Document:

deepdown_8kex10-2.htm

    
      
        
          

        
Exhibit 10.2

      WAIVER
AGREEMENT

      

      THIS
WAIVER AGREEMENT (this “Agreement”)
is entered into as of April 28, 2010, between DEEP DOWN, INC., a Nevada
corporation (“Borrower”),
and WHITNEY NATIONAL BANK, a national banking association (the “Lender”).  Capitalized
terms used but not defined in this Waiver have the meanings given them in the
Credit Agreement (defined below).

       

      RECITALS

       

      A.           Borrower
and Lender entered into that certain Credit Agreement dated as of November 11,
2008 (as amended by the First Amendment to Credit Agreement dated December 18,
2008, the Second Amendment to Credit Agreement dated February 13, 2009, the
Third Amendment to Credit Agreement dated May 29, 2009, and as further amended,
restated, or supplemented, the “Existing
Credit
Agreement”).

       

      B.           Borrower
has informed Lender of circumstances that, absent the waiver provided under this
Agreement, would constitute the basis for a Default under the Credit Agreement
arising pursuant to Section
9.4(b) thereof.

       

      NOW
THEREFORE, for good and valuable consideration, the receipt and sufficiency of
which are acknowledged, the undersigned hereby agree as follows:

       

      1.           Waiver.  Subject
to the conditions set out in this Agreement, Lender (a) waives any violation of
Section
9.4(b)of the Credit Agreement, or any Default arising thereunder,
resulting solely from executing the draft stock purchase agreement by and among
Deep Down, Inc., Cuming Corporation and The Selling Stockholders, herein
referred to as (the “Stock Purchase Agreement”), which is subject to financing
and (b) agrees not to exercise any of the rights or remedies available to it
under the Loan Documents as a result of the violation or Default described in
clause (B)
above.

       

      2.           Conditions.  This
Agreement shall be effective once each of the following have been delivered to
Lender:

       

      (a)           this
Agreement executed by Borrower and Lender; and

       

      (b)           such
other documents as Lender may reasonably request.

      

      3.           Miscellaneous.

       

      (a)           Headings.  The
headings and captions used in this Agreement are for convenience only and will
not be deemed to limit, amplify or modify the terms of this Agreement, the
Credit Agreement, or the other Loan Documents.

       

      (b)           Costs, Expenses and
Attorneys’ Fees.  Borrower agrees to pay or reimburse Lender on
demand for all its reasonable out-of-pocket costs and expenses incurred in
connection with the preparation, negotiation, and execution of this Agreement,
including, without limitation, the reasonable fees and disbursements of Lender’s
counsel.

       

      (c)           Successors and
Assigns.  This Agreement shall be binding upon and inure to the
benefit of each of the undersigned and their respective successors and permitted
assigns.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      (d)           Multiple
Counterparts.  This Agreement may be executed in any number of
counterparts with the same effect as if all signatories had signed the same
document.  All counterparts must be construed together to constitute
one and the same instrument.  This Agreement may be transmitted and
signed by facsimile or portable document format (PDF).  The
effectiveness of any such documents and signatures shall, subject to applicable
law, have the same force and effect as manually-signed originals and shall be
binding on Borrower and Lender.  Lender may also require that any such
documents and signatures be confirmed by a manually-signed original; provided that the failure to
request or deliver the same shall not limit the effectiveness of any facsimile
or PDF document or signature.

       

      (e)           Governing
Law.  This Waiver must be construed, and its performance
enforced, under Texas law.

       

      (f)           Entirety.  This Waiver
Represents the Final Agreement Between Borrower and Lender relating to the
subject matter of this waiver and May Not Be Contradicted by Evidence of Prior,
Contemporaneous, or Subsequent Oral Agreements by the Parties.  There
Are No Unwritten Oral Agreements among the Parties.

       

      

      [Signatures are on the following
page.]

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      The
Agreement is executed as of the date set out in the preamble to this
Agreement.

