Document:

Unassociated Document

    EXHIBIT
      10.2

    Original
      Issue Date: February 12, 2008

    

    $100,000

    

    

    14%
      SECURED DEBENTURE

    DUE
      MAY 22, 2008

    

    THIS
      DEBENTURE is one of a series of duly authorized and validly issued 14% Secured
      Debentures of Gigabeam Corporation, a Delaware corporation, (the “Company”),
      having its principal place of business at 4021 Stirrup Creek Drive, Suite 400,
      Durham, NC 27703, designated as its 14% Secured Debenture due May 22, 2008
      (this
      debenture, the “Debenture”
and,
      collectively with the other debentures of such series, the “Debentures”).

    

    FOR
      VALUE
      RECEIVED, the Company promises to pay to Midsummer Investment, Ltd. or its
      registered assigns (the “Holder”),
      or
      shall have paid pursuant to the terms hereunder, the principal sum of $100,000
      on the earlier of (i) May 22, 2008 or (ii) the date the Company receives gross
      proceeds of $2,000,000 or more, in the aggregate, in one or a series of debt
      or
      equity financings consummated after the Original Issue Date (the “Maturity
      Date”)
      or
      such earlier date as this Debenture is required or permitted to be repaid as
      provided hereunder, and to pay interest to the Holder on the aggregate and
      then
      outstanding principal amount of this Debenture in accordance with the provisions
      hereof. This Debenture is subject to the following additional
      provisions:

    

    Notwithstanding
      anything herein to the contrary, in the event of any liquidation, insolvency,
      bankruptcy, reorganization, or similar proceedings relating to the Company,
      all
      sums payable on the Senior Convertible Notes issued by the Company on January
      28, 2005 and February 1, 2005 (“Senior
      Notes”),
      shall
      first be paid in full, with interest, if any, before any cash payment is made
      upon this Debenture, and, in any such event, any cash payment which shall be
      made in respect of this Debenture shall be paid over to the holders of the
      Senior Notes for application to the payment thereof, unless and until the
      obligations under the Senior Notes (which shall mean the principal amount
      thereof an other obligations arising out of, premium, if any on, interest on,
      and any costs and expenses payable under, the Senior Notes) shall have been
      paid
      and satisfied in full.

    

    Section
      1. Definitions.
      For the
      purposes hereof, in addition to the terms defined elsewhere in this Debenture,
      (a) capitalized terms not otherwise defined herein shall have the meanings
      set
      forth in the Purchase Agreement (as defined below) and (b) the following terms
      shall have the following meanings:

    

    “Bankruptcy
      Event”
means
      any of the following events: (a) the Company or any Significant Subsidiary
      (as
      such term is defined in Rule 1-02(w) of Regulation S-X) thereof commences a
      case
      or other proceeding under any bankruptcy, reorganization, arrangement,
      adjustment of debt, relief of debtors, dissolution, insolvency or liquidation
      or
      similar law of any jurisdiction relating to the Company or any Significant
      Subsidiary thereof; (b) there is commenced against the Company or any
      Significant Subsidiary thereof any such case or proceeding that is not dismissed
      within 60 days after commencement; (c) the Company or any Significant Subsidiary
      thereof is adjudicated insolvent or bankrupt or any order of relief or other
      order approving any such case or proceeding is entered; (d) the Company or
      any
      Significant Subsidiary thereof suffers any appointment of any custodian or
      the
      like for it or any substantial part of its property that is not discharged
      or
      stayed within 60 calendar days after such appointment; (e) the Company or any
      Significant Subsidiary thereof makes a general assignment for the benefit of
      creditors; (f) the Company or any Significant Subsidiary thereof calls a meeting
      of its creditors with a view to arranging a composition, adjustment or
      restructuring of its debts; or (g) the Company or any Significant Subsidiary
      thereof, by any act or failure to act, expressly indicates its consent to,
      approval of or acquiescence in any of the foregoing or takes any corporate
      or
      other action for the purpose of effecting any of the foregoing.

    
      
        
        

      

      
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    “Business
      Day”
means
      any day except Saturday, Sunday, any day which shall be a federal legal holiday
      in the United States or any day on which banking institutions in the State
      of
      New York are authorized or required by law or other governmental action to
      close.

    

    “Change
      of Control Transaction”
means
      the occurrence after the date hereof of any of (i) an acquisition after the
      date
      hereof by an individual or legal entity or “group” (as described in Rule
      13d-5(b)(1) promulgated under the Exchange Act) of effective control (whether
      through legal or beneficial ownership of capital stock of the Company, by
      contract or otherwise) of in excess of 33% of the voting securities of the
      Company, or (ii) the Company merges into or consolidates with any other Person,
      or any Person merges into or consolidates with the Company and, after giving
      effect to such transaction, the stockholders of the Company immediately prior
      to
      such transaction own less than 66% of the aggregate voting power of the Company
      or the successor entity of such transaction, or (iii) the Company sells or
      transfers all or substantially all of its assets to another Person and the
      stockholders of the Company immediately prior to such transaction own less
      than
      66% of the aggregate voting power of the acquiring entity immediately after
      the
      transaction, or (iv) a replacement at one time or within a three year period
      of
      more than one-half of the members of the Company’s board of directors which is
      not approved by a majority of those individuals who are members of the board
      of
      directors on the date hereof (or by those individuals who are serving as members
      of the board of directors on any date whose nomination to the board of directors
      was approved by a majority of the members of the board of directors who are
      members on the date hereof), or (v) the execution by the Company of an agreement
      to which the Company is a party or by which it is bound, providing for any
      of
      the events set forth in clauses (i) through (iv) above.

    

    “Debenture
      Register”
shall
      have the meaning set forth in Section 2(b).

    
      
        
        

      

      
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    “Event
      of Default”
shall
      have the meaning set forth in Section 5.

    

    “Fundamental
      Transaction”
means
      any transaction where (A) the Company effects any merger or consolidation of
      the
      Company with or into another Person, (B) the Company effects any sale of all
      or
      substantially all of its assets in one transaction or a series of related
      transactions, (C) any tender offer or exchange offer (whether by the Company
      or
      another Person) is completed pursuant to which holders of Common Stock are
      permitted to tender or exchange their shares for other securities, cash or
      property, or (D) the Company effects any reclassification of the Common Stock
      or
      any compulsory share exchange pursuant to which the Common Stock is effectively
      converted into or exchanged for other securities, cash or property. The exchange
      offer as
      described in that certain Securities Exchange and Amendment Agreement dated
      December 31, 2007, however, shall not constitute a Fundamental Transaction
      as herein defined.

    

    “Indebtedness”
means
      (a) any liabilities for borrowed money or amounts owed in excess of $25,000
      (other than trade accounts payable incurred in the ordinary course of business),
      (b) all guaranties, endorsements and other contingent obligations in respect
      of
      indebtedness of others, whether or not the same are or should be reflected
      in
      the Company’s balance sheet (or the notes thereto), except guaranties by
      endorsement of negotiable instruments for deposit or collection or similar
      transactions in the ordinary course of business; and (c) the present value
      of
      any lease payments
      in excess of $25,000 due under leases required to be capitalized in accordance
      with GAAP.

    

    “Interest
      Payment Date”
shall
      have the meaning set forth in Section 2(a).

    

    “Late
      Fees”
shall
      have the meaning set forth in Section 2(c).

    

    “Mandatory
      Default Amount”
means
      the sum of (i) 110% of the outstanding principal amount of this Debenture,
      plus
      100% of all accrued and unpaid interest hereon and (ii) all other amounts,
      costs, expenses and liquidated damages due in respect of this
      Debenture.

    

    “New
      York Courts”
shall
      have the meaning set forth in Section 6(d).

    

    “Original
      Issue Date”
means
      the date of the first issuance of the Debentures, regardless of any transfers
      of
      any Debenture and regardless of the number of instruments which may be issued
      to
      evidence such Debentures.

    

    “Permitted
      Indebtedness”
means
      (a)
      the
      existing Indebtedness
      on
      the
      Original Issue Date (as set forth in Schedule A attached hereto and incorporated
      herein by reference), (b) lease obligations and purchase money indebtedness
      of
      up to $250,000, in the aggregate, incurred in connection with the acquisition
      of
      capital assets and lease obligations with respect to newly acquired or leased
      assets and (c) Indebtedness incurred in connection with inventory or equipment
      financing of up to $5,000,000, in the aggregate.

    
      
        
        

      

      
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    “Permitted
      Lien”
means
      the individual and collective reference to the following: (a) Liens for taxes,
      assessments and other governmental charges or levies not yet due or Liens for
      taxes, assessments and other governmental charges or levies being contested
      in
      good faith and by appropriate proceedings for which adequate reserves (in the
      good faith judgment of the management of the Company) have been established
      in
      accordance with GAAP, (b) Liens imposed by law which were incurred in the
      ordinary course of the Company’s business, such as carriers’, warehousemen’s and
      mechanics’ Liens, statutory landlords’ Liens, and other similar Liens arising in
      the ordinary course of the Company’s business, and which (x) do not individually
      or in the aggregate materially detract from the value of such property or assets
      or materially impair the use thereof in the operation of the business of the
      Company and its consolidated Subsidiaries or (y) are being contested in good
      faith by appropriate proceedings, which proceedings have the effect of
      preventing for the foreseeable future the forfeiture or sale of the property
      or
      asset subject to such Lien, (c) Liens securing the Senior Notes and those liens
      existing on the Original Issue Date and (d) Liens relating to Permitted
      Indebtedness as set forth in clause (b) thereof.

     

    “Purchase
      Agreement”
means
      the Securities Purchase Agreement, dated as of May 22, 2007, among the Company
      and the original Holders, as amended, modified or supplemented from time to
      time
      in accordance with its terms.

    

    “Senior
      Notes”
shall
      have the meaning set forth in the third paragraph hereof.

    

    “Securities
      Act”
means
      the Securities Act of 1933, as amended, and the rules and regulations
      promulgated thereunder.

    

    “Subsidiary”
shall
      have the meaning set forth in the Purchase Agreement.

    

    “Trading
      Day”
means
      a
      day on which the New York Stock Exchange is open for business.

    

    “Trading
      Market”
means
      the following markets or exchanges on which the Common Stock is listed or quoted
      for trading on the date in question: the American Stock Exchange, the Nasdaq
      Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market,
      the
      New York Stock Exchange or the OTC Bulletin Board.

    

    Section
      2. Interest.

     

    a) Payment
      of Interest.
      The
      Company shall pay interest to the Holder on the aggregate then outstanding
      principal amount of this Debenture at the rate of 14% per annum payable on
      the
      Maturity Date (the “Interest
      Payment Date”)
      (if
      the Interest Payment Date is not a Business Day, then the applicable payment
      shall be due on the next succeeding Business Day), in cash. 

