Document:

<PAGE>
                                                                  EXHIBIT 10.46

                SIXTH AMENDMENT TO EXIM GUARANTEED LOAN AGREEMENT

         THIS SIXTH AMENDMENT TO EXIM GUARANTEED LOAN AGREEMENT (this
"Amendment"), dated as of March 11, 2004, is between HORIZON OFFSHORE
CONTRACTORS, INC., a Delaware corporation ("Contractors"), HORIZON SUBSEA
SERVICES, INC., a Delaware corporation ("Subsea"), HORIZON VESSELS, INC., a
Delaware corporation ("Vessels"), and HORIZEN, L.L.C., a Delaware limited
liability company ("LLC", and together with Contractors, Subsea and Vessels the
"Borrowers"), jointly and severally, each of the financial institutions which is
or may from time to time become a party to such Loan Agreement, as amended
(collectively, "Lenders", and each a "Lender"), and SOUTHWEST BANK OF TEXAS,
N.A., a national banking association, as agent (the "Agent").

                                    RECITALS:

         A. Borrowers, Lenders and Agent entered into that certain EXIM
Guaranteed Loan Agreement dated as of August 15, 2001, as amended by First
Amendment to EXIM Guaranteed Loan Agreement dated as of April 17, 2002, Second
Amendment to EXIM Guaranteed Loan Agreement dated as of August 28, 2002, Third
Amendment to EXIM Guaranteed Loan Agreement dated as of September 30, 2002,
Fourth Amendment to EXIM Guaranteed Loan Agreement dated as of March 6, 2003 and
Fifth Amendment to EXIM Guaranteed Loan Agreement dated as of January 30, 2004
(the "Agreement").

         A. Pursuant to the Agreement, each Borrower, Horizon Offshore, Inc., a
Delaware corporation ("Parent"), and Horizon Offshore Contractors, Ltd., a
company organized and existing under the laws of the Cayman Islands, each
executed a Guaranty dated as of August 15, 2001, and ECH Offshore, S. de R.L. de
C.V., a company organized and existing under the laws of Mexico, executed a
Guaranty dated as of August 15, 2001 (under Mexican law) and a Guaranty dated as
of May 30, 2002 (under Texas law), pursuant to which such Persons (as defined in
the Agreement) guaranteed to Agent the payment and performance of the
Obligations (as defined in the Agreement).

         B. Pursuant to the Agreement all the other subsidiaries of Parent
executed guaranty agreements pursuant to which such subsidiaries guaranteed the
obligations of Borrowers under the Loan Agreement.

         C. Borrowers, Lenders and Agent now desire to amend the Agreement as
herein set forth.

         NOW, THEREFORE, in consideration of the premises herein contained and
other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto agree as follows:

<PAGE>

                                   1. ARTICLE

                                   Definitions

         1.1. Section Definitions. Capitalized terms used in this Amendment, to
the extent not otherwise defined herein, shall have the meanings given to such
terms in the Agreement, as amended hereby.

                                   2. ARTICLE

                                   Amendments

         2.1. Section Amendment to Certain Definitions. (a) The definition of
each of the following terms contained in Section 1.1 of the Agreement is amended
to read in its respective entirety as follows:

         "Applicable Rate" means the sum of the Prime Rate plus (a)
         three-quarters of one percent (0.75%) from March 11, 2004 through June
         29, 2004, (b) one and one-quarter percent (1.25%) from June 30, 2004
         through September 29, 2004, (c) one and three-quarters percent (1.75%)
         from September 30, 2004 through December 30, 2004, and (d) two and
         one-quarter percent (2.25%) from December 31, 2004 through the
         Termination Date; provided, however, that in no event shall the
         Applicable Rate be less than four and three-quarters percent (4.75%).

         "Borrowing Base" means, at any particular time, an amount equal to the
         sum of (a) ninety percent (90%) of Eligible Accounts-Borrowers, plus
         (b) the Designated Advance Percentage-Eligible Accounts-Qualified
         Foreign Subsidiaries, plus (c) sixty percent (60%) of Eligible Costs in
         Excess of Billings-Borrowers, plus (d) the Designated Advance
         Percentage-Eligible Cost in Excess of Billings-Qualified Foreign
         Subsidiaries; provided, however, that the sum of the amounts included
         in the Borrowing Base pursuant to clauses (c) and (d) shall not at any
         time exceed the lesser of (i) $18,000,000.00 or (ii) sixty percent
         (60%) of the sum of (A) the outstanding Advances plus (B) the Letter of
         Credit Liabilities. Notwithstanding anything to the contrary contained
         herein, the accounts receivable arising from the Pemex Contract EPC-64
         are not Eligible Accounts-Borrowers and the costs in excess of billings
         arising from the Pemex Contract EPC-64 are not Eligible Costs in Excess
         of Billings-Borrowers, and neither the accounts receivable nor the
         costs in excess of billings arising from the Pemex Contract EPC-64 may
         be included in the Borrowing Base.

         "Current Liabilities" means all amounts which, in conformity with GAAP,
         would be included as current liabilities on a consolidated balance
         sheet of Parent and its Subsidiaries, excluding all revolving credit
         facilities.

                                      -2-

<PAGE>

         "Current Maturities of Long Term Debt" means for Parent and its
         Subsidiaries on a consolidated basis, the principal amount due and
         payable during the next succeeding twelve month period on Total Funded
         Debt of Parent and its Subsidiaries which has a final maturity more
         than twelve months from the date of calculation, excluding all
         revolving credit facilities.

         "Domestic Loan Agreement" means that certain Loan Agreement dated March
         26, 2001, among Borrowers other than LLC, the Domestic Agent and the
         lenders referred to therein, as amended by First Amendment to Loan
         Agreement dated April 17, 2002, Second Amendment to Loan Agreement
         dated May 30, 2002, Third Amendment to Loan Agreement dated as of
         August 28, 2002, Fourth Amendment to Loan Agreement dated as of
         September 30, 2002, Fifth Amendment to Loan Agreement dated as of March
         6, 2003, Sixth Amendment to Loan Agreement dated as of January 30, 2004
         and Seventh Amendment to Loan Agreement dated as of March 11, 2004, as
         the same may be further amended, supplemented or modified from time to
         time, and any loan agreement or credit agreement executed in
         restatement and replacement therefor.

         "EBITDA" means, for Parent and its Subsidiaries, on a consolidated
         basis, for any period, the sum of (a) Net Income before gains and
         losses on sales of assets (to the extent such gains and losses are
         included in earnings), plus (b) Tax Expense, plus (c) depreciation and
         amortization, plus (d) Interest Expense.

         "Fixed Charge Coverage Ratio" means for Parent and its Subsidiaries, on
         a consolidated basis, (a) as of September 30, 2004, (i) EBITDA for the
         quarter ended as of September 30, 2004, divided by (ii) the sum of (A)
         Current Maturities of Long Term Debt as of September 30, 2004 divided
         by four (4), plus (B) Interest Expense for the quarter ended as of
         September 30, 2004, plus (C) Tax Expense for the quarter ended as of
         September 30, 2004, and (b) as of December 31, 2004, (i) EBITDA for the
         quarters ended as of September 30, 2004 and December 31, 2004, divided
         by (ii) the sum of (A) Current Maturities of Long Term Debt as of
         December 31, 2004 divided by two (2), plus (B) Interest Expense for the
         quarters ended as of September 30, 2004 and December 31, 2004, plus (C)
         Tax Expense for the quarters ended as of September 30, 2004 and
         December 31, 2004.

         "Net Income" means, for any period, with respect to Parent and its
         Subsidiaries, the consolidated net income (or loss) of Parent and its
         Subsidiaries for such period, determined in accordance with GAAP
         applied consistently, excluding any extraordinary items during such
         period.

         "Prime Rate" means, at any time, the rate of interest per annum then
         most recently published in The Wall Street Journal (or any successor
         publication if The Wall Street Journal is no longer published) in the
         "Money Rates" section (or such successor section) as the "Prime Rate."
         If a range of prime interest rates per annum is so published, "Prime
         Rate" shall mean the highest rate per annum in such published range. If
         the definition of "Prime Rate" is no longer published in

                                      -3-

<PAGE>

         The Wall Street Journal (or any successor publication), "Prime Rate"
         shall mean, at any time, the rate of interest per annum then most
         recently established by Lender as its prime rate.

