Document:

Exhibit 10.1

     

    STORM RECOVERY PROPERTY SERVICING AGREEMENT

     

    by and between

     

    CLECO SECURITIZATION I LLC

     

    Issuer

     

    and

     

    CLECO POWER LLC

     

    Servicer

     

    Acknowledged and Accepted by

     

    THE BANK OF NEW YORK MELLON TRUST COMPANY, NATIONAL

     ASSOCIATION, as Indenture Trustee

     

    Dated as of [                          ], 2022

     

    
      
        

    

    
    TABLE OF CONTENTS

     

    	
            ARTICLE I DEFINITIONS

          	
            1

          
	 	
            Section 1.01

          	
            DEFINITIONS.

          	
            1

          
	 	
            Section 1.02

          	
            OTHER DEFINITIONAL PROVISIONS.

          	
            2

            

          
	
            ARTICLE II APPOINTMENT AND AUTHORIZATION OF SERVICER

          	
            2

          
	 	
            Section 2.01

          	
            APPOINTMENT OF THE SERVICER; ACCEPTANCE OF APPOINTMENT.

          	
            2

          
	 	
            Section 2.02

          	
            AUTHORIZATION.

          	
            2

          
	 	
            Section 2.03

          	
            DOMINION AND CONTROL OVER STORM RECOVERY PROPERTY.

          	
            2

          
	
            ARTICLE III BILLING AND OTHER SERVICES

          	
            3

          
	 	
            Section 3.01

          	
            DUTIES OF THE SERVICER.

          	
            3

          
	 	
            Section 3.02

          	
            SERVICING AND MAINTENANCE STANDARDS.

          	
            6

          
	 	
            Section 3.03

          	
            ANNUAL REPORTS ON COMPLIANCE WITH REGULATION AB.

          	
            7

          
	 	
            Section 3.04

          	
            ANNUAL REGISTERED INDEPENDENT PUBLIC ACCOUNTING FIRM REPORT.

          	
            8

          
	 	
            Section 3.05

          	
            THIRD-PARTY SUPPLIERS.

          	
            9

          
	
            ARTICLE IV SERVICES RELATED TO STORM RECOVERY CHARGE ADJUSTMENTS AND ALLOCATION ADJUSTMENTS

          	
            9

          
	 	
            Section 4.01

          	
            STORM RECOVERY CHARGE ADJUSTMENTS.

          	
            9

          
	 	
            Section 4.02

          	
            LIMITATION OF LIABILITY

          	
            12

          
	
            ARTICLE V THE STORM RECOVERY PROPERTY

          	
            13

          
	 	
            Section 5.01

          	
            CUSTODY OF STORM RECOVERY PROPERTY RECORDS.

          	
            13

          
	 	
            Section 5.02

          	
            DUTIES OF SERVICER AS CUSTODIAN.

          	
            13

          
	 	
            Section 5.03

          	
            CUSTODIAN’S INDEMNIFICATION.

          	
            15

          
	 	
            Section 5.04

          	
            EFFECTIVE PERIOD AND TERMINATION.

          	
            15

          
	
            ARTICLE VI THE SERVICER

          	
            15

          
	 	
            Section 6.01

          	
            REPRESENTATIONS AND WARRANTIES OF THE SERVICER.

          	
            15

          
	 	
            Section 6.02

          	
            INDEMNITIES OF THE SERVICER; RELEASE OF CLAIMS.

          	
            17

          
	 	
            Section 6.03

          	
            MERGER OR CONSOLIDATION OF, OR ASSUMPTION OF THE OBLIGATIONS OF, THE SERVICER.

          	
            21

          
	 	
            Section 6.04

          	
            ASSIGNMENT OF THE SERVICER’S OBLIGATIONS.

          	
            23

          
	 	
            Section 6.05

          	
            LIMITATION ON LIABILITY OF THE SERVICER AND OTHERS.

          	
            23

          
	 	
            Section 6.06

          	
            CLECO POWER NOT TO RESIGN AS SERVICER.

          	
            23

          
	 	
            Section 6.07

          	
            SERVICING FEE.

          	
            24

          
	 	
            Section 6.08

          	
            COMPLIANCE WITH APPLICABLE LAW.

          	
            24

          
	 	
            Section 6.09

          	
            SERVICER EXPENSES.

          	
            25

          
	 	
            Section 6.10

          	
            APPOINTMENTS.

          	
            25

          
	 	
            Section 6.11

          	
            NO SERVICER ADVANCES.

          	
            25

          
	 	
            Section 6.12

          	
            REMITTANCES.

          	
            25

          
	 	
            Section 6.13

          	
            PROTECTION OF TITLE.

          	
            26

          
	 	
            Section 6.14

          	
            MAINTENANCE OF OPERATIONS.

          	
            26

          

     

    
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            ARTICLE VII SERVICER DEFAULT

          	
            26

          
	 	
            Section 7.01

          	
            SERVICER DEFAULT.

          	
            26

          
	 	
            Section 7.02

          	
            NOTICE OF SERVICER DEFAULT.

          	
            28

          
	 	
            Section 7.03

          	
            WAIVER OF PAST DEFAULTS.

          	
            28

          
	 	
            Section 7.04

          	
            APPOINTMENT OF SUCCESSOR.

          	
            29

          
	 	
            Section 7.05

          	
            COOPERATION WITH SUCCESSOR.

          	
            29

          
	
            ARTICLE VIII MISCELLANEOUS PROVISIONS

          	
            30

            

          
	 	
            Section 8.01

          	
            AMENDMENT.

          	
            30

            

          
	 	
            Section 8.02

          	
            NOTICES.

          	
            30

          
	 	
            Section 8.03

          	
            ASSIGNMENT.

          	
            31

          
	 	
            Section 8.04

          	
            LIMITATIONS ON RIGHTS OF OTHERS.

          	
            31

          
	 	
            Section 8.05

          	
            SEVERABILITY.

          	
            31

          
	 	
            Section 8.06

          	
            SEPARATE COUNTERPARTS.

          	
            31

          
	 	
            Section 8.07

          	
            HEADINGS.

          	
            31

          
	 	
            Section 8.08

          	
            GOVERNING LAW.

          	
            32

          
	 	
            Section 8.09

          	
            PLEDGE TO THE TRUSTEE.

          	
            32

          
	 	
            Section 8.10

          	
            NONPETITION COVENANTS.

          	
            32

          
	 	
            Section 8.11

          	
            TERMINATION.

          	
            32

          
	 	
            Section 8.12

          	
            LPSC CONSENT.

          	
            32

          
	 	
            Section 8.13

          	
            LIMITATION OF LIABILITY.

          	
            33

          
	 	
            Section 8.14

          	
            RULE 17g-5  COMPLIANCE.

          	
            33

          
	 	
            Section 8.15

          	
            TRUSTEE ACTIONS.

          	
            33

          
	 	 	 	 
	
            SCHEDULE A TO SERVICING AGREEMENT

          	 
	
            EXHIBIT A – MONTHLY SERVICER’S CERTIFICATE

          	 
	
            EXHIBIT B – SEMI-ANNUAL SERVICER’S CERTIFICATE

          	 
	
            EXHIBIT C-1 SERVICER’S ANNUAL COMPLIANCE CERTIFICATE

          	 
	
            EXHIBIT C-2 CERTIFICATE OF COMPLIANCE

          	 
	
            ANNEX 1 TO SERVICING AGREEMENT

          	 
	
            APPENDIX A – MASTER DEFINITIONS

          	 

    

    

    
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    STORM RECOVERY PROPERTY SERVICING AGREEMENT dated as of [               ], 2022 (this “Agreement”) by and between CLECO SECURITIZATION I LLC, a Louisiana limited liability company (the “Issuer”), and CLECO POWER LLC, a
      Louisiana limited liability company (“Cleco Power”), as the servicer of the Storm Recovery Property hereunder (together with each successor to Cleco Power in such capacity pursuant to Section 6.03 or 7.04, the “Servicer”), and acknowledged and
      accepted by THE BANK OF NEW YORK MELLON TRUST COMPANY, NATIONAL ASSOCIATION, a national banking association, as Indenture Trustee.

     

    WHEREAS, pursuant to the Securitization Act and the Financing Order, Cleco Power, in its capacity as seller (the “Seller”), and the Issuer are concurrently entering into the Sale Agreement dated as of the date hereof
      pursuant to which the Seller is selling and the Issuer is purchasing the Storm Recovery Property created pursuant to the Securitization Act and the Financing Order described therein;

     

    WHEREAS the Servicer is willing to service the Storm Recovery Property purchased from the Seller by the Issuer;

     

    WHEREAS the Issuer, in connection with the ownership of the Storm Recovery Property and in order to collect the Storm Recovery Charges, desires to engage the Servicer to carry out the functions described herein and the
      Servicer desires to be so engaged;

     

    WHEREAS, the Storm Recovery Charges will be itemized on Customers’ Bills and the SRC Collections initially will be commingled with other funds collected from Customers;

     

    WHEREAS, the Financing Order calls for the Servicer to execute a servicing agreement with the Issuer pursuant to which the Servicer will be required, among other things, to impose and collect applicable Storm Recovery
      Charges for the benefit and account of the Issuer, to make periodic Storm Recovery Charge Adjustments required or allowed by the Financing Order, and to account for and remit the applicable Storm Recovery Charges to the Trustee on behalf and for the
      account of the Issuer in accordance with the remittance procedures contained hereunder without any deduction or surcharge of any kind; and

     

    WHEREAS, the Financing Order provides that the LPSC will enforce the obligations imposed by the Financing Order, the LPSC’s applicable substantive rules, and applicable statutory provisions.

     

    NOW, THEREFORE, in consideration of the premises and the mutual covenants herein contained and intending to be legally bound hereby, the parties hereto agree as follows:

     

    ARTICLE I

     

    DEFINITIONS

     

    Section 1.01          DEFINITIONS. Capitalized terms used but not otherwise defined in this Agreement have the respective meanings set forth in Appendix A hereto.

     

    
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    Section 1.02          OTHER DEFINITIONAL PROVISIONS.

     

    (a)          The words “hereof,” “herein,” “hereunder” and words of similar import when used in this Agreement shall refer to this Agreement as a whole and not
      to any particular provision of this Agreement; Section, Appendix, Annex, Exhibit and Schedule references contained in this Agreement are references to Sections, Appendices, Annexes, Exhibits and Schedules in or to this Agreement unless otherwise
      specified; and the term “including” shall mean “including without limitation.”

     

    (b)          The definitions contained in this Agreement are applicable to the singular as well as the plural forms of such terms.

     

    (c)          All terms defined in this Agreement have the same defined meanings when used in any certificate or other document made or delivered pursuant to
      this Agreement unless otherwise defined therein.

     

    ARTICLE II

     

    APPOINTMENT AND AUTHORIZATION OF SERVICER

     

    Section 2.01          APPOINTMENT OF THE SERVICER; ACCEPTANCE OF APPOINTMENT.  The Issuer hereby appoints the Servicer, and the Servicer hereby accepts such appointment, to
      perform the Servicer’s obligations pursuant to this Agreement on behalf of and for the benefit of the Issuer or any assignee thereof in accordance with the terms of this Agreement and applicable law. This appointment and the Servicer’s acceptance
      thereof may not be revoked except in accordance with the express terms of this Agreement.

     

    Section 2.02          AUTHORIZATION.  With respect to all or any portion of the Storm Recovery Property, the Servicer shall be, and hereby is, authorized and empowered by the
      Issuer to:

     

    (a)           execute and deliver, on behalf of itself or the Issuer, as the case may be, any and all instruments, documents or notices, and

     

    (b)          on behalf of itself or the Issuer, as the case may be, make any filing and participate in Proceedings related to the duties of the Servicer
      hereunder with any governmental authorities, including with the LPSC.

     

    The Issuer shall furnish the Servicer with all executed documents as have been prepared by the Servicer for execution by the Issuer, and with such other documents as may be in the Issuer’s possession, as necessary or appropriate to enable the
      Servicer to carry out its servicing and administrative duties hereunder. Upon the written request of the Servicer, the Issuer shall furnish the Servicer with any powers of attorney or other documents necessary or appropriate to enable the Servicer to
      carry out its duties hereunder.

     

    Section 2.03          DOMINION AND CONTROL OVER STORM RECOVERY PROPERTY.  Notwithstanding any other provision contained herein, the Servicer and the Issuer agree that the Issuer
      shall have dominion and control over the Storm Recovery Property, and the Servicer, in accordance with the terms hereof, is acting solely as the servicing agent of and custodian for the Issuer with respect to the Storm Recovery Property and Storm
      Recovery Property Documentation. The Servicer hereby agrees that it shall not take any action that is not authorized by this Agreement, the Securitization Act or the Financing Order, that is not consistent with its customary procedures and practices,
      or that shall impair the rights of the Issuer with respect to the Storm Recovery Property, in each case unless such action is required by law or court or regulatory order.

     

    
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    ARTICLE III

     

    BILLING AND OTHER SERVICES

     

    Section 3.01          DUTIES OF THE SERVICER. The Servicer, as agent for the Issuer (to the extent provided herein), shall have the following duties:

     

    (a)          Duties of Servicer Generally. The Servicer shall manage, service, administer and make collections in
      respect of the Storm Recovery Property. The Servicer’s duties will include:

     

     (i)          calculating and billing the Storm Recovery Charges;

     

     (ii)         obtaining meter reads;

     

     (iii)        accounting for Storm Recovery Charges;

     

     (iv)        investigating and resolving delinquencies (and furnishing required reports with respect to such delinquencies to the Issuer);

     

     (v)         processing and depositing collections and making periodic remittances;

     

     (vi)        furnishing required periodic reports to the Issuer, the Trustee, the LPSC and the Rating Agencies;

     

     (vii)       monitoring Customer payments of Storm Recovery Charges;

     

     (viii)      notifying each Customer of any defaults in its payment obligations and other obligations (including its credit standards), and following such
      collection procedures as it follows with respect to comparable assets that it services for itself or others;

     

     (ix)        collecting payments of Storm Recovery Charges and payments with respect to Storm Recovery Property from all persons or entities responsible for
      paying Storm Recovery Charges and other payments with respect to Storm Recovery Property to the Servicer under the Financing Order, the Securitization Act, LPSC Regulations or applicable tariffs and remitting these collections to the Trustee;

     

    
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     (x)         responding to inquiries by Customers, the LPSC or any other Governmental Authority with respect to the Storm Recovery Property and the Storm
      Recovery Charges;

     

     (xi)        making all required filings with the LPSC and taking such other action as may be necessary to perfect the Issuer’s ownership interests in and the
      Trustee’s first priority Lien on the Storm Recovery Property; making all filings and taking such other action as may be necessary to perfect and maintain the perfection and priority of and the other portions of the Trust Estate under the Indenture;

     

     (xii)       selling, as the agent for the Issuer, as its interest may appear, defaulted or written-off accounts in accordance with the Servicer’s usual and
      customary practices;

     

     (xiii)      taking action in connection with Storm Recovery Charge Adjustments and allocation of the charges among various classes of Customers as is set
      forth herein and pursuant to the Financing Order;

     

     (xiv)      any other duties specified for a servicer under the Financing Order or other applicable law.

     

     Anything to the contrary notwithstanding, the duties of the Servicer set forth in this Agreement shall be qualified in their entirety by, and the Servicer shall at all times comply with, the Financing Order, the Securitization Act and any LPSC
      Regulations, and the federal securities laws and the rules and regulations promulgated thereunder, including Regulation AB, as in effect at the time such duties are to be performed. Without limiting the generality of this Section 3.01(a), in
      furtherance of the foregoing, the Servicer hereby agrees that it shall also have, and shall comply with, the duties and responsibilities relating to data acquisition, usage and bill calculation, billing, customer service functions, collections,
      payment processing and remittance set forth in the Issuer Annex hereto, as it may be amended from time to time. For the avoidance of doubt, the term “usage” when used herein refers to both kilowatt hour consumption and kilowatt demand.

     

    (b)          Reporting Functions.

     

     (i)          Monthly Servicer’s Certificate. On or before the last Servicer Business Day of each month, the Servicer shall prepare and deliver to the
      Issuer, the Trustee, the LPSC and the Rating Agencies a written report substantially in the form of Exhibit A (a “Monthly Servicer’s Certificate”) setting forth certain information relating to Storm
      Recovery Charge Payments in connection with the Storm Recovery Charges received by the Servicer during the Collection Period preceding such date; provided, however, that, for any month in which the Servicer is required to deliver a Semi-Annual
      Servicer’s Certificate pursuant to Section 4.01(g)(i), the Servicer shall prepare and deliver the Monthly Servicer’s Certificate no later than the date of delivery of such Semi-Annual Servicer’s Certificate.

     

    
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     (ii)         Notification of Laws and Regulations. The Servicer shall immediately notify the Issuer, the LPSC, the
      Trustee and each Rating Agency in writing when it becomes aware of any Requirement of Law or LPSC Regulations, orders or directions hereafter promulgated that have a material adverse effect on the Servicer’s ability to perform its duties under this
      Agreement.

     

     (iii)        Other Information. Upon the reasonable request of the Issuer, the Trustee, the LPSC or any Rating
      Agency, the Servicer shall provide to the Issuer, the Trustee, the LPSC or such Rating Agency, as the case may be, any public financial information in respect of the Servicer, or any material information regarding the Storm Recovery Property to the
      extent it is reasonably available to the Servicer, that may be reasonably necessary and permitted by law for the Issuer, the Trustee, the LPSC or such Rating Agency to monitor the performance by the Servicer hereunder; provided however, that any such
      request by the Trustee shall not create any obligation for the Trustee to monitor the performance of the Servicer. In addition, so long as any of the Storm Recovery Bonds are Outstanding, the Servicer shall provide to the Issuer, to the LPSC and to
      the Trustee, within a reasonable time after written request therefor, any information available to the Servicer or reasonably obtainable by it that is necessary to calculate the Storm Recovery Charges applicable to each Customer Class.

     

     (iv)        Preparation of Reports. The Servicer shall prepare and deliver such additional reports as required under
      this Agreement, including a copy of each Semi-Annual Servicer’s Certificate described in Section 4.01(g)(i), the annual Servicer’s Compliance Certificate and Certificate of Compliance described in Section 3.03, and the Annual Accountant’s Report
      described in Section 3.04. In addition, the Servicer shall prepare, procure, deliver and/or file, or cause to be prepared, procured, delivered or filed, any reports, attestations, exhibits, certificates or other documents required to be delivered or
      filed with the SEC (and/or any other Governmental Authority) by the Issuer or the Sponsor under the federal securities or other applicable laws or in accordance with the Basic Documents, including, but without limiting the generality of foregoing,
      filing with the SEC, if applicable, a copy or copies of (A) the Monthly Servicer’s Certificates described in Section 3.01(b)(i) above (under Form 10-D or any other applicable form), (B) the Semi-Annual Servicer’s Certificates described in Section
      4.01(g)(i) (under Form 10-D or any other applicable form), (C) the annual statements of compliance, attestation reports and other certificates described in Section 3.03, and (D) the Annual Accountant’s Report (and any attestation required under
      Regulation AB) described in Section 3.04. In addition, the appropriate officer or officers of the Servicer shall (in its separate capacity as Servicer) sign the Sponsor’s annual report on Form 10-K (and any other applicable SEC or other reports,
      attestations, certifications and other documents), to the extent that the Servicer’s signature is required by, and consistent with, the federal securities law and/or any other applicable law.

     

    
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    (c)          Opinions of Counsel.

     

    The Servicer shall deliver to the Issuer, to the LPSC and to the Trustee:

     

     (i)          promptly after the execution and delivery of this Agreement and of each amendment hereto, an Opinion of Counsel either:

     

    (A)          all actions or filings (including filings with the Louisiana UCC Filing Officer in accordance with the rules prescribed under the Securitization
      Act and the UCC) necessary to perfect the Lien and security interest created by the Indenture have been taken or made, and reciting the details of such actions and filings, or

     

    (B)          no such actions or filings are necessary to perfect such Lien and security interest.

     

     (ii)          on or before March 31 in each calendar year beginning with the first calendar year beginning more than three months after the Sale Date, an
      Opinion of Counsel, dated as of a date during such calendar year, either:

     

    (A)          all actions or filings (including filings and refilings with the Louisiana UCC Filing Officer in accordance with the rules prescribed under the
      Securitization Act and the UCC) necessary to maintain perfection of the Lien and security interest created by the Indenture have been taken or made, and reciting the details of such actions and filings, or

     

    (B)          no such actions or filings are necessary to maintain the perfection of such Lien and security interest.

     

    Each Opinion of Counsel referred to in clause (i) or (ii) above shall specify any action necessary (as of the date of such opinion) to be taken in the following year to preserve and protect such Lien and security interests.

     

    Section 3.02          SERVICING AND MAINTENANCE STANDARDS.  The Servicer shall, on behalf of the Issuer:

     

    (a)          manage, service, administer and make collections in respect of the Storm Recovery Property with reasonable care and in material compliance with
      applicable law and regulations, including all applicable LPSC Regulations and guidelines, using the same degree of care and diligence that the Servicer exercises with respect to similar assets for its own account;

     

    (b)          follow standards, policies and practices in performing its duties as Servicer that are customary in the electric transmission and distribution
      industry or that the LPSC has mandated and that are consistent with the terms and provisions of the Financing Order, tariffs and existing law;

     

    (c)          use all reasonable efforts, consistent with the Servicer’s Policies and Practices, to enforce and maintain the Issuer’s and the Trustee’s rights
      in respect of the Storm Recovery Property;

     

    
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    (d)          calculate Storm Recovery Charges and the allocation of Storm Recovery Charges among Customer Classes in compliance with the Securitization Act,
      the Financing Order, any LPSC order related to the Storm Recovery Charge allocation and any applicable tariffs;

     

    (e)           use all reasonable efforts consistent with the Servicer’s Policies and Practices to collect all amounts owed in respect of the Storm Recovery
      Property as they become due;

     

    (f)           make all filings required under the Securitization Act or the applicable UCC to maintain the perfected security interest of the Trustee in the
      Storm Recovery Property and the other portions of the Trust Estate under the Indenture and use all reasonable efforts to otherwise enforce and maintain the Trustee’s rights in respect of the Storm Recovery Property and the other portions of the Trust
      Estate under the Indenture;

     

    (g)          petition the LPSC for adjustments to the Storm Recovery Charges that the Servicer determines to be necessary in accordance with the Financing
      Order; and

     

    (h)          keep on file, in accordance with customary procedures, all documents pertaining to the Storm Recovery Property and maintain accurate and complete
      accounts, records and computer systems pertaining to the related Storm Recovery Property

     

    except where the failure to comply with any of the foregoing would not materially and adversely affect the Issuer’s or the Trustee’s respective interests in the Storm Recovery Property. The Servicer shall follow such customary and usual practices
      and procedures as it shall deem necessary or advisable in its servicing of all or any portion of the Storm Recovery Property, which, in the Servicer’s judgment, may include the taking of legal action pursuant to Section 5.02(d) hereof or otherwise.

     

    Section 3.03          ANNUAL REPORTS ON COMPLIANCE WITH REGULATION AB.

     

    (a)          The Servicer shall deliver to the Issuer, the Trustee and the Rating Agencies, on or before the earlier of (i) March 31 of each year, beginning
      March 31, 2023, to and including the March 31 succeeding the retirement of all Storm Recovery Bonds or (ii) with respect to each calendar year during which Cleco Power’s annual report on Form 10-K is required to be filed in accordance with the
      Exchange Act and the rules and regulations thereunder, the date on which the annual report on Form 10-K is required to be filed in accordance with the Exchange Act and the rules and regulations thereunder, certificates from a Responsible Officer of
      the Servicer (A) containing, and certifying as to, the statements of compliance required by Item 1123 (or any successor or similar items or rule) of Regulation AB, as then in effect (the “Annual Compliance Certificate”), and (B) containing, and
      certifying as to, the statements and assessment of compliance required by Item 1122(a) (or any successor or similar items or rule) of Regulation AB, as then in effect (the “Certificate of Compliance”). These certificates may be in the form of, or
      shall include the forms attached hereto as Exhibit C-1 and Exhibit C-2 hereto, with, in the case of Exhibit C-1, such
      changes as may be required to conform to applicable securities law.

     

    
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    (b)          The Servicer shall use commercially reasonable efforts to obtain from each other party participating in the servicing function any additional
      certifications as to the statements and assessment required under Item 1122 or Item 1123 of Regulation AB to the extent required in connection with the filing of the annual report on Form 10-K referred to above; provided, however, that a failure to
      obtain such certifications shall not be a breach of the Servicer’s duties hereunder. The parties acknowledge that the Trustee’s certifications shall be limited to the Item 1122 certifications described in Exhibit A
      of the Indenture.

     

    (c)          The initial Servicer, in its capacity as Sponsor, shall post on its or its parent company’s website and file with or furnish to the SEC, in
      periodic reports and other reports as are required from time to time under Section 13 or Section 15(d) of the Exchange Act, the information described in Section 3.07(g) of the Indenture to the extent such information is reasonably available to the
      Sponsor.

     

    Section 3.04          ANNUAL REGISTERED INDEPENDENT PUBLIC ACCOUNTING FIRM REPORT.

     

    (a)          The Servicer shall cause a registered independent public accounting firm (which may also provide other services to the Servicer or the Seller) to
      prepare annually, and the Servicer shall deliver annually to the Issuer, the LPSC, the Trustee and each Rating Agency, on or before the earlier of (a) March 31 of each year, beginning March 31, 2023, to and including the March 31 succeeding the
      retirement of all Storm Recovery Bonds or (b) with respect to each calendar year during which the Sponsor’s annual report on Form 10-K is required to be filed in accordance with the Exchange Act and the rules and regulations thereunder, the date on
      which the annual report on Form 10-K is required to be filed in accordance with the Exchange Act and the rules and regulations thereunder, a report addressed to the Servicer (the “Annual Accountant’s Report”), which may be included as part of the
      Servicer’s assessment of compliance with the servicing criteria set forth in Item 1122(d) of Regulation AB during the immediately preceding calendar year ended December 31 (or, in the case of the first Annual Accountant’s Report, to be delivered on
      or before _______, 2023 the period of time from the Sale Date through December 31, 2022), in accordance with paragraph (b) of Rule 13a-18 and 15d-18 of the Exchange Act and Item 1122 of Regulation AB, identifying the results of such procedures and
      including any exceptions noted.  In the event such accounting firm requires the Trustee or the Issuer to agree or consent to the procedures performed by such firm, the Issuer shall direct the Trustee in writing to so agree; it being understood and
      agreed that the Trustee shall deliver such letter of agreement or consent in conclusive reliance upon the direction of the Issuer, and the Trustee shall not make any independent inquiry or investigation as to, and shall have no obligation or
      liability in respect of, the sufficiency, validity or correctness of such procedures.

     

    
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    (b)          The Annual Accountant’s Report shall also indicate that the accounting firm providing such report is independent of the Servicer in accordance
      with the Rules of the Public Company Accounting Oversight Board, and shall include the attestation report required under Item 1122(b) of Regulation AB (or any successor or similar items or rule), as then in effect. The costs of the Annual
      Accountant’s Report shall be reimbursable as an Operating Expense under the Indenture and also indicate that the accounting firm providing such report is independent of the Servicer within the meaning of the Code of Professional Ethics of the
      American Institute of Certified Public Accountants.

     

    Section 3.05          THIRD-PARTY SUPPLIERS.  So long as any of the Storm Recovery Bonds are Outstanding, the Servicer shall take reasonable efforts to assure that no Third-Party
      Supplier bills or collects Storm Recovery Charges on behalf of the Issuer unless permitted by applicable law or regulation and, to the extent permitted by applicable law or regulation, the Rating Agency Condition is satisfied. As long as any of the
      Storm Recovery Bonds are Outstanding, Servicer will use commercially reasonable efforts to ensure that any Third-Party Supplier provide to the Issuer and to the Trustee, within a reasonable time after written request therefor, any information
      available to the Third-Party Supplier or reasonably obtainable by it that is necessary to calculate the Storm Recovery Charges.

     

    ARTICLE IV

     

    SERVICES RELATED TO STORM RECOVERY CHARGE ADJUSTMENTS AND

     ALLOCATION ADJUSTMENTS

     

    Section 4.01          STORM RECOVERY CHARGE ADJUSTMENTS.  From time to time, but at least semi-annually, until the retirement of the Storm Recovery Bonds, the Servicer shall
      identify the need for Storm Recovery Charge Adjustments and shall take reasonable action to obtain and implement such Storm Recovery Charge Adjustments, all in accordance with the following:

     

    (a)          Expected Amortization Schedule. The Expected Amortization Schedule for the Storm Recovery Bonds is
      provided in the Supplement.

     

    (b)          Semi-Annual Storm Recovery Charge Adjustments. The Servicer will calculate and make semi-annual Storm
      Recovery Charge Adjustments as of each Adjustment Date commencing with the first Adjustment Date as follows:

     

     (i)          subtract the preceding period’s Storm Recovery Charge revenues collected and remitted from the preceding period’s Periodic Payment Requirement to
      calculate the under-collection or over-collection from the preceding period;

     

     (ii)         calculate the amount of the Storm Recovery Charge Adjustment, by (A) correcting any under-collection or over-collection calculated in step (i)
      over a period of up to 12 months covering the next two succeeding payment dates (in order to mitigate the size and impact of the adjustment), using the rules that (x) principal payments on the Storm Recovery Bonds will be brought on schedule over the
      next two succeeding Payment Dates, but (y) the resulting periodic billing requirement always must be sufficient to cover ongoing financing costs and interest on the Storm Recovery Bonds on a timely basis, (B) adding any amount carried forward from
      the previous Storm Recovery Charge Adjustment by the operation of step (A) above during the preceding Storm Recovery Charge Adjustment calculation;

     

    
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    (iii)         add the amount calculated in step (ii), without duplication, to the upcoming period’s trued-up Periodic Billing Requirement to determine an
      adjusted Periodic Billing Requirement for the upcoming period;

     

    (iv)         add the amount, if a positive number, equal to the difference of the return to Cleco Power on Cleco Power’s invested capital in the Issuer for the
      preceding period minus the actual investment earnings thereon from the Trustee’s eligible investments for the preceding period, to the amount calculated in step (iii);

     

    (v)          allocate the result from step (iv) using the allocation factors approved by the LPSC in the Financing Order and develop Customer Class-specific
      Storm Recovery Charge rates based on those allocated dollar amounts; and

     

    (vi)         file those adjusted storm recovery charge rates with the LPSC not less than fifteen (15) days prior to the first billing cycle of the Cleco Power
      revenue month in which the revised Storm Recovery Charges will be in effect;

     

    provided, however, that to the extent any Storm Recovery Bonds remain outstanding after the Scheduled Final Payment Date of the last tranche or class, Storm Recovery Charge Adjustments shall be made quarterly until the
      Storm Recovery Bonds and all associated financing costs are paid in full (and any under-collection shall be corrected for the next Payment Date instead of over a period covering the next two succeeding Payment Dates.

