Document:

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                                                                     EXHIBIT 4.3

                               CLECO CORPORATION
                   2000 LONG-TERM INCENTIVE COMPENSATION PLAN
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                               CLECO CORPORATION
                   2000 LONG-TERM INCENTIVE COMPENSATION PLAN

                               TABLE OF CONTENTS

                                                                  Page

ARTICLE I - PURPOSE.............................................    1

ARTICLE II - DEFINITIONS........................................    1

ARTICLE III - ADOPTION; RESERVATION OF SHARES; MAXIMUM AWARDS...    5
 Adoption and Effective Date....................................    5
 Duration.......................................................    5
 Number and Type of Shares......................................    5
 Cancellation...................................................    5
 Adjustment.....................................................    5
 Individual Limitations.........................................    6

ARTICLE IV - PARTICIPATION......................................    6
 Eligibility....................................................    6
 No Continued Employment........................................    6

ARTICLE V - ADMINISTRATION OF PLAN..............................    6
 Composition of Committee.......................................    6
 Power and Authority............................................    7

ARTICLE VI - OPTIONS............................................    7
 Grant of Options...............................................    7
 Incentive Stock Options........................................    8
 Manner of Exercise; Issuance of Common Stock...................    8
 Rights as Stockholder..........................................    9
 Equity Maintenance.............................................    9
 Effect of a Severance of Employment............................    9

ARTICLE VII - STOCK APPRECIATION RIGHTS.........................    9
 General Provisions.............................................    9
 Manner of Exercise.............................................   10
 Amount of Compensation.........................................   10
 Effect of a Severance of Employment............................   10
 Nature of SARs.................................................   10

ARTICLE VIII - RESTRICTED STOCK.................................   11
 General Provisions.............................................   11
 Enforcement of Restrictions....................................   11
 Lapse of Restrictions..........................................   11

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 Shareholder Rights.............................................   11
 Effect of a Severance of Employment............................   11

ARTICLE IX - COMMON STOCK EQUIVALENT UNITS......................   12
 Allocation.....................................................   12
 Ledger Account.................................................   12
 Distribution...................................................   13
 Not a Stockholder..............................................   13
 Effect of a Severance of Employment............................   13

ARTICLE X - PERFORMANCE OBJECTIVES..............................   13

ARTICLE XI - INCENTIVES FOR ELIGIBLE DIRECTORS..................   13
 Stock In Lieu of Compensation..................................   13
 Restricted Stock Awards........................................   14
 Grant to Eligible Directors....................................   14
 Additional Grants and Awards...................................   15

ARTICLE XII - MISCELLANEOUS.....................................   15
 Amendment and Termination......................................   15
 Transferability of Incentives..................................   15
 Withholding....................................................   16
 Tax Payments...................................................   16
 Lapse of Restrictions Upon Change in Control...................   16
 Lapse of Restrictions on Account of a Business Transaction.....   16
 Agreements.....................................................   17
 Additional Legal Requirements..................................   17
 Governing Law..................................................   17
 Other Benefits.................................................   17
 Deferral.......................................................   17
 Compliance with Code Section 162(m)............................   17

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                               CLECO CORPORATION
                   2000 LONG-TERM INCENTIVE COMPENSATION PLAN

     Cleco Corporation, a corporation organized and existing under the laws
of the State of Louisiana (the "Company"), hereby establishes the 2000 Long-Term
Incentive Compensation Plan (the "Plan").  This Plan is intended to replace the
1990 Long-Term Incentive Compensation Plan maintained by a subsidiary of the
Company, Cleco Utility Group Inc. (the "Utility"), except that outstanding
grants and awards made under such plan shall remain in effect until exercised or
expired in accordance with their terms.

                                   ARTICLE I
                                    PURPOSE

     This Plan is intended to provide flexibility to the Company in
connection with its compensation practices and to attract, retain and motivate
officers, executives and other key employees through the grant of nonqualified
stock options, incentive stock options, restricted stock, common stock
equivalent units, stock appreciation rights, and other forms of incentive
compensation, all as more fully set forth below.

                                  ARTICLE II
                                  DEFINITIONS

     2.1  AFFILIATE: means any corporation or other form of entity of which
the Company owns, from time to time, directly or indirectly, 50% or more of the
total combined voting power of all classes of stock or other equity interests.

     2.2  BOARD OR BOARD OF DIRECTORS: means the Board of Directors of the
Company.

     2.3  CAUSE: unless otherwise expressly defined in an agreement between
the Company (or an Affiliate) and a Participant hereunder, Cause means that a
Participant has:

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

     b.   Committed intentional damage to the property of the Company (or an
          Affiliate) or committed intentional wrongful disclosure of
          confidential information which is materially injurious to the
          Company's (or an Affiliate's) financial condition or business
          reputation; or

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

No act or failure to act on the part of the Participant will be deemed
"intentional" if it was due primarily to an error in judgment or negligence, but
will be deemed "intentional" only if done or omitted to be done by a Participant
not in good faith and without reasonable belief that his or her
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action or omission was in the best interest of the Company (or an Affiliate).
The Committee (or its designee) shall determine whether Cause has occurred
hereunder.

     2.4  CHANGE IN CONTROL: means and shall be deemed to occur if:

     a.   An event involving the Company occurs of a nature that the Company
          would be required to report in response to Item 6(e) of Schedule 14A
          of Regulation 14A promulgated under the Exchange Act;

     b.   Any "person" (as such term is used in Sections 13(d) and 14(d) of the
          Exchange Act), other than the Company or any "person" who on the
          effective date of this Plan is a director or officer of the Company or
          an employee stock ownership plan (within the meaning of Code Section
          4975(e)(7)) sponsored by the Company or an Affiliate, is or becomes
          the "beneficial owner" (as determined in Rule 13d-3 promulgated under
          the Exchange Act), directly or indirectly, of securities of the
          Company representing 20% or more of the combined voting power of the
          Company's then outstanding securities;

     c.   During any period of 24 consecutive months after the effective date of
          this Plan, individuals who at the beginning of such period constitute
          the Board of Directors cease for any reason to constitute at least a
          majority thereof, unless the election of each director who was not a
          director at the beginning of such period shall have been approved in
          advance by directors representing at least 80% of the directors then
          in office who were directors at the beginning of such period;

     d.   The Company shall be party to a merger or consolidation with another
          corporation and, as a result of such transaction, less than 80% of the
          then outstanding voting securities of the surviving or resulting
          corporation shall be owned in the aggregate by the former shareholders
          of the Company other than "affiliates" (as such term is defined in
          Rule 405 promulgated under the Securities Act of 1933, as amended) of
          any party to such transaction, as the same shall have existed
          immediately before such transaction;

     e.   The Company sells, leases, or otherwise disposes of, in one
          transaction or in a series of related transactions, all or
          substantially all of its assets;

     f.   The shareholders of the Company approve a plan of dissolution or
          liquidation; or

     g.   All or substantially all of the assets or the issued and outstanding
          common stock of the Utility is sold, leased or otherwise disposed of
          in one or a series of related transactions to a person, other than the
          Company or another Affiliate.

The Board of Directors, in its discretion, shall determine whether a Change in
Control has occurred hereunder.

     2.5  CODE: means the Internal Revenue Code of 1986, as amended.

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     2.6  COMMITTEE: means the persons appointed in accordance with the
provisions of Section 5.1 hereof to administer this Plan.

     2.7  COMMON STOCK: means $2.00 par value voting Common Stock issued by the
Company.

     2.8  COMMON STOCK EQUIVALENT UNIT: means a unit which is valued by
reference to the value of a share of Common Stock, as more fully set forth in
Article IX hereof.

     2.9  COVERED EMPLOYEE: means the chief executive officer and the four
highest compensated officers of the Company (other than the chief executive
officer), determined in accordance with Code Section 162(m) and the regulations
promulgated thereunder.

     2.10 DISABLED OR DISABILITY: means that an Employee is actually receiving
benefits under the Company's (or an Affiliate's) separate long-term disability
plan or that an Eligible Director would be receiving benefits under such plan,
if such Director were a participant therein.  The Committee shall determine
whether a Participant or Eligible Director is or becomes Disabled.

     2.11 ELIGIBLE DIRECTOR: means an individual, other than an Employee, who
serves as a member of (a) the Board of Directors of the Company, or (b) the
board of directors of an Affiliate, provided that such Affiliate is designated
by the Committee as a participating Affiliate hereunder.

     2.12 EMPLOYEE: means a regular, common law employee of the Company and/or
its Affiliates, including officers and directors, determined in accordance with
the Company's standard personnel policies and practices, but excluding
individuals who are classified by the Company as leased or otherwise employed by
a third party, independent contractors or intermittent or temporary employees,
even if any such classification is modified by audit, administrative proceeding,
litigation or otherwise.

     2.13 EXCHANGE ACT: means the Securities Exchange Act of 1934, as amended,
including any rule, regulation or interpretation promulgated thereunder.

     2.14 FAIR MARKET VALUE: means the average of the high and low closing sales
price of a share of Common Stock on the New York Stock Exchange Composite
Transactions reporting system on the date as of which such value is being
determined or, if no sales occurred on such day, then on the immediately
preceding date on which there were such sales.

     2.15 INCENTIVE: means a right to purchase or receive shares of Common Stock
or cash in accordance with the terms of this Plan.  An Incentive may be granted
in the form of Common Stock Equivalent Units, Options, Restricted Stock, Stock
Appreciation Rights or a combination thereof.

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     2.16 INCENTIVE STOCK OPTION OR ISO: means an option to purchase shares of
Common Stock that meets the requirements of Code Section 422 and is granted in
accordance with Section 6.2 hereof.

     2.17 LEDGER ACCOUNT: means the bookkeeping entry established and maintained
by the Company in connection with the allocation of Common Stock Equivalent
Units under Section 9.2 hereof.

     2.18 NONQUALIFIED STOCK OPTION: means an option to purchase shares of
Common Stock granted in accordance with the terms of Section 6.1 hereof.

     2.19 OPTION: means an Incentive Stock Option or a Nonqualified Stock
Option.

     2.20 PARTICIPANT: means an Employee who is granted or awarded an Incentive
under this Plan.

     2.21 PERFORMANCE OBJECTIVES: means performance criteria designated by the
Committee to be achieved during a designated period.  Such objectives may relate
to the business and affairs of the Company, an Affiliate, a division,
department, unit or profit center of the Company or an Affiliate, including,
without limitation, the attainment of goals related to the Company's earnings
per share, return on equity, return on investment, return on or growth in income
(whether gross or net), market share, appreciation in the price of Common Stock
or return on assets; such objectives may relate to any Participant or any
Employee or group of Participants or Employees and may be determined with
respect to the performance of Cleco and/or its affiliates or such performance
compared to a designated peer group.

     2.22   PLAN: means this 2000 Long-Term Incentive Compensation Plan, as may
be amended from time to time.

     2.23 RESTRICTED STOCK: means an award of Common Stock to an Employee that
is subject to restrictions on transfer and granted in accordance with the
provisions of Article VIII hereof or an award of Common Stock to an Eligible
Director pursuant to Article XI hereof.

     2.24 RETIREMENT OR RETIRE: means the date on which a Participant ceases to
be employed by the Company (or an Affiliate) on account of normal, early or
deferred retirement as defined in the separate defined benefit plan maintained
by the Company or Affiliate under which the Participant is covered, provided the
Participant is eligible to receive an immediate benefit thereunder.

     2.25 STOCK APPRECIATION RIGHT OR SAR: means a right that is based upon the
appreciation of Common Stock and is granted in accordance with Article VII
hereof.

