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**Cleco        Corporation**

**Summary        of Director Compensation, Benefits and Policies**

**As        Approved by the Board of Directors on July 23, 2004 and**

**Last        Revised on July 20, 2007**

| **Annual                  Retainer** | Each                  non-management director receives an annual retainer of                  $25,000.  This retainer is paid in quarterly installments of                  $6,250.  Effective January 1, 2008, the annual retainer will                  increase to $35,000 and will be paid in quarterly installments                  of                  $8,750.  The non-management Chairman of the Board receives an                  additional annual retainer of $75,000.  Effective January 1,                  2008, the additional annual retainer for the non-management Chairman                  of                  the Board will increase to $85,000. |
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|   | Each                  non-management director who is chairman of a board committee receives                  an                  additional annual fee of $5,000, except the chairman of the Executive                  Committee, who does not receive any additional compensation for                  holding                  that position, and the chairman of the Audit Committee.  The                  chairman of the Audit Committee receives an additional annual fee                  of                  $10,000, which reflects the increased responsibilities of this                  position as                  a result of the Sarbanes-Oxley Act of 2002.  Effective January                  1, 2009, the additional annual fee for the Audit Committee chairman                  will                  increase to $12,500.  The total annual retainer may be paid, at                  the election of each director, in the form of cash, Cleco common                  stock, or                  a combination of both cash and                  stock. |
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| **Meeting                  Fees** | Each                  non-management director receives meeting fees as follows: (1) $1,750                  for                  each in-person board meeting attended; (2) $1,500 for each in-person                  Audit                  Committee meeting attended; (3) $1,350 for each in-person other                  committee                  meeting attended; and (4) $500 for each telephone conference meeting                  of                  the board or one of its committees attended, including informal                  telephone                  conference meetings.  Meeting fees may be paid, at the election                  of each director, in the form of cash, Cleco common stock, or a                  combination of both cash and stock. |
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|   | Effective                  January 1, 2009, each non-management director will receive meeting                  fees as                  follows: (1) $1,750 for each in-person board meeting attended;                  (2) $1,750                  for each in-person Audit Committee meeting attended; (3) $1,500                  for each                  in-person other committee meeting attended; and (4) $500 for each                  telephone conference meeting of the board or one of its committees                  attended, including informal telephone conference                  meetings. |
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|   | The                  Chairman of the Board is not paid for attendance at meetings (whether                  in                  person or by phone) of committees on which he does not serve, except                  quarterly phone meetings of the Audit Committee for review of the                  Form                  10-K and/or Form 10-Q.  Nor is the Chairman compensated for                  meetings not associated with Board or committee meetings or for                  regular                  on-site visits to Cleco to receive updates from the management                  staff. |
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| **Special                  Services** | While                  expected to occur infrequently, when a non-management  director                  is requested to perform special services considered to be beyond                  the scope                  of the director's normal duties, each day spent performing those                  duties                  shall be considered the equivalent of attending a Board or committee                  meeting for purposes of director compensation. Normally compensation                  for such matters will be appropriate only if the director is required                  to                  spend more than four hours on the matter and associated travel.                   Examples, not inclusive, of such activities would be participating                  in the interview process for potential new Board candidates and/or                  members                  of senior management and working with consultants to the                  Board.  Determinations as to the applicability of compensation                  to a particular circumstance will be reviewed on a case-by-case                  basis by                  the President / CEO and the Corporate                  Secretary. |
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| **Expenses** | Directors                  are reimbursed for travel and related expenses incurred for attending                  meetings of the Board of Directors and board committees, including                  costs                  related to spousal travel, as well as for any special services                  as                  described above.  This reimbursement includes the cost of first                  class air fare as authorized by Cleco’s                  CEO. |
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|   | As                  noted above, spousal travel for** **directors has been                  approved and authorized by Cleco’s CEO.  Therefore,                  reimbursement by Cleco to directors for all costs related to spousal                  travel will be allowed.  Such costs will be charged to a                  specific account to allow for proper tax treatment by the                  Company.   |
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| **Restricted                  Stock** | Each                  non-management director receives an annual restricted stock award                  of Cleco                  common stock valued at $40,000, not to exceed 5,000 shares of stock                  in any                  year.  Effective January 1, 2008, this annual restricted stock                  award of Cleco common stock will increase to a value of                  $50,000.  The grant date of the award will be the date of the                  January Board meeting each year, and the valuation date of the                  stock will                  be the first trading day of the year.  The number of shares to                  be issued will be determined by dividing 85% of the stock price                  on the                  valuation date into $40,000 ($50,000 effective January 1,                  2008).  Directors are not required to provide any consideration                  in exchange for the restricted stock                  award.   |
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|   | Restrictions                    on the stock subject to the award lapse after a six-year period                    measured                    from the date of the award or at the director’s retirement if earlier, and                    the stock cannot be sold or transferred during this                    period. |
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| **Stock                  Ownership** | Cleco                  has adopted stock ownership guidelines for                  directors.  Under the guidelines, Cleco recommends that its                  current directors own common stock of Cleco having a value equal                  to at                  least five times the annual Board retainer.  New directors                  will have three years following their election to the Board to                  meet this                  recommended stock ownership level, and current directors will have                  three                  years following each increase in the annual Board retainer to meet                  this                  recommended stock ownership level.  The intent of the                  guidelines is to encourage stock ownership by directors and not to                  force a director to purchase more stock, if and when the stock                  price                  declines.  Where the guidelines are not met within the                  applicable time, the matter will be reviewed by the Nominating                  /                  Governance Committee, which may determine to waive the guidelines                  or to                  make an appropriate recommendation to the                  Board. |
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| **Deferred** |   |
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| **Compensation** |  |
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| **Plan** | A                  non-management director may elect to participate in a deferred                  compensation plan and defer the receipt of all or part of his or                  her fees                  and restricted stock.  Benefits are equal to the amount credited                  to each director’s individual account based on compensation deferred plus                  applicable investment returns.  Accounts are payable when a                  director ceases to serve on the Board or attains a specified                  age.   |
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| **Life                    Insurance/** |  |
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| **                         Disability Plan** | Cleco                  provides its non-management directors with $200,000 of life insurance                  and                  permanent total disability coverage under a group accidental death                  and                  dismemberment plan maintained by Cleco Power LLC, a wholly owned                  subsidiary of Cleco.  This coverage is terminated at the time                  the director ceases to serve on the Board.  Coverage may not be                  continued, even if the departing director agrees to pay the                  premium. |
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| **Management** |  |
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|   | **Directors** | Directors                  who are Cleco employees receive no additional compensation for                  serving as                  a director. |
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