       

      
      

       

      
        	 	      
                BORROWER:

                

                DEEP
      DOWN, INC.,

                a
      Nevada corporation

              
	 	 	 	 
	 	 	 	 
	 	By:	/s/ 	
                Eugene L.
      Butler

              
	 	 	 	
                
                  
                    Eugene L.
      Butler

                    Chief Financial Officer

                  

                

              
	 	 	 	 
	 	 	 	 
	 	      
                LENDER:

                

                WHITNEY
      NATIONAL BANK,

                a
      national banking association

              
	 	 	 	 
	 	 	 	 
	 	By:	/s/	
                Paul W.
      Cole

              
	 	 	 	      
                
                  Paul
      W. Cole

                  Vice
      President

                

              

      

       

       

      
        

      

                 

       

       

      

      

      
        

      

             

      
        

        Signature
Page to Waiver Agreementdeepdown_8kex10-3.htm

 

    
      

    

    Exhibit
10.3

    
      ESCROW
AGREEMENT

      

      

      THIS
ESCROW AGREEMENT (the “Escrow Agreement”) is entered into as of May 3, 2010 by
and among the stockholders of Cuming Corporation, a Massachusetts corporation
(the “Company”) listed on the signature pages hereof (collectively the
“Seller”), Deep Down, Inc., a Nevada corporation (the “Buyer”), and Casner &
Edwards, LLP, a Massachusetts limited liability partnership (the “Escrow
Agent”).

      

      WHEREAS,
Seller, the Company and Buyer have entered into a Stock Purchase Agreement dated
the date hereof (the “Purchase Agreement”) pursuant to which Seller has agreed
to sell and Buyer has agreed to purchase from Seller the issued and outstanding
common stock, $1.00 par value per share, of the Company, subject to the terms
and conditions of the Purchase Agreement; and

      

      WHEREAS, Buyer has agreed to pay a
portion of the Purchase Price by issuance and delivery to Seller of the Escrowed
Stock, which shall be deposited herewith with the Escrow Agent, to be held
subject to the terms and conditions of this Agreement; and

      

      NOW THEREFORE in consideration of the
mutual covenants herein, and for other good and valuable consideration, the
receipt and sufficiency of which are acknowledged, the parties hereby agree as
follows:

      

      1.  Definitions.

      

      Terms
defined in the Purchase Agreement and not otherwise defined herein are used
herein with the meanings so defined.

      

      2.  Escrow.

       

       
Upon
execution of this Escrow Agreement (i) Buyer shall deliver to Escrow Agent
original certificates (the “Certificates”) issued to Seller evidencing the
Escrowed Stock, and (ii) Seller shall deliver to Escrow Agent duly executed
stock power instruments (the “Stock Powers” and, together with the Certificates,
collectively the “Escrow Instruments”) conveying and transferring title to the
Escrowed Stock to Buyer.

      

      3.  Release of Escrow
Instruments.

       

      3.1 Within
three (3) business days of receipt of notice from Seller and Buyer that the
Closing has occurred, Escrow Agent shall release the Escrow Instruments to
Seller.

       

      3.2  Within
three (3) days of receipt of notice from Seller that the Purchase Agreement has
been terminated and that, pursuant to the provisions of Section 9.4 of the
Purchase Agreement, Seller has the right to retain the Escrowed Stock, Escrow
Agent shall so notify Buyer.  If within three (3) business days of
receipt of such notice from Escrow Agent, Buyer delivers notice to Escrow Agent
of Buyer’s objection to release of the Escrow Instruments, Escrow Agent shall
not release the Escrow Instruments without (i) mutual written consent of Seller
and Buyer or (ii) a final court order of a court of competent
jurisdiction.  If Buyer fails to deliver notice of objection to Escrow
Agent pursuant to this Section 3.2 within three (3) business days of receipt of
Escrow Agent’s notice to Buyer hereunder, Escrow Agent shall release the Escrow
Instruments to Seller.