     

    (c)          Interim Storm Recovery Charge Adjustment Request. The Servicer may also make interim Storm Recovery
      Charge Adjustments more frequently at any time during the term of the Storm Recovery Bonds: (i) if the Servicer forecasts that SRC Collections will be insufficient to make on a timely basis all scheduled payments of interest and other financing costs
      in respect of the Storm Recovery Bonds during the current or next succeeding payment period or bring all principal payments on schedule over the next two succeeding payment dates and/or (ii) to replenish any draws upon the capital subaccount. Such
      adjusted storm recovery charge rates shall be filed with the LPSC not less than fifteen (15) days prior to the first billing cycle of the Cleco Power revenue month in which the revised Storm Recovery Charges will be in effect.

     

    (d)          Quarterly Storm Recovery Charge Adjustment Request. If required by the Rating Agencies to obtain the
      highest credit ratings, the Servicer may make quarterly Storm Recovery Charge Adjustments as and when so required. Such adjusted storm recovery charge rates shall be filed with the LPSC not less than fifteen (15) days prior to the first billing cycle
      of the Cleco Power revenue month in which the revised Storm Recovery Charges will be in effect.

     

    
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    (e)           Non-Standard Storm Recovery Charge Adjustment. The Servicer shall request LPSC approval of an amendment
      to the Storm Recovery Charge Adjustment mechanism to make a non-standard Storm Recovery Charge Adjustment (under such procedures as shall be proposed by the Servicer and approved by the LPSC at the time) that it deems necessary or appropriate to
      address any material deviations between SRC Collections and the periodic revenue requirement. No such change shall cause any of the then-current credit ratings of the Storm Recovery Bonds to be suspended, withdrawn or downgraded.

     

    (f)           Notification of Adjustment Requests. Whenever the Servicer files a Storm Recovery Charge Adjustment
      request with the LPSC, the Servicer shall send a copy of such filing to the Issuer, each Trustee and the Rating Agencies concurrently therewith and such other persons as are entitled to notice under the Financing Order. If any Storm Recovery Charge
      Adjustment request does not become effective on the applicable date as provided in such filing and in accordance with the Financing Order, the Servicer shall notify the Issuer, each Trustee and the Rating Agencies by the end of the second Servicer
      Business Day after such applicable date.

     

    (g)          Reports.

     

     (i)          Servicer’s Certificate. Not later than five (5) Servicer Business Days prior to each Payment Date or
      Special Payment Date, the Servicer shall deliver a written report substantially in the form of Exhibit B (the “Semi-Annual Servicer’s Certificate”) to the Issuer, the LPSC, the Trustee and the Rating Agencies, which shall include all
      of the following information (to the extent applicable and including any other information so specified in the Series Supplement) as to the Storm Recovery Bonds with respect to such Payment Date or Special Payment Date or the period since the
      previous Payment Date, as applicable:

     

    (A)          the Storm Recovery Bond Balance and the Projected Storm Recovery Bond Balance as of the immediately preceding Payment Date,

     

    (B)          the amount on deposit in the Capital Subaccount and the Excess Funds Subaccount and the amount required to be on deposit in the Capital
      Subaccount as of the immediately preceding Payment Date,

     

    (C)          the amount of the payment to Holders allocable to principal, if any,

     

    (D)          the amount of the payment to Holders allocable to interest,

     

    (E)          the aggregate Outstanding Amount of the Storm Recovery Bonds, before and after giving effect to any payments allocated to principal reported
      under clause (C) above,

     

    
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    (F)          the difference, if any, between the amount specified in clause (E) above and the Outstanding Amount specified in the Expected Amortization
      Schedule,

     

    (G)          any other transfers and payments to be made on such Payment Date or Special Payment Date, including amounts paid to the Trustee and to the
      Servicer, and

     

    (H)          the Servicer’s projection of the amount on deposit in the Excess Funds Subaccount for the Payment Date immediately preceding the next succeeding
      Adjustment Date.

     

     (ii)         Reports to Customers.

     

    (A)          After each revised Storm Recovery Charge has gone into effect pursuant to a Storm Recovery Charge Adjustment, the Servicer shall, to the extent
      and in the manner and time frame required by applicable LPSC Regulations, if any, cause to be prepared and delivered to Customers any required notices announcing such revised Storm Recovery Charges.

     

    (B)          The Servicer shall comply with the requirements of the Financing Order and Rate Schedule with respect to the identification of Storm Recovery
      Charges on Bills. In addition, at least once each year, the Servicer shall notify such Customers, in effect, that the Storm Recovery Property and the Storm Recovery Charges are owned by the Issuer (or its assignee) and not the Seller and that the
      Servicer is merely the collection agent for the Issuer (or its assignee or pledgee). Such notification shall be delivered to such Customers either by annual Bill inserts with mailed Bills or by statements posted on the “my account” website pages of
      the Servicer’s internet website.

     

    (C)          The Servicing Fee includes all costs of preparation and delivery incurred in connection with clauses (A) and (B) above, including printing and postage costs.

     

    Section 4.02          LIMITATION OF LIABILITY

     

    (a)          The Issuer and the Servicer expressly agree and acknowledge that:

     

     (i)          In connection with any Storm Recovery Charge Adjustment, the Servicer is acting solely in its capacity as the servicing agent of the Issuer
      hereunder.

     

    
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     (ii)         Neither the Servicer nor the Issuer shall be responsible in any manner for, and shall have no liability whatsoever as a result of, any action,
      decision, ruling or other determination made or not made, or any delay (other than any delay resulting from the Servicer’s failure to file the requests required by Section 4.01 in a timely and correct manner or other breach by the Servicer of its
      duties under this Agreement that materially and adversely affects the Storm Recovery Charge Adjustments), by the LPSC in any way related to the Storm Recovery Property or in connection with any Storm Recovery Charge Adjustment.

     

     (iii)        Except only to the extent that the Servicer is liable under Section 6.02, (A) the Servicer shall have no liability whatsoever relating to the
      calculation of the Storm-Recovery Charges and the adjustments thereto, including as a result of any inaccuracy of any of the assumptions made in such calculation regarding expected electric energy or demand usage volumes, the rate of charge-offs and
      estimated expenses and fees of the Issuer, so long as the Servicer has not acted in bad faith or in a grossly negligent manner in connection therewith, and (B) the Servicer shall have no liability whatsoever as a result of any Person, including the
      Holders, not receiving any payment, amount or return anticipated or expected in respect of any Storm Recovery Bond generally.

     

    (b)          Notwithstanding the foregoing, this Section 4.02 shall not relieve the Servicer of any liability under Section 6.02 for any misrepresentation by
      the Servicer under Section 6.01 or for any breach by the Servicer of its obligations under this Agreement.

     

    ARTICLE V

     

    THE STORM RECOVERY PROPERTY

     

    Section 5.01          CUSTODY OF STORM RECOVERY PROPERTY RECORDS.  To assure uniform quality in servicing the Storm Recovery Property and to reduce administrative costs, the
      Issuer hereby revocably appoints the Servicer, and the Servicer hereby accepts such appointment, to act as the agent of the Issuer as custodian of any and all documents and records relating to the Storm Recovery Property, which are hereby
      constructively delivered to the Trustee, as pledgee of the Issuer, with respect to all Storm Recovery Property.

     

    Section 5.02          DUTIES OF SERVICER AS CUSTODIAN.

     

    (a)          Safekeeping. The Servicer shall hold the Storm Recovery Property Documentation on behalf of the Issuer
      and Trustee and maintain such accurate and complete accounts, records and computer systems pertaining to the Storm Recovery Property Documentation as shall enable the Issuer and the Trustee, as applicable, to comply with this Agreement, the Sale
      Agreement and the Indenture. In performing its duties as custodian, including documentation, record keeping, accounts and computer systems, the Servicer shall act with reasonable care, using that degree of care and diligence that the Servicer
      exercises with respect to comparable assets that the Servicer services for itself or, if applicable, for others. The Servicer shall promptly report to the Issuer, the Trustee, the LPSC and the Rating Agencies any material failure on its part to hold
      the Storm Recovery Property Documentation and maintain its accounts, records and computer systems as herein provided and promptly take appropriate action to remedy any such failure. Nothing herein shall be deemed to require an initial review or any
      periodic review by the Issuer or the Trustee of the Storm Recovery Property Documentation. The Servicer’s duties to hold the Storm Recovery Property Documentation set forth in this Section 5.02, to the extent such Storm Recovery Property
      Documentation has not been previously transferred to a successor Servicer, shall terminate one year and one day after the earlier of the date on which (i) the Servicer is succeeded by a successor pursuant to the provisions of the Agreement and (ii)
      no Storm Recovery Bonds are Outstanding.

     

    
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    (b)          Maintenance and Access to Records. The Servicer shall maintain the Storm Recovery Property Documentation
      at 2030 Donahue Ferry Road, Pineville, Louisiana or at such other office as shall be specified to the Issuer, to the LPSC and to the Trustee by written notice at least thirty (30) days prior to any change in location. The Servicer shall make
      available, as is reasonably required for the Trustee to perform its duties and obligations under the Indenture and the other Basic Documents, for inspection, audit and copying to the Issuer and the Trustee or their respective duly authorized
      representatives, attorneys or auditors the Servicer’s records regarding the Storm Recovery Property, the Storm Recovery Charges and the Storm Recovery Property Documentation at such times during normal business hours as the Issuer or the Trustee
      shall reasonably request and which do not unreasonably interfere with the Servicer’s normal operations. Nothing in this Section 5.02(b) shall affect the obligation of the Servicer to observe any applicable law (including any LPSC Regulation)
      prohibiting disclosure of information regarding the Customers, and the failure of the Servicer to provide access to such information as a result of such obligation shall not constitute a breach of this Section 5.02(b).

     

    (c)           Release of Documents. Upon instruction from the Trustee in accordance with the Indenture, the Servicer
      shall release any Storm Recovery Property Documentation to the Trustee, the Trustee’s agent or the Trustee’s designee, as the case may be, at such place or places as the Trustee may designate, as soon as practicable.

     

    (d)           Litigation to Defend Storm Recovery Property. The Servicer is required to institute any action or
      proceeding reasonably necessary to compel performance by the LPSC or the State of Louisiana of any of their respective obligations or duties under the Securitization Act or the Financing Order, as the case may be, with respect to the Storm Recovery
      Charge Adjustment, provided, however, that in circumstances in which the servicing procedures set out in Annex I apply, the provisions of this undertaking do not require the Servicer to act in a manner different from the manner that the servicing
      procedures require. In any proceedings related to the exercise of the power of eminent domain by any municipality to acquire a portion of Cleco Power’s electric distribution facilities, including upon the expiration of any franchise agreement, the
      Servicer shall assert that that the court ordering such condemnation must treat such municipality as a successor to Cleco Power under the Securitization Act and the Financing Order and that Customers in such municipalities remain responsible for
      payment of Storm Recovery Charges. The costs of any such actions or proceedings would be reimbursed by the Issuer to the Servicer from amounts on deposit in the Collection Account as an Operating Expense (and shall not be deemed to constitute a
      portion of the Servicing Fee) in accordance with the terms of Section 8.02(d) of the Indenture. The amount of any recoveries received by the Servicer as a result of any such action or procedures shall be forwarded to the Trustee for deposit in the
      Collection Account. The Servicer’s obligations pursuant to this Section 5.02(d) survive and continue notwithstanding that the payment of Operating Expenses pursuant to the Indenture may be delayed.

     

    
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    Section 5.03          CUSTODIAN’S INDEMNIFICATION. 
      THE SERVICER AS CUSTODIAN SHALL INDEMNIFY THE ISSUER, THE INDEPENDENT MANAGERS AND THE TRUSTEE (FOR ITSELF AND FOR THE BENEFIT OF THE STORM RECOVERY BONDHOLDERS) AND EACH OF THEIR RESPECTIVE OFFICERS, DIRECTORS, EMPLOYEES AND AGENTS FOR, AND DEFEND
      AND HOLD HARMLESS EACH SUCH PERSON FROM AND AGAINST, ANY AND ALL LIABILITIES, OBLIGATIONS, LOSSES, DAMAGES, PAYMENTS AND CLAIMS, AND REASONABLE COSTS OR EXPENSES, OF ANY KIND WHATSOEVER (COLLECTIVELY, “LOSSES”)
      THAT MAY BE IMPOSED ON, INCURRED BY OR ASSERTED AGAINST EACH SUCH PERSON AS THE RESULT OF ANY NEGLIGENT ACT OR OMISSION IN ANY WAY RELATING TO THE MAINTENANCE AND CUSTODY BY THE SERVICER, AS CUSTODIAN, OF THE STORM RECOVERY PROPERTY DOCUMENTATION; PROVIDED, HOWEVER, THAT THE SERVICER SHALL NOT BE LIABLE FOR ANY PORTION OF ANY SUCH AMOUNT RESULTING FROM THE WILLFUL MISCONDUCT, BAD FAITH OR NEGLIGENCE OF THE ISSUER, THE INDEPENDENT MANAGERS OR THE TRUSTEE, AS
      THE CASE MAY BE.

     

    INDEMNIFICATION UNDER THIS SECTION 5.03 SHALL SURVIVE RESIGNATION OR REMOVAL OF THE TRUSTEE OR ANY INDEPENDENT MANAGER AND SHALL INCLUDE REASONABLE OUT-OF-POCKET FEES AND EXPENSES OF INVESTIGATION AND LITIGATION
      (INCLUDING REASONABLE ATTORNEY’S FEES AND EXPENSES).

     

    Section 5.04          EFFECTIVE PERIOD AND TERMINATION.  The Servicer’s appointment as custodian shall become effective as of the Sale Date and shall continue in full force and
      effect until terminated pursuant to this Section 5.04. If the Servicer shall resign as Servicer in accordance with the provisions of this Agreement or if all of the rights and obligations of the Servicer shall have been terminated under Section 7.01,
      the appointment of the Servicer as custodian shall be terminated effective as of the date on which the termination or resignation of the Servicer is effective. Additionally, if not sooner terminated as provided above, the Servicer’s obligations as
      custodian shall terminate one year and one day after the date on which no Storm Recovery Bonds are Outstanding.

     

    ARTICLE VI

     

    THE SERVICER

     

    Section 6.01          REPRESENTATIONS AND WARRANTIES OF THE SERVICER.  The Servicer makes the following representations and warranties as of the Sale Date, and as of such other
      dates expressly provided in this Section 6.01, on which the Issuer has relied in acquiring the Storm Recovery Property. The representations and warranties shall survive the execution and delivery of this Agreement, the sale of any of the
      Storm Recovery Property to the Issuer and the pledge thereof to the Trustee pursuant to the Indenture.

     

    
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    (a)          Organization and Good Standing. The Servicer is a limited liability company duly organized, validly
      existing and in good standing under the laws of the State of Louisiana, with the limited liability company power and authority to own its properties, to conduct its business as such business is presently conducted and to execute, deliver and carry
      out the terms of this Agreement and had at all relevant times and has the requisite power, authority and legal right to service the Storm Recovery Property and to hold the Storm Recovery Property Documentation as custodian.

     

    (b)          Due Qualification. The Servicer is duly qualified to do business and is in good standing, and has
      obtained all necessary licenses and approvals, in all jurisdictions in which it is required to do so (except where the failure to so qualify would not be reasonably likely to have a material adverse effect on the Servicer’s business, operations,
      assets, revenues or properties or adversely affect the servicing of the Storm Recovery Property).

     

    (c)           Power and Authority. The Servicer has the limited liability company power and authority to execute and
      deliver this Agreement and to carry out the terms thereof; and the execution, delivery and performance of this Agreement have been duly authorized by the Servicer by all necessary limited liability company action.

     

    (d)          Binding Obligation. This Agreement constitutes a legal, valid and binding obligation of the Servicer
      enforceable against the Servicer in accordance with its terms subject to applicable bankruptcy, receivership, insolvency, reorganization, moratorium, fraudulent transfer or conveyance and other laws relating to or affecting creditors’ rights
      generally from time to time in effect and to general principles of equity (including, without limitation, concepts of materiality, reasonableness, good faith and fair dealing), regardless of whether considered in a Proceeding in equity or at law.

     

    (e)           No Violation. The consummation of the transactions contemplated by this Agreement (to the extent
      applicable to the Servicer’s responsibilities thereunder) and the fulfillment of the terms will not conflict with, result in any breach of any of the terms and provisions of, or constitute (with or without notice or lapse of time) a material default
      under, the articles of organization, operating agreement or any material indenture or any material agreement to which the Servicer is a party or by which it or any of its property is bound or result in the creation or imposition of any Lien upon any
      of its properties pursuant to the terms of any such agreement (other than any Lien that may be granted under the Basic Documents pursuant to Section 1231 of the Securitization Act); or violate any existing law or any existing order, rule or
      regulation applicable to the Servicer.

     

    (f)           Approvals. No approval, authorization, consent, order or other action of, or filing with, any
      Governmental Authority is required under an applicable law, rule or regulation in connection with the execution and delivery by the Servicer of this Agreement, the performance by the Servicer of the transactions contemplated hereby or the fulfillment
      by the Servicer of the terms of the Agreement, except those that have been obtained or made or that are required by this Agreement to be made in the future by the Servicer, including the Issuance Advice Letter, filings with the LPSC for adjusting
      Storm Recovery Charges and allocation of storm recovery charge adjustments pursuant to Section 4.01 and filings with the Louisiana UCC Filing Officer under the Securitization Act and the UCC.

     

    
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    (g)          No Proceedings. Except as disclosed by the Servicer on Schedule A hereto, there are no Proceedings
      pending or, to the Servicer’s knowledge, threatened before any Governmental Authority having jurisdiction over the Servicer or its properties involving or relating to the Servicer or the Issuer or, to the Servicer’s knowledge, any other Person:

     

    (i)           asserting the invalidity of this Agreement or any of the other Basic Documents;

     

    (ii)          seeking to prevent the issuance of the Storm Recovery Bonds or the consummation of any of the transactions contemplated by this Agreement or any
      of the other Basic Documents;

     

    (iii)          seeking any determination or ruling that might materially and adversely affect the performance by the Servicer of its obligations under, or the
      validity or enforceability against the Servicer of, this Agreement, any of the other Basic Documents or the Storm Recovery Bonds;

     

    (iv)          relating to the Servicer and which might materially and adversely affect the federal income tax or State income, gross receipts or franchise tax
      attributes of the Storm Recovery Bonds; or

     

    (v)          seeking to prevent the issuance of the Storm Recovery Bonds or the consummation of any of the transactions contemplated by this Agreement or any
      of the other Basic Documents.

     

    (h)          Reports and Certificates. Each report and certificate delivered in connection with any filing made to the
      LPSC by the Servicer on behalf of the Issuer with respect to Storm Recovery Charges, Storm Recovery Charge Adjustments or allocation of storm recovery charges among Customer Classes will be true and correct in all material respects; provided, however, that to the extent any such report or certificate is based in part upon or contains assumptions, forecasts or other predictions of future events, the representation and warranty of the Servicer
      with respect thereto will be limited to the representation and warranty that such assumptions, forecasts or other predictions of future events are reasonable based upon historical performance and the facts known to the Servicer on the date such
      report or certificate is delivered.

     

    Section 6.02          INDEMNITIES OF THE SERVICER; RELEASE OF CLAIMS.

     

    (a)          THE SERVICER SHALL BE LIABLE IN ACCORDANCE HEREWITH ONLY TO THE EXTENT OF THE OBLIGATIONS SPECIFICALLY UNDERTAKEN
        BY THE SERVICER UNDER THIS AGREEMENT.

     

    
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    (b)          THE SERVICER SHALL INDEMNIFY THE ISSUER, THE TRUSTEE (FOR ITSELF AND ON BEHALF OF THE STORM RECOVERY BONDHOLDERS)
        AND THE INDEPENDENT MANAGER AND EACH OF THEIR RESPECTIVE TRUSTEES, MEMBERS, MANAGERS, OFFICERS, DIRECTORS, EMPLOYEES AND AGENTS FOR, AND DEFEND AND HOLD HARMLESS EACH SUCH PERSON FROM AND AGAINST, ANY AND ALL LOSSES THAT MAY BE IMPOSED UPON,
        INCURRED BY OR ASSERTED AGAINST ANY SUCH PERSON AS A RESULT OF:

     

     (i)          THE SERVICER’S WILLFUL MISCONDUCT, BAD FAITH OR NEGLIGENCE IN THE PERFORMANCE OF ITS DUTIES OR OBSERVANCE OF ITS
        COVENANTS UNDER THIS AGREEMENT OR THE SERVICER’S RECKLESS DISREGARD OF ITS OBLIGATIONS AND DUTIES UNDER THIS AGREEMENT;

     

     (ii)         THE SERVICER’S BREACH OF ANY OF ITS REPRESENTATIONS OR WARRANTIES IN THIS AGREEMENT; OR

     

     (iii)        LITIGATION AND RELATED EXPENSES RELATING TO ITS STATUS AND OBLIGATIONS AS SERVICER (OTHER THAN ANY PROCEEDINGS
        THE SERVICER IS REQUIRED TO INSTITUTE UNDER THIS AGREEMENT);

     

    PROVIDED, HOWEVER, THAT THE SERVICER SHALL NOT BE LIABLE FOR ANY LOSSES RESULTING FROM THE BAD FAITH, WILLFUL MISCONDUCT OR NEGLIGENCE OF ANY PERSON INDEMNIFIED PURSUANT TO THIS SECTION 6.02 (EACH, AN “INDEMNIFIED PERSON”) OR
        RESULTING FROM A BREACH OF A REPRESENTATION OR WARRANTY MADE BY SUCH INDEMNIFIED PERSON TO THE SERVICER IN ANY BASIC DOCUMENT THAT GIVES RISE TO THE SERVICER’S BREACH.

     

    
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    (c)           PROMPTLY AFTER RECEIPT BY AN INDEMNIFIED PERSON OF WRITTEN NOTICE OF ITS INVOLVEMENT IN ANY ACTION, PROCEEDING
        OR INVESTIGATION, SUCH INDEMNIFIED PERSON SHALL, IF A CLAIM FOR INDEMNIFICATION IN RESPECT THEREOF IS TO BE MADE AGAINST THE SERVICER UNDER THIS SECTION 6.02, NOTIFY THE SERVICER IN WRITING OF SUCH INVOLVEMENT. FAILURE BY AN INDEMNIFIED PERSON TO
        SO NOTIFY THE SERVICER SHALL RELIEVE THE SERVICER FROM THE OBLIGATION TO INDEMNIFY AND HOLD HARMLESS SUCH INDEMNIFIED PERSON UNDER THIS SECTION 6.02 ONLY TO THE EXTENT THAT THE SERVICER SUFFERS ACTUAL PREJUDICE AS DETERMINED BY A COURT OF COMPETENT
        JURISDICTION AS A RESULT OF SUCH FAILURE. WITH RESPECT TO ANY ACTION, PROCEEDING OR INVESTIGATION BROUGHT BY A THIRD PARTY FOR WHICH INDEMNIFICATION MAY BE SOUGHT BY AN INDEMNIFIED PERSON UNDER THIS SECTION 6.02, THE SERVICER SHALL BE ENTITLED TO
        ASSUME THE DEFENSE OF ANY SUCH ACTION, PROCEEDING OR INVESTIGATION UNLESS (X) SUCH ACTION, PROCEEDING OR INVESTIGATION EXPOSES THE INDEMNIFIED PERSON TO A RISK OF CRIMINAL LIABILITY OR FORFEITURE, (Y) THE SERVICER AND SUCH INDEMNIFIED PERSON HAVE A
        CONFLICT OF INTEREST IN THEIR RESPECTIVE DEFENSES OF SUCH ACTION, PROCEEDING OR INVESTIGATION OR (Z) THERE EXISTS AT THE TIME THE SERVICER WOULD ASSUME SUCH DEFENSE AN ONGOING SERVICER DEFAULT. UPON ASSUMPTION BY THE SERVICER OF THE DEFENSE OF ANY
        SUCH ACTION, PROCEEDING OR INVESTIGATION, THE INDEMNIFIED PERSON SHALL HAVE THE RIGHT TO PARTICIPATE IN SUCH ACTION OR PROCEEDING AND TO RETAIN ITS OWN COUNSEL (INCLUDING LOCAL COUNSEL), AND THE SERVICER SHALL BEAR THE REASONABLE FEES, COSTS AND
        EXPENSES OF SUCH SEPARATE COUNSEL. THE INDEMNIFIED PERSON SHALL NOT SETTLE OR COMPROMISE OR CONSENT TO THE ENTRY OF ANY JUDGMENT WITH RESPECT TO ANY PENDING OR THREATENED CLAIM, ACTION, SUIT OR PROCEEDING IN RESPECT OF WHICH INDEMNIFICATION MAY BE
        SOUGHT UNDER THIS SECTION 6.02 (WHETHER OR NOT THE SERVICER IS AN ACTUAL OR POTENTIAL PARTY TO SUCH CLAIM OR ACTION) UNLESS THE SERVICER AGREES IN WRITING TO SUCH SETTLEMENT, COMPROMISE OR CONSENT AND SUCH SETTLEMENT, COMPROMISE OR CONSENT INCLUDES
        AN UNCONDITIONAL RELEASE OF THE SERVICER FROM ALL LIABILITY ARISING OUT OF SUCH CLAIM, ACTION, SUIT OR PROCEEDING.

     

    (d)           THE SERVICER SHALL INDEMNIFY THE TRUSTEE AND ITS RESPECTIVE TRUSTEES, OFFICERS, DIRECTORS, EMPLOYEES AND AGENTS
        FOR, AND DEFEND AND HOLD HARMLESS EACH SUCH PERSON FROM AND AGAINST, ANY AND ALL LOSSES THAT MAY BE IMPOSED UPON, INCURRED BY OR ASSERTED AGAINST ANY SUCH PERSON AS A RESULT OF THE ACCEPTANCE OR PERFORMANCE OF THE TRUSTS AND DUTIES CONTAINED HEREIN
        AND IN THE INDENTURE, EXCEPT TO THE EXTENT THAT ANY SUCH LOSS (I) SHALL BE DUE TO THE WILLFUL MISCONDUCT, BAD FAITH OR NEGLIGENCE OF THE TRUSTEE OR (II) SHALL ARISE FROM THE TRUSTEE’S BREACH OF ANY OF ITS REPRESENTATIONS OR WARRANTIES SET FORTH IN
        THE INDENTURE; PROVIDED, HOWEVER, THAT THE FOREGOING INDEMNITY IS EXTENDED TO THE TRUSTEE SOLELY IN ITS INDIVIDUAL CAPACITY AND NOT FOR THE BENEFIT
        OF THE STORM RECOVERY BONDHOLDERS OR ANY OTHER PERSON. SUCH AMOUNTS WITH RESPECT TO THE TRUSTEE SHALL BE DEPOSITED AND DISTRIBUTED IN ACCORDANCE WITH THE INDENTURE.

     

    
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    (e)           THE SERVICER’S INDEMNIFICATION OBLIGATIONS UNDER SECTION 6.02(b) AND (d) FOR EVENTS OCCURRING PRIOR TO THE
        REMOVAL OR RESIGNATION OF THE TRUSTEE OR ANY INDEPENDENT MANAGER OR THE TERMINATION OF THIS AGREEMENT SHALL SURVIVE THE RESIGNATION OR REMOVAL OF THE TRUSTEE, ANY INDEPENDENT MANAGER OR THE TERMINATION OF THIS AGREEMENT AND SHALL INCLUDE REASONABLE
        COSTS, FEES AND EXPENSES OF INVESTIGATION AND LITIGATION (INCLUDING THE ISSUER’S AND THE TRUSTEE’S REASONABLE ATTORNEYS’ FEES AND EXPENSES). INDEMNIFICATION UNDER THIS SECTION 6.02 SHALL SURVIVE ANY REPEAL OF, MODIFICATION OF, OR SUPPLEMENT TO, OR
        JUDICIAL INVALIDATION OF, THE SECURITIZATION ACT OR ANY FINANCING ORDER.

