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      Form 8K 12.15.06
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br>&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 491.1pt">&#160;</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman"><strong>SECURITIES
        AND EXCHANGE COMMISSION</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">Washington,
        D.C. 20549</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">____________________________________________________</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman"><strong>FORM
        8-K</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">CURRENT
        REPORT</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">PURSUANT
        TO SECTION 13 OR 15 (D)</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">of
        the</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">SECURITIES
        EXCHANGE ACT OF 1934</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">Date
        of
        Report (Date of Earliest Event Reported) November 14, 2006</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">____________________________________________________</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 18pt; FONT-FAMILY: Times New Roman"><strong>DEEP
        DOWN INC.</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">(formerly
        Mediquip Holdings, Inc.)</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">(Exact
        name of registrant as specified in its charter)</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">Nevada</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">(formerly
        Delaware)</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">(State
        or
        other jurisdiction of incorporation or organization)</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 324pt; TEXT-INDENT: -324pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">75-2263732</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 324pt; TEXT-INDENT: -324pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">(IRS
        Employer Identification Number)</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">15473
        East Freeway</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">Channelview,
        Texas 77530</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">(Address
        of principal executive offices)</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">Ronald
        E.
        Smith, President</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">Deep
        Down, Inc.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">15473
        East Freeway</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">Channelview,
        Texas 77530</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">(Name
        and
        address of agent for service)</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">(281)
        862-2201</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">(Telephone
        number, including area code of agent for service)</font><br></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman"><strong>SECTION
        8 - OTHER EVENTS</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman"><strong>ITEM
        8.01 OTHER EVENTS.</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">Effective
        December 14, 2006 the Company consummated an Agreement and Plan of
        Reorganization with Deep Down, Inc., (&#8220;Deep Down&#8221;) a Delaware corporation, that
        provides for the acquisition of Deep Down by MediQuip Holdings, Inc.
        (&#8220;Mediquip&#8221;). Deep Down was a privately-held company that immediately prior to
        consummation of the Agreement with MediQuip combined with SubSea Acquisition
        Corporation and Strategic Offshore Services Corporation. Deep Down specializes
        in the provision of installation management, engineering services, support
        services and storage management services for the subsea controls, umbilicals
        &amp; pipeline industries offshore. Deep Down is an umbilical and flexible pipe
        installation engineering and installation management company. They also
        fabricate component parts for subsea distribution systems and assemblies
        that
        specialize in the development of offshore subsea fields and tie backs. These
        items include umbilicals, flowlines, distribution systems, pipeline
        terminations, controls, winches, and launch and retrieval systems, among
        others.
        They provide these services from the initial field conception phase, thru
        manufacturing, site integration testing, installation, topsides connections,
        and
        the final commissioning of a project. Their products and services serve the
        offshore industry and are used in deep-water exploration and production of
        oil
        and gas. As a result of the acquisition, the shareholders of Deep Down will
        own
        a majority of the voting stock of MediQuip, which changed its name to Deep
        Down,
        Inc. The acquisition did not require the approval of shareholders of
        MediQuip.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">Under
        the
        Agreement and Plan of Reorganization, officers and directors of MediQuip
        resigned their posts. Robert E. Chamberlain, Jr. was appointed Chairman and
        director; Ronald E. Smith was appointed President, Chief Executive Officer
        and
        Director; John C. Siedhoff was appointed Chief Financial Officer, Treasurer;
        and
        director; Daniel L. Ritz, Jr. was appointed director; and Mary L. Budrunas
        was
        appointed Secretary. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">Because
        of the change in ownership and the composition of the board upon completion
        of
        the acquisition, there was a change in control of MediQuip.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman"><strong>ITEM
        5. CORPORATE GOVERNANCE AND MANAGEMENT</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman"><strong>ITEM
        5.02 DEPARTURE OF DIRECTORS OR PRINCIPAL OFFICERS; ELECTION OF DIRECTORS;
        APPOINTMENT OF PRINCIPAL OFFICERS</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">On
        the
        14th day of December, 2006 the Board of Directors of Mediquip Holdings, Inc.,
        a
        Nevada corporation (the &#8220;Corporation&#8221;) resolved to elect new Directors and
        Officers of the Corporation. Effective the 15th day of December, 2006 Ronald
        E.
        Smith, Robert E. Chamberlain, Jr., John Siedhoff, and Daniel L. Ritz, Jr.
        will
        serve as the new Directors to fill the unexpired term of the former Directors,
        David Francis and Steve O&#8217;Toole, until their respective successor is elected.
        Effective the 15th The Corporation elected Ronald E. Smith to serve as President
        and Chief Executive Officer, John Siedhoff to serve as Chief Financial Officer
        and Treasurer, and Mary L. Budrunas to serve as Secretary of the
        Corporation.</font><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman"><strong>SECTION
        3 - SECURITIES AND TRADING MARKETS</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman"><strong>ITEM
        3.02 - UNREGISTERED SALES OF EQUITY SECURITIES</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">In
        connection with the Agreement and Plan of Reorganization described in the
        preceding footnote, the company issued the following equity securities to
        accredited investors in reliance on the exemption from registration contained
        in
        Section 4(2) and 4(6) of the Securities Act of 1933 as well as Rule 506 of
        Regulation D promulgated thereunder:</font></div>
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      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">1.</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt">&#160;&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">75,000,000
        shares of Common Stock</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">2.&#160;&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">5,000
        shares of Series D Redeemable Convertible Preferred Stock</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">3.&#160;&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">5,000
        shares of Series E Redeemable Exchangeable Preferred Stock</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">4.&#160;&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">3,000
        shares of Series F Redeemable Convertible Preferred Stock</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">5.&#160;&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">1,000
        shares of Series G Redeemable Exchangeable Preferred Stock</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman"><strong>Exhibits</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">Exhibit
        A
        - Agreement and Plan of Reorganization with Deep among MediQuip Holdings,
        Inc.,
        Down, Inc., a Delaware corporation, and the majority shareholders of Deep
        Down,
        Inc. dated November 22, 2006 (without Exhibits)</font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman"><strong>SIGNATURE</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">Pursuant
        to the requirements of the Securities Exchange Act of 1934, the registrant
        has
        duly caused this report to be signed on its behalf by the undersigned hereunto
        duly authorized.</font></div>
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
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            </tr>
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman"><strong>MEDIQUIP
                  HOLDINGS, INC.</strong></font></div>
              </td>
              <td align="left" valign="top" width="25%">&#160;</td>
            </tr>
            <tr bgcolor="#ffffff">
              <td align="left" valign="middle" width="31%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">&#160;&#160;</font></div>
              </td>
              <td align="left" valign="middle" width="4%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">&#160;&#160;</font></div>
              </td>
              <td align="left" valign="middle" width="25%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">&#160;&#160;</font></div>
              </td>
              <td align="left" valign="top" width="25%">&#160;</td>
            </tr>
            <tr bgcolor="#ffffff">
              <td align="left" valign="middle" width="31%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">Date:&#160;December
                  14, 2006</font></div>
              </td>
              <td align="left" valign="middle" width="4%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">By:</font></div>
              </td>
              <td align="left" valign="middle" width="25%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">/s/&#160;David
                  Francis</font></div>
              </td>
              <td align="left" valign="top" width="25%">&#160;</td>
            </tr>
            <tr bgcolor="#ffffff">
              <td align="left" valign="middle" width="31%">&#160;</td>
              <td align="left" valign="middle" width="4%">&#160;</td>
              <td align="left" valign="middle" width="25%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">David
                  Francis, President</font></div>
              </td>
              <td align="left" valign="top" width="25%">&#160;</td>
            </tr>

        </table>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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          </div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
          </div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
          </div>
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        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right">
          </div>
        </div>
      </div><br>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman"><strong>EXHIBIT
        A</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">AGREEMENT
        AND PLAN OF REORGANIZATION AMONG MEDIQUIP HOLDINGS, INC.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">DEEP
        DOWN
        INC., AND THE MAJORITY SHAREHOLDERS OF DEEP DOWN INC.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">
        <div>
          <hr style="COLOR: black" align="left" noshade size="1" width="100%">
        </div>&#160;<font id="TAB2" style="COLOR: black; LETTER-SPACING: 491.1pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">&#160;<br></font>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br>&#160;</div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>AGREEMENT
            AND PLAN OF REORGANIZATION</strong></font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>among</strong></font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>MEDIQUIP
            HOLDINGS, INC.</strong></font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>DEEP
            DOWN, INC.</strong></font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>and</strong></font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>THE
            MAJORITY SHAREHOLDERS OF DEEP DOWN, INC.</strong></font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Dated
            as of November 22, 2006</strong></font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div><br>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>TABLE
            OF CONTENTS</strong></font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: -9pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>PAGE</strong></font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>ARTICLE
            I THE EXCHANGE</strong></font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            1.01. The Exchange</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            1.02. Effective Time; Closing</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            1.03. Effect of the Exchange</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            1.04. Directors and Officers</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>ARTICLE
            II DELIVERY OF SECURITIES; EXCHANGE OF CERTIFICATES</strong></font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            2.01. Delivery of Securities</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            2.02. Exchange of Certificates</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            2.03. Stock Transfer Books</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>ARTICLE
            III REPRESENTATIONS AND WARRANTIES OF THE COMPANY</strong></font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            3.01. Organization and Qualification; Subsidiaries</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            3.02. Certificate of Incorporation and By-Laws</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            3.03. Capitalization</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            3.04. Authority Relative to This Agreement</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            3.05. No Conflict; Required Filings and Consents</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            3.06. Permits; Compliance; Deep Down Products; Regulation</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            3.07. Absence of Certain Changes or Events</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            3.08. Absence of Litigation</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            3.09. Employee Benefit Plans; Labor Matters</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            3.10. Contracts</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            3.11. Environmental Matters</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            3.12. Trademarks, Patents and Copyrights</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            3.13. Taxes</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            3.14. State Takeover Statutes</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            3.15. Brokers</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>ARTICLE
            IV REPRESENTATIONS AND WARRANTIES OF MEDIQUIP</strong></font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            4.01. Organization and Qualification; Subsidiaries</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            4.02. Certificate of Incorporation and By-Laws</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            4.03. Capitalization</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            4.04. Authority Relative to This Agreement</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            4.05. No Conflict; Required Filings and Consents</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            4.06. Permits; Compliance</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            4.07. Stock Option Plan</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            4.08. Absence of Certain Changes or Events</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            4.09. Absence of Litigation</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            4.10. Employee Benefit Plans</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            4.11. Contracts</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            4.12. Environmental Matters</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            4.13. Trademarks, Patents and Copyrights</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            4.14. Taxes</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            4.15. Accounting and Tax Matters</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            4.16. Brokers</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>ARTICLE
            V CONDUCT OF BUSINESSES PENDING THE REORGANIZATION</strong></font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            5.01. Conduct of Business by Deep Down Pending the Exchange</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            5.02. Conduct of Business by MediQuip Pending the Exchange</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>ARTICLE
            VI ADDITIONAL AGREEMENTS</strong></font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            6.01. Filing of Form 8-K</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            6.02. Preparation of Disclosure Statement</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            6.03. Access to Information; Confidentiality</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            6.04. Obligations of MediQuip</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            6.05. Obligations of Securityholder</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            6.06. Application to Standard &amp; Poor&#8217;s</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            6.06. Filing of Amended Form 8-K</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            6.07. Further Action; Consents; Filings</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            6.08. Reorganization of Deep Down</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            6.09. Agreement to Deliver Shares</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            6.10. Plan of Exchange</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            6.11. Board of Directors of MediQuip</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            6.12. Public Announcements</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            6.13. Conveyance Taxes</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>ARTICLE
            VII CONDITIONS TO THE REORGANIZATION</strong></font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            7.01. Conditions to the Obligations of Each Party</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            7.02. Conditions to the Obligations of MediQuip</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            7.03. Conditions to the Obligations of Deep Down</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>ARTICLE
            VIII TERMINATION, AMENDMENT AND WAIVER</strong></font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            8.01. Termination</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            8.02. Effect of Termination</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            8.03. Amendment</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            8.04. Waiver</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            8.05. Expenses</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>ARTICLE
            IX</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 63pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>GENERAL
            PROVISIONS</strong></font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            9.01. Non-Survival of Representations, Warranties and Agreements</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            9.02. Notices</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            9.03. Certain Definitions</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            9.04. Severability</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            9.05. Assignment; Binding Effect; Benefit</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            9.06. Incorporation of Exhibits</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            9.07. Specific Performance</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            9.08. Governing Law; Forum</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            9.09. Headings</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            9.10. Counterparts</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            9.11. Entire Agreement</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>EXHIBITS</strong></font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">A
            -
            Certificates to be Exchanged</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">B
            -
            Material Contracts of Deep Down</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">C
            -
            Material Contracts of MediQuip</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">D
            - Form
            of Merger Agreement among SubSea, SOS and Deep Down</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">E
            - Form
            of Officer&#8217;s Certificate of MediQuip concerning accuracy</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">F
            - Form
            of Officer&#8217;s Certificate of Deep Down concerning accuracy</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">G
            - Form
            of Investment Agreement</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">H
            -
            Exceptions to Representations and Warranties of Deep Down</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div><br>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>AGREEMENT
            AND PLAN OF REORGANIZATION</strong></font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>AGREEMENT
            AND PLAN OF REORGANIZATION</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
            dated as
            of November 22, 2006 (this &#8220;Agreement&#8221;) among MEDIQUIP HOLDINGS, INC., a Nevada
            corporation (&#8220;MediQuip&#8221;), DEEP DOWN, INC., a Delaware corporation (formerly
            SubSea Acquisition Corporation, a Texas corporation ) (&#8220;Deep Down&#8221;) and the
            undersigned majority securityholders of Deep Down (collectively, the
            &#8220;Shareholder&#8221;).</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>W
            I T N E S S E T H</u></strong></font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">WHEREAS,
            upon the terms and subject to the conditions of this Agreement, all
            securityholders of Deep Down will exchange all of the shares of Deep
            Down&#8217;s
            common stock for a specified number of shares of MediQuip&#8217;s common stock to be
            issued and MediQuip will acquire all of the issued and outstanding securities
            of
            Deep Down, making Deep Down a wholly-owned subsidiary of MediQuip;</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">WHEREAS,
            the Exchange shall qualify as a transaction in securities exempt from
            registration or qualification under the Securities Act of 1933, as amended,
            and
            under the applicable securities laws of each state or jurisdiction where
            securityholders of Deep Down reside;</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">WHEREAS,
            for federal income tax purposes, the Exchange is intended to qualify
            as a
            reorganization under the provisions of section 368(a)(1)(B) of the United
            States
            Internal Revenue Code of 1986, as amended (the &#8220;Code&#8221;); and</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">NOW,
            THEREFORE, in consideration of the foregoing and the mutual covenants
            and
            agreements herein contained, and intending to be legally bound hereby,
            MediQuip,
            Deep Down and Shareholder hereby agree as follows:</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>ARTICLE
            ITHE EXCHANGE</strong></font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            1.01. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>The
            Exchange</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
            Upon
            the terms and subject to the conditions set forth in Article VII, at
            the
            Effective Time (as defined below in Section 1.02), as a result of the
            Exchange,
            Deep Down will become a wholly owned subsidiary of MediQuip.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            1.02. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Effective
            Time; Closing</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
            As
            promptly as practicable and in no event later than the 14</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><sup>th</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
            day of
            December, 2006 and following the satisfaction or, if permissible, waiver
            of the
            conditions set forth in Article VII (or such other date as may be agreed
            in
            writing by each of the parties hereto), the parties hereto shall cause
            the
            Exchange to be consummated by Shareholder delivering to MediQuip, or
            its
            representatives, the certificates representing all of the outstanding
            Deep Down
            Securities (as defined below in Section 2.01 (c)), duly endorsed (or
            with duly
            executed stock powers) so as to make MediQuip the sole owner thereof
            free and
            clear of all claims and encumbrances except as specifically assumed by
            MediQuip.
            The term &#8220;Effective Time&#8221; means the date and time of the Closing (or such later
            time as may be agreed in writing by each of the parties hereto) to be
            held at
            the offices of Sonfield &amp; Sonfield, Houston, Texas (or such other place as
            the parties may agree).</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            1.03. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Effect
            of the Exchange</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
            At the
            Effective Time, the effect of the Exchange shall be Deep Down becoming
            a wholly
            owned subsidiary of MediQuip.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            1.04. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Directors
            and Officers</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
            The
            initial officers and directors of MediQuip shall be the persons designated
            by
            Deep Down immediately prior to the Effective Time, in each case until
            their
            respective successors are duly elected or appointed and qualified. In
            connection
            with such election, MediQuip shall have provided its securityholders
            with an
            Information Statement pursuant to Section 14f of the Exchange Act and
            Securities
            Exchange Commission (&#8220;SEC&#8221;) Rule 14f-1.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>ARTICLE
            IIDELIVERY OF SECURITIES; EXCHANGE OF CERTIFICATES</strong></font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            2.01. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Delivery
            of Securities</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
            At the
            Effective Time, by virtue of the Exchange:</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(a)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(i)
            75,000,000 shares of common stock, par value $0.001 per share, of MediQuip
            (the
&#8220;MediQuip Common Stock&#8221;) shall be issued in exchange for all outstanding shares
            of common stock of Deep Down (the &#8220;Deep Down Common Stock&#8221;),(ii) 10,000,000
            shares have been reserved for issuance in connection with the Private
            Offering
            of Common stock pursuant to the Private Placement Memorandum (iii) 5,000
            shares
            of Series D Redeemable Convertible Preferred Stock and 3,000 shares of
            Series F
            Redeemable Convertible Preferred Stock of Mediquip will be exchanged
            for a like
            number and designation of Redeemable Convertible Preferred Stock of Deep
            Down
            issued and outstanding immediately prior to the Effective Time, except
            the
            conversion price will be reduced from $1.45 per share to $0.1933 per
            share, (iv)
            5,000 shares of Series E Redeemable Exchangeable Preferred Stock and
            1,000
            shares of Series G Redeemable Exchangeable Preferred Stock will be exchanged
            for
            a like number and designation of Redeemable Exchangeable Preferred Stock
            of Deep
            Down issued and outstanding immediately prior to the Effective Time.
