Document:

<PAGE>
                                                                    Exhibit 10.4

                      LOAN DOCUMENTS MODIFICATION AGREEMENT

     THIS LOAN DOCUMENTS MODIFICATION AGREEMENT (hereinafter referred to as this
"Amendment") is made and entered into as of the 20th day of May, 2005, by and
among INNOTRAC CORPORATION, a Georgia corporation and iFULFILLMENT, Inc., a
Georgia corporation (hereinafter collectively referred to as "Borrowers"), and
WACHOVIA BANK, NATIONAL ASSOCIATION, successor by merger to SOUTHTRUST BANK, an
Alabama banking corporation (hereinafter referred to as "Lender").

                              BACKGROUND STATEMENT

     Borrowers and Lender are parties to that certain Third Second Amended and
Restated Line of Credit Note dated May 10, 2004, made by Borrowers to the order
of Lender in the original principal amount of Twenty Five Million and No/100
Dollars ($25,000,000.00), as modified by the parties from time-to-time
(hereinafter referred to as the "Note", and the loan evidenced thereby as the
"Loan"). The Note is secured by that certain (a) Second Amended and Restated
Loan and Security Agreement by and between Borrowers and Lender dated as of
April 3, 2003, as subsequently modified by the parties from time-to-time (the
"Loan Agreement"), and (b) any and all other documents related to the
aforementioned documents, as subsequently modified by the parties from
time-to-time (hereinafter collectively referred to as the "Loan Documents").
Borrowers and Lender have agreed to amend the Loan Agreement, to modify all of
the other Loan Documents to reflect the same, and the parties hereto are
entering into this Amendment to evidence their agreements.

                                    AGREEMENT

     FOR AND IN CONSIDERATION of the sum of Ten and No/100 Dollars ($10.00), the
foregoing recitals, and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, Borrowers and Lender do hereby
agree as follows:

          1. MODIFICATION OF LOAN AGREEMENT. As of the date hereof, the
representations and warranties set forth in the Loan Agreement are hereby
affirmed to be true and correct as of the date hereof. In addition, the terms of
the Loan Agreement are hereby modified and amended, effective as of the date
hereof, by deleting the definition of "Commitment Period" from Section 1.1 of
the Loan Agreement in its entirety and replacing the same with the following
substitute definition:

          "Commitment Period - shall mean that period during which Bank is
obligated to make advances under the Line of Credit Loan hereunder, as provided
in Section 2.1 hereof. The Commitment Period shall commence upon satisfaction of
the conditions to lending set forth in Article III and shall continue until
September 1, 2005, unless sooner terminated according to the provisions hereof."

          2. MODIFICATION OF NOTE. The terms of the Note are hereby modified and
amended, effective as of the date hereof, by deleting the last full paragraph on
the top of Page 2 of the Note starting with the words "Interest only at said
rates...", and replacing it with the following substitute paragraph:

          "Interest only at said rates shall be due and payable monthly, in
arrears, commencing on the first (1st) day of June, 2005, and continuing on the
first day of each and every month thereafter through and including August 1,
2005. On September 1, 2005, all unpaid principal, plus accrued and unpaid
interest, shall be due and payable in full."

          3. MODIFICATION OF LOAN DOCUMENTS. As of the date hereof, Borrowers
hereby reaffirm and restate each and every warranty and representation set forth
in the Loan Documents. The terms of the Loan Documents are hereby modified and
amended, effective as of the date hereof, so that any reference in any of the
Loan Documents to the Loan Agreement or the Note shall refer to the Loan
Agreement and Note as herein amended.

