Document:

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                                                                    EXHIBIT 10.4

                              AMENDMENT NUMBER 1 TO
                              EMPLOYMENT AGREEMENT

         This Amendment Number 1 (the "Amendment") is effective as of June 1,
2001 by and between INTERNET PICTURES CORPORATION, a Delaware Corporation (the
"Company") and MATTHEW S. HEITER (the "Executive").

                                   WITNESSETH:

         WHEREAS, the Company and the Executive entered into an Employment
Agreement dated May 31, 2000 (the "Employment Agreement").

         WHEREAS, the Company and Executive desire to amend the Employment
Agreement to extend the term of employment;

         NOW, THEREFORE, in consideration of the covenants and mutual agreements
set forth herein and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties do hereby agree as
follows:

1.       EMPLOYMENT OF EXECUTIVE. Section 1(b) of the Employment Agreement is
         hereby amended by deleting said section in its entirety and inserting
         the following in lieu thereof:

         The duties of the Executive shall include the duties and services
         described in Schedule 1, which duties and services shall at all times
         be subject to the direction, approval and control of the and of
         Directors of the Company (the "Board") and the Chief Executive Officer
         of the Company (the "CEO"). Executive shall report directly to the CEO
         of the Company; provided, however that Executive may report directly to
         the Board through its Chairman, or any director if appropriate, if
         Executive deems it necessary or desirable in his sole discretion.

Schedule 1 of the Employment Agreement is hereby amended by deleting said
Schedule in its entirety and replacing it with the attached Schedule 1.

2.       SERVICES TO BE RENDERED. Section 2(a) of the Employment Agreement is
         hereby amended by deleting the first sentence of said section in its
         entirety. Section 2(c) of the Employment Agreement is amended by
         deleting said section in its entirety and inserting the following in
         lieu thereof:

         During the term of this Agreement, the Company shall furnish, at
         Executive's principal place of employment (Shelby County, Tennessee),
         an office, furnishings, secretary and such other facilities
         commensurate and suitable to his position and necessary for the
         performance of his duties hereunder. Executive shall not be required to
         move from Shelby County, Tennessee.
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3.       TERM. Section 3(a) of the Employment Agreement is amended by deleting
said section in its entirety and inserting the following in lieu thereof:

         The term of this Agreement (the "Term") shall commence effective as of
         the date hereof (the "Commencement Date"), and shall continue until
         June 1, 2002, unless (i) extended by Executive for such additional term
         as he may determine in his sole discretion, not to exceed one (1) year
         or (ii) extended or terminated as hereinafter provided.

Section 3(b) of the Employment Agreement is hereby amended by deleting
subsection (v) in its entirety.

Section 3(d) is hereby amended by deleting subsection (v) in its entirety and
inserting the following in lieu thereof: "The relocation of Executive's place of
employment outside of Shelby County, Tennessee."

Section 3(f) of the Employment Agreement is hereby amended by deleting said
section in its entirety.

4.       LEGAL FEES AND EXPENSES. The Employment Agreement is further amended by
adding a new Section 16 as follows:

         16.      LEGAL FEES AND EXPENSES.

         The Company shall defend, hold harmless, and indemnify Executive on a
         fully grossed-up after tax basis from and against any and all costs and
         expenses (including reasonable attorneys', accountants' and experts'
         fees and expenses) incurred by Executive acting reasonably from time to
         time as a result of any contest (regardless of the outcome) by the
         Company or others contesting the validity or enforcement of, or
         liability under, any term or provision of this Agreement, plus in each
         case interest at the applicable federal rate provided for in Section
         7872(f)(2)(B) of the Code as amended.

5.       COMPENSATION. Section 4(c)(ii)(B) of the Employment Agreement is hereby
amended by deleting said section in its entirety.

6.       NO FURTHER CHANGES. All other terms of the Employment Agreement not
otherwise amended hereby shall continue to be in full force and effect.

7.       COUNTERPARTS. This Amendment may be signed in counterparts, with each
such counterpart constituting an original document.

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         IN WITNESS WHEREOF, the parties have executed the Amendment Number 1 as
of the date first above written.

                                        COMPANY:

                                        INTERNET PICTURES CORPORATION

                                        By:  /s/ Donald W. Strickland
                                           ------------------------------------
                                           Donald W. Strickland, President and
                                                  Chief Executive Officer

                                        EXECUTIVE:

                                        /s Matthew S. Heiter
                                        ---------------------------------------
                                        MATTHEW S. HEITER

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                                   SCHEDULE 1

                               EMPLOYMENT CONTRACT

         Executive:     Matthew S. Heiter

         Position:      Executive Vice President, General Counsel and Secretary

         Duties:        Chief Legal Officer of the Company, oversee and manage
all legal affairs of the Company. Executive shall have the authorities, duties,
responsibilities and status usually associated with the office of companies
having operations and business similar to the operations and business of the
Company and at least commensurate in all material respects with the most
significant of those held, exercised and assigned at any time within ninety (90)
days of June 1, 2001, and such other duties as the Board shall determine and
Executive shall accept from time to time.

