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**Exhibit 10(n)(3)**

** CLECOCORPORATION**

2030 Donahue FerryRoad

Pineville, LA 71360

January 30, 2006

«NAME»

«LOCATION»

**Re:      Noticeand Acceptance of Grant of Restricted Stock and Common Stock Equivalent Units andAllocation of Opportunity Shares and Opportunity Common Stock Equivalent Units -2006 Performance Cycle**

Dear «NICKNAME»:

            The Compensation Committee of the Board ofDirectors (the "Committee") of Cleco Corporation (the "Company")appointed to administer the Cleco Corporation 2000 Long-Term IncentiveCompensation Plan, as amended (the "Plan") has granted and allocatedto you certain incentives related to shares of the Company's $1.00 par valuevoting common stock (the "Common Stock").  This letter is intended toprovide you notice of the terms and conditions applicable to your grant andallocation.  By execution below, you acknowledge and agree to be bound by theterms and conditions described herein and the provisions of the Plan.  Unlessotherwise defined below, capitalized terms used herein shall have the meaningsascribed to them in the Plan.

            1.         **Grant of Restricted Stock andCommon Stock Equivalent Units**.  

            a.         *Grant*.  The Committee grantsto you an aggregate of **_____________** shares of Common Stock (the "RestrictedStock") and an equal number of Common Stock Equivalent Units ("CEUs"),provided that during the 2006 Performance Cycle (as defined below), such sharesof Restricted Stock and such CEUs:

            (i)         Shall notbe sold, assigned, transferred, pledged, hypothecated or otherwise disposed of;and

            (ii)        Shall becanceled and forfeited, without the payment of consideration by the Company, ifyou are notified that the Company has not achieved the Performance Objectivesestablished for the 2006 Performance Cycle or your employment with the Companyand its Affiliates terminates for any reason, except as provided in paragraph 5hereof.

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«NAME»

January 30, 2006

Page 2

            b.         *Restricted Stock*.  TheCompany has issued in your name a certificate or certificates for theRestricted Stock.  Pending the lapse of the restrictions described above or thecancellation and forfeiture of the Restricted Stock, you agree that thecertificate or certificates will be held by the Company in escrow.  You alsoagree to execute stock powers endorsed in blank, if requested by the Committee. During the 2006 Performance Cycle, you are entitled to the rights of ashareholder with respect to the Restricted Stock, including the right to votethe shares; provided, however, that you will not be entitled to receive paymentsof dividends with respect to such shares.  You may be entitled to payment ofdividends with respect to shares that vest at the end of the 2006 PerformanceCycle as more fully described in paragraphs 1.d., 3.c. and 5.c. below.

            c.         *CEUs*. CEUs shall be recordedin a bookkeeping account maintained by the Company.  You are not entitled tovoting rights, dividend or any other rights as a shareholder with respect toCEUs, although you may be entitled to payment of dividend equivalent paymentsat the end of the 2006 Performance Cycle as more fully described in paragraphs 1.d.,3.c. and 5.c. below.  The number of CEUs awarded to you under this award noticemay be adjusted by the Committee in the event of a stock split, stock dividend orother recapitalization in the manner in which the Committee deems appropriate.

            d.         *Dividends*.  If dividends aredeclared and paid on shares of Common Stock during the 2006 Performance Cycle,then the dividends paid on shares of Restricted Stock and a cash amount equalto the dividends that would have been paid on a number of shares of CommonStock equal to the number of CEUs awarded to you pursuant to paragraph 1 (collectively,the "Accumulated Dividends") will be credited to a bookkeepingaccount and will be held by the Company, without interest, until the end of the2006 Performance Cycle.  Payment, if any, of the Accumulated Dividends will bemade only as described in paragraphs 3.c. or 5.c. below.  No dividends will beaccumulated or paid during the 2006 Performance Cycle with respect to OpportunityShares or Opportunity CEUs.

            2.         **Allocation of Opportunity Sharesand CEUs**.  The Company has also recorded in a separate bookkeeping accountestablished and maintained for your benefit a contingent allocation of **____________**units, representing shares of Common Stock (the "Opportunity Shares"),and **____________**CEUs (the "Opportunity CEUs").  WhileOpportunity Shares and Opportunity CEUs are allocated to your account, you arenot treated as a shareholder of the Company with respect to the OpportunityShares and Opportunity CEUs, and you have no right to receive dividends,dividend equivalents or vote the shares.  No dividends will be accumulated or paidduring the 2006 Performance Cycle with respect to Opportunity Shares orOpportunity CEUs.