          4. RATIFICATION; EXPENSES. Except as herein expressly modified or
amended, all the terms and conditions of the Note, the Loan Agreement and the
other Loan Documents are hereby ratified, affirmed, and approved. In
consideration of Lender agreeing to modify the Loan Agreement, Borrowers agree
to pay all fees and expenses incurred in connection with this Amendment
including Lender's attorneys' fees and expenses.
<PAGE>
          5. NO DEFENSES; RELEASE. For purposes of this Paragraph 5, the terms
"Borrower Parties" and "Lender Parties" shall mean and include Borrowers and
Lender, respectively, and each of their respective predecessors, successors and
assigns, and each past and present, direct and indirect, parent, subsidiary and
affiliated entity of each of the foregoing, and each past and present employee,
agent, attorney-in-fact, attorney-at-law, representative, officer, director,
shareholder, partner and joint venturer of each of the foregoing, and each heir,
executor, administrator, successor and assign of each of the foregoing;
references in this paragraph to "any" of such parties shall be deemed to mean
"any one or more" of such parties; and references in this sentence to "each of
the foregoing" shall mean and refer cumulatively to each party referred to in
this sentence up to the point of such reference. Borrower hereby acknowledge,
represent and agree: that Borrowers have no defenses, setoffs, claims,
counterclaims or causes of action of any kind or nature whatsoever with respect
to the Note and the other Loan Documents or the indebtedness evidenced and
secured thereby, or with respect to any other documents or instruments now or
heretofore evidencing, securing or in any way relating to the Loan, or with
respect to the administration or funding of the Loan, or with respect to any
other transaction, matter or occurrence between any of the Borrower Parties and
any Lender Parties or with respect to any acts or omissions of any Lender
Parties, with respect to each of the same, limited only to the extent that such
acts, claims or actions exist on or prior to the date hereof (all of said
defenses, setoffs, claims, counterclaims or causes of action being hereinafter
referred to as "Loan Related Claims"); that, to the extent that Borrowers may be
deemed to have any Loan Related Claims, Borrowers do hereby expressly waive,
release and relinquish any and all such Loan Related Claims, whether or not
known to or suspected by Borrowers; that Borrowers shall not institute or cause
to be instituted any legal action or proceeding of any kind based upon any Loan
Related Claims; and that Borrowers shall indemnify, hold harmless and defend all
Lender Parties from and against any and all Loan Related Claims and any and all
losses, damages, liabilities, costs and expenses suffered or incurred by any
Lender Parties as a result of any assertion or allegation by any Borrower
Parties of any Loan Related Claims or as a result of any legal action related
thereto.

          6. NO NOVATION. Borrowers and Lender hereby acknowledge and agree that
this Amendment shall not constitute a novation of the indebtedness evidenced by
the Loan Documents, and further that the terms and provisions of the Loan
Documents shall remain valid and in full force and effect except as may be
hereinabove modified and amended.

          7. NO WAIVER OR IMPLICATION. Borrowers hereby agree that nothing
herein shall constitute a waiver by Lender of any default, whether known or
unknown, which may exist under the Note or any other Loan Document. Borrowers
hereby further agree that no action, inaction or agreement by Lender, including,
without limitation, any extension, indulgence, waiver, consent or agreement of
modification which may have occurred or have been granted or entered into (or
which may be occurring or be granted or entered into hereunder or otherwise)
with respect to nonpayment of the Loan or any portion thereof, or with respect
to matters involving security for the Loan, or with respect to any other matter
relating to the Loan, shall require or imply any future extension, indulgence,
waiver, consent or agreement by Lender. Borrowers hereby acknowledge and agree
that Lender has made no agreement, and is in no way obligated, to grant any
future extension, indulgence, waiver or consent with respect to the Loan or any
matter relating to the Loan.

          8. NO RELEASE OF COLLATERAL. Borrowers further acknowledge and agree
that this Amendment shall in no way occasion a release of any collateral held by
Lender as security to or for the Loan, and that all collateral held by Lender as
security to or for the Loan shall continue to secure the Loan.

          9. SUCCESSORS AND ASSIGNS. This Amendment shall be binding upon and
inure to the benefit of Borrowers and Lender and their respective successors and
assigns, whether voluntary by act of the parties or involuntary by operation of
law.

                         [Signatures on Following Page]

                                      -2-
<PAGE>
     IN WITNESS WHEREOF, this Amendment has been duly executed under seal by
Borrowers and Lender, as of the day and year first above written.

