Document:

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                                                                    EXHIBIT 10.2

                                AMENDMENT NO. 1
                                     TO THE
                                  AXCESS INC.
                        1991 INCENTIVE STOCK OPTION PLAN

     The name of the plan is the AXCESS INC. 1991 INCENTIVE STOCK OPTION PLAN
(the "Incentive Stock Option Plan"). The Incentive Stock Option Plan was adopted
by the Board of Directors of AXCESS INC., a Delaware corporation (the
"Company"), effective as of May 29, 1991. This Amendment No. 1 to the Incentive
Stock Option Plan (the "Amendment") was adopted by the Board of Directors of the
Company on April 26, 2000.

     Section 1.  The Amendment amends and restates Section 4 of the Incentive
Stock Option Plan in its entirety as follows:

     4.  Allotment of Shares

     A maximum of 2,000,000 authorized but unissued shares of the common stock
     of the Company (par value $.01) will be allotted to the Plan, subject to
     the required approval by the stockholders.  The Committee may, in its
     discretion, use treasury shares in lieu of authorized but unissued shares
     for the options.  To the extent this is done, the number of authorized but
     unissued shares to be used for the Plan will be reduced.

          Shares covered by options which lapse or have been terminated during
     the duration of this Plan may be reallocated by the Committee.

     Section 2. The remaining provisions of the Plan are not modified or changed
by this Amendment.

     IN WITNESS WHEREOF, the Company has caused this instrument to be executed
as of April 26, 2000 by its duly authorized representative.

                                    AXCESS, INC.

                                    By:   /S/ ALLAN GRIEBENOW
                                       -----------------------------------------
                                    Name: Allan Griebenow
                                    Title: President and Chief Executive Officer<PAGE>

                                                                    EXHIBIT 10.1

                                                  GTE Communications Corporation
                                                  6665 North MacArthur Boulevard
                                                  Irving, TX 75039-2443
June 9, 2000                                      Mailcode: HQKO1E33

Via Federal Express - Overnight Delivery
----------------------------------------

Mr. David Hampton
Netpliance
7600-A Capital of Texas Highway
Austin, TX  78731

Re:  Assignment of Contractual Obligations for DiaLinx Service

Dear Mr. Hampton:

In accordance with the assignment provisions contained in GTE Communications
Corporation's ("GTECC") contract with your company to provide DiaLinx Service
(the "Agreement"), this letter will serve as notice of GTECC's assignment of the
Agreement to Genuity Inc. with an effective date of June 15, 2000.

Genuity Inc. is an affiliate of GTECC and is GTECC's supplier for the DiaLinx
Service.  We have the utmost confidence that this assignment will not negatively
impact your company.  Should you have any questions regarding this
correspondence, please contact Timothy J. Sheets at (972) 465-5315.

Sincerely,

Timothy J. Sheets
Director Proposal / Contract Management<PAGE>

                                                                    EXHIBIT 10.2

                              EMPLOYMENT AGREEMENT

          This Employment Agreement (the "Agreement") is made as of June 26,
2000, by and between Netpliance, Inc., a Delaware corporation (the "Company"),
and Valerie Walden ("Employee").

          WHEREAS, the Company desires to obtain the services of Employee, and
Employee desires to provide services to the Company, in accordance with the
terms and conditions of this Agreement;

          NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Company and Employee agree as
follows.

          1.   Employment.  Effective on the Effective Date (as defined in
               ----------
Section 2) and subject to the terms and conditions of this Agreement, the
---------
Company agrees to employ Employee as its Chief Operating Officer, and Employee
agrees to perform the duties associated with that position diligently and to the
reasonable satisfaction of the Company's Chief Executive Officer and Board of
Directors.  From the Effective Date until termination of this Agreement,
Employee will devote Employee's full business time, attention and energies to
the business of the Company.  Employee will report to the Board of Directors of
the Company and will comply with the policies and guidelines established by the
Company's Board of Directors from time to time.

