Document:

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                                                                    Exhibit 10.4

DRAFT

                                  June 3, 2002

Robert H. Lessin
131 South Woodland Street
Englewood, NJ 07631

Dear Bob:

Reference is made to our letter agreement dated October 22, 2001 amending your
Employment Agreement with SoundView Technology Group, Inc. The purpose of this
letter is to confirm the terms of our agreement to further modify the terms of
your Employment Agreement. Specifically, our agreement of June 8, 1998, as
amended by our agreements of October 30, 1998, January 1, 1999 and October 22,
2001 (collectively, your Employment Agreement"), is further amended as provided
in this letter.

A. Section 1 of the Employment Agreement, is amended in its entirety to read as
follows:

SECTION 1. EMPLOYMENT. You will be employed by SoundView Technology Group, Inc.
as the Chairman of SoundView Ventures Corporation, a wholly owned subsidiary of
SoundView Technology Group, Inc., the purpose of which is to act as the
investment advisor for the four Dawntreader Fund II parallel funds
(collectively, the "Dawntreader II Funds"), and as otherwise set forth herein.
You will continue to devote a significant amount of your time to working with
the employees of SoundView Ventures Corporation towards the goal of investing
the remaining capital of the Dawntreader II Funds. In addition, you will be
reasonably available to assist our investment bankers as requested in the
execution of advisory and other investment banking engagements. In order to
continue to be available to provide investment banking services, you will
continue to be registered with SoundView Technology Corporation. SoundView
Technology Corporation will not object and will support your dual registration
with one or more of the Businesses described in Annex A, or after September 30,
2002, any other venture that you may become affiliated with if you deem it
appropriate or necessary for that Business or company to be a registered
broker-dealer, so long as such venture does not violate the provisions of
Section 4 herein. This Letter Agreement covers the period from the date of this
letter until September 30, 2003 (the Employment Period"); PROVIDED, HOWEVER,
that you may terminate the Employment Period at any time for any reason after
September 30, 2002 on thirty (30) days advance notice to the Company. The
Company will continue to provide secretarial support for your activities from
your current secretary, at her current salary (plus discretionary bonuses and
benefits), for the duration of the Employment Period. In addition, the Company
agrees to retain you as a consultant to the Company at the end of the Employment
Period (without regard for the timing or the reason for the termination of the
Employment Period) on reasonable terms and conditions to be negotiated at the
time for the period commencing as of the date immediately prior to the
termination of the Employment Period and ending on May 31, 2005. During such
consultancy, you shall be available to answer questions for the Company
regarding the operations of venture funds and past investments of the
Dawntreader II Funds, as well as such other matters as you and the Company may
agree to at the time.

B. Section 2 (a) is amended to include the following sentence at the end of the
section:
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During the Employment Period, you shall receive all benefits, health and
otherwise, that are provided to other executives of the Company.

C. The lead in to Section 4(a) is amended as follows:

4. RESTRICTIVE COVENANTS. (a) You agree that you will not at any time during the
Employment Period (and with respect to (iii) below, at all times thereafter,
directly or indirectly: (i) own, manage, operate, join, control or participate
in the ownership, management, operation or control of, or be connected as a
director, officer, employee, or lender with, or be compensated by, any entity or
business (including a sole proprietorship) that (x) is an NASD registered
broker-dealer, or (y) except as permitted pursuant to Section 4 (b), that
provides financial advisory services, provides investment banking advice or
engages in capital raising; provided that up to a 4.9% interest in a publicly
traded entity shall be permitted, (ii) employ or otherwise engage, or offer to
employ or otherwise engage, or solicit, entice or induce for himself or any
other person, entity or corporation, the services or employment of any person
who is, or during the three months prior thereto has been, an employee of, or
independent contractor, consultant or agent, in each case, devoting a majority
of its business time to, the Company or any of its affiliates (other than your
personal secretary), and (iii) use or disclose, or authorize any other person or
entity to use or disclose, any information of a confidential nature (i.e.,
strategic plans, specifications for existing or future technology) other than as
necessary to further the business objectives of the Company in accordance with
the terms of your engagement hereunder; provided that the restrictions contained
in this Section 4(a) shall not apply to (x) information that becomes publicly
known (other than as a result of your breach of this restriction) and (y)
information, the disclosure of which is reasonably necessary to defend yourself,
or assert your rights, in connection with any proceeding to which the Company or
its affiliates is directly or indirectly a party. You understand that your
services for the Company will be of a special and unique nature, and that the
breach or threatened breach of the provisions of this Section 4(a) would cause
the Company irreparable harm which could not be adequately compensated for in
damages by an action at law. In the event of a breach or threatened breach by
you of this Section 4(a), in addition to all other remedies available to the
Company at law or in equity, the Company will be entitled to seek a temporary or
permanent injunction or injunctions, or temporary restraining orders or orders
to prevent breaches hereof, in each case, without the need to post any security
or bond.

