Document:

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                                                                   Exhibit 10.17

                               OPERATING AGREEMENT
                                       OF
                            ACADIAN HOMECARE, L.L.C.

         This Operating Agreement is entered into and is effective as of the 1st
day of April, 2004 (the EFFECTIVE DATE), by and among the undersigned Members
who agree as set forth herein regarding the operations of Acadian HomeCare,
L.L.C., a Limited Liability Company, organized under and existing pursuant to
the laws of the State of Louisiana for the purposes of establishing a
cooperative endeavor between the parties:

                                    ARTICLE I
                                   DEFINITIONS

1.1      DEFINED TERMS

         As used in this Agreement, defined terms have the meanings hereinafter
set forth:

         (a)      "Act" means the Louisiana Limited Liability Company Law,
                  Louisiana Revised Statutes 12:1301 et seq., and any successor
                  statute as amended.

         (b)      "Affiliate" means (i) any person directly or indirectly
                  controlling, controlled by or under common control with a
                  Member; (ii) any person owning or controlling 10% or more of
                  the outstanding voting securities or membership interest of a
                  Member; (iii) any officer, director, commissioner, member,
                  manager or other partner of a Member; and (iv) if a Member is
                  an officer, director, commissioner, joint venturer, member,
                  manager or partner, any business or entity for which the
                  Member acts in any such capacity.

         (c)      "Agreement" or "Operating Agreement" means this Operating
                  Agreement as originally executed and as amended from time to
                  time.

         (d)      "Articles" means the Articles of Organization of Acadian
                  HomeCare, L.L.C., as filed with the Secretary of State of
                  Louisiana, as the same may be amended from time to time.

         (e)      "Calendar Quarter" means the three month periods ending on
                  March 31st, June 30th, September 30th, and December 31st of
                  each year.

         (f)      "Capital Account" means a Capital Account maintained in
                  accordance with the rules contained in of the Regulations.

         (g)      "Capital Contribution" means any contribution to the capital
                  of the Company in cash, property or future services by a
                  Member whenever made.

         (h)      "Closing" means the Effective Date set forth above.

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

         (j)      "Company" means Acadian HomeCare, L.L.C., a Limited Liability
                  Company organized under and existing pursuant to the laws of
                  the State of Louisiana.

         (k)      "Distributive Shares" means the share of distributed revenues
                  from the Company due to each Member under the Membership
                  Interests applicable to such distribution.

         (l)      "Fiscal Year" means the Company's fiscal year, which shall be
                  the calendar year.

         (m)      "Majority Vote" or "Votes" means given to these terms in
                  Section 4.15.

         (n)      "Member" means any person executing this Agreement as a Member
                  or hereafter admitted to the Company as a Member as provided
                  in this Agreement, but does not include any person who has
                  ceased to be a Member in the Company.

         (o)      "Membership Interest" or "Interest" means a Member's interest
                  in the Company in which the Member shares in the income,
                  gains, expenses, profits, losses, deductions and credits of
                  the Company, which Interest is expressed as the percentage of
                  the Member's holdings of Units in the Company in proportion to
                  the total issued and outstanding Units of the Company.

         (p)      "Net Profits" and "Net Losses" means the Company's taxable
                  income or loss determined in accordance with the Code for each
                  of its Fiscal Years.

         (q)      "Net Revenues" means total charges of the Company for services
                  provided less contractual adjustments and allowances for bad
                  debt.

         (r)      "Officer" means one or more individuals appointed by the
                  Members to whom the Members delegate specified
                  responsibilities. The Members may, but shall not be required
                  to, amend this Agreement to create such offices as they deem
                  appropriate, including, but not limited to, President, Vice
                  Presidents, Secretary and Treasurer. The Officers shall have
                  such duties as are assigned to them by the Members from time
                  to time, which duties shall be memorialized by written
                  amendment to this Operating Agreement. All Officers shall
                  serve at the pleasure of the Members and the Members by
                  Majority Vote may remove any Officer from office without cause
                  and any Officer may resign at any time.

         (s)      "Person" means any individual, corporation, partnership,
                  limited liability company or any other entity eligible to be a
                  Member under the Act.

         (t)      "Properties" means all of the Company's interests in any
                  movable or immovable properties, contracts or other assets
                  owned by the Company.

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         (u)      "Service Area" means Acadia, Allen, Assumption, Avoyelles,
                  Cameron, East Baton Rouge, Evangeline Iberia, Iberville,
                  Jefferson Davis, Lafayette, Pointe Coupee, Rapides St. Mary,
                  St. Martin, St. Landry, Vermilion, West Feliciana, and West
                  Baton Rouge Parishes in the State of Louisiana.

         (v)      "Transferor Member" means any Member who sells or transfers,
                  or offers to sell or transfer, or attempts to sell or transfer
                  his Units in the Company to another Person; or any Member who
                  is subject to a voluntary or involuntary withdrawal.

         (w)      "Treasury Regulations" or "Regulations" means the federal
                  income tax regulations, including temporary regulations,
                  promulgated under the Code, as such regulations may be amended
                  from time to time (including corresponding provisions of
                  succeeding regulations).

         (x)      "Units" means an interest in the Company acquired by a Member.
                  There shall be two classes of Units, each of which shall have
                  voting rights equal to one vote per Unit. As appropriate in
                  the context, the term Units as used herein shall refer to
                  either or both classes of Units.

                  (1)      Class A Units may be issued to certain Members in
                           exchange for capital contributions to the Company.
                           Class A Units shall represent an equity interest in
                           the Company and shall represent a fully participating
                           interest in the Company's management and Net Profits
                           as hereinafter set forth. The maximum authorized
                           number of Class A Units of the Company is ten million
                           (10,000,000).

                  (2)      Class B Units may be issued to certain Members who
                           have made capital contributions to the Company and
                           who participate in management of the Company. Class B
                           Units shall represent an interest participating in
                           the Net Profits, a limited equity interest and
                           limited voting interest in the Company with respect
                           to its operation of the branch office doing business
                           as St. Landry HomeCare in accordance with the terms
                           hereinafter set forth. The maximum authorized number
                           of Class B Units of the Company is one (1).

                  (3)      Class C Units may be issued to certain Members who
                           have made capital contributions to the Company and
                           who participate in management of the Company. Class C
                           Units shall represent an interest participating in
                           the Net Profits, a limited equity interest and
                           limited voting interest in the Company with respect
                           to its operation of the branch office doing business
                           as Kaplan HomeCare in accordance with the terms
                           hereinafter set forth. The maximum authorized number
                           of Class C Units of the Company is one (1).

                  (4)      Class D Units may be issued to certain Members who
                           have made capital

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                           contributions to the Company and who participate in
                           management of the Company. Class D Units shall
                           represent an interest participating in the Net
                           Profits, a limited equity interest and limited voting
                           interest in the Company with respect to its operation
                           of the branch office doing business as Acadia-St.
                           Landry HomeCare in accordance with the terms
                           hereinafter set forth. The maximum authorized number
                           of Class D Units of the Company is one (1).

                  (5)      Class E Units may be issued to certain Members who
                           have made capital contributions to the Company and
                           who participate in management of the Company. Class E
                           Units shall represent an interest participating in
                           the Net Profits, a limited equity interest and
                           limited voting interest in the Company with respect
                           to its operation of the branch office doing business
                           as Franklin HomeCare in accordance with the terms
                           hereinafter set forth. The maximum authorized number
                           of Class E Units of the Company is one (1).

                                    ARTICLE 2
                                  ORGANIZATION

2.1      INTENT

         This Agreement constitutes the Operating Agreement of the Company, as
         referred to in the Company's Articles and the Act.

2.2      FORMATION

         The Company was been formed by its Members as a Louisiana limited
         liability company by the filing of Articles pursuant to the Act.

2.3      PURPOSES

         (a)      The Company is restructuring its arrangements with certain
                  hospitals ("Hospitals") which are parties to continuing
                  cooperative endeavors to operate a Medicare certified home
                  health agency within the Service Area in the State of
                  Louisiana, and otherwise engaging in any lawful activity for
                  which limited liability companies may be formed under the laws
                  of the State of Louisiana as may be approved by the Members.
                  In furtherance thereof, the Company may exercise all powers
                  necessary to or reasonably connected with the Company's
                  business which may be legally exercised by limited liability
                  companies under the Act, and may engage in all activities
                  necessary, customary, convenient, or incident to any of the
                  foregoing.

         (b)      The parties acknowledge that Louisiana Health Care Group, LLC
                  owns and

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                  operates several home health agencies in south-central
                  Louisiana, including agency offices located in Abbeville,
                  Alexandria, Baton Rouge, Bunkie, Clinton, Crowley, Eunice,
                  Ferriday, Franklin, Jennings, Lafayette, Lake Charles, New
                  Iberia, Oakdale, Opelousas, Palmetto, Ville Platte, and Welsh
                  whose service areas may overlap with Company's Service Area.
                  The parties further acknowledge that the Company's home health
                  agency's authorized regulatory service area is that area
                  within a fifty (50) statute mile radius of Lafayette,
                  Louisiana, some of which are not subject to cooperative
                  endeavors with hospitals. Therefore, the parties agree that
                  the Company shall provide home health care services to
                  patients in accordance with the following criteria:

                  Unless otherwise requested by the patient or the patient's
                  attending physician, to ensure continuity of care and to
                  further the healthcare mission of the Company and its hospital
                  members ("Hospitals"), the Company shall admit any patient for
                  home health services who is referred by a Hospital following
                  Hospital's compliance with all regulatory procedures contained
                  in Section 2.3 (b)(e) to the branch office in which a Hospital
                  has a participation interest.

         (c)      The parties agree that the foregoing limitations are not in
                  the nature of a non-competition agreement, but rather are
                  voluntary, self-imposed restrictions on operations of the
                  Company to protect other business interests of the Company,
                  the Members and their Affiliates, in the absence of which
                  Company would not have admitted any Members.

         (d)      The parties further agree that these restrictions on the
                  Company's operations may only be modified or rescinded upon
                  the Majority Vote of the Members of the Company.

         (e)      The parties acknowledge each Hospital is limited by federal
                  law when making referrals to a home health enterprise in which
                  it has an investment interest. Social Security Act Section
                  1861(ee)(2)(D) requires that the Hospital offer potential home
                  health patients a choice of any qualified provider that
                  services the area of the patient's residence. The proposed
                  regulations implementing this provision require that the
                  Hospital furnish each patient a list of available home health
                  agencies from which to choose. (See 42 CFR 482.55 (b) (7) as
                  proposed in 62 Federal Register 66726 (Dec. 19, 1997).
                  Moreover, Social Security Act Section 1861(ee)(2)(H) and
                  Section 1866 (a)(1)(S) require a hospital to disclose to
                  patients and to the federal Centers for Medicare and Medicaid
                  Services the nature of any financial interest it may have in a
                  home health enterprise. Each Hospital shall ensure compliance
                  with all current and future applicable requirements regarding
                  its role in the patient's selection of a home care provider
                  prior to referring any patient to the Company.

