| 1.1 | The      Consultant is hereby engaged for a three-year period commencing August 6,      2007 (the "Initial Term"), and the Consultant hereby accepts the      engagement by providing the services of Robert E. Chamberlain, Jr.      ("Chamberlain") as Chairman and Chief Acquisitions Officer. The Initial      Term shall be automatically renewed for up to two successive consecutive      one (1) year periods (each, a "Renewal Term" and the Initial Term and      Renewal Term are collectively referred to as the "consulting period")      thereafter unless either party sends notice to the other party, not more      than 270 days and not less than 90 days before the end of the      then-existing consulting period, of such party's desire to terminate the      Agreement at the end of the then-existing term, in which case this      Agreement will terminate at the end of the then- existing term. Consulting      services will be provided at the Company address or at such other places      as may be directed by the Company. The Consultant agrees that time is to      be scheduled by the Company and to devote reasonable productive time,      ability and attention to the business of the Company during the term of      this Agreement, subject to the direction and supervision of the      Company. |
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| 2.1 | As      compensation for services rendered under this Agreement, the Consultant      shall be entitled to receive a base consulting fee of One Hundred Eighty      Thousand and NO/100 DOLLARS ($180,000.00) per annum payable twice monthly      plus an amount equal to Federal and State payroll withholdings customarily      withheld for an employee earning this compensation, including but not      limited to FICA and Medicare. The consulting fee may be increased annually      at the discretion of the Board of Directors. The Consultant is also      entitled to annual bonuses as determined by the Board of Directors. The      Consultant shall provide such reasonable business hours as the Company      shall dictate, but at least forty hours per  week. |
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| 2.2 | Chamberlain      shall be eligible to participate in any and all benefits as are available      from time to time to      key executive officers, directors and employees (and      their families) of the Company, including all health,      medical, dental, and life insurance benefits. The Company shall pay 100 % of all premiums with respect to      such plans for Chamberlain. Chamberlain may, at his option, elect to be reimbursed for medical      insurance premiums incurred for medical insurance not provided      through the Company. Chamberlain will be entitled to four weeks paid vacation. Chamberlain      will also be entitled to $1,000 per month as an expense allowance to pay for the cost of a      vehicle, insurance, gasoline, maintenance, repairs and other unanticipated      costs. |
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| 3.1 | If the Consultant willfully      breaches or habitually neglects the duties which he is required      to perform under the terms of the      Agreement, the Company may at its option terminate this Agreement by      giving written notice of termination to the    Consultant. |
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| 3.2 | Willfully breaches is defined as      misappropriation of Company' s assets, being intoxicated or under the influence of drugs or      alcohol while on the job, being convicted of a felony, or not willingly corning to      work. |
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| 4.1 | Consultant agrees that this      covenant is a separate contract in and of itself. In the event      that any of the prior clauses of this      contract should fail, this separate contract shall be binding upon the parties. Consultant      covenants and agrees that during his consultancy with Company and upon termination of      their engagement, whether by termination of this Agreement, by wrongful discharge,      or otherwise, Consultant shall not directly or indirectly, within Texas, enter into or engage      generally in direct competition with the Company's business, as a Consultant in any      business providing identical services as Company or own a business which provides      identical services as Company either individually or as a Consultant, officer, director,      independent contractor, or shareholder or otherwise, during the term of this Agreement or for      three (3) months after termination. This covenant on the part of Consultant shall be construed      as an agreement independent of any other provision of this Agreement; and the existence of      any claim or cause of action of Consultant against      Company, whether      predicated on this Agreement or otherwise, shall not constitute a      defense to the      enforcement by Company of this section. Company shall be entitled to such      extra remedies as injunctions, stays or restraining orders to enforce its rights      hereunder. |
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| 4.2 | The Consultant will not solicit or      divert or attempt to solicit or divert, any business, patronage, or clients of the      Company from the Company to himself or a competitor or rival of      Company for three (3)      months from the date of Consultant's withdrawal or termination from      the      Company, |
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| 4.3 | During the term of this Agreement,      the Consultant will not communicate or divulge to or forthe benefit of any competitor or      rival of the Company, any of the trade secrets or      processes of the      Company including client list or pricing information, and used by the      Company. Notwithstanding the foregoing,      upon termination of this Agreement and the Non-Compete period, Consultant shall not be      prohibited from contacting any prospective client or determine appropriate pricing for      any products and/or services on behalf of any new Company. |
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| 4.4 | The Consultant states that he has      read this Agreement in full and understands the termsand language in Article IV. The      Consultant has had outside counsel of his choosing review the Covenant of Noncompete and      counsel has explained all terms and conditions to him. The Consultant swears that he is      not under any duress or coercion to enter this Covenant of      Noncompete, but is      doing it of his own free will in order to gain the experience, specialized      training and      especially the extra compensation offered by    Company. |
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| 4.5 | Confidentiality of this business      is very important as the nature of the business is      securing the customers confidence.      Therefore, Consultant may not directly or indirectly make known      to any person, firm      or corporation the names, addresses or any information pertaining to or      regarding any      customer of the Company during or after termination of      employment through the end of the Non-Compete    period. |
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| 5.1 | Any notices to be given hereunder      by either party to the other may be effected either by personal delivery in writing or by      mail, registered or      certified, postage prepaid with return receipt requested. Mailed notices      shall be addressed to the parties at the address appearing in the introductory      paragraph of this Agreement, but each party may change her address by written notice in      accordance with the      paragraph. Notices delivered personally shall be deemed communicated as of      actual receipt; mailed notices shall be deemed communicated as of three (3) days      after mailing. |
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| 5.2 | This Agreement supersedes any and      all other agreements, either oral or written, between the parties hereto with respect to      the employment of the Consultant by the Company and contains all of the covenants and      agreements between the parties with respect to such employment in any      manner whatsoever.      Any changes or amendments must be in writing, signed by all the parties, or they      are null and void. |
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| 5.3 | This Agreement shall be governed      by and construed in accordance with the laws of the State of Texas and enforceable in      Houston, Texas |
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| 5.4 | Where context and circumstances      require, the gender of all words used in this contract shall include the masculine, feminine      and neuter. |
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|   | COMPANY:  DEEP DOWN,INC. By:   /s/      Ronald E.      SmithName:          Ronald E. Smith Title:           President &      CEO CONSULTANT: STRATEGIC      CAPITAL SERVICES, INC./s/      Robert E. Chamberlain, Jr.Name:          Robert E. Chamberlain, Jr.Title:           President |
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