         "Tangible Net Worth" means, at any particular date, all amounts which,
         in conformity with GAAP, would be included as stockholders' equity on a
         consolidated balance sheet of Parent and its Subsidiaries; provided,
         however, there shall be excluded therefrom (a) any amount at which
         shares of capital stock of Parent or any Subsidiary appear as an asset
         on Parent's or such Subsidiary's balance sheet, (b) goodwill, including
         any amounts, however designated, that represent the excess of the
         purchase price paid for assets or stock over the value assigned
         thereto, (c) patents, trademarks, trade names, and copyrights, (d)
         deferred expenses, (e) loans and advances to any stockholder, director,
         officer, or employee of Parent or any Subsidiary or any Affiliate, (f)
         all other assets which are properly classified as intangible assets,
         and (g) paid-in-kind interest on the New Subordinated Debt.

         "Termination Date" means 11:00 a.m., Houston, Texas time on January 21,
         2005, or such earlier date on which the Commitment terminates as
         provided in this Agreement.

         (b) The following phrase shall be added to the end of the first
sentence of the definition of the term "Eligible Accounts-Borrowers":

         "and (v) have not been determined to be ineligible or not to constitute
         Eligible Accounts-Borrowers by the Majority Lenders, which
         determination shall be made by the Majority Lenders in their sole
         discretion."

         (c) The following definitions shall be added to Section 1.1 of the
Agreement in proper alphabetical order:

         "EBITDAR" means, for Parent and its Subsidiaries, on a consolidated
         basis, for any period, the sum of (a) Net Income before gains and
         losses on sales of assets (to the extent such gains and losses are
         included in earnings), plus (b) Tax Expense, plus (c) depreciation and
         amortization, plus (d) Interest Expense, plus (e) restructuring
         charges, including costs of professional advisors to Borrowers (for the
         professional advisors to the Borrowers, the Lenders or other creditors)
         not to exceed $1,600,000.00 for the fiscal year ending December 31,
         2004.

         "Iroquois" means Iroquois Gas Transmission System, L.P., and its
         successors and assigns.

         "Iroquois Contract" means that certain contract No. 02-12 dated April
         12, 2002 between Iroquois and Contractors.

         "New Subordinated Debt" means Debt of Parent evidenced by its 16%
         Subordinated Secured Notes due March 31, 2007, issued pursuant to the

                                      -4-

<PAGE>

         Purchase Agreement in an original principal amount not less than
         $65,400,000.00, the payment of which is subordinate to the payment of
         the Obligations in a manner satisfactory to Agent and all other terms
         of which (including interest rate, maturity, payment terms to the
         effect that no cash payments may be made thereon for principal,
         interest or fees (except for payments of principal paid solely from (i)
         proceeds of Pemex Contract EPC-64 or the Williams Contract, or (ii)
         proceeds of any issuance of equity), financial covenants and
         collateral) are acceptable to Agent and the Majority Lenders.

         "Pemex Contract EPC-64" means that certain contract No. PEP-0-AD-317/00
         (also known as EPC-64) between Pemex and ECH.

         "Purchase Agreement" means that certain Purchase Agreement dated March
         11, 2004, among Parent, the guarantors listed therein and the
         purchasers listed therein, pursuant to which the New Subordinated Debt
         was issued, as the same may be amended, supplemented or modified from
         time to time.

         "Tax Expense" means, for any period, for Parent and its Subsidiaries,
         on a consolidated basis, the sum of all tax expense of Parent and its
         Subsidiaries for such period determined in accordance with GAAP applied
         consistently.

         "Williams" means Williams Oil Gathering, L.L.C., and its successors
         and assigns.

         "Williams Contract" means that certain contract between Williams and
         Contractors for Subsea Shallow Water Pipelay of the 20-inch Oil
         Mountaineer Pipeline on Devil's Tower Project from Main Pass Block 313
         to main Pass Block 22, effective as of October 1, 2002.

         (d) The definition of the following terms shall be deleted from Section
1.1 of the Agreement:

                  "Adjusted Letter of Credit Liabilities"
                  "Applicable Margin"
                  "Cash Taxes"
                  "Continue", "Continuation" and "Continued"
                  "Convert", "Conversion", and "Converted"
                  "Interest Period"
                  "LIBOR Advances"
                  "LIBOR Margin"
                  "LIBOR Rate"
                  "London Business Day"
                  "Prime Rate Advances"
                  "Prime Rate Margin"
                  "Ratio of Funded Debt to Capitalization"
                  "Ratio of Funded Debt to EBITDA"
                  "Total Capitalization"
                  "Type"
                  "Working Capital"

                                      -5-

<PAGE>

         2.2. Section Amendment to Section 2.1(a). Clause (b) contained in
Section 2.1(a) is amended to read in its entirety as follows:

         (b) the Borrowing Base minus the Letter of Credit Liabilities.

         2.3. Section Amendment to Section 2.4. Section 2.4 of the Agreement is
amended to read in its entirety as follows:

         Section 2.4. Interest. The unpaid principal amount of the Advances
         shall bear interest prior to maturity at a varying rate per annum equal
         from day to day to the lesser of (a) the Maximum Rate or (b) the
         Applicable Rate, and each change in the rate of interest charged on the
         Advances shall become effective, without notice to Borrowers, on the
         effective date of each change in the Applicable Rate or the Maximum
         Rate, as the case may be; provided, however, if at any time the rate of
         interest specified in clause (b) preceding shall exceed the Maximum
         Rate, thereby causing the interest on the Advances to be limited to the
         Maximum Rate, then any subsequent reduction in the Applicable Rate
         shall not reduce the rate of interest on the Advances below the Maximum
         Rate until the aggregate amount of interest accrued on the Advances
         equals the aggregate amount of interest which would have accrued on the
         Advances if the interest rate specified in clause (b) preceding had at
         all times been in effect. Accrued and unpaid interest on the Advances
         shall be payable on the first day of each month commencing on April 1,
         2004, and on the Termination Date

         Notwithstanding the foregoing, if any Event of Default has occurred and
         is continuing, the outstanding principal of the Advances shall bear
         interest at the Default Rate. Interest payable at the Default Rate
         shall be payable from time to time on demand.

         2.4. Section Amendment to Section 2.5. Section 2.5 of the Agreement is
amended to read in its entirety as follows:

         Section 2.5. Requests for Advances. Borrowers shall give Agent notice
         of each requested Advance by delivery to Agent of an Advance Request
         Form executed by an Authorized Representative at least one (1) Business
         Day before the requested date of each Advance. Each Advance Request
         Form shall be accompanied by the items required by Section 5.2. Advance
         Request Forms may be delivered by fax. The Agent shall promptly notify
         each Lender of the contents of each such notice. No later than 11:00
         a.m. Houston, Texas time on the date specified for each Advance
         hereunder, each Lender shall make available to Agent at its office
         specified herein in immediately available funds, its Pro Rata Share of
         each Advance. After Agent's receipt of such funds and subject to the
         other terms and conditions of this Agreement, Agent shall make each
         Advance available to the Borrowers by depositing the same, in
         immediately available funds, in the operating account of Contractors
         maintained at Agent's office specified herein. Advance Request Forms
         submitted shall be irrevocable

                                      -6-

<PAGE>

         and shall be effective for the requested Advances on the following
         Business Day if received by Agent by 11:00 a.m. Houston, Texas time on
         a Business Day, and otherwise on the next following Business Day.

         2.5. Section Amendment to Section 2.7. (a) The phrase "if at any time
the outstanding principal amount of the Advances plus the Adjusted Letter of
Credit Liabilities exceeds the Borrowing Base" contained in clause (a) of
Section 2.7 is amended to read "if at any time the outstanding principal amount
of the Advances plus the Letter of Credit Liabilities exceeds the Borrowing
Base".

