Document:

INTELLECTUAL PROPERTY SECURITY
                       AGREEMENT AND COLLATERAL ASSIGNMENT
                       -----------------------------------

         GMAC COMMERCIAL FINANCE LLC, 3000 Town Center, Suite 280, Southfield,
Michigan 48075 ("LENDER") and IOM Holdings, Inc., a Nevada corporation, with a
principal place of business at 4 Marconi, Irvine, California 92618 ("HOLDINGS")
enter into this Agreement on March 9, 2005.

         Holdings has entered into a Guaranty of even date (the "GUARANTY")
pursuant to which Holdings guarantied all of I/OMagic Corporation's
"Obligations" under that certain Loan and Security Agreement of even date (the
"LOAN AGREEMENT") with Lender under which Lender has agreed to make certain
loans available to Borrower. Lender is willing to make such loans under the Loan
Agreement upon the condition, among others, that Holdings execute and deliver
this Agreement.

         In consideration of the above and of the mutual covenants in this
Agreement and for other good and valuable consideration, the receipt of which is
hereby acknowledged, the parties agree as follows:

         1. INCORPORATION OF LOAN AGREEMENT. The Loan Agreement (and all
agreements referred to or incorporated in the Agreement) is incorporated by this
reference. All capitalized terms not otherwise defined in this Agreement, shall
have the meanings specified in the Loan Agreement.

         2. COLLATERAL ASSIGNMENT OF TRADEMARKS, COPYRIGHTS AND PATENTS. To
secure the prompt payment and performance of all of Holdings's present and
future indebtedness and obligations to Lender, including those arising under the
Guaranty (collectively, the "DEBT") Holdings hereby grants to Lender a
continuing security interest in, and, to the extent provided in SECTION 4
hereof, shall assign, transfer and convey, to the Lender all right, title and
interest, in the United States and throughout the world, in, to and under the
following (all of which are collectively called the "COLLATERAL") whether now
existing or hereafter created or acquired:

                  (a) all United States and foreign trademarks, trade names,
corporate names, company names, business names, fictitious business names, trade
styles, service marks, logos, other source or business identifiers, prints and
labels on which any of the foregoing have appeared or appear, designs and
general intangibles of like nature, trademark registrations and applications for
registration, now owned or hereafter acquired by Holdings (including, without
limitation, those listed on SCHEDULE 1 attached hereto and made a part hereof)
and all licenses thereof, together with the goodwill of the business connected
with the use of, and symbolized by, the foregoing, and (i) the registration
renewals thereof, (ii) all Holdings's rights to income, royalties, damages and
payments now and hereafter due or payable under and with respect thereto
including, without limitation, payments under all licenses entered into in
connection therewith and damages and payments for past or future infringements
thereof, and (iii) all rights corresponding thereto throughout the world, (all
of the foregoing sometimes hereinafter individually or collectively referred to
as the "TRADEMARKS");

                                       1
<PAGE>

                  (b) all United States and foreign copyrights, registered or
unregistered, in to all copyrightable works including all registrations and
applications therefor and all licenses thereof and (i) any renewals or
extensions of the registrations therefor that may be secured under the laws now
or hereafter in effect in the United States or any other country or countries,
(ii) all Holdings's rights to income, royalties, damages and payments now and
hereafter due or payable under and with respect thereto, including, without
limitation, payments under all licenses entered into in connection therewith and
damages and payments for past or future infringements thereof, and (iii) all
rights corresponding thereto throughout the world (sometimes individually or
collectively referred to as the "COPYRIGHTS");

                  (c) all United States and foreign patents and patent
applications, now owned or hereafter acquired by Holdings, including, without
limitation, the inventions and improvements described and claimed therein, and
those patents and patent applications listed on SCHEDULE 1 attached hereto and
made a part hereof, all licenses thereof and (i) the reissues, divisions,
continuations, renewals, extensions and continuations-in-part thereof, (ii) all
Holdings's rights to income, royalties, damages and payments now and hereafter
due or payable under and with respect thereto, including, without limitation,
payments under all licenses entered into in connection therewith and damages and
payments for past or future infringements thereof, and (iii) all rights
corresponding thereto throughout the world (all of the foregoing being sometimes
hereinafter individually or collectively referred to as the "PATENTS"); and

                  (d) all other intellectual property rights, now owned or
hereafter acquired by Holdings, including, without limitation, the intellectual
property listed on SCHEDULE 1, including, without limitation, trade secrets,
know-how and confidential business information, computer software, computer
programs, source code, data and documentation (including electronic media) and
licenses thereof, and (i) all Holdings's rights to income, royalties, damages
and payments now and hereafter due or payable under and with respect thereto,
including, without limitation, payments under all licenses entered into in
connection therewith and damages and payments for past or future infringements
thereof, and (ii) all rights corresponding thereto throughout the world
(collectively referred to as "INTELLECTUAL PROPERTY RIGHTS").

         3. CONTINUING LIABILITY. Holdings expressly agrees that,
notwithstanding anything to the contrary in this Agreement, it shall remain
liable under each license, interest and obligation assigned to the Lender under
this Agreement to observe and perform all the conditions and obligations to be
observed and performed by it thereunder, all in accordance with and pursuant to
the terms and provisions applicable to Holdings and shall retain the right to
sue and recover for past, present and future infringements thereof. The Lender
shall have no obligation or liability under any such license, interest or
obligation by reason of or arising out of this Agreement or the assignment
thereof to the Lender or the receipt by the Lender of any payment relating to
any such license, interest or obligation pursuant hereto, nor shall the Lender
be required or obligated in any manner to perform or fulfill any of the
obligations of Holdings thereunder or pursuant thereto, or to make any payment,
or to make any inquiry as to the nature or the sufficiency of any payment
received by it or the sufficiency of any performance by any party under any such
license, interest or obligation, or to present or file any claim, or to take any
action to collect or enforce any performance of the payment of any amounts which
may have been assigned to it or to which it may be entitled at any time or
times.

                                       2
<PAGE>

         4. EFFECT OF COLLATERAL ASSIGNMENT AND REMEDIES. Holdings agrees that
upon the occurrence of an Event of Default (after any applicable grace or cure
periods) under the Loan Agreement, the Lender, without demand of performance or
other demand, advertisement or notice of any kind (except the notice specified
below of time and place of public or private sale) to or upon Holdings or any
other person (all and each of which demands, advertisements or notices are
hereby expressly waived), may forthwith collect, receive, appropriate and
realize upon the Collateral, or any part thereof, or may forthwith sell, lease,
assign, give option or options to purchase, or sell or otherwise dispose of and
deliver said Collateral (or contract to do so), or any part thereof, in one or
more public or private sale or sales, at any exchange, broker's board or at any
of the Lender's offices or elsewhere at such prices as it may deem best, for
cash or on credit or for future delivery without assumption of any credit risk,
and the Lender shall apply the net proceeds (after expenses) of any such sale,
lease, assignment or other disposition against the Obligations in such order as
the Lender in its sole discretion shall determine, Holdings remaining liable for
any deficiency therein. The Lender shall have the right upon any such public
sale or sales, and, to the extent permitted by law, upon any such private sale
or sales, to purchase the whole or any part of the Collateral so sold, free of
any right or equity or redemption in Holdings, which right or equity is hereby
expressly waived and released. To the extent permitted by applicable law,
Holdings waives all the claims, damages and demand against the Lender arising
out of the repossession, retention or sale of the Collateral. Holdings agrees
that the Lender need not give more than 10 days' notice of the time and place of
any public sale or of the time after which a private sale may take place and
that such notice is reasonable notification of such matter.