 

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«NAME»

January 30, 2006

Page 3

            3.         **PerformanceObjectives; Vesting, Delivery and Payment**.  

            a.         *Establishment of PerformanceObjectives*.  A summary of the Performance Objectives established for theperiod beginning as of January 1, 2006, and ending December 31, 2008 (the "2006Performance Cycle") is attached hereto as **Exhibit A**. The summary issubject to the provisions of the Plan, including provisions authorizing theCommittee to interpret the Plan, to determine the degree to which the Companyachieves the Performance Objectives, and to adjust or amend the PerformanceObjectives during the 2006 Performance Cycle.  

            b.         *Vesting, Delivery and Payment*. As soon as practicable after the end of the 2006 Performance Cycle, theCommittee will notify you of the number of shares of Restricted Stock, if any,that are no longer subject to restriction, the number of CEUs, if any, to be paidto you in cash, and the number of Opportunity Shares and Opportunity CEUs, ifany, to be issued to you from your bookkeeping account in the form of CommonStock or cash, as applicable.  Payments with respect to CEUs and OpportunityCEUs under this paragraph or any other provision of this award letter will bemade in a lump sum cash payment.  Each CEU or Opportunity CEU to be paid shallentitle you to a cash payment equal to the Fair Market Value of a share ofCommon Stock as of a date selected by the Committee as near as practicable tothe payment date.  In all events any cash payments to be made to you withrespect to CEUs or Opportunity CEUs will be made by March 15, 2009.  The numberof shares of Restricted Stock and Opportunity Shares to vest or be delivered, ifany, and the number of CEUs and Opportunity CEUs to be paid, if any, will bedetermined by the Committee, based upon whether the Company has achieved thethreshold, target or maximum Performance Objectives for the 2006 PerformanceCycle, as follows:

| Performance

Objective                    | Restricted

Shares                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | CEUs | Total Award |
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|        Threshold | ** **

       Target

** **

       Maximum

** **

Shares of Restricted Stock, CEUs,Opportunity Shares and Opportunity CEUs that are not vested, paid or issued toyou will be forfeited and the affected certificates or bookkeeping entries canceledby the Company.

            c.         *Paymentof Accumulated Dividends*.  If any shares of Restricted Stock vest orpayments are made with respect to any CEUs for the 2006 Performance Cycle, thenfollowing the end of the 2006 Performance Cycle, but no later than March 15,2009, you will be paid the Accumulated Dividends, if any, that were credited tothe bookkeeping accounts with respect to shares of Restricted Stock that havevested and the CEUs for which payment has been made for the 2006 PerformanceCycle.  Any Accumulated Dividends associated with shares of Restricted Stockwhich have not vested and CEUs which have not been paid to you will beforfeited to the Company.

«NAME»

January 30, 2006

Page 4

            4.         **Further Limitations**.  Apurpose of the Company in granting Restricted Stock and allocating OpportunityShares is to encourage you to become a long-term shareholder of the Company. Consistent with this purpose, you agree that if Restricted Stock is transferredto you free of restriction or Opportunity Shares are transferred to you in theform of Common Stock, you will not sell, assign or otherwise dispose of such CommonStock, without the prior consent of the Company, and that such shares will besubject to forfeiture if your employment is terminated for Cause, as describedin paragraph 5 below.  This restriction will remain in effect during the periodcommencing as of January 1, 2009, and ending as of the earlier of (a) the dateyou cease to be an employee of the Company or an Affiliate, or (b) January 1,2012.  You agree that shares of Common Stock subject to this restriction may beheld by the Company, in escrow, pending lapse of the transfer restrictions setforth in this paragraph.  The Committee may, in its discretion, amend or waivethe restrictions set forth in this paragraph 4.  You will be notified as soonas practicable of any such action taken by the Committee.

            5.         **Termination of Employment**. If your employment with the Company and its Affiliates is terminated prior tothe expiration of the 2006 Performance Cycle, Restricted Stock granted to you,CEUs allocated to you and any Accumulated Dividends allocated to you inaccordance with paragraph 1 hereof, and Opportunity Shares and Opportunity CEUsallocated to you in accordance with paragraph 2 hereof, will be forfeited as ofthe date of your termination, except as expressly provided below:

            a.         *Restricted Stock and OpportunityShares*.  If your employment with the Company and its Affiliates isterminated during the 2006 Performance Cycle on account of your death, Disabilityor Retirement on or after age 55, or if such termination is involuntary, butnot on account of Cause, no shares will be vested or delivered upon termination;provided, however, that if any Restricted Stock held by then-current Participantsvests at the completion of the 2006 Performance Cycle,**the**restrictionslapse and the Performance Objectives are deemed satisfied, the number of sharesof Restricted Stock issued to you with respect to such Performance Cycle shallbe determined by obtaining the product of:  (a) the total number of shares ofsuch Restricted Stock subject to restriction and/or Performance Objectives, (b)the actual payout percentage paid to then-current Participants at thecompletion of the 2006 Performance Cycle and (c) the quotient obtained bydividing (i) the number of days in the 2006 Performance Cycle prior to yourseverance date by (ii) the total number of days in such Performance Cycle.

