Document:

Exhibit 10.1

February 12, 2008

Al Triplett
Vice President of Brewing
Redhook Ale Brewery, Inc.
14300 NE 145th Street
Woodinville, WA 98072

Dear Al:

     The purpose of this letter is to confirm our understanding about your
continued employment at Redhook Ale Brewery, Incorporated (the "Company") and
the benefits you will be eligible to receive upon termination of your
employment.

     I am acting on behalf of the Company after discussions with the Chairman of
the Compensation Committee and having reviewed the minutes of the Compensation
Committee meeting dated November 7, 2007 and the Board meeting dated November
13, 2007. Our mutual agreement regarding your salary, severance and other
benefits, beginning now is set forth below.

Compensation and Benefits
-------------------------

     During the remainder of your employment with the Company, you will continue
to receive a base salary at your current level, and you are entitled to
participate in all of the Company's employee benefit programs for which you are
eligible.

Severance
---------

     In the event that your employment with the Company is terminated by the
Company prior to June 30, 2008, for any reason other than "for cause", you will
be entitled to severance equal to one month per year of service, plus accrued
vacation and sick pay upon your execution of a separation and release agreement
in a form satisfactory to the company, including a 12 month non-competition
provision. For purposes of this agreement, "cause" means material failure to
perform your duties, violation of any law relating to employment or the Company,
material breach of this agreement, or fraud, dishonesty or self-dealing. If your
employment is terminated for cause, you will not receive anything other than
your final pay plus accrued sick leave and vacation.

<PAGE>

     It is our intention that you remain on the payroll until June 30, 2008
(unless terminated earlier). Upon receipt of this letter signed by you, we
accept your resignation as Vice President, Brewing effective March 1, 2008. From
March 1, 2008 through June 30, 2008 you will continue your employment in a
non-officer position. During this period, you are not authorized to enter into
contracts, make personnel offers or decisions or take any actions that could
bind the Company. Although you will not be expected to report to work regularly,
you are expected to be on call and reasonably available if needed. During this
period you may not accept other fulltime work or employment of any kind with
another individual or business.

     Unless your employment is terminated for cause (as defined above), at the
end of your employment on June 30, 2008, the Company will pay you a lump sum of
twenty-three months of your current base pay as severance, subject to you
signing a separation and release agreement in a form satisfactory to the
company. You will also be offered Company paid COBRA coverage for the earlier of
eighteen months or until you begin new employment with comparable health care
coverage. The release will include a non-competition component for employment in
the craft beer brewing business for twelve months post employment.

So long as it is permissible by law, and subject to rules applied to employees
of the company, you will be eligible to receive the employee discount on beer in
reasonable quantity for personal consumption.

     We appreciate your continued efforts on behalf of Redhook Ale Brewery as
well as acknowledge your outstanding contribution and commitment to the
Brewery's success over many years.

Acknowledged and Agreed:

/s/ Paul S. Shipman__________________________________
Paul Shipman

2-25-08______________________________________________
Date

Acknowledged and Agreed:

/s/ Al Triplett______________________________________
Al Triplett

2-20-08______________________________________________
Date================================================================================

                                CREDIT AGREEMENT

                                   dated as of

                                FEBRUARY 20, 2008

                                  By and Among

                                LHC GROUP, INC.,
                             a Delaware corporation
                                   as Borrower

                                       and

                        CAPITAL ONE, NATIONAL ASSOCIATION
                                    as Agent

                                       and

                        CAPITAL ONE, NATIONAL ASSOCIATION
                                    as Lender

                                       and

                             CAPITAL ONE CORPORATION
                             As Sole Book Runner and
                               Sole Lead Arranger

================================================================================

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
<S>      <C>                                                                     <C>
ARTICLE I
DEFINITIONS AND ACCOUNTING TERMS                                                 1

         Section 1.1. Defined Terms                                              1

         Section 1.2. Accounting Terms                                          14

ARTICLE II
LINE OF CREDIT LOAN COMMITMENT                                                  14

         Section 2.1. The Line of Credit                                        14

         Section 2.2. Revolving Loans                                           14

         Section 2.2.1. Revolving Loans                                         14

         Section 2.2.2. Letters of Credit                                       15

         Section 2.2.3. Procedures for Obtaining Letters of Credit              16

         Section 2.2.4. Manner and Notice of Borrowing Under the Line of
          Credit                                                                16

         Section 2.2.5. Use of Proceeds                                         17

         Section 2.2.6. Several Obligations                                     17

         Section 2.3. Swing Line                                                17

         Section 2.4 Accordion Option                                           18

ARTICLE III
 NOTES EVIDENCING THE LOANS                                                     19

         Section 3.1. Notes                                                     19

         Section 3.1.1. Form of Notes                                           19

         Section 3.1.2. Issuance of Additional Notes                            19

         Section 3.1.3. Payment of the Notes                                    19

         Section 3.1.4. Payment to the Lenders                                  19
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
<S>      <C>                                                                     <C>
         Section 3.1.5. Sharing of Payments, Etc.                               20

         Section 3.1.6. Non-Receipt of Funds by the Agent                       20

ARTICLE IV
INTEREST RATES                                                                  20

         Section 4.1. Options                                                   20

         Section 4.1.1. Base Rate Loans                                         20

         Section 4.1.2. Eurodollar Loans                                        21

         Section 4.2. Interest Rate Determination                               21

         Section 4.3. Conversion Option                                         21

ARTICLE V
CHANGE OF CIRCUMSTANCES                                                         21

         Section 5.1. Unavailability of Funds or Inadequacy of Pricing          21

         Section 5.2. Change in Laws                                            22

         Section 5.3. Increased Cost or Reduced Return                          22

         Section 5.4. Breakage Costs                                            24

         Section 5.5. Discretion of Lender as to Manner of Funding              24

         Section 5.6. Foreign Lenders                                           24

ARTICLE VI
FEES                                                                            25

         Section 6.1. Facility Fee                                              25

         Section 6.2. Unused Fees                                               25

         Section 6.3. Letter of Credit Fee                                      25

ARTICLE VII
CERTAIN GENERAL PROVISIONS                                                      26
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
<S>      <C>                                                                    <C>
         Section 7.1. Payments                                                  26

         Section 7.2. No Offset, etc                                            26

         Section 7.3. Rate Management Transactions                              26

         Section 7.4. Calculation of Fees                                       26

ARTICLE VIII
PREPAYMENTS                                                                     26

         Section 8.1. Voluntary Prepayments                                     26

         Section 8.2. Mandatory Prepayment Resulting from Overadvances          26

ARTICLE IX
SECURITY FOR THE INDEBTEDNESS                                                   27

         Section 9.1. Security                                                  27

ARTICLE X
CONDITIONS PRECEDENT                                                            27

         Section 10.1. Condition Precedent to Effectiveness of this Agreement   27

         Section 10.2. Conditions Precedent to all Revolving Loans              28

ARTICLE XI
REPRESENTATIONS AND WARRANTIES                                                  28

         Section 11.1. Corporate Authority of the Borrower                      28

         Section 11.2. Financial Statements                                     29

         Section 11.3. Litigation                                               29

         Section 11.4. Approvals                                                30

         Section 11.5. Required Insurance                                       30

         Section 11.6. Licenses                                                 30

         Section 11.7. Adverse Agreements                                       30

         Section 11.8. Default or Event of Default                              30
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
<S>      <C>                                                                    <C>
         Section 11.9. Employee Benefit Plans                                   30

         Section 11.10. Investment Company Act                                  30

         Section 11.11. Intentionally Omitted                                   30

         Section 11.12. Regulations X, T and U                                  30

         Section 11.13. Location of Offices and Records                         31

         Section 11.14. Information                                             31

         Section 11.15. Environmental Matters                                   31

         Section 11.16. Solvency of the Borrower                                32

         Section 11.17. Governmental Requirements                               32

         Section 11.18. Authority of the Guarantor                              32

         Section 11.19. Survival of Representations and Warranties              33

ARTICLE XII
AFFIRMATIVE COVENANTS                                                           33

         Section 12.1. Financial Statements; Other Reporting Requirements       33

         Section 12.2. Notice of Default; Litigation; ERISA Matters             35

         Section 12.3. Maintenance of Existence, Properties and Liens           35

         Section 12.4. Taxes                                                    35

         Section 12.5. Compliance with Environmental Laws                       35

         Section 12.6. Further Assurances                                       37

         Section 12.7. Financial Covenants                                      37

         Section 12.8. Operations                                               37

         Section 12.9. Change of Location                                       38

         Section 12.10. Employee Benefit Plans                                  38
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
<S>      <C>                                                                    <C>
         Section 12.11. Deposit and Operating Accounts                          38

         Section 12.12. Field Audits; Other Information                         38

         Section 12.13. Insurance                                               38

         Section 12.14. Subsidiaries                                            38

         Section 12.15. Collateral Documents                                    39

         Section 12.16. Post-Closing Requirements                               39

         Section 12.17. Excluded Subsidiaries                                   39

ARTICLE XIII
NEGATIVE COVENANTS                                                              40

         Section 13.1. Limitations on Fundamental Changes                       40

         Section 13.2. Disposition of Assets                                    40

         Section 13.3. Intentionally Omitted                                    40

         Section 13.4. Encumbrances; Negative Pledge                            40

         Section 13.5. Debts                                                    42

         Section 13.6. Investments, Loan and Revolving Loans                    43

         Section 13.7. Intentionally Omitted                                    44

         Section 13.8. Transactions with Affiliates                             44

ARTICLE XIV
EVENTS OF DEFAULT                                                               44

         Section 14.1. Events of Default                                        44

         Section 14.2. Waivers                                                  46

ARTICLE XV
THE AGENT AND THE LENDERS                                                       47

         Section 15.1. Appointment and Authorization                            47
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
<S>      <C>                                                                    <C>
         Section 15.2. Intentionally Omitted                                    48

         Section 15.3. Consultation with Counsel                                48

         Section 15.4. Documents                                                48

         Section 15.5. Resignation or Removal of Agent                          48

         Section 15.6. Responsibility of Agent                                  48

         Section 15.7. Independent Investigation                                50

         Section 15.8. Indemnification                                          50

         Section 15.9. Benefit of Article XV                                    50

         Section 15.10. Pro Rata Treatment                                      50

         Section 15.11. Intentionally Omitted                                   51

         Section 15.12. Other Financings                                        51

         Section 15.13. Interests of the Lenders                                51

         Section 15.14. Investments                                             51

ARTICLE XVI
MISCELLANEOUS                                                                   52

         Section 16.1. No Waiver; Modification in Writing                       52

         Section 16.2. Addresses for Notices                                    52

         Section 16.3. Fees and Expenses                                        53

         Section 16.4. Right of Set-off                                         53

         Section 16.5. Waiver of Marshaling                                     53

         Section 16.6. Governing Law                                            53

         Section 16.7. Consent to Loan Participation                            53

         Section 16.8. Consent to Syndication                                   54
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
<S>      <C>                                                                     <C>
         Section 16.9. Permitted Assignment                                     54

         Section 16.10. Indemnity                                               54

         Section 16.11. Maximum Interest Rate                                   56

         Section 16.12. Waiver of Jury Trial; Submission to Jurisdiction        56

         Section 16.13. Severability                                            57

         Section 16.14. Headings                                                57

         Section 16.15. Confidentiality 57

         SCHEDULES

         Schedule 1.1(a ) Excluded Subsidiaries

         Schedule 1.1(b) Guarantors

         Schedule 6 Designated Fee Account

         Schedule 11.3 Litigation

         Schedule 13.4 Encumbrances

         Schedule 13.5 Existing Indebtedness

         Schedule 13.6 Existing Investments

         Schedule 13.8 Transactions with Affiliates
</TABLE>

<PAGE>

                                CREDIT AGREEMENT

     THIS CREDIT AGREEMENT (the  "Agreement")  dated as of February 20, 2008, is
by and among LHC GROUP,  INC.,  a Delaware  corporation  (the  "Borrower"),  the
LENDERS, and CAPITAL ONE, NATIONAL ASSOCIATION,  a national banking association,
individually  as  a  Lender  and  as  Administrative   Agent,  and  CAPITAL  ONE
CORPORATION, as sole bookrunner and sole lead arranger.

                                    ARTICLE I

                        DEFINITIONS AND ACCOUNTING TERMS

     Section 1.1. Defined Terms. As used in this Agreement, and unless the

     context requires a different meaning, the following terms have the meanings
     indicated:

     "Accordion  Option" shall have the meaning assigned to such term in Section
     2.4 of this Agreement.

     "Acquisition" shall mean any transaction or series of related transactions,
     consummated  on or after  the date  hereof,  by which the  Borrower  or any
     Subsidiary directly,  (i) acquires a majority voting interest in any active
     business, or all or substantially all of the assets, of any Person, whether
     through  purchase  of  assets,  merger  or  otherwise,   or  (ii)  acquires
     securities  or other  ownership  interests of any Person  having at least a
     majority of combined  voting power of the then  outstanding  securities  or
     other ownership interests of such Person.

     "Agent"  shall mean Capital One,  National  Association  in its capacity as
     contractual,  administrative,  and collateral representative of the Lenders
     pursuant to Article XV, and not in its individual capacity as a Lender, and
     any successor Agent appointed pursuant to Article XV.

     "Agreement" shall mean this Credit Agreement,  as the same may from time to
     time be amended,  modified,  supplemented,  or restated  and in effect from
     time to time.

     "Base Rate" shall mean the base rate of interest  established  from time to
     time by The Wall Street  Journal,  as the "prime" lending rate on corporate
     loans posted by at least seventy-five  percent (75%) of the nation's thirty
     largest banks,  and which is not necessarily the lowest rate charged by any
     of the  Lenders,  such rate to be adjusted  automatically  on and as of the
     effective date of any change in such Base Rate.

     "Base Rate Interest Period" shall mean, with respect to any Base Rate Loan,
     the period ending on the last day of each month,  provided,  however,  that
     (i) if any Base  Rate  Interest  Period  would  end on a day which is not a
     Business Day, such Interest Period shall be extended to the next succeeding
     Business Day, and (ii) if any Base Rate Interest Period would otherwise end
     after  the  Termination  Date,  such  Interest  Period  shall  end  on  the
     Termination Date.

Page 1 of 59
<PAGE>

     "Base Rate  Loans"  shall  mean any Loan  during  any  period  which  bears
     interest based upon the Base Rate.

     "Base Rate Margin" shall mean, with respect to each Base Rate Loan:

          (i)  minus 0.25% if the Leverage Ratio is less than 1.00 to 1.0; or

          (ii) plus 0.00% if the Leverage Ratio is greater than or equal to 1.00
               to 1.0.

     The Base Rate Margin  shall be  determined  by the Agent from time to time,
     based on the Leverage Ratio as set forth in the Compliance Certificate most
     recently  delivered  by the  Borrower  pursuant  to  Section  12.1(c).  Any
     adjustment  to the Base Rate Margin shall be effective (a) in the case of a
     Compliance  Certificate  delivered in connection  with quarterly  financial
     statements of the Borrower delivered pursuant to Section 12.1(b), as of the
     date 60 days  following  the end of the last day of the  applicable  fiscal
     quarter  covered by such Compliance  Certificate,  and (b) in the case of a
     Compliance  Certificate  delivered  in  connection  with  annual  financial
     statements of the Borrower delivered pursuant to Section 12.1(a), as of the
     date 90 days  following  the end of the last day of the  applicable  fiscal
     year  covered by such  Compliance  Certificate.  If the  Borrower  fails to
     deliver a Compliance Certificate pursuant to Section 12.1(c), the Base Rate
     Margin  shall  equal  the  percentage  corresponding  to item  (ii) of this
     definition  until  the  date of the  delivery  of the  required  Compliance
     Certificate.  As of the  date  hereof,  and  thereafter  until  changed  as
     provided  above,  the Base Rate Margin is determined  based on item (ii) of
     this definition.

     "Borrower" shall mean LHC Group, Inc., a Delaware corporation,

     together with its successors and assigns.

     "Borrowing Date" means the date elected by Borrower pursuant to

     Section 2.2.4. hereof for a Revolving Loan.

     "Business  Day" means a day other than a Saturday,  Sunday or legal holiday
     for  commercial  banks under the laws of the State of Louisiana or a day on
     which national  banks are  authorized to be closed in Lafayette  and/or New
     Orleans, Louisiana.

     "Capital Lease Obligations" means any Debt represented by obligations under
     a lease that is required to be capitalized for financial reporting purposes
     in accordance with GAAP.

     "Capital One" means Capital One,  National  Association  in its  individual
     capacity as a Lender, and its successors and assigns.

Page 2 of 59
<PAGE>

     "Collateral"  shall mean any  interest  in any kind of  property  or assets
     pledged,  mortgaged or otherwise  subject to an Encumbrance in favor of the
     Agent for the benefit of the Lenders pursuant to the Collateral Documents.

     "Collateral  Documents" shall  collectively  refer to any and all documents
     now or hereafter in which an  Encumbrance is created on any property of the
     Borrower or of any other Person to secure payment of the  Indebtedness  (or
     any part thereof) of the Borrower to the Lenders  under this  Agreement and
     the Notes,  including the Pledge Agreement and any joinder thereto executed
     by the Borrower and any Guarantor.

     "Commitments"  shall mean  collectively the Line of Credit Loan Commitments
     of each Lender as specified on the signature  page(s) of this  Agreement or
     specified in connection  with an  assignment  made pursuant to Section 16.9
     hereof.

     "Commitment  Percentage"  shall mean for each Lender the  percentage of the
     Commitment  of  such  Lender  divided  by  the  aggregate   amount  of  all
     Commitments of all Lenders.

     "Compliance  Certificate"  shall have the meaning  assigned to such term in
     Section 12.1(c) of this Agreement.

     "Consolidated  Current  Assets"  shall  mean the  total  of the  Borrower's
     consolidated current assets determined in accordance with GAAP.

     "Consolidated  Current  Liabilities" shall mean the total of the Borrower's
     consolidated  current  liabilities  plus the existing  outstanding  balance
     under the Line of Credit, determined in accordance with GAAP.

     "Debt" shall mean without duplication: (i) indebtedness for borrowed money;
     (ii) the face amounts of all outstanding  standby and commercial letters of
     credit and bankers acceptances,  matured or unmatured,  issued on behalf of
     Borrower;  (iii) guaranties of the Debt of any other Person, whether direct
     or indirect, whether by agreement to purchase the indebtedness of any other
     Person or by  agreement  for the  furnishing  of funds to any other  Person
     through the purchase or lease of goods,  supplies or services (or by way of
     stock purchase, capital contribution, advance or loan) in each case for the
     purpose of paying or discharging the Debt of any other Person; and (iv) the
     present  value  of all  obligations  for  the  payment  of  rent or hire of
     property of any kind (real or personal)  under  leases or lease  agreements
     required to be capitalized under GAAP.

     "Default"  shall mean an event which with the giving of notice or the lapse
     of time (or both) would constitute an Event of Default hereunder.

     "Defaulting Lender" is used herein as defined in Section 3.1.4 hereof.

     "Disposition" means any sale, transfer, lease, contribution,  conveyance or
     other  disposition  (including  by way of merger)  of, or the  granting  of
     options,  warrants or other rights to, any asset to any other Person (other
     than to the Borrower or a Subsidiary)  in one or a series of  transactions.
     The term "Dispose" has a correlative meaning.

Page 3 of 59
<PAGE>

     "Dollars" and "$" shall mean lawful money of the United States of America.

     "EBITDA" shall mean the Borrower's  consolidated  earnings  before interest
     taxes, depreciation, and amortization, all as determined in accordance with
     GAAP.

     "Encumbrances"  shall mean individually,  collectively and  interchangeably
     any and all presently existing and/or future mortgages,  liens, privileges,
     servitudes,  rights-of-way and other contractual  and/or statutory security
     interests  and  rights of every  nature  and kind  that,  now and/or in the
     future may affect the property of Borrower or any part or parts thereof.

     "Environmental  Laws"  shall  mean any  federal,  state,  local  or  tribal
     statute, law, rule, regulation, ordinance, code, permit, consent, approval,
     license,  written  policy or rule of common law now or  hereafter in effect
     and  in  each  case  as  amended,   and  any  judicial  or   administrative
     interpretation  thereof,  including any judicial or  administrative  order,
     injunction,   consent  decree  or  judgment,   or  other  authorization  or
     requirement  whenever  promulgated,   issued  or  modified,  including  the
     requirement  to register  underground  storage  tanks,  well  plugging  and
     abandonment  requirements,  and  oil and gas  waste  disposal  requirements
     relating to:

          (i) emissions,  discharges,  spills, migration,  movement, releases or
     threatened releases of pollutants,  contaminants,  Hazardous Materials,  or
     hazardous  or toxic  materials or wastes into or onto soil,  land,  ambient
     air, surface water,  ground water,  watercourses,  publicly owned treatment
     works, drains, sewer systems, wetlands or septic systems;

          (ii) the use, treatment,  storage, disposal, handling,  manufacturing,
     transportation,  or shipment of Hazardous  Materials  or  hazardous  and/or
     toxic  wastes,  material,  products  or  by-products  containing  Hazardous
     Materials (or of equipment or apparatus containing Hazardous Materials); or

          (iii)  otherwise  relating to  pollution  or the  protection  of human
     health or the environment, including, without limitation, the Comprehensive
     Environmental Response,  Compensation, and Liability Act of 1980, 42 U.S.C.
     ss.ss.  9601 et seq., as amended,  the Resource  Conservation  and Recovery
     Act, 42 U.S.C.  ss.ss.  6901 et seq., as amended,  the Hazardous  Materials
     Transportation  Act, 49 U.S.C.  ss.ss. 1801 et seq., as amended,  the Clean
     Water Act, 33 U.S.C. ss.ss. 1251 et seq., as amended,  the Toxic Substances
     Control Act, 15 U.S.C. ss.ss. 2601 et seq., as amended,  the Clean Air Act,
     42 U.S.C.  ss.ss.  7401 et seq., as amended,  the federal  Water  Pollution
     Control  Act, 33 U.S.C.  ss. 1251 et seq.,  as amended,  the Safe  Drinking
     Water Act, 42 U.S.C.  ss.ss.  300f et seq.,  as amended,  the Atomic Energy
     Act, 42 U.S.C.  ss.ss.  2011 et seq., as amended,  the Natural Gas Pipeline
     Safety Act of 1968,  49 U.S.C.  ss. 1671 et seq.,  as amended,  the Federal
     Insecticide, Fungicide and Rodenticide Act, 7 U.C.S. ss.ss. 136 et seq., as
     amended,  and the Occupational  Safety and Health Act, 29 U.S.C. ss.ss. 651
     et seq., as amended, and all comparable statutes of the State of Louisiana,
     and all comparable local Governmental Requirements in such state.

Page 4 of 59
<PAGE>

     "Environmental  Liabilities"  means with respect to any Person, any and all
     liabilities,  responsibilities,  losses, sums paid in settlement of claims,
     obligations,  charges,  actions  (formal or informal),  claims  (including,
     without  limitation,  claims for personal  injury or for property  damage),
     liens, administrative proceedings,  damages (including, without limitation,
     loss or  damage  resulting  from the  occurrence  of an Event of  Default),
     punitive damages,  consequential damages, treble damages, penalties, fines,
     monetary sanctions,  interest, court costs, response and remediation costs,
     stabilization costs,  encapsulation costs, treatment,  storage, or disposal
     costs, groundwater monitoring or environmental sampling costs, other causes
     of action and any other costs and expenses (including,  without limitation,
     reasonable   attorneys',   experts',   and  consultants'   fees,  costs  of
     investigation and feasibility  studies and disbursements in connection with
     any investigative,  administrative or judicial proceeding),  whether direct
     or indirect,  known or unknown,  absolute or contingent,  past,  present or
     future arising under,  pursuant to or in connection with any  Environmental
     Law, or any other binding obligation of such Person requiring  abatement of
     pollution or protection of human health and the environment.

     "Environmental  Lien" means a Lien in favor of any  Governmental  Authority
     for (i) any  liability  under  Environmental  Laws or (ii) damages  arising
     from, or costs  incurred by such  Governmental  Authority in response to, a
     Release  or  threatened   Release  of  a  Hazardous   Materials   into  the
     environment.

     "ERISA" shall mean the Employee  Retirement Income Security Act of 1974, as
     amended from time to time.

     "ERISA  Group"  means the  Borrower,  any  Subsidiary  and all members of a
     controlled group of corporations  and all trades or businesses  (whether or
     not incorporated) under common control which, together with the Borrower or
     any  Subsidiary,  are treated as a single employer under Section 414 of the
     Internal Revenue Code.

     "Excluded  Subsidiary"  shall mean any entity listed on Schedule 1.1(a) and
     any  Subsidiary  in which the owner of the minority  ownership  interest in
     such entity has not consented to the execution, delivery and performance of
     the Guaranty by such  entity;  provided  that the  Borrower  shall have put
     forth reasonable efforts to obtain such consent.

     "Eurodollar  Business Day" shall mean any date other than Saturday,  Sunday
     or a  day  on  which  banking  institutions  are  generally  authorized  or
     obligated  by law or  executive  order  to  close  in the  City of  London,
     England.

     "Eurodollar  Interest  Period" shall mean,  with respect to any  Eurodollar
     Loan (i) initially,  the period commencing on the date such Eurodollar Loan
     is made and ending one (1) month (or such other  period  agreed upon by the
     Borrower  and the Lenders)  thereafter,  and (ii)  thereafter,  each period
     commencing on the day following the last day of the next preceding Interest
     Period applicable to such Eurodollar Loan and ending one (1) month (or such
     other  period  agreed upon by the  Borrower  and the  Lenders)  thereafter;
     provided,  however,  that  (a)  if any  Eurodollar  Interest  Period  would
     otherwise expire on a day which is not a Business Day, such Interest Period
     shall expire on the next succeeding  Business Day unless the result of such
     extension  would be to extend such  Interest  Period into the next calendar
     month,  in which case such  Interest  Period  shall end on the  immediately
     preceding Business Day, (b) if any Eurodollar Interest Period begins on the
     last  Business  Day of a calendar  month (or on a day for which there is no
     numerically  corresponding  day in the  calendar  month  at the end of such
     Interest Period) such Interest Period shall end on the last Business Day of
     a calendar  month,  and (c) any  Eurodollar  Interest  Period  which  would
     otherwise  expire after the  Termination  Date shall end on the Termination
     Date.

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     "Eurodollar  Loan"  shall  mean any Loan  during  any  period  which  bears
     interest at the Eurodollar Rate.