    
      
        
        

      

      
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    b) Interest
      Calculations.
      Interest shall be calculated on the basis of a 360-day year, consisting of
      twelve 30 calendar day periods, and shall accrue daily commencing on the
      Original Issue Date until payment in full of the outstanding principal, together
      with all accrued and unpaid interest, liquidated damages and other amounts
      which
      may become due hereunder, has been made. Interest hereunder will be paid to
      the
      Person in whose name this Debenture is registered on the records of the Company
      regarding registration and transfers of this Debenture (the “Debenture
      Register”).
      

    

    c) Late
      Fee.
      All
      overdue accrued and unpaid interest to be paid hereunder shall entail a late
      fee
      at an interest rate equal to the lesser of 18% per annum or the maximum rate
      permitted by applicable law (“Late
      Fees”)
      which
      shall accrue daily from the date such interest is due hereunder through and
      including the date of payment in full. 

     

    d) Prepayment.
      The
      Company may prepay any portion of the principal amount of this Debenture on
      five
      Trading Days prior written notice to the Holder. 

    

    Section
      3.  Registration
      of Transfers and Exchanges.
      

     

    a) Different
      Denominations.
      This
      Debenture is exchangeable for an equal aggregate principal amount of Debentures
      of different authorized denominations, as requested by the Holder surrendering
      the same. No service charge will be payable for such registration of
      exchange.

     

    b) Investment
      Representations.
      This
      Debenture has been issued subject to certain investment representations of
      the
      original Holder set forth in the Purchase Agreement and may be transferred
      or
      exchanged only in compliance with the Purchase Agreement and applicable federal
      and state securities laws and regulations. In the event of a transfer to any
      third party, subject to the terms of the Purchase Agreement, such transfer
      shall
      be in denominations at least equal to the lesser of $250,000 principal amount
      and the principal amount of Debentures then outstanding and held by the
      Holder.

    

    c) Reliance
      on Debenture Register.
      Prior
      to due presentment for transfer to the Company of this Debenture, the Company
      and any agent of the Company may treat the Person in whose name this Debenture
      is duly registered on the records of the Company as the owner hereof for the
      purpose of receiving payment as herein provided and for all other purposes,
      whether or not this Debenture is overdue, and neither the Company nor any such
      agent shall be affected by notice to the contrary.

    

    Section
      4. Negative
      Covenants.
      As long
      as any portion of this Debenture remains outstanding, unless the holders of
      at
      least 67% in principal amount of the then outstanding Debentures shall have
      otherwise given prior written consent, the Company shall not, and shall not
      permit any of its subsidiaries (whether or not a Subsidiary on the Original
      Issue Date) to, directly or indirectly:

    
      
        
        

      

      
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    a) other
      than Permitted Indebtedness, enter into, create, incur, assume, guarantee or
      suffer to exist any indebtedness for borrowed money of any kind, including
      but
      not limited to, a guarantee, on or with respect to any of its property or assets
      now owned or hereafter acquired or any interest therein or any income or profits
      therefrom;

     

    b) other
      than Permitted Liens, enter into, create, incur, assume or suffer to exist
      any
      Liens of any kind, on or with respect to any of its property or assets now
      owned
      or hereafter acquired or any interest therein or any income or profits
      therefrom;

    

    c) amend
      its
      charter documents, including, without limitation, its certificate of
      incorporation and bylaws, in any manner that materially and adversely affects
      any rights of the Holder;

    

    d) repay,
      repurchase or offer to repay, repurchase or otherwise acquire more than a
de minimis
      number
      of shares of its Common Stock or Common Stock Equivalents other than as to
      (a)
      the Warrant Shares as permitted or required under the Transaction Documents;
      (b)
      repurchases of Common Stock or Common Stock Equivalents of departing officers
      and directors of the Company, provided that such repurchases shall not exceed
      an
      aggregate of $250,000 for all officers and directors during the term of this
      Debenture; and
      (c)
      the recapitalization as described in that certain Securities Exchange and
      Amendment Agreement dated December 31 2007;

    

    e) pay
      cash
      dividends or distributions on any equity securities of the Company other than
      dividends and distributions required to be made in respect of the Series A,
      Series B, Series C and Series D preferred shares pursuant to the terms of the
      Certificates of Designation as in effect of the date hereof;

    

    f) enter
      into any transaction with any Affiliate of the Company which would be required
      to be disclosed in any public filing with the Commission, unless such
      transaction is made on an arm’s-length basis and expressly approved by a
      majority of the disinterested directors of the Company (even if less than a
      quorum otherwise required for board approval); or

    

    g) enter
      into any agreement with respect to any of the foregoing.

     

    Section
      5. Events
      of Default.
      

    

    a) “Event
      of Default”
means,
      wherever used herein, any of the following events (whatever the reason for
      such
      event and whether such event shall be voluntary or involuntary or effected
      by
      operation of law or pursuant to any judgment, decree or order of any court,
      or
      any order, rule or regulation of any administrative or governmental
      body):

    

    i. any
      default in the payment of (A) the principal amount of any Debenture or (B)
      interest, liquidated damages and other amounts owing to a Holder on any
      Debenture, as and when the same shall become due and payable (whether on the
      Maturity Date or by acceleration or otherwise) which default, solely in the
      case
      of an interest payment or other default under clause (B) above, is not cured
      within 3 Trading Days;

    
      
        
        

      

      
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    ii. the
      Company shall fail to observe or perform any other covenant or agreement
      contained in the Debentures which failure is not cured, if possible to cure,
      within the earlier to occur
      of
(A)
      15
Trading
      Days after notice of such failure sent by the Holder or by any other
      Holder
      and (B)
      30 Trading Days after the Company has become or should have become aware of
      such
      failure;

    

    iii. a
      default
      or event of default (subject to any grace or cure period provided in the
      applicable agreement, document or instrument) shall occur for the first time
      after February 12, 2008 under (A) any of the Transaction Documents or (B) any
      other material agreement, lease, document or instrument to which the Company
      or
      any Subsidiary is obligated (and not covered by clause (vi) below);

    

    iv. any
      representation
      or warranty made in this Debenture, any other Transaction Documents, any written
      statement pursuant hereto or thereto or any other report, financial statement
      or
      certificate made or delivered to the Holder or any other Holder shall
      be
      untrue or incorrect in any material respect as of the date when made or deemed
      made;

    

    v. the
      Company or any Significant Subsidiary shall be subject to a Bankruptcy
      Event;

     

    vi. after
      February 12, 2008, the Company or any Subsidiary shall default on any of its
      obligations incurred after February 12, 2008 under any mortgage, credit
      agreement or other facility, indenture agreement, factoring agreement or other
      instrument under which there may be issued, or by which there may be secured
      or
      evidenced, any indebtedness for borrowed money or money due under any long
      term
      leasing or factoring arrangement that (a) involves an obligation greater than
      $250,000, whether such indebtedness now exists or shall hereafter be created,
      and (b) results in such indebtedness becoming or being declared due and payable
      prior to the date on which it would otherwise become due and payable;

    

    vii. the
      Common Stock shall not be eligible for listing or quotation for trading on
      a
      Trading Market and shall not be eligible to resume listing or quotation for
      trading thereon within five Trading Days;

    

    viii. the
      Company shall be a party to any Change of Control Transaction or Fundamental
      Transaction or shall agree to sell or dispose of all or in excess of 33% of
      its
      assets in one transaction or a series of related transactions (whether or not
      such sale would constitute a Change of Control Transaction); or

    
      
        
        

      

      
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    ix. any
      monetary judgment, writ or similar final process shall be entered or filed
      against the Company, any subsidiary or any of their respective property or
      other
      assets for more than $300,000, and such judgment, writ or similar final process
      shall remain unvacated, unbonded or unstayed for a period of 45 calendar
      days.

     

    b) Remedies
      Upon Event of Default.
      If any
      Event of Default occurs, the outstanding principal amount of this Debenture,
      plus accrued but unpaid interest, liquidated damages and other amounts owing
      in
      respect thereof through the date of acceleration, shall become, at the Holder’s
      election, immediately due and payable in cash at the Mandatory Default Amount.
      Commencing 5 days after the occurrence of any Event of Default that results
      in
      the eventual acceleration of this Debenture, the interest rate on this Debenture
      shall accrue at an interest rate equal to the lesser of 18% per annum or the
      maximum rate permitted under applicable law. Upon the payment in full of the
      Mandatory Default Amount, the Holder shall promptly surrender this Debenture
      to
      or as directed by the Company. In connection with such acceleration described
      herein, the Holder need not provide, and the Company hereby waives, any
      presentment, demand, protest or other notice of any kind, and the Holder may
      upon the expiration of the applicable grace period, if any, enforce any and
      all
      of its rights and remedies hereunder and all other remedies available to it
      under applicable law. Such acceleration may be rescinded and annulled by Holder
      at any time prior to payment hereunder and the Holder shall have all rights
      as a
      holder of the Debenture until such time, if any, as the Holder receives full
      payment pursuant to this Section 5(b). No such rescission or annulment shall
      affect any subsequent Event of Default or impair any right consequent
      thereon.

     

    Section
      6. Miscellaneous.
      

     

    a) Notices.
      Any and
      all notices or other communications or deliveries to be provided by the Holder
      hereunder, shall be in writing and delivered personally, by facsimile, or sent
      by a nationally recognized overnight courier service, addressed to the Company,
      at the address set forth above, or such other facsimile number or address as
      the
      Company may specify for such purpose by notice to the Holder delivered in
      accordance with this Section 6. Any and all notices or other communications
      or
      deliveries to be provided by the Company hereunder shall be in writing and
      delivered personally, by facsimile, or sent by a nationally recognized overnight
      courier service addressed to each Holder at the facsimile number or address
      of
      such Holder appearing on the books of the Company, or if no such facsimile
      number or address appears, at the principal place of business of the Holder.
      Any
      notice or other communication or deliveries hereunder shall be deemed given
      and
      effective on the earliest of (i) the date of transmission, if such notice or
      communication is delivered via facsimile at the facsimile number specified
      in
      this Section 6 prior to 5:30 p.m. (New York City time), (ii) the date
      immediately following the date of transmission, if such notice or communication
      is delivered via facsimile at the facsimile number specified in this Section
      6
      between 5:30 p.m. (New York City time) and 11:59 p.m. (New York City time)
      on
      any date, (iii) the second Business Day following the date of mailing, if sent
      by nationally recognized overnight courier service, or (iv) upon actual receipt
      by the party to whom such notice is required to be given.

     

    
      
        
        

      

      
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    b) Absolute
      Obligation.
      Except
      as expressly provided herein, no provision of this Debenture shall alter or
      impair the obligation of the Company, which is absolute and unconditional,
      to
      pay the principal of, liquidated damages and accrued interest, as applicable,
      on
      this Debenture at the time, place, and rate, and in the coin or currency, herein
      prescribed. This Debenture is a direct debt obligation of the Company. This
      Debenture ranks pari passu
      with all
      other Debentures now or hereafter issued under the terms set forth
      herein.  