                                       BORROWERS:

                                       INNOTRAC CORPORATION,
                                       a Georgia corporation (SEAL)

                                       By: /s/ Scott D. Dorfman
                                           -------------------------------------
                                          Scott D. Dorfman, Chairman, President
                                          and Chief Executive Officer

                                       Attest: /s/ Scott D. Dorfman
                                               ---------------------------------
                                               Scott D. Dorfman, Secretary

                                       IFULFILLMENT, INC.,
                                       a Georgia corporation (SEAL)

                                       By: /s/ Scott D. Dorfman
                                           -------------------------------------
                                           Scott D. Dorfman, Chairman, President
                                           and Chief Executive Officer

                                       Attest: /s/ Scott D. Dorfman
                                               ---------------------------------
                                               Scott D. Dorfman, Secretary

                                       LENDER:

                                       WACHOVIA BANK, NATIONAL ASSOCIATION,
                                       successor by merger to SouthTrust Bank

                                       By: /s/ Jerry Noles
                                           -------------------------------------
                                           Jerry Noles, Vice President

                                      -3-<PAGE>
                                                                   Exhibit 10.16

                       SECOND AMENDMENT TO LEASE AGREEMENT

     THIS SECOND AMENDMENT TO LEASE AGREEMENT is entered into as of the 5th day
of March, 2003, by and between ProLogis-Macquarie Kentucky I LLC, a Delaware
limited liability company ("Landlord"), and Innotrac Corporation ("Tenant").

                                  WITNESSETH:

     WHEREAS, Landlord and Tenant have entered into a Lease dated as of the 23rd
day of April, 2002, and as amended by that certain First Amendment To Lease
Agreement dated October 15, 2002 (such Lease, as heretofore and hereafter
modified, being herein referred to as the "Lease") pursuant to which Landlord
leased to Tenant approximately 330,000 square feet located at 1226 Aviation
Blvd. Hebron, KY 41048 (the "Original Premises"); and

     WHEREAS, Landlord and Tenant desire to expand the Premises by 66,000 square
feet in addition to modifying certain other terms and conditions as set forth
below.

     NOW THEREFORE, in consideration of Ten Dollars ($10.00) and other good and
valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the Landlord and Tenant agree as follows:

     1. Effective on March 1, 2003 (the "Second Expansion Premises Commencement
Date"), the Premises shall hereby be expanded to include those certain premises
consisting of approximately 66,000 rentable square feet (the "Second Expansion
Premises"), commonly known as 1242 Aviation Blvd., Hebron, Kentucky, and as more
fully described on the attached Exhibit A. The Premises as described in the
Lease shall be revised to include the Second Expansion Premises and shall
further be revised to reflect a total square footage of approximately 396,000
square feet.

     2. The Lease Term for the Second Expansion Premises shall commence on the
Second Expansion Premises Commencement Date and shall continue through the end
of the original lease term July 31, 2007.

     3. The total monthly Base Rent for the Premises and the Second Expansion
Premises, during the Lease Term as defined herein, shall be due and payable to
Landlord in accordance with Paragraph 4 of the Lease equal to the following
amount for the respective period set forth below:

<TABLE>
<CAPTION>
                Period                          Amount
                ------                    -----------------
<S>                                       <C>
March 1, 2003 through December 31, 2003   $84,837 per month
January 1, 2004 through July 31, 2007     $92,675 per month
</TABLE>

     4. Effective on the Second Expansion Premises Commencement Date, Tenant's
Proportionate Share of the Building and Project shall be revised to reflect the
amount for the respective periods set forth below:

<TABLE>
<CAPTION>
                                          Tenant's Proportionate   Tenant's Proportionate
                Period                       Share of Building        Share of Project
                ------                    ----------------------   ----------------------
<S>                                       <C>                      <C>
March 1, 2003 through December 31, 2003            91.7%                    91.7
January 1, 2004 through July 31, 2007               100%                     100%
</TABLE>

     5. Effective on March 1, 2003, the Initial Estimated Monthly Operating
Expense Payments shall be as follows:

<TABLE>
<CAPTION>
                       Monthly Charge
                       --------------
<S>                    <C>
Common Area Charges:     $ 5,142.00
Taxes:                     9,075.00
Insurance:                 1,815.00
                         ----------
Total                    $16,032.00
</TABLE>

     6. Tenant Improvements.

          (a) Landlord agrees to furnish or perform at Landlord's sole cost and
expense those items of construction and those improvements (the "Tenant
Improvements") specified below:

          1.   Install additional warehouse lighting.

          2.   Install ventilation system in warehouse area.

          3.   Install additional dock equipment.

          Any other items shall require prior approval from Landlord.