D. Section 4(e) is amended in its entirety to read as follows:

(e) Notwithstanding anything to the contrary contained in this Letter Agreement,
the Company agrees that you may own and participate in any way you deem
appropriate in the management and operations of any organization or entity which
is described in Annex A to this Agreement and collectively referred to as the
"Businesses" and each individually as the "Business." It is the intention of
both parties that you will spend no more time during the Employment Period
working on the activities of any one of the Businesses than you do working for
the Company; PROVIDED, HOWEVER, that the parties recognize and acknowledge that
this sentence is not intended to provide for an exact calculation of time that
you spend with SoundView Ventures nor with any such Business. Further, during
the Employment Period and for one year thereafter, you agree that the Business
and its affiliates will not hire any person employed by the Company, other than
your current secretary, during the Employment Period for at least one year after
such person's employment with the Company was terminated, unless their
termination was by the Company, following which event there shall be no
restrictions on their employment by the Business and its affiliates.
Notwithstanding the previous sentence, during the Employment

                                       2
<PAGE>

Period, the Business and its affiliates will not hire any person who was
employed by the Company and whose resources were allocated to SoundView Ventures
Corporation as of the date hereof or was your secretary. Moreover, during the
Employment Period and for a period of one year thereafter, you will not,
directly or indirectly, solicit, recruit or cause to be hired any employee of
the Company to work for a Person other than the Company or directly or
indirectly engage in any activity that would cause any employee of the Company
to leave the Company for employment with any other Person, it being understood
that this restriction shall not apply to any person who on his or her own
initiative contacts such third Person without any direct or indirect
solicitation by or encouragement from you or because they responded to a general
advertisement or a non-directional inquiry from a search firm. As used in this
Section 4(e), the term "Person" shall mean an individual, partnership,
corporation, limited liability company, unincorporated organization, trust,
joint venture, governmental agency, or other entity, whether domestic or
foreign. In the event that (i) the Company liquidates or dissolves or (ii) there
is a sale of all or substantially all of the assets of the Company, all
restrictions set forth in this Section 4 shall be terminated. In the event that
the Company is acquired by another entity by means of any transaction or series
of related transactions (including, without limitation, any reorganization,
merger or consolidation) that results in the transfer of fifty percent (50%) or
more of the outstanding voting power of the Company (a "Change of Control"), all
restrictions set forth in this Section 4 shall terminate at the time that your
Employment Period terminates, provided, that the change-of-control provisions
set forth in Annex A shall apply. In addition, you have advised that the Company
that in addition to the possibility of owning and working for the Businesses,
you may during the Employment Period, but after September 30, 2002, seek to
become associated with a type of business that might be viewed as prohibited by
the terms of Section 4. It is the intention of the parties to review any request
you may make to become associated with such other organization on a case by case
basis (other than the Businesses which shall continue to be governed by the
terms of this Section 4(e)) and to grant you a waiver from the provisions of
Section 4 if the Company determines at the time that the proposed business
activity does not actively compete with the Company and that your association
with such a business is not inconsistent with your then activities at the
Company. In the event that you request a waiver, the Company shall make a
decision on the request within five (5) business days from receipt of the
request. If the request is denied due to the Company's belief that the activity
competes with the Company, then you shall have the option to forego the activity
or end the Employment Period upon the entering into of an appropriate
consultant's agreement with the Company as provided in Section 1.