         (f)      In keeping with the Hospitals' obligations to provide health
                  care services to residents of their respective service areas,
                  Company agrees to continue to provide home health services
                  within the Service Area so long as this Agreement is in

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                  effect. Home health services provided by Company shall include
                  substantially the full range of clinical services currently
                  provided by the Company's home health agency. Company further
                  agrees that, to assure quality of services provided to the
                  residents of the Service Area, it will establish and maintain
                  accreditation with the Joint Commission on Accreditation of
                  Healthcare Organizations (or its successors) for so long as it
                  provides home health care services to residents of the Service
                  Area. The foregoing obligations to provide home health
                  services or to accept patients for admission does not include
                  an obligation to provide services to patients who do not meet
                  eligibility criteria for home health services established by
                  their payor source.

         (g)      The Members agree that the following branch offices shall
                  continue to provide home health services in the following
                  areas:

                  St. Landry HomeCare shall provide home health services within
                  St. Landry Parish, excepting the areas of the Parish which are
                  encompassed by: (i) the Acadia-St. Landry Hospital Service
                  District, and (ii) U.S. Postal Service Zip Code 70535 in the
                  State of Louisiana;

                  Kaplan HomeCare shall provide home health services within
                  Vermilion Parish, excepting the areas of the Parish which are
                  encompassed by the Vermilion Parish Hospital Service District
                  No. 2;

                  Acadia-St. Landry HomeCare shall provide home health services
                  within St. Landry and Acadia Parishes, within the areas which
                  are encompassed by the Acadia-St. Landry Hospital Service
                  District boundaries;

                  Franklin HomeCare shall provide home health services within
                  St. Mary Parish, within the areas which are encompassed by the
                  St. Mary Parish Hospital Service District No. 2 boundaries.

                  The Lafayette office of Acadian HomeCare shall provide home
                  health services within its regulatory authorized service area
                  in areas not otherwise covered by other branch offices of the
                  Company.

         (h)      Notwithstanding the foregoing, the obligations contained
                  herein are not intended to induce the referral of patients,
                  items or services and the Parties acknowledge that there is no
                  requirement that any Hospital refer patients to Company,
                  except as may be consistent with the wishes of the patient and
                  with law.

2.4      REGISTERED OFFICE AND AGENT

         The Company shall maintain a registered office and a registered agent
         in the State of Louisiana, which office and agent may be changed by the
         Members.

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2.5      OTHER OFFICES

         In addition to its registered office in Louisiana, the Company may have
         other offices and places of business at such places, both within and
         without the State of Louisiana, as the Members may from time to time
         determine.

2.6      OPERATING AGREEMENT

         The affairs of the Company shall be governed by the Act, its Articles
         and this Operating Agreement. There shall be only one Operating
         Agreement governing the affairs of the Company and the relationships of
         the Members to one another as such relate to the business of the
         Company. Any oral or written agreement between or among the Members
         relating to the Company and the matters governed by this Operating
         Agreement shall be of no effect whatsoever unless and until the Members
         agree by Majority Vote (or, if applicable, by such higher vote) to
         incorporate said agreement into this Operating Agreement.

                                    ARTICLE 3

                                     MEMBERS

3.1      MEMBERS

         The Members of the Company shall be those Persons who have joined in
         the execution of this Agreement or an appropriate addendum thereof, and
         who have been approved for membership by the Majority Vote of the
         Members. The Members further agree that allocations of classes of units
         to such newly admitted Members shall not affect any other Member's
         equity or voting interests as set forth herein.

3.2      EXECUTION OF THIS AGREEMENT

         The admission of an additional Member shall not become effective until
         the Person has executed this Agreement, or an appropriate supplement
         hereto, pursuant to which the new Member agrees to be bound by, and
         subject to, all of the terms and provisions hereof and restrictions
         herein.

3.3      MEMBERS HAVE NO EXCLUSIVE DUTY TO COMPANY

         (a)      No Member shall be required to perform services for the
                  Company solely by virtue of being a Member. Unless approved by
                  the Members, no Member shall perform services for the Company
                  or be entitled to compensation for services performed for the
                  Company.

         (b)      Except as otherwise expressly stated herein, no Member shall
                  be required to participate in the Company as such Member's
                  sole and exclusive function and any

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                  Member shall be entitled to and may have other business
                  interests and may engage in other activities in addition to
                  those relating to the Company and in addition to those
                  permitted Related Party Transactions as described in Section
                  4.23. No Member shall have a business interest or engage in
                  activities which are in direct competition with the Company's
                  provision of home health care services without the expressed
                  written approval of the other Members pursuant to a Majority
                  Vote. Neither the Company nor any Member shall have any right,
                  by virtue of this Operating Agreement, to share or participate
                  in such other investments or activities of the Member or to
                  the income or proceeds derived therefrom, and no member shall
                  have any liability or responsibility for any losses sustained
                  by a Member in such other investments or activities. The
                  Member shall incur no liability to the Company or to any of
                  the Members as a result of engaging in any other business or
                  venture permitted by this Agreement.

                                    ARTICLE 4
                                   MANAGEMENT

4.1      MANAGERS

         (a)      The business of the Company shall be managed by a Manager, who
                  may, but need not, be Member, and who shall be a mandatary of
                  the Company for all matters in the ordinary course of its
                  business. LHC GROUP, LLC shall be the initial Manager of the
                  Company, and appears herein to accept said appointment. To the
                  extent authorized by this Agreement, the Manager shall have
                  full, exclusive and complete discretion, control, power and
                  authority in the management of the Company's affairs. The
                  Manager shall have full power and authority to undertake any
                  activity described in this Article and to execute and deliver
                  on behalf of the Company such documents or instruments which
                  the Manager deems appropriate in the conduct of the Company's
                  business. No person, firm or corporation dealing with the
                  Company shall be required to inquire into the authority of the
                  Manager to take any action or make any decision.

         (b)      The Manager shall be required to devote to the Company's
                  affairs only such part of its time as is reasonably required
                  to conduct the operations contemplated under this Agreement
                  and shall be free to engage in any other business for its own
                  account and/or for the account of others, however, no such
                  business interests and activities may be in direct competition
                  with the Company. Neither the Company nor any of the Members
                  shall have any rights by virtue of this Agreement in any
                  independent business ventures of the Manager. The Manager
                  shall not take or recommend any action which may or will
                  affect the Company's home health agency licensure or Medicare
                  certification, or which violates any law or regulation.

         (c)      Subject to the ultimate authority of the Members of the
                  Company, the day to day management of each branch office
                  within the Service Area shall be conducted by

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                  the Manager under the oversight and direction of a "Management
                  Committee." No Management Committee shall take or recommend
                  any action which may or will affect the Company's home health
                  agency licensure or Medicare certification, or which violates
                  any law or regulation. Each committee shall have one
                  representative appointed by the Manager holding 66 votes, and
                  one representative appointed by the Hospital participating in
                  the branch office holding 33 votes. The votes granted to the
                  representatives are for purposes of the Management Committee
                  only and do not constitute "Votes" as same are defined in
                  Section 4.15. Representatives on the Management Committee may
                  meet and take action in accordance with the provisions of
                  Sections 4.17 and 4.18 of this Agreement.

4.2      POWERS OF MANAGER.

         The Manager shall have all necessary powers to carry out the purposes
         and conduct the business of the Company including, without limitation,
         excepting any specific limitations contained in this Agreement or in
         applicable law, the authority, right and power on behalf of the Company
         to:

         (a)      To negotiate all such contracts, agreements, and other
                  undertakings without binding the Company until same are
                  approved by Majority Vote of the Members;

         (b)      Hold, manage and defend the assets of the Company;

         (c)      Open, maintain and close bank accounts, designate and change
                  signatories on such accounts and draw checks and other orders
                  for the payment of monies;

         (d)      Lease, sell, convey, assign, trade, exchange, quitclaim,
                  surrender, release, abandon or otherwise dispose of any
                  movable assets or interest therein or payable therefrom not to
                  exceed $25,000 without any further act or vote or grant of
                  authority by any Members and in connection therewith make any
                  such distributions as the Manager may deem appropriate from
                  the proceeds of such sale to the Members. Any such transaction
                  exceeding $25,000 shall require the prior approval of 75% of
                  the Votes;

         (e)      To collect and deposit all Company receipts and to disburse
                  all Company funds in payment of all ordinary and necessary
                  expenses;

         (f)      Sue and be sued, complain and defend in the name of and on
                  behalf of the Company;

         (g)      Execute and deliver all negotiable instruments, checks, drafts
                  or other orders for the receipt or payment of funds belonging
                  to the Company;

         (h)      Execute powers of attorney, consents, waivers and such other
                  documents as may be necessary or appropriate before any court,
                  administrative board or agency of any governmental authority
                  affecting Company assets;

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         (i)      Purchase insurance, at the Company's expense, to protect
                  Company assets against loss and to protect the Manager against
                  liability to third parties arising out of the Company's
                  activities, provided that any such insurance shall name each
                  Member, individually as an additional named insured;

         (j)      Prepare and file all returns for the Company and make all
                  elections for the Company with respect to federal and state
                  income or other taxes;

         (k)      Recommend employment of such agents, employees, accountants,
                  lawyers, clerical help and other assistance and services
                  subject to approval by Majority Vote;

         (l)      Grant and perfect security interests in the Company's accounts
                  solely for the purposes of obtaining operational financing as
                  provided in Section 4.23 and 4.29; and

         (m)      Execute and deliver such other documents and perform such
                  other acts as the Manager in his sole discretion may determine
                  to be necessary or appropriate to carry out the purposes of
                  the Company

         The foregoing powers of the Manager are subject to the limitation that
         no specific action may be taken by the Manager over the prior objection
         to such specific action by a Member unless and until such specific
         action is approved by Majority Vote.

4.3      CERTAIN LIMITATIONS ON AUTHORITY OF MANAGER.

         All authority not specifically delegated to the Manager hereinbefore
         shall be reserved to the Members. All decisions of the Members shall be
         determined by Majority Vote; except that, the following matters shall
         require the approval of a two-thirds (2/3's) Vote of the Members:

         (a)      To dissolve, liquidate or wind-up the business of the Company;

         (b)      To sell, exchange, lease, mortgage, pledge, encumber, or grant
                  a security interest in, or otherwise transfer assets, other
                  than inventory in the ordinary course of business, and other
                  than granting and perfecting security interests in the
                  Company's accounts as provided in 4.2(l) above;

         (c)      To merge or consolidate the Company with or into any other
                  entity;

         (d)      Except as provided in Section 4.29 in relation to operational
                  financing, to incur indebtedness in excess of $25,000 in any
                  one transaction, or in excess of $100,000 in the aggregate,
                  which aggregate amount shall include any outstanding
                  operational financing amounts;

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         (e)      To alienate, lease or encumber any immovable property
                  belonging to the Company;

         (f)      Confess to judgment against the Company;

         (g)      To admit new members;

         (h)      To file voluntary bankruptcy proceedings;

         (i)      To amend the Articles or this Agreement; and

         (j)      To make distributions to a Member or Members.