     2.26 TANDEM STOCK APPRECIATION RIGHT OR TANDEM SAR: means a Stock
Appreciation Right granted with respect to shares of Common Stock covered by an
Option.

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     2.27 OTHER DEFINITIONS: The following terms shall have the meanings
ascribed below: "Effective Date" is defined in Section 3.1 hereof; "non-employee
director," "performance-based compensation" and "outside director" are defined
in Section 5.1 hereof; "Performance Cycle" is defined in Article X hereof;
"Business Transaction" is defined in Section 12.6 hereof.

                                  ARTICLE III
                ADOPTION; RESERVATION OF SHARES; MAXIMUM AWARDS

     3.1  ADOPTION AND EFFECTIVE DATE. Subject to its approval by the Company's
shareholders, this Plan shall be effective as of January 1, 2000 (the "Effective
Date").  Prior to the approval of the Plan by the shareholders of the Company,
Incentives may be granted hereunder, but if such shareholder approval is not
received prior to January 1, 2001, such grants shall be void and of no effect.

     3.2  DURATION.  This Plan shall commence on its Effective Date and shall
remain in effect until (a) all Incentives have been satisfied by the issuance of
shares of Common Stock or cash payments or a combination thereof or have been
terminated or forfeited, or (b) restrictions or Performance Objectives imposed
on shares of Common Stock have lapsed.  No Incentive shall be granted hereunder
after January 1, 2010.

     3.3  NUMBER AND TYPE OF SHARES.  Subject to adjustment as provided in
Section 3.5 hereof, not more than 800,000 shares of Common Stock shall be issued
under the Plan.  Except as provided in Section 3.4 hereof, the number of shares
available for grant, transfer, issuance or other payment under the Plan shall be
reduced by the number of shares actually granted, transferred, issued or paid
hereunder.  Common Stock issued in connection with the grant or award of an
Incentive may be authorized and unissued shares, issued shares held as treasury
shares or shares acquired on the open market or through private purchase.

     3.4  CANCELLATION.  Shares of Common Stock covered by Incentives that are
not earned or that are canceled, forfeited, terminated, expired or otherwise
lapse for any reason and Incentives that are not exercised or that are exchanged
for other forms of Incentives hereunder, shall again be available for grant or
issuance under the Plan.

     3.5  ADJUSTMENT.  In the event of any merger, consolidation or
reorganization of the Company with another entity that does not constitute a
Change in Control within the meaning of Section 2.4 hereof, there shall be
substituted for each of the shares of Common Stock then subject to the Plan the
number and kind of shares of stock or other securities to which the holders of
Common Stock are entitled in the transaction.

     In the event of any recapitalization, stock dividend, stock split,
combination of shares or other change in the number of shares of Common Stock
then outstanding for which the Company does not receive consideration, the
number of shares of Common Stock then subject to the Plan shall be adjusted in
proportion to the change in outstanding shares of Common Stock.  In the event of
any such substitution or adjustment, the purchase price of any Option, the
Performance Objectives applicable to any Incentive, and the shares of Common
Stock issuable pursuant to any

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Incentive shall be adjusted in the discretion of the Committee to the extent
necessary to prevent the dilution or enlargement of any Incentive granted
hereunder.

     3.6  INDIVIDUAL LIMITATIONS.  The maximum aggregate number of shares of
Common Stock that may be granted to an individual Participant in the form of
Options, SARs, Restricted Stock and Common Stock Equivalent Units during any
calendar year shall not exceed 125,000 shares (subject to adjustment as provided
in Section 3.5 hereof).  The maximum aggregate amount distributable in the form
of cash that may be paid to an individual Participant in any calendar year shall
not exceed $500,000.  The foregoing limitations shall be applied in a manner
consistent with the "performance-based compensation" rules imposed under Code
Section 162(m).

                                  ARTICLE IV
                                 PARTICIPATION

     4.1  ELIGIBILITY.  Employees of the Company and its Affiliates shall be
eligible to receive Incentives under this Plan, when designated by the
Committee.  Employees may be designated for participation hereunder individually
or by groups or categories, in the discretion of the Committee.

     Eligible Directors of the Company shall participate in this Plan without
necessity of further action; Eligible Directors of Affiliates shall participate
in this Plan when designated by the Committee.

     4.2  NO CONTINUED EMPLOYMENT.  No Participant shall have any right to
continue in the employ of the Company or an Affiliate for any period of time or
any right to continue his or her present or any other rate of compensation on
account of the grant or award of an Incentive or the issuance of Common Stock or
other form of payment hereunder.

                                   ARTICLE V
                            ADMINISTRATION OF PLAN

     5.1  COMPOSITION OF COMMITTEE.  This Plan shall be administered by a
committee appointed by the Board of Directors consisting of not less than two
persons, which shall ordinarily be the Compensation Committee of the Board,
provided that:

     a.   To the extent the grant or award of an Incentive is intended to be an
          exempt transaction under Rule 16b-3 promulgated under the Exchange
          Act, each acting member of the Committee shall be a "non-employee
          director" within the meaning of such rule.

     b.   To the extent the grant or award of an Incentive hereunder is intended
          to constitute "performance-based compensation" within the meaning of
          Code Section 162(m), each acting member of the Committee shall be an
          "outside director" within the meaning of such section.

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     c.   The Committee, in its discretion, may delegate to one or more
          executive officers of the Company the authority to make grants or
          awards of Incentives to Participants hereunder, except that the
          authority to make grants or awards that are intended to be exempt
          transactions under Rule 16b-3 promulgated under the Exchange Act or
          "performance-based compensation" within the meaning of Code Section
          162(m) shall not be delegated.

Notwithstanding the foregoing, the Board of Directors may act in lieu of the
Committee hereunder.

     5.2  POWER AND AUTHORITY.  The Committee shall have the discretionary power
and authority to (a) designate Participants hereunder, (b) award Incentives
under the Plan, including the determination of the terms and conditions thereof,
(c) construe and interpret the provisions of the Plan and any form or agreement
related thereto, (d) establish and adopt rules, regulations, and procedures
relating to the Plan and the grant or award of Incentives hereunder, including,
without limitation, procedures for the crediting of periods of employment with
an Affiliate and/or during any period of part-time employment, (e) interpret,
apply and construe such rules, regulations and procedures, and (f) make any
other determination which it believes necessary or advisable for the proper
administration of the Plan.

     Decisions, interpretations and actions of the Committee concerning matters
related to the Plan shall be final and conclusive on the Company, its Affiliates
and Participants and their beneficiaries or heirs.  The Committee may make
determinations selectively among Participants who receive or are eligible to
receive Incentives hereunder, whether or not such Participants are similarly
situated.

                                  ARTICLE VI
                                    OPTIONS

     6.1  GRANT OF OPTIONS.  The Committee may grant Nonqualified Stock Options
and Incentive Stock Options to such Participants as it may designate, from time
to time, subject to the following:

     a.   The exercise price of an Option granted hereunder shall be not less
          than 85% of the Fair Market Value of the Common Stock on the date the
          Option is granted.

     b.   The number of shares of Common Stock subject to an Option shall be
          designated by the Committee at the time of grant.

     c.   The term of each Option shall be determined by the Committee, but
          shall not be longer than 10 years, measured from the date of grant.

     d.   The exercise of an Option granted hereunder shall be subject to such
          Performance Objectives or other conditions, as the Committee deems
          appropriate.

     e.   Each Option shall be exercisable at such time or times during its term
          as may be determined by the Committee.

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     6.2  INCENTIVE STOCK OPTIONS.  In addition to the provisions of Section 6.1
hereof, Incentive Stock Options shall be subject to the following:

     a.   No ISO shall be granted hereunder if the aggregate Fair Market Value
          of Common Stock with respect to which ISOs are first exercisable
          during any calendar year (under this Plan and any other plans of the
          Company and its Affiliates) exceeds $100,000.

     b.   No ISO shall be granted to any Participant who owns, directly or
          indirectly, more than 10% of the total combined voting power of all
          classes of stock of the Company or an Affiliate (determined in
          accordance with Code Section 424), unless the exercise price of such
          option is not less than 110% of the Fair Market Value of Common Stock,
          determined at the time of grant.

     c.   The exercise price of an ISO granted hereunder shall not be less than
          the Fair Market Value of Common Stock on the date the ISO is granted.

     d.   An ISO granted hereunder shall be subject to such additional terms and
          conditions as the Committee deems necessary or advisable, consistent
          with the provisions of Code Section 422 and the regulations
          promulgated thereunder.

     e.   Any agreement evidencing the grant of an ISO hereunder may provide
          that such Option may be characterized as a Nonqualified Stock Option
          to the extent that the requirements imposed under Code Section 422 are
          not satisfied.

     6.3  MANNER OF EXERCISE; ISSUANCE OF COMMON STOCK.  An Option shall be
exercised, in whole or in part, by providing notice to the Committee, specifying
the number of shares of Common Stock to be purchased and accompanied by the full
purchase price for such shares.  The option price shall be payable in the form
of cash (including cash equivalents) or, if permitted under the terms and
conditions applicable to a specific grant, by delivery of shares of Common Stock
held by the Participant (whether mature or otherwise), a combination thereof or
in such other manner as may be authorized, from time to time, by the Committee.
Common Stock tendered in payment of the option price shall be valued at Fair
Market Value as of the date of exercise.

     A Participant may exercise Options and contemporaneously sell the shares of
Common Stock acquired thereby pursuant to a brokerage or similar arrangement,
provided that the proceeds thereof are applied to the payment of the purchase
price of the shares.  Any such transaction shall be with the consent of the
Committee.

     As soon as practicable after the receipt of written notification or
exercise and payment of the option price in full, the Committee shall cause the
Company to deliver to the Participant, registered in the Participant's name,
certificates representing shares of Common Stock in the appropriate amount.

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     6.4  RIGHTS AS STOCKHOLDER.  Prior to the issuance of shares of Common
Stock upon the exercise of an Option, a Participant shall have no rights as a
stockholder with respect to the shares subject to such Option.

     6.5  EQUITY MAINTENANCE.  If a Participant, while an Employee of the
Corporation or an Affiliate, pays the option price by delivery of previously
owned shares of Common Stock, the Committee, in its discretion, may grant to
such Participant an additional option to purchase the number of shares of Common
Stock delivered by the Participant to pay the option price.  Any such additional
option granted hereunder shall be exercisable at Fair Market Value, determined
as of the date on which such additional option is granted.

     6.6  EFFECT OF A SEVERANCE OF EMPLOYMENT.  Unless otherwise provided by the
Committee, Nonqualified Stock Options granted hereunder shall be exercisable
only while a Participant is an Employee of the Company or an Affiliate;
thereafter, such Nonqualified Stock Options shall be exercisable, to the extent
exercisable as of the Participant's severance of employment:

     a.   During the one-year period following the date of the Participant's
          death, but by the Participant's estate or heirs;

     b.   During the three-year period following the Participant's Disability or
          Retirement; or

     c.   During the 30-day period following a termination of employment for any
          other reason, except Cause.

     Unless otherwise provided by the Committee, Incentive Stock Options granted
hereunder shall be exercisable only while a Participant is an Employee of the
Company or an Affiliate and thereafter, to the extent exercisable as of the
Participant's severance of employment, during the three-month period following
such severance for any reason, except Cause.

     Unless otherwise provided by the Committee, if a Participant's employment
is terminated for Cause, then notwithstanding any provision of this Plan or any
related form or agreement to the contrary, Options granted hereunder shall be
deemed canceled and forfeited as of the date of such termination.

                                  ARTICLE VII
                           STOCK APPRECIATION RIGHTS

     7.1  GENERAL PROVISIONS.  The Committee may grant Stock Appreciation Rights
to such Participants as it may designate, from time to time, subject to the
following:

     a.   Each SAR granted hereunder shall relate to the number of shares of
          Common Stock designated by the Committee.