     

    c) Lost
      or Mutilated Debenture.
      If this
      Debenture shall be mutilated, lost, stolen or destroyed, the Company shall
      execute and deliver, in exchange and substitution for and upon cancellation
      of a
      mutilated Debenture, or in lieu of or in substitution for a lost, stolen or
      destroyed Debenture, a new Debenture for the principal amount of this Debenture
      so mutilated, lost, stolen or destroyed, but only upon receipt of evidence
      of
      such loss, theft or destruction of such Debenture, and of the ownership hereof,
      reasonably satisfactory to the Company.

    

    d) Governing
      Law.
      All
      questions concerning the construction, validity, enforcement and interpretation
      of this Debenture shall be governed by and construed and enforced in accordance
      with the internal laws of the State of New York, without regard to the
      principles of conflict of laws thereof. Each party agrees that all legal
      proceedings concerning the interpretation, enforcement and defense of the
      transactions contemplated by any of the Transaction Documents (whether brought
      against a party hereto or its respective Affiliates, directors, officers,
      shareholders, employees or agents) shall be commenced in the state and federal
      courts sitting in the City of New York, Borough of Manhattan (the “New
      York Courts”).
      Each
      party hereto hereby irrevocably submits to the exclusive jurisdiction of the
      New
      York Courts for the adjudication of any dispute hereunder or in connection
      herewith or with any transaction contemplated hereby or discussed herein
      (including with respect to the enforcement of any of the Transaction Documents),
      and hereby irrevocably waives, and agrees not to assert in any suit, action
      or
      proceeding, any claim that it is not personally subject to the jurisdiction
      of
      such New York Courts, or such New York Courts are improper or inconvenient
      venue
      for such proceeding. Each party hereby irrevocably waives personal service
      of
      process and consents to process being served in any such suit, action or
      proceeding by mailing a copy thereof via registered or certified mail or
      overnight delivery (with evidence of delivery) to such party at the address
      in
      effect for notices to it under this Debenture and agrees that such service
      shall
      constitute good and sufficient service of process and notice thereof. Nothing
      contained herein shall be deemed to limit in any way any right to serve process
      in any other manner permitted by applicable law. Each party hereto hereby
      irrevocably waives, to the fullest extent permitted by applicable law, any
      and
      all right to trial by jury in any legal proceeding arising out of or relating
      to
      this Debenture or the transactions contemplated hereby. If either party shall
      commence an action or proceeding to enforce any provisions of this Debenture,
      then the prevailing party in such action or proceeding shall be reimbursed
      by
      the other party for its attorneys’ fees and other costs and expenses incurred in
      the investigation, preparation and prosecution of such action or
      proceeding.

    
      
        
        

      

      
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    e) Waiver.
      Any
      waiver by the Company or the Holder of a breach of any provision of this
      Debenture shall not operate as or be construed to be a waiver of any other
      breach of such provision or of any breach of any other provision of this
      Debenture. The failure of the Company or the Holder to insist upon strict
      adherence to any term of this Debenture on one or more occasions shall not
      be
      considered a waiver or deprive that party of the right thereafter to insist
      upon
      strict adherence to that term or any other term of this Debenture. Any waiver
      by
      the Company or the Holder must be in writing.

     

    f) Severability.
      If any
      provision of this Debenture is invalid, illegal or unenforceable, the balance
      of
      this Debenture shall remain in effect, and if any provision is inapplicable
      to
      any Person or circumstance, it shall nevertheless remain applicable to all
      other
      Persons and circumstances. If it shall be found that any interest or other
      amount deemed interest due hereunder violates the applicable law governing
      usury, the applicable rate of interest due hereunder shall automatically be
      lowered to equal the maximum rate of interest permitted under applicable law.
      The Company covenants (to the extent that it may lawfully do so) that it shall
      not at any time insist upon, plead, or in any manner whatsoever claim or take
      the benefit or advantage of, any stay, extension or usury law or other law
      which
      would prohibit or forgive the Company from paying all or any portion of the
      principal of or interest on this Debenture as contemplated herein, wherever
      enacted, now or at any time hereafter in force, or which may affect the
      covenants or the performance of this indenture, and the Company (to the extent
      it may lawfully do so) hereby expressly waives all benefits or advantage of
      any
      such law, and covenants that it will not, by resort to any such law, hinder,
      delay or impeded the execution of any power herein granted to the Holder, but
      will suffer and permit the execution of every such as though no such law has
      been enacted.

     

    g) Next
      Business Day.
      Whenever any payment or other obligation hereunder shall be due on a day other
      than a Business Day, such payment shall be made on the next succeeding Business
      Day.

    

    h) Headings.
      The
      headings contained herein are for convenience only, do not constitute a part
      of
      this Debenture and shall not be deemed to limit or affect any of the provisions
      hereof.

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    

    i) Assumption. 
      Any successor to the Company or any surviving entity in a Fundamental
      Transaction shall (i) assume, prior to such Fundamental Transaction, all of
      the
      obligations of the Company under this Debenture and the other Transaction
      Documents pursuant to written agreements in form and substance satisfactory
      to
      the Holder (such approval not to be unreasonably withheld or delayed) and (ii)
      issue to the Holder a new debenture of such successor entity evidenced by a
      written instrument substantially similar in form and substance to this
      Debenture, including, without limitation, having a principal amount and interest
      rate equal to the principal amount and the interest rate of this Debenture
      and
      having similar ranking to this Debenture, which shall be satisfactory to the
      Holder (any such approval not to be unreasonably withheld or delayed).  The
      provisions of this Section 6(i) shall apply similarly and equally to successive
      Fundamental Transactions and shall be applied without regard to any limitations
      of this Debenture.

    

    j) Secured
      Obligation.
      The
      obligations of the Company under this Debenture are secured by certain assets
      of
      the Company and each Subsidiary pursuant to the Security Agreement, dated as
      of
      May 22, 2007 between the Company, the Subsidiaries of the Company and the
      Secured Parties (as defined therein).

    

    *********************

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    

    IN
      WITNESS WHEREOF, the Company has caused this Debenture to be duly executed
      by a
      duly authorized officer as of the date first above indicated.

    

    

    
      	 	
              GIGABEAM
                CORPORATION

            
	 	 	 
	 	 	 
	 	
              By:
                

            	
              S.
                Jay Lawrence

            
	 	 	
              Name:
                S. Jay Lawrence

            
	 	 	
              Title:
                Chief Executive Officer

            
	 	Facsimile
              No. for delivery of Notices:
              _______________

    

    

    

    
      
        
        

      

      
        12Exhibit 10.1

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

                                 LOAN AGREEMENT

                                   dated as of

                                February 6, 2008

                                  By and Among

                            PALMETTO EXPRESS, L.L.C.
                                  (as Borrower)

                                 LHC GROUP, INC.
                                 (as Guarantor)

                                       and

                        CAPITAL ONE, NATIONAL ASSOCIATION

================================================================================
<PAGE>

                                TABLE OF CONTENTS
                                -----------------

                                                                          Page
ARTICLE 1 - DEFINITIONS AND ACCOUNTING TERMS...................................1

     1.1    Defined Terms......................................................1

     1.2    Accounting Terms...................................................5

ARTICLE 2 - TERM LOAN COMMITMENT ..............................................5

     2.1    The Term Loan Commitment ..........................................5

     2.2    Term Note..........................................................5

     2.3    Use of Proceeds....................................................6

ARTICLE 3 - CHANGE OF CIRCUMSTANCES............................................6

     3.1    Unavailability of Funds or Inadequacy of Pricing...................6

     3.2    Change in Laws.....................................................6

     3.3    Increased Cost or Reduced Return...................................6

     3.4    Breakage Costs.....................................................8

ARTICLE 4 - INTEREST RATE COMPUTATION..........................................8

     4.1    Computations.......................................................8

ARTICLE 5 - SECURITY FOR THE INDEBTEDNESS......................................9

     5.1    Security...........................................................9

ARTICLE 6 - CONDITIONS PRECEDENT...............................................9

     6.1    Precedent to All Loans.............................................9

ARTICLE 7 - REPRESENTATIONS AND WARRANTIES....................................10

     7.1    Authority.........................................................10

                                       i
<PAGE>

     7.2    Financial Statements..............................................11

     7.3    Title to Collateral...............................................11

     7.4    Litigation........................................................11

     7.5    Approvals.........................................................12

     7.6    Required Insurance................................................12

     7.7    Licenses..........................................................12

     7.8    Adverse Agreements................................................12

     7.9    Event of Default..................................................12

     7.10   Employee Benefit Plans............................................12

     7.11   Investment Company Act............................................12

     7.12   Public Utility Holding Company Act................................12

     7.13   Regulations G, T and U............................................12

     7.14   Locations of Offices, Records, Equipment and Inventory............13

     7.15   Information.......................................................13

     7.16   Environmental Matters.............................................13

     7.17   Solvency of the Borrower and the Guarantors.......................13

     7.18   Governmental Requirements.........................................13

     7.19   Survival of Representations and Warranties........................13

ARTICLE 8 - AFFIRMATIVE COVENANTS.............................................14

     8.1    Financial Statements..............................................14

     8.2    Notice of Default; Litigation, ERISA Matters......................14

     8.3    Maintenance of existence, Properties and Liens....................15

     8.4    Appraisal of Aircraft.............................................15

                                       ii
<PAGE>

     8.5    Taxes.............................................................15

     8.6    Performance of Loan Documents.....................................15

     8.7    Compliance with Environmental Laws................................15

     8.8    Further Assurances................................................16

     8.9    Financial Covenants...............................................16

     8.10   Operations........................................................17

     8.11   Change of Location................................................17

     8.12   Employee Benefit Plans............................................17

     8.13   Field Audits; Other Information...................................17

     8.14   Required Insurance................................................17

ARTICLE 9 - NEGATIVE COVENANTS................................................18

     9.1    Limitations on Fundamental Changes................................18

     9.2    Deposition of Assets..............................................18

     9.3    Restricted Payments...............................................18

     9.4    Encumbrances......................................................18

     9.5    Debts, Guaranties and Other Obligations...........................19

     9.6    Investments, Loans, and Advances..................................19

     9.7    Changes in Management and Control.................................20

     9.8    Other Agreements..................................................20

     9.9    Transactions with Affiliates......................................20

ARTICLE 10 - EVENTS OF DEFAULT................................................20

     10.1   Events of Default.................................................20

     10.2   Waivers...........................................................22

                                      iii
<PAGE>

ARTICLE 11 - MISCELLANEOUS....................................................22

     11.1   No Waiver; Modification in Writing................................22

     11.2   Payment on Non-Business Day.......................................22

     11.3   Addresses for Notices.............................................22

     11.4   Fees and Expenses.................................................23

     11.5   Intentionally Deleted.............................................23

     11.6   Waiver of Marshaling..............................................23

     11.7   Governing Law.....................................................24

     11.8   Waiver of Jury Trial; Submission to Jurisdiction..................24

     11.9   Severability......................................................24

     11.10  Headings..........................................................24

                                       iv
<PAGE>

                                 LOAN AGREEMENT
                                 --------------

THIS LOAN AGREEMENT (the "Agreement") is dated as of February 6, 2008, by and
among PALMETTO EXPRESS, L.L.C., a Louisiana limited liability company (the
"Borrower"), LHC GROUP, INC., a Delaware corporation (the "Guarantor"), and
CAPITAL ONE, NATIONAL ASSOCIATION, a national banking association (the "Bank").