         5. REFILING. If, before the Debt is paid in full, Holdings obtains any
rights in or to any new or additional Intellectual Property Rights, the
provisions of this Agreement shall apply thereto and Lender is hereby authorized
to amend Schedule 1 and re-file this Agreement as appropriate.

         6. POWER OF ATTORNEY. Holdings hereby authorizes the Lender to make,
constitute and appoint any officer or agent of the Lender as the Lender may
select, in the Lender's sole discretion, as Holdings's true and lawful
attorney-in-fact, with power (I) to endorse Holdings's name on all applications,
documents, papers and instruments necessary or desirable for the Lender in the
perfection of a security interest in the Collateral, (ii) from and after the
occurrence of any Event of Default (after any applicable grace or cure periods)
in accordance with this Agreement and applicable law, to assign, pledge, convey
or otherwise transfer title in or dispose of the Collateral to anyone. Holdings
hereby ratifies all that such attorney shall lawfully do or cause to be done by
virtue of this Assignment. This power of attorney shall be irrevocable until all
of the Debt has been paid in full and all of the financing arrangements between
Holdings and the Lender have been terminated and Lender has no further
obligation to make loans to Holdings.

                                       3
<PAGE>

         7. SPECIFIC PERFORMANCE; INJUNCTIVE RELIEF. Holdings agrees that, in
addition to all other rights and remedies granted to Lender in this Agreement,
the Loan Agreement and any other collateral security document, Lender shall be
entitled to specific performance and injunctive and other equitable relief, and
Holdings further agrees to waive any requirement for the securing or posting of
any bond or other security in connection with the obtaining of any such specific
performance and injunctive or other equitable relief.

         8. GRANT OF LICENSE TO USE INTANGIBLES. In addition to and for the
purpose of enabling the Lender to exercise rights and remedies under SECTIONS 4
and 5 hereof, Holdings shall permit Lender reasonable access to all media in
which any of the Collateral may be recorded or stored and to all computer
programs used for the compilation or printout thereof. In addition, upon an
Event of Default (after any applicable grace or cure periods), Lender, and its
assigns, shall have a non-exclusive license throughout the world in all
Trademarks, Patents, Copyrights, and Intellectual Property Rights for the
manufacture, sale and distribution of inventory or other goods of Holdings and
for the sale and use of any assets of Holdings in which Lender has a security
interest (whether now or in the future), unless Holdings is contractually or
legally prohibited from granting such license to Lender.

         9. REPRESENTATION AND WARRANTIES. Holdings represents and warrants that
Schedule 1 contains a complete and correct list of all the trademark
registrations and trademark applications, copyright registrations and copyright
applications and patents and patent applications, respectively, if any, (I)
owned by the Holdings or (ii) licensed to or by Holdings. Holdings additionally
represents and warrants to the best of its knowledge that except as set forth in
SCHEDULE 1, there is no currently pending patent application on which any agent
or employee of Holdings is listed as an inventor. Except as set forth in
SCHEDULE 1, Holdings owns free and clear of all liens all right, title and
interest in, or has full right and authority to use, all Collateral necessary or
desirable for the conduct of their businesses as currently conducted, as
previously conducted or as currently proposed to be conducted. Except as set
forth in SCHEDULE 1, no claim by any other person or entity ("PERSON")
contesting the validity or ownership of any Collateral has been made, is
currently outstanding or is threatened and neither Holdings nor any executive
thereof has received any notice of, or is aware of any fact which would indicate
a likelihood of, any infringement or misappropriation upon, or conflict with,
any other Person's intellectual property. Except as set forth in the SCHEDULE 1,
none of the Collateral infringes or misappropriates upon, or conflicts with, any
intellectual property of any Person, and no infringement, misappropriation or
conflict will occur as a result of the continued operation of the businesses as
now conducted as currently proposed to be conducted. The transactions
contemplated by this Agreement will have no adverse effect on any of Holdings's
rights in and to the Collateral. Holdings further agrees that it will at its
expense, at the Lender's request, defend the Lender's and Holdings's respective
interests in the Collateral from any and all claims and demands of any other

                                       4
<PAGE>

person and that it will not grant, create or permit to exist any lien upon or
security interest in the Collateral in favor of any other person except liens
permitted by the Loan Agreement; provided, however, that prior to the occurrence
of an Event of Default and until the expiration of any applicable grace or cure
period, nothing contained in this Agreement shall affect Holdings's right to
grant non-exclusive licenses to third parties to use any portion of the
Collateral.

         10. RESTRICTIONS ON FUTURE AGREEMENTS. Holdings agrees that until all
of the Obligations have been satisfied in full and the Loan Agreement has been
terminated and Lender has no further obligation to make loans to Holdings, it
will not, without Lender's prior written consent, enter into any agreement,
including, without limitation, any license agreement, which is materially
inconsistent with Holdings's obligations under this Agreement and Holdings
further agrees that it will not take any action or permit any action to be taken
by others subject to its control, including licensees, or fail to take any
action, which would materially affect the validity or enforcement of any of the
rights transferred to Lender under this Agreement.

         11. COVENANTS REGARDING COLLATERAL.

                  (a) Except as to Collateral which Holdings in its judgment
determines to be in its best interests to abandon or not to enforce or protect,
Holdings (either itself or through licensees) shall (i) continue to use each
Trademark on each and every trademark class of goods applicable to its current
line as reflected in its current catalogs, brochures and price lists in order to
maintain each Trademark in full force free from any claim of abandonment for
non-use, (ii) employ each Trademark, Copyright and Patent with the appropriate
notice of application or registration on applicable products or services, (iii)
not (and not permit any licensee or sublicensee thereof to) do any act or
knowingly omit to do any act whereby any Patent may become invalidated or
unenforceable, any Trademark right may become abandoned or unenforceable, any
Copyright right may become unenforceable, or any Intellectual Property Right may
become unenforceable, (iv) prosecute diligently any trademark application,
copyright application or any patent application which is pending as of the date
of this Agreement or thereafter, until the Obligations shall have been paid in
full, and (v) preserve and maintain all rights in and to the Collateral.