                                       9
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     b.   Unless otherwise provided by the Committee, if a Tandem SAR is granted
          (i) the number of shares of Common Stock to which the Tandem SAR
          relates shall be reduced in the same proportion that the Option
          related to the Tandem SAR is exercised, or (ii) the Option shall be
          reduced in the same proportion that the Tandem SAR is exercised.

     c.   The exercise of each SAR granted hereunder shall be subject to such
          Performance Objectives or other conditions as the Committee deems
          appropriate, except that the terms and conditions applicable to a
          Tandem SAR shall be the same as its related Option.

     d.   Each SAR shall be exercisable at such time or times during its term as
          may be determined by the Committee, except that a Tandem SAR shall not
          be exercisable after the related Option expires or is forfeited.

     7.2  MANNER OF EXERCISE.  An SAR may be exercised, in whole or in part, by
giving written notice to the Committee, specifying the number of SARs to be
exercised.  The Committee shall, promptly after receipt of such notice, deliver
to the Participant certificates for shares of Common Stock free of or subject to
restriction or cash or a combination thereof (determined in the discretion of
the Committee) in an amount determined in accordance with Section 7.3 hereof.

     7.3  AMOUNT OF COMPENSATION.  The amount of compensation payable to a
Participant upon the exercise of an SAR shall be determined by multiplying:

     a.   The number of shares of Common Stock with respect to which the SAR is
          exercised; by

     b.   The excess of the Fair Market Value of a share of Common Stock on the
          exercise date over (i) in the case of Tandem SAR, the exercise price
          of the shares of Common Stock subject to the Option, or (ii) in the
          case of a SAR granted alone, without reference to an Option, an amount
          equal to the Fair Market Value of a share of Common Stock on the date
          of grant.

     7.4  EFFECT OF A SEVERANCE OF EMPLOYMENT.  Unless otherwise specified by
the Committee, an SAR granted hereunder shall be exercisable only while a
Participant is an Employee of the Company or an Affiliate and thereafter in
accordance with the provisions of Section 6.6 hereof applicable to Nonqualified
Stock Options.

     7.5  NATURE OF SARS.  Stock Appreciation Rights granted hereunder shall not
be deemed to constitute property or create a trust or fiduciary relationship as
between any Participant and the Company, any Affiliate or the Committee.  The
rights of a Participant with respect to any SAR shall be limited to the right to
receive cash or Common Stock upon its exercise.

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                                 ARTICLE VIII
                               RESTRICTED STOCK

     8.1  GENERAL PROVISIONS.  The Committee may grant shares of Restricted
Stock to such Participants as it may designate, from time to time, subject to
the following terms and conditions:

     a.   The number of shares of Common Stock to be transferred to a
          Participant shall be determined in the discretion of the Committee.

     b.   Shares of Restricted Stock granted hereunder shall be subject to such
          terms, conditions and restrictions for such period or periods as the
          Committee, in its discretion, may determine (including, without
          limitation, restrictions on transfer or other disposition, forfeiture
          provisions, and/or restrictions based upon the achievement of
          Performance Objectives).

     8.2  ENFORCEMENT OF RESTRICTIONS.  In order to enforce any restrictions
imposed by the Committee pursuant to Section 8.1 hereof, a Participant receiving
a grant of Restricted Stock hereunder shall enter into an agreement with the
Committee setting forth the conditions of the grant.  Each certificate issued
with respect to a grant of Restricted Stock hereunder shall bear such legends as
the Committee, in its sole discretion, shall deem necessary or appropriate.  The
Committee, in its discretion, may additionally require that shares of Restricted
Stock registered in the name of the Participant be deposited, together with a
stock power endorsed in blank, with the Company pending the lapse of such
restrictions.

     8.3  LAPSE OF RESTRICTIONS.  The Committee shall notify an affected
Participant at the end of any period during which the shares of Restricted Stock
are subject to forfeiture and/or other restriction on transfer.  Such
restrictions shall be deemed lapsed and a certificate representing the number of
shares of Common Stock with respect to which the lapse has occurred shall be
delivered to the Participant free of restriction.

     8.4  SHAREHOLDER RIGHTS.  Subject to any restrictions or limitations
imposed by the Committee, each Participant receiving a grant of Restricted Stock
hereunder shall have the full voting rights of a stockholder with respect to
such shares during any period in which the shares are subject to forfeiture or
restriction on transfer.  During the period of any restriction imposed
hereunder, dividends paid in cash or property with respect to the underlying
shares of Common Stock shall be paid to the Participant currently, accrued by
the Company as a contingent obligation or converted to additional shares of
stock, in the discretion of the Committee.

     8.5  EFFECT OF A SEVERANCE OF EMPLOYMENT.  Unless otherwise provided by the
Committee, if an Employee severs his or her employment with the Company and all
Affiliates prior to the date on which Performance Objectives or other
restrictions imposed on Restricted Stock granted hereunder have lapsed:

                                      11
<PAGE>

     a.   If such severance is on account of Retirement on or after age 65, such
          restrictions shall lapse and such Performance Objectives shall be
          deemed satisfied with respect to all shares of Restricted Stock
          awarded hereunder.

     b.   If such severance is on account of death, Disability or Retirement
          prior to age 65 or such severance is involuntary, but not on account
          of Cause, such restrictions shall lapse and such Performance
          Objectives shall be deemed satisfied as to the number of shares of
          Restricted Stock determined by multiplying (i) the total number of
          shares subject to restriction and/or Performance Objectives, by (ii)
          the ratio of the number of days lapsed in the restriction period or
          Performance Cycle over the total number of days in such period.

Unless otherwise provided by the Committee, if a Participant's employment is
terminated on account of Cause or the Participant's severance is not otherwise
described above, then notwithstanding any provision of this Plan or any related
form or agreement to the contrary, Restricted Stock subject to restrictions or
Performance Objectives as of the date of such termination shall be deemed
canceled and forfeited.

                                  ARTICLE IX
                         COMMON STOCK EQUIVALENT UNITS

     9.1  ALLOCATION.  The Committee, in its discretion, may allocate Common
Stock Equivalent Units to a Participant hereunder, subject to the following:

     a.   The number of units allocated to a Participant shall be determined by
          the Committee;

     b.   The units shall be subject to such Performance Objectives and/or other
          restrictions as the Committee deems appropriate; and

     c.   The units may relate to a grant of Restricted Stock hereunder and, in
          such event, shall be subject to the Performance Objectives and/or
          additional restrictions applicable to the related grant of Restricted
          Stock, unless the Committee provides otherwise.

     9.2  LEDGER ACCOUNT.  Common Stock Equivalent Units allocated to a
Participant shall be credited to the Ledger Account established and maintained
for such Participant on the books and records of the Company.  Such Ledger
Account, including units credited thereto, shall be bookkeeping entries only and
shall not require the Company or any Affiliate to segregate or otherwise earmark
or reserve assets.  No shares of Common Stock shall be issued or issuable at the
time units are credited to a Ledger Account established hereunder.

     During any period in which Common Stock Equivalent Units are credited to a
Ledger Account, the Committee may provide (a) that an amount equal to the
dividends payable with respect to Common Stock represented by units credited to
such account shall be credited as of

                                      12
<PAGE>

each dividend payment date, and/or (b) that any stock dividend, stock split or
other recapitalization shall be reflected in the credits made to such Ledger
Account.

     9.3  DISTRIBUTION.  All Common Stock Equivalent Units allocated to a
Participant shall be distributable in accordance with the terms and conditions
imposed by the Committee.  When any such unit is or becomes distributable, the
affected Participant shall be entitled to receive a distribution from the
Company in such form (which may includes shares of Common Stock, with or without
legends, Restricted Stock, cash or a combination thereof) as the Committee shall
determine.

     9.4  NOT A STOCKHOLDER.  The allocation of Common Stock Equivalent Units to
a Ledger Account shall not entitle a Participant to exercise the rights of a
stockholder of the Company, until the issuance of shares of Common Stock with
respect to such allocation.

     9.5  EFFECT OF A SEVERANCE OF EMPLOYMENT.  Unless otherwise provided by the
Committee, if a Participant severs his or her employment with the Company and
all Affiliates with Common Stock Equivalent Units credited to his or her Ledger
Account, the provisions of Section 8.5 hereof shall apply to determine the
number of such units distributable to the Participant, if any.

                                   ARTICLE X
                            PERFORMANCE OBJECTIVES

     The Committee, in its discretion, may impose Performance Objectives as a
condition of the grant or award of Incentives hereunder, such objectives to be
achieved during the period designated by the Committee (the "Performance
Cycle").  The Committee shall establish such Performance Objectives at the time
of grant or award or annually during the term of such grant or award.  Once
established, Performance Objectives may be changed, adjusted or amended during
the Performance Cycle, in the discretion of the Committee.  The Committee may
waive all or any portion of the Performance Objectives during or after the term
of the grant or award on account of a change in circumstances.

     At the conclusion of the term of an affected Incentive or any Performance
Cycle, the Committee shall determine the portion of such grant or award that
shall be deemed free of restriction on account of the attainment of the
applicable Performance Objectives.  The Committee shall notify each affected
Participant as to whether the Performance Objectives have been achieved, in
whole or in part, and the number of shares of Common Stock free of restriction
on account of the attainment of such objectives.

                                  ARTICLE XI
                       INCENTIVES FOR ELIGIBLE DIRECTORS

     11.1 STOCK IN LIEU OF COMPENSATION.  Each Eligible Director shall be
entitled to elect to receive all or a portion of his or her annual compensation
in the form of Common Stock, instead of in cash. The number of shares issued to
the Eligible Director shall equal the quotient of:

                                      13
<PAGE>

     a.   The amount of compensation that the Eligible Director elects to
          receive in the form of Common Stock; divided by

     b.   The Fair Market Value of Common Stock, determined as of the first
          business day following the meeting with respect to which the
          compensation is paid or payable.

Prior to the calendar year in which such shares are issued as compensation, each
Eligible Director shall also be entitled to defer the receipt of the Common
Stock payable hereunder in accordance with the terms of the Deferred
Compensation Plan for Directors or a similar plan providing for the deferral of
compensation.

     11.2 RESTRICTED STOCK AWARDS.  If an Eligible Director, upon his or her
election or appointment to the Board, owns less than 1,000 shares of Common
Stock, he or she shall receive shares of Restricted Stock equal to that number
of shares of Common Stock necessary to increase such Eligible Director's
ownership to 1,000 shares.  Such award shall be subject to the following:

     a.   Each affected Eligible Director shall be required to remit to the
          Company the Fair Market Value of Common Stock awarded hereunder,
          determined as of the date of award.

     b.   Each affected Eligible Director shall apply $6,000 of his or her
          annual retainer toward acquiring such shares of Common Stock, until
          the purchase price is paid in full.

     c.   Each affected Eligible Director shall not sell, assign, transfer,
          pledge, hypothecate or otherwise dispose of shares of Restricted Stock
          awarded hereunder until the shares have been paid in full.  Such
          shares shall be held in escrow pursuant to an agreement satisfactory
          to the Committee pending such payment.

     d.   Each affected Eligible Director shall have absolute ownership of the
          Restricted Stock awarded hereunder, including the right to vote the
          shares and receive dividends thereon, subject, however, to the
          limitations set forth in Section 11.2c hereof.

     e.   Prior to receipt of the shares of Common Stock hereunder, each
          affected Eligible Director may elect to defer receipt of Common Stock
          under the terms of the Deferred Compensation Plan for Directors.