     "Eurodollar  Margin" shall mean with respect to each  Eurodollar Loan under
     the Line of Credit:

          (i)  1.25% per annum if the Leverage Ratio is less than 1.00 to 1.0;

          (ii) 1.50% per annum if the Leverage Ratio is greater than or equal to
               1.00 to 1.0 but less than 1.50 to 1.0;

          (iii) 1.75% per annum if the  Leverage  Ratio is greater than or equal
               to 1.50 to 1.0 but less than 2.00 to 1.0; or

          (iv) 2.00% per annum if the Leverage Ratio is greater than or equal to
               2.00 to 1.0.

     The  Eurodollar  Margin shall be determined by the Agent from time to time,
     based on the Leverage Ratio as set forth in the Compliance Certificate most
     recently  delivered  by the  Borrower  pursuant  to  Section  12.1(c).  Any
     adjustment to the Eurodollar Margin shall be effective (a) in the case of a
     Compliance  Certificate  delivered in connection  with quarterly  financial
     statements of the Borrower delivered pursuant to Section 12.1(b), as of the
     date 60 days  following  the end of the last day of the  applicable  fiscal
     quarter  covered by such Compliance  Certificate,  and (b) in the case of a
     Compliance  Certificate  delivered  in  connection  with  annual  financial
     statements of the Borrower delivered pursuant to Section 12.1(a), as of the
     date 90 days  following  the end of the last day of the  applicable  fiscal
     year  covered by such  Compliance  Certificate.  If the  Borrower  fails to
     deliver  a  Compliance   Certificate   pursuant  to  Section  12.1(c),  the
     Eurodollar Margin shall equal the percentage  corresponding to item (iv) of
     this definition  until the date of the delivery of the required  Compliance
     Certificate.  As of the  date  hereof,  and  thereafter  until  changed  as
     provided above,  the Eurodollar  Margin is determined  based on item (i) of
     this definition.

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<PAGE>

     "Eurodollar  Rate"  shall  mean with  respect  to any  Eurodollar  Interest
     Period,  the  offered  rate  for U.S.  Dollar  deposits  of not  less  than
     $1,000,000 as of 11:00 A.M. City of London, England time two (2) Eurodollar
     Business Days prior to the first date of each Eurodollar Interest Period as
     shown  on the  display  designated  as  "British  Bankers  Assoc.  Interest
     Settlement Rates" on the Telerate system ("Telerate"), Reuters Screen LIBOR
     01 Page,  or such other page or pages as may replace such pages on Telerate
     for the purpose of displaying such rate,  rounded upwards,  if necessary to
     the nearest  1/16% and adjusted  for the maximum cost of reserves,  if any.
     Provided, however, that if such rate is not available on Telerate then such
     offered rate shall be otherwise independently obtained by the Agent from an
     alternate,  substantially similar independent source available to the Agent
     or shall be calculated by the Agent by substantially similar methodology as
     that theretofore used to determine such offered rate in Telerate.

     "Event   of   Default"   shall   mean   individually,    collectively   and
     interchangeably  any of the  Events of Default  set forth  below in Section
     14.1. hereof.

     "Federal  Funds Rate"  means,  for any day, the rate per annum equal to the
     weighted average of the rates on overnight  federal funds  transaction with
     members of the Federal  Reserve System  arranged by federal fund brokers on
     such day,  as  published  by the  Federal  Reserve  Bank of New York on the
     Business Day, next succeeding such day; provided, however, that (i) if such
     day is not a Business  Day,  the  Federal  Funds Rate for such day shall be
     such rate on such  transactions  on the next  preceding  Business Day as so
     published on the next succeeding  Business Day, and (ii) if no such rate is
     so published on the next  succeeding  Business  Day, the Federal Funds Rate
     for such day shall be the average of  quotations  for such  Business Day on
     such  transactions  received  by the Agent  from  three (3)  federal  funds
     brokers of  recognized  standing  selected by it. If, for any  reason,  the
     Agent  shall have  determined  (which  determination  shall be  conclusive,
     absent  manifest  error) that it is unable to ascertain  the Federal  Funds
     Rate,  including the inability or failure of the Agent to obtain sufficient
     quotations  in  accordance  with the terms  hereof,  the Base Rate shall be
     determined  without  regard to  clause  (i) of the  first  sentence  of the
     definition  of  Base  Rate  until  the  circumstances  giving  rise to such
     inability no longer exist.

     "GAAP" shall mean, at any time, accounting principles generally accepted in
     the United States as then in effect.

     "Governmental Authority" shall mean any nation or government,  any state or
     other  political  subdivision  thereof,  or  entity  exercising  executive,
     legislative,   judicial,  regulatory  or  administrative  functions  of  or
     pertaining to government.

     "Governmental  Requirement"  shall mean any  applicable  state,  federal or
     local law, statute, ordinance, code, rule, regulation, order or decree.

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<PAGE>

     "Guarantor" means  individually and collectively,  each entity set forth on
     Schedule 1.1(b), and each of their respective  successors and assigns,  and
     any future Subsidiary of Borrower that is not an Excluded Subsidiary.

     "Guaranty"  means that certain  Commercial  Guaranty of even date with this
     Agreement  executed by each Guarantor in favor of the Agent for the ratable
     benefit of the Lenders, as amended,  supplemented and/or restated from time
     to time and in effect, and any joinder to such Commercial Guaranty executed
     after the date of the Agreement by a Subsidiary of the Borrower that is not
     an Excluded Subsidiary.

     "Hazardous Materials" means (1) hazardous materials,  hazardous wastes, and
     hazardous  substances  including,  but not  limited to,  those  substances,
     materials   and  wastes   listed  in  the  United   States   Department  of
     Transportation  Hazardous  Materials  Table,  49  C.F.R.  ss.  172.101,  as
     amended,  or  listed  by the  federal  Environmental  Protection  Agency as
     hazardous  substances under or pursuant to 40 C.F.R.  Part 302, as amended,
     or  substances,  materials,  contaminants  or  wastes  which  are or become
     regulated under any Environmental Law, including without limitation,  those
     substances,  materials,  contaminants or wastes as defined in the following
     statutes  and  their  implementing  regulations:  the  Hazardous  Materials
     Transportation  Act, 49 U.S.C.  ss. 1801 et seq., as amended,  the Resource
     Conservation and Recovery Act, 42 U.S.C. ss. 6901 et seq., as amended,  the
     Comprehensive  Environmental  Response,  Compensation and Liability Act, 42
     U.S.C. ss. 9601 et seq., as amended,  the Toxic Substances  Control Act, 15
     U.S.C. ss. 2601 et seq., as amended,  the Clean Air Act, 42 U.S.C. ss. 7401
     et seq., as amended, the federal Water Pollution Control Act, 33 U.S.C. ss.
     1251 et seq., as amended,  the Occupational Safety and Health Act, 2 U.S.C.
     ss. 651 et seq., as amended, the Safe Drinking Water Act, 42 U.S.C. ss.300f
     et seq.,  as amended and the Natural Gas  Pipeline  Safety Act of 1968,  49
     U.S.C.  ss.  1671 et  seq.,  as  amended;  (2) all  substances,  materials,
     contaminants  or wastes listed in all comparable  statutes of the States of
     Louisiana and Texas and in  comparable  local  Requirements  of Law in such
     states;  (3) acid gas,  sour  water  streams or sour  water  vapor  streams
     containing hydrogen sulfide or other forms of sulphur,  sodium hydrosulfide
     and ammonia;  (4)  Hydrocarbons;  (5) natural gas,  synthetic  gas, and any
     mixtures  thereof;  (6) asbestos  and/or any material  which contains 1% or
     more,  by weight,  of any  hydrated  mineral  silicate,  including  but not
     limited to chrysotile, amosite, crocidolite, tremolite, anthophylite and/or
     actinolite,  whether friable or  non-friable;  (7) PCB's, or PCB containing
     materials  or  fluids;  (8)  radon;  (9)  naturally  occurring  radioactive
     material,  radioactive  substances or waste;  (10) salt water and other oil
     and gas wastes and (11) any other hazardous or noxious substance, material,
     pollutant, emission, or solid, liquid or gaseous waste.

     "Indebtedness" shall mean, at any time, all obligations,  indebtedness, and
     liabilities, whether now existing or arising in the future, of the Borrower
     to the  Lenders  or any of  them  (or  in  the  case  of a Rate  Management
     Transaction,  any  affiliate  thereof)  pursuant  to or  arising  under the
     Agreement,  including all  Reimbursement  Obligations,  obligations  of the
     Borrower  under  Rate  Management  Transactions  (including  all  renewals,
     extensions,  modifications,  and substitution thereof and therefor) and all
     cancellations,  buy backs, reversals,  terminations, or assignments of Rate
     Management Transactions,  and the indebtedness of the Borrower evidenced by
     the Notes,  including principal,  interest,  costs, expenses and reasonable
     attorneys' fees and all other fees and charges,  together with all fees and
     other  indebtedness  and costs and  expenses  for  which  the  Borrower  is
     responsible under this Agreement or under any of the Related Documents.

Page 8 of 59
<PAGE>

     "Interest  Payment  Date"  shall  mean (i) for a Base Rate  Loan,  the last
     Business Day of each month such Loan is outstanding,  (ii) for a Eurodollar
     Loan, the last Eurodollar  Business Day of each Eurodollar  Interest Period
     for such Loan.

     "Interest  Period" shall mean any Base Rate  Interest  Period or Eurodollar
     Interest Period.

     "Internal  Revenue  Code"  means  the  Internal  Revenue  Code of 1986,  as
     amended.

     "Investment"  means, with respect to any Person,  (a) the purchase or other
     acquisition of any stock or other equity interest in another Person,  (b) a
     loan,  advance or  extension  of credit  to,  capital  contribution  to, or
     purchase or other  acquisition of any Debt of, another  Person,  or (c) the
     purchase  or  other   acquisition  (in  one  transaction  or  a  series  of
     transactions) of assets of another Person that constitute the business or a
     division or operating unit of another Person.

     "Lenders"  shall  mean the  lending  institutions  listed on the  signature
     page(s) of this Agreement, and their respective successors and assigns, and
     any  other  lending  institutions  that  become  a  signatory  party to the
     Agreement in the future.

     "Letters of Credit"  shall mean the  letters of credit  issued by the Agent
     pursuant to Section 2.2.2. hereof.

     "Leverage   Ratio"  shall  mean  the  ratio   produced  by  the   following
     calculation:  the sum of all senior  funded  Debt by the  Lenders or any of
     them to Borrower and/or any Guarantor  divided by EBITDA,  tested quarterly
     on a rolling four quarters basis.

     "Liabilities"  shall mean, as to any Person, all indebtedness,  liabilities
     and obligations of such Person, whether matured or unmatured, liquidated or
     unliquidated,  primary or secondary, direct or indirect, absolute, fixed or
     contingent, and whether or not required to be considered pursuant to GAAP.

     "Line of  Credit"  shall  mean the  revolving  line of  credit in the total
     maximum  aggregate  principal  amount of the  Commitments  extended  by the
     Lenders pursuant to the Line of Credit Loan Commitment.

     "Line  of  Credit  Loan  Commitment"   shall  mean  (i)  for  all  Lenders,
     $25,000,000.00 or such other amount pursuant to Section 2.4; and (ii) as to
     any Lender,  its  obligation to make Revolving  Loans  hereunder on its Pro
     Rata  Part  of the  Line of  Credit  and  purchase  its  Pro  Rata  Part of
     participations  in  Letters  of  Credit  issued  hereunder  by the Agent in
     amounts not exceeding an amount equal to its  Commitment  Percentage  times
     the  Line  of  Credit  Loan   Commitment   in  existence  at  the  time  of
     determination.

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<PAGE>

     "Loans" shall mean, collectively, all Revolving Loans.

     "Loan Documents" shall mean this Agreement,  the Notes, any other documents
     and instruments  evidencing any portion of the Indebtedness,  the Guaranty,
     the Collateral Documents, and any other instruments and documents,  whether
     now or hereafter existing, executed in connection with the Indebtedness.

     "Material  Adverse  Effect"  shall  mean an event  which  causes a material
     adverse effect on the business,  assets,  operations or financial condition
     of the Borrower and its Subsidiaries, taken as a whole.

     "Maximum Rate" shall mean, at any particular time in question,  the maximum
     non-usurious  rate of  interest  which  under  applicable  law may  then be
     charged on the  Indebtedness or any other  obligations  hereunder.  If such
     Maximum  Rate  changes  after the date  hereof,  the Maximum  Rate shall be
     automatically increased or decreased, as the case may be, without notice to
     Borrower  from time to time as the  effective  date of each  change in such
     Maximum Rate.

     "Multiemployer  Plan"  means at any time a  multiemployer  plan  within the
     meaning  of  Section  4001(a)(3)  of ERISA to which any member of the ERISA
     Group is then making or accruing an obligation to make contributions or has
     within the  preceding  five plan years made  contributions,  including  for
     these  purposes  any Person  which ceased to be a member of the ERISA Group
     during such five year period.

     "Notes" shall mean the Revolving Notes.

     "Other Financing" is used herein as defined in Section 15.12. hereof.

     "Payor" is used herein as defined in Section 3.1.6. hereof.

     "Permitted  Encumbrances"  shall have the meaning  ascribed to such term in
     Section 13.4. hereof.

     "Permitted Investments" means (a) direct obligations of, or obligations the
     principal of and interest on which are  unconditionally  guaranteed by, the
     United  States of  America  (or by any agency  thereof  to the extent  such
     obligations are backed by the full faith and credit of the United States of
     America),  in  each  case  maturing  within  one  year  from  the  date  of
     acquisition  thereof;  (b) Investments in commercial  paper maturing within
     270 days from the date of acquisition  thereof and having,  at such date of
     acquisition,  the highest credit rating  obtainable  from Standard & Poor's
     Ratings Service or from Moody's Investors Service, Inc.; (c) Investments in
     certificates of deposit,  banker's  acceptances and time deposits  maturing
     within one year from the date of  acquisition  thereof issued or guaranteed
     by or placed with, and money market deposit  accounts issued or offered by,
     any domestic  office of any commercial bank organized under the laws of the
     United States of America or any State  thereof that has a combined  capital
     and surplus and  undivided  profits of not less than  $250,000,000.00;  (d)
     fully collateralized  repurchase agreements with a term of not more than 30
     days for  securities  described in clause (a) above and entered into with a
     financial  institution  satisfying  the  criteria  described  in clause (c)
     above; and (e) shares of funds registered under the Investment  Company Act
     of 1940, as amended,  that have assets of at least  $100,000,000 and invest
     only in  obligations  described  in clauses  (a)  through  (d) above to the
     extent that such  shares are rated by Moody's  Investors  Service,  Inc. or
     Standard  &  Poor's  Ratings  Service  in  one of the  two  highest  rating
     categories assigned by such agency for shares of such nature.

Page 10 of 59
<PAGE>

     "Person"  shall mean an individual or a  corporation,  partnership,  trust,
     joint venture,  incorporated  or  unincorporated  association,  joint stock
     company,  government,  or an agency or political  subdivision  thereof,  or
     other entity of any kind.

     "Pledge  Agreement" shall mean that certain  Security  Agreement by certain
     Subsidiaries  of the  Borrower in favor of the Agent,  affecting  ownership
     interests in certain Excluded  Subsidiaries,  as the Security Agreement may
     be amended,  supplemented  and/or restated from time to time and in effect,
     and any joinder to such Security  Agreement executed by a Subsidiary of the
     Borrower.

     "Pro  Rata" or "Pro Rata  Part"  shall  mean for each  Lender,  (i) for all
     purposes where no Loan is outstanding,  such Lender's Commitment Percentage
     for  matters  relating  to the  Line of  Credit  Loan  Commitment  and (ii)
     otherwise,  the proportion which the portion of the outstanding  Loans owed
     to such Lender bears to the aggregate  outstanding Loans owed to Lenders at
     the time in question (calculated separately for each Lender for Loans under
     the Line of Credit).

     "Purchase   Money   Indebtedness"   means  Debt  incurred  to  finance  the
     acquisition,  construction  or improvement of any fixed or capital  assets,
     including  Debt  assumed in  connection  with the  acquisition  of any such
     assets  or  secured  by an  Encumbrance  on any  such  assets  prior to the
     acquisition thereof, and any extension,  renewal or replacement of any such
     Debt.

     "Rate Management Transaction" means any transaction (including an agreement
     with respect  thereto)  now existing or hereafter  entered into between the
     Borrower and any Lender or affiliate  thereof which is (i) an interest rate
     protection agreement, foreign currency exchange agreement or other interest
     or interest rate hedging  agreement entered into in the ordinary course and
     not for speculative purposes or (ii) a commodity price hedging agreement or
     arrangement  entered  into in the ordinary  course and not for  speculative
     purposes.

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<PAGE>

     "Reimbursement  Obligations"  shall mean at any time,  the  obligations  of
     Borrower in respect of all Letters of Credit then  outstanding to reimburse
     amounts  paid by the  Lenders (or any of them) in respect of any drawing or
     drawings under a Letter of Credit.

     "Release" means any release,  spill,  emission,  leak, injection,  deposit,
     disposal,  discharge,  dispersal,  leaching or migration  of any  Hazardous
     Materials  into  the  environment  or into or out of any real  property  of
     Borrower,  including the movement of Hazardous  Materials through or in the
     air, soil, surface water, groundwater and/or land which could reasonably be
     expected to form the basis of an Environmental Liability against Borrower.

     "Remedial Action" means any action to (i) clean up, remove, treat or in any
     other way address Hazardous Materials in the environment,  (ii) prevent the
     Release or threat of Release or minimize  the further  Release of Hazardous
     Materials  so they do not  mitigate  or  endanger  or  threaten to endanger
     public health or welfare or the  environment or (iii) perform  pre-remedial
     studies and investigations and post-remedial monitoring and care.

     "Request  for  Revolving  Loan"  shall mean the  Borrower's  request  for a
     Revolving Loan.

     "Required  Lenders"  shall  mean (i) if there are two (2) or fewer  Lenders
     under this Agreement, then "Required Lenders" shall mean all Lenders (other
     than Defaulting Lenders who are not entitled to vote); or (ii) if there are
     three (3) or more Lenders under this  Agreement,  then  "Required  Lenders"
     shall  mean  Lenders  having  more  than  sixty-six  percent  (66%)  of the
     aggregate amount of the Commitments (not held by Defaulting Lenders who are
     not  entitled  to vote),  or if the  Commitments  have been  terminated  or
     reduced to zero,  Lenders holding more than 66% of the principal  amount of
     the aggregate outstanding Loans and Reimbursement  Obligations (not held by
     Defaulting  Lenders who are not entitled to vote).  Commitments,  Revolving
     Loans and  Reimbursement  Obligation  held by  Defaulting  Lenders shall be
     disregarded  when  determining the Required  Lenders.  For purposes of this
     definition,  a Lender (other than the Agent with respect to the Swing Line)
     shall be deemed to hold a Swing Line interest or a Reimbursement Obligation
     to the extent such Lender has acquired a  participation  therein  under the
     terms of this  Agreement and has not failed to perform its  obligations  in
     respect of such participation.

     "Required Payment" is used herein as defined in Section 3.1.6 hereof.

     "Revolving  Loans"  shall  mean  all  advances  under  the  Line of  Credit
     (including  advances  under the Swing Line) made by the  Lenders  under the
     Notes to the Borrower in accordance  with and subject to the terms of their
     respective Commitments.

     "Revolving  Notes" shall mean collectively (i) the promissory notes of even
     date herewith in the maximum  aggregate  principal amount of the Commitment
     of each  Lender  party  hereto and  substantially  in the form of Exhibit C
     attached  hereto,  executed by Borrower,  (ii) any promissory note or notes
     that may be  executed  by  Borrower  in the future  that are payable to the
     order  of a  Lender  pursuant  to the  Agreement,  and  (iii)  any  and all
     modifications,   renewals,   and/or  extension  of  any  of  the  foregoing
     promissory notes.

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<PAGE>

     "Required Payment" is used herein as defined in Section 3.1.6 hereof.

     "Solvent"  shall mean, when used with respect to any Person on a particular
     day, that on such date (i) the fair value of the property of such Person is
     greater than the total amount of liabilities, including without limitation,
     contingent liabilities, of such person, (ii) the present fair salable value
     of the  assets  of such  person is not less  than the  amount  that will be
     required to pay the probable  liability of such Person on its debts as they
     become absolute and matured,  (iii) such Person is able to realize upon its
     assets and pay its debts and other liabilities,  contingent obligations and
     other  commitments as they mature in the ordinary course of business,  (iv)
     such Person does not intend to, and does not  believe  that it will,  incur
     debts and liabilities beyond such Person's ability to pay as such debts and
     liabilities  mature,  and (v) such  Person is not  engaged in business or a
     transaction,  and is not about to engage in business or a transaction,  for
     which such Person's  property would constitute  unreasonably  small capital
     after giving due  consideration to the prevailing  practice in the industry
     in which such  person is engaged.  In  computing  the amount of  contingent
     liabilities  at any time,  it is  intended  that such  liabilities  will be
     computed  at  the  amount  which,   in  light  of  all  of  the  facts  and
     circumstances  existing  at such time,  represents  the amount  that can be
     reasonably expected to become an actual or matured liability.

     "Subsidiaries"  shall  mean at any date with  respect to any Person all the
     corporations,  limited  liability  company,  or other business  entities of
     which such Person at such date,  directly or  indirectly,  owns or controls
     more  than 50% of the  outstanding  ownership  interest  or  capital  stock
     (excluding directors' qualifying shares), and "Subsidiary" means any one of
     the Subsidiaries.

     "Swing  Line"  shall  mean all  Swing  Line  Loans,  up to a total  maximum
     aggregate principal amount of $2,000,000.00,  made to Borrower by the Swing
     Line Lender.

     "Swing Line Lender" shall mean Capital One.

     "Swing Line Loans" shall have the meaning  assigned to such term in Section
     2.3 below.

     "Tangible  Net Worth" shall mean the sum of the  Borrower's  common  stock,
     preferred stock,  capital surplus and retained earnings less treasury stock
     and the sum of all intangible assets (including,  without limitation,  good
     will, franchises,  licenses, patents,  trademarks, trade names, copyrights,
     service marks and brand names).

     "Termination Date" shall mean the earlier to occur of (i) February 20, 2010
     or (ii) the date of termination of the Commitments  pursuant to Article XIV
     hereof.

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<PAGE>

     "Total  Liabilities"  shall  mean the  total  consolidated  liabilities  of
     Borrower, as determined in accordance with GAAP.

     "Total  Outstandings" shall mean as of any date, without  duplication,  the
     sum of (i) the total principal balance  outstanding on the Notes, plus (ii)
     the total face amount of all  outstanding  Letters of Credit plus (iii) the
     total of all Reimbursement Obligations.

     "Tranche"  shall mean a Eurodollar  Loan for a particular  Interest  Period
     and/or a Base Rate Loan.

     "UCC" shall mean the Uniform Commercial Code-Secured Transactions (La. R.S.
     10:9-101 et seq.) in the State of Louisiana,  as amended from time to time,
     provided that if by reason of mandatory  provisions of law, the  perfection
     or effect of  perfection  or  non-perfection  of the Lender's  Encumbrances
     against the  Collateral  is governed by the Uniform  Commercial  Code as in
     effect in a  jurisdiction  other  than the State of  Louisiana,  then "UCC"
     means the Uniform  Commercial  Code as the same may be amended from time to
     time and in effect in such other jurisdiction.

     "Unused  Amount" shall have the meaning  assigned to such a term in Section
     6.2 of the Agreement.

          Section 1.2.  Accounting  Terms. All accounting terms not specifically
     defined  herein  shall  be  construed  in  accordance  with  GAAP,  and all
     financial  data submitted  pursuant to this Agreement  shall be prepared in
     accordance with GAAP.

                                   ARTICLE II

                         LINE OF CREDIT LOAN COMMITMENT

     Section 2.1.  The Line of Credit.  Subject to the terms and  conditions  of
this  Agreement,  each Lender agrees  severally (a) to make its Pro Rata Part of
Revolving Loans to the Borrower during the period from the date hereof until the
Termination  Date,  by making  Revolving  Loans  under the Line of Credit to the
Borrower from time to time; provided,  however, that at no time shall the sum of
the aggregate  principal  amount of such Revolving Loans to the Borrower at such
time outstanding exceed the Line of Credit Loan Commitment.  Notwithstanding the
foregoing,  it is agreed and  understood  that each Lender's  obligation to fund
Revolving  Loans is limited to such Lender's Line of Credit Loan Commitment less
its Pro Rata Part of the Total Outstandings.

     Section 2.2. Revolving Loans.

     Section 2.2.1. Revolving Loans. Subject to the terms and conditions of this
Agreement,  each Lender severally agrees to make Revolving Loans to the Borrower
from time to time under the Line of Credit.  Within the limits set forth herein,
the  Borrower  may borrow  from the  Lenders  hereunder,  repay any and all such
Revolving  Loans as hereinafter  provided,  and reborrow  thereunder;  provided,
however, each Revolving Loan, subject to availability, shall be in an amount not
less than $1,000,000.00.  The Borrower's obligation to repay the Revolving Loans
made by the Lenders shall be evidenced by the Notes.  Revolving  Loans under the
Line of Credit shall bear interest,  at Borrower's option, at the Base Rate plus
or minus the Base Rate Margin or the Eurodollar Rate plus the Eurodollar Margin.
The total number of Tranches  under the Line of Credit which may be  outstanding
at any time  hereunder  shall never  exceed  seven (7)  Tranches,  whether  such
Tranches  are Base Rate  Loans,  Eurodollar  Loans,  or a  combination  thereof.
Notwithstanding  any provision in this  Agreement to the  contrary,  the parties
acknowledge  and agree  that upon any  breach of  Section  2.2.1,  the  Lenders'
obligation to make  Revolving  Loans is suspended  until such breach is cured to
the reasonable satisfaction of the Required Lenders.