          2.   Term and Termination.  Employee will be employed under this
               --------------------
Agreement for an initial term of two years (the "Initial Term"), beginning on
the date of the Agreement (the "Effective Date").  This Agreement shall renew
for successive one year periods after the completion of the Initial Term unless
either party gives written notice of termination at least 30 days prior to the
expiration of the Initial Term or any renewal term.  Notwithstanding the
foregoing, either party may terminate this Agreement at any time, with or
without cause, by giving 30 days written notice of termination to the other
party, and upon termination, neither party will have any continuing obligation
to the other party, except as follows: (a) if the Company terminates this
Agreement without Cause (as defined below) within the first year of the Initial
Term, then the Company will be obligated to pay Employee in a lump sum within 10
days after such notice an amount equal to the Employee's base annual salary; (b)
if the Company terminates this Agreement without Cause (as defined below) after
the first year of the Initial Term, then the Company will be obligated to pay
Employee in a lump sum within 10 days after such notice an amount equal to
Employee's base annual salary divided by the number of months remaining in the
Initial Term; and (c) the provisions of Sections 5, 6, 7 and 8 hereof will
                                        ----------  -  -     -
survive any termination of this Agreement for any reason in accordance with
their terms.  As used in this Agreement, termination for "Cause" shall mean any
termination of Employee for (a) refusal to perform duties assigned, or
disobedience of orders and directives issued to Employee; (b) violation of any
rule or regulation of which Employee has notice and that may be established from
time to time for the conduct of the Company's business, (c) unlawful misconduct
by Employee, including, without limitation, the commission of an act of fraud or
embezzlement against the Company or commission of a crime involving moral
turpitude, (d) consistent willful misconduct or negligence in performing
Employee's duties hereunder, (e)
<PAGE>

breach of fiduciary duty in connection with Employee's employment by the Company
or (f) a breach of any of the terms of this Agreement.

          3.   Compensation.  Beginning on the Effective Date and thereafter
               ------------
during the term of Employee's employment, the Company will pay Employee a base
salary at the rate of $225,000 per year, payable biweekly or semi-monthly in
accordance with the payroll practices of the Company in effect from time to
time.  Such base salary shall be subject to review and potential adjustment
annually, in accordance with the compensation policies of the Company in effect
from time to time.  Employee shall also, during the term of Employee's
employment hereunder, be eligible for an annual discretionary incentive bonus of
up to 22% of Employee's base salary, such bonus to be awarded in the discretion
of the Chief Executive Officer in accordance with the bonus policies established
by the Company from time to time.  All of Employee's compensation under this
Agreement will be subject to deduction and withholding authorized or required by
applicable law.

          4.   Employee Benefits. Beginning on the Effective Date and thereafter
               -----------------
during the term of this Agreement, the Company will provide to Employee such
fringe benefits, perquisites, vacation and other benefits that the Company
provides to its similarly situated employees. The Company will reimburse
Employee for reasonable out-of-pocket business expenses incurred and documented
in accordance with the policies of the Company in effect from time to time.

          5.   Assignment of Intellectual Property Rights.
               ------------------------------------------

               (a) In consideration of the Company's agreement to employ
     Employee and the receipt by the Employee of Confidential Information,
     Employee hereby assigns to the Company all of Employee's rights in all
     Intellectual Property which Employee makes or conceives, whether as a sole
     inventor or as a joint inventor, whether made within or outside working
     hours or upon the premises of the Company or elsewhere, during Employee's
     employment with the Company or its subsidiaries.  "Intellectual Property"
     means any information of a technical and/or business nature such as ideas,
     discoveries, inventions, trade secrets, know-how, and writings and other
     works of authorship which relate in any manner to the actual or anticipated
     business or research and development of the Company, its subsidiaries or
     affiliates.

               (b) During and subsequent to Employee's employment, upon the
     request and at the expense of the Company or its nominee and for no
     additional personal remuneration, Employee agrees to execute any instrument
     which the Company considers necessary to secure for or maintain for the
     benefit of the Company adequate patent and other property rights in the
     United States and all foreign countries with respect to any Intellectual
     Property.  Employee also agrees to assist the Company as required to draft
     said instruments and to obtain and enforce said rights.