4.4      COMPENSATION AND REIMBURSEMENT OF MANAGER.

         Manager shall not receive any compensation for its services rendered in
         its legal capacity as Manager of the limited liability company unless
         and until same be established upon a Majority Vote. Manager shall be
         reimbursed on a monthly basis for all direct costs and expenses
         reasonably incurred on behalf of the Company. All compensation to
         Manager for services rendered and all direct costs and expenses
         incurred by Manager on behalf of the Company shall not exceed that
         which is reasonable and proper for comparable services performed in a
         like manner in accordance with industry standards, and shall to the
         extent applicable, meet the criteria of any applicable safe harbor
         regulation.

4.5      LIABILITY AND INDEMNIFICATION OF MANAGER.

         In addition to any other provision contained herein conferring similar
         rights, the Manager shall not be liable, responsible, or accountable in
         damages or otherwise to the Company or to any Member for any action
         taken or any failure to act on behalf of the Company within the scope
         of the authority conferred on the Manager by this Agreement or by law,
         unless the action was taken or omission was made fraudulently or in bad
         faith or unless the action or omission constituted gross negligence, or
         conduct demonstrating a greater disregard of the duty of care than
         gross negligence, including but not limited to, intentional tortious
         conduct or intentional breach of Manager's duty of loyalty.

4.6      POWER OF ATTORNEY.

         Each Member hereby constitutes and appoints the Manager as the Member's
         true and lawful attorney and agent with full power and authority in the
         Member's name, place, and stead solely for the purpose of executing,
         swearing to, acknowledging, delivering, filing, and recording in the
         appropriate public offices:

         (a)      All such certificates that are necessary or appropriate to (1)
                  qualify or continue the Company as a limited liability company
                  or (2) to conduct the business of the Company in the
                  jurisdictions in which the Company may conduct business or own
                  or lease property; and

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         (b)      One or more fictitious or trade name certificates

         The power of attorney granted herein shall be considered to be coupled
         with an interest, and, to the extent permitted by applicable law, shall
         survive the death, interdiction, withdrawal, resignation, retirement,
         expulsion, bankruptcy, dissolution, or termination of existence of a
         Member or interest holder. It shall also survive the Transfer of an
         Interest, except that if the Transferee is admitted as a Member, this
         power of attorney shall survive the delivery of the assignment for the
         sole purpose of enabling the Manager, as attorney in fact, to execute,
         acknowledge, and file any documents needed to effectuate the
         substitution.

4.7      RESIGNATION OR WITHDRAWAL OF MANAGER.

         The Manager may resign upon giving written notice to the Company at
         least thirty (30) days in advance. Upon the resignation or withdrawal
         of the Manager, a new Manager may be elected by an unanimous vote of
         the Members.

4.8      OTHER AGENTS

         The Members, on Majority vote, may appoint other managers, agents, or
         attorneys-in-fact as needed from time to time, whose authority to act
         for the Company shall be stated in the written act or instrument
         pursuant to which said agent or attorney in fact is appointed. Unless
         expressly authorized to do so by the Members, no attorney-in-fact,
         employee or other agent of the Company shall have any power or
         authority to bind or obligate the Company in any way, or to pledge its
         credit.

4.9      REMOVAL OF MANAGER.

         The Members, at any time and with or without cause, may remove a
         Manager and elect a new Manager, only upon unanimous Vote of the
         Members .

4.10     LIMITATION ON AUTHORITY OF MEMBERS.

         No Member is an agent of the Company solely by virtue of being a
         Member, and no Member has authority to act for the Company solely by
         virtue of being a Member. This Section 4.10 supersedes any authority
         granted to the Members by the Act. Any Member who takes any action or
         binds the Company in violation of this Operating Agreement shall be
         solely responsible for any loss and expense incurred by the Company as
         a result of the unauthorized action and shall indemnify and hold the
         Company harmless with respect to the loss or expense.

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4.11     BUSINESS JUDGMENT.

         The Managers and the Members shall be entitled to rely on information,
         opinions, reports or statements, including but not limited to financial
         statements or other financial data prepared or presented by: (i) any
         one or more Members, Officers or employees of the Company whom the
         Member reasonably believes to be reliable and competent in the matter
         presented, (ii) legal counsel, public accountants, or other persons as
         to matters the Member reasonably believes are within the person's
         professional or expert competence, or (iii) a committee of Members on
         which he or she does not vote if the Member reasonably believes the
         committee merits confidence.

4.12     MEETINGS OF THE MEMBERS

         Subject to the notice requirement of Section 4.13, meetings of the
         Members may be called at any time by a Manager, or by Members holding
         in the aggregate thirty percent (30%) of the Units. If the meeting is
         called by less than a majority in interest of the Members, it shall be
         held at the registered office of the Company, unless all Members agree
         to an alternate location. Subject to the foregoing, meetings of the
         Members may be held at the office of the Company, or at such other
         place, either within or without the State of Louisiana, at a time and
         date as designed in the notice. Failure to hold an annual meeting shall
         not affect or vitiate the Company's existence.

4.13     NOTICE OF MEETINGS

         Written notice of the time and place of a meeting of Members shall be
         given by the Person calling the meeting to all Members at least two (2)
         days and not more than sixty (60) days prior to the date fixed for the
         meeting. Notice of any Members' meeting may be waived in writing by any
         Member at any time. Attendance at any meeting by a Member shall be
         deemed a waiver of notice of such meeting unless such attendance is
         solely for the purpose of objecting to the legality of the meeting on
         grounds of inadequate or improper notice.

4.14     QUORUM

         Except as may be otherwise required by the Act, the Articles or this
         Agreement, the presence in person or by proxy of persons holding
         fifty-one percent (51%) of the Votes shall be necessary to constitute a
         quorum at any meeting of the Members.

4.15     VOTING

         At any meeting of the Members, every Member having the right to vote
         shall be entitled to vote in person, or by proxy. There shall be one
         vote allotted for each Unit held by the Members (the "Votes").
         Fractional Units shall not be entitled to vote except in the event of a
         tie vote. Except for actions requiring the unanimous or a supermajority
         consent or approval of the Members as required by the Act, the
         Articles, or this Agreement, a fifty-

<PAGE>

         one percent (51%) majority of the Votes present and voting ("Majority
         Vote") shall decide any matter brought before the Members. On demand of
         any Member, the vote on any question shall be by written ballot.

4.16     PROXIES

         At any meeting of the Members, every Member shall be entitled to vote
         in person or by proxy appointed by an instrument in writing subscribed
         by such Member and bearing a date not more than eleven months prior to
         the meeting, unless the instrument provides for a longer period. Any
         Member may issue an irrevocable proxy to any other Member. A copy of
         such instrument shall be filed prior to or at the meeting. The person
         granted a Member's proxy has full authority to act as and on behalf of
         the Member granting such authority, with all powers and rights incident
         thereto, unless otherwise limited in such instrument.

4.17     WRITTEN CONSENT

         Any action may be taken without a meeting of the Members if a consent
         in writing, setting forth the action so taken, shall be signed by those
         Members having sufficient votes to authorize the action. Such consent
         shall have the same force and effect as a vote of the Members. A
         photostatic, email, facsimile transmission, or similar reproduction of
         a writing, signed by a Member, shall be regarded as an original for all
         purposes. A copy of the written consent shall be distributed to each
         non-consenting Member within fifteen (15) days of the date of such
         consent. The failure to distribute such copies shall not vitiate or
         effect the consent in any manner.

4.18     TELEPHONE CONFERENCE CALLS; EMAIL

         Members may participate in meetings by means of a telephone conference
         call or similar communication equipment provided that all Persons
         participating in the meeting can hear and communicate with each other.
         Participation in such a meeting shall constitute presence at the
         meeting, except where a Person participates in the meeting for the
         express purpose of objecting to the transaction of any business on the
         ground that the meeting is not lawfully called or convened. The Manager
         may poll the Members by telephone and the results of such poll may
         constitute action by the Members so long as no Member who has been
         polled objects to such action prior to its adoption, and provided that
         any action taken by poll is properly reduced to writing and a copy of
         the same provided to the Members within ten (10) days following the
         poll. Members may take action by way of serial email transmissions so
         long as each Member contemporaneously receives a copy of the emails
         proposing and discussing such action and no Member objects to such
         action prior to its adoption.

4.19     TAX RETURNS AND ELECTIONS

         The Manager shall cause the preparation and timely filing of the
         Company's tax returns,

<PAGE>

         shall make such tax elections and determinations as appear to be
         appropriate, and shall timely file all other writings required by any
         governmental authority having jurisdiction to require such filing. Upon
         the transfer of all of the Member's interest in the Company or upon the
         death of a Member, or upon the distribution of any property of the
         Company to a Member, the Company may (but shall not be required to)
         file an election in accordance with the applicable Treasury Regulations
         to cause the basis of such property to be adjusted for federal income
         tax purposes as provided by the Code.

4.20     REIMBURSEMENT OF COSTS AND EXPENSES

         Any Member acting for and on behalf of the Company shall be entitled to
         reimbursement for all reasonable expenses, costs and other liabilities
         reasonably incurred on behalf of the Company, except to the extent that
         such expenses, costs and other liabilities are incurred in connection
         with services that the Member has agreed to perform for the Company as
         a contribution to its capital.

4.21     LIMITATION OF LIABILITY

         Except as otherwise provided by the laws of the State of Louisiana, the
         personal liability of each Member, if any, shall be limited to his
         capital contribution to the Company as set forth herein. No Member has
         guaranteed or shall have any obligation with respect to the return of a
         Member's Capital Contributions or profits from the operation of the
         Company. No Member shall be liable for any debt or liability of the
         Company unless same shall be separately guaranteed or endorsed by a
         Member in that Member's personal capacity. No Member shall be liable,
         responsible or accountable in damages or otherwise to the Company or
         any other Member for any loss or damage incurred by the Company or the
         Member by reason of any act or omission performed or omitted by the
         Member on behalf of the Company, provided that the Member acted (i) in
         good faith, and (ii) in a manner reasonably believed by the Member to
         be within the scope of the authority granted to him by this Agreement
         and in the best interest of the Company. The foregoing limitation of
         liability shall not apply to such losses to, or damages incurred by,
         the Company or the Members that result from the Member's gross
         negligence, intentional misconduct or breach of a fiduciary duty owed
         to the Company or the Members.
<PAGE>
4.22     INDEMNITY

         Except as otherwise provided for herein, to the fullest extent
         permitted by law the Company shall indemnify, defend and hold harmless
         each Member and make advances for expenses to each Member arising from
         any loss, cost, expense, damage, claim or demand, in connection with
         the Company, the Member's status as a Member of the Company, the
         Member's participation in the management, business and affairs of the
         Company or such Member's activities on behalf of the Company. The
         Company shall also indemnify, defend and hold harmless its Officers,
         employees and Managers from any loss, cost, expense, damage, claim or
         demand in connection with the Company, any such Person's participation
         in the business and affairs of the Company, or such Person's activities
         on behalf of the Company. Each Member shall be named as an additional
         insured in any liability insurance policy secured or obtained by or on
         behalf of the Company. Upon request of any Member, each Member agrees
         to notify its present or future insurer or insurers that it desires to
         waive subrogation against the other parties to this Agreement and to
         verify that such waiver has been made part of the policy. Each of the
         parties hereby agree to indemnify, and hold the other harmless for any
         loss sustained because of the other's failure to carry out the
         obligation provided in this agreement relating to the waiver of
         subrogation.