         (b) A new paragraph (d) shall be added to Section 2.7 of the Agreement
and shall read in its entirety as follows:

         (d) On any date on which Borrowers receive payment of the Iroquois
         Contract, if the obligations of the Borrowers under the Domestic Loan
         Agreement (the "Domestic Obligations") are paid in full with the net
         proceeds of such payment (excluding payments to subcontractors)
         pursuant to Section 2.7(b) of the Domestic Loan Agreement, the Advances
         shall be due and payable in a principal amount equal to one hundred
         percent (100%) of the net proceeds of such payment or so much thereof
         as remains after payment in full of the Domestic Obligations as
         provided in Section 2.7(b) of the Domestic Loan Agreement.

         2.6. Section Amendments to Section 2.10. (a) The phrase "(b) the
Borrowing Base minus the Adjusted Letters of Credit Liabilities" contained in
the first sentence of Section 2.10 is amended to read "(b) the Borrowing Base
minus the Letter of Credit Liabilities".

         (b) Clause (a) contained in the second sentence of Section 2.10 of the
Agreement is amended to read in its entirety as follows:

         (a) have an expiration date which is at least ten (10) days prior to
         (i) the Termination Date, (ii) the Availability Date (as defined in the
         EXIM Guaranty), (iii) the Final Disbursement Date (as defined in the
         Loan Authorization Agreement entered into in connection with the EXIM
         Guaranty as amended from time to time), and (iv) any other date on
         which for any reason the EXIM Guaranty shall mature, expire or cease to
         be in full force and effect or on or after which a claim may not be
         made under the EXIM Guaranty, unless such Letter of Credit is
         specifically secured by cash in an amount at least equal to one hundred
         percent (100%) of the face amount of such Letter of Credit,

         2.7. Section Amendment to Section 2.14. The first sentence contained in
Section 2.14 of the Agreement is amended to read in its entirety as follows:

         Borrowers shall pay to Issuing Bank a letter of credit fee payable on
         the date each Letter of Credit is issued in an amount equal to the
         greater of (a) three percent (3.00%) per annum of the stated amount of
         such Letter of Credit for the

                                      -7-

<PAGE>

         period during which such Letter of Credit will remain outstanding,
         based on a 360 day year and the actual number of days elapsed, or
         (b) $350.00.

         2.8. Section Amendment to Section 2.18. The phrase "payable monthly,"
contained in the first sentence of Section 2.18 of the Agreement is amended to
read "payable monthly on the first (1st) day of each month,".

         2.9. Section Amendments to Article III. (a) The phrase "Additional
Matters with Respect to LIBOR Loans" shall be deleted from the title of Article
III of the Agreement.

         (b) The phrase "other than the amounts described in Section 3.9" shall
be deleted from Section 3.3 of the Agreement.

         (c) Section 3.4 of the Agreement is amended to read in its entirety as
follows:

         Section 3.4. Computation of Interest. Interest on the indebtedness
         evidenced by the Notes shall be computed on the basis of a year of (a)
         360 days and the actual number of days elapsed (including the first day
         but excluding the last day) unless such calculation would result in a
         usurious rate, in which case interest shall be calculated on the basis
         of a year of 365 or 366 days, as the case may be. (d) Sections 3.7, 3.8
         and 3.9 shall be deleted from the Agreement in their entirety.

         2.10. Section Addition of Section 4.5. Section 4.5 shall be added to
the Agreement and shall read in its entirety as follows:

         Section 4.5. Pemex Contract EPC-64; Williams Contract. Agent shall, at
         the option of the holders of the New Subordinated Debt, (a) assign its
         Liens in the Williams Contract to the holders of the New Subordinated
         Debt, (b) terminate its Liens in the Pemex Contract EPC-64, and,
         concurrently therewith, the Pemex Contract EPC-64 shall be removed from
         the Borrowing Base, and (c) assign or terminate its liens in the stock
         of ECH.

         2.11. Section Amendment to Section 7.1. The phrase "within forty-five
(45) days after the end of each quarter of each fiscal year" contained in clause
(b) of Section 7.1 of the Agreement is amended to read "within forty-five (45)
days after the end of the first three (3) quarters of each fiscal year".

         2.12. Section Amendment to Section 8.1. Section 8.1 of the Agreement is
amended to read in its entirety as follows:

         Section 8.1. Debt. No Borrower will incur, create, assume or permit to
         exist, nor will any Borrower permit Guarantor or any Subsidiary to
         incur, create, assume, or permit to exist, any Debt, except

                                      -8-

<PAGE>

         (a) indebtedness of Borrowers to Lenders under this Agreement and the
         Loan Documents;

         (b) Indebtedness of Borrowers under the Domestic Loan Agreement in an
         aggregate principal amount such that the sum of the maximum permitted
         Indebtedness of Borrowers under the Domestic Loan Agreement plus the
         Combined Commitments does not exceed $50,000,000.00;

         (c) accounts payable and accrued liabilities incurred in the ordinary
         course of business;

         (d) letter of credit, performance and bid bonds obtained by Borrowers
         in the ordinary course of their business, other than the Letters of
         Credit, up to an aggregate amount of $15,000,000.00 at any time;

         (e) supersedeas bonds obtained by Borrowers in the ordinary course of
         their business;

         (f) secured term indebtedness existing on December 31, 2003;

         (g) Committed indebtedness of Borrowers under the CIT Loan Agreement
         and other committed indebtedness of Borrowers secured only by vessels,
         in each case existing on December 31, 2003; and

         (h) the New Subordinated Debt.

         2.13. Section Amendment to Section 8.2. Section 8.2 of the Agreement is
amended to read in its entirety as follows:

         Section 8.2 Limitation on Liens. No Borrower will incur, create, assume
         or permit to exist, nor will any Borrower permit Parent, any
         Subsidiary, any Qualified Foreign Subsidiary or any Related Entity to
         incur, create, assume or permit to exist, any Lien upon any of its
         property, assets or revenues, whether now owned or hereafter acquired,
         except for the liens and other encumbrances set forth below (the
         "Permitted Liens"):

              (a)  Liens for Taxes (i) not at the time delinquent or (ii) being
                   contested in good faith and by appropriate proceedings and
                   with respect to which proper reserves have been taken by
                   Borrower, such Subsidiary or such Qualified Foreign
                   Subsidiary, provided that such Liens shall have no effect
                   upon the priority of the Liens in favor of Agent or the value
                   of the Collateral and a stay of enforcement if any such Lien
                   shall be in effect;

              (b)  Liens of carriers, warehousemen, mechanics, materialmen and
                   landlords incurred in the ordinary course of business with
                   respect to obligations which are not due;

              (c)  maritime Liens:

                                      -9-

<PAGE>

              (i)  arising in the ordinary course of business by operation of
                   law that are being contested in good faith by appropriate
                   proceedings and for which reserves have been established to
                   the reasonable satisfaction of Lenders or

             (ii)  arising in connection with salvage and general average; or

            (iii)  arising in connection with crew wages claimed but not paid;
                   provided that such maritime Liens do not attach to the
                   Collateral with respect to which Agent is to have a first
                   priority Lien as provided in Section 4.1;

         (d) Liens incurred in the ordinary course of business in connection
         with workmen's compensation, unemployment insurance or other forms of
         governmental insurance or benefits, or to secure performance of tenders
         and statutory obligations entered into in the ordinary course of
         business or to secure obligations on surety or appeal bonds in the
         ordinary course of business or easements, rights of way and similar
         encumbrances incurred in the ordinary course of business and not
         interfering with the ordinary conduct of the business of any Borrower,
         Parent, any Subsidiary, any Qualified Foreign Subsidiary or any Related
         Entity;

         (e) judgment Liens, the execution of which has been stayed or which are
         bonded, provided that, if bonded, the payment of such judgment Liens is
         fully covered by insurance and the insurance carrier has acknowledged
         such coverage in writing;

         (f) Liens required by the terms of this Loan Agreement;

         (g) Liens in favor of the Foreign Agent pursuant to the Foreign Loan
         Agreement, provided that such Liens also secure the Obligations; and
         provided, further, that only the Liens covering the Domestic Accounts,
         the Domestic Inventory and the Other Domestic Collateral shall be prior
         to the Liens of Agent under this Agreement and the Loan Documents;

         (h) Liens in connection with Debt referred to in Section 8.1(f),
         provided that such Liens do not cover any of the Collateral;

         (i) Liens on vessels created in accordance with the CIT Loan Agreement
         securing the indebtedness of Borrowers under the CIT Loan Agreement and
         Liens on vessels securing other Debt permitted pursuant Section 8.1(g);

         (j) Permitted Liens as defined in the Borrower Agreement; and

                                      -10-

<PAGE>

         (k) Liens securing the New Subordinated Debt created as of the date of
         the Sixth Amendment to EXIM Guaranteed Loan Agreement (amending this
         Agreement), provided that such Liens do not attach to any of the
         Collateral (as the Collateral exists after the assignments and
         terminations executed by the Agent in connection with the incurrence of
         the New Subordinated Debt).