                  (b) Except as set forth in SCHEDULE 1, Holdings shall notify
the Lender reasonably promptly if it knows, or has reason to know, that any
application or registration relating to any of the Collateral may become
abandoned or dedicated, or of any adverse determination or development
(including, without limitation, the institution of, or any such determination or
development in, any proceeding in the United States Patent and Trademark Office,
the United States Copyright Office or any court) regarding Holdings's ownership
of any of the Collateral, its right to register the same, or to keep and
maintain the same, except for such abandonment, determination or dedication
which is permitted under subparagraph (a) above.

                  (c) Holdings (either itself or through licensees) will take
all necessary steps, including, without limitation, in any proceeding before the
United States Patent and Trademark Office, the United States Copyright Office or
any similar office or agency in any other country or any political subdivision

                                       5
<PAGE>

thereof, to maintain and pursue each application (and to obtain the relevant
registration) and to maintain each registration of the Collateral, including,
without limitation, filing of applications for renewal, affidavits of use,
affidavits of incontestability and opposition, interference and cancellation
proceedings (except to the extent that dedication, abandonment or invalidation
is permitted under subparagraphs (a) and (b) above) or as set forth in SCHEDULE
1.

                  (d) In the event that any of the Collateral is infringed,
misappropriated or diluted by a third party, Holdings shall provide reasonably
prompt notice to Lender and take such action as Holdings shall reasonably deem
appropriate under the circumstances, which may include suit for infringement,
misappropriation or dilution and to recover any and all damages for such
infringement, misappropriation or dilution to protect such Collateral.

                  (e) At its option, Lender may discharge taxes, liens or
security interests or other encumbrances at any time levied or placed on the
Collateral, may place and pay for insurance on the Collateral upon failure by
Holdings to provide insurance satisfactory to the Lender. Holdings agrees to
reimburse Lender on demand for any payment reasonably made in any expense
incurred by Lender pursuant to the foregoing authorization. Subject to Lender's
rights under the License Agreement, until an Event of Default occurs and after
expiration of any applicable grace or cure period and an acceleration of the
loans, Holdings may have possession of the Collateral and use it in any lawful
manner not inconsistent with this Agreement.

         12. NOTICE. All notices or other communications hereunder shall be
given in the manner and to the addresses determined under the Loan Agreement.

         13. SEVERABILITY. Any provision of this Agreement which is prohibited
or unenforceable in any jurisdiction shall not invalidate the remaining
provisions hereof, any such prohibition or unenforceability in any jurisdiction
shall not invalidate or render unenforceable such provision in any other
jurisdiction.

         14. NO WAIVER; CUMULATIVE REMEDIES. The Lender shall not by any act,
delay, omission or otherwise be deemed to have waived any of its rights or
remedies hereunder, and no waiver shall be valid unless in writing, signed by
the Lender, and then only to the extent therein set forth. A waiver by the
Lender of any right or remedy hereunder on any one occasion shall not be
construed as a bar to any right or remedy which the Lender would otherwise have
had on any future occasion. No failure to exercise nor any delay in exercising
on the part of the Lender any right, power or privilege hereunder shall operate
as a waiver thereof, nor shall any single or partial exercise of any right,
power or privilege hereunder preclude any other right, power or privilege. The
rights and remedies hereunder provided are cumulative and may be exercised
singly or concurrently, and are not exclusive of any rights and remedies
provided by law or in the License Agreement or any other agreements between the
parties.

         15. WAIVERS; AMENDMENTS. None of the terms and provisions of this
Agreement may be waived, altered, modified or amended except by an instrument in
writing executed by the parties hereto.

                                       6
<PAGE>

         16. LIMITATIONS BY LAW. All rights, remedies and powers provided in
this Agreement may be exercised only to the extent that the exercise thereof
does not violate any applicable provision of law which may be controlling and
are limited to the extent necessary so that they will not render this Agreement
invalid, unenforceable in whole or in part or not entitled to be recorded,
registered or filed under the provisions of any applicable law.

         17. SUCCESSORS AND ASSIGNS. This Agreement shall be binding upon and
inure to the benefit of the parties hereto and their respective successors and
assigns, and nothing herein or in the Loan Agreement or any other collateral
security document is intended or shall be construed to give any other person any
right, remedy or claim under, to or in respect of this Agreement, the Loan
Agreements or any other collateral security document. This Agreement may be
signed in separate counterparts.

         18. TERMINATION AND REASSIGNMENT. The Lender agrees that upon the
termination or expiration of the Loan Agreement and termination of any
obligations of Lender to make loans to Holdings and the payment and performance
in full of all the Obligations, the Lender will promptly execute documents
releasing the security interests created hereby and to reassign Lender's
interest in the collateral to Holdings, without warranty, representation or
guaranty of any nature or kind.

         19. APPLICABLE LAW. This Agreement shall be governed by, and be
construed and interpreted in accordance with, the internal laws (and not the
laws of conflict) of the State of Michigan.

         20. ENTIRE AGREEMENT. This Agreement constitutes the entire
understanding of the parties relating to the subject matter of this Agreement,
and may only be amended or modified in writing signed by all parties.

         21. WAIVER OF JURY TRIAL. THE LENDER AND THE HOLDINGS, AFTER CONSULTING
OR HAVING HAD THE OPPORTUNITY TO CONSULT WITH COUNSEL, KNOWINGLY, VOLUNTARILY
AND INTENTIONALLY WAIVE ANY RIGHT EITHER OF THEM MAY HAVE TO A TRIAL BY JURY IN
ANY LITIGATION BASED UPON OR ARISING OUT OF THIS AGREEMENT OR ANY RELATED
INSTRUMENT OR AGREEMENT, OR ANY OF THE TRANSACTIONS CONTEMPLATED BY THIS
AGREEMENT, OR ANY COURSE OF CONDUCT, DEALING, STATEMENTS (WHETHER OR AL OR
WRITTEN), OR ACTIONS OF EITHER OF THEM. NEITHER THE LENDER NOR THE HOLDINGS
SHALL SEEK TO CONSOLIDATE, BY COUNTERCLAIM OR OTHERWISE, ANY ACTION IN WHICH A
JURY TRIAL HAS BEEN WAIVED WITH ANY OTHER ACTION IN WHICH A JURY TRIAL CANNOT BE
OR HAS NOT BEEN WAIVED. THESE PROVISIONS SHALL NOT BE DEEMED TO HAVE BEEN
MODIFIED IN ANY RESPECT OR

                                       7
<PAGE>

         RELINQUISHED BY EITHER THE LENDER OR THE HOLDINGS EXCEPT BY A WRITTEN
INSTRUMENT EXECUTED BY BOTH OF THEM.