4.23     RELATED PARTY TRANSACTIONS

         (a)      Anything in this Agreement to the contrary notwithstanding
                  (other than as provided in Section 4.23(b) and (c)), it is
                  agreed by and among the Company and its Members that the
                  Company shall not enter into any contract, agreement or
                  transaction with any Member or Affiliate of the Company; or
                  with any individual family member (spouse, child, sibling or
                  parent) of any Member of the Company; or with any Affiliate,
                  corporation, partnership or legal entity owned (10% or more)
                  or controlled by any Member or Affiliate of the Company, or an
                  immediate family member thereof; or any individual which is a
                  shareholder or other equity interest owner in a corporation,
                  partnership or limited liability company which is a Member or
                  Affiliate, without the Majority Vote of the remaining
                  disinterested Members which shall be calculated by omitting
                  the votes attributable to the interested Member. The following
                  are non-exclusive examples of transactions covered by this
                  section and requiring consent of a majority of the
                  disinterested Members:

                  (i)      sale of the Company's real estate or movable property
                           or assets to the Members, their immediate family
                           members or related entities or Affiliates;

                  (ii)     leasing of the Company's real estate or movable
                           property or assets, or any portion thereof to or from
                           the Members, their immediate family members or
                           related entities or Affiliates;

                  (iii)    entering into contracts for the management,
                           servicing, repair or

<PAGE>

                           improvement of the Company's business, real estate,
                           movable property or other assets, or any portion
                           thereof, with the Members, or their immediate family
                           members or related entities or Affiliates.

                  (iv)     employment or professional services agreements.

         (b)      Notwithstanding the foregoing, the Members agree that LHC
                  Group, LLC, the Company's Manager, may provide operating
                  capital to the Company at its cost as provided in Section
                  4.29, and in conjunction therewith shall be authorized to
                  grant a security interest in the Company's accounts
                  receivables to any lender of such funds. Further, the Members
                  agree that LHC Group, LLC shall provide management services to
                  include payroll, billing, purchasing, accounts payable
                  processing, accounting, and similar services to the Company
                  and shall be entitled to reimbursement for its Direct Costs of
                  furnishing same. The term "Direct Costs" as used in this
                  Section 4.23 (b) shall mean all reasonable expenses incurred
                  by Manager on behalf of the Company, including Manager's
                  reasonable actual costs of personnel, equipment, supplies and
                  other expenses incurred in providing the management services,
                  including Manager's functional allocation of home office costs
                  according to Medicare principles of cost allocation for
                  payroll, salaries and benefits administration, accounts
                  payable, billing direction of home health operations, and
                  quality assurance and performance improvement, and provided
                  that such Direct Costs shall not exceed such charges as are
                  reasonable and necessary in accordance with industry standards
                  and shall, to the extent applicable, meet the criteria of any
                  applicable safe harbors. Manager's Direct Costs shall be an
                  expense of the Company.

         (c)      Notwithstanding the foregoing, the Members agree that the
                  Company may enter into the following transactions with
                  Hospitals, or their affiliates as deemed necessary for the
                  continued operations of the home health agency:

                  (i)      Lease of available office space for the home health
                           agency branch offices at fair market value for
                           operations of the Company, provided the parties
                           intend that the lease shall meet the criteria of the
                           lease-rental safe harbor to the federal laws
                           prohibiting payments for referrals; and

                  (ii)     Ancillary services agreements for the provision of
                           ancillary services to patients served by the Company
                           and necessary for the operations of the Company,
                           including, but not limited to, laboratory, pharmacy,
                           central services, maintenance, nursing, and medical
                           records services.

         (c)      In no event may the services provided or the expenses, rents
                  or other charges incurred under the foregoing provisions in
                  any related party transactions or any other transactions in
                  which the Company is involved, violate any criteria of any
                  applicable safe harbor provisions relating to federal laws
                  prohibiting payments for referrals or other regulations
                  prohibiting payments in excess of fair market value,

<PAGE>

                  to the end that all transactions in which the Company is
                  involved may comply with and not be in violation of any
                  applicable regulations.

4.24     CONTRACTS IN VIOLATION

         Any contract, agreement, or transaction entered into without the
         consent of the disinterested Members as required in Section 4.23 above
         or as otherwise permitted herein, shall be absolutely null and void and
         of no force and effect as concerns the Company and the disinterested
         Members.

4.25     NO INDEMNIFICATION

         The limitation of liability and indemnification provisions of Sections
         4.21 and 4.22 of this Agreement shall not apply to any transaction
         entered into in violation of Sections 3.3 and 4.23 above. Furthermore,
         the limitation of liability and indemnification provisions of Sections
         4.21 and 4.22 of this Agreement shall not apply to any Member if that
         Member is determined to have breached any fiduciary duty to the
         Company. In such event, the Member shall promptly reimburse to the
         Company any sums advanced under Sections 4.21 or 4.22.

4.26     MEMBERS' AND OFFICERS' COMPENSATION

         Any salaries and other compensation of the Members or Officers shall be
         fixed by the Majority vote of disinterested Members , and no Member
         shall be prevented from receiving such salary by reason of the fact
         that he is also a Member of the Company. The salary fixed by the
         Members shall not exceed reasonable compensation for the services
         rendered in accordance with industry standards and any applicable
         regulations.

4.27     TAX ELECTIONS; TAX MATTERS PARTNER.

         All elections required or permitted to be made by the Company under the
         Code shall be made by a Majority Vote of the Members. For all purposes
         permitted or required by the Code, the Members constitute and appoint
         its initial Manager as Tax Matters Partner or, if he is no longer the
         Manager, then such other Member or Manager as shall be elected by the
         Members by Majority Vote. The provisions on limitations of liability
         and indemnification of the Members set forth in Article 4 hereof shall
         be fully applicable to the Tax Matters Partner in his or her capacity
         as such. The Tax Matters Partner may resign at any time by giving
         written notice to the Company and each of the other Members. Upon the
         resignation of the Tax Matters Partner, a new Tax Matters Partner may
         be elected by Majority Vote of the Members.

4.28     INSURANCE.

         The Company, for itself and its Members as additional insureds, shall
         maintain in force and effect general commercial liability insurance
         coverage of no less than $1,000,000 per

<PAGE>

         incident and $3,000,000 in the aggregate; professional liability
         insurance of no less than: (i) $1,000,000 per incident and $3,000,000
         in the aggregate, or (ii) $100,000 per incident and $300,000 in the
         aggregate, subject to and including participation as a Qualified
         Healthcare Provider in the Louisiana Patients' Compensation Fund; and
         workers' compensation insurance in the minimum statutory amount for so
         long as this Agreement is in effect and for a term of three (3) years
         thereafter.

4.29     FINANCING.

         For the Company's benefit, LHC GROUP, LLC, as Manager, is hereby
         authorized to obtain operational financing from its credit facility,
         GMAC-RFC Health Capital or its successor, and is authorized to grant a
         security interest of up to one hundred percent (100%) of Company's
         accounts receivables to secure same, provided, however, that such
         operational financing in the aggregate shall not exceed the greater of:
         (i) $200,000 or (ii) sixty (60) days trailing net revenues without the
         Majority vote of the Members. For the purposes of this section the
         trailing net revenues shall equal the sum of the net revenues generated
         by the Company during the sixty (60) days preceding the date of the
         determination of same.

                                    ARTICLE 5

           CAPITAL CONTRIBUTIONS AND ACCOUNTS, AND ACCOUNT ALLOCATIONS

5.1      CAPITAL CONTRIBUTIONS

         (a)      Initial Capital. The Members shall each own Units in the
                  Company with their initial Interests in the Company equal to
                  the proportionate percentages as shown in the Membership
                  Schedule. The Units shall represent a participation interest
                  in the Net Profits and Net Losses of the Company and each
                  branch office as follows:

<TABLE>
                  <S>      <C>                       <C>
                  (1)      All Class A Units:        67% in the operations of the branch offices doing business as
                                                     St. Landry HomeCare; Kaplan HomeCare; Acadia-St. Landry
                                                     HomeCare; and Franklin HomeCare, and 67% in the operations of
                                                     the Company's office in Lafayette, Louisiana; and
                                                     100% of all other operations of the Company.

                  (2)      Each Class B Unit:        33% in the operations of the branch office doing business as
                                                     St. Landry HomeCare.

                  (3)      Each Class C Unit:        33% in the operations of the branch office doing business as
                                                     Kaplan HomeCare.

                  (4)      Each Class D Unit:        33% in the operations of the branch office doing
                                                     business as Acadia-St. Landry HomeCare.

                  (5)      Each Class E Unit:        33% in the operations of the branch office doing business as
                                                     Franklin HomeCare.
</TABLE>
<PAGE>

         (b)      Allocation of Profits and Losses; Equity Interests.

                  (1)      Each Company branch office shall maintain a separate
                           accounting for Profits and Losses. The parties agree
                           that the Members' Interests in income and losses of
                           the business activities conducted by the Company in
                           each branch office shall be equal to the percentages
                           calculated as of the time of the allocation by
                           dividing the Units held by each Member by the
                           aggregate Units held by all Members participating in
                           the branch office.

                  (2)      The equity interests of each Class of Units shall be
                           based upon the product of the Member's participation
                           interest in each branch office and the proportionate
                           amount of the proceeds calculated using the Net
                           Revenues of each branch office. For example, (this is
                           an illustrative example only and is not intended to
                           reflect current operations) if the proceeds of a sale
                           or merger of the Company were $1,000,000:

<TABLE>
<CAPTION>

                                            Net               Proportionate             Hospitals'
                  Branch                    Rev.      %       Proceeds                  Proceeds
                  ------                    ----     ---      ----------                ---------
         <S>      <C>                       <C>      <C>      <C>                       <C>
         i.       Lafayette                 500      42%        $420,000
         ii.      Abbeville                 100       8%        $ 80,000
         iii.     Crowley                   200      17%        $170,000
         iv.      Franklin HomeCare          50       4%        $ 40,000                 $ 13,200
         v.       St. Landry HC             200      17%        $170,000                 $ 56,100
         vi.      A-St.L HomeCare           100       8%        $ 80,000                 $ 26,400
         vii.     Kaplan HomeCare            50       4%        $ 40,000                 $ 13,200
                                            ---     ---       ----------                 --------
                                            1,200   100%      $1,000,000
</TABLE>

                           The Class A Member would receive the remainder of the
                           proceeds. In the event of the merger, consolidation
                           or sale of substantially all of the assets of the
                           Company, the Members shall receive their
                           proportionate proceeds calculated in accordance with
                           this illustration.