     

    (f)           EXCEPT TO THE EXTENT EXPRESSLY PROVIDED FOR IN THIS AGREEMENT, THE SALE AGREEMENT OR THE FORMATION DOCUMENTS
        (INCLUDING THE SERVICER’S CLAIMS WITH RESPECT TO THE SERVICING FEES AND EXPENSES REIMBURSEMENT AND THE SELLER’S CLAIM FOR PAYMENT OF THE PURCHASE PRICE OF STORM RECOVERY PROPERTY), THE SERVICER HEREBY RELEASES AND DISCHARGES THE ISSUER (INCLUDING
        ITS MEMBERS, MANAGERS, EMPLOYEES AND AGENTS, IF ANY), THE INDEPENDENT MANAGER, AND THE TRUSTEE (INCLUDING ITS RESPECTIVE OFFICERS, DIRECTORS AND AGENTS) (COLLECTIVELY, THE “RELEASED PARTIES”) FROM ANY AND ALL CLAIMS WHATSOEVER, WHICH THE SERVICER,
        IN ITS CAPACITY AS SERVICER OR OTHERWISE, SHALL OR MAY HAVE AGAINST ANY SUCH PERSON RELATING TO THE STORM RECOVERY PROPERTY OR THE SERVICER’S ACTIVITIES WITH RESPECT THERETO OTHER THAN ANY ACTIONS, CLAIMS AND DEMANDS ARISING OUT OF THE WILLFUL
        MISCONDUCT, BAD FAITH OR NEGLIGENCE OF THE RELEASED PARTIES.

     

    (g)          THE SERVICER AND THE ISSUER HEREBY ACKNOWLEDGE THAT, NOTWITHSTANDING ANYTHING HEREIN TO THE CONTRARY, THE TRUSTEE
        IS A THIRD-PARTY BENEFICIARY OF THIS SECTION 6.02 AND IS ENTITLED TO THE BENEFITS OF THE INDEMNITY FROM THE SERVICER CONTAINED HEREIN AND TO BRING ANY ACTION TO ENFORCE SUCH INDEMNIFICATION DIRECTLY AGAINST THE SERVICER.

     

    
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    (h)          THE SERVICER SHALL INDEMNIFY THE LPSC (FOR THE BENEFIT OF CUSTOMERS), THE ISSUER, THE TRUSTEE (FOR ITSELF AND ON
        BEHALF OF THE STORM RECOVERY BONDHOLDERS), AND EACH OF THEIR RESPECTIVE TRUSTEES, MEMBERS, MANAGERS, OFFICERS, DIRECTORS, EMPLOYEES AND AGENTS FOR, AND DEFEND AND HOLD HARMLESS EACH SUCH PERSON FROM AND AGAINST, ANY AND ALL LOSSES THAT MAY BE
        IMPOSED UPON, INCURRED BY OR ASSERTED AGAINST ANY SUCH PERSON AS A RESULT OF ANY INCREASE IN THE SERVICING FEE THAT BECOMES PAYABLE PURSUANT TO SECTION 6.07(b) OF THIS AGREEMENT AS A RESULT OF A DEFAULT RESULTING FROM THE SERVICER’S MISCONDUCT,
        NEGLIGENCE IN PERFORMANCE OF ITS DUTIES OR OBSERVANCE OF ITS COVENANTS UNDER THIS AGREEMENT OR TERMINATION FOR CAUSE OF CLECO POWER OR AN AFFILIATE SERVICER. THE INDEMNIFICATION OBLIGATION SET FORTH IN THIS PARAGRAPH MAY BE ENFORCED BY THE LPSC BUT
        IS NOT ENFORCEABLE BY ANY THIRD-PARTY COLLECTOR OR ANY CUSTOMER. ANY INDEMNITY PAYMENTS UNDER THIS PARAGRAPH FOR THE BENEFIT OF CUSTOMERS SHALL BE REMITTED TO THE TRUSTEE PROMPTLY FOR DEPOSIT INTO THE COLLECTION ACCOUNT.

     

    Section 6.03          MERGER OR CONSOLIDATION OF, OR ASSUMPTION OF THE OBLIGATIONS OF, THE SERVICER.  Any Person:

     

    (a)           into which the Servicer may be merged, converted or consolidated and which succeeds to all or substantially all of the electric transmission and
      distribution business of the servicer (or, if the transmission and distribution business is split, any Person which the LPSC designates in connection with an order relating to such split),

     

    (b)          which results from the division of the Servicer into two or more Persons and which succeeds to all or substantially all of the electric
      transmission and distribution business of the Servicer (or, if the transmission and distribution business is split, any Person which the LPSC designates in connection with an order relating to such split),

     

    (c)           which may result from any merger, conversion or consolidation to which the Servicer shall be a party and which succeeds to all or substantially
      all of the electric transmission and distribution business of the Servicer (or, if the transmission and distribution business is split, any Person which the LPSC designates in connection with an order relating to such split),

     

    (d)           which may purchase or otherwise succeed to the properties and assets of the Servicer substantially as a whole and which purchases or otherwise
      succeeds to all or substantially all of the electric transmission and distribution business of the Servicer (or, if the transmission and distribution business is split, any Person which the LPSC designates in connection with an order relating to such
      split), or

     

    (e)           which may otherwise purchase or succeed to all or substantially all of the electric transmission and distribution business of the Servicer (or,
      if the transmission and distribution business is split, any Person which the LPSC designates in connection with an order relating to such split),

     

    which Person in any of the foregoing cases executes an agreement of assumption to perform every obligation of the Servicer under this Agreement and undertake to collect, account and remit amounts in respect of the Storm Recovery Charges from
      Customers for the benefit and account of the Issuer (or its financing party), shall be the successor to the Servicer under this Agreement without the execution or filing of any document or any further act by any of the parties to this Agreement; provided, however, that:

     

    
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     (i)          immediately after giving effect to such transaction, the representations and warranties made pursuant to Section 6.01 shall be true and correct
      and no Servicer Default, and no event that, after notice or lapse of time, or both, would become a Servicer Default, shall have occurred and be continuing;

     

     (ii)         the Servicer shall have delivered to the Issuer, the Rating Agencies, the LPSC and the Trustee an Officers’ Certificate and an Opinion of Counsel
      each stating that such consolidation, merger, conversion, division or succession and such agreement of assumption comply with this Section 6.03 and that all conditions precedent, if any, provided for in this Agreement relating to such transaction
      have been complied with;

     

     (iii)        the Servicer shall have delivered to the Issuer, the Rating Agencies, the LPSC and the Trustee an Opinion of Counsel either

     

    (A)          stating that, in the opinion of such counsel, all filings to be made by the Servicer, including filings with the LPSC pursuant to the
      Securitization Act and the UCC, that are necessary fully to preserve and protect the interests of each of the Issuer and the Trustee in the Storm Recovery Property have been executed and filed and are in full force and effect, and reciting the
      details of such filings, or

     

    (B)          stating that, in the opinion of such counsel, no such action is necessary to preserve and protect such interests;

     

     (iv)        the Rating Agencies shall have received prior written notice of such transaction and, if such Person is not an Affiliate of Cleco Power, the
      Rating Agency Condition shall be satisfied; and

     

     (v)         the Servicer shall have delivered to the Issuer, the LPSC, the Trustee and the Rating Agencies an opinion of independent tax counsel (as selected
      by, and in form and substance satisfactory to, the Servicer, and which may be based on a ruling from the Internal Revenue Service) to the effect that, for federal income tax purposes, such transaction will not result in a material adverse federal
      income tax consequence to the Issuer or the Storm Recovery Bondholders.

     

    The Servicer shall not consummate any transaction referred to in clauses (a), (b), (c), (d) or (e) above except upon execution of the above-described agreement of assumption and compliance with clauses (i), (ii), (iii), (iv) and (v) above. When
      any Person acquires the properties and assets of the Servicer substantially as a whole or otherwise becomes the successor to the Servicer in accordance with the terms of this Section 6.03, then upon the satisfaction of all of the other conditions of
      this Section 6.03, the Servicer shall automatically and without further notice be released from its obligations hereunder.

     

    
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    Section 6.04          ASSIGNMENT OF THE SERVICER’S OBLIGATIONS.  The Servicer will not voluntarily assign or outsource its obligations hereunder except with the LPSC’s prior
      approval and upon a demonstration that the costs under an alternative arrangement will be no more than if the Servicer continued to perform such services itself, or the assignment or outsourcing is to another Affiliate that will provide such services
      at the same or lower cost than if the Servicer continued to perform such services itself, or the assignment or outsourcing is to a successor entity to the Servicer as the result of a merger or other restructuring that assumes the Servicer’s
      responsibilities as the servicer and administrator.

     

    Section 6.05          LIMITATION ON LIABILITY OF THE SERVICER AND OTHERS.  Neither the Servicer nor any of the managers, officers, employees or agents of the Servicer shall be
      liable to the Issuer, its managers, the Storm Recovery Bondholders, the Trustee or any other Person, except as provided under this Agreement, for any action taken or for refraining from the taking of any action pursuant to this Agreement or for
      errors in judgment; provided, however, that this provision shall not protect the Servicer against any liability that would otherwise be imposed by reason of willful
      misconduct, bad faith or negligence in the performance of its duties under this Agreement. The Servicer and any manager or officer or employee or agent of the Servicer may rely in good faith on the advice of counsel or on any document of any kind,
      prima facie properly executed and submitted by any Person respecting any matters arising under this Agreement.

     

    Except as provided in this Agreement (including but not limited to Section 5.02(c) and 5.02(d) of this Agreement), the Servicer shall not be under any obligation to appear in, prosecute or defend any Proceeding that is not directly related to one
      of the Servicer’s enumerated duties in this Agreement or related to its obligation to pay indemnification, and that in its reasonable opinion may cause it to incur any expense or liability; provided, however,
      that the Servicer may, in respect of any Proceeding, undertake any reasonable action that is not specifically identified in this Agreement as a duty of the Servicer but that the Servicer may deem necessary or desirable in respect of this Agreement
      and the rights and duties of the parties to this Agreement and the interests of the Storm Recovery Bondholders under this Agreement. The Servicer’s costs and expenses incurred in connection with any such Proceeding shall be payable from the
      Collection Account as an Operating Expense (and shall not be deemed to constitute a portion of the Servicing Fee) in accordance with Section 8.02 of the Indenture. The Servicer’s obligations pursuant to this Section 6.05 shall survive and continue
      notwithstanding the fact that the payment of Operating Expenses pursuant to the Indenture may be delayed (it being understood that the Servicer may be required initially to advance its own funds to satisfy its obligations hereunder).

     

    Section 6.06          CLECO POWER NOT TO RESIGN AS SERVICER.  Subject to the provisions of Sections 6.03 and 6.04, Cleco Power shall not resign from the obligations and duties
      imposed on it as Servicer under this Agreement unless the Servicer delivers to the Issuer, the Trustee, the LPSC and each Rating Agency written notice of such resignation at the earliest practicable time and, concurrently therewith or promptly
      thereafter, an opinion of Independent legal counsel that the Servicer’s performance of its duties under this Agreement shall no longer be permissible under applicable law. No such resignation shall become effective until a Successor Servicer shall
      have assumed the servicing obligations and duties hereunder of the Servicer in accordance with Section 7.04.

     

    
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    Section 6.07          SERVICING FEE.

     

    (a)          The Issuer agrees to pay the Servicer on each Payment Date, solely to the extent amounts are available therefor in accordance with the Indenture,
      the Servicing Fee with respect to the Storm Recovery Bonds. For so long as:

     

    (i)           Cleco Power or one of its Affiliates is the Servicer,

     

    (ii)          a successor to Cleco Power or one of its Affiliates is the Servicer due to the operation of the provisions of Section 6.03, or

     

    (iii)         any Person is the Successor Servicer hereunder pursuant to the provisions of Section 6.03 if the predecessor Servicer was Cleco Power or one of
      its Affiliates,

     

    the amount of the Servicing Fee paid to the Servicer annually shall equal 0.05 % of the Storm Recovery Bond Balance on the Issuance Date and shall be prorated based
      on the fraction of a calendar year during which the Servicer provides any of the services set forth in this Agreement.

     

    (b)          In the event that a Successor Servicer not an Affiliate of Cleco Power is appointed in accordance with Section 7.04, the amount of Servicing Fee
      paid to the Servicer annually shall be agreed upon by the Successor Servicer and the Trustee but shall in no event exceed 0.60% of the Storm Recovery Bond Balance on the Issuance Date without the consent of the LPSC and shall be prorated based on the
      fraction of a calendar year during which the Successor Servicer provides any of the services set forth in this Agreement. The foregoing fees set forth in Section 6.07(a) and this Section 6.07(b) constitute a fair and reasonable price for the
      obligations to be performed by the Servicer. The Servicer shall have indemnification obligations for an increased Servicing Fee under certain circumstances, in accordance with Section 6.02(h).

     

    (c)          The Servicing Fee, together with any portion of the Servicing Fee that remains unpaid from prior Payment Dates, will be paid solely to the extent
      funds are available. The Servicing Fee will be paid prior to the payment of or provision for any amounts in respect of interest on and principal of the Storm Recovery Bonds.

     

    Section 6.08          COMPLIANCE WITH APPLICABLE LAW.  The Servicer covenants and agrees, in servicing the Storm Recovery Property, to comply in all material respects with all
      laws applicable to, and binding upon, the Servicer and relating to such Storm Recovery Property the noncompliance with which would have a material adverse effect on the value of the Storm Recovery Property; provided,
      however, that the foregoing is not intended to, and shall not, impose any liability on the Servicer for noncompliance with any Requirement of Law that the Servicer is contesting in good faith in accordance
      with its customary standards and procedures.  It is expressly acknowledged that the payment of fees to the Rating Agencies shall be at the expense of the Issuer and that, if the Servicer advances such payments to the Rating Agencies, the Issuer shall
      reimburse the Servicer for any such advances.

     

    
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    Section 6.09          SERVICER EXPENSES.  Except as expressly provided elsewhere in this Agreement, the Servicer will not be reimbursed for any expenses incurred by it in
      connection with its activities hereunder, including taxes imposed on the Servicer and expenses incurred in connection with reports to Storm Recovery Bondholders, and external information technology costs, bank wire fees and internal legal fees
      related to this Agreement. The Servicer is entitled to receive reimbursement for its out-of-pocket costs for external accounting and external legal services as well as for other items of costs that will be incurred annually to support and service the
      Storm Recovery Bonds after issuance, as provided in the Financing Order.

     

    Section 6.10          APPOINTMENTS.  The Servicer may at any time appoint a subservicer or agent to perform all or any portion of its obligations as Servicer hereunder; provided, however, that unless such Person is an Affiliate of Cleco Power, the Rating Agency Condition shall have been satisfied in connection therewith; provided further
      that the Servicer shall remain obligated and be liable to the Issuer for the servicing and administering of the Storm Recovery Property in accordance with the provisions hereof without diminution of such obligation and liability by virtue of the
      appointment of such subservicer or agent and to the same extent and under the same terms and conditions as if the Servicer alone were servicing and administering the Storm Recovery Property. The fees and expenses of the subservicer or agent shall be
      as agreed between the Servicer and its subservicer or agent from time to time, and none of the Issuer, the Trustee or the Storm Recovery Bondholders shall have any responsibility therefor. Any such appointment shall not constitute a Servicer
      resignation under Section 6.06. In the event any subservicer participates in the “servicing function” within the meaning of Item 1122 of Regulation AB, the Servicer shall be responsible for obtaining from each subservicer and delivering to the Issuer
      any assessment of compliance and attestation required to be delivered by the Servicer under Section 3.03.

     

    Section 6.11          NO SERVICER ADVANCES.  The Servicer shall not make any advances of interest on or principal of the Storm Recovery Bonds.

     

    Section 6.12          REMITTANCES.  (a) The Servicer shall remit Storm Recovery Charges to the Trustee each Servicer Business Day, but in no event later than two Servicer
      Business Days following such Servicer Business Day, based on estimated daily collections using a weighted average balance of days outstanding on retail bills and prior year write-off experience (the “Daily Remittance”)in
      all respects as provided in Annex 1 and shall make such adjustments as are set out in Annex 1 to adjust for any estimates of actual Storm Recovery Charges actually remitted to the Trustee.  The Servicer will remit those Storm Recovery Charges for any
      Servicer Business Day  no  later than the second Servicer Business Day after that Servicer Business Day. Cleco Power will not be required to credit Customers or the Issuer with any earnings accruing to Cleco Power on transferred and untransferred
      daily collections of Storm Recovery Charges.

     

    (a)  Prior to  (or concurrently with each remittance to the General Subaccount of the Collection Account pursuant to this Section 6.12, the Servicer shall provide written notice (which may be via electronic
      means, including electronic mail) to the Trustee and, upon request, to the Issuer of each such remittance (including the exact dollar amount to be remitted).  The Servicer shall also, promptly upon receipt, remit to the Collection Account any other
      proceeds of the Trust Estate that it may receive from time to time.  Reconciliations of bank statements shall be as set forth in Exhibit A.

     

    
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    (b) The Servicer agrees and acknowledges that it holds all Storm Recovery Charge payments collected by it and any other proceeds for the Trust Estate received by it for the benefit of the Trustee and the Holders and that
      all such amounts will be remitted by the Servicer in accordance with this Section 6.12 without any surcharge, fee, offset, charge or other deduction.  The Servicer further agrees not to make any claim to reduce its obligation to remit all
      Storm Recovery Charge payments collected by it in accordance with this Agreement

     

    (c) Unless otherwise directed to do so by the Issuer, the Servicer shall be responsible for selecting Eligible Investments in which the funds in the Collection Account shall be invested pursuant to Section 8.03 of the
      Indenture.

     

    Section 6.13          PROTECTION OF TITLE.  The Servicer shall execute and file all filings, including filings with the Louisiana UCC Filing Officer pursuant to the
      Securitization Act and the Louisiana UCC, and cause to be executed and filed all filings, all in such manner and in such places as may be required by law fully to preserve, maintain and protect the interests of the Issuer and the Trustee in the Storm
      Recovery Property, including all filings required under the Securitization Act and the Louisiana UCC relating to the transfer of the ownership or security interest in the Storm Recovery Property by the Seller to the Issuer or any security interest
      granted by the Issuer in the Storm Recovery Property. The Servicer shall deliver (or cause to be delivered) to the Issuer, the LPSC and the Trustee file-stamped copies of, or filing receipts for, any document filed as provided above, as soon as
      available following such filing.

     

    Section 6.14          MAINTENANCE OF OPERATIONS.  To the extent that any interest in the Storm Recovery Property is assigned, sold, or transferred to an assignee, Cleco Power
      shall enter into a contract with that assignee that requires Cleco Power to continue to operate its electric transmission and distribution system in order to provide electric services to Cleco Power’s Customers;  and, further, Cleco Power will
      undertake to collect, account for  and remit amounts in respect of the Storm Recovery Charges for the benefit of such assignee (or its financing party); provided, however, that this provision shall not prohibit Cleco Power from selling, assigning, or
      otherwise divesting its electric transmission and distribution systems or any part thereof so long as the entity or entities acquiring such system agree to continue operating the facilities to provide electric service to Cleco Power’s LPSC’s
      jurisdictional Customers.

     

    ARTICLE VII

     

    SERVICER DEFAULT

     

    Section 7.01          SERVICER DEFAULT.  If any one of the following events (a “Servicer Default”) occurs and is continuing:

     

    (a)          any failure by the Servicer to remit to the Collection Account, on behalf of the Issuer, any required remittance by the date that such remittance
      must be made that continues unremedied for a period of five Servicer Business Days after the date on which written notice thereof shall have been given to the Servicer and the LPSC by the Issuer or the Trustee;

     

    
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    (b)          any failure by the Servicer to duly observe or perform in any material respect any other covenant or agreement of the Servicer set forth in this
      Agreement (other than as provided in Section 7.01(a) or (c)) or any other Basic Document to which it is a party in such capacity, which failure

     

     (i)          materially and adversely affects the Storm Recovery Property or the timely collection of the Storm Recovery Charges or the rights of the Storm
      Recovery Bondholders, and

     

     (ii)          continues unremedied for a period of 60 days after the date on which written notice thereof shall have been given to the Servicer by the
      Trustee, the LPSC (with a copy to the Trustee) or the Issuer or after discovery of such failure by an officer of the Servicer, as the case may be;

     

    (c)          any failure by the Servicer duly to perform its obligations under Section 4.01(b) of this Agreement in the time and manner set forth therein,
      which failure continues unremedied for a period of five Servicer Business Days;

     

    (d)          any representation or warranty made by the Servicer in this Agreement or any other Basic Document proves to have been incorrect when made, which
      has a material adverse effect on the Issuer or the Storm Recovery Bondholders, and which material adverse effect continues unremedied for a period of 60 days after the date on which written notice thereof shall have been given to the Servicer by the
      Issuer (with a copy to the Trustee) or the Trustee or after discovery of such failure by an officer of the Servicer, as the case may be; or

     

    (e)          an Insolvency Event occurs with respect to the Servicer;

     

    then, so long as the Servicer Default shall not have been remedied, the Trustee shall upon the written instruction of the Majority Holders and with the Issuer’s prior written consent (which shall not be unreasonably withheld), terminate all the
      rights and obligations (other than the indemnification obligations set forth in Section 6.02 hereof and the obligation under Section 7.04 to continue performing its functions as Servicer until a Successor Servicer is appointed) of the Servicer under
      this Agreement by notice then given in writing to the Servicer (a “Termination Notice”).

     

    In addition, upon a Servicer Default, the Storm Recovery Bondholders and the Trustee shall be entitled to (i) apply to the 19th Judicial District Court for the Parish of East Baton Rouge, Louisiana, for sequestration and payment to the Trustee of
      revenues arising with respect to the Storm Recovery Property, (ii) foreclose on or otherwise enforce the Lien on and security interests in the Storm Recovery Property and (iii) apply to the LPSC for an order that amounts arising from the Storm
      Recovery Charges be transferred to a separate account for the benefit of the Storm Recovery Bondholders, in accordance with the Securitization Act.

     

    
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    On or after the receipt by the Servicer of a Termination Notice, all authority and power of the Servicer under this Agreement, whether with respect to the Storm Recovery Property, the related Storm Recovery Charges or otherwise, shall, upon
      appointment of a Successor Servicer pursuant to Section 7.04, without further action, pass to and be vested in such Successor Servicer and, without limitation, the Trustee is hereby authorized and empowered to execute and deliver, on behalf of the
      predecessor Servicer, as attorney-in-fact or otherwise, any and all documents and other instruments, and to do or accomplish all other acts or things necessary or appropriate to effect the purposes of such Termination Notice, whether to complete the
      transfer of the Storm Recovery Property Documentation and related documents, or otherwise. The predecessor Servicer shall cooperate with the Successor Servicer, the Trustee and the Issuer in effecting the termination of the responsibilities and
      rights of the predecessor Servicer under this Agreement, including the transfer to the Successor Servicer for administration by it of all cash amounts that shall at the time be held by the predecessor Servicer for remittance, or shall thereafter be
      received by it with respect to the Storm Recovery Property or the related Storm Recovery Charges. As soon as practicable after receipt by the Servicer of such Termination Notice, the Servicer shall deliver the Storm Recovery Property Documentation to
      the Successor Servicer. All reasonable costs and expenses (including attorneys’ fees and expenses) incurred in connection with transferring the Storm Recovery Property Documentation to the Successor Servicer and amending this Agreement to reflect
      such succession as Servicer pursuant to this Section shall be paid by the predecessor Servicer upon presentation of documentation of such costs and expenses. All costs and expenses (including attorneys’ fees and expenses) incurred in connection with
      transferring the Storm Recovery Property Documentation to the Successor Servicer and amending this Agreement to reflect the succession as Servicer other than pursuant to this Section shall be paid by the party incurring such costs and expenses.
      Termination of Cleco Power’s rights as a Servicer shall not terminate Cleco Power’s rights or obligations in its individual capacity under the Sale Agreement (except rights thereunder deriving from its rights as the Servicer hereunder).

     

    Section 7.02          NOTICE OF SERVICER DEFAULT.  The Servicer shall deliver to the Issuer, to the Trustee, to the LPSC, and to each Rating Agency promptly after having obtained
      actual knowledge thereof, but in no event later than two Servicer Business Days thereafter, written notice in an Officers’ Certificate of any event or circumstance which, with the giving of notice or the passage of time, would become a Servicer
      Default under Section 7.01.

     

    Section 7.03          WAIVER OF PAST DEFAULTS.  The Trustee, with the written consent of the Majority Holders, may waive in writing in whole or in part any default by the
      Servicer in the performance of its obligations hereunder and its consequences, except a default in making any required remittances to the Trustee of SRC Collections from Storm Recovery Property in accordance with Section 6.12 of this Agreement. Upon
      any such waiver of a past default, such default shall cease to exist, and any Servicer Default arising therefrom shall be deemed to have been remedied for every purpose of this Agreement. No such waiver shall extend to any subsequent or other default
      or impair any right consequent thereto.

     

    
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    Section 7.04          APPOINTMENT OF SUCCESSOR.

     

    (a)          Upon the Servicer’s receipt of a Termination Notice pursuant to Section 7.01 or the Servicer’s resignation or removal in accordance with the terms
      of this Agreement, the Servicer shall continue to perform its functions as Servicer under this Agreement and shall be entitled to receive the requisite portion of the Servicing Fee and expenses reimbursement, until a Successor Servicer shall have
      assumed in writing the obligations of the Servicer hereunder as described below. In the event of the Servicer’s removal or resignation hereunder, the Trustee at the written direction and with the consent of the Majority Holders shall appoint a
      Successor Servicer with the Issuer’s prior written consent thereto (which consent shall not be unreasonably withheld), and the Successor Servicer shall accept its appointment by a written assumption in form acceptable to the Issuer and the Trustee
      and provide prompt written notice of such assumption to the Rating Agencies. In no event shall the Trustee be liable for its appointment of a Successor Servicer appointed at the written direction of the Majority Holders. If, within 30 days after the
      delivery of the Termination Notice, a new Servicer shall not have been appointed and accepted such appointment, the Trustee may petition the LPSC or a court of competent jurisdiction to appoint a Successor Servicer under this Agreement. A Person
      shall qualify as a Successor Servicer only if:

     

     (i)          such Person is permitted under LPSC Regulations to perform the duties of the Servicer pursuant to the Securitization Act, the Financing Order and
      this Agreement,

     

     (ii)         either (A) the LPSC has approved the appointment of the Successor Servicer or (B) 45 days have lapsed since the LPSC received notice of
      appointment of the Successor Servicer and the LPSC has neither approved nor disapproved that appointment,

     

     (iii)        the Rating Agency Condition shall have been satisfied, and

     

     (iv)        such Person enters into a servicing agreement with the Issuer having substantially the same provisions as this Agreement.

     

    (b)          Upon appointment, the Successor Servicer shall be the successor in all respects to the predecessor Servicer under this Agreement and shall be
      subject to all the responsibilities, duties and liabilities arising thereafter relating thereto placed on the predecessor Servicer and shall be entitled to the Servicing Fee and expenses reimbursement and all the rights granted to the predecessor
      Servicer by the terms and provisions of this Agreement.

     

    (c)          The Successor Servicer may not resign unless it is prohibited from serving as Servicer pursuant to this Agreement by law.

     

    Section 7.05          COOPERATION WITH SUCCESSOR.  The predecessor Servicer covenants and agrees with the Issuer that it will, on an ongoing basis, cooperate with the Issuer and
      Successor Servicer and provide whatever information is, and take whatever actions are, reasonably necessary to assist the Successor Servicer in performing its obligations hereunder.

     

    
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  ARTICLE VIII

   

  MISCELLANEOUS PROVISIONS

   

  Section 8.01          AMENDMENT.

   

  (a)          This Agreement may be amended by the Servicer and the Issuer, with the prior written consent of the Trustee and the satisfaction of the Rating
    Agency Condition; provided, however, that no amendment that would increase the ongoing financing costs, as defined in the Financing Order, shall be permitted without the prior approval of the LPSC under Section 8.12. Promptly after the execution of any
    such amendment or consent, the Issuer shall furnish written notification of the substance of such amendment or consent to each of the Rating Agencies.

   

  (b)          Notwithstanding Section 8.01(a) or anything to the contrary in this Agreement, the Servicer and the Issuer may amend the Issuer Annex in writing
    with prior written notice given to the Trustee and the Rating Agencies, but without the consent of the Trustee, any Rating Agency or any Holder, solely to address changes to the Servicer’s method of calculating SRC Collections as a result of changes to
    the Servicer’s current computerized Customer information system; provided that any such amendment shall not have a material adverse effect on the Holders of then Outstanding Storm Recovery Bonds.

   

  Prior to the execution of any amendment to this Agreement, the Issuer and the Trustee shall be entitled to receive and conclusively rely upon an Opinion of Counsel stating that the execution of such amendment is authorized or permitted by this
    Agreement and all conditions precedent, if any, provided for in this Agreement relating to such amendment have been satisfied  upon the Opinion of Counsel referred to in Section 3.01. The Issuer and the Trustee may, but shall not be obligated to, enter
    into any such amendment which affects their own rights, duties or immunities under this Agreement or otherwise. Notwithstanding Section 8.01(a) or anything to the contrary in this Agreement, this Agreement shall be amended automatically to comply with
    changes in law.

   

  
    Section 8.02         NOTICES.  All demands, notices and
        communications upon or to the Servicer, the Issuer, the LPSC, the Trustee or the Rating Agencies under this Agreement shall be in writing, delivered personally, via facsimile, by reputable overnight courier or by certified mail, return-receipt
        requested, and shall be deemed to have been duly given upon receipt

  

   

  (a)          in the case of the Servicer, to Cleco Power LLC, 2030 Donahue Ferry Road, Pineville, Louisiana 71360-5226, Attention: Treasurer;

   

  (b)          in the case of the Issuer, to Cleco Securitization I LLC, 505 Cleco Drive Office Number 16, Pineville, Louisiana 71360-5226, Attention: Manager;

   

  (c)          in the case of the Trustee, at its Corporate Trust Office;

   

  (d)          in the case of Moody’s, to Moody’s Investors Service, Inc., ABS/RMBS Monitoring Department, 25th Floor, 7 World
      Trade Center, 250 Greenwich Street, New York, New York 10007, Email: ServicerReports@moodys.com (all such notices to be delivered to Moody’s in writing by email);

   

  (e)          in the case of S&P, to Standard & Poor’s Ratings Group, Inc., Structured Credit Surveillance, 55 Water
      Street, New York, New York 10041, Telephone: (212) 438-8991, Email: servicer_reports@spglobal.com (all such notices to be delivered to S&P in writing by email); and

  

  

  
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  (f)           in the case of Fitch, to Fitch, Ratings, Inc., One State Street Plaza, New York, New York 10004, Attention: ABS Surveillance, Telephone: (212)
    908-0500;

   

  (g)          in the case of the Louisiana Commission, to Galvez Building, 12th Floor, 602 North Fifth Street, Baton Rouge, Louisiana 70802, Attention: Executive
    Secretary;

   

  or, as to each of the foregoing, at such other address as shall be designated by written notice to the other parties.