Page 14 of 59
<PAGE>

     Section 2.2.2.  Letters of Credit. On the terms and conditions  hereinafter
set forth,  the Agent shall from time to time during the period beginning on the
date of this  Agreement  and ending on the  Facility A  Termination  Date,  upon
request of  Borrower,  issue  standby  letters of credit for the  account of the
Borrower or a Subsidiary for general  corporate  purposes in such amounts as the
Borrower may request but not to exceed in the aggregate  face amount at any time
outstanding the sum of $2,500,000.00  (subject to the additional  limitations on
the amounts  thereof  set forth in Section  2.2.3.  below),  each such letter of
credit  shall have an expiry date no later than the earlier of one (1) year from
the date of  issuance  or the  Termination  Date,  whichever  occurs  first (the
"Letters  of  Credit");  provided,  however,  a Letter of Credit  may  contain a
provision  providing for the automatic  extension of the expiration  date in the
absence of a notice of non-renewal from the Agent but, except as provided below,
such  provision  shall not permit the extension of the  expiration  date of such
Letter of Credit beyond the  Termination  Date;  and provided,  further,  that a
Letter of Credit  may have an  expiration  date  after the  Termination  Date if
Borrower  provides not later than ninety (90) days prior to the Termination Date
cash collateral  acceptable to Agent for any such Letter of Credit.  On each day
during the period while any such Letter of Credit is issued and  outstanding  in
accordance with the provisions of this Agreement,  the sum of the face amount of
each such  outstanding  Letter of Credit  shall be treated as a  Revolving  Loan
under the Line of Credit.  The Line of Credit  Loan  Commitment  of each  Lender
shall be deemed to be utilized  for all  purposes  hereof in an amount  equal to
such Lender's Commitment Percentage of the undrawn face amount of such Letter of
Credit.  Each  Lender  agrees  that,  upon  issuance  of any  Letter  of  Credit
hereunder,  it  shall  automatically  acquire  a  participation  in the  Agent's
liability  under  such  Letter of Credit  in an  amount  equal to such  Lender's
Commitment  Percentage  of such  liability,  and each Lender  (other than Agent)
thereby shall  absolutely,  unconditionally  and irrevocably  assume, as primary
obligor and not as surety,  and shall be  unconditionally  obligated to Agent to
pay and discharge when due, its Commitment Percentage of Agent's liability under
such Letter of Credit,  provided  such Letter of Credit was issued in accordance
with the provisions of this Agreement. Borrower hereby unconditionally agrees to
pay and  reimburse  the Agent for the amount of each payment under any Letter of
Credit that is in substantial  compliance  with the provisions of such Letter of
Credit,  without  presentment,  demand,  or protest and in accordance  with this
Section 2.2.2.  Upon receipt from any beneficiary of any Letter of Credit of any
demand for payment under such Letter of Credit,  the Agent shall promptly notify
the Borrower of the demand and the date upon which such payment is to be made by
the Agent to such beneficiary in respect of such demand.  Forthwith upon receipt
of such notice from the Agent, Borrower shall advise the Agent whether or not it
intends  to  borrow  under  the Line of Credit to  finance  its  obligations  to
reimburse the Agent,  and if so, submit a Request for Revolving Loan as provided
in Section 2.2.4. hereof.

Page 15 of 59
<PAGE>

     Section 2.2.3.  Procedure for Obtaining  Letters of Credit.  The amount and
date of  issuance,  renewal,  extension  or  reissuance  of a Letter  of  Credit
pursuant to the Section  2.2.2.  shall be designated by the  Borrower's  written
request  delivered  to the Agent at least three (3)  Business  Days prior to the
date of such issuance,  renewal,  extension or reissuance.  Concurrently with or
promptly  following  the  delivery of the  request  for a Letter of Credit,  the
Borrower  shall  execute and deliver to the Agent an  application  and agreement
with respect to the Letter of Credit,  said  application  and agreement to be in
the form  customarily  used by the  Agent.  The  terms of this  Agreement  shall
control in case of any  conflict  between  the terms of this  Agreement  and the
Agent's form of application and agreement with respect to Letters of Credit. The
Agent shall not be obligated to issue,  renew, extend or reissue such Letters of
Credit if (i) the Agent does not  approve  the  requested  form of the Letter of
Credit  or  any of the  terms  thereof,  such  approval  not to be  unreasonably
withheld,  (ii) the amount  thereon when added to the amount of the  outstanding
Letters of Credit exceeds $2,500,000.00,  or (iii) the amount thereof when added
to the total  outstanding  Revolving Loans under the Line of Credit would exceed
the Line of Credit Loan  Commitment.  Borrower agrees to pay the Agent a fee for
the issuance of each Letter of Credit, which fee shall be due and payable by the
Borrower to the Agent upon issuance of each Letter of Credit by the Agent and on
each  anniversary  date  of  such  issuance  while  such  Letter  of  Credit  is
outstanding.  The said fee shall be a per annum fee in the  amount  equal to the
lesser of either  (a) 1.5% per annum or (b) the  applicable  Eurodollar  Margin,
times the face  amount  of the  Letter of  Credit  for such  period  (calculated
separately for each Letter of Credit).

     Section  2.2.4.  Manner and Notice of  Borrowing  Under the Line of Credit.
Requests  For  Revolving  Loans  under  the  Line of  Credit  may be made by the
Borrower,  in writing (including  facsimile  transmission) to the Agent and such
requests  shall be fully  authorized  by the  Borrower if made by any one of the
persons  designated by the Borrower in writing to the Agent. The form of Request
for Revolving Loan is attached hereto as Exhibit "B", and includes a designation
by Borrower of the Borrowing  Date. The Agent shall have the right,  but not the
obligation,  to verify any telephone requests by calling the person who made the
request at the  telephone  number  designated  by the Borrower in writing to the
Agent.  Requests  For  Revolving  Loans must be received by not later than 11:00
a.m.  (Central Time) (i) one (1) Business Day prior to the Borrowing Date in the
case of Base Rate Loans,  or (ii) three (3) Business  Days prior to any proposed
Borrowing Date in the case of Eurodollar Loans. Upon receipt of such Request for
Revolving  Loan, the Agent shall advise each Lender thereof;  provided,  that if
the  Lenders  have  received  at least  one (1)  Business  Day's  notice of such
Revolving  Loan  prior to funding  of a Base Rate  Loan,  or at least  three (3)
Business Days' notice of each Revolving Loan prior to the funding in the case of
a  Eurodollar  Loan,  each Lender  shall  provide the Agent at its office at 313
Carondelet  Street,  New  Orleans,  Louisiana  70130,  not later than 1:00 p.m.,
Central Time, on the Borrowing  Date, in immediately  available  funds,  its Pro
Rata  share of the  requested  Revolving  Loan,  but the  aggregate  of all such
outstanding  fundings by each Lender shall never exceed such Lender's  available
Line of Credit Loan Commitment.  Not later than 2:00 p.m.,  Central Time, on the
Borrowing Date, the Agent shall make available to Borrower the aggregate  amount
of such  requested  Revolving  Loan in the manner  requested  in the Request for
Revolving  Loan.  The Agent and the  Lenders  shall not incur any  liability  to
Borrower in acting upon any Request for  Revolving  Loan referred to above which
the Agent and the  Lenders  believe  in good  faith to have been given by a duly
authorized officer or other person authorized to borrow on behalf of Borrower or
for otherwise  acting in good faith under this Section  2.2.4.  Each Request for
Revolving  Loan  for a  Revolving  Loan  must  specify  whether  such  Loan is a
Eurodollar  Loan or a Base  Rate  Loan.  The  aggregate  outstanding  amount  of
principal  and  interest due by the Borrower at any given time under the Line of
Credit shall be and constitute the  indebtedness  of the Borrower to the Lenders
under the Notes made by the Borrower.  When each  Revolving  Loan is made by the
Lenders to the Borrower hereunder,  the Borrower shall be deemed to have renewed
and reissued the Notes for the amount of the Revolving Loan plus all amounts due
by the  Borrower  to the  Lenders  under  the  Line of  Credit  Loan  Commitment
immediately prior to such Revolving Loan.

Page 16 of 59
<PAGE>

     Section 2.2.5. Use of Proceeds.  The Borrower shall use the proceeds of the
Revolving Loans to finance (i) the repayment in full of its existing senior debt
to CF Blackburn,  L.L.C.,  (ii) certain  acquisitions and capital  expenditures,
(iii) working capital, and (iv) other general corporate purposes.

     Section 2.2.6.  Several  Obligations.  The obligations of the Lenders under
the Line of Credit Loan Commitment are several and not joint. The failure of any
Lender to make a Revolving  Loan required to be made by it shall not relieve any
other Lender of its  obligation to make its Revolving  Loan, and no Lender shall
be responsible for the failure of any other Lender to make the Revolving Loan to
be made by such other Lender.

     Section  2.3.  Swing Line.  Subject to the terms and  conditions  set forth
herein,  the Swing Line  Lender  shall  from time to time until the  Termination
Date, upon the request of the Borrower,  and provided that all of the applicable
conditions  precedent specified in Section 10.2 have been satisfied,  make loans
("Swing Line Loans") to the  Borrower in an  aggregate  principal  amount not to
exceed at any one time outstanding $2,000,000.  Swing Line Loans shall be in any
amount  and  shall,   unless  otherwise  expressly  stated  in  this  Agreement,
constitute  "Loans"  for  all  purposes  hereunder,  except  they  shall  not be
considered a utilization of the Commitment of the Swing Line Lender or any other
Lender for purposes of calculating  commitment fees  hereunder.  Notwithstanding
the foregoing  sentence,  the aggregate amount of all Loans (including all Swing
Line Loans) and  outstanding  Letters of Credit shall not at any time exceed the
aggregate of the  Commitments.  To request a Swing Line Loan, the Borrower shall
notify the Agent and the Swing Line Lender of such request by telephone no later
than 11:00 a.m., Lafayette,  Louisiana,  time, on the date of the proposed Swing
Line Loan, and shall confirm  promptly by hand delivery or telecopy to the Agent
and the Swing Line Lender a written  borrowing request in a form approved by the
Agent and signed by the  Borrower.  Each  request for a Swing Line Loan shall be
irrevocable  and shall  state  specifically  that the Loan is to be a Swing Line
Loan and not a Revolving Loan, the amount of the Swing Line Loan requested,  the
date on which such Swing Line Loan is to be made, which shall be a Business Day,
and how the proceeds of such Swing Line Loan are to be disbursed. All Swing Line
Loans shall bear interest at an annual rate equal to Base Rate from time to time
in  effect  plus or minus  the Base Rate  Margin  from  time to time in  effect.
Subject to the terms and conditions of this Agreement,  all Swing Line Loans may
be borrowed, prepaid and re-borrowed;  provided that any and all such Swing Line
Loans then  outstanding  shall be due and payable in full on the earliest of (i)
on Tuesday of each week,  or on the next  Business Day  thereafter if Tuesday is
not a Business Day, (ii) on the first date,  after the date that such Swing Line
Loan is made, that a Revolving Loan is made, and (iii) the Termination  Date. At
any time,  but not less  frequently  than weekly,  upon the request of the Swing
Line  Lender,  each  Lender  other than the Swing Line Lender  shall  purchase a
participating interest in any one or more Swing Line Loans in an amount equal to
the  product  of  multiplying  (x)  its  Commitment  Percentage  times  (y)  the
outstanding balance of such Swing Line Loans. No later than 1:00 p.m. Lafayette,
Louisiana,  time on the date such request is made (or on the next  Business Day,
if such  request is made after 11:00 a.m.,  Lafayette,  Louisiana,  time),  each
Lender will transfer to the Swing Line Lender,  in immediately  available funds,
the  amount of its  participation.  Whenever,  at any time  after the Swing Line
Lender has received  from any Lender such Lender's  participating  interest in a
Swing Line Loan, the Swing Line Lender receives any payment on account  thereof,
the Swing Line Lender will distribute to such Lender its participating  interest
in such amount  (appropriately  adjusted,  in the case of interest payments,  to
reflect the period of time during which such Lender's participating interest was
outstanding and funded); provided,  however, that in the event that such payment
received by the Swing Line Lender is required to be  returned,  such Lender will
return to the Swing Line Lender any portion  thereof  previously  distributed by
the  Swing  Line  Lender  to it.  Each  Lender's  obligation  to  purchase  such
participating  interests  shall be absolute and  unconditional  and shall not be
affected by any circumstances,  including,  without limitation, (i) any set-off,
counterclaim, recoupment, defense or other rights which such Lender or any other
Person may have against the Swing Line Lender or any other Person for any reason
whatsoever; (ii) the occurrence or existence of a Default or an Event of Default
or the termination of the Commitments; (iii) any adverse change in the condition
(financial or otherwise) of the Borrower or any other Person; (iv) any breach of
this  Agreement  by  the  Borrower  or  any  other  Person;  or  (v)  any  other
circumstance,  happening or event  whatsoever,  whether or not similar to any of
the foregoing.  Each Swing Line Loan, once so participated,  shall cease to be a
Swing Line Loan for  purposes  of this  Agreement  and shall  become a Revolving
Loan.

Page 17 of 59
<PAGE>

     Section 2.4. Accordion Option.  Subject to the terms and conditions of this
Agreement,  the  Borrower  shall have the option to increase  the Line of Credit
Loan  Commitment  from  $25,000,000.00  to a total maximum  aggregate  principal
amount of $50,000,000.00  (the "Accordion  Option").  The Accordion Option shall
expire and terminate on the Termination  Date. To exercise the Accordion Option,
the  Borrower  must send  written  notice of such  exercise  to the Agent.  Upon
Agent's  receipt of such written  notice,  Agent will  endeavor to obtain signed
loan commitments from financial  institutions  acceptable to Agent in increments
of not less than  $5,000,000.00.  If such signed loan  commitments  are procured
(and  accepted by  Borrower),  the Agent,  the  Borrower,  and the Lenders  will
execute any necessary  amendment to this Agreement and Borrower will execute the
Revolving Note(s) to evidence the increased Line of Credit.  Notwithstanding the
foregoing,  the Accordion  Option cannot be exercised (i) at any time that there
is an existing  Event of Default  under this  Agreement or (ii) if such exercise
would cause an Event of Default under this Agreement.

Page 18 of 59
<PAGE>

                                   ARTICLE III

                      NOTES EVIDENCING THE REVOLVING LOANS
                      ------------------------------------

     Section 3.1. Notes.

     Section 3.1.1.  Form of Notes. The Revolving Loan shall be evidenced by the
Revolving  Notes  in the  aggregate  face  amount  of the  Line of  Credit  Loan
Commitment.  Notwithstanding  the face amount of the Notes, the actual principal
amount due from Borrower to the Lenders on account of the Notes,  as of any date
of computation, shall be the sum of Revolving Loans then and theretofore made on
account thereof,  less all principal  payments  actually  received by Lenders in
collected funds with respect thereto.  Although the Notes are dated of even date
herewith,  interest  in respect  thereof  shall be  payable  only for the period
during  which the loans  evidenced  thereby are  outstanding  and,  although the
stated amount of the Notes may be higher,  the Notes shall be enforceable,  with
respect to Borrower's  obligation to pay the principal  amount thereof,  only to
the extent of the unpaid principal amount of the Revolving Loans.

     Section 3.1.2.  Issuance of Additional  Notes.  From time to time new Notes
may be issued to other Lenders as such Lenders become parties to this Agreement.
Upon request  from the Agent,  Borrower  shall  execute and deliver to Agent any
such new or  additional  Notes.  From time to time as new Notes are  issued  the
Agent shall require that each Lender exchange their Notes for newly issued Notes
to reflect the amount of each Lender's  Commitment  hereunder.  The Agent shall,
upon the written  request of  Borrower,  cause the Lenders to return to Borrower
the Notes  which have been  replaced  within a  reasonable  period of time after
Borrower's  request.  Under no circumstances  will the issuance of new Notes, or
the return of the Notes to the Borrower which have been  replaced,  constitute a
novation or other discharge of the  outstanding  indebtedness of Borrower to the
Lenders under the Line of Credit.

     Section 3.1.3. Payment of the Notes. Subject to the requirements of Article
VIII  below,  interest  on the unpaid  principal  balance of the Notes  shall be
payable on each Interest  Payment Date and on the Termination  Date.  Subject to
the requirements of Article VIII below, the outstanding  principal due under the
Notes shall be due and payable on the Termination Date.

     Section  3.1.4.  Payment to the  Lenders.  Each  Lender's  Pro Rata Part of
payment or  prepayment  of the Loans shall be directed by wire  transfer to such
Lender by the Agent at the  address  provided  to the Agent for such  Lender for
payments no later than 2:00 p.m., Lafayette, Louisiana, time on the Business Day
such  payments or  prepayments  are deemed  hereunder  to have been  received by
Agent; provided, however, in the event that any Lender shall have failed to make
a Revolving Loan as contemplated  under Article II hereof (a "Defaulting  Bank")
and the Agent or another Lender or Lenders shall have made such Revolving  Loan,
payment  received by Agent for the account of such Defaulting  Bank(s) shall not
be distributed to such Defaulting Bank(s) until such Revolving Loan or Revolving
Loans  shall have been  repaid in full to the Lender or Lenders  who funded such
Revolving Loan or Revolving Loans. For the sole purpose of calculating interest,
any  payment or  prepayment  received by the Agent at any time after 12:00 noon,
Lafayette,  Louisiana,  time on a  Business  Day  shall be  deemed  to have been
received  on the next  Business  Day.  Interest  shall  cease to  accrue  on any
principal as of the end of the day  preceding the Business Day on which any such
payment or prepayment is deemed hereunder to have been received by the Agent. If
the Agent  fails to  transfer  any  principal  amount to any Lender as  provided
above,  then the Agent  shall  promptly  direct  such  principal  amount by wire
transfer to such Lender.

Page 19 of 59
<PAGE>

     Section  3.1.5.  Sharing of  Payments,  Etc. If any Lender shall obtain any
payment (whether voluntary,  involuntary, or otherwise) on account of the Loans,
(including,  without limitation, any set-off) which is in excess of its Pro Rata
Part of payments on the Loans, as the case may be, obtained by all Lenders, such
Lender shall  purchase  from the other  Lenders such  participation  as shall be
necessary to cause such  purchasing  Lender to share the excess payment pro rata
with each of them;  provided  that, if all or any portion of such excess payment
is thereafter  recovered  from such  purchasing  Lender,  the purchase  shall be
rescinded  and the  purchase  price  restored  to the  extent  of the  recovery.
Borrower  agrees that any Lender so  purchasing  a  participation  from  another
Lender  pursuant to this  Section may, to the fullest  extent  permitted by law,
exercise  all of its rights of  payment  (including  the right of  offset)  with
respect  to such  participation  as fully  as if such  Lender  were  the  direct
creditor of Borrower in the amount of such participation.

     Section  3.1.6.  Non-Receipt  of Funds by the Agent  Unless the Agent shall
have been notified by a Lender or Borrower  (the  "Payor")  prior to the date on
which such Lender is to make payment to the Agent of the proceeds of a Revolving
Loan to be made by it  hereunder  or  Borrower is to make a payment to the Agent
for the account of one or more of the Lenders,  as the case may be (such payment
being herein  called the  "Required  Payment"),  which notice shall be effective
upon receipt, that the Payor does not intend to make the Required Payment to the
Agent,  the Agent may assume that the Required Payment has been made and may, in
reliance  upon such  assumption  (but shall not be required to), make the amount
thereof  available to the intended  recipient on such date and, if the Payor has
not in fact made the  Required  Payment  to the  Agent,  the  recipient  of such
payment  shall,  on demand,  pay to the Agent the amount  made  available  to it
together with interest  thereon in respect of the period  commencing on the date
such amount was made  available  by the Agent until the date the Agent  recovers
such amount at the rate  applicable to such portion of the applicable  Revolving
Loan.  Any  payment  due from any  Lender to Agent  pursuant  hereto  shall bear
interest at the Federal Funds Rate.

                                   ARTICLE IV

                                 INTEREST RATES
                                 --------------

     Section 4.1. Options.

     Section 4.1.1. Base Rate Loans. On Base Rate Loans,  Borrower agrees to pay
interest  monthly  calculated on the basis of a year  consisting of 365/360 days
with respect to the unpaid principal amount of each Base Rate Loan from the date
the proceeds  thereof are made available to Borrower until maturity  (whether by
acceleration  or otherwise),  at a varying rate per annum equal to the lesser of
(i) the Maximum  Rate and (ii) the Base Rate plus or minus the Base Rate Margin.
Past due principal, to the extent permitted by law, shall bear interest, payable
upon  demand,  at the lesser of (i) the Maximum  Rate and (ii) the default  rate
specified in the Notes.

Page 20 of 59
<PAGE>

     Section 4.1.2.  Eurodollar Loans. On Eurodollar  Loans,  Borrower agrees to
pay  interest  calculated  on the  basis of a year  consisting  of 360 days with
respect to the unpaid principal amount of each Eurodollar Loan from the date the
proceeds  thereof are made  available  to Borrower  until  maturity  (whether by
acceleration  or otherwise),  at a varying rate per annum equal to the lesser of
(i) the Maximum Rate and (ii) the Eurodollar  Rate plus the  Eurodollar  Margin.
Past due principal, to the extent permitted by law, shall bear interest, payable
on  demand,  at the lesser of (i) the  Maximum  Rate and (ii) the  default  rate
specified  in the  Notes.  Unless  otherwise  requested  by  Borrower,  upon the
expiration of each Interest Period  applicable to Eurodollar Loans, the Borrower
shall be deemed to have elected to maintain all applicable  Eurodollar  Loans as
Eurodollar Loans with an Interest Period of one (1) month.

     Section 4.2.  Interest Rate  Determination.  The Agent shall determine each
interest  rate  applicable  to any Base  Rate  Loan or  Eurodollar  Loan and its
determination  shall be conclusive absent manifest error. The Agent shall notify
the Borrower of each interest rate determination  within a reasonable time after
each such determination.

     Section 4.3. Conversion Option. Borrower may elect from time to time (i) to
convert all or any part of its Eurodollar Loans to Base Rate Loans by giving the
Agent  irrevocable  notice  of such  election  in  writing  prior to 11:00  a.m.
(Lafayette,  Louisiana time) on the conversion date and such conversion shall be
made on the requested  conversion  date,  provided  that any such  conversion of
Eurodollar  Loan shall only be made on the last day of the  Eurodollar  Interest
Period  with  respect  thereof,  and (ii) to convert all or any part of its Base
Rate Loans to Eurodollar Loans by giving the Agent irrevocable written notice of
such election three (3) Business Days prior to the proposed  conversion and such
conversion shall be made on the requested  conversion date or, if such requested
conversion  date is not a  Business  Day on the next  succeeding  Business  Day;
provided,  however,  the conversion amount shall not be less than $1,000,000.00.
Any such conversion shall not be deemed a prepayment of any Note or a prepayment
of any of the Loans for purposes of this Agreement.

                                    ARTICLE V

                             CHANGE OF CIRCUMSTANCES
                             -----------------------

     Section 5.1. Unavailability of Funds or Inadequacy of Pricing. In the event
that, in connection  with any proposed  Eurodollar  Loan,  the Agent  reasonably
determines,   which  determination  shall,  absent  manifest  error,  be  final,
conclusive and binding upon all parties,  due to changes in circumstances  since
the date  hereof,  adequate  and fair  means do not  exist for  determining  the
Eurodollar  Rate or such  rate  will not  accurately  reflect  the  costs to the
Lenders of funding  Eurodollar Loans for such Eurodollar  Interest  Period,  the
Agent shall give notice of such determination to the Borrower,  whereupon, until
the Agent  notifies  the  Borrower  that the  circumstances  giving rise to such
suspension no longer exist,  the obligation of the Lenders to make,  continue or
convert  Loans  into  Eurodollar  Loans  shall be  suspended,  and all  loans to
Borrower shall be Base Rate Loans during the period of suspension.

Page 21 of 59
<PAGE>

     Section 5.2.  Change in Laws.  If at any time after the date hereof any new
law or any change in existing laws or in the  interpretation by any governmental
authority, central bank, or comparable agency charged with the administration or
interpretation  thereof,  of any new or existing laws shall make it unlawful for
the such  Lender  to make or  continue  to  maintain  or fund  Eurodollar  Loans
hereunder,  then such Lender shall promptly  notify  Borrower in writing of such
Lender's  obligation to make,  continue or convert Loans into  Eurodollar  Loans
under this Agreement  shall be suspended until it is no longer unlawful for such
Lender to make or  maintain  Eurodollar  Loans.  Upon  receipt  of such  notice,
Borrower  shall  either  repay  the  outstanding  Eurodollar  Loans  owed to the
Lenders,  without penalty,  on the last day of the current Interest Periods (or,
if any Lender may not  lawfully  continue to maintain  and fund such  Eurodollar
Loans,  immediately),  or Borrower  may convert  such  Eurodollar  Loans at such
appropriate time to Base Rate Loans.

     Section  5.3.  Increased  Cost or Reduced  Return.  (i) If,  after the date
hereof,  the adoption of any applicable law, rule, or regulation,  or any change
in any applicable law, rule, or regulation,  or any change in the interpretation
or  administration  thereof by any  governmental  authority,  central  bank,  or
comparable agency charged with the interpretation or administration  thereof, or
compliance  by any Lender with any request or  directive  (whether or not having
the  force  of  law)  of any  such  governmental  authority,  central  bank,  or
comparable agency:

     (A)  shall  subject  such  Lender to any tax,  duty,  or other  charge with
          respect to any Eurodollar  Loans, the Notes, or its obligation to make
          Eurodollar  Loans,  or change  the basis of  taxation  of any  amounts
          payable to such Lender under this Agreement,  or the Notes, in respect
          of any Eurodollar  Loans (other than franchise taxes and taxes imposed
          on the overall net income of such Lender);

     (B)  shall impose, modify, or deem applicable any reserve, special deposit,
          assessment,  or similar requirement (other than reserve  requirements,
          if any,  taken into  account in the  determination  of the  Eurodollar
          Rate)  relating to any extensions of credit or other assets of, or any
          deposits with or other  liabilities  or  commitments  of, such Lender,
          including the Commitment of such Lender hereunder; or

     (C)  shall  impose on such  Lender or on the  London  interbank  market any
          other  condition  affecting this Agreement or its Notes or any of such
          extensions of credit or liabilities or commitments;

and the result of any of the foregoing is to increase in a material  respect the
cost to such Lender of making,  converting into, continuing,  or maintaining any
Eurodollar  Loans  or to  reduce  in a  material  respect  any sum  received  or
receivable  by such Lender under this  Agreement or its Note with respect to any
Eurodollar  Loans,  then pursuant to Section  5.3(v)  Borrower shall pay to such
Lender such amount or amounts as are  reasonably  necessary to  compensate  such
Lender  for  such  increased  cost  or  reduction.   If  such  Lender   requests
compensation  by Borrower  under this Section  5.3.,  Borrower may, by notice to
such  Lender,  suspend  the  obligation  of such  Lender  to  make  or  continue
Eurodollar Loans, or to convert all or part of the Base Rate Loans owing to such
Lender to  Eurodollar  Loans,  until the event or condition  giving rise to such
request ceases to be in effect;  provided that such suspension  shall not affect
the right of such Lender to receive the compensation so requested.

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<PAGE>

                  (ii) If,  after  the  date  hereof,  such  Lender  shall  have
reasonably  determined  that  the  adoption  of any  applicable  law,  rule,  or
regulation   regarding  capital  adequacy  or  any  change  therein  or  in  the
interpretation or administration thereof by any governmental authority,  central
bank, or comparable  agency charged with the  interpretation  or  administration
thereof,  or any request or directive regarding capital adequacy (whether or not
having the force of law) of any such  governmental  authority,  central bank, or
comparable  agency,  has or would have the effect of reducing the rate of return
on the  capital  of such  Lender  or any  corporation  controlling  Lender  as a
consequence of such Lender's  obligations  hereunder to a level below that which
such  Lender or such  corporation  could have  achieved  but for such  adoption,
change,  request,  or directive  (taking into  consideration  its policies  with
respect to capital adequacy),  then from time to time pursuant to Section 5.3(v)
Borrower  shall pay to such  Lender  such  additional  amount or  amounts as are
reasonably necessary to compensate Lender for such reduction.