       

      
 

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

       

      3.3  Within
three (3) business days of receipt of notice from Buyer that the Purchase
Agreement has been terminated and that, pursuant to the provisions of Section
9.4 of the Purchase Agreement, Buyer is entitled to require Seller to make
immediate retransfer of the Escrowed Stock to Buyer, Escrow Agent shall so
notify Seller.  If, within three (3) business days of receipt of such
notice from Escrow Agent, Seller delivers notice to Escrow Agent of Seller’s
objection to release of the Escrow Instruments, Escrow Agent shall not release
the Escrow Instruments without (i) mutual written consent of Seller and Buyer or
(ii) a final court order of a court of competent jurisdiction.  If
Seller fails to deliver notice of objection to Escrow Agent pursuant to this
Section 3.3 within three (3) business days of receipt of Escrow Agent’s notice
to Seller hereunder, Escrow Agent shall release the Escrow Instruments to
Buyer.

      

      4.  Fees and
Expenses.

       

       
Escrow Agent shall not charge any fee for services to be rendered hereunder,
provided that any fees and expenses incurred by the Escrow Agent in connection
with court proceedings or informal dispute resolution proceedings relating to
the Escrow Instruments shall be borne in equal part by Seller and
Buyer.

      

      5.  Responsibilities of Escrow
Agent; Limitation of Escrow Agent’s Liability.

      

      5.1  The sole responsibility
of Escrow Agent shall be to receive and hold the Escrow Instruments, subject to
release and delivery in accordance with this Escrow Agreement.  Escrow
Agent shall not be liable for losses due to acts of God, war, loss of electrical
power or the failure of communication devices.

       

      5.2  Escrow
Agent shall incur no liability whatsoever with respect to any action taken or
suffered by it in reliance upon any notice, direction, instruction, consent,
statement or other documents believed by it to be genuine and duly authorized,
nor for any other action or inaction except for its own gross negligence or
willful misconduct.  The Escrow Agent shall not be responsible for the
validity or sufficiency of this Escrow Agreement.  In all questions
arising under this Agreement, Escrow Agent may rely on the advice of counsel,
and for anything done, omitted or suffered in good faith by Escrow Agent based
on such advice, Escrow Agent shall not be liable to any person .  The
Escrow Agent shall not be required to take any action hereunder involving any
expense unless the payment of such expense is made or provided for in a manner
reasonably satisfactory to it.

       

      
 

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

      5.3  Seller
and Buyer hereby agree to indemnify Escrow Agent for, and hold it harmless
against, any loss, liability or expenses incurred without gross negligence or
willful misconduct on the part of Escrow Agent arising out of or in connection
with its carrying out of its duties hereunder.  The foregoing
indemnities shall survive the resignation or replacement of Escrow Agent or the
termination of this Agreement.

      

      5.4  In
the event of a dispute between Seller and Buyer concerning the release or other
disposition of the Escrow Instruments, the Escrow Agent may commence an action
in interpleader and deposit the Escrow Instruments with the court in which such
action is pending and upon such deposit shall be absolved and released from any
liability with respect to the Escrow Instruments not caused by the gross
negligence or willful misconduct of the Escrow Agent.

      

      6.  General.

      

      6.1  Any
notice or other communications required or permitted to be delivered to any
party under this Escrow Agreement shall be in writing, shall be addressed to the
party to which such notice is to be given at the address or facsimile telephone
number set forth beneath the name of such party below (or to such other address
or facsimile telephone number as such party shall have specified in a written
notice given to the other parties in accordance with the provisions of this
Section) and shall be deemed properly delivered, given and received on the date
of delivery when delivered by hand or by facsimile, one day following deposit
with an overnight delivery service, or two days following deposit with the
United States Postal Service, postage prepaid, when delivered by registered
mail.