            The Deep
            Down Common Stock and the several series of Deep Down preferred stock
            are
            collectively referred to as the &#8220;Deep Down Securities&#8221;). Each share of Deep Down
            Common Stock shall be converted, subject to Section 2.02(e), into the
            right to
            receive a ratable portion of 75,000,000 shares (the &#8220;Exchange Ratio&#8221;) of
            MediQuip Common Stock; provided, however, that, if between the date of
            this
            Agreement and the Effective Time the outstanding shares of MediQuip Common
            Stock
            shall have been changed from into a different number of shares or a different
            class, by reason of any stock dividend, subdivision, reclassification,
            recapitalization, split, combination or exchange of shares, the Exchange
            Ratio
            shall be correspondingly adjusted to the extent appropriate to reflect
            such
            stock dividend, subdivision, reclassification, recapitalization, split,
            combination or exchange of shares (all such shares of MediQuip Common
            Stock
            being herein referred to as the &#8220;MediQuip Securities&#8221; or the &#8220;Exchange
            Consideration&#8221;); and</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(b)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">each
            Share held in the treasury of Deep Down and each Share owned by MediQuip
            or any
            direct or indirect wholly owned subsidiary of MediQuip or of Deep Down
            immediately prior to the Effective Time shall be cancelled and extinguished
            without any conversion thereof and no payment or distribution shall be
            made with
            respect thereto.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            2.02. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Exchange
            of Certificates</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(a)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">At
            the
            Closing, Shareholder shall deliver to MediQuip all certificates representing
            Deep Down Securities (the &#8220;Certificates&#8221;) delivered to it (together with any
            stock transfer tax stamps required by reason of the payment of the Exchange
            Consideration to a person other than the registered holder of the Certificate
            surrendered), together with such other customary documents as may reasonably
            be
            required by MediQuip, in exchange for the Exchange Consideration. Certificates
            representing the Exchange Consideration shall be issued to the persons
            and in
            the amounts described in Exhibit A. Any shareholder of Deep Down whose
            Certificates are not delivered at the Closing shall receive the Exchange
            Consideration with respect to such Certificates upon delivery to MediQuip
            after
            the Closing of such Certificates and the other items required pursuant
            to the
            first sentence of this Section 2.02(a).</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(b)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">No
            dividends or other distributions declared or made after the Effective
            Time with
            respect to the MediQuip Common Stock with a record date after the Effective
            Time
            shall be paid to the holder of any unsurrendered Certificate with respect
            to the
            shares of MediQuip Common Stock represented thereby, and no cash payment
            in lieu
            of any fractional shares shall be paid to any such holder pursuant to
            Section
            2.02(d), until the holder of such Certificate shall surrender such
            Certificate.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(c)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">All
            shares of MediQuip Common Stock issued upon conversion of Deep Down Securities
            in accordance with the terms hereof (including any cash paid pursuant
            to Section
            2.02(b) or (d)) shall be deemed to have been issued in full satisfaction
            of all
            rights pertaining to such Deep Down Securities.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(d)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">No
            certificate or scrip representing fractional shares of MediQuip Common
            Stock
            shall be issued upon the surrender for exchange of Certificates, and
            such
            fractional share interests will not entitle the owner thereof to vote
            or to any
            other rights of a shareholder of MediQuip. Each holder of a fractional
            share
            interest shall be paid an amount in cash (without interest) equal to
            the product
            obtained by multiplying (i) such fractional share interest to which such
            holder
            (after taking into account all fractional share interests then held by
            such
            holder) would otherwise be entitled by (ii) the average of the per share
            closing
            prices on the OTC Bulletin Board (the &#8220;OTC &#8220;) of shares of MediQuip Common Stock
            during the 20 consecutive trading days ending on (and including) the
            trading day
            immediately preceding the date of the Effective Time. As promptly as
            practicable
            after the determination of the amount of cash, if any, to be paid to
            holders of
            fractional share interests, the MediQuip shall forward payments to such
            holders
            of fractional share interests subject to and in accordance with the terms
            of
            Sections 2.02(b).</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(e)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Neither
            MediQuip nor Deep Down shall be liable to any holder of Shares for any
            such
            Shares (or dividends or distributions with respect thereto), or cash
            delivered
            to a public official pursuant to any abandoned property, escheat or similar
            Law.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(f)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Each
            of
            Deep Down and MediQuip shall be entitled to deduct and withhold from
            the
            consideration otherwise payable pursuant to this Agreement to any holder
            of
            Shares such amounts as it is required to deduct and withhold with respect
            to the
            making of such payment under the Code, or any provision of state, local
            or
            foreign tax law. To the extent that amounts are so withheld by the Surviving
            Corporation or MediQuip, as the case may be, such withheld amounts shall
            be
            treated for all purposes of this Agreement as having been paid to the
            holder of
            Shares in respect of which such deduction and withholding was made by
            the
            Surviving Corporation or MediQuip, as the case may be.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(g)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">If
            any
            Certificate shall have been lost, stolen or destroyed, upon the making
            of an
            affidavit of that fact by the person claiming such Certificate to be
            lost,
            stolen or destroyed and, if required by MediQuip, the posting by such
            person of
            a bond, in such reasonable amount as MediQuip may direct, as indemnity
            against
            any claim that may be made against it with respect to such Certificate,
            the
            MediQuip will issue in exchange for such lost, stolen or destroyed Certificate
            the Exchange Consideration, any cash in lieu of fractional shares of
            MediQuip
            Common Stock to which the holders thereof are entitled pursuant to Section
            2.02(d) and any dividends or other distributions to which the holders
            thereof
            are entitled pursuant to Section 2.02(f).</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            2.03. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Stock
            Transfer Books</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
            At the
            Effective Time, the stock transfer books of Deep Down shall be closed
            and there
            shall be no further registration of transfers of Shares thereafter on
            the
            records of Deep Down. From and after the Effective Time, the holders
            of
            Certificates representing Shares outstanding immediately prior to the
            Effective
            Time shall cease to have any rights with respect to such Shares, except
            as
            otherwise provided in this Agreement or by Law.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>ARTICLE
            IIIREPRESENTATIONS AND WARRANTIES OF THE COMPANY</strong></font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Except
            as
            set forth in this Agreement, Deep Down hereby represents and warrants
            to
            MediQuip that:</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            3.01. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Organization
            and Qualification; Subsidiaries</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
            Each of
            Deep Down and each subsidiary of Deep Down (the &#8220;Deep Down Subsidiaries&#8221;) is a
            corporation duly incorporated, validly existing and in good standing
            under the
            laws of the jurisdiction of its incorporation and has all requisite corporate
            power and to own, lease and operate its properties and to carry on its
            business
            as it is now being conducted, except where the failure to be so organized,
            existing or in good standing or to have such corporate power, have not
            had, and
            could not reasonably be expected to have, individually or in the aggregate,
            a
            Deep Down Material Adverse Effect (as defined below). Each of Deep Down
            and Deep
            Down Subsidiaries is duly qualified or licensed as a foreign corporation
            to do
            business, and is in good standing, in each jurisdiction where the character
            of
            the properties owned, leased or operated by it or the nature of its business
            makes such qualification or licensing necessary, except for such failures
            to be
            so qualified or licensed and in good standing that have not had, and
            could not
            reasonably be expected to have, individually or in the aggregate, a Deep
            Down
            Material Adverse Effect. The term &#8220;Deep Down Material Adverse Effect&#8221; means any
            change in or effect on the business of Deep Down and Deep Down Subsidiaries
            that
            is materially adverse to the financial condition or results of operations
            of
            Deep Down and Deep Down Subsidiaries taken as a whole, except for any
            such
            changes or effects resulting from or arising in connection with (i) this
            Agreement or the transactions contemplated by this Agreement or the announcement
            hereof, (ii) any changes in economic, regulatory or political conditions
            or
            (iii) any issue or condition otherwise known to MediQuip prior to the
            date of
            this Agreement. </font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            3.02. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Certificate
            of Incorporation and By-Laws</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
            Deep
            Down has heretofore made available to MediQuip a complete and correct
            copy of
            the Certificate of Incorporation and the By-Laws of Deep Down. Such Certificate
            of Incorporation and By-Laws are in full force and effect. Deep Down
            is not in
            violation of any of the provisions of its Certificate of Incorporation
            or
            By-Laws.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            3.03. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Capitalization</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
            Except
            as indicated on Exhibit A, all Deep Down Securities will be issued and
            outstanding and will be validly issued, fully paid and non-assessable
            and (ii)
            no shares are reserved for future issuance pursuant to Deep Down Stock
            Options
            and Warrants. All shares of Deep Down Securities subject to issuance
            as
            aforesaid, upon issuance on the terms and conditions specified in the
            instruments pursuant to which they are issuable, will be duly authorized,
            validly issued, fully paid and non-assessable. There are no outstanding
            contractual obligations of Deep Down or any Deep Down Subsidiary to repurchase,
            redeem or otherwise acquire any shares of Deep Down Securities or any
            capital
            stock of any Deep Down Subsidiary. Each outstanding share of capital
            stock of
            each Deep Down Subsidiary is duly authorized, validly issued, fully paid
            and
            non-assessable and each such share owned by Deep Down or another Deep
            Down
            Subsidiary is free and clear of all security interests, liens, claims,
            pledges,
            options, rights of first refusal, agreements, limitations on Deep Down&#8217;s or such
            other Deep Down Subsidiary&#8217;s voting rights, charges and other encumbrances of
            any nature whatsoever, except where failure to own such shares free and
            clear
            would not, individually or in the aggregate, have a Deep Down Material
            Adverse
            Effect. There are no material outstanding contractual obligations of
            Deep Down
            or any Deep Down Subsidiary to provide funds to, or make any investment
            (in the
            form of a loan, capital contribution or otherwise) in, any Deep Down
            Subsidiary
            or any other person. </font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            3.04. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Authority
            Relative to This Agreement</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
            Deep
            Down has all necessary corporate power and authority to execute and deliver
            this
            Agreement and to perform its obligations hereunder and to consummate
            the
            Exchange and the other transactions contemplated by this Agreement. The
            execution and delivery of this Agreement by Deep Down and the consummation
            by
            Deep Down of the Exchange and the other transactions contemplated by
            this
            Agreement have been duly and validly authorized by all necessary corporate
            action and no other corporate proceedings on the part of Deep Down are
            necessary
            to authorize this Agreement or to consummate the Exchange and the other
            transactions contemplated by this Agreement. This Agreement has been
            duly and
            validly executed and delivered by Deep Down and, assuming the due authorization,
            execution and delivery by MediQuip, constitutes a legal, valid and binding
            obligation of Deep Down, enforceable against Deep Down in accordance
            with its
            terms.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            3.05. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>No
            Conflict; Required Filings and Consents</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
            (a)
            Except as described on Exhibit H, the execution and delivery of this
            Agreement
            by Deep Down does not, and the performance of this Agreement by Deep
            Down will
            not, (i) conflict with or violate the Certificate of Incorporation or
            By-laws of
            Deep Down or any equivalent organizational documents of any Deep Down
            Subsidiary, (ii) assuming that all consents, approvals, authorizations
            and other
            actions described in Section 3.05(b) have been obtained and all filings
            and
            obligations described in Section 3.05(b) have been made, to the best
            knowledge
            of Deep Down after inquiry, conflict with or violate any foreign or domestic
            law, statute, ordinance, rule, regulation, order, judgment or decree
            (&#8220;Law&#8221;)
            applicable to Deep Down or any Deep Down Subsidiary or by which any property
            or
            asset of Deep Down or any Deep Down Subsidiary is bound or affected,
            or (iii)
            result in any breach of or constitute a default (or an event which with
            notice
            or lapse of time or both would become a default) under, or give to others
            any
            right of termination, amendment, acceleration or cancellation of, or
            result in
            the creation of a lien or other encumbrance on any property or asset
            of Deep
            Down or any Deep Down Subsidiary pursuant to, any note, bond, mortgage,
            indenture, contract, agreement, lease, license, permit, franchise or
            other
            instrument or obligation, except, with respect to clause (iii), for any
            such
            conflicts, violations, breaches, defaults or other occurrences that have
            not
            had, and could not reasonably be expected to have, individually or in
            the
            aggregate, a Deep Down Material Adverse Effect, and that could not reasonably
            be
            expected to prevent or materially delay the consummation of the transactions
            contemplated by this Agreement.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(b)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Except
            as
            described on Exhibit H, the execution and delivery of this Agreement
            by Deep
            Down does not, and the performance of this Agreement by Deep Down will
            not,
            require any consent, approval, authorization or permit of, or filing
            with or
            notification to, any domestic or foreign governmental or regulatory authority
            (&#8220;Governmental Entity&#8221;), except (i) for applicable requirements, if any, of
            state securities or &#8220;blue sky&#8221; laws (&#8220;Blue Sky Laws&#8221;), state takeover laws and
            (ii) where failure to obtain such consents, approvals, authorizations
            or
            permits, or to make such filings or notifications, has not had, and could
            not
            reasonably be expected to have, individually or in the aggregate, a Deep
            Down
            Material Adverse Effect, and could not reasonably be expected to prevent
            or
            materially delay the consummation of the transactions contemplated by
            this
            Agreement.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            3.06. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Permits;
            Compliance</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
            (a)
            Each of Deep Down and Deep Down Subsidiaries is in possession of all
            franchises,
            grants, authorizations, licenses, permits, easements, variances, exceptions,
            consents, certificates, approvals and orders of any Governmental Entity
            necessary for Deep Down or any Deep Down Subsidiary to own, lease and
            operate
            its properties or to carry on its business as it is now being conducted
            (the
&#8220;Deep Down Permits&#8221;), except where the failure to have, or the suspension or
            cancellation of, any of Deep Down Permits has not had, and could not
            reasonably
            be expected to have, individually or in the aggregate, a Deep Down Material
            Adverse Effect, and, as of the date of this Agreement, no suspension
            or
            cancellation of any of Deep Down Permits is pending or, to the knowledge
            of Deep
            Down, threatened, except where the failure to have, or the suspension
            or
            cancellation of, any of Deep Down Permits has not had, and could not
            reasonably
            be expected to have, individually or in the aggregate, a Deep Down Material
            Adverse Effect. </font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(b)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">To
            the
            best knowledge of Deep Down after inquiry, neither Deep Down nor any
            Deep Down
            Subsidiary is in conflict with, or in default or violation of, (i) any
            Law
            applicable to Deep Down or any Deep Down Subsidiary or by which any property
            or
            asset of Deep Down or any Deep Down Subsidiary is bound or affected,
            (ii) any
            note, bond, mortgage, indenture, contract, agreement, lease, license,
            permit,
            franchise or other instrument or obligation to which Deep Down or any
            Deep Down
            Subsidiary is a party or by which Deep Down or any Deep Down Subsidiary
            or any
            property or asset of Deep Down or any Deep Down Subsidiary is bound or
            affected
            or (iii) any Deep Down Permits, except, in the case of each of (i), (ii)
            and
            (iii), for any such conflicts, defaults or violations that have not had,
            and
            could not reasonably be expected to have, individually or in the aggregate,
            a
            Deep Down Material Adverse Effect.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            3.07. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Absence
            of Certain Changes or Events</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
            Since
            the date of its organization, except as contemplated by or as disclosed
            in this
            Agreement, Deep Down has conducted its businesses only in the ordinary
            course
            and in a manner consistent with past practice and, since such date, there
            has
            not been (a) any material change by Deep Down in its accounting methods,
            principles or practices, (b) any declaration, setting aside or payment
            of any
            dividend or distribution in respect of the Commons Stock or any redemption,
            purchase or other acquisition of any of Deep Down&#8217;s securities or (c) any
            increase in or establishment of any bonus, insurance, severance, deferred
            compensation, pension, retirement, profit sharing, stock option (including,
            without limitation, the granting of stock options, stock appreciation
            rights,
            performance awards or restricted stock awards), stock purchase or other
            employee
            benefit plan, or any other increase in the compensation payable or to
            become
            payable to any executive officers of Deep Down, except in the ordinary
            course of
            business.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            3.08. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Absence
            of Litigation</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
            Except
            as set forth on Section 3.08 of Deep Down Disclosure Schedule, as of
            the date of
            this Agreement, there is no litigation, suit, claim, action, proceeding
            or
            investigation pending or, to the knowledge of Deep Down, threatened against
            Deep
            Down, or any property or asset of Deep Down, before any court, arbitrator
            or
            governmental entity, domestic or foreign, which (i) has had, or could
            reasonably
            be expected to have, individually or in the aggregate, a material adverse
            effect
            on Deep Down or (ii) seeks to delay or prevent the consummation of any
            other
            material transaction contemplated by this Agreement. As of the date of
            this
            Agreement, neither Deep Down nor any property or asset of Deep Down is
            subject
            to any continuing order of, consent decree, settlement agreement or other
            similar written agreement with, or, to the knowledge of Deep Down, continuing
            investigation by, any governmental entity, or any order, writ, judgment,
            injunction, decree, determination or award of any governmental entity
            or
            arbitrator having, individually or in the aggregate, a material adverse
            effect
            on Deep Down.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            3.09. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Employee
            Benefit Plans; Labor Matters</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
            With
            respect to each employee benefit plan, program, arrangement and contract
            (including, without limitation, any &#8220;employee benefit plan&#8221;, as defined in
            section 3(3) of the Employee Retirement Income Security Act of 1974,
            as amended
            (&#8220;ERISA&#8221;)) maintained or contributed to by Deep Down or any Deep Down
            Subsidiary, or with respect to which Deep Down or any Deep Down Subsidiary
            could
            incur liability under section 4069, 4212(c) or 4204 of ERISA (the &#8220;Deep Down
            Benefit Plans&#8221;), Deep Down has made available to the MediQuip a true and correct
            copy of (i) the most recent annual report (Form 5500) filed with the
            Internal
            Revenue Service (the &#8220;IRS&#8221;), (ii) a complete copy of such Deep Down Benefit
            Plan, (iii) each trust agreement relating to such Deep Down Benefit Plan,
            (iv)
            the most recent summary plan description for each Deep Down Benefit Plan
            for
            which a summary plan description is required, (v) the most recent actuarial
            report or valuation relating to a Deep Down Benefit Plan subject to Title
            IV of
            ERISA and (vi) the most recent determination letter, if any, issued by
            the IRS
            with respect to any Deep Down Benefit Plan qualified under section 401(a)
            of the
            Code.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            3.10. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Contracts</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
            (a)
            Exhibit B lists each of the following written contracts and agreements
            of Deep
            Down (such contracts and agreements being &#8220;Material Contracts&#8221;):</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(i)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">each
            contract and agreement for the purchase or lease of personal property
            with any
            supplier or for the furnishing of services to Deep Down that in each
            case
            involves annual payment in excess of US$50,000, or British sterling
            equivalent;</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(ii)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">all
            broker, exclusive dealing or exclusivity, distributor, dealer, manufacturer&#8217;s
            representative, franchise, agency, sales promotion and market research
            agreements involving annual payments in excess of US$100,000,or British
            sterling
            equivalent, to which Deep Down is a party or any other material contract
            that
            compensates any person other than employees based on any sales by Deep
            Down;</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(iii)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">all
            leases and subleases of real property;</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(iv)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">all
            contracts and agreements relating to indebtedness for borrowed money
            other than
            trade indebtedness of Deep Down;</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(v)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">all
            contracts and agreements involving annual payments in excess of $100,000
            with
            any Governmental Entity to which Deep Down is a party; and</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(vi)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">any
            other
            material agreement of Deep Down which is terminable upon or prohibits
            a change
            of ownership or control of Deep Down.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(b)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Each
            Material Contract: (i) is valid and binding on Deep Down and, to the
            knowledge
            of Deep Down, on the other parties thereto, and is in full force and
            effect, and
            (ii) upon consummation of the transactions contemplated by this Agreement,
            shall
            continue in full force and effect without material penalty or other material
            adverse consequence. Deep Down is not in material breach of, or material
            default
            under, any Material Contract and, to the knowledge of Deep Down, no other
            party
            to any Material Contract is in material breach thereof or material default
            thereunder.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            3.11. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Environmental
            Matters</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
            Except
            as would not, individually or in the aggregate, have a Deep Down Material
            Adverse Effect:</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(a)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Deep
            Down
            and Deep Down Subsidiaries (i) are in compliance with all applicable
            Environmental Laws (as defined below), (ii) hold all Environmental Permits
            (as
            defined below) and (iii) are in compliance with their respective Environmental
            Permits.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(b)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">None
            of
            Deep Down or any Deep Down Subsidiary has received any written request
            for
            information, or been notified that it is a potentially responsible party,
            under
            CERCLA (defined below) or any similar Law of any state, locality or any
            other
            jurisdiction.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(c)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">None
            of
            Deep Down or any Deep Down Subsidiary has entered into or agreed to any
            consent
            decree or order or is subject to any judgment, decree or judicial order
            relating
            to compliance with Environmental Laws, Environmental Permits or the
            investigation, sampling, monitoring, treatment, remediation, removal
            or cleanup
            of Hazardous Materials (defined below) and, to the knowledge of Deep
            Down, no
            investigation, litigation or other proceeding is pending or threatened
            in
            writing with respect thereto. </font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(d)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">None
            of
            the real property owned or leased by Deep Down or any Deep Down Subsidiary
            is
            listed or, to the knowledge of Deep Down, proposed for listing on the
&#8220;National
            Priorities List&#8221; under CERCLA, as updated through the date of this Agreement, or
            any similar list of sites in the United States or any other jurisdiction
            requiring investigation or cleanup.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">For
            purposes of this Agreement:</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8220;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>CERCLA</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8221;
means
            the Comprehensive Environmental Response, Compensation and Liability
            Act of
            1980, as amended as of the date hereof.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8220;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Environmental
            Laws</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8221;
means
            any federal, state or local statute, law, ordinance, regulation, rule,
            code or
            order of the United States, or any other jurisdiction and any enforceable
            judicial or administrative interpretation thereof, including any judicial
            or
            administrative order, consent decree or judgment, relating to pollution
            or
            protection of the environment or natural resources, including, without
            limitation, those relating to the use, handling, transportation, treatment,
            storage, disposal, release or discharge of Hazardous Materials, as in
            effect as
            of the date of this Agreement.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8220;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Environmental
            Permits</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8221;
means
            any permit, approval, identification number, license and other authorization
            required under any applicable Environmental Law.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8220;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Hazardous
            Materials</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8221;
means
            (a) any petroleum, petroleum products, by-products or breakdown products,
            radioactive materials, asbestos-containing materials or polychlorinated
            biphenyls or (b) any chemical, material or substance defined or regulated
            as
            toxic or hazardous or as a pollutant or contaminant or waste under any
            applicable Environmental Law.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            3.12. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Trademarks,
            Patents and Copyrights</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
            Except
            as would not, individually or in the aggregate, have a Deep Down Material
            Adverse Effect, Deep Down and Deep Down Subsidiaries own or possess adequate
            licenses or other valid rights to use all patents, patent rights, trademarks,
            trademark rights, trade names, trade dress, trade name rights, copyrights,
            service marks, trade secrets, applications for trademarks and for service
            marks,
            know-how and other proprietary rights and information used or held for
            use in
            connection with the business of Deep Down and Deep Down Subsidiaries
            as
            currently conducted, and Deep Down has no knowledge of any assertion
            or claim
            challenging the validity of any of the foregoing. To the knowledge of
            Deep Down,
            the conduct of the business of Deep Down and Deep Down Subsidiaries as
            currently
            conducted does not and will not conflict in any way with any patent,
            patent
            right, license, trademark, trademark right, trade dress, trade name,
            trade name
            right, service mark or copyright of any third party that has had, or
            could
            reasonably be expected to have, individually or in the aggregate, a Deep
            Down
            Material Adverse Effect. To the knowledge of Deep Down, there are no
            infringements of any proprietary rights owned by or licensed by or to
            Deep Down
            or any Deep Down Subsidiary that have had, or could reasonably be expected
            to
            have, individually or in the aggregate, a Deep Down Material Adverse
            Effect.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            3.13. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Taxes</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
            Except
            as for such matters that could not reasonably be expected to have a Deep
            Down
            Material Adverse Effect, (a) Deep Down and each of Deep Down Subsidiaries
            have
            timely filed or will timely file all returns and reports required to
            be filed by
            them with any taxing authority with respect to Taxes for any period ending
            on or
            before the Effective Time, taking into account any extension of time
            to file
            granted to or obtained on behalf of Deep Down and Deep Down Subsidiaries,
            (b)
            all Taxes shown to be payable on such returns or reports that are due
            prior to
            the Effective Time have been paid or will be paid, (c) as of the date
            of this
            Agreement, no deficiency for any material amount of Tax has been asserted
            or
            assessed by a taxing authority against Deep Down or any of Deep Down
            Subsidiaries and (d) Deep Down and each of Deep Down Subsidiaries have
            provided
            adequate reserves in their financial statements for any Taxes that have
            not been
            paid in accordance with generally accepted accounting principles, whether
            or not
            shown as being due on any returns. As used in this Agreement, &#8220;Taxes&#8221; shall mean
            any and all taxes, fees, levies, duties, tariffs, imposts and other charges
            of
            any kind (together with any and all interest, penalties, additions to
            tax and
            additional amounts imposed with respect thereto) imposed by any government
            or
            taxing authority, including, without limitation: taxes or other charges
            on or
            with respect to income, franchises, windfall or other profits, gross
            receipts,
            property, sales, use, capital stock, payroll, employment, social security,
            workers&#8217; compensation, unemployment compensation or net worth; taxes or other
            charges in the nature of excise, withholding, ad valorem, stamp, transfer,
            value
            added or gains taxes; license, registration and documentation fees; and
            customers&#8217; duties, tariffs and similar charges. </font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            3.14. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>State
            Takeover Statutes</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
            The
            Board of Directors of Deep Down has taken all action necessary to ensure
            that
            any restrictions on business combinations will not apply to the Exchange
            and the
            other transactions contemplated by this Agreement. To the knowledge of
            Deep
            Down, no other state takeover statute is applicable to the Exchange or
            the other
            transactions contemplated by this Agreement.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            3.15. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Brokers</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
            No
            broker, finder or investment banker is entitled to any brokerage, finder&#8217;s or
            other fee or commission in connection with the Exchange or the other
            transactions contemplated by this Agreement based upon arrangements made
            by or
            on behalf of Deep Down.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>ARTICLE
            IVREPRESENTATIONS AND WARRANTIES OF MEDIQUIP</strong></font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">MediQuip
            hereby represents and warrants to Deep Down that:</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            4.01. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Organization
            and Qualification; Subsidiaries</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
            Each of
            MediQuip and each subsidiary of MediQuip (the &#8220;MediQuip Subsidiaries&#8221;) is a
            corporation duly incorporated, validly existing and in good standing
            under the
            laws of the jurisdiction of its incorporation and has all corporate requisite
            power and authority and all necessary governmental approvals to own,
            lease and
            operate its properties and to carry on its business as it is now being
            conducted, except where the failure to be so organized, existing or in
            good
            standing or to have such corporate power, authority and governmental
            approvals
            have not had, and could not reasonably be expected to have, individually
            or in
            the aggregate, a MediQuip Material Adverse Effect (as defined below).
            Each of
            MediQuip and the MediQuip Subsidiaries is duly qualified or licensed
            as a
            foreign corporation to do business, and is in good standing, in each
            jurisdiction where the character of the properties owned, leased or operated
            by
            it or the nature of its business makes such qualification or licensing
            necessary, except for such failures to be so qualified or licensed and
            in good
            standing that have not had, and could not reasonably be expected to have,
            individually or in the aggregate, a MediQuip Material Adverse Effect.
            The term
&#8220;MediQuip Material Adverse Effect&#8221; means any change in or effect on the business
            of MediQuip and the MediQuip Subsidiaries that is materially adverse
            to the
            financial condition or results of operations of MediQuip and the MediQuip
            Subsidiaries taken as a whole, except for any such changes or effects
            resulting
            from or in connection with (i) this Agreement or the transactions contemplated
            by this Agreement or the announcement hereof, (ii) any changes in economic,
            regulatory or political conditions or (iii) any issue or condition otherwise
            known to Deep Down prior to the date of this Agreement. </font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            4.02. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Certificate
            of Incorporation and By-Laws</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
            MediQuip has heretofore made available to Deep Down a complete and correct
            copy
            of the Certificate of Incorporation and the By-Laws of MediQuip. Such
            Certificates of Incorporation and By-Laws are in full force and effect.
            MediQuip
            is not violation of any of the provisions of its Certificate of Incorporation
            or
            By-Laws.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            4.03. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Capitalization</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
            The
            authorized capital stock of MediQuip consists of (a) 490,000,000 shares
            of
            MediQuip Common Stock, $.001 par value, and (b) 10,000,000 shares of
            preferred
            stock, $.001 par value. As of the date of this Agreement, (i) 39,221,421
            shares
            of MediQuip Common Stock are issued and outstanding, and 22,000 shares
            of
            MediQuip preferred stock are issued and outstanding, all of which are
            validly
            issued, fully paid and non-assessable, (ii) in addition to the shares
            reserved
            for issuance under the terms of the Plan referred to and defined in Section
            4.07, no shares of MediQuip Common Stock are held in the treasury of
            MediQuip or
            by MediQuip Subsidiaries and (iii) 4,400,000 shares are reserved for
            future
            issuance upon conversion of the outstanding preferred stock. Immediately
            prior
            to closing, there will exist only 7,870,171 shares of MediQuip Common
            Stock
            issued and outstanding and 22,000 shares of MediQuip preferred stock
            (convertible into a maximum of 4,400,000 shares of common stock of MediQuip)
            issued and outstanding. There are no options, warrants or other rights,
            agreements, arrangements or commitments of any character relating to
            the issued
            or unissued capital stock of MediQuip or any MediQuip Subsidiary or obligating
            MediQuip or any MediQuip Subsidiary to issue or sell any shares of capital
            stock
            of, or other equity interests in, MediQuip or any MediQuip Subsidiary.
            All
            shares of MediQuip Common Stock subject to issuance as aforesaid, upon
            issuance
            on the terms and conditions specified in the instruments pursuant to
            which they
            are issuable, will be duly authorized, validly issued, fully paid and
            non-assessable. There are no outstanding contractual obligations of MediQuip
            or
            any MediQuip Subsidiary to repurchase, redeem or otherwise acquire any
            shares of
            MediQuip Common Stock or any capital stock of any MediQuip Subsidiary.
            Each
            outstanding share of capital stock of each MediQuip Subsidiary is duly
            authorized, validly issued, fully paid and non-assessable and each such
            share
            owned by MediQuip or another MediQuip Subsidiary is free and clear of
            all
            security interests, liens, claims, pledges, options, rights of first
            refusal,
            agreements, limitations on MediQuip&#8217;s or such other MediQuip Subsidiary&#8217;s voting
            rights, charges and other encumbrances of any nature whatsoever, except
            where
            failure to own such shares free and clear would not, individually or
            in the
            aggregate, have a MediQuip Material Adverse Effect. There are no material
            outstanding contractual obligations of MediQuip or any MediQuip Subsidiary
            to
            provide funds to, or make any investment (in the form of a loan, capital
            contribution or otherwise) in, any MediQuip Subsidiary or any other person.
