Document:

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                                                                    EXHIBIT 10.1

                                AMENDMENT NO. 3

                                       TO

                                CREDIT AGREEMENT

     AMENDMENT NO. 3 ("Amendment No. 3") dated as of June 9, 2000 to the Credit
Agreement dated as of November 3, 1999, as amended (the "Credit Agreement"),
among FRIEDE GOLDMAN HALTER, INC., a corporation organized and existing under
the laws of the State of Mississippi (the "Borrower"), the financial
institutions listed on the signature page hereof (the "Lenders"), WELLS FARGO
BANK (TEXAS), NATIONAL ASSOCIATION, a national banking association, as
Administrative Agent and Co-Arranger (the "Agent"), and BANK ONE CAPITAL
MARKETS, INC., as Co-Arranger and Syndication Agent.

     W I T N E S S E T H:

     WHEREAS, pursuant to the Credit Agreement, the Lenders made available to
the Borrower a loan facility of up to USD 164,218,250, as evidenced by the
promissory notes of the Borrower dated November 3, 1999; and

     WHEREAS, the aggregate principal amount of Advances under the Credit
Agreement is in excess of the Borrowing Base as of the date hereof, in
contravention of the terms of the Credit Agreement; and

     WHEREAS, the Borrower has requested the Lenders to make certain concessions
to the Borrower as a result of such discrepancy; and

     WHEREAS, the Lenders have agreed to amend the Credit Agreement upon the
terms and conditions set forth in this Amendment No. 3.

     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.   DEFINITIONS.

          (a) Amendment No. 3. A definition of "Amendment No. 3" is hereby added
     to the Credit Agreement and reads as follows:

          "Amendment No. 3" means the Amendment No. 3 to Credit Agreement dated
          June 9, 2000 among the Borrower, the Lenders and the Agent.

          (b) Bollinger Sale. A definition of "Bollinger Sale" is hereby added
     to the Credit Agreement and reads as follows:
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          "Bollinger Sale" means the proposed sale of certain assets of the
          Borrower to Bollinger Shipyards, Inc., as set forth in that certain
          asset purchase agreement dated May 31, 2000.

          (c) Borrowing Base.  The following sentence is hereby added to the
     definition of "Borrowing Base":

          "Notwithstanding anything in the Credit Agreement or any Borrowing
          Base Report or other certificate to the contrary, the Borrower and the
          Lenders agree that the Borrowing Base for the Overadvance Period shall
          be deemed to be USD 88,000,000, irrespective of what the actual
          Borrowing Base is for the Overadvance Period."

          (d) Commitment Reduction Fee. The definition of "Commitment Reduction
     Fee" is hereby amended to read as follows:

          "Commitment Reduction Fee" shall mean a fee equal to two and one-half
          percent (2.5%) of the Commitment as of the Amendment Date, payable to
          the Agent for the ratable benefit of the Lenders, subject to a single
          reduction in accordance with the following table:

          Commitment Amount
                                  By 7/31/00           By 8/31/00
     Less than $100,000,000           10%                     5%
     Less than $75,000,000            20%                    15%
     Less than $50,000,000            30%                    25%
     $0                               40%                    35%

                         The Commitment Reduction Fee shall be reduced in
               accordance with the highest percentage corresponding to the level
               of the reduction of the Commitment attained by the Borrower.  As
               an example, if the Borrower reduces the Commitment by July 31,
               2000 to an amount less than $100,000,000 but greater than
               $75,000,000, the Commitment Reduction Fee shall be reduced by
               10%.  If the Borrower then reduces the Commitment to less than
               $75,000,000 but greater than $50,000,000 by August 31, 2000, the
               total aggregate reduction in the Commitment Reduction Fee shall
               be 15%."

          (e) Interest Payment Date.  The definition of "Interest Payment Date"
     is hereby amended to read as follows:

                         "Interest Payment Date" means, with respect to any Base
               Rate Advance, the date of Amendment No. 3 for interest accruing
               through May 31, 2000, and thereafter on the last Business Day of
               each calendar month and, with respect to any LIBOR Advance, the
               last day of the relevant Interest Period except if such Interest
               Period is longer than three (3) months, every three (3) months
               and the last day of such Interest Period.
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          (f) Overadvance Limit.  A definition of "Overadvance Limit" is hereby
     added to the Credit Agreement and reads as follows:

                         "Overadvance Limit" means USD 110,000,000, which may,
               only upon the unanimous written approval of the Lenders, be
               increased to USD 117,480,381.