               (c) Employee agrees to promptly disclose to the Company any
     Intellectual Property when conceived or made by Employee, in whole or in
     part, and to make and maintain adequate and current records thereof.  Upon
     the termination of Employee's employment for any reason, Employee agrees to
     promptly turn over to the Company all models, prototypes, drawings,
     records, documents, and the like in Employee's possession
<PAGE>

     or under Employee's control, whether prepared by Employee or others,
     relating to Intellectual Property, and any other work done for the Company
     related thereto. Employee acknowledges that all such items are the sole
     property of the Company.

               (d) Employee agrees that any Intellectual Property disclosed by
     Employee within one (1) year following termination of Employee's employment
     for any reason shall be the sole property of the Company unless and until
     finally determined by a court of competent jurisdiction to have been made
     or conceived after the termination of Employee's employment.

          6.   Confidential Information.
               ------------------------

               (a) In the course of performing services for the Company under
     this Agreement, Employee may receive or have access to commercially
     valuable, confidential or proprietary information.  "Confidential
     Information" means all confidential information, whether oral or written,
     now or hereafter developed, acquired or used by the Company and relating to
     the business of the Company that is not generally known to others in the
     Company's area of business, including without limitation (to the extent
     confidential) (i) any trade secrets, work product, processes, analyses,
     know-how, software and hardware development information or other
     Intellectual Property of the Company; (ii) the Company's advertising,
     product development, strategic and business plans and information; (iii)
     customer lists and prices at which the Company has sold or offered to sell
     its products or services; and (iv) the Company's financial statements and
     other financial information.

               (b) Employee acknowledges and agrees that the Confidential
     Information (to the extent it can be owned) is and will be the sole and
     exclusive property of the Company.  Employee will not use any Confidential
     Information for Employee's own benefit or disclose any Confidential
     Information to any third party (except in the course of performing
     Employee's authorized duties for the Company under this Agreement), either
     during or subsequent to Employee's employment with the Company. Upon
     termination of Employee's employment with the Company, Employee will
     promptly deliver to the Company all documents, computer disks and other
     computer storage devices and other papers and materials (including all
     copies thereof in whatever form) containing or incorporating any
     Confidential Information or otherwise relating in any way to the Company's
     business that are in Employee's possession or under Employee's control.
     Employee also agrees not to disclose to the Company any Confidential
     Information belonging to others.

          7.   Restrictive Covenant.  For purposes hereof, the "Noncompetition
               --------------------
Period" will begin on the Effective Date and end eighteen (18) months after the
date Employee's employment with the Company is terminated for any reason.  In
consideration of the Company's agreement to employ Employee and the receipt by
the Employee of Confidential Information, Employee hereby agrees that, during
the Noncompetition Period, Employee will not (except in the course of performing
Employee's authorized duties for the Company under this Agreement), directly or
indirectly, on Employee's own behalf or as an officer, director, employee,
consultant or other agent of, or as a
<PAGE>

stockholder, partner or other investor in, any person or entity (other than the
Company or its affiliates):

               (a) engage in any business conducted by the Company, its
     subsidiaries or affiliates and any business competitive with the business
     conducted by the Company, its subsidiaries or affiliates (collectively a
     "Competing Business") within any geographic area in which the Company, its
     subsidiaries or affiliates conducts any business, or in which businesses
     competitive with the businesses of the Company, its subsidiaries or
     affiliates are conducted (the "Territory"), or give advice or lend credit,
     money or Employee's reputation to any natural person or entity engaged in
     or establishing a Competing Business in the Territory or;

               (b) directly or indirectly influence or attempt to influence any
     customer, potential customer, supplier or accounts of the Company, its
     subsidiaries or affiliates located within the Territory to purchase, sell
     or lease goods or services related to a Competing Business other than from
     or to the Company; or

               (c) solicit, encourage, or take any other action which is
     intended, directly or indirectly, to induce any other employee of the
     Company to terminate such employee's employment with the Company, or
     interfere in any manner with the contractual or employment relationship
     between the Company and any other employees of the Company, or hire or
     attempt to hire any former employee of the Company whose termination from
     employment has been effective for ninety (90) days or less;

provided, that the foregoing will not apply to any investment in publicly traded
securities constituting less than 5% of the outstanding securities in such
class.  For purposes of this Agreement, the term "affiliate" means with respect
to any person or entity any other person or entity controlling, controlled by or
under common control with such person or entity.

