) below) relating
to the Borrower under any bankruptcy, reorganization, arrangement, readjustment
of debt, insolvency or moratorium law, or any other law or laws for the relief
of or relating to debtors, of any jurisdiction, or the appointment of a
receiver, liquidator, assignee, trustee, or sequestrator (or other similar
official) for the Borrower, or any substantial part of the properties or assets
of the Borrower, or the making by the Borrower of an assignment for the benefit
of creditors, or the admission by the borrower in writing of its inability to
pay its debts generally as they become due, or the taking of corporate action by
the Borrower in furtherance of any such action;

                    (c)   INVOLUNTARY BANKRUPTCY.

                          The filing against the Borrower of any involuntary
petition under any bankruptcy, reorganization, arrangement, readjustment of
debt, insolvency, moratorium, dissolution or liquidation law, or any other law
or laws for the relief of or relating to debtors, of any jurisdiction, or the
entry or rendering of any order, judgment or decree approving the filing of the
petition in any such proceedings, or the appointment of any receiver,
liquidator,

                                       13
<Page>

assignee, trustee, sequestrator (or other similar official) for the Borrower or
any substantial part of the properties or assets of the Borrower, unless such
petition, order, judgment, decree or appointment is set aside or withdrawn or
ceases to be effective within thirty (30) days after the date of such filing,
rendering, entry or appointment, or the entry or rendering of an order, judgment
or decree adjudicating the Borrower bankrupt for insolvent;

                    (d)   MISREPRESENTATION.

                          Any misrepresentation or omission of a material fact
in this Note, the Loan Agreement or the Security Agreement; or

                    (e)   MATERIAL ADVERSE CHANGE.

                          Any Material Adverse Change in the condition of the
Borrower, which shall mean a material adverse change in (a) the business,
assets, operations, prospects or financial or other condition of Borrower; (b)
the ability of Borrower to pay or perform the Borrower's obligations in
accordance with the terms of this Note and the other transaction documents and
to avoid an Event of Default under any transaction document; or (c) the rights
and remedies of Holder under this Note, the other transaction documents or any
related document, instrument or agreement. if the Borrower fails to remedy the
Material Adverse Change within thirty (30) days of written notice thereof.

                    (f)   CHANGE OF CONTROL.

                          A Change of Control of the Borrower, which shall mean
a merger, sale of securities or sale of all or substantially all of Borrower's
assets that results in a change of ownership of at least 50%, except such
changes of control which are entirely between the Borrower provided that written
notice of such change of control between Borrower is provided to Holder within
30 days of consummation of such change.

                    (g)   OTHER BREACH OR DEFAULT.

                          A breach or default by the Borrower in the performance
or observance of any other term, covenant, representation, warranty or agreement
contained in this Note, the Loan Agreement or the Security Agreement to be
performed or observed by the Borrower, if the Borrower fails to cure within (30)
days of written notice of such breach or default to the Holder.

           6.       REPLACEMENT.

                    Upon receipt by the Borrower of evidence satisfactory to it
of the loss, theft, destruction or mutilation of this Note (provided that an
affidavit of Holder will be satisfactory for such purpose), and of indemnity
satisfactory to it (provided that if the Holder is

                                       14
<Page>

the original Holder hereof, its own indemnification agreement shall under all
circumstances be satisfactory, and no bond shall be required), and upon
surrender and cancellation of this Note, if mutilated, the Borrower will make
and deliver a new Note of the same terms in a principal amount equal to the
outstanding balance of this Note, dated as of the last date at which principal
or interest has been paid upon this Note.

           7.       ATTORNEYS' FEES.

                    The Borrower covenants that upon the occurrence of any Event
of Default it will pay to Holder all costs and expenses of collection and
enforcement of this Note, including reasonable attorneys' fees.

           8.       GOVERNING LAW.

                    This Agreement shall be construed in accordance with the
laws of the State of California (excluding rules regarding conflicts of law).
The parties hereby submit to the personal jurisdiction of and venue in the
Superior Court of the State of California, County of Marin, and the United
States District Court for the Northern District of California in San Francisco.

           9.       MISCELLANEOUS.

                    This Agreement may be executed in counterparts, and each
counterpart shall be deemed an original instrument, but together shall
constitute one and the same instrument. Additionally, any signatures sent by
facsimile shall be deemed to be originals and shall have all of the same force
and effect and import as an original signature, regardless of whether or not the
parties shall or shall not later receive one or more such original signature.

           IN WITNESS WHEREOF, the Borrower has caused this Note to be executed
in its corporate name by its duly authorized officer.

"Holder"                                     "Borrower"

AUTODESK, INC.                               AVATECH SOLUTIONS, INC.

By:                                          By: /s/ Henry D. Felton
   --------------------------------
 Name:                                        Name: HENRY D. FELTON
      -----------------------------
 Title:                                       Title: CHAIRMAN & CEO
      -----------------------------

                                       15
<Page>

                                             AVATECH OF CALIFORNIA, INC.

                                             By: /s/ Henry D. Felton
                                                --------------------------------
                                              Name: Henry D. Felton
                                                   -----------------------------
                                              Title: President
                                                    ----------------------------

                                             AVATECH OF CONNECTICUT, INC.

                                             By: /s/ Henry D. Felton
                                                --------------------------------
                                              Name: Henry D. Felton
                                                   -----------------------------
                                              Title: President
                                                    ----------------------------

                                             AVATECH SOLUTIONS OF COLORADO, INC.

                                             By: /s/ Henry D. Felton
                                                --------------------------------
                                              Name: Henry D. Felton
                                                   -----------------------------
                                              Title: President
                                                    ----------------------------

                                             AVATECH OF FLORIDA, INC.

                                             By: /s/ Henry D. Felton
                                                --------------------------------
                                              Name: Henry D. Felton
                                                   -----------------------------
                                              Title: President
                                                    ----------------------------

                                             AVATECH OF MARYLAND, INC.

                                             By: /s/ Henry D. Felton
                                                --------------------------------
                                              Name: Henry D. Felton
                                                   -----------------------------
                                              Title: President
                                                    ----------------------------

                                             AVATECH OF MICHIGAN, INC.

                                             By: /s/ Henry D. Felton
                                                --------------------------------
                                              Name: Henry D. Felton
                                                   -----------------------------
                                              Title: President
                                                    ----------------------------

<Page>

                                             AVATECH OF NEBRASKA, INC.

                                             By: /s/ Henry D. Felton
                                                --------------------------------
                                              Name: Henry D. Felton
                                                   -----------------------------
                                              Title: President
                                                    ----------------------------

                                             AVATECH OF NEW JERSEY, INC.