          (g) Overadvance Period.  A definition of "Overadvance Period" is
     hereby added to the Credit Agreement and reads as follows:

                         "Overadvance Period" means the period from the date of
               Amendment No. 3 to and including June 29, 2000."

2.   OVERADVANCE PERIOD ADVANCES.  The following sentence is hereby
     added to Section 2.2(a) of the Credit Agreement:

     "Notwithstanding the provisions of Section 2.2(b) below, the Lenders agree
     that, during the Overadvance Period only, and subject to the provisions of
     Amendment No. 3 and the other provisions of this Credit Agreement, the
     Lenders shall make available to the Borrower one or more Advances which,
     together with the principal amount of all Advances outstanding under the
     Credit Agreement as of the date of Amendment No. 3, shall not exceed the
     Overadvance Limit, irrespective of the Borrowing Base for the Overadvance
     Period.  On the Business Day immediately following the Overadvance Period,
     the terms of Section 2.2(b) shall be fully applicable to the Loan."

3.   REDUCTION OF REVOLVING COMMITMENT.  Section 2.1(e) of the Credit
     Agreement is hereby amended to read in its entirety as follows:

          "(e)  The Revolving Loan Commitment shall be (i) reduced by seventy-
     five percent (75%) of the Net Proceeds of any Asset Sales, and (ii) repaid
     and reduced by one hundred percent (100%) of the proceeds of all tax
     refunds of the Borrower or any Subsidiary from any source whatsoever,
     federal or state."

4.   TERMINATION OF REVOLVING COMMITMENT.  A new Section 2.1(g) is
     hereby added to the Credit Agreement which reads as follows:

          "(g)  The Revolving Loan Commitment shall terminate immediately and
     without notice to the Borrower upon the occurrence of a material adverse
     change to the Bollinger Sale or the terms thereof.  For purposes of this
     Section 2.1(g), "material adverse change" shall mean (i) a reduction in the
     sales price of USD 4,000,000 or greater, or any other change having
     substantially the same effect, (ii) any agreement by the Borrower to accept
     any of the sales price in any form other than in immediately available
     funds, except for cash paid into escrow pursuant to the terms of the
     Bollinger Sale, (iii) the failure of the Bollinger Sale to close and fund
     before July 31, 2000 or (iv) the cessation of negotiations between the
     parties to the Bollinger Sale prior to the consummation thereof, such
     cessation to be determined by the Lenders in their sole discretion."
<PAGE>

5.   AFFIRMATIVE COVENANTS.  Section 11 of the Credit Agreement is
     amended as follows:

          (a) The following is hereby added to Section 11.1(e) of the Credit
     Agreement:

               "The Borrower shall provide the Borrowing Base Report for the
               period ending May 31, 2000 to the Agent no later than June 27,
               2000.  At the same  time as each of the foregoing reports is
               delivered, the Borrower shall deliver to the Agent a copy of
               monthly consolidated financial statements for the Borrower
               certified by the chief financial officer or chief accounting
               officer or treasurer of the Borrower together with monthly
               consolidating statements of the Borrower."

          (b) A new Section 11.12 is hereby added to the Credit Agreement and
     reads as follows:

                         "11.12  Tax Refunds.  The Borrower shall immediately
               remit and shall insure that each Guarantor immediately remits to
               the Lenders each and every refund from any Governmental Agency,
               including without limitation, each tax refund from any taxing
               authority to an account specified by the Agent for the receipt
               thereof.  The Borrower shall cooperate and shall ensure that each
               Guarantor cooperates with the Agent in executing or providing any
               notices, payment instructions or other forms, documents or
               instruments required by the Agent to effect the payment of any
               such refunds to the Lenders, including, without limitation,
               assignments of any such refunds and tax returns.  The Borrower
               shall provide the Agent with copies of any proposed federal tax
               returns to be filed by the Borrower no less than seven (7)
               Business Days prior to the filing thereof, which returns shall
               contain payment or assignment forms or instructions from the
               Borrower, duly completed and executed by the Borrower and in form
               and substance acceptable to the Agent."