            The
            shares of MediQuip Common Stock to be issued pursuant to the Exchange
            in
            accordance with Section 2.01 (i) will be duly authorized, validly issued,
            fully
            paid and non-assessable and not subject to preemptive rights created
            by statute,
            the MediQuip&#8217;s Certificate of Incorporation or By-Laws or any agreement to which
            the MediQuip is a party or is bound and (ii) will, when issued, be exempt
            from
            registration under the Securities Act of 1933, as amended (together with
            the
            rules and regulations promulgated thereunder, the &#8220;Securities Act&#8221;) and the
            Securities Exchange Act of 1934, as amended (together with the rules
            and
            regulations promulgated thereunder, the &#8220;Exchange Act&#8221;) and exempt from
            registration under applicable Blue Sky Laws. The shares of MediQuip Common
            Stock
            to be issued pursuant to the Exchange in accordance with Section 2.01
            will bear
            a restrictive legend in substantially the following form (and a stop-transfer
            order may be placed against transfer of the certificates for such MediQuip
            Securities):</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 36pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8220;The
            Securities represented by this certificate have not been registered under
            the
            Securities Act of 1933, as amended. The Securities may not be sold, transferred
            or assigned in the absence of an effective registration statement for
            the
            Securities under said Act, or an opinion of counsel, in form, substance
            and
            scope customary for opinions of counsel in comparable transactions, that
            registration is not required under said Act.&#8221;</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            4.04. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Authority
            Relative to This Agreement</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
            MediQuip has all necessary corporate power and authority to execute and
            deliver
            this Agreement and to perform its obligations hereunder and to consummate
            the
            Exchange and the other transactions contemplated by this Agreement. The
            execution and delivery of this Agreement by MediQuip and the consummation
            by
            MediQuip of the Exchange and the other transactions contemplated by this
            Agreement have been duly and validly authorized by all necessary corporate
            action and no other corporate proceedings on the part of MediQuip are
            necessary
            to authorize this Agreement or to consummate the Exchange and the other
            transactions contemplated by this Agreement. This Agreement has been
            duly and
            validly executed and delivered by MediQuip and, assuming the due authorization,
            execution and delivery by Deep Down, constitutes a legal, valid and binding
            obligation of MediQuip, enforceable against MediQuip in accordance with
            its
            terms.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            4.05. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>No
            Conflict; Required Filings and Consents</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
            (a) The
            execution and delivery of this Agreement by MediQuip does not, and the
            performance of this Agreement by MediQuip will not, (i) conflict with
            or violate
            the Certificate of Incorporation or By-laws of MediQuip, (ii) assuming
            that all
            consents, approvals, authorizations and other actions described in Section
            4.05(b) have been obtained and all filings and obligations described
            in Section
            4.05(b) have been made, conflict with or violate any Law applicable to
            MediQuip
            or any MediQuip Subsidiary or by which any property or asset of MediQuip
            or any
            MediQuip Subsidiary is bound or affected, or (iii) result in any breach
            of or
            constitute a default (or an event which with notice or lapse of time
            or both
            would become a default) under, or give to others any right of termination,
            amendment, acceleration or cancellation of, or result in the creation
            of a lien
            or other encumbrance on any property or asset of MediQuip or any MediQuip
            Subsidiary pursuant to, any note, bond, mortgage, indenture, contract,
            agreement, lease, license, permit, franchise or other instrument or obligation,
            except, with respect to clause (iii), for any such conflicts, violations,
            breaches, defaults, or other occurrences that have not had, and could
            not
            reasonably be expected to have, individually or in the aggregate, a MediQuip
            Material Adverse Effect, and that could not reasonably be expected to
            prevent or
            materially delay the consummation of the transactions contemplated by
            this
            Agreement.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(b)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
            execution and delivery of this Agreement by MediQuip does not, and the
            performance of this Agreement by MediQuip will not, require any consent,
            approval, authorization or permit of, or filing with or notification
            to, any
            Governmental Entity, except (i) for applicable requirements, if any,
            of the
            Exchange Act, Blue Sky Laws, the Securities Act, the OTC, and state takeover
            laws; and (ii) where failure to obtain such consents, approvals, authorizations
            or permits, or to make such filings or notifications, has not had, and
            could not
            reasonably be expected to have, individually or in the aggregate, a MediQuip
            Material Adverse Effect, and could not reasonably be expected to prevent
            or
            materially delay the consummation of the transactions contemplated by
            this
            Agreement.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            4.06. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Permits;
            Compliance</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
            (a)
            Each of MediQuip and the MediQuip Subsidiaries is in possession of all
            franchises, grants, authorizations, licenses, permits, easements, variances,
            exceptions, consents, certificates, approvals and orders of any Governmental
            Entity necessary for MediQuip or any MediQuip Subsidiary to own, lease
            and
            operate its properties or to carry on its business as it is now being
            conducted
            (the &#8220;MediQuip Permits&#8221;), except where the failure to have, or the suspension or
            cancellation of, any of MediQuip Permits has not had, and could not reasonably
            be expected to have, individually or in the aggregate, a MediQuip Material
            Adverse Effect, and, as of the date of this Agreement, no suspension
            or
            cancellation of any of MediQuip Permits is pending or, to the knowledge
            of
            MediQuip, threatened, except where the failure to have, or the suspension
            or
            cancellation of, any of MediQuip Permits has not had, and could not reasonably
            be expected to have, individually or in the aggregate, a MediQuip Material
            Adverse Effect. </font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(b)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Neither
            MediQuip nor any MediQuip Subsidiary is in conflict with, or in default
            or
            violation of, (i) any Law applicable to MediQuip or any MediQuip Subsidiary
            or
            by which any property or asset of MediQuip or any MediQuip Subsidiary
            is bound
            or affected, (ii) any note, bond, mortgage, indenture, contract, agreement,
            lease, license, permit, franchise or other instrument or obligation to
            which
            MediQuip or any MediQuip Subsidiary is a party or by which MediQuip or
            any
            MediQuip Subsidiary or any property or asset of MediQuip or any MediQuip
            Subsidiary is bound or affected or (iii) any MediQuip Permits, except,
            in the
            case of each of (i), (ii) and (iii), for any such conflicts, defaults
            or
            violations that have not had, and could not reasonably be expected to
            have,
            individually or in the aggregate, a MediQuip Material Adverse
            Effect.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            4.07. Divestiture of Westmeria Health Care Limited MediQuip shall have
            divested
            all of its interest in its wholly owned subsidiary, Westmeria Health
            Care
            Limited, a private limited company incorporated in England and Wales,
            and shall
            have paid or discharged any MediQuip obligations of any kind or character,
            direct or contingent, such that there are no outstanding liabilities
            whatsoever.
            The consideration received by MediQuip for the divestiture of Westmeria
            shall be
            the cancellation of 31,351,250 outstanding common stock equivalents of
            MediQuip.
            Upon the closing of the divestiture of Westmeria Health Care Limited,
            there will
            exist only 7,870,171 shares of MediQuip Common Stock issued and outstanding
            and
            22,000 shares of MediQuip preferred stock (convertible into a maximum
            of
            4,400,000 shares of common stock of MediQuip) issued and outstanding.
            </font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            4.08. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Absence
            of Certain Changes or Events</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
            Since
            the date of the filing of the Annual Report on Form 10-KSB (the &#8220;Annual
            Report&#8221;), except as contemplated by or as disclosed in this Agreement, or as
            disclosed in any amendment to the Annual Report, MediQuip and MediQuip
            Subsidiaries have conducted their businesses only in the ordinary course
            and in
            a manner consistent with past practice and, since such date, there has
            not been
            (a) any MediQuip Material Adverse Effect, (b) any material change by
            MediQuip in
            its accounting methods, principles or practices, (c) any declaration,
            setting
            aside or payment of any dividend or distribution in respect of the Shares
            or any
            redemption, purchase or other acquisition of any of MediQuip&#8217;s securities or (d)
            any increase in or establishment of any bonus, insurance, severance,
            deferred
            compensation, pension, retirement, profit sharing, stock option (including,
            without limitation, the granting of stock options, stock appreciation
            rights,
            performance awards or restricted stock awards), stock purchase or other
            employee
            benefit plan, or any other increase in the compensation payable or to
            become
            payable to any executive officers of MediQuip or any MediQuip Subsidiary,
            except
            in the ordinary course of business consistent with past practice.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            4.09. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Absence
            of Litigation</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
            As of
            the date of this Agreement, there is no litigation, suit, claim, action,
            proceeding or investigation pending or, to the knowledge of MediQuip,
            threatened
            against MediQuip or any MediQuip Subsidiary, or any property or asset
            of
            MediQuip or any MediQuip Subsidiary, before any court, arbitrator or
            Governmental Entity, domestic or foreign, which (i) has had, or could
            reasonably
            be expected to have, individually or in the aggregate, a MediQuip Material
            Adverse Effect or (ii) seeks to delay or prevent the consummation of
            the
            Exchange or any other material transaction contemplated by this Agreement.
            As of
            the date of this Agreement, neither MediQuip nor any MediQuip Subsidiary
            nor any
            property or asset of MediQuip or any MediQuip Subsidiary is subject to
            any
            continuing order of, consent decree, settlement agreement or other similar
            written agreement with, or, to the knowledge of MediQuip, continuing
            investigation by, any Governmental Entity, or any order, writ, judgment,
            injunction, decree, determination or award of any Governmental Entity
            or
            arbitrator having, individually or in the aggregate, a MediQuip Material
            Adverse
            Effect.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            4.10. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Employee
            Benefit Plans</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
            MediQuip and MediQuip Subsidiary presently do not have any employees.
            MediQuip
            and MediQuip Subsidiary presently do not, and have never in the past,
            maintained
            or contributed to any employee benefit plan, program, arrangement and
            contract
            (including, without limitation, any &#8220;employee benefit plan&#8221;, as defined in
            section 3(3) of ERISA). </font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            4.11. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Contracts</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
            (a)
            Exhibit C lists each of the following written contracts and agreements
            of
            MediQuip (such contracts and agreements being &#8220;Material
            Contracts&#8221;):</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(i)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">each
            contract and agreement for the purchase or lease of personal property
            with any
            supplier or for the furnishing of services to MediQuip;</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(ii)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">all
            broker, exclusive dealing or exclusivity, distributor, dealer, manufacturer&#8217;s
            representative, franchise, agency, sales promotion and market research
            agreements, to which MediQuip is a party or any other material contract
            that
            compensates any person other than employees based on any sales by
            MediQuip;</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(iii)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">all
            leases and subleases of real property;</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(iv)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">all
            contracts and agreements relating to indebtedness for borrowed money
            other than
            trade indebtedness of MediQuip;</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(v)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">all
            contracts and agreements involving annual payments in excess of $100,000 with
            any Governmental Entity to which MediQuip is a party; and</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(iv)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">any
            other
            material agreement of MediQuip which is terminable upon or prohibits
            a change of
            ownership or control of MediQuip..</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(b)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Each
            Material Contract: (i) is valid and binding on MediQuip and, to the knowledge
            of
            MediQuip, on the other parties thereto, and is in full force and effect,
            and
            (ii) upon consummation of the transactions contemplated by this Agreement,
            shall
            continue in full force and effect without material penalty or other material
            adverse consequence. MediQuip is not in material breach of, or material
            default
            under, any Material Contract and, to the knowledge of MediQuip, no other
            party
            to any Material Contract is in material breach thereof or material default
            thereunder.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            4.12. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Environmental
            Matters</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
            Except
            as disclosed in the Annual Report or as would not, individually or in
            the
            aggregate, have a MediQuip Material Adverse Effect:</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(a)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">MediQuip
            and the MediQuip Subsidiaries (i) are in compliance with all applicable
            Environmental Laws, (ii) hold all Environmental Permits and (iii) are
            in
            compliance with their respective Environmental Permits.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(b)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">None
            of
            MediQuip or any MediQuip Subsidiary has received any written request
            for
            information, or been notified that it is a potentially responsible party,
            under
            CERCLA or any similar Law of any state, locality or any other
            jurisdiction.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(c)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">None
            of
            MediQuip or any MediQuip Subsidiary has entered into or agreed to any
            consent
            decree or order or is subject to any judgment, decree or judicial order
            relating
            to compliance with Environmental Laws, Environmental Permits or the
            investigation, sampling, monitoring, treatment, remediation, removal
            or cleanup
            of Hazardous Materials and, to the knowledge of MediQuip, no investigation,
            litigation or other proceeding is pending or threatened in writing with
            respect
            thereto. </font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(d)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">None
            of
            the real property owned or leased by MediQuip or any MediQuip Subsidiary
            is
            listed or, to the knowledge of MediQuip, proposed for listing on the
&#8220;National
            Priorities List&#8221; under CERCLA, as updated through the date of this Agreement, or
            any similar list of sites in the United States or any other jurisdiction
            requiring investigation or cleanup.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            4.13. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Trademarks,
            Patents and Copyrights</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
            Except
            as would not, individually or in the aggregate, have a MediQuip Material
            Adverse
            Effect, MediQuip and the MediQuip Subsidiaries own or possess adequate
            licenses
            or other valid rights to use all patents, patent rights, trademarks,
            trademark
            rights, trade names, trade dress, trade name rights, copyrights, service
            marks,
            trade secrets, applications for trademarks and for service marks, know-how
            and
            other proprietary rights and information used or held for use in connection
            with
            the business of MediQuip and the MediQuip Subsidiaries as currently conducted,
            and MediQuip has no knowledge of any assertion or claim challenging the
            validity
            of any of the foregoing. To the knowledge of MediQuip, the conduct of
            the
            business of MediQuip and the MediQuip Subsidiaries as currently conducted
            does
            not and will not conflict in any way with any patent, patent right, license,
            trademark, trademark right, trade dress, trade name, trade name right,
            service
            mark or copyright of any third party that has had, or could reasonably
            be
            expected to have, individually or in the aggregate, a MediQuip Material
            Adverse
            Effect. To the knowledge of MediQuip, there are no infringements of any
            proprietary rights owned by or licensed by or to MediQuip or any MediQuip
            Subsidiary that have had, or could reasonably be expected to have, individually
            or in the aggregate, a MediQuip Material Adverse Effect.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            4.14. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Taxes</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
            Except
            for such matters that would not have a MediQuip Material Adverse Effect,
            (a)
            MediQuip and each of the MediQuip Subsidiaries have timely filed or will
            timely
            file all returns and reports required to be filed by them with any taxing
            authority with respect to Taxes for any period ending on or before the
            Effective
            Time, taking into account any extension of time to file granted to or
            obtained
            on behalf of MediQuip and the MediQuip Subsidiaries, (b) all Taxes shown
            to be
            payable on such returns or reports that are due prior to the Effective
            Time have
            been paid or will be paid, (c) as of the date of this Agreement, no deficiency
            for any material amount of Tax has been asserted or assessed by a taxing
            authority against MediQuip or any of the MediQuip Subsidiaries and (d)
            MediQuip
            and each of the MediQuip Subsidiaries have provided adequate reserves
            in their
            financial statements for any Taxes that have not been paid in accordance
            with
            generally accepted accounting principles, whether or not shown as being
            due on
            any returns. </font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            4.15. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Accounting
            and Tax Matters</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
            To the
            knowledge of MediQuip, neither MediQuip nor any of its affiliates has
            taken or
            agreed to take any action that would prevent the Exchange from constituting
            a
            transaction qualifying under Section 368(a) of the Code. MediQuip is
            not aware
            of any agreement, plan or other circumstance that would prevent the Exchange
            from qualifying under Section 368(a) of the Code.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            4.16. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Brokers</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
            No
            broker, finder or investment banker is entitled to any brokerage, finder&#8217;s or
            other fee or commission in connection with the Exchange or the other
            transactions contemplated by this Agreement based upon arrangements made
            by or
            on behalf of MediQuip. </font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>ARTICLE
            VCONDUCT OF BUSINESSES PENDING THE REORGANIZATION</strong></font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            5.01. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Conduct
            of Business by Deep Down Pending the Exchange</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
            Deep
            Down agrees that, between the date of this Agreement and the Effective
            Time,
            except as contemplated by any other provision of this Agreement, unless
            MediQuip
            shall otherwise consent in writing:</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(a)
            </font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">the
            businesses of Deep Down and Deep Down Subsidiaries shall be conducted
            only in,
            and Deep Down and Deep Down Subsidiaries shall not take any action except
            in,
            the ordinary course of business and in a manner consistent with past
            practice;
            and </font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(b)
            </font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Deep
            Down
            shall use its reasonable best efforts to preserve substantially intact
            its
            business organization, to keep available the services of the current
            officers,
            employees and consultants of Deep Down and Deep Down Subsidiaries and
            to
            preserve the current relationships of Deep Down and Deep Down Subsidiaries
            with
            customers, suppliers and other persons with which Deep Down or any Deep
            Down
            Subsidiary has significant business relations. </font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">By
            way of
            amplification and not limitation, except as contemplated by this Agreement,
            neither Deep Down nor any Deep Down Subsidiary shall, between the date
            of this
            Agreement and the Effective Time, directly or indirectly, do, or propose
            to do,
            any of the following without the prior written consent of MediQuip:</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(a)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">amend
            or
            otherwise change its Certificate of Incorporation or By-Laws or equivalent
            organizational documents;</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(b)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">issue,
            sell, pledge, dispose of, grant, encumber, or authorize the issuance,
            sale,
            pledge, disposition, grant or encumbrance of, (i) any shares of its capital
            stock of any class, or any options, warrants, convertible securities
            or other
            rights of any kind to acquire any shares of such capital stock, or any
            other
            ownership interest (including, without limitation, any phantom interest),
            of
            Deep Down or any Deep Down Subsidiary or (ii) any material assets of
            Deep Down
            or any Deep Down Subsidiary, except in the ordinary course of business
            and in a
            manner consistent with past practice;</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(c)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">declare,
            set aside, make or pay any dividend or other distribution, payable in
            cash,
            stock, property or otherwise, with respect to any of its capital
            stock;</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(d)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">reclassify,
            combine, split, subdivide or redeem, purchase or otherwise acquire, directly
            or
            indirectly, any of its capital stock;</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(e)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(i)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">acquire
            (including, without limitation, by Exchange, consolidation, or acquisition
            of
            stock or assets) any interest in any corporation, partnership, other
            business
            organization or any division thereof or any assets, other than acquisitions
            of
            assets in the ordinary course of business consistent with past
            practice;</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(ii)
            </font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">incur
            any
            indebtedness for borrowed money or issue any debt securities or assume,
            guarantee or endorse, or otherwise as an accommodation become responsible
            for,
            the obligations of any person, or make any loans or advances, except
            for
            indebtedness incurred in the ordinary course of business and consistent
            with
            past practice;</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(iii)
            </font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">enter
            into any contract or agreement material to the business, results of operations
            or financial condition of Deep Down and Deep Down Subsidiaries taken
            as a whole
            other than in the ordinary course of business, consistent with past practice;
            or
</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(iv)
            </font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">enter
            into or amend any contract, agreement, commitment or arrangement that,
            if fully
            performed, would not be permitted under this Section 5.01(e);</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(f)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">increase
            the compensation payable or to become payable to its employees, except
            for
            increases in accordance with past practices, or grant any severance or
            termination pay to, or enter into any employment or severance agreement
            with,
            any director or employee of Deep Down or any Deep Down Subsidiary, except
            for
            employment or severance agreements in accordance with past practice,
            or
            establish, adopt, enter into or amend any collective bargaining, bonus,
            profit
            sharing, thrift, compensation, stock option, restricted stock, pension,
            retirement, deferred compensation, employment, termination, severance
            or other
            plan, agreement, trust, fund, policy or arrangement for the benefit of
            any
            director or employee; or</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(g)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">take
            any
            action, other than reasonable and usual actions in the ordinary course
            of
            business and consistent with past practice, with respect to accounting
            policies
            or procedures.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            5.02. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Conduct
            of Business by MediQuip Pending the Exchange</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
            MediQuip agrees that, between the date of this Agreement and the Effective
            Time,
            except as contemplated by any other provision of this Agreement, unless
            Deep
            Down shall otherwise consent in writing (such consent not to be unreasonably
            withheld or delayed): </font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(a)
            </font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">the
            business of the MediQuip and the MediQuip Subsidiaries shall be conducted
            only
            in, and MediQuip and the MediQuip Subsidiaries shall not take any action
            except
            in the ordinary course of business and in a manner consistent with past
            practice; and</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(b)
            </font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">MediQuip
            shall use its reasonable best efforts to preserve substantially intact
            its
            business organization, to keep available the services of the current
            officers,
            employees and consultants of MediQuip and the MediQuip Subsidiaries and
            to
            preserve the current relationships of MediQuip and the MediQuip Subsidiaries
            with customers, suppliers and other persons with which MediQuip or any
            MediQuip
            Subsidiary has significant business relations. </font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">By
            way of
            amplification and not limitation, except as contemplated by this Agreement,
            neither MediQuip nor any MediQuip Subsidiary shall, between the date
            of this
            Agreement and the Effective Time, directly or indirectly, do, or propose
            to do,
            any of the following without the prior written consent of Deep Down (such
            consent not to be unreasonably withheld):</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(a)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">amend
            or
            otherwise change its Certificate of Incorporation or By-Laws or equivalent
            organizational documents;</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(b)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">issue,
            sell, pledge, dispose of, grant, encumber, or authorize the issuance,
            sale,
            pledge, disposition, grant or encumbrance of, (i) any shares of its capital
            stock of any class, or any options, warrants, convertible securities
            or other
            rights of any kind to acquire any shares of such capital stock, or any
            other
            ownership interest (including, without limitation, any phantom interest),
            of
            MediQuip or any MediQuip Subsidiary (except for the issuance of shares
            of
            MediQuip Common Stock issuable pursuant to the MediQuip Stock Options
            outstanding on the date of this Agreement or the issuance in the ordinary
            course
            of business and consistent with past practice, or (ii) any material assets
            of
            MediQuip or any MediQuip Subsidiary, except in the ordinary course of
            business
            and in a manner consistent with past practice;</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(c)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">declare,
            set aside, make or pay any dividend or other distribution, payable in
            cash,
            stock, property or otherwise, with respect to any of its capital
            stock;</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(d)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">reclassify,
            combine, split, subdivide or redeem, purchase or otherwise acquire, directly
            or
            indirectly, any of its capital stock;</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(e)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(i)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">acquire
            (including, without limitation, by Exchange, consolidation, or acquisition
            of
            stock or assets) any interest in any corporation, partnership, other
            business
            organization or any division thereof or any assets, other than acquisitions
            of
            assets in the ordinary course of business consistent with past
            practice;</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(ii)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">incur
            any
            indebtedness for borrowed money or issue any debt securities or assume,
            guarantee or endorse, or otherwise as an accommodation become responsible
            for,
            the obligations of any person, or make any loans or advances, except
            for
            indebtedness incurred in the ordinary course of business and consistent
            with
            past practice;</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(iii)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">enter
            into any contract or agreement material to the business, results of operations
            or financial condition of MediQuip and the MediQuip Subsidiaries taken
            as a
            whole other than in the ordinary course of business, consistent with
            past
            practice; or</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(iv)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">enter
            into or amend any contract, agreement, commitment or arrangement that,
            if fully
            performed, would not be permitted under this Section 5.02(e);</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(f)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">increase
            the compensation payable or to become payable to its officers or employees,
            except for increases in accordance with past practices in salaries or
            wages of
            employees of MediQuip or any MediQuip Subsidiary who are not officers
            of
            MediQuip, or grant any severance or termination pay to, or enter into
            any
            employment or severance agreement with, any director, officer or other
            employee
            of MediQuip or any MediQuip Subsidiary, or establish, adopt, enter into
            or amend
            any collective bargaining, bonus, profit sharing, thrift, compensation,
            stock
            option, restricted stock, pension, retirement, deferred compensation,
            employment, termination, severance or other plan, agreement, trust, fund,
            policy
            or arrangement for the benefit of any director, officer or employee;
            or</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(g)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">take
            any
            action, other than reasonable and usual actions in the ordinary course
            of
            business and consistent with past practice, with respect to accounting
            policies
            or procedures.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>ARTICLE
            VIADDITIONAL AGREEMENTS</strong></font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            6.01. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Filing
            of Form 8-K</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
            Unless
            adequately disclosed in a periodic report filed with the Securities and
            Exchange
            Commission by MediQuip, immediately after the Effective Time, new management
            of
            Deep Down will procure the prompt preparation and file with the Securities
            and
            Exchange Commission appropriate notice describing this transaction on
            Form 8-K
            or other applicable form, and otherwise comply with the provisions of
            the
            Securities Exchange Act of 1934.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            6.02. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Preparation
            of Disclosure Statement</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
            Immediately after the Effective Time, new management of Deep Down will
            procure
            the preparation of a disclosure statement containing the necessary information
            to comply with Rule 15(c)2(11) promulgated by the Securities and Exchange
            Commission pursuant to the Securities Exchange Act of 1934 and file such
            forms
            with one or more firms who are members of the National Association of
            Securities
            Dealers, Inc. (&#8220;NASD&#8221;) and with NASD as are necessary to effect the quotation of
            MediQuip&#8217;s securities in the NASD Electronic Bulletin Board System.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            6.03. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Access
            to Information; Confidentiality</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
            Except
            as required pursuant to any confidentiality agreement or similar agreement
            or
            arrangement to which MediQuip or Deep Down or any of their respective
            subsidiaries is a party or pursuant to applicable Law, from the date
            of this
            Agreement to the Effective Time, MediQuip and Deep Down shall (and shall
            cause
            their respective subsidiaries to): (i) provide to the other (and its
            officers,
            directors, employees, accountants, consultants, legal counsel, agents
            and other
            representatives, collectively, &#8220;Representatives&#8221;) access at reasonable times
            upon prior notice to the officers, employees, agents, properties, offices
            and
            other facilities of the other and its subsidiaries and to the books and
            records
            thereof and (ii) furnish promptly such information concerning the business,
            properties, contracts, assets, liabilities, personnel and other aspects
            of the
            other party and its subsidiaries as the other party or its Representatives
            may
            reasonably request.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            6.04. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Obligations
            of MediQuip</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
            MediQuip shall take all action necessary to cause MediQuip to perform
            its
            obligations under this Agreement and to consummate the Exchange on the
            terms and
            subject to the conditions set forth in this Agreement.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            6.05. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Obligations
            of Shareholder</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
            Shareholder, on behalf of new management of MediQuip, unconditionally
            agree: (i)
            to refrain from the issuance of any securities pursuant to a registration
            statement on Form S-8 for a period of 12 months from and after the Effective
            Time (ii) not to change the number of issued or outstanding shares of
            capital
            stock of MediQuip by a stock split, stock dividend, combination,
            reclassification, reverse stock split, combination or reclassification
            of shares
            or other similar event for a period of 12 months from and after the Effective
            Time, and except as a condition to a listing of common stock on a national
            exchange, in which event the limitation period will be 6 months (iii)
            not to
            issue any equity securities to any person, firm or corporation for any
            purpose
            whatsoever for consideration less than the fair market value applicable
            to the
            nature of the transaction of such securities, and (iv) not to file a
            registration statement with the Securities and Exchange Commission on
            Form SB-2
            or other similar form covering secondary offering of and class of equity
            securities prior to the expiration of 6 months from and after the Effective
            Time.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            6.06. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Application
            to Standard &amp; Poor&#8217;s</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
            New
            management of Deep Down shall promptly make application to the Standard
&amp;
Poor&#8217;s editorial board to approve your corporation for a full description
            in
            Standard &amp; Poor&#8217;s Standard Corporation Manual, Standard &amp; Poor&#8217;s Daily
            News Section, coverage of MediQuip as part of the S&amp;P Market Access Program
            and coverage on Standard &amp; Poor&#8217;s Internet Site, www.advisorinsight.com, as
            well as S&amp;P Marketscope and the S&amp;P Stock Guide database.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            6.06. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Filing
            of Amended Form 8-K</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
            Within
            4 days after the original report on Form 8-K must be filed, new management
            of
            Deep Down will prepare and file with the SEC an amendment to the Form
            8-K
            described in Section 6.02 above that includes the financial statements
            and pro
            forma financial information prepared pursuant to Regulation S-X for the
            periods
            specified in Rule 3.05(b).</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            6.07. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Further
            Action; Consents; Filings</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
            Upon
            the terms and subject to the conditions hereof, each of the parties hereto
            shall
            use its reasonable best efforts to (i) take, or cause to be taken, all
            appropriate action and do, or cause to be done, all things necessary,
            proper or
            advisable under applicable law or otherwise to consummate and make effective
            the
            Exchange and the other transactions contemplated by this Agreement, (ii)
            obtain
            from Governmental Entities any consents, licenses, permits, waivers,
            approvals,
            authorizations or orders required to be obtained or made by MediQuip
            or Deep
            Down or any of their subsidiaries in connection with the authorization,
            execution and delivery of this Agreement and the consummation of the
            Exchange
            and the other transactions contemplated by this Agreement and (iii) make
            all
            necessary filings, and thereafter make any other required submissions,
            with
            respect to this Agreement, the Exchange and the other transactions contemplated
            by this Agreement required under (A) the Exchange Act and the Securities
            Act and
            the rules and regulations thereunder and any other applicable federal
            or state
            securities laws and (B) any other applicable Law. The parties hereto
            shall
            cooperate with each other in connection with the making of all such filings,
            including by providing copies of all such documents to the non-filing
            party and
            its advisors prior to filing and, if requested, by accepting all reasonable
            additions, deletions or changes suggested in connection therewith.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            6.08. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Reorganization
            of Deep Down</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">..