In the event that the Company alleges that you have breached any provision of
this Section 4, the Company shall send you written notice of such alleged
breach. You shall have fifteen (15) business days from receipt of such notice to
cure the alleged breach. If such breach is not cured within such period, the
Company shall have the right to seek any remedies available to them under this
Agreement or under applicable law.

E. Annex A is amended in its entirety to read as follows:

                                     ANNEX A

One or more businesses (collectively, the "Businesses" and individually, a
"Business"), (a) the focus of which is intended to be to act as advisors to
senior management of a group of clients for

                                       3
<PAGE>

the services described in item 1 below or to pursue the opportunities described
in item 2 below, or (b) is one of the entities listed in item 3 below.

1. Advisory Work relating to:

      o     Mergers and Acquisitions ("M&A")

      o     Restructuring

      o     Other Management Advisory assignments

It is understood and agreed that if any of the Businesses pursue or undertake
engagements involving M&A or restructuring advisory assignments for any company
involved in the technology, telecommunications or media sectors and such company
is then currently being covered by research of SoundView (SoundView Technology
Group and its subsidiaries) (the "Covered Companies"), the Business and the
Company will work on the engagement on a joint basis, on terms and conditions to
be negotiated in good faith and agreed to on a case by case basis, depending on
the circumstances and the respective contributions to the engagement.

Notwithstanding the restriction set forth above, in the event that there is a
Change of Control, the Business shall be prohibited from agreeing to provide any
M&A or restructuring advisory services to any entity which is a Covered Company
as of the day immediately prior to the Change of Control (a "Declared Covered
Company"); PROVIDED, HOWEVER, that if a Business had been providing advisory
services to a Declared Covered Company prior to the Change of Control pursuant
to an arrangement with the Company, the Business may continue to provide such
services in accordance with the terms of such arrangement. In addition, the
Business may, following a Change of Control, provide M&A or restructuring
advisory services to a Declared Covered Company for which it was not providing
services at the time of the Change of Control pursuant to an arrangement with
the successor corporation to the Company (the "Survivor"). In the event that the
Survivor does not continue to cover a Declared Covered Company, the Business may
send a writing to the Survivor inquiring whether the Survivor intends to
reinstate coverage of such company within 120 days from the termination of the
prior coverage. Unless the Business receives a writing from the Survivor within
ten (10) business days, stating that, in good faith, the Survivor intends to
reinstate coverage of such company within 120 days from the termination of the
prior coverage, the Business may undertake any advisory services for the company
without working jointly with the Survivor.

2. Principle Investing:

      o     All forms of principle investing, except for those that compete with
            the business or investments of the Dawntreader II Funds.

3. Other Entities/Activities:

      o     An entity currently known as LifeCapital, in which you and/or your
            family own a significant interest and whose primary purpose is to
            provide funding and incentives to individuals.

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<PAGE>

As amended by this letter, your Employment Agreement shall continue to govern
the terms and conditions of your employment. Please confirm your agreement by
signing in the space provided below.

                                            SOUNDVIEW TECHNOLOGY GROUP, INC.

                                            BY:
                                               -----------------------------
                                               Mark F. Loehr

Agreed:

------------------
Robert H. Lessin

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Exhibits 4.14 and 10.23  

 
 

SECOND AMENDMENT TO RESTATED CREDIT AGREEMENT    
  

        THIS SECOND AMENDMENT TO RESTATED CREDIT AGREEMENT (hereinafter referred to as the "Amendment") executed as of the 24th day of June, 2002, by and between EXCO
RESOURCES, INC., a Texas corporation ("EXCO") and EXCO OPERATING, LP, a Delaware limited partnership ("Operating") (EXCO and Operating are hereinafter collectively referred to as "Borrowers"
and individually as a "Borrower") and BANK ONE, NA, a national banking association ("Bank One"), and each of the financial institutions which is a party thereto (as evidenced by the signature pages to
the Agreement) or which may from time to time become a party hereto pursuant to the provisions of Section 28 thereof or any successor or assignee thereof (hereinafter collectively referred to
as "Lenders", and individually, "Lender") and Bank One, as Administrative Agent (the "Agent") and BNP Paribas, as Syndication Agent, and The Bank of Nova Scotia, as Documentation Agent and Banc One
Capital Markets, Inc., as Lead Arranger and Bookrunner ("Arranger"). 