         (c)      Special Capital Contributions. It is anticipated that the
                  Company will from time to time require additional capital to
                  purchase or acquire additional assets or entities, or
                  interests therein, and to fund the future operations of the
                  Company. The Members will contribute to the capital of the
                  Company, according to their respective Membership Interests,
                  as set forth in Sections 5.1(b) above, cash sums equal to the
                  sums necessary to defray the costs of such operations not
                  covered by Company revenues in such amounts as are approved by
                  an unanimous vote of the Members. Following approval, should a
                  Member fail to pay its share of authorized additional capital
                  within ten (10) days of written notice from any

<PAGE>

                  Member or Manager to do so, it shall be liable to the other
                  Member or Members therefor, as provided in Section 5.1(d)
                  below; provided, however, that in lieu of the penalty set
                  forth in Section 5.1(d), upon a Majority Vote of the
                  non-defaulting Members, the defaulting Member shall be deemed
                  to have forfeited its interest in the Company to the
                  non-defaulting Member or Members who choose to advance the
                  defaulting Member's unpaid capital contribution. Written
                  notice of forfeiture shall be delivered to the defaulting
                  Member within sixty (60) days of the default in capital
                  contribution. The provisions of this Section 5.1(c) shall not
                  apply to capital calls unless such call has been approved by a
                  unanimous vote prior to a default.

         (d)      Penalty for Failure to Make Capital Contributions. Upon
                  failure of any Member to promptly remit to the Company any sum
                  due by it under the terms of this Section 5.1, and if no
                  non-defaulting Member chooses to declare a forfeiture of
                  interest under Section 5.1(c) above, then another Member may,
                  but shall not be required to, advance such sum or sums. Any
                  Member making such an advance shall be entitled to recover
                  300% of the amount of such advance from the first Distributive
                  Shares to which the other Member would have otherwise been
                  entitled as a Member of the Company in the absence of its
                  default hereunder. The provisions of this Section 5.1(d) shall
                  not apply to capital calls unless such call has been approved
                  by the unanimous consent of the Members prior to a default.

         (e)      Interest on and Return of Capital Contributions. No Member
                  shall be entitled to interest on such Member's Capital
                  Contribution or to a return of its Capital Contribution,
                  except as otherwise specifically provided for herein.

5.2      CAPITAL ACCOUNTS

         A Capital Account shall be maintained on the books of the Company for
         each Member which shall be begun, determined and maintained through the
         full term of the Company in accordance with the Capital Accounting
         rules of Treasury Regulations, and otherwise in accordance with
         generally accepted accounting principles consistently followed. A
         Member's Capital Account shall consist of his capital contributions to
         the Company:

                  (1)      Increased by his share of Company profits; and
                  (2)      Decreased by his share of Company losses and by cash
                           distributions to him.

         No Member shall withdraw any part of its Capital Account, except upon
         the approval of the Members.

5.3      DISTRIBUTIONS

         The Company's Net Profits which are in excess of the current or
         projected needs of the Company may be distributed on an interim basis
         each Calendar Quarter to the Members

<PAGE>
         in accordance with the allocations set forth in Section 5.1. Such
         payments are referred to herein as "Distributive Shares." However, no
         distribution shall be made to Members if prohibited by the Act. Such
         distributions shall be made no later than 60 days following the end of
         each Calendar Quarter. All interim quarterly distributions shall be
         reconciled annually and corrective distributions shall be made no later
         than March 31st of each year for the prior fiscal year. Amounts
         calculated for any partial quarter or annual periods shall be
         determined proportionately, but shall be subject to the annual
         reconciliation.

5.4      LOANS TO COMPANY

         To the extent approved by a Majority Vote of the Members, any Member
         may make a secured or unsecured loan to the Company.

5.5      PRIORITY AND RETURN OF CAPITAL.

         No Member shall have priority over any other Member, either as to the
         return of Capital Contributions or as to Net Profits, Net Losses or
         Distributions. This Section shall not apply to loans (as distinguished
         from Capital Contributions) which a Member has made to the Company.

5.6      MEMBERS' RIGHTS OF CONTRIBUTION.

         If for any reason, a Member sustains any liabilities or is required to
         pay any losses arising out of, or directly connected with, the Company,
         or the execution of any agreements or guarantees in connection with the
         Company's operations, which are in excess of his, her or its
         proportionate Membership Interest in the Company, the other Members
         shall promptly reimburse such Member this excess, so that each and
         every Member of the Company will then have paid his, her or its
         proportionate share of such losses to the full extent of his, her or
         its Membership Interest in the Company.

5.7      GUARANTEE.

         LHC Group, LLC as parent company of Louisiana Health Care Group, LLC,
         Company's Member, does hereby agree to guarantee all of Louisiana
         Health Care Group, LLC's obligations herein, including any obligation
         to contribute capital to the Company for losses incurred in its
         operations.

                                    ARTICLE 6

                      TRANSFER OF INTERESTS AND WITHDRAWAL

6.1      RESTRICTIONS ON TRANSFER.

         A Member may not sell or otherwise transfer the Member's Units in the
         Company except as provided in this Article. In the event that a Member
         sells or transfers, or purports or

<PAGE>

         attempts to sell or otherwise transfer, his, her or its Units except as
         provided in this Article, that Member shall be deemed to have
         involuntarily withdrawn from the Company effective on the date of the
         sale or transfer, or the purported or attempted sale or transfer. Any
         such sale or transfer, or purported or attempted transfer shall not
         have effect with respect to the Company and its Members, and any such
         transferee shall be entitled only to receive the value of the Units
         transferred in accordance with the provisions of Section 6.3. The
         transfer restrictions of this Article shall be binding on the Members,
         the Company, their heirs, legatees, legal representatives, successors,
         assigns, and transferees.

6.2      BUY-SELL OFFERS

         (a)      At any time, either Member ("Transferor Member") may offer to
                  purchase all Units of the other Member (the "Remaining
                  Member"). The Transferor Member's offer shall: (i) be in
                  writing; (ii) comply with the notice requirements herein; and
                  (iii) specify the purchase price as the value for the
                  Remaining Member's Interest in an amount not less than that
                  set forth in Section 6.5 for the Remaining Member's Interest.
                  The Transferor Member's offer to purchase shall also contain
                  an offer by the Transferor Member to sell all of the
                  Transferor Member's Units to the Remaining Member on the same
                  terms and conditions contained in the offer except that the
                  purchase price of the Member's Units shall be the value set
                  forth in Section 6.5 for the Transferor Member's Units.

         (b)      Within thirty (30) days of the date of the notice of the
                  Transferor Member's offer, the Remaining Member shall provide
                  notice to the Transferor Member of its agreement to either (i)
                  purchase the Transferor Member's Units or (ii) sell its Units
                  to the Transferor Member in accordance with the terms of the
                  offer. Regardless of which offer is accepted by the Remaining
                  Member, the transfer of Units shall be completed within ninety
                  (90) days of the date of the notice of the Transferor Member's
                  offer. Transfer shall be effected by amendment to this
                  Agreement, payment of the purchase price and execution of
                  other documents reasonably necessary to complete the transfer.
                  Payment of the purchase price shall be as set forth in Section
                  6.5.

         (c)      If the Remaining Member accepts the Transferor Member's offer
                  to purchase its Units, the Transferor Member may assign all or
                  part of the right to purchase the Remaining Member's Units to
                  others, however, the Transferor Member shall remain liable to
                  the Remaining Member, jointly and severally with all such
                  assignees, for timely completion of the transfer and payment
                  of the purchase price.

         (d)      If the Remaining Member fails to provide notice to the
                  Transferor Member as provided in Section 6.2(b), the
                  Transferor Member's offer to purchase the Membership Interest
                  of the Remaining Member shall be deemed accepted.

         (e)      In the event the transfer is not completed within ninety (90)
                  days of the date of notice of the Transferor Member's offer,
                  the Company and the non-defaulting

<PAGE>

                  Member may institute legal proceedings to enforce the
                  obligations of the defaulting Member and, if successful, the
                  defaulting Member shall be liable for all attorneys' fees and
                  costs incurred by the Company and the non-defaulting Member.

6.3      TRANSFER OF MEMBER'S INTEREST TO THIRD PARTIES.

         (a)      Notwithstanding any other provision of this Agreement to the
                  contrary, no Member may sell, assign, give, devise, pledge,
                  hypothecate, mortgage, or in any other manner transfer any
                  portion of his Units, without the prior written consent of all
                  of the other Members, and any such transfer shall be subject
                  to the provisions of this Section 6.3, provided, however, that
                  this Section shall not apply to a transfer under Section 6.2.

         (b)      If a Member desires to effect any such transfer to a third
                  party, such Member or his legal representative (the
                  "Transferor Member") shall first give written notice (the
                  "Offer Notice") to the Company and the other Members (the
                  "Remaining Members") which shall state:

                  (i)      The extent of the Units to be conveyed;
                  (ii)     The complete terms upon which the Transferor Member
                           seeks to convey the Units (such terms to be limited
                           to consideration for the Units in the form of cash
                           and/or notes receivable); and
                  (iii)    The name and address of any transferee relating to
                           such conveyance.

         (c)      Upon receipt of the Offer Notice, the Remaining Members shall
                  have the unrestricted right to (i) consent to such transfer;
                  or (ii) refuse to consent to such transfer, in which case such
                  refusal shall cause the following rights and obligations to
                  arise in the following order of priority, provided, however,
                  that this Section shall not apply to a transfer under Section
                  6.2:

         (d)      The Remaining Members shall have the option for a period of
                  thirty (30) days from receipt of the Offer Notice within which
                  to purchase the offered portion of the Transferor Member's
                  Units on the same terms and conditions set forth in the Offer
                  Notice. For the first fifteen (15) days of the thirty (30) day
                  period, each Remaining Member electing to purchase part of the
                  Transferor Member's Units shall have the primary right to
                  purchase a proportion of the Transferor Member's Units
                  calculated as the product of: the Units of the Transferor
                  Member described in the Offer Notice multiplied by a fraction,
                  the numerator of which shall consist of the purchasing
                  Remaining Member's Units and the denominator of which shall be
                  the aggregate Units of the Remaining Members electing to
                  exercise their primary right to purchase the Transferor
                  Member's Units.

         (e)      In the event that any portion of the Transferor Member's Units
                  described in the Offer Notice has not been purchased by the
                  Remaining Members at the end of the

<PAGE>

                  initial fifteen (15) day period, the remainder shall be
                  available for purchase by these Remaining Members in the
                  exercise of their secondary right. Each Remaining Member
                  electing to exercise his secondary right shall have the option
                  for a period of fifteen (15) days to purchase, on a pro-rata
                  basis, such part of the Transferor Member's Units as was not
                  elected for purchase by the Remaining Members in the exercise
                  of their primary right.

         (f)      In the event that any portion of the Transferor Member's Units
                  described in the Offer Notice has not been purchased by the
                  Remaining Members at the end of the thirty (30) day period,
                  the Company shall have the option for a period of fifteen (15)
                  days to purchase any remaining portion of the Transferor
                  Members' Units that was not purchased by the Remaining Members
                  in the exercise of either their primary or their secondary
                  rights.