                                             By: /s/ Henry D. Felton
                                                --------------------------------
                                              Name: Henry D. Felton
                                                   -----------------------------
                                              Title: President
                                                    ----------------------------

                                             AVATECH OF NEW YORK, INC.

                                             By: /s/ Henry D. Felton
                                                --------------------------------
                                              Name: Henry D. Felton
                                                   -----------------------------
                                              Title: President
                                                    ----------------------------

                                             AVATECH OF VIRGINIA, INC.

                                             By: /s/ Henry D. Felton
                                                --------------------------------
                                              Name: Henry D. Felton
                                                   -----------------------------
                                              Title: President
                                                    ----------------------------

                                             TECHNICAL LEARNINGWARE COMPANY,
                                             INC.

                                             By: /s/ Ronald C. Diegelman
                                                --------------------------------
                                              Name: Ronald C. Diegelman
                                                   -----------------------------
                                              Title: Chairman
                                                    ----------------------------

<Page>

                                   SCHEDULE 1

           Note payment schedule.

<Page>
                                   SCHEDULE 1

AUTODESK, INC.
LOAN PAYMENT CALCULATION
AVATECH SOLUTIONS, INC.
REVISED DRAFT AMORTIZATION SCHEDULE (JULY, 2000)

SIMPLE INTEREST RATE           6.50%
PRINCIPAL AMOUNT:    $(2,960,645.77)

<TABLE>
<CAPTION>
                                 PRINCIPAL           INTEREST           PAYMENTS          INTEREST       PRINCIPAL
                                 ---------           --------           --------          --------       ---------
<S>               <C>         <C>                   <C>                <C>              <C>            <C>
 06/30/00          0          (2,960,645.77)
 07/31/00          1          (2,960,645.77)        (16,344.39)
 08/31/00          2          (2,960,645.77)        (16,344.39)
 09/30/00          3          (2,960,645.77)        (15,817.15)        (48,505.92)       (48,505.92)         --
 10/31/00          4          (2,960,645.77)        (16,344.39)
 11/30/00          5          (2,960,645.77)        (15,817.15)
 12/31/00          6          (2,960,645.77)        (16,344.39)        (48,505.92)       (48,505.92)         --
 01/31/01          7          (2,960,645.77)        (16,344.39)
 02/28/01          8          (2,960,645.77)        (14,762.67)
 03/31/01          9          (2,960,645.77)        (16,344.39)        (47,451.45)       (47,451.45)         --
 04/30/01         10          (2,960,645.77)        (15,817.15)
 05/31/01         11          (2,960,645.77)        (16,344.39)
 06/30/01         12          (2,960,645.77)        (15,817.15)        (47,978.68)       (47,978.68)         --
 07/31/01         13          (2,960,645.77)        (16,344.39)
 08/31/01         14          (2,960,645.77)        (16,344.39)
 09/30/01         15          (2,960,645.77)        (15,817.15)        (48,505.92)       (48,505.92)         --
 10/31/01         16          (2,960,645.77)        (16,344.39)
 11/30/01         17          (2,960,645.77)        (15,817.15)
 12/31/01         18          (2,387,840.83)        (16,344.39)       (621,310.86)       (48,505.92)     (572,804.94)
 01/31/02         19          (2,387,840.83)        (13,182.19)
 02/28/02         20          (2,387,840.83)        (11,906.49)
 03/31/02         21          (1,804,800.84)        (13,182.19)       (621,310.86)       (38,270.87)     (583,039.99)
 04/30/02         22          (1,804,800.84)         (9,642.09)
 05/31/02         23          (1,804,800.84)         (9,963.49)
 06/30/02         24          (1,212,737.65)         (9,642.09)       (621,310.86)       (29,247.66)     (592,063.20)
 07/31/02         25          (1,212,737.65)         (6,694.98)
 08/31/02         26          (1,212,737.65)         (6,694.98)
 09/30/02         27            (611,295.75)         (6,479.01)       (621,310.86)       (19,868.96)     (601,441.90)
 10/31/02         28            (611,295.75)         (3,374.69)
 11/30/02         29            (611,295.75)         (3,265.83)
 12/31/02         30                  (0.00)         (3,374.69)       (621,310.86)       (10,015.20)     (611,295.75)
                                                                     ============       ===========    =============
                                                                     3,347,502.20       (386,856.52)   (2,960,645.77)
</TABLE>

<Page>

                                    EXHIBIT B

                               SECURITY AGREEMENT

           THIS AGREEMENT (the "Security Agreement") is entered into as of this
25th day of January 1999 between Autodesk, Inc. (the "Holder"), a Delaware
corporation, with its principal offices located at 111 McInnis Parkway, San
Rafael, California 94903 and Avatech Solutions, Inc. with its principal offices
located at Owings Mills, Maryland, Avatech of California, Inc., Avatech of
Connecticut, Inc., Avatech Solutions of Colorado, Inc., Avatech of Florida,
Inc., Avatech of Maryland, Inc., Avatech of Michigan, Inc., Avatech of Nebraska,
Inc., Avatech of New Jersey, Inc., Avatech of New York, Inc., Avatech of
Virginia, Inc., and Technical Learningware Company, Inc. (hereinafter
collectively the "Borrower").

                                    RECITALS:

           A.       Borrower and Holder have entered into a Loan Agreement of
even date herewith (the "Loan Agreement") pursuant to which the Holder has
agreed to lend up to Three Million Dollars ($3,000,000.00) to Borrower.

           B.       Holder has made such loan to Borrower pursuant to a secured
promissory note of even date herewith (the "Note").

           C.       In consideration of the loan pursuant to the Note, Borrower
wishes to grant to Holder a security interest in certain collateral to ensure
repayment of the loan and any and all other amounts now or hereafter due to
Holder from Borrower.

           THE PARTIES THEREFORE, IN CONSIDERATION FOR THE MUTUAL COVENANTS SET
FORTH HEREIN, IN THE LOAN AGREEMENT AND IN THE NOTE, AGREE AS FOLLOWS:

           1.       GRANT OF SECURITY INTEREST.

                    Borrower hereby pledges and assigns to Holder and grants to
Holder a security interest in the Collateral (as defined in Section 2) to secure
the performance of Borrower's obligations to Holder: (a) under the Loan
Agreement, (b) under the Note, and (c) to pay any and all amounts due to Holder
from Borrower. All obligations of Borrower to Holder are collectively
"Borrower's Obligations".