                                R E C I T A L S:

         1. The Borrower has applied to the Bank for a term loan in the
principal amount of up to $5,050,000.00.

         2. The Bank, subject to the terms and conditions of this Agreement, has
agreed to make the said loan to the Borrower.

         NOW, THEREFORE, in consideration of the mutual covenants hereunder set
forth, the parties do hereby covenant and agree as follows:

                                    ARTICLE I

                        DEFINITIONS AND ACCOUNTING TERMS
                        --------------------------------

         Section 1.1. Defined Terms. As used in this Agreement, and unless the
context requires a different meaning, the following terms have the meanings
indicated:

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

         "Aircraft" shall mean that certain 1999 Cessna 560, FAA Reg. No. N1129L
         (which may be renumbered to N994HP at some time in the future),
         including all props and engines, and all equipment and avionics
         associated with said Aircraft.

         "Applicable Margin" shall mean 1.90%.

         "Bank" shall mean Capital One, National Association, a national banking
         association, and its successors and assigns.

         "Borrower" shall mean individually, interchangeably, and collectively,
         Palmetto Express, L.L.C., a Louisiana limited liability company,
         together with its successors and assigns.

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

                                       1
<PAGE>

         "Collateral" shall mean the Aircraft.

         "Collateral Documents" shall collectively refer to the Security
         Agreement, the Guaranty, and any and all other documents in which an
         Encumbrance is created on any property of the Borrower, Guarantor, or
         of any third person to secure payment of the Indebtedness of the
         Borrower or any part thereof.

         "Commitment" shall mean the Term Loan Commitment.

         "Debt" shall mean any and all amounts and/or liabilities owing from
         time to time by the Borrower to any Person, including the Bank, direct
         or indirect, liquidated or contingent, now existing or hereafter
         arising, including without limitation (i) indebtedness for borrowed
         money; (ii) the amounts of all standby and commercial letters of credit
         and bankers acceptances, matured or unmatured, issued on behalf of the
         Borrower; (iii) guaranties of the obligations of any other Person,
         whether direct or indirect, whether by agreement to purchase the
         indebtedness of any other Person or by agreement for the furnishing of
         funds to any other Person through the purchase or lease of goods,
         supplies or services (or by way of stock purchase, capital
         contribution, advance or loan) for the purpose of paying or discharging
         the indebtedness of any other Person, or otherwise; (iv) the present
         value of all obligations for the payment of rent or hire of property of
         any kind (real or personal) under leases or lease agreements required
         to be capitalized under GAAP, and (v) trade payables and operating
         leases incurred in the ordinary course of business or otherwise.

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

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

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

         "Environmental Laws" shall mean the Comprehensive Environmental
         Response, Compensation, and Liability Act of 1980, as amended, 42
         U.S.C. Section 9601, et seq. ("CERCLA"), the Superfund Amendments and
         Reauthorization Act of 1986, Pub. L. No. 99-499 ("SARA"), the Hazardous
         Materials Transportation Act, 49 U.S.C. Section 1801, et seq., the
         Resource Conservation and Recovery Act, 49 U.S.C. Section 6901, et
         seq., or other applicable Governmental Requirements or regulations
         adopted pursuant to any of the foregoing.

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

                                       2
<PAGE>

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

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

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

         "Guarantor" shall mean LHC Group, Inc., a Delaware corporation, and its
         successors and assigns.

         "Guaranty" shall collectively mean the unlimited Commercial Guaranty
         dated of even date herewith by the Guarantor in favor of Bank.

         "Indebtedness" shall mean, at any time, the indebtedness of the
         Borrower evidenced by the Note executed by the Borrower pursuant to
         this Agreement, including principal, interest, costs, expenses and
         reasonable attorneys' fees and all other fees and charges, together
         with all commitment fees and other indebtedness and costs and expenses
         for which the Borrower is responsible under this Agreement or under any
         of the Related Documents. In addition, the words " Indebtedness" also
         includes, any and all other loans, extensions of credit, obligations,
         debts and liabilities of the Borrower, plus interest thereon, that may
         now and in the future be owed to or incurred in favor of the Bank, as
         well as all claims by the Bank against the Borrower, whether existing
         now or later; whether they are voluntary or involuntary, due or to
         become due, direct or indirect or by way of assignment, determined or
         undetermined, absolute or contingent, liquidated or unliquidated;
         whether the Borrower may be liable individually or jointly with others,
         of every nature and kind whatsoever, in principal, interest, costs,
         expenses and reasonable attorneys' fees and all other fees and charges;
         whether the Borrower may be obligated as principal obligor, guarantor,
         surety, accommodation party or otherwise.

         "LIBOR Rate" shall mean the One Month London InterBank Offered Rate for
         U.S. Dollar Deposits as set and published by the British Banker's
         Association ("BBA"), as obtained by Bank from a wire that is sent
         through Bloomberg, L.P., which rate is based by the BBA on an average
         of interbank offered rates for U.S. Dollar deposits in the London
         market based on quotes from designated banks in the London market. In
         the event that the One Month LIBOR is no longer available from the BBA
         or Bloomberg, L.P., Bank shall select a comparable service to determine
         such rate and shall provide notice thereof to Borrower.

         "Loans" shall collectively mean the loan advanced under the Term Note
         and any and all other loans by Bank to Borrower pursuant to this
         Agreement.

         "Loan Documents" shall mean this Agreement, the Note, the Guaranty, the
         Collateral Documents and any other Related Documents.

                                       3
<PAGE>

         "Material Adverse Change" shall mean, with respect to the Borrower or
         Guarantor, an event which causes a material adverse effect on the
         business, assets, operations or condition (financial or otherwise) of
         such Persons taken as a whole, or which otherwise changes in a
         materially adverse way any other facts, circumstances or conditions
         which the Bank has relied upon or utilized in making its Commitment
         hereunder taken as a whole.

         "Term Loan Commitment" shall mean the agreement by the Bank to the
         Borrower to make a term loan in accordance with the provisions of
         Article II hereof.

         "Term Note" shall mean that certain promissory note of even date
         herewith, by Borrower in the principal amount of $5,050,000.00 payable
         to the order of the Bank with interest at the LIBOR Rate plus the
         Applicable Margin, together with any and all extensions, renewals,
         modifications, and substitutions therefor.

         "Note" shall mean the Term Note as the same may be renewed or extended,
         together with all other promissory note or Note given in renewal,
         substitution, or as a refinancing of any part of the indebtedness
         evidenced thereby.

         "Permitted Encumbrances" shall have the meaning ascribed to such term
         in Section 9.4 hereof.

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

         "Related Documents" shall mean and include individually, collectively,
         interchangeably and without limitation all promissory notes, credit
         agreements, loan agreements, guaranties, security agreements,
         mortgages, collateral mortgages, deeds of trust, and all other
         instruments and documents, whether now or hereafter existing, executed
         in connection with the Indebtedness.

         "Security Agreement" shall mean that certain Aircraft Security
         Agreement by Borrower in favor of the Bank, dated of even date
         herewith, affecting the Aircraft, as the same may be amended from time
         to time and in effect.

         "Solvent" shall mean, when used with respect to any Person on a
         particular day, that on such date (i) the fair value of the property of
         such Person is greater than the total amount of liabilities, including
         without limitation, contingent liabilities, of such person, (ii) the
         present fair salable value of the assets of such person is not less
         than the amount that will be required to pay the probable liability of
         such Person on its debts as they become absolute and matured, and (iii)
         such Person is able to realize upon its assets and pay its debts and
         other liabilities, contingent obligations and other commitments as they
         mature in the ordinary course of business. In computing the amount of
         contingent liabilities at any time, it is intended that such
         liabilities will be computed at the amount, which, in light of all of
         the facts and circumstances existing at such time, represents the
         amount that can be reasonably expected to become an actual or matured
         liability.

                                       4
<PAGE>

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

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

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

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

                                   ARTICLE II

                                    TERM LOAN
                                    ---------

         Section 2.1. The Term Loan Commitment. Subject to the terms and
conditions of this Agreement, the Bank agrees to make a term loan to the
Borrower in a principal amount of up to $5,050,000.00; provided, however, said
term loan will be limited to the lesser of one hundred percent (100%) of the
cost of Borrower to acquire the Aircraft and $5,050,000.00. The said term loan
will be evidenced by the Term Note.

         Section 2.2. Payment of the Term Note. The Term Note shall be payable
as follows: (i) in eighty three (83) monthly payments of principal plus interest
(based on a 15-year amoritization), commencing on March 6, 2008; and (ii) in one
final (and 84th) payment due on February 6, 2015 in the amount equal to all
outstanding principal and accrued unpaid interest. The Term Note will bear
interest at the LIBOR Rate (adjusted monthly) plus the Applicable Margin. In
addition, the Borrower and Guarantor understand that Borrower must deliver to
Bank within sixty (60) days after the date of this Agreement an appraisal of the
Aircraft acceptable to Bank. In the event the appraised value of the Aircraft is
less than the principal amount funded by Bank under the Term Note, the Borrower
is obligated to make a mandatory principal payment on the Term Note in the
amount equal to the difference between the original principal amount of the Term
Note and the said appraised value. The said mandatory payment shall be due and
payable within three (3) Business Days of Bank's demand for such payment.

                                       5
<PAGE>

         Section 2.3. Use of Proceeds. The Borrower shall use the proceeds of
the Term Loan Commitment to finance its acquisition of the Aircraft.

                                   ARTICLE III

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

         Section 3.1. Unavailability of Funds or Inadequacy of Pricing. In the
event that, in connection with the indebtedness evidenced by the Term Note, the
Bank reasonably determines, which determination shall, absent manifest error, be
final, conclusive and binding upon all parties, due to changes in circumstances
since the date hereof, adequate and fair means do not exist for determining the
LIBOR Rate or such rate will not accurately reflect the costs to the Bank of
funding such indebtedness for the affected interest period, the Bank shall give
notice of such determination to the Borrower, whereupon, until the Bank notifies
the Borrower that the circumstances giving rise to such suspension no longer
exist, the obligation of the Bank to make or continue Loans at the LIBOR Rate
shall be suspended.

         Section 3.2. Change in Laws. If at any time after the date hereof any
new law or any change in existing laws or in the interpretation by any
governmental authority, central bank, or comparable agency charged with the
administration or interpretation thereof, of any new or existing laws shall make
it unlawful for the Bank to make or continue to maintain or fund Loans hereunder
at the LIBOR Rate, then Bank shall promptly notify Borrower in writing of Bank's
obligation to make or continue Loans as LIBOR Rate Loans under this Agreement
shall be suspended until it is no longer unlawful for Bank to make or maintain
such Loans. Upon receipt of such notice, Borrower shall either repay the
outstanding Loans owed to the Bank, without penalty, on the last day of the
current interest periods (or, if Bank may not lawfully continue to maintain and
fund such Loans, immediately).