                                         IOM HOLDINGS, INC. a Nevada corporation

                                         BY:/S/ Tony Shahbaz
                                            ----------------

                                                NAME:Tony Shahbaz

                                                   TITLE: President/CEO

                                        GMAC COMMERCIAL FINANCE LLC

                                        BY:/S/ Kathryn Williams
                                           --------------------

                                                NAME: Kathryn Williams
                                                      ----------------

                                                   TITLE:Sr. Vice President
                                                         ------------------

Schedule 1:  List of Patents, Copyrights and Trademarks

                                       8
<PAGE>
<TABLE>
<CAPTION>

                                   SCHEDULE 1

         TRADEMARKS
         ----------

TRADEMARK                          REGISTRATION NUMBER        OWNER
---------                          -------------------        -----
<S>                                <C>                        <C>
DIGITAL RESEARCH TECHNOLOGIES      2254252                    IOM Holdings, Inc.
                                                              (licensed for use by
                                                              I/OMagic Corporation)

DIGITAL RESEARCH TECHNOLOGIES      2257795                    IOM Holdings, Inc.
and Design                                                    (licensed for use by
                                                              I/OMagic Corporation)

HI-VAL                             2119204                    IOM Holdings, Inc.
                                                              (licensed for use by
                                                              I/OMagic Corporation)

</TABLE>

         COPYRIGHTS
         ----------

         None.

         PATENTS
         -------

         None.Exhibit 10(AA)(4)(a)

EXHIBIT 10(AA)(4)(a)

CLECO CORPORATION

EXECUTIVE EMPLOYMENT AGREEMENT

(Level 1)

            THIS
AGREEMENT (the "Agreement") is entered into as of this 1st day
of October, 2003, by and between Michael H. Madison ("Executive"), and
Cleco Corporation, a Louisiana corporation (the "Company.)

1.  EMPLOYMENT AND TERM

            1.1       Position. 
The Company shall employ and retain Executive as its President and Chief Operating
Officer of Cleco Power LLC or in such other capacity or capacities as shall be
mutually agreed upon, from time to time, by Executive and the Company, and
Executive agrees to be so employed, subject to the terms and conditions set
forth herein. Executive's duties and responsibilities shall be those assigned
to his hereunder, from time to time, by the Chief Executive Officer of the
Company and shall include such duties as are the type and nature normally
assigned to similar executive officers of a corporation of the size, type and
stature of the Company.  Executive shall report to the Chief Executive
Officer.  

           1.2       Concurrent
Employment.  During the term of this Agreement, Executive and the Company
acknowledge that Executive may be concurrently employed by the Company and a
subsidiary or other entity with respect to which the Company owns (within the
meaning of Section 425(f) of the Internal Revenue Code of 1986, as amended (the
"Code")) 50% or more of the total combined voting power of all classes of stock
or other equity interests (an "Affiliate"), and that all of the terms and
conditions of this Agreement shall apply to such concurrent employment. 
Reference to the Company hereunder shall be deemed to include any such
concurrent employers.

            1.3       Full
Time and Attention.  During the term of this Agreement and any extensions
or renewals thereof, Executive shall devote his full time, attention and
energies to the business of the Company and will not, without the prior written
consent of the Chief Executive Officer of the Company, be engaged (whether or
not during normal business hours) in any other business or professional
activity, whether or not such activities are pursued for gain, profit or other
pecuniary advantage.  

            Notwithstanding
the foregoing, Executive shall not be prevented from (a) engaging in any civic
or charitable activity for which Executive receives no compensation or other
pecuniary advantage, (b) investing his personal assets in businesses which do
not compete with the Company, provided that such investment will not require
any services on the part of Executive in the operation of the affairs of the
businesses in which investments are made and provided further that Executive's
participation in such businesses is solely that of an investor, or (c)
purchasing securities in any corporation whose securities are regularly traded,
provided that such purchases will not result in Executive owning beneficially
at any time 5% or more of the equity securities of any corporation engaged in a
business competitive with that of the Company. 

            1.4       Term. 
Executive's employment under this Agreement shall commence as of October 1, 2003 
(the "Effective Date"), and shall terminate on October 1, 2006 (such date or
the last day of employment specified in any renewal or amendment hereof
referred to herein as the "Termination Date") (the period commencing as of the Effective
Date and ending as of the Termination Date referred to herein as the
"Employment Term").  

            Commencing
on the second anniversary of the Effective Date and each anniversary
thereafter, Executive's employment shall automatically be extended for an
additional one‐year period; provided, however, that either party may
provide written notice to the other that the Employment Term will not be
further extended, such notice to be provided not later than 30 days prior to
the end of the then current Employment Term.  

2.  COMPENSATION AND BENEFITS

            2.1       Base
Compensation.  The Company shall pay Executive an annual salary equal to his
annual base salary in effect as of the Effective Date, such amount shall be
prorated and paid in equal installments in accordance with the Company's
regular payroll practices and policies and shall be subject to applicable
withholding and other applicable taxes (Executive's "Base Compensation"). 
Executive's Base Compensation shall be reviewed no less often than annually and
may be increased or reduced by the Board of Directors of the Company (the
"Board"), in its sole discretion; provided, however, that Executive's Base
Compensation may not be reduced at any time unless such reduction is part of a
reduction in pay uniformly applicable to all officers of the Company.  

            2.2       Annual
Incentive Bonus.  In addition to the foregoing, Executive shall be eligible
for participation in the Annual Incentive Compensation Plan or similar bonus
arrangement maintained by the Company or an Affiliate or such other bonus or
incentive plans which the Company or its Affiliates may adopt, from time to
time, for similarly situated executives (an "Incentive Bonus").  

           2.3       Long-Term
Incentives.  In addition to the foregoing, Executive shall be eligible for
participation in the 2000 Long-Term Incentive Compensation Plan maintained by
the Company and such other long-term incentive plans which the Company or its
Affiliates may adopt, from time to time, for similarly situated executives (a
"Long-Term Incentive").

           2.4       Supplemental
Retirement Benefit.  In addition to the foregoing, Executive shall be
eligible to participate in the Supplemental Executive Retirement Plan
maintained by Cleco Utility Group Inc. or such other supplemental retirement
benefit plans which the Company or its Affiliates may adopt, from time to time,
for similarly situated executives (the "Supplemental Plan").

          2.5       Other
Benefits. During the term of this Agreement and in addition to the amounts
otherwise provided herein, Executive shall participate in such plans, policies,
and programs as may be maintained, from time to time, by the Company or its
Affiliates for the benefit of senior 

Page 2

executives
or employees, including, without limitation, profit sharing, life insurance,
and group medical and other welfare benefit plans.  Any such benefits shall be
determined in accordance with the specific terms and conditions of the
documents evidencing any such plans, policies, and programs. 