   

  
    Section 8.03         ASSIGNMENT.  Notwithstanding anything to the contrary contained herein, except as provided in Sections 6.03 and 6.04 and as provided in the provisions of
      this Agreement concerning the resignation or termination of the Servicer, this Agreement may not be assigned by the Servicer. Any purported assignment not in compliance with this Agreement shall be void.

  

   

  
    
      Section 8.04          LIMITATIONS ON RIGHTS OF OTHERS. 
          The provisions of this Agreement are solely for the benefit of the Servicer, the Issuer and, to the extent provided herein or in the other Basic Documents, Customers and the other Persons expressly referred to herein and the Trustee, on behalf of
          itself and the Storm Recovery Bondholders, and nothing in this Agreement, whether express or implied, shall be construed to give to any other Person any legal or equitable right, remedy or claim in the Storm Recovery Property and other amounts in
          Trust Estate or under or in respect of this Agreement or any covenants, conditions or provisions contained herein. Notwithstanding anything to the contrary contained herein, for the avoidance of doubt, any right, remedy or claim to which any
          Customer may be entitled pursuant to the Financing Order and this Agreement may be asserted or exercised only by the LPSC (or by the Attorney General of the State of Louisiana in the name of the LPSC) for the benefit of such Customer.

    

  

   

  
    
      Section 8.05         SEVERABILITY.  Any provision, or
          portion thereof, of this Agreement that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remainder of such provision
          (if any) or the remaining provisions hereof (unless such a construction shall be unreasonable), and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other
          jurisdiction.

    

  

   

  
    
      Section 8.06          SEPARATE COUNTERPARTS.  This
          Agreement may be executed by the parties hereto in separate counterparts, each of which when so executed and delivered shall be an original, but all such counterparts shall together constitute but one and the same instrument.

    

  

   

  
    
      Section 8.07         HEADINGS.  The headings of the
          various Articles and Sections herein are for convenience of reference only and shall not define or limit any of the terms or provisions hereof.

    

  

   

  
    31

    
      

  

  
    
      Section 8.08          GOVERNING LAW.  THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF LOUISIANA, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE
            DETERMINED IN ACCORDANCE WITH SUCH LAWS.

    

  

   

  
    
      Section 8.09          PLEDGE TO THE TRUSTEE.  The
          Servicer hereby acknowledges and consents to any pledge, assignment and grant of a security interest by the Issuer to the Trustee pursuant to the Indenture for the benefit of any Storm Recovery Bondholders of all right, title and interest of the
          Issuer in, to and under the Storm Recovery Property owned by the Issuer and the proceeds thereof and the pledge of any or all of the Issuer’s rights hereunder to the Trustee. Notwithstanding such assignment, in no event shall the Trustee have any
          liability for the representations, warranties, covenants, agreements or other obligations of the Issuer, hereunder or in any of the certificates, notices or agreements delivered pursuant hereto, as to all of which any recourse shall be had solely
          to the assets of the Issuer.

    

  

   

  
    
      Section 8.10          NONPETITION COVENANTS. 
          Notwithstanding any prior termination of this Agreement or the Indenture, but subject to a court’s rights to order the sequestration and payment of revenues arising with respect to the Storm Recovery Property pursuant to Section 1229(F) of the
          Securitization Act, the Servicer shall not, prior to the date which is one year and one day after the termination of the Indenture, petition or otherwise invoke or cause the Issuer to invoke the process of any Governmental Authority for the
          purpose of commencing or sustaining a case against the Issuer under any federal or state bankruptcy, insolvency or similar law or appointing a receiver, liquidator, assignee, trustee, custodian, sequestrator or other similar official of the
          Issuer or any substantial part of the property of the Issuer, or ordering the winding up or liquidation of the affairs of the Issuer.

    

  

   

  
    
      Section 8.11         TERMINATION.  This Agreement shall
          terminate when all Storm Recovery Bonds and related financing costs have been retired or redeemed in full and the funds relating thereto have been fully accounted for.

    

  

   

  
    
      Section 8.12          LPSC CONSENT.  Except as
          specifically set forth in Section 7.04, to the extent the consent of the LPSC is required to effect any amendment to or modification of this Agreement or any provision of this Agreement,

    

  

   

  (a)          the Servicer may request the consent of the LPSC by delivering to the LPSC’s executive director and general counsel a written request for such
    consent, which request shall contain:

   

   (i)          a reference to Docket No. U-35807 and a statement as to the possible effect of the amendment on ongoing financing costs;

   

   (ii)         an Officer’s Certificate stating that the proposed amendment or modification has been approved by all parties to this Agreement; and

   

   (iii)        a statement identifying the person to whom the LPSC or its staff is to address its consent to the proposed amendment or modification or request
    additional time;

  

  

  
    32

    
      

  

  (b)          The LPSC shall, within 30 days of receiving the request for consent complying with Section 8.12(a) above, either

   

   (i)          provide notice of its consent or its order denying consent to the person specified in Section 8.12(a)(iii) above, or

   

   (ii)         be conclusively deemed, on the 31st day after receiving the request for consent, to have consented to the proposed amendment or modification.

   

  Any amendment or modification requiring the consent of the LPSC as provided in this Section 8.12 shall become effective on the later of (i) the date proposed by the parties to such amendment or modification and (ii) the first day after the
    expiration of the 30-day period provided for in Section 8.12(b)(ii).

   

  Following the delivery of a notice to the LPSC by the Servicer under Section 8.12(a), the Servicer and the Issuer shall have the right at any time to withdraw from the LPSC further consideration of any notification of a proposed amendment. Such
    withdrawal shall be evidenced by the Servicer’s giving prompt written notice thereof to the LPSC, the Issuer and the Trustee.

   

  
    
      Section 8.13         LIMITATION OF LIABILITY.  It is
          expressly understood and agreed by the parties hereto that this Agreement is executed and delivered by the Trustee, not individually or personally but solely as Trustee in the exercise of the powers and authority conferred and vested in it, and
          that the Trustee, in acting hereunder, is entitled to all rights, benefits, protections, immunities and indemnities accorded to it under the Indenture.

    

  

   

  
    
      Section 8.14         RULE 17g-5  COMPLIANCE.  The
          Servicer agrees that any notice, report, request for satisfaction of the Rating Agency Condition, document or other information provided by the Servicer to any Rating Agency under this Agreement or any other Basic Document to which it is a party
          for the purpose of determining the initial credit rating of the Storm Recovery Bonds or undertaking credit rating surveillance of the Storm Recovery Bonds with any Rating Agency, or satisfy the Rating Agency Condition, shall be substantially
          concurrently posted by the Servicer on the 17g-5 Website.

    

  

   

  
    
      Section 8.15         TRUSTEE ACTIONS.  In acting
          hereunder, the Trustee shall have the rights, protections and immunities granted to it under the Indenture.

    

  

  

  

  
    33

    
      

  

  IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their respective officers as of the day and year first above written.

   

  	 	
          CLECO SECURITIZATION I LLC,

        
	 	
          as Issuer,

        
	 	 
	 	
          By:

        	 
	 	
          

          

        	
          Name:

        
	 	 	
          Title:

        

  

  

   

  	 	
          CLECO POWER LLC,

        
	 	
          as Servicer,

        
	 	 
	 	
          By:

        	 
	 	 	
          Name:

        
	 	 	
          Title:

        

  

  

  
    	
            Acknowledged and Accepted:

            The Bank of New York Mellon Trust Company, N.A.,

            not in its individual capacity but solely as

            Trustee on behalf of the Holders

            of the Storm Recovery Bonds

          	 
	 	 
	
            By:

          	 	 
	 	
            Name:

          	 
	 	
            Title:

          	 

  

  

  

  Signature Page to Storm Recovery Property Servicing Agreement

  

  

  
    
      

  

  
  SCHEDULE A

  TO

  STORM RECOVERY PROPERTY SERVICING AGREEMENT

   

  Proceedings pending or, to the Servicer’s best knowledge, threatened before any court, federal or State regulatory body, administrative agency or other governmental instrumentality having jurisdiction over the Servicer or its properties seeking any
    determination or ruling that might materially and adversely affect the Storm Recovery Property or the performance by the Servicer of its obligations under, or the validity or enforceability against the Servicer of, this Agreement:

   

  [None]

  

  

  
    Schedule A-1

    
      

  

  
   EXHIBIT A

   

  FORM OF MONTHLY SERVICER’S CERTIFICATE

   

  MONTHLY SERVICER’S CERTIFICATE

  Pursuant to Section 3.01(b) of the Storm Recovery Property Servicing Agreement dated as of ____________, 2022  by and between Cleco Power LLC, as Servicer, and Cleco Securitization I LLC, as Issuer
    (the “Servicing Agreement”), the Servicer does hereby certify as follows:

  Capitalized terms used but not defined in this Monthly Servicer’s Certificate have their respective meanings as set forth in the Servicing Agreement. References herein to certain sections and subsections are references to
    the respective sections or subsections of the Servicing Agreement.

  

  

  Beginning of Billing Period: __________

  End of Billing Period:           __________

  

  

  	
          Rate Class

        	
          a.           SRCAs in 

          Effect

        	
          b.           SRCAs

           Billed1

        	
          c.        Estimated 

          SRCA

           Collections 

          Deemed 

          Received2

        	
          d. Estimated 

          SRCA 

          Collections

           Remitted3

        
	
          Residential

        	 	 	 	 
	
          General Service – Nondemand

        	 	 	 	 
	
          General Service – Demand

        	 	 	 	 
	
          General Service – Primary

        	 	 	 	 
	
          Municipal General Service

        	 	 	 	 
	
          Large Power Service

        	 	 	 	 
	
          Lighting Service

        	 	 	 	 
	
          Standby Service

        	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	
          Total

        	 	 	 	 

  1 Storm restoration charges billed during the period.

  2 Estimated storm restoration charge collections deemed received based on weighted average balance of days outstanding and prior year write-off experience.

  3 Estimated storm restoration charge collections remitted (i.e., estimated storm restoration charges remitted daily, but no later than two Servicer business days of deemed
      collection date).

  

  

  	 	
          CLECO POWER LLC, as Servicer

        
	 	 	 
	 	
          By:

        	
          

          

        
	 	 	
          Name:

        
	 	 	
          Title:

        
	 	 	 
	
          cc: CLECO SECURITIZATION I LLC

        	 	 

  

  

  
    Exhibit A-1

    
      

  

  
  EXHIBIT B

   FORM OF SEMI-ANNUAL SERVICER’S CERTIFICATE

   

  Pursuant to Section 4.01(g)(i) of the Storm Recovery Property Servicing Agreement, dated as of [                      ], 2022 (the “Servicing Agreement”), between
    CLECO POWER LLC, as servicer and CLECO SECURITIZATION I LLC, the Servicer does hereby certify, for the              , 20    Payment Date (the “Current Payment Date”), as follows:

   

  (a) Capitalized terms used herein have their respective meanings as set forth in the Servicing Agreement or the Indenture. References herein to certain sections and subsections are references to the respective sections of
    the Servicing Agreement or the Indenture, as the context indicates.

   

  (i) Allocation of collections as of Current Payment Date allocable to principal and interest:

   

  a.          Principal

   

  	 	 	
          Aggregate

        
	
          i.

        	
          Tranche A-1

        	 
	
          ii.

        	
          Tranche A-2

        	 
	
          iii.

        	
          Total:

        	 

   

  b.          Interest

   

  	 	 	
          Aggregate

        
	
          i.

        	
          Tranche A-1

        	 
	
          ii.

        	
          Tranche A-2

        	 
	
          iii.

        	
          Total:

        	 

   

  (b) Outstanding Amount of Bonds prior to, and after giving effect to the payment on the current Payment Date and the difference, if any, between the Outstanding Amount specified in the Expected Amortization Schedule (after
    giving effect to payments to be made on such Payment Date under 1a above) and the principal balance to be Outstanding (following payment on current Payment Date):

   

  (i) Principal Balance Outstanding (as of the date of this certification):

   

  	
          i.

        	
          Tranche A-1

        	 
	
          ii.

        	
          Tranche A-2

        	 
	
          iii.

        	
          Total:

        	 

   

  
    Exhibit B-1

    
      

  

  (ii) Principal Balance to be Outstanding (following payment on current Payment Date):

   

  	
          i.

        	
          Tranche A-1

        	 
	
          ii.

        	
          Tranche A-2

        	 
	
          iii.

        	
          Total:

        	 

   

  (iii) Difference between (b) above and Outstanding Amount specified in Expected Amortization Schedule:

   

  	
          i.

        	
          Tranche A-1

        	 
	
          ii.

        	
          Tranche A-2

        	 
	
          iii.

        	
          Total:

        	 

   

  (c) All other transfers to be made on the current Payment Date, including amounts to be paid to the Trustee and to the Servicer:

   

  (i) Operating Expenses

   

  	
          i.

        	
          Trustee Fees and Expenses:

        	 
	
          ii.

        	
          Servicing Fee:

        	 
	
          iii.

        	
          Administration Fee:

        	 
	
          iv.

        	
          Independent Manager Fee:

        	 
	
          v.

        	
          Other Operating Expenses:

        	 
	
          vi.

        	
          Total:

        	 

   

  (ii) Other Payments

   

  	
          i.

        	
          Operating Expenses (payable pursuant to Section 

          8.02(e)(iv) of the Indenture):

        	 
	
          ii.

        	
          Funding of Capital Subaccount (to required 

          amount):

        	 
	
          iii.

        	
          Return on Capital Subaccount payable to Cleco 

          Securitization I LLC from investment earnings 

          on the capital subaccount not to exceed [ . ]% 

          per annum:

        	 
	
          iv.

        	
          Operating Expenses and Indemnity Amounts 

          payable pursuant to Section 8.02(e)(viii) of the 

          Indenture:

        	 
	
          v.

        	
          Deposits to Excess Funds Subaccount 

          (including the portion, if any, of investment 

          earnings on the Capital Subaccount in excess of 

          the amounts payable under (iii)):

        	 
	
          vi.

        	
          Total:

        	 

   

  
    Exhibit B-2

    
      

  

  (d) Estimated amounts on deposit in the Capital Subaccount and Excess Funds Subaccount after giving effect to the foregoing payments:

   

  (i) Capital Subaccount

   

  	
          i.

        	
          Total:

        	 

   

  (ii) Excess Funds Subaccount

   

  	
          i.

        	
          Total:

        	 

   

  
    Exhibit B-3

    
      

  

  IN WITNESS WHEREOF, the undersigned has duly executed and delivered this Semi-Annual Servicer’s Certificate this day of             .

   

  	
          CLECO POWER LLC,

          as Servicer

        	 
	 	 
	
          By:

          Name:

          Title:

        	 

   

  
    Exhibit B-4

    
      

  

  
  EXHIBIT C-1

   

  FORM OF SERVICER’S ANNUAL COMPLIANCE CERTIFICATE

   

  The undersigned hereby certifies that he/she is the duly elected and acting [                         ] of CLECO POWER LLC, as servicer (the “Servicer”) under the Storm Recovery Property Servicing Agreement
    dated as of [                      ], 2022 (the “Servicing Agreement”) between the Servicer and CLECO SECURITIZATION I LLC (the “Issuer”) and further that:

   

  1. The undersigned is responsible for assessing the Servicer’s compliance with the servicing criteria set forth in Item 1122(d) of Regulation AB (the “Servicing Criteria”).

   

  2. With respect to each of the Servicing Criteria, the undersigned has made the following assessment of the Servicing Criteria in accordance with Item 1122(d) of Regulation AB, with such discussion regarding the
    performance of such Servicing Criteria during the fiscal year ended December 31,            , and covered by Cleco Power’s annual report on Form 10-K (such fiscal year, the “Assessment Period”):

   

  	
          Regulation AB

           Reference

        	
          Servicing Criteria

        	
          Applicable

          Servicing Criteria

        
	 	
          General Servicing Considerations

        	 
	
          1122(d)(1)(i)

        	
          Policies and procedures are instituted to monitor any performance or other triggers and events of default in accordance with the transaction agreements.

        	
          Applicable; assessment below.

        
	
          1122(d)(1)(ii)

        	
          If any material servicing activities are outsourced to third parties, policies and procedures are instituted to monitor the third party's performance and compliance with such servicing activities.

        	
          Not applicable; no servicing activities were outsourced.

        
	
          1122(d)(1)(iii)

        	
          Any requirements in the transaction agreements to maintain a back-up servicer for pool assets are maintained.

        	
          Not applicable; documents do not provide for a back-up servicer.

        
	
          1122(d)(1)(iv)

        	
          A fidelity bond and errors and omissions policy is in effect on the party participating in the servicing function throughout the reporting period in the amount of coverage required by and otherwise in accordance
            with the terms of the transaction agreements.

        	
          Not applicable; LPSC rules impose credit standards on retail electric providers who handle customer collections and govern performance requirements of utilities.

        
	
          1122(d)(1)(v)

        	
          Aggregation of information, as applicable, is mathematically accurate and the information conveyed accurately reflects the information

        	
          Applicable

        
	 	
          Cash Collection and Administration

        	 
	
          1122(d)(2)(i)

        	
          Payments on pool assets are deposited into the appropriate custodial bank accounts and related bank clearing accounts no more than two business days of receipt, or such other number of days specified in the
            transaction agreements.

        	
          Applicable

        

  

  

  
    Exhibit C-1-1

    
      

  

  	
          1122(d)(2)(ii)

        	
          Disbursements made via wire transfer on behalf of an obligor or to an investor are made only by authorized personnel.

        	
          Applicable

        
	
          1122(d)(2)(iii)

        	
          Advances of funds or guarantees regarding collections, cash flows or distributions, and any interest or other fees charged for such advances, are made, reviewed and approved as specified in the transaction
            agreements.

        	
          Not applicable; no advances by the Servicer are permitted under the transaction agreements.

        
	
          1122(d)(2)(iv)

        	
          The related accounts for the transaction, such as cash reserve accounts or accounts established as a form of overcollateralization, are separately maintained (e.g., with respect to commingling of cash) as set
            forth in the transaction agreements.

        	
          Applicable, but no current assessment is required since transaction accounts are maintained by and in the name of the Trustee.

        
	
          1122(d)(2)(v)

        	
          Each custodial account is maintained at a federally insured depository institution as set forth in the transaction agreements. For purposes of this criterion, "federally insured depository institution" with
            respect to a foreign financial institution means a foreign financial institution that meets the requirements of Rule 13k-1(b)(1) of the Exchange Act.

        	
          Applicable, but no current assessment required; all "custodial accounts" are maintained by the Trustee.

        
	
          1122(d)(2)(vi)

        	
          Unissued checks are safeguarded so as to prevent unauthorized access.

        	
          Not applicable; all transfers made by wire transfer.

        
	
          1122(d)(2)(vii)

        	
          Reconciliations are prepared on a monthly basis for all asset-backed securities related bank accounts, including custodial accounts and related bank clearing accounts. These reconciliations are (A) mathematically
            accurate; (B) prepared within 30 calendar days after the bank statement cutoff date, or such other number of days specified in the transaction agreements; (C) reviewed and approved by someone other than the person who prepared the
            reconciliation; and (D) contain explanations for reconciling items. These reconciling items are resolved within 90 calendar days of their original identification, or such other number of days specified in the transaction agreements.

        	
          Applicable; assessment below.

        
	 	
          Investor Remittances and Reporting

        	 
	
          1122(d)(3)(i)

        	
          Reports to investors, including those to be filed with the SEC, are maintained in accordance with the transaction agreements and applicable SEC requirements. Specifically, such reports (A) are prepared in
            accordance with timeframes and other terms set forth in the transaction agreements; (B) provide information calculated in accordance with the terms specified in the transaction agreements; (C) are filed with the SEC as required by its rules and
            regulations; and (D) agree with investors' or the trustee's records as to the total unpaid principal balance and number of pool assets serviced by the Servicer.

        	
          Applicable; assessment below.

        

  

  

  
    Exhibit C-1-2

    
      

  

  	
          1122(d)(3)(ii)

        	
          Amounts due to investors are allocated and remitted in accordance with timeframes, distribution priority and other terms set forth in the transaction agreements.

        	
          Not applicable; investor records maintained by the Trustee..

        
	
          1122(d)(3)(iii)

        	
          Disbursements made to an investor are posted within two business days to the Servicer's investor records, or such other number of days specified in the transaction agreements.

        	
          Applicable

        
	
          1122(d)(3)(iv)

        	
          Amounts remitted to investors per the investor reports agree with cancelled checks, or other form of payment, or custodial bank statements.

        	
          Applicable; assessment below.

        
	 	
          Pool Asset Administration

        	 
	
          1122(d)(4)(i)

        	
          Collateral or security on pool assets is maintained as required by the transaction agreements or related pool asset documents.

        	
          Applicable; assessment below.

        
	
          1122(d)(4)(ii)

        	
          Pool assets and related documents are safeguarded as required by the transaction agreements.

        	
          Applicable; assessment below.

        
	
          1122(d)(4)(iii)

        	
          Any additions, removals or substitutions to the asset pool are made, reviewed and approved in accordance with any conditions or requirements in the transaction agreements.

        	
          Not applicable; no removals or substitutions of Storm Recovery property are contemplated or allowed under the transaction documents.

        
	
          1122(d)(4)(iv)

        	
          Payments on pool assets, including any payoffs, made in accordance with the related pool asset documents are posted to the Servicer's obligor records maintained no more than two business days after receipt, or
            such other number of days specified in the transaction agreements, and allocated to principal, interest or other items (e.g., escrow) in accordance with the related pool asset documents.

        	
          Applicable; assessment below.

        
	
          1122(d)(4)(v)

        	
          The Servicer's records regarding the pool assets agree with the Servicer's records with respect to an obligor's unpaid principal balance.

        	
          Not applicable; because underlying obligation (Storm Recovery charge) is not an interest bearing instrument

        
	
          1122(d)(4)(vi)

        	
          Changes with respect to the terms or status of an obligor's pool asset (e.g., loan modifications or re-agings) are made, reviewed and approved by authorized personnel in accordance with the transaction agreements
            and related pool asset documents.

        	
          Applicable; assessment below

        

  

  

  
    Exhibit C-1-3

    
      

  

  	
          1122(d)(4)(vii)

        	
          Loss mitigation or recovery actions (e.g., forbearance plans, modifications and deeds in lieu of foreclosure, foreclosures and repossessions, as applicable) are initiated, conducted and concluded in accordance
            with the timeframes or other requirements established by the transaction agreements.

        	
          Applicable; limited assessment below. Servicer actions governed by LPSC regulations.

        
	
          1122(d)(4)(viii)

        	
          Records documenting collection efforts are maintained during the period pool asset is delinquent in accordance with the transaction agreements. Such records are maintained on at least a monthly basis, or such
            other period specified in the transaction agreements, and describe the entity's activities in monitoring delinquent pool assets including, for example, phone calls, letters and payment rescheduling plans in cases where delinquency is deemed
            temporary (e.g., illness or unemployment).

        	
          Applicable, but does not require assessment since no explicit documentation requirement with respect to delinquent accounts are imposed under the transactional documents due to availability of "true-up"
            mechanism.

        
	
          1122(d)(4)(ix)

        	
          Adjustments to interest rates or rates of return for pool assets with variable rates are computed based on the related pool asset documents.

        	
          Not applicable; Storm Recovery charges are not interest bearing instruments.

        
	
          1122(d)(4)(x)

        	
          Regarding any funds held in trust for an obligor (such as escrow accounts): (A) such funds are analyzed, in accordance with the obligor's pool asset documents, on at least an annual basis, or such other period
            specified in the transaction agreements; (B) interest on such funds is paid, or credited, to obligors in accordance with applicable pool asset documents and state laws; and (C) such funds are returned to the obligor within 30 calendar days of
            full repayment of the related pool assets, or such other number of days specified in the transaction agreements.

        	
          Not Applicable; Servicer does not maintain deposit accounts for obligors.

        
	
          1122(d)(4)(xi)

        	
          Payments made on behalf of an obligor (such as tax or insurance payments) are made on or before the related penalty or expiration dates, as indicated on the appropriate bills or notices for such payments,
            provided that such support has been received by the Servicer at least 30 calendar days prior to these dates, or such other number of days specified in the transaction agreements.

        	
          Not applicable; Servicer does not make payments on behalf of obligors.

        
	
          1122(d)(4)(xii)

        	
          Any late payment penalties in connection with any payment to be made on behalf of an obligor are paid from the Servicer's funds and not charged to the obligor unless the late payment was due to the obligor's
            error or omission.

        	
          Not applicable; Servicer cannot make advances of its own funds on behalf of customers under the transaction documents.

        
	
          1122(d)(4)(xiii)

        	
          Disbursements made on behalf of an obligor are posted within two business days to the obligor's records maintained by the Servicer, or such other number of days specified in the transaction agreements.

        	
          Not applicable; Servicer cannot make advances of its own funds on behalf of customers to pay principal or interest on the bonds.

        

  

  

  
    Exhibit C-1-4

    
      

  

  	
          1122(d)(4)(xiv)

        	
          Delinquencies, charge-offs and uncollectible accounts are recognized and recorded in accordance with the transaction agreements.

        	
          Applicable; assessment below.

        
	
          1122(d)(4)(xv)

        	
          Any external enhancement or other support, identified in Item 1114(a)(1) through (3) or Item 1115 of Regulation AB, is maintained as set forth in the transaction agreements.

        	
          Not applicable; no external enhancement is required under the transaction documents.

        

  

  

  3. To the best of the undersigned's knowledge, based on such review, the Servicer is in compliance in all material respects with the applicable servicing criteria set forth above as of and for the period ending the end of
    the fiscal year ended , and covered by Cleco Power's annual report on Form 10-K. [If not true, include description of any material instance of noncompliance.]

   

  4. A registered independent public accounting firm has issued to us an attestation report in accordance with Section 1122(b) of Regulation AB on its assessment of compliance with the applicable servicing criteria as of and
    for the period ending the end of the fiscal year ended December 31,               , and covered by Cleco Power's annual report on Form 10-K.

   

  Executed as of this                            day of                     ,      .

  

  

  	 	
          CLECO POWER LLC

        
	 	 	 
	 	
          By:

        	
          

          

        
	 	 	
          Name:

        
	 	 	
          Title:

        

  

  

  
    Exhibit C-1-5

    
      

  

  
  EXHIBIT C-2

   

  FORM OF CERTIFICATE OF COMPLIANCE

   

  The undersigned hereby certifies that he/she is the duly elected and acting [                        ] of Cleco Power LLC as servicer (the “Servicer”) under the Storm Recovery Property Servicing Agreement
    dated as of [                          ], 2022 (the “Servicing Agreement”) between the Servicer and Cleco Securitization I LLC (the “Issuer”) and further that:

   

  1. A review of the activities of the Servicer and of its performance under the Servicing Agreement during the twelve months ended December 31, 20__ has been made under the supervision of the undersigned pursuant to Section
    3.03 of the Servicing Agreement; and

   

  2. To the best of the undersigned’s knowledge, based on such review, the Servicer has fulfilled all of its obligations in all material respects under the Servicing Agreement throughout the twelve months ended December 31,
    20__, except as set forth on Annex A hereto.

   

  Executed as of this             day of            ,

   

  	 	
          CLECO POWER LLC

        
	 	 
	 	
          By:

        	
          

          

        
	 	 	
          Name:

        
	 	 	
          Title:

        

  

  

  
    Exhibit C-2-1

    
      

  

  
  ANNEX A

   

  to Certificate of Compliance

   

  LIST OF SERVICER DEFAULTS

   

  The following Servicer Defaults, or events which with the giving of notice, the lapse of time, or both, would become Servicer Defaults known to the undersigned occurred during the year ended December 31, 20__:

  

  

  	
          Nature of Default

        	 	
          Status

        
	 	 	 

  

  

  
    ANNEX A-1

    
      

  

  
  ANNEX 1

  TO

  STORM RECOVERY PROPERTY SERVICING AGREEMENT

   

  SERVICING PROCEDURES

   

  1. Definitions.

   

  Capitalized terms used herein and not otherwise defined herein shall have the meanings ascribed to such terms in the Storm Recovery Property Servicing Agreement (the “Agreement”).

   

  2. Data Acquisition.

   

  a. Installation and Maintenance of Meters.  The Servicer shall cause to be installed, replaced and maintained meters in such places and in such condition as will enable the
    Servicer to obtain customer usage measurements consistent with its customary procedures and practices.

   

  b. Meter Reading.  The Servicer shall obtain usage measurements for each Customer, either directly or if applicable, from the Applicable MDMA consistent with its customary
    procedures and practices; provided, however, that the Servicer may estimate any Customer’s usage determined in accordance with applicable LPSC Regulations.

   

  c. Cost of Metering.  The Issuer shall not be obligated to pay any costs associated with the routine metering duties set forth in this Section 2, including the costs of installing,
    replacing and maintaining meters, nor shall the Issuer be entitled to any credit against the Servicing Fee for any cost savings realized by the Servicer as a result of new metering and/or billing technologies.

   

  3. Usage and Bill Calculation.

   

  The Servicer (a) shall obtain a calculation of each Customer’s usage (which may be based on data obtained from such Customer’s meter read or on usage estimates determined in accordance with applicable LPSC Regulations) in accordance with the
    Servicer’s customary procedures and practices and shall determine therefrom each Customer’s individual Storm Recovery Charges to be included on Bills issued by it to such Customer.