         Section 3.3. Increased Cost or Reduced Return.

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

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

                                       6
<PAGE>

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

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

and the result of any of the foregoing is to increase the cost to Bank of
making, continuing, or maintaining any Loans or to reduce any sum received or
receivable by Bank under this Agreement or its Note, then pursuant to Section
3.3(v) Borrower shall pay to Bank such amount or amounts as will compensate Bank
for such increased cost or reduction. If Bank requests compensation by Borrower
under this Section 3.3., Borrower may, by notice to Bank, suspend the obligation
of Bank to make or continue LIBOR Rate Loans, until the event or condition
giving rise to such request ceases to be in effect (in which case the provisions
of Section 4.3. shall be applicable); provided that such suspension shall not
affect the right of Bank to receive the compensation so requested.

                         (ii) If, after the date hereof, Bank shall have
determined that the adoption of any applicable law, rule, or regulation
regarding capital adequacy or any change therein or in the interpretation or
administration thereof by any governmental authority, central bank, or
comparable agency charged with the interpretation or administration thereof, or
any request or directive regarding capital adequacy (whether or not having the
force of law) of any such governmental authority, central bank, or comparable
agency, has or would have the effect of reducing the rate of return on the
capital of Bank or any corporation controlling Bank as a consequence of Bank's
obligations hereunder to a level below that which Bank or such corporation could
have achieved but for such adoption, change, request, or directive (taking into
consideration its policies with respect to capital adequacy), then from time to
time pursuant to Section 3.3(v) Borrower shall pay to Bank such additional
amount or amounts as will compensate Bank for such reduction.

                         (iii) Bank shall promptly notify Borrower of any event
of which it has knowledge, occurring after the date hereof, which will entitle
Bank to compensation pursuant to this Section 3.3. will designate a separate
lending office, if applicable, if such designation will avoid the need for, or
reduce the amount of, such compensation and will not, in the judgment of Bank,
be otherwise disadvantageous to it. If Bank claims compensation under this
Section 3.3., Bank shall simultaneously furnish to Borrower a statement setting
forth the additional amount or amounts to be paid to it hereunder which shall be
conclusive in the absence of manifest error. In determining such amount, Bank
may use any reasonable averaging and attribution methods.

                         (iv) If Bank gives notice to the Borrower pursuant to
Section 3.3. hereof, Bank shall simultaneously give to the Borrower a statement
signed by an officer of Bank setting forth in reasonable detail the basis for,
and the calculation of such additional cost, reduced payments or capital
requirements, as the case may be, and the additional amounts required to
compensate Bank therefor.

                                       7
<PAGE>

                         (v) Within fifteen (15) days after receipt by the
Borrower of any notice referred to in Section 3.3., the Borrower shall pay to
Bank such additional amounts as are required to compensate Bank for the
increased cost, reduce payments or increase capital requirements identified
therein, as the case may be; provided, that the Borrower shall not be obligated
to compensate Bank for any increased costs, reduced payments or increased
capital requirements to the extent that Bank incurs the same prior to a date six
(6) months before Bank gives the required notice.

         Section 3.4. Breakage Costs. Without duplication under any other
provision hereof, if Bank incurs any actual loss, cost or expense (including,
without limitation, any loss of profit and loss, cost, expense or premium
reasonably incurred by reason of the liquidation or re-employment of deposits or
other funds acquired by Bank to fund or maintain any LIBOR Rate Loan or the
relending or reinvesting of such deposits or amounts paid or prepaid to Bank as
a result of any of the following events other than any such occurrence as a
result in the change of circumstances described in Sections 3.1. and 3.2.:

                         (i) any payment, prepayment or conversion of a LIBOR
                  Rate Loan on a date other than the last day of a month
                  (whether by acceleration, prepayment or otherwise);

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

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

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

                                   ARTICLE IV

                            INTEREST RATE COMPUTATION
                            -------------------------

         Section 4.1. Computations. All computations of interest on the Loans
bearing interest at the LIBOR Rate plus the Applicable Margin shall be assessed
based on the actual number of days elapsed over a year composed of 360 days.
Whenever a payment hereunder or under any of the other Related Documents becomes
due on a day that is not a Business Day, the due date for such payment shall be
extended to the next succeeding Business Day, and interest shall accrue during
such extension. The outstanding amount of the Loans as reflected on the Bank's
books and records from time to time shall be prima facie evidence of the amounts
so outstanding.

                                       8
<PAGE>

                                    ARTICLE V

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

         Section 5.1. Security. The Indebtedness shall be secured by the
Security Agreement (and the financing statement associated therewith). The
Borrower acknowledges that the Security Agreement constitutes a first priority
security interest affecting the Aircraft in favor of the Bank. In addition, the
Guarantor acknowledges that the Indebtedness is solidarily guaranteed by the
Guarantor pursuant to the Guaranty.

                                   ARTICLE VI

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

         Section 6.1. Precedent to All Loans. The obligation of the Bank to make
any Loan hereunder shall be subject to the satisfaction and the continued
satisfaction of the following conditions precedent:

         (a)   The Borrower shall have executed and delivered to the Bank this
Agreement, the Term Note, the Security Agreement, and all other documents
required by this Agreement, all in form and substance and in such number of
counterparts as may be required by the Bank;

         (b)   The Guarantor shall have executed and delivered to the Bank this
Agreement and the Guaranty;

         (c)   The representations, warranties, and covenants of the Borrower
and the Guarantor as set forth in this Agreement, or in any Related Document
furnished to the Bank in connection herewith, shall be and remain true and
correct in all material respects;

         (d)   If requested by Bank, the Bank shall have received a favorable
legal opinion of counsel to the Borrower and the Guarantor, in form, scope and
substance satisfactory to the Bank;

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

                                       9
<PAGE>

         (f)   The Bank shall have received all fees, charges and expenses
(including the payment of its reasonable out of pocket outside counsel's fees
and expenses) which are due and payable as specified in this Agreement and any
Related Documents;

         (g)   No Event of Default shall exist or shall result from the making
of a Loan;

         (h)   The Borrower and the Guarantor shall have provided the Bank with
all financial statements, reports and certificates required by this Agreement;

         (i)   The Bank shall have received the articles of organization and
operating agreement, as amended, of the Borrower, and the articles of
incorporation and by-laws, as amended, of the Guarantor, and the Bank's counsel
shall have reviewed the foregoing documents and be satisfied with the validity,
due authorization and enforceability thereof and of all Related Documents;

         (j)   The Bank shall have received evidence acceptable to the Bank and
its counsel that its Encumbrances affecting the Collateral shall have a first
priority position, subject only to Permitted Encumbrances;

         (k)   There shall have occurred no Material Adverse Change with respect
to the Borrower;

         (l)   The Bank's due diligence and review of all financial information
provided by the Borrower and the Guarantor,

         (m)   The Borrower shall obtain insurance on the Aircraft acceptable to
the Bank, naming Bank as additional insured and/or loss payee, and delivered to
Bank evidence of such insurance coverages; and

         (n)   The Bank shall have received a satisfactory inspection of the
Aircraft.

         The Bank reserves the right, in its sole discretion, to waive any one
or more of the foregoing conditions precedent.

                                   ARTICLE VII

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

         The Borrower and the Guarantor represent and warrant to the Bank as
follows:

         Section 7.1. Authority. The Borrower is a limited liability company
duly created, validly existing and in good standing under the laws of Louisiana,
and is duly qualified and in good standing as a foreign limited liability
company in all other jurisdictions where the failure to qualify would have a

                                       10
<PAGE>

material adverse effect upon its ability to perform its obligations under this
Agreement and all Related Documents. The Borrower has the power to enter into
this Agreement, execute the Note, Security Agreement and grant the liens and
security interests in the Collateral in the manner and for the purpose
contemplated by the Collateral Documents. The Borrower has the power to perform
its obligations hereunder and under the Related Documents. The making and
performance by the Borrower of the Related Documents have all been duly
authorized by all necessary action (including all necessary action by its
members), and do not and will not violate any provision of any law, rule,
regulation, order, writ, judgment, decree, determination or award presently in
effect having applicability to the Borrower or the articles of organization
and/or operating agreement of the Borrower. The Guarantor is a corporation duly
created, validly existing, and in good standing under the laws of Delaware, and
is duly qualified and in good standing as a foreign corporation in Louisiana.
The Guarantor has the power to enter into this Agreement and the Guaranty. The
making and performance by the Guarantor have been authorized by all necessary
corporate action (including all necessary shareholder action) by Guarantor, and
do not and will not violate any provision of any law, rule, regulation, order,
writ, judgment, decree, determination or award presently in effect having
applicability to Guarantor or the articles of incorporation and/or by-laws of
Guarantor. The making and performance by each of the Borrower and Guarantor of
the Related Documents to which it is a party do not and will not result in a
breach of or constitute a default under any indenture or loan or credit
agreement or any other agreement or instrument to which the Borrower is a party
or by which it may be bound or affected, or result in, or require, the creation
or imposition of any mortgage, deed of trust, pledge, lien, security interest or
other charge or encumbrance of any nature (other than as contemplated by the
Related Documents) upon or with respect to any of the properties now owned or
hereafter acquired by the Borrower or the Guarantor, and the Borrower and
Guarantor are not in default under or in violation of any such order, writ,
judgment, decree, determination, award, indenture, agreement or instrument. Each
of the Related Documents to which the Borrower or Guarantor is a party
constitutes a legal, valid and binding obligations of such party, enforceable in
accordance with its terms.

         Section 7.2. Financial Statements. The balance sheet of the Borrower
and Guarantor at the date thereof, and the related statements of income and
retained earnings for the year then ended, copies of which have been delivered
to the Bank, are complete and correct and fairly present the financial condition
of such entities as of the date or dates thereof. Each of said financial
statements were prepared in conformity with GAAP. No Material Adverse Change has
occurred since said dates in the financial position or in the results of
operations of the Borrower and/or the Guarantor in its/their business taken as a
whole.

         Section 7.3. Title to Collateral. The Borrower has good and marketable
title to the Collateral affected by the Security Agreement, free and clear of
all Encumbrances other than Permitted Encumbrances. The Collateral Documents
constitute legal, valid and perfected first Encumbrances on the property
interests covered thereby, subject only to Permitted Encumbrances.

         Section 7.4. Litigation. Other than as has been disclosed previously to
the Bank in writing, there are no known legal actions, suits or proceedings
pending or threatened against or affecting the Borrower, the Guarantor, or any
of their properties before any court or administrative agency (federal, state or
local), which, if determined adversely to any of the Borrower or the Guarantor
would constitute a Material Adverse Change taken as a whole, and there are no
judgments or decrees affecting the Borrower, the Guarantor or its/their property
(including, without limitation, the Collateral) which are or may become an
Encumbrance against such property.