           2.       COLLATERAL.

                    The collateral covered by this Security Agreement consists
of the following (the "Collateral"):

                                       19
<Page>

                    All right, title and interest of Borrower now owned or
hereafter acquired in and to the following:

                          (a)     All equipment and fixtures (including, without
limitation, furniture, vehicles and other machinery and office equipment),
together with all additions and accessions thereto and replacements therefor
(collectively, the "Equipment");

                          (b)     All inventory (including, without limitation,
(i) all raw materials, work in process and finished goods and (ii) all such
goods which are returned to or repossessed by Borrower), together with all
additions and accessions thereto, replacements therefor, products thereof and
documents therefor (collectively, the "Inventory");

                          (c)     All accounts, chattel paper, contract rights
and rights to the payment of money (collectively, the "Receivables");

                          (d)     All assets and general intangibles, including,
without limitation, (i) customer and supplier lists and contracts, books and
records, insurance policies, tax refunds, contracts for the purchase of real or
personal property; (ii) all patents, copyrights, trademarks, trade names,
service marks and other intellectual property rights, (iii) all licenses to use,
applications for, and other rights to, such patents, copyrights, trademarks,
trade names and service marks, and (iv) all goodwill of Borrower;

                          (e)     All deposit accounts, money, certificated
securities, uncertificated securities, instruments and documents; and

                          (f)     All proceeds of the foregoing (including,
without limitation, whatever is receivable or received when Collateral or
proceeds is sold, collected, exchanged, returned, substituted or otherwise
disposed of, whether such disposition is voluntary or involuntary, including
rights to payment and return premiums and insurance proceeds under insurance
with respect to any Collateral, and all rights to payment with respect to any
cause of actions affecting or relating to the Collateral).

           3.       BORROWER'S OBLIGATIONS SECURED HEREBY.

                    Borrower's Obligations to Holder secured hereby are the
following:

                    3.1   NOTE.

                          Payment of the principal and interest evidenced by the
Note, together with any future advances thereunder and amendments thereof;

                                       20
<Page>

                    3.2   ACCOUNT BALANCES.

                          Payment of any and all amounts due to Holder from
Borrower including, but not limited to, amounts due for purchases by Borrower of
products from Holder.

                    3.3   PERFORMANCE.

                          Performance and discharge of each and every obligation
of Borrower under this Security Agreement, the Loan Agreement and the Note.

           4.       BORROWER'S COVENANTS.

                    Borrower agrees and covenants that:

                    4.1   FURTHER ENCUMBRANCES.

                          Except to the extent of the Credit Limit (as that term
is defined in the Loan Agreement) provided to Borrower by First Union National
Bank which holds a security interest with Borrower as of the date of this
Security Agreement, Borrower shall not, without Holder's consent (which consent
shall not be unreasonably withheld) grant a security interest in any of the
Collateral or execute any financing statements covering any of the Collateral in
favor of any person until Borrower's Obligations secured under this Security
Agreement shall have been repaid and performed in full. Notwithstanding the
foregoing, Borrower may allow a financial institution to replace First Union
National Bank and obtain, in place of said bank, the secured position held by
First Union National Bank as of the date of this Agreement to the extent of the
Credit Limit.

                    4.2   USE OF COLLATERAL.

                          The Collateral will not be used for any unlawful
purpose. Excepting the existing security interest of First Union National Bank,
borrower will keep the Collateral free and clear of liens and adverse claims.

                    4.3   INDEMNIFICATION.

                          Borrower shall indemnify Holder against all losses,
claims, demands and liabilities of every kind caused by or respecting the
Collateral.

                    4.4   PERFECTION OF SECURITY INTEREST.

                          Immediately upon execution of this Security Agreement,
Borrower and Holder shall execute and file Financing Statements on Form UCC-1
with respect to

                                       21
<Page>

the Collateral and shall execute and deliver such other documents as Holder
deems necessary to create, perfect and continue the security interest in the
Collateral contemplated hereby, including, but not limited, to the forms and
documents attached hereto as Attachment A.

                    4.5   COLLECTION OF ACCOUNTS.

                          Borrower shall collect with diligence all of its
Receivables and proceeds of Inventory, Equipment and other personal property.

                    4.6   RECORDS.

                          Borrower shall prepare and keep in accordance with
generally accepted accounting principles consistently applied, complete and
accurate records regarding all Accounts, Inventory, Equipment, Fixtures and
Other Personal Property, and proceeds thereof, and if and when requested by
Holder, shall, from time to time, prepare and deliver a complete and accurate
schedule of all the Collateral, in such detail as Holder may reasonably request.

                    4.7   INSPECTION OF BORROWER'S BOOKS.

                          Borrower shall permit Holder and its designees at
reasonable times and from time to time to inspect Borrower's books, records and
properties and to audit and to make copies of extracts from such books and
records.

                    4.8   FEES AND COSTS.

                          Upon any Event of Default, Borrower shall pay all
expenses, including attorneys' fees, incurred by Holder in the preservation,
realization, enforcement or exercise of any of Holder's rights under this
Security Agreement.

           5.       EVENTS OF DEFAULT.

                    The following are an Event of Default under this Security
Agreement.

                    5.1   The occurrence of any Event of Default, as defined in
the Note;

                    5.2   The failure to pay an amount due Holder when and as
due, provided however, that, to the extent amounts are past due from Borrower to
Holder for more than thirty (30) days as of the date of this Security Agreement,
then as to that amount such failure to pay when due shall not constitute a
default under this Section 5.2 until March 5, 1999.

                                       22
<Page>

                    5.3   To the extent not otherwise deemed a default under
Sections 5.1 or 5.2 herein, the breach or default by Borrower of any agreement
Borrower has with any party holding a security interest in any property of
Borrower, provided, however, that, to the extent Borrower is in breach or
default of any agreement with First Union National Bank as of the date of this
Agreement, this Section 5.3 shall not apply to the limited extent of that
specific breach or default with said bank until March 5, 1999.

           6.       REMEDIES ON DEFAULT.

                    Upon the occurrence of an Event of Default, provided that
payment in full has not been made, the Holder shall have all rights, privileges,
powers and remedies provided by law, which rights, privileges, powers, and
remedies shall be cumulative, and no single or partial exercise of any of them
shall preclude the further or other exercise of the same or any of them. By way
of example and not by way of limitation, Holder may, pursuant to this Section 6,
exercise any one or all of the remedies hereinafter set forth:

                    6.1   PAYMENT UNDER NOTE; ACCOUNT BALANCE.

                          The Holder may by notice under Section 12 declare the
aggregate unpaid principal balance of the Note and all other amounts owing to
Holder from Borrower, together with all unpaid accrued interest thereon, to be
immediately due and payable to the Holder.