                  (iii) Each Lender shall promptly  notify Borrower of any event
of which it has knowledge,  occurring after the date hereof,  which will entitle
such Lender to  compensation  pursuant  to this  Section  5.3.  Each Lender will
designate a separate  lending office,  if applicable,  if such  designation will
avoid the need for, or reduce the amount of, such  compensation and will not, in
the judgment of such Lender, be otherwise disadvantageous to it.

                  (iv) If any Lender  gives  notice to the  Borrower  (either by
Lender or through  the Agent)  pursuant to Section  5.3.  hereof,  Lender  shall
simultaneously  give to the  Borrower a  statement  signed by an officer of such
Lender setting forth in reasonable  detail the basis for, and the calculation of
such additional cost, reduced payments or capital requirements,  as the case may
be, and the additional amounts required to compensate Lender therefor.

                  (v) Within  fifteen (15) days after receipt by the Borrower of
any notice  referred to in Section 5.3.,  the Borrower  shall pay to such Lender
such  additional  amounts as are  required  to  compensate  such  Lender for the
increased cost,  reduce  payments or increase  capital  requirements  identified
therein, as the case may be; provided,  that the Borrower shall not be obligated
to compensate such Lender for any increased costs, reduced payments or increased
capital  requirements  to the extent that such Lender incurs the same prior to a
date six (6) months before such Lender gives the required notice.

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     Section 5.4. Breakage Costs.  Without duplication under any other provision
hereof,  if any  Lender  incurs  any  actual  loss,  cost,  expense  or  premium
reasonably incurred by reason of the liquidation or re-employment of deposits or
other funds acquired by such Lender to fund or maintain any  Eurodollar  Loan or
the relending or reinvesting of such deposits or amounts paid or prepaid to such
Lender as a result of any of the following events other than any such occurrence
as a result in the change of circumstances described in Sections 5.1. and 5.2.:

          (i) any payment,  prepayment or  conversion of a Eurodollar  Loan on a
     date other than the last day of its Eurodollar  Interest Period (whether by
     acceleration, prepayment or otherwise);

          (ii) any failure to make a principal  payment of a Eurodollar  Loan on
     the due date thereof; or

          (iii) any  failure  by the  Borrower  to borrow,  continue,  prepay or
     convert  to a  Eurodollar  Loan on the dates  specified  in a notice  given
     pursuant to this Agreement.

then the  Borrower  shall  within 15 days after  demand pay to such  Lender such
amount as is reasonably  necessary to compensate such Lender for such loss, cost
or  expense.  If such  Lender  makes  such a claim  for  compensation,  it shall
simultaneously  furnish to Borrower a statement setting forth the amount of such
loss,  cost or expense in reasonable  detail  (including an  explanation  of the
basis for and the  computation  of such loss,  cost or expense)  and the amounts
shown on such statement shall be conclusive and binding absent manifest error.

     Section 5.5. Discretion of Lender as to Manner of Funding.  Notwithstanding
any provisions of this Agreement to the contrary,  each Lender shall be entitled
to fund and  maintain its funding of all or any part of its  Revolving  Loans in
any manner it sees fit, it being understood,  however,  that for the purposes of
this Agreement all determinations hereunder, except as may otherwise be provided
in this  Article V,  shall be made as if each  Lender  had  actually  funded and
maintained  each  Eurodollar  Loan  through the  purchase  of deposits  having a
maturity  corresponding  to  the  last  day of the  Eurodollar  Interest  Period
applicable  to  such  Eurodollar  Loan  and  bearing  an  interest  rate  to the
applicable interest rate for such Eurodollar Period.

     Section 5.6.  Foreign  Lenders.  Any Foreign  Lender that is entitled to an
exemption from or reduction of withholding tax under the law of the jurisdiction
in which the Borrower is resident for tax purposes,  or any treaty to which such
jurisdiction is a party,  with respect to payments  hereunder or under any other
Loan Document shall deliver to the Borrower  (with a copy to the Agent),  at the
time or times  prescribed  by  applicable  law or  reasonably  requested  by the
Borrower  or the Agent,  such  properly  completed  and  executed  documentation
prescribed  by  applicable  law as will permit such  payments to be made without
withholding or at a reduced rate of  withholding.  In addition,  any Lender,  if
requested by the Borrower or the Agent,  shall deliver such other  documentation
prescribed  by  applicable  law or  reasonably  requested by the Borrower or the
Agent as will enable the Borrower or the Agent to determine  whether or not such
Lender is subject to backup withholding or information  reporting  requirements.
As used in this  Section,  the term  "Foreign  Lender"  means any Lender that is
organized under the laws of a jurisdiction other than that in which the Borrower
is resident  for tax  purposes  (it being  understood  that for purposes of this
definition, the United States of America, each State thereof and the District of
Columbia shall be deemed to constitute a single jurisdiction).

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<PAGE>

                                   ARTICLE VI

                                      FEES
                                      ----

     Section 6.1.  Facility  Fees.  The Borrower  shall pay to the Agent for the
benefit of the Lenders a facility fee of 0.125% of the Commitment. The foregoing
facility  fee shall be due and  payable on the date  hereof  and,  the  Borrower
hereby  authorizes  the Agent to debit  its  account  specified  on  Schedule  6
attached  hereto and maintained with Capital One for collection of the foregoing
facility fee.

     Section 6.2.  Unused Fees. The Borrower shall pay to the Agent (for the Pro
Rata benefit of the  Lenders) an unused fee  calculated  as follows:  (i) if the
Leverage  Ratio  as  set  forth  in the  Compliance  Certificate  most  recently
delivered by the Borrower  pursuant to Section 12.1(c) is less than 1.50 to 1.0,
then the  unused  fee for such  period  set forth in the  applicable  Compliance
Certificate will be the amount equal to 0.25% times the Unused Amount;  and (ii)
if the Leverage Ratio as set forth in the Compliance  Certificate  most recently
delivered by the Borrower  pursuant to Section  12.1(c) is greater than or equal
to 1.50 to 1.0, then the unused fee will be the amount equal to 0.375% times the
Unused  Amount.  If the  Borrower  fails to  deliver  a  Compliance  Certificate
pursuant  to  Section  12.1(c),  the  unused  fee  shall  equal  the  percentage
corresponding to item (ii) of this Section 6.2 until the date of the delivery of
the required  Compliance  Certificate.  The unused portion of the Line of Credit
Commitment  shall be  determined  on a daily  basis  by  subtracting  the  Total
Outstandings from the Commitments,  and by averaging said daily amounts for such
period set forth in the applicable  Compliance  Certificate for which the fee is
to be determined (the "Unused  Amount").  The foregoing unused fee to be paid in
arrears  upon  notice  from the Agent to the  Borrower  after the  delivery of a
Compliance Certificate delivered by the Borrower pursuant to Section 12.1(c) and
on the  Termination  Date;  provided  however the first unused fee due hereunder
shall be due and payable on April 30, 2008 (for the prorated  portion of the fee
for the first quarter of 2008).  On the day of such notice to the Borrower,  the
Borrower hereby  authorizes the Agent to debit its account specified on Schedule
6  attached  hereto  and  maintained  with  Capital  One for  collection  of the
foregoing unused fee.

     Section 6.3. Letter of Credit Fee. The Borrower shall pay to the Agent (for
the Pro Rata benefit of the Lenders) a fee for each Letter of Credit as provided
in Sections 2.2.3. of this Agreement. The foregoing fee shall be due and payable
at least one (1) Business  Day prior to the issuance of a Letter of Credit.  The
Borrower hereby  authorizes the Agent to debit its account specified in Schedule
6 attached  hereto and  maintained  with Capital One for the  collection of said
fee.

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<PAGE>

                                   ARTICLE VII

                           CERTAIN GENERAL PROVISIONS
                           --------------------------

     Section 7.1. Payments.  All payments of principal,  interest,  fees and any
other amounts due hereunder or under any of the other Related Documents shall be
made to the Agent at its  office in New  Orleans,  Louisiana  at 313  Carondelet
Street,  New Orleans,  Louisiana 70130, or at such other location that the Agent
may from time to time  designate  in  writing to the  Borrower,  in each case in
immediately available funds.

     Section 7.2. No Offset,  etc. All  payments by the Borrower  hereunder  and
under any of the other Related  Documents  shall be made without setoff and free
and clear of and  without  deduction  for any taxes,  levies,  imposts,  duties,
charges,  fees,  deductions,  withholdings,  compulsory  loans,  restrictions or
conditions of any nature now or hereafter  imposed or levied by any jurisdiction
or any political subdivision thereof or taxing or other authority therein unless
the Borrower is compelled by law to make such deduction or  withholding.  If any
such  obligation is imposed upon the Borrower with respect to any amount payable
by it hereunder or under any of the other Loan Documents,  the Borrower will pay
to the Agent,  on the date on which such amount is due and payable  hereunder or
under such other Related Document, such additional amount in Dollars as shall be
necessary  to enable the Lender to receive the same net amount  which the Lender
would have  received on such due date had no such  obligation  been imposed upon
the Borrower.  The Borrower will deliver  promptly to the Agent  certificates or
other valid  vouchers for all taxes or other charges  deducted from or paid with
respect to  payments  made by the  Borrower  hereunder  or under such other Loan
Documents.

     Section 7.3.  Rate  Management  Transactions.  The Borrower is permitted to
enter  into  Rate  Management   Transactions  with  the  Lenders  (and/or  their
affiliates).

     Section 7.4.  Calculation  of Fees.  The fees set forth in Article VI above
will be calculated on the basis of a year consisting of 360 days.

                                  ARTICLE VIII

                                   PREPAYMENTS
                                   -----------

     Section 8.1. Voluntary Prepayments.  Borrower may at any time and from time
to time, without premium or penalty, prepay Base Rate Loans. Borrower may at any
time and from time to time,  without  penalty or premium subject to Section 5.4.
hereof,  prepay  Eurodollar  Loans  outstanding upon at least three (3) Business
Day's notice to the Agent.

     Section 8.2. Mandatory Prepayment Resulting From Overadvances. In the event
the unpaid  principal  amount of the  Revolving  Loans ever  exceeds the Line of
Credit Loan Commitment,  the Borrower  unconditionally  agrees,  within five (5)
days after  notice  from Agent of the  occurrence  of such an excess  amount (an
"overadvance") to make a lump sum payment to the Agent in an amount equal to the
overadvance.

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<PAGE>

                                   ARTICLE IX

                          SECURITY FOR THE INDEBTEDNESS
                          -----------------------------

     Section 9.1. Security. The Indebtedness shall be secured by the following:

     (a)  the Guaranty;

     (b)  the Pledge Agreement; and

     (c)  any other Collateral Documents granted by any Person in favor of Agent
          for  the  ratable   benefit  of  the  Lenders  as  security   for  the
          Indebtedness.

                                    ARTICLE X

                              CONDITIONS PRECEDENT
                              --------------------

     Section 10.1. Condition Precedent to Effectiveness of this Agreement.

The  effectiveness of this Agreement shall be subject to the satisfaction of the
following conditions precedent:

     (a) On or prior to the date hereof,  the Borrower  shall have  executed and
delivered to the Agent this Agreement and the Notes;

     (b) On or prior to the date hereof,  the Guarantors shall have executed and
delivered to the Agent the Guaranty;

     (c) On or prior  to the date  hereof,  the  Agent  shall  have  received  a
favorable  legal  opinion of counsel to the Borrower  covering the  transactions
contemplated by this Agreement, in form, scope and substance satisfactory to the
Agent;

     (d) The Agent shall have received certified resolutions of the Borrower and
the  Guarantor  authorizing  the  execution  of all  documents  and  instruments
contemplated by this Agreement;

     (e) The Agent shall have received all fees,  charges and expenses which are
due and payable as specified in this Agreement and any Loan Documents;

     (f) On or prior to the date  hereof,  the Agent  shall  have  received  the
organizational and governance  documents,  as amended,  of the Borrower and each
Guarantor,  and the Agent's counsel shall have reviewed the foregoing  documents
and is  satisfied  with  the  validity,  due  authorization  and  enforceability
thereof;

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<PAGE>

     (g) The Borrower shall have delivered to the Agent an insurance certificate
detailing all insurance coverage for the Borrower and the Subsidiaries; and

     (h) The Borrower  shall have delivered to the Agent a true and correct copy
of the line of credit payoff letter issued to Borrower by C.F. Blackburn, L.L.C.

     The Agent and the Lenders reserve the right, in their sole  discretion,  to
waive any one or more of the foregoing conditions precedent.

     Section 10.2.  Conditions  Precedent to All Revolving Loans. The obligation
of the Lenders to make any Revolving  Loan hereunder and the obligation of Agent
to issue a Letter of Credit and to make any Swing  Line Loan are all  subject to
the further condition precedent that:

     (a) The representations and warranties of the Borrower as set forth in this
Agreement,  or in any Loan Document  furnished to the Agent and/or any Lender in
connection  herewith,  shall be and  remain  true and  correct  in all  material
respects on and as of the date of the making of such Loan or date of issuance of
such Letter of Credit (except to the extent specifically  limited to a specified
date);

     (b) No Default or Event of Default  shall  exist or shall  result  from the
making of a Revolving Loan or the issuance of a Letter of Credit;

     (c) The Borrower  shall have  complied with the procedure set forth in this
Agreement, for the requesting of a Revolving Loan or the issuance of a Letter of
Credit, as the case may be; and

     (d) There shall have occurred no Material  Adverse Effect since the date of
the most recent financial statements delivered by Borrower to Agent.

     The Agent and the Lenders reserve the right, in their sole  discretion,  to
waive any one or more of the foregoing conditions precedent.

                                   ARTICLE XI

                         REPRESENTATIONS AND WARRANTIES
                         ------------------------------

     The  Borrower  represents  and  warrants  to the Agent and the  Lenders  as
follows:

     Section  11.1.  Corporate  Authority  of the  Borrower.  The  Borrower is a
corporation duly created,  validly existing, and in good standing under the laws
of the State of Delaware,  and is duly qualified and in good standing as foreign
corporation  in  Louisiana  and all other  jurisdictions  where the  failure  to
qualify  would have a material  adverse  effect  upon its ability to perform its
obligations  under this Agreement and all Loan Documents to which it is a party.
The Borrower has the  corporate  power to enter into this  Agreement and execute
the Notes.  The  Borrower  has the  corporate  power to perform its  obligations
hereunder and under the Loan Documents. The execution, delivery, and performance
by the  Borrower  of the Loan  Documents  have all been duly  authorized  by all
necessary  corporate  or company  action,  and do not and will not result in any
violation by the Borrower of any provision of any law, rule, regulation,  order,
writ,  judgment,  decree,  determination  or award  presently  in effect  having
applicability to the Borrower,  or the articles of  incorporation  and bylaws of
the Borrower.  The making and  performance by the Borrower of the Loan Documents
do not and will not  result in a breach  of or  constitute  a default  under any
material  indenture or loan or credit agreement or any other material  agreement
or  instrument  to which the  Borrower is a party or by which it may be bound or
affected,  or result in, or require, the creation or imposition of any mortgage,
deed of trust, pledge, lien, security interest or other charge or encumbrance of
any nature  (other  than as  contemplated  by the Loan  Documents)  upon or with
respect  to any  of the  properties  now  owned  or  hereafter  acquired  by the
Borrower.  Each  of  the  Loan  Documents  to  which  the  Borrower  is a  party
constitutes a legal, valid and binding  obligation of the Borrower,  enforceable
against the Borrower in accordance with its respective  terms except as the same
may be limited by bankruptcy,  insolvency,  and other similar laws affecting the
rights of creditors generally and the availability of equitable remedies for the
enforcement  of  certain  obligations  (other  than the  payment  of  principal)
contained  herein or  therein  and as may be  limited  by  equitable  principles
generally.

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<PAGE>

     Section 11.2.  Financial  Statements.  The most recent balance sheet of the
Borrower at the dates thereof, and the related statements of income and retained
earnings for the period then ended,  copies of which have been  delivered to the
Agent,  fairly present in all material  respects the financial  condition of the
Borrower  as of the date or dates  thereof.  Each of said  financial  statements
(including in each case related schedules and notes) were prepared in conformity
with GAAP and, except as otherwise  disclosed to Agent in writing,  applied on a
basis consistent with the preceding year (subject, as to interim statements,  to
changes resulting from normal year-end audit adjustments and absence of the full
footnote  disclosure).  No Material  Adverse Effect has occurred since September
30,  2007 in the  financial  position  or in the  results of  operations  of the
Borrower and its Subsidiaries taken as a whole.

     Section 11.3.  Litigation.  Other than as set forth in Schedule 11.3 and as
may be disclosed to the Agent in writing after the date of this Agreement, there
are no legal actions,  suits or proceedings pending or, to the best knowledge of
the Borrower  threatened,  against or adversely  and  materially  affecting  the
Borrower,  or any of its properties  before any court or  administrative  agency
(federal,  state or local),  which could  reasonably be expected to constitute a
Material  Adverse  Effect,  and there are no judgments or decrees  affecting the
Borrower, or its property (including,  without limitation, the Collateral) which
are or could  reasonably  be  expected  to become an  Encumbrance  against  such
property (other than a Permitted  Encumbrance),  provided that no breach of this
Section 11.3 shall occur if the same is discharged  within thirty days after the
date of entry thereof or an appeal or appropriate  proceeding for review thereof
is taken  within  such  period and a stay of  execution  pending  such appeal is
obtained.

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<PAGE>

     Section 11.4.  Approvals.  No  authorization,  consent,  approval or formal
exemption of, nor any filing or  registration  with,  any  governmental  body or
regulatory authority (federal, state or local), and no vote, consent or approval
of the  shareholders  of the Borrower is or will be required in connection  with
the  execution  and  delivery  by the  Borrower  of the  Loan  Documents  or the
performance  by the Borrower of its  obligations  hereunder  and under the other
Loan Documents, except to the extent obtained.

     Section 11.5.  Required  Insurance.  The Borrower maintains  insurance with
insurance companies in such amounts and against such risks as is usually carried
by owners of similar  businesses  and  properties  in the same general  areas in
which Borrower operates.

     Section  11.6.  Licenses.   The  Borrower  possesses  adequate  franchises,
licenses  and  permits to own its  properties  and to carry on its  business  as
presently  conducted,  except where the failure to do so could not reasonably be
expected to have a Material Adverse Effect.

     Section  11.7.  Adverse  Agreements.  The  Borrower  is not a party  to any
agreement  or  instrument,  nor  subject to any  charter  or other  restriction,
materially  and  adversely  affecting  the  business,   properties,  assets,  or
operations of the Borrower or its condition  (financial or  otherwise),  and the
Borrower is not in default in the performance,  observance or fulfillment of any
of the  obligations,  covenants  or  conditions  contained  in any  agreement or
instrument to which it is a party,  which  default  would  constitute a Material
Adverse Effect.

     Section 11.8.  Default or Event of Default.  No Default or Event of Default
hereunder has occurred and is continuing or will occur as a result of the giving
effect hereto.

     Section 11.9.  Employee  Benefit Plans.  Each employee pension benefit plan
(other  than a  Multiemployer  Plan)  which is  covered  by Title IV of ERISA or
subject to the minimum  funding  standards  under  Section  412 of the  Internal
Revenue  Code as to which the Borrower  may have any  liability  complies in all
material  respects  with all  applicable  requirements  of law and  regulations,
except in each case for non compliance which could not reasonably be expected to
have a Material  Adverse  Effect,  and (i) no  Reportable  Event (as  defined in
ERISA) has occurred and is  continuing  with respect to any such plan,  (ii) the
Borrower has not withdrawn  from any such plan or initiated  steps to do so, and
(iii) no steps have been taken to terminate any such plan.

     Section 11.10.  Investment  Company Act. The Borrower is not an "investment
company"  or a company  "controlled"  by an  "investment  company,"  within  the
meaning of the Investment Company Act of 1940, as amended.

     Section 11.11. Intentionally Omitted.

     Section  11.12.  Regulations  X,  T and U.  The  Borrower  is  not  engaged
principally, or as one of its important activities, in the business of extending
credit for the  purpose of  purchasing  or  carrying  margin  stock  (within the
meaning  of  Regulations  X, T and U of the Board of  Governors  of the  Federal
Reserve  System),  and none of the  proceeds  of the Loans  will be used for the
purpose of purchasing or carrying such margin stock.

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<PAGE>

     Section 11.13.  Location of Offices and Records. As of the date hereof, the
chief place of business of the Borrower, and the office where the Borrower keeps
its books and records is 420 West Pinhook Road,  Suite A,  Lafayette,  Louisiana
70503.

     Section  11.14.   Information.   All  written  information   heretofore  or
contemporaneously  herewith  furnished  by the  Borrower to the Agent and/or the
Lenders  for  the  purposes  of or in  connection  with  this  Agreement  or any
transaction   contemplated  hereby  (excluding   projections,   estimates,   and
engineering  reports) is, and all such information  hereafter furnished by or on
behalf of the  Borrower  to the  Agent  and/or  the  Lenders  will be,  true and
accurate in every material  respect on the date as of which such  information is
dated or certified;  and none of such information,  taken as a whole, is or will
be  incomplete  by omitting to state any  material  fact  necessary to make such
information not misleading as of such date, taken as a whole.

     Section 11.15. Environmental Matters. Except as previously disclosed to the
Agent in writing or as could not  reasonably be expected to result in a Material
Adverse Effect:

     (a) To the best of  Borrower's  knowledge  and  belief  after due  inquiry,
Borrower and each Guarantor are in compliance with all applicable  Environmental
Laws;

     (b) To the best of  Borrower's  knowledge  and  belief  after due  inquiry,
Borrower and each  Guarantor  have  obtained  all consents and permits  required
under all  applicable  Environmental  Laws to operate its  business as presently
conducted or as proposed to be conducted  and all such  consents and permits are
in full force and effect and Borrower and each Guarantor are in compliance  with
all terms and conditions of such approvals;

     (c) To the best of Borrower's  knowledge and belief after due inquiry,  the
Borrower,  each Guarantor and their respective properties and operations are not
subject  to any order  from or  agreement  with any  Governmental  Authority  or
private party respecting (i) failure to comply with any Environmental Law or any
Remedial Action or (ii) any Environmental  Liabilities  arising from the Release
or threatened Release except those orders and agreements with which Borrower and
Guarantor have complied;

     (d) To the best of Borrower's knowledge and belief after due inquiry,  none
of the  operations  of Borrower or any  Guarantor  is subject to any judicial or
administrative  proceeding  alleging a violation  of, or  liability  under,  any
Environmental Law;

     (e)  None of the  operations  of  Borrower  or any  Guarantor,  to its best
knowledge  after  due  inquiry,  is  the  subject  of any  investigation  by any
Governmental  Authority  evaluating  whether  any  Remedial  Action is needed to
respond to a Release or threatened Release;

     (f) Borrower and any  Guarantor  have not been  required to file any notice
under any  Environmental  Law indicating past or present  treatment,  storage or
disposal  of a  hazardous  waste as  defined  by 40 CFR Part 261 or any state or
local equivalent;

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<PAGE>

     (g) Borrower and Guarantor  have not been required to file any notice under
any applicable Environmental Law reporting a Release;

     (h) There have been no written commitments or agreements involving Borrower
or any Guarantor from or with any  Governmental  Authority or any private entity
(including,  without  limitation,  the owner of the Mortgaged  Properties or any
portion  thereof)  relating to the  generation,  storage,  treatment,  presence,
Release, or threatened Release;

     (i) Borrower and/or  Guarantor has not received any written notice or claim
to the  effect  that it is or may be  liable  to any  Person  as a result of the
Release or threatened Release;

     (j) To the best of  Borrower's  knowledge  and  belief  after due  inquiry,
Borrower and Guarantor have no known  liability in connection  with any material
Release or material threatened Release;

     (k) After due inquiry, no Environmental Lien has attached (and continues to
attach) to any properties of Borrower or any Guarantor,  provided that no breach
of this Section  11.15(l)  shall occur if the same is  discharged  within thirty
days after the attachment  thereof or an appeal or other appropriate  proceeding
for  review  thereof is taken  within  said  thirty day period  and/or a stay of
execution pending such appeal is obtained; and

     (l) To the Borrower's best knowledge after due inquiry,  there have been no
environmental investigations,  studies, audits, tests, reviews or other analyses
conducted  by or which are in the  possession  of Borrower or any  Guarantor  in
relation to any violation of Environmental Laws which violation could reasonably
be expected to have a Material  Adverse  Effect in relation to any properties or
facility now or previously  owned or leased by Borrower which have not been made
available to Agent.

     Section  11.16.  Solvency  of the  Borrower.  The  Borrower  is  and  after
consummation of the transactions  contemplated by this Agreement  (including the
making of the Revolving Loans and the issuance of Letters of Credit),  and after
giving  effect  to all  obligations  incurred  by  the  Borrower  in  connection
herewith, will be, Solvent.

     Section 11.17.  Governmental  Requirements.  The  properties,  assets,  and
business  of the  Borrower  are in  compliance  with  all  current  governmental
requirements  affecting  same,  except where  failure  could not  reasonably  be
expected to have a Material Adverse Effect.

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<PAGE>

     Section 11.18. Authority of the Guarantor.  Each Guarantor is duly created,
validly  existing,  and in good  standing  under  the  laws of the  state of its
formation,  and is duly  qualified and in good standing as foreign entity in all
other  jurisdictions  where the failure to qualify would have  material  adverse
effect upon its ability to perform their  obligations  under the Guaranty.  Each
Guarantor has the power to enter into the Guaranty and the other Loan  Documents
to which it is a party,  and to perform its obligations  thereunder.  The making
and performance by the Guarantor of the Guaranty and the other Loan Documents to
which it is a party, have all been duly authorized by all necessary action,  and
do not and will not violate any provision of any law, rule,  regulation,  order,
writ,  judgment,  decree,  determination  or award  presently  in effect  having
applicability to such Guarantor,  or governing documents of such Guarantor.  The
making and  performance  by each  Guarantor  of the  Guaranty and the other Loan
Documents  to which it is a party,  do not and will not result in a breach of or
constitute a default under any material indenture or loan or credit agreement or
any other material agreement or instrument to which such Guarantor is a party or
by which it may be bound or affected,  or result in, or require, the creation or
imposition of any mortgage,  deed of trust,  pledge,  lien, security interest or
other charge or  encumbrance  of any nature (other than as  contemplated  by the
Related  Documents)  upon or with respect to any of the  properties now owned or
hereafter acquired by such Guarantor, and such Guarantor is not in default under
or in violation of any such order, writ, judgment, decree, determination, award,
indenture,  agreement or  instrument to the extent any such default or violation
could  reasonably be expected to have a Material  Adverse  Effect.  The Guaranty
constitutes a legal, valid and binding obligation of the Guarantor,  enforceable
against the  Guarantor in accordance  with its terms,  except as the same may be
limited by bankruptcy,  insolvency,  and other similar laws affecting the rights
of  creditors  generally  and the  availability  of  equitable  remedies for the
enforcement  of  certain  obligations  (other  than the  payment  of  principal)
contained  herein or  therein  and as may be  limited  by  equitable  principles
generally.