            As
            soon as practicable, but in no event more than 15 days after the execution
            of
            this Agreement Shareholder shall cause SubSea Acquisition Corporation,
            a Texas
            corporation, (&#8220;SubSea&#8221;) to acquire all the issued and outstanding capital stock
            of Deep Down, Inc., a Delaware corporation, for equity securities of
            SubSea
            substantially on the terms set out in the agreement executed by and among
            SubSea, Deep Down and their respective shareholders. At or about the
            time of the
            consummation of the acquisition of Deep Down by SubSea, Shareholder shall
            cause
            SubSea to acquire all the issued and outstanding capital stock of Strategic
            Offshore Services Corporation, a Texas corporation (&#8220;SOS&#8221;), for equity
            securities of SubSea substantially on the terms set out in the agreement
            executed by and among SubSea, SOS and their respective shareholders.
            Following
            the consummation of the acquisition of Deep Down by SubSea and the acquisition
            of SOS by SubSea, SubSea and SOS shall merge with and into Deep Down
            with Deep
            Down as the survivor of the merger as a Delaware corporation. The merger
            shall
            be consummated substantially on the terms set out in the Agreement and
            Plan of
            Merger attached as Exhibit D. The surviving Delaware corporation and
            the
            majority shareholders of the surviving Delaware corporation are the parties
            to
            this Agreement.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            6.09. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Agreement
            to Deliver Shares</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>&#160;</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
            the
            owner of a majority of the shares of Deep Down Securities, Shareholder
            agrees to
            vote his shares of Deep Down Securities in favor of approving this Agreement
            and
            the transactions contemplated hereby and not to approve or support any
            competing
            transaction,</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            6.10. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Plan
            of Exchange</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
            This
            Agreement is intended to constitute a &#8220;plan of reorganization&#8221; within the
            meaning of section 1.368-2(g) of the income tax regulations promulgated
            under
            the Code. From and after the date of this Agreement and until the Effective
            Time, each party hereto shall use its reasonable best efforts to cause
            the
            Exchange to qualify, and will not knowingly take any action, cause any
            action to
            be taken, fail to take any action or cause any action to fail to be taken
            which
            action or failure to act could prevent the Exchange from qualifying,
            as a
            reorganization under the provisions of section 368(a) of the Code. Following
            the
            Effective Time, neither MediQuip nor any of its affiliates shall knowingly
            take
            any action, cause any action to be taken, fail to take any action or
            cause any
            action to fail to be taken, which action or failure to act could cause
            the
            Exchange to fail to qualify as a reorganization under section 368(a)
            of the
            Code.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            6.11. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Board
            of Directors of MediQuip</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
            Immediately after the Effective Date, the present Directors of MediQuip
            shall
            have caused the appointment of the persons designated by the Shareholder,
            to the
            Board of Directors of MediQuip followed by the resignation of all other
            officers
            and directors. In connection with such election, MediQuip shall have
            provided
            its securityholders with an Information Statement pursuant to Section
            14f of the
            Exchange Act and SEC Rule 14f-1.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            6.12. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Public
            Announcements</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
            The
            initial press release relating to this Agreement shall be a joint press
            release
            the text of which has been agreed to by each of MediQuip and Deep
            Down.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            6.13. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Conveyance
            Taxes</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
            MediQuip shall be liable for and shall hold Deep Down and the holders
            of Deep
            Down Securities who are holders of Deep Down Securities immediately prior
            to the
            Effective Time harmless against any real property transfer or gains,
            sales, use,
            transfer, value added, stock transfer or stamp taxes, any transfer, recording
            registration, and other fees, and any similar Taxes which become payable
            in
            connection with the transactions contemplated by this Agreement. The
            parties
            acknowledge that this Section 6.14 is specifically intended to benefit
            the
            holders of Deep Down Securities who are holders of Deep Down Securities
            immediately prior to the Effective Time.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>ARTICLE
            VIICONDITIONS TO THE REORGANIZATION</strong></font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            7.01. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Conditions
            to the Obligations of Each Party</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
            The
            obligations of Deep Down, MediQuip and Shareholder to consummate the
            Exchange
            are subject to the satisfaction or waiver (where permissible) of the
            following
            conditions:</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(a)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">this
            Agreement and the issuance of the Exchange Consideration pursuant to
            the terms
            of the Exchange, as the case may be, contemplated hereby shall have been
            approved and adopted by the requisite affirmative vote of (i) the shareholders
            of Deep Down in accordance with the General Corporation Law of Delaware
            and Deep
            Down&#8217;s Certificate of Incorporation and (ii) the board of directors of MediQuip
            in accordance with the rules of the OTC, the Nevada Revised Statutes
            and
            MediQuip&#8217;s Articles of Incorporation;</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(b)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">no
            Governmental Entity or court of competent jurisdiction located or having
            jurisdiction in the United States shall have enacted, issued, promulgated,
            enforced or entered any law, rule, regulation, judgment, decree, executive
            order
            or award (an &#8220;Order&#8221;) which is then in effect and has the effect of making the
            Exchange illegal or otherwise prohibiting consummation of the Exchange;
            and</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(c)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">all
            consents, approvals and authorizations legally required to be obtained
            to
            consummate the Exchange shall have been obtained from and made with all
            Governmental Entities.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            7.02. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Conditions
            to the Obligations of MediQuip </u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
            The
            obligations of MediQuip to consummate the Exchange are subject to the
            satisfaction or waiver (where permissible) of the following additional
            conditions:</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(a)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">to
            the
            best of Deep Down&#8217;s knowledge and belief, each of the representations and
            warranties of Deep Down contained in this Agreement shall be true and
            correct as
            of the Effective Time as though made on and as of the Effective Time,
            except
            where failure to be so true and correct would not have a Deep Down Material
            Adverse Effect, and except that those representations and warranties
            which
            address matters only as of a particular date shall remain true and correct
            as of
            such date, except where failure to be so true and correct would not have
            a Deep
            Down Material Adverse Effect, and MediQuip shall have received a certificate
            of
            the Managing Director of Deep Down substantially in the form of Exhibit
            F to
            such effect;</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(b)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Deep
            Down
            shall have performed or complied with all agreements and covenants required
            by
            this Agreement to be performed or complied with by it on or prior to
            the
            Effective Time, except where the failure to so comply would not have
            a Deep Down
            Material Adverse Effect, and MediQuip shall have received a certificate
            of the
            Managing Director of Deep Down substantially in the form of Exhibit F;
            </font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(c)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">MediQuip
            shall have received an investment representation from each Deep Down
            Shareholder
            substantially in the form of Exhibit G.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(d)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
            consummation of the transactions contemplated by this Agreement shall
            have been
            approved at or before the Closing by the affirmative vote of the holders
            of not
            less than a majority of Deep Down&#8217;s common stock, and shall have received any
            other shareholder approval necessary to the consummation of the transactions
            contemplated by this Agreement.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(e)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">MediQuip
            shall have received on the Closing Date an opinion, dated the Closing
            Date, of
            counsel for Deep Down in form and substance satisfactory to counsel for
            the
            MediQuip, to the effect that:</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(i)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Deep
            Down
            is a corporation validly existing and in good standing under the laws
            of its
            jurisdiction of organization with all requisite power and authority to
            own,
            lease, license, and use their respective properties and assets and to
            carry on
            the business in which each is now engaged.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(ii)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">All
            necessary proceedings of Deep Down have been duly taken to authorize
            the
            execution, delivery, and performance of this Agreement by Deep
            Down.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(iii)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Deep
            Down
            has all requisite corporate power and authority to execute, deliver,
            and perform
            this Agreement, and this Agreement has been duly authorized, executed,
            and
            delivered by Deep Down, constitutes the legal, valid, and binding obligation
            of
            Deep Down, and (subject to applicable bankruptcy, insolvency, and other
            laws
            affecting the enforceability of creditors&#8217; rights generally) is enforceable as
            to Deep Down in accordance with its terms.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(iv)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
            execution, delivery, and performance of this Agreement by Deep Down will
            not
            violate or result in a breach of any term of Deep Down&#8217;s charter document or
            by-laws; and the execution, delivery, and performance of this Agreement
            by Deep
            Down will not violate, result in a breach of, conflict with, or (with
            or without
            the giving of notice or the passage of time or both) entitle any party
            to
            terminate or call a default under any terms of any agreement to which
            Deep Down
            are a party.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(v)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">After
            reasonable investigation, such counsel has no actual knowledge of any
            consent,
            authorization, approval, order, license, certificate, or permit of or
            from, or
            declaration or filing with, any federal, state, local, or other governmental
            authority or any court or other tribunal which is required of Deep Down
            for the
            execution, delivery, or performance of this Agreement by Deep Down.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(vi)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">After
            reasonable investigation, such counsel has no actual knowledge of any
            litigation, arbitration, governmental or other proceeding (formal or
            informal),
            or investigation pending or threatened with respect to Deep Down, or
            any of its
            business, properties, or assets that (i) can reasonably be expected to
            result in
            any materially adverse change in the financial condition, results of
            operations,
            business, properties, liabilities, or future prospects of Deep Down taken
            as a
            whole or (ii) seeks to prohibit or otherwise challenge the consummation
            of the
            transactions contemplated by this Agreement, or to obtain substantial
            damages
            with respect thereto, except as disclosed in this Agreement.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(vii)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
            consummation of the transactions contemplated by this Agreement has been
            approved at or before the Closing by the affirmative vote of the holders
            of not
            less than a majority of Deep Down&#8217;s common stock, and has received any other
            shareholder approval necessary to the consummation of the transactions
            contemplated by this Agreement.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
            giving
            such opinions counsel may state that their opinion and belief are based
            upon
            their participation in the preparation of the Agreement and any amendments
            or
            supplements thereto and documents incorporated therein by reference and
            review
            and discussion of the contents thereof, but is without independent check
            or
            verification except as specified. </font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            7.03. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Conditions
            to the Obligations of Deep Down</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
            The
            obligations of Deep Down to consummate the Exchange are subject to the
            satisfaction or waiver (where permissible) of the following additional
            conditions:</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(a)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">each
            of
            the representations and warranties of MediQuip contained in this Agreement
            shall
            be true and correct as of the Effective Time, as though made on and as
            of the
            Effective Time, except where the failure to be so true and correct would
            not
            have a MediQuip Material Adverse Effect, and except that those representations
            and warranties which address matters only as of a particular date shall
            remain
            true and correct as of such date, except where the failure to be so true
            and
            correct would not have a MediQuip Material Adverse Effect, and Deep Down
            shall
            have received a certificate of the Chief Executive Officer or Chief Financial
            Officer of MediQuip substantially in the form of Exhibit E to such effect;
            </font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(b)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">MediQuip
            shall have performed or complied with all agreements and covenants required
            by
            this Agreement to be performed or complied with by it on or prior to
            the
            Effective Time, except where the failure to comply would not have a MediQuip
            Material Adverse Effect, and Deep Down shall have received a certificate
            of the
            Chief Executive Officer or Chief Financial Officer of MediQuip substantially
            in
            the form of Exhibit E to that effect;</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(c)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Deep
            Down
            shall have received on the Closing Date an opinion, dated the Closing
            Date, of
            Sonfield &amp; Sonfield, counsel for the MediQuip in form and substance
            satisfactory to counsel for Deep Down, to the effect that:</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(i)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">MediQuip
            is a corporations validly existing and in good standing under the laws
            of the
            States of Nevada with all requisite power and authority to own, lease,
            license,
            and use their respective properties and assets and to carry on the business
            in
            which each is now engaged.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(ii)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">All
            necessary proceedings of MediQuip have been duly taken to authorize the
            execution, delivery, and performance of this Agreement by MediQuip.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(iii)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">MediQuip
            have all requisite corporate power and authority to execute, deliver,
            and
            perform this Agreement, and this Agreement has been duly authorized,
            executed,
            and delivered by MediQuip, constitutes the legal, valid, and binding
            obligation
            of MediQuip, and (subject to applicable bankruptcy, insolvency, and other
            laws
            affecting the enforceability of creditors&#8217; rights generally) is enforceable as
            to MediQuip in accordance with its terms.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(iv)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
            execution, delivery, and performance of this Agreement by MediQuip will
            not
            violate or result in a breach of any term of MediQuip&#8217;s certificate of
            incorporation or by-laws; and the execution, delivery, and performance
            of this
            Agreement by MediQuip will not violate, result in a breach of, conflict
            with, or
            (with or without the giving of notice or the passage of time or both)
            entitle
            any party to terminate or call a default under any terms of any agreement
            to
            which MediQuip is a party.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(v)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">After
            reasonable investigation, such counsel has no actual knowledge of any
            consent,
            authorization, approval, order, license, certificate, or permit of or
            from, or
            declaration or filing with, any federal, state, local, or other governmental
            authority or any court or other tribunal which is required of MediQuip
            for the
            execution, delivery, or performance of this Agreement by MediQuip.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(vi)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">After
            reasonable investigation, such counsel has no actual knowledge of any
            litigation, arbitration, governmental or other proceeding (formal or
            informal),
            or investigation pending or threatened with respect to MediQuip, or any
            of their
            respective business, properties, or assets that (i) can reasonably be
            expected
            to result in any materially adverse change in the financial condition,
            results
            of operations, business, properties, liabilities, or future prospects
            of
            MediQuip taken as a whole or (ii) seeks to prohibit or otherwise challenge
            the
            consummation of the transactions contemplated by this Agreement, or to
            obtain
            substantial damages with respect thereto, except as disclosed in this
            Agreement.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(vii)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">the
            Shares to be issued by the MediQuip hereunder have been duly authorized
            and,
            when issued and when delivered to Deep Down Shareholders as provided
            by this
            Agreement, will be validly issued, fully paid and non-assessable, and
            the
            issuance of such Shares will not be subject to any preemptive or similar
            rights;</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
            giving
            such opinions Sonfield &amp; Sonfield may state that their opinion and belief
            are based upon their participation in the preparation of the Agreement
            and any
            amendments or supplements thereto and documents incorporated therein
            by
            reference and review and discussion of the contents thereof, but is without
            independent check or verification except as specified. </font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>ARTICLE
            VIIITERMINATION, AMENDMENT AND WAIVER</strong></font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            8.01. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Termination</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
            This
            Agreement may be terminated and the Exchange and the other transactions
            contemplated by this Agreement may be abandoned at any time prior to
            the
            Effective Time, notwithstanding any requisite approval and adoption of
            this
            Agreement and the transactions contemplated by this Agreement, as
            follows:</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(a)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">by
            mutual
            written consent duly authorized by the Boards of Directors of each of
            MediQuip
            and Deep Down;</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(b)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">by
            either
            MediQuip or Deep Down if the Effective Time shall not have occurred on
            or before
            December 14, 2006 provided, however, that the right to terminate this
            Agreement
            under this Section 8.01(b) shall not be available to any party whose
            failure to
            fulfill any obligation under this Agreement has been the cause of, or
            resulted
            in, the failure of the Effective Time to occur on or before such date;
            </font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(c)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">there
            shall be any Order which is final and non-appealable preventing the consummation
            of the Exchange; </font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(d)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">by
            MediQuip upon a breach of any material representation, warranty, covenant
            or
            agreement on the part of Deep Down set forth in this Agreement, or if
            any
            representation or warranty of Deep Down shall have become untrue, in
            either case
            such that the conditions set forth in Section 7.02(a) and Section 7.02(b)
            would
            not be satisfied (&#8220;Terminating Deep Down Breach&#8221;); provided, however, that, if
            such Terminating Deep Down Breach is curable by Deep Down through the
            exercise
            of its best efforts and for so long as Deep Down continues to exercise
            such best
            efforts, MediQuip may not terminate this Agreement under this Section
            8.01(d).</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(e)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">by
            Deep
            Down upon a breach of any material representation, warranty, covenant
            or
            agreement on the part of MediQuip set forth in this Agreement, or if
            any
            representation or warranty of MediQuip shall have become untrue, in either
            case
            such that the conditions set forth in Section 7.03(a) and Section 7.03(b)
            would
            not be satisfied (&#8220;Terminating MediQuip Breach&#8221;); provided, however, that, if
            such Terminating Deep Down Breach is curable by MediQuip through the
            exercise of
            its best efforts and for so long as MediQuip continues to exercise such
            best
            efforts, Deep Down may not terminate this Agreement under this Section
            8.01(e).</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            8.02. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Effect
            of Termination</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
            Except
            as provided in Section 9.01, in the event of termination of this Agreement
            pursuant to Section 8.01, this Agreement shall forthwith become void,
            there
            shall be no liability under this Agreement on the part of MediQuip or
            Deep Down
            or any of their respective officers or directors, and all rights and
            obligations
            of each party hereto shall cease, provided, however, that nothing herein
            shall
            relieve any party from liability for the willful breach of any of its
            representations, warranties, covenants or agreements set forth in this
            Agreement.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            8.03. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Amendment</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
            This
            Agreement may be amended by the parties hereto by action taken by or
            on behalf
            of their respective Boards of Directors at any time prior to the Effective
            Time;
            provided, however, that, after the approval of this Agreement by the
            shareholders of Deep Down, no amendment may be made which would reduce
            the
            amount or change the type of consideration into which each Share shall
            be
            converted upon consummation of the Exchange. This Agreement may not be
            amended
            except by an instrument in writing signed by the parties hereto.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            8.04. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Waiver</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
            At any
            time prior to the Effective Time, any party hereto may (a) extend the
            time for
            the performance of any obligation or other act of any other party hereto,
            (b)
            waive any inaccuracy in the representations and warranties contained
            herein or
            in any document delivered pursuant hereto, and (c) waive compliance with
            any
            agreement or condition contained herein. Any such extension or waiver
            shall be
            valid if set forth in an instrument in writing signed by the party or
            parties to
            be bound thereby.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            8.05. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Expenses</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
            All
            Expenses (as defined below) incurred in connection with this Agreement
            and the
            transactions contemplated by this Agreement shall be paid by the party
            incurring
            such expenses, whether or not the Exchange or any other transaction is
            consummated. &#8220;Expenses&#8221; as used in this Agreement shall include all reasonable
            out-of-pocket expenses (including, without limitation, all fees and expenses
            of
            counsel, accountants, investment bankers, experts and consultants to
            a party
            hereto and its affiliates) incurred by a party or on its behalf in connection
            with or related to the authorization, preparation, negotiation, execution
            and
            performance of this Agreement and all other matters related to the closing
            of
            the Exchange and the other transactions contemplated by this
            Agreement.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>ARTICLE
            IX</strong></font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>GENERAL
            PROVISIONS</strong></font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            9.01. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Non-Survival
            of Representations, Warranties and Agreements</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
            The
            representations, warranties and agreements in this Agreement and in any
            certificate delivered pursuant hereto shall terminate at the Effective
            Time or
            upon the termination of this Agreement pursuant to Section 8.01, as the
            case may
            be, except that the agreements set forth in Articles I and II and Sections
            6.01,
            6.02, 6.05, 6.06 and this Article IX shall survive the Effective Time
            and those
            set forth in Sections 8.02 and 8.05 and this Article IX shall survive
            termination.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            9.02. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Notices</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
            All
            notices, requests, claims, demands and other communications hereunder
            shall be
            in writing and shall be given (and shall be deemed to have been duly
            given upon
            receipt) by delivery in person, by cable, telecopy, facsimile, telegram
            or telex
            or by registered or certified mail (postage prepaid, return receipt requested)
            to the respective parties at the following addresses (or at such other
            address
            for a party as shall be specified in a notice given in accordance with
            this
            Section 9.02):</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">if
            to
            MediQuip:</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 108pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">MediQuip,
            Inc.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 108pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Kelsey
            House, 77 High Street</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 108pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Beckenham
            Kent BR3 1AN</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 108pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Facsimile:
            011 44 208 658 9870</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>with
            a copy to (which shall not constitute notice to such party)</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">:</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 108pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 108pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Loughran
            &amp; Co.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 108pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">38
            Hertford Street</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 108pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">London
            W1Y 7TG</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 108pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Attn:
            James A. Loughran, Esq.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 108pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Facsimile:
            (44)</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
            207 355
            4975</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">if
            to
            Deep Down:</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 108pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Deep
            Down, Inc.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">15473
            East Freeway</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 108pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Channelview,
            Delaware 77530</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 108pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Attn:
            John C. Siedhoff, CFO</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 108pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Facsimile:
            (281) 862-2522</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>with
            a copy to (which shall not constitute notice to Deep Down)</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">:</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 108pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 108pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Robert
            L.
            Sonfield, Jr., Esq.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 108pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Sonfield
            &amp; Sonfield</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 108pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">770
            South
            Post Oak Lane, Suite 435</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 108pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Houston,
            Texas 77056-1937</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 108pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Facsimile:
            (713) 877-1547</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            9.03. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Certain
            Definitions</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
            For
            purposes of this Agreement, the term:</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(a)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8220;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>affiliate</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8221;
of
            a
            specified person means a person who directly or indirectly through one
            or more
            intermediaries controls, is controlled by, or is under common control
            with such
            specified person;</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(b)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8220;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>control</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8221;
            (including the terms &#8220;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>controlled
            by</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8221;
and
            &#8220;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>under
            common control with</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8221;)
            means
            the possession, directly or indirectly or as trustee or executor, of
            the power
            to direct or cause the direction of the management and policies of a
            person,
            whether through the ownership of voting securities, as trustee or executor,
            by
            contract or credit arrangement or otherwise; </font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(c)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8220;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>knowledge</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8221;
means,
            with respect to any matter in question, that the executive officers of
            Deep Down
            or MediQuip, as the case may be, have actual knowledge of such matter;
            </font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(d)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8220;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>person</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8221;
means
            an individual, corporation, partnership, limited partnership, syndicate,
            person
            (including, without limitation, a &#8220;person&#8221; as defined in section 13(d)(3) of the
            Exchange Act), trust, association or entity or government, political
            subdivision, agency or instrumentality of a government; and</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(e)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8220;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>subsidiary</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8221;
or
            &#8220;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>subsidiaries</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8221;
of
            any
            person means any corporation, partnership, joint venture or other legal
            entity
            of which such person (either alone or through or together with any other
            subsidiary) owns, directly or indirectly, more than 50% of the stock
            or other
            equity interests, the holders of which are generally entitled to vote
            for the
            election of the board of directors or other governing body of such corporation
            or other legal entity.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            9.04. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Severability</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
            If any
            term or other provision of this Agreement is invalid, illegal or incapable
            of
            being enforced by any rule of Law or public policy, all other conditions
            and
            provisions of this Agreement shall nevertheless remain in full force
            and effect
            so long as the economic or legal substance of the transactions contemplated
            by
            this Agreement is not affected in any manner materially adverse to any
            party.
            Upon such determination that any term or other provision is invalid,
            illegal or
            incapable of being enforced, the parties hereto shall negotiate in good
            faith to
            modify this Agreement so as to effect the original intent of the parties
            as
            closely as possible in a mutually acceptable manner in order that the
            transactions contemplated by this Agreement be consummated as originally
            contemplated to the fullest extent possible.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            9.05. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Assignment;
            Binding Effect; Benefit</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
            Neither
            this Agreement nor any of the rights, interests or obligations hereunder
            shall
            be assigned by any of the parties hereto (whether by operation of law
            or
            otherwise) without the prior written consent of the other parties. Subject
            to
            the preceding sentence, this Agreement shall be binding upon and shall
            inure to
            the benefit of the parties hereto and their respective successors and
            assigns.
