Exhibit 10.4

                                 AMENDMENT NO. 1

                                       TO

                              EMPLOYMENT AGREEMENT

     This AMENDMENT NO. 1 TO EMPLOYMENT AGREEMENT  ("Amendment") is entered into
as of January 1, 2000, by and between Jeff D. Trom  ("Employee") and Engineering
Animation, Inc., a Delaware corporation (the "Company").

         WHEREAS, the parties entered into an employment  agreement  (Employment
Agreement) as of January 1, 1996,  whereby  Employee was employed by the Company
as its Vice President of Software  Development  for an Employment  Term (as such
term is defined in the Employment Agreement) ending December 31, 1999;

         WHEREAS,  the  parties  desire  to extend  the  Employment  Term  until
December 31, 2003,  with Employee  serving in the capacity of Vice President and
Chief Technology Officer of the Company;

         NOW,  THEREFORE,  for good and valuable  consideration,  including  the
benefits  under  the  Severance  Agreement  (as  such  term  is  defined  in the
Employment  Agreement),   the  receipt  and  sufficiency  of  which  are  hereby
acknowledged, the parties hereto agree as follows:

         1. Section 1 of the Employment Agreement is amended to read as follows:
"Employment  Terms.  Subject  to the terms  and  conditions  set  forth  herein,
including  Section 13, the Company will employ Employee for a term commencing as
of January 1, 1996 (the  "Effective  Date") and ending on  December  31, 2003 or
such earlier  date as may occur  pursuant to Section 13 of this  Agreement  (the
"Employment Term")."

         2. The first  sentence  of  Section 2 of the  Employment  Agreement  is
amended as follows:  "Employment  Duties.  From  January 1, 2000 until  December
31,2003,  Employee will serve as the Vice President and Chief Technology Officer
of the Company,  and shall perform such duties as shall be assigned from time to
time by the Board of  Directors  of the  Company,  subject  to the terms of this
Agreement  and the  direction  and  control  of the  Board of  Directors  of the
Company."

         3.  Subsection (a) of Section 3 of the Employment  Agreement is amended
as follows:  "(a) from the Effective  Date until  December 31, 2003, a salary as
established  by the  compensation  committee  of the Board of  Directors  of the
Company,  payable in arrears not less frequently than monthly,  but otherwise in
accordance with the Company's ordinary payroll practices; and".

         4. All other terms and  conditions of the  Employment  Agreement  shall
remain unchanged.  Capitalized terms used herein and not otherwise defined shall
have the meaning ascribed to them in the Employment Agreement. In the event of a
dispute  between the terms of this Amendment and the Employment  Agreement,  the
terms of this Amendment shall control.

         IN WITNESS  WHEREOF,  the parties have executed  this  Amendment on the
date first written above.

ENGINEERING ANIMATION, INC.                 Employee:


By:  /s/ Robert M. Nierman                    /s/ Jeff D. Trom
    -------------------------                   ------------------
Name:    Robert M. Nierman                        Jeff D. Trom
Its:     President and
         Chief Operating Officer