     Section 11.19.  Survival of  Representations  and Warranties.  The Borrower
understands and agrees that the Agent and the Lenders are relying upon the above
representations  and  warranties in making the Revolving  Loans to the Borrower.
The Borrower  further agrees that the foregoing  representations  and warranties
shall be true and correct in all  material  respects  as of the date(s)  made or
deemed  made and shall  remain in full force and  effect  until such time as the
Indebtedness shall be paid in full, or until this Agreement shall be terminated,
whichever is the last to occur.

                                   ARTICLE XII

                              AFFIRMATIVE COVENANTS
                              ---------------------

     The Borrower covenants and agrees as follows:

     Section 12.1.  Financial  Statements;  Other  Reporting  Requirements.  The
Borrower will furnish or cause to be furnished to the Agent:

     (a)  as soon as available  and in any event within  seventy-five  (75) days
          following  the  close  of  fiscal  year  of  the   Borrower,   audited
          consolidated  financial  statements  of the Borrower  consisting  of a
          balance  sheet as at the end of such  fiscal  year and  statements  of
          income, and statement of cash flow for such fiscal year, setting forth
          in each case in  comparative  form the  corresponding  figures for the
          preceding  fiscal year,  certified  by  independent  certified  public
          accountants of recognized national standing or otherwise acceptable to
          the  Required   Lenders  (such   acceptance  not  to  be  unreasonably
          withheld),  whose  certification shall be unqualified and in scope and
          substance satisfactory to the Required Lenders;

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<PAGE>

     (b)  as soon as available and in any event within forty (40) days following
          the close of each fiscal  quarter of the Borrower,  interim  unaudited
          consolidated  financial  statements of the  Borrower,  consisting of a
          balance  sheet as of the end of such quarter and  statements of income
          and cash flow,  certified as true and correct by the Borrower's  chief
          financial  officer as having  been  prepared in  accordance  with GAAP
          consistently applied;

     (c)  upon each submission of the financial  statements  required by (a) and
          (b) above,  a  compliance  certificate  signed by the chief  financial
          officer of the Borrower  substantially  in the form attached hereto as
          Exhibit  A  (a  "Compliance  Certificate"),  certifying  that  he  has
          reviewed this Agreement and to the best of his knowledge no Default or
          Event of Default has occurred,  or if such Default or Event of Default
          has  occurred,  specifying  the nature and  extent  thereof,  that all
          financial  covenants in this  Agreement have been met, and providing a
          computation of all financial covenants contained herein; and

     (d)  such other financial  information or other information  concerning the
          Borrower  and/or any  Guarantor  as the Agent  and/or the  Lenders may
          reasonably request from time to time.

     (e)  In  addition,  the  Borrower  may deliver  information  required to be
          delivered  pursuant to  Sections  12.1 (a) and (b) by posting any such
          information  to the Borrower's  internet  website (as of the Agreement
          date, www.lhcgroup.com).  Any such information provided in such manner
          shall only be deemed to have been  delivered  to the Agent or a Lender
          (i) on the date on which  the  Agent or such  Lender,  as  applicable,
          receives  notice  from the  Borrower  that such  information  has been
          posted  to the  Borrower's  internet  website  and  (ii)  only if such
          information is publicly  available without charge on such website.  If
          for any  reason,  the Agent or a Lender  either did not  receive  such
          notice or after reasonable  efforts was unable to access such website,
          then the Agent or such Lender,  as applicable,  shall not be deemed to
          have received such information. In addition to any manner permitted by
          Section  12.1,  the  Borrower  may notify  the Agent or a Lender  that
          information  has been  posted to such a website  by  causing an e-mail
          notification  to be sent to an e-mail  address  specified from time to
          time by the Agent or such Lender, as applicable.

     (f)  Notwithstanding  anything  in this  Section  to the  contrary  (i) the
          Borrower shall deliver paper copies of information  required  pursuant
          to Section  12.1(a) and (b) to the Agent or any Lender  that  requests
          the Borrower to deliver  such paper copies until a written  request to
          cease delivering paper copies is given to the Borrower by the Agent or
          such Lender and (ii) in every  instance the Borrower shall be required
          to provide to the Agent a paper original of the Compliance Certificate
          required by Section 12.1(c).

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<PAGE>

     Section 12.2. Notice of Default;  Litigation;  ERISA Matters.  The Borrower
will give written  notice to the Agent as soon as reasonably  possible and in no
event more than five (5) Business  Days of (i) the  occurrence of any Default or
Event of Default  hereunder  of which it has  knowledge,  (ii) the filing of any
actions,  suits or  proceedings  against the Borrower in any court or before any
governmental  authority  or  tribunal  of which it has  knowledge,  which  could
reasonably  be expected to cause a Material  Adverse  Effect with respect to the
Borrower,  (iii) the occurrence of a reportable  event under, or the institution
of steps by the Borrower to withdraw  from, or the  institution  of any steps to
terminate,  any employee pension plan (other than a Multiemployer Plan) which is
covered by Title IV of ERISA or subject to the minimum  funding  standard  under
Section  412 of the  Internal  Revenue  Code as to which the  Borrower  may have
liability in excess of $100,000.00,  or (iv) the occurrence of any other action,
event  or  condition  of any  nature  of  which  it has  knowledge  which  could
reasonably be expected to cause, or lead to, or result in, any Material  Adverse
Effect to the Borrower.

     Section 12.3. Maintenance of Existence,  Properties and Liens. The Borrower
will (i)  continue  to  engage in its  existing  business  operations  and other
business activities  reasonably related to thereto;  (ii) maintain its existence
and good standing in each jurisdiction where the failure to qualify would have a
Material  Adverse Effect;  (iii) keep and maintain all franchises,  licenses and
properties necessary in the conduct of its business in good order and condition,
except to the extent the  failure to do so could not  reasonably  be expected to
cause a  Material  Adverse  Effect;  and (iv) duly  observe  and  conform to all
material requirements of any governmental authorities relative to the conduct of
its business or the operation of its properties or assets,  except to the extent
the  failure  to do so could not  reasonably  be  expected  to cause a  Material
Adverse Effect.

     Section 12.4.  Taxes.  The Borrower shall pay or cause to be paid when due,
all taxes, local and special assessments, and governmental charges of every type
and  description,  that may from time to time be  imposed,  assessed  and levied
against its  properties.  The Borrower  further agrees to furnish the Agent with
evidence  that such  taxes,  assessments,  and  governmental  charges due by the
Borrower  have  been  paid in  full  and in a  timely  manner,  if such  data is
requested by the Agent. Notwithstanding the foregoing, the Borrower may withhold
any such taxes, local and special assessments, and governmental charges or elect
to contest any lien if the Borrower is in good faith  conducting an  appropriate
proceeding to contest the obligation to pay.

     Section 12.5.  Compliance  with  Environmental  Laws. The Borrower and each
Guarantor shall comply with and shall use reasonable commercial efforts to cause
all of its employees,  or agents (while such Persons are acting within the scope
of their  relationship  with the Borrower) to (i) comply with all  Environmental
Laws with respect to the disposal of Hazardous  Materials,  (ii) pay immediately
when due the cost of removal of any such Hazardous Materials, and (iii) keep the
Borrower's and each Guarantor's  properties free of any lien imposed pursuant to
any Environmental Laws, provided that no breach of this Section 12.5 shall occur
if (a) the same is discharged within thirty (30) days after the Borrower or such
Guarantor is notified of non-compliance or an appeal or appropriate  proceedings
for review thereof is taken within such period and Borrower or such Guarantor is
not obligated to comply pending such appeal or other appropriate  proceedings or
(b) failure to do so could not reasonably be expected to have a Material Adverse
Effect.

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<PAGE>

     The Borrower shall give notice to the Agent as soon as reasonably  possible
and in no event  more  than  five (5) days  after  Borrower  (or any  Guarantor)
receives any compliance orders,  environmental  citations, or other notices from
any Governmental Authority relating to any Environmental Liabilities relating to
its  properties  which  may  reasonably  be  expected  to  result in an Event of
Default;  the  Borrower  agrees  to take any and all  reasonable  steps,  and to
perform any and all  reasonable  actions  necessary or  appropriate  to promptly
comply  with any  such  compliance  orders,  environmental  citations,  or other
notices  from  any  Governmental   Authority   relating  to  any   Environmental
Liabilities  requiring  the  Borrower  (or any  Guarantor)  to remove,  treat or
dispose of such Hazardous  Materials,  and, upon Agent's request, to provide the
Agent with satisfactory  evidence of such compliance with any claim in excess of
$500,000;  provided,  however,  that nothing contained herein shall preclude the
Borrower from contesting any such compliance orders, environmental citations, or
other  notices from any  Governmental  Authority  relating to any  Environmental
Liabilities  if such  contest is made in good faith,  appropriate  reserves  are
established for the payment for the cost of compliance therewith.

     Regardless  of whether any Event of Default  hereunder  shall have occurred
and be continuing,  the Borrower and each Guarantor agrees to defend,  indemnify
and hold  harmless  the  Agent  and the  Lenders  from  any and all  liabilities
(including strict liability),  actions,  demands,  penalties,  losses,  costs or
expenses (including, without limitation,  reasonable attorneys fees and remedial
costs),  suits,  administrative  orders,  agency  demand  letters,  costs of any
settlement or judgment and claims of any and every kind whatsoever which may now
or in the future  (whether before or after the termination of this Agreement) be
paid, incurred, or suffered by, or asserted against the Agent and/or the Lenders
by any person or entity or  governmental  agency for,  with  respect to, or as a
direct or indirect result of, the presence on or under, or the escape,  seepage,
leakage, spillage, discharge,  emission, or release from or onto the property of
the Borrower (or any  Guarantor)  of any Hazardous  Materials,  regulated by any
Environmental Laws,  contamination  resulting  therefrom,  or arising out of, or
resulting   from,   the   environmental   condition  of  such  property  or  the
applicability  of  any  Environmental  Laws  relating  to  hazardous   materials
(including,  without limitation, CERCLA or any so called federal, state or local
"super fund" or "super lien" laws, statute,  ordinance,  code, rule, regulation,
order or decree) regardless of whether or not caused by or within the control of
the Lender (the costs  and/or  liabilities  described  above  being  hereinafter
referred to as the "Environmental  Liabilities");  provided,  however,  that the
Borrower  shall not be obligated  to indemnify  the Agent or any Lenders for any
acts or  omissions  of the  Agent or any  Lenders  in  connection  with  matters
described in this subsection to the extent arising from the gross  negligence or
willful  misconduct  of such  Agent  or  Lender,  as  determined  by a court  of
competent  jurisdiction in a final,  non-appealable  judgment. THE COVENANTS AND
INDEMNITIES CONTAINED IN THIS SECTION 12.5 SHALL SURVIVE THE TERMINATION OF THIS
AGREEMENT;  AND, PROVIDED,  HOWEVER,  NO RELEASE,  WAIVER,  DEFENSE OR INDEMNITY
SHALL BE AFFORDED  UNDER THIS  SECTION  12.5 IN RESPECT OF ANY  PROPERTY FOR ANY
OCCURRENCE ARISING FROM THE ACTS OR OMISSIONS OF THE AGENT AND/OR THE LENDERS OR
THEIR AGENTS OR  REPRESENTATIVES  DURING THE PERIOD AFTER WHICH SUCH PERSON, ITS
SUCCESSORS  OR ASSIGNS,  OR ITS AGENTS OR  REPRESENTATIVES,  SHALL HAVE OBTAINED
OWNERSHIP,  OPERATION OR POSSESSION OF SUCH PROPERTY  (WHETHER BY FORECLOSURE OR
DEED IN LIEU OF  FORECLOSURE,  AS  MORTGAGEE-IN-POSSESSION  OR  OTHERWISE).  ANY
CLAIMS UNDER THIS SECTION 12.5 SHALL BE SUBJECT TO SECTION 15.9.

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<PAGE>

     Section 12.6. Further  Assurances.  The Borrower will, at any time and from
time to time, execute and deliver such further instruments and take such further
action as may reasonably be requested by the Agent, in order to cure any defects
in the execution and delivery of, or to comply with or accomplish  the covenants
and agreements contained in this Agreement or the Collateral Documents.

     Section  12.7.  Financial  Covenants.  The  Borrower  shall comply with the
following covenants and ratios:

     (a)  Minimum Fixed Charge  Coverage.  At the end of each fiscal  quarter of
          the Borrower,  its fixed charge  coverage ratio shall be not less than
          1.50 to 1.00.  The fixed charge  coverage ratio shall be calculated as
          follows:  EBITDA plus Borrower's consolidated lease/rent expense minus
          consolidated  unfinanced  capital  expenditures  divided by Borrower's
          consolidated  prior period  current  maturities of long-term debt plus
          interest  expense  plus  lease/rent  expense  plus  cash  taxes.  This
          covenant will be tested quarterly by Agent on a rolling  four-quarters
          basis, commencing June 30, 2008.

     (b)  Total  Liabilities  to Tangible  Net Worth.  At the end of each fiscal
          quarter of the Borrower,  its ratio of Total  Liabilities  to Tangible
          Net Worth shall be not more than 1.50 to 1.00.  This  covenant will be
          tested by Agent on a quarterly basis, commencing June 30, 2008.

     (c)  Leverage Ratio. At the end of each fiscal quarter of the Borrower, its
          Leverage Ratio shall be not more than 2.50 to 1.00. This covenant will
          be  tested  by  Agent  quarterly  on a  rolling  four  quarters  basis
          commencing June 30, 2008.

     (d)  Working  Capital  Ratio.  At the end of  each  fiscal  quarter  of the
          Borrower,  its  working  capital  ratio shall be not less than 2.00 to
          1.00.  This  working  capital  ratio will be  calculated  as  follows:
          Consolidated   Current   Assets   divided  by   Consolidated   Current
          Liabilities,  all as determined in accordance with GAAP. This covenant
          will be tested quarterly by Agent commencing June 30, 2008.

     Section 12.8. Operations. The Borrower and each Guarantor shall conduct its
business  affairs in a reasonable and prudent manner and in compliance  with all
applicable federal, state and municipal laws, ordinances,  rules and regulations
respecting  its  properties,  charters,  businesses  and  operations,  including
compliance with all minimum funding standards and other requirements of ERISA of
1974,  and other laws  applicable  to any employee  benefit plans which they may
have, except to the extent the failure to do so could not reasonably be expected
to cause a Material Adverse Effect.

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<PAGE>

     Section  12.9.  Change of  Location.  The Borrower  shall,  within ten (10)
Business Days prior to any change to the location of its chief executive office,
notify the Agent in writing of such proposed change.

     Section  12.10.  Employee  Benefit  Plans.  The Borrower will maintain each
employee pension benefit plan (other than a Multiemployer Plan) which is covered
by Title IV of ERISA or subject to the minimum  funding  standards under Section
412 of the  Internal  Revenue  Code  benefit  plan as to  which  it may have any
liability,  in material  compliance with all applicable  requirements of law and
regulations;  except to the extent the failure to do so could not  reasonably be
expected to cause a Material Adverse Effect.

     Section 12.11.  Deposit and Operating Accounts.  The Borrower will maintain
its primary deposit and operating accounts with Capital One or such other Lender
(or any one or more of them) acceptable to the Borrower.

     Section 12.12.  Field Audits;  Other  Information.  Upon  reasonable  prior
notice,  the Borrower shall allow the Agent's employees and agents access to its
books and records and properties  during normal  business hours to perform field
audits on an annual  basis.  The  Borrower  shall pay all  reasonable  costs and
expenses  associated with such field audits. The Borrower will provide the Agent
with such other  information  as the Agent may  reasonably  request from time to
time,  subject  in all  cases to any  confidentiality  restrictions  that may be
applicable  to the  Borrower  and its  Subsidiaries  and to any  confidentiality
restrictions that the Borrower  reasonably imposes on the Persons receiving such
information.

     Section  12.13.  Insurance.  The Borrower  agrees to provide the Agent with
certificates  or binders  evidencing its insurance  coverage on an annual basis,
and, if requested by the Agent,  the Borrower further agrees to promptly furnish
the Agent with  copies of all renewal  notices  and copies of receipts  for paid
premiums.  The Borrower  shall  provide the Agent with  certificates  or binders
evidencing insurance coverage pursuant to all renewal or replacement policies of
insurance  no later than fifteen  (15) days before any such  existing  policy or
policies should expire.

     Section 12.14. Subsidiaries. The Borrower agrees that any Subsidiary of the
Borrower  formed or acquired by or on behalf of the  Borrower  after the date of
this Agreement that is not an Excluded Subsidiary of the Borrower shall join the
Guaranty not later than the next succeeding date on which the Borrower  delivers
its Compliance  Certificate  pursuant to Section 12.1(c) of this Agreement,  and
Borrower shall deliver to the Agent on such date (i) notice of such  Acquisition
or formation, as the case may be, and (ii) to the extent such acquired or formed
Subsidiary is not an Excluded  Subsidiary,  a duly executed joinder agreement to
the  Guaranty,  operating  agreement  (or  similar  document),   certificate  of
formation  (or similar  document),  resolutions  of the  governing  body of such
Subsidiary  approving  the guaranty and related  transactions  and good standing
certificate.

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<PAGE>

     Section 12.15.  Collateral Documents.  The Borrower agrees to grant (and/or
cause  its  Subsidiaries  to grant)  to Agent  for the Pro Rata  benefit  of the
Lenders  perfected  first  priority  security  interests  and mortgage  liens on
properties  and assets of Borrower and its  Subsidiaries  if an Event of Default
arising pursuant to Section 14.1(a) or the Borrower's noncompliance with Section
12.7 above and continues beyond the expiration of its applicable cure period.

     Section 12.16. Post-Closing Requirements. The Borrower covenants and agrees
to comply timely with the following post-closing requirements:

          (i)  Within  sixty  (60)  days  from the date of this  Agreement,  the
               Borrower  shall  deliver  to the Agent the (i)  Pledge  Agreement
               executed by such  Subsidiaries  of Borrower that own interests in
               the  Excluded  Subsidiaries  listed in Schedule  1.1(a)  attached
               hereto  (except as provided in Section  12.17 below) and (ii) the
               certificates  evidencing the interests  encumbered by such Pledge
               Agreement; and

          (ii) Within  five  (5)  days  from  the  date of this  Agreement,  the
               Borrower  shall  deliver to the Agent a  completed  and  executed
               Compliance Certificate.

     Section  12.17.   Excluded   Subsidiaries.   The  Borrower  agrees  to  use
commercially  reasonable  efforts to obtain and deliver to the Agent an executed
joinder  to the  Guaranty  by each  non-wholly  owned  Subsidiary  of  Borrower;
provided,  however,  Borrower  agrees,  and understands that if any such joinder
cannot be executed  and  delivered,  the  Subsidiary  of  Borrower  that owns an
interest  in the  Excluded  Subsidiary  must  execute and deliver to the Agent a
joinder  to the  Pledge  Agreement  (and  deliver  in  pledge  to the  Agent the
certificates  evidencing such interests);  provided,  further, the parties agree
that (i) the  following  Excluded  Subsidiaries  are not required to execute the
Guaranty:  Athens-Limestone  HomeCare,  L.L.C. d/b/a Athens-Limestone  HomeCare;
Louisiana  HomeCare of Northwest  Louisiana,  L.L.C.  d/b/a Louisiana  HomeCare;
Patient's Choice Hospice and Palliative Care of Louisiana,  L.L.C.;  Baton Rouge
HomeCare,  L.L.C.;  University of Tennessee  Medical  Center Home Care Services,
L.L.C.;  and LHCG V, L.L.C.  d/b/a  Glenwood  Home Health  Agency;  and (ii) the
Subsidiaries that have equity interests in those Excluded Subsidiaries listed in
the preceding  clause (i) are not required to pledge such interests  pursuant to
the Pledge Agreement.

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<PAGE>

                                  ARTICLE XIII

                               NEGATIVE COVENANTS
                               ------------------

     The Borrower covenants and agrees as follows:

     Section 13.1. Limitations on Fundamental Changes. Without the prior written
consent of the Agent,  the Borrower shall not form any Subsidiary  that does not
become a Guarantor  (except for Excluded  Subsidiaries),  nor shall the Borrower
consummate any transaction of merger or consolidation unless the Borrower is the
surviving  entity, or liquidate or dissolve itself (or suffer any liquidation or
dissolution).

     Section 13.2.  Disposition  of Assets.  Without  first  obtaining the prior
written  consent of the Agent,  the Borrower shall not, and shall not permit any
Guarantor to, Dispose of any of its respective property or assets except for the
following:

     (a)  Dispositions of property or assets in the ordinary course of business;

     (b)  Dispositions  of obsolete,  damaged,  worn out or surplus  property no
          longer  used  or  useful  in the  business  of the  Borrower  or  such
          Guarantor;

     (c)  Dispositions  resulting  from any casualty or other insured damage to,
          or any taking  under  power of eminent  domain or by  condemnation  or
          similar proceeding of, any asset of the Borrower or a Guaranty; and

     (d)  Dispositions  of  property  or assets to the extent  that the net cash
          proceeds  received by the Borrower or a Guarantor  are used within 180
          days of  receipt of such net cash  proceeds  to  acquire  property  or
          assets to be used by the Borrower or such Guarantor in its business.

     Section 13.3. Intentionally Omitted.

     Section 13.4.  Encumbrances;  Negative  Pledge.  The Borrower and Guarantor
shall not directly or indirectly  create,  incur,  assume or permit to exist any
Encumbrances  on any of its  property  and/or  assets  now  owned  or  hereafter
acquired,  except for the following  (hereinafter  referred to as the "Permitted
Encumbrances"):

     (a)  Encumbrances for taxes, assessments, or other governmental charges not
          yet due or which  are being  contested  in good  faith by  appropriate
          action promptly initiated and diligently  conducted,  if such reserves
          as shall be required by GAAP shall have been made therefor;

     (b)  Encumbrances of landlords, vendors, carriers, warehousemen, mechanics,
          laborers,  materialmen  and other  Encumbrances  arising by law in the
          ordinary  course  of  business  for sums  either  not yet due or being
          contested in good faith by appropriate  action promptly  initiated and
          diligently  conducted,  if such  reserve as shall be  required by GAAP
          shall have been made therefor;

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     (c)  Inchoate   liens  arising   under  ERISA  to  secure  the   contingent
          liabilities, if any, permitted by this Agreement;

     (d)  Encumbrances  in favor of the Agent  and/or the  Lenders to secure the
          Indebtedness;

     (e)  Encumbrances  existing  on the date  hereof and set forth in  Schedule
          13.4,   provided  that  such  Encumbrances  shall  secure  only  those
          obligations which they secure on the date hereof;

     (f)  Pledges  and  deposits  made in the  ordinary  course of  business  in
          compliance  with workmen's  compensation,  unemployment  insurance and
          other social security laws or regulations;

     (g)  Deposits to secure the  performance of bids,  trade  contracts  (other
          than for Indebtedness), leases (other than capital lease obligations),
          statutory obligations,  surety and appeal bonds, performance bonds and
          other  obligations of a like nature incurred in the ordinary course of
          business;

     (h)  Zoning  restrictions,   easements,  licenses,  covenants,  conditions,
          rights-of-way,  restrictions on use of real property and other similar
          encumbrances  incurred in the  ordinary  course of business  and minor
          irregularities of title that, in the aggregate, are not substantial in
          amount and do not  materially  detract  from the value of the property
          subject thereto or interfere with the ordinary conduct of the business
          of the Borrower or any of its Subsidiaries;

     (i)  Deposits,  encumbrances  or pledges to secure  payments  of  workmen's
          compensation and other payments,  public  liability,  unemployment and
          other   insurance,   old-age   pensions  or  other   social   security
          obligations,  or the performance of bids, tenders,  leases,  contracts
          (other than  contracts for the payment of money),  public or statutory
          obligations,   surety,   stay  or  appeal  bonds,   or  other  similar
          obligations arising in the ordinary course of business;

     (j)  Any Encumbrance  securing Purchase Money Indebtedness,  provided that,
          (i) such security  interest is incurred,  and the Debt secured thereby
          is created,  within 180 days after the  acquisition  (or completion of
          construction) of the property or assets subject thereto, (ii) the Debt
          secured  thereby  does not include any other Debt that is not from the
          same financing  source,  and (iii) such security interest do not apply
          to any other  property  or assets of the  Borrower  or any  Subsidiary
          except  any such  property  or  assets  which are the  subject  of any
          Encumbrance securing Debt from such financing source;

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     (k)  Encumbrances  arising out of  judgments  or awards in respect of which
          the Borrower (or any Guarantor)  shall in good faith be prosecuting an
          appeal or proceedings for review and in respect of which it shall have
          secured  a  subsisting  stay  of  execution  pending  such  appeal  or
          proceedings for review,  provided the Borrower shall have set aside on
          its books adequate reserves,  in accordance with GAAP, with respect to
          such judgment or award;

     (l)  Encumbrances  securing  Debt  (i) in  favor  of US  Bancorp  Equipment
          Finance,  Inc. ("US Bancorp"),  provided that such Encumbrances attach
          only to the Raytheon  Beechcraft King Air B200 Airplane (the "King Air
          Airplane")  and the  proceeds  of such  property  and (ii) in favor of
          Capital One, provided that such  Encumbrances  attach only to the 1999
          Cessna  Citation  V Ultra  aircraft  (the  "Palmetto  Plane")  and the
          proceeds of such property; and

     (m)  Encumbrances  on the property or assets of any Person  existing at the
          time such Person becomes a Subsidiary of the Borrower and not incurred
          as a result  of (or in  connection  with or in  anticipation  of) such
          Person's  becoming a Subsidiary  of the  Borrower,  provided that such
          Encumbrances  do not extend to or cover any  property or assets of the
          Borrower or any of its Subsidiaries  other than the property or assets
          encumbered  at the  time  such  Person  becomes  a  Subsidiary  of the
          Borrower,  and provided,  further,  that (i) such  Encumbrances do not
          secure  any  Debt  or  other   obligation  not  permitted  under  this
          Agreement.