          (c) A new Section 11.13 is hereby added to the Credit Agreement and
     reads as follows:

               "11.13.  Shelf Registration.

               (a) On or prior to June 30, 2000, the Borrower shall file with
               the SEC a "shelf" registration statement for an amount of not
               less than $150,000,000, on Form S-3 (the "Registration
               Statement") and the Borrower shall use its reasonable  best
               efforts to make such Registration Statement effective as soon as
               possible.  In addition, if the Agent or any Lender becomes the
               holder of any common stock or warrants to purchase common stock
               of the Borrower, the Borrower shall provide the Agent or such
               Lender customary registration rights with respect to such common
<PAGE>

               stock or warrants.  The Borrower represents and warrants to the
               Lenders that no shareholder approval is required for the issuance
               by the Borrower of any additional common stock or warrants for
               the purchase thereof, or for the issuance in a single transaction
               of common stock or warrants for the purchase thereof representing
               ten percent (10%) of the issued and outstanding common stock of
               the Borrower.

          (d) A new Section 11.14 is hereby added to the Credit Agreement and
     reads as follows:

               "11.14.  Escrow Account Pledge.  Within five (5) Business Days
               following notice by the Agent to the Borrower, the Borrower shall
               provide the Agent with a pledge, in form and substance
               satisfactory to the Agent, pledging in favor of the Agent for the
               ratable benefit of the Lenders all of the Borrower's right, title
               and interest in and to that certain escrow account with The
               Whitney National Bank in respect of certain tax credits assigned
               to the Borrower by Trinity Industries and all deposits from time
               to time in such account, and the Borrower shall use its best
               efforts to obtain such further documents or notices required to
               perfect such pledge under applicable state law."

6.   CONDITIONS PRECEDENT.

     6.1  Documents Required as Conditions Precedent to Amendment No. 3.  The
effectiveness of the modifications to the Credit Agreement contemplated by this
Amendment No. 3 is subject to the condition precedent that the Agent shall have
received at or prior to the date of this Amendment No. 3 all of the following,
each dated on or before the date of this Amendment No. 3 and each in form and
substance satisfactory to the Agent 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 Agent:

               (i)   This Amendment No. 3;

               (ii)  Amendment No. 3 to the United States First Preferred Fleet
                     Mortgages;

               (iii) Ratification of Guaranty executed by the Guarantors;

               (iv)  A Borrowing Base report for the period ending April 30,
                     2000;

               (v)   Evidence satisfactory to the Agent that the Lenders have a
                     perfected security interest in any inventory and equipment
                     of the Borrower and the Guarantors located in Newfoundland;
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               (vi)   Payment by the Borrower of the Agent's fees and expenses
                      incurred in connection with the Credit Agreement and any
                      amendments thereto through and including the date of this
                      Amendment No. 3;

               (vii)  Evidence satisfactory to the Agent that there has been no
                      material adverse effect as defined in Section 2.1(g) of
                      the Credit Agreement set forth in this Amendment No. 3;
                      and

               (viii) such further documents as the Lenders may reasonably
                      request.

          (b) The representations and warranties contained in Section 10 of the
     Credit Agreement shall be true on the date of this Amendment No. 3 with the
     same effect as though such representations and warranties had been made on
     and as of such date, and no Event of 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 Section 13 of the Credit
     Agreement, would become such an Event of Default, shall have occurred and
     be continuing.

     6.2  Waiver of Conditions Precedent.  All of the conditions precedent
contained in this Section 7 are for the sole benefit of the Agent and the
Lenders and the Agent may waive any of them in its absolute discretion, and on
such conditions as it deems proper.

7.   REPRESENTATIONS.  The Borrower represents and warrants that:

          (a) The Borrower is a corporation, duly organized and validly existing
     in good standing under the laws of the State of Mississippi, 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 Borrower and the
     Guarantors of the Amendment Documents and any other instrument or agreement
     provided for by this Amendment No. 3 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, or similar such organizational documentation, 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. 3) 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 Agent; 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. 3,
     however, is subject to all applicable bankruptcy,
<PAGE>

     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
     Borrower or any 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. 3
     or any other Amendment Document or any instrument contemplated herein or
     therein.