     11.3 GRANT TO ELIGIBLE DIRECTORS.  Each Eligible Director, upon such
Eligible Director's election and, thereafter, upon reelection to the Board,
shall be granted an immediately exercisable Nonqualified Stock Option to
purchase 2,500 shares of Common Stock; the exercise price of such Options shall
be Fair Market Value, determined as of the date of grant.  Options granted under
this Section 11.3 shall expire and be of no further effect 10 years after the
date of grant.

                                      14
<PAGE>

     If an Eligible Director is elected or appointed to the Board during the
term applicable to his or her class of directors, such director shall be granted
an immediately exercisable Nonqualified Stock Option to purchase the number of
shares of Common Stock determined by multiplying (a) 2,500 shares, by (b) the
ratio of the number of whole and fractional years of such director's term over
three.

     11.4 ADDITIONAL GRANTS AND AWARDS.  The Committee may, from time to time,
grant or award additional Incentives to one or more Eligible Directors in any
year, subject to such terms and conditions as the Committee deems appropriate,
except that (a) Incentive Stock Options shall not be granted to Eligible
Directors, and (b) in no event shall the number of shares of Common Stock
covered by the grant or award of any such additional Incentive exceed 2,500
shares determined with respect to each affected Eligible Director.

                                  ARTICLE XII
                                 MISCELLANEOUS

     12.1 AMENDMENT AND TERMINATION.  The Board of Directors may amend or
terminate this Plan at any time, in its sole discretion; provided, however, that
no such amendment or termination shall materially change or impair, without the
consent of each affected Participant or Eligible Director, the terms and
conditions of an Incentive previously granted or awarded hereunder.

     12.2 TRANSFERABILITY OF INCENTIVES.  Except as expressly provided in this
Section 12.2, no Incentive granted hereunder shall be transferred, pledged,
assigned, hypothecated, alienated or otherwise encumbered or sold by the holder
thereof, whether by operation of law or otherwise, and whether voluntarily or
involuntarily (except in the event of the holder's death by will or the laws of
descent and distribution) and neither the Committee nor the Company shall be
required to recognize any attempted assignment of such rights by any Participant
or Eligible Director.  During a Participant's or Eligible Director's lifetime,
an Incentive may be exercised only by the Participant or Eligible Director or by
the guardian or legal representative of such person.

     Notwithstanding the foregoing, the Committee, in its sole discretion, may
provide that any Incentive awarded hereunder, except an Incentive Stock Option
or Tandem SAR related thereto, may be transferred by a Participant or Eligible
Director to members of such Participant's or Eligible Director's immediate
family, any trust for the benefit of such family members, and/or partnerships
whose partners are such family members, but such transferees may not transfer
such Incentives to third parties.  For purposes of this Section 12.2, the term
"immediate family" shall have the meaning ascribed to such term in Rule 16a-1(e)
promulgated under the Exchange Act.

     Each transferee shall be subject to the terms and conditions applicable to
the Incentive prior to such transfer and, prior to any transfer hereunder, each
such transferee and the related Participant or Eligible Director shall enter
into a written agreement with the Committee acknowledging such terms and
conditions, including, but not limited to, the conditions with regard to the
liability for payment of any and all taxes, as well as any other restriction
determined to be reasonably necessary by the Committee.  To the extent the
Committee determines that any

                                      15
<PAGE>

transfer hereunder would result in the loss of the exemption provided under Rule
16b-3 of the Exchange Act or a similar provision, such transfer shall be deemed
invalid.

     12.3 WITHHOLDING.  The Company shall have the right to withhold from any
payment made under the Plan or to collect as a condition of any such payment,
any taxes required by law to be withheld.  To the extent permitted under a
specific grant or award of an Incentive hereunder, a Participant may satisfy
this obligation, in whole or in part, by directing the Company to withhold from
such payment shares of Common Stock having a Fair Market Value equal to the
amount required to be withheld, determined for Federal income tax purposes at a
rate not in excess of the rates applicable to supplemental wage payments under
Code Section 3402.  Common Stock withheld hereunder shall be valued at Fair
Market Value, determined as of the date that the amount of tax to be withheld
shall be determined.  Once delivered to the Committee, an election shall be
irrevocable.

     12.4 TAX PAYMENTS.  The Committee, in its discretion, may award a cash
payment to a Participant hereunder in an amount sufficient to pay all or a
portion of such Participant's tax liability attributable to the vesting,
exercise and/or payment of an Incentive hereunder, taking into account the value
of such tax payment.

     12.5 LAPSE OF RESTRICTIONS UPON CHANGE IN CONTROL. Unless otherwise
provided by the Committee at the time of grant or award hereunder or unless
otherwise provided in a separate agreement between the Company or an Affiliate
and a Participant hereunder, in the event of a Change in Control (a) the
restrictions on all shares of Restricted Stock awarded under the Plan shall
immediately lapse, (b) all outstanding Options shall become and remain
exercisable during the six-month period following such change or such longer
period permitted under an individual grant (but in no event shall an Option be
exercisable more than 10 years after its date of grant), (c) all Common Stock
Equivalent Units credited to Ledger Accounts established hereunder shall be
immediately distributable, and (d) all Performance Objectives or other
restrictions on Incentives granted hereunder shall be deemed to be satisfied or
lapsed and payment made immediately.

     Unless otherwise provided in a separate agreement between the Company or an
Affiliate and a Participant hereunder and notwithstanding any provision of this
Plan to the contrary, the aggregate present value of all "parachute payments" to
a Participant hereunder shall not exceed 300% of such Participant's "base
amount" minus one dollar (all determined in accordance with Code Section 280G).
To the extent necessary to comply with such limit, an affected Participant shall
be deemed to have forfeited Incentives otherwise accelerated hereunder.

     12.6 LAPSE OF RESTRICTIONS ON ACCOUNT OF A BUSINESS TRANSACTION.  Unless
otherwise provided by the Committee at the time of a grant or award hereunder,
upon the occurrence of a Business Transaction in which a Participant's
employment with the Company and all Affiliates is involuntarily terminated,
other than on account of Cause, (a) the restrictions on all shares of Restricted
Stock awarded to such Participant shall immediately lapse, (b) all outstanding
Options granted to such Participant shall become and remain exercisable during
the six-month period following such change or such longer period permitted under
an individual grant (but in no event shall an Option be exercisable more than 10
years after its date of grant), (c) all Common Stock

                                      16
<PAGE>

Equivalent Units credited to such Participant's Ledger Account shall be
immediately distributable, and (d) all Performance Objectives or other
restrictions on Incentives granted to such Participant hereunder shall be deemed
to be satisfied or lapsed and payment made immediately. For this purpose, the
term "Business Transaction" shall mean the sale, lease or other disposition of
all or a substantial portion of the assets of Cleco or an Affiliate (in one or a
series of related transactions) to an entity other than another Affiliate or the
sale or other disposition of all or substantially all of the issued and
outstanding stock or other equity interests of an Affiliate to an entity other
than another Affiliate, other than a sale, lease or other disposition that
constitutes a Change in Control. The Committee shall determine whether any sale,
lease or other disposition constitutes a Business Transaction hereunder.

     12.7 AGREEMENTS.  The terms of each Incentive granted or awarded hereunder
shall be evidenced by an agreement between each Participant or Eligible Director
and the Committee setting forth the terms and conditions applicable to such
Incentive; such agreement shall be made in writing or by such electronic means
as the Committee deems appropriate.

     12.8 ADDITIONAL LEGAL REQUIREMENTS.  The obligation of the Company or any
of its Affiliates to deliver Common Stock to any Participant hereunder or to
deliver such stock free of restriction shall be subject to all applicable laws,
regulations, rules and approvals deemed necessary or appropriate by the
Committee.  Certificates for shares of Common Stock issued hereunder may be
legended, as the Committee shall deem appropriate.

     12.9 GOVERNING LAW.  The Plan and any Incentive granted under the Plan
shall be governed by the laws of the State of Louisiana.

     12.10  OTHER BENEFITS.  Incentives granted to a Participant under the terms
of the Plan shall not impair or otherwise reduce such Participant's
compensation, life insurance or other benefits provided by the Company or its
Affiliates; provided, however, that the value of Incentives shall not be treated
as compensation for purposes of computing the value or amount of any such
benefit.

     12.11  DEFERRAL.  If permitted by the Committee, a Participant may elect to
enter into a written agreement with the Company providing for the deferral of
any form of payment hereunder (whether in the form of cash or Common Stock),
subject to such terms and conditions as the Committee may deem appropriate.

     12.12   COMPLIANCE WITH CODE SECTION 162(M).   The Committee, in its
discretion, shall determine whether any specific Incentive granted or awarded to
a Participant who is a Covered Employee shall be structured to constitute
"performance-based compensation" within the meaning of Code Section 162(m).

                                      17
<PAGE>

     THIS PLAN was approved by the Board Directors of Cleco Corporation on
January 28, 2000, to be effective as of January 1, 2000, subject to the approval
of the Shareholders of the Company, as more fully described in Section 3.1
hereof.

                                          CLECO CORPORATION

                                      18<PAGE>

                                                                     EXHIBIT 4.3

                               CLECO CORPORATION

                           DEFERRED COMPENSATION PLAN
<PAGE>

                               CLECO CORPORATION
                           DEFERRED COMPENSATION PLAN

                                     INDEX
<TABLE>
<CAPTION>
                                                                                  PAGE
<S>                                                                               <C>

ARTICLE I - PURPOSE............................................................    1

ARTICLE II - DEFINITIONS.......................................................    1

ARTICLE III - ELIGIBILITY AND PARTICIPATION....................................    4

ARTICLE IV - DEFERRALS.........................................................    4
 Deferral of Compensation, Bonus or Fees.......................................    4
 Deferral of Excess 401(k) Contributions.......................................    5
 Deferral of Option Gain.......................................................    6
 Short Term Deferrals..........................................................    6

ARTICLE V - COMPANY CONTRIBUTIONS..............................................    6
 Company Contributions.........................................................    6
 Matching Contributions........................................................    6
 Vesting.......................................................................    7

ARTICLE VI - MAINTENANCE AND INVESTMENT OF DEFERRED BENEFIT ACCOUNTS...........    7
 Establishment of Accounts.....................................................    7
 Status of Accounts............................................................    7
 Investment Policy.............................................................    7
 Deferral of Fees..............................................................    8
 Option Gain...................................................................    8
 Matching Contributions........................................................    8
 Accounting....................................................................    9
 Valuation Notice..............................................................    9
 No Rights as a Shareholder....................................................    9

ARTICLE VII - RETIREMENT BENEFITS..............................................    9
 Form of Retirement Benefit....................................................    9
 Amount of Retirement Benefits.................................................   10
 Time of Payment...............................................................   10
 Cash Out of Small Benefits....................................................   10
 Modification of Schedule A....................................................   10
 Manner of Payment.............................................................   11
</TABLE>

                                       i
<PAGE>

<TABLE>
<CAPTION>

<S>                                                                              <C>
ARTICLE VIII - DEATH BENEFITS..................................................   11
 Beneficiary Designation.......................................................   11
 Participant's Death Before Benefit Commencement Date..........................   11
 Participant's Death After Benefit Commencement Date...........................   11
 Death of Beneficiary..........................................................   11
 Discretionary Death Benefit...................................................   11
 Single-Sum Payment............................................................   11
 Manner of Payment.............................................................   12

ARTICLE IX - SHORT TERM DEFERRALS; HARDSHIP WITHDRAWALS; OTHER DISTRIBUTIONS...   12
 Short Term Deferrals..........................................................   12
 Hardship Withdrawal...........................................................   12
 Benefits Payable on Termination for Cause.....................................   13
 Early Payments................................................................   14
 Change in Control; Business Transaction.......................................   14
 Disability....................................................................   14

ARTICLE X - PLAN ADMINISTRATION................................................   15
 Powers........................................................................   15
 Payments......................................................................   15
 Delegation of Administrative Authority........................................   15

ARTICLE XI - PARTICIPANTS' RIGHTS..............................................   15
 Spendthrift Provision.........................................................   15
 No Continued Employment.......................................................   16
 Offset........................................................................   16
 Obligation for Benefit Payments...............................................   16
 Taxes.........................................................................   16
 Company's Protection..........................................................   16

ARTICLE XII - MISCELLANEOUS....................................................   16
 Termination of Plan...........................................................   16
 Funding.......................................................................   17
 Inurement.....................................................................   17
 No Effect on Other Benefits...................................................   17
 Amendment and Modification....................................................   17
 Governing Law.................................................................   17
</TABLE>

                                      ii
<PAGE>

                               CLECO CORPORATION
                           DEFERRED COMPENSATION PLAN

     Cleco Corporation, a corporation organized and existing under the laws of
the State of Louisiana (the "COMPANY"), hereby establishes the Cleco Corporation
Deferred Compensation Plan (the "PLAN"), effective as of August 1, 2000 (the
"EFFECTIVE DATE").  This Plan is intended to incorporate the Cleco Corporation
Deferred Compensation Plan for Directors, as amended and restated, effective
April 24, 1998, and that certain deferred compensation agreement between the
Company and Gregory L. Nesbitt, dated December 27, 1999.