         2.14. Section Addition of Section 8.16. Section 8.16 shall be added to
the Agreement and shall read in its entirety as follows:

         Section 8.16. No More Restrictive Covenants. No Borrower will, nor will
         any Borrower permit Parent or any Subsidiary to, (a) enter into or
         permit to exist any loan agreement, credit agreement, purchase
         agreement or other agreement in connection with which Debt is or was
         incurred (a "Debt Agreement") which contains covenants, agreements or
         representations which are more restrictive than the covenants,
         agreements and representations which are contained in this Agreement
         and the Loan Documents, or (b) amend or modify any existing or future
         Debt Agreement in a manner which would result in such Debt Agreement,
         as amended or modified, containing covenants, agreements and
         representations which are more restrictive than the covenants,
         agreements and representations which are contained in this Agreement
         and the Loan Documents.

         2.15. Section Amendment to Article IX. Article IX contained in the
Agreement is amended to read in its entirety as follows:

                                   ARTICLE IX.

                              Financial Covenants

         Borrowers covenant and agree that, as long as the Obligations or any
         part thereof are outstanding or any Lender has any Commitment hereunder
         or Issuing Bank has any obligation to issue any Letter of Credit
         hereunder or any Letter of Credit Liabilities exist, Borrowers will
         observe and perform, and will cause Parent to observe and perform, the
         financial covenants set forth below, unless Agent and Majority Lenders
         shall otherwise consent in writing.

         Section 9.1. Current Ratio . Parent and its Subsidiaries will at all
         times maintain a Current Ratio of not less than (a) 0.90 to 1.00 for
         the fiscal quarters ending as of March 31, 2004 and June 30, 2004, (b)
         1.05 to 1.00 for the fiscal quarter ending as of September 30, 2004,
         and (c) 1.10 to 1.00 for the fiscal quarter ending as of December 31,
         2004. The Current Ratio shall be calculated and tested quarterly as of
         the last day of each fiscal quarter of Parent commencing with the
         fiscal quarter ending March 31, 2004.

         Section 9.2. Tangible Net Worth . Parent and its Subsidiaries will at
         all times maintain Tangible Net Worth in an amount not less than the
         sum of (a) $110,000,000.00, plus (b) seventy-five percent (75%) of Net
         Income for each

                                      -11-

<PAGE>

         fiscal quarter of Parent and its Subsidiaries which has been completed
         as of the date of calculation, commencing with the fiscal quarter
         ending March 31, 2004, provided, however, that in the event that Net
         Income of Parent and its Subsidiaries is not greater than zero for any
         fiscal quarter, an amount equal to zero shall be added to the
         calculation of Tangible Net Worth for such fiscal quarter, plus (c)
         ninety percent (90%) of the net proceeds of any common stock or other
         equity issued by Parent or any of its Subsidiaries after December31,
         2003. Tangible Net Worth shall be calculated and tested quarterly as of
         the last day of each fiscal quarter of Parent commencing with the
         fiscal quarter ending March 31, 2004. Any audit adjustment for the
         fiscal year ended December 31, 2003 that results in an adjustment to
         the equity accounts in an amount in excess of $53,416,000.00 will
         adjust the minimum Tangible Net Worth requirement on a dollar for
         dollar basis.

         Section 9.3. Fixed Charge Coverage Ratio . Parent and its Subsidiaries
         will maintain a Fixed Charge Coverage Ratio of not less than (a) 1.50
         to 1.00 for the fiscal quarter ending as of September 30, 2004 and (b)
         1.40 to 1.00 for the fiscal quarter ending as of December 31, 2004.

         Section 9.4. EBITDAR. Parent and its Subsidiaries will maintain EBITDAR
         of not less than (a) negative $2,500,000.00 for the three (3) months
         ended March 31, 2004, (b) negative $4,500,000.00 for the six (6) months
         ended June 30, 2004, (c) positive $8,000,000.00 for the nine (9) months
         ended September 30, 2004, and (d) positive $20,000,000.00 for the
         twelve (12) months ended December 31, 2004. The requirements contained
         in clauses (a) and (b) are to the effect that EBITDAR shall not be less
         than, or (otherwise stated) more negative than, the negative amounts
         required therein.

         Section 9.5. Capital Expenditures. Parent and its Subsidiaries will not
         incur Capital Expenditures in an aggregate amount (for Parent and its
         Subsidiaries) which exceeds $8,000,000.00; provided that Agent and
         Majority Lenders shall review specific requests by Parent and its
         Subsidiaries for additional project specific capital expenditures,
         during any calendar year.

         2.16. Section Amendment to Section 10.1. Clauses (q) and (r) shall be
added to Section 10.1 of the Agreement and shall read in their entirety as
follows:

         (q) An Event of Default, as defined in the Purchase Agreement, shall
         occur.

         (r) Parent (or any Borrower or any Subsidiary) shall pay any principal,
         interest or fees on the New Subordinated Debt in cash, except for cash
         payments of principal of the New Subordinated Debt which are paid from
         (i) the proceeds of Pemex Contract EPC-64 or the Williams Contract, or
         (ii) the proceeds of the issuance of equity at any time after March 1,
         2004.

         2.17. Section Amendment to Exhibits. Exhibit "V" to the Agreement (No
Default Certificate) is amended to conform in its entirety to Annex "A" to this
Amendment.

                                      -12-

<PAGE>

                                   3. ARTICLE

                              Conditions Precedent

         (a) Section Conditions. The effectiveness of this Amendment is subject
to the receipt by Agent of the following, each in form and substance
satisfactory to Agent and Lenders:

         (i) Certificate-Each Corporate Borrower. A certificate of the Secretary
         or another officer of each Corporate Borrower acceptable to Agent
         certifying (A) resolutions of the board of directors of each Corporate
         Borrower which authorize the execution, delivery and performance by
         such Corporate Borrower of this Amendment and the other Loan Documents
         to which such Corporate Borrower is or is to be a party, and (B) the
         names of the officers of each Corporate Borrower authorized to sign
         this Amendment and each of the other Loan Documents to which such
         Corporate Borrower is or is to be a party together with specimen
         signatures of such officers.

         (ii) Certificate - LLC. A certificate of a Manager or another officer
         of LLC acceptable to Agent certifying (A) resolutions of the Members of
         LLC which authorize the execution, delivery and performance by LLC of
         this Amendment and the other Loan Documents to which LLC is or is to be
         a party, and (B) the names of the Managers or other officers of LLC
         authorized to sign this Amendment and each of the other Loan Documents
         to which LLC is or is to be a party together with specimen signatures
         of such Persons.

         (iii) Fees. An extension fee payable to Agent for the Pro-Rata benefit
         of Lenders in the amount of $150,000.00, and an Agent fee payable to
         the Agent in the amount of $15,000.00.

         (iv) Eximbank Consent. The consent of Eximbank to the release of the
         Liens on Pemex Contract EPC-64, the extension of the EXIM Guaranty
         maturity date to July 31, 2004, and the issuance of Letters of Credit
         past the EXIM Guaranty maturity date if the Letters of Credit are one
         hundred percent (100%) secured by cash.

         (v) Additional Information. Such additional documents, instruments and
         information as Lenders, Agent or Eximbank may request.

