EXHIBIT 10.4

AMENDMENT NO. 2

TO

CREDIT AGREEMENT

     AMENDMENT NO. 2 (“Amendment No. 2”) dated as of June 30, 2003 (the
“Amendment Date”) to the Credit Agreement dated as of May 10, 2001, as amended
(the “Credit Agreement”), among HORIZON VESSELS, INC., a Delaware corporation
(the “Borrower”), HORIZON OFFSHORE CONTRACTORS, INC., a Delaware corporation,
HORIZON OFFSHORE, INC., a Delaware corporation (together the “Guarantors”), THE
CIT GROUP/EQUIPMENT FINANCING, INC., a Delaware corporation as the Lender (the
“Lender”).

W I T N E S S E T H:

     WHEREAS, pursuant to the Credit Agreement, the Lender made available to the
Borrower a revolving loan facility of up to USD 26,840,000; and

     WHEREAS, the parties wish to amend the Credit Agreement to provide for a
short-term increase in the Commitment of up to USD 5,000,000.

     NOW THEREFORE, in consideration of the above recitals and for other good
and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the parties agree to amend the Credit Agreement as follows:

     1.     The Definitions of the Credit Agreement are hereby amended as
follows:

       (a) A definition of “Amendment No. 2” is hereby added and reads as
follows:

  “Amendment No. 2” means the Amendment No. 2 to Credit Agreement dated as of
June 30, 2003.

       (b) The definition of “Commitment” is hereby amended to read as follows:

  “Commitment” means USD 26,840,000; provided that from the period commencing
with the date of Amendment No. 2 and ending on the Overadvance Maturity Date,
Commitment shall mean 31,840,000.

       (c) A definition of “Pemex” is hereby added and reads as follows:

  “Pemex” means Petroleos Mexicanos.

       (d) A definition of “Overadvance” is hereby added and reads as follows:

  “Overadvance” means any amount of the Loan in excess of USD 26,840,000.

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       (e) A definition of “Overadvance Maturity Date” is hereby added and reads
as follows:

  “Overadvance Maturity Date” means the earlier of (a) October 31, 2003 and
(b) the receipt after the date of Amendment No. 2 by the Borrower or the
Guarantor of proceeds of any account or accounts receivable from Pemex in
respect of Borrower’s or its Affiliates’ claims against Pemex arising out of the
EPC 64 contract which, in the aggregate, are equal to or exceed the then current
principal balance of the Overadvance, plus accrued and unpaid interest thereon.

     2.     Section 2.1A is hereby added to the Credit Agreement and reads as
follows:

  “2.1A Overadvances; Repayment. The Lender agrees to make the Overadvance
available to the Borrower, in principal amount not to exceed USD 5,000,000, in a
single Advance on the date of Amendment No. 2. The Lender shall make the
Overadvance available to the Borrower upon the Borrower’’s delivery of the
documents set forth in Section 9 of Amendment No. 2. The principal amount of the
Overadvance shall be repaid by the Borrower in a single installment, plus
accrued and unpaid interest, on the Overadvance Maturity Date. The Borrower
shall prepay the Overadvance in an amount (a) equal to the proceeds of any
account receivable of Borrower or any Guarantor from Pemex arising out of the
EPC 64 contract, and (b) by which the proceeds of the sale of the vessels
subject to the Second Mortgages exceed the amounts claimed under the First
Preferred Fleet Mortgages therefor. The Borrower may not reborrow any amounts of
the Overadvance that are repaid or prepaid. All amounts paid hereunder by the
Borrower from the date of Amendment No. 2 to the Overadvance Maturity Date shall
be applied first to expenses reimbursable by the Borrower, second to interest
accrued on the Loan, third to the principal amount of the Overadvance then
outstanding, and fourth to the remaining principal balance of the Loan.”

     3.     Section 5.1(a) is hereby amended to read as follows:

  “(a) The Borrower agrees to pay interest in respect on the average daily
balance of all amounts outstanding under the Loan at a rate per annum of the
Governing Rate plus 3.25%.”

     4.     The following is hereby added as Section 12.29 to the Credit
Agreement:

  “12.29. Pemex Receivables. Sell, transfer, factor or grant any security
interest on any account receivable from Pemex to the Borrower or any Guarantor,
other than security interests thereon existing on the date hereof.”

     5.     The following is hereby added as Section 12.30 to the Credit
Agreement:

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  “12.30. Payment on Subordinated Debt. Until the Overadvance is repaid in full,
make any payments on any Indebtedness that is subordinated to the Loan.”

     6.     All references in the Credit Agreement to an “Advance” or “Advances”
shall hereafter include, without limitation, the unpaid principal amount of the
Overadvance.

     7.     All references in the Credit Agreement to the “Note” shall hereafter
refer to the Note as amended by Endorsement No. 1 to the Note, dated the date
hereof.

     8.     All references in the Loan Documents to the “Credit Agreement” shall
hereafter refer to the Credit Agreement as amended by this Amendment No. 2.