         (g)      In the event that any portion of the Transferor Member's Units
                  described in the Offer Notice has not been purchased by the
                  Company at the end of the fifteen (15) day period, the
                  Transferor Member may transfer the Units on the terms
                  contained in the Offer Notice, and the consent of the Company
                  and its Members if not expressly granted shall be implied. The
                  Transferor Member shall complete the transfer within ninety
                  (90) days (or such later date as may be specified in the Offer
                  Notice) after receipt of the Offer Notice by the Remaining
                  Members, but only with such transferee and only on such terms
                  as were specified in the Offer Notice.

6.4      INVOLUNTARY TRANSFERS OF UNITS.

         (a)      Any Member shall give written notice to the Company, if such
                  Member (the "Transferor Member"): (i) is deemed to have
                  involuntarily withdrawn from the Company under the terms of
                  Section 6.12 of this Agreement; (ii) becomes the subject of a
                  proceeding under the U.S. Bankruptcy Code, or if a trustee,
                  receiver, liquidator, or other representative of the Member's
                  personal or business assets is or may be appointed; or (iii)
                  becomes insolvent or makes an assignment for the benefit of
                  the Member's creditors; or (iv) becomes involved in any other
                  proceeding or commits any other act by which such Member, or a
                  trustee, receiver, liquidator, or other representative of such
                  Member, is or may be permitted or required to acquire or
                  convey all or any portion of such Member's Units.

         (b)      The Company shall be obligated to purchase the entirety of the
                  Transferor Member's Units, which purchase shall be consummated
                  in the manner specified in this Section. The purchase price of
                  any Units purchased pursuant to this Section shall be equal to
                  the book value of the Units as of the close of the Company's
                  fiscal

<PAGE>

                  year immediately preceding the event resulting in the
                  involuntary transfer, less any negative Capital Account
                  balance of the Member. In the event the involuntary transfer
                  is occasioned prior to the end of the Company's first fiscal
                  year, the purchase price of any Units purchased pursuant to
                  this Section shall be equal to the book value of the Units as
                  of the close of business on the day on which the event causing
                  the involuntary transfer occurred, less any negative Capital
                  Account balance of the Member. The book value of the Units
                  shall be determined by the Company's public accountant, and
                  the accountant's determination when rendered shall be
                  conclusive among the Members, unless a Member disputes such
                  determination by written notice within ten (10) business days
                  of notice to such Member of such book value. In the event of
                  such dispute, the disputing Member shall have the right to
                  engage independent public accountants to make such
                  determination and the average of the two accountants'
                  determinations shall be conclusive.

         (c)      If the Company is obligated to purchase the interest of a
                  Transferor Member in the Company pursuant to the provisions of
                  this Section, the Company shall do so by giving written notice
                  to the Transferor Member, or the Transferor Member's trustee,
                  receiver, or other representative, or the appropriate court,
                  all as the case may be. Upon the giving of such notice, the
                  Company, as purchaser, and the Transferor Member, as seller,
                  shall be obligated to consummate the sale and purchase of the
                  Units, or portion thereof, at the Company offices within sixty
                  (60) days after the date of the Company's notice.

         (d)      The purchase price shall be paid by the Company with a
                  non-negotiable promissory note payable in twenty equal
                  quarterly installments, commencing ninety days after the
                  effective date of the transfer, with interest at the prime
                  rate published in the Wall Street Journal on the date of the
                  transfer without prepayment penalties. The note shall contain
                  a subordination clause subordinating the note to all other
                  debts of the Company. The note shall be unsecured, except that
                  the Company may grant a security interest securing payment of
                  the promissory note in the Units transferred if the cause of
                  the involuntary withdrawal is specified in Section 6.12 (c)
                  (ii), only. At its sole option the Company may pay all or part
                  of the purchase price in cash at the time of the transfer.

6.5      VALUATION FOR PURPOSES OF SECTIONS 6.2 & 6.12 (e). The Members agree
         that the value of the Company's Units for each class of Units for
         events described in Sections 6.2 & 6.12 (e) herein shall be equal to
         the product of: (i) FIVE HUNDRED PERCENT (500%) of the Company's
         Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA)
         realized from the Company's operations of the affected branch office(s)
         for the fiscal year ending prior to the event giving rise to the
         valuation, and (ii) for each Class of Units the percentage of
         participation in the operations of the branch office(s) as set forth in
         Section 5.1 above. The purchase price shall be paid by the transferee
         with an unsecured, non-negotiable promissory note payable in twenty
         (20) equal quarterly installments, commencing ninety days after the
         effective date of the transfer, with interest at the prime rate
         published in the Wall Street Journal on the date of the transfer
         without prepayment penalties. If the Company is the transferee, the
         note shall contain a subordination clause subordinating the note to all
         other debts of the Company. At his, her

<PAGE>

         or its sole option the transferee may pay all or part of the purchase
         price in cash at the time of the transfer.

6.6      SURVIVAL OF LIABILITIES. No sale or other transfer of an Units, even if
         it results in the substitution of the transferee or assignee as a
         Member herein, shall release the Transferor or assignor from those
         liabilities to the Company or the other Members which arose prior to
         such sale or assignment or which otherwise survive such sale or
         assignment as a matter of law.

6.7      NEGATIVE CAPITAL ACCOUNTS. If a Transferor Member has a negative
         Capital Account balance, the Transferor Member shall pay the Company
         the amount of the negative Capital Account balance as of the transfer
         date. If the Transferor Member shall fail to pay the negative Capital
         Account balance, the Company shall have the right to set-off or recoup
         any such amounts from any distributions due to, or from any amounts
         owed by the Company to, the Transferor Member, the transferee Member or
         the assignee.

6.8      LOANS AND PERSONAL GUARANTEES. Any loans owed by the Company to a
         Transferor Member shall be paid in full at closing. On or before
         closing of any transaction pursuant to this Article 6, the transferee
         Member shall also be obligated to obtain a full release of the
         Transferor Member (and the individual shareholder(s) or members of such
         Member) from all personal guarantees granted on behalf of the Company.

6.9      RIGHTS OF PERMITTED TRANSFEREES OR ASSIGNEES. A permitted transferee or
         assignee of a Member's Interest shall not become a Member without the
         Majority Vote of the Members and compliance with the provisions of
         Section 3.2 of this Agreement. Any transferee or assignee of Units in
         the Company who is not admitted to membership in the Company shall not
         be entitled to vote, and shall not be entitled to participate in the
         management of the Company, or to have access to any records or
         communications of the Company or its Members, or to participate in any
         manner in the operation of the Company. He, she or it will, however, be
         bound by and subject to this Agreement and the terms and conditions of
         any other agreement pertaining to the restrictions on the transfer of
         an Interest in the Company.

6.10     SEVERABILITY. The parties agree that each term and condition contained
         in this Article 6 shall be liberally construed to give effect to the
         parties' intent and shall be considered severable; and if, for any
         reason, any provision or provisions, or portions thereof, herein
         contained are determined to be invalid, overbroad, or unenforceable for
         any reason, such provision shall be deemed modified to the extent
         required to render it valid, enforceable and binding, and such
         determination shall not affect the validity or enforceability of any
         other provision of this Agreement. In the event any provision of this
         Article 6 is held to be unenforceable or void for any reason, the
         remainder of the provisions of this Article shall be unaffected and
         shall remain in full force and effect in accordance with its terms.

<PAGE>

6.11     SPECIFIC PERFORMANCE; ENFORCEMENT.

         (a)      In addition to any other remedies provided for herein, in the
                  event any transfer required under this Article 6 is not timely
                  completed in accordance with the terms hereof, the Company
                  and/or each non-defaulting Member may seek specific
                  performance of the obligations of the defaulting party and may
                  institute legal proceedings to enforce the obligations of the
                  defaulting party and, if successful, the defaulting party
                  shall be liable for all reasonable attorneys' fees and costs
                  incurred by the non-defaulting party.

         (b)      The Members hereby declare and agree that it is impossible to
                  measure in money damages that which will accrue to the Company
                  and its Members by reason of a failure of any Member hereto to
                  perform any of the obligations under this Article 6.
                  Therefore, if any party hereto or the personal representatives
                  of a decedent shall institute any action or proceeding to
                  enforce the provisions of this Article 6 by injunction

                  (including the granting of a temporary restraining order), any
                  Member against whom such action or proceeding is brought
                  hereby waives the claim or defense therein that such Member or
                  such personal representative has an adequate remedy at law,
                  and such Member shall not urge in any such action or
                  proceeding the claim or defense that such remedy at law
                  exists.

6.12     WITHDRAWAL OF A MEMBER

         (a)      Voluntary Withdrawal. Any Member may withdraw from the Company
                  at any time by notice to all other Members.

         (b)      Involuntary Withdrawal. Any circumstance compelling the
                  involuntary transfer of a Member's Interest, including,
                  without limitation, service of any writ of seizure applicable
                  to his Interest or adjudication of bankruptcy of a Member,
                  shall be deemed a withdrawal by the Member affected thereby
                  effective upon the service of the writ or notice of the
                  adjudication.

         (c)      Automatic Involuntary Withdrawal. In addition to the other
                  events of withdrawal contained herein, a Member shall be
                  deemed to have withdrawn from the Company effective on the
                  date on which one of the following events occurs:

                  (i)      the individual Member, or an officer, director,
                           commissioner, shareholder or other equity holder of a
                           corporate Member is convicted of a felony (unless
                           such felony is unrelated to the businesses of the
                           Company or the Members);

                  (ii)     the individual Member dies, is interdicted or
                           determined to be incompetent; or

                  (iii)    the Member materially breaches this Agreement and
                           fails to cure such breach within thirty (30) days of
                           receipt of notice of such breach;

<PAGE>
                  (iv)     the Member, or an officer, director, commissioner,
                           shareholder or other equity holder of a corporate
                           Member is excluded or debarred from participation in
                           the Medicare or Medicaid programs; or

                  (v)      the Member sells or transfers, or attempts to sell or
                           transfer of the Member's interest in the Company
                           without compliance with the provisions of this
                           Article VI.

         (d)      Withdrawal from the Company, in and of itself, shall under no
                  circumstances relieve the former Member of his, her or its
                  obligations to: (i) make any additional capital contributions
                  approved by the Members prior to the effective date of the
                  former Member's withdrawal; or (ii) to fulfill his, her or its
                  contractual obligations to the Company incurred or accrued
                  prior to the effective date of the former Member's withdrawal.
                  In either event, the Company shall have a right of set-off
                  against any distribution due to a withdrawing former Member.

         (e)      In the event of a voluntary withdrawal of a Member, if the
                  Company is continued in accordance with the provisions of
                  Section 7.1, the withdrawing Member shall have distributed to
                  him the amount specified in Section 6.5 in accordance with the
                  terms therein.

         (f)      In the event of a voluntary withdrawal of a Member, if the
                  Company is not continued in accordance with the provisions of
                  Section 7.1, the Company shall be liquidated and dissolved
                  according to the provisions of Article 7.