            2.6       Reimbursement
of Expenses.   The Company shall reimburse Executive for such reasonable
and necessary expenses as are incurred in carrying out his duties hereunder,
consistent with the Company's standard policies and annual budget.  The
Company's obligation to reimburse Executive hereunder shall be contingent upon
the presentment by Executive of an itemized accounting of such expenditures.

3.  TERMINATION

            3.1       Termination
Payments to Executive.  As set forth more fully in this Section 3 and
except as provided in Sections 3.3 or 3.8 hereof, Executive shall be paid the
greater of the amounts or benefits set forth below or the amounts or benefits
provided under the terms of the separate plan or arrangement maintained by the
Company (or its Affiliates) on account of termination of employment hereunder:

            a.         Executive's Base
Compensation accrued but not yet paid as of the date of his termination.  

            b.         Executive's Base
Compensation payable until the Termination Date (determined without regard to
the automatic renewal provisions of Section 1.4 hereof), but not less than 100%
of such annual Base Compensation.

            c.         Executive's
Incentive Bonus payable with respect to the year of his termination, prorated
to reflect Executive's actual period of service during such year.

            d.         Executive's Incentive Bonus payable in the
target amount for the year in which his termination of employment occurs. 

            e.         If Executive's
principal office is located in Pineville, Louisiana, the Company shall, at the
written request of Executive:

i.          Purchase his principal
residence if such residence is located within 60 miles of the Company's
Pineville, Louisiana office (the "Principal Residence") for an amount equal to
the greater of (1) the purchase price of such Principal Residence plus the
documented cost of any capital improvements to the Principal Residence made by
Executive, or (2) the fair market value of such Principal Residence as
determined by the Company's usual relocation practice; and 

ii.         Pay or reimburse Executive for the
cost of relocating Executive, his family and their household goods and other
personal property, in accordance with 

Page 3

the
Company's usual relocation practice, to any location in the United States.  

Notwithstanding the foregoing, the Company shall not
be obligated hereunder, unless, within 12 months after the termination of his
employment with the Company (and its Affiliates), the Company is requested to
purchase such Principal Residence or Executive has actually relocated from the
Pineville, Louisiana area.

            f.          If Executive
and/or his dependents elects to continue group medical coverage, within the
meaning of Code Section 4980B(f)(2), with respect to a group health plan
sponsored by the Company or an Affiliate (other than a health flexible spending
account under a self-insured medical reimbursement plan described in Code
Sections 125 and 105(h)), the Company shall pay the continuation coverage
premium for the same type and level of group health plan coverage received by
Executive and his electing dependents immediately prior to such termination of
Executive's employment for the maximum period provided under Code Section 4980B
or until the Executive secures other employment where group health insurance is
provided, whichever period is shorter.. 

            g.         Executive shall
be fully vested for purposes of any service or similar requirement imposed
under the Cleco Utility Group Inc. Supplemental Executive Retirement Plan (the
"Supplemental Plan"), regardless of the actual number of years of
service attained by Executive.  

Except
as expressly provided in Section 3.3 hereof, Executive shall also be entitled
to receive such compensation or benefits as may be provided under the terms of
a separate plan or amendment maintained by the Company (or its Affiliates) to
the extent such compensation or benefits are not duplicative of the
compensation or benefits described above.

            3.2       Termination
for Death or Disability.  If
Executive dies or becomes disabled during the Employment Term, this Agreement
and Executive's employment hereunder shall immediately terminate and the Company's
obligations hereunder shall automatically cease.  In such event, the Company
shall pay to Executive (or his estate) the amounts described in Sections 3.1a
and 3.1c hereof.  Payment shall be made in the form of one or more single-sums
as soon as practicable after Executive's death or disability or as and when
such amounts are ascertainable.

            For
purposes of this Section 3.2, Executive shall be deemed "disabled" if he is
actually receiving benefits or is eligible to receive benefits under the
Company's (or an Affiliate's) separate long-term disability plan. The Board
shall determine whether Executive is disabled hereunder.

            3.3       Company's
Termination for Cause.  This Agreement and Executive's employment hereunder
may be terminated by the Company on account of Cause.  In such event, the
Company shall pay to Executive the amount described in Section 3.1a hereof. 
Payment shall 

Page 4

be
made in the form of a single-sum not later than three days after such
termination.  Notwithstanding any provision of this Agreement or any other
plan, policy or agreement evidencing any other compensation arrangement or
benefit payable to Executive, no additional amount shall be paid to Executive,
except as may be required by law.

            For
purposes of this Agreement "Cause" means that Executive has:

            a.         Committed an
intentional act of fraud, embezzlement or theft in the course of his employment
or otherwise engaged in any intentional misconduct which is materially
injurious to the Company's (or an Affiliate's) financial condition or business
reputation;

            b.         Committed
intentional damage to the property of the Company (or an Affiliate) or
committed intentional wrongful disclosure of Confidential Information (as
defined in Section 5.2) which is materially injurious to the Company's (or an
Affiliate's) financial condition or business reputation; 

            c.         Intentionally
refused to perform the material duties of his position; or

            d.         A material breach
of this Agreement by Executive.

No
act or failure to act on the part of Executive will be deemed "intentional" if
it was due primarily to an error in judgment or negligence, but will be deemed
"intentional" only if done or omitted to be done by Executive not in good faith
and without reasonable belief that his action or omission was in the best
interest of the Company (or an Affiliate).  

            The
Board, acting in good faith, may terminate Executive's employment hereunder on
account of Cause (or may determine that any termination by the Company is on
account of Cause).  The Board shall provide written notice to Executive,
including a description of the specific reasons for the determination of
Cause.  Executive shall have the opportunity to appear before the Board, with
or without legal representation, to present arguments and evidence on his behalf. 
Following such presentation (or upon Executive's failure to appear), the Board,
by an affirmative vote of not less than 66% of its members, shall confirm that
the actions or inactions of Executive constitute Cause hereunder.

            3.4       Executive's
Constructive Termination. Executive may terminate this Agreement and his
employment hereunder on account of a Constructive Termination upon 30 days
prior written notice to the Chief Executive Officer (or such shorter period as
may be agreed upon by the parties hereto.)  In such event, the Company shall
provide to Executive (a) the amount described in Section 3.1a hereof, payable
not later than three days after his termination of employment, (b) the amounts
determined under Sections 3.1b and 3.1d hereof, payable in not more than two
equal installments, one-half not later than 30 days after termination and the
other one-half six months after such termination, and (c) the benefits
described in Sections 3.1e, 3.1f and 3.1g hereof.

Page 5

            For
purposes of this Agreement, "Constructive Termination" means:

            a.         A material
reduction (other than a reduction in pay uniformly applicable to all officers
of the Company) in the amount of Executive's Base Compensation; 

            b.         A material
reduction in Executive's authority, duties or responsibilities from those
contemplated in Section 1.1 of this Agreement; or

            c.         A material breach
of this Agreement by the Company or its Affiliates.