                                   ARTICLE I
                                    PURPOSE

     The Plan is intended to be an unfunded deferred compensation arrangement
for the benefit of certain directors and key management employees of Cleco
Corporation and its subsidiaries or affiliates, within the meaning of the
Employee Retirement Income Security Act of 1974, as amended ("ERISA").  As such,
this Plan is not intended to constitute an employee benefit plan under ERISA,
which is subject to the provisions of Parts 2, 3 and 4 of Title I of ERISA.  In
accordance with such intent, any obligation of the Company to pay benefits
hereunder shall be deemed to be an unsecured promise, and any right of a
Participant or Beneficiary to enforce such obligation shall be solely as a
general creditor of the Company.  The Plan is not intended to constitute a
qualified employee benefit plan within the meaning of Section 401(a) of the
Internal Revenue Code of 1986, as amended (the "CODE").

                                  ARTICLE II
                                  DEFINITIONS

     2.1  ACCOUNTS or ACCOUNT means the aggregate of a Participant's Deferred
Benefit Account, Directors' Predecessor Account and/or Nesbitt Deferred Benefit
Account, as the case may be.

     2.2  AFFILIATE means any corporation or other form of entity of which the
Company owns, directly or indirectly, 50% or more of the total combined voting
power of all classes of stock or other equity interests, provided that such
entity is designated by the Committee as a participating entity hereunder.  The
initial Affiliates designated as participating entities hereunder are set forth
on Exhibit A hereto.

     2.3  BENEFICIARY means the person, persons, entity or entities designated
by a Participant to receive death benefits hereunder.

     2.4  BENEFIT COMMENCEMENT DATE means the date on which the payment of a
Participant's retirement benefit is paid or first commences.  Such date shall be
designated by each Participant on Schedule A hereto.

     2.5  BOARD or BOARD OF DIRECTORS means the Board of Directors of the
Company.
<PAGE>

     2.6   BONUS means an amount payable to a Participant as an annual cash
bonus under a separate plan, policy or program maintained by the Company or an
Affiliate, including, but not limited to, the Annual Incentive Compensation
Plan, provided such plan, policy or program is designated by the Committee as a
source for deferrals hereunder.

     2.7   BUSINESS TRANSACTION means and shall be deemed to occur in accordance
with Section 12.6 of the Cleco Corporation 2000 Long-Term Incentive Compensation
Plan, as amended from time to time.

     2.8   CHANGE IN CONTROL means and shall be deemed to occur in accordance
with Section 2.4 of the Cleco Corporation 2000 Long-Term Incentive Compensation
Plan, as amended from time to time.

     2.9   COMMITTEE means the members of the Compensation Committee of the
Board of Directors of the Company.

     2.10  COMPANY CONTRIBUTIONS means the amount credited to a Participant's
Deferred Benefit Account, if any, in accordance with Section 5.1 hereof.

     2.11  COMPANY STOCK means $2.00 par value voting common stock issued by the
Company.

     2.12  COMPENSATION means the base salary paid by the Company or an
Affiliate to a Participant for services rendered during a calendar year, but
determined before reduction for compensation deferred pursuant to this Plan or
any other plan maintained by the Company or an Affiliate. For this purpose, (a)
COMPENSATION shall not include the amount of any long-term disability benefit or
any form of retirement or deferred compensation payment distributed from a plan
or arrangement sponsored by the Company, and (b) COMPENSATION may include such
additional items of remuneration as may be designated by the Committee, from
time to time.

     2.13   DEFERRED BENEFIT ACCOUNT means an account maintained on the books of
the Company with respect to each Participant hereunder.

     2.14   DETERMINATION DATE means the Annual Determination Date and such
other dates as may be designated, from time to time, by the Committee. ANNUAL
DETERMINATION DATE means the last day of the Plan Year. The designation of such
Determination Dates need not be uniform as to all Deferred Benefit Accounts
maintained hereunder.

     2.15   DISABLED or DISABILITY means that an Employee is actually receiving
benefits under the Company's (or an Affiliate's) separate long-term disability
plan or that an Eligible Director would be receiving benefits under such plan,
if such director were a participant therein.  The Committee shall determine
whether a Participant or Eligible Director is or becomes Disabled.

                                       2
<PAGE>

     2.16  DIRECTORS' PREDECESSOR PLAN means the Cleco Corporation Deferred
Compensation Plan for Directors, most recently amended and restated effective as
of April 24, 1998.

     2.17  ELIGIBLE DIRECTOR means an individual, other than an employee, who
serves as a member of the Board of Directors of the Company or the board of
directors or managers of an Affiliate, provided that such Affiliate is
designated by the Committee as a participating Affiliate hereunder.

     2.18  FEES means the annual compensation paid by the Company or an
Affiliate to each Eligible Director for his or her service as a member of the
Board of Directors (or the board of directors or managers of an Affiliate) and
for service on certain committees thereof, whether paid in the form of cash or
Company Stock.

     2.19  FINANCIAL HARDSHIP means the occurrence of a severe financial
hardship resulting from extraordinary and unforeseeable circumstances beyond the
control of a Participant.

     2.20  OPTION GAIN means gain realized on the exercise of a nonqualified
option granted under the Cleco Corporation 2000 Long-Term Incentive Compensation
Plan and/or the 1990 Long-Term Incentive Compensation Plan, most recently
amended and restated as of April 24, 1998, as the same may be further amended
from time to time, or such other incentive compensation granted under such
plans, when designated by the Committee.

     2.21  PARTICIPANT means an executive officer, manager or other key employee
of the Company or an Eligible Director, each of whom is designated in accordance
with Article III hereof.

     2.22  PLAN means this Deferred Compensation Plan, as amended from time to
time.

     2.23  PLAN YEAR means the 12-month period beginning each January 1st and
ending each December 31st; provided, however, that the first Plan Year shall be
a five-month period commencing as of August 1, 2000, and ending as of December
31, 2000.

     2.24  401(k) SAVINGS AND INVESTMENT PLAN means a qualified employee benefit
plan maintained by Cleco Utility Group Inc., most recently amended and restated
in its entirety as of January 1, 1994, as the same may be further amended and/or
restated from time to time.  The terms "PRE-TAX CONTRIBUTION" and "MATCHING
CONTRIBUTION" shall have the meanings ascribed to them in such plan.

     2.25  SCHEDULE A means one or more written schedules which provide for (a)
the deferral of a Participant's Compensation, Bonus or Excess 401(k)
Contributions or Fees payable to an Eligible Director, (b) the designation of a
Benefit Commencement Date, and/or (c) the election of the form of benefit
payment.  The terms of any such Schedule A are incorporated in this Plan by this
reference.

                                       3
<PAGE>

     2.26  SHORT TERM DEFERRAL means the deferral of a Participant's
Compensation, Bonus or Fees for a designated period of not less than 24 months,
measured from the last day of the Plan Year with respect to which such
Compensation, Bonus or Fees is payable.

     2.27  OTHER DEFINITIONS.  The following terms shall have the meanings
ascribed below: "ADVERSE DETERMINATION" is defined in Section 9.4 hereof;
"CAUSE" is defined in Section 9.3 hereof; "EXCESS 401(K) CONTRIBUTIONS" is
defined in Section 4.2 hereof; "MATCHING CONTRIBUTIONS" is defined in Section
5.2 hereof; "DIRECTORS' PREDECESSOR BENEFIT ACCOUNT" and "NESBITT DEFERRED
BENEFIT ACCOUNT" are defined in Section 6.1 hereof.

                                  ARTICLE III
                         ELIGIBILITY AND PARTICIPATION

     Participants hereunder shall be (a) those persons listed on Exhibit A
hereto, (b) Eligible Directors of the Company, (c) executive officers, managers
and other key employees of the Company or an Affiliate, who may be designated
individually or by groups or categories, in the discretion of the Committee, and
(d) Eligible Directors of an Affiliate, provided the Committee has designated
such Affiliate as a participating Affiliate hereunder.  The Committee shall
notify each executive officer, manager or other key employee or Eligible
Director of his or her eligibility to participate in this Plan.  Except as to
those persons listed on Exhibit B hereto, participation shall commence upon the
execution of a Schedule A or similar agreement as provided herein.

                                  ARTICLE IV
                                   DEFERRALS

     4.1  DEFERRAL OF COMPENSATION, BONUS OR FEES. A Participant shall elect to
defer his or her Compensation, Bonus or Fees, as the case may be:

     a.   During the 30-day period immediately following receipt of initial
          notice from the Committee in accordance with Article III hereof, such
          election shall be effective with respect to Compensation, Bonus, or
          Fees payable with respect to services performed after such election is
          received and accepted by the Committee;

     b.   At least 30 days prior to the first day of each Plan Year (or such
          shorter period permitted by the Committee); such election shall be
          effective with respect to Compensation, Bonus or Fees payable for
          services rendered during such Plan Year; or

     c.   During the 30-day period immediately following the Effective Date with
          respect to the initial Plan Year; such election shall be effective
          with respect to Compensation or Fees payable with respect to services
          performed after such election is received and accepted by the
          Committee and with respect to any Bonus payable for service performed
          during such initial Plan Year.

                                       4
<PAGE>

An election to defer Compensation, Bonus or Fees hereunder shall be made, in
writing, and shall be irrevocable during the Plan Year with respect to which the
election relates or such longer period as may be designated by the Committee.
An election hereunder shall remain in effect until it is revoked or modified,
except as to the first Plan Year or Option Gain.

     The Committee, in its discretion, may limit the amount of Compensation,
Bonus or Fees subject to deferral hereunder, may prescribe a minimum deferral
amount, may designate additional forms of remuneration for deferral under the
Plan, may provide for the administration of multiple Benefit Commencement Dates
with respect to deferrals hereunder or adopt such additional procedures as the
Committee deems necessary or appropriate.  The Committee shall notify all
affected Participants, in writing, of any such limitations or additional forms
of Compensation eligible for deferral.  Any such procedures, conditions,
limitations or designations shall be effective as of the January 1st which
coincides with or immediately follows the date on which notice is provided to
each Participant hereunder or at such other time as the Committee may designate.