     Section  13.5.  Debts.  The Borrower and the  Guarantor,  without the prior
written consent of the Required Lenders,  shall not incur, create,  assume or in
any manner become or be liable in respect of any Debt, except for:

     (a)  The Indebtedness;

     (b)  Debt  existing  as of the  date  of this  Agreement  as set  forth  in
          Schedule 13.5;

     (c)  Indebtedness  arising under any performance  bond, or letter of credit
          obtained for similar  purposes,  or any  reimbursement  obligations in
          respect thereof, entered into in the ordinary course of business;

     (d)  Debt of the Borrower to any  Subsidiary  and Debt of any Subsidiary of
          the Borrower to the Borrower or any other Subsidiary;

     (e)  Debt to (i) US Bancorp for the  financing of the King Air Airplane not
          to exceed  $2,975,000  and (ii)  Capital One for the  financing of the
          Palmetto Airplane not to exceed $5,050,000; and

     (f)  Subject  to  a  maximum   aggregate   principal  amount  at  any  time
          outstanding not in excess of $250,000.00,  the following: (i) Purchase
          Money Indebtedness;  (ii) additional unsecured Debt; and (iii) Debt of
          any Person that becomes a Subsidiary after the date hereof;  provided,
          that such Debt exists at the time such Person becomes a Subsidiary and
          is not created in  contemplation  of or in connection with such Person
          becoming a Subsidiary.

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     Section  13.6.  Investments,  Loans  and  Revolving  Loans.  Without  first
obtaining the prior written consent of the Agent (or the Required Lenders in the
case of the immediately following clause (h)), the Borrower shall not, and shall
not permit any Guarantor to, make or permit to remain  outstanding  any loans or
advances to, or make  investments  or acquire an equity  interest in any Person,
except for the following:

     (a)  Permitted Investments;

     (b)  Investments  in existence on the date hereof and set forth on Schedule
          13.6;
      (c)   Investments in the Borrower or any other Subsidiary;

     (d)  loans or advances to employees  in the ordinary  course of business in
          an  aggregate  amount to any single  employee not in excess of $75,000
          (or, if and to the extent such loans or advances shall be used by such
          employee for relocation expenses, $100,000) and in an aggregate amount
          for all employees of the Borrower and the  Subsidiaries  not in excess
          of $500,000 at any one time outstanding;

     (e)  Trade credit and accounts arising in the ordinary course of business;

     (f)  Investments  consisting  of  extensions  of  credit  in the  nature of
          accounts  receivable  or notes  receivable  arising  from the grant of
          trade  credit in the  ordinary  course of  business,  and  Investments
          received  in  satisfaction  or  partial   satisfaction   thereof  from
          financially   troubled  account  debtors  to  the  extent   reasonably
          necessary in order to prevent or limit loss;

     (g)  Investments made as a result of the receipt of non-cash  consideration
          from an asset sale not prohibited by this Agreement;

     (h)  Investments made in connection with any acquisition by the Borrower or
          a Subsidiary of stock or other equity interests (other than directors'
          qualifying  shares) in, all or substantially all the assets of, or all
          or  substantially  all the assets  constituting  a division or line of
          business  of,  a  Person;   provided,   however,   if  the   aggregate
          consideration  for such  Acquisition  is $5,000,000  or more,  (i) the
          Borrower  shall have  given the Agent  notice of such  Acquisition  at
          least 10 Business Days prior to the consummation of such  Acquisition,
          and (ii) the Required  Lenders shall have given their prior consent to
          such Acquisition (which consent shall not be unreasonably  withheld or
          delayed);

     (i)  other  Investments  in an  amount  not to  exceed  $250,000.00  in the
          aggregate at any time outstanding; and

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     (j)  Acquisitions for which the total  consideration to be paid by Borrower
          is less than $5,000,000.00.

     Section 13.7. Intentionally Omitted.

     Section 13.8. Transactions with Affiliates. Except as set forth on Schedule
13.8 attached  hereto,  the Borrower  shall not sell or transfer any property or
assets to, or purchase or acquire any  property  or assets  from,  or  otherwise
engage  in any  other  transactions  with,  any of its  affiliates  unless  such
transaction  is on terms  that are no less  favorable  to the  Borrower  or such
Subsidiary, as the case may be, than those that could be obtained at the time of
such transaction on an arm's-length basis from a Person who is not an affiliate.

                                   ARTICLE XIV

                                EVENTS OF DEFAULT
                                -----------------

     Section 14.1.  Events of Default.  The occurrence of any one or more of the
following shall constitute an Event of Default:

     (a)  Default  under the  Indebtedness.  Should the Borrower  default in the
          payment of  principal  under the  Indebtedness  of the Borrower to the
          Lenders,  or should the  Borrower  default in the  payment of interest
          under the  Indebtedness  of the Borrower to the Lender within ten (10)
          days after any such interest payment is due.

     (b)  Default  under this  Agreement.  Should the Borrower or any  Guarantor
          violate or fail to comply  fully with any of the terms and  conditions
          of, or default under,  this  Agreement,  and such default not be cured
          within thirty (30) days of the occurrence thereof (provided,  however,
          that no cure period shall be available for a default in the obligation
          to maintain insurance coverages required hereby).

     (c)  Default Under Other  Agreements.  Should any event of default occur or
          exist under any of the Loan  Documents  (excluding an Event of Default
          described  in (a) or (b)  above) or should  the  Borrower  and/or  the
          Guarantor  violate,  or fail to  comply  fully  with,  any  terms  and
          conditions  of any of  the  Collateral  Documents  or  Loan  Documents
          (excluding  an Event of Default  described  in (a) or (b) above),  and
          such  default not be cured within  thirty (30) days of the  occurrence
          thereof.

     (d)  Default  in  Favor  of  Third  Parties.  Should  the  Borrower  or the
          Guarantor (i) fail to pay Debt having a principal  amount in excess of
          $250,000.00  the  aggregate  (other  than  the  Indebtedness),  or any
          interest or premium  thereon,  when due (or, if permitted by the terms
          of the relevant document, within any applicable grace period), whether
          such  Debt  shall  become  due  by  scheduled  maturity,  by  required
          prepayment,  by acceleration,  by demand or otherwise; or (ii) fail to
          perform any term,  covenant or  condition  on its part to be performed
          under any agreement or instrument evidencing,  securing or relating to
          Debt (other than the Indebtedness) having a principal amount in excess
          of $250,000.00 the aggregate,  when required to be performed, and such
          failure shall  continue  after the  applicable  grace period,  if any,
          specified  in such  agreement  or  instrument,  if the  effect of such
          failure is to  accelerate,  or to permit the holder or holders of such
          Debt to accelerate, the maturity of such Debt.

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<PAGE>

     (e)  Insolvency.  The following occurrences,  in addition to the failure or
          suspension  of the  Borrower,  shall  constitute  an Event of  Default
          hereunder:

     (i)  Filing  by  the  Borrower  and/or  any  Guarantor   having  assets  of
          $100,000.00  or more of a  voluntary  petition  or any answer  seeking
          reorganization,  arrangement,  readjustment  of its  debts  or for any
          other relief under any applicable  bankruptcy act or law, or under any
          other insolvency act or law, now or hereafter existing,  or any action
          by the Borrower and/or such Guarantor  consenting to, approving of, or
          acquiescing  in, any such petition or proceeding;  the  application by
          the Borrower  and/or such Guarantor for, or the appointment by consent
          or acquiescence  of, a receiver or trustee of the Borrower and/or such
          Guarantor  for  all  or a  substantial  part  of the  property  of the
          Borrower and/or such Guarantor; the making by the Borrower and/or such
          Guarantor,  of  an  assignment  for  the  benefit  of  creditors;  the
          inability  of the  Borrower  and/or  any  Guarantor  having  assets of
          $100,000.00  or more or the  admission  by the  Borrower  and/or  such
          Guarantor in writing, of its inability to pay its debts as they mature
          (the term  "acquiescence"  means the  failure  to file a  petition  or
          motion in  opposition  to such  petition or proceeding or to vacate or
          discharge any order, judgment or decree providing for such appointment
          within  sixty  (60)  days  after  the  appointment  of a  receiver  or
          trustee); or

     (ii) Filing of an  involuntary  petition  against the  Borrower  and/or any
          Guarantor  having  assets  of  $100,000.00  or more in  bankruptcy  or
          seeking reorganization,  arrangement, readjustment of its debts or for
          any other relief under any applicable  bankruptcy act or law, or under
          any other  insolvency  act or law, now or hereafter  existing and such
          petition remains  undismissed or unanswered for a period of sixty (60)
          days from such filing; or the involuntary appointment of a receiver or
          trustee of the Borrower and/or such Guarantor for all or a substantial
          part of the property of the Borrower  and/or such  Guarantor  and such
          appointment  remains unvacated or unopposed for a period of sixty (60)
          days from such  appointment,  execution or similar process against any
          substantial part of the property of the Borrower and/or such Guarantor
          and such warrant remains unbonded or undismissed for a period of sixty
          (60)  days  from  notice  to the  Borrower  or such  Guarantor  of its
          issuance.

     (f)  Dissolution  Proceedings.  Should  proceedings  for the dissolution or
appointment of a liquidator of the Borrower  and/or any Guarantor  having assets
of $100,000.00 or more be commenced.

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<PAGE>

     (g) False Statements. Should any representation or warranty of the Borrower
made by the  Borrower to the Agent  and/or the Lenders in this  Agreement or any
other Loan  Document or in any  certificate  or statement  furnished  thereunder
prove to be  incorrect  or  misleading  in any  material  respect  when  made or
reaffirmed.

     Upon the  occurrence  of an  Event of  Default,  the  Line of  Credit  Loan
Commitment will, at the option of the Lenders,  either terminate or be suspended
(including  any  obligation  to make any further  Revolving  Loans  and/or issue
Letters of Credit),  and, at the Lenders' option, the Notes and all Indebtedness
of the Borrower will become  immediately due and payable,  all without notice of
any  kind to the  Borrower,  except  that in the case of type  described  in the
"Insolvency"  subsection  above,  such  acceleration  shall be automatic and not
optional.  For any other  Event of  Default,  the  Agent,  upon  request  of the
Required Lenders,  shall by notice to Borrower declare the principal of, and all
interest  then accrued on, the Notes and any other  liabilities  hereunder to be
forthwith  due and payable,  whereupon the same shall  forthwith  become due and
payable without presentment,  demand,  protest,  notice of intent to accelerate,
notice of  acceleration  or other notice of any kind,  all of which Borrower and
each Guarantor hereby expressly waive, anything contained herein or in the Notes
to the contrary notwithstanding.  Upon the occurrence of an Event of Default and
upon the request of the Required  Lenders,  the Agent shall exercise any and all
rights and remedies under the Loan Documents,  or any of them,  granted to Agent
hereunder  or  granted  to  Agent  at  law  or  in  equity,  including,  without
limitation,  foreclosure of the Collateral. Nothing contained in this Article 14
shall be construed to limit or amend in any way the Events of Default enumerated
in the Notes or any other  Loan  Document,  or any other  document  executed  in
connection with the transaction contemplated herein.

     Upon the occurrence and during the continuance of any Event of Default, the
Lenders are hereby authorized at any time and from time to time,  without notice
(other than such notice as provided  below) to Borrower or  Guarantor  (any such
notice being expressly  waived by Borrower and Guarantor),  to set-off and apply
any and all deposits (general or special, time or demand,  provisional or final)
at any time held and other  indebtedness at any time owing by any of the Lenders
to or for the  credit or the  account  of  Borrower  against  any and all of the
indebtedness of Borrower under the Notes and the Loan Documents,  including this
Agreement, irrespective of whether or not the Lenders shall have made any demand
under the Loan  Documents,  including  this  Agreement or the Notes and although
such  indebtedness may be unmatured.  Any amount set-off by the Lenders shall be
applied against the indebtedness  owed the Lenders by Borrower  pursuant to this
Agreement and the Notes. The Lenders agree promptly to notify Borrower after any
such setoff and application, provided that the failure to give such notice shall
not affect the  validity  of such  set-off  and  application.  The rights of the
Lenders  under  this  Section  are in  addition  to other  rights  and  remedies
(including,  without limitation,  other rights of set-off) which the Lenders may
have.

     Section 14.2.  Waivers.  Except as otherwise provided for in this Agreement
and by  applicable  law,  the  Borrower  and the  Guarantor  waive to the extent
permitted by applicable  law (i)  presentment,  demand and protest and notice of
presentment,  dishonor, notice of intent to accelerate,  notice of acceleration,
protest,  default,  nonpayment,   maturity,  release,  compromise,   settlement,
extension or renewal of any or all commercial paper, accounts,  contract rights,
documents,  instruments,  chattel  paper and  guaranties at any time held by the
Agent for the benefit of the Lenders on which the Borrower and the Guarantor may
in any way be liable and hereby ratify and confirm whatever the Agent and/or the
Lenders may do in this regard,  (ii) all rights to notice and a hearing prior to
the  Agent's  taking  possession  or  control  of,  or to the  Agent's  replevy,
attachment or levy upon,  the  Collateral or any bond or security which might be
required  by any  court  prior to  allowing  the  Agent to  exercise  any of its
remedies, and (iii) the benefit of all valuation,  appraisal and exemption laws.
The  Borrower  and the  Guarantor  acknowledge  that they have been  advised  by
counsel of their choice with  respect to this  Agreement,  the other  Collateral
Documents, and the transactions evidenced by this Agreement and other Collateral
Documents.

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                                   ARTICLE XV

                            THE AGENT AND THE LENDERS
                            -------------------------

     Section 15.1.  Appointment and  Authorization.  Each Lender hereby appoints
Agent as its  nominee and agent,  in its name and on its  behalf:  (i) to act as
nominee for and on behalf of such Lender in and under all Loan  Documents;  (ii)
to arrange the means  whereby the funds of Lenders are to be made  available  to
Borrower under the Loan Documents; (iii) to take such action as may be requested
by any Lender  under the Loan  Documents  (when such  Lender is entitled to make
such request under the Loan Documents);  (iv) to receive all documents and items
to be  furnished  to Lenders  under the Loan  Documents;  (v) to be the  secured
party, mortgagee,  beneficiary, and similar party in respect of, and to receive,
as the case may be, any collateral for the benefit of Lenders;  (vi) to promptly
distribute  to each Lender all material  information,  requests,  documents  and
items  received  from  Borrower  under  the Loan  Documents;  (vii) to  promptly
distribute  to each  Lender  such  Lender's  Pro Rata  Part of each  payment  or
prepayment (whether  voluntary,  as proceeds of insurance thereon, or otherwise)
in accordance  with the terms of the Loan Documents and (viii) to deliver to the
appropriate  Persons  requests,  demands,  approvals and consents  received from
Lenders. Each Lender hereby authorizes Agent to take all actions and to exercise
such powers under the Loan Documents as are specifically delegated to such Agent
by the terms  hereof or  thereof,  together  with all  other  powers  reasonably
incidental  thereto.  With respect to its  commitments  hereunder  and the Notes
issued to it, Agent and any successor Agent shall have the same rights under the
Loan  Documents  as any other Lender and may exercise the same as though it were
not the Agent;  and the term  "Lender"  or  "Lenders"  shall,  unless  otherwise
expressly indicated,  include Agent and any successor Agent in its capacity as a
Lender.  Agent and any successor  Agent and its affiliates  may accept  deposits
from, lend money to, act as trustee under  indentures of and generally engage in
any kind of business  with  Borrower,  and any Person which may do business with
Borrower,  all as if Agent and any successor  Agent were not Agent hereunder and
without any duty to account  therefor to the Lenders except where the actions of
Borrower in connection  therewith would constitute a Default or Event of Default
under this Agreement or any other Loan Document;  provided that, if any payments
in respect of any  property  (or the  proceeds  thereof) now or hereafter in the
possession  or  control  of  Agent  which  may be or  become  security  for  the
obligations  of  Borrower  arising  under  the Loan  Documents  by reason of the
general  description  of  indebtedness  secured or of property  contained in any
other  agreements,  documents or instruments  related to any such other business
shall be applied to reduction of the  obligations of Borrower  arising under the
Loan Documents,  then each Lender shall be entitled to share in such application
according to its Pro Rata part thereof.  Each Lender,  upon request of any other
Lender,  shall disclose to all other Lenders all  indebtedness  and liabilities,
direct  and  contingent,  of  Borrower  to such  Lender  as of the  time of such
request.

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<PAGE>

     Section 15.2. Intentionally Omitted.

     Section  15.3.  Consultation  with  Counsel.  Lenders  agree that Agent may
consult  with legal  counsel  selected  by Agent and shall not be liable for any
action taken or suffered in good faith by it in accordance  with and in reliance
upon the advice of such counsel.

     Section 15.4. Documents. Agent shall not be under a duty to examine or pass
upon the validity, effectiveness, enforceability, genuineness or value of any of
the Loan  Documents  or any other  instrument  or  document  furnished  pursuant
thereto or in connection  therewith,  and Agent shall be entitled to assume that
the same are valid, effective,  enforceable and genuine and what they purport to
be.

     Section 15.5.  Resignation or Removal of Agent.  Subject to the appointment
and acceptance of a successor Agent as provided  below,  Agent may resign at any
time by giving written notice thereof to Lenders and Borrower,  and Agent may be
removed at any time with or without cause by Lenders.  If no successor Agent has
been so appointed by Lenders (and  approved by Borrower)  and has accepted  such
appointment  within  30 days  after  the  retiring  Agent's  giving of notice of
resignation  or removal of the retiring  Agent,  then the retiring Agent may, on
behalf of  Lenders,  appoint a  successor  Agent.  Any  successor  Agent must be
approved by Borrower, which approval will not be unreasonably withheld. Upon the
acceptance of any  appointment  as Agent  hereunder by a successor  Agent,  such
successor Agent shall thereupon succeed to and become vested with all the rights
and duties of the retiring  Agent,  and the retiring  Agent shall be  discharged
from its duties and  obligations  hereunder from and after the date on which the
successor Agent accepts its appointment.  After any retiring Agent's resignation
or removal  hereunder as Agent, the provisions of this Article XV shall continue
in effect for its benefit in respect to any actions taken or omitted to be taken
by it while it was acting as Agent.

     Section  15.6.  Responsibility  of Agent.  It is expressly  understood  and
agreed that the  obligations  of Agent under the Loan  Documents  are only those
expressly  set forth in the Loan  Documents,  or as may be imposed by applicable
law,  and that  Agent,  as the case may be,  shall be entitled to assume that no
Default or Event of Default has occurred and is continuing, unless Agent, as the
case may be, has actual  knowledge  of such fact or has  received  notice from a
Lender or Borrower  that such Lender or Borrower  consider  that a Default or an
Event of Default  has  occurred  and is  continuing  and  specifying  the nature
thereof.  Neither  Agent  nor any of their  directors,  officers,  attorneys  or
employees  shall be liable for any  action  taken or omitted to be taken by them
under or in  connection  with the Loan  Documents,  except  for its or their own
gross negligence or willful misconduct.  Agent shall incur no liability under or
in respect of any of the Loan  Documents  by acting  upon any  notice,  consent,
certificate,  warranty or other paper or instrument believed by it to be genuine
or authentic or to be signed by the proper party or parties,  or with respect to
anything which it may do or refrain from doing in the reasonable exercise of its
judgment, or which may seem to it to be necessary or desirable.

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<PAGE>

     Agent  shall not be  responsible  to Lenders for any of  Borrower's  or any
Guarantor's recitals, statements, representations or warranties contained in any
of the Loan Documents,  or in any  certificate or other document  referred to or
provided for in, or received by any Lender under, the Loan Documents, or for the
value, validity, effectiveness, genuineness, enforceability or sufficiency of or
any of the Loan  Documents  or for any failure by Borrower or any  Guarantor  to
perform  any of their  obligations  hereunder  or  thereunder.  Agent may employ
agents and attorneys-in-fact and shall not be answerable,  except as to money or
securities  received  by it or its  authorized  agents,  for the  negligence  or
misconduct  of  any  such  agents  or  attorneys-in-fact  selected  by  it  with
reasonable care.

     The  relationship  between  Agent and each Lender is only that of agent and
principal  and has no  fiduciary  aspects.  Nothing  in the  Loan  Documents  or
elsewhere  shall be construed to impose on Agent any duties or  responsibilities
other than those for which express  provision is therein made. In performing its
duties and functions hereunder, Agent does not assume and shall not be deemed to
have assumed, and hereby expressly  disclaims,  any obligation or responsibility
toward or any relationship of agency or trust with or for Borrower or any of its
beneficiaries or other creditors.  As to any matters not expressly  provided for
by the Loan Documents, Agent shall not be required to exercise any discretion or
take any action,  but shall be  required  to act or to refrain  from acting (and
shall be fully  protected  in so  acting or  refraining  from  acting)  upon the
instructions  of all Lenders  and such  instructions  shall be binding  upon all
Lenders and all holders of the Notes; provided, however, that Agent shall not be
required  to take  any  action  which  is  contrary  to the  Loan  Documents  or
applicable law.

     Agent shall have the right to exercise or refrain from exercising,  without
notice or  liability to the Lenders  (except as  otherwise  provided for in this
Agreement or by applicable  law), any and all rights  afforded to Agent,  as the
case may be, by the Loan  Documents  or which Agent may have as a matter of law;
provided,  however,  Agent shall not,  without the consent of Lenders,  take any
other  action with regard to amending  the Loan  Documents,  waiving any default
under the Loan  Documents  or taking any other  action with  respect to the Loan
Documents  which requires  consent of the Required  Lenders.  Provided  further,
however,  that no amendment,  waiver, or other action shall be effected pursuant
to the preceding  sentence  without the consent of all Lenders which:  (i) would
increase  the  Commitment  amount of any  Lender,  (ii)  would  reduce  any fees
hereunder,  or the principal of, or the interest on, any Lender's  Notes,  (iii)
would  postpone  any date fixed for any  payment of any fees  hereunder,  or any
principal or interest of any Lender's  Notes,  (iv) would  increase any Lender's
obligations  hereunder or would  materially  alter  Agent's  obligations  to any
Lender  hereunder,  (v) would release  Borrower  from its  obligation to pay any
Lender's Notes, (vi) would release the Guaranty and/or the Collateral (except as
provided  in Section  13.2  hereof),  or (vii) would  amend this  sentence.  For
purposes of this  paragraph,  a Lender shall be deemed to have  consented to any
such action by Agent upon the passage of five (5)  Business  Days after  written
notice thereof is given to such Lender in accordance with Section 16.2.  hereof,
unless such Lender shall have previously given Agent notice,  complying with the
provision  of  Section  16.2  hereof,  to the  contrary.  Agent  shall  not have
liability  to  Lenders  for  failure or delay in  exercising  any right or power
possessed  by Agent  pursuant to the Loan  Documents  or  otherwise  unless such
failure or delay is caused by the gross negligence of the Agent.

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<PAGE>

     Section 15.7. Independent  Investigation.  Each Lender severally represents
and  warrants to Agent that it has made its own  independent  investigation  and
assessment of the financial condition and affairs of Borrower in connection with
the making and  continuation of its  participation  hereunder and has not relied
exclusively  on any  information  provided to such Lender by Agent in connection
herewith,  and each Lender represents,  warrants and undertakes to Agent that it
shall continue to make its own independent appraisal of the credit worthiness of
Borrower  while the Notes are  outstanding or its  commitments  hereunder are in
force. Agent shall not be required to keep itself informed as to the performance
or observance by Borrower of this Agreement or any other document referred to or
provided for herein or to inspect the  properties  or books of  Borrower.  Other
than as provided in this Agreement or any other Loan  Document,  Agent shall not
have any duty, responsibility or liability to provide any Lender with any credit
or other information concerning the affairs,  financial condition or business of
Borrower which may come into the possession of Agent.

     Section 15.8.  Indemnification.  Lenders agree to indemnify Agent,  ratably
according  to their  respective  Line of Credit  Loan  Commitment  on a Pro Rata
basis, from and against any and all liabilities,  obligations,  losses, damages,
penalties,  actions,  judgments,  suits, costs, expenses or disbursements of any
proper  and  reasonable  kind or  nature  whatsoever  which may be  imposed  on,
incurred by or asserted  against  Agent in any way relating to or arising out of
the Loan  Documents  or any  action  taken or  omitted  by Agent  under the Loan
Documents,  provided  that no Lender  shall be liable  for any  portion  of such
liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
costs,  expenses or  disbursements  resulting  from Agent's gross  negligence or
willful misconduct.  Each Lender shall be entitled to be reimbursed by the Agent
for any amount such Lender paid to Agent under this Section  15.8. to the extent
the Agent has been reimbursed for such payments by Borrower or any other Person.
The parties  intend for the  provisions  of this Section to apply to and protect
the Agent from the  consequences  of any liability  including  strict  liability
imposed or threatened to be imposed on Agent as well as from the consequences of
its own negligence,  whether or not that negligence is the sole, contributing or
concurring cause of any such liability excluding,  however,  gross negligence of
Agent.

     Section  15.9.  Benefit of Article XV.  Except as provided in Section 15.5,
the agreements  contained in this Article XV are solely for the benefit of Agent
and the  Lenders  and are not for the  benefit  of,  or to be  relied  upon  by,
Borrower, any affiliate of Borrower or any other person and shall not create any
third-party  beneficiary  rights in favor of any Person other than the Agent and
the Lenders.

     Section  15.10.  Pro Rata  Treatment.  Subject  to the  provisions  of this
Agreement, each payment (including each prepayment) by Borrower or any Guarantor
and collection by Lenders (including offsets) on account of the principal of and
interest  on the Notes  and fees  provided  for in this  Agreement,  payable  by
Borrower or any  Guarantor  shall be made Pro Rata;  provided,  however,  in the
event that any  Defaulting  Bank shall have failed to make a  Revolving  Loan as
contemplated  in this  Agreement  hereof and Agent or another  Lender or Lenders
shall have made such Revolving Loan,  payment  received by Agent for the account
of such Defaulting  Bank(s) shall not be distributed to such Defaulting  Bank(s)
until such  Revolving  Loan(s)  shall have been  repaid in full to the Lender or
Lenders who funded such Revolving Loan(s).

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<PAGE>

     Section 15.11. Intentionally Omitted.

     Section 15.12.  Other Financings.  Without limiting the rights to which any
Lender otherwise is or may become entitled,  such Lender shall have no interest,
by virtue of this Agreement or the Loan Documents,  in (a) any present or future
loans  from,  letters  of  credit  issued  by,  or  leasing  or other  financial
transactions  by, any other  Lender to, on behalf  of, or with  Borrower  or any
Guarantor (collectively referred to herein as "Other Financings") other than the
obligations  hereunder;  (b) any  present  or  future  guarantees  by or for the
account of  Borrower or any  Guarantor  which are not  contemplated  by the Loan
Documents;  (c) any present or future  property  taken as security  for any such
Other  Financings  to the extent  not also  security  for the Loans;  or (d) any
property now or hereafter in the possession or control of any other Lender which
may be or become  security  for the  obligations  of Borrower  or any  Guarantor
arising  under  any loan  document  by  reason  of the  general  description  of
indebtedness secured or property contained in any other agreements, documents or
instruments  relating  to any  such  Other  Financings  to the  extent  not also
security for the Loans.