         (b) The effectiveness of this Amendment is subject to the occurrence of
the following events:

         (i) New Subordinated Debt Documents. Agent shall have reviewed the New
         Subordinated Debt and all promissory notes and other instruments and
         documents delivered in connection with the New Subordinated Debt, and
         all

                                      -13-

<PAGE>

         terms of the New Subordinated Debt and all such promissory notes and
         other instruments (including interest rate, payment terms to the effect
         that no cash payments may be made thereon, financial covenants and
         collateral) shall be acceptable to Agent.

         (ii) New Subordinated Debt Closing. The closing for the New
         Subordinated Debt shall have occurred or shall occur simultaneously
         with the closing of the transactions contemplated by this Amendment,
         and the New Subordinated Debt shall be an effective obligation of
         Parent or shall become an effective obligation of Parent simultaneously
         with the closing of the transactions contemplated by this Amendment.

         (iii) Approval of Other Debt. Agent and Majority Lenders shall have had
         the opportunity to review, and shall be satisfied with, any and all
         financial covenants to be contained in any documents evidencing or
         related to Debt of Parent or any Subsidiary (other than Debt evidenced
         by the Loan Documents or the Domestic Loan Agreement) and the documents
         executed in connection therewith.

                                   4. ARTICLE

                 Ratifications, Representations, and Warranties

         4.1. Section Ratifications. The terms and provisions set forth in this
Amendment shall modify and supersede all inconsistent terms and provisions set
forth in the Agreement and except as expressly modified and superseded by this
Amendment, the terms and provisions of the Agreement are ratified and confirmed
and shall continue in full force and effect. Borrowers and Lenders agree that
the Agreement as amended hereby shall continue to be the legal, valid and
binding obligation of such Persons enforceable against such Persons in
accordance with its terms.

         (a) Section Representations, Warranties and Agreements. Each Borrower
hereby represents and warrants to Lenders that the execution, delivery, and
performance of this Amendment and any and all other Loan Documents executed or
delivered in connection herewith have been authorized by all requisite action on
the part of such Borrower and will not violate the Organizational Documents of
such Borrower, the representations and warranties contained in the Agreement as
amended hereby, and all other Loan Documents are true and correct on and as of
the date hereof as though made on and as of the date hereof, upon the
effectiveness of this Amendment no Event of Default or Unmatured Event of
Default will exist, upon the effectiveness of this Amendment Borrowers will be
in full compliance with all covenants and agreements contained in the Agreement
as amended hereby, Borrowers are indebted to Lenders pursuant to the terms of
the Notes, as the same may have been renewed, modified, extended and rearranged,
the liens, security interests, encumbrances and assignments created and
evidenced by the Loan Documents are, respectively, valid and subsisting liens,
security interests, encumbrances and assignments and secure the Notes as the
same may have been renewed, modified or rearranged, and no Borrower has any

                                      -14-

<PAGE>

claims, credits, offsets, defenses or counterclaims arising from the Loan
Documents or any Lender's performance under the Loan Documents.

         4.2. Section Additional Representations. Each Borrower hereby
represents and warrants to Lenders that no Borrower or any Subsidiary is a party
to any loan agreement, credit agreement, purchase agreement or other agreement
in connection with which Debt was incurred which contains covenants, agreements
or representations which are more restrictive than the covenants, agreements and
representations which are contained in the Loan Agreement, as amended by this
Amendment, and the Loan Documents.

                                   5. ARTICLE

                                  Miscellaneous

         5.1. Section Survival of Representations and Warranties. All
representations and warranties made in this Amendment or any other Loan
Documents including any Loan Document furnished in connection with this
Amendment shall fully survive the execution and delivery of this Amendment and
the other Loan Documents, and no investigation by any Lender or any closing
shall affect the representations and warranties or the right of any Lender to
rely on them.

         5.2. Section Reference to Agreement. Each of the Loan Documents,
including the Agreement and any and all other agreements, documents, or
instruments now or hereafter executed and delivered pursuant to the terms hereof
or pursuant to the terms of the Agreement, as amended hereby, are hereby amended
so that any reference in such Loan Documents to the Agreement shall mean a
reference to the Agreement, as amended hereby.

         5.3. Section Expenses. As provided in the Agreement, Borrowers agree to
pay on demand all costs and expenses incurred by Agent in connection with the
preparation, negotiation and execution of this Amendment and the other documents
and instruments executed pursuant hereto and any and all amendments,
modifications and supplements thereto, including, without limitation, the costs
and fees of Agent's legal counsel, and all costs and expenses incurred by Agent
in connection with the enforcement or preservation of any rights under the
Agreement, as amended hereby, or any other Loan Document, including, without
limitation, the costs and fees of Agent's legal counsel.

         5.4. Section Severability. Any provision of this Amendment held by a
court of competent jurisdiction to be invalid or unenforceable shall not impair
or invalidate the remainder of this Amendment and the effect thereof shall be
confined to the provision so held to be invalid or unenforceable.

         5.5. SECTION APPLICABLE LAW. THIS AMENDMENT AND ALL OTHER LOAN
DOCUMENTS EXECUTED PURSUANT HERETO SHALL BE DEEMED TO

                                      -15-

<PAGE>

HAVE BEEN MADE AND TO BE PERFORMABLE IN HOUSTON, HARRIS COUNTY, TEXAS AND SHALL
BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS.

         5.6. Section Successors and Assigns. This Amendment is binding upon and
shall inure to the benefit of Agent, Issuing Bank, each Lender and each Borrower
and their respective successors and assigns, except that no Borrower may assign
or transfer any of its rights or obligations hereunder without the prior written
consent of Agent.

         5.7. Section Counterparts. This Amendment may be executed in one or
more counterparts, each of which when so executed shall be deemed to be an
original, but all of which when taken together shall constitute one and the same
instrument.

         5.8. Section Effect of Waiver. No consent or waiver, express or
implied, by Agent, Issuing Bank or any Lender to or for any breach of or
deviation from any covenant, condition or duty by any Borrower shall be deemed a
consent or waiver to or of any other breach of the same or any other covenant,
condition or duty.

         5.9. Section Headings. The headings, captions, and arrangements used in
this Amendment are for convenience only and shall not affect the interpretation
of this Amendment.

         5.10. SECTION ECH CONFIRMATION OF GUARANTY. BY ITS EXECUTION OF THIS
AMENDMENT, ECH (A) RATIFIES AND CONFIRMS THE GUARANTY AGREEMENT DATED AS OF MAY
30, 2002, EXECUTED BY ECH IN FAVOR OF AGENT (THE "ECH US GUARANTY"), AND (B)
AGREES THAT, NOTWITHSTANDING THE TERMINATION OF THE GUARANTY EXECUTED BY ECH
UNDER MEXICAN LAW, (I) THE ECH US GUARANTY HAS NOT BEEN RESCINDED, REVOKED OR
TERMINATED, AND (II) THE ECH US GUARANTY REMAINS IN FULL FORCE AND EFFECT.

         5.11. SECTION WAIVER OF FAILURE TO COMPLY WITH FINANCIAL COVENANTS. BY
THEIR EXECUTION OF THIS AMENDMENT AGENT AND LENDERS WAIVE COMPLIANCE BY
BORROWERS AND PARENT WITH THE PROVISIONS OF SECTIONS 9.1, 9.2, 9.3, 9.4, 9.5,
9.6 AND 9.7 FOR THE FISCAL YEAR ENDED DECEMBER 31, 2003, AND AGENT AND LENDERS
WAIVE ANY AND ALL EVENTS OF DEFAULT WHICH MAY ARISE UNDER THE AGREEMENT AS A
RESULT OF BORROWERS' AND PARENT'S FAILURE TO COMPLY WITH SECTIONS 9.1, 9.2, 9.3,
9.4, 9.5, 9.6 AND 9.7 OF THE AGREEMENT FOR THE FISCAL YEAR ENDED DECEMBER 31,
2003. THE WAIVER CONTAINED IN THIS SECTION 6.10 IS EFFECTIVE AS OF DECEMBER 31,
2003, BUT DOES NOT CONSTITUTE A WAIVER OF ANY OTHER PROVISION OF, OR REQUIREMENT
OF THE AGREEMENT NOR DOES IT CONSTITUTE A WAIVER OF COMPLIANCE WITH SECTIONS
9.1, 9.2, 9.3, 9.4, 9.5, 9.6 AND 9.7 AT ANY TIME AFTER DECEMBER 31, 2003. BY
THEIR EXECUTION OF THIS AMENDMENT, AGENT AND LENDERS ALSO WAIVE ANY EVENT OF
DEFAULT WHICH MAY HAVE ARISEN AS A

                                      -16-

<PAGE>

RESULT OF THE EXECUTION, DELIVERY AND PERFORMANCE BY VESSELS OF THAT CERTAIN
ASSIGNMENT OF CHARTER DATED JUNE 29, 2001 EXECUTED BY VESSELS IN FAVOR OF
GENERAL ELECTRIC CAPITAL CORPORATION AND THAT CERTAIN ASSIGNMENT OF CHARTER HIRE
DATED JUNE 4, 2003 EXECUTED BY VESSELS IN FAVOR OF ELLIOTT ASSOCIATES, L.P.