8.   EXPENSES. The Borrower agrees to promptly, whether or not the modifications
to the Credit Agreement contemplated by this Amendment No. 3 become effective,
(x) reimburse the Agent for all fees and disbursements of external counsel to
the Agent and all reasonable out of pocket fees and disbursements of the Agent
incurred in connection with the preparation, execution and delivery of this
Amendment No. 3 and all other documents referred to herein, and all amendments
or waivers to or termination of this Amendment No. 3 or any agreement referred
to herein; and (y) reimburse the Agent for all fees and disbursements of
internal and external counsel to the Agent and all reasonable out of pocket
fees, disbursements and travel-related expenses of the Agent incurred in
connection with the protection of the rights of the Agent under this Amendment
No. 3 and all other documents referred to herein, whether by judicial
proceedings or otherwise. The obligations of the Borrowers under this Section 8
shall survive payment of the Loan.

9.   Wherever and in each such place the term "Credit Agreement" is used
throughout the Credit Agreement, such term shall be read to mean the Credit
Agreement as amended by this Amendment No. 3.

10.   Except as specifically amended by this Amendment No. 3, all of the terms
and provisions of the Credit Agreement shall remain in full force and effect.

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

12.   THIS AMENDMENT NO. 3 TO CREDIT AGREEMENT SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF TEXAS.

13.   The Lenders hereby agree to waive any default or Event of Default
under Section 2.2(b) of the Credit Agreement through June 9, 2000.  The
foregoing waiver is subject to the Borrower satisfying all conditions precedent
hereunder, and shall not be construed as a waiver of any other provision of the
Credit Agreement or as an agreement by the Agent or the Lenders to waive or
modify Section 2.2(b), or any other provision, of the Credit Agreement in the
future.

<PAGE>

     IN WITNESS WHEREOF, the parties hereto have duly executed this Amendment
No. 3 to Credit Agreement on the date first written above.

                              BORROWER:

                              FRIEDE GOLDMAN HALTER, INC.

                              By:
                                 -----------------------------------------
                                 Name:
                                 Title:

                              LENDERS:

                              WELLS FARGO BANK (TEXAS), NATIONAL ASSOCIATION

                              By:
                                 -----------------------------------------
                                 Name:  Roger Fruendt
                                 Title: Vice President

                              ROYAL BANK OF CANADA

                              By:
                                 -----------------------------------------
                                 Name:
                                 Title:

                              HIBERNIA NATIONAL BANK

                              By:
                                 -----------------------------------------
                                 Name:
                                 Title:
<PAGE>

                              BANK ONE, N.A.

                              By:
                                 -----------------------------------------
                                 Name:
                                 Title:

                              ADMINISTRATIVE AGENT AND CO-ARRANGER:

                              WELLS FARGO BANK (TEXAS), NATIONAL ASSOCIATION

                              By:
                                 -----------------------------------------
                                 Name:  Roger Fruendt
                                 Title: Vice President

                              SYNDICATION AGENT AND CO-ARRANGER:

                              BANC ONE CAPITAL MARKETS, INC.

                              By:
                                 -----------------------------------------
                                 Name:
                                 Title:<PAGE>

                                                                    EXHIBIT 10.2
                                AMENDMENT NO. 4

                                       TO

                                CREDIT AGREEMENT

     AMENDMENT NO. 4 ("Amendment No. 4") dated as of July 31, 2000 to the Credit
Agreement dated as of November 3, 1999, as amended (the "Credit Agreement"),
among FRIEDE GOLDMAN HALTER, INC., a corporation organized and existing under
the laws of the State of Mississippi (the "Borrower"), the financial
institutions listed on the signature page hereof (the "Lenders"), and WELLS
FARGO BANK (TEXAS), NATIONAL ASSOCIATION, a national banking association, as
Administrative Agent and Co-Arranger (the "Agent").

     W I T N E S S E T H:

     WHEREAS, pursuant to the Credit Agreement, the Lenders made available to
the Borrower a loan facility of up to USD 164,218,250; and

     WHEREAS, the Credit Agreement was amended by Amendment No. 1 dated December
21, 1999, Amendment No. 2 dated March 30, 2000, Amendment No. 3 dated June 9,
2000 and by the Letter Agreement dated April 7, 2000; and

     WHEREAS, the Borrower wishes to consummate the transactions referred to in
the Credit Agreement as the Bollinger Sale; and

     WHEREAS, the Lenders have agreed to consent to the terms and extension of
the Bollinger Sale upon the terms and conditions set forth herein.