                    6.2   POSSESSION OF COLLATERAL.

                          (a)     The Holder may take possession of all
Collateral covered hereby (which Collateral Borrower will assemble and make
available to Holder) using the employees, facilities, equipment and other
property of Borrower to do so, all at Borrower's expense and without
compensation to Borrower.

                          (b)     If and when requested by Holder, Borrower
shall upon any Event of Default prepare and deliver to Holder assignments in
writing of all Collateral and related accounts, instruments, documents and other
evidences thereof.

                    6.3   USE, OPERATION AND SALE OF COLLATERAL BY HOLDER.

                          The Holder may use, operate, consume and sell the
Collateral in its possession as appropriate for the purpose of performing
Borrower's obligations with respect thereto. Borrower and Holder agree that
public or private sales, for cash or on credit, to a wholesaler or retailer or
use of Collateral of the types subject to this Security Agreement, or at public
auction, are all commercially reasonable since differences in the sales prices
generally realized in the different kinds of sale are ordinarily offset by the
differences in the costs and credit risks of such sales.

                                       23
<Page>

           7.       PAYMENTS AFTER AN EVENT OF DEFAULT.

                    All payments received and amounts realized by the Holder
pursuant to Section 6, including all such payments and amounts received after
the Holder has declared pursuant to Section 6.1 the entire unpaid principal and
interest amount of the Note to be due and payable, as well as all payments or
amounts then held or thereafter received by the Holder as part of the Collateral
while an Event of Default shall be continuing, shall be promptly applied and
distributed by the Holder in the following order of priority:

                          (a)     First, to the payment of all amounts claimed
due by a person holding a secured interest in the Collateral prior to the
interest of Holder, and all reasonable costs and expenses, including legal
expenses and attorneys fees, incurred or made hereunder by the Holder, including
any such costs and expenses of foreclosure or suit, if any, and of any sale or
the exercise of any other remedy under Section 6, and of all taxes, assessments
or liens superior to the lien granted under this Security Agreement, except any
taxes, assessments or other superior lien subject to which any said sale under
Section 6 hereof may have been made;

                          (b)     Second, to the payment of all amounts then
owned by Borrower to Holder, excepting the amount then owing or unpaid on the
Note;

                          (c)     Third, to the payment of the amount then owing
or unpaid on the Note, with application to be made first to the unpaid interest
thereon and second, to the unpaid principal thereof, such application to be made
upon presentation of the Note and the notation thereon of the payment, if
partially paid, or the surrender and cancellation thereof, if fully paid; and

                          (d)     Fourth, to the payment of the balance or
surplus, if any, to Borrower, its successors and assigns, or to any other party
who may be lawfully entitled to receive the same.

           8.       POWER OF ATTORNEY.

                    Borrower hereby appoints Holder the attorney-in-fact of
Borrower to prepare, sign and file or record, for Borrower in Borrower's names,
any financing statements, applications for registration and like papers and to
take any other action deemed by Holder necessary or desirable in order to
perfect the security interest of Holder hereunder, and to perform any obligation
of Holder hereunder at Borrower's expense, but without obligation to do so.
Holder agrees to provide prior written notice to Borrower of any such action
taken as attorney-in-fact of Borrower, together with copies of any financing
statements, applications or other papers executed in such capacity by Holder.

                                       24
<Page>

           9.       HOLDER'S RIGHT TO CURE: REIMBURSEMENT.

                    In the event Borrower should fail to do any act as herein
provided, Holder may, but without obligation to do so, without notice or release
of Borrower from any obligation hereof, make or do the same in such manner and
to such extent as Holder may deem necessary to protect the Collateral,
including, without limitation, the defense of any action purporting to affect
the Collateral or the rights or powers of Holder hereunder, at Borrower's
expense.

           10.      ASSIGNS AND SUCCESSORS.

                    This Security Agreement, together with the covenants and
warranties contained in it, shall inure to the benefit of Holder, its successors
and assigns, and shall be binding upon Borrower, its successors and assigns;
provided, however that Borrower may not assign this Agreement or any of the
rights or obligations of Borrower hereunder without the prior written consent of
Holder.

           11.      PRESENTMENT: APPLICATION.

                    Presentment, protest, notice of protest, notice of dishonor
and notice of nonpayment are waived with respect to any proceeds to which Holder
is entitled hereunder and any rights to direct the application of payments for
security for indebtedness of Borrower hereunder, or indebtedness of customers of
Borrower, and any right to require proceedings against others or to require
exhaustion of security, are waived.

           12.      NOTICES.

                    All notices, payments, and other communications called for
or required by this Security Agreement shall be in writing and shall be deemed
to have been validly given on the date of service if served personally on any
party to whom notice is to be given, or on the third day after mailing if mailed
to any party to whom notice is to be given by first class mail, registered or
certified, postage prepaid, and properly addressed as follows:

         TO BORROWER AT:          Avatech Solutions, Inc.
                                  11403 Cronhill Drive, Suite A
                                  Owings Mills, MD 21117
                                  Attention: Charles Cullen
                                  and a courtesy copy to:
                                  Richard M. Goldberg, Esq.
                                  Shapiro and Olander
                                  20th Floor, Charles Center South
                                  36 South Charles Street
                                  Baltimore, MD 21201-3147

                                       25
<Page>

           TO HOLDER AT:          Autodesk, Inc.
                                  111 McInnis Parkway
                                  San Rafael, California 94903
                                  Attention: Treasurer

           13.      GOVERNING LAW: JURISDICTION.

                    This Agreement shall be construed in accordance with the
laws of the State of California (excluding rules regarding conflicts of law).
The parties hereby submit to the personal jurisdiction of and venue in the
Superior Court of the State of California, County of Marin and the United
States District Court for the Northern District of California in San Francisco.

           14.      ENFORCEMENT.

                    If any portion of this Security Agreement be determined to
be invalid or unenforceable, the remainder shall be valid and enforceable to the
maximum extent possible.

           15.      MISCELLANEOUS.

                    The headings set forth in this Security Agreement are for
the convenience of the parties and shall not by themselves determine the
interpretation or construction of this Security Agreement. This Agreement may be
executed in counterparts, and each counterpart shall be deemed an original
instrument, but together shall constitute one and the same instrument.
Additionally, any signatures sent by facsimile shall be deemed to be originals
and shall have all of the same force and effect and import as an original
signature, regardless of whether or not the parties shall or shall not later
receive one or more such original signature.