         5.12. SECTION ENTIRE AGREEMENT. THIS AMENDMENT AND ALL OTHER
INSTRUMENTS, DOCUMENTS, AND AGREEMENTS EXECUTED AND DELIVERED IN CONNECTION WITH
THIS AMENDMENT EMBODY THE FINAL, ENTIRE AGREEMENT AMONG THE PARTIES HERETO WITH
RESPECT TO THE SUBJECT MATTER HEREOF AND THEREOF AND SUPERSEDE ANY AND ALL PRIOR
COMMITMENTS, AGREEMENTS, REPRESENTATIONS AND UNDERSTANDINGS, WHETHER WRITTEN OR
ORAL, RELATING TO THIS AMENDMENT AND THE OTHER INSTRUMENTS, DOCUMENTS AND
AGREEMENTS EXECUTED AND DELIVERED IN CONNECTION WITH THIS AMENDMENT, AND MAY NOT
BE CONTRADICTED OR VARIED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT
ORAL AGREEMENTS OR DISCUSSIONS OF THE PARTIES HERETO. THERE ARE NO ORAL
AGREEMENTS AMONG THE PARTIES HERETO.

           [THE REMAINDER OF THIS PAGE WAS INTENTIONALLY LEFT BLANK.]

                                      -17-

<PAGE>

         Executed as of the date first written above.

                                   BORROWERS:

                                   HORIZON OFFSHORE CONTRACTORS, INC.

                                   By:
                                       ----------------------------------------
                                       David W. Sharp
                                       Executive Vice President

                                   HORIZEN, L.L.C.

                                   By:
                                       ----------------------------------------
                                       David W. Sharp
                                       Executive Vice President

                                   HORIZON SUBSEA SERVICES, INC.

                                   By:
                                       ----------------------------------------
                                       David W. Sharp
                                       Executive Vice President

                                   HORIZON VESSELS, INC.

                                   By:
                                       ----------------------------------------
                                       David W. Sharp
                                       Executive Vice President

                                      -18-

<PAGE>

                                     AGENT:

                                     SOUTHWEST BANK OF TEXAS, N.A., as Agent

                                   By:
                                       ----------------------------------------
                                       Valerie Gibbs
                                       Senior Vice President

                                     LENDERS:

                                     SOUTHWEST BANK OF TEXAS, N.A.

                                   By:
                                       ----------------------------------------
                                       Valerie Gibbs
                                       Senior Vice President

                                     DRESDNER BANK AG, NEW YORK AND
                                     GRAND CAYMAN BRANCHES

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

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

                                     BANK OF SCOTLAND

                                   By:
                                       ----------------------------------------
                                       Joseph Fratus
                                       First Vice President

                                      -19-

<PAGE>

                                   HIBERNIA NATIONAL BANK

                                   By:
                                       ----------------------------------------
                                       Tammy Boyd
                                       Vice President

         Each of the undersigned Guarantors (a) hereby consents and agrees to
this Amendment, (b) agrees that all references to the Loan Agreement contained
in the Guaranty Agreement executed by such Person shall constitute references to
such Loan Agreement as amended by this Amendment and as the same may be further
amended, and (c) agrees that the Guaranty Agreement executed by such Person
shall remain in full force and effect and shall continue to be the legal, valid
and binding obligations of such Guarantor, enforceable against such Guarantor in
accordance with its terms and shall evidence such Guarantor's guaranty of the
Notes as renewed, modified and extended from time to time.

                                   HORIZON OFFSHORE, INC.

                                   By:
                                       ----------------------------------------
                                       David W. Sharp
                                       Executive Vice President

                                   HORIZON OFFSHORE CONTRACTORS, LTD.

                                   By:
                                       ----------------------------------------
                                       David W. Sharp
                                       Director

                                   ECH OFFSHORE, S. DE R.L. DE C.V.

                                   By:
                                       ----------------------------------------
                                       Bill J. Lam
                                       Sole Manager

                                      -20-

<PAGE>

                                   Other Guarantors

                                   PROGRESSIVE PIPELINE CONTRACTORS, INC.
                                   AFFILIATED MARINE CONTRACTORS, INC.
                                   TEXAS OFFSHORE CONTRACTORS CORP.
                                   FLEET PIPELINE SERVICES, INC.
                                   GULF OFFSHORE CONSTRUCTION, INC.
                                   BAYOU MARINE CONTRACTORS, INC.

                                   By:
                                       ----------------------------------------
                                       David W. Sharp
                                       Executive Vice President

                                   HORIZON GROUP L.D.C.

                                   By:
                                       ----------------------------------------
                                       David W. Sharp
                                       Director

                                   HORIZON OFFSHORE NIGERIA LTD.

                                   By:
                                       ----------------------------------------
                                       David W. Sharp
                                       Director

                                   TIBURON INGENIERIA Y CONSTRUCCION, S. DE
                                   R.L. DE C.V.

                                   By:
                                       ----------------------------------------
                                       David W. Sharp
                                       Secretary

                                      -21-

<PAGE>

                                   HORIZON VESSELS INTERNATIONAL LTD.

                                   By:
                                       ----------------------------------------
                                       David W. Sharp
                                       Vice President

                                   PT HORIZON INDONESIA

                                   By:
                                       ----------------------------------------
                                       David W. Sharp
                                       Commissioner

                                   HORIZON OFFSHORE INTERNATIONAL LTD.

                                   By:
                                       ----------------------------------------
                                       David W. Sharp
                                       Executive Vice President

                                   HORIZON MARINE CONSTRUCTION LTD.

                                    By:
                                       ----------------------------------------
                                       David W. Sharp
                                       Executive Vice President

                                      -22-

<PAGE>

                                    HORIZON OFFSHORE PTE. LTD.

                                   By:
                                       ----------------------------------------
                                       David W. Sharp
                                       Director

                                    HORIZON OFFSHORE CONTRACTORS
                                    (MAURITIUS) LTD.

                                   By:
                                       ----------------------------------------
                                       David W. Sharp
                                       Director

                                    HORIZON MARINE CONSTRUCTION
                                    (MAURITIUS) LTD.

                                   By:
                                       ----------------------------------------
                                       David W. Sharp
                                       Director

                                    HORIZON C-BAY COSTA AFUERA, S. DE
                                    R.L. DE C.V.

                                   By:
                                       ----------------------------------------
                                       David W. Sharp
                                       Member

                                    HOC OFFSHORE, S. DE R.L. DE C.V.

                                   By:
                                       ----------------------------------------
                                       David W. Sharp
                                       Director

                                      -23-

<PAGE>

                                   PT ARMANDI PRANAUPAYA

                                   By:
                                       ----------------------------------------
                                       David W. Sharp
                                       Director

                                   HORIZON MARINE CONTRACTORS
                                   (MALAYSIA) SDN BHD

                                   By:
                                       ----------------------------------------
                                       David W. Sharp
                                       Director

                                   HORIZON OFFSHORE SERVICES, LTD.