         Base Salary:    $250,000 annual

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                                                                   EXHIBIT 10.20

EBAY INC.
2145 HAMILTON AVENUE
SAN JOSE, CA  95125

                       PURCHASE AGREEMENT NO. 2- LEASEBACK

         THIS AGREEMENT dated as of December 1, 2001 by and between INTERNET
PICTURES CORPORATION, a Delaware corporation, having its principal place of
business at 1009 Commerce Park Drive, Oak Ridge, Tennessee 37830, hereinafter
called SELLER and EBAY INC. a Delaware corporation, having its principal place
of business at 2145 Hamilton Avenue, San Jose, California, 95125, hereinafter
called BUYER.

         All capitalized terms used in this Agreement shall have the meanings
ascribed to them in the Visual Content Services Agreement, effective as of
September 7, 2001, Amendment No. 1 to the Visual Content Services Agreement,
effective January 1, 2001, and Amendment No. 2 to the Visual Content Services
Agreement, effective as of the date hereof, in each case by and between the
SELLER and BUYER (collectively, the "VCSA Agreement").

         WITNESSETH, that in consideration of the mutual undertaking herein
contained, the parties agree as follows:

1.       SALE.

         SELLER agrees to sell and BUYER agrees to purchase from SELLER the
equipment listed on Schedule A attached hereto and incorporated by reference
herein together with all additions, attachments, parts or accessories
incorporated or attached therein or associated therewith (referred to as the
"Equipment") in accordance with the terms and conditions specified herein.

2.       PURCHASE PRICE.

         BUYER shall purchase the Equipment for an amount equivalent to Five
Hundred Forty-One Thousand, Four Hundred Twenty-Three Dollars ($541,423). SELLER
shall provide BUYER with all of the purchase documentation associated with
SELLER's purchase of the Equipment from the vendor(s) (the "Equipment
Vendor(s)"), including but not limited to the purchase documentation, invoices,
and bill of sale provided to SELLER. If SELLER has not yet paid the Equipment
Vendor(s) from whom SELLER is purchasing the Equipment, BUYER shall pay said
Purchase Price directly to the Equipment Vendor(s), unless otherwise agreed.
BUYER shall be entitled to a credit of $200,741 against the Purchase Price, so
that the total amount BUYER shall pay SELLER is $340,682.

3.       DELIVERY.
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         SELLER shall deliver and BUYER shall accept delivery of the Equipment
on the Closing Date at a location designated by BUYER prior to or on the Closing
Date. Irrespective of any other provision hereof, SELLER shall bear all risk of
damage from fire, the elements or otherwise until the full payment of the
purchase price is paid.

4.       CLOSING DATE.

         The Closing shall take place on December 1, 2001.

5.       LEASEBACK.

         This Agreement is contingent upon SELLER leasing the Equipment from
BUYER pursuant to Lease Schedule No. 2 to the Master Lease Agreement dated as of
the date hereof between SELLER, as Lessee, and BUYER, as Lessor (collectively,
the "Lease").

         SELLER represents and warrants to BUYER that the Equipment has been
installed, tested, inspected and accepted by SELLER from the Equipment Vendor(s)
and that the Equipment is in good working order.

6.       MAINTENANCE/WARRANTIES.

         (a)      SELLER warrants that either (i) the Equipment is under "new"
equipment warranty from the manufacturer or (ii) the Equipment has been
continuously under a maintenance contract and will be eligible for the
manufacturer's maintenance agreement as of the Closing Date and all Equipment is
at current manufacturer release, revision and/or engineering change levels.

         (b)      SELLER shall and hereby does assign to BUYER the benefit of
all rights applicable to the Equipment in connection with warranties, servicing,
training, patent and copyright indemnities and the like, including the right to
use and possess licensed products associated with the Equipment provided by the
manufacturer or Equipment Vendor(s).

7.       SELLER REPRESENTATIONS.

         (a)      SELLER is a corporation duly existing and in good standing
under the laws of the state of its incorporation and qualified and licensed to
do business in, and is in good standing in, any state in which the conduct of
its business or its ownership of property requires that it be so qualified.

         (b)      SELLER is duly authorized to execute, deliver and perform its
obligations under this Agreement and all corporate actions required on its part
for the due execution, delivery and performance of the transaction contemplated
herein have been duly and effectively taken.