     4.2  DEFERRAL OF EXCESS 401(k) CONTRIBUTIONS. Effective as of January 1,
2001, or such later date as may be designated by the Committee, the Company
shall defer certain amounts contributed hereunder, pending contribution to the
401(k) Savings and Investment Plan ("EXCESS 401(k) CONTRIBUTIONS"), as set forth
below:

     a.   Prior to the first day of each Plan Year, each Participant who is also
          a participant in the 401(k) Savings and Investment Plan may designate
          on a written deferral election applicable to the 401(k) Savings and
          Investment Plan the maximum amount to be contributed as a Pre-Tax
          Contribution thereunder and elect to make an Excess 401(k)
          Contribution to this Plan on Schedule A hereto.  Both such elections
          shall be irrevocable with respect to such Plan Year.

     b.   During each Plan Year, Excess 401(k) Contributions shall be
          provisionally credited to such Participant's Deferred Benefit Account.

     c.   The Committee may direct that a Matching Contribution be provisionally
          credited to such Participant's Deferred Benefit Account, the amount of
          such contribution to be determined in accordance with the terms of the
          401(k) Savings and Investment Plan and the Participant's elections and
          contributions thereunder.

     d.   As of the end of each Plan Year, the Committee shall determine the
          principal amount of such provisional contributions to be remitted to
          the trustee of the 401(k) Savings and Investment Plan as a Pre-Tax
          Contribution thereunder (including the related Matching Contribution,
          if any) and the amount to be finally characterized as an Excess 401(k)
          Contribution hereunder (including the related Matching Contributions,
          if any).  Such remission shall be made not later than March 15th of
          the Plan Year immediately succeeding the Plan Year in which such
          contributions were made to this Plan.

                                       5
<PAGE>

     4.3  DEFERRAL OF OPTION GAIN.   Effective as of January 1, 2001, or such
later date as may be designated by the Committee, a Participant may elect to
defer Option Gain, subject to the approval of the Committee, as follows:

     a.   A Participant shall provide a written election to the Committee, which
          election shall (i) direct the deferral of Option Gain, (ii) designate
          a specific number of options with a designated option price to be
          subject to such deferral, and (iii) specify an exercise date.  The
          terms of such election shall be irrevocable and shall be received and
          accepted by the Committee not later than six months prior to the
          designated exercise date.

     b.   As of the exercise date, the affected Participant shall exercise the
          number and kind of options designated in his or her election.

     c.   In lieu of the delivery of shares of Common Stock to the Participant
          as of the exercise date, Option Gain shall be credited to the affected
          Participant's Deferred Benefit Account as of such date.

     4.4  SHORT TERM DEFERRALS.  A Participant may designate all or a portion of
any Compensation, Bonus or Fee deferred hereunder as a Short Term Deferral,
subject to the following rules:

     a.   A Participant's designation of Compensation, Bonus or Fee defined
          hereunder as a Short Term Deferral shall be irrevocable; and

     b.   A Participant shall designate the deferral period with respect to such
          amount on Schedule A hereto, which period shall not be less than 24
          months, measured from the last day of the Plan Year with respect to
          the initial year in which Compensation, Bonus or Fees is otherwise
          payable; the designation of such deferral period shall be irrevocable.

                                   ARTICLE V
                             COMPANY CONTRIBUTIONS

     5.1  COMPANY CONTRIBUTIONS.  The Committee, in its sole discretion, may
credit an additional amount to the Deferred Benefit Account of any Participant
hereunder.  Any such contribution need not be uniform with respect to all
Participants, but may be made with respect to any Participant or group of
Participants designated by the Committee.

     5.2  MATCHING CONTRIBUTIONS.  The Company shall credit to the Deferred
Benefit Account of any affected Participant hereunder the amount of any Matching
Contribution attributable to an Excess 401(k) Contribution hereunder, determined
as if such amount was made as a Pre-Tax Contribution under the 401(k) Savings
and Investment Plan (a "MATCHING CONTRIBUTION").  Any such contribution shall be
treated as a provisional contribution and may be transferred to the 401(k)
Savings and Investment Plan in accordance with Section 4.2 hereof.

                                       6
<PAGE>

     5.3  VESTING.  The Committee, in its discretion, may establish a vesting
schedule with respect to any Company Contribution hereunder (including earnings,
gains or losses credited to such amount) and may impose a vesting schedule with
respect to any Matching Contribution hereunder in accordance with the terms of
the 401(k) Savings and Investment Plan.  The Committee shall provide written
notice of any such schedule to each affected Participant; any such schedule need
not be uniform with respect to all Participants or each Company Contribution
hereunder.

                                  ARTICLE VI
            MAINTENANCE AND INVESTMENT OF DEFERRED BENEFIT ACCOUNTS

     6.1  ESTABLISHMENT OF ACCOUNTS.   The Company shall establish and maintain
one or more of the following accounts for the benefit of each Participant
hereunder:

     a.   A "DEFERRED BENEFIT ACCOUNT," which shall be credited with a
          Participant's Compensation, Bonus or Fees deferred hereunder and
          Matching Contributions or Company Contributions made hereunder. A
          Deferred Benefit Account may be administered as one or more
          subaccounts to facilitate (i) the maintenance of any vesting schedule
          imposed hereunder, (ii) the administration of Short Term Deferrals,
          (iii) a particular method of crediting income, gain or losses, or (iv)
          for such other purpose as the Committee may deem necessary or
          appropriate;

     b.   A "DIRECTORS' PREDECESSOR ACCOUNT," which shall be credited with each
          Eligible Director's balance in the Directors' Predecessor Plan,
          determined as of the Effective Date (or such later date designated by
          the Committee).  No additional deferrals shall be credited to such
          account; and/or

     c.   The "NESBITT DEFERRED BENEFIT ACCOUNT," which shall be credited with
          amounts deferred under that deferred compensation agreement between
          the Company and Gregory L. Nesbitt as of the Effective Date.  No
          additional deferrals shall be credited to such account. Creation of
          the Nesbitt Deferred Benefit Account hereunder shall be deemed to
          extinguish the Company's obligation under the separate deferred
          compensation agreement between Gregory L. Nesbitt and the Company,
          dated December 27, 1999.

     6.2  STATUS OF ACCOUNTS.  Accounts established hereunder shall be a
bookkeeping entry only.  The establishment and maintenance of any such account
shall not be deemed to create a trust or other form of fiduciary relationship
between the Company (or an Affiliate) and any Participant or Beneficiary or
otherwise create, for the benefit of any Participant or Beneficiary, an
ownership interest in or expectation of any specific asset of the Company (or of
an Affiliate).

     6.3  INVESTMENT POLICY.  Except as provided in Sections 6.4, 6.5 and 6.6
hereof, the Committee shall establish an investment policy with respect to
amounts credited to Accounts maintained hereunder.  Such policy may provide for
the aggregation and investment of all Accounts, for the investment of such
accounts in accordance with the specifications of each

                                       7
<PAGE>

Participant or for a combination thereof. Such determination shall be made in
the sole discretion of the Committee and need not be uniform as to all Accounts
maintained hereunder.

     If the Committee determines that the Accounts shall be aggregated for
investment purposes, the Committee, in its discretion, shall direct the manner
in which gain or loss is determined hereunder.

     If the Committee permits Participants to provide investment specifications
with respect to Accounts hereunder, such specifications shall be deemed to be
advisory only and shall not bind the Company, an Affiliate or the Committee to
acquire any specific property or to invest the assets of any trust established
in connection with this Plan in accordance therewith. Such specifications shall
relate to investment in the types of property, including open or closed end
mutual funds, common or collective funds or other pooled or collective accounts,
as may be designated, from time to time, by the Committee (or its designee).
The Committee (or its designee) shall adopt rules governing investment
specifications hereunder, including, without limitation (a) the increments in
which such specifications shall be expressed, (b) the times at which changes can
be made, (c) distinctions between the investment of prospective contributions
and existing account balances, and (d) such other procedures as the Committee
may determine are necessary or appropriate.  Such rules need not be uniform as
to all Participants and may be expressed in the form of written procedures or
informally, as administrative practices.

     If a Participant ceases to be an employee or Eligible Director of the
Company or an Affiliate for any reason, the Committee, in its sole discretion,
may direct that gain or loss credited to such Participant's Accounts be
determined with respect to one or more investments designated by the Committee
or may permit such Participant or Beneficiary to continue to specify the
investments in which his or her Accounts are deemed to be invested.  Such
determination shall be made in the sole discretion of the Committee and need not
be uniform as to all Participants.

     6.4  DEFERRAL OF FEES.  Notwithstanding any provision of this Plan to the
contrary, if an Eligible Director elects to receive his or her Fees in the form
of Company Stock or his or her Fees deferred under the Directors' Predecessor
Plan were deferred in the form of Company Stock, then the Committee may direct
that earnings, gains or losses attributable to such Fees shall be determined as
if such deferrals remained invested in Company Stock at all times during the
deferral period.

     6.5  OPTION GAIN.  Notwithstanding any provision of this Plan to the
contrary, if a Participant elects to defer Option Gain hereunder, the Committee
may direct that earnings, gains or losses attributable to such Option Gain shall
be determined as if such deferral remained invested in Company Stock at all
times during the deferral period.

     6.6  MATCHING CONTRIBUTIONS.  Notwithstanding any provision of this Plan to
the contrary, if all or any portion of a Participant's Deferred Benefit Account
consists of Matching Contributions, the Committee may direct that earnings,
gains or losses attributable to such portion shall be determined as if such
portion remained invested in Company Stock.

                                       8
<PAGE>

     6.7  ACCOUNTING.  As of each Determination Date, a Participant's Accounts
shall be adjusted as follows:

     a.   There shall be credited to each Deferred Benefit Account the amount of
          any Compensation, Bonus, Excess 401(k) Contributions (including
          provisional contributions) deferred not later than 30 days following
          the applicable payment date.

     b.   Any Matching Contributions (including provisional contributions) or
          Company Contributions since the immediately preceding Determination
          Date shall be credited to each affected Participant's Deferred Benefit
          Account.

     c.   Interest, gain or loss, including, without limitation, dividend
          equivalent units, shall be credited (or charged) to the Participant's
          Accounts for the period since the immediately preceding Determination
          Date.

     d.   The Participant's accounts shall be reduced by any payment or other
          form of distribution or transfer (including the transfer of
          provisional contributions) made since the immediately preceding
          Determination Date.

     6.8  VALUATION NOTICE.  At least as frequently as each Annual Determination
Date, the Committee shall furnish each Participant with a valuation notice which
includes the amounts credited to the Participant's Accounts and the earnings,
gains or losses allocated to such Accounts since the immediately preceding
Determination Date.

     6.9  NO RIGHTS AS A SHAREHOLDER.  Prior to the distribution of Company
Stock hereunder, a Participant shall have no rights as a shareholder with
respect to amounts deemed invested in such stock.

                                  ARTICLE VII
                              RETIREMENT BENEFITS

     7.1  FORM OF RETIREMENT BENEFIT.  A retirement benefit shall be payable in
accordance with the Participant's election on Schedule A in the form of:

     a.   Substantially equal annual installment payments for a period
          designated by such Participant, but not in excess of 15 consecutive
          years; or

     b.   A single-sum payment.

If no election is received by the Committee or if a Participant's election
cannot be administered, such Participant's retirement benefit shall be
distributed in five substantially equal annual installment payments.

