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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:



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| | ---------------------------------------------------------------------------
| | (a) A definition of Amendment No. 2 is hereby added and reads as
follows:



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| | ------------------------------------------------------------------------------------------
| | Amendment No. 2 means the Amendment No. 2 to Credit
Agreement dated as of June 30, 2003.



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| | ------------------------------------------------------------------------
| | (b) The definition of Commitment is hereby amended to read as
follows:



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| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 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.



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| | -----------------------------------------------------------------
| | (c) A definition of Pemex is hereby added and reads as follows:



| |                                   
| | ----------------------------------
| | Pemex means Petroleos Mexicanos.



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| | -----------------------------------------------------------------------
| | (d) A definition of Overadvance is hereby added and reads as
follows:



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| | -----------------------------------------------------------------------
| | 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:



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| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 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:



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| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 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:



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| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (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:



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| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 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:



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



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| | ----------------------------------------------------------------------------------------------------------------------------------------------------------
| | (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.                                                                                        



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



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| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (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:



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| | (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.



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| | (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.



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| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (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.



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| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (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:                                     |  | 
| |  |                                         | 
| |  | Name:                                   |  | 
| |  |                                         |  | 
| |  | Title:                                  |  | 
| |  |                                         |  | 
| |  | GUARANTORS:                            
| |  |                                         |  | 
| |  | HORIZON OFFSHORE, INC.                 
| |  |                                         |  | 
| |  | By:                                     |  | 
| |  |                                         | 
| |  | Name:                                   |  | 
| |  |                                         |  | 
| |  | Title:                                  |  | 
| |  |                                         |  | 
| |  |                                         |  | 
| |  | HORIZON OFFSHORE CONTRACTORS, INC.     
| |  |                                         |  | 
| |  | By:                                     |  | 
| |  |                                         | 
| |  | Name:                                   |  | 
| |  |                                         |  | 
| |  | Title:                                  |  | 
| |  |                                         |  | 
| |  |                                         |  | 
| |  | LENDER:                                
| |  |                                         |  | 
| |  | THE CIT GROUP/EQUIPMENT FINANCING, INC.
| |  |                                         |  | 
| |  | By:                                     | 
| |  |                                         | 
| |  | Name:                                   |  | 
| |  |                                         |  | 
| |  | Title:                                  |  | 
| |  |                                         |  | 

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