   

  4. Billing.

   

  The Servicer shall implement the Storm Recovery Charges at least forty-five (45) days after the closing date in accordance with the Financing Order and shall thereafter bill each Customer for the respective Customer’s outstanding current and past
    due Storm Recovery Charges accruing through the date on which such Storm Recovery Charges may no longer be billed under the Rate Schedule, all in accordance with the following:

   

  
    ANNEX 1-1

    
      

  

  a. Frequency of Bills; Billing Practices. In accordance with the Servicer’s then-existing policies and practices for its own charges, as such policies and practices may be modified
    from time to time, the Servicer shall generate and issue a Bill to each Customer, for such Customers’ Storm Recovery Charges once every applicable Billing Period, at the same time, with the same frequency and on the same Bill as that containing the
    Servicer’s own charges to such Customers.  In the event that the Servicer makes any material modification to these practices, it shall notify the Issuer, the Trustee, and the Rating Agencies as soon as practicable, and in no event later than 30
    Servicer Business Days after such modification goes into effect; provided, however, that the Servicer may not make any modification that will materially adversely affect the Holders. The initial Storm Recovery
    Charges shall be billed commencing on the first day of the first Billing Period of the first Cleco revenue month that begins at least forty-five (45) days after the date of issuance of the Storm Recovery Bonds.

   

  b. Format.

   

  i. Each Bill issued by the Servicer shall contain the charge corresponding to the respective Storm Recovery Charges owed by such Customer for the applicable Billing Period. The Storm Recovery Charges shall be separately
    identified as required by and in accordance with the terms of the Financing Order and Rate Schedule. The Servicer shall provide  Customers with the annual notice required by Section 4.01(g)(ii)(B) of the Agreement.

   

  ii. The Servicer shall conform to such requirements in respect of the format, structure and text of Bills delivered to Customers  in accordance with, if applicable, the Financing Order, Rate Schedules, other applicable
    tariffs and any other LPSC Regulations and any agreement with the LPSC staff. To the extent that Bill format, structure and text are not prescribed by applicable LPSC Regulations or Rate Schedules, the Servicer shall, subject to clause (i) above, determine the format, structure and text of all Bills in accordance with its reasonable business judgment, its Servicer policies and practices with respect to its own charges and prevailing
    industry standards.

   

  c. Delivery.  The Servicer shall deliver all Bills issued by it (i) by United States mail in such class or classes as are consistent with the policies and practices followed by the
    Servicer with respect to its own charges to its customers or (ii) by any other means, whether electronic or otherwise, that the Servicer may from time to time use to present its own charges to its customers. The Servicer shall pay from its own funds
    all costs of issuance and delivery of all Bills, including but not limited to printing and postage costs as the same may increase or decrease from time to time.

   

  5. Customer Service Functions.

   

  The Servicer shall handle all Customer inquiries and other Customer service matters according to the same procedures it uses to service Customers with respect to its own charges.

   

  
    ANNEX 1-2

    
      

  

  6. Collections; Payment Processing; Remittance.

   

  a. Collection Efforts, Policies, Procedures.

   

  i. The Servicer shall use reasonable efforts to collect all Billed SRCs from Customers as and when the same become due and shall follow such collection procedures as it follows with respect to comparable assets that it
    services for itself or others, including with respect to the following:

   

  A. The Servicer shall prepare and deliver overdue notices to Customers  in accordance with applicable LPSC Regulations and Servicer Policies and Practices.

   

  B. The Servicer shall apply late payment charges to outstanding Customer balances in accordance with applicable LPSC Regulations and as required by the Financing Order.

   

  C. The Servicer shall deliver verbal and written final notices of delinquency and possible disconnection in accordance with applicable LPSC Regulations and Servicer Policies and Practices.

   

  D. The Servicer shall adhere to and carry out disconnection policies in accordance with the Financing Orders, applicable LPSC Regulations and Servicer Policies and Practices.

   

  E. The Servicer may employ the assistance of collection agents to collect any past-due Storm Recovery Charges in accordance with Servicer Policies and Practices, applicable LPSC Regulations and applicable tariffs.

   

  F. The Servicer shall apply Customer deposits to the payment of delinquent accounts in accordance with applicable LPSC Regulations and Servicer Policies and Practices and according to the priorities set forth in Sections
    6(b)(ii), (iii), (iv) and (v) of this Annex I.

   

  ii. The Servicer shall not waive any late payment charge or any other fee or charge relating to delinquent payments, if any, or waive, vary or modify any terms of payment of any amounts payable by a Customer, in each case
    unless such waiver or action: (A) would be in accordance with the Servicer’s customary practices or those of any successor Servicer with respect to comparable assets that it services for itself and for others; (B) would not materially adversely affect
    the rights of the Holders; and (C) would comply with applicable law; provided, however, that notwithstanding anything in the Agreement or this Annex I to the contrary,
    the Servicer is authorized to write off any Billed SRCs, in accordance with Servicer Policies and Practices, that have remained outstanding for one hundred eighty (180) days or more.

   

  
    ANNEX 1-3

    
      

  

  iii. The Servicer shall accept payment from Customers in respect of Billed SRCs in such forms and methods and at such times and places as it accepts for payment of its own charges in accordance with, if applicable, the
    Financing Order, Rate Schedule, other applicable tariffs, other LPSC Regulations and Servicer Policies and Practices.

   

  b. Payment Processing; Allocation; Priority of Payments.

   

  i. The Servicer shall post all payments received to Customer accounts as promptly as practicable, and, in any event, substantially all payments shall be posted no later than three (3) Servicer Business Days after receipt.

   

  ii. If any Customer does not pay the full amount of any Bill to the Servicer, the amount paid by the Customer will be applied to all charges on the Bill, including without limitation electric service charges and all Storm
    Recovery Charges (under the Financing Order or future LPSC orders) and all similar securitization charges, based, as to a Bill with charges covering more than one month, on the chronological order of billing, and, as to those charges with the same
    billing date, pro-rata. In addition, such partial collections representing Storm Recovery Charges and any other similar securitization charges shall be allocated among all such securitization bonds pro-rata based upon the amounts billed with respect to
    each issuance of securitization bonds, provided that late fees and charges may be allocated to the Servicer as provided in the Rate Schedule.

   

  iii. The Servicer shall apply payments received to each Customer’s account in proportion to the charges contained on the outstanding Bill to such Customer. Any amounts collected by the Servicer that represent partial
    payments of the total Bill to a Customer shall be allocated as follows: (A) first to amounts owed to the Issuer, Cleco Power and any other Affiliate of Cleco Power which is owed “Storm Recovery Charges” as defined in the Securitization Law (excluding
    any late fees and interest charges), regardless of age, pro rata in proportion to their respective percentages of the total amount of their combined outstanding charges on such Bill; then (B) all late charges shall be allocated to the Servicer; provided that penalty payments owed on late payments of Storm Recovery Charges shall be allocated to the Issuer in accordance with the terms of the Rate Schedules. If more than one series of Storm Recovery Bonds is
    outstanding, the Servicer shall allocate amounts owed to the Issuer ratably based on the total amount of Storm Recovery Charges on such bill which were billed in respect of each such series. It is understood that such allocations may be made on a
    delayed basis in accordance with the reconciliations described in Section 6(e) of this Annex I.

   

  iv. The Servicer shall hold all over-payments for the benefit of the Issuer and Cleco Power and shall apply such funds to future Bill charges in accordance with clauses (ii) and (iii) (as applicable) as such charges become due.

   

  v. For Customers on a Budget Billing Plan, the Servicer shall treat SRC Collections received from such Customers as if such Customers had been billed for their respective Storm Recovery Charges in the absence of the Budget
    Billing Plan; partial payment of a Budget Billing Plan payment shall be allocated according to clause (ii) or (iii) (as applicable) and overpayment of a Budget Billing
    Plan payment shall be allocated according to clause (iv).

   

  
    ANNEX 1-4

    
      

  

  c. Accounts; Records.

   

  The Servicer shall maintain accounts and records as to the Storm Recovery Property accurately and in accordance with its standard accounting procedures and in sufficient detail (i) to permit reconciliation between payments or recoveries with respect
    to the Storm Recovery Property and the amounts from time to time remitted to the Collection Accounts in respect of the Storm Recovery Property and (ii) to permit the estimated SRC Collections held by the Servicer to be accounted for separately from the
    funds with which they may be commingled, so that the dollar amounts of estimated SRC Collections commingled with the Servicer’s funds may be properly identified and traced. The Servicer will perform periodic reconciliations (not less than annually) of
    estimated remittances (including the estimated write-off amount) with actual SRC Collections.

   

  d. Investment of SRC Collections Received.

   

  Prior to each Daily Remittance, the Servicer may invest SRC Collections received at its own risk and (except as required by applicable LPSC Regulations) for its own benefit. So long as the Servicer complies with its obligations under Section 6(c) of
    this Annex I, neither such investments nor such funds shall be required to be segregated from the other investment and funds of the Servicer.

   

  e. Calculation of Daily Remittance.

   

  i. For purposes of calculating the Daily Remittance, (i) all Billed SRCs shall be estimated to be collected the same number of days after billing as is equal to the Days Sales Outstanding then in effect (or on the next
    Servicer Business Day) and (ii) the Servicer will, on each Servicer Business Day but in no event later than two Servicer Business Days, remit to the Trustee for deposit in the Collection Account an amount equal to the product of the applicable Billed
    SRCs multiplied by one hundred percent less the system wide write-off percentage (or if available in the ordinary course of business, gross write-off percentage for each revenue class) used by the Servicer to calculate the most recent Periodic Billing
    Requirement. Such product shall constitute the amount of estimated SRC Collections for such Servicer Business Day.

   

  ii. As part of each Storm Recovery Charge Adjustment, pursuant to Section 4.01 of the Agreement, the Servicer will reconcile the amount of storm recovery charge remittances to the Trustee with the periodic payment
    requirement (including scheduled principal and interest payments on the storm recovery bonds and ongoing financing costs).The Servicer and the Issuer acknowledge and agree that the Servicer’s actual collections of Storm Recovery Charges on some days
    might exceed the Servicer’s estimated collections, and that the Servicer’s actual collections of Storm Recovery Charges on other days might be less than the Servicer’s estimated collections. The Servicer and the Issuer further acknowledge and agree
    that the amount of these variances are likely to be small and are not likely to be biased in favor of over-remittances or under-remittances. Consequently, so long as the Servicer faithfully makes all daily remittances based on weighted average days
    sales outstanding, as provided for herein, the Servicer and the Issuer agree that no actual or deemed investment earnings shall be payable in respect of such over-remittances or under-remittances.

  
    ANNEX 1-5

    
      

  

  iii. On or before the beginning of the first billing cycle in [September] and [March] of each year (or, in the case of any subsequent series, the corresponding date relating to the Storm Recovery Charge Adjustment for such
    series) in accordance with Section 4.01(b) of the Agreement, the Servicer shall, in a timely manner so as to perform all required calculations under such Section 4.01(b), update the Days Sales Outstanding and the system-wide write-off percentage (or if
    available in the ordinary course of business, gross write-off percentage for each revenue class) in order to be able to calculate the Periodic Billing Requirement for the next Storm Recovery Charge Adjustment and to calculate any change in the Daily
    Remittances for the next Calculation Period.

   

  iv. The Servicer and the Issuer acknowledge that, as contemplated in Section 8.01(b) of the Agreement, the Servicer may make certain changes to its current computerized Customer information system, which changes, when
    functional, would affect the Servicer’s method of calculating the SRC Collections estimated to have been received by the Servicer during each Collection Period as set forth in this Annex I. Should these changes
    to the computerized Customer information system become functional during the term of the Agreement, the Servicer and the Issuer agree that they shall review the procedures used to calculate the SRC Collections estimated to have been received in light
    of the capabilities of such new system and shall amend this Annex I in writing to make such modifications and/or substitutions to such procedures as may be appropriate in the interests of efficiency, accuracy,
    cost and/or system capabilities; provided, however, that the Servicer may not make any modification or substitution that will materially adversely affect the Holders. As soon as practicable, and in no event later than sixty (60) Servicer Business Days
    after the date on which all Customer accounts are being billed under such new system, the Servicer shall notify the Issuer, the Trustee and the Rating Agencies of the same.

   

  v. All calculations of collections, each update of the Days Sales Outstanding, the system-wide write-off percentage (or if available in the ordinary course of business, gross write-off percentage for each revenue class)
    and any changes in procedures used to calculate the estimated SRC Collections pursuant to this Section 6(e) shall be made in good faith, and in the case of any update pursuant to clause (iii) above or any
    change in procedures pursuant to clause (iv) above, in a manner reasonably intended to provide estimates and calculations that are at least as accurate as those that would be provided on the closing date
    utilizing the initial procedures.

   

  
    ANNEX 1-6

    
      

  

  f. Remittances.

   

  i. The Issuer shall cause to be established the Collection Accounts in the name of the Trustee in accordance with the Indenture.

   

  ii. The Servicer shall make remittances to the Collection Accounts in accordance with Section 6.12 of the Agreement.

   

  iii. In the event of any change of account or change of institution affecting any Collection Account, the Issuer shall provide written notice thereof to the Servicer not later than five (5) Business Days from the effective
    date of such change.

   

  
    ANNEX 1-7

    
      

  

  
  APPENDIX A

   

  DEFINITIONS

   

  The definitions contained in this Appendix A are applicable to the singular as well as the plural forms of such terms.

   

  “17g-5 Website” is defined in Section 10.18(a) of the Indenture.

  

  

  “Adjustment Date” means the date other than an Interim Adjustment Date on which any Storm Recovery Charge Adjustment (other than an interim (non-semi-annual) Storm Recovery Charge Adjustment) and/or any
    adjustment to allocation of storm recovery charges among Customer Classes, as applicable, becomes effective. The first Adjustment Date will be on or about [                   ], 202_ which may be more or less than six months from the Issuance Date, but
    in no event more than nine months therefrom, and all subsequent Adjustment Dates shall be on or about the same day of the sixth month after each prior adjustment date.

   

  “Administration Agreement” means the Administration Agreement dated as of [                        ], 2022, between Cleco Power, as Administrator, and the Issuer, as the same may be amended and supplemented
    from time to time.

   

  “Administrator” means Cleco Power as administrator under the Administration Agreement and each successor to or assignee of Cleco Power in the same capacity.

   

  “Affiliate” means, with respect to any specified Person, any other Person controlling or controlled by or under common control with such specified Person. For the purposes of this definition, control, when
    used with respect to any specified Person, means the power to direct the management and policies of such Person, directly or indirectly, whether through the ownership of voting securities, by contract or otherwise; and the terms controlling and
    controlled have meanings correlative to the foregoing.

   

  “Annual Accountant’s Report” has the meaning assigned to that term in Section 3.04 of the Servicing Agreement.

   

  “Applicable MDMA” means with respect to each Customer, any meter data management agent providing meter reading services for that Customer’s account.

   

  “Articles of Organization” means the articles of organization of the Issuer that was filed with the Louisiana Secretary of State on January 5, 2022, as the same may be amended and restated from time to time.

   

  “Basic Documents” means the Issuer LLC Agreement, the Articles of Organization, the Sale Agreement, the Servicing Agreement, the Administration Agreement, the Indenture, the Supplement, the Underwriting
    Agreement relating to the Storm Recovery Bonds and the Bill of Sale.

   

  “Bill” means each of the regular monthly bills, summary bills, opening bills and closing bills issued to Customers by Cleco Power on its own behalf and in its capacity as Servicer.

   

  
    APPENDIX A-1

    
      

  

  “Bill of Sale” has the meaning assigned to that term in the Sale Agreement.

   

  “Billed SRCs” means the amounts of Storm Recovery Charges billed by the Servicer..

   

  “Billing Period” means the period of approximately thirty (30) days for which the Servicer renders Bills.

   

  “Book-Entry Storm Recovery Bonds” means beneficial interests in the Storm Recovery Bonds, ownership and transfers of which shall be made through book entries by a Clearing Agency as described in Section 2.11
    of the Indenture.

   

  “Budget Billing Plan” means a payment plan made available by Cleco Power to Customers, who have had service for an established period of time and meet established rating standards, that uses averaged demand
    in calculating periodic obligations of the Customer.

   

  
    “Business Day” means any day other than a Saturday, a Sunday or a day on which banking institutions in New York, New York or New Orleans, Louisiana, are, or The Depository Trust
      Company is, required or authorized by law or executive order to remain closed.

     

  

  “Calculation Date” means, with respect to the Storm Recovery Bonds, the date on which the calculations and filings set forth in Section 4.01(b) will be made for each Storm Recovery Charge Adjustment. The
    first Calculation Date will be no later than [              ], 202_.

   

  “Capital Subaccount” has the meaning specified in Section 8.02(a) of the Indenture.

   

  “Cleco Power” means Cleco Power LLC, a Louisiana limited liability company, or its successor.

   

  “Clearing Agency” means an organization registered as a “clearing agency” pursuant to Section 17A of the Exchange Act.

   

  “Clearing Agency Participant” means a broker, dealer, bank, other financial institution or other Person for whom from time to time a Clearing Agency effects book-entry transfers and pledges of securities
    deposited with the Clearing Agency.

   

  “Collection Account” has the meaning specified in Section 8.02(a) of the Indenture.

   

  “Collection Period” means the period from and including the first day of a calendar month to but excluding the first day of the next calendar month.

   

  “Corporate Trust Office” has the meaning specified in Appendix A to the Indenture.

   

  “Customer Class” means each of the Storm Recovery Charge classes specified in the Rate Schedule SRCA Form of Storm Restoration Cost Adjustment Calculation Appendix B-1 to the Financing Order.

   

  “Customers” means any existing or future LPSC-jurisdictional customer who remain attached to Cleco Power’s (or its successor’s or assignee’s) electric transmission or distribution lines, and who, via such
    lines, receive any type of service from Cleco Power (or its successors or assignees) under rate schedules or special contracts approved by the LPSC.

   

  
    APPENDIX A-2

    
      

  

  “Daily Remittance” has the meaning specified in Section 6.12.

   

  “Days Sales Outstanding” means the average number of days Cleco Power’s monthly Bills to Customers in its service area remain outstanding during the calendar year immediately preceding the calculation thereof
    pursuant to Section 4.01(b) of the Agreement. The initial Days Sales Outstanding shall be 20 days until updated pursuant to Section 4.01(b) of the Agreement.

   

  “Default” means any occurrence that is, or with notice or the lapse of time or both would become, an Event of Default.

   

  “Event of Default” has the meaning specified in Section 5.01 of the Indenture.

   

  “Excess Funds Subaccount” has the meaning specified in Section 8.02(a) of the Indenture.

   

  “Excess Remittance” means the amount, if any, calculated for a particular Reconciliation Period, by which all estimated SRC Collections remitted to the Collection Account during such Reconciliation Period
    exceed actual SRC Collections received by the Servicer during such Reconciliation Period.

   

  “Exchange Act” means the Securities Exchange Act of 1934, as amended.

   

  “Expected Amortization Schedule” means, with respect to the Storm Recovery Bonds, or any Tranche thereof, the expected amortization schedule for principal thereof, as specified in the Supplement.

   

  “Financing Order” means the Financing Order U-35807-B issued on April 1, 2022 (Docket No. U-35807) by the LPSC pursuant to the Securitization Act.

   

  “Fitch” means Fitch, Inc.; or any successor thereto.

   

  “Formation Documents” means, collectively, the Articles of Organization, the Issuer LLC Agreement and any other document pursuant to which the Issuer is formed or governed, as the same may be amended and
    supplemented from time to time.

   

  “General Subaccount” has the meaning specified in Section 8.02(a) of the Indenture.

   

  “Governmental Authority” means any nation or government, any federal, state, local or other political subdivision thereof and any court, administrative agency or other
      instrumentality or entity exercising executive, legislative, judicial, regulatory or administrative function of government.

   

  “Holder” or “Storm Recovery Bondholder” means the Person in whose name a Storm Recovery Bond of any Tranche is registered on the Storm Recovery Bond Register.

   

  
    APPENDIX A-3

    
      

  

   

  “Indenture” means the Indenture, dated as of [                          ], 2022, between the Issuer and the Trustee and the Supplement (including the forms and terms of the Storm Recovery Bonds established
    thereunder), as the same may be amended and supplemented with respect to the Storm Recovery Bonds, from time to time.

   

  “Independent” means, when used with respect to any specified Person, that the Person:

   

  (a) is in fact independent of the Issuer, any other obligor upon the Storm Recovery Bonds, the Servicer and any Affiliate of any of the foregoing Persons,

   

  (b) does not have any direct financial interest or any material indirect financial interest in the Issuer, any such other obligor, the Servicer or any Affiliate of any of the foregoing Persons and

   

  (c) is not connected with the Issuer, any such other obligor, the Servicer or any Affiliate of any of the foregoing Persons as an officer, employee, promoter, underwriter, trustee, partner, director or person performing
    similar functions.

   

  “Insolvency Event” means, with respect to a specified Person,

   

  (a) the filing of a decree or order for relief by a court having jurisdiction in the premises in respect of such Person or any substantial part of its property in an involuntary case under any applicable federal or State
    bankruptcy, insolvency or other similar law now or hereafter in effect, or appointing a receiver, liquidator, assignee, custodian, trustee, sequestrator or similar official for such Person or for any substantial part of its property, or ordering the
    winding-up or liquidation of such Person’s affairs, and such decree or order shall remain unstayed and in effect for a period of 90 consecutive days, or

   

  (b) the commencement by such Person of a voluntary case under any applicable federal or State bankruptcy, insolvency or other similar law now or hereafter in effect, or the consent by such Person to the entry of an order
    for relief in an involuntary case under any such law, or the consent by such Person to the appointment of or taking possession by a receiver, liquidator, assignee, custodian, trustee, sequestrator or similar official for such Person or for any
    substantial part of its property, or the making by such Person of any general assignment for the benefit of creditors, or the failure by such Person generally to pay its debts as such debts become due, or the taking of action by such Person in
    furtherance of any of the foregoing.

   

  “Interim Adjustment Date” means the effective date of any interim (non-semi-annual) Storm Recovery Charge Adjustment.

   

  “Issuance Advice Letter” means the issuance advice letter submitted to the LPSC by Cleco Power pursuant to the Financing Order in connection with the issuance of the Storm Recovery Bonds.

   

  “Issuance Date” means the date on which the Storm Recovery Bonds, are to be originally issued in accordance with the Indenture and the Supplement.

   

  
    APPENDIX A-4

    
      

  

  “Issuer” means Cleco Securitization I LLC, a Louisiana limited liability company, or any successor thereto pursuant to the Indenture.

   

  “Issuer Annex” means Annex 1 of the Servicing Agreement.

   

  “Issuer LLC Agreement” means the Amended and Restated Limited Liability Company Operating Agreement between the Issuer and Cleco Power, as sole member, effective as of [     ], 2022, as the same may be
    amended or supplemented from time to time.

   

  “Lien” means a security interest, lien, charge, pledge, equity or encumbrance of any kind.

   

  “Losses” means collectively, any and all liabilities, obligations, losses, damages, payments, costs or expenses of any kind whatsoever.

   

  “Louisiana UCC Filing Officer” means the recorder of mortgages of Orleans Parish (or any successor by law) or the clerk of the court of any other parish in Louisiana.

   

  “LPSC” means the Louisiana Public Service Commission or any successor entity thereto.

   

  “LPSC Regulations” means any regulations, rules, orders or directives promulgated, issued or adopted by the LPSC.

   

  “Majority Holders” means the Holders of a majority of the Outstanding Amount of the Storm Recovery Bonds.

   

  “Moody’s” means Moody’s Investors Service Inc., or any successor thereto.

   

  “Officers’ Certificate” means a certificate signed, in the case of Cleco Power, by:

   

  (a) any manager, the chairman of the board, the chief executive officer, the president, the vice chairman or any executive vice president, senior vice president or vice president; and

   

  (b) the treasurer, any assistant treasurer, the secretary or any assistant secretary.

   

  “Operating Expenses” means, with respect to the Issuer, all fees, costs and expenses owed by the Issuer with respect to the Storm Recovery Bonds, including all amounts owed by the Issuer to the Trustee
    (including any indemnity payments to the Trustee), the Servicing Fee, the Administration Fee, the costs and expenses incurred by the Seller in connection with the performance of the Seller’s obligations under Section 4.07 of the Sale Agreement, the
    fees relating to the Storm Recovery Bonds, payable by the Issuer to the independent manager of the Issuer, administrative expenses, including external legal and external accounting fees, ratings maintenance fees, and all other costs and expenses
    recoverable by the Issuer under the terms of the Financing Order.

   

  “Opinion of Counsel” means one or more written opinions of counsel who may be an employee of or counsel to the Servicer or the Issuer, which counsel shall be reasonably acceptable to the Trustee, the LPSC,
    the Issuer or the Rating Agencies, as applicable, and which shall be in form reasonably satisfactory to the Trustee, if applicable.

   

  
    APPENDIX A-5

    
      

  

  “Outstanding” with respect to Storm Recovery Bonds means, as of the date of determination, all Storm Recovery Bonds theretofore authenticated and delivered under the Indenture except:

   

  (a) Storm Recovery Bonds theretofore canceled by the Storm Recovery Bond Registrar or delivered to the Storm Recovery Bond Registrar for cancellation;

   

  (b) Storm Recovery Bonds or portions thereof the payment for which money in the necessary amount has been theretofore deposited with the Trustee or any Paying Agent in trust for the Holders of such Storm Recovery Bonds; provided, however, that if such Storm Recovery Bonds are to be redeemed, notice of such redemption has been duly given pursuant to the Indenture or provision therefor, satisfactory to the Trustee; and

   

  (c) Storm Recovery Bonds in exchange for or in lieu of other Storm Recovery Bonds which have been authenticated and delivered pursuant to the Indenture unless proof satisfactory to the Trustee is presented that any such
    Storm Recovery Bonds are held by a bona fide purchaser;

   

  provided that in
      determining whether the Holders of the requisite Outstanding Amount of the Storm Recovery Bonds or any Tranche thereof have given any request, demand, authorization, direction, notice, consent or waiver hereunder or under any Basic Document, Storm
      Recovery Bonds owned by the Issuer, any other obligor upon the Storm Recovery Bonds, Cleco Power or any Affiliate of any of the foregoing Persons shall be disregarded and deemed not to be Outstanding, except that, in determining whether the Trustee
      shall be fully protected in relying upon any such request, demand, authorization, direction, notice, consent or waiver, only Storm Recovery Bonds that a Responsible Officer of the Trustee knows to be so owned shall be so disregarded. Storm Recovery
      Bonds so owned that have been pledged in good faith may be regarded as Outstanding if the pledgee establishes to the satisfaction of the Trustee the pledgee’s right so to act with respect to such Storm Recovery Bonds and that the pledgee is not the
      Issuer, any other obligor upon the Storm Recovery Bonds, the Servicer or any Affiliate of any of the foregoing Persons.

   

  “Outstanding Amount” means the aggregate principal amount of all Outstanding Storm Recovery Bonds, or, if the context requires, all Outstanding Storm Recovery Bonds of a Tranche of the Storm Recovery Bonds,
    Outstanding at the date of determination.

   

  “Paying Agent” means the entity so designated in Section 3.03 of the Indenture or any other Person that meets the eligibility standards for the Trustee specified in Section 6.11 of the Indenture and is
    authorized by the Issuer to make the payments of Principal of or premium, if any, or Interest on the Storm Recovery Bonds on behalf of the Issuer.

   

  “Payment Date” means, with respect to the Storm Recovery Bonds, or, if applicable, each Tranche thereof, the date or dates specified as Payment Dates for such Tranche in the Supplement, provided that if any
    such date is not a Business Day, the Payment Date shall be the Business Day immediately succeeding such date.

   

  
    APPENDIX A-6

    
      

  

  “Periodic Billing Requirement” means the aggregate dollar amount of Storm Recovery Charges that must be billed during a given period (i.e., semi-annually, or such other applicable period) so that the
    projected SRC Collections will be timely and sufficient to meet the entire aggregate Periodic Payment Requirement for that period, based upon: (i) forecast usage data for the period; (ii) forecast uncollectibles for the period; and (iii) forecast lags
    in collection of billed Storm Recovery Charges for the period. In the Storm Recovery Charge Adjustment process, the over or under collection from any period will be added to or subtracted from, as the case may be, the Periodic Billing Requirement for
    the upcoming period.

   

  “Periodic Payment Requirement” means the required periodic payment for a given period (i.e., semi-annually, or such other applicable period) due under (or otherwise payable with respect to) the Storm Recovery
    Bonds. As to be more fully specified in the bond financing documents, each periodic payment requirement includes: (a) the principal amortization of the Storm Recovery Bonds in accordance with the Expected Amortization Schedule (including deficiencies
    of previously scheduled principal for any reason); (b) periodic interest on the Storm Recovery Bonds (including any accrued and unpaid interest); (c) Operating Expenses (including any accrued and unpaid amounts); (d) any necessary replenishment of the
    Capital Subaccount, and (e) Issuer’s return on the capital investment made by Cleco Power in the Issuer (including any accrued and unpaid amounts so that Cleco Power can earn the return permitted under the Financing Order).

   

  “Person” means any individual, corporation, estate, partnership, joint venture, association, joint stock company, trust (including any beneficiary thereof), business trust, limited liability company,
    unincorporated organization or government or any agency or political subdivision thereof.

   

  “Proceeding” means any suit in equity, action at law or other judicial or administrative proceeding.

   

  “Projected Storm Recovery Bond Balance” means, as of any date, the anticipated Outstanding Amount of Storm Recovery Bonds, after giving effect to payment of the sum of the payment amounts provided for in the
    Expected Amortization Schedules for the Storm Recovery Bonds, to be paid on or before such date.

   

  “Rate Schedules” means Rate Schedule SRCA and Rate Schedule SCSA filed by the Seller pursuant to ordering paragraph 10 of the Financing Order.