                                       11
<PAGE>

         Section 7.5. Approvals. No authorization, consent, approval or formal
exemption of, nor any filing or registration with, any governmental body or
regulatory authority (federal, state or local), and no vote, consent or approval
of the members of the Borrower is or will be required in connection with the
execution and delivery by the Borrower and/or Guarantor of the Related Documents
or the performance by the Borrower and/or Guarantor of its obligations hereunder
and under the other Related Documents other than those made, taken or obtained.

         Section 7.6. Required Insurance. The Borrower maintains and will
maintain insurance with insurance companies in such amounts and against such
risks as is usually carried by owners of similar business and properties in the
same general areas in which it operates, and in any event the Borrower shall
maintain insurance on the Aircraft as required by the Security Agreement.

         Section 7.7. Licenses. The Borrower possesses adequate franchises,
licenses and permits to own its properties and to carry on its business as
presently conducted.

         Section 7.8. Adverse Agreements. The Borrower and the Guarantor are not
in default in the performance, observance or fulfillment of any of the
obligations, covenants or conditions contained in any agreement or instrument to
which they are a party, which default would constitute a Material Adverse
Change.

         Section 7.9. Event of Default. No Event of Default hereunder has
occurred or is continuing or will occur as a result of the giving effect hereto.

         Section 7.10. Employee Benefit Plans. Each employee benefit plan as to
which the Borrower and/or the Guarantor may have any liability complies in all
material respects with all applicable requirements of law and regulations, and
(i) no Reportable Event (as defined in ERISA) has occurred with respect to any
such plan, (ii) the Borrower and Guarantor have not withdrawn from any such plan
or initiated steps to do so, and (iii) no steps have been taken to terminate any
such plan.

         Section 7.11. Investment Company Act. The Borrower is not an
"investment company" or a company "controlled" by an "investment company,"
within the meaning of the Investment Company Act of 1940, as amended.

         Section 7.12. Public Utility Holding Company Act. The Borrower is not a
"holding company," or a "subsidiary company" of a "holding company," within the
meaning of the Public Utility Holding Company Act of 1935, as amended.

         Section 7.13. Regulations G, T and U. The Borrower is not engaged
principally, or as one of its important activities, in the business of extending
credit for the purpose of purchasing or carrying margin stock (within the
meaning of Regulations G, T and U of the Board of Governors of the Federal
Reserve System), and none of the proceeds of the Loans will be used for the
purpose of purchasing or carrying such margin stock.

                                       12
<PAGE>

         Section 7.14. Location of Offices, Records, Equipment and Inventory.
The chief place of business of the Borrower and the office where the Borrower
keeps its records concerning the Collateral is 420 West Pinhook Road, Suite A,
Lafayette, Louisiana 70503.

         Section 7.15. Information. All information heretofore or
contemporaneously herewith furnished by the Borrower and the Guarantor to the
Bank for the purposes of or in connection with this Agreement or any transaction
contemplated hereby is, to Borrower's and such Guarantor's knowledge, and all
information hereafter furnished by or on behalf of the Borrower and the
Guarantor to the Bank will be, to Borrower's and Guarantor's knowledge, true and
accurate in every material respect on the date as of which such information is
dated or certified; and none of such information is or will be incomplete by
omitting to state any material fact necessary to make such information not
misleading.

         Section 7.16. Environmental Matters. Except as disclosed in writing to
the Bank prior to the date hereof, to Borrower's knowledge no properties of the
Borrower has ever been, nor will ever be so long as this Agreement remains in
effect, used for the generation, manufacture, storage, treatment, disposal,
release or threatened release of any hazardous waste or substance, as those
terms are defined in the Environmental Laws, except in compliance with such
Environmental Laws. Except as disclosed in writing by the Borrower to the Bank
prior to the date hereof, the Borrower represents and warrants that, to its
knowledge, it is in material compliance with all Environmental Laws affecting it
and its properties.

         Section 7.17. Solvency of the Borrower and the Guarantor. The Borrower
and Guarantor are, and after consummation of the transactions contemplated by
this Agreement (including the making of the Loans), and after giving effect to
all obligations incurred by the Borrower and the Guarantor in connection
herewith, will be, Solvent.

         Section 7.18. Governmental Requirements. The Aircraft is in compliance
with all current governmental requirements affecting in any material respect the
Borrower's property and assets.

         Section 7.19. Survival of Representations and Warranties. The Borrower
and Guarantor understand and agree that the Bank is relying upon the above
representations and warranties in making the Loans to the Borrower. The Borrower
and Guarantor further agree that the foregoing representations and warranties
shall be continuing in nature and shall remain in full force and effect until
such time as the Indebtedness shall be paid in full, or until this Agreement
shall be terminated, whichever is the last to occur.

                                       13
<PAGE>

                                  ARTICLE VIII

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

         In addition to the covenants contained in the Collateral Documents,
which covenants are hereby ratified and confirmed by the Borrower (and the
Guarantor as to the Guaranty), the Borrower and the Guarantor, as set forth
below, covenant and agree as follows:

         Section 8.1. Financial Statements. The Borrower and the Guarantor, as
set forth below, will furnish or cause to be furnished to the Bank:

         (a)      as soon as available and in any event within one hundred
                  twenty (120) days following the close of each fiscal year of
                  Guarantor, Guarantor shall deliver to Bank unqualified and
                  audited financial statements of Guarantor consisting of a
                  balance sheet as at the end of such fiscal year and statements
                  of income, and statement of cash flow for such fiscal year,
                  setting forth in each case in comparative form the
                  corresponding figures for the preceding fiscal year, certified
                  by independent certified public accountants of recognized
                  standing reasonably acceptable to the Bank;

         (b)      as soon as available and in any event within sixty (60) days
                  following the end of each quarter, Guarantor shall deliver to
                  Bank internally-prepared financial statements consisting of
                  the balance sheet of Guarantor as of the end of such quarter,
                  and a statement of income and statement of cash flow of
                  Guarantor for such quarter, all certified as materially true
                  and correct by the chief financial officer of Guarantor as
                  having been prepared in accordance with GAAP consistently
                  applied;

         (c)      the Guarantor shall deliver to Bank within sixty (60) days
                  following the end of each quarter, a compliance certificate
                  (form attached as Exhibit A), certified as materially true and
                  correct by the chief financial officer of the Guarantor; and

         (d)      such other necessary financial information concerning the
                  Borrower and the Guarantor as the Bank may reasonably request
                  from time to time.

         The requirements of subparts (a) and (b) above are to be fulfilled by
delivery by Guarantor to Bank of Guarantor's annual 10K reports and quarterly
10q reports.

         Section 8.2. Notice of Default; Litigation; ERISA Matters. The Borrower
will give written notice to the Bank as soon as reasonably possible and in no
event more than five (5) Business Days of (i) the occurrence of any Event of
Default hereunder of which it has knowledge or should have knowledge, (ii) the
filing of any actions, suits or proceedings against the Borrower and/or
Guarantor in any court or before any governmental authority or tribunal of which
they have knowledge or should have knowledge which could cause a Material
Adverse Change with respect to the Borrower and/or the Guarantor taken as a
whole, (iii) the occurrence of a reportable event under, or the institution of
steps by the Borrower or Guarantor to withdraw from, or the institution of any
steps to terminate, any employee benefit plan as to which the Borrower or
Guarantor may have liability, or (iv) the occurrence of any other action, event
or condition of any nature of which they have knowledge which may cause, or lead
to, or result in, any Material Adverse Change to the Borrower and the Guarantor
taken as a whole.

                                       14
<PAGE>

         Section 8.3. Maintenance of Existence, Properties and Liens. The
Borrower and Guarantor will each (i) continue to engage in the business
presently being operated by it; (ii) maintain its existence and good standing in
each jurisdiction in which it is required to be qualified; (iii) keep and
maintain all franchises, licenses and properties necessary in the conduct of its
business in good order and condition; and (iv) duly observe and conform to all
material requirements of any governmental authorities relative to the conduct of
its business or the operation of its properties or assets. In addition, the
Borrower shall maintain in favor of the Bank a first perfected lien and security
interest in the Collateral, subject only to Permitted Encumbrances.

         Section 8.4. Appraisal of Aircraft. The Borrower covenants and agrees
that it shall deliver an appraisal of the Aircraft to Bank within sixty (60)
days after the date of this Agreement.

         Section 8.5. Taxes. Each of the Borrower and the Guarantor shall pay or
cause to be paid when due, all taxes, local and special assessments, and
governmental and other charges of every type and description, that may from time
to time be imposed, assessed and levied against it or its properties. The
Borrower and the Guarantor further agree to furnish the Bank with evidence that
such taxes, assessments, and governmental and other charges due by the Borrower
or the Guarantor, as the case may be, have been paid in full and in a timely
manner. The Borrower or the Guarantor, as the case may be, may withhold any such
payment or elect to contest any lien if the Borrower or the Guarantor, as the
case may be, are in good faith conducting an appropriate proceeding to contest
the obligation to pay and so long as the Bank's interest in the Collateral is
not jeopardized.

         Section 8.6. Performance of Loan Documents. The Borrower and the
Guarantor shall duly and punctually pay and perform each of its respective
obligations under the Note, under this Agreement (as the same may at any time be
amended or modified and in effect) and under each of the Related Documents to
which it is a party, in accordance with the terms hereof and thereof.

         Section 8.7. Compliance with Environmental Laws. The Borrower shall
comply with and shall cause all of its employees, agents, invitees or sublessees
to comply with all Environmental Laws. The Borrower shall give notice to the
Bank as soon as reasonably possible and in no event more than five (5) Business
Days after it receives any compliance orders, environmental citations, or other
notices from any governmental entity relating to any environmental condition
relating to its properties or elsewhere for which it may have legal
responsibility with a full description thereof; the Borrower agrees to take any
and all reasonable steps, and to perform any and all reasonable actions
necessary or appropriate to promptly comply with any such citations, compliance
orders or Environmental Laws requiring the Borrower to remove, treat or dispose
of such hazardous materials, wastes or conditions at the sole expense of the
Borrower, to provide the Bank with satisfactory evidence of such compliance;
provided, however, that nothing contained herein shall preclude the Borrower
from contesting any such compliance orders or citations if such contest is made
in good faith, appropriate reserves are established for the payment for the cost
of compliance therewith, and the Bank's security interest in any such property
affected thereby (or the priority thereof) is not jeopardized.