No
event or condition described in this Section 3.4 shall constitute a
Constructive Termination unless (a) Executive promptly gives the Company notice
of his objection to such event or condition, which notice may be provided
orally or in writing to the Chief Executive Officer or his designee, (b) such
event or condition is not corrected by the Company promptly after receipt of
such notice, but in no event more than 30 days after receipt of notice, and (c)
Executive resigns his employment with the Company (and all Affiliates) not more
than 15 days following the expiration of the 30-day period described in
subparagraph (b) hereof.  

            3.5       Termination
by the Company, without Cause.  The Company may terminate this Agreement
and Executive's employment hereunder, without Cause, upon 30 days prior written
notice to Executive (or such shorter period as may be agreed upon by Executive
and the Chief Executive officer).  In such event, the Company shall provide to
Executive (a) the amount described in Section 3.1a hereof, payable not later
than three days after such termination, (b) the amounts determined under Sections
3.1b and 3.1d hereof, payable in not more than two equal installments, one-half
not later than 30 days after termination and the other one-half six months
after such termination, and (c) the benefits described in Sections 3.1e, 3.1f
and 3.1g hereof.

            3.6       Termination
by Executive.  Executive may terminate this Agreement and his employment
hereunder, other than on account of Constructive Termination, upon 30 days
prior written notice to the Company or such shorter period as may be agreed upon
by the Chief Executive Officer and Executive.  In such event, the Company shall
pay to Executive the amount described in Section 3.1a hereof.  Payment shall be
made in the form of a single-sum not later than three days after such
termination.  No additional payments or benefits shall be due hereunder, except
as may be provided under a separate plan, policy or program evidencing such
compensation arrangement or benefit or as may be required by law.

            3.7       Return
of Property.  Upon termination of this Agreement for any reason, Executive
shall promptly return to the Company all of the property of the Company (and
its Affiliates), including, without limitation, automobiles, equipment,
computers, fax machines, portable telephones, printers, software, credit cards,
manuals, customer lists, financial data, letters, notes, notebooks, reports and
copies of any of the above and any Confidential Information (as defined in
Section 5.2 hereof) that is in the possession or under the control of
Executive. 

Page 6

            3.8       Consideration
for Other Agreements.  Executive acknowledges that all or a portion of the
amount payable under Section 3.1d hereof is in excess of the amount otherwise
due or payable under the Annual Incentive Compensation Plan and that the
payment of such excess amount shall constitute adequate consideration for the
execution of such separate waivers or releases as the Company (or Affiliate)
may request Executive to execute in connection with the termination of his
employment hereunder.  Executive agrees that failure to execute any such waiver
or release within the time request by the Company shall result in the
forfeiture of the excess amount payable under Section 3.1d hereof.

4.  CHANGE IN CONTROL AND BUSINESS TRANSACTION

            4.1       Definitions.
 The terms "Change in Control" and "Business Transaction" shall have
the meanings ascribed to them in the Cleco Corporation 2000 Long-Term Incentive
Compensation Plan, as the same may be amended from time to time.

            The
term "Good Reason," when used herein, shall mean that in connection with a
Change in Control: 

            a.         Executive's Base
Compensation in effect immediately before such Change in Control is reduced or
there is a significant reduction or termination of Executive's rights to any
employee benefit in effect immediately prior to the Change in Control;

            b.         Executive's
authority, duties or responsibilities are significantly reduced from those
contemplated in Section 1.1 hereof or Executive has reasonably determined that,
as a result of a change in circumstances that significantly affects his
employment with the Company (or an Affiliate), he is unable to exercise the
authority, power, duties and responsibilities contemplated in Section 1.1
hereof;

            c.         Executive is
required to be away from his office in the course of discharging his duties and
responsibilities under this Agreement significantly more than was required
prior to the Change in Control; or

            d.         Executive is
required to transfer to an office or business location located more than 60
miles from the location to which he was assigned prior to the Change in
Control.

No
event or condition described in this Section 4.1 shall constitute Good Reason
unless (a) Executive gives the Company notice of his objection to such event or
condition within a reasonable period after Executive learns of such event,
which notice may be delivered orally or in writing to the Chief Executive
Officer (or his designee), (b) such event or condition is not promptly
corrected by the Company, but in no event later than 30 days after receipt of
such notice, and (c) Executive resigns his employment with the Company (and its
Affiliates) not more than 60 days following the expiration of the 30-day period
described in subparagraph (b) hereof.   

Page 7

            4.2       Termination
In Connection With a Change in Control.  If Executive's employment
described herein is terminated by the Company, without Cause (as defined in
Section 3.3 hereof), or Executive terminates his employment hereunder for Good
Reason at any time within the 60-day period preceding or 36-month period
following such Change in Control, then notwithstanding any provision of this
Agreement to the contrary and in lieu of any compensation or benefits otherwise
payable hereunder:

            a.         The Company shall
pay to Executive the amount described in Section 3.1a in the form of a
single-sum not later than three days after such termination.

            b.         The Company shall
pay an amount equal to three times Executive's "base amount," payable in the
form of a single-sum not later than 30 days after such termination.  For
purposes of this agreement, "base amount" is defined as the Executive's current
annual base compensation and target amount payable under the Company's annual
incentive plan.

            c.         The Company shall
provide to Executive and his dependents coverage under the Company's or an
Affiliate's group medical plan for the same type and level of health benefits
received by Executive and his dependents immediately prior to such termination
for a period of three years or until Executive and/or his dependents obtain
coverage under a reasonably satisfactory group health plan with no applicable
preexisting condition limitation, whichever comes first; such coverage to be in
addition to any coverage available to Executive and his dependents under Code
Section 4980B. 

            d.         Vesting shall be
accelerated, any restrictions shall lapse, and all performance objectives shall
be deemed satisfied as to any outstanding grants or awards made to Executive
under the 2000 Long-Term Incentive Compensation Plan. Executive shall be
entitled to such additional benefits or rights as may be provided in the
documents evidencing such plans or the terms of any agreement evidencing such
grant or award.

            e.         Executive shall
be fully vested for purposes of any service or similar requirement imposed
under the Supplemental Plan, regardless of the actual number of years of
service attained by Executive.  Executive shall be credited with an additional
three years of age for purposes of determining his benefit percentage under the
Supplemental Plan, but in no event shall such benefit percentage be less than
50%; and Executive shall be credited with an additional three years of age for
purposes of determining any reduction taken with respect to benefits commencing
before Executive's normal retirement date (as defined in such plan).

            f.          If Executive's
principal office is located in Pineville, Louisiana, the Company shall, at the
written request of Executive:

Page 8

i.          Purchase his principal
residence if such residence is located within 60 miles of the Company's
Pineville, Louisiana office (the "Principal Residence") for an amount equal to
the greater of (1) the purchase price of such Principal Residence plus the
documented cost of any capital improvements to the Principal Residence made by
Executive, or (2) the fair market value of such Principal Residence as
determined by the Company's usual relocation practice; and 

                        ii.          Pay
or reimburse Executive for the cost of relocating Executive, his family and
their household goods and other personal property, in accordance with the
Company's usual relocation practice, to any location in the United States.  

