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      Form 8K
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</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">SECURITIES
      AND EXCHANGE COMMISSION</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: 13pt; 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"><strong>CURRENT
      REPORT</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">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>MEDIQUIP
      HOLDINGS, 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
      True Health, 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"><strong>Nevada</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
      Utah)</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"><strong>75-2263732</strong></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"><strong>Kelsy
      House, 77 High Street</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"><strong>Beckenham,
      Kent, UK. BR3 1AN</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">(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"><strong>David
      Francis, Chairman &amp; CEO</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"><strong>True
      Health, 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"><strong>Kelsy
      House, 77 High Street</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"><strong>Beckenham,
      Kent, UK. BR3 1AN</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">(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"><strong>011
      44 (0)208 658 9575</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">(Telephone
      number, including area code 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"><br></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><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="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman"><strong><u>Item
      8.01 Other Events</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: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">Effective
      November 22, 2006, MediQuip Holdings, Inc., a Nevada corporation (the &#8220;Company&#8221;)
      executed an Agreement and Plan of Reorganization with Deep Down, Inc., a
      Delaware corporation, Ronald E. Smith and Mary L. Budrunas, 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="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">The
      Agreement provides for the acquisition of Deep Down, Inc. by the Company
      resulting in Deep Down being a wholly owned subsidiary of the Company. The
      transaction is expected to be completed on or before the 14</font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman"><sup>th</sup></font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">
      day of
      December 2006 by the issuance to the shareholders of Deep Down of approximately
      90% of the common stock outstanding, on a fully diluted basis, of the Company.
      The transaction will not require approval of shareholders of the
      Company.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; 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: 11pt; FONT-FAMILY: Times New Roman">The
      Agreement provides that the officers and directors of Deep Down will become
      the
      officers and directors of the Company and the present officers and directors
      of
      the Company will resign. Therefore, upon completion of the transaction, there
      will be a change in control of the Company.</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">The
      Agreement also provides for a change of the Company&#8217;s name from MediQuip
      Holdings, Inc. to Deep Down, Inc.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; 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: 11pt; FONT-FAMILY: Times New Roman">Closing
      of the transaction is subject to the customary matters usually associated with
      business combinations.</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"><strong>Item
      7. Financial Statements and 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">Financial
      Statements</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">None</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"><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>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</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>SIGNATURE</strong></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: 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>
    <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: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 171pt"></font><font style="DISPLAY: inline; FONT-SIZE: 11pt; 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="justify"><br></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: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><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: 171pt"></font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">By:<u>
      /s/ David Francis</u>&#160; </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 171pt"></font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">David
      Francis, President</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: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">Date:
      November 22, 2006</font></div>
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    <div>&#160;</div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">EXHIBIT
      A</div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">AGREEMENT
      AND PLAN OF REORGANIZATION&#160;</div>
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    <div>&#160;</div>
    <div>
      <div><br>
        <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="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>&#160;</div>
        <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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              <hr style="COLOR: black" noshade size="2">
            </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><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>
        <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
          <div id="FTR">
            <div id="GLFTR" style="WIDTH: 100%" align="left">&#160;</div>
          </div>
          <div id="PN" style="PAGE-BREAK-AFTER: always">
            <div style="WIDTH: 100%; TEXT-ALIGN: center">&#160;</div>
            <div style="WIDTH: 100%; TEXT-ALIGN: center">
              <hr style="COLOR: black" noshade size="2">
            </div>
          </div>
          <div id="HDR">
            <div id="GLHDR" style="WIDTH: 100%" align="right">&#160;</div>
          </div>
        </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)
          85,000,000 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) 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,
          (iii) 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 85,000,000 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>
        <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
          9.09. </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
          9.10. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Counterparts</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
          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>
        <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
          9.11. </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
          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.