     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.  DEFINITIONS.

          (a) Amendment No. 4. A definition of "Amendment No. 4" is hereby added
     to the Credit Agreement and reads as follows:

          "Amendment No. 4" means the Amendment No. 4 to Credit Agreement dated
          July 31, 2000 among the Borrower, the Lenders and the Agent.

          (b) Borrowing Base. The definition of "Borrowing Base" is hereby
     amended to read as follows:
<PAGE>

          "Borrowing Base" means at any time an aggregate amount equal to the
          sum (without duplication) of (a) eighty percent (80%) of the face
          value of Eligible Accounts, (b) fifty percent (50%) of Eligible
          Inventory, (c) thirty percent (30%) of Net Investment in Work in
          Process, (d) one hundred percent (100%) of cash deposited in an
          account or accounts with the Agent and pledged to the Lenders to
          secure the amounts of outstanding Tranche A Letters of Credit or to
          secure other amounts outstanding under the Revolving Credit Facility
          and (e) sixty percent (60%) of the amount of anticipated tax refunds
          from the Corporation Applications for Tentative Refund, Forms 1139,
          submitted on or about July 24, 2000, by Halter Marine Group, Inc. and
          Subsidiaries in the amount of USD 7,541,487 and by Friede Goldman
          Halter, Inc. and Subsidiaries in the amount of USD 18,336,208;
          provided that Net Investment in Work in Process shall be excluded from
          the Borrowing Base commencing with the Borrowing Base Report to be
          provided on October 1, 2000 and thereafter; and provided further that
          the percentage of Eligible Accounts under the Borrowing Base shall be
          reduced to forty percent (40%) on January 1, 2001, reduced to thirty
          percent (30%) on April 1, 2001, and reduced to zero percent (0%) on
          July 1, 2001; and provided further that the percentage of Eligible
          Inventory under the Borrowing Base shall be reduced to zero percent
          (0%) on April 1, 2001; and provided further that the amounts set forth
          in subparagraph (e) above shall be excluded from the Borrowing Base to
          the extent payment of any such tax refund is made to the applicant
          therefor or for its account; and provided further that no more than
          thirty percent (30%) of the Borrowing Base shall consist of the
          aggregate of the amounts set forth in subparagraphs (b) and (c) of
          this definition.

          (c) Commitment. The definition of "Commitment" is hereby amended to
     read as follows:

          "Commitment"means a maximum of USD 127,218,250 from the period of the
          date of Amendment No. 4 and thereafter, and as it may be reduced from
          time to time pursuant to the provisions of this Credit Agreement.

          (d) Revolving Credit Facility. The definition of "Revolving Credit
     Facility" is hereby amended to read as follows:

          "Revolving Credit Facility" means the USD 83,000,000 senior secured
          revolving loan provided for in Section 2 of this Credit Agreement.

          (e) Revolving Loan Commitment. The definition of "Revolving Loan
     Commitment" is hereby amended to read as follows:
<PAGE>

          "Revolving Loan Commitment" means a maximum of USD 83,000,000, as it
          may be reduced from time to time pursuant to the provisions of this
          Credit Agreement.

     2.  TRANCHE A LETTERS OF CREDIT.  Section 2.1(a) of the Credit Agreement is
hereby amended by adding new second and third sentences that read as follows:

     "If any requested Tranche A Letter of Credit issued on or after the date of
     amendment No. 4 has a duration in excess of 90 days, the Borrower shall
     deposit with the agent and pledge to the Lenders a cash amount equal to the
     face amount of such Tranche A Letter of Credit to secure the Borrower's
     obligations to make Indemnity Payments in respect of such Tranche A Letter
     of Credit.  Each Tranche A Letter of Credit that is outstanding on the date
     of Amendment No. 4 may be extended for a single additional term of ninety
     (90) days if the Borrower deposits with the agent and pledges to the
     Lenders on or before the date of such extension a cash amount equal to the
     face amount of such Tranche A Letter of Credit to secure the Borrower's
     obligations to make Indemnity Payments in respect of such Tranche A Letter
     of Credit."