Notwithstanding the foregoing, the Company shall not
be obligated hereunder, unless, within 12 months after the termination of his
employment with the Company (and its Affiliates), the Company is requested to
purchase such Principal Residence or Executive has actually relocated from the
Pineville, Louisiana area.

            g.         The Company shall
pay to Executive an amount equal to the Company's (including all Affiliates)
maximum matching contribution obligation under the Cleco Corporation 401(k)
Savings and Investment Plan, as the same may be amended from time to time, for
each of the three years immediately following Executive's termination of
employment, determined as if Executive was credited with at least 1,000 hours
of service in each such plan year, was employed as of the last day of each plan
year, and contributed the maximum permissible amount under Code Section 402(g)
in each such year, but determined using the amount in effect as of the date of
Executive's termination of employment; such amount shall be paid in the form of
a single-sum not later than 30 days after Executive's termination of employment
hereunder.

           4.3       Business
Transaction. If Executive's employment hereunder is terminated (other than
on account of Cause as defined in Section 3.3 hereof) in connection with a
Business Transaction, then notwithstanding any provision of this Agreement to
the contrary, the Company shall pay or provide to Executive (a) the amount
described in Section 3.1a hereof, payable not later than three days after his
termination of employment, (b) the amounts determined under Sections 3.1b and
3.1d hereof, payable in not more than two equal installments, one-half not
later than 30 days after termination and the other one-half six months after
such termination, and (c) the benefits described in Sections 3.1e and 3.1f and
4.2e and 4.2f hereof.

4.4      
Tax Payment.  If any payment to Executive pursuant to this
Agreement or any other payment or benefit from the Company or an Affiliate in
connection with a Change in Control or Business Transaction is subject to the
excise tax imposed under Code Section 4999 or any similar excise or penalty tax
payable under any United States federal, state, local or other 

Page 9

law,
the Company shall pay an amount to Executive such that, after the payment by
Executive of all taxes on such amount, there remains a balance sufficient to
pay such excise or penalty tax.  Executive shall submit to the Company the
amount to be paid under this Section 4.4, together with supporting
documentation.  If Executive and the Company disagree as to such amount, an
independent public accounting firm agreed upon by Executive and the Company
shall make such determination.

5.  LIMITATIONS ON ACTIVITIES

           
5.1.      Consideration
for Limitation on Activities.  Executive acknowledges that the execution of
this Agreement and the payments described herein constitute consideration for
the limitations on activities set forth in this Section 5, the adequacy of
which is hereby expressly acknowledged by Executive.

             5.2       Confidential
Information.  Executive recognizes
and acknowledges that during the terms of his employment, he will have access
to confidential, proprietary, non-public information concerning the Company and
its Affiliates, which may include, without limitation, (a) books and records
relating to operations, finance, accounting, personnel and management, (b)
price, rate and volume data, future price and rate plans, and test data, (c)
information related to product design and development, (d) computer software,
customer lists, information obtained on competitors, and sales tactics, and (e)
various other non-public trade or business information, including business
opportunities, marketing or business diversification plans, methods and
processes, and financial data and the like (collectively, the "Confidential
Information").  Executive agrees that he will not at any time, either while
employed by the Company or afterwards, make any independent use of, or disclose
to any other person or organization (except as authorized by the Company or
pursuant to court order) any of the Confidential Information.

            5.3       Non-Solicitation. 
Executive agrees that during the one-year period commencing as of the date
of voluntary termination by Executive (as described in Section 3.6 hereof) or
the involuntary termination of Executive on account of Cause (as described in
Section 3.3 hereof), he shall not, directly or indirectly, for his own benefit
or on behalf of another or to the Company's (or an Affiliate's) detriment:

            a.         Hire or offer to
hire any of the Company's (or Affiliate's) officers, employees or agents;

            b.         Persuade or
attempt to persuade in any manner any officer, employee or agent of the Company
(or an Affiliate) to discontinue any relationship with the Company; or 

            c.         Solicit or divert
or attempt to divert any customer or supplier of the Company or an Affiliate.

The
provisions of this Section 5.3 shall apply in the locations set forth on
Exhibit A hereto, as the same may be amended from time to time.  Executive
acknowledges that the Company (or its 

Page 10

Affiliates)
is presently doing business in such locations and that during the Employment
Term Executive will be required to provide services to or for the benefit of
the Company (or its Affiliates) in such locations.

            The
parties agree that each of the foregoing prohibitions is intended to constitute
a separate restriction.  Accordingly, should any such prohibition be declared
invalid or unenforceable, such prohibition shall be deemed severable from and
shall not affect the remainder thereof.  The parties further agree that each of
the foregoing restrictions is reasonable in both time and geographic scope.  

            5.4       Business
Reputation.  Executive agrees that
during his employment with the Company (and its Affiliate) and at all times
thereafter, he shall refrain from performing any act, engaging in any conduct
or course of action or making or publishing an adverse, untrue or misleading
statement which has or may reasonably have the effect of demeaning the name or
business reputation of the Company or its Affiliates or which adversely affects
(or may reasonably adversely affect) the best interests (economic or otherwise)
of the Company or an Affiliate.

             5.5       Remedies.  In the event of a breach or threatened
breach by Executive of the provisions of Sections 5.2, 5.3 or 5.4 hereof,
Executive agrees that the Company shall be entitled to a temporary restraining
order or a preliminary injunction (without the necessity of posting bond in
connection therewith) and that any additional payments or benefits due to
Executive or his dependents under Sections 3 and 4 hereof shall be canceled and
forfeited.  Nothing herein shall be construed as prohibiting the Company from
pursuing any other remedy available to it for such breach or threatened breach,
including the recovery of damages from Executive.

6.  MISCELLANEOUS

            6.1       Mitigation
Not Required.  As a condition of any payment hereunder, Executive shall not
be required to mitigate the amount of such payment by seeking other employment
or otherwise, nor will any profits, income, earnings or other benefits from any
source whatsoever create any mitigation, offset, reduction or any other obligation
on the part of Executive under this Agreement. 

            6.2       Enforcement
of this Agreement.  In the event any dispute in connection with this
Agreement arises with respect to obligations of Executive or the Company that
were required prior to the occurrence of a Change in Control or a Business
Transaction, all costs, fees and expenses, including attorney fees, of any
litigation, arbitration or other legal action in connection with such matters
in which Executive substantially prevails, shall be borne by, and be the
obligation of, the Company. 