                                   By:
                                       ----------------------------------------
                                       David W. Sharp
                                       Executive Vice President and
                                       Chief Financial Officer

                                   MARINE LEASING (LABUAN) PTE LTD

                                   By:
                                       ----------------------------------------
                                       David W. Sharp
                                       Executive Vice President and
                                       Chief Financial Officer

                                      -24-

<PAGE>

                                 LIST OF ANNEXES

         Annex                                             Document

             A                                        No Default Certificate

                                      -25-<PAGE>

                                                                   Exhibit 10.47

                        FIRST AMENDMENT TO LOAN AGREEMENT

     This FIRST AMENDMENT TO LOAN AGREEMENT (the "First Amendment"), dated as of
the 10th day of March, 2004, is made by and between HORIZON VESSELS
INTERNATIONAL, LTD., ("Borrower"), and BOEING CAPITAL CORPORATION ("Lender").

                                   WITNESSETH:

     WHEREAS, Borrower and Lender entered into that certain Loan Agreement dated
as of June 30, 2003 (as the same has been or may hereafter be amended,
supplemented or otherwise modified, the "Loan Agreement"), pursuant to which
Borrower agreed to borrow, and the Lender agreed to lend, upon and subject to
the terms thereof, up to the aggregate principal amount of $35,000,000 (the
"Loan");

     WHEREAS, the Loan was guaranteed by Horizon Offshore, Inc. (the parent
company of Borrower) (the "Parent") and Horizon Vessels, Inc.;

     WHEREAS, the Parent is entering into a certain Purchase Agreement with
Elliott Associates, L.P., as agent, pursuant to which the Parent will issue
senior notes in an aggregate principal amount of not less than $60,000,000 (the
"Note Issuance"), the terms of which Note Issuance have been provided to Lender;
and

     WHEREAS, the parties now desire to modify certain of the terms and
conditions contained in the Loan Agreement.

     NOW, THEREFORE, in consideration of the foregoing recitals and the mutual
covenants and premises contained herein, together with other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties hereto have agreed and do hereby agree as follows:

     1. Capitalized terms used in this First Amendment (including the recitals
hereof) shall have the meanings assigned to them in the Loan Agreement, as
amended by this First Amendment.

     2. Lender hereby consents to the Note Issuance subject to the terms of this
First Amendment. Further, notwithstanding Section 3.2(m) of the Loan Agreement,
Lender hereby consents to the payoff, in total, of the existing $15,000,000 loan
to Horizon Vessels, Inc. by Elliott Associates, L.P. with the proceeds of the
Note Issuance.

     3. The Loan Agreement is hereby amended by adding the following definitions
to the Definitions section thereof in the correct alphabetical order; provided
that to the extent any of the following terms are already defined in the Loan
Agreement, then the following definitions amend and restate such terms in their
entirety:

     "Cash Interest" means the cash portion of Interest Expense.

                                        1
<PAGE>
     "Current Assets" means all amounts which, in conformity with GAAP, would be
included as current assets on a consolidated balance sheet of the Parent and its
subsidiaries.

     "Current Liabilities" means all amounts which, in conformity with GAAP,
would be included as current liabilities on a consolidated balance sheet of the
Parent and its subsidiaries, excluding revolving loan facilities and any balloon
payment due in the next twelve (12) months.

     "Current Maturities of Long Term Debt" means for the Parent and its
subsidiaries, on a consolidated basis, the principal amount due and payable
during the next succeeding twelve month period on Total Funded Debt of the
Parent and its subsidiaries which has a final maturity more than twelve months
from the date of calculation, excluding all revolving loan facilities and any
balloon payment due in the next twelve (12) months.

     "Current Ratio" means, at any particular date, (a) Current Assets as of
such date divided by (b) Current Liabilities as of such date.

     "EBITDA" means for the Parent and its subsidiaries, on a consolidated
basis, for any period, the sum of (a) Net Income before gains and losses on
sales of assets (to the extent such gains and losses are included in earnings,
plus (b) Tax Expense, plus (c) depreciation and amortization, plus (d) Interest
Expense.

     "EBITDAR" means for the Parent and its subsidiaries, on a consolidated
basis, for any period, the sum of (a) Net Income before gains and losses on
sales of assets (to the extent such gains and losses are included in earnings,
plus (b) Tax Expense, plus (c) depreciation and amortization, plus (d) Interest
Expense, plus (e) restructuring charges, including costs of professional
advisors to the Parent and its subsidiaries (including costs of professional
advisors to the Parent's lenders and other creditors which are required to be
paid by the Parent or its subsidiaries) not to exceed $1,600,000 for the fiscal
year ended December 31, 2004.

     "Fixed Charge Coverage Ratio" means for the Parent and its subsidiaries, on
a consolidated basis, (a) as of September 30, 2004, (i) EBITDA for the quarter
ended as of September 30, 2004, divided by (ii) the sum of (A) Current
Maturities of Long Term Debt as of September 30, 2004 divided by four, plus (B)
Interest Expense for the quarter ended September 30, 2004, plus (C) Tax Expense
for the quarter ended as of September 30, 2004, (b) as of December 31, 2004, (i)
EBITDA for the quarters ended as of September 30, 2004 and December 31, 2004,
divided by (ii) the sum of (A) Current Maturities of Long Term Debt as of
December 31, 2004 divided by two, plus (B) Interest Expense for the quarters
ended as of September 30, 2004 and December 31, 2004, plus (C) Tax Expense for
the quarters ended as of September 30, 2004 and December 31, 2004, (c) as of
March 31, 2005, (i) EBITDA for the quarters ended September 30, 2004, December
31, 2004, and March 31, 2005 divided by (ii) the sum of (A) Current Maturities
of Long Term Debt as of March 31, 2005 times .75 (seventy-five percent), plus
(B) Cash Interest for the quarters ended September 30, 2004, December 31, 2004,
and March 31, 2005, plus (C) Tax Expense for the quarters ended September 30,
2004 , December 31, 2004, and March 31, 2005, and (d) for all quarters ending
thereafter, (i) EBITDA for the four (4) quarters then ended divided by (ii) the
sum of (A) Current Maturities of Long Term Debt as of the quarter then ended,
plus (B) Cash Interest for the four (4) quarters then ended, plus (C) Tax
Expense for the four (4) quarters then ended.

                                        2
<PAGE>
     "Interest Expense" means, for any period, the consolidated interest expense
of the Parent and its subsidiaries for such period, determined in accordance
with GAAP applied consistently.

     "Net Income" means, for any period, with respect to the Parent and its
subsidiaries, the consolidated net income (or loss) of the Parent and its
subsidiaries for such period, determined in accordance with GAAP applied
consistently (excluding any extraordinary items during such period).

     "Tangible Net Worth" means, at any particular date, all amounts which, in
conformity with GAAP, would be included as stockholder's equity on a
consolidated balance sheet of the Parent and its subsidiaries; provided,
however, there shall be excluded therefrom (a) any amount at which shares of
capital stock of the Parent or any subsidiary appear as an asset on the Parent's
or such subsidiary's balance sheet, (b) goodwill, including any amount, however
designated, that represent the excess of purchase price paid for assets or stock
over the value assigned thereto, (c) patents, trademarks, trade names, and
copyrights, (d) deferred expenses, (e) loans and advances to any stockholder,
director, officer, or employee of the Parent or any subsidiary or any affiliate,
(f) all other assets which are properly classified as intangible assets, and (g)
paid-in-kind interest on the Note Issuance.

     "Tax Expense" means, for any period, on a consolidated basis, the sum of
all tax expense of the Parent and its subsidiaries for such period determined in
accordance with GAAP applied consistently.

     "Total Funded Debt" means, for the Parent and its subsidiaries, on a
consolidated basis, the sum of (a) all indebtedness for borrowed money, whether
or not evidenced by notes, bonds, debentures, notes or similar instruments, (b)
all capital lease obligations, (c) all obligations to pay the deferred purchase
price of property or services (but excluding trade accounts payable or trade
notes in the ordinary course of business that are not past due by more than 90
days), (d) all indebtedness secured by a Lien on the property of the Parent or
any of its subsidiaries, and (f) all letter of credit liabilities.