                    IN WITNESS WHEREOF, the parties have executed this Security
Agreement on the date set forth above.

"Holder"                                     "Borrower"

AUTODESK, INC.                               AVATECH SOLUTIONS, INC.

By: /s/ [ILLEGIBLE]                          By: /s/ Henry D. Felton
   -------------------------------
 Name: [ILLEGIBLE]                            Name:  HENRY D. FELTON
      ----------------------------
 Title: [ILLEGIBLE]                           Title: CHAIRMAN, CEO
       ---------------------------

                                       26
<Page>

                                             AVATECH OF CALIFORNIA, INC.

                                             By: /s/ Henry D. Felton
                                                --------------------------------
                                              Name: Henry D. Felton
                                                   -----------------------------
                                              Title: President
                                                    ----------------------------

                                             AVATECH OF CONNECTICUT, INC

                                             By: /s/ Henry D. Felton
                                                --------------------------------
                                              Name: Henry D. Felton
                                                   -----------------------------
                                              Title: President
                                                    ----------------------------

                                             AVATECH SOLUTIONS OF COLORADO, INC.

                                             By: /s/ Henry D. Felton
                                                --------------------------------
                                              Name: Henry D. Felton
                                                   -----------------------------
                                              Title: President
                                                    ----------------------------

                                             AVATECH OF FLORIDA, INC

                                             By: /s/ Henry D. Felton
                                                --------------------------------
                                              Name: Henry D. Felton
                                                   -----------------------------
                                              Title: President
                                                    ----------------------------

                                             AVATECH OF MARYLAND, INC.

                                             By: /s/ Henry D. Felton
                                                --------------------------------
                                              Name: Henry D. Felton
                                                   -----------------------------
                                              Title: President
                                                    ----------------------------

                                             AVATECH OF MICHIGAN, INC

                                             By: /s/ Henry D. Felton
                                                --------------------------------
                                              Name: Henry D. Felton
                                                   -----------------------------
                                              Title: President
                                                    ----------------------------

<Page>

                                             AVATECH OF NEBRASKA, INC.

                                             By: /s/ Henry D. Felton
                                                --------------------------------
                                              Name: Henry D. Felton
                                                   -----------------------------
                                              Title: President
                                                    ----------------------------

                                             AVATECH OF NEW JERSEY, INC.

                                             By: /s/ Henry D. Felton
                                                --------------------------------
                                              Name: Henry D. Felton
                                                   -----------------------------
                                              Title: President
                                                    ----------------------------

                                             AVATECH OF NEW YORK, INC.

                                             By: /s/ Henry D. Felton
                                                --------------------------------
                                              Name: Henry D. Felton
                                                   -----------------------------
                                              Title: President
                                                    ----------------------------

                                             AVATECH OF VIRGINIA, INC.

                                             By: /s/ Henry D. Felton
                                                --------------------------------
                                              Name: Henry D. Felton
                                                   -----------------------------
                                              Title: President
                                                    ----------------------------

                                             TECHNICAL LEARNINGWARE COMPANY,
                                             INC.

                                             By: /s/ Ronald C. Diegelman
                                                --------------------------------
                                              Name: Ronald C. Diegelman
                                                   -----------------------------
                                              Title: Chairman
                                                    ----------------------------

<Page>

                       SECOND AMENDMENT TO LOAN AGREEMENT

This Second Amendment to the Loan Agreement (the "Second Amendment"), effective
as of December 17, 1999 ("Effective Date"), supplements and amends the terms of
the Loan Agreement entered into between Autodesk, Inc. ("Holder") and Avatech
Solutions, Inc, a corporation organized under the laws of the State of Delaware,
Avatech of California, Inc., Avatech of Connecticut, Inc., Avatech Solutions of
Colorado, Inc., Avatech of Florida, Inc., Avatech of Maryland, Inc., Avatech of
Michigan, Inc., Avatech of Nebraska, Inc., Avatech of New Jersey, Inc., Avatech
of New York, Inc., Avatech of Virginia, Inc., and Technical Learningware
Company, Inc., (hereinafter collectively referred to as the "Borrower") with the
effective date of January 25, 1999 (the "Agreement") and the Amendment with the
Effective Date of October 18, 1999 ("First Amendment"). Capitalized terms not
otherwise defined shall have the meaning set forth in the Agreement.

                                    RECITALS

WHEREAS, the parties wish to modify the schedule for payments and modify certain
covenants under the terms of the Agreement.

NOWTHEREFORE, in consideration of the mutual covenants herein the parties agree
as follows:

                                      TERMS

1.   ACKNOWLEDGEMENT OF DEFAULT AND WAIVER. Borrower hereby acknowledges that
Borrower has not met the terms of the covenants as set forth in Section 5.8
(minimum current capital) and Section 5.9 (minimum current ratio). These
violations constitute an "Event of Default" as defined in the Agreement. Holder
hereby agrees to waive the violations and are considering the Borrower to be in
compliance with the aforementioned through September 30, 1999. Subsequent to
September 30, 1999, the original provisions of these sections are hereby
modified to be as follows:

Section 5.8:   Borrower will maintain tangible net worth, including subordinated
               debt, of at least One Million Dollars ($1,000,000.00) through
               June 29, 2000 and One Million Four Hundred Thousand Dollars
               ($1,400,000.00) from June 30, 2000 forward.

Section 5.9:   Borrower will maintain a ratio of current assets to current
               liabilities (excluding the current portion of any subordinated
               indebtedness), in each case determined in accordance with
               generally accepted accounting principles of at least .90 through
               June 29, 2000 and .95 through June 30, 2000.

2. Exhibit A "Secured Promissory Note", Section 1 "Terms of Payment" shall be
   amended to include the following:

                                        1
<Page>

               "Borrower shall be required to pay Holder for interest only for
               the period from October 31, 1999 through September 30, 2000 as
               set forth in the amended Schedule 1.

3. Exhibit A, Schedule 1 shall be amended and replaced with the Schedule 1
   attached hereto.

4. Except as modified herein, all other terms and conditions in the Agreement
   shall remain in full force and effect.

"Holder"                                         "Borrower"
AUTODESK, INC.                                   AVATECH SOLUTIONS, INC.