   

  “Rating Agency” means any rating agency rating the Storm Recovery Bonds, at the time of issuance at the request of the Issuer, which initially shall be Moody’s, Fitch and Standard & Poor’s. If no such
    organization or successor is any longer in existence, “Rating Agency” shall be a nationally recognized statistical rating organization or other comparable Person designated by the Issuer, written notice of which designation shall be given to the
    Trustee, the LPSC and the Servicer.

   

  
    APPENDIX A-7

    
      

  

  “Rating Agency Condition” means, with respect to any action, at least ten (10) Business Days’ prior written notification to each Rating Agency of such action, and written
      confirmation from each of S&P and Moody’s to the Servicer, the Trustee and the Issuer that such action will not result in a suspension, reduction or withdrawal of the then current rating by such Rating Agency of any Tranche of the Storm Recovery
      Bonds and that prior to the taking of the proposed action no other Rating Agency shall have provided written notice to the Issuer that such action has resulted or would result in the suspension, reduction or withdrawal of the then current rating of
      any such Tranche of the Storm Recovery Bonds; provided, that, if within such ten (10) Business Day period, any Rating Agency (other than S&P) has neither replied to such notification nor responded in a manner that indicates that such Rating
      Agency is reviewing and considering the notification, then (i) the Issuer shall be required to confirm that such Rating Agency has received the Rating Agency Condition request, and if it has, promptly request the related Rating Agency Condition
      confirmation and (ii) if the Rating Agency neither replies to such notification nor responds in a manner that indicates it is reviewing and considering the notification within five (5) Business Days following such second (2nd) request, the applicable Rating Agency Condition requirement shall not be deemed to apply to such Rating Agency. For the purposes
      of this definition, any confirmation, request, acknowledgment or approval that is required to be in writing may be in the form of electronic mail or a press release (which may contain a general waiver of a Rating Agency’s right to review or consent).

   

  “Reconciliation Period” means, with respect to any Collection Period, the six-month period ending one month prior to each Adjustment Date.

   

  “Regulation AB” means the rules of the SEC promulgated under Subpart 229.1100—Asset Backed Securities (Regulation AB), 17 C.F.R. §§229.1100-229.1123, as such may be amended from time to time.

   

  “Released Parties” has the meaning specified in Section 6.02(f) of the Servicing Agreement.

   

  “Requirement of Law” means any foreign, federal, state or local laws, statutes, regulations, rules, codes or ordinances enacted, adopted, issued or promulgated by any Governmental Authority or common law.

   

  “Responsible Officer” means, with respect to the Trustee, any officer within the Corporate Trust Office of the Trustee, including any Vice President, Director, Managing Officer, associate, Assistant Vice
    President, Secretary, Assistant Secretary, or any other officer of the Trustee having direct responsibility for the administration of the Indenture and also, with respect to a particular matter, any other officer to whom such matter is referred because
    of such officer’s knowledge of and familiarity with the particular subject.

   

  “Sale Agreement” means the Storm Recovery Property Sale Agreement dated as of [                 ], 2022 relating to the Storm Recovery Property, between the Seller and the Issuer, as the same may be amended
    and supplemented from time to time.

   

  “Sale Date” means the date on which the Seller sells, transfers, assigns and conveys the Storm Recovery Property to which this Agreement relates to the Issuer.

   

  “SEC” means the U.S. Securities and Exchange Commission.

   

  “Securitization Act” means Act No. 64 of the Louisiana Regular Session of 2006, the “Louisiana Electric Utility Storm Recovery Securitization Act,” codified at La. R.S. 45:1226-1236.

   

  “Seller” means Cleco Power, or its successor, in its capacity as seller of the Storm Recovery Property to the Issuer pursuant to the Sale Agreement.

   

  
    APPENDIX A-8

    
      

  

  “Semi-annual Servicer’s Certificate” means the statement prepared by the Servicer and delivered to the Trustee with respect to the Storm Recovery Bonds, on or prior to each Payment Date therefor, the form of
    which is attached to the Indenture as Schedule 1.

   

  “Servicer” means Cleco Power, as the servicer of the Storm Recovery Property, and each successor to or assignee of Cleco Power (in the same capacity) pursuant to Section 6.03, 6.04, or 7.04 of the Servicing
    Agreement.

   

  “Servicer Business Day” means any day other than a Saturday or Sunday or a day on which banking institutions in the City of New Orleans, Louisiana, Chicago, Illinois,
    St. Paul, Minnesota or in the City of New York, New York, are required or authorized by law or executive order to remain closed, on which the Servicer maintains normal office hours and conducts business.

   

  “Servicer Default” means the occurrence and continuation of one of the events specified in Section 7.01 of the Servicing Agreement.

   

  “Servicer Policies and Practices” means, with respect to the Servicer’s duties under this Agreement, including Annex I, the policies and practices of the Servicer
    applicable to such duties that the Servicer follows with respect to comparable assets that it services for itself and, if applicable, others.

   

  “Servicing Agreement” or this “Agreement” means the Storm Recovery Property Servicing Agreement dated as of [                           ], 2022, between the Issuer and
    the Servicer, and acknowledged by the Trustee, relating to the Storm Recovery Property as the same may be amended and supplemented from time to time.

   

  “Servicing Fee” means the fee payable by the Issuer to the Servicer on each Payment Date with respect to the Storm Recovery Bonds, in an amount specified in Section 6.07 of the Servicing Agreement.

   

  “Servicing Standard” means the obligation of the Servicer to calculate, apply, remit and reconcile proceeds of the Storm Recovery Property, including SRC Collections, for the benefit of the Issuer and the
    Holders (i) with the same degree of care and diligence as the Servicer applies with respect to payments owed to it for its own account, (ii) in accordance with all applicable procedures and requirements established by the LPSC for collection of
    electric utility tariffs and (iii) in accordance with the other terms of the Servicing Agreement.

   

  “Sponsor” means Cleco Power in its capacity as the Person who organizes and initiates an asset-backed securities transaction by selling or transferring assets, either directly or indirectly, to the Issuer.

   

  “SRC Collections” means amounts constituting good funds collected by Servicer from any Person in respect of Storm Recovery Charges and Storm Recovery Property.

   

  “Standard & Poor’s” or “S&P” means Standard & Poor’s, a division of The McGraw-Hill Companies, or any successor thereto.

   

  
    APPENDIX A-9

    
      

  

  “State” means any one of the 50 states of the United States of America or the District of Columbia.

   

  “Storm Recovery Bond” means any of the Senior Secured Storm Recovery Bonds issued by the Issuer pursuant to the Indenture.

   

  “Storm Recovery Bond Balance” means, as of any date, the aggregate Outstanding Amount of Storm Recovery Bonds on such date.

   

  “Storm Recovery Bond Register” has the meaning specified in Section 2.05 of the Indenture.

   

  “Storm Recovery Bond Registrar” means the Trustee, in its capacity as keeper of the Storm Recovery Bond Register, or any successor to the Trustee in such capacity.

   

  “Storm Recovery Charge Adjustment” means each semi-annual adjustment to Storm Recovery Charges related to the Storm Recovery Property made in accordance with Section 4.01 of the Servicing Agreement and the
    Issuer Annex or in connection with the redemption or refunding by the Issuer of Storm Recovery Bonds.

   

  “Storm Recovery Charges” means the nonbypassable amounts to be charged for the use or availability of electric services, approved by the LPSC in the Financing Order to recover financing costs, that shall be
    collected by Cleco Power, its successors, assignees or other collection agents as provided for in the Financing Order.

   

  “Storm Recovery Property” means all of Seller’s rights and interest under the Financing Order (including, without limitation, rights to impose, collect and receive the “storm recovery charges” (as defined in
    the Securitization Act) approved in such Financing Order) issued by the LPSC on April 1, 2022 (Docket No. U-35807) pursuant to the Securitization Act, except the rights of Seller to earn and receive a rate of return on its invested capital in the
    Issuer, to receive administration and servicer fees, to withdraw funds from its restricted storm recovery reserve funded by the proceeds from the sale of the Storm Recovery Property, or to use the Seller’s remaining portion of those proceeds.

   

  “Storm Recovery Property Documentation” means all documents relating to the Storm Recovery Property, including copies of the Financing Order and all documents filed with the LPSC in connection with any Storm
    Recovery Charge Adjustment.

   

  “Successor Servicer” means (i) a successor to Cleco Power pursuant to Section 6.03 of the Servicing Agreement or (ii) a successor Servicer appointed by the Trustee pursuant to Section 7.04 of the Servicing
    Agreement which in each case will succeed to all the rights and duties of the Servicer under the Servicing Agreement.

   

  “Supplement” means the First Supplemental Indenture dated of even date herewith to the Indenture that authorizes the Storm Recovery Bonds.

   

  “Termination Notice” has the meaning specified in Section 7.01 of the Servicing Agreement.

   

  
    APPENDIX A-10

    
      

  

  “Third-Party Supplier” is a third-party supplier that is authorized by law to sell electric service to a customer using the transmission or distribution system of Cleco Power.

   

  “Tranche” means any one of the tranches of Storm Recovery Bonds, as specified in the Supplement.

   

  “Trust Estate” has the meaning specified in the Supplement.

   

  “Trustee” means The Bank of New York Mellon Trust Company, N.A., as trustee, or its successor or any successor Trustee under the Indenture.

   

  “UCC” means, unless the context otherwise requires, the Uniform Commercial Code, as in effect in the relevant jurisdiction, as amended from time to time.

   

  “Underwriting Agreement” has the meaning specified in the Indenture.

   

   

  

  
    APPENDIX A-11Exhibit 10.2

     

    

    STORM RECOVERY PROPERTY SALE AGREEMENT

     

    between

     

    CLECO SECURITIZATION I LLC

     

    Issuer

     

    and

     

    CLECO POWER, LLC

     

    Seller

     

    Dated as of                    , 2022

     

    
      
        

    

    
    TABLE OF CONTENTS

     

    	
            ARTICLE I DEFINITIONS

          	
            1

          
	 	
            Section 1.01

          	
            Definitions

          	
            1

          
	 	
            Section 1.02

          	
            Other Definitional Provisions

          	
            1

          
	
            ARTICLE II CONVEYANCE OF THE STORM RECOVERY PROPERTY

          	
            2

          
	 	
            Section 2.01

          	
            Conveyance of the Storm Recovery Property

          	
            2

          
	 	
            Section 2.02

          	
            Conditions to Conveyance of the Storm Recovery Property

          	
            2

          
	
            ARTICLE III REPRESENTATIONS AND WARRANTIES OF SELLER

          	
            3

          
	 	
            Section 3.01

          	
            Organization and Good Standing

          	
            4

          
	 	
            Section 3.02

          	
            Due Qualification

          	
            4

          
	 	
            Section 3.03

          	
            Power and Authority

          	
            4

          
	 	
            Section 3.04

          	
            Binding Obligation

          	
            4

          
	 	
            Section 3.05

          	
            No Violation

          	
            4

          
	 	
            Section 3.06

          	
            No Proceedings

          	
            4

          
	 	
            Section 3.07

          	
            Approvals

          	
            5

          
	 	
            Section 3.08

          	
            The Storm Recovery Property

          	
            5

          
	 	
            Section 3.09

          	
            Solvency

          	
            6

          
	 	
            Section 3.10

          	
            The Financing Order

          	
            7

          
	 	
            Section 3.11

          	
            State Action

          	
            7

          
	 	
            Section 3.12

          	
            No Court Order

          	
            8

          
	 	
            Section 3.13

          	
            Approvals Concerning the Storm Recovery Property

          	
            8

          
	 	
            Section 3.14

          	
            No Right of Louisiana Voters to Act by Initiative or Referendum

          	
            8

          
	 	
            Section 3.15

          	
            Tax Liens

          	
            8

          
	 	
            Section 3.16

          	
            Assumptions

          	
            9

          
	 	
            Section 3.17

          	
            Creation of the Storm Recovery Property

          	
            9

          
	 	
            Section 3.18

          	
            Prospectus

          	
            10

          
	 	
            Section 3.19

          	
            Nature of Representations and Warranties

          	
            10

          
	 	
            Section 3.20

          	
            Waivers of Legal Warranties

          	
            10

          
	
            ARTICLE IV COVENANTS OF THE SELLER

          	
            10

          
	 	
            Section 4.01

          	
            Seller’s Existence

          	
            10

          
	 	
            Section 4.02

          	
            No Liens or Conveyances

          	
            11

          
	 	
            Section 4.03

          	
            Use of Proceeds

          	
            11

          
	 	
            Section 4.04

          	
            Delivery of Collections

          	
            11

          

     

    

    
      i

      
        

    

    	 	
            Section 4.05

          	
            Notice of Liens

          	
            11

          
	 	
            Section 4.06

          	
            Compliance with Law

          	
            11

          
	 	
            Section 4.07

          	
            Covenants Related to the Storm Recovery Property

          	
            12

          
	 	
            Section 4.08

          	
            Protection of Title

          	
            13

          
	 	
            Section 4.09

          	
            Taxes

          	
            14

          
	 	
            Section 4.10

          	
            Filings Pursuant to Financing Order

          	
            14

          
	 	
            Section 4.11

          	
            Issuance Advice Letter

          	
            14

          
	 	
            Section 4.12

          	
            Rate Schedules

          	
            14

          
	 	
            Section 4.13

          	
            Notice of Breach to Rating Agencies, Etc.

          	
            14

          
	 	
            Section 4.14

          	
            Further Assurances

          	
            14

          
	
            ARTICLE V ADDITIONAL UNDERTAKINGS OF SELLER

          	
            14

          
	 	
            Section 5.01

          	
            LIABILITY OF THE SELLER; INDEMNITIES

          	
            14

          
	 	
            Section 5.02

          	
            Merger or Consolidation of, or Assumption of the Obligations of, the Seller

          	
            17

          
	 	
            Section 5.03

          	
            Limitation on Liability of the Seller and Others

          	
            19

          
	
            ARTICLE VI MISCELLANEOUS PROVISIONS

          	
            19

          
	 	
            Section 6.01

          	
            Amendment

          	
            19

          
	 	
            Section 6.02

          	
            Notices

          	
            20

          
	 	
            Section 6.03

          	
            Assignment by the Seller

          	
            21

          
	 	
            Section 6.04

          	
            Pledge to the Trustee

          	
            21

          
	 	
            Section 6.05

          	
            Limitations on Rights of Others

          	
            21

          
	 	
            Section 6.06

          	
            Severability

          	
            21

          
	 	
            Section 6.07

          	
            Separate Counterparts

          	
            21

          
	 	
            Section 6.08

          	
            Headings

          	
            21

          
	 	
            Section 6.09

          	
            Governing Law

          	
            21

          
	 	
            Section 6.10

          	
            Limitation of Liability

          	
            21

          
	 	
            Section 6.11

          	
            Waivers

          	
            22

          
	 	
            Section 6.12

          	
            Nonpetition Covenants

          	
            22

          
	
            APPENDIX A—DEFINITIONS

          	
            1

          
	
            EXHIBIT A  BILL OF SALE

          	
            1

          
	
            SCHEDULE 1 to BILL OF SALE

          	
            1

          

    

    

    
      ii

      
        

    

    
    STORM RECOVERY PROPERTY SALE AGREEMENT (this “Agreement”) dated as of                  , 2022, between CLECO SECURITIZATION I LLC, a Louisiana limited liability company (the “Issuer”), and CLECO
      POWER, LLC, a Louisiana limited liability company, as seller (the “Seller”).

     

    WHEREAS, the Issuer desires to purchase the Storm Recovery Property created pursuant to the Securitization Act and the Financing Order;

     

    WHEREAS, the Seller is willing to sell its rights and interests in and to the Storm Recovery Property to the Issuer;

     

    WHEREAS, the Issuer, in order to finance the purchase of the Storm Recovery Property, will issue the Storm Recovery Bonds under the Indenture; and

     

    WHEREAS, the Issuer, to secure its obligations under the Storm Recovery Bonds and the Indenture, will pledge its right, title and interest in the Storm Recovery Property and this Agreement to the
      Trustee for the benefit of the Storm Recovery Bondholders.

     

    NOW, THEREFORE, in consideration of the premises and the mutual covenants herein contained and intending to be legally bound hereby, the parties hereto agree as follows:

     

    ARTICLE I

     

    DEFINITIONS

     

    Section 1.01          Definitions.  Capitalized terms used herein and not otherwise defined herein have the meanings
      assigned to them in Appendix A to this Agreement.  Not all terms defined in Appendix A to this Agreement are used in this Agreement.

     

    Section 1.02          Other Definitional Provisions.

     

    (a)          “Agreement” means this Storm Recovery Property Sale Agreement, as the same may be amended and supplemented from time to
      time.

     

    (b)        Non-capitalized terms used herein which are defined in the Securitization Act, as the context requires, have the meanings
      assigned to such terms in the Securitization Act, but without giving effect to amendments to the Securitization Act after the date hereof which have a material adverse effect on the Issuer or the Storm Recovery Bondholders.

     

    (c)        All terms defined in this Agreement shall have such defined meanings when used in any certificate or other document made or
      delivered pursuant hereto unless otherwise defined therein.

     

    (d)         The words “hereof,” “herein,” “hereunder” and words of similar import when used in this Agreement shall refer to this
      Agreement as a whole and not to any particular provision of this Agreement; Section, Schedule and Exhibit references contained in this Agreement are references to Sections, Schedules and Exhibits in or to this Agreement unless otherwise specified;
      and the term “including” shall mean “including without limitation.”

     

    
      1

      
        

    

    (e)          The definitions contained in this Agreement are applicable to the singular as well as the plural forms of such terms.

     

    ARTICLE II

     

    CONVEYANCE OF THE STORM RECOVERY PROPERTY

     

    Section 2.01          Conveyance of the Storm Recovery Property.

     

    (a)          In consideration of the Issuer’s payment to or upon the order of the Seller of $         (the “Purchase Price”), subject
      to the satisfaction or waiver of the conditions specified in Section 2.02, the Seller does hereby irrevocably sell, transfer, assign, set over and otherwise convey to the Issuer, without recourse (subject, for the avoidance of doubt, to the express
      obligations of the Seller herein) or warranty, except as set forth herein, all right, title and interest of the Seller in and to the Storm Recovery Property as identified in the Bill of Sale delivered pursuant to Section 2.02(i) on or prior to the
      Closing Date (such sale, transfer, assignment, setting over and conveyance of the Storm Recovery Property to include, to the fullest extent permitted by the Securitization Act, the right to impose, collect and receive the Storm Recovery Charges, as
      the same may be adjusted from time to time).  Such sale, transfer, assignment, setting over and conveyance of the Storm Recovery Property is hereby expressly stated to be a sale or other absolute transfer and, pursuant to Section 1230(1) of the
      Securitization Act and other applicable law, is a true sale and is not a secured transaction and title and ownership has passed to the Issuer.  The preceding sentence is the statement referred to in Section 1230 of the Securitization Act.  The Seller
      agrees and confirms that upon payment of the Purchase Price and the execution and delivery of this Agreement and the Bill of Sale, the sale, transfer and assignment hereunder shall be effective and the Seller shall have no right, title or interest
      in, to or under the Storm Recovery Property.

     

    (b)        Subject to the satisfaction or waiver of conditions specified in Section 2.02, the Issuer does hereby purchase the Storm
      Recovery Property from the Seller for the consideration set forth in Section 2.01(a).

     

    (c)         The Seller and the Issuer each acknowledge and agree that the purchase price for the Storm Recovery Property sold pursuant
      to this Agreement is equal to its fair market value at the time of sale.

     

    Section 2.02        Conditions to Conveyance of the Storm Recovery Property.  The obligation of the Seller to sell,
      and the obligation of the Issuer to purchase the Storm Recovery Property on the Closing Date shall be subject to and conditioned upon the satisfaction or waiver of each of the following conditions:

     

    (i)          on or prior to the Closing Date, the Seller shall deliver to the Issuer a duly executed Bill of Sale identifying the Storm Recovery Property,
      substantially in the form of Exhibit A hereto;

     

    
      2

      
        

    

    (ii)          as of the Closing Date, the representations and warranties of the Seller in this Agreement shall be true and correct in all material respects
      and no material breach by the Seller of its covenants in this Agreement shall exist and the Seller shall have delivered to the Issuer and the Trustee an Officer’s Certificate to such effect and no Servicer Default shall have occurred and be
      continuing;

     

    (iii)          as of the Closing Date:

     

    (A)          the Issuer shall have sufficient funds available to pay the Purchase Price,

     

    (B)          all conditions set forth in the Indenture to the issuance of the Storm Recovery Bonds shall have been satisfied or
      waived, and

     

    (C)         the Seller is not insolvent and will not have been made insolvent by the sale of the Storm Recovery Property and the
      Seller is not aware of any pending insolvency with respect to itself.

     

    (iv)          on or prior to the Closing Date, the Seller shall have taken all actions required under the Securitization Act, the Financing Order and other
      applicable law for the Issuer to have ownership of the Storm Recovery Property, free and clear of all Liens other than Liens created by the Issuer pursuant to the Indenture; and the Issuer, or the Servicer on behalf of the Issuer, shall have taken
      any action required for the Issuer to grant the Trustee a first priority perfected security interest in the Trust Estate and maintain such security interest as of such date (including all actions required under the Securitization Act, the Financing
      Order and the Uniform Commercial Code as enacted in the State of Louisiana and each other applicable jurisdiction (the “UCC”));

     

    (v)           the Seller shall have delivered to each Rating Agency and to the Issuer any Opinions of Counsel requested by the Rating Agencies;

     

    (vi)         the Seller shall have delivered to the Trustee and the Issuer an Officer’s Certificate confirming the satisfaction of each relevant condition
      precedent specified in this Section 2.02; and

     

    (vii)          the Seller shall have received the Purchase Price in funds immediately available on the Closing Date.

     

    ARTICLE III

     

    REPRESENTATIONS AND WARRANTIES OF SELLER

     

    As of the Closing Date, the Seller makes the following representations and warranties on which the Issuer has relied and will rely in acquiring the Storm Recovery Property.  The following
      representations and warranties are made under existing law as in effect as of the Closing Date.  The Seller shall not be in breach of any representation or warranty herein as a result of a change in law occurring after the Closing Date, including by
      means of legislative enactment, constitutional amendment or voter initiative.  The representations and warranties shall survive the sale of the Storm Recovery Property to the Issuer and the pledge thereof on the Closing Date to the Trustee pursuant
      to the Indenture.

     

    
      3

      
        

    

    Section 3.01          Organization and Good Standing.  The Seller is a limited liability company duly organized and
      in good standing under the laws of the State of Louisiana, with limited liability company power and authority to own its properties and to conduct its business as currently owned or conducted.

     

    Section 3.02          Due Qualification.  The Seller is duly qualified to do business as a foreign limited liability
      company in good standing, and has obtained all necessary licenses and approvals, in all jurisdictions in which the ownership or lease of property or the conduct of its business requires such qualifications, licenses or approvals (except where the
      failure to so qualify or obtain such licenses and approvals would not be reasonably likely to have a material adverse effect on the Seller’s business, operations, assets, revenues or properties).

     

    Section 3.03         Power and Authority.  The Seller has the limited liability company power and authority to
      obtain the Financing Order and to execute and deliver this Agreement and to carry out its terms; the Seller has the limited liability company power and authority to own the rights and interests under the Financing Order, and to sell and assign the
      rights and interests under the Financing Order and in the Storm Recovery Property to the Issuer; and the execution, delivery and performance of this Agreement have been duly authorized by the Seller by all necessary limited liability company action.

     

    Section 3.04         Binding Obligation.  This Agreement constitutes a legal, valid and binding obligation of the
      Seller, enforceable against the Seller in accordance with its terms, subject to bankruptcy, receivership, insolvency, reorganization, moratorium, fraudulent transfer and other laws relating to or affecting creditors’ or secured parties’ rights
      generally from time to time in effect and to general principles of equity (including concepts of materiality, reasonableness, good faith and fair dealing), regardless of whether considered in a proceeding in equity or at law.

     

    Section 3.05          No Violation.  The consummation of the transactions contemplated by this Agreement and the
      fulfillment of the terms hereof do not: (i) conflict with or result in any breach of any of the terms and provisions of, or constitute (with or without notice or lapse of time) a default under, the articles of organization or limited liability
      company operating agreement of the Seller, or any indenture, mortgage, credit agreement or other agreement or instrument to which the Seller is a party or by which it or its properties is bound; (ii) result in the creation or imposition of any Lien
      upon any of the Seller’s properties pursuant to the terms of any such indenture, agreement or other instrument (except for any Lien created by the Issuer under the Basic Documents in favor of the Storm Recovery Bondholders and in accordance with
      Section 1231 of the Securitization Act); or (iii) violate any existing law or any existing order, rule or regulation applicable to the Seller of any Governmental Authority having jurisdiction over the Seller or its properties.

     

    Section 3.06        No Proceedings.  Except as disclosed in the Issuer’s prospectus dated            , 2022
      relating to the Storm Recovery Bonds (the “Prospectus”), there are no proceedings pending and, to the Seller’s knowledge, (x) there are no proceedings threatened and (y) there are no investigations pending or threatened before any Governmental
      Authority having jurisdiction over the Seller or its properties involving or relating to the Seller or the Issuer or, to the Seller’s knowledge, any other Person:

     

    
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    (i)            asserting the invalidity of this Agreement, any of the other Basic Documents, the Storm Recovery Bonds, the Securitization Act or the
      Financing Order;

     

    (ii)          seeking to prevent the issuance of the Storm Recovery Bonds or the consummation of any of the transactions contemplated by this Agreement or
      any of the other Basic Documents;

     

    (iii)         seeking any determination or ruling that could reasonably be expected to materially and adversely affect the performance by the Seller of its
      obligations under, or the validity or enforceability of, this Agreement, any of the other Basic Documents or the Storm Recovery Bonds; or

     

    (iv)         challenging the Seller’s treatment of the Storm Recovery Bonds as debt of the Seller for federal or state income, gross receipts or franchise
      tax purposes.

     

    Section 3.07         Approvals.  Except for continuation filings under the UCC and the Securitization Act, no
      approval, authorization, consent, order or other action of, or filing with, any Governmental Authority is required under an applicable law, rule or regulation in connection with the execution and delivery by the Seller of this Agreement, the
      performance by the Seller of the transactions contemplated hereby or the fulfillment by the Seller of the terms hereof, except those that have been obtained or made and those that the Seller, in its capacity as Servicer under the Servicing Agreement,
      is required to make in the future pursuant to the Servicing Agreement.

     

    Section 3.08          The Storm Recovery Property.

     

    (a)       Information.  Subject to Section 3.16, all written information, as amended or supplemented from time to time prior to the
      date this representation is made, provided by the Seller to the Issuer with respect to the Storm Recovery Property (including the Financing Order and the Issuance Advice Letter) is correct in all material respects and does not omit any material facts
      required to be included therein and all historical data for the purpose of calculating the initial Storm Recovery Charges in the Issuance Advice Letter and the assumptions used for such calculations are reasonable and such calculations were made in
      good faith.

     

    (b)        Effect of Transfer.  It is the intention of the parties hereto that (other than for United States federal income tax
      purposes and, to the extent consistent with applicable state tax laws, state income and franchise tax purposes) the sale, transfer, assignment, setting over and conveyance herein contemplated constitutes a sale or other absolute transfer of all
      right, title and interest of the Seller in and to the Storm Recovery Property from the Seller to the Issuer.  Upon execution and delivery of this Agreement and the Bill of Sale and payment of the Purchase Price, the Seller will have no right, title
      or interest in, to or under the Storm Recovery Property; and that such Storm Recovery Property would not be a part of the estate of the Seller as debtor in the event of the filing of a bankruptcy petition by or against the Seller under any bankruptcy
      law.  No portion of the Storm Recovery Property has been sold, transferred, assigned, pledged or otherwise conveyed by the Seller to any person other than the Issuer, and, to the Seller’s knowledge, no security arrangement, financing statement or
      equivalent security or lien instrument listing the Seller, as debtor, and all or a portion of the Storm Recovery Property, as collateral, is on file or of record in Louisiana, except such as may have been filed or recorded in favor of the Issuer or
      the Trustee in connection with the Basic Documents.

     

    
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    (c)          Transfer Filings.

     

    (i)         The Seller is the sole owner of all the rights and interests under the Financing Order to be sold to the Issuer on the Closing Date.

     

    (ii)      On the Closing Date, immediately upon the sale hereunder, the Storm Recovery Property will have been validly sold, assigned, transferred, set over
      and conveyed to the Issuer free and clear of all Liens (except for any Lien created by the Issuer under the Basic Documents in favor of the Storm Recovery Bondholders and in accordance with Section 1231 of the Securitization Act).

     

    (iii)     All actions or filings (including filings with the Louisiana UCC Filing Officer in accordance with the rules prescribed under the Securitization
      Act and the UCC) necessary in any jurisdiction to give the Issuer a perfected ownership interest (subject to any Lien created by the Issuer under the Basic Documents in favor of the Storm Recovery Bondholders and in accordance with Section 1231 of
      the Securitization Act) in the Storm Recovery Property and to grant to the Trustee a first priority perfected security interest in the Storm Recovery Property, free and clear of all Liens of the Seller or anyone else (except for any Lien created by
      the Issuer under the Basic Documents in favor of the Storm Recovery Bondholders and in accordance with Section 1231 of the Securitization Act), have been taken or made.

     

    Section 3.09          Solvency.  After giving effect to the sale of the Storm Recovery Property hereunder, the
      Seller:

     

    (i)         is solvent and expects to remain solvent,

     

    (ii)        is adequately capitalized to conduct its business and affairs considering its size and the nature of its business and intended
      purposes,

     

    (iii)      is not engaged and does not expect to engage in a business for which its remaining property represents an unreasonably small
      portion of its capital,

     

    (iv)       reasonably believes that it will be able to pay its debts as they come due, and

     

    (v)        is able to pay its debts as they come due and does not intend to incur, or believes that it will incur, indebtedness that it
      will not be able to repay at its maturity.