                                       15
<PAGE>

         Regardless of whether any Event of Default hereunder shall have
occurred and be continuing, the Borrower (i) releases and waives any present or
future claims against the Bank for indemnity or contribution in the event the
Borrower becomes liable for remediation costs under any Environmental Laws, and
(ii) agrees to defend, indemnify and hold harmless the Bank from any and all
liabilities (including strict liability), actions, demands, penalties, losses,
costs or expenses (including, without limitation, reasonable attorneys fees and
remedial costs), suits, administrative orders, agency demand letters, costs of
any settlement or judgment and claims of any and every kind whatsoever which may
now or in the future (whether before or after the termination of this Agreement)
be paid, incurred, or suffered by, or asserted against the Bank by any person or
entity or governmental agency for, with respect to, or as a direct or indirect
result of, the presence on or under, or the escape, seepage, leakage, spillage,
discharge, emission, or release from or onto the property of the Borrower of any
hazardous materials, wastes or conditions regulated by any Environmental Laws,
contamination resulting therefrom, or arising out of, or resulting from, the
environmental condition of such property or the applicability of any
Environmental Laws relating to hazardous materials (including, without
limitation, CERCLA or any so called federal, state or local "super fund" or
"super lien" laws, statute, ordinance, code, rule, regulation, order or decree)
regardless of whether or not caused by or within the control of the Bank (the
costs and/or liabilities described in (i) and (ii) above being hereinafter
referred to as the "Liabilities"). The covenants and indemnities contained in
this Section 8.7 shall survive termination of this Agreement.

         Section 8.8. Further Assurances. The Borrower and the Guarantor will,
at any time and from time to time, execute and deliver such further instruments
and take such further action as may reasonably be requested by the Bank, in
order to cure any defects in the execution and delivery of, or to comply with or
accomplish the covenants and agreements contained in this Agreement or the
Collateral Documents.

         Section 8.9. Financial Covenants. The Guarantor shall comply with the
following covenants and ratios:

         (a)      Minimum Fixed Charge Coverage. The Guarantor shall maintain at
                  all times a fixed charge coverage ratio of not less than 1.5
                  to 1.00. The ratio shall be calculated as follows: EBITDA plus
                  lease/rent expense minus unfinanced capital expenditures
                  divided by prior period current maturities of long-term debt
                  plus interest expense plus lease/rent expense plus cash taxes.
                  This covenant will be tested quarterly by Bank on a rolling
                  four-quarters basis, commencing June 30, 2008.

         (b)      Total Liabilities to Tangible Net Worth. The Guarantor shall
                  maintain at all times a ratio of Total Liabilities to Tangible
                  Net Worth of not more than 1.50 to 1.00. This covenant will be
                  tested by Bank on a quarterly basis, commencing June 30, 2008.

                                       16
<PAGE>

         (c)      Maximum Senior Debt to EBITDA. The Guarantor shall maintain at
                  all times a senior debt to EBITDA ratio of not more than 2.50
                  to 1.00. This ratio will be calculated as follows: EBITDA
                  divided by prior period current maturities of long term debt
                  due to Bank plus interest expense. This covenant will be
                  tested by Bank quarterly on a rolling four quarters basis
                  commencing June 30, 2008.

         (d)      Working Capital Ratio. The Guarantor shall maintain at all
                  times a working capital ratio of not less than 2.00 to 1.00.
                  This covenant will be calculated as follows: Guarantor's
                  current assets divided by Guarantor's current liabilities plus
                  the existing outstanding balance under Guarantor's senior
                  revolving line of credit with Bank, all as determined in
                  accordance with GAAP. This covenant will be tested quarterly
                  by Bank commencing June 30, 2008.

         Section 8.10. Operations. The Borrower and the Guarantor shall conduct
their business affairs in a reasonable and prudent manner and in compliance in
all material respects with all applicable federal, state and municipal laws,
ordinances, rules and regulations respecting their properties, charters,
businesses and operations, including compliance with all minimum funding
standards and other requirements of ERISA of 1974, and other laws applicable to
any employee benefit plans which they may have.

         Section 8.11. Change of Location. The Borrower shall, within ten (10)
Business Days prior to any such addition or change, notify the Bank in writing
of any proposed additions to or changes in the location of its businesses.

         Section 8.12. Employee Benefit Plans. So long as this Agreement remains
in effect, the Borrower and Guarantor will maintain each employee benefit plan
as to which it may have any liability, in compliance with all applicable
requirements of law and regulations

         Section 8.13. Field Audits; Other Information. The Borrower shall allow
the Bank's employees and agents, upon the Bank's providing advance written
notice thereof, access to its books and records and properties during normal
business hours to perform field audits on a periodic basis and subject to such
employees and agents agreeing in writing to maintain information obtained by
them in connection therewith confidential (the terms of said agreement to be
acceptable to Bank), but not more frequently than once per year unless requested
due to the occurrence of an Event of Default. The Borrower shall pay all
reasonable costs and expenses associated with such field audits. The Borrower
will provide the Bank with such other information as the Bank may reasonably
request from time to time.

         Section 8.14. Required Insurance. The Borrower shall maintain insurance
covering Borrower with insurance companies in such amounts and against such
risks as is usually carried by owners of similar businesses and properties in
the same general areas in which each of them operates, and in each case with the
Bank named as the loss payee and/or additional insured, as appropriate. The

                                       17
<PAGE>

Borrower agrees to provide the Bank with originals or certified copies of such
policies of insurance. The Borrower further agrees to promptly furnish the Bank
with copies of all renewal notices and, if requested by the Bank, with copies of
receipts for paid premium. The Borrower shall provide the Bank with originals or
certified copies of all renewal or replacement policies of insurance no later
than fifteen (15) days before any such existing policy or policies should
expire. If the Borrower's insurance policies required hereunder and renewals
thereof are held by another person, the Borrower agrees to supply original or
certified copies of the same to the Bank within the time periods required above.

                                   ARTICLE IX

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

         In addition to the negative covenants contained in the Collateral
Documents, which covenants are hereby ratified and confirmed by the Borrower,
the Borrower and the Guarantor (as set forth below) covenant and agree as
follows:

         Section 9.1. Limitations on Fundamental Changes. The Borrower shall not
change its line of business, or form any subsidiary without the prior written
consent of the Bank, nor shall the Borrower enter into any transaction of merger
or consolidation, or liquidate or dissolve itself (or suffer any liquidation or
dissolution).

         Section 9.2. Disposition of Assets. the Borrower shall not convey,
sell, lease, assign, transfer or otherwise dispose of, any of its property,
business or assets (whether now owned or hereafter acquired) other than in the
ordinary course of business without the prior written consent of the Bank.

         Section 9.3. Restricted Payments. Excluding distributions for tax
purposes to the members of Borrower, the Borrower shall not declare or pay (or
set aside reserves for payment of) any dividends or distributions, make any
shareholder, member, or affiliate loans, or pay excessive compensation or enter
into any similar transactions with its members, managers, and/or, officers.

         Section 9.4. Encumbrances. The Borrower shall not create, incur, assume
or permit to exist any Encumbrances superior to Bank's Encumbrances on any of
its property now owned or hereafter acquired, except for those Encumbrances
currently existing and of record as listed on Schedule 9.4 attached hereto and
the following (hereinafter referred to as the "Permitted Encumbrances"):

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

                                       18
<PAGE>

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

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

         (d)      The Collateral Documents and any other liens in favor of the
                  Bank to secure the Indebtedness of the Borrower to the Bank;
                  and

         (e)      Encumbrances in favor of GMAC Commercial Finance LLC (and its
                  assigns, and any replacement senior lender) on all assets of
                  the Borrower excluding the Aircraft.

                  Section 9.5. Debts, Guaranties and Other Obligations. The
         Borrower will not incur, create, assume or in any manner become or be
         liable in respect of any Debt (during a 12-month period), direct or
         contingent, except for:

         (a)      The Indebtedness to the Bank under this Agreement;

         (b)      Trade payables or operating and facility leases from time to
                  time incurred in the ordinary course of business; and

         (c)      Taxes, assessments or other government charges which are not
                  yet due or are being contested in good faith by appropriate
                  action promptly initiated and diligently conducted, if such
                  reserve as shall be required by generally accepted accounting
                  principles shall have been made therefore; and

         (d)      All existing indebtedness in favor of GMAC Commercial Finance
                  LLC (and its assigns, and any replacement senior lender) and
                  as listed in Schedule 9.5 attached hereto.

                  Section 9.6. Investments, Loans and Advances. The Borrower and
         the Guarantor will not make or permit to remain outstanding any loans
         or advances to or investments in any Person, except for:

         (a)      Investments in direct obligations of the United States of
                  America or any agency thereof;

         (b)      Investments in either certificates of deposit of maturities
                  less than one year, issued by the Bank, or if the Bank is not
                  substantially competitive (in terms of certificate of deposit
                  interest rate for comparable amounts) with other banks (having
                  a credit rating acceptable to the Bank) certificates of
                  deposit of maturities less than one year, issued by one or
                  more of such other banks;

                                       19
<PAGE>

         (c)      Investments in commercial paper of maturities less than one
                  year with the best rating by Standard & Poors, Moody's
                  Investors Service, Inc., or any other rating agency
                  satisfactory to the Bank; and

         (d)      Routine advances to employees made in the ordinary course of
                  business.

         Section 9.7. Changes in Management and Control. The management and
ownership structure of the Borrower will not change without the prior written
consent of the Bank.

         Section 9.8. Other Agreements. The Borrower and the Guarantor will not
enter into any agreement containing any provision, which would be violated or
breached by the performance of its obligations hereunder or under any instrument
or document delivered or to be delivered by any of them hereunder or in
connection herewith.

         Section 9.9. Transactions with Affiliates. The Borrower will not enter
into any agreement with any affiliate except to the extent that such agreements
are commercially reasonable which provide for terms, which would normally be
obtainable in an arm's length transaction with an unrelated third party.

                                    ARTICLE X

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

         Section 10.1. Events of Default. The occurrence of any one or more of
the following shall constitute an Event of Default:

         Default under the Indebtedness. Should the Borrower fail to make a
payment of principal or interest under the Indebtedness when due, and such
period continues for a period of ten (10) days.

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

         Default Under Other Agreements. Should any event of default occur or
exist under any of the Related Documents or should the Borrower or the Guarantor
violate, or fail to comply fully with, any terms and conditions of any of the
Collateral Documents or Related Documents, and such default not be cured within
thirty (30) days after Bank has delivered written notice thereof to Borrower
(provided, however, that no cure period shall be available for a default in the
obligation to maintain insurance coverages required thereby).

         Other Defaults in Favor of the Bank. Should the Borrower or Guarantor
default under any other loan, loan or credit agreement, extension of credit,
security agreement, or other obligation in favor of the Bank and fail to cure
same in accordance with any applicable cure periods.

                                       20
<PAGE>

         Default in Favor of Third Parties. Should the Borrower or the Guarantor
default under any loan, extension of credit, security agreement, purchase or
sales agreement, or any other agreement, in favor of any other creditor or
person, and such default shall have given rise to the acceleration of payment of
an amount of $100,000.00 or more, and Borrower or Guarantor fails to cure same
in accordance with any applicable cure periods.

         Insolvency. The following occurrence shall constitute an Event of
Default hereunder:

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

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

         Dissolution Proceedings. Should proceedings for the dissolution or
appointment of a liquidator of the Borrower or Guarantor be commenced.