            If your employment with the Company and its Affiliatesis terminated on account of Cause during the period described in paragraph 4hereof, you agree that all Common Stock acquired on the lapse of restrictionsand/or the transfer of Opportunity Shares will be forfeited and canceled as ofthe date of such termination, without requirement of further notice.

            b.         *CEUs and Opportunity CEUs*. If your employment with the Company and its Affiliates is terminated during the2006 Performance Cycle on account of your death, Disability 

«NAME»
January 30, 2006

Page 5

or Retirement on or after age 55 or such termination isinvoluntary, but not on account of Cause, no payments in respect of CEUs orOpportunity CEUs will be made to you upon termination; provided, however, thatif any payments with respect to CEUs are paid to then-current Participants atthe completion of the 2006 Performance Cycle,**and the**PerformanceObjectives are deemed satisfied, then payment will be made as to the number of CEUsallocated to you with respect to such Performance Cycle determined by obtainingthe product of:  (a) the total number of CEUs granted to you subject torestriction and/or Performance Objectives, (b) the actual payout percentagepaid to then-current Participants at the completion of the 2006 PerformanceCycle and (c) the quotient obtained by dividing (i) the number of days in the 2006Performance Cycle prior to your severance date by (ii) the total number of daysin such Performance Cycle.  Such payment will be made to you no later thanMarch 15, 2009.

            c.         *Accumulated Dividends*. Accumulated Dividends that were credited to the bookkeeping accounts withrespect to the shares of Restricted Stock which were deemed vested pursuant toparagraph 5.a. and the CEUs which were paid pursuant to paragraph 5.b. will bepaid to you no later than March 15, 2009.

            d.         *Cause*.  For this purpose,the term "Cause" generally means that you commit an intentional actof fraud, embezzlement or theft during your employment, you engage inintentional misconduct that is materially injurious to the Company (or anAffiliate), you wrongfully disclose confidential information, you intentionallydamage the property of the Company or you intentionally refuse to perform yourmaterial job duties.  The Committee determines whether any termination is onaccount of Cause.

            6.         **Change in Control**. Notwithstanding any provision of the Plan or this agreement to the contrary,upon the occurrence of a Change in Control, all Performance Objectives shall bedeemed satisfied and all restrictions and limitations shall lapse as to theaggregate number of shares of Restricted Stock granted to you in paragraph 1hereof, all CEUs granted to you in paragraph 1 shall be paid to you in cash, sharesof Common Stock equal to the number of Opportunity Shares allocated to you inparagraph 2 hereof shall be transferred to you, free of restriction, andOpportunity CEUs allocated to you in paragraph 2 hereof shall be paid to you incash.  If your employment with the Company is subject to a severance agreement,employment agreement or similar document defining the term "Change inControl," the definition contained in such document shall govern;otherwise, the term "Change in Control" shall be determined inaccordance with the terms of the Plan.

            Unless you are or become a party to a separatewritten agreement with the Company that provides to the contrary, the Planprovides that no portion of the payments you receive from the Company or anAffiliate on account of a Change in Control, including Common Stock under thisparagraph 6, can be characterized as an "excess parachute payment"within the meaning of Section 280G of the Internal Revenue Code of 1986, asamended.  If an excess parachute 

«NAME»

January 30, 2006

Page 6

payment is otherwise payable to you on account of a Changein Control, you may be required to forfeit some or all of the Common Stocktransferable hereunder to comply with this limitation.

            Notwithstanding the foregoing, payments ofcash with respect to CEUs will not be made pursuant to this paragraph 6 unlessthe Change in Control is a permissible payment event for purposes of Section409A of the Code and relevant guidance thereunder.  If the Change in Control isnot a permissible payment event under Section 409A of the Code, payments withrespect to CEUs will be made at the end of the 2006 Performance Cycle, but notlater than March 15, 2009.

            7.         **Business Transactions**.  Ifyour employment with the Company and its Affiliates is involuntarily terminatedon account of a Business Transaction and not on account of Cause, allPerformance Objectives shall be deemed satisfied and all restrictions shalllapse as to the Restricted Stock granted to you in paragraph 1 hereof, all CEUsgranted to you in paragraph 1 shall be paid to you in cash, shares of CommonStock equal to the number of Opportunity Shares allocated to you in paragraph 2hereof shall be transferred to you, free of restriction, and Opportunity CEUsallocated to you in paragraph 2 hereof shall be paid to you in cash.  For thispurpose, the term "Business Transaction" is defined in the Plan asthe sale, lease or other disposition of all or a substantial portion of theassets of an Affiliate or the sale or other disposition of all or substantiallyall of the issued and outstanding stock or other equity interests of anAffiliate.  The Committee determines whether any sale, lease or disposition isa Business Transaction.