          Landlord shall pay for the Tenant Improvements up to a maximum amount
of $75,000.00, and Tenant shall pay for the cost of the Tenant Improvements in
excess of such amount. If the cost of the Tenant Improvements is estimated to
exceed such amount, such estimated overage shall be paid by Tenant before
Landlord begins construction and a final adjusting payment based upon the actual
cost of the Tenant improvements shall be made when the Tenant Improvements are
complete.

          (b) If Tenant shall desire any changes, Tenant shall so advise
Landlord in writing and Landlord shall determine whether such changes can be
made in a reasonable and feasible manner. Any and all costs of reviewing any
requested changes, and any and all costs of making any changes to the Tenant
Improvements which Tenant may

                                       1
<PAGE>
request and which Landlord may agree to shall be at Tenant's sole cost and
expense and shall be paid to Landlord upon demand and before execution of the
change order.

          (c) Landlord shall proceed with and complete the construction of the
Tenant Improvements within a commercially reasonable period of time.

          (d) Except for incomplete punch list items, Tenant shall have and hold
the Premises as the same shall then be without any liability or obligation on
the part of Landlord for making any further alterations or improvements of any
kind in or about the Premises.

     7. Effective on March 1, 2003, Addendum 1 of the Lease, captioned "Right Of
First Refusal", is intentionally deleted and no longer in force or effect.

     8. Effective on March 1, 2003, Addendum 5 of the Lease, captioned
"Cancellation Option", shall be revised to reflect the following:

          "Provided no Event of Default shall then exist and no condition shall
          then exist which with the passage of time or giving of notice, or
          both, would constitute an Event of Default, Tenant shall have the
          right at any time on or before the first day of the 30th month of the
          Lease Term to send Landlord written notice (the "Termination Notice")
          that Tenant has elected to terminate this Lease effective on the last
          day of the 36th month of the Lease Term with respect to the Premises
          consisting of approximately 396,000 square feet.

          If Tenant elects to terminate this Lease pursuant to the immediately
          preceding sentence, the effectiveness of such termination shall be
          conditioned upon Tenant paying to Landlord $2,217,622.00
          contemporaneously with Tenant's deliver of the Termination Notice to
          Landlord. Such amount is consideration for Tenant's option to
          terminate and shall not be applied to rent or any other obligation of
          Tenant. Landlord and Tenant shall be relieved of all obligations
          accruing under this Lease after the effective date of such termination
          but not any obligations accruing under the Lease prior to the
          effective date of such termination."

     9. With the exception of those terms and conditions specifically modified
and amended herein, the Lease shall remain in full force and effect in
accordance with all its terms and conditions. In the event of any conflict
between the terms and provisions of this Amendment and the terms and provisions
of the Lease, the terms and provisions of this Amendment shall supersede and
control.

     10. All capitalized terms used but not defined herein which are defined in
the Lease shall have the same meaning herein as in the lease.

     IN WITNESS WHEREOF, the parties hereto have signed this Second Amendment To
Lease Agreement as of the day and year first above written.

                                        Landlord:
                                        PROLOGIS-MACQUARIE KENTUCKY I LLC

Signed and acknowledged in the          By: ProLogis Management Incorporated,
presence of:                                a Delaware corporation, Agent

By:                                     By:
    ---------------------------------       ------------------------------------
Printed Name:                           Name: Douglas A. Kiersey, Jr.
              -----------------------   Title: Senior Vice President

By:
    ---------------------------------
Printed Name:
              -----------------------

Signed and acknowledged in the          Tenant:
presence of:                            INNOTRAC CORPORATION

By: /s/ Molly C. Jones                  By: /s/ David L. Gamsey
    ---------------------------------       ------------------------------------
Printed Name: Molly C. Jones            Name: David L. Gamsey
                                        Title: CFO

By: /s/ Shanin Crowther
    ---------------------------------
Printed Name: Shanin Crowther

                                       2
<PAGE>
                                    EXHIBIT A

                                    SITE PLAN

                         Tenant: Innotrac Corporation.

                                   (SITE PLAN)

                   AIRPARK INTERNATIONAL DISTRIBUTION CENTER
                            1230 AVIATION BOULEVARD
                             Boone County, Kentucky
                                 BUILDING FIVE

                                       3

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