     4. As a condition precedent to the effectiveness of this First Amendment,
Borrower will provide to Lender a report, in form satisfactory to Lender, on the
current utilization and backlog of work for the Vessel.

     5. The Parent agrees that prior to the third anniversary of the Note
Issuance, all interest and principal payments on the notes issued pursuant
thereto shall be made solely with funds received by the Parent or its
subsidiaries from (a) the certain Offshore Construction Contract dated as of
October 1, 2002, by and between Williams Oil Gathering, L.L.C. ("Williams") and
Horizon Offshore Contractors, Inc., (b) Williams as a result of the lawsuit
entitled Horizon Offshore Contractors, Inc. v. Williams Oil Gathering, L.L.C. et
al., bearing case number 2003-51819 on the docket of the 295th Judicial
District, Harris County, Texas, (c) that certain contract No. PEP-o-AD-317/00
(also known as EPC-64) between Pemex-Exporacion y Produccion (a subsidiary of
Petroleos Mexicanos) and ECH Offshore, S. de. R.L. de C.V., (d) any equity
offering of the Parent or any of its subsidiaries, (e) the sale, transfer,
disposition or use of the U.S. flag vessel PECOS HORIZON, official No. 528068
owned by Horizon Vessels, Inc., and (f) the sale, transfer, disposition or use
of that certain real and personal property owned

                                        3
<PAGE>
by Horizon Vessels, Inc. located in Port Arthur, Jefferson County, Texas. Any
payments made by the Parent with respect to the Note Issuance in compliance with
the foregoing shall not be subject to any penalty under the Loan Agreement, as
amended hereby.

     6. By the first business day of each year during the term of the Loan
Agreement, Borrower shall, at its cost and expense, provide Lender with (a)
report, in form satisfactory to Lender, on the current utilization and backlog
of work for the Vessel and (b) an appraisal of the Vessel by an appraiser and in
form satisfactory to Lender. Such appraisal shall contain the then current
Orderly Liquidation Value and Fair Market Value of the Vessel, and in the event
the Orderly Liquidation Value of the Vessel as determined by such appraisal is
less than the outstanding principal amount of the Loan, Borrower shall be
required to prepay the Loan in accordance with the prepayment method contained
in Section 1.5(a)(iii) of the Loan Agreement.

     7. The Parent will not permit its Current Ratio as of the last day of any
fiscal quarter to be less than: (a) .90 to 1.00 for the fiscal quarters ending
March 31, 2004 and June 30, 2004; (b) 1.05 to 1.00 for the fiscal quarter ending
September 30, 2004; (c) 1.10 to 1.00 for the fiscal quarter ending December 31,
2004; and (d) 1.10 to 1 for the period ending March 31, 2005 and each period
thereafter.

     8. The Parent and its subsidiaries will at all times maintain Tangible Net
Worth in an amount not less than the sum of (a) $110,000,000, plus (b)
seventy-five percent (75%) of Net Income for each fiscal quarter of the Parent
and its subsidiaries which has been completed as of the date of calculation,
commencing with the fiscal quarter ending March 31, 2004, provided, however,
that in the event that Net Income of the Parent and its subsidiaries is not
greater than zero for any fiscal quarter, an amount equal to zero shall be added
to the calculation of Tangible Net Worth for such fiscal quarter, plus (c)
ninety percent (90%) of the net proceeds of any common stock or other equity
issued by the Parent or any of its subsidiaries after December 31, 2003. The
calculation will exclude the cumulative impact of the paid in kind interest
related to the Note Issuance from both the covenant hurdle and the Company's
calculated Tangible Net Worth. Tangible Net Worth shall be calculated and tested
quarterly as of the last day of each fiscal quarter of the Parent commencing
with the fiscal quarter ending March 31, 2004. Any audit adjustment for the
fiscal year ended December 31, 2003 that results in an adjustment to the equity
accounts in an amount in excess of $53,416,000.00 will adjust the minimum
Tangible Net Worth requirement on a dollar for dollar basis.

     9. The Parent will not permit its Fixed Charge Coverage Ratio as of the
last day of any fiscal quarter to be less than: (a) not applicable for the
fiscal quarters ending March 31, 2004 and June 30, 2004; (b) 1.50 to 1.00 for
the fiscal quarter ending September 30, 2004; (c) 1.40 to 1.00 for the fiscal
quarter ending December 31, 2004; (d) 1.33 to 1 for the nine-month period ending
March 31, 2005; and (e) 1.33 to 1 for each period thereafter on a rolling four
quarter basis.

     10. The Parent will maintain EBITDAR of not less than: (a) negative
$2,500,000 for the three months ending March 31, 2004; (b) negative $4,500,000
for six months ending June 30, 2004; (c) positive $8,000,000 for the nine months
ending September 30, 2004; and (d) positive $20,000,000 for the twelve months
ending December 31, 2004. For the three-month period ending March 31, 2005, the
Parent will maintain a positive EBITDAR. The requirements

                                        4
<PAGE>
contained in clauses (a) and (b) are to the effect that EBITDAR shall not be
less than, or (otherwise stated) more negative than, the negative amounts
required therein.

     11. The Borrower and the Guarantors represent and warrant that the
foregoing financial covenants are identical to the financial covenants being put
in place with the Borrower's and Guarantors' existing bank loan facilities.

     12. The Parent represents and warrants that the Note Issuance will be
issued under substantially similar terms as those presented to the Lender in the
summary of terms and conditions of subordinated debt previously provided to the
Lender.

     13. The Borrower and the Guarantors hereby covenant and agree that if the
financial covenants of the existing Southwest Bank of Texas loan facilities are
changed to be more restrictive than the financial covenants set forth herein,
then (i) the Borrower and the Guarantors will promptly notify the Lender, (ii)
the financial covenants set forth herein will automatically be modified to
conform with such more restrictive covenants and (iii) the Borrower and the
Guarantors will execute such documents and instruments as may be reasonably
required by the Lender to evidence such modification of the financial covenants
set forth herein. Upon either the early termination or maturity of the
Guarantors existing Southwest Bank of Texas loan facilities, the Borrower and
the Guarantors hereby covenant and agree that if the financial covenants of the
existing CIT loan facilities (or any successor loan facilities) have been or are
thereafter changed to be more restrictive than the financial covenants set forth
herein, then (i) the Borrower and the Guarantors will promptly notify the
Lender, (ii) the financial covenants set forth herein will automatically be
modified to conform with such more restrictive covenants and (iii) the Borrower
and the Guarantors will execute such documents and instruments as may be
reasonably required by the Lender to evidence such modification of the financial
covenants set forth herein.

     14. It is further understood and agreed by and among the parties hereto
that all terms and conditions of the Loan Agreement, except as herein modified,
shall remain in full force and effect.

     15. This First Amendment may be executed in multiple counterparts, each of
which shall be deemed an original, but all of which together shall constitute
one and the same instrument.

                  [Remainder of page intentionally left blank.]

                                        5
<PAGE>
     IN WITNESS WHEREOF, the parties hereto have caused this Loan Amendment to
be duly executed as of the day and year first above written.

BORROWER:                                      LENDER:

HORIZON VESSELS INTERNATIONAL, LTD.            BOEING CAPITAL CORPORATION

BY:          /s/  David W. Sharp               BY:
-----------------------------------------         ------------------------------
NAME:           DAVID W. SHARP                 NAME:
TITLE: EXECUTIVE VICE PRESIDENT AND CHIEF      TITLE:
              FINANCIAL OFFICER

GUARANTORS:

HORIZON OFFSHORE, INC.

BY:          /s/  David W. Sharp
-----------------------------------------
NAME:           DAVID W. SHARP
TITLE: EXECUTIVE VICE PRESIDENT AND CHIEF
              FINANCIAL OFFICER

HORIZON VESSELS, INC.

BY:          /s/  David W. Sharp
-----------------------------------------
NAME:           DAVID W. SHARP
TITLE: EXECUTIVE VICE PRESIDENT AND CHIEF
              FINANCIAL OFFICER

                                        6

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00062-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00062-of-00352.parquet"}]]