            8.         **Tax Withholding**.  If therestrictions lapse with respect to all or part of the Restricted Stock or ifOpportunity Shares are transferred to you, you agree that:

            a.         If Restricted Stock is released toyou, CEUs are paid to you, Opportunity Shares are transferred or issued to you orOpportunity CEUs are paid to you by the Company, you will, no later than thedate of such release, transfer or issuance, pay to the Company, or makearrangements satisfactory to the Committee regarding payment of, any federal,state or local taxes required by law to be withheld by the Company with respectto such deliveries or payments; and 

            b.         The Company and its Affiliatesshall, to the extent permitted by law, have the right to deduct from anypayments otherwise due to you any federal, state or local taxes required by lawto be withheld.

            9.         **No Assignment**.  The grantand allocation described herein shall not be subject in any manner to sale,transfer, pledge, assignment or other encumbrance or disposition, whether byoperation of law or otherwise and whether voluntarily or involuntarily, exceptby will or the laws of descent and distribution.

«NAME»
January 30, 2006

Page 7

            10.       **Additional Requirements**.  Youacknowledge that Common Stock acquired hereunder may bear such legends as theCommittee or the Company deems appropriate to comply with applicable Federal orstate securities laws or under the terms of the Plan.  In connection therewithand prior to the issuance of such shares, you may be required to deliver to theCompany such other documents as may be reasonably required to ensure compliancewith applicable Federal or state securities laws. 

            11.       **EmploymentRights**.   Neither this agreement nor the grant of Restricted Stock or CEUs orallocation of Opportunity Shares or Opportunity CEUs shall be deemed to conferupon you any right to continue in the employ of the Company or any Affiliate orinterfere, in any manner, with the right of the Company or any of its Affiliatesto terminate your employment, whether with or without cause, in its solediscretion.

            12.       **Amendment**.  The Committee mayamend the terms and conditions set forth herein, without your consent, to theextent it determines that such amendment is necessary or appropriate to complywith the provisions of Section 409A of the Internal Revenue Code of 1986, asamended.  You will receive written notice of any such amendment.  Otherwise,the terms and conditions set forth herein can be amended by the written consentof the parties hereto. 

                                                                                                                                            Verytruly yours,     

                                                                                                                                            CLECOCORPORATION                  

                                                                                                                                            By:       _____________________________

                                                                                                                                                        

                                                                                                                                            Its:           

                                                                                                                                        

«NAME»

January 30, 2006

Page8

**ACKNOWLEDGMENTAND AGREEMENT **

            I acknowledge that the Restricted Stock andCEUs granted and Opportunity Shares and Opportunity CEUs allocated hereundershall be subject to such additional terms and conditions as may be imposedunder the terms of the Plan, in addition to the terms and conditions of thisagreement. By execution of this agreement, I acknowledge that no member of theCommittee shall be liable for any action or determination taken in good faithwith respect to the Plan or any grant or award hereunder. 

                                                                                                                                                ___________________________________

                                                                                                                                                Signature 

    

                                                                                                                                                Date:______________________________

**EXHIBIT A**

CLECO CORPORATION

2000 LONG-TERMINCENTIVE COMPENSATION PLAN

PERFORMANCEOBJECTIVES 

            The Cleco Corporation 2000 Long-Term IncentiveCompensation Plan (the "Plan") requires the Compensation Committee ofthe Board of Directors (the "Committee") of Cleco Corporation (the "Company")to establish performance measures for each Performance Cycle.

            For the 2006 Performance Cycle, thecomparative performance measure approved is the relative price appreciationplus dividends paid per share on Common Stock ("Total Shareholder Return"or "TSR") during the 2006 Performance Cycle as compared to the TotalShareholder Return of companies in the S&P Small and Midcap ElectricUtilities Index ("Peer Group").  The Company's TSR must rank at orabove the **30th** percentile level in order for any award to bepaid.  Actual awards are determined by the Committee based on the Company'srank within the peer group (see **Attachment A** - Performance AwardMatrix).

            Restrictions will lapse upon receipt by you ofwritten notice from the Committee that the Company has achieved the PerformanceObjectives established for the 2006 Performance Cycle; notice will be given bythe Committee as soon as practicable after the close of the cycle.  Paymentswith respect to CEUs will be made on a similar schedule, provided that in allevents any payments to be made with respect to the CEUs granted for the 2006Performance Cycle will be made on or before March 15, 2009.

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