     3.  REDUCTION OF REVOLVING COMMITMENT.  Section 2.1(e) of the Credit
Agreement is hereby amended to read in its entirety as follows:

     "(e)  All outstanding Advances shall be repaid by, and the Revolving Loan
     Commitment shall be reduced by (i) one hundred percent (100%) of the Net
     Proceeds of any Asset Sales, provided that the Advances shall not be
     required to be repaid by, and the Revolving Loan Commitment shall not be
     reduced by, the Net Proceeds of the sale of (1) the FGO Texas Sabine Yard,
     provided such sale is completed on or about August 7, 2000 and results in
     approximately USD 2,450,000 in Net Proceeds to the Borrower, (2) the
     Borrower's Panama City facility, provided such sale is completed on or
     about August 22, 2000 and results in approximately USD 2,850,000 in Net
     Proceeds to the Borrower, or (3) the sale of the real property known as the
     McElroy property provided such sale results in approximately USD 520,000 in
     Net Proceeds to the Borrower, and provided further, with respect to each of
     the foregoing sales, that no Event of Default has occurred and is
     continuing, and (ii) one hundred percent (100%) of the proceeds of all tax
     refunds of the Borrower or any Subsidiary from any source whatsoever,
     federal or state.  The Revolving Loan Commitment shall be reduced by an
     amount equal to (A) the amount drawn under any Tranche A Letter of Credit
     and (B) the face amount of any cancelled or terminated Tranche A Letter of
     Credit.  In addition, commencing September 1, 2000, the Revolving Loan
     Commitment will be reduced by USD 5,000,000.00 per month; provided that
     such reductions may be offset by the amount of tax refunds or Net Proceeds
     of Asset Sales that have been received and applied to the reduction of the
     Revolving Loan Commitment.  As an example, if the Borrower receives USD
     25,000,000.00 in tax refunds in September 2000 which reduce the Revolving
     Loan Commitment in an equal amount, the automatic monthly reduction of the
     Revolving Loan Commitment by USD 5,000,000.00 per month would recommence on
     February 1, 2001."
<PAGE>

     4.  BOLLINGER SALE; TERMINATION OF REVOLVING COMMITMENT; APPLICATION OF NET
PROCEEDS.  Section 2.1(g) is hereby amended to read as follows:

     "(g)  The Revolving Loan Commitment shall terminate immediately and without
     notice to the Borrower upon the occurrence of a material adverse change to
     the Bollinger Sale or the terms thereof.  For purposes of this Section
     2.1(g), "material adverse change" shall mean (i) a reduction in the sales
     price so that the cash amount paid to the Borrower on the closing date for
     the Bollinger Sale shall be less than USD 71,000,000, or any other change
     having substantially the same effect, (ii) any agreement by the Borrower to
     accept any of the sales price in any form other than in immediately
     available funds, except for cash paid into escrow pursuant to the terms of
     the Bollinger Sale, (iii) the failure of the Bollinger Sale to close and
     fund before August 21, 2000 or (iv) the cessation of negotiations between
     the parties to the Bollinger Sale prior to the consummation thereof, such
     cessation to be determined by the Lenders in their sole discretion.  The
     initial Net Proceeds from the Bollinger Sale will be paid to the Lenders
     and applied as follows: first, an amount equal to the face amount of all
     outstanding Tranche B Letters of Credit shall be deposited in an account or
     accounts with the Agent and shall be pledged to the Lenders to secure the
     Borrower's obligations to make Indemnity Payments in respect of Tranche B
     Letters of Credit; second, an amount equal to the face amount of all
     outstanding Tranche A Letters of Credit expiring more than ninety (90) days
     after the date of Amendment No. 4 shall be deposited in an account or
     accounts with the Agent pledged to the Lenders to secure the Borrower's
     obligations to make Indemnity Payments in respect of such Tranche A Letters
     of Credit; and third, to prepay Advances under the Revolving Credit
     Facility.  Any additional proceeds from or relating to the Bollinger Sale,
     whether relating to an insurance settlement for a sunken barge at
     Calcasieu, Louisiana or the proceeds held in escrow for Working Capital
     Adjustment (as defined in the documentation for the Bollinger Sale), will,
     once paid to the Borrower, be paid to the Lenders and applied as set forth
     in this Section 2.1(g).  The Revolving Loan Commitment shall be reduced by
     all Net Proceeds from the Bollinger Sale in accordance with Section 2.1(e)
     of this Credit Agreement."