            After
a Change in Control or Business Transaction has occurred, Executive shall not
be required to incur legal fees and the related expenses associated with the
interpretation, enforcement or defense of Executive's rights under this
Agreement by litigation or otherwise.  Accordingly, if, following a Change in
Control or Business Transaction, the Company has failed 

Page 11

to
comply with any of its obligations under this Agreement or the Company or any
other person takes or threatens to take any action to declare this Agreement
void or unenforceable or in any way reduce the possibility of collecting the
amounts due hereunder, or institutes any litigation or other action or
proceeding designed to deny or to recover from Executive the benefits provided
or intended to be provided under this Agreement, Executive shall be entitled to
retain counsel of Executive's choice, at the expense of the Company, to advise
and represent Executive in connection with any such interpretation, enforcement
or defense, including without limitation the initiation or defense of any
litigation, arbitration or other legal action, whether by or against the
Company or any director, officer, stockholder or other person affiliated with
the Company, in any jurisdiction.  The Company shall pay and be solely
financially responsible for any and all attorneys' and related fees and
expenses incurred by Executive in connection with any of the foregoing, without
regard to whether Executive prevails, in whole or in part. 

            In
no event shall Executive be required to reimburse the Company for any of the
costs and expenses incurred by the Company relating to arbitration, litigation
or other legal action in connection with this Agreement. 

            6.3       No
Set-Off.   There shall be no right of set‐off or counterclaim in
respect of any claim, debt or obligation against any payment to Executive
provided for in this Agreement. 

            6.4       Assistance
with Litigation.  For a period of one year after the end of the last period
for which Executive will have received any compensation under this Agreement,
Executive will furnish such information and proper assistance as may be
reasonably necessary in connection with any litigation in which the Company (or
an Affiliate) is then or may become involved. 

            6.5       Headings.  Section and other headings contained in this
Agreement are for reference purposes only and shall not affect in any way the
meaning or interpretation of this Agreement.

            6.6       Entire
Agreement.  This Agreement constitutes the entire understanding and
agreement among the parties hereto with respect to the subject matter hereof,
and there are no other agreements, understandings, restrictions,
representations or warranties among the parties other than those set forth
herein.

            6.7       Amendments. 
This Agreement may be amended or modified at any time in any or all
respects, but only by an instrument in writing executed by the parties hereto.

            6.8       Choice
of Law.  The validity of this Agreement, the construction of its terms, and
the determination of the rights and duties of the parties hereto shall be
governed by and construed in accordance with the internal laws of the State of
Louisiana applicable to contracts made to be performed wholly within such
state.

            6.9       Notices. 
All notices and other communications under this Agreement must be in
writing and will be deemed to have been duly given when (a) delivered by hand,
(b) sent by 

Page 12

telecopier
to a telecopier number given below, provided that a copy is sent by a
nationally recognized overnight delivery service (receipt requested), or (c)
when received by the addressee, if sent by a nationally recognized overnight
delivery service (receipt requested), in each case as follows:

                        If to Executive:              Michael
H. Madison 

                                                            6417
Genevieve

                                                            Alexandria,
LA  71303

 

                        If to the Company:        Cleco
Corporation

                                                            2030
Donahue Ferry Road

                                                            Pineville,
LA 71360

                                                            Attention:
Chief Executive Officer 

                                                            Telecopier:  
(318) 484-7777

                                                                 

or
to such other addresses as a party may designate by notice to the other party.

            6.10     Assignment. 
This Agreement will inure to the benefit of and be binding upon the
Company, its Affiliates, successors and assigns, including, without limitation,
any person, partnership, company, corporation or other entity that may acquire
substantially all of the Company's assets or business or with or into which the
Company may be liquidated, consolidated, merged or otherwise combined, and will
inure to the benefit of and be binding upon Executive, his heirs, estate,
legatees and legal representatives.  If payments become payable to Executive's
surviving spouse or other assigns and such person thereafter dies, such payment
will revert to Executive's estate. 

            6.11     Severability. 
Each provision of this Agreement is intended to be severable.  In the event
that any one or more of the provisions contained in this Agreement shall for
any reason be held to be invalid, illegal or unenforceable, the same shall not
affect the validity or enforceability of any other provision of this Agreement,
but this Agreement shall be construed as if such invalid, illegal or
unenforceable provisions was not contained herein.  Notwithstanding the
foregoing, however, no provision shall be severed if it is clearly apparent under
the circumstances that the parties would not have entered into this Agreement
without such provision.

            6.12     Withholding. 
The Company (or an Affiliate) may withhold from any payment hereunder any
federal, state or local taxes required to be withheld.

           6.13     Survival. 
 Notwithstanding anything herein to the contrary, to the extent applicable,
the obligations of the Company (and its Affiliates) under Sections 3 and 4, and
the obligations of Executive under Sections 3 and 5, shall remain operative and
in full force and effect regardless of the expiration of this Agreement.

             6.14     Waiver.  The failure of either party to insist in any one or
more instances upon performance of any terms or conditions of this Agreement
will not be construed as a waiver of 

Page 13

future
performance of any such term, covenant, or condition and the obligations of
either party with respect to such term, covenant or condition will continue in
full force and effect. 

            THIS
AGREEMENT is executed in multiple counterparts as of the dates set forth
below, each of which shall be deemed an original, to be effective as of the
Effective Date designated above.

CLECO
CORPORATION                                        EXECUTIVE

 

By:
 /s/  Catherine C. Powell                                         /s/
 Michael H. Madison                              

                                                                                   
      Michael
H. Madison

 

Its: 
Sr. V.P. - Corporate Services                                                                                                       

 

Date: 
October 1, 2003                                                Date:  November
7, 2003                                                                                       

 

Page 14

CLECO CORPORATION

EXECUTIVE EMPLOYMENT AGREEMENT

EXHIBIT A

            This
Exhibit A is intended to form a part of that certain Executive Employment
Agreement by and between Cleco Corporation and Michael H. Madison, effective
as of October 1, 2003.   The parties agree that the proscriptions set forth in
Section 5.3 thereof shall apply in the State of Louisiana, Parishes of:

Acadia
Parish

Allen Parish

Avoyelles Parish

Beauregard Parish

Calcasieu Parish

Catahoula Parish

Desoto Parish

Evangeline Parish

Grant Parish

Iberia Parish

Jefferson Davis Parish

Lafayette Parish

Lasalle Parish

Natchitoches Parish

Rapides Parish

Red River Parish

Sabine Parish

St. Landry Parish

St. Martin Parish

St. Mary Parish

St. Tammany Parish

Vernon Parish

Washington Parish

Executive and the Company agree that the Company shall
amend this Exhibit A, from time to time, to eliminate Parishes in which the
Company is no longer doing business and to add Parishes in which the Company is
currently doing business.

Page 15

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