                                    ARTICLE 7

                           DISSOLUTION AND LIQUIDATION

7.1      DISSOLUTION

         Subject to the remaining terms of this Agreement the Company shall be
         dissolved upon the occurrence of any one of the circumstances
         hereinafter set forth:

         (1)      upon the termination of this Agreement and the failure of the
                  Members to agree upon a new Operating Agreement within ninety
                  (90) days following the effective date of the termination; or

         (2)      upon approval of the Members by an Majority vote; or

         (3)      Upon the death, interdiction, withdrawal, bankruptcy,
                  liquidation or dissolution of a Member or the occurrence of
                  any other event which terminates the continued membership of a
                  Member in the Company, however, such event shall not cause a
                  dissolution of the Company if within ninety (90) days after
                  such event, the Company is continued by the unanimous vote of
                  the remaining Members.

<PAGE>

7.2      DISSOLUTION FOR NON-COMPLIANCE WITH LAW.

         The parties hereto acknowledge and agree that the terms and conditions
         of this Agreement and the anticipated conduct of the parties hereunder
         are intended to satisfy all state and federal laws and regulations
         related to healthcare fraud and abuse and self-referral of patients,
         including, without limitation, 42 U.S.C. Section 1320-7b; 42 U.S.C.
         Section 1395nn, and La. R.S. 37:1744 and 1745. All contracts and
         compensation arrangements of the Company shall likewise comply with
         law. Manager and Company shall use their best efforts to comply with
         all laws and regulations regarding billing for services provided by the
         Company. Should any change in Louisiana or federal laws or regulations
         occur during the term of this Agreement rendering any term or provision
         of this Agreement invalid, or should the parties determine that this
         Agreement or the Members' participation in the Company result in a
         violation of any such laws or regulations, the parties agree that this
         Agreement shall be amended within thirty (30) days of such change or
         determination. If the parties are unable to agree to such modification
         or amendment during the said thirty (30) days, the parties hereby agree
         that the Company shall be dissolved as provided hereunder.

7.3      LIQUIDATION

         Upon dissolution of the Company, if the Company is not continued, the
         Members shall proceed diligently to finalize the affairs of the Company
         and distribute its assets in accordance with the provisions of Section
         7.5. During this period, the Members shall continue to operate and
         otherwise deal with Properties of the Company, consistent with the
         liquidation thereof, but shall have no further power or authority to
         bind the Company except to sell or distribute its assets and wind up
         its affairs in compliance herewith.

7.4      FINAL ACCOUNTING

         Upon dissolution of the Company, the Members shall cause the Company's
         accountant to make, at the Company's expense, a full and proper
         accounting of the assets, liabilities, operations and Capital Accounts
         of the Company as of and through the last day of the month in which the
         dissolution occurs.

7.5      LIQUIDATION DISTRIBUTIONS

         As expeditiously as possible after the dissolution of the Company, the
         Members shall cause the debts and obligations of the Company to be paid
         and discharged, including payment or offset of all obligations owed to
         Members by the Company and all obligations of Members owed to the
         Company. Thereafter, the remaining assets shall be distributed to the
         Members in amounts proportionate to the Members' Units as determined on
         the date of the distribution.

<PAGE>

7.6      RETURN OF CONTRIBUTION NONRECOURSE TO OTHER MEMBERS.

         Except as provided by law or as expressly provided in this Operating
         Agreement, upon dissolution, each Member shall look solely to the
         assets of the Company for the return of the Member's Capital Account.
         If the Company property remaining after the payment or discharge of the
         debts and liabilities of the Company is insufficient to return the
         Capital Account of one or more Members, including, without limitation,
         all or any part of that Capital Account attributable to Capital
         Contributions, then such Member or Members shall have no recourse
         against any other Member.

                                    ARTICLE 8

                                BOOKS AND RECORDS

8.1      ACCOUNTING PERIOD.

         The Company's accounting period shall be the Fiscal Year which shall
         begin on January 1st of each year.

8.2      RECORDS AND REPORTS.

         At the expense of the Company, the Company shall maintain complete and
         accurate books, records and accounts of all operations and expenditures
         of the Company. The Company shall keep at its principal place of
         business the books of the Company which shall contain a list showing
         the names and addresses of the Members as of a reasonably current date
         and the extent of their interest in the Company. Each Member, and their
         duly authorized representatives, shall have the right at reasonable
         times to access and examine, and audit at the Member's expense, if
         desired, the books of the Company, including such financial records,
         and other reasonably available records and information concerning the
         operation of the Company and to make copies thereof at the expense of
         such Members, but only upon such Member's written request. Manager
         agrees that it shall provide to each Member reasonable access to its
         records supporting the Direct Costs and other expenses charged or
         allocated to Company by Manager.

8.3      TAX RETURNS.

         The Company shall prepare and timely file all tax returns required to
         be filed by the Company pursuant to the Code and all other tax returns
         deemed necessary and required in each jurisdiction in which the Company
         does business. Copies of such returns, or pertinent information
         therefrom, shall be furnished to the Members upon request within a
         reasonable time after the end of the Company's fiscal year.

8.4      AUDIT.

         At the request of any Member, the books of the Company may be audited
         annually at the expense of the Company by an independent public
         accounting firm selected by the Manager.

<PAGE>

8.5      ANNUAL REPORTS.

         Within the following time periods after the close of each fiscal year,
         the Company shall deliver to each Member the following:

         (a)      Within one hundred twenty (120) days after the end of such
                  fiscal year, financial statements of the Company for such
                  year, including a balance sheet, a profit and loss statement,
                  a statement of Members' equity and changes in financial
                  position, such statements (i) to be prepared in accordance
                  with generally accepted accounting principles and (ii) to
                  include a summary itemization, by classification, of the
                  compensation and reimbursement paid by the Company, directly
                  or indirectly, to all Members.

         (b)      Within sixty (60) days after the close of such fiscal year, a
                  report providing such tax information as may be reasonably
                  required by each Member for federal and state income tax
                  reporting purposes.

                                    ARTICLE 9

              NON-COMPETITION, NON-SOLICITATION AND NON-DISCLOSURE

9.1      NON-COMPETITION.

         Each Member agrees that for so long as it is a Member of the Company,
         the Member shall not own, control, manage, have a business interest in,
         or be financially interested in a home health agency competing with the
         Company in providing home health services within the Service Area
         without the Majority Vote of the Members, PROVIDED, HOWEVER, that such
         restriction shall not apply to services provided in the Service Area by
         subsidiaries and Affiliates of Louisiana Health Care Group, LLC.

9.2      NON-SOLICITATION.

         Each Member agrees that for so long as it is a Member of the Company
         and for a period of one year following the transfer of its interests,
         its voluntary or involuntary withdrawal from the Company, or the
         dissolution and liquidation of the Company, the Member shall not
         directly, or through a subsidiary or affiliated company or employee
         leasing or staffing company, without the consent of the Members,
         solicit for employment or hire or employ or contract with any person to
         work for it who is or was employed by Company or Manager, during the
         term of the Member's membership, whether or not such employee is
         employed by the Company or Manager at the time of such solicitation or
         hire. This restriction shall not apply to Hospital with respect to any
         Manager or Company staff who were employed by Hospital on or before the
         Effective Date hereof. In the event a party violates this provision,
         the offending party shall pay the other stipulated damages in an

<PAGE>

         amount equal to one year of such employee's most recent salary or wages
         paid to the employee by the other party.

9.3      NON-DISCLOSURE.

         Each Member acknowledges that it will have access to certain
         confidential information, trade secrets and proprietary information
         which is exclusively the property of another Member or the Manager;
         including, without limitation, documents, recordings, photographs,
         policies, procedures, forms, patient/customer/client lists, public
         relations and employee training materials. Each party agrees that
         Manager's Service Value Points (SVP(R)) system and its Lifeline(R)
         system are proprietary trade secrets of Manager and which are subject
         to this Agreement. Each Member agrees that it will not, for so long as
         it is a Member and for a period of two (2) years following its
         voluntary or involuntary withdrawal, disclose to any third party, or
         appropriate for their own use or for the use of any third person, the
         other Member's or Manager's confidential information, trade secrets or
         proprietary information.

9.4      INJUNCTIVE RELIEF.

         Each Member acknowledges that in the event of any breach of this
         Article 9, the other parties remedies at law would be inadequate and
         therefore any affected party shall be entitled to obtain relief by
         injunction to prevent competition, solicitation or disclosure by the
         Member or Manager without the need to prove irreparable harm. The
         affected Member's or Manager's remedies, in any event, shall be
         cumulative of any and all other remedies available pursuant to
         Louisiana law.

                                   ARTICLE 10

                            MISCELLANEOUS PROVISIONS

10.1     FISCAL YEAR

         The Fiscal Year of the Company shall begin on January 1st of each year.

10.2     PARTNERSHIP TAXATION

         Neither the Company nor any Manager or Member may make an election for
         the company to be excluded from the application of the provisions of
         Subchapter K of the Code or any similar provisions of applicable state
         law. The Members intend that the Company not be a partnership or joint
         venture, and that no Member or Manager be a partner of or joint
         venturer with any other Member or Manager, for any purpose other than
         federal and state tax purposes, and this Agreement may not be construed
         to suggest otherwise. The provisions of Section 5.1(b) herein
         respecting the allocation of Units shall control the allocation of
         income, loss and tax items derived from the Company's operations.

<PAGE>

10.3     NO PARTNERSHIP INTENDED FOR NON-TAX PURPOSES.

         The Members have formed the Company under the Act, and expressly
         disavow any intention to form a joint venture, a partnership or a
         partnership in commendam (or limited partnership) under Louisiana law,
         or laws of any other state. The Members do not intend to be partners
         one to another or partners as to any third party. To the extent any
         Member, by word or action, represents to another person that any other
         Member is a partner or that the Company is a partnership, the Member
         making such wrongful representation shall be liable to any other Member
         who incurs personal liability by reason of such wrongful
         representation.

10.4     NOTICES

         All communication or notices required or permitted to be given under
         this Agreement shall be in writing, and any communication or notice
         shall be deemed to have been duly made upon receipt by mail, or by
         facsimile transmission receipt of which has been duly acknowledged to
         the Member's address as recorded in the records of the Company. Any
         written notice sent certified mail to the address of record of the
         recipient which is returned by the post office as unclaimed or
         undeliverable for any reason shall be deemed to have been received. A
         party may, by written notice so delivered to the Company, change the
         address to which communications or written notices shall be made under
         this Agreement.

10.5     AMENDMENTS

         This Agreement may be amended only in writing approved by an Majority
         Vote.

10.6     EXECUTION

         This Agreement may be executed in one or more counterparts, each of
         which shall be deemed to constitute an original, and each of which
         shall become effective when one or more counterparts have been executed
         by each of the parties hereto and delivered to the Company. The Members
         each agree to cooperate, and to execute and deliver in a timely fashion
         any and all additional documents necessary to effectuate the purposes
         of the Company and this Operating Agreement.

10.7     APPLICABLE LAW; VENUE

         This Agreement shall be governed by an construed and enforced in
         accordance with the laws of the State of Louisiana.