     

    
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    Section 3.10          The Financing Order.

     

    (a)        The Financing Order was issued by the Louisiana Commission on April 1, 2022 in accordance with the Securitization Act; the
      Financing Order and the process by which it was issued comply with all applicable laws, rules and regulations of the State of Louisiana and the federal laws of the United States, and the Financing Order is final, non-appealable and in full force and
      effect.

     

    (b)       As of the date of issuance of the Storm Recovery Bonds, the Storm Recovery Bonds will be entitled to the protections
      provided by the Securitization Act and the Financing Order, the Issuance Advice Letter and the Storm Recovery Charges authorized therein will have become irrevocable and not subject to reduction, impairment or adjustment by further action of the
      Louisiana Commission, except as permitted by Section 1228(c)(4) of the Securitization Act, and the Issuance Advice Letter has been filed in accordance with the Financing Order.  The Issuance Advice Letter and the Rate Schedules have been filed in
      accordance with the Financing Order and an officer of the Seller has provided the certification to the Louisiana Commission required by the Issuance Advice Letter.  The initial Storm Recovery Charges and the final terms of the Storm Recovery Bonds
      set forth in the Issuance Advice Letter have become effective.  No other approval, authorization, consent, order or other action of, or filing with any Governmental Authority is required in connection with the creation of the Storm Recovery Property
      transferred on such date, except those that have been obtained or made.

     

    Section 3.11          State Action.

     

    (a)         Under the Securitization Act, the State of Louisiana has pledged that it will not take or permit any action that would
      impair the value of the Storm Recovery Property or, except as permitted in Section 1228(c)(4) of the Securitization Act, reduce, alter or impair the Storm Recovery Charges until the principal, interest and premium, if any, and any other charges
      incurred and contracts to be performed in connection with the Storm Recovery Bonds, have been paid and performed in full.

     

    (b)          Under the laws of the State of Louisiana and the federal laws of the United States, a reviewing court of competent
      jurisdiction would hold that (x) the State of Louisiana could not constitutionally take any action of a legislative character, including the repeal or amendment of the Securitization Act, which would substantially limit, alter or impair the Storm
      Recovery Property or other rights vested in the Storm Recovery Bondholders pursuant to the Financing Order, or substantially limit, alter, impair or reduce the value or amount of the Storm Recovery Property, unless such action is a reasonable and
      necessary exercise of the State of Louisiana’s sovereign powers based on reasonable conditions and of a character reasonable and appropriate to the emergency or other significant and legitimate public purpose justifying such action, and, (y) under
      the takings clauses of the State of Louisiana and United States Constitutions, if the court concludes that the Storm Recovery Property is protected by the takings clauses, the State of Louisiana could not repeal or amend the Securitization Act or
      take any other action in contravention of its pledge referred to in subsection (a) above without paying just compensation to the Storm Recovery Bondholders, as determined by a court of competent jurisdiction, if doing so would constitute a permanent
      appropriation of a substantial property interest of the Storm Recovery Bondholders in the Storm Recovery Property and deprive the Storm Recovery Bondholders of their reasonable expectations arising from their investments in the Storm Recovery Bonds;
      however, there is no assurance that, even if a court were to award just compensation, it would be sufficient to pay the full amount of principal of and interest on the Storm Recovery Bonds.

     

    
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     (c)      Under the laws of the State of Louisiana and the United States Constitution, a Louisiana state court reviewing an appeal of
      Louisiana Commission action of a legislative character would conclude that the Louisiana Commission Pledge (i) creates a binding contractual obligation of the State of Louisiana for purposes of the contract clauses of the United States and Louisiana
      Constitutions, and (ii) provides a basis upon which the Storm Recovery Bondholders could challenge successfully any action of the Louisiana Commission of a legislative character, including the rescission or amendment of the Financing Order, that such
      court determines violates the Louisiana Commission Pledge in a manner that substantially reduces, limits or impairs the value of the Storm Recovery Property or the Storm Recovery Charges, prior to the time that the Storm Recovery Bonds are paid in
      full and discharged, unless there is a judicial finding that the Louisiana Commission action clearly is exercised for a public end and is reasonably necessary to the accomplishment of that public end so as not to be arbitrary, capricious or an abuse
      of authority.  There is no assurance, however, that, even if a court were to award just compensation it would be sufficient to pay the full amount of principal and interest on the Storm Recovery Bonds.

     

    Section 3.12       No Court Order.  There is no order by any court providing for the revocation, alteration,
      limitation or other impairment of the Securitization Act, the Financing Order, the Issuance Advice Letter, the Storm Recovery Property or the Storm Recovery Charges or any rights arising under any of them or that seeks to enjoin the performance of
      any obligations under the Financing Order.

     

    Section 3.13          Approvals Concerning the Storm Recovery Property.  Under the laws of the State of Louisiana
      and the federal laws of the United States, no other approval, authorization, consent, order or other action of, or filing with any Governmental Authority is required in connection with the creation or transfer of the Seller’s rights and interests
      under the Financing Order and the Issuer’s purchase of the Storm Recovery Property from the Seller, except those that have been obtained or made.

     

    Section 3.14          No Right of Louisiana Voters to Act by Initiative or Referendum.  Apart from amending the
      Constitution of the State of Louisiana, the citizens of the State of Louisiana currently do not have the constitutional right to adopt or revise state laws by initiative or referendum.

     

    Section 3.15         Tax Liens.  The Seller is not aware of any judgment or tax Lien filings against the Issuer or
      the Seller that would result in a Lien on the Storm Recovery Property.

     

    
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    Section 3.16         Assumptions.  Based on information available to the Seller on the date hereof, the assumptions
      used in calculating the Storm Recovery Charges in the Issuance Advice Letter are reasonable and made in good faith; however, notwithstanding the foregoing, THE SELLER MAKES NO REPRESENTATION OR WARRANTY, EXPRESS OR
        IMPLIED, THAT BILLED STORM RECOVERY CHARGES WILL BE ACTUALLY COLLECTED FROM CUSTOMERS, OR THAT AMOUNTS ACTUALLY COLLECTED ARISING FROM THE STORM RECOVERY CHARGES WILL IN FACT BE SUFFICIENT TO MEET THE PAYMENT OBLIGATIONS ON THE STORM RECOVERY BONDS
        OR THAT THE ASSUMPTIONS USED IN CALCULATING SUCH STORM RECOVERY CHARGES WILL IN FACT BE REALIZED.

     

    Section 3.17          Creation of the Storm Recovery Property.

     

    (a)         Upon the effectiveness of the Financing Order, the transfer of the Seller’s rights and interests under the Financing Order
      related to the Storm Recovery Bonds and the Issuer’s purchase of the Storm Recovery Property from the Seller pursuant to this Agreement, the Storm Recovery Property will constitute a present contract right vested in the Issuer.

     

    (b)       Upon the effectiveness of the Financing Order, the Issuance Advice Letter and the Rate Schedules, the transfer of the
      Seller’s rights and interests under the Financing Order and the Issuer’s purchase of the Storm Recovery Property from the Seller pursuant to this Agreement, the Storm Recovery Property includes:

     

    	 	i	
            the right to impose, bill, charge, collect and receive the Storm Recovery Charges, including the right to receive Storm Recovery Charges in amounts and at all times projected to be sufficient to pay scheduled principal and interest on the
              Storm Recovery Bonds,

          

     

    	

          	ii	
            all rights and interest of the Seller under the Financing Order, except the rights of Seller to earn and receive a rate of return on its invested capital in the Issuer, to receive administration and servicer fees, to withdraw funds from
              its restricted storm recovery reserves funded by the proceeds from the sale of the Storm Recovery Property (including to recover prudently incurred storm recovery costs for additional Hurricane Laura related work by netting against the
              restricted regular storm recovery reserve), or to use the Seller’s remaining portion of those proceeds,

          

     

    	 	iii	
            the rights to file for periodic adjustments of the Storm Recovery Charges as provided in the Financing Order, and

          

     

    	 	iv	
            all revenues, collections, claims, rights to payments, payments, money, or proceeds arising from the rights and interests resulting from the Storm Recovery Charges.

          

     

    (c)        Upon the effectiveness of the Issuance Advice Letter and the Rate Schedules, the transfer of the Seller’s rights and
      interests under the Financing Order and the Issuer’s purchase of the Storm Recovery Property from the Seller on the Closing Date pursuant to this Agreement, the Storm Recovery Property will not be subject to any Lien created by a previous indenture.

     

    
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    Section 3.18          Prospectus.  As of the date hereof, the information describing the Seller under the captions
      “Review of Storm Recovery Property” and “The Depositor, Seller, Initial Servicer and Sponsor” in the Prospectus is true and correct in all material respects.

     

    Section 3.19        Nature of Representations and Warranties.  The representations and warranties set forth in
      Section 3.08 and Section 3.10 through Section 3.18, insofar as they involve conclusions of law, are made not on the basis that the Seller purports to be a legal expert or to be rendering legal advice, but rather to reflect the parties’ good faith
      understanding of the legal basis on which the parties are entering into this Agreement and the other Basic Documents and the basis on which the Storm Recovery Bondholders are purchasing the Storm Recovery Bonds, and to reflect the parties’ agreement
      that, if such understanding turns out to be incorrect or inaccurate, the Seller will be obligated to indemnify the Issuer and its permitted assigns (to the extent required by and in accordance with Section 5.01), and that the Issuer and its permitted
      assigns will be entitled to enforce any rights and remedies under the Basic Documents on account of such inaccuracy to the same extent as if the Seller had breached any other representations or warranties hereunder.

     

    Section 3.20          Waivers of Legal Warranties.  The Seller makes no representation or warranty, express or
      implied, as to the solvency of any Customer on the Closing Date or as to the future solvency of any Customer.  Further, the Issuer waives any right to rescind this Agreement or any conveyance pursuant to this Agreement in case of insolvency of any
      Customer, regardless of any actual or implied knowledge by Seller at any time of the insolvency of any Customer.  Additionally, the Issuer agrees that this Agreement is not subject to a suspensive condition under Louisiana Civil Code Article 2450,
      notwithstanding that the imposition and collection of Storm Recovery Charges depends upon future acts such as the Servicer performing its servicing functions relating to the collection of Storm Recovery Charges, the future provision of electric
      service to Customers, and the future consumption by Customers of electricity.

     

    ARTICLE IV

     

    COVENANTS OF THE SELLER

     

    Section 4.01          Seller’s Existence.  Subject to Section 5.02, so long as any of the Storm Recovery Bonds are
      outstanding, the Seller (i) shall keep in full force and effect its existence and remain in good standing under the laws of the state of its organization, and shall obtain and preserve its qualification to do business in each jurisdiction in which
      such qualification is or will be necessary to protect the validity and enforceability of this Agreement and each other instrument or agreement to which the Seller is a party necessary to the proper administration of this Agreement and the
      transactions contemplated hereby and (ii) hereby agrees to continue to operate its system to provide transmission and distribution delivery service to its customers; and, to the extent that any interest in Storm Recovery Property created by this
      Financing Order is assigned, sold or transferred to another assignee, the Seller shall enter into an agreement with that assignee that requires the Seller to continue to operate its transmission and distribution delivery system to provide service to
      the Seller’s Louisiana Commission-jurisdictional customers; and further (in each case) the Seller will undertake to collect, account and remit amounts in respect of the Storm Recovery Charges for the benefit and account of such assignee (or its
      financing party); provided, however, that this provision shall not prohibit the Seller from selling, assigning, or otherwise divesting its transmission system or distribution system (or any portions thereof) providing service to the Seller’s
      Louisiana Commission-jurisdictional customers, by any method whatsoever, including those specified in the Financing Order pursuant to which an entity becomes a successor, so long as the entities acquiring either such system or portion thereof agree
      to continue operating such facilities to provide service to Louisiana Commission-jurisdictional customers.

     

    

    
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    Section 4.02          No Liens or Conveyances.  Except for the conveyances hereunder or any Lien under the Basic
      Documents pursuant to Section 1231 of the Securitization Act for the benefit of the Trustee and the Storm Recovery Bondholders, the Seller shall not sell, pledge, assign or transfer to any other Person, or grant, create, incur, assume or suffer to
      exist any Lien on, any of the Storm Recovery Property, whether now existing or hereafter created, or any interest therein.  The Seller shall not at any time assert any Lien against or with respect to the Storm Recovery Property, and shall defend the
      right, title and interest of the Issuer and the Trustee, as assignee of the Issuer, in, to and under the Storm Recovery Property against all claims of third parties claiming through or under the Seller.

     

    Section 4.03          Use of Proceeds.  The Seller will use the proceeds from the sale of the Storm Recovery
      Property to the Issuer in accordance with the applicable provisions of the Financing Order.

     

    Section 4.04         Delivery of Collections.  In the event that the Seller receives collections in respect of the
      Storm Recovery Charges or the proceeds thereof other than in its capacity as the Servicer, the Seller agrees to pay to the Servicer, on behalf of the Issuer, all payments received by it in respect thereof as soon as practicable after receipt
      thereof.  Prior to such remittance to the Servicer by the Seller, the Seller agrees that such amounts are held by it in trust for the Issuer and the Trustee.  If the Seller becomes a party to any future trade receivables purchase and sale arrangement
      or similar arrangement under which it sells all or any portion of its accounts receivables, the Seller and the other parties to such arrangement shall enter into an intercreditor agreement in connection therewith and the terms of the documentation
      evidencing such trade receivables purchase and sale arrangement or similar arrangement shall expressly exclude Storm Recovery Charges from any receivables or other assets pledged or sold under such arrangement.

     

    Section 4.05          Notice of Liens.  The Seller shall notify the Issuer and the Trustee promptly after becoming
      aware of any Lien on the Storm Recovery Property, other than the conveyance hereunder, any Lien created in favor of the Storm Recovery Bondholders or any Lien created by the Issuer under the Indenture.

     

    Section 4.06          Compliance with Law.  The Seller shall comply with its organizational or governing documents
      and all laws, treaties, rules, regulations and determinations of any Governmental Authority applicable to the Seller, except to the extent that failure to so comply would not materially adversely affect the Issuer’s or the Trustee’s interests in the
      Storm Recovery Property or under any of the Basic Documents or the Seller’s performance of its obligations hereunder or under any of the other Basic Documents.

     

    
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    Section 4.07          Covenants Related to the Storm Recovery Property.

     

    (a)          So long as any of the Storm Recovery Bonds are outstanding, the Seller shall:

     

    (i)         treat the Storm Recovery Bonds as debt of the Issuer and not of the Seller, except for financial reporting or tax purposes;

     

    (ii)        disclose in its financial statements that the Issuer is, and the Seller is not, the owner of the Storm Recovery Property and that the assets of
      the Issuer are not available to pay creditors of the Seller or any of its Affiliates (other than the Issuer),

     

    (iii)     unless, and to the extent, required by applicable law or directed or required by a Governmental Authority, disclose the effects of all transactions
      between the Seller and the Issuer in accordance with generally accepted accounting principles, and

     

    (iv)       not own or purchase any Storm Recovery Bonds.

     

    (b)          So long as any of the Storm Recovery Bonds are outstanding,

     

    (i)         in all proceedings relating directly or indirectly to the Storm Recovery Property, the Seller shall: (A) affirmatively certify and confirm that
      it has sold all of its rights and interests in and to the Storm Recovery Property to the Issuer (other than for financial reporting or tax purposes), and (B) not make any statement or reference in respect of the Storm Recovery Property that is
      inconsistent with the ownership thereof by the Issuer (other than for financial reporting or tax purposes);

     

    (ii)      the Seller shall not take any action in respect of the Storm Recovery Property except solely in its capacity as the Servicer thereof pursuant to
      the Servicing Agreement or as contemplated by the Basic Documents; and

     

    (iii)      neither the Seller nor the Issuer shall take any action, file any tax return, or make any election inconsistent with the treatment of the Issuer,
      for purposes of federal taxes and, to the extent consistent with applicable state, local and other tax law, for purposes of state, local and other taxes, as a disregarded entity that is not separate from the Seller (or, if relevant, from another sole
      owner of the Issuer).

     

    (c)          The Seller agrees that upon the sale by the Seller of all of its rights and interests in and to the Storm Recovery
      Property to the Issuer pursuant to this Agreement, to the fullest extent permitted by law, including applicable Louisiana Commission regulations and the Securitization Act, the Issuer shall have all of the rights originally held by the Seller with
      respect to the transferred Storm Recovery Property, including the right (subject to the terms of the Servicing Agreement) to exercise any and all rights and remedies to collect any amounts payable by any customer in respect of the transferred Storm
      Recovery Property, notwithstanding any objection or direction to the contrary by the Seller (and the Seller agrees not to make any such objection or to take any such contrary action), and any payment to the Servicer by any Person responsible for
      remitting Storm Recovery Charges to the Servicer under the terms of the Financing Order or the Securitization Act or the Rate Schedules shall discharge such Person’s obligations in respect of the Storm Recovery Property to the extent of such payment,
      notwithstanding any objection or direction to the contrary by the Seller.

     

    
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    Section 4.08          Protection of Title.  The Seller shall execute and file such filings, and cause to be executed
      and filed such filings, in such manner and in such places as may be required by law fully to preserve, maintain and protect the interests of the Issuer and the Trustee in the Storm Recovery Property, including all filings required under the
      Securitization Act and the UCC relating to the transfer of the ownership of the rights and interests under the Financing Order by the Seller to the Issuer and the pledge of the Storm Recovery Property by the Issuer to the Trustee.  The Seller shall
      deliver (or cause to be delivered) to the Issuer and the Trustee file-stamped copies of, or filing receipts for, any document filed as provided above, as soon as available following such filing.  The Seller shall institute any action or proceeding
      reasonably necessary to compel performance by the Louisiana Commission or the State of Louisiana of any of their obligations or duties under the Securitization Act, the Financing Order or the Issuance Advice Letter relating to the transfer of the
      rights and interests under the Financing Order by the Seller to the Issuer and shall notify the Trustee of the institution of any such action.  The Seller agrees to take such legal or administrative actions, including defending against or instituting
      and pursuing legal actions and appearing or testifying at hearings or similar proceedings, in each case as may be reasonably necessary:

     

    (a)         to protect the Issuer and the Storm Recovery Bondholders from claims, state actions or other actions or proceedings of
      third parties which, if successfully pursued, would result in a breach of any representation set forth in Article III; or

     

    (b)       so long as the Seller is also the Servicer, to block or overturn any attempts to cause a repeal of, modification of or
      supplement to the Securitization Act, the Financing Order, the Issuance Advice Letter or the rights of Storm Recovery Bondholders by legislative enactment (including any action of the Louisiana Commission of a legislative character) or constitutional
      amendment that would be materially adverse to the Issuer, the Trustee or the Storm Recovery Bondholders.

     

    The costs of any such actions or proceedings shall be reimbursed by the Issuer to the Seller from amounts on deposit in the Collection Account as an Operating Expense (as such terms are defined in the Indenture) in
      accordance with the terms of the Indenture.  The Seller’s obligations pursuant to this Section 4.08 shall survive and continue notwithstanding that the payment of Operating Expenses pursuant to the Indenture may be delayed (it being understood that
      the Seller may be required to advance its own funds to satisfy its obligation hereunder).  The Seller designates the Issuer as its agent and attorney-in-fact to execute any filings of financing statements, continuation statements or other instruments
      required of the Seller pursuant to this Section 4.08, it being understood that the Issuer shall have no obligation to execute any such instruments.

     

    
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    Section 4.09          Taxes.  So long as any of the Storm Recovery Bonds are outstanding, the Seller shall pay all
      material taxes, assessments and governmental charges imposed upon it or any of its properties or assets or with respect to any of its franchises, businesses, income or property before any penalty accrues thereon if the failure to pay any such taxes,
      assessments and governmental charges would, after any applicable grace periods, notices or other similar requirements, result in a Lien on the Storm Recovery Property; provided that no such tax need be paid if the Seller or any of its Affiliates is
      contesting the same in good faith by appropriate proceedings promptly instituted and diligently conducted and if the Seller or such Affiliate has established appropriate reserves as shall be required in conformity with generally accepted accounting
      principles.

     

    Section 4.10          Filings Pursuant to Financing Order.  The Seller shall comply with all filing requirements
      imposed upon the Seller in its capacity as such by the Financing Order, including making any such post-closing filings.

     

    Section 4.11          Issuance Advice Letter.  The Seller hereby agrees not to withdraw the filing of the Issuance
      Advice Letter with the Louisiana Commission.

     

    Section 4.12          Rate Schedules.  The Seller hereby agrees to make all reasonable efforts to keep the Rate
      Schedules in full force and effect at all times.

     

    Section 4.13          Notice of Breach to Rating Agencies, Etc.  Promptly after obtaining knowledge thereof, in the
      event of a breach in any material respect (without regard to any materiality qualifier contained in such representation, warranty or covenant) of any of the Seller’s representations, warranties or covenants contained herein, the Seller shall promptly
      notify the Issuer, the Trustee and the Rating Agencies of such breach.  For the avoidance of doubt, any breach which would adversely affect scheduled payments on the Storm Recovery Bonds will be deemed to be a material breach for purposes of this
      Section 4.13.

     

    Section 4.14          Further Assurances.  Upon the reasonable request of the Issuer, the Seller shall execute and
      deliver such further instruments and do such further acts as may be reasonably necessary to carry out more effectually the provisions and purposes of this Agreement.

     

    ARTICLE V

     

    

    ADDITIONAL UNDERTAKINGS OF SELLER

     

    The Seller hereby undertakes the obligations contained in this Article V and acknowledges that the Issuer shall have the right to assign its rights with respect to such obligations to the Trustee for
      the benefit of the Storm Recovery Bondholders.

     

    Section 5.01          LIABILITY OF THE SELLER; INDEMNITIES.

     

    (a)          THE SELLER SHALL BE LIABLE IN ACCORDANCE HEREWITH ONLY TO THE EXTENT OF THE OBLIGATIONS
        SPECIFICALLY UNDERTAKEN BY THE SELLER UNDER THIS AGREEMENT.

     

    
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    (b)          THE SELLER SHALL INDEMNIFY THE ISSUER AND THE TRUSTEE, FOR ITSELF AND ON BEHALF OF THE
        STORM RECOVERY BONDHOLDERS, AND EACH OF THEIR RESPECTIVE OFFICERS, DIRECTORS, MANAGERS, EMPLOYEES AND AGENTS FOR, AND DEFEND AND HOLD HARMLESS EACH SUCH PERSON FROM AND AGAINST, ANY AND ALL TAXES (OTHER THAN ANY TAXES IMPOSED ON STORM RECOVERY
        BONDHOLDERS SOLELY AS A RESULT OF THEIR OWNERSHIP OF STORM RECOVERY BONDS) THAT MAY AT ANY TIME BE IMPOSED ON OR ASSERTED AGAINST ANY SUCH PERSON UNDER EXISTING LAW AS OF THE CLOSING DATE AS A RESULT OF THE SALE AND ASSIGNMENT OF THE SELLER’S
        RIGHTS AND INTERESTS UNDER THE FINANCING ORDER BY THE SELLER TO THE ISSUER, THE ACQUISITION OR HOLDING OF THE STORM RECOVERY PROPERTY BY THE ISSUER OR THE ISSUANCE AND SALE BY THE ISSUER OF THE STORM RECOVERY BONDS, INCLUDING ANY SALES, GROSS
        RECEIPTS, TANGIBLE PERSONAL PROPERTY, PRIVILEGE, FRANCHISE OR LICENSE TAXES, BUT EXCLUDING ANY TAXES IMPOSED AS A RESULT OF A FAILURE OF SUCH PERSON TO PROPERLY WITHHOLD OR REMIT TAXES IMPOSED WITH RESPECT TO PAYMENTS ON ANY STORM RECOVERY BOND, IN
        THE EVENT AND TO THE EXTENT SUCH TAXES ARE NOT RECOVERABLE AS FINANCING COSTS, IT BEING UNDERSTOOD THAT THE STORM RECOVERY BONDHOLDERS SHALL BE ENTITLED TO ENFORCE THEIR RIGHTS AGAINST THE SELLER UNDER THIS SECTION 5.01(b) SOLELY THROUGH A CAUSE OF
        ACTION BROUGHT FOR THEIR BENEFIT BY THE TRUSTEE IN ACCORDANCE WITH THE TERMS OF THE INDENTURE.

     

    (c)          THE SELLER SHALL INDEMNIFY THE ISSUER AND THE TRUSTEE, FOR ITSELF AND ON BEHALF OF THE
        STORM RECOVERY BONDHOLDERS, AND EACH OF THEIR RESPECTIVE OFFICERS, DIRECTORS, MANAGERS, EMPLOYEES AND AGENTS FOR, AND DEFEND AND HOLD HARMLESS EACH SUCH PERSON FROM AND AGAINST, ANY AND ALL LIABILITIES, OBLIGATIONS, CLAIMS, ACTIONS, SUITS OR
        PAYMENTS OF ANY KIND WHATSOEVER THAT MAY BE IMPOSED ON OR ASSERTED AGAINST ANY SUCH PERSON (WHICH MAY INCLUDE, WITHOUT LIMITATION, AN AMOUNT EQUAL TO PRINCIPAL AND INTEREST ON THE STORM RECOVERY BONDS AS A MEASURE OF SELLER’S INDEMNIFICATION
        OBLIGATIONS UNDER THIS SECTION 5.01) TOGETHER WITH ANY REASONABLE COSTS AND EXPENSES INCURRED BY SUCH PERSON, IN EACH CASE AS A RESULT OF THE SELLER’S BREACH OF ANY OF ITS REPRESENTATIONS, WARRANTIES OR COVENANTS CONTAINED IN THIS AGREEMENT.

     

    (d)          THE INDEMNIFICATION OBLIGATIONS OF THE SELLER UNDER THIS SECTION 5.01 SHALL RANK PARI PASSU WITH ALL OTHER GENERAL UNSECURED OBLIGATIONS OF THE SELLER.

     

    
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    (e)          INDEMNIFICATION UNDER THIS SECTION 5.01 SHALL SURVIVE THE RESIGNATION OR REMOVAL OF THE
        TRUSTEE AND THE TERMINATION OF THIS AGREEMENT AND SHALL INCLUDE REASONABLE FEES AND EXPENSES OF INVESTIGATION AND LITIGATION (INCLUDING REASONABLE ATTORNEYS’ FEES AND EXPENSES).  THE SELLER SHALL NOT INDEMNIFY ANY PARTY UNDER THIS SECTION 5.01 FOR
        ANY CHANGES IN LAW AFTER THE CLOSING DATE, INCLUDING BY MEANS OF LEGISLATIVE ENACTMENT, CONSTITUTIONAL AMENDMENT OR VOTER INITIATIVE, OR FOR ANY LIABILITY RESULTING SOLELY FROM A DOWNGRADE IN ANY RATING OF THE STORM RECOVERY BONDS BY ANY RATING
        AGENCY.  THE SELLER SHALL NOT INDEMNIFY THE TRUSTEE OR ITS OFFICERS, DIRECTORS, MANAGERS, EMPLOYEES OR AGENTS UNDER THIS SECTION 5.01 AGAINST ANY LIABILITY, OBLIGATION, CLAIM, ACTION, SUIT OR PAYMENT OF ANY KIND ARISING OUT OF THE WILLFUL
        MISCONDUCT, NEGLIGENCE OR BAD FAITH OF ANY SUCH PERSON.

     

    (f)         THE SELLER SHALL NOT BE REQUIRED TO INDEMNIFY A PARTY UNDER THIS SECTION 5.01 FOR ANY
        AMOUNT PAID OR PAYABLE BY SUCH PARTY IN THE SETTLEMENT OF ANY ACTION, PROCEEDING OR INVESTIGATION WITHOUT THE PRIOR WRITTEN CONSENT OF THE SELLER WHICH CONSENT SHALL NOT BE UNREASONABLY WITHHELD.

     

    (g)          PROMPTLY AFTER RECEIPT BY A PARTY OF NOTICE OF THE COMMENCEMENT OF ANY ACTION,
        PROCEEDING OR INVESTIGATION, SUCH PARTY SHALL, IF A CLAIM IN RESPECT THEREOF IS TO BE MADE AGAINST THE SELLER UNDER THIS SECTION 5.01, NOTIFY THE SELLER IN WRITING OF THE COMMENCEMENT THEREOF.  FAILURE BY A PARTY TO SO NOTIFY THE SELLER SHALL
        RELIEVE THE SELLER FROM THE OBLIGATION TO INDEMNIFY AND HOLD HARMLESS SUCH INDEMNIFIED PARTY UNDER THIS SECTION 5.01 ONLY TO THE EXTENT THAT THE SELLER SUFFERS ACTUAL PREJUDICE AS A RESULT OF SUCH FAILURE.