     Section 15.13. Interests of the Lenders. Nothing in this Agreement shall be
construed  to create a  partnership  or joint  venture  between  Lenders for any
purpose.  Agent, Lenders and Borrower recognize that the respective  obligations
of Lenders under the Revolving Loan  Commitments  shall be several and not joint
and that neither  Agent,  nor any of Lenders shall be  responsible  or liable to
perform any of the obligations of the other Lenders under this  Agreement.  Each
Lender is deemed to be the owner of an undivided  interest in and to all rights,
titles,  benefits  and  interests  belonging  and  accruing  to Agent  under the
Collateral  Documents,   including,   without  limitation,  Liens  and  security
interests in any  Collateral,  fees and  payments of  principal  and interest by
Borrower under the Revolving Loan  Commitments on a Pro Rata basis.  Each Lender
shall perform all duties and  obligations of Lenders under this Agreement in the
same proportion as its ownership  interest in the Loans  outstanding at the date
of determination thereof.

     Section 15.14. Investments. Whenever Agent in good faith determines that it
is uncertain about how to distribute to Lenders any funds which it has received,
or whenever Agent in good faith  determines  that there is any dispute among the
Lenders  about how such funds should be  distributed,  Agent may choose to defer
distribution of the funds which are the subject of such  uncertainty or dispute.
If Agent in good faith  believes  that the  uncertainty  or dispute  will not be
promptly  resolved,  or if Agent is otherwise  required to invest funds  pending
distribution  to the Lenders,  Agent may invest such funds pending  distribution
(at the  risk of  Borrower).  All  interest  on any  such  investment  shall  be
distributed upon the distribution of such investment and in the same proportions
and to the same  Persons as such  investment.  All monies  received by Agent for
distribution  to the  Lenders  (other  than to the  Person  who is  Agent in its
separate  capacity  as a  Lender)  shall  be  held  by the  Agent  pending  such
distribution solely as Agent for such Lenders, and Agent shall have no equitable
title to any portion thereof.

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<PAGE>

                                   ARTICLE XVI

                                  MISCELLANEOUS
                                  -------------

     Section 16.1. No Waiver;  Modification  in Writing.  No failure or delay on
the part of the Agent  and/or the  Lenders  in  exercising  any right,  power or
remedy  hereunder  shall  operate as a waiver  thereof,  nor shall any single or
partial  exercise  of any such  right,  power or  remedy  preclude  any other or
further  exercise  thereof or the exercise of any other  right,  power or remedy
hereunder.  No  amendment,  modification  or  waiver  of any  provision  of this
Agreement  or of the  Notes,  nor  consent  to  any  departure  by the  Borrower
therefrom,  shall in any event be effective  unless the same shall be in writing
signed by or on behalf of the Agent and the Required  Lenders (or all Lenders if
their  consent is  required  by Section  15.6  hereof)  and then such  waiver or
consent  shall be effective  only in the specific  instance and for the specific
purpose  for which  given.  No notice to or demand on the  Borrower  in any case
shall  entitle the Borrower to any other or further  notice or demand in similar
or other circumstances.

     Section  16.2.  Addresses  for  Notices.  All  notices  and  communications
provided for hereunder  shall be in writing and,  shall be mailed,  by certified
mail,  return  receipt  requested,  or  delivered  as set forth below unless any
person  named below shall  notify the others in writing of another  address,  in
which case notices and communications shall be mailed, by certified mail, return
receipt requested, or delivered to such other address.

      If to the Agent and the Lenders c/o the Agent:

              Capital One, National Association
              Post Office Box 3847
              Lafayette, LA 70502
              Attn:  Grant Guillotte

      If to the Lenders:

              Capital One, National Association
              Post Office Box 3847
              Lafayette, LA 70502
              Attn:  Grant Guillotte

        If to the Borrower or any Guarantor:

              LHC Group, Inc.
              420 West Pinhook Road
              Suite A
              Lafayette, LA 70503
              Attn: Richard MacMillan

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<PAGE>

     With a copy of any notice of an Event of Default  which is sent to Borrower
also being sent contemporaneously therewith to:

              Alston & Bird, LLP
              1207 West Peachtree Street
              Atlanta, Georgia 30316
              Attn:  Pete C. November

     Section 16.3. Fees and Expenses.  The Borrower agrees to pay all reasonable
out of  pocket  fees,  costs and  expenses  of the Agent  actually  incurred  in
connection with the preparation,  execution and delivery of this Agreement,  and
all Related  Documents  to be executed in  connection  herewith  and  subsequent
modifications  or  amendments  to  any  of  the  foregoing,   including  without
limitation,  the reasonable fees and  disbursements of counsel to the Agent, and
to pay all costs and expenses of the Agent and the Lenders actually  incurred in
connection  with the  enforcement  of this  Agreement,  the  Notes or the  other
Related Documents,  including reasonable legal fees and disbursements arising in
connection therewith. The Borrower also agrees to pay, and to save the Agent and
the Lenders  harmless from any delay in paying stamp and other similar taxes, if
any,  which may be payable or determined  to be payable in  connection  with the
execution  and  delivery  of  this  Agreement,  the  Notes,  the  other  Related
Documents, or any modification thereof.

     Section 16.4.  Right of Set-off.  The Lenders shall have a right to set-off
the obligations of the Borrower hereunder against,  all funds which the Borrower
may maintain on deposit with any Lender (with the  exception of funds  deposited
in the  Borrower's  accounts in trust for third  parties or funds  deposited  in
pension accounts,  IRA's,  Keogh accounts and All Saver  Certificates),  and the
Lenders  shall have a lien upon and a security  interest in all  property of the
Borrower in a Lender's possession or control which shall secure the Indebtedness
of the Borrower to the Lenders under this Agreement and the Notes.

     Section 16.5.  Waiver of Marshaling.  The Borrower and the Guarantor  shall
not at any  time  hereafter  assert  any  right  under  any  law  pertaining  to
marshaling  (whether  of assets or liens)  and the  Borrower  and the  Guarantor
expressly  agree that the Agent may execute or foreclose  upon the Collateral in
such order and manner as the Agent, in its sole discretion, deems appropriate.

     Section 16.6.  Governing  Law. This Agreement and the Notes shall be deemed
to be  contracts  made  under  the laws of the  State of  Louisiana  and for all
purposes shall be governed by and construed in accordance  with the laws of said
State.

     Section 16.7. Consent to Loan Participation. The Borrower and the Guarantor
agree and consent to any Lender's sale or transfer, whether now or later, of one
or more  participation  interests in the  Indebtedness  of the Borrower  arising
pursuant  to  this  Agreement  to one or more  purchasers,  whether  related  or
unrelated to the Lender. Such Lender may provide, subject to the confidentiality
requirements  of Section  16.15,  to any one or more  purchasers,  or  potential
purchasers,  any  information  or  knowledge  such  Lender  may have  about  the
Borrower, the Guarantor or about any other matter relating to such Indebtedness;
provided  that such  purchaser or potential  purchaser  also agrees to keep such
information  confidential.  The Borrower and the  Guarantor  also agree that the
purchasers of any such participation interest will be considered as the absolute
owners  of such  interests  in such  Indebtedness.  In  addition,  any sale of a
participation  interest in the Indebtedness  prior to the occurrence of an Event
of Default will  require the  Borrower's  consent,  which  consent  shall not be
unreasonably withheld.

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<PAGE>

     Section  16.8.  Consent to  Syndication.  The  Borrower  and the  Guarantor
understand  and  acknowledge  that Agent may  syndicate the Loans to one or more
other lending institutions.  The Borrower and the Guarantor consent,  subject to
the  confidentiality  requirements  of  Section  16.15  below,  to  the  Agent's
distribution to interested lending institutions of all financial information and
other  data  in  Agent's  possession  concerning  Borrower  and  the  Guarantor,
including  data  prepared  by or for  Borrower  and the  Guarantor,  so that the
interested lending institution(s) may evaluate the Loans and the Collateral. The
Agent will provide notice to the Borrower of the lending  institutions  that are
distributed  financial data concerning Borrower and the Guarantor.  The Borrower
and the Guarantor  agree to enter into an amendment of this Agreement and any of
the  Related  Documents  in  order to  facilitate  such  syndication;  provided,
however,  any  syndication  prior to the  occurrence of an Event of Default will
require  the  Borrower's  consent,  which  consent  shall  not  be  unreasonably
withheld.  In addition,  the Agent is expressly  authorized  to seek  additional
lending  institutions  to become a lender  hereunder to fund any increase to the
Line of Credit Loan Commitment.

     Section 16.9. Permitted Assignments. Any Lender may, in the ordinary course
of its business and in accordance with applicable law, at any time assign to one
or more banks or other entities ("Purchasers") all or any part of its rights and
obligations under the Loan Documents.  Such assignment shall be substantially in
the form of Exhibit C or in such  other form as may be agreed to by the  parties
thereto. The consent of the Borrower (but not the Guarantor) and the Agent shall
be  required  prior  to an  assignment  becoming  effective  with  respect  to a
Purchaser which is not a Lender or an affiliate thereof; provided, however, that
if an Event of  Default  has  occurred  and is  continuing,  the  consent of the
Borrower and/or the Guarantor  shall not be required.  Such consent shall not be
unreasonably  withheld  or  delayed.  Each such  assignment  with  respect  to a
Purchaser  which is not a Lender or an affiliate  thereof  shall (unless each of
the Borrower and the Agent otherwise consents) be in an amount not less than the
lesser  of (i)  $5,000,000.00  or (ii) the  remaining  amount  of the  assigning
Lender's  Commitment   (calculated  as  at  the  date  of  such  assignment)  or
outstanding Loans (if the applicable  Commitment has been terminated).  Upon (i)
delivery to the Agent of an assignment,  together with any consents  required by
this Section,  and (ii) payment of a $3,500 fee to the Agent for processing such
assignment  (unless  such fee is waived by the  Agent),  such  assignment  shall
become  effective  on the  effective  date  specified  in such  assignment.  The
assignment  shall contain a  representation  by the Purchaser to the effect that
none of the consideration  used to make the purchase of the Commitment under the
applicable assignment agreement constitutes "plan assets" as defined under ERISA
and that the  rights  and  interests  of the  Purchaser  in and  under  the Loan
Documents will not be "plan assets" under ERISA. On and after the effective date
of such  assignment,  such Purchaser shall for all purposes be a Lender party to
this  Agreement  and any other  Loan  Document  executed  by or on behalf of the
Lenders and shall have all the rights and obligations of a Lender under the Loan
Documents,  to the same extent as if it were an original  party  hereto,  and no
further  consent or action by the  Borrower,  the  Lenders or the Agent shall be
required to release the transferor Lender with respect such assignment. Upon the
consummation  of any  assignment to a Purchaser  pursuant to this  Section,  the
transferor Lender, the Agent and the Borrower shall, if the transferor Lender or
the  Purchaser  desires that its Loans be evidenced by Notes,  make  appropriate
arrangements so that new Notes or, as appropriate,  replacement Notes are issued
to such transferor Lender and new Notes or, as appropriate,  replacement  Notes,
are issued to such Purchaser, in each case in principal amounts reflecting their
respective Commitments, as adjusted pursuant to such assignment.

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<PAGE>

     Section  16.10.  Indemnity.  (a)  Subject to the  limitations  set forth in
Section 12.5 as to matters  addressed  therein,  the Borrower and the  Guarantor
agree to  indemnify  and hold  harmless  the  Agent  and the  Lenders  and their
respective   officers,   employees,   agents,   attorneys  and   representatives
(singularly,   an  "Indemnified  Party",  and  collectively,   the  "Indemnified
Parties")  from and  against  any  loss,  cost,  liability,  damage  or  expense
(including  the  reasonable  fees and  out-of-pocket  expenses of counsel to the
Agent and/or the Lenders,  including  all local  counsel  hired by such counsel)
("Claim") incurred by the Agent and/or the Lenders in investigating or preparing
for, defending against, or providing evidence, producing documents or taking any
other   action  in  respect  of  any   commenced   or   threatened   litigation,
administrative  proceeding or  investigation  under any federal  securities law,
federal or state environmental law, or any other statute of any jurisdiction, or
any regulation,  or at common law or otherwise,  to the extent arising out of or
is based upon any acts,  practices or omissions  or alleged  acts,  practices or
omissions  of Borrower  and the  Guarantor,  or its or their agents or arises in
connection  with the  duties,  obligations  or  performance  of the  Indemnified
Parties in negotiating,  preparing,  executing,  accepting, keeping, completing,
countersigning,  issuing, selling, delivering,  releasing,  assigning, handling,
certifying,  processing  or receiving or taking any other action with respect to
the Loan Documents and all documents,  items and materials  contemplated thereby
even if any of the  foregoing  arises  out of an  Indemnified  Party's  ordinary
negligence;  provided, however, that the Borrower and the Guarantor shall not be
obligated to indemnify  any  Indemnified  Party for (A) any acts or omissions of
such Indemnified  Party in connection with matters  described in this subsection
to the extent  arising from the gross  negligence or willful  misconduct of such
Indemnified  Party,  as  determined  by a court of competent  jurisdiction  in a
final,  non-appealable  judgment or (B) Indemnified  Costs to the extent arising
directly out of or  resulting  directly  from claims of one or more  Indemnified
Parties against another  Indemnified Party. The indemnity set forth herein shall
be in addition  to any other  obligations  or  liabilities  of Borrower  and the
Guarantor  to the  Agent  and/or  the  Lenders  hereunder  or at  common  law or
otherwise,  and shall survive any termination of this Agreement,  the expiration
of the Loans and the  payment of all  indebtedness  of  Borrower  to the Lenders
hereunder and under the Notes. If any Claim is asserted  against any Indemnified
Party, the Indemnified Party shall endeavor to notify Borrower and the Guarantor
of such Claim (but failure to do so shall not affect the indemnification  herein
made  except to the  extent of the  actual  harm  caused by such  failure).  The
Indemnified Party shall have the right to employ, at Borrower's expense, counsel
of the  Indemnified  Parties'  choosing and to control the defense of the Claim.
The Borrower or Guarantor may at its/their own expense also  participate  in the
defense of any Claim.  Each  Indemnified  Party may employ  separate  counsel in
connection  with any Claim to the extent  such  Indemnified  Party  believes  it
reasonably prudent to protect such Indemnified Party. The parties intend for the
provisions of this Section to apply to and protect each  Indemnified  Party from
the  consequences  of  any  liability  including  strict  liability  imposed  or
threatened to be imposed on Indemnified  Party as well as from the  consequences
of its own negligence, whether or not that negligence is the sole, contributing,
or concurring cause of any Claim.

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<PAGE>

     (b) No Indemnified Party may settle any claim to be indemnified without the
consent  of  the  indemnitor,  such  consent  not to be  unreasonably  withheld;
provided,  that  the  indemnitor  may not  reasonably  withhold  consent  to any
settlement that an Indemnified  Party proposes,  if the indemnitor does not have
the  financial  ability  to pay all its  obligations  outstanding  and  asserted
against the indemnitor at that time, including,  without limitation, the maximum
potential  claims  pending  or to the  knowledge  of the  indemnitee  threatened
against the Indemnified Party to be indemnified pursuant to this Section 16.10.

     Section  16.11.  Maximum  Interest  Rate.   Regardless  of  any  provisions
contained in this Agreement or in any other documents and  instruments  referred
to  herein,  the  Lenders  shall  never be deemed to have  contracted  for or be
entitled  to  receive,  collect or apply as  interest on the Notes any amount in
excess of the Maximum Rate, and in the event Lenders ever receives,  collects or
applies as interest any such excess,  of if an  acceleration  of the maturity of
the Notes or if any prepayment by Borrower  results in Borrower  having paid any
interest in excess of the Maximum  Rate,  such amount  which would be  excessive
interest  shall be applied to the reduction of the unpaid  principal  balance of
the Notes for which such excess was received,  collected or applied, and, if the
principal  balance of the Notes are paid in full,  any  remaining  excess  shall
forthwith be paid to Borrower. All sums paid or agreed to be paid to the Lenders
for the use, forbearance or detention of the indebtedness evidenced by the Notes
and/or this  Agreement  shall,  to the extent  permitted by  applicable  law, be
amortized,  prorated,  allocated  and  spread  throughout  the full term of such
indebtedness  until  payment in full so that the rate or amount of  interest  on
account of such  indebtedness  does not exceed the Maximum Rate. In  determining
whether or not the  interest  paid or  payable  under any  specific  contingency
exceeds the Maximum Rate of interest  permitted by law, Borrower and the Lenders
shall, to the maximum extent  permitted under  applicable law, (i)  characterize
any  non-principal  payment  as an  expense,  fee or  premium,  rather  than  as
interest;  and (ii) exclude  voluntary  prepayments and the effect thereof;  and
(iii) compare the total amount of interest  contracted for,  charged or received
with the total  amount of interest  which could be  contracted  for,  charged or
received  throughout  the entire  contemplated  term of the Notes at the Maximum
Rate.

     Section 16.12.  Waiver of Jury Trial;  Submission to Jurisdiction.  (a) THE
BORROWER,  THE AGENT AND THE LENDERS HEREBY WAIVE TRIAL BY JURY IN ANY ACTION OR
PROCEEDING TO WHICH THE BORROWER,  THE GUARANTOR,  THE AGENT AND THE LENDERS MAY
BE PARTIES,  ARISING OUT OF OR IN ANY WAY PERTAINING TO (i) THE NOTES, (ii) THIS
AGREEMENT,  (iii) THE COLLATERAL DOCUMENTS OR (iv) THE COLLATERAL.  IT IS AGREED
AND  UNDERSTOOD  THAT THIS WAIVER  CONSTITUTES  A WAIVER OF TRIAL BY JURY OF ALL
CLAIMS  AGAINST ALL PARTIES TO SUCH  ACTIONS OR  PROCEEDINGS,  INCLUDING  CLAIMS
AGAINST PARTIES WHO ARE NOT PARTIES TO THIS AGREEMENT. THIS WAIVER IS KNOWINGLY,
WILLINGLY AND VOLUNTARILY MADE BY THE BORROWER,  THE AGENT AND THE LENDERS,  AND
THE  BORROWER,   THE  AGENT,   AND  THE  LENDERS   HEREBY   REPRESENT   THAT  NO
REPRESENTATIONS  OF FACT OR OPINION HAVE BEEN MADE BY ANY  INDIVIDUAL  TO INDUCE
THIS WAIVER OF TRIAL BY JURY OR TO IN ANY WAY MODIFY OR NULLIFY ITS EFFECT.  THE
BORROWER,  THE AGENT AND THE LENDERS  EACH  FURTHER  REPRESENT  THAT IT HAS BEEN
REPRESENTED IN THE SIGNING OF THIS AGREEMENT AND IN THE MAKING OF THIS WAIVER BY
INDEPENDENT  LEGAL  COUNSEL,  SELECTED OF ITS OWN FREE WILL, AND THAT IT HAS HAD
THE OPPORTUNITY TO DISCUSS THIS WAIVER WITH COUNSEL.

Page 56 of 59
<PAGE>

     (b) THE BORROWER  HEREBY  IRREVOCABLY  CONSENTS TO THE  JURISDICTION OF THE
STATE COURTS OF LOUISIANA  AND THE FEDERAL  COURTS IN LOUISIANA  AND AGREES THAT
ANY ACTION OR PROCEEDING  ARISING OUT OF OR BROUGHT TO ENFORCE THE PROVISIONS OF
THE REVOLVING  NOTES,  THIS  AGREEMENT  AND/OR THE  COLLATERAL  DOCUMENTS MAY BE
BROUGHT IN ANY COURT HAVING SUBJECT MATTER JURISDICTION.

     Section 16.13. Severability. If a court of competent jurisdiction finds any
provision of this Agreement to be invalid or  unenforceable  as to any person or
circumstance,   such  finding  shall  not  render  that  provision   invalid  or
unenforceable as to any other persons or  circumstances.  If feasible,  any such
offending  provision  shall be deemed to be  modified to be within the limits of
enforceability  or validity;  however,  if the offending  provision cannot be so
modified, it shall be stricken and all other provisions of this Agreement in all
other respects shall remain valid and enforceable.

     Section  16.14.  Headings.  Article  and  Section  headings  used  in  this
Agreement are for convenience only and shall not affect the construction of this
Agreement.

Page 57 of 59
<PAGE>

     Section  16.15.  Confidentiality.  For the purposes of this Section  16.15,
"Confidential  Information" means information  delivered to Agent and/or Lenders
by or on  behalf  of the  Borrower  or any  Subsidiary  in  connection  with the
transactions contemplated by or otherwise pursuant to this Agreement (including,
without  limitation,  any information  regarding the  transactions  contemplated
hereby  provided prior to the date of this  Agreement),  provided that such term
does not include  information  that (a) was  publicly  known,  (b)  subsequently
becomes publicly known through no act or omission by Agent and/or Lenders or any
Person  acting on its behalf,  or (c)  otherwise  becomes known to Agent and the
Lenders other than through  disclosure by the Borrower or any Subsidiary.  Agent
and  the  Lenders  will  maintain  the   confidentiality  of  such  Confidential
Information in accordance with their standard procedures to protect confidential
information of third parties  delivered to Agent and/or  Lenders,  provided that
Lender may deliver or disclose  Confidential  Information  to (i) its directors,
officers,  employees,  agents,  attorneys and  affiliates,  (ii) its affiliates,
financial  advisors  and other  professional  advisors who are made aware of the
confidential  nature of such  information  and  agreed to keep such  information
confidential,  (iii) any other holder of the Notes, (iv) any Person to which any
Lender  sells  or  offers  to  sell  the  Notes  or  any  part  thereof  or  any
participation therein (if such Person has agreed in writing prior to its receipt
of such  Confidential  Information to be bound by the provisions of this Section
16.15), (v) any federal or state regulatory  authority having  jurisdiction over
such Lender,  (vi) the National  Association of Insurance  Commissioners  or any
similar  organization,  or any nationally recognized rating agency that requires
access to information about its investment portfolio,  or (vii) any other Person
to which such delivery or disclosure  may be necessary (w) to effect  compliance
with  any law,  rule,  regulation  or order  applicable  to any  Lender,  (x) in
response to any  subpoena or other legal  process,  (y) in  connection  with any
litigation  to which such Lender is a party or an Event of Default has  occurred
and is  continuing,  to the extent such  Lender may  reasonably  determine  such
delivery and disclosure to be necessary or appropriate in the enforcement or the
protection  of the rights and remedies  under this  Agreement and the other Loan
Documents. Each holder of the Notes or an interest therein, by its acceptance of
the Notes or an interest  therein,  will be deemed to have agreed to be bound by
and to be entitled to the  benefits  of this  Section  16.15 as though it were a
party to this Agreement.

          (The remainder of this page was intentionally left blank.)

Page 58 of 59
<PAGE>

      IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed by their respective officers thereunto duly authorized, as of the date
first above written.

                                 Borrower:
                                 LHC GROUP, INC.
                                 a Delaware corporation

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

                                 Agent:
                                 CAPITAL ONE, NATIONAL ASSOCIATION

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

                              Lenders:

                              CAPITAL ONE, NATIONAL ASSOCIATION

Line of Credit                       By:
                                         ---------------------------------------
Loan Commitment:  $25,000,000.00   Name:
                                        ----------------------------------------
                                  Title:
                                        ----------------------------------------

Page 59 of 59
<PAGE>

                                   Exhibit "A"

                             COMPLIANCE CERTIFICATE

                          -----------------------------
                                      Date

Capital One, National Association, as Agent
P. O. Box 3847
Lafayette, LA  70502
Attn:  Mr. Grant Guillotte

Dear Mr. Guillotte:

     This Compliance  Certificate is submitted  pursuant to the  requirements of
that certain Credit Agreement (the "Credit  Agreement") dated as of February 20,
2008,  by and among LHC Group,  Inc.  (the  "Borrower"),  Capital One,  National
Association, as Agent, and the Lenders.

     Under the appropriate paragraphs of the Credit Agreement,  we certify that,
to the best of our knowledge and belief, no condition, event, or act which, with
or without notice or lapse of time or both, would constitute an Event of Default
under the terms of the Credit Agreement,  has occurred during the 3 month period
ending ______________________ (the "Reporting Period"). Also, to the best of our
knowledge,  the Borrower and each Guarantor have complied with all provisions of
the Credit Agreement.

     Additionally,  the Borrower submits the following financial information for
the  Reporting  Period in  accordance  with the  financial  covenants and ratios
contained in the Credit Agreement.

<TABLE>
<CAPTION>
<S>                                                                                         <C>
 I.       MINIMUM FIXED CHARGE COVERAGE (Tested Quarterly on rolling 4 quarters basis)

          (a)   Borrower's EBITDA                                                           $

          (b)   Borrower's consolidated lease/rent expense                                  $

          (c)   Borrower's consolidated unfinanced capex                                    $

          (d)   Sum of (a) + (b) - (c)                                                      $

          (e)   Sum of consolidated prior period current maturities
                of long term debt                                                           $

          (f)   Interest Expense                                                            $

          (g)   Lease/rent expense                                                          $

          (h)   Cash taxes                                                                  $

          (i)   Sum of (e) + (f) + (g) + (h)                                                $

          Ratio (d to i)                                                                    _______ to 1.00
</TABLE>

                                      -1-
<PAGE>

<TABLE>
<CAPTION>
<S>                                                                                         <C>
          Minimum Fixed Charge Coverage                                                     1.50 to 1.00

 II.      TOTAL LIABILITIES TO TANGIBLE NET WORTH (Tested Quarterly)

          (a)   Borrower's Consolidated Total Liabilities
                (include minority interest)                                                 $

          (b)   Borrower's Consolidated Tangible Net Worth                                  $

          Ratio (a to b)                                                                    ________ to 1.00

          Maximum Ratio Permitted.                                                          1.50 to 1.00

 III.     LEVERAGE RATIO
          (Tested Quarterly on a rolling four quarters basis)

          (a)   Borrower's EBITDA                                                           $

          (b)   Sum of senior funded Debt of Borrower and Subsidiaries to Lenders
                (or any of them) plus interest expense                                      $

          Ratio (a to b)                                                                    ______ to 1.00

          Maximum Senior Funded Debt to EBITDA permitted                                    2.50 to 1.00

 IV.      WORKING CAPITAL RATIO

          (a)   Borrower's Consolidated Current Assets                                      $

          (b)   Borrower's Consolidated Current Liabilities (including outstanding balance
                under Line of Credit)                                                       $___________

          Ratio (a / b)                                                                     _____ to 1.00

          Minimum Working Capital Ratio Required                                            2.00 to 1.00
</TABLE>

   V.     Acquisitions

     (a) Borrower or a Guarantor have entered into the following Acquisitions:

     ---------------------------------------------------------------------------
     ---------------------------------------------------------------------------

     (b)  Attached  hereto as  Exhibit  A are  original  copies  of the  Joinder
     Agreement  to the  Guaranty  executed  by such  new  Subsidiaries  acquired
     pursuant to the Acquisitions set forth in V(a) above.