     5.  LC FACILITY.  Section 2.3(a) of the Credit Agreement is hereby amended
to read as follows:

     "(a)   Upon the terms and subject to the conditions herein set forth, the
     Lenders severally agree to make a letter of credit facility available to
     the Borrower by, from time to time prior to the Maturity Date, having the
     Issuing Lender issue one or more Tranche B Letters of Credit for the
     account of the Borrower, provided that the aggregate face amount of all
     Tranche B Letters of Credit outstanding hereunder shall not at any time
     exceed the lesser of (i) 80% of the appraised orderly liquidation value of
     the Borrower's Equipment and (ii) the LC Commitment, and provided further
     that, following the completion of the Bollinger Sale, the aggregate face
     amount of all Tranche B Letters of Credit outstanding hereunder shall not
     at any time exceed the amount of cash deposited in an account or accounts
     with the Agent and pledged to
<PAGE>

     the Lenders to secure such Tranche B Letters of Credit. No Tranche B Letter
     of Credit shall have an expiration date that is later than the Maturity
     Date. Following the date of Amendment No. 4, no additional Tranche B
     Letters of Credit shall be issued and no outstanding Tranche B Letter of
     Credit shall be extended beyond its existing term or renewed. The Borrower
     agrees that, by September 25, 2000, it will either replace the Tranche B
     Letter of Credit dated December 13, 1999, No. NZS338170 in favor of
     SouthTrust Bank, National Association, and the Tranche B Letter of Credit
     dated April 20, 2000, No. NZS351717 in favor of the United States
     Department of Transportation, or use the cash collateral securing such
     Tranche B Letters of Credit to prepay or repay the obligations secured by
     such Tranche B Letters of Credit. The Borrower agrees to return the
     originals of the foregoing Tranche B Letters of Credit to the Agent no
     later than September 29, 2000."

     6.  SECURITY.  A new Section 7.5 is hereby added to the Credit Agreement
and reads as follows:

         "7.5 The Borrower, the Agent and the Lenders agree that cash amounts
     deposited with the Agent and pledged to the Lenders as security for amount
     outstanding hereunder or for the Borrower's obligations to make Indemnity
     Payments in respect of any Letter of Credit shall be deposited by such
     Lender in one or more certificates of deposit or other accounts having
     maturities and bearing interest rates as such Lender shall reasonably
     determine.  Accrued interest on such deposits shall be applied as set forth
     in Section 6.3."

     7.  NOTICE OF SWING LINE TERMINATION.  Pursuant to Section 2.1(c) of the
Credit Agreement, the Agent hereby gives notice to the Borrower that the Swing
Line shall terminate on August 15, 2000.

     8.  PLEDGE OF COLLATERAL.  The Lenders agree that the Borrower may pledge
up to USD 7,000,000 to Travelers Reliance to secure the issuance of a bond in
favor of the United States Department of Transportation in connection with the
application by Pasha Hawaii Transport Lines, LLC for certain Title XI Government
Guaranteed Ship Financing, provided that such bond is issued within sixty (60)
days following the date of Amendment No. 4.

     9.  CONDITIONS PRECEDENT.

     9.1  Documents Required as Conditions Precedent to Amendment No. 4.  The
effectiveness of the modifications to the Credit Agreement contemplated by this
Amendment No. 4 is subject to the condition precedent that the Agent shall have
received at or prior to the date of this Amendment No. 4 all of the following,
each dated on or before the date of this Amendment No. 4 and each in form and
substance satisfactory to the Agent 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 Agent:

         (i)  This Amendment No. 4;
<PAGE>

     (ii)  Ratification of Guaranty executed by the Guarantors;

     (iii) A Borrowing Base report for the period ending June 30, 2000;

     (iv)  Evidence satisfactory to the Agent that the Borrower is securing the
           written confirmation of The Whitney National Bank with regard to the
           payment to the Lenders of any cash deposits to which the Borrower is
           entitled;

     (v)   Payment by the Borrower of the Agent's fees and expenses incurred in
           connection with the Credit Agreement and any amendments thereto
           through and including the date of this Amendment No. 4, including,
           without limitation, the fees and expenses of external counsel and
           audit personnel of the Agent;