                                       9
<PAGE>

     7.2  AMOUNT OF RETIREMENT BENEFITS.  The amount of a Participant's
retirement benefit hereunder shall equal the amount credited to such
Participant's Accounts, determined in accordance with the following rules:

     a.   If such benefit is paid in the form of a single-sum, such benefit
          shall equal the amount credited to such Participant's Accounts as of
          the Determination Date that corresponds to or immediately follows such
          Participant's Benefit Commencement Date.  If a Participant has elected
          to defer his or her Bonus with respect to the year in which his or her
          Benefit Commencement Date occurs, the amount of such Bonus shall be
          paid in the form of a single-sum as of the Determination Date that
          coincides with or immediately follows the date on which the Bonus is
          credited to the Participant's Deferred Benefit Account hereunder.

     b.   If such benefit is paid in the form of installments, the amount of
          each annual installment shall equal the value of the Participant's
          Accounts as of the Annual Determination Date that coincides with or
          immediately precedes the payment date multiplied by a fraction (i) the
          numerator of which is one, and (ii) the denominator of which is the
          number of annual installments remaining to be paid pursuant to the
          Participant's election.  During the installment period, the
          Participant's Accounts shall be credited with income, gain or loss in
          accordance with the provisions of Article VI hereof.  To facilitate
          installment distributions hereunder, each Participant's investments
          (if any) shall be deemed liquidated on a pro rata basis, unless the
          Committee provides otherwise.

     7.3  TIME OF PAYMENT.  A Participant's retirement benefit shall be payable
(or payments shall commence) as of the first day of the second calendar month
immediately following such Participant's Benefit Commencement Date.  If a
Participant's retirement benefit is payable in the form of annual installments,
each remaining installment shall be paid as of February 1st.

     7.4  CASH OUT OF SMALL BENEFITS.  If the value of a Participant's Accounts
is $25,000 or less as of the date on which his or her employment with the
Company and all Affiliates ceases or as of his or her Benefit Commencement Date,
then notwithstanding any provision of this Plan to the contrary, the Committee
shall distribute such amount to the Participant in the form of an immediate
single-sum payment as of such date.  No additional benefit shall be payable with
respect to such Accounts.

     7.5  MODIFICATION OF SCHEDULE A.  The portion of each Schedule A as to the
time and manner of payment shall be deemed to apply to the aggregate amount
credited to a Participant's Accounts, from time to time.  A Participant shall be
entitled to modify his or her Schedule A, from time to time, with respect to the
time or manner of payment thereunder; provided, however, that any such
modification shall be effective only if received and accepted by the Committee
at least 18 months prior to his or her termination of employment with the
Company and all Affiliates or 18 months prior to his or her Benefit Commencement
Date, if earlier.

                                       10
<PAGE>

     7.6  MANNER OF PAYMENT.  If the Committee directs that a Participant's
deferrals hereunder shall be deemed invested in Company Stock in accordance with
the provisions of Section 6.4 or 6.5 hereof, then any distribution with respect
to such deferrals shall be made in the form of Company Stock, with cash
distributed in lieu of a fractional share.

                                 ARTICLE VIII
                                DEATH BENEFITS

     8.1  BENEFICIARY DESIGNATION.  A Participant shall be entitled to designate
one or more Beneficiaries on forms provided by the Committee.   Any such
designation may be modified by delivery of a new designation to the Committee.
Any designation or modification shall be effective upon its receipt and
acceptance by the Committee.  If a Participant fails to designate a Beneficiary
or if a Participant's designation cannot be administered, the Participant's
estate shall be deemed his or her Beneficiary hereunder.

     8.2  PARTICIPANT'S DEATH BEFORE BENEFIT COMMENCEMENT DATE.  If a
Participant dies before his or her Benefit Commencement Date, the Participant's
Beneficiary shall be paid a death benefit in the form of five substantially
equal installment payments, commencing as soon as practicable after the date of
the Participant's death.  The amount of each annual installment shall equal the
value of the deceased Participant's Accounts as of the Annual Determination Date
immediately preceding payment, multiplied by a fraction (a) the numerator of
which is one, and (b) the denominator of which is the number of annual
installments remaining to be paid.  During the installment period, the deceased
Participant's Accounts shall be credited with income, gain or loss in accordance
with the provisions of Article VI hereof.  To facilitate payment hereunder, such
Beneficiary's individual investments (if any) shall be deemed liquidated on a
pro rata basis, unless the Committee provides otherwise.

     8.3  PARTICIPANT'S DEATH AFTER BENEFIT COMMENCEMENT DATE.  If a
Participant dies after his or her Benefit Commencement Date, the Company shall
pay to the Participant's Beneficiary the remaining benefit, if any, that would
otherwise be payable to the deceased Participant, determined in accordance with
the terms of his or her Schedule A.

     8.4  DEATH OF BENEFICIARY.  In the event of the death of a Beneficiary, the
remaining benefit to which such Beneficiary was entitled at the time of such
Beneficiary's death, if any, shall be payable to the beneficiary or
beneficiaries designated in writing, by such Beneficiary on a form submitted by
such Beneficiary to the Committee (or such benefits shall be payable to the
Beneficiary's estate if the Beneficiary fails to designate a beneficiary or
beneficiaries).

     8.5  DISCRETIONARY DEATH BENEFIT.  The Committee, in its discretion, may
increase the amount of any death benefit payable in accordance with Section 8.2
or 8.3 hereof.  Such increase, if any, shall be aggregated with amounts
otherwise credited to the deceased Participant's Accounts and shall be payable
in accordance with Section 8.2 or 8.3, as the case may be.  The amount of any
such increase need not be uniform as to all Participants hereunder.

     8.6  SINGLE-SUM PAYMENT.  If the value of a death benefit payable hereunder
is $25,000 or less, then notwithstanding any provision of this Plan to the
contrary, the Committee

                                       11
<PAGE>

shall distribute such amount to the Participant's Beneficiary or Beneficiaries
in the form of a single-sum payment, and no additional benefit shall be payable
under this Plan with respect to such Participant.

     8.7  MANNER OF PAYMENT.  If the Committee directs that an amount deferred
hereunder be deemed invested in Company Stock during the period of such deferral
in accordance with Section 6.4 or 6.5 hereof, amounts distributable with respect
to such deferral shall be paid in the form of Company Stock, with cash
distributed in lieu of a fractional share.

                                  ARTICLE IX
                        SHORT TERM DEFERRALS; HARDSHIP
                       WITHDRAWALS; OTHER DISTRIBUTIONS

     9.1  SHORT TERM DEFERRALS.   Notwithstanding any provision of this Plan to
the contrary, the amount of a Participant's Short Term Deferral (as adjusted for
income, gain or loss) shall be distributed in the form of a single-sum payment
as of the Determination Date that coincides with or immediately follows the
Annual Distribution Date designated by such Participant on his or her Schedule
A.

     9.2  HARDSHIP WITHDRAWAL.  If a Participant experiences a Financial
Hardship, such Participant may request the Committee to approve the withdrawal
of all or a portion of his or her Accounts in the form of an immediate single-
sum payment, subject to the limitations set forth below.

     a.   A request for withdrawal shall be made, in writing, and shall set
          forth the circumstances surrounding the Financial Hardship.  As a
          condition of and part of such request, the Participant shall provide
          to the Committee his or her written representation that (i) the
          hardship cannot be relieved by insurance or other reimbursement
          reasonably available to the Participant, (ii) the hardship can only be
          relieved by liquidation of the Participant's assets and any such
          liquidation would itself result in severe damage or injury to the
          Participant, and (iii) the Participant has no reasonable borrowing
          capacity to relieve the hardship.  The Committee shall be entitled to
          request such additional information as may be reasonably required to
          determine whether a Financial Hardship exists and the amount of the
          hardship and to establish additional conditions precedent to the
          review or granting of a request for a withdrawal on account of a
          Financial Hardship.

     b.   If the Committee determines that a Financial Hardship exists, the
          Committee may authorize the immediate distribution of an amount
          required to meet the financial need created by such hardship,
          including any taxes payable on account of such distribution.

     c.   The amount of a withdrawal on account of a Financial Hardship shall
          reduce the amount credited to a Participant's Accounts, and the
          Participant's Accounts shall be reduced by an additional amount equal
          to 10% of the amount withdrawn.

                                       12
<PAGE>

     d.   The Committee shall require, as a condition of any withdrawal on
          account of a Financial Hardship, the termination of any deferral
          election as to any Compensation with respect to which services have
          not yet been performed.  In no event shall the affected Participant be
          entitled to enter into a new Schedule A until the January 1st
          immediately following the year in which such cessation of a deferral
          occurs.

     e.   The Committee shall establish such additional rules as may be
          reasonably required to administer the withdrawal of amounts under this
          Section 9.2.  Such rules may include, but shall not be limited to, the
          imposition of additional conditions precedent to the withdrawal, the
          determination of the amount of any benefit reduction, and the
          disposition of any terminated deferral election under Section 9.2d,
          hereof.  The determination by the Committee as to all matters
          pertaining to a Financial Hardship shall be final and binding upon all
          affected Participants and Beneficiaries.

     9.3  BENEFITS PAYABLE ON TERMINATION FOR CAUSE.  Notwithstanding any other
provision of this Plan to the contrary, if a Participant's employment with the
Company or any Affiliate is terminated for Cause before his or her Benefit
Commence Date, the Participant's participation in this Plan shall be terminated
and the Participant shall not be entitled to any form of benefit hereunder;
provided, however, that the Participant (or the Participant's Beneficiary) shall
be paid the principal amount of such Participant's Compensation, Bonus, or Fees
deferred hereunder (but not Matching Contributions, Company Contributions or the
earnings or losses thereon), as soon as practicable after such termination.

     For purposes of this Section 9.3, the term "CAUSE" means that a Participant
has:

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

     b.   Committed intentional damage to the property of the Company (or an
          Affiliate) or committed intentional wrongful disclosure of
          confidential information which is materially injurious to the
          Company's (or an Affiliate's) financial condition or business
          reputation; or

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

No act or failure to act on the part of the Participant will be deemed
"intentional" if it was due primarily to an error in judgment or negligence, but
will be deemed "intentional" only if done or omitted to be done by a Participant
not in good faith and without reasonable belief that his or her action or
omission was in the best interest of the Company (or an Affiliate).  The
Committee (or its designee) shall determine whether Cause has occurred
hereunder.

                                       13
<PAGE>

     9.4  EARLY PAYMENTS.  Notwithstanding any provision of this Plan to the
contrary, the Committee may direct the distribution to any Participant (or
Beneficiary) in the form of an immediate single-sum payment all or any portion
of the amount then credited to a Participant's affected Deferred Benefit
Account, if an Adverse Determination is made with respect to such Participant.
For this purpose, the term "ADVERSE DETERMINATION" shall mean that, based upon
Federal tax or revenue law, a published or private ruling or similar
announcement issued by the Internal Revenue Service, a regulation issued by the
Secretary of the Treasury, a decision by a court of competent jurisdiction, a
closing agreement made under Section 7121 of the Code that is approved by the
Internal Revenue Service and involves such Participant or a determination of
counsel, a Participant has or will recognize income for Federal income tax
purposes with respect to any amount that is or will be payable under this Plan
before it is otherwise to be paid hereunder.

     Further, notwithstanding any provision of the Plan to the contrary, the
Committee may direct the trustee of any trust established pursuant to Section
12.2 hereof to distribute to any Participant in the form of an immediate single-
sum payment all or any portion of the amount then credited to a Participant's
Deferred Benefit Account based upon a change in ERISA, a published advisory
opinion or similar announcement issued by the Department of Labor, a regulation
issued by the Secretary of Labor, a decision by a court of competent
jurisdiction, an agreement between such Participant and the Department of Labor
or similar agency or an opinion of counsel, such Participant is not a
"management" or "highly compensated" employee or this Plan is not an "unfunded"
plan within the meaning of ERISA.