     

    (h)       WITH RESPECT TO ANY ACTION, PROCEEDING OR INVESTIGATION BROUGHT BY A THIRD PARTY FOR WHICH
        INDEMNIFICATION MAY BE SOUGHT UNDER SECTION 5.01(C), THE SELLER SHALL BE ENTITLED TO CONDUCT AND CONTROL, AT ITS EXPENSE AND WITH COUNSEL OF ITS CHOOSING THAT IS REASONABLY SATISFACTORY TO SUCH INDEMNIFIED PARTY, THE DEFENSE OF ANY SUCH ACTION,
        PROCEEDING OR INVESTIGATION (IN WHICH CASE THE SELLER SHALL NOT THEREAFTER BE RESPONSIBLE FOR THE FEES AND EXPENSES OF ANY SEPARATE COUNSEL RETAINED BY THE INDEMNIFIED PARTY EXCEPT AS SET FORTH BELOW); PROVIDED THAT THE INDEMNIFIED PARTY SHALL HAVE
        THE RIGHT TO PARTICIPATE IN SUCH ACTION, PROCEEDING OR INVESTIGATION THROUGH COUNSEL CHOSEN BY IT AND AT ITS OWN EXPENSE.  NOTWITHSTANDING THE SELLER’S ELECTION TO ASSUME THE DEFENSE OF ANY ACTION, PROCEEDING OR INVESTIGATION, THE INDEMNIFIED PARTY
        SHALL HAVE THE RIGHT TO EMPLOY SEPARATE COUNSEL (INCLUDING LOCAL COUNSEL), AND THE SELLER SHALL BEAR THE REASONABLE FEES, COSTS AND EXPENSES OF SUCH SEPARATE COUNSEL IF (I) THE DEFENDANTS IN ANY SUCH ACTION INCLUDE BOTH THE INDEMNIFIED PARTY AND
        THE SELLER AND THE INDEMNIFIED PARTY SHALL HAVE REASONABLY CONCLUDED THAT THERE MAY BE LEGAL DEFENSES AVAILABLE TO IT THAT ARE DIFFERENT FROM OR ADDITIONAL TO THOSE AVAILABLE TO THE SELLER, (II) THE SELLER SHALL NOT HAVE EMPLOYED COUNSEL REASONABLY
        SATISFACTORY TO THE INDEMNIFIED PARTY TO REPRESENT THE INDEMNIFIED PARTY WITHIN A REASONABLE TIME AFTER NOTICE OF THE INSTITUTION OF SUCH ACTION, (III) THE SELLER SHALL AUTHORIZE THE INDEMNIFIED PARTY TO EMPLOY SEPARATE COUNSEL AT THE EXPENSE OF
        THE SELLER OR (IV) IN THE CASE OF THE TRUSTEE, SUCH ACTION EXPOSES THE TRUSTEE TO A MATERIAL RISK OF CRIMINAL LIABILITY OR FORFEITURE OR A SERVICER DEFAULT HAS OCCURRED AND IS CONTINUING.  NOTWITHSTANDING THE FOREGOING, THE SELLER SHALL NOT BE
        OBLIGATED TO PAY FOR THE FEES, COSTS AND EXPENSES OF MORE THAN ONE SEPARATE COUNSEL FOR THE INDEMNIFIED PARTIES OTHER THAN ONE LOCAL COUNSEL, IF APPROPRIATE.

     

    
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    NOTWITHSTANDING THE FOREGOING, IN NO EVENT SHALL ANY SUCH FOREGOING INDEMNITY EXTEND TO THE COLLECTIBILITY OF THE STORM RECOVERY CHARGES FROM ANY PERSON RESPONSIBLE FOR REMITTING STORM RECOVERY
      CHARGES TO THE SERVICER UNDER THE TERMS OF THE FINANCING ORDER, THE SECURITIZATION ACT OR AN APPLICABLE RATE SCHEDULE, OR THE CREDITWORTHINESS OF ANY SUCH PERSON OR THE INABILITY OR FAILURE OF SUCH PERSON TO TIMELY PAY ALL OR A PORTION OF THE STORM
      RECOVERY CHARGES.  THE REMEDIES PROVIDED IN THIS AGREEMENT ARE THE SOLE AND EXCLUSIVE REMEDIES AGAINST THE SELLER FOR BREACH OF ITS REPRESENTATIONS, WARRANTIES OR COVENANTS IN THIS AGREEMENT.

     

    Section 5.02          Merger or Consolidation of, or Assumption of the Obligations of, the Seller.

     

    Any Person:

     

    (a)          into which the Seller may be merged, converted or consolidated and which succeeds to all or substantially all of the
      electric transmission and distribution business of the Seller (or, if the transmission and distribution business is split, any Person which the Louisiana Commission designates in connection with an order relating to such split),

     

    (b)          which results from the division of the Seller into two or more Persons and which succeeds to all or substantially all of
      the electric transmission and distribution business of the Seller (or, if the transmission and distribution business is split, any Person which the Louisiana Commission designates in connection with an order relating to such split),

     

    (c)          which may result from any merger, conversion or consolidation to which the Seller shall be a party and which succeeds to
      all or substantially all of the electric transmission and distribution business of the Seller (or, if the transmission and distribution business is split, any Person which the Louisiana Commission designates in connection with an order relating to
      such split),

     

    
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    (d)          which may purchase or otherwise succeed to the properties and assets of the Seller substantially as a whole and which
      purchases or otherwise succeeds to all or substantially all of the electric transmission and distribution business of the Seller (or, if the transmission and distribution business is split, any Person which the Louisiana Commission designates in
      connection with an order relating to such split), or

     

    (e)          which may otherwise purchase or succeed to all or substantially all of the electric transmission and distribution
      business of the Seller (or, if the transmission and distribution business is split, any Person which the Louisiana Commission designates in connection with an order relating to such split),

     

    which Person in any of the foregoing cases executes an agreement of assumption to perform every obligation of the Seller under this Agreement, shall be the successor to the Seller hereunder without the execution or
      filing of any document or any further act by any of the parties to this Agreement; provided, however, that

     

    (i)         immediately after giving effect to such transaction, no representation, warranty or covenant made pursuant to Article III or Article IV shall
      have been breached in any material respect and no Servicer Default, and no event that, after notice or lapse of time, or both, would become a Servicer Default, shall have occurred and be continuing,

     

    (ii)        the Rating Agencies shall have received prior written notice of such transaction,

     

    (iii)      the Seller shall have delivered to the Issuer and the Trustee an Officer’s Certificate and an Opinion of Counsel each stating that such
      consolidation, conversion, merger, division or succession and such agreement of assumption comply with this Section 5.02 and that all conditions precedent, if any, provided for in this Agreement relating to such transaction have been complied with,

     

    (iv)       the Seller shall have delivered to the Issuer and the Trustee an Opinion of Counsel either

     

    (A)       stating that, in the opinion of such counsel, all filings to be made by the Seller, including filings with the Louisiana
      Commission pursuant to the Securitization Act and the UCC, that are necessary fully to preserve and protect the respective interests of the Issuer and the Trustee in the Storm Recovery Property have been executed and filed, and reciting the details
      of such filings, or

     

    (B)          stating that, in the opinion of such counsel, no such action is necessary to preserve and protect such interests, and

     

    (v)        the Seller shall have delivered to the Issuer, the Trustee and the Rating Agencies an opinion of independent tax counsel (as selected by, and in
      form and substance satisfactory to the Seller, and which may be based on a ruling from the Internal Revenue Service) to the effect that, for federal income tax purposes, such transaction will not result in a material adverse federal income tax
      consequence to the Issuer, the Trustee or the Storm Recovery Bondholders.

     

    
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    The Seller shall not consummate any transaction referred to in clauses (a), (b), (c), (d) or (e) above except upon execution of the above described agreement of assumption and compliance with clauses (i), (ii), (iii),
      (iv) and (v) above.  When any Person acquires the properties and assets of the Seller substantially as a whole and succeeds to all or substantially all of the electric transmission and distribution business of the Seller (or, if the transmission and
      distribution business is split, any Person which the Louisiana Commission designates in connection with an order relating to such split), or otherwise becomes the successor to the Seller in accordance with the terms of this Section 5.02, then upon
      the satisfaction of all of the other conditions of this Section 5.02, the Seller shall automatically and without further notice be released from its obligations hereunder.

     

    Section 5.03          Limitation on Liability of the Seller and Others.  The Seller and any manager, officer,
      employee or agent of the Seller may rely in good faith on the advice of counsel or on any document of any kind, prima facie properly executed and submitted by any Person, respecting any matters arising hereunder.  Subject to Section 4.07, the Seller
      shall not be under any obligation to appear in, prosecute or defend any legal action that is not incidental to its obligations under this Agreement, and that in its opinion may involve it in any expense or liability.

     

    ARTICLE VI

     

    MISCELLANEOUS PROVISIONS

     

    Section 6.01          Amendment.

     

    (a)          This Agreement may be amended in writing by the Seller and the Issuer, provided that (i) the Rating Agency Condition has
      been satisfied in connection therewith, (ii) the Trustee has consented thereto and (iii) in the case of any amendment that increases ongoing financing costs as defined in the Financing Order, the Louisiana Commission has consented thereto or shall be
      conclusively deemed to have consented thereto.  Promptly after the execution of any such amendment or consent, the Issuer shall furnish written notification of the substance of such amendment or consent to each of the Rating Agencies.  With respect
      to the Louisiana Commission’s consent to any amendment to this Agreement,

     

    (i)         the Seller may submit the amendment to the Louisiana Commission by delivering to the Louisiana Commission’s executive counsel a written request
      for such consent, which request shall contain:

     

    (A)          a reference to Docket No. U-35807 and a statement as to the possible effect of the amendment on ongoing financing costs;

     

    (B)          an Officer’s Certificate stating that the proposed amendment has been approved by all relevant parties to this Agreement;
      and

     

    (C)         a statement identifying the person to whom the Louisiana Commission or its staff is to address its consent to the proposed
      amendment or request additional time;

     

    
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    (ii)        Any amendment requiring the consent of the Louisiana Commission as provided in this Section 6.01(a) shall become effective on the later of:

     

    (A)          the date proposed by the parties to the amendment, or

     

    (B)          31 days after such submission of the amendment to the Louisiana Commission unless the Louisiana Commission issues an
      order disapproving the amendment within a 30-day period.

     

    (b)          Prior to the execution of any amendment to this Agreement, the Issuer and the Trustee shall be entitled to receive and
      rely upon an Opinion of Counsel stating that the execution of such amendment is authorized or permitted by this Agreement.  The Issuer and the Trustee may, but shall not be obligated to, enter into any such amendment that affects their own rights,
      duties or immunities under this Agreement or otherwise.  Following delivery of a notice to the Louisiana Commission by the Seller under Section 6.01(a) above, the Seller and Issuer may at any time withdraw from the Louisiana Commission further
      consideration of any notification of a proposed amendment.

     

    Section 6.02          Notices.  Unless otherwise specifically provided herein, all demands, notices and
      communications upon or to the Seller, the Issuer, the Trustee, the Louisiana Commission or the Rating Agencies under this Agreement shall be in writing, delivered personally, via facsimile, reputable overnight courier or by certified mail,
      return-receipt requested, and shall be deemed to have been duly given upon receipt

     

    (a)          in the case of the Seller, to Cleco Power, LLC, 2030 Donahue Ferry Road, Pineville, Louisiana 71360-5226, Attention:
      Treasurer,

     

    (b)        in the case of the Issuer, to Cleco Securitization I LLC, 505 Cleco Drive Office Number 16, Pineville, Louisiana
      71360-5226, Attention: Manager,

     

    (c)       in the case of Moody’s, to Moody’s Investors Service, Inc., ABS/RMBS Monitoring
        Department, 25th Floor, 7 World Trade Center, 250 Greenwich Street, New York, New York 10007, Email: ServicerReports@moodys.com (all such notices to be delivered to Moody’s in writing by email),

     

    (d)         in the case of S&P, to Standard & Poor’s Ratings Group, Inc., Structured Credit
        Surveillance, 55 Water Street, New York, New York 10041, Telephone: (212) 438-8991, Email: servicer_reports@spglobal.com (all such notices to be delivered to S&P in writing by email),

     

    (e)         in the case of Fitch, to Fitch, Ratings, Inc., One State Street Plaza, New York, New York 10004, Attention: ABS
      Surveillance, Telephone: (212) 908-0500,

     

    (f)          in the case the Trustee, at the address provided for notices or communications to the Trustee in the Indenture, and

     

    (g)         in the case of the Louisiana Commission, to Galvez Building, 12th Floor, 602 North Fifth Street, Baton Rouge, Louisiana
      70802, Attention: Executive Secretary;

     

    or, as to each of the foregoing, at such other address as shall be designated by written notice to the other parties.

     

    
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    Section 6.03        Assignment by the Seller.  Notwithstanding anything to the contrary contained herein, except as
      provided in Section 5.02, this Agreement may not be assigned by the Seller.

     

    Section 6.04          Pledge to the Trustee.  The Seller hereby acknowledges and consents to any pledge and grant of
      a security interest by the Issuer to the Trustee pursuant to the Indenture for the benefit of the Storm Recovery Bondholders of all right, title and interest of the Issuer in, to and under the Storm Recovery Property and the proceeds thereof and the
      pledge of any or all of the Issuer’s rights hereunder to the Trustee. Notwithstanding such pledge, in no event shall the Trustee have any liability for the representations, warranties, covenants, agreements or other obligations of the Issuer
      hereunder or in any of the certificates, notices or agreements delivered pursuant hereto, as to all of which recourse shall be had solely to the assets of the Issuer.

     

    Section 6.05          Limitations on Rights of Others.  The provisions of this Agreement are solely for the benefit
      of the Seller, the Issuer and the Trustee, on behalf of itself and the Storm Recovery Bondholders, and nothing in this Agreement, whether express or implied, shall be construed to give to any other Person any legal or equitable right, remedy or claim
      in the Trust Estate or under or in respect of this Agreement or any covenants, conditions or provisions contained herein.

     

    Section 6.06          Severability.  Any provision of this Agreement that is prohibited or unenforceable in any
      jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not
      invalidate or render unenforceable such provision in any other jurisdiction.

     

    Section 6.07        Separate Counterparts.  This Agreement may be executed by the parties hereto in separate
      counterparts, each of which when so executed and delivered shall be an original, but all such counterparts shall together constitute but one and the same instrument.

     

    Section 6.08          Headings.  The headings of the various Articles and Sections herein are for convenience of
      reference only and shall not define or limit any of the terms or provisions hereof.

     

    Section 6.09        Governing Law.  THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF
      LOUISIANA, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

     

    Section 6.10          Limitation of Liability.  It is expressly understood and
        agreed by the parties hereto that this Sale Agreement is executed and delivered by the Trustee, not individually or personally but solely as Trustee on behalf of the Secured Parties, in the exercise of the powers and authority conferred and vested
        in it. The Trustee in acting hereunder is entitled to all rights, benefits, protections, immunities and indemnities accorded to it under the Indenture. 

    

    

    
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    Section 6.11          Waivers.  Any term or provision of this Sale Agreement may
        be waived, or the time for its performance may be extended, by the party or parties entitled to the benefit thereof; provided, however, that no such waiver delivered by the Issuer shall be effective unless the Trustee has given its
        prior written consent thereto. Any such waiver shall be validly and sufficiently authorized for the purposes of this Sale Agreement if, as to any party, it is authorized in writing by an authorized representative of such party, with prompt written
        notice of any such waiver to be provided to the Rating Agencies and the Louisiana Commission. The failure of any party hereto to enforce at any time any provision of this Sale Agreement shall not be construed to be a waiver of such provision, nor
        in any way to affect the validity of this Sale Agreement or any part hereof or the right of any party thereafter to enforce each and every such provision. No waiver of any breach of this Sale Agreement shall be held to constitute a waiver of any
        other or subsequent breach.

     

    Section 6.12          Nonpetition Covenants.

     

    (a)          Notwithstanding any prior termination of this Agreement or the Indenture, the Seller shall not, prior to the date which
      is one year and one day after the termination of the Indenture, petition or otherwise invoke or cause the Issuer to invoke the process of any Governmental Authority for the purpose of commencing or sustaining an involuntary case against the Issuer
      under any federal or state bankruptcy, insolvency or similar law or appointing a receiver, liquidator, assignee, trustee, custodian, sequestrator or other similar official of the Issuer or any substantial part of the property of the Issuer, or
      ordering the winding-up or liquidation of the affairs of the Issuer.

     

    (b)          Notwithstanding any prior termination of this Agreement or the Indenture, the Issuer shall not, prior to the date which
      is one year and one day after the termination of the Indenture, petition or otherwise invoke the process of any Governmental Authority for the purpose of commencing or sustaining an involuntary case against the Seller under any federal or state
      bankruptcy, insolvency or similar law or appointing a receiver, liquidator, assignee, trustee, custodian, sequestrator or other similar official of the Seller or any substantial part of the property of the Seller, or ordering the winding-up or
      liquidation of the affairs of the Seller.

     

    [Rest of page intentionally left blank]

     

    

    
      22

      
        

    

    IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed and delivered as of the day and year first above written.

     

    	 	
            CLECO SECURITIZATION I LLC,

          
	 	
            as Issuer,

          
	 	 	 
	 	
            By:

          	 
	 	 	
            Name:

          
	 	 	
            Title:

          

    

    

    	 	
            CLECO POWER LLC,

          
	 	
            as Seller,

          
	 	 	 
	 	
            By:

          	 
	 	 	
            Name:

          
	 	 	
            Title:

          

    

    

    ACKNOWLEDGED AND ACCEPTED:

     

    

    	
            THE BANK OF NEW YORK MELLON TRUST COMPANY, NATIONAL ASSOCIATION,

          	 
	
            as Trustee under the Indenture

          	 
	 	 	 
	
            By:

          	 	 
	 	
            Name:

          	 
	 	
            Title:

          	 

    

    

    
      23

      
        

    

    
    APPENDIX A—DEFINITIONS

     

    The definitions contained in this Appendix A are applicable to the singular as well as the plural forms of such terms.

     

    “Administration Agreement” means the Administration Agreement, dated as of                , 2022, between the Issuer and the Seller, as the same may be amended and supplemented from time to time.

     

    “Affiliate” means, with respect to any specified Person, any other Person controlling or controlled by or under common control with such specified Person.  For the purposes of this definition,
      control, when used with respect to any specified Person, means the power to direct the management and policies of such Person, directly or indirectly, whether through the ownership of voting securities, by contract or otherwise; and the terms
      controlling and controlled have meanings correlative to the foregoing.

     

    “Agreement” or the “Sale Agreement” means this Storm Recovery Property Sale Agreement, as the same may be amended and supplemented from time to time.

     

    “Basic Documents” means the Articles of Organization of the Issuer which was filed with the Secretary of State of the State of Louisiana on January 5, 2022, as amended by the Amended and Restated
      Articles of Organization of the Issuer which was filed with the Secretary of State of the State of Louisiana on                       , 2022, the limited liability company operating agreement of the Issuer, as amended to the date hereof, the Sale
      Agreement, the Bill of Sale, the Servicing Agreement, the Administration Agreement, the Indenture.

     

    “Bill of Sale” means the Bill of Sale, dated as of                 , 2022, issued by the Seller to the Issuer pursuant to the Sale Agreement evidencing the sale of the Storm Recovery Property by the
      Seller to the Issuer.

     

    “Cleco Power” means Cleco Power, LLC, a Louisiana limited liability company, or its successor.

     

    “Closing Date” means the date on which the Storm Recovery Bonds are to be originally issued in accordance with Section 2.10 of the Indenture.

     

    “Financing Order” means Financing Order No. U-35807-B issued by the Louisiana Commission on April 1, 2022 in Docket No. U-35807 pursuant to the Securitization Act.

     

    “Fitch” means Fitch Ratings, Inc., or any successor in interest.

     

    “Governmental Authority” means any court or any federal or state regulatory body, administrative agency or governmental instrumentality.

     

    “Indenture” means the Indenture, dated as of                   , 2022, among the Issuer and the Trustee, and the Series Supplement (including the forms and terms of the Storm Recovery Bonds), as the
      same may be amended and supplemented with respect to the Storm Recovery Bonds from time to time.

     

    
      Appendix A-1

      
        

    

    “Issuance Advice Letter” means the issuance advice letter submitted to the Louisiana Commission on             , 2022 by the Seller pursuant to the Financing Order in connection with the issuance of
      the Storm Recovery Bonds.

     

    “Issuer” means Cleco Securitization I LLC, a Louisiana limited liability company, or its successor under the Indenture.

     

    “Lien” means a security interest, lien, charge, pledge, equity or encumbrance of any kind.

     

    “Louisiana Commission” means the Louisiana Public Service Commission or any successor.

     

    “Louisiana Commission Pledge” means the pledge of the Louisiana Commission found in Part VI(G) of the Financing Order.

     

    “Louisiana UCC Filing Officer” has the meaning ascribed to such term in the Servicing Agreement.

     

    “Moody’s” means Moody’s Investors Service, Inc., or any successor in interest.

     

    “Officer’s Certificate” means a certificate signed, in the case of the Seller, by any manager, the chief executive officer, the president, the chief financial officer, any vice president, the chief
      compliance office & general counsel, the treasurer, the assistant treasurer, the secretary, or any assistant secretary of the Seller.

     

    “Opinion of Counsel” means one or more written opinions of counsel who may be an employee of or counsel to the Issuer or the Seller, which counsel shall be reasonably acceptable to the Trustee, the
      Louisiana Commission, the Issuer or the Rating Agencies, as applicable, and which shall be in form reasonably satisfactory to the Trustee or the Louisiana Commission, if applicable.

     

    “Person” means any individual, corporation, estate, partnership, joint venture, association, joint stock company, trust (including any beneficiary thereof), business trust, limited liability company,
      unincorporated organization or government or any agency or political subdivision thereof.

     

    “proceeding” means any suit in equity, action at law or other judicial or administrative proceeding.

     

    “Prospectus” has the meaning specified in Section 3.06 hereof.

     

    “Purchase Price” has the meaning specified in Section 2.01(a) hereof.

     

    “Rate Schedule” means Rate Schedule SRCA (Storm Recovery Cost Adjustment) and Rate Schedule SCSA (Storm Cost Surcredit Adjustment) filed by the Seller pursuant to ordering paragraph 10 of the
      Financing Order.

     

    
      Appendix A-2

      
        

    

    “Rating Agency” means any rating agency rating the Storm Recovery Bonds at the applicable time at the request of the Issuer, which initially shall be Moody’s, Fitch and S&P.  If no such
      organization or successor is any longer in existence, “Rating Agency” shall be a nationally recognized statistical rating organization or other comparable Person designated by the Issuer, written notice of which designation shall be given to the
      Trustee, the Louisiana Commission and the Servicer.

     

    “Rating Agency Condition” means, with respect to any action, at least ten business days’ prior written notification to each rating agency of such action, and written confirmation from each of S&P
      and Moody’s to the servicer, the trustee and us that such action will not result in a suspension, reduction or withdrawal of the then current rating by such rating agency of any tranche of the storm recovery bonds and that prior to the taking of the
      proposed action no other rating agency hall have provided written notice to us that such action has resulted or would result in the suspension, reduction or withdrawal of the then current rating of any such tranche of the storm recovery bonds;
      provided, that, if within such ten business day period, any rating agency (other than S&P) has neither replied to such notification nor responded in a manner that indicates that such rating agency is reviewing and considering the notification,
      then (i) the requesting party shall be required to confirm that such rating agency has received the rating agency condition request, and if it has, promptly request the related rating agency condition confirmation and (ii) if the rating agency
      neither replies to such notification nor responds in a manner that indicates it is reviewing and considering the notification within five business days following such second request, the applicable rating agency condition requirement hall not be
      deemed to apply to such rating agency.  For the purposes of this definition, any confirmation, request, acknowledgment or approval that is required to be in writing may be in the form of electronic mail or a press release (which may contain a general
      waiver of a rating agency’s right to review or consent).

     

    “S&P” means S&P Global Ratings, a division of S&P Global Inc., or any successor in interest.

     

    “Secured Parties” mean the Trustee, the Storm Recovery Bondholders and any credit enhancer described in the Series Supplement.

     

    “Securitization Act” means the Louisiana Electric Utility Storm Recovery Securitization Act, codified at La. R.S. 45:1226-1240, the Louisiana legislation adopted in May 2006 and amended in June 2021,
      providing for a financing mechanism through which electric utilities can use securitization financing for storm recovery costs.

     

    “Seller” means Cleco Power, or its successor, in its capacity as seller of the Storm Recovery Property to the Issuer pursuant to the Sale Agreement.

     

    “Servicer” means Cleco Power, in its capacity as the servicer under the Servicing Agreement, and each successor to or assignee of Cleco Power (in the same capacity) pursuant to the relevant sections
      of the Servicing Agreement.

     

    “Servicer Default” means the occurrence and continuation of one of the events specified in Section 7.01 of the Servicing Agreement.

     

    
      Appendix A-3

      
        

    

    “Servicing Agreement” means the Storm Recovery Property Servicing Agreement, dated as of            , 2022, between the Issuer and the Servicer and acknowledged by the Trustee, as the same may be
      amended and supplemented from time to time.

     

    “Storm Recovery Bond” means any of the Senior Secured Storm Recovery Bonds issued by the Issuer pursuant to the Indenture and the Series Supplement.

     

    “Storm Recovery Bondholder” means a Person in whose name a Storm Recovery Bond is registered on the Storm Recovery Bond Register.

     

    “Storm Recovery Bond Register” has the meaning specified in Section 2.05 of the Indenture.

     

    “Storm Recovery Charges” means the nonbypassable amounts to be charged for the use or availability of electric services, approved by the Louisiana Commission in the Financing Order that may be
      collected by the Seller, its successors, assignees or other collection agents as provided for in the Financing Order.

     

    “Storm Recovery Property” means all of Seller’s rights and interest under the Financing Order (including, without limitation, rights to impose, collect and receive the “storm recovery charges” (as
      defined in the Securitization Act) approved in such Financing Order) issued by the Louisiana Commission on April 1, 2022 (Docket No. U-35807) pursuant to the Securitization Act, except the rights of Seller to earn and receive a rate of return on its
      invested capital in the Issuer, to receive administration and servicer fees, to withdraw funds from its restricted storm recovery reserves funded by the proceeds from the sale of the Storm Recovery Property (including to recover prudently incurred
      storm recovery costs for additional Hurricane Laura related work by netting against the restricted regular storm recovery reserve), or to use the Seller’s remaining portion of those proceeds.

     

    “Trust Estate” means the “Series Trust Estate” as such term is defined in the Series Supplement.

     

    “Trustee” means The Bank of New York Mellon Trust Company, National Association, or its successor or any successor Trustee under the Indenture.

     

    “UCC” has the meaning specified in Section 2.02(iv) hereof.

     

    
      Appendix A-4

      
        

    

    
    EXHIBIT A

     

    BILL OF SALE

     

    	1.	
            This Bill of Sale is being delivered pursuant to the Storm Recovery Property Sale Agreement, dated as of             , 2022 (the “Sale Agreement”), between Cleco Power LLC (the “Seller”) and Cleco Securitization I LLC (the “Issuer”).  All
              capitalized terms used but not defined herein have the respective meanings ascribed thereto in the Sale Agreement.

          

     

    	2.	
            In consideration of the Issuer’s payment to the Seller of $                 , receipt of which is hereby acknowledged, the Seller does hereby irrevocably sell, transfer, assign, set over and otherwise convey to the Issuer, without recourse
              or warranty, except as set forth in the Sale Agreement, all right, title and interest of the Seller in, to and under the Storm Recovery Property identified on Schedule 1 hereto (such sale, transfer,
              assignment, setting over and conveyance of the Storm Recovery Property includes, to the fullest extent permitted by the Securitization Act, the right to impose, collect and receive the Storm Recovery Charges related to the Storm Recovery
              Property, as the same may be adjusted from time to time).  Such sale, transfer, assignment, setting over and conveyance is hereby expressly stated to be a sale or other absolute transfer and, pursuant to Section 1230(1) of the Securitization
              Act and other applicable law, is a true sale and is not a secured transaction and title and ownership has passed to the Issuer.  The preceding sentence is the statement referred to in Section 1230 of the Securitization Act.  The Seller agrees
              and confirms that, after giving effect to the sale evidenced by this Bill of Sale, the Seller has no right, title or interest in, to or under the Storm Recovery Property.

          

     

    	3.	
            The Issuer does hereby purchase the Storm Recovery Property identified on Schedule 1 hereto from the Seller for the consideration set forth in paragraph 2 above.

          

     

    	4.	
            The Seller and the Issuer each acknowledge and agree that the purchase price for the Storm Recovery Property sold pursuant to this Bill of Sale and the Sale Agreement is equal to its fair market value on the date hereof.

          

     

    	5.	
            The Seller confirms that each of the representations and warranties on the part of the Seller contained in the Sale Agreement are true and correct in all material respects on the date hereof as if made on the date hereof.

          

     

    	6.	
            This Bill of Sale may be executed by the parties hereto in separate counterparts, each of which when so executed and delivered shall be an original, but all such counterparts shall together constitute but one and the same instrument.

          

     

    	7.	
            THIS BILL OF SALE SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF LOUISIANA, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER
              SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

          

     

    
      Exhibit A-1

      
        

    

    IN WITNESS WHEREOF, the Seller and the Issuer have duly executed this Bill of Sale as of the           day of                       , 2022.

     

    	 	
            CLECO SECURITIZATION I LLC,

          
	 	
            as Issuer,

          
	 	 	 
	 	
            By:

          	 
	 	 	
            Name:

          
	 	 	
            Title:

          

    

    

    	 	
            CLECO POWER LLC,

          
	 	
            as Seller,

          
	 	 	 
	 	
            By:

          	 
	 	 	
            Name:

          
	 	 	
            Title:

          

    

    

    
      Exhibit A-2

      
        

    

    
    SCHEDULE 1

    to

    BILL OF SALE

     

    Storm Recovery Property

     

    All of Seller’s rights and interest under Financing Order Number U-35807-B (including, without limitation, rights to impose, collect and receive the “storm recovery charges” (as defined in the
      Securitization Act) approved in such Financing Order) issued by the Louisiana Commission on April 1, 2022 (Docket No. U-35807) pursuant to the Securitization Act, except the rights of Seller to earn and receive a rate of return on its invested
      capital in the Issuer, to receive administration and servicer fees, to withdraw funds from its restricted storm recovery reserves funded by the proceeds from the sale of the Storm Recovery Property (including to recover prudently incurred storm
      recovery costs for additional Hurricane Laura related work by netting against the restricted regular storm recovery reserve), or to use the Seller’s remaining portion of those proceeds. This Bill of Sale covers the foregoing described Storm Recovery
      Property described in such Financing Order.

     

     

      Schedule 1-1

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