</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            9.06. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Incorporation
            of Exhibits</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
            Deep
            Down Disclosure Schedule, the MediQuip Disclosure Schedule and all Exhibits
            attached hereto and referred to herein are hereby incorporated herein
            and made a
            part hereof for all purposes as if fully set forth herein.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            9.07. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Specific
            Performance</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
            The
            parties hereto agree that irreparable damage would occur in the event
            any
            provision of this Agreement was not performed in accordance with the
            terms
            hereof and that the parties shall be entitled to specific performance
            of the
            terms hereof, in addition to any other remedy at law or in equity.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
            9.08. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Governing
            Law; Forum</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
            This
            Agreement shall be governed by, and construed in accordance with, the
            laws of
            the State of Delaware.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
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            9.09. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Headings</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
            The
            descriptive headings contained in this Agreement are included for convenience
            of
            reference only and shall not affect in any way the meaning or interpretation
            of
            this Agreement.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECTION
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            This
            Agreement may be executed and delivered (including by facsimile transmission)
            in
            one or more counterparts, and by the different parties hereto in separate
            counterparts, each of which when executed and delivered shall be deemed
            to be an
            original but all of which taken together shall constitute one and the
            same
            agreement.</font></div>
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            9.11. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Entire
            Agreement</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
            This
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            the
            parties with respect to the subject matter hereof and supersede all prior
            agreements and understandings among the parties with respect thereto.
            No
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            be binding
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            hereto.
</font></div>
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            REMAINDER OF THIS PAGE INTENIONALLY LEFT BLANK</font></div><br>
          <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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            AND PLAN OF REORGANIZATION</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
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Form 8K 12.15.06
SECURITIES
        AND EXCHANGE COMMISSION
Washington,
        D.C. 20549
____________________________________________________
FORM
        8-K
CURRENT
        REPORT
PURSUANT
        TO SECTION 13 OR 15 (D)
of
        the
SECURITIES
        EXCHANGE ACT OF 1934
Date
        of
        Report (Date of Earliest Event Reported) November 14, 2006
____________________________________________________
DEEP
        DOWN INC.
(formerly
        Mediquip Holdings, Inc.)
(Exact
        name of registrant as specified in its charter)
Nevada
(formerly
        Delaware)
(State
        or
        other jurisdiction of incorporation or organization)
75-2263732
(IRS
        Employer Identification Number)
15473
        East Freeway
Channelview,
        Texas 77530
(Address
        of principal executive offices)
Ronald
        E.
        Smith, President
Deep
        Down, Inc.
15473
        East Freeway
Channelview,
        Texas 77530
(Name
        and
        address of agent for service)
(281)
        862-2201
(Telephone
        number, including area code of agent for service)
SECTION
        8 - OTHER EVENTS
ITEM
        8.01 OTHER EVENTS.
Effective
        December 14, 2006 the Company consummated an Agreement and Plan of
        Reorganization with Deep Down, Inc., ("Deep Down") a Delaware corporation, that
        provides for the acquisition of Deep Down by MediQuip Holdings, Inc.
        ("Mediquip"). Deep Down was a privately-held company that immediately prior to
        consummation of the Agreement with MediQuip combined with SubSea Acquisition
        Corporation and Strategic Offshore Services Corporation. Deep Down specializes
        in the provision of installation management, engineering services, support
        services and storage management services for the subsea controls, umbilicals
        & pipeline industries offshore. Deep Down is an umbilical and flexible pipe
        installation engineering and installation management company. They also
        fabricate component parts for subsea distribution systems and assemblies
        that
        specialize in the development of offshore subsea fields and tie backs. These
        items include umbilicals, flowlines, distribution systems, pipeline
        terminations, controls, winches, and launch and retrieval systems, among
        others.
        They provide these services from the initial field conception phase, thru
        manufacturing, site integration testing, installation, topsides connections,
        and
        the final commissioning of a project. Their products and services serve the
        offshore industry and are used in deep-water exploration and production of
        oil
        and gas. As a result of the acquisition, the shareholders of Deep Down will
        own
        a majority of the voting stock of MediQuip, which changed its name to Deep
        Down,
        Inc. The acquisition did not require the approval of shareholders of
        MediQuip.
Under
        the
        Agreement and Plan of Reorganization, officers and directors of MediQuip
        resigned their posts. Robert E. Chamberlain, Jr. was appointed Chairman and
        director; Ronald E. Smith was appointed President, Chief Executive Officer
        and
        Director; John C. Siedhoff was appointed Chief Financial Officer, Treasurer;
        and
        director; Daniel L. Ritz, Jr. was appointed director; and Mary L. Budrunas
        was
        appointed Secretary.
Because
        of the change in ownership and the composition of the board upon completion
        of
        the acquisition, there was a change in control of MediQuip.
ITEM
        5. CORPORATE GOVERNANCE AND MANAGEMENT
ITEM
        5.02 DEPARTURE OF DIRECTORS OR PRINCIPAL OFFICERS; ELECTION OF DIRECTORS;
        APPOINTMENT OF PRINCIPAL OFFICERS
On
        the
        14th day of December, 2006 the Board of Directors of Mediquip Holdings, Inc.,
        a
        Nevada corporation (the "Corporation") resolved to elect new Directors and
        Officers of the Corporation. Effective the 15th day of December, 2006 Ronald
        E.
        Smith, Robert E. Chamberlain, Jr., John Siedhoff, and Daniel L. Ritz, Jr.
        will
        serve as the new Directors to fill the unexpired term of the former Directors,
        David Francis and Steve O'Toole, until their respective successor is elected.
        Effective the 15th The Corporation elected Ronald E. Smith to serve as President
        and Chief Executive Officer, John Siedhoff to serve as Chief Financial Officer
        and Treasurer, and Mary L. Budrunas to serve as Secretary of the
        Corporation.
SECTION
        3 - SECURITIES AND TRADING MARKETS
ITEM
        3.02 - UNREGISTERED SALES OF EQUITY SECURITIES
In
        connection with the Agreement and Plan of Reorganization described in the
        preceding footnote, the company issued the following equity securities to
        accredited investors in reliance on the exemption from registration contained
        in
        Section 4(2) and 4(6) of the Securities Act of 1933 as well as Rule 506 of
        Regulation D promulgated thereunder:
1.
75,000,000
        shares of Common Stock
2.
5,000
        shares of Series D Redeemable Convertible Preferred Stock
3.
5,000
        shares of Series E Redeemable Exchangeable Preferred Stock
4.
3,000
        shares of Series F Redeemable Convertible Preferred Stock
5.
1,000
        shares of Series G Redeemable Exchangeable Preferred Stock
Exhibits
Exhibit
        A
        - Agreement and Plan of Reorganization with Deep among MediQuip Holdings,
        Inc.,
        Down, Inc., a Delaware corporation, and the majority shareholders of Deep
        Down,
        Inc. dated November 22, 2006 (without Exhibits)
SIGNATURE
Pursuant
        to the requirements of the Securities Exchange Act of 1934, the registrant
        has
        duly caused this report to be signed on its behalf by the undersigned hereunto
        duly authorized.
MEDIQUIP
                  HOLDINGS, INC.
Date: December
                  14, 2006
By:
/s/ David
                  Francis
David
                  Francis, President
EXHIBIT
        A
AGREEMENT
        AND PLAN OF REORGANIZATION AMONG MEDIQUIP HOLDINGS, INC.
DEEP
        DOWN
        INC., AND THE MAJORITY SHAREHOLDERS OF DEEP DOWN INC.
AGREEMENT
            AND PLAN OF REORGANIZATION
among
MEDIQUIP
            HOLDINGS, INC.
DEEP
            DOWN, INC.
and
THE
            MAJORITY SHAREHOLDERS OF DEEP DOWN, INC.
Dated
            as of November 22, 2006
TABLE
            OF CONTENTS
PAGE
ARTICLE
            I THE EXCHANGE
SECTION
            1.01. The Exchange
SECTION
            1.02. Effective Time; Closing
SECTION
            1.03. Effect of the Exchange
SECTION
            1.04. Directors and Officers
ARTICLE
            II DELIVERY OF SECURITIES; EXCHANGE OF CERTIFICATES
SECTION
            2.01. Delivery of Securities
SECTION
            2.02. Exchange of Certificates
SECTION
            2.03. Stock Transfer Books
ARTICLE
            III REPRESENTATIONS AND WARRANTIES OF THE COMPANY
SECTION
            3.01. Organization and Qualification; Subsidiaries
SECTION
            3.02. Certificate of Incorporation and By-Laws
SECTION
            3.03. Capitalization
SECTION
            3.04. Authority Relative to This Agreement
SECTION
            3.05. No Conflict; Required Filings and Consents
SECTION
            3.06. Permits; Compliance; Deep Down Products; Regulation
SECTION
            3.07. Absence of Certain Changes or Events
SECTION
            3.08. Absence of Litigation
SECTION
            3.09. Employee Benefit Plans; Labor Matters
SECTION
            3.10. Contracts
SECTION
            3.11. Environmental Matters
SECTION
            3.12. Trademarks, Patents and Copyrights
SECTION
            3.13. Taxes
SECTION
            3.14. State Takeover Statutes
SECTION
            3.15. Brokers
ARTICLE
            IV REPRESENTATIONS AND WARRANTIES OF MEDIQUIP
SECTION
            4.01. Organization and Qualification; Subsidiaries
SECTION
            4.02. Certificate of Incorporation and By-Laws
SECTION
            4.03. Capitalization
SECTION
            4.04. Authority Relative to This Agreement
SECTION
            4.05. No Conflict; Required Filings and Consents
SECTION
            4.06. Permits; Compliance
SECTION
            4.07. Stock Option Plan
SECTION
            4.08. Absence of Certain Changes or Events
SECTION
            4.09. Absence of Litigation
SECTION
            4.10. Employee Benefit Plans
SECTION
            4.11. Contracts
SECTION
            4.12. Environmental Matters
SECTION
            4.13. Trademarks, Patents and Copyrights
SECTION
            4.14. Taxes
SECTION
            4.15. Accounting and Tax Matters
SECTION
            4.16. Brokers
ARTICLE
            V CONDUCT OF BUSINESSES PENDING THE REORGANIZATION
SECTION
            5.01. Conduct of Business by Deep Down Pending the Exchange
SECTION
            5.02. Conduct of Business by MediQuip Pending the Exchange
ARTICLE
            VI ADDITIONAL AGREEMENTS
SECTION
            6.01. Filing of Form 8-K
SECTION
            6.02. Preparation of Disclosure Statement
SECTION
            6.03. Access to Information; Confidentiality
SECTION
            6.04. Obligations of MediQuip
SECTION
            6.05. Obligations of Securityholder
SECTION
            6.06. Application to Standard & Poor's
SECTION
            6.06. Filing of Amended Form 8-K
SECTION
            6.07. Further Action; Consents; Filings
SECTION
            6.08. Reorganization of Deep Down
SECTION
            6.09. Agreement to Deliver Shares
SECTION
            6.10. Plan of Exchange
SECTION
            6.11. Board of Directors of MediQuip
SECTION
            6.12. Public Announcements
SECTION
            6.13. Conveyance Taxes
ARTICLE
            VII CONDITIONS TO THE REORGANIZATION
SECTION
            7.01. Conditions to the Obligations of Each Party
SECTION
            7.02. Conditions to the Obligations of MediQuip
SECTION
            7.03. Conditions to the Obligations of Deep Down
ARTICLE
            VIII TERMINATION, AMENDMENT AND WAIVER
SECTION
            8.01. Termination
SECTION
            8.02. Effect of Termination
SECTION
            8.03. Amendment
SECTION
            8.04. Waiver
SECTION
            8.05. Expenses
ARTICLE
            IX
GENERAL
            PROVISIONS
SECTION
            9.01. Non-Survival of Representations, Warranties and Agreements
SECTION
            9.02. Notices
SECTION
            9.03. Certain Definitions
SECTION
            9.04. Severability
SECTION
            9.05. Assignment; Binding Effect; Benefit
SECTION
            9.06. Incorporation of Exhibits
SECTION
            9.07. Specific Performance
SECTION
            9.08. Governing Law; Forum
SECTION
            9.09. Headings
SECTION
            9.10. Counterparts
SECTION
            9.11. Entire Agreement
EXHIBITS
A
            -
            Certificates to be Exchanged
B
            -
            Material Contracts of Deep Down
C
            -
            Material Contracts of MediQuip
D
            - Form
            of Merger Agreement among SubSea, SOS and Deep Down
E
            - Form
            of Officer's Certificate of MediQuip concerning accuracy
F
            - Form
            of Officer's Certificate of Deep Down concerning accuracy
G
            - Form
            of Investment Agreement
H
            -
            Exceptions to Representations and Warranties of Deep Down
AGREEMENT
            AND PLAN OF REORGANIZATION
AGREEMENT
            AND PLAN OF REORGANIZATION
dated as
            of November 22, 2006 (this "Agreement") among MEDIQUIP HOLDINGS, INC., a Nevada
            corporation ("MediQuip"), DEEP DOWN, INC., a Delaware corporation (formerly
            SubSea Acquisition Corporation, a Texas corporation ) ("Deep Down") and the
            undersigned majority securityholders of Deep Down (collectively, the
            "Shareholder").
W
            I T N E S S E T H
WHEREAS,
            upon the terms and subject to the conditions of this Agreement, all
            securityholders of Deep Down will exchange all of the shares of Deep
            Down's
            common stock for a specified number of shares of MediQuip's common stock to be
            issued and MediQuip will acquire all of the issued and outstanding securities
            of
            Deep Down, making Deep Down a wholly-owned subsidiary of MediQuip;
WHEREAS,
            the Exchange shall qualify as a transaction in securities exempt from
            registration or qualification under the Securities Act of 1933, as amended,
            and
            under the applicable securities laws of each state or jurisdiction where
            securityholders of Deep Down reside;
WHEREAS,
            for federal income tax purposes, the Exchange is intended to qualify
            as a
            reorganization under the provisions of section 368(a)(1)(B) of the United
            States
            Internal Revenue Code of 1986, as amended (the "Code"); and
NOW,
            THEREFORE, in consideration of the foregoing and the mutual covenants
            and
            agreements herein contained, and intending to be legally bound hereby,
            MediQuip,
            Deep Down and Shareholder hereby agree as follows:
ARTICLE
            ITHE EXCHANGE
SECTION
            1.01.
The
            Exchange
.
            Upon
            the terms and subject to the conditions set forth in Article VII, at
            the
            Effective Time (as defined below in Section 1.02), as a result of the
            Exchange,
            Deep Down will become a wholly owned subsidiary of MediQuip.
SECTION
            1.02.
Effective
            Time; Closing
.
            As
            promptly as practicable and in no event later than the 14
th
day of
            December, 2006 and following the satisfaction or, if permissible, waiver
            of the
            conditions set forth in Article VII (or such other date as may be agreed
            in
            writing by each of the parties hereto), the parties hereto shall cause
            the
            Exchange to be consummated by Shareholder delivering to MediQuip, or
            its
            representatives, the certificates representing all of the outstanding
            Deep Down
            Securities (as defined below in Section 2.01 (c)), duly endorsed (or
            with duly
            executed stock powers) so as to make MediQuip the sole owner thereof
            free and
            clear of all claims and encumbrances except as specifically assumed by
            MediQuip.
            The term "Effective Time" means the date and time of the Closing (or such later
            time as may be agreed in writing by each of the parties hereto) to be
            held at
            the offices of Sonfield & Sonfield, Houston, Texas (or such other place as
            the parties may agree).
SECTION
            1.03.
Effect
            of the Exchange
.
            At the
            Effective Time, the effect of the Exchange shall be Deep Down becoming
            a wholly
            owned subsidiary of MediQuip.
SECTION
            1.04.
Directors
            and Officers
.
            The
            initial officers and directors of MediQuip shall be the persons designated
            by
            Deep Down immediately prior to the Effective Time, in each case until
            their
            respective successors are duly elected or appointed and qualified. In
            connection
            with such election, MediQuip shall have provided its securityholders
            with an
            Information Statement pursuant to Section 14f of the Exchange Act and
            Securities
            Exchange Commission ("SEC") Rule 14f-1.
ARTICLE
            IIDELIVERY OF SECURITIES; EXCHANGE OF CERTIFICATES
SECTION
            2.01.
Delivery
            of Securities
.
            At the
            Effective Time, by virtue of the Exchange:
(a)
(i)
            75,000,000 shares of common stock, par value $0.001 per share, of MediQuip
            (the
"MediQuip Common Stock") shall be issued in exchange for all outstanding shares
            of common stock of Deep Down (the "Deep Down Common Stock"),(ii) 10,000,000
            shares have been reserved for issuance in connection with the Private
            Offering
            of Common stock pursuant to the Private Placement Memorandum (iii) 5,000
            shares
            of Series D Redeemable Convertible Preferred Stock and 3,000 shares of
            Series F
            Redeemable Convertible Preferred Stock of Mediquip will be exchanged
            for a like
            number and designation of Redeemable Convertible Preferred Stock of Deep
            Down
            issued and outstanding immediately prior to the Effective Time, except
            the
            conversion price will be reduced from $1.45 per share to $0.1933 per
            share, (iv)
            5,000 shares of Series E Redeemable Exchangeable Preferred Stock and
            1,000
            shares of Series G Redeemable Exchangeable Preferred Stock will be exchanged
            for
            a like number and designation of Redeemable Exchangeable Preferred Stock
            of Deep
            Down issued and outstanding immediately prior to the Effective Time.
            The Deep
            Down Common Stock and the several series of Deep Down preferred stock
            are
            collectively referred to as the "Deep Down Securities"). Each share of Deep Down
            Common Stock shall be converted, subject to Section 2.02(e), into the
            right to
            receive a ratable portion of 75,000,000 shares (the "Exchange Ratio") of
            MediQuip Common Stock; provided, however, that, if between the date of
            this
            Agreement and the Effective Time the outstanding shares of MediQuip Common
            Stock
            shall have been changed from into a different number of shares or a different
            class, by reason of any stock dividend, subdivision, reclassification,
            recapitalization, split, combination or exchange of shares, the Exchange
            Ratio
            shall be correspondingly adjusted to the extent appropriate to reflect
            such
            stock dividend, subdivision, reclassification, recapitalization, split,
            combination or exchange of shares (all such shares of MediQuip Common
            Stock
            being herein referred to as the "MediQuip Securities" or the "Exchange
            Consideration"); and
(b)
each
            Share held in the treasury of Deep Down and each Share owned by MediQuip
            or any
            direct or indirect wholly owned subsidiary of MediQuip or of Deep Down
            immediately prior to the Effective Time shall be cancelled and extinguished
            without any conversion thereof and no payment or distribution shall be
            made with
            respect thereto.
SECTION
            2.02.
Exchange
            of Certificates
.
(a)
At
            the
            Closing, Shareholder shall deliver to MediQuip all certificates representing
            Deep Down Securities (the "Certificates") delivered to it (together with any
            stock transfer tax stamps required by reason of the payment of the Exchange
            Consideration to a person other than the registered holder of the Certificate
            surrendered), together with such other customary documents as may reasonably
            be
            required by MediQuip, in exchange for the Exchange Consideration. Certificates
            representing the Exchange Consideration shall be issued to the persons
            and in
            the amounts described in Exhibit A. Any shareholder of Deep Down whose
            Certificates are not delivered at the Closing shall receive the Exchange
            Consideration with respect to such Certificates upon delivery to MediQuip
            after
            the Closing of such Certificates and the other items required pursuant
            to the
            first sentence of this Section 2.02(a).
(b)
No
            dividends or other distributions declared or made after the Effective
            Time with
            respect to the MediQuip Common Stock with a record date after the Effective
            Time
            shall be paid to the holder of any unsurrendered Certificate with respect
            to the
            shares of MediQuip Common Stock represented thereby, and no cash payment
            in lieu
            of any fractional shares shall be paid to any such holder pursuant to
            Section
            2.02(d), until the holder of such Certificate shall surrender such
            Certificate.
(c)
All
            shares of MediQuip Common Stock issued upon conversion of Deep Down Securities
            in accordance with the terms hereof (including any cash paid pursuant
            to Section
            2.02(b) or (d)) shall be deemed to have been issued in full satisfaction
            of all
            rights pertaining to such Deep Down Securities.
(d)
No
            certificate or scrip representing fractional shares of MediQuip Common
            Stock
            shall be issued upon the surrender for exchange of Certificates, and
            such
            fractional share interests will not entitle the owner thereof to vote
            or to any
            other rights of a shareholder of MediQuip. Each holder of a fractional
            share
            interest shall be paid an amount in cash (without interest) equal to
            the product
            obtained by multiplying (i) such fractional share interest to which such
            holder
            (after taking into account all fractional share interests then held by
            such
            holder) would otherwise be entitled by (ii) the average of the per share
            closing
            prices on the OTC Bulletin Board (the "OTC ") of shares of MediQuip Common Stock
            during the 20 consecutive trading days ending on (and including) the
            trading day
            immediately preceding the date of the Effective Time. As promptly as
            practicable
            after the determination of the amount of cash, if any, to be paid to
            holders of
            fractional share interests, the MediQuip shall forward payments to such
            holders
            of fractional share interests subject to and in accordance with the terms
            of
            Sections 2.02(b).
(e)
Neither
            MediQuip nor Deep Down shall be liable to any holder of Shares for any
            such
            Shares (or dividends or distributions with respect thereto), or cash
            delivered
            to a public official pursuant to any abandoned property, escheat or similar
            Law.
(f)
Each
            of
            Deep Down and MediQuip shall be entitled to deduct and withhold from
            the
            consideration otherwise payable pursuant to this Agreement to any holder
            of
            Shares such amounts as it is required to deduct and withhold with respect
            to the
            making of such payment under the Code, or any provision of state, local
            or
            foreign tax law. To the extent that amounts are so withheld by the Surviving
            Corporation or MediQuip, as the case may be, such withheld amounts shall
            be
            treated for all purposes of this Agreement as having been paid to the
            holder of
            Shares in respect of which such deduction and withholding was made by
            the
            Surviving Corporation or MediQuip, as the case may be.
(g)
If
            any
            Certificate shall have been lost, stolen or destroyed, upon the making
            of an
            affidavit of that fact by the person claiming such Certificate to be
            lost,
            stolen or destroyed and, if required by MediQuip, the posting by such
            person of
            a bond, in such reasonable amount as MediQuip may direct, as indemnity
            against
            any claim that may be made against it with respect to such Certificate,
            the
            MediQuip will issue in exchange for such lost, stolen or destroyed Certificate
            the Exchange Consideration, any cash in lieu of fractional shares of
            MediQuip
            Common Stock to which the holders thereof are entitled pursuant to Section
            2.02(d) and any dividends or other distributions to which the holders
            thereof
            are entitled pursuant to Section 2.02(f).
SECTION
            2.03.
Stock
            Transfer Books
.
            At the
            Effective Time, the stock transfer books of Deep Down shall be closed
            and there
            shall be no further registration of transfers of Shares thereafter on
            the
            records of Deep Down. From and after the Effective Time, the holders
            of
            Certificates representing Shares outstanding immediately prior to the
            Effective
            Time shall cease to have any rights with respect to such Shares, except
            as
            otherwise provided in this Agreement or by Law.
ARTICLE
            IIIREPRESENTATIONS AND WARRANTIES OF THE COMPANY
Except
            as
            set forth in this Agreement, Deep Down hereby represents and warrants
            to
            MediQuip that:
SECTION
            3.01.
Organization
            and Qualification; Subsidiaries
.
            Each of
            Deep Down and each subsidiary of Deep Down (the "Deep Down Subsidiaries") is a
            corporation duly incorporated, validly existing and in good standing
            under the
            laws of the jurisdiction of its incorporation and has all requisite corporate
            power and to own, lease and operate its properties and to carry on its
            business
            as it is now being conducted, except where the failure to be so organized,
            existing or in good standing or to have such corporate power, have not
            had, and
            could not reasonably be expected to have, individually or in the aggregate,
            a
            Deep Down Material Adverse Effect (as defined below). Each of Deep Down
            and Deep
            Down Subsidiaries is duly qualified or licensed as a foreign corporation
            to do
            business, and is in good standing, in each jurisdiction where the character
            of
            the properties owned, leased or operated by it or the nature of its business
            makes such qualification or licensing necessary, except for such failures
            to be
            so qualified or licensed and in good standing that have not had, and
            could not
            reasonably be expected to have, individually or in the aggregate, a Deep
            Down
            Material Adverse Effect. The term "Deep Down Material Adverse Effect" means any
            change in or effect on the business of Deep Down and Deep Down Subsidiaries
            that
            is materially adverse to the financial condition or results of operations
            of
            Deep Down and Deep Down Subsidiaries taken as a whole, except for any
            such
            changes or effects resulting from or arising in connection with (i) this
            Agreement or the transactions contemplated by this Agreement or the announcement
            hereof, (ii) any changes in economic, regulatory or political conditions
            or
            (iii) any issue or condition otherwise known to MediQuip prior to the
            date of
            this Agreement.
SECTION
            3.02.
Certificate
            of Incorporation and By-Laws
.
            Deep
            Down has heretofore made available to MediQuip a complete and correct
            copy of
            the Certificate of Incorporation and the By-Laws of Deep Down. Such Certificate
            of Incorporation and By-Laws are in full force and effect. Deep Down
            is not in
            violation of any of the provisions of its Certificate of Incorporation
            or
            By-Laws.
SECTION
            3.03.
Capitalization
.