      

      
        	
                 
      

              	
                To
      Seller:

              	
                c/o
      Cuming Corporation

              

      

      225
Bodwell Corporation

      Avon, MA
02322

      Attention:
John W. Cuming

      Facsimile
No. 508/580-0960

      

      
        	
                 
      

              	
                With
      copy to Seller’s counsel:

              	
                David
      J. Chavolla,

              

      

      
        	
                 
      

              	
                Casner
      & Edwards, LLP

              

      

      303
Congress Street

      Boston,
Massachusetts 02210

      Facsimile
No. 617/426-8810

      

      To
Buyer:                                                          Deep Down,
Inc.

      8827 W.
San Houston Parkway N., Suite 100

      Houston,
TX 77040

      Attention:
Eugene L. Butler, Executive Chairman

      Facsimile
No. 281/517-5001

      

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

      
        	
                 
      

              	
                With
      copy to Buyer’s counsel:

              	
                Jeffrey
      D. Hopkins

              

      

      Looper,
Reed & McGraw, P.C.

      1300 Post
Oak Boulevard

      Houston,
Texas 77056

      Facsimile
No. 713/986-7100

      

      
        	
                 
      

              	
                To
      Escrow Agent:

              	
                Casner
      & Edwards, LLP

              

      

      303
Congress Street

      Boston,
Massachusetts 02210

      Attention:
David J. Chavolla

      Facsimile
No. 617/426-8810

      

      6.2  This
Agreement may be executed in counterparts, each of which shall be deemed an
original, and all of which together shall constitute one and the same
instrument.

      

      6.3  This
Escrow Agreement shall be construed in accordance with, and governed in all
respects by, the internal laws of The Commonwealth of Massachusetts without
giving effect to principles of conflicts of laws.

      

      6.4  This
Agreement shall be binding upon all parties and their respective estates,
successors and assigns.

      

      6.5  Any
term or provision of this Agreement may be amended, and the observance of any
term of this Agreement may be waived (either generally or in a particular
instance and either retroactively or prospectively) only by a writing signed by
the party to be bound thereby.  The waiver by a party of any breach
hereof or default in the performance hereof will not be deemed to constitute a
waiver of any other default or any succeeding breach or default.  No
failure or delay on the part of any party to exercise any power, right,
privilege or remedy under this Agreement shall operate as a waiver of such
power, right, privilege or remedy; and no single or partial exercise of any such
power, right, privilege or remedy shall preclude any other or further exercise
thereof or of any other power, right, privilege or remedy.

      

      6.6  The
Escrow Agent may resign at any time by giving thirty (30) days’ advance written
notice thereof to the other parties hereto, but such resignation shall not
become effective until a successor escrow agent shall have been appointed and
shall have accepted such appointment in writing.  If an instrument of
acceptance by a successor escrow agent shall not have been delivered to the
Escrow Agent within such thirty (30) day period, the resigning Escrow Agent may
petition any court of competent jurisdiction for the appointment of a successor
escrow agent.

      

      6.7  This Agreement shall
terminate on the final release of all Escrow Instruments.

       

       

       

       

       

       

      
 

      
        
          
          

        

        
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      IN
WITNESS WHEREOF, the undersigned have caused this Agreement to be duly executed
and delivered as a document under seal as of the date first above
written.

      
 

      
        	
                DEEP DOWN,
      INC.     

              	
                SELLER

              

      

       

       

       

      

      
        	
                By: /s/ Eugene L.
      Butler

                
                  Eugene
      L. Butler, Executive Chairman 

                

              	
                By:  /s/ John W.
      Cuming

                
                  John
      W. Cuming, as Sellers’ Representative

                   

                   

                   

                  CASNER & EDWARDS,
      LLP

                   

                   

                   

                  
                    By:
      /s/ David J.
      Chavolla

                    David
      J. Chavolla

                    A
      Partner

                  

                

              

      

      
        
        
            

      

      

       

      

      
        
          
          

        

        
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