     9.     Conditions Precedent.

          9.1 Documents Required as Conditions Precedent to Amendment No. 2. The
effectiveness of the modifications to the Credit Agreement contemplated by this
Amendment No. 2 is subject to the condition precedent that the Lender shall have
received at or prior to the Amendment Date all of the following, each dated on
or before the Amendment Date and each in form and substance satisfactory to the
Lender and its counsel:

       (a) Each of the following documents (the “Amendment Documents”) shall
have been duly authorized and executed with original counterparts thereof
delivered to the Lender:

       (i) This Amendment No. 2;          (ii) Endorsement No. 1 to Note;    
     (iii) Amendments to the Mortgages;          (iv) Second Preferred Fleet
Mortgages covering the U.S. and Vanuatu flag vessels of the Borrower and the
Guarantors that are not covered by the Mortgages;          (v) A Ratification of
Guaranty executed by the Guarantors;          (vi) A Subordination Agreement
with Elliott Partners, L.P. subordinating any Indebtedness to Elliott Partners,
L.P. to the Overadvance; and          (vii) such further documents as the Lender
may reasonably request.

       (b) The Borrower shall have paid a fee of USD 50,000 to the Lender on or
before the date hereof.

       (c) The representations and warranties contained in Section 10 of the
Credit Agreement shall be true on the Amendment Date with the same effect as
though such representations and warranties had been made on and as of such date,
and no Event of

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  Default specified in Section 13 of the Credit Agreement and no event which,
with the lapse of time or the giving of notice and the lapse of time specified
in Sections 11 and 12 of the Credit Agreement, would become such an Event of
Default, shall have occurred and be continuing.

          9.2 Waiver of Conditions Precedent. All of the conditions precedent
contained in this Section 9 are for the sole benefit of the Lender and the
Lender may waive any of them in its absolute discretion, and on such conditions
as it deems proper.

     10.     Representations of the Borrower and Guarantors. The Borrower and
the Guarantors represent and warrant that:

       (a) Each of the Borrower and the Guarantors is a corporation, duly
organized and validly existing in good standing under the laws of the State of
Delaware, and has the requisite power and authority (i) to carry on its business
as presently conducted; and (ii) to enter into and perform its obligations under
the Amendment Documents.

       (b) The execution, delivery and performance by each of the Borrower and
the Guarantors of the Amendment Documents and any other instrument or agreement
provided for by this Amendment No. 2 to which it is a party, have been duly
authorized by all necessary corporate action, do not require stockholder
approval other than such as has been duly obtained or given, do not or will not
contravene any of the terms of its Certificate of Incorporation or Bylaws, and
will not violate any provision of law or of any order of any court or
governmental agency or constitute (with or without notice or lapse of time or
both) a default under, or result (except as contemplated by this Amendment
No. 2) in the creation of any security interests, lien, charge or encumbrance
upon any of its properties or assets pursuant to, any agreement, indenture or
other instrument to which it is a party or by which it may be bound other than
is in favor of the Lender; the Amendment Documents have been duly executed and
delivered by the Borrower and the Guarantors and constitute the respective
legal, valid and binding agreements, enforceable in accordance with the
respective terms thereof as to which each of the Borrower and the Guarantors is
a party. The enforceability of this Amendment No. 2, however, is subject to all
applicable bankruptcy, insolvency, reorganization, moratorium, and other laws
affecting the rights or creditors and to general equity principles.

       (c) Except as set forth in the Credit Agreement, there are no suits or
proceedings pending or to its knowledge threatened against or affecting any
Borrower or Guarantor which if adversely determined would have a material
adverse effect upon its business, financial condition or operations.

       (d) Other than such as have been obtained, no license, consent or
approval of any Governmental Agency or other regulatory authority is required
for the execution, delivery or performance of this Amendment No. 2 or any other
Amendment Document or any instrument contemplated herein or therein. The
Borrower is the holder of all certificates and authorizations of governmental
authorities required by law to enable it to engage in the business transacted by
them.

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     11.     Expenses. The Borrower and the Guarantors agree to promptly,
whether or not the modifications to the Credit Agreement contemplated by this
Amendment No. 2 become effective, (x) reimburse the Lender for all fees and
disbursements of external counsel to the Lender and all reasonable out of pocket
fees and disbursements of the Lender incurred in connection with the
preparation, execution and delivery of this Amendment No. 2 and all other
documents referred to herein, and all amendments or waivers to or termination of
this Amendment No. 2 or any agreement referred to herein; and (y) reimburse the
Lender for all fees and disbursements of internal and external counsel to the
Lender and all reasonable out of pocket fees, disbursements and travel-related
expenses of the Lender incurred in connection with the protection of the rights
of the Lender under this Amendment No. 2 and all other documents referred to
herein, whether by judicial proceedings or otherwise. The obligations of the
Borrower and the Guarantors under this Section 11 shall survive payment of the
Loan.

     12.     Except as specifically amended by this Amendment No. 2, all of the
terms and provisions of the Credit Agreement shall remain in full force and
effect.

     13.     All capitalized terms used herein but not defined herein shall have
the meanings given to them in the Credit Agreement.

     14.     THIS AMENDMENT NO. 2 TO CREDIT AGREEMENT SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NEW YORK.

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     IN WITNESS WHEREOF, the parties hereto have duly executed this Amendment
No. 2 to Credit Agreement on the date first written above.

              BORROWER:               HORIZON VESSELS, INC.               By:  
       

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    Name:            

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    Title:            

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GUARANTORS:               HORIZON OFFSHORE, INC.               By:          

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    Name:            

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    Title:            

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              HORIZON OFFSHORE CONTRACTORS, INC.               By:          

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    Name:            

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    Title:            

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              LENDER:                   THE CIT GROUP/EQUIPMENT FINANCING,
INC.               By:        

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    Name:            

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    Title:            

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