     9.5  CHANGE IN CONTROL; BUSINESS TRANSACTION.  Notwithstanding any
provision of this Plan to the contrary, upon the occurrence of a Change in
Control or a Business Transaction, the Committee shall provide each affected
Participant with written notice of the occurrence of such change or transaction.
Each affected Participant may request distribution of all or a portion of his or
her Accounts by providing written notice to the Committee, within 30 days of
receipt of notice of such event, which notice shall designate the amount to be
withdrawn; any such withdrawal shall be subject to the following rules and
limitations:

     a.   Such withdrawal shall be made not later than 30 days after notice is
          received by the Committee;

     b.   No more than one such withdrawal shall be permitted hereunder; and

     c.   At the time of such withdrawal, the Participant's Accounts shall be
          reduced by an additional amount equal to 10% of the withdrawal.

     9.6  DISABILITY.  If a Participant becomes Disabled, he or she shall be
entitled to request the withdrawal of all or a designated portion of his or her
Accounts by providing written notice to the Committee at any time after such
Disability commences.  The Committee shall distribute the affected portion of
such Participant's Accounts as soon as practicable after receipt of written
notice, subject to the following rules and limitations:

     a.   No more than two such withdrawals shall be permitted hereunder; and

                                       14
<PAGE>

     b.   At the time of each such withdrawal, the affected Participant's
          Accounts shall be reduced by an amount equal to 10% of the
          distribution.

                                   ARTICLE X
                              PLAN ADMINISTRATION

     10.1 POWERS.  This Plan and all matters related thereto shall be
administered by the Committee.  The Committee shall have the power and authority
to interpret the provisions of this Plan and shall determine all questions
arising under the Plan including, without limitation, all questions concerning
administration, eligibility, the determination of benefits hereunder, and the
interpretation of any form or other document related to this Plan.  In addition,
the Committee shall have the authority to prescribe, amend and rescind rules and
administrative procedures relating to the operation of this Plan, to instruct
any trustee as to the investment of any asset held for the purposes described in
Section 12.2, hereof, and to correct any defect, supply any omission or
reconcile any inconsistency in this Plan.

     Any determination by the Committee need not be uniform as to all or any
Participant hereunder.  Any such determination shall be conclusive and binding
on all persons.  The Committee shall engage the services of such independent
actuaries, accountants, attorneys and other administrative personnel as it deems
necessary to administer the Plan.

     10.2 PAYMENTS.  The Committee shall have the power and authority to
determine the time and amount of any distribution or withdrawal hereunder.  The
Committee shall direct the trustee of any trust established pursuant to Section
12.2, hereof, in writing, as to any such distribution or withdrawal.

     10.3 DELEGATION OF ADMINISTRATIVE AUTHORITY.  The Committee, in its sole
discretion, may delegate to the executive officers of the Company all or any
portion of the power and authority granted to it hereunder.  When acting in
accordance with such delegation (whether made orally or in writing) such
officers shall be deemed to possess the power and authority granted to the
Committee hereunder.

                                  ARTICLE XI
                             PARTICIPANTS' RIGHTS

     11.1 SPENDTHRIFT PROVISION.  Neither a Participant nor any other person
shall have any right to commute, sell, assign, transfer, pledge, anticipate,
mortgage or otherwise encumber any amount payable hereunder.  No amount payable
under this Plan shall, prior to actual payment, be subject to seizure or
sequestration for the payment of any debt, judgment, alimony or separate
maintenance owed by a Participant or any other person.  No amount payable under
this Plan shall be transferable by operation of law in the event of a
Participant's or other person's bankruptcy or insolvency.

                                       15
<PAGE>

     11.2 NO CONTINUED EMPLOYMENT.  No Participant shall have any right to
continue in the employ of the Company or an Affiliate for any period of time or
any right to continue his or her present or any other rate of compensation on
account of participation in this Plan.

     11.3 OFFSET.  If, at the time of any distribution hereunder, a Participant
or his or her Beneficiary is indebted to the Company or an Affiliate, then any
distribution to be made to the Participant, his or her Beneficiary or both, may,
at the discretion of the Committee, be reduced by the amount of such
indebtedness.

     11.4 OBLIGATION FOR BENEFIT PAYMENTS.  Notwithstanding any provision of
this Plan to the contrary, the payment of benefits under this Plan shall remain
the obligation of the Company or any such Affiliate.  In the event the Company
designates a third-party as the payor of the benefits and the assets of such
third-party are insufficient to meet the payment obligations of the Company
and/or with respect to any Participant who is an employee of an Affiliate, the
obligation of such Affiliate, the Company or Affiliate, as the case may be,
shall remain responsible for such deficiency.

     11.5 TAXES.  The Company or an Affiliate or any third-party payor shall
withhold from the payment benefits hereunder any amount required to be withheld
under applicable federal or state tax laws.

     11.6 COMPANY'S PROTECTION.  By execution of a Schedule A, each Participant
shall be deemed to have agreed to cooperate with the Company by furnishing any
and all information reasonably requested by the Committee in order to facilitate
the payment of benefits hereunder, including, without limitation, the taking of
such physical examinations as the Company or the Committee may deem necessary
and taking such other action as may reasonably be requested by the Company or
the Committee.  If a Participant refuses to cooperate, is uninsurable or is
insurable at other than standard rates, the Committee, in its sole discretion,
may determine that the Participant is ineligible to participate hereunder.  Upon
any such determination, the Participant shall be entitled to the return of the
principal amount of his or her deferrals, whether attributable to Compensation,
Bonus, Fees or Excess 401(k) Contributions.

     If insurance on the life of any Participant is obtained and such
Participant commits suicide during the two-year period beginning on the date of
his or her participation in this Plan or if a Participant hereunder makes any
material misstatement of information or nondisclosure  of medical history, the
Committee, in its sole discretion, may terminate the participation of any such
Participant hereunder.  Upon any such termination, the Participant shall be
entitled to the return of the principal amount of his or her deferrals
hereunder, whether attributable to Compensation, a Bonus, Fees or Excess 401(k)
Contributions.

                                  ARTICLE XII
                                 MISCELLANEOUS

     12.1 TERMINATION OF PLAN.  The Board of Directors shall have the right, at
any time, to terminate this Plan.  The Board shall provide written notice of
such termination to each Participant hereunder.  During the 30-day period
immediately following receipt of such notice,

                                       16
<PAGE>

each Participant shall be entitled to elect a distribution of all or a portion
of the amount then credited to his or her Accounts in the form of an immediate
single-sum payment. In the event a Participant elects a single-sum payment
hereunder, the value of his or her Accounts shall be reduced by 10% of the
amount of the payment.

     12.2 FUNDING.  The Company shall establish a trust in connection with the
adoption of this Plan.  Each year during the continuance of this Plan, the
Committee may designate amounts or property to be added to the trust on behalf
of the Company or an Affiliate.  The property comprising the assets of such
trust, including any insurance policy on the life of a Participant purchased by
such trust or contributed to such trust by the Company or an Affiliate, shall at
all times remain the property of such trust.  The trustee of such trust shall
distribute the assets comprising such trust in accordance with the provisions
and the trust agreement, all as instructed by the Committee, but in no event
shall such trustee distribute the assets of such trust to or for the benefit of
the Company or any Affiliate, except as provided in the trust agreement.

     No Participant or Beneficiary shall have the right to, or claim under or
against, any insurance policy on the life of the Participant obtained by the
Company or an Affiliate or any asset held in trust to help defray the cost
incurred in providing benefits under this Plan.  Any such policy or other
property shall be, and remain, a general, unpledged asset of the Company or an
Affiliate or the trust, as the case may be.

     12.3 INUREMENT.  This Plan shall be binding upon and shall inure to the
benefit of the Company and each Participant hereto and their respective heirs,
executors, administrators, successors and assigns.

     12.4 NO EFFECT ON OTHER BENEFITS.  Any compensation paid or benefits
provided to a Participant shall be in addition to, and not in lieu of, the
benefits provided to such Participant under this Plan.  Nothing in this Plan
shall be construed as limiting, varying or reducing the provision of any benefit
available to a Participant, such Participant's estate or Beneficiary pursuant to
any employment agreement, retirement plan, including any qualified pension or
profit-sharing plan, health, disability or life insurance plan or any other form
of agreement or arrangement between the Company and/or an Affiliate and a
Participant.

     12.5 AMENDMENT AND MODIFICATION.  The Board of Directors of the Company may
amend this Plan, in its discretion; provided, however, that any amendment
adversely affecting amounts then credited to Accounts hereunder shall be
approved by each affected Participant (or his or her Beneficiary).
Notwithstanding the foregoing, however, the consent of any Participant or
Beneficiary shall not be required if the Board of Directors reasonably
determines that an amendment is necessary to ensure that amounts credited to a
Participant's Accounts are not subject to federal income taxation until
withdrawn or distributed or to ensure that the Plan is deemed to be unfunded or
maintained for the benefit of a select group of management employees within the
meaning of ERISA.

     12.6 GOVERNING LAW.  This Plan is governed by the internal laws of the
State of Louisiana, in all respects, including matters of construction, validity
and performance.

                                       17
<PAGE>

     THIS PLAN was approved by the Board of Directors of Cleco Corporation on
July 28, 2000, to be effective as of August 1, 2000.

                                          CLECO CORPORATION

                                       18
<PAGE>

                               CLECO CORPORATION
                           DEFERRED COMPENSATION PLAN

                                   EXHIBIT A
                        INITIAL PARTICIPATING AFFILIATES

Entity                                               Federal Tax ID Number

CLE Resources, Inc.                                         51-0347558
Cleco Innovations LLC                                       pending
Cleco Midstream Resources LLC                               72-1430427
Cleco Support Group LLC                                     72-1440332
Cleco Power LLC                                             72-0244480
Acadia Power Holdings LLC                                   55-2222960
Cleco Business Development LLC                              72-1459477
Cleco Columbian LLC                                         none
Cleco ConnexUs LLC                                          72-1458889
Cleco Energy LLC                                            72-0552102
Cleco Evangeline LLC                                        72-1430430
Cleco Generation Services LLC                               72-1432536
Cleco Marketing & Trading LLC                               72-1432535
Perryville Energy Holdings LLC                              72-1483837
Utility Construction & Technology Solutions LLC             72-1401308
Acadia Power Partners LLC                                   72-0535898
Perryville Energy Partners, LLC                             pending
Sabine Texican Pipeline Company                             75-1085381
CLE Intrastate Pipeline Company, Inc.                       72-1137860
DeSoto Pipeline Company, Inc.                               75-1131148
Four Square Gas Company, Inc.                               72-1085382
Four Square Production, L.L.C.                              75-2684991
Panola Exploration, Inc.                                    75-2694481
STP Marketing, Inc.                                         72-1085380
Hudson SVD, L.L.C.                                          75-2655754
Providence Partners, L.L.C.                                 75-2703758
Rio Bravo Energy LLC                                        74-2888452
Sonora Pipeline LLC                                         76-0592044

                                       19
<PAGE>

                               CLECO CORPORATION
                           DEFERRED COMPENSATION PLAN

                                   EXHIBIT B
                              INITIAL PARTICIPANTS

     This Exhibit B is intended to form a part of the Cleco Corporation Deferred
Compensation Plan and to be deemed incorporated therein by this reference.  In
accordance with Article III of the Plan, the following persons shall be deemed
Participants in the Plan, without the necessity of further action:

     a.  Gregory L. Nesbitt; and

     b.   Any member of the Board of Directors of Cleco Utility Group Inc. who
          elected to defer his or her fees under the terms of the Cleco
          Corporation Deferred Compensation Plan for Directors.

                                       20

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