 
 

WITNESSETH:    
  

        WHEREAS, as of April 26, 2001, EXCO, as Borrower, the Lenders and the Agent entered into a Credit Agreement
pursuant to which the Lenders made available to the Borrowers certain credit facilities in the form therein described; and 

        WHEREAS, as of December 18, 2001, Borrowers, Lenders and Agent entered into a Restated Credit Agreement (the "Credit Agreement");
and 

        WHEREAS, as of April 26, 2002, Borrower, Lenders and Agent entered into an Amendment to Restated Credit Agreement (the "First
Amendment"); and 

        WHEREAS, the Borrowers have requested that the Lenders agree to make certain additional amendments to the Credit Agreement and the
Lenders, together with certain additional financial
institutions who shall become a party to the Credit Agreement at the Amendment Effective Date (as hereinafter defined), have agreed to do so on the terms and conditions hereinafter set forth. 

        NOW, THEREFORE, the parties agree to amend the Credit Agreement as follows: 

        1.    Unless
otherwise defined herein all defined terms used herein shall have the same meaning as ascribed to such terms in the Credit Agreement. 

        2.    Section 1
of the Credit Agreement is hereby amended to add the following new definitions: 

        "Pro-Forma Consolidated EBITDA" shall mean Consolidated Net Income (excluding gains and losses from asset sales, extraordinary
and non-recurring non-cash gains and losses) from Qualified Acquisitions plus, from such Qualified Acquisitions, the sum of (i) (A) income tax expense (but excluding
income tax expense relating to the sales or other disposition of assets, including capital stock, the gains and losses from which are excluded in the determination of Consolidated Net Income), plus
(B) Consolidated Interest Expense, plus (C) depreciation, depletion and amortization expense, plus (D) any other non-cash expenses less (ii) any other
non-cash income, all as determined in accordance with GAAP and/or any applicable Securities and Exchange Commission regulation and acceptable to Agent (which such acceptance shall not be
unreasonably withheld), in each case for four (4) fiscal quarters ending on the date of determination." 

        "Qualified Acquisitions" shall mean, as of any date, acquisitions by Borrowers in the previous twelve (12) months." 

 

        3.    Section 13
of the Credit Agreement is hereby amended in the following respects: 

        (a)  By
the deletion of Subsection (c) therefrom in its entirety and substituting the following in lieu thereof: 

        "(c)
Debt Coverage Ratio. The Borrowers will not allow EXCO's ratio of Consolidated Funded Debt to the sum of (i) Consolidated
EBITDA plus (ii) Pro-Forma Consolidated EBITDA to be greater than 2.5 to 1.0 as of the end of any fiscal quarter beginning with the fiscal quarter ending June 30, 2002." 

        (b)  By
the deletion of Subsection 13(h) therefrom in its entirety and substituting the following in lieu thereof: 

        "(h)
Restricted Payments. Neither the Borrower nor any Subsidiary will declare or pay any cash dividend, purchase, redeem or otherwise
acquire for value any of its stock now or hereafter outstanding, return any capital to its stockholders, or make any distribution of its assets to its stockholders except that (A) any
Subsidiary may pay dividends to any Borrower or any Guarantor, (B) EXCO may pay dividends required to be paid on the Convertible Preferred Stock and (C) EXCO may purchase its own common
stock if such purchase is made in compliance with the provisions of Section 13(n)(vii), if, and only if, (i) no Borrowing Base Deficiency exists (whether or not said Borrowing Base
Deficiency is in the process of being cured pursuant to the provisions of Section 9(b) hereof), or (ii) immediately before and after giving effect to any such dividend payment any
Default or Event of Default shall exist. Neither Borrower nor any Subsidiary will retire, redeem or prepay prior to scheduled maturity any indebtedness other than obligations under this Agreement." 