         (c)      SELLER's execution, delivery, and performance of its
obligations under this Agreement are not in conflict with nor constitute a
breach of any provision contained in

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SELLER's Certificate of Incorporation or Bylaws, nor will they constitute an
event of default under any agreement to which SELLER is a party or by which
SELLER is bound.

         (d)      Each item of Equipment is owned by SELLER free and clear of
any liens and encumbrances of any kind or description. Upon purchase of the
Equipment hereunder, BUYER will acquire good and marketable title in and to the
Equipment. Each item of Equipment (i) is currently located in the State of
California and (ii) has at all times been located in the State of California
during SELLER's ownership of the Equipment. The Equipment purchased hereunder is
intended to be used to provide the Services. The SELLER has paid in full the
Equipment Vendor(s) from whom SELLER purchased the Equipment. At the time of
SELLER's purchase of the Equipment, SELLER paid in full all California sales or
use taxes, as applicable, associated with the Equipment.

         (e)      Each item of Equipment is in good condition and repair
(ordinary wear and tear excepted) and is adequate and appropriate for the uses
to which it is currently being put by SELLER.

All representations and warranties herein shall survive the execution of this
Agreement and the purchase of the Equipment.

8.       TITLE.

         Title shall pass from SELLER to BUYER on the date BUYER tenders payment
of the purchase price. SELLER shall provide BUYER with a Bill of Sale in the
form of Schedule B attached hereto and incorporated by reference herein upon
payment of the full Purchase Price to evidence passage of title to the Equipment
from SELLER to BUYER free and clear of all claims, liens and encumbrances.

9.       TAXES AND TAX BENEFITS.

         SELLER hereby indemnifies and holds BUYER harmless for any sales or
other tax arising from the transaction between the Equipment Vendor and SELLER.
BUYER hereby agrees that with respect to Equipment, SELLER shall be entitled to
all the tax benefits that are afforded to an owner of equipment under the
Internal Revenue Code of 1986 (the "Code").

10.      NOTICES.

         Any notice provided for herein shall be in writing and sent by
registered or certified mail, postage prepaid, addressed to the party for which
it is intended at the address set forth in the first paragraph of this Agreement
or to such other address as either party shall from time to time indicate in
writing, and said notice shall be effective upon receipt or three days from the
date of mailing, whichever occurs first.

11.      COVENANTS.

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         (a)      Upon request by BUYER, SELLER shall assist BUYER in obtaining
all licenses necessary or useful to operate the Services (including but not
limited to executing any consents and/or assignments to transfer and/or
effectuate such license(s) to BUYER for no additional incremental fees.

         (b)      BUYER covenants that it shall pay any applicable California
sales taxes arising from the sale of the Equipment to BUYER pursuant to this
Agreement.

12.      MISCELLANEOUS.

         (a)      This constitutes the entire Agreement between SELLER and BUYER
solely with respect to the purchase and sale of the Equipment and no
representation or statement not contained herein shall be binding upon SELLER or
BUYER as a warranty or otherwise, unless in writing and executed by the party to
be bound thereby.

         (b)      This Agreement shall be binding upon and inure to the benefit
of the parties hereto and their respective successors and assigns.

         (c)      This Agreement shall be governed by and construed in
accordance with the laws of the State of California, including all matters of
construction, validity, performance and enforcement. Any disputes arising under
this Agreement may be brought in the state courts and the federal courts located
in San Jose, California, and the parties hereby consent to the personal
jurisdiction and venue of these courts.

         (d)      This Agreement is subject to acceptance by BUYER at its
offices in San Jose, California, and shall only become effective on the date
thereof.

         (e)      This Agreement may be executed in multiple counterparts, each
of which shall be deemed to be an original and of equal force and effect.

         (f)      SELLER agrees to and shall indemnify and hold BUYER harmless
from and against all claims, liens, costs, loss, expenses or damages arising out
of the breach by SELLER of its obligations or out of any misrepresentation by
SELLER, hereunder.

         (g)      THE PARTIES HERETO EACH HEREBY WAIVE TO THE FULLEST EXTENT
PERMITTED BY LAW ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING
ARISING UNDER OR IN CONNECTION WITH THIS AGREEMENT.

                  [Remainder of page intentionally left blank.]

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         IN WITNESS WHEREOF, the parties have caused this Agreement to be
executed and do each hereby warrant and represent that its respective signatory
whose signature appears below has been and is on the date of this Agreement duly
authorized by all necessary and appropriate corporate action to execute this
Agreement.

INTERNET PICTURES CORPORATION              EBAY INC.,
AS SELLER                                  AS BUYER

By:  /s Matthew S. Heiter                  By:  /s/ Michael R. Jacobson
     ---------------------------                --------------------------------

Title:  Executive Vice President           Title:  Vice President, Legal Affairs

Date:  December 1, 2002                    Date:  December 1, 2001

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