UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of Earliest Event Reported): December 23, 2009

Avatech Solutions, Inc.
__________________________________________
(Exact name of registrant as specified in its charter)

Delaware	001-31265	84-1035353
_____________________ (State or other jurisdiction	_____________ (Commission	______________ (I.R.S. Employer
of incorporation)	File Number)	Identification No.)
10715 Red Run Boulevard, Owings Mills, Maryland		21117
_________________________________ (Address of principal executive offices)		___________ (Zip Code)

Registrant’s telephone number, including area code: 410-581-8080

Not Applicable
______________________________________________
Former name or former address, if changed since last report

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[  ]  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[  ]  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[  ]  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[  ]  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 1.01 Entry into a Material Definitive Agreement.

On December 23, 2009, Avatech Solutions, Inc. ("Registrant") and Avatech Solutions Subsidiary, Inc., a controlled subsidiary of the Registrant, modified certain covenants of their $5 million revolving line of credit agreement with PNC Bank pursuant to a Fourth Modification Agreement (the "Fourth Modification"). The modifications include the deletion of the Current Ratio covenant which previously required that current assets exceed the current liabilities by a ratio of .9:1 and a reduction in the required level of Minimum Tangible Net Worth (as defined in the line of credit agreement) from $2,000,000 to $1,500,000. All other terms and conditions remain unchanged. A copy of the Fourth Modification is filed herewith as Exhibit 10.1.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

Exhibit 10.1 Fourth Modification Agreement dated December 23, 2009 (filed herewith).

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	Avatech Solutions, Inc.
December 30, 2009	By:	Lawrence Rychlak
		Name: Lawrence Rychlak
		Title: President and Chief Financial Officer

Exhibit Index

Exhibit No.	Description
10.1	Fourth Modification Agreement dated December 23, 2009 (filed herewith).