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| Annual      Retainer | Each      non-management director receives an annual retainer of      $35,000.  This retainer is paid in quarterly installments of      $8,750.  Effective July 1, 2010, the annual retainer will      increase to $40,000 and will be paid in quarterly installments of      $10,000.  The non-management Chairman of the Board receives an      additional annual retainer of $85,000.  Effective July 1, 2010,      the additional annual retainer for the non-management Chairman of the      Board will increase to $90,000. |
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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      $12,500, which reflects the increased responsibilities of this position as      a result of the Sarbanes-Oxley Act of 2002.  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) $1,750 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.  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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|   | 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 CorporateSecretary. |
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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’sCEO. |
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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.  (These costs will not be tax      deductible for Cleco, nor will they be taxable to the      Director.) |
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| Restricted      Stock | Each      non-management director receives an annual restricted stock award of Cleco      common stock valued at $50,000, not to exceed 5,000 shares of stock in any      year.  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 $50,000.  Directors are not required to      provide any consideration in exchange for the restricted stock      award.  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 beneficially own      common stock of Cleco having a value equal to at least five times the      annual Board retainer.  New directors will have five 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.  (Please      note:  Due to the complexity of the income tax rules related to      deferred compensation, Directors may wish to consult their personal tax      advisors.) |
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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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