        (c)  By
the deletion of Subsection 13(n)(vii) therefrom in its entirety and substituting the following in lieu thereof: 

        "(vii)
other investments (including repurchases by EXCO of its common stock) not exceeding in the aggregate at the time of the incurrence thereof the amount of (A) $5,000,000
(measured in costs on a cumulative basis) whenever the Borrowing Base Usage is equal to or greater than 75%, and (B) $10,000,000 (measured in costs on a cumulative basis) whenever the Borrowing
Base Usage is less than 75%; provided, however, that in no event may EXCO's total expenditure for investments in its own common stock ever exceed $5,000,000." 

        4.    Except
to the extent its provisions are specifically amended, modified or superseded by the First Amendment or this Amendment, the representations, warranties and
affirmative and negative covenants of the Borrowers contained in the Credit Agreement are incorporated herein by reference for all purposes as if copied herein in full. The Borrowers hereby restate
and reaffirm each and every term and provision of the Credit Agreement, as amended, including, without limitation, all representations, warranties and affirmative and negative covenants. Except to the
extent its provisions are specifically amended, modified or superseded by the First Amendment or this Amendment, the Credit Agreement, as amended, and all terms and provisions thereof shall remain in
full force and effect, and the same in all respects are confirmed and approved by the Borrowers and the Lenders. 

        5.    This
Amendment shall be effective as of the date first above written, but only upon the satisfaction of the conditions precedent set forth in Paragraph 6 hereof. 

        6.    The
obligations of Lenders under this Amendment shall be subject to the following conditions precedent: 

        (a)  Execution and Delivery. The Borrowers shall have executed and delivered this Amendment, and other required documents, all
in form and substance satisfactory to the Agent; 

2

 

        (b)  Representations and Warranties. The representations and warranties of the Borrowers under this Amendment are true and
correct in all material respects as of such date, as if then made (except to the extent that such representations and warranties related solely to an earlier date); 

        (c)  No Event of Default. No Event of Default shall have occurred and be continuing nor shall any event have occurred or
failed to occur which, with the passage of time or service of notice, or both, would constitute an Event of Default; 

        (d)  Other Documents. The Agent shall have received such other instruments and documents incidental and appropriate to the
transaction provided for herein as the Agent or its counsel may reasonably request, and all such documents shall be in form and substance satisfactory to the Agent; 

        (e)  Legal Matters Satisfactory. All legal matters incident to the consummation of the transactions contemplated hereby shall
be reasonably satisfactory to special counsel for the Agent retained at the expense of Borrowers. 

        7.    Borrowers
hereby represent and warrant that all factual information heretofore and contemporaneously furnished by or on behalf of Borrowers to Agent for purposes of or in
connection with this Amendment does not contain any untrue statement of a material fact or omit to state any material fact necessary to keep the statements contained herein or therein from being
misleading. Each of the foregoing representations and warranties shall constitute a representation and warranty of Borrowers made under the Credit Agreement, and it shall be an Event of Default if any
such representation and warranty shall prove to have been incorrect or false in any material respect at the time given. Each of the representations and warranties made under the Credit Agreement
(including those made herein) shall survive and not be waived by the execution and delivery of this Amendment or any investigation by Lenders. 

        8.    The
Borrowers agree to indemnify and hold harmless the Lenders and their respective officers, employees, agents, attorneys and representatives (singularly, an
"Indemnified Party", and collectively, the "Indemnified Parties") from and against any loss, cost, liability, damage or expense (including the reasonable fees and out-of-pocket
expenses of counsel to the Lender, including all local counsel hired by such counsel) ("Claim") incurred by the Lenders in investigating or preparing for, defending against, or providing evidence,
producing documents or taking any other action in respect of any commenced or threatened litigation, administrative proceeding or investigation under any federal securities law, federal or state
environmental law, or any other statute of any jurisdiction, or any regulation, or at common law or otherwise, which is alleged to arise out of or is based upon any acts, practices or omissions or
alleged acts, practices or omissions of the Borrowers or their agents or arises in connection with the duties, obligations or performance of the Indemnified Parties in negotiating, preparing,
executing, accepting, keeping, completing, countersigning, issuing, selling, delivering, releasing, assigning, handling, certifying, processing or receiving or taking any other action with respect to
the Loan Documents and all documents, items and materials contemplated thereby even if any of the foregoing arises out of an Indemnified Party's ordinary negligence. The indemnity set forth herein
shall be in addition to any other obligations or liabilities of the Borrowers to the Lenders hereunder or at common law or otherwise, and shall survive any termination of this Amendment, the
expiration of the Loan and the payment of all indebtedness of the Borrowers to the Lenders hereunder and under the Notes, provided that the Borrowers shall have no obligation under this section to the
Lenders with respect to any of the foregoing arising out of the gross negligence or willful misconduct of the Lenders. If any Claim is asserted against any Indemnified Party, the Indemnified Party
shall endeavor to notify the Borrowers of such Claim (but failure to do so shall not affect the indemnification herein made except to the extent of the actual harm caused by such failure). The
Indemnified Party shall have the right to employ, at the Borrowers' expense, counsel of the Indemnified Parties' choosing and to control 