            Except
            as indicated on Exhibit A, all Deep Down Securities will be issued and
            outstanding and will be validly issued, fully paid and non-assessable
            and (ii)
            no shares are reserved for future issuance pursuant to Deep Down Stock
            Options
            and Warrants. All shares of Deep Down Securities subject to issuance
            as
            aforesaid, upon issuance on the terms and conditions specified in the
            instruments pursuant to which they are issuable, will be duly authorized,
            validly issued, fully paid and non-assessable. There are no outstanding
            contractual obligations of Deep Down or any Deep Down Subsidiary to repurchase,
            redeem or otherwise acquire any shares of Deep Down Securities or any
            capital
            stock of any Deep Down Subsidiary. Each outstanding share of capital
            stock of
            each Deep Down Subsidiary is duly authorized, validly issued, fully paid
            and
            non-assessable and each such share owned by Deep Down or another Deep
            Down
            Subsidiary is free and clear of all security interests, liens, claims,
            pledges,
            options, rights of first refusal, agreements, limitations on Deep Down's or such
            other Deep Down Subsidiary's voting rights, charges and other encumbrances of
            any nature whatsoever, except where failure to own such shares free and
            clear
            would not, individually or in the aggregate, have a Deep Down Material
            Adverse
            Effect. There are no material outstanding contractual obligations of
            Deep Down
            or any Deep Down Subsidiary to provide funds to, or make any investment
            (in the
            form of a loan, capital contribution or otherwise) in, any Deep Down
            Subsidiary
            or any other person.
SECTION
            3.04.
Authority
            Relative to This Agreement
.
            Deep
            Down has all necessary corporate power and authority to execute and deliver
            this
            Agreement and to perform its obligations hereunder and to consummate
            the
            Exchange and the other transactions contemplated by this Agreement. The
            execution and delivery of this Agreement by Deep Down and the consummation
            by
            Deep Down of the Exchange and the other transactions contemplated by
            this
            Agreement have been duly and validly authorized by all necessary corporate
            action and no other corporate proceedings on the part of Deep Down are
            necessary
            to authorize this Agreement or to consummate the Exchange and the other
            transactions contemplated by this Agreement. This Agreement has been
            duly and
            validly executed and delivered by Deep Down and, assuming the due authorization,
            execution and delivery by MediQuip, constitutes a legal, valid and binding
            obligation of Deep Down, enforceable against Deep Down in accordance
            with its
            terms.
SECTION
            3.05.
No
            Conflict; Required Filings and Consents
.
            (a)
            Except as described on Exhibit H, the execution and delivery of this
            Agreement
            by Deep Down does not, and the performance of this Agreement by Deep
            Down will
            not, (i) conflict with or violate the Certificate of Incorporation or
            By-laws of
            Deep Down or any equivalent organizational documents of any Deep Down
            Subsidiary, (ii) assuming that all consents, approvals, authorizations
            and other
            actions described in Section 3.05(b) have been obtained and all filings
            and
            obligations described in Section 3.05(b) have been made, to the best
            knowledge
            of Deep Down after inquiry, conflict with or violate any foreign or domestic
            law, statute, ordinance, rule, regulation, order, judgment or decree
            ("Law")
            applicable to Deep Down or any Deep Down Subsidiary or by which any property
            or
            asset of Deep Down or any Deep Down Subsidiary is bound or affected,
            or (iii)
            result in any breach of or constitute a default (or an event which with
            notice
            or lapse of time or both would become a default) under, or give to others
            any
            right of termination, amendment, acceleration or cancellation of, or
            result in
            the creation of a lien or other encumbrance on any property or asset
            of Deep
            Down or any Deep Down Subsidiary pursuant to, any note, bond, mortgage,
            indenture, contract, agreement, lease, license, permit, franchise or
            other
            instrument or obligation, except, with respect to clause (iii), for any
            such
            conflicts, violations, breaches, defaults or other occurrences that have
            not
            had, and could not reasonably be expected to have, individually or in
            the
            aggregate, a Deep Down Material Adverse Effect, and that could not reasonably
            be
            expected to prevent or materially delay the consummation of the transactions
            contemplated by this Agreement.
(b)
Except
            as
            described on Exhibit H, the execution and delivery of this Agreement
            by Deep
            Down does not, and the performance of this Agreement by Deep Down will
            not,
            require any consent, approval, authorization or permit of, or filing
            with or
            notification to, any domestic or foreign governmental or regulatory authority
            ("Governmental Entity"), except (i) for applicable requirements, if any, of
            state securities or "blue sky" laws ("Blue Sky Laws"), state takeover laws and
            (ii) where failure to obtain such consents, approvals, authorizations
            or
            permits, or to make such filings or notifications, has not had, and could
            not
            reasonably be expected to have, individually or in the aggregate, a Deep
            Down
            Material Adverse Effect, and could not reasonably be expected to prevent
            or
            materially delay the consummation of the transactions contemplated by
            this
            Agreement.
SECTION
            3.06.
Permits;
            Compliance
.
            (a)
            Each of Deep Down and Deep Down Subsidiaries is in possession of all
            franchises,
            grants, authorizations, licenses, permits, easements, variances, exceptions,
            consents, certificates, approvals and orders of any Governmental Entity
            necessary for Deep Down or any Deep Down Subsidiary to own, lease and
            operate
            its properties or to carry on its business as it is now being conducted
            (the
"Deep Down Permits"), except where the failure to have, or the suspension or
            cancellation of, any of Deep Down Permits has not had, and could not
            reasonably
            be expected to have, individually or in the aggregate, a Deep Down Material
            Adverse Effect, and, as of the date of this Agreement, no suspension
            or
            cancellation of any of Deep Down Permits is pending or, to the knowledge
            of Deep
            Down, threatened, except where the failure to have, or the suspension
            or
            cancellation of, any of Deep Down Permits has not had, and could not
            reasonably
            be expected to have, individually or in the aggregate, a Deep Down Material
            Adverse Effect.
(b)
To
            the
            best knowledge of Deep Down after inquiry, neither Deep Down nor any
            Deep Down
            Subsidiary is in conflict with, or in default or violation of, (i) any
            Law
            applicable to Deep Down or any Deep Down Subsidiary or by which any property
            or
            asset of Deep Down or any Deep Down Subsidiary is bound or affected,
            (ii) any
            note, bond, mortgage, indenture, contract, agreement, lease, license,
            permit,
            franchise or other instrument or obligation to which Deep Down or any
            Deep Down
            Subsidiary is a party or by which Deep Down or any Deep Down Subsidiary
            or any
            property or asset of Deep Down or any Deep Down Subsidiary is bound or
            affected
            or (iii) any Deep Down Permits, except, in the case of each of (i), (ii)
            and
            (iii), for any such conflicts, defaults or violations that have not had,
            and
            could not reasonably be expected to have, individually or in the aggregate,
            a
            Deep Down Material Adverse Effect.
SECTION
            3.07.
Absence
            of Certain Changes or Events
.
            Since
            the date of its organization, except as contemplated by or as disclosed
            in this
            Agreement, Deep Down has conducted its businesses only in the ordinary
            course
            and in a manner consistent with past practice and, since such date, there
            has
            not been (a) any material change by Deep Down in its accounting methods,
            principles or practices, (b) any declaration, setting aside or payment
            of any
            dividend or distribution in respect of the Commons Stock or any redemption,
            purchase or other acquisition of any of Deep Down's securities or (c) any
            increase in or establishment of any bonus, insurance, severance, deferred
            compensation, pension, retirement, profit sharing, stock option (including,
            without limitation, the granting of stock options, stock appreciation
            rights,
            performance awards or restricted stock awards), stock purchase or other
            employee
            benefit plan, or any other increase in the compensation payable or to
            become
            payable to any executive officers of Deep Down, except in the ordinary
            course of
            business.
SECTION
            3.08.
Absence
            of Litigation
.
            Except
            as set forth on Section 3.08 of Deep Down Disclosure Schedule, as of
            the date of
            this Agreement, there is no litigation, suit, claim, action, proceeding
            or
            investigation pending or, to the knowledge of Deep Down, threatened against
            Deep
            Down, or any property or asset of Deep Down, before any court, arbitrator
            or
            governmental entity, domestic or foreign, which (i) has had, or could
            reasonably
            be expected to have, individually or in the aggregate, a material adverse
            effect
            on Deep Down or (ii) seeks to delay or prevent the consummation of any
            other
            material transaction contemplated by this Agreement. As of the date of
            this
            Agreement, neither Deep Down nor any property or asset of Deep Down is
            subject
            to any continuing order of, consent decree, settlement agreement or other
            similar written agreement with, or, to the knowledge of Deep Down, continuing
            investigation by, any governmental entity, or any order, writ, judgment,
            injunction, decree, determination or award of any governmental entity
            or
            arbitrator having, individually or in the aggregate, a material adverse
            effect
            on Deep Down.
SECTION
            3.09.
Employee
            Benefit Plans; Labor Matters
.
            With
            respect to each employee benefit plan, program, arrangement and contract
            (including, without limitation, any "employee benefit plan", as defined in
            section 3(3) of the Employee Retirement Income Security Act of 1974,
            as amended
            ("ERISA")) maintained or contributed to by Deep Down or any Deep Down
            Subsidiary, or with respect to which Deep Down or any Deep Down Subsidiary
            could
            incur liability under section 4069, 4212(c) or 4204 of ERISA (the "Deep Down
            Benefit Plans"), Deep Down has made available to the MediQuip a true and correct
            copy of (i) the most recent annual report (Form 5500) filed with the
            Internal
            Revenue Service (the "IRS"), (ii) a complete copy of such Deep Down Benefit
            Plan, (iii) each trust agreement relating to such Deep Down Benefit Plan,
            (iv)
            the most recent summary plan description for each Deep Down Benefit Plan
            for
            which a summary plan description is required, (v) the most recent actuarial
            report or valuation relating to a Deep Down Benefit Plan subject to Title
            IV of
            ERISA and (vi) the most recent determination letter, if any, issued by
            the IRS
            with respect to any Deep Down Benefit Plan qualified under section 401(a)
            of the
            Code.
SECTION
            3.10.
Contracts
.
            (a)
            Exhibit B lists each of the following written contracts and agreements
            of Deep
            Down (such contracts and agreements being "Material Contracts"):
(i)
each
            contract and agreement for the purchase or lease of personal property
            with any
            supplier or for the furnishing of services to Deep Down that in each
            case
            involves annual payment in excess of US$50,000, or British sterling
            equivalent;
(ii)
all
            broker, exclusive dealing or exclusivity, distributor, dealer, manufacturer's
            representative, franchise, agency, sales promotion and market research
            agreements involving annual payments in excess of US$100,000,or British
            sterling
            equivalent, to which Deep Down is a party or any other material contract
            that
            compensates any person other than employees based on any sales by Deep
            Down;
(iii)
all
            leases and subleases of real property;
(iv)
all
            contracts and agreements relating to indebtedness for borrowed money
            other than
            trade indebtedness of Deep Down;
(v)
all
            contracts and agreements involving annual payments in excess of $100,000
            with
            any Governmental Entity to which Deep Down is a party; and
(vi)
any
            other
            material agreement of Deep Down which is terminable upon or prohibits
            a change
            of ownership or control of Deep Down.
(b)
Each
            Material Contract: (i) is valid and binding on Deep Down and, to the
            knowledge
            of Deep Down, on the other parties thereto, and is in full force and
            effect, and
            (ii) upon consummation of the transactions contemplated by this Agreement,
            shall
            continue in full force and effect without material penalty or other material
            adverse consequence. Deep Down is not in material breach of, or material
            default
            under, any Material Contract and, to the knowledge of Deep Down, no other
            party
            to any Material Contract is in material breach thereof or material default
            thereunder.
SECTION
            3.11.
Environmental
            Matters
.
            Except
            as would not, individually or in the aggregate, have a Deep Down Material
            Adverse Effect:
(a)
Deep
            Down
            and Deep Down Subsidiaries (i) are in compliance with all applicable
            Environmental Laws (as defined below), (ii) hold all Environmental Permits
            (as
            defined below) and (iii) are in compliance with their respective Environmental
            Permits.
(b)
None
            of
            Deep Down or any Deep Down Subsidiary has received any written request
            for
            information, or been notified that it is a potentially responsible party,
            under
            CERCLA (defined below) or any similar Law of any state, locality or any
            other
            jurisdiction.
(c)
None
            of
            Deep Down or any Deep Down Subsidiary has entered into or agreed to any
            consent
            decree or order or is subject to any judgment, decree or judicial order
            relating
            to compliance with Environmental Laws, Environmental Permits or the
            investigation, sampling, monitoring, treatment, remediation, removal
            or cleanup
            of Hazardous Materials (defined below) and, to the knowledge of Deep
            Down, no
            investigation, litigation or other proceeding is pending or threatened
            in
            writing with respect thereto.
(d)
None
            of
            the real property owned or leased by Deep Down or any Deep Down Subsidiary
            is
            listed or, to the knowledge of Deep Down, proposed for listing on the
"National
            Priorities List" under CERCLA, as updated through the date of this Agreement, or
            any similar list of sites in the United States or any other jurisdiction
            requiring investigation or cleanup.
For
            purposes of this Agreement:
"
CERCLA
"
means
            the Comprehensive Environmental Response, Compensation and Liability
            Act of
            1980, as amended as of the date hereof.
"
Environmental
            Laws
"
means
            any federal, state or local statute, law, ordinance, regulation, rule,
            code or
            order of the United States, or any other jurisdiction and any enforceable
            judicial or administrative interpretation thereof, including any judicial
            or
            administrative order, consent decree or judgment, relating to pollution
            or
            protection of the environment or natural resources, including, without
            limitation, those relating to the use, handling, transportation, treatment,
            storage, disposal, release or discharge of Hazardous Materials, as in
            effect as
            of the date of this Agreement.
"
Environmental
            Permits
"
means
            any permit, approval, identification number, license and other authorization
            required under any applicable Environmental Law.
"
Hazardous
            Materials
"
means
            (a) any petroleum, petroleum products, by-products or breakdown products,
            radioactive materials, asbestos-containing materials or polychlorinated
            biphenyls or (b) any chemical, material or substance defined or regulated
            as
            toxic or hazardous or as a pollutant or contaminant or waste under any
            applicable Environmental Law.
SECTION
            3.12.
Trademarks,
            Patents and Copyrights
.
            Except
            as would not, individually or in the aggregate, have a Deep Down Material
            Adverse Effect, Deep Down and Deep Down Subsidiaries own or possess adequate
            licenses or other valid rights to use all patents, patent rights, trademarks,
            trademark rights, trade names, trade dress, trade name rights, copyrights,
            service marks, trade secrets, applications for trademarks and for service
            marks,
            know-how and other proprietary rights and information used or held for
            use in
            connection with the business of Deep Down and Deep Down Subsidiaries
            as
            currently conducted, and Deep Down has no knowledge of any assertion
            or claim
            challenging the validity of any of the foregoing. To the knowledge of
            Deep Down,
            the conduct of the business of Deep Down and Deep Down Subsidiaries as
            currently
            conducted does not and will not conflict in any way with any patent,
            patent
            right, license, trademark, trademark right, trade dress, trade name,
            trade name
            right, service mark or copyright of any third party that has had, or
            could
            reasonably be expected to have, individually or in the aggregate, a Deep
            Down
            Material Adverse Effect. To the knowledge of Deep Down, there are no
            infringements of any proprietary rights owned by or licensed by or to
            Deep Down
            or any Deep Down Subsidiary that have had, or could reasonably be expected
            to
            have, individually or in the aggregate, a Deep Down Material Adverse
            Effect.
SECTION
            3.13.
Taxes
.
            Except
            as for such matters that could not reasonably be expected to have a Deep
            Down
            Material Adverse Effect, (a) Deep Down and each of Deep Down Subsidiaries
            have
            timely filed or will timely file all returns and reports required to
            be filed by
            them with any taxing authority with respect to Taxes for any period ending
            on or
            before the Effective Time, taking into account any extension of time
            to file
            granted to or obtained on behalf of Deep Down and Deep Down Subsidiaries,
            (b)
            all Taxes shown to be payable on such returns or reports that are due
            prior to
            the Effective Time have been paid or will be paid, (c) as of the date
            of this
            Agreement, no deficiency for any material amount of Tax has been asserted
            or
            assessed by a taxing authority against Deep Down or any of Deep Down
            Subsidiaries and (d) Deep Down and each of Deep Down Subsidiaries have
            provided
            adequate reserves in their financial statements for any Taxes that have
            not been
            paid in accordance with generally accepted accounting principles, whether
            or not
            shown as being due on any returns. As used in this Agreement, "Taxes" shall mean
            any and all taxes, fees, levies, duties, tariffs, imposts and other charges
            of
            any kind (together with any and all interest, penalties, additions to
            tax and
            additional amounts imposed with respect thereto) imposed by any government
            or
            taxing authority, including, without limitation: taxes or other charges
            on or
            with respect to income, franchises, windfall or other profits, gross
            receipts,
            property, sales, use, capital stock, payroll, employment, social security,
            workers' compensation, unemployment compensation or net worth; taxes or other
            charges in the nature of excise, withholding, ad valorem, stamp, transfer,
            value
            added or gains taxes; license, registration and documentation fees; and
            customers' duties, tariffs and similar charges.
SECTION
            3.14.
State
            Takeover Statutes
.
            The
            Board of Directors of Deep Down has taken all action necessary to ensure
            that
            any restrictions on business combinations will not apply to the Exchange
            and the
            other transactions contemplated by this Agreement. To the knowledge of
            Deep
            Down, no other state takeover statute is applicable to the Exchange or
            the other
            transactions contemplated by this Agreement.
SECTION
            3.15.
Brokers
.
            No
            broker, finder or investment banker is entitled to any brokerage, finder's or
            other fee or commission in connection with the Exchange or the other
            transactions contemplated by this Agreement based upon arrangements made
            by or
            on behalf of Deep Down.
ARTICLE
            IVREPRESENTATIONS AND WARRANTIES OF MEDIQUIP
MediQuip
            hereby represents and warrants to Deep Down that:
SECTION
            4.01.
Organization
            and Qualification; Subsidiaries
.
            Each of
            MediQuip and each subsidiary of MediQuip (the "MediQuip Subsidiaries") is a
            corporation duly incorporated, validly existing and in good standing
            under the
            laws of the jurisdiction of its incorporation and has all corporate requisite
            power and authority and all necessary governmental approvals to own,
            lease and
            operate its properties and to carry on its business as it is now being
            conducted, except where the failure to be so organized, existing or in
            good
            standing or to have such corporate power, authority and governmental
            approvals
            have not had, and could not reasonably be expected to have, individually
            or in
            the aggregate, a MediQuip Material Adverse Effect (as defined below).
            Each of
            MediQuip and the MediQuip Subsidiaries is duly qualified or licensed
            as a
            foreign corporation to do business, and is in good standing, in each
            jurisdiction where the character of the properties owned, leased or operated
            by
            it or the nature of its business makes such qualification or licensing
            necessary, except for such failures to be so qualified or licensed and
            in good
            standing that have not had, and could not reasonably be expected to have,
            individually or in the aggregate, a MediQuip Material Adverse Effect.
            The term
"MediQuip Material Adverse Effect" means any change in or effect on the business
            of MediQuip and the MediQuip Subsidiaries that is materially adverse
            to the
            financial condition or results of operations of MediQuip and the MediQuip
            Subsidiaries taken as a whole, except for any such changes or effects
            resulting
            from or in connection with (i) this Agreement or the transactions contemplated
            by this Agreement or the announcement hereof, (ii) any changes in economic,
            regulatory or political conditions or (iii) any issue or condition otherwise
            known to Deep Down prior to the date of this Agreement.
SECTION
            4.02.
Certificate
            of Incorporation and By-Laws
.
            MediQuip has heretofore made available to Deep Down a complete and correct
            copy
            of the Certificate of Incorporation and the By-Laws of MediQuip. Such
            Certificates of Incorporation and By-Laws are in full force and effect.
            MediQuip
            is not violation of any of the provisions of its Certificate of Incorporation
            or
            By-Laws.
SECTION
            4.03.
Capitalization
.
            The
            authorized capital stock of MediQuip consists of (a) 490,000,000 shares
            of
            MediQuip Common Stock, $.001 par value, and (b) 10,000,000 shares of
            preferred
            stock, $.001 par value. As of the date of this Agreement, (i) 39,221,421
            shares
            of MediQuip Common Stock are issued and outstanding, and 22,000 shares
            of
            MediQuip preferred stock are issued and outstanding, all of which are
            validly
            issued, fully paid and non-assessable, (ii) in addition to the shares
            reserved
            for issuance under the terms of the Plan referred to and defined in Section
            4.07, no shares of MediQuip Common Stock are held in the treasury of
            MediQuip or
            by MediQuip Subsidiaries and (iii) 4,400,000 shares are reserved for
            future
            issuance upon conversion of the outstanding preferred stock. Immediately
            prior
            to closing, there will exist only 7,870,171 shares of MediQuip Common
            Stock
            issued and outstanding and 22,000 shares of MediQuip preferred stock
            (convertible into a maximum of 4,400,000 shares of common stock of MediQuip)
            issued and outstanding. There are no options, warrants or other rights,
            agreements, arrangements or commitments of any character relating to
            the issued
            or unissued capital stock of MediQuip or any MediQuip Subsidiary or obligating
            MediQuip or any MediQuip Subsidiary to issue or sell any shares of capital
            stock
            of, or other equity interests in, MediQuip or any MediQuip Subsidiary.
            All
            shares of MediQuip Common Stock subject to issuance as aforesaid, upon
            issuance
            on the terms and conditions specified in the instruments pursuant to
            which they
            are issuable, will be duly authorized, validly issued, fully paid and
            non-assessable. There are no outstanding contractual obligations of MediQuip
            or
            any MediQuip Subsidiary to repurchase, redeem or otherwise acquire any
            shares of
            MediQuip Common Stock or any capital stock of any MediQuip Subsidiary.
            Each
            outstanding share of capital stock of each MediQuip Subsidiary is duly
            authorized, validly issued, fully paid and non-assessable and each such
            share
            owned by MediQuip or another MediQuip Subsidiary is free and clear of
            all
            security interests, liens, claims, pledges, options, rights of first
            refusal,
            agreements, limitations on MediQuip's or such other MediQuip Subsidiary's voting
            rights, charges and other encumbrances of any nature whatsoever, except
            where
            failure to own such shares free and clear would not, individually or
            in the
            aggregate, have a MediQuip Material Adverse Effect. There are no material
            outstanding contractual obligations of MediQuip or any MediQuip Subsidiary
            to
            provide funds to, or make any investment (in the form of a loan, capital
            contribution or otherwise) in, any MediQuip Subsidiary or any other person.
            The
            shares of MediQuip Common Stock to be issued pursuant to the Exchange
            in
            accordance with Section 2.01 (i) will be duly authorized, validly issued,
            fully
            paid and non-assessable and not subject to preemptive rights created
            by statute,
            the MediQuip's Certificate of Incorporation or By-Laws or any agreement to which
            the MediQuip is a party or is bound and (ii) will, when issued, be exempt
            from
            registration under the Securities Act of 1933, as amended (together with
            the
            rules and regulations promulgated thereunder, the "Securities Act") and the
            Securities Exchange Act of 1934, as amended (together with the rules
            and
            regulations promulgated thereunder, the "Exchange Act") and exempt from
            registration under applicable Blue Sky Laws. The shares of MediQuip Common
            Stock
            to be issued pursuant to the Exchange in accordance with Section 2.01
            will bear
            a restrictive legend in substantially the following form (and a stop-transfer
            order may be placed against transfer of the certificates for such MediQuip
            Securities):
"The
            Securities represented by this certificate have not been registered under
            the
            Securities Act of 1933, as amended. The Securities may not be sold, transferred
            or assigned in the absence of an effective registration statement for
            the
            Securities under said Act, or an opinion of counsel, in form, substance
            and
            scope customary for opinions of counsel in comparable transactions, that
            registration is not required under said Act."
SECTION
            4.04.
Authority
            Relative to This Agreement
.
            MediQuip has all necessary corporate power and authority to execute and
            deliver
            this Agreement and to perform its obligations hereunder and to consummate
            the
            Exchange and the other transactions contemplated by this Agreement. The
            execution and delivery of this Agreement by MediQuip and the consummation
            by
            MediQuip of the Exchange and the other transactions contemplated by this
            Agreement have been duly and validly authorized by all necessary corporate
            action and no other corporate proceedings on the part of MediQuip are
            necessary
            to authorize this Agreement or to consummate the Exchange and the other
            transactions contemplated by this Agreement. This Agreement has been
            duly and
            validly executed and delivered by MediQuip and, assuming the due authorization,
            execution and delivery by Deep Down, constitutes a legal, valid and binding
            obligation of MediQuip, enforceable against MediQuip in accordance with
            its
            terms.
SECTION
            4.05.
No
            Conflict; Required Filings and Consents
.
            (a) The
            execution and delivery of this Agreement by MediQuip does not, and the
            performance of this Agreement by MediQuip will not, (i) conflict with
            or violate
            the Certificate of Incorporation or By-laws of MediQuip, (ii) assuming
            that all
            consents, approvals, authorizations and other actions described in Section
            4.05(b) have been obtained and all filings and obligations described
            in Section
            4.05(b) have been made, conflict with or violate any Law applicable to
            MediQuip
            or any MediQuip Subsidiary or by which any property or asset of MediQuip
            or any
            MediQuip Subsidiary is bound or affected, or (iii) result in any breach
            of or
            constitute a default (or an event which with notice or lapse of time
            or both
            would become a default) under, or give to others any right of termination,
            amendment, acceleration or cancellation of, or result in the creation
            of a lien
            or other encumbrance on any property or asset of MediQuip or any MediQuip
            Subsidiary pursuant to, any note, bond, mortgage, indenture, contract,
            agreement, lease, license, permit, franchise or other instrument or obligation,
            except, with respect to clause (iii), for any such conflicts, violations,
            breaches, defaults, or other occurrences that have not had, and could
            not
            reasonably be expected to have, individually or in the aggregate, a MediQuip
            Material Adverse Effect, and that could not reasonably be expected to
            prevent or
            materially delay the consummation of the transactions contemplated by
            this
            Agreement.