By: /s/ Marcia K. Sterling                   By: /s/ Ronald C. Diegelman
   -------------------------------              --------------------------------
Name: Marcia K. Sterling                     Name: RONALD C. DIEGELMAN
     -----------------------------                ------------------------------
Title: [ILLEGIBLE]                           Title: President
      ----------------------------                 -----------------------------
Date: 12/17/99                               Date: 12/20/99
     -----------------------------                ------------------------------

                                        2
<Page>

AVATECH OF CALIFORNIA, INC.                  AVATECH OF CONNECTICUT, INC

By: /s/ Ronald C. Diegelman                  By: /s/ Ronald C. Diegelman
    ------------------------------               -------------------------------
Name: RONALD C. DIEGELMAN                    Name:
     -----------------------------                ------------------------------
Title: Treasurer                             Title: Treasurer
      ----------------------------                 -----------------------------
Date:  12/20/99                              Date: 12/20/99
      -----------------------------               ------------------------------

AVATECH SOLUTIONS OF COLORADO, INC.          AVATECH OF FLORIDA, INC.

By: /s/ Ronald C. Diegelman                  By: /s/ Ronald C. Diegelman
    ------------------------------               -------------------------------
Name:                                        Name:
     -----------------------------                ------------------------------
Title: Treasurer                             Title: Treasurer
      ----------------------------                 -----------------------------
Date: 12/20/99                               Date: 12/20/99
      ----------------------------                ------------------------------

AVATECH OF MARYLAND, INC                     AVATECH OF MICHIGAN, INC.

By: /s/ Ronald C. Diegelman                  By: /s/ Ronald C. Diegelman
    ------------------------------               -------------------------------
Name:                                        Name:
     -----------------------------                ------------------------------
Title: Treasurer                             Title: Treasurer
      ----------------------------                 -----------------------------
Date:  12/20/99                              Date: 12/20/99
      -----------------------------               ------------------------------

AVATECH OF NEBRASKA, INC                     AVATECH OF NEW JERSEY, INC.

By: /s/ Ronald C. Diegelman                  By: /s/ Ronald C. Diegelman
    ------------------------------               -------------------------------
Name:                                        Name:
     -----------------------------                ------------------------------
Title: Treasurer                             Title: Treasurer
      ----------------------------                 -----------------------------
Date:  12/20/99                              Date: 12/20/99
      -----------------------------               ------------------------------

AVATECH OF NEW YORK, INC.                    AVATECH OF VIRGINIA, INC.

By: /s/ Ronald C. Diegelman                  By: /s/ Ronald C. Diegelman
    ------------------------------               -------------------------------
Name:                                        Name:
     -----------------------------                ------------------------------
Title: Treasurer                             Title: Treasurer
      ----------------------------                 -----------------------------
Date:  12/20/99                              Date: 12/20/99
      -----------------------------               ------------------------------

TECHNICAL LEARNINGWARE COMPANY, INC.

By: /s/ Ronald C. Diegelman
   -------------------------------
Name:
     -----------------------------
Title: Chief Operating Officer
      ----------------------------
Date: 12/20/99
     -----------------------------

                                        3
<Page>

                        THIRD AMENDMENT TO LOAN AGREEMENT

This Third Amendment, effective as of July 27, 2000 ("Effective Date"), amends
the terms of the Loan Agreement entered into between Autodesk, Inc. ("Holder")
and Avatech Solutions, Inc, a corporation organized under the laws of the State
of Delaware, Avatech of California, Inc., Avatech of Connecticut, Inc., Avatech
Solutions of Colorado, Inc., Avatech of Florida, Inc., Avatech of Maryland,
Inc., Avatech of Michigan, Inc., Avatech of Nebraska, Inc., Avatech of New
Jersey, Inc., Avatech of New York, Inc., Avatech of Virginia, Inc., and
Technical Learningware Company, Inc., (hereinafter collectively referred to as
the "Borrower") with the effective date of January 25, 1999, as amended by the
First Amendment with the Effective Date of October 18, 1999 and the Second
Amendment with the Effective Date of December 17, 1999 (collectively the
"Agreement"). Capitalized terms not otherwise defined shall have the meaning set
forth in the Agreement.

                                    RECITALS

WHEREAS, the parties wish to modify the schedule for payments and the terms of
the Secured Promissory Note set forth in Exhibit A and temporarily waive
Borrower's obligation to comply with certain covenants under the terms of the
Agreement.

NOW THEREFORE, in consideration of the mutual covenants herein the parties agree
as follows:

                                      TERMS

1.   ACKNOWLEDGMENT OF DEFAULT AND WAIVER. Borrower hereby acknowledges that
     Borrower has failed to comply with the terms of the covenants as set forth
     in Section 5.8 (minimum current capital) and Section 5.9 (minimum current
     ratio) and that this failure constitutes an "Event of Default" as defined
     in the Agreement. Holder hereby agrees to waive the violations and to
     consider the Borrower to be in compliance with the aforementioned covenants
     through September 30, 2000. On or before, September 30, 2000, the parties
     shall amend the above covenants and all other covenants set forth in the
     Agreement to conform to those agreed by Borrower and Borrower's
     then-current financial institution, and Borrower shall thenceforth comply
     with such amended covenants.

2.   AMENDMENT OF SECURED PROMISSORY NOTE. Exhibit A ("Secured Promissory Note")
     to the Agreement is hereby deleted in its entirely and replaced with
     Exhibit A to this Third Amendment. Concurrently with the execution of this
     Third Amendment, the parties shall execute the amended Secured Promissory
     Note, which upon its execution shall supersede the Secured Promissory Note
     dated January 25, 1999.

                                        1
<Page>

3.   OTHER TERMS AND CONDITIONS. Except as modified herein, all other terms and
     conditions in the Agreement shall remain in full force and effect.

"Holder"                                             "Borrower"
AUTODESK, INC.                                       AVATECH SOLUTIONS, INC.

By: /s/ [ILLEGIBLE]                          By: /s/ Henry D. Felton
   -------------------------------              --------------------------------
Name:  [ILLEGIBLE]                           Name:   Henry D. Felton
     -----------------------------                ------------------------------
Title: [ILLEGIBLE]                           Title: CHAIRMAN & CEO
      ----------------------------                 -----------------------------
Date: July 28, 2000                          Date: July 31st 2000
     -----------------------------                ------------------------------

                                        2
<Page>

AVATECH OF CALIFORNIA, INC.                  AVATECH OF CONNECTICUT, INC.

By: /s/ Henry D. Felton                      By: /s/ Henry D. Felton
   -------------------------------              --------------------------------
Name: HENRY D. FELTON                        Name:  HENRY D. FELTON
     -----------------------------                ------------------------------
Title: PRESIDENT                             Title: PRESIDENT
      ----------------------------                 -----------------------------
Date: July 31st 2000                         Date: July 31st 2000
     -----------------------------                ------------------------------

AVATECH SOLUTIONS OF COLORADO, INC.          AVATECH OF FLORIDA, INC.