3

 

the defense of the Claim. The Borrowers may at their own expense also participate in the defense of any Claim. Each Indemnified Party may employ separate counsel in connection with any Claim to the
extent such Indemnified Party believes it reasonably prudent to protect such Indemnified Party. The parties intend for the provisions of this Section to apply to and protect
each Indemnified Party from the consequences of strict liability imposed or threatened to be imposed on any Indemnified Party as well as from the consequences of its own negligence, whether or not
that negligence is the sole, contributing, or concurring cause of any Claim.

        9.    This
Amendment may be executed in any number of counterparts and all of such counterparts taken together shall be deemed to constitute one and the same instrument. 

        10.  WRITTEN CREDIT AGREEMENT. THE CREDIT AGREEMENT, AS AMENDED BY THE FIRST AMENDMENT OR THIS AMENDMENT REPRESENTS THE FINAL
AGREEMENT BETWEEN AND AMONG THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN
AND AMONG THE PARTIES. 

        IN WITNESS WHEREOF, the parties have caused this Amendment to Restated Credit Agreement to be duly executed as of the date first above
written. 

	 	 	BORROWERS:
	

 	
 	

EXCO RESOURCES, INC.
	

 	
 	

By:	

/s/ J. DOUGLAS RAMSEY
 J. Douglas Ramsey, Vice President

and Chief Financial Officer
	

 	
 	
EXCO OPERATING, LP

a Delaware limited partnership
	

 	
 	

By:	

EXCO Investment II, LLC,

its General Partner
	

 	
 	

 	

By:	

/s/ T.W. EUBANK
 T.W. Eubank, President

4

 

	 	 	LENDERS:
	

 	
 	

BANK ONE, NA

a national banking association

(Main Office Chicago)

as a Lender and as Administrative Agent
	

 	
 	

By:	

/s/ WM. MARK CRANMER
 Wm. Mark Cranmer, Director

Capital Markets

5

 

	 	 	BNP PARIBAS

as a Lender and as Syndication Agent
	

 	
 	

By:	

/s/ DAVID DODD

	 	 	Name:	David Dodd

	 	 	Title:	Director

	

 	
 	

By:	

/s/ POLLY SCHOTT

	 	 	Name:	Polly Schott

	 	 	Title:	Vice President

6

 

	 	 	THE BANK OF NOVA SCOTIA

as a Lender and as Documentation Agent
	

 	
 	

By:	

/s/ N. BELL

	 	 	Name:	N. Bell

	 	 	Title:	Senior Manager

7

 

	 	 	COMERICA BANK-TEXAS
	

 	
 	

By:	

/s/ MICHELE L. JONES

	 	 	Name:	Michele L. Jones

	 	 	Title:	Vice President

8

 

	 	 	FLEET NATIONAL BANK
	

 	
 	

By:	

/s/ JEFFREY H. RATHKAMP

	 	 	Name:	Jeffrey H. Rathkamp

	 	 	Title:	Vice President

9

 

	 	 	TORONTO DOMINION (TEXAS), INC.
	

 	
 	

By:	

/s/ JEAN PETTIT

	 	 	Name:	Jean Pettit

	 	 	Title:	Vice President

10

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SECOND AMENDMENT TO RESTATED CREDIT AGREEMENT

WITNESSETH

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