(b)
The
            execution and delivery of this Agreement by MediQuip does not, and the
            performance of this Agreement by MediQuip will not, require any consent,
            approval, authorization or permit of, or filing with or notification
            to, any
            Governmental Entity, except (i) for applicable requirements, if any,
            of the
            Exchange Act, Blue Sky Laws, the Securities Act, the OTC, and state takeover
            laws; and (ii) where failure to obtain such consents, approvals, authorizations
            or permits, or to make such filings or notifications, has not had, and
            could not
            reasonably be expected to have, individually or in the aggregate, a MediQuip
            Material Adverse Effect, and could not reasonably be expected to prevent
            or
            materially delay the consummation of the transactions contemplated by
            this
            Agreement.
SECTION
            4.06.
Permits;
            Compliance
.
            (a)
            Each of MediQuip and the MediQuip Subsidiaries is in possession of all
            franchises, grants, authorizations, licenses, permits, easements, variances,
            exceptions, consents, certificates, approvals and orders of any Governmental
            Entity necessary for MediQuip or any MediQuip Subsidiary to own, lease
            and
            operate its properties or to carry on its business as it is now being
            conducted
            (the "MediQuip Permits"), except where the failure to have, or the suspension or
            cancellation of, any of MediQuip Permits has not had, and could not reasonably
            be expected to have, individually or in the aggregate, a MediQuip Material
            Adverse Effect, and, as of the date of this Agreement, no suspension
            or
            cancellation of any of MediQuip Permits is pending or, to the knowledge
            of
            MediQuip, threatened, except where the failure to have, or the suspension
            or
            cancellation of, any of MediQuip Permits has not had, and could not reasonably
            be expected to have, individually or in the aggregate, a MediQuip Material
            Adverse Effect.
(b)
Neither
            MediQuip nor any MediQuip Subsidiary is in conflict with, or in default
            or
            violation of, (i) any Law applicable to MediQuip or any MediQuip Subsidiary
            or
            by which any property or asset of MediQuip or any MediQuip Subsidiary
            is bound
            or affected, (ii) any note, bond, mortgage, indenture, contract, agreement,
            lease, license, permit, franchise or other instrument or obligation to
            which
            MediQuip or any MediQuip Subsidiary is a party or by which MediQuip or
            any
            MediQuip Subsidiary or any property or asset of MediQuip or any MediQuip
            Subsidiary is bound or affected or (iii) any MediQuip Permits, except,
            in the
            case of each of (i), (ii) and (iii), for any such conflicts, defaults
            or
            violations that have not had, and could not reasonably be expected to
            have,
            individually or in the aggregate, a MediQuip Material Adverse
            Effect.
SECTION
            4.07. Divestiture of Westmeria Health Care Limited MediQuip shall have
            divested
            all of its interest in its wholly owned subsidiary, Westmeria Health
            Care
            Limited, a private limited company incorporated in England and Wales,
            and shall
            have paid or discharged any MediQuip obligations of any kind or character,
            direct or contingent, such that there are no outstanding liabilities
            whatsoever.
            The consideration received by MediQuip for the divestiture of Westmeria
            shall be
            the cancellation of 31,351,250 outstanding common stock equivalents of
            MediQuip.
            Upon the closing of the divestiture of Westmeria Health Care Limited,
            there will
            exist only 7,870,171 shares of MediQuip Common Stock issued and outstanding
            and
            22,000 shares of MediQuip preferred stock (convertible into a maximum
            of
            4,400,000 shares of common stock of MediQuip) issued and outstanding.
SECTION
            4.08.
Absence
            of Certain Changes or Events
.
            Since
            the date of the filing of the Annual Report on Form 10-KSB (the "Annual
            Report"), except as contemplated by or as disclosed in this Agreement, or as
            disclosed in any amendment to the Annual Report, MediQuip and MediQuip
            Subsidiaries have conducted their businesses only in the ordinary course
            and in
            a manner consistent with past practice and, since such date, there has
            not been
            (a) any MediQuip Material Adverse Effect, (b) any material change by
            MediQuip in
            its accounting methods, principles or practices, (c) any declaration,
            setting
            aside or payment of any dividend or distribution in respect of the Shares
            or any
            redemption, purchase or other acquisition of any of MediQuip's securities or (d)
            any increase in or establishment of any bonus, insurance, severance,
            deferred
            compensation, pension, retirement, profit sharing, stock option (including,
            without limitation, the granting of stock options, stock appreciation
            rights,
            performance awards or restricted stock awards), stock purchase or other
            employee
            benefit plan, or any other increase in the compensation payable or to
            become
            payable to any executive officers of MediQuip or any MediQuip Subsidiary,
            except
            in the ordinary course of business consistent with past practice.
SECTION
            4.09.
Absence
            of Litigation
.
            As of
            the date of this Agreement, there is no litigation, suit, claim, action,
            proceeding or investigation pending or, to the knowledge of MediQuip,
            threatened
            against MediQuip or any MediQuip Subsidiary, or any property or asset
            of
            MediQuip or any MediQuip Subsidiary, before any court, arbitrator or
            Governmental Entity, domestic or foreign, which (i) has had, or could
            reasonably
            be expected to have, individually or in the aggregate, a MediQuip Material
            Adverse Effect or (ii) seeks to delay or prevent the consummation of
            the
            Exchange or any other material transaction contemplated by this Agreement.
            As of
            the date of this Agreement, neither MediQuip nor any MediQuip Subsidiary
            nor any
            property or asset of MediQuip or any MediQuip Subsidiary is subject to
            any
            continuing order of, consent decree, settlement agreement or other similar
            written agreement with, or, to the knowledge of MediQuip, continuing
            investigation by, any Governmental Entity, or any order, writ, judgment,
            injunction, decree, determination or award of any Governmental Entity
            or
            arbitrator having, individually or in the aggregate, a MediQuip Material
            Adverse
            Effect.
SECTION
            4.10.
Employee
            Benefit Plans
.
            MediQuip and MediQuip Subsidiary presently do not have any employees.
            MediQuip
            and MediQuip Subsidiary presently do not, and have never in the past,
            maintained
            or contributed to any employee benefit plan, program, arrangement and
            contract
            (including, without limitation, any "employee benefit plan", as defined in
            section 3(3) of ERISA).
SECTION
            4.11.
Contracts
.
            (a)
            Exhibit C lists each of the following written contracts and agreements
            of
            MediQuip (such contracts and agreements being "Material
            Contracts"):
(i)
each
            contract and agreement for the purchase or lease of personal property
            with any
            supplier or for the furnishing of services to MediQuip;
(ii)
all
            broker, exclusive dealing or exclusivity, distributor, dealer, manufacturer's
            representative, franchise, agency, sales promotion and market research
            agreements, to which MediQuip is a party or any other material contract
            that
            compensates any person other than employees based on any sales by
            MediQuip;
(iii)
all
            leases and subleases of real property;
(iv)
all
            contracts and agreements relating to indebtedness for borrowed money
            other than
            trade indebtedness of MediQuip;
(v)
all
            contracts and agreements involving annual payments in excess of $100,000 with
            any Governmental Entity to which MediQuip is a party; and
(iv)
any
            other
            material agreement of MediQuip which is terminable upon or prohibits
            a change of
            ownership or control of MediQuip..
(b)
Each
            Material Contract: (i) is valid and binding on MediQuip and, to the knowledge
            of
            MediQuip, on the other parties thereto, and is in full force and effect,
            and
            (ii) upon consummation of the transactions contemplated by this Agreement,
            shall
            continue in full force and effect without material penalty or other material
            adverse consequence. MediQuip is not in material breach of, or material
            default
            under, any Material Contract and, to the knowledge of MediQuip, no other
            party
            to any Material Contract is in material breach thereof or material default
            thereunder.
SECTION
            4.12.
Environmental
            Matters
.
            Except
            as disclosed in the Annual Report or as would not, individually or in
            the
            aggregate, have a MediQuip Material Adverse Effect:
(a)
MediQuip
            and the MediQuip Subsidiaries (i) are in compliance with all applicable
            Environmental Laws, (ii) hold all Environmental Permits and (iii) are
            in
            compliance with their respective Environmental Permits.
(b)
None
            of
            MediQuip or any MediQuip Subsidiary has received any written request
            for
            information, or been notified that it is a potentially responsible party,
            under
            CERCLA or any similar Law of any state, locality or any other
            jurisdiction.
(c)
None
            of
            MediQuip or any MediQuip Subsidiary has entered into or agreed to any
            consent
            decree or order or is subject to any judgment, decree or judicial order
            relating
            to compliance with Environmental Laws, Environmental Permits or the
            investigation, sampling, monitoring, treatment, remediation, removal
            or cleanup
            of Hazardous Materials and, to the knowledge of MediQuip, no investigation,
            litigation or other proceeding is pending or threatened in writing with
            respect
            thereto.
(d)
None
            of
            the real property owned or leased by MediQuip or any MediQuip Subsidiary
            is
            listed or, to the knowledge of MediQuip, proposed for listing on the
"National
            Priorities List" under CERCLA, as updated through the date of this Agreement, or
            any similar list of sites in the United States or any other jurisdiction
            requiring investigation or cleanup.
SECTION
            4.13.
Trademarks,
            Patents and Copyrights
.
            Except
            as would not, individually or in the aggregate, have a MediQuip Material
            Adverse
            Effect, MediQuip and the MediQuip Subsidiaries own or possess adequate
            licenses
            or other valid rights to use all patents, patent rights, trademarks,
            trademark
            rights, trade names, trade dress, trade name rights, copyrights, service
            marks,
            trade secrets, applications for trademarks and for service marks, know-how
            and
            other proprietary rights and information used or held for use in connection
            with
            the business of MediQuip and the MediQuip Subsidiaries as currently conducted,
            and MediQuip has no knowledge of any assertion or claim challenging the
            validity
            of any of the foregoing. To the knowledge of MediQuip, the conduct of
            the
            business of MediQuip and the MediQuip Subsidiaries as currently conducted
            does
            not and will not conflict in any way with any patent, patent right, license,
            trademark, trademark right, trade dress, trade name, trade name right,
            service
            mark or copyright of any third party that has had, or could reasonably
            be
            expected to have, individually or in the aggregate, a MediQuip Material
            Adverse
            Effect. To the knowledge of MediQuip, there are no infringements of any
            proprietary rights owned by or licensed by or to MediQuip or any MediQuip
            Subsidiary that have had, or could reasonably be expected to have, individually
            or in the aggregate, a MediQuip Material Adverse Effect.
SECTION
            4.14.
Taxes
.
            Except
            for such matters that would not have a MediQuip Material Adverse Effect,
            (a)
            MediQuip and each of the MediQuip Subsidiaries have timely filed or will
            timely
            file all returns and reports required to be filed by them with any taxing
            authority with respect to Taxes for any period ending on or before the
            Effective
            Time, taking into account any extension of time to file granted to or
            obtained
            on behalf of MediQuip and the MediQuip Subsidiaries, (b) all Taxes shown
            to be
            payable on such returns or reports that are due prior to the Effective
            Time have
            been paid or will be paid, (c) as of the date of this Agreement, no deficiency
            for any material amount of Tax has been asserted or assessed by a taxing
            authority against MediQuip or any of the MediQuip Subsidiaries and (d)
            MediQuip
            and each of the MediQuip Subsidiaries have provided adequate reserves
            in their
            financial statements for any Taxes that have not been paid in accordance
            with
            generally accepted accounting principles, whether or not shown as being
            due on
            any returns.
SECTION
            4.15.
Accounting
            and Tax Matters
.
            To the
            knowledge of MediQuip, neither MediQuip nor any of its affiliates has
            taken or
            agreed to take any action that would prevent the Exchange from constituting
            a
            transaction qualifying under Section 368(a) of the Code. MediQuip is
            not aware
            of any agreement, plan or other circumstance that would prevent the Exchange
            from qualifying under Section 368(a) of the Code.
SECTION
            4.16.
Brokers
.
            No
            broker, finder or investment banker is entitled to any brokerage, finder's or
            other fee or commission in connection with the Exchange or the other
            transactions contemplated by this Agreement based upon arrangements made
            by or
            on behalf of MediQuip.
ARTICLE
            VCONDUCT OF BUSINESSES PENDING THE REORGANIZATION
SECTION
            5.01.
Conduct
            of Business by Deep Down Pending the Exchange
.
            Deep
            Down agrees that, between the date of this Agreement and the Effective
            Time,
            except as contemplated by any other provision of this Agreement, unless
            MediQuip
            shall otherwise consent in writing:
(a)
the
            businesses of Deep Down and Deep Down Subsidiaries shall be conducted
            only in,
            and Deep Down and Deep Down Subsidiaries shall not take any action except
            in,
            the ordinary course of business and in a manner consistent with past
            practice;
            and
(b)
Deep
            Down
            shall use its reasonable best efforts to preserve substantially intact
            its
            business organization, to keep available the services of the current
            officers,
            employees and consultants of Deep Down and Deep Down Subsidiaries and
            to
            preserve the current relationships of Deep Down and Deep Down Subsidiaries
            with
            customers, suppliers and other persons with which Deep Down or any Deep
            Down
            Subsidiary has significant business relations.
By
            way of
            amplification and not limitation, except as contemplated by this Agreement,
            neither Deep Down nor any Deep Down Subsidiary shall, between the date
            of this
            Agreement and the Effective Time, directly or indirectly, do, or propose
            to do,
            any of the following without the prior written consent of MediQuip:
(a)
amend
            or
            otherwise change its Certificate of Incorporation or By-Laws or equivalent
            organizational documents;
(b)
issue,
            sell, pledge, dispose of, grant, encumber, or authorize the issuance,
            sale,
            pledge, disposition, grant or encumbrance of, (i) any shares of its capital
            stock of any class, or any options, warrants, convertible securities
            or other
            rights of any kind to acquire any shares of such capital stock, or any
            other
            ownership interest (including, without limitation, any phantom interest),
            of
            Deep Down or any Deep Down Subsidiary or (ii) any material assets of
            Deep Down
            or any Deep Down Subsidiary, except in the ordinary course of business
            and in a
            manner consistent with past practice;
(c)
declare,
            set aside, make or pay any dividend or other distribution, payable in
            cash,
            stock, property or otherwise, with respect to any of its capital
            stock;
(d)
reclassify,
            combine, split, subdivide or redeem, purchase or otherwise acquire, directly
            or
            indirectly, any of its capital stock;
(e)
(i)
acquire
            (including, without limitation, by Exchange, consolidation, or acquisition
            of
            stock or assets) any interest in any corporation, partnership, other
            business
            organization or any division thereof or any assets, other than acquisitions
            of
            assets in the ordinary course of business consistent with past
            practice;
(ii)
incur
            any
            indebtedness for borrowed money or issue any debt securities or assume,
            guarantee or endorse, or otherwise as an accommodation become responsible
            for,
            the obligations of any person, or make any loans or advances, except
            for
            indebtedness incurred in the ordinary course of business and consistent
            with
            past practice;
(iii)
enter
            into any contract or agreement material to the business, results of operations
            or financial condition of Deep Down and Deep Down Subsidiaries taken
            as a whole
            other than in the ordinary course of business, consistent with past practice;
            or
(iv)
enter
            into or amend any contract, agreement, commitment or arrangement that,
            if fully
            performed, would not be permitted under this Section 5.01(e);
(f)
increase
            the compensation payable or to become payable to its employees, except
            for
            increases in accordance with past practices, or grant any severance or
            termination pay to, or enter into any employment or severance agreement
            with,
            any director or employee of Deep Down or any Deep Down Subsidiary, except
            for
            employment or severance agreements in accordance with past practice,
            or
            establish, adopt, enter into or amend any collective bargaining, bonus,
            profit
            sharing, thrift, compensation, stock option, restricted stock, pension,
            retirement, deferred compensation, employment, termination, severance
            or other
            plan, agreement, trust, fund, policy or arrangement for the benefit of
            any
            director or employee; or
(g)
take
            any
            action, other than reasonable and usual actions in the ordinary course
            of
            business and consistent with past practice, with respect to accounting
            policies
            or procedures.
SECTION
            5.02.
Conduct
            of Business by MediQuip Pending the Exchange
.
            MediQuip agrees that, between the date of this Agreement and the Effective
            Time,
            except as contemplated by any other provision of this Agreement, unless
            Deep
            Down shall otherwise consent in writing (such consent not to be unreasonably
            withheld or delayed):
(a)
the
            business of the MediQuip and the MediQuip Subsidiaries shall be conducted
            only
            in, and MediQuip and the MediQuip Subsidiaries shall not take any action
            except
            in the ordinary course of business and in a manner consistent with past
            practice; and
(b)
MediQuip
            shall use its reasonable best efforts to preserve substantially intact
            its
            business organization, to keep available the services of the current
            officers,
            employees and consultants of MediQuip and the MediQuip Subsidiaries and
            to
            preserve the current relationships of MediQuip and the MediQuip Subsidiaries
            with customers, suppliers and other persons with which MediQuip or any
            MediQuip
            Subsidiary has significant business relations.
By
            way of
            amplification and not limitation, except as contemplated by this Agreement,
            neither MediQuip nor any MediQuip Subsidiary shall, between the date
            of this
            Agreement and the Effective Time, directly or indirectly, do, or propose
            to do,
            any of the following without the prior written consent of Deep Down (such
            consent not to be unreasonably withheld):
(a)
amend
            or
            otherwise change its Certificate of Incorporation or By-Laws or equivalent
            organizational documents;
(b)
issue,
            sell, pledge, dispose of, grant, encumber, or authorize the issuance,
            sale,
            pledge, disposition, grant or encumbrance of, (i) any shares of its capital
            stock of any class, or any options, warrants, convertible securities
            or other
            rights of any kind to acquire any shares of such capital stock, or any
            other
            ownership interest (including, without limitation, any phantom interest),
            of
            MediQuip or any MediQuip Subsidiary (except for the issuance of shares
            of
            MediQuip Common Stock issuable pursuant to the MediQuip Stock Options
            outstanding on the date of this Agreement or the issuance in the ordinary
            course
            of business and consistent with past practice, or (ii) any material assets
            of
            MediQuip or any MediQuip Subsidiary, except in the ordinary course of
            business
            and in a manner consistent with past practice;
(c)
declare,
            set aside, make or pay any dividend or other distribution, payable in
            cash,
            stock, property or otherwise, with respect to any of its capital
            stock;
(d)
reclassify,
            combine, split, subdivide or redeem, purchase or otherwise acquire, directly
            or
            indirectly, any of its capital stock;
(e)
(i)
acquire
            (including, without limitation, by Exchange, consolidation, or acquisition
            of
            stock or assets) any interest in any corporation, partnership, other
            business
            organization or any division thereof or any assets, other than acquisitions
            of
            assets in the ordinary course of business consistent with past
            practice;
(ii)
incur
            any
            indebtedness for borrowed money or issue any debt securities or assume,
            guarantee or endorse, or otherwise as an accommodation become responsible
            for,
            the obligations of any person, or make any loans or advances, except
            for
            indebtedness incurred in the ordinary course of business and consistent
            with
            past practice;
(iii)
enter
            into any contract or agreement material to the business, results of operations
            or financial condition of MediQuip and the MediQuip Subsidiaries taken
            as a
            whole other than in the ordinary course of business, consistent with
            past
            practice; or
(iv)
enter
            into or amend any contract, agreement, commitment or arrangement that,
            if fully
            performed, would not be permitted under this Section 5.02(e);
(f)
increase
            the compensation payable or to become payable to its officers or employees,
            except for increases in accordance with past practices in salaries or
            wages of
            employees of MediQuip or any MediQuip Subsidiary who are not officers
            of
            MediQuip, or grant any severance or termination pay to, or enter into
            any
            employment or severance agreement with, any director, officer or other
            employee
            of MediQuip or any MediQuip Subsidiary, or establish, adopt, enter into
            or amend
            any collective bargaining, bonus, profit sharing, thrift, compensation,
            stock
            option, restricted stock, pension, retirement, deferred compensation,
            employment, termination, severance or other plan, agreement, trust, fund,
            policy
            or arrangement for the benefit of any director, officer or employee;
            or
(g)
take
            any
            action, other than reasonable and usual actions in the ordinary course
            of
            business and consistent with past practice, with respect to accounting
            policies
            or procedures.
ARTICLE
            VIADDITIONAL AGREEMENTS
SECTION
            6.01.
Filing
            of Form 8-K
.
            Unless
            adequately disclosed in a periodic report filed with the Securities and
            Exchange
            Commission by MediQuip, immediately after the Effective Time, new management
            of
            Deep Down will procure the prompt preparation and file with the Securities
            and
            Exchange Commission appropriate notice describing this transaction on
            Form 8-K
            or other applicable form, and otherwise comply with the provisions of
            the
            Securities Exchange Act of 1934.
SECTION
            6.02.
Preparation
            of Disclosure Statement
.
            Immediately after the Effective Time, new management of Deep Down will
            procure
            the preparation of a disclosure statement containing the necessary information
            to comply with Rule 15(c)2(11) promulgated by the Securities and Exchange
            Commission pursuant to the Securities Exchange Act of 1934 and file such
            forms
            with one or more firms who are members of the National Association of
            Securities
            Dealers, Inc. ("NASD") and with NASD as are necessary to effect the quotation of
            MediQuip's securities in the NASD Electronic Bulletin Board System.
SECTION
            6.03.
Access
            to Information; Confidentiality
.
            Except
            as required pursuant to any confidentiality agreement or similar agreement
            or
            arrangement to which MediQuip or Deep Down or any of their respective
            subsidiaries is a party or pursuant to applicable Law, from the date
            of this
            Agreement to the Effective Time, MediQuip and Deep Down shall (and shall
            cause
            their respective subsidiaries to): (i) provide to the other (and its
            officers,
            directors, employees, accountants, consultants, legal counsel, agents
            and other
            representatives, collectively, "Representatives") access at reasonable times
            upon prior notice to the officers, employees, agents, properties, offices
            and
            other facilities of the other and its subsidiaries and to the books and
            records
            thereof and (ii) furnish promptly such information concerning the business,
            properties, contracts, assets, liabilities, personnel and other aspects
            of the
            other party and its subsidiaries as the other party or its Representatives
            may
            reasonably request.
SECTION
            6.04.
Obligations
            of MediQuip
.
            MediQuip shall take all action necessary to cause MediQuip to perform
            its
            obligations under this Agreement and to consummate the Exchange on the
            terms and
            subject to the conditions set forth in this Agreement.
SECTION
            6.05.
Obligations
            of Shareholder
.
            Shareholder, on behalf of new management of MediQuip, unconditionally
            agree: (i)
            to refrain from the issuance of any securities pursuant to a registration
            statement on Form S-8 for a period of 12 months from and after the Effective
            Time (ii) not to change the number of issued or outstanding shares of
            capital
            stock of MediQuip by a stock split, stock dividend, combination,
            reclassification, reverse stock split, combination or reclassification
            of shares
            or other similar event for a period of 12 months from and after the Effective
            Time, and except as a condition to a listing of common stock on a national
            exchange, in which event the limitation period will be 6 months (iii)
            not to
            issue any equity securities to any person, firm or corporation for any
            purpose
            whatsoever for consideration less than the fair market value applicable
            to the
            nature of the transaction of such securities, and (iv) not to file a
            registration statement with the Securities and Exchange Commission on
            Form SB-2
            or other similar form covering secondary offering of and class of equity
            securities prior to the expiration of 6 months from and after the Effective
            Time.
SECTION
            6.06.
Application
            to Standard & Poor's
.
            New
            management of Deep Down shall promptly make application to the Standard
&
Poor's editorial board to approve your corporation for a full description
            in
            Standard & Poor's Standard Corporation Manual, Standard & Poor's Daily
            News Section, coverage of MediQuip as part of the S&P Market Access Program
            and coverage on Standard & Poor's Internet Site, www.advisorinsight.com, as
            well as S&P Marketscope and the S&P Stock Guide database.
SECTION
            6.06.
Filing
            of Amended Form 8-K
.
            Within
            4 days after the original report on Form 8-K must be filed, new management
            of
            Deep Down will prepare and file with the SEC an amendment to the Form
            8-K
            described in Section 6.02 above that includes the financial statements
            and pro
            forma financial information prepared pursuant to Regulation S-X for the
            periods
            specified in Rule 3.05(b).
SECTION
            6.07.
Further
            Action; Consents; Filings
.
            Upon
            the terms and subject to the conditions hereof, each of the parties hereto
            shall
            use its reasonable best efforts to (i) take, or cause to be taken, all
            appropriate action and do, or cause to be done, all things necessary,
            proper or
            advisable under applicable law or otherwise to consummate and make effective
            the
            Exchange and the other transactions contemplated by this Agreement, (ii)
            obtain
            from Governmental Entities any consents, licenses, permits, waivers,
            approvals,
            authorizations or orders required to be obtained or made by MediQuip
            or Deep
            Down or any of their subsidiaries in connection with the authorization,
            execution and delivery of this Agreement and the consummation of the
            Exchange
            and the other transactions contemplated by this Agreement and (iii) make
            all
            necessary filings, and thereafter make any other required submissions,
            with
            respect to this Agreement, the Exchange and the other transactions contemplated
            by this Agreement required under (A) the Exchange Act and the Securities
            Act and
            the rules and regulations thereunder and any other applicable federal
            or state
            securities laws and (B) any other applicable Law. The parties hereto
            shall
            cooperate with each other in connection with the making of all such filings,
            including by providing copies of all such documents to the non-filing
            party and
            its advisors prior to filing and, if requested, by accepting all reasonable
            additions, deletions or changes suggested in connection therewith.
SECTION
            6.08.
Reorganization
            of Deep Down
..
