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EXHIBIT 10(b)(3)

CLECO CORPORATION
401(k) SAVINGS AND INVESTMENT PLAN
STOCK TRUST AGREEMENT

AMENDMENT NO. 1

WHEREAS, Cleco Corporation (“Cleco”) maintains the 401(k) Savings and Investment
Plan Stock Trust Agreement in connection with the 401(k) Savings and Investment
Plan, as the same has been amended from time to time (the “Plan”), such trust
most recently amended and restated effective as of August 1, 1997 (the “Trust
Agreement”);

WHEREAS, the Board of Directors of Cleco possesses the authority to amend the
Trust Agreement, pursuant to Article Thirteenth thereof;

NOW, THEREFORE, BE IT RESOLVED, effective as of January 1, 1999, the Trust
Agreement shall be amended as follows:

I.

The fifth and sixth paragraphs of Article Second, entitled “Investment Powers,”
shall be amended and restated in their entirety as follows:

 
Except in the event of a tender or exchange offer as hereinafter provided, or in
the case of fractional shares received in any stock dividend, stock split or
other recapitalization or as is necessary to make any distribution or payment
from the Trust Fund, or unless expressly provided by ERISA, the Trustee shall
have no power or duty to sell, tender, exchange or otherwise dispose of any of
the stock held in the Fund (the securities held in such fund to constitute
Company Stock within the meaning of Section 1.10 of the Plan).  In the event
that a tender or exchange offer is made for all or any portion of the stock held
in the Company Stock Fund, the Trustee shall tender or exchange such shares only
upon receipt of and in accordance with the directions of the Administrator.  All
property received in exchange for such Company Stock so tendered shall be held
by the Trustee in the Fund subject to the terms and conditions of this Trust
Agreement, which agreement shall be deemed amended to permit the holding of such
property within such Fund.

II.

Article Fourth, paragraph (3) of the Trust Agreement shall be amended and
restated in its entirety as follows:

(3)  power to vote in person or by proxy at corporate or other meetings and to
participate in or consent to any voting trust, reorganization, dissolution,
merger or other action affecting securities in its possession or the issuers
thereof; provided, however, that each Participant in the Plan who has an
interest in the Company Stock Fund or in Company Stock allocated to his or her
ESOP account shall be entitled to
 
 
 

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(4)     direct the Trustee as to the manner in which Company Stock having voting
rights which is allocated to such Participant’s Accounts is to be voted.  The
Trustee, itself or by its nominee, shall be entitled to vote and shall vote said
stock with voting rights allocated to the Accounts of said Participants as
follows:  (i) the Company shall adopt reasonable measures to notify said
Participants of the date and purposes of each meeting of stockholders of the
Company at which holders of shares of stock shall be entitled vote, and to
request instructions from such Participants to the Company, its agent or the
Trustee as to the voting at such meeting of the number of shares of Company
Stock (including fractional shares) in the account of each such Participant,
whether or not vested, (ii) in each case, the Trustee, itself or by proxy, shall
vote the shares of said stock (including fractional shares) in the account of
each such Participant in accordance with the directions of the Participant as
communicated directly to the Trustee or to the Trustee by the Company or its
agent, and (iii) if prior to the time of such meeting of stockholders (or a date
prior thereto specified by the Trustee), the Trustee shall not have received
timely directions from a Participant as to the manner of voting any shares of
allocated stock in the Accounts of such Participant, the Trustee shall not vote
such shares.  The Trustee shall vote shares of stock held in the Stock Suspense
Account in accordance with the instructions of the Administrator.

 
THIS AMENDMENT has been executed in multiple counterparts, each of which shall
has been deemed an original, this 15th day of February, 1999.

 
CLECO CORPORATION
     
By:  /s/ Gregory L. Nesbitt                         
     
Its:  Chairman and Chief Executive Officer

REVIEWED AND ACCEPTED by UMB Bank, N.A., a national banking association with its
principal place of business at Kansas City, Missouri, appointed as the trustee
under the Trust Agreement.

 
UMB BANK, N.A.
     
By:  /s/ William A. Hann                            
     
Its:  Senior Vice President                          
     
Date:  March 17, 1999                                

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