By: /s/ Henry D. Felton                      By: /s/ Henry D. Felton
   -------------------------------              --------------------------------
Name: Henry D. Felton                        Name:   Henry D. Felton
     -----------------------------                ------------------------------
Title: President                             Title: President
      ----------------------------                 -----------------------------
Date: July 31st 2000                         Date: July 31st 2000
     -----------------------------                ------------------------------

AVATECH OF MARYLAND, INC.                    AVATECH OF MICHIGAN, INC.

By: /s/ Henry D. Felton                      By: /s/ Henry D. Felton
   -------------------------------              --------------------------------
Name: Henry D. Felton                        Name:   Henry D. Felton
     -----------------------------                ------------------------------
Title: President                             Title: President
      ----------------------------                 -----------------------------
Date: July 31st 2000                         Date: July 31st 2000
     -----------------------------                ------------------------------

AVATECH OF NEBRASKA, INC                     AVATECH OF NEW JERSEY, INC.

By: /s/ Henry D. Felton                      By: /s/ Henry D. Felton
   -------------------------------              --------------------------------
Name: Henry D. Felton                        Name:   Henry D. Felton
     -----------------------------                ------------------------------
Title: President                             Title: President
      ----------------------------                 -----------------------------
Date: July 31st 2000                         Date: July 31st 2000
     -----------------------------                ------------------------------

AVATECH OF NEW YORK, INC.                    AVATECH OF VIRGINIA, INC.

By: /s/ Henry D. Felton                      By: /s/ Henry D. Felton
   -------------------------------              --------------------------------
Name: Henry D. Felton                        Name:   Henry D. Felton
     -----------------------------                ------------------------------
Title: President                             Title: President
      ----------------------------                 -----------------------------
Date: July 31st 2000                         Date: July 31st 2000
     -----------------------------                ------------------------------

TECHNICAL LEARNINGWARE COMPANY, INC.

By: /s/ Henry D. Felton
   -------------------------------
Name: Henry D. Felton
     -----------------------------
Title: President
      ----------------------------
Date: July 31st 2000
     -----------------------------

                                        3
<Page>

                             SECURED PROMISSORY NOTE

$2,960,645.77                                                      July 27, 2000
                                                          San Rafael, California

     For Value Received, Avatech Solutions, Inc., a corporation organized under
the laws of the State of Delaware, Avatech of California, Inc., Avatech of
Connecticut, Inc., Avatech Solutions of Colorado, Inc., Avatech of Florida,
Inc., Avatech of Maryland, Inc., Avatech of Michigan, Inc., Avatech of Nebraska,
Inc., Avatech of New Jersey, Inc., Avatech of New York, Inc., Avatech of
Virginia, Inc., and Technical Learningware Company, Inc. (hereinafter
collectively referred to as the "Borrower"), hereby promises to pay to Autodesk,
Inc., a corporation organized under the laws of the State of Delaware, or its
assigns ("Holder"), at the principal offices of the Holder presently located a
111 McInnis Parkway, San Rafael, California 94903, the principal sum of Two
Million Nine Hundred Sixty Thousand Six Hundred Forty Five Dollars and Seventy
Seven Cents ($2,960,645.77), together with accrued interest at the rate
specified hereinafter.

     This Note is issued subject to the terms and conditions of a Loan Agreement
between the Borrower and the Holder of even date herewith (the "Loan
Agreement"), as well as the following additional terms and conditions:

     1.    TERMS OF PAYMENT.

           Principal and interest on this Note shall be due and payable on the
dates and in the amounts set forth in Schedule 1 hereto.

     2.    RATE OF INTEREST.

           The unpaid principal on this Note shall bear interest from the date
hereof until maturity at a rate of six and fifty one-hundredths (6.50%) per
annum.

     3.    SECURITY AGREEMENT.

           Repayment of this Note is secured by certain assets of the Borrower
pursuant to a Security Agreement between the Borrower and the Holder dated
January 25, 1999 (the "Security Agreement").

     4.    PREPAYMENT.

           This Note may be prepaid, at the Borrower's election, at any time
prior to maturity without premium or penalty. Prepayments shall be applied first
to interest accrued and then to principal due under this Note in order of
maturity.

                                        1
<Page>

     5.    EVENTS OF DEFAULT.

           If any Event of Default (as hereinafter defined) shall occur, the
Borrower hereby promises to give Holder immediate (other than as provided in
this Section 5) oral or written notice of such occurrence, the principal and
accrued interest on this Note may be accelerated and declared due and payable at
the option of Holder.

           For the purposes of this Section 5, "Events of Default" shall mean
any of the following:

           (a)      NONPAYMENT.

                    Failure by the Borrower to pay the principal or interest
hereunder within thirty (30) days after the date when due;

           (b)      ACT OF INSOLVENCY.

                    Any affirmative act of bankruptcy or insolvency by the
Borrower, or the filing by the Borrower of any petition or action under or the
commencement of any proceedings (not subject to subsection (c) below) relating
to the Borrower under any bankruptcy, reorganization, arrangement, readjustment
of debt, insolvency or moratorium law, or any other law or laws for the relief
of or relating to debtors, of any jurisdiction, or the appointment of a
receiver, liquidator, assignee, trustee, or sequestrator (or other similar
official) for the Borrower, or any substantial part of the properties or assets
of the Borrower, or the making by the Borrower of an assignment for the benefit
of creditors, or the admission by the Borrower in writing of its inability to
pay its debts generally as they become due, or the taking of corporate action by
the Borrower in furtherance of any such action;

           (c)      INVOLUNTARY BANKRUPTCY.

                    The filing against the Borrower of any involuntary petition
under nay bankruptcy, reorganization, arrangement, readjustment of debt,
insolvency, moratorium, dissolution or liquidation law, or any other law or laws
for the relief of or relating to debtors, of any jurisdiction, or the entry or
rendering of any order, judgement or decree approving the filing of the petition
in any such proceedings, or the appointment of any receiver, liquidator,
assignee, trustee, sequestrator (or other similar official) for the Borrower or
any substantial part of the properties or assets of the Borrower, unless such
petition, order, judgement, decree or appointment is set aside or withdrawn or
ceases to be effective within sixty (60) days after the date of such filing,
rendering, entry or appointment, or the entry or rendering of an order,
judgement or decree adjudicating the Borrower bankrupt or insolvent;

           (d)      MISREPRESENTATION.