<PAGE>
10.8     SUCCESSORS OR ASSIGNS

         The obligations herein undertaken and the rights herein conferred shall
         be binding upon and inure to the benefit of the parties, and, where
         applicable, their successors and assigns. The Members' interests, or
         holdings of Units, in the Company shall not be affected by the sale,
         merger, consolidation or public offering of any Member or its
         successors. None of the provisions of this Operating Agreement shall be
         for the benefit of or enforceable by any creditors of the Company or by
         any Person not a party hereto. This Agreement is entered into solely to
         benefit the Company and its subscribing Members, and is not entered
         into or intended for the benefit of any third persons. The Parties
         agree that this Agreement shall not be construed as a stipulation pour
         autrui or a third party beneficiary contract.

10.9     REFERENCES

         (a)      Any reference in this Agreement to an Article, Section, or
                  Subsection shall be deemed to refer to the applicable Article,
                  Section or Subsection of this Agreement unless otherwise
                  stated herein.

         (b)      Common nouns and pronouns shall be deemed to refer to the
                  masculine, feminine, neuter, singular, and plural, as the
                  identity of the Person may in the context require.

10.10    EFFECTIVE DATE

         This Agreement is entered as of the Effective Date set forth above, but
         shall be deemed effective as of the date of the Company's filing of the
         Articles with the Louisiana Secretary of State.

10.11    CONFLICTS WITH OTHER AGREEMENTS

         (a)      In the event of any conflict between the terms of this
                  Agreement and other permitted agreements by and between the
                  parties hereto related to the purposes of the Company, this
                  Agreement shall prevail.

         (b)      The Company may acquire or enter into one or more written
                  consulting agreements or employment agreements with Members or
                  affiliates of Members. To the extent such arrangements are in
                  writing and approved or authorized by the Majority Vote of the
                  disinterested Members, and subject to Section 4.23 herein,
                  such services may be compensated as provided in said
                  agreements and shall be deemed to be separate from those
                  services which the Member will provide to the Company as a
                  capital contribution pursuant to Section 5.1(a) herein.

<PAGE>

10.12    NO ACTION FOR PARTITION.

         No Member shall have any right to maintain any action for partition
         with respect to the property of the Company.

10.13    INVALIDITY.

         The invalidity or unenforceability of any particular provision of this
         Operating Agreement shall not affect the other provisions hereof, and
         the Operating Agreement shall be construed in all respects as if such
         invalid or unenforceable provision were omitted. If any particular
         provision herein is construed to be in conflict with the provisions of
         the Act, the provisions of this Operating Agreement shall control to
         the fullest extent permitted by applicable law. Any provision found to
         be invalid or unenforceable shall not affect or invalidate the other
         provisions hereof, and this Operating Agreement shall be construed in
         all respects as if such conflicting provision were omitted.

10.14    DETERMINATION OF MATTERS NOT PROVIDED FOR IN THIS OPERATING AGREEMENT.

         The Members shall decide any questions arising with respect to the
         Company and this Operating Agreement which are not specifically or
         expressly provided for in this Operating Agreement.

10.15    HIPAA

         The HIPAA Business Associate Addendum attached hereto is made a part of
         this agreement as if copied herein in extensio.

10.16    COUNTERPARTS AND FACSIMILE SIGNATURES.

         This Agreement and any amendments or modifications thereto may be
         executed in counterparts, each of which will be deemed to be an
         original, but all of which together will constitute one and the same
         agreement. Also, the Parties acknowledge that a facsimile of this
         Agreement shall be binding and enforceable as an original and original
         signatures will be delivered to replace all facsimile signatures.

10.17    COST OF ENFORCEMENT.

         In the event that either Party shall be required to enforce the terms
         of this Agreement, the prevailing Party shall be entitled to recover
         the costs of such action, including, but not limited to, reasonable
         attorney's fees.

                            [continued on next page]
<PAGE>
10.18    SEVERABILITY.

         In the event any provision of this Agreement is held to be
         unenforceable or void for any reason, the remainder of the Agreement
         shall be unaffected and shall remain in full force and effect in
         accordance with its terms.

         THUS DONE AND SIGNED, in multiple originals, in the city of Lafayette,
Lafayette Parish, Louisiana, on the day and in the month and year first above
written.

<TABLE>
<S>                                                  <C>
LHC GROUP, LLC                                       ACADIA ST. LANDRY HOME HEALTH, INC.
Manager                                              Member

BY:      /s/ Keith G. Myers                           By:      /s/ Cliff Broussard
         -----------------------------                       -----------------------------
         Keith G. Myers, Manager                              Cliff Broussard, CEO

LOUISIANA HEALTH CARE GROUP, LLC                      LHC GROUP, LLC
Member                                                Guarantor

BY:      LHC GROUP, LLC, Manager

         BY:  /s/ Keith G. Myers                     BY:     /s/ Keith G. Myers
              ------------------------                       -------------------------------
              Keith G. Myers, Manager                        Keith G. Myers, Manager
</TABLE>

<PAGE>

10.18    SEVERABILITY.

         In the event any provision of this Agreement is held to be
         unenforceable or void for any reason, the remainder of the Agreement
         shall be unaffected and shall remain in full force and effect in
         accordance with its terms.

         THUS DONE AND SIGNED, in multiple originals, in the city of Lafayette,
Lafayette Parish, Louisiana, on the day and in the month and year first above
written.

<TABLE>
<S>                                                  <C>
LHC GROUP, LLC                                       OPELOUSAS GENERAL HEALTH SYSTEM
Manager                                              Member

BY:      /s/ Keith G. Myers                           By:      /s/ William F. Barrow
         -----------------------------                       -----------------------------
         Keith G. Myers, Manager                              William F. Barrow

LOUISIANA HEALTH CARE GROUP, LLC                      LHC GROUP, LLC
Member                                                Guarantor

BY:      LHC GROUP, LLC, Manager

         BY:  /s/ Keith G. Myers                     BY:     /s/ Keith G. Myers
              ------------------------                       -------------------------------
              Keith G. Myers, Manager                        Keith G. Myers, Manager
</TABLE>

<PAGE>

10.18    SEVERABILITY.

         In the event any provision of this Agreement is held to be
         unenforceable or void for any reason, the remainder of the Agreement
         shall be unaffected and shall remain in full force and effect in
         accordance with its terms.

         THUS DONE AND SIGNED, in multiple originals, in the city of Lafayette,
Lafayette Parish, Louisiana, on the day and in the month and year first above
written.

<TABLE>
<S>                                                  <C>
LHC GROUP, LLC                                       ABROM KAPLAN MEMORIAL HOSPITAL
Manager                                              Member

BY:      /s/ Keith G. Myers                           By:      /s/ Lyman Trahan
         -----------------------------                       -----------------------------
         Keith G. Myers, Manager                              Lyman Trahan, CEO

LOUISIANA HEALTH CARE GROUP, LLC                      LHC GROUP, LLC
Member                                                Guarantor

BY:      LHC GROUP, LLC, Manager

         BY:  /s/ Keith G. Myers                     BY:     /s/ Keith G. Myers
              ------------------------                       -------------------------------
              Keith G. Myers, Manager                        Keith G. Myers, Manager
</TABLE>

<PAGE>
                               MEMBERSHIP SCHEDULE
                            ACADIAN HOMECARE, L.L.C.
                              AS OF: APRIL 1, 2004

LOUISIANA HEALTH CARE GROUP, LLC                    96 CLASS A UNITS

OPELOUSAS GENERAL HEALTH SYSTEM                      1 CLASS B UNIT

ABROM KAPLAN MEMORIAL HOSPITAL                       1 CLASS C UNIT

ACADIA-ST. LANDRY HOME HEALTH, INC.                  1 CLASS D UNIT<PAGE>

                                                                  EXHIBIT 10(bb)

                           J. ALEXANDER'S CORPORATION
                       CASH INCENTIVE PERFORMANCE PROGRAM

PURPOSE OF THE PROGRAM.

         The Cash Incentive Performance Program ("CIPP") has been established by
J. Alexander's Corporation (the "Company") to reward executives for annual
financial and non-financial performance that results in the Company achieving
its objectives of operational excellence in the area of professional service and
providing guests with the highest quality food products available in casual
dining, while at the same time providing value and improving performance for the
Company's shareholders, by paying cash awards that are similar to incentives
paid by other casual dining restaurant companies that compete with the Company
and to promote a balance between cash and equity incentive compensation
programs.

PARTICIPATION.

         The Company's four senior executive officers and other executive
employees that the Compensation Committee of the Board of Directors of the
Company (the "Committee") believes have the most impact on improving financial
performance are eligible to receive an award pursuant to the CIPP.

ADMINISTRATION.

         All determinations, interpretations and other decisions under or with
respect to the CIPP shall be within the sole discretion of the Committee, may be
made at any time and shall be final, conclusive and binding upon all persons.
Awards will be made as soon as practicable after financial results for the
fiscal year are known. This program is not a "qualified" plan for federal income
tax purposes, and any payments are subject to applicable tax withholding
requirements.

AWARDS.

         Each participant in the CIPP is assigned an annual award target
expressed as a percentage of the participant's base salary. This annual award
target is generally determined based on the ability he or she has to influence
profitability, meet the Company's stated objectives of operational excellence
and ensure the integrity of the Company's financial statements and reputation of
the Company in the business community. In addition, the Committee has the
authority to modify the annual award target based on its assessment of the
individual's performance.

         In order to be eligible for an annual award, the participant must
exhibit compliance with the Company's policies and procedures, be committed to
the Company's mission and value standards, and uphold the Company's code of

<PAGE>

conduct at all times. If in the event the Committee determines that any of the
participants has not met these standards during the fiscal year, such
participant may not be eligible for an incentive award.

         The CIPP is designed to provide 100% of a participant's annual award
target for achieving targeted performance, 50% of a participant's annual award
target for achieving a minimum acceptable (threshold) level of performance, and
up to a maximum of 200% of a participant's annual award target for achieving
maximum performance. Payouts between the threshold and maximum amounts are
calculated by the Committee following its consideration of guidelines provided
by management. However, the Committee at its sole discretion may use its own
interpolations. No payments will be made for performance below the threshold
level, and no payments will be made in excess of 100% of a participant's base
salary. The Committee will approve the threshold, target, and maximum
performance levels at the beginning of each fiscal year, except that in the case
of the implementation year (2005), these performance levels were approved in May
of 2005.

         For 2005, the performance levels under the CIPP are based on earnings
before interest, taxes, depreciation, amortization, pre-opening costs, and any
stock option expense or "adjusted EBITDA."

NO RIGHT TO EMPLOYMENT.

         The grant of an award shall not be construed as giving a participant
the right to be retained in the employ of the Company or any subsidiary or
affiliate.

NO TRUST OR FUND CREATED.

         Neither the CIPP nor any award shall create or be construed to create a
trust or separate fund of any kind or a fiduciary relationship between the
Company or any subsidiary or affiliate and a participant or any other person. To
the extent that any person acquires a right to receive payments from the Company
or any subsidiary or affiliate pursuant to an award, such right shall be no
greater than the right of any unsecured general creditor of the Company or any
subsidiary or affiliate.

NO RIGHTS TO AWARDS.

         No person shall have any claim to be granted any award and there is no
obligation for uniformity of treatment among participants. The terms and
conditions of awards, if any, need not be the same with respect to each
participant.

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