     (vi)  Evidence satisfactory to the Agent that there has been no material
           adverse effect as defined in Section 2.1(g) of the Credit Agreement;

     (vii) Evidence satisfactory to the Agent that the Borrower is securing
           amendments to its tax returns in respect of electronic funds
           transfers for tax refunds to secure the wire transfer of such refunds
           to an account or accounts satisfactory to the Agent;

    (viii) Resolutions of the Borrower's Board of Directors approving the
           execution and delivery of this Amendment No. 4 by the Borrower,
           certified as true, correct and in effect by the Secretary or other
           senior officer of the Borrower; and

     (ix)  such further documents as the Lenders may reasonably request.

          (b) The representations and warranties contained in Section 10 of the
     Credit Agreement shall be true on the date of this Amendment No. 4 with the
     same effect as though such representations and warranties had been made on
     and as of such date, and no Event of 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 Section 13 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 Agent and the
Lenders and the Agent may waive any of them in its absolute discretion, and on
such conditions as it deems proper.

     10.  REPRESENTATIONS.  The Borrower represents and warrants that:
<PAGE>

          (a) The Borrower is a corporation, duly organized and validly existing
     in good standing under the laws of the State of Mississippi, 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 Borrower and the
     Guarantors of the Amendment Documents and any other instrument or agreement
     provided for by this Amendment No. 4 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, or similar such organizational documentation, 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. 4) 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 Agent; 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. 4, 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
     Borrower or any 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. 4
     or any other Amendment Document or any instrument contemplated herein or
     therein.

     11.  EXPENSES.  The Borrower  agrees to promptly, whether or not the
modifications to the Credit Agreement contemplated by this Amendment No. 4
become effective, (x) reimburse the Agent for all reasonable fees and
disbursements of external counsel to the Agent and all reasonable out of pocket
fees and disbursements of the Agent incurred in connection with the preparation,
execution and delivery of this Amendment No. 4 and all other documents referred
to herein, and all amendments or waivers to or termination of this Amendment
No. 4 or any agreement referred to herein; and (y) reimburse the Agent for all
reasonable fees and disbursements of external counsel and audit personnel of the
Agent and all reasonable out of pocket fees, disbursements and travel-related
expenses of the Agent incurred in connection with the protection of the rights
of the Agent under this Amendment No. 4 and all other documents referred to
herein, whether by judicial proceedings or otherwise. The obligations of the
Borrowers under this Section 11 shall survive payment of the Loan.
<PAGE>

     12.  Wherever and in each such place the term "Credit Agreement" is used
throughout the Credit Agreement, such term shall be read to mean the Credit
Agreement as amended by this Amendment No. 4.

     13.  Except as specifically amended by this Amendment No. 4, all of the
terms and provisions of the Credit Agreement shall remain in full force and
effect.

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

     15.  THIS AMENDMENT NO. 4 TO CREDIT AGREEMENT SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE
OF TEXAS.

     IN WITNESS WHEREOF, the parties hereto have duly executed this Amendment
No. 4 to Credit Agreement on the date first written above.

                              BORROWER:

                              FRIEDE GOLDMAN HALTER, INC.

                              By:
                                 -----------------------------------

                              Name:
                                   ---------------------------------

                              Title:
                                    --------------------------------

<PAGE>

                              LENDERS:

                              WELLS FARGO BANK (TEXAS), NATIONAL ASSOCIATION

                              By:
                                 -----------------------------------------
                                 Name:  Roger Fruendt
                                 Title: Vice President

                              ROYAL BANK OF CANADA

                              By:
                                 -----------------------------------------

                                 Name:
                                      ------------------------------------

                                 Title:
                                       -----------------------------------

                              HIBERNIA NATIONAL BANK

                              By:
                                 -----------------------------------------
                                 Name:
                                      ------------------------------------

                                 Title:
                                       -----------------------------------

                              BANK ONE, N.A.

                              By:
                                 -----------------------------------------

                                 Name:
                                      ------------------------------------

                                 Title:
                                       -----------------------------------

                              ADMINISTRATIVE AGENT AND CO-ARRANGER:

                              WELLS FARGO BANK (TEXAS), NATIONAL ASSOCIATION

                              By:
                                 -----------------------------------------
                                 Name:  Roger Fruendt
                                 Title: Vice President

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