                    Any misrepresentation or omission of a material fact in this
Note, the Loan Agreement or the Security Agreement; or

                                        2
<Page>

           (e)      MATERIAL ADVERSE CHANGE.

                    Any Material Adverse Change in the condition of the
Borrower, which shall mean a material adverse change in (a) the business,
assets, operations, prospects or financial or other condition of Borrower; (b)
the ability of Borrower to pay or perform the Borrower's obligations in
accordance with the terms of this Note and the other transaction documents and
to avoid an Event of Default under any transaction document; or (c) the rights
and remedies of Holder under this Note, the other transaction documents or any
related document, instrument or agreement, if the Borrower fails to remedy the
Material Adverse Change within thirty (30) days of written notice thereof;

           (f)      CHANGE OF CONTROL.

                    A Change of Control of the Borrower, which shall mean a
merger, sale of securities or sale of all or substantially all of Borrower's
assets that results in a change of ownership of at least 50%, except such
changes of control which are entirely between the Borrower provided that written
notice of such change of control between Borrower is provided to Holder within
thirty (30) days of consummation such change;

           (g)      OTHER BREACH OR DEFAULT.

                    A breach or default by the Borrower in the performance or
observance of any other term, covenant, representation, warranty or agreement
contained in this Note, the Loan Agreement or the Security Agreement to be
performed or observed by the Borrower, if the Borrower fails to cure within
thirty (30) days of written notice of such breach or default to the Holder.

     6.    REPLACEMENT.

           Upon receipt by the Borrower of evidence satisfactory to it of the
loss, theft, destruction or mutilation of this Note (provided that an affidavit
of Holder will be satisfactory for such purpose), and of indemnity satisfactory
to it (provided that if the Holder is the original Holder hereof, its own
indemnification agreement shall under all circumstances be satisfactory, and no
bond shall be required), and upon surrender and cancellation of this Note, if
mutilated, the Borrower will make and deliver a new Note of the same terms in a
principal amount equal to the outstanding balance of this Note, dated as of the
last date at which principal or interest has been paid upon this Note.

     7.    ATTORNEYS' FEES.

           The Borrower covenants that upon the occurrence of any Event of
Default it will pay to Holder all costs and expenses of collection and
enforcement of this Note, including reasonable attorney's fees.

                                        3
<Page>

     7.    ATTORNEYS' FEES.

           The Borrower covenants that upon the occurrence of any Event of
Default it will pay to Holder all costs and expenses of collection and
enforcement of this Note, including reasonable attorneys' fees.

     8.    GOVERNING LAW.

           This Agreement shall be construed in accordance with the laws of the
State of California (excluding rules regarding conflicts of law). The parties
hereby submit to the personal jurisdiction of and venue in the Superior Court of
the State of California, County of Marin, and the United States District Court
for the Northern District of California in San Francisco.

     9.    MISCELLANEOUS.

           This Agreement may be executed in counterparts, and each counterpart
shall be deemed an original instrument, but together shall constitute one and
the same instrument. Additionally, any signatures sent by facsimile shall be
deemed to be originals and shall have all of the same force and effect and
import as an original signature, regardless of whether or not the parties shall
or shall not later receive one or more such original signature.

     IN WITNESS WHEREOF, the Borrower has caused this Note to be executed in its
corporate name by its duly authorized officer.

"HOLDER"                                     "BORROWER"

AUTODESK, INC.                               AVATECH SOLUTIONS, INC.

By: /s/ [ILLEGIBLE]                          By: /s/ Henry D. Felton
   -------------------------------              --------------------------------

       [ILLEGIBLE]                                   Henry D. Felton
----------------------------------           -----------------------------------
           (PRINTED)                                       (PRINTED)

      [ILLEGIBLE]                                 CHAIRMAN & CEO
----------------------------------           -----------------------------------
            (TITLE)                                         (TITLE)

    July 28 2000                                     July 31st 2000
----------------------------------           -----------------------------------
            (DATE)                                          (DATE)

                                        4
<Page>

AVATECH OF CALIFORNIA, INC.                  AVATECH OF CONNECTICUT, INC

By: /s/ Henry D. Felton                      By: /s/ Henry D. Felton
   -------------------------------              --------------------------------
Name: Henry D. Felton                        Name:   Henry D. Felton
     -----------------------------                ------------------------------
Title: President                             Title: President
      ----------------------------                 -----------------------------
Date: July 31st 2000                         Date: July 31st 2000
     -----------------------------                ------------------------------

AVATECH SOLUTIONS OF COLORADO, INC.          AVATECH OF FLORIDA, INC.

By: /s/ Henry D. Felton                      By: /s/ Henry D. Felton
   -------------------------------              --------------------------------
Name: Henry D. Felton                        Name:   Henry D. Felton
     -----------------------------                ------------------------------
Title: President                             Title: President
      ----------------------------                 -----------------------------
Date: July 31st 2000                         Date: July 31st 2000
     -----------------------------                ------------------------------

AVATECH OF MARYLAND, INC.                    AVATECH OF MICHIGAN, INC.

By: /s/ Henry D. Felton                      By: /s/ Henry D. Felton
   -------------------------------              --------------------------------
Name: Henry D. Felton                        Name:   Henry D. Felton
     -----------------------------                ------------------------------
Title: President                             Title: President
      ----------------------------                 -----------------------------
Date: July 31st 2000                         Date: July 31st 2000
     -----------------------------                ------------------------------

AVATECH OF NEBRASKA, INC                     AVATECH OF NEW JERSEY, INC.

By: /s/ Henry D. Felton                      By: /s/ Henry D. Felton
   -------------------------------              --------------------------------
Name: Henry D. Felton                        Name:   Henry D. Felton
     -----------------------------                ------------------------------
Title: President                             Title: President
      ----------------------------                 -----------------------------
Date: July 31st 2000                         Date: July 31st 2000
     -----------------------------                ------------------------------

AVATECH OF NEW YORK, INC.                     AVATECH OF VIRGINIA, INC.

By: /s/ Henry D. Felton                      By: /s/ Henry D. Felton
   -------------------------------              --------------------------------
Name: Henry D. Felton                        Name:   Henry D. Felton
     -----------------------------                ------------------------------
Title: President                             Title: President
      ----------------------------                 -----------------------------
Date: July 31st 2000                         Date: July 31st 2000
     -----------------------------                ------------------------------

TECHNICAL LEARNINGWARE COMPANY, INC.

By: /s/ Henry D. Felton
   -------------------------------
Name: Henry D. Felton
     -----------------------------
Title: President
      ----------------------------
Date: July 31st 2000
     -----------------------------

                                        5

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