</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="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">THE
          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">
          <div id="FTR">
            <div id="GLFTR" style="WIDTH: 100%" align="left">&#160;</div>
          </div>
          <div id="PN" style="PAGE-BREAK-AFTER: always">
            <div style="WIDTH: 100%; TEXT-ALIGN: center">&#160;</div>
            <div style="WIDTH: 100%; TEXT-ALIGN: center">
              <hr style="COLOR: black" noshade size="2">
            </div>
          </div>
          <div id="HDR">
            <div id="GLHDR" style="WIDTH: 100%" align="right">&#160;</div>
          </div>
        </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">AGREEMENT
          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>
        <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">among</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">MEDIQUIP
          HOLDINGS, INC.</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">DEEP
          DOWN, INC.</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">and</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">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"><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"><u>EXECUTION
          PAGE</u></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">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.</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
          <div style="DISPLAY: block; MARGIN-LEFT: 216pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">MEDIQUIP,
            INC.</font></div>
        </div>
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[{"type": "8-K", "sequence": "1", "filename": "form8kagreement.htm", "description": "FORM 8K", "secsgml_size_bytes": 294355}]
{"company-data": {"conformed-name": "MediQuip Holdings, INC", "cik": "0001110607", "assigned-sic": "7359", "irs-number": "752263732", "state-of-incorporation": "UT", "fiscal-year-end": "0131"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-30351", "film-number": "061237175"}, "business-address": {"street1": "KELSY HOUSE, 77 HIGH STREET", "city": "BECKENHAM, KENT", "state": "X0", "zip": "BR3 1AN", "phone": "(44) (0) 208 658 957"}, "mail-address": {"street1": "KELSY HOUSE, 77 HIGH STREET", "city": "BECKENHAM, KENT", "state": "X0", "zip": "BR3 1AN"}, "former-company": {"former-conformed-name": "TRUE HEALTH INC", "date-changed": "20000329"}}
Form 8K
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
____________________________________________________
MEDIQUIP
      HOLDINGS, INC.
(formerly
      True Health, Inc.)
(Exact
      name of registrant as specified in its charter)
Nevada
(formerly
      Utah)
(State
      or
      other jurisdiction of incorporation or organization)
75-2263732
(IRS
      Employer Identification Number)
Kelsy
      House, 77 High Street
Beckenham,
      Kent, UK. BR3 1AN
(Address
      of principal executive offices)
David
      Francis, Chairman & CEO
True
      Health, Inc.
Kelsy
      House, 77 High Street
Beckenham,
      Kent, UK. BR3 1AN
(Name
      and
      address of agent for service)
011
      44 (0)208 658 9575
(Telephone
      number, including area code of agent for service)
SECTION
      8 - OTHER EVENTS
Item
      8.01 Other Events
Effective
      November 22, 2006, MediQuip Holdings, Inc., a Nevada corporation (the "Company")
      executed an Agreement and Plan of Reorganization with Deep Down, Inc., a
      Delaware corporation, Ronald E. Smith and Mary L. Budrunas, the majority
      shareholders of Deep Down, Inc.
The
      Agreement provides for the acquisition of Deep Down, Inc. by the Company
      resulting in Deep Down being a wholly owned subsidiary of the Company. The
      transaction is expected to be completed on or before the 14
th
day of
      December 2006 by the issuance to the shareholders of Deep Down of approximately
      90% of the common stock outstanding, on a fully diluted basis, of the Company.
      The transaction will not require approval of shareholders of the
      Company.
The
      Agreement provides that the officers and directors of Deep Down will become
      the
      officers and directors of the Company and the present officers and directors
      of
      the Company will resign. Therefore, upon completion of the transaction, there
      will be a change in control of the Company.
The
      Agreement also provides for a change of the Company's name from MediQuip
      Holdings, Inc. to Deep Down, Inc.
Closing
      of the transaction is subject to the customary matters usually associated with
      business combinations.
Item
      7. Financial Statements and Exhibits
Financial
      Statements
None
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.
By:
/s/ David Francis
David
      Francis, President
Date:
      November 22, 2006
EXHIBIT
      A
AGREEMENT
      AND PLAN OF REORGANIZATION
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)
          85,000,000 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) 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,
          (iii) 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 85,000,000 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.
/s/ Nicola
                  Rodker
/s/
Name:
                  Nicola
                  Rodker
Title: Secretary
Name:
                  David
                  Francis
Title: President
DEEP
          DOWN, INC.
/s/ Daniel
                  L.
                  Ritz, Jr.
/s/ Robert
                  E.
                  Chamberlain, Jr.
Name:
                  Daniel L.
                  Ritz, Jr.
Title: Secretary
Name:
                  Robert E.
                  Chamberlain, Jr.
Title: Chairman &
CEO
/s/ Daniel
                  L.
                  Ritz, Jr.
/s/ Robert
                  E.
                  Chamberlain, Jr.
Name:
                  Daniel L.
                  Ritz, Jr.
Title: Shareholder
Name:
                    Robert E. Chamberlain, Jr.
Title:
                    Shareholder
/s/ John
                  C.
                  Siedhoff
Name:
                  John C.
                  Siedhoff
Title: Shareholder