     8.   Enforcement.
          -----------

          (a)  Employee represents to the Company that Employee is willing
     and able to engage in businesses other than a Competing Business within the
     Territory and that enforcement of the restrictions set forth in Section 7
                                                                     ---------
     would not be unduly burdensome to Employee.  The Company and Employee
     acknowledge and agree that the restrictions set forth in Section 7 are
                                                              ---------
     reasonable as to time, geographic area and scope of activity and do not
     impose a greater restraint than is necessary to protect the goodwill and
     other business interests of the Company, and Employee agrees that that the
     Company is justified in believing the foregoing.

          (b)  If the provisions of Section 7 are found by a court of
                                    ---------
     competent jurisdiction to contain unreasonable or unnecessary limitations
     as to time, geographical area or scope of activity, then such court is
     hereby directed to reform such provisions to the minimum extent necessary
     to cause the limitations contained therein as to time, geographical area
     and scope of activity to be reasonable and enforceable.
<PAGE>

          (c)  Employee acknowledges and agrees that the Company would be
     irreparably harmed by any violation of Employee's obligations under
     Sections 5, 6 and 7 hereof and that, in addition to all other rights or
     ----------  -     -
     remedies available at law or in equity, the Company will be entitled to
     injunctive and other equitable relief to prevent or enjoin any such
     violation.  If Employee violates Section 7, the period of time during which
                                      ---------
     the provisions thereof are applicable will automatically be extended for a
     period of time equal to the time that Employee began such violation until
     such violation permanently ceases.

          9.   No Obligation to Third Party.  Employee represents and warrants
               ----------------------------
that Employee is not under any obligation to any person or other third party and
does not have any other interest which is inconsistent or in conflict with this
Agreement, or which would prevent, limit, or impair Employee's performance of
any of the covenants hereunder or Employee's duties as an employee of the
Company.

          10.  Entire Agreement.  This Agreement embody the complete agreement
               ----------------
of the parties with respect to the subject matter hereof and supersedes any
prior written, or prior or contemporaneous oral, understandings or agreements
between the parties that related in any way to the subject matter hereof.  This
Agreement may be amended only in writing executed by the Company and Employee.

          11.  Binding Effect.  This Agreement shall be binding upon and inure
               --------------
to the benefit of the respective heirs, executors, administrators, legal
representatives and successors of the Company and Employee.

          12.  Notice.  Any notice required or permitted under this Agreement
               ------
must be in writing and will be deemed to have been given when delivered
personally, by telecopy or by overnight courier service or three days after
being sent by mail, postage prepaid, to (a) if to the Company, to the Company's
principal place of business, or (b) if to Employee, to Employee's residence or
to Employee's latest address then contained in the Company's records (or to such
changed address as such person may subsequently give notice of in accordance
herewith).

          13.  GOVERNING LAW; VENUE.  THIS AGREEMENT WILL BE GOVERNED BY AND
               --------------------
CONSTRUED AND INTERPRETED IN ACCORDANCE WITH SUBSTANTIVE LAWS OF TEXAS, WITHOUT
GIVING EFFECT TO ANY CONFLICTS OF LAW, RULE OR PRINCIPLE THAT MIGHT REQUIRE THE
APPLICATION OF THE LAWS OF ANOTHER JURISDICTION.  THE PARTIES AGREE THAT VENUE
FOR ANY ACTION BROUGHT TO ENFORCE THIS AGREEMENT SHALL BE A COURT OF COMPETENT
JURISDICTION IN AUSTIN, TEXAS.
<PAGE>

          IN WITNESS WHEREOF, the Company and Employee have executed and
delivered this Agreement as of the date first above written.

                              NETPLIANCE, INC.

                              By:
                                 -----------------------------------------------
                              Name:  John F. McHale
                              Title:  Chairman and CEO

                              --------------------------------------------------
                              Valerie Walden

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