     (c) Attached  hereto as Exhibit B are the  Operating  Agreement (or similar
     document),  Certificate of Formation (or similar document), Resolutions and
     Good Standing Certificate for each new Guarantor.

                                   Sincerely,

                                    LHC GROUP, INC.

                                            By:_________________________________
                                          Name:_________________________________
                                         Title:_________________________________

                                      -3-
<PAGE>

                                   EXHIBIT "B"

                           REQUEST FOR REVOLVING LOAN

TO:   Capital One, National Association, as Agent
      ATTN: Mr. Grant Guillotte

                  RE:   Credit Agreement dated as of February ____, 2008
                        among LHC Group, Inc., Capital One, National
                        Association, as Agent, and the Lenders signatory
                        party thereto (the "Credit Agreement")

     Pursuant to the Credit Agreement,  LHC Group, Inc. (the "Borrower")  hereby
requests a Revolving Loan on the Commitment. Said Revolving Loan shall be in the
amount  of  $__________________.  The  borrowing  date  is  ______________.  The
Revolving Loan shall be (i) a Base Rate Loan ____ or a Eurodollar Loan _____.

     The Borrower certifies that as of the date hereof: (a) the Borrower and the
Guarantor are in compliance  with all conditions and  requirements of the Credit
Agreement;  and (b) no condition,  event,  or act exists which,  with or without
notice or lapse of time or both,  would constitute an Event of Default under the
Credit Agreement.

                                          LHC GROUP, INC.,
                                          a Delaware corporation

                                          By:
                                               _________________________________
                                          Name:
                                               _________________________________
                                          Title:
                                               _________________________________

                                      -1-
<PAGE>

                                    EXHIBIT C

                             FORM OF REVOLVING NOTE

$__________________                                        _____________, 2008

     FOR VALUE RECEIVED,  LHC GROUP, INC., a Delaware  corporation  (hereinafter
referred to as the "Borrower"),  hereby  unconditionally  promises to pay to the
order of ________________________  (the "Lender") at the offices of CAPITAL ONE,
NATIONAL ASSOCIATION,  as Agent for the Lenders (the "Agent"), the principal sum
of _______________  AND NO/100 DOLLARS  ($___________),  or such other or lesser
amounts as may be reflected from time to time on the books and records of Lender
as evidencing the aggregate unpaid principal  balance of Revolving Loans made to
Borrower on a revolving line of credit basis as provided in the Credit Agreement
(as  hereinafter  defined),  in lawful  money of the  United  States of  America
together with  interest  from the date funds are made  available to the Borrower
hereunder  until  paid at the  rates  specified  in the  Credit  Agreement.  All
payments of principal  and interest due  hereunder  are payable at the office of
Agent at 313 Carondelet Street,  New Orleans,  Louisiana 70130, or at such other
address as Agent shall designate in writing to Borrower.

     The  principal  and all  accrued  interest  on this  Note  shall be due and
payable in accordance with the terms and provisions of the Credit Agreement.

     This Note is executed  pursuant to that certain Credit  Agreement  dated of
even  date  herewith  among  Borrower,  the  Agent,  and  Lenders  (the  "Credit
Agreement"),  and is referred to in the Credit  Agreement  as a Revolving  Note.
Reference is made to the Credit Agreement and the Loan Documents for a statement
of prepayment,  rights and obligations of Borrower, for a statement of the terms
and conditions  under which the due date of this Note may be accelerated and for
statements  regarding  other  matters  affecting  this Note  (including  without
limitation  the  obligations  of the holder hereof to advance  funds  hereunder,
principal and interest payment due dates,  voluntary and mandatory  prepayments,
exercise of rights and  remedies,  payment of attorneys'  fees,  court costs and
other  costs of  collection  and certain  waivers by Borrower  and others now or
hereafter obligated for payment of any sums due hereunder).  Upon the occurrence
of an Event of  Default,  the Agent and the  Lender  shall  have all  rights and
remedies as provided under the Credit  Agreement and Loan  Documents.  This Note
may be  prepaid  in  accordance  with the terms  and  provisions  of the  Credit
Agreement.  Reference is made to the Credit Agreement for provisions  concerning
the applicable  procedures for Revolving Loans under this Note.  Notwithstanding
anything herein contained to the contrary,  the maximum  aggregate amount of all
Revolving Loans at any time outstanding under this Note (and Lender's obligation
to advance hereunder) shall not exceed $_______________,  all as provided in the
Credit Agreement.  Unless otherwise  defined herein,  each capitalized term used
herein shall have the same meaning set forth in the Credit Agreement.

                                      -1-
<PAGE>

     Upon the occurrence and continuation of an Event of Default, Lender has the
right prospectively (immediately following any applicable cure period) to adjust
and fix the  simple  interest  rate  under  this Note until this Note is paid in
full, as follows:  the fixed default  interest rate shall be equal to three (3%)
percent per annum in excess of the applicable  interest rate pursuant to Article
IV of the Credit Agreement (including,  without limitation,  the applicable Base
Rate Margin or Eurodollar Margin) in effect at the time of the Event of Default.
Notwithstanding  the  foregoing,  the holder  hereof  shall never be entitled to
receive, collect or apply, as interest on this Note, any amount in excess of the
Maximum Rate.

     If any payment of  principal or interest on this Note shall become due on a
day other than a Business Day or a Eurodollar Business Day, as applicable,  such
payment shall be made on the next succeeding Business Day or Eurodollar Business
Day, as applicable, and such extension of time shall in such case be included in
computing interest in connection with such payment.

     If this Note is placed in the hands of an attorney for collection, or if it
is collected  through any legal proceeding at law or in equity or in bankruptcy,
receivership  or other court  proceedings,  Borrower agree to pay all reasonable
costs of  collection  actually  incurred,  including,  but not limited to, court
costs and reasonable attorneys' fees.

     Borrower waives presentment and demand for payment,  notice of intention to
accelerate the maturity,  protest, notice of protest and nonpayment,  as to this
Note and as to each and all installments hereof.

     Borrower  represents  and  warrants to Lender that loans  evidenced by this
Note were entered into primarily for commercial or business purposes as provided
in La. R. S. 9:3509.

     The Lender  shall have a right to set-off the  obligations  of the Borrower
under this Note  against all funds which the  Borrower  may  maintain on deposit
with the  Lender  (with  the  exception  of funds  deposited  in the  Borrower's
accounts  in trust for third  parties or funds  deposited  in pension  accounts,
IRA's, Keogh accounts and All Saver Certificates),  and the Lenders shall have a
lien  upon and a  security  interest  in all  property  of the  Borrower  in the
Lender's  possession  or control  which  shall  secure the  Indebtedness  of the
Borrower to the Lenders under the Credit Agreement and this Note.

     This  Note  shall be  governed  by and  construed  in  accordance  with the
applicable laws of the State of Louisiana.

            (THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK)

                                      -2-
<PAGE>

     THIS NOTE, THE CREDIT  AGREEMENT AND THE OTHER LOAN DOCUMENTS SET FORTH THE
ENTIRE  AGREEMENT OF THE PARTIES WITH RESPECT TO THE SUBJECT  MATTER  HEREOF AND
SUPERSEDE ALL PRIOR WRITTEN AND ORAL UNDERSTANDINGS BETWEEN THE BORROWER AND THE
LENDER AND ANY OTHER PARTIES WITH RESPECT TO THE MATTERS HEREIN SET FORTH.

     EXECUTED as of the date and year first above written.

                                    LHC GROUP, INC.
                                    a Delaware corporation

                                    By:
                                               _________________________________
                                    Name:
                                               _________________________________
                                    Title:
                                               _________________________________

                                      -3-
<PAGE>

                                 Schedule 1.1(a)
                              Excluded Subsidiaries

Company
-------
--------------------------------------------------------------------------------
   1. Acadian HomeCare, LLC
--------------------------------------------------------------------------------
   2. Arkansas HomeCare of Hot Springs, LLC d/b/a Central Arkansas HomeCare
--------------------------------------------------------------------------------
   3. Athens-Limestone HomeCare, LLC d/b/a Athens-Limestone HomeCare
--------------------------------------------------------------------------------
   4. Baton Rouge HomeCare, LLC
--------------------------------------------------------------------------------
   5. Boone Memorial HomeCare, LLC d/b/a Boone Memorial HomeCare
--------------------------------------------------------------------------------
   6. Clay County Hospital HomeCare, LLC
--------------------------------------------------------------------------------
   7. Georgia HomeCare of Harris, LLC d/b/a Georgia HomeCare of Harris
--------------------------------------------------------------------------------
   8. GSHS Home Health, L.P. d/b/a Good Shepherd HomeCare
--------------------------------------------------------------------------------
   9. Gulf Homecare, Inc. d/b/a Infirmary HomeCare of Grove Hill
--------------------------------------------------------------------------------
   10. HGA HomeCare, LLC d/b/a HGA HomeCare of Huntsville
--------------------------------------------------------------------------------
   11. Hood Home Health Service, LLC
--------------------------------------------------------------------------------
   12. Housecalls Home Health & Hospice, LLC d/b/a Housecalls Home Health
--------------------------------------------------------------------------------
   13. Infirmary Home Health Agency, Inc. d/b/a Infirmary HomeCare of Mobile
--------------------------------------------------------------------------------
   14. Jefferson Regional HomeCare, LLC
--------------------------------------------------------------------------------
   15. LHCG XIII, LLC d/b/a Louisiana HomeCare of Lafayette
--------------------------------------------------------------------------------
   16. LHCG-V, L.L.C d/b/a Glenwood Home Health Agency
--------------------------------------------------------------------------------
   17. LHCG-VIII, L.L.C d/b/a Bunkie HomeCare
--------------------------------------------------------------------------------
   18. LHCG-XII, LLC d/b/a Louisiana Extended Care Hospital of Lafayette
--------------------------------------------------------------------------------
   19. Lifeline Home Health Care of Lady Lake, LLC d/b/a Lifeline Home
       Health Care of Lady Lake
--------------------------------------------------------------------------------
   20. LLC-I, LLC d/b/a Louisiana Extended Care Hospital of Natchitoches
--------------------------------------------------------------------------------
   21. LLC-II, LLC d/b/a St. Landry Extended Care Hospital
--------------------------------------------------------------------------------
   22. Louisiana HomeCare of Delhi, LLC d/b/a Delhi HomeCare
--------------------------------------------------------------------------------
   23. Louisiana HomeCare of Greater New Orleans, LLC
--------------------------------------------------------------------------------
   24. Louisiana HomeCare of Minden, LLC d/b/a Louisiana HomeCare / Minden
--------------------------------------------------------------------------------
   25. Louisiana HomeCare of Miss-Lou, LLC
--------------------------------------------------------------------------------
   26. Louisiana HomeCare of Monroe, LLC d/b/a Louisiana HomeCare of Monroe
--------------------------------------------------------------------------------
   27. Louisiana HomeCare of North Louisiana, LLC d/b/a Louisiana HomeCare of
       Alexandria
--------------------------------------------------------------------------------
   28. Louisiana HomeCare of Northwest Louisiana, LLC d/b/a Louisiana HomeCare
--------------------------------------------------------------------------------
   29. Louisiana HomeCare of Slidell, LLC
--------------------------------------------------------------------------------
   30. Marshall HomeCare, L.P. d/b/a Marshall Regional Medical Center
       HomeCare
--------------------------------------------------------------------------------
   31. Medical Centers HomeCare, LLC d/b/a Medical Centers HomeCare
--------------------------------------------------------------------------------
   32. Mississippi HomeCare of Jackson II, LLC d/b/a Mississippi HomeCare /
       Jackson
--------------------------------------------------------------------------------
   33. Mizell Memorial Hospital HomeCare, LLC d/b/a LHC HomeCare of South
      Alabama
--------------------------------------------------------------------------------
   34. Munroe Regional HomeCare, LLC d/b/a Munroe Regional HomeCare
--------------------------------------------------------------------------------
   35. North Texas HomeCare, LLC
--------------------------------------------------------------------------------
   36. Patient's Choice Hospice and Palliative Care of Louisiana, LLC
--------------------------------------------------------------------------------
   37. Princeton Community HomeCare, LLC d/b/a PCH Home Health
--------------------------------------------------------------------------------

                                       -1-
<PAGE>

   38. Red River HomeCare, LLC
--------------------------------------------------------------------------------
   39. Richardson Medical Center HomeCare, LLC
--------------------------------------------------------------------------------
   40. Southwest Arkansas HomeCare, LLC d/b/a Southwest Arkansas HomeCare
--------------------------------------------------------------------------------
   41. St. Mary's Medical Center Home Health Services, LLC
--------------------------------------------------------------------------------
   42. Texas Health Care Group of The Golden Triangle, LLC d/b/a Southern
       Home Health
--------------------------------------------------------------------------------
   43. Thomas Home Health, LLC d/b/a Thomas Home Health
--------------------------------------------------------------------------------
   44. Tri-Parish Community HomeCare, LLC
--------------------------------------------------------------------------------
   45. University of TN Medical Center Home Care Services, LLC
--------------------------------------------------------------------------------

                                      -2-
<PAGE>

                                 Schedule 1.1(b)
                                   Guarantors

--------------------------------------------------------------------------------
Guarantors

--------------------------------------------------------------------------------
   1.  Able Home Health, Inc. d/b/a Able HomeCare of Bessemer
--------------------------------------------------------------------------------
   2.  Able Home Health, Inc. d/b/a Mississippi HomeCare of Eupora
--------------------------------------------------------------------------------
   3.  Acadian Home Health Care Services, LLC
--------------------------------------------------------------------------------
   4.  Acadian Premiere Regional Nursing, LLC
--------------------------------------------------------------------------------
   5.  AHCG Management, LLC
--------------------------------------------------------------------------------
   6.  Alabama Health Care Group, LLC
--------------------------------------------------------------------------------
   7.  Arkansas Health Care Group, LLC
--------------------------------------------------------------------------------
   8.  Arkansas HomeCare of Forrest City, LLC d/b/a Northeast Arkansas HomeCare
--------------------------------------------------------------------------------
   9.  Arkansas HomeCare of Fulton, LLC d/b/a North Arkansas HomeCare
--------------------------------------------------------------------------------
   10. Dallas County Medical Center HomeCare, LLC
--------------------------------------------------------------------------------
   11. Diabetes Self-Management Center, Inc.
--------------------------------------------------------------------------------
   12. Eureka Springs Hospital HomeCare, LLC d/b/a Northwest
       Arkansas HomeCare
--------------------------------------------------------------------------------
   13. Eureka Springs Hospital Hospice, LLC d/b/a Patient's Choice
       Hospice
--------------------------------------------------------------------------------
   14. Floyd HomeCare, LLC d/b/a Floyd HomeCare
--------------------------------------------------------------------------------
   15. Georgia Health Care Group, LLC
--------------------------------------------------------------------------------
   16. Home Care Plus, Inc.
--------------------------------------------------------------------------------
   17. Home Nursing Care, L.L.C d/b/a Louisiana HomeCare / Houma
--------------------------------------------------------------------------------
   18. HomeCare Management Group, LLC
--------------------------------------------------------------------------------
   19. Kentucky Health Care Group, LLC
--------------------------------------------------------------------------------
   20. Leaf River Home Health Care, LLC
--------------------------------------------------------------------------------
   21. LHC Group Pharmaceutical Services, LLC
--------------------------------------------------------------------------------
   22. LHC Health Care Group of Florida, LLC
--------------------------------------------------------------------------------
   23. LHC HomeCare, LLC
--------------------------------------------------------------------------------
   24. LHC HomeCare, LLC
--------------------------------------------------------------------------------
   25. LHC HomeCare, LLC
--------------------------------------------------------------------------------
   26. LHC HomeCare, LLC
--------------------------------------------------------------------------------
   27. LHC HomeCare-Lifeline, LLC
--------------------------------------------------------------------------------
   28. LHC Real Estate I, LLC
--------------------------------------------------------------------------------
   29. LHCG IX, L.L.C.
--------------------------------------------------------------------------------
   30. LHCG VII, L.L.C.
--------------------------------------------------------------------------------
   31. LHCG XI, LLC d/b/a LHC Social Services
--------------------------------------------------------------------------------
   32. LHCG XIV, LLC d/b/a Louisiana Hospice of Mamou
--------------------------------------------------------------------------------
   33. LHCG-II, L.L.C.
--------------------------------------------------------------------------------
   34. LHCG-VI, LLC d/b/a Franklin HomeCare
--------------------------------------------------------------------------------
   35. LHCG-X, LLC d/b/a Louisiana Extended Care Hospital of West Monroe
--------------------------------------------------------------------------------
   36. Lifeline Home Health Care of Bowling Green, LLC d/b/a
       Lifeline Health Care of Warren
--------------------------------------------------------------------------------

                                      -3-
<PAGE>

   37. Lifeline Home Health Care of Fulton, LLC d/b/a Lifeline
       Health Care of Fulton
--------------------------------------------------------------------------------
   38. Lifeline Home Health Care of Hopkinsville, LLC
--------------------------------------------------------------------------------
   39. Lifeline Home Health Care of Lakeland, LLC d/b/a Lifeline
       Home Health Care of Lakeland
--------------------------------------------------------------------------------
   40. Lifeline Home Health Care of Lexington, LLC d/b/a Lifeline
       Health Care of Fayette
--------------------------------------------------------------------------------
   41. Lifeline Home Health Care of Marathon, LLC d/b/a Lifeline
       Home Health Care of Marathon
--------------------------------------------------------------------------------
   42. Lifeline Home Health Care of Port Charlotte, LLC d/b/a
       Lifeline Home Health Care of Port Charlotte
--------------------------------------------------------------------------------
   43. Lifeline Home Health Care of Russellville, LLC d/b/a
       Lifeline Health Care of Logan
--------------------------------------------------------------------------------
   44. Lifeline Home Health Care of Sebring, LLC
--------------------------------------------------------------------------------
   45. Lifeline Home Health Care of Somerset, LLC d/b/a Lifeline
       Health Care of Pulaski
--------------------------------------------------------------------------------
   46. Lifeline Home Health Care of Springfield, LLC d/b/a Lifeline
       Home Health Care of Springfield
--------------------------------------------------------------------------------
   47. Lifeline Home Health Care of St. Petersburg, LLC
--------------------------------------------------------------------------------
   48. Lifeline Home Health Care of Union City, LLC d/b/a Lifeline
       Home Health Care of Union City
--------------------------------------------------------------------------------
   49. Lifeline of West Tennessee, LLC d/b/a Extendicare of West Tennessee
--------------------------------------------------------------------------------
   50. Lifeline Private Duty Services of Kentucky, LLC d/b/a
       Lifeline Private Duty of Kentucky
--------------------------------------------------------------------------------
   51. Louisiana Extended Care Hospital of Arcadia, LLC
--------------------------------------------------------------------------------
   52. Louisiana Extended Care Hospital of West Monroe, LLC
--------------------------------------------------------------------------------
   53. Louisiana Health Care Group, LLC
--------------------------------------------------------------------------------
   54. Louisiana HomeCare of Hammond, LLC
--------------------------------------------------------------------------------
   55. Louisiana HomeCare of New Orleans, L.L.C.
--------------------------------------------------------------------------------
   56. Louisiana Hospice and Palliative Care, LLC
--------------------------------------------------------------------------------
   57. Louisiana Physical Therapy, LLC d/b/a LeBlanc, Chamberlain
       and Martin Physical Therapy Services
--------------------------------------------------------------------------------
   58. Mena Medical Center Home Health, LLC d/b/a Mena Regional
       Home Health
--------------------------------------------------------------------------------
   59. Mena Medical Center Hospice, LLC d/b/a Mena Regional Hospice
--------------------------------------------------------------------------------
   60. MHCG of Jackson, LLC
--------------------------------------------------------------------------------
   61. Mississippi Health Care Group, LLC
--------------------------------------------------------------------------------
   62. Mississippi HomeCare of Natchez, LLC
--------------------------------------------------------------------------------
   63. Mississippi HomeCare, LLC
--------------------------------------------------------------------------------
   64. Missouri Health Care Group, LLC
--------------------------------------------------------------------------------
   65. Missouri Home Care LLC
--------------------------------------------------------------------------------
   66. North Carolina Health Care Group, LLC
--------------------------------------------------------------------------------
   67. Oak Arbor of Jennings, LLC
--------------------------------------------------------------------------------
   68. Oak Arbor of Sunset, LLC
--------------------------------------------------------------------------------
   69. Oak Shadows of Jennings, LLC d/b/a Louisiana Hospice & Palliative Care of
       Jennings
--------------------------------------------------------------------------------
   70. Oklahoma Health Care Group, LLC
--------------------------------------------------------------------------------
   71. Palmetto Express, LLC
--------------------------------------------------------------------------------
   72. Patient's Choice Hospice, LLC d/b/a Patient's Choice Hospice
--------------------------------------------------------------------------------

                                      -4-
<PAGE>

--------------------------------------------------------------------------------
   73. Picayune HomeCare, LLC d/b/a Gulf Coast HomeCare
--------------------------------------------------------------------------------
   74. Roane HomeCare, LLC d/b/a Roane HomeCare
--------------------------------------------------------------------------------
   75. South Carolina Health Care Group, LLC
--------------------------------------------------------------------------------
   76. South Carolina HomeCare, LLC
--------------------------------------------------------------------------------
   77. Southwest Missouri HomeCare, LLC d/b/a Access Home Health
       Agency
--------------------------------------------------------------------------------
   78. St. James HomeCare, LLC
--------------------------------------------------------------------------------
   79. Tennessee Health Care Group, LLC
--------------------------------------------------------------------------------
   80. Texas Health Care Group Holdings, LLC
--------------------------------------------------------------------------------
   81. Texas Health Care Group of Longview, LLC d/b/a Tyler HomeCare
--------------------------------------------------------------------------------
   82. Texas Health Care Group of Texarkana, LLC d/b/a Texarkana
       HomeCare
--------------------------------------------------------------------------------
   83. Texas Health Care Group, LLC
--------------------------------------------------------------------------------
   84. Virginia Health Care Group, LLC
--------------------------------------------------------------------------------
   85. Virginia HomeCare, LLC
--------------------------------------------------------------------------------
   86. West Virginia Health Care Group, LLC
--------------------------------------------------------------------------------
   87. Wetzel County HomeCare, LLC d/b/a Wetzel County HomeCare
--------------------------------------------------------------------------------

                                      -5-
<PAGE>

                                  Schedule 11.3
                                   Litigation

None.

                                       1
<PAGE>

<TABLE>
<CAPTION>

                                  Schedule 13.4
                                  Encumbrances

                                                                                               File Number
      Name                                   Jurisdiction         Secured Party                 and Date    Description
-------------------------------------------- -------------------- ---------------------------- ------------ ------------------------
<S>                                          <C>                  <C>                          <C>     <C>
      LHC Group, Inc.                        Delaware, State      Irwin Business Finance       5056086 3    Financing statement
                                                                   Corporation                  filed        covering ITS
                                                                                                2/18/05      200Ehternet Kit and
    1.                                                                                                       Server
-------------------------------------------- -------------------- ---------------------------- ------------ ------------------------
      Mississippi Health Care Group, LLC     Mississippi, State   Mississippi Baptist Health   20030168117M Financing statement
      Mississippi Home Care of Jackson, LLC                        Systems, Inc.                filed        covering certain leased
                                                                  Mississippi Baptist Medical   10/8/003     assets including
                                                                   Center, Inc.                              license and provider
                                                                                                             numbers, machinery and
    2.                                                                                                       equipment
-------------------------------------------- -------------------- ---------------------------- ------------ ------------------------
      Palmetto Express, L.L.C                Louisiana, State     U.S. Bancorp Equipment       27-05-00756  Financing statement
                                                                   Finance, Inc.                filed on     filed in Jefferson
                                                                                                8/12/05      Davis Parish covering
                                                                                                             certain chattel paper
                                                                                                             relating to rental
    3.                                                                                                       agreements
-------------------------------------------- -------------------- ---------------------------- ------------ ------------------------
</TABLE>

                                       1
<PAGE>

                                  Schedule 13.5
                              Existing Indebtedness

None.

                                       1
<PAGE>

                                  Schedule 13.6

                                   Investments

Ownership interest in such entities listed on Schedule 1.1(a) and Schedule
1.1(b)

                                       1
<PAGE>

                                  Schedule 13.8
                          Transactions with Affiliates

     When  LHC  Group,  Inc.  ("Borrower")  enters  into a  Management  Services
Agreement  with  a  Subsidiary  of  the  Borrower,   Borrower  provides  general
management   services,   including,   but  not  limited  to:  billing,   coding,
collections,  disbursing  of funds,  preparing  and filing all federal and state
regulatory  filings,  developing  operational  policies regarding  personnel and
patients,  assisting  in  negotiating  third  party  contracts,   providing  and
maintaining   clinical  and  financial  software  and  records,   providing  and
maintaining   necessary  insurance  and  providing  marketing  and  advertising.
Additionally,   Borrower   provides  all  necessary   personnel  for  day-to-day
operations,  performs all related human resource functions, and pays all related
expenses of personnel,  which includes  salaries and wages,  benefits,  workers'
compensation  insurance costs, and  payroll-related  taxes and required employer
contributions and reimbursement for reasonable and necessary business expenses.

     In  consideration,  the Subsidiary of the Borrower pays a management fee to
Borrower  equal to  Borrower's  direct costs of providing  the above  management
services  each  month.  Borrower's  direct  costs are all  expenses  incurred in
providing the management services, including: (i) Borrower's actual expenditures
for such  Subsidiary's  administrator  and other company personnel and expenses,
including,   without  limitation:   salaries  and  wages,   benefits,   workers'
compensation  insurance costs,  payroll-related  taxes,  other required employer
contributions,  leases  of space and  equipment,  travel,  supplies,  utilities,
telephone, legal, marketing,  advertising equipment, supplies, taxes, insurance,
and  other  costs  customarily  incurred  by  home  health  agencies;  and  (ii)
Borrower's  functional  allocation  of home office  costs  according to Medicare
principles of cost allocation for payroll, salaries and benefits administration,
accounts payable, billing, marketing and business development personnel,  travel
expense,  direction of such Subsidiary's  operations,  and quality assurance and
performance improvement.

                                       1

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