         False Statements. Should any representation or warranty of either the
Borrower or Guarantor made in connection with the Indebtedness prove to be
incorrect or misleading in any material respect when made or reaffirmed.

                                       21
<PAGE>

         Upon the occurrence of an Event of Default, the Commitment of the Bank
under this Agreement will terminate immediately, and, at the Bank's option, the
Note and all Indebtedness of the Borrower will become immediately due and
payable, all without notice of any kind to the Borrower or the Guarantor, except
that in the case of type described in the "Insolvency" subsection above, such
acceleration shall be automatic and not optional.

         Upon the occurrence of an Event of Default, the Bank may proceed to
realize upon the Collateral under the terms of the Collateral Documents and
exercise any other rights which it has by law or contract (which rights shall be
cumulative in nature) subject to applicable laws.

         Section 10.2. Waivers. Except as otherwise provided for in this
Agreement and by applicable law, the Borrower and the Guarantor waive
presentment, demand and protest and notice of presentment, dishonor, notice of
intent to accelerate, notice of acceleration, protest, default, nonpayment,
maturity, release, compromise, settlement, extension or renewal of any or all
commercial paper, accounts, contract rights, documents, instruments, chattel
paper and guaranties at any time held by the Bank on which the Borrower or the
Guarantor may in any way be liable and hereby ratify and confirm whatever the
Bank may do in this regard. The Borrower and the Guarantor acknowledge that they
have had opportunity to consult with counsel of their choice with respect to
this Agreement, the other Collateral Documents, and the transactions evidenced
by this Agreement and other Collateral Documents.

                                   ARTICLE XI

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

         Section 11.1. No Waiver; Modification in Writing. No failure or delay
on the part of the Bank in exercising any right, power or remedy hereunder shall
operate as a waiver thereof, nor shall any single or partial exercise of any
such right, power or remedy preclude any other or further exercise thereof or
the exercise of any other right, power or remedy hereunder. No amendment,
modification or waiver of any provision of this Agreement or of the Note, nor
consent to any departure by the Borrower or the Guarantor therefrom, shall in
any event be effective unless the same shall be in writing signed by or on
behalf of the Bank and then such waiver or consent shall be effective only in
the specific instance and for the specific purpose for which given. No notice to
or demand on the Borrower or the Guarantor in any case shall entitle the
Borrower or the Guarantor to any other or further notice or demand in similar or
other circumstances.

         Section 11.2. Payment on Non-Business Day. Whenever any payment to be
made hereunder or on account of any of the Note shall be scheduled to become due
on a day which is not a Business Day, such payment may be made on the next
succeeding Business Day, and such extension of time shall in such case be
included in computing interest and fees payable hereunder or on account of the
Note.

         Section 11.3. Addresses for Notices. All notices and communications
provided for hereunder shall be in writing and, shall be mailed, by certified
mail, return receipt requested, or delivered as set forth below unless any
person named below shall notify the others in writing of another address, in
which case notices and communications shall be mailed, by certified mail, return
receipt requested, or delivered to such other address.

                                       22
<PAGE>

         If to the Bank:

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

         If to the Borrower:

                  Palmetto Express, L.L.C.
                  420 West Pinhook Road, Suite A
                  Lafayette, LA 70503
                  Attn: Keith G. Myers, CEO
                         Richard A. MacMillan, Sr. Vice President and General
                         Counsel

           If to the Guarantor:

                  LHC Group, Inc.
                  420 West Pinhook Road, Suite A
                  Lafayette, LA 70503
                  Attention: Keith G. Myers, CEO

         Section 11.4. Fees and Expenses. The Borrower agrees to pay all fees,
costs and expenses of the Bank in connection with the preparation, execution and
delivery of this Agreement, and all Related Documents to be executed in
connection herewith and subsequent modifications or amendments to any of the
foregoing, including without limitation, the reasonable fees and disbursements
of outside counsel to the Bank, and to pay all costs and expenses of the Bank in
connection with the enforcement of this Agreement, the Note or the other Related
Documents, including reasonable legal fees and disbursements arising in
connection therewith. The Borrower also agrees to pay, and to save the Bank
harmless from any delay in paying stamp and other similar taxes, if any, which
may be payable or determined to be payable in connection with the execution and
delivery of this Agreement, the Note, the other Related Documents, or any
modification thereof.

         Section 11.5.  Intentionally Deleted.

         Section 11.6. Waiver of Marshaling. The Borrower and the Guarantor
shall not at any time hereafter assert any right under any law pertaining to
marshaling (whether of assets or liens) and the Borrower and the Guarantor
expressly agree that the Bank may execute or foreclose upon the Collateral in
such order and manner as the Bank, in its sole discretion, deems appropriate.

                                       23
<PAGE>

         Section 11.7. Governing Law. This Agreement and the Note shall be
deemed to be contracts made under the laws of the State of Louisiana and for all
purposes shall be construed in accordance with the laws of said State.

         Section 11.8. WAIVER OF JURY TRIAL; SUBMISSION TO JURISDICTION. (a) THE
BORROWER, THE GUARANTOR, AND THE BANK HEREBY WAIVE TRIAL BY JURY IN ANY ACTION
OR PROCEEDING TO WHICH THE BORROWER, THE GUARANTOR, AND THE BANK MAY BE PARTIES,
ARISING OUT OF OR IN ANY WAY PERTAINING TO (i) THE NOTE, (ii) THIS AGREEMENT,
(iii) THE COLLATERAL DOCUMENTS OR (iv) THE COLLATERAL. IT IS AGREED AND
UNDERSTOOD THAT THIS WAIVER CONSTITUTES A WAIVER OF TRIAL BY JURY OF ALL CLAIMS
AGAINST ALL PARTIES TO SUCH ACTIONS OR PROCEEDINGS, INCLUDING CLAIMS AGAINST
PARTIES WHO ARE NOT PARTIES TO THIS AGREEMENT. THIS WAIVER IS KNOWINGLY,
WILLINGLY AND VOLUNTARILY MADE BY THE BORROWER, THE GUARANTORS, AND THE BANK,
AND THE BORROWER, THE GUARANTOR, AND THE BANK HEREBY REPRESENT THAT NO
REPRESENTATIONS OF FACT OR OPINION HAVE BEEN MADE BY ANY INDIVIDUAL TO INDUCE
THIS WAIVER OF TRIAL BY JURY OR TO IN ANY WAY MODIFY OR NULLIFY ITS EFFECT. THE
BORROWER, THE GUARANTOR, AND THE BANK EACH FURTHER REPRESENT THAT IT HAS BEEN
REPRESENTED IN THE SIGNING OF THIS AGREEMENT AND IN THE MAKING OF THIS WAIVER BY
INDEPENDENT LEGAL COUNSEL, SELECTED OF ITS OWN FREE WILL, AND THAT IT HAS HAD
THE OPPORTUNITY TO DISCUSS THIS WAIVER WITH COUNSEL.

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

         Section 11.9. Severability. If a court of competent jurisdiction finds
any provision of this Agreement to be invalid or unenforceable as to any person
or circumstance, such finding shall not render that provision invalid or
unenforceable as to any other persons or circumstances. If feasible, any such
offending provision shall be deemed to be modified to be within the limits of
enforceability or validity; however, if the offending provision cannot be so
modified, it shall be stricken and all other provisions of this Agreement in all
other respects shall remain valid and enforceable.

         Section 11.10. Headings. Article and Section headings used in this
Agreement are for convenience only and shall not affect the construction of this
Agreement.

                                       24
<PAGE>

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

                                       BORROWER:

                                       PALMETTO EXPRESS, L.L.C.

                                       By:   LHC GROUP, INC.
                                             as Sole Member and Manager

                                       By:
                                          --------------------------------------
                                          Name: Peter J. Roman
                                          Title: Senior Vice President and CFO

                                       GUARANTOR:

                                       LHC GROUP, INC.
                                       as Sole Member and Manager

                                       By:
                                          --------------------------------------
                                          Name: Peter J. Roman
                                          Title: Senior Vice President and CFO

                                       BANK:

                                       CAPITAL ONE, NATIONAL ASSOCIATION

                                       By:
                                          --------------------------------------
                                          Name: Grant Guillotte
                                          Title: Vice President

The signature of Peter J. Roman above on behalf of the Borrower and Guarantor is
sworn to and subscribed before me this 6th day of Febuary, 2008.

   --------------------------------
   Notary Public

                                       25
<PAGE>

                                   Exhibit "A"

                             COMPLIANCE CERTIFICATE
                             ----------------------

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

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

Dear Mr. Guillotte:

         This Compliance Certificate is submitted pursuant to the requirements
of that certain Credit Agreement (the "Credit Agreement") dated _______________,
2008, by and among Palmetto Express, L.L.C. (the "Borrower"), LHC Group, Inc.
(the "Guarantor"), and Capital One, National Association.

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

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

     I.  MINIMUM FIXED CHARGE COVERAGE (Tested Quarterly on rolling 4 quarters
         ---------------------------------------------------------------------
basis)
------

         (a)  Guarantor's EBITDA................................$___________

         (b)  Guarantor's lease/rent expense....................$___________

         (c)  Guarantor's unfinanced capex......................$___________

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

         (e)  Sum of prior year-end current maturities of long
              term debt.........................................$___________

         (f)  Interest Expense..................................$___________

         (g)  Lease/Rent Expense................................$___________

         (h)  Cash Taxes........................................$___________

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

         Ratio (d to i)......................................... ___ to 1.00

                                       i
<PAGE>

         Minimum Fixed Charge Coverage..........................1.50 to 1.00

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

         (a)  Guarantor's total liabilities (include minority
              interest).........................................$___________

         (b)  Guarantor's Tangible Net Worth....................$___________

         Ratio (a to b)......................................... ___ to 1.00

         Maximum Ratio Permitted................................ 1.50 to 1.00

    III. MAXIMUM SENIOR FUNDED DEBT TO EBITDA
         ------------------------------------
         (Tested Quarterly on a rolling four quarters basis)
         ---------------------------------------------------

         (a)  Guarantor's EBITDA .............................. $___________

         (b)  Sum of Guarantor's prior year-end current
              maturities of long term debt to Bank plus interest
              expense...........................................$___________

         Ratio (a to b)......................................... ___ to 1.00

         Maximum Senior Funded Debt to EBITDA permitted......... 2.50 to 1.00

    IV.  WORKING CAPITAL RATIO
         ---------------------

         (a)  Guarantor's current assets........................$___________

         (b)  Guarantor's current liabilities...................$___________

         (c)  Guarantor's outstanding balance (on revolving
              line) to Capital One..............................$___________

         Ratio (a / b + c) ..................................... ___ to 1.00

         Minimum Working Capital Ratio Required................. 2.00 to 1.00

                                       Sincerely,

                                       LHC GROUP, INC.

                                       By:_________________________________
                                          Name:____________________________
                                          Title:___________________________

                                       ii

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