            As
            soon as practicable, but in no event more than 15 days after the execution
            of
            this Agreement Shareholder shall cause SubSea Acquisition Corporation,
            a Texas
            corporation, ("SubSea") to acquire all the issued and outstanding capital stock
            of Deep Down, Inc., a Delaware corporation, for equity securities of
            SubSea
            substantially on the terms set out in the agreement executed by and among
            SubSea, Deep Down and their respective shareholders. At or about the
            time of the
            consummation of the acquisition of Deep Down by SubSea, Shareholder shall
            cause
            SubSea to acquire all the issued and outstanding capital stock of Strategic
            Offshore Services Corporation, a Texas corporation ("SOS"), for equity
            securities of SubSea substantially on the terms set out in the agreement
            executed by and among SubSea, SOS and their respective shareholders.
            Following
            the consummation of the acquisition of Deep Down by SubSea and the acquisition
            of SOS by SubSea, SubSea and SOS shall merge with and into Deep Down
            with Deep
            Down as the survivor of the merger as a Delaware corporation. The merger
            shall
            be consummated substantially on the terms set out in the Agreement and
            Plan of
            Merger attached as Exhibit D. The surviving Delaware corporation and
            the
            majority shareholders of the surviving Delaware corporation are the parties
            to
            this Agreement.
SECTION
            6.09.
Agreement
            to Deliver Shares
.
As
            the
            owner of a majority of the shares of Deep Down Securities, Shareholder
            agrees to
            vote his shares of Deep Down Securities in favor of approving this Agreement
            and
            the transactions contemplated hereby and not to approve or support any
            competing
            transaction,
SECTION
            6.10.
Plan
            of Exchange
.
            This
            Agreement is intended to constitute a "plan of reorganization" within the
            meaning of section 1.368-2(g) of the income tax regulations promulgated
            under
            the Code. From and after the date of this Agreement and until the Effective
            Time, each party hereto shall use its reasonable best efforts to cause
            the
            Exchange to qualify, and will not knowingly take any action, cause any
            action to
            be taken, fail to take any action or cause any action to fail to be taken
            which
            action or failure to act could prevent the Exchange from qualifying,
            as a
            reorganization under the provisions of section 368(a) of the Code. Following
            the
            Effective Time, neither MediQuip nor any of its affiliates shall knowingly
            take
            any action, cause any action to be taken, fail to take any action or
            cause any
            action to fail to be taken, which action or failure to act could cause
            the
            Exchange to fail to qualify as a reorganization under section 368(a)
            of the
            Code.
SECTION
            6.11.
Board
            of Directors of MediQuip
.
            Immediately after the Effective Date, the present Directors of MediQuip
            shall
            have caused the appointment of the persons designated by the Shareholder,
            to the
            Board of Directors of MediQuip followed by the resignation of all other
            officers
            and directors. In connection with such election, MediQuip shall have
            provided
            its securityholders with an Information Statement pursuant to Section
            14f of the
            Exchange Act and SEC Rule 14f-1.
SECTION
            6.12.
Public
            Announcements
.
            The
            initial press release relating to this Agreement shall be a joint press
            release
            the text of which has been agreed to by each of MediQuip and Deep
            Down.
SECTION
            6.13.
Conveyance
            Taxes
.
            MediQuip shall be liable for and shall hold Deep Down and the holders
            of Deep
            Down Securities who are holders of Deep Down Securities immediately prior
            to the
            Effective Time harmless against any real property transfer or gains,
            sales, use,
            transfer, value added, stock transfer or stamp taxes, any transfer, recording
            registration, and other fees, and any similar Taxes which become payable
            in
            connection with the transactions contemplated by this Agreement. The
            parties
            acknowledge that this Section 6.14 is specifically intended to benefit
            the
            holders of Deep Down Securities who are holders of Deep Down Securities
            immediately prior to the Effective Time.
ARTICLE
            VIICONDITIONS TO THE REORGANIZATION
SECTION
            7.01.
Conditions
            to the Obligations of Each Party
.
            The
            obligations of Deep Down, MediQuip and Shareholder to consummate the
            Exchange
            are subject to the satisfaction or waiver (where permissible) of the
            following
            conditions:
(a)
this
            Agreement and the issuance of the Exchange Consideration pursuant to
            the terms
            of the Exchange, as the case may be, contemplated hereby shall have been
            approved and adopted by the requisite affirmative vote of (i) the shareholders
            of Deep Down in accordance with the General Corporation Law of Delaware
            and Deep
            Down's Certificate of Incorporation and (ii) the board of directors of MediQuip
            in accordance with the rules of the OTC, the Nevada Revised Statutes
            and
            MediQuip's Articles of Incorporation;
(b)
no
            Governmental Entity or court of competent jurisdiction located or having
            jurisdiction in the United States shall have enacted, issued, promulgated,
            enforced or entered any law, rule, regulation, judgment, decree, executive
            order
            or award (an "Order") which is then in effect and has the effect of making the
            Exchange illegal or otherwise prohibiting consummation of the Exchange;
            and
(c)
all
            consents, approvals and authorizations legally required to be obtained
            to
            consummate the Exchange shall have been obtained from and made with all
            Governmental Entities.
SECTION
            7.02.
Conditions
            to the Obligations of MediQuip
.
            The
            obligations of MediQuip to consummate the Exchange are subject to the
            satisfaction or waiver (where permissible) of the following additional
            conditions:
(a)
to
            the
            best of Deep Down's knowledge and belief, each of the representations and
            warranties of Deep Down contained in this Agreement shall be true and
            correct as
            of the Effective Time as though made on and as of the Effective Time,
            except
            where failure to be so true and correct would not have a Deep Down Material
            Adverse Effect, and except that those representations and warranties
            which
            address matters only as of a particular date shall remain true and correct
            as of
            such date, except where failure to be so true and correct would not have
            a Deep
            Down Material Adverse Effect, and MediQuip shall have received a certificate
            of
            the Managing Director of Deep Down substantially in the form of Exhibit
            F to
            such effect;
(b)
Deep
            Down
            shall have performed or complied with all agreements and covenants required
            by
            this Agreement to be performed or complied with by it on or prior to
            the
            Effective Time, except where the failure to so comply would not have
            a Deep Down
            Material Adverse Effect, and MediQuip shall have received a certificate
            of the
            Managing Director of Deep Down substantially in the form of Exhibit F;
(c)
MediQuip
            shall have received an investment representation from each Deep Down
            Shareholder
            substantially in the form of Exhibit G.
(d)
The
            consummation of the transactions contemplated by this Agreement shall
            have been
            approved at or before the Closing by the affirmative vote of the holders
            of not
            less than a majority of Deep Down's common stock, and shall have received any
            other shareholder approval necessary to the consummation of the transactions
            contemplated by this Agreement.
(e)
MediQuip
            shall have received on the Closing Date an opinion, dated the Closing
            Date, of
            counsel for Deep Down in form and substance satisfactory to counsel for
            the
            MediQuip, to the effect that:
(i)
Deep
            Down
            is a corporation validly existing and in good standing under the laws
            of its
            jurisdiction of organization with all requisite power and authority to
            own,
            lease, license, and use their respective properties and assets and to
            carry on
            the business in which each is now engaged.
(ii)
All
            necessary proceedings of Deep Down have been duly taken to authorize
            the
            execution, delivery, and performance of this Agreement by Deep
            Down.
(iii)
Deep
            Down
            has all requisite corporate power and authority to execute, deliver,
            and perform
            this Agreement, and this Agreement has been duly authorized, executed,
            and
            delivered by Deep Down, constitutes the legal, valid, and binding obligation
            of
            Deep Down, and (subject to applicable bankruptcy, insolvency, and other
            laws
            affecting the enforceability of creditors' rights generally) is enforceable as
            to Deep Down in accordance with its terms.
(iv)
The
            execution, delivery, and performance of this Agreement by Deep Down will
            not
            violate or result in a breach of any term of Deep Down's charter document or
            by-laws; and the execution, delivery, and performance of this Agreement
            by Deep
            Down will not violate, result in a breach of, conflict with, or (with
            or without
            the giving of notice or the passage of time or both) entitle any party
            to
            terminate or call a default under any terms of any agreement to which
            Deep Down
            are a party.
(v)
After
            reasonable investigation, such counsel has no actual knowledge of any
            consent,
            authorization, approval, order, license, certificate, or permit of or
            from, or
            declaration or filing with, any federal, state, local, or other governmental
            authority or any court or other tribunal which is required of Deep Down
            for the
            execution, delivery, or performance of this Agreement by Deep Down.
(vi)
After
            reasonable investigation, such counsel has no actual knowledge of any
            litigation, arbitration, governmental or other proceeding (formal or
            informal),
            or investigation pending or threatened with respect to Deep Down, or
            any of its
            business, properties, or assets that (i) can reasonably be expected to
            result in
            any materially adverse change in the financial condition, results of
            operations,
            business, properties, liabilities, or future prospects of Deep Down taken
            as a
            whole or (ii) seeks to prohibit or otherwise challenge the consummation
            of the
            transactions contemplated by this Agreement, or to obtain substantial
            damages
            with respect thereto, except as disclosed in this Agreement.
(vii)
The
            consummation of the transactions contemplated by this Agreement has been
            approved at or before the Closing by the affirmative vote of the holders
            of not
            less than a majority of Deep Down's common stock, and has received any other
            shareholder approval necessary to the consummation of the transactions
            contemplated by this Agreement.
In
            giving
            such opinions counsel may state that their opinion and belief are based
            upon
            their participation in the preparation of the Agreement and any amendments
            or
            supplements thereto and documents incorporated therein by reference and
            review
            and discussion of the contents thereof, but is without independent check
            or
            verification except as specified.
SECTION
            7.03.
Conditions
            to the Obligations of Deep Down
.
            The
            obligations of Deep Down to consummate the Exchange are subject to the
            satisfaction or waiver (where permissible) of the following additional
            conditions:
(a)
each
            of
            the representations and warranties of MediQuip contained in this Agreement
            shall
            be true and correct as of the Effective Time, as though made on and as
            of the
            Effective Time, except where the failure to be so true and correct would
            not
            have a MediQuip Material Adverse Effect, and except that those representations
            and warranties which address matters only as of a particular date shall
            remain
            true and correct as of such date, except where the failure to be so true
            and
            correct would not have a MediQuip Material Adverse Effect, and Deep Down
            shall
            have received a certificate of the Chief Executive Officer or Chief Financial
            Officer of MediQuip substantially in the form of Exhibit E to such effect;
(b)
MediQuip
            shall have performed or complied with all agreements and covenants required
            by
            this Agreement to be performed or complied with by it on or prior to
            the
            Effective Time, except where the failure to comply would not have a MediQuip
            Material Adverse Effect, and Deep Down shall have received a certificate
            of the
            Chief Executive Officer or Chief Financial Officer of MediQuip substantially
            in
            the form of Exhibit E to that effect;
(c)
Deep
            Down
            shall have received on the Closing Date an opinion, dated the Closing
            Date, of
            Sonfield & Sonfield, counsel for the MediQuip in form and substance
            satisfactory to counsel for Deep Down, to the effect that:
(i)
MediQuip
            is a corporations validly existing and in good standing under the laws
            of the
            States of Nevada with all requisite power and authority to own, lease,
            license,
            and use their respective properties and assets and to carry on the business
            in
            which each is now engaged.
(ii)
All
            necessary proceedings of MediQuip have been duly taken to authorize the
            execution, delivery, and performance of this Agreement by MediQuip.
(iii)
MediQuip
            have all requisite corporate power and authority to execute, deliver,
            and
            perform this Agreement, and this Agreement has been duly authorized,
            executed,
            and delivered by MediQuip, constitutes the legal, valid, and binding
            obligation
            of MediQuip, and (subject to applicable bankruptcy, insolvency, and other
            laws
            affecting the enforceability of creditors' rights generally) is enforceable as
            to MediQuip in accordance with its terms.
(iv)
The
            execution, delivery, and performance of this Agreement by MediQuip will
            not
            violate or result in a breach of any term of MediQuip's certificate of
            incorporation or by-laws; and the execution, delivery, and performance
            of this
            Agreement by MediQuip will not violate, result in a breach of, conflict
            with, or
            (with or without the giving of notice or the passage of time or both)
            entitle
            any party to terminate or call a default under any terms of any agreement
            to
            which MediQuip is a party.
(v)
After
            reasonable investigation, such counsel has no actual knowledge of any
            consent,
            authorization, approval, order, license, certificate, or permit of or
            from, or
            declaration or filing with, any federal, state, local, or other governmental
            authority or any court or other tribunal which is required of MediQuip
            for the
            execution, delivery, or performance of this Agreement by MediQuip.
(vi)
After
            reasonable investigation, such counsel has no actual knowledge of any
            litigation, arbitration, governmental or other proceeding (formal or
            informal),
            or investigation pending or threatened with respect to MediQuip, or any
            of their
            respective business, properties, or assets that (i) can reasonably be
            expected
            to result in any materially adverse change in the financial condition,
            results
            of operations, business, properties, liabilities, or future prospects
            of
            MediQuip taken as a whole or (ii) seeks to prohibit or otherwise challenge
            the
            consummation of the transactions contemplated by this Agreement, or to
            obtain
            substantial damages with respect thereto, except as disclosed in this
            Agreement.
(vii)
the
            Shares to be issued by the MediQuip hereunder have been duly authorized
            and,
            when issued and when delivered to Deep Down Shareholders as provided
            by this
            Agreement, will be validly issued, fully paid and non-assessable, and
            the
            issuance of such Shares will not be subject to any preemptive or similar
            rights;
In
            giving
            such opinions Sonfield & Sonfield may state that their opinion and belief
            are based upon their participation in the preparation of the Agreement
            and any
            amendments or supplements thereto and documents incorporated therein
            by
            reference and review and discussion of the contents thereof, but is without
            independent check or verification except as specified.
ARTICLE
            VIIITERMINATION, AMENDMENT AND WAIVER
SECTION
            8.01.
Termination
.
            This
            Agreement may be terminated and the Exchange and the other transactions
            contemplated by this Agreement may be abandoned at any time prior to
            the
            Effective Time, notwithstanding any requisite approval and adoption of
            this
            Agreement and the transactions contemplated by this Agreement, as
            follows:
(a)
by
            mutual
            written consent duly authorized by the Boards of Directors of each of
            MediQuip
            and Deep Down;
(b)
by
            either
            MediQuip or Deep Down if the Effective Time shall not have occurred on
            or before
            December 14, 2006 provided, however, that the right to terminate this
            Agreement
            under this Section 8.01(b) shall not be available to any party whose
            failure to
            fulfill any obligation under this Agreement has been the cause of, or
            resulted
            in, the failure of the Effective Time to occur on or before such date;
(c)
there
            shall be any Order which is final and non-appealable preventing the consummation
            of the Exchange;
(d)
by
            MediQuip upon a breach of any material representation, warranty, covenant
            or
            agreement on the part of Deep Down set forth in this Agreement, or if
            any
            representation or warranty of Deep Down shall have become untrue, in
            either case
            such that the conditions set forth in Section 7.02(a) and Section 7.02(b)
            would
            not be satisfied ("Terminating Deep Down Breach"); provided, however, that, if
            such Terminating Deep Down Breach is curable by Deep Down through the
            exercise
            of its best efforts and for so long as Deep Down continues to exercise
            such best
            efforts, MediQuip may not terminate this Agreement under this Section
            8.01(d).
(e)
by
            Deep
            Down upon a breach of any material representation, warranty, covenant
            or
            agreement on the part of MediQuip set forth in this Agreement, or if
            any
            representation or warranty of MediQuip shall have become untrue, in either
            case
            such that the conditions set forth in Section 7.03(a) and Section 7.03(b)
            would
            not be satisfied ("Terminating MediQuip Breach"); provided, however, that, if
            such Terminating Deep Down Breach is curable by MediQuip through the
            exercise of
            its best efforts and for so long as MediQuip continues to exercise such
            best
            efforts, Deep Down may not terminate this Agreement under this Section
            8.01(e).
SECTION
            8.02.
Effect
            of Termination
.
            Except
            as provided in Section 9.01, in the event of termination of this Agreement
            pursuant to Section 8.01, this Agreement shall forthwith become void,
            there
            shall be no liability under this Agreement on the part of MediQuip or
            Deep Down
            or any of their respective officers or directors, and all rights and
            obligations
            of each party hereto shall cease, provided, however, that nothing herein
            shall
            relieve any party from liability for the willful breach of any of its
            representations, warranties, covenants or agreements set forth in this
            Agreement.
SECTION
            8.03.
Amendment
.
            This
            Agreement may be amended by the parties hereto by action taken by or
            on behalf
            of their respective Boards of Directors at any time prior to the Effective
            Time;
            provided, however, that, after the approval of this Agreement by the
            shareholders of Deep Down, no amendment may be made which would reduce
            the
            amount or change the type of consideration into which each Share shall
            be
            converted upon consummation of the Exchange. This Agreement may not be
            amended
            except by an instrument in writing signed by the parties hereto.
SECTION
            8.04.
Waiver
.
            At any
            time prior to the Effective Time, any party hereto may (a) extend the
            time for
            the performance of any obligation or other act of any other party hereto,
            (b)
            waive any inaccuracy in the representations and warranties contained
            herein or
            in any document delivered pursuant hereto, and (c) waive compliance with
            any
            agreement or condition contained herein. Any such extension or waiver
            shall be
            valid if set forth in an instrument in writing signed by the party or
            parties to
            be bound thereby.
SECTION
            8.05.
Expenses
.
            All
            Expenses (as defined below) incurred in connection with this Agreement
            and the
            transactions contemplated by this Agreement shall be paid by the party
            incurring
            such expenses, whether or not the Exchange or any other transaction is
            consummated. "Expenses" as used in this Agreement shall include all reasonable
            out-of-pocket expenses (including, without limitation, all fees and expenses
            of
            counsel, accountants, investment bankers, experts and consultants to
            a party
            hereto and its affiliates) incurred by a party or on its behalf in connection
            with or related to the authorization, preparation, negotiation, execution
            and
            performance of this Agreement and all other matters related to the closing
            of
            the Exchange and the other transactions contemplated by this
            Agreement.
ARTICLE
            IX
GENERAL
            PROVISIONS
SECTION
            9.01.
Non-Survival
            of Representations, Warranties and Agreements
.
            The
            representations, warranties and agreements in this Agreement and in any
            certificate delivered pursuant hereto shall terminate at the Effective
            Time or
            upon the termination of this Agreement pursuant to Section 8.01, as the
            case may
            be, except that the agreements set forth in Articles I and II and Sections
            6.01,
            6.02, 6.05, 6.06 and this Article IX shall survive the Effective Time
            and those
            set forth in Sections 8.02 and 8.05 and this Article IX shall survive
            termination.
SECTION
            9.02.
Notices
.
            All
            notices, requests, claims, demands and other communications hereunder
            shall be
            in writing and shall be given (and shall be deemed to have been duly
            given upon
            receipt) by delivery in person, by cable, telecopy, facsimile, telegram
            or telex
            or by registered or certified mail (postage prepaid, return receipt requested)
            to the respective parties at the following addresses (or at such other
            address
            for a party as shall be specified in a notice given in accordance with
            this
            Section 9.02):
if
            to
            MediQuip:
MediQuip,
            Inc.
Kelsey
            House, 77 High Street
Beckenham
            Kent BR3 1AN
Facsimile:
            011 44 208 658 9870
with
            a copy to (which shall not constitute notice to such party)
:
Loughran
            & Co.
38
            Hertford Street
London
            W1Y 7TG
Attn:
            James A. Loughran, Esq.
Facsimile:
            (44)
207 355
            4975
if
            to
            Deep Down:
Deep
            Down, Inc.
15473
            East Freeway
Channelview,
            Delaware 77530
Attn:
            John C. Siedhoff, CFO
Facsimile:
            (281) 862-2522
with
            a copy to (which shall not constitute notice to Deep Down)
:
Robert
            L.
            Sonfield, Jr., Esq.
Sonfield
            & Sonfield
770
            South
            Post Oak Lane, Suite 435
Houston,
            Texas 77056-1937
Facsimile:
            (713) 877-1547
SECTION
            9.03.
Certain
            Definitions
.
            For
            purposes of this Agreement, the term:
(a)
"
affiliate
"
of
            a
            specified person means a person who directly or indirectly through one
            or more
            intermediaries controls, is controlled by, or is under common control
            with such
            specified person;
(b)
"
control
"
            (including the terms "
controlled
            by
"
and
            "
under
            common control with
")
            means
            the possession, directly or indirectly or as trustee or executor, of
            the power
            to direct or cause the direction of the management and policies of a
            person,
            whether through the ownership of voting securities, as trustee or executor,
            by
            contract or credit arrangement or otherwise;
(c)
"
knowledge
"
means,
            with respect to any matter in question, that the executive officers of
            Deep Down
            or MediQuip, as the case may be, have actual knowledge of such matter;
(d)
"
person
"
means
            an individual, corporation, partnership, limited partnership, syndicate,
            person
            (including, without limitation, a "person" as defined in section 13(d)(3) of the
            Exchange Act), trust, association or entity or government, political
            subdivision, agency or instrumentality of a government; and
(e)
"
subsidiary
"
or
            "
subsidiaries
"
of
            any
            person means any corporation, partnership, joint venture or other legal
            entity
            of which such person (either alone or through or together with any other
            subsidiary) owns, directly or indirectly, more than 50% of the stock
            or other
            equity interests, the holders of which are generally entitled to vote
            for the
            election of the board of directors or other governing body of such corporation
            or other legal entity.
SECTION
            9.04.
Severability
.
            If any
            term or other provision of this Agreement is invalid, illegal or incapable
            of
            being enforced by any rule of Law or public policy, all other conditions
            and
            provisions of this Agreement shall nevertheless remain in full force
            and effect
            so long as the economic or legal substance of the transactions contemplated
            by
            this Agreement is not affected in any manner materially adverse to any
            party.
            Upon such determination that any term or other provision is invalid,
            illegal or
            incapable of being enforced, the parties hereto shall negotiate in good
            faith to
            modify this Agreement so as to effect the original intent of the parties
            as
            closely as possible in a mutually acceptable manner in order that the
            transactions contemplated by this Agreement be consummated as originally
            contemplated to the fullest extent possible.
SECTION
            9.05.
Assignment;
            Binding Effect; Benefit
.
            Neither
            this Agreement nor any of the rights, interests or obligations hereunder
            shall
            be assigned by any of the parties hereto (whether by operation of law
            or
            otherwise) without the prior written consent of the other parties. Subject
            to
            the preceding sentence, this Agreement shall be binding upon and shall
            inure to
            the benefit of the parties hereto and their respective successors and
            assigns.
SECTION
            9.06.
Incorporation
            of Exhibits
.
            Deep
            Down Disclosure Schedule, the MediQuip Disclosure Schedule and all Exhibits
            attached hereto and referred to herein are hereby incorporated herein
            and made a
            part hereof for all purposes as if fully set forth herein.
SECTION
            9.07.
Specific
            Performance
.
            The
            parties hereto agree that irreparable damage would occur in the event
            any
            provision of this Agreement was not performed in accordance with the
            terms
            hereof and that the parties shall be entitled to specific performance
            of the
            terms hereof, in addition to any other remedy at law or in equity.
SECTION
            9.08.
Governing
            Law; Forum
.
            This
            Agreement shall be governed by, and construed in accordance with, the
            laws of
            the State of Delaware.
SECTION
            9.09.
Headings
.
            The
            descriptive headings contained in this Agreement are included for convenience
            of
            reference only and shall not affect in any way the meaning or interpretation
            of
            this Agreement.
SECTION
            9.10.
Counterparts
.
            This
            Agreement may be executed and delivered (including by facsimile transmission)
            in
            one or more counterparts, and by the different parties hereto in separate
            counterparts, each of which when executed and delivered shall be deemed
            to be an
            original but all of which taken together shall constitute one and the
            same
            agreement.
SECTION
            9.11.
Entire
            Agreement
.
            This
            Agreement (including the Exhibits) constitutes the entire agreement among
            the
            parties with respect to the subject matter hereof and supersede all prior
            agreements and understandings among the parties with respect thereto.
            No
            addition to or modification of any provision of this Agreement shall
            be binding
            upon any party hereto unless made in writing and signed by all parties
            hereto.
THE
            REMAINDER OF THIS PAGE INTENIONALLY LEFT BLANK
AGREEMENT
            AND PLAN OF REORGANIZATION
among
MEDIQUIP
            HOLDINGS, INC.
DEEP
            DOWN, INC.
and
THE
            MAJORITY SHAREHOLDERS OF DEEP DOWN, INC.
EXECUTION
            PAGE
IN
            WITNESS WHEREOF, MediQuip, Shareholder and Deep Down have caused this
            Agreement
            to be executed as of the date first written above by their respective
            officers
            thereunto duly authorized.
MEDIQUIP,
              INC.
Attest
                        by:
/s/
                        Nicola Rodker
By:
                        /
s/
                        David Francis
Nicola
                        Rodker, Secretary
David
                        Francis, President
DEEP
              DOWN, INC.
Attest
                        by:
/s/
Daniel L. Ritz, Jr.
By:
_/s/
                        Robert E. Chamberlain, J
r.
Name:
                        Daniel L. Ritz, Jr.
Name:
                        Robert E. Chamberlain, Jr.
Title:
                        Secretary
Title:
                        Chairman & CEO
/s/
                        Dan
iel
                        L. Ri
tz,
                        Jr.
/s/
                        Robert E. Chamber
lain,
                        Jr.
Daniel
                        L. Ritz, Jr., Shareholder
Robert
                        E. Chamberlain, Jr., Shareholder
/s/
                        John C. Siedhoff
John
                        C. Siedhoff, Shareholder