Document:

assetpurchaseagreement.htm

    
      
         

      

      
         

        
          

        

      

      
         

      

    
Exhibit
10.29

    

    

    

    

    

    

    

    

    

    

    

    ASSET
PURCHASE AGREEMENT

    

    

    AMONG

    

    

    FINDEX.COM,
INC.,

    

    

    ORG
PROFESSIONAL, LLC,

    

    

    ROBERT
BORSARI,

    

    

    AND

    

    

    JOSEPH
KOLINGER

    

    

    ________

    

    

    

    

    FEBRUARY
25, 2008

    

     

     

     

     

    
 

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    TABLE OF
CONTENTS

    

    
      	 
      	 
      	
              Page

            
	
              1.

            	
              DEFINITIONS........................................................................................................................................................................................................................................................................

            	
              1

            
	 
      	 
      	 
      
	
              2.

            	
              BASIC
      TRANSACTION..........................................................................................................................................................................................................................................................

            	
              4

            
	 
      	
              (a)           Purchase
      and Sale of
      Assets.................................................................................................................................................................................................................................................

            	
              4

            
	 
      	
              (b)           Acquired
      Assets.......................................................................................................................................................................................................................................................

            	
              4

            
	 
      	
              (c)           Liabilities..................................................................................................................................................................................................................................................................

            	
              5

            
	 
      	
              (d)           Assigned
      Contracts...................................................................................................................................................................................................................................................

            	
              5

            
	 
      	
              (e)           Purchase
      Price...........................................................................................................................................................................................................................................................

            	
              6

            
	 
      	
              (f)           The
      Closing...............................................................................................................................................................................................................................................................

            	
              6

            
	 
      	
              (g)           Deliveries
      at the
      Closing.............................................................................................................................................................................................................................................

            	
              6

            
	 
      	 
      	 
      
	
              3.

            	
              REPRESENTATIONS
      AND WARRANTIES OF THE
      SELLER.........................................................................................................................................................................................................

            	
              7

            
	 
      	
              (a)           Organization
      of
      Seller..................................................................................................................................................................................................................................................

            	
              7

            
	 
      	
              (b)           Authorization
      of
      Transaction.......................................................................................................................................................................................................................................

            	
              7

            
	 
      	
              (c)           Noncontravention......................................................................................................................................................................................................................................................

            	
              7

            
	 
      	
              (d)           Brokers’
      Fees...........................................................................................................................................................................................................................................................

            	
              8

            
	 
      	
              (e)           Title
      to Acquired
      Assets.............................................................................................................................................................................................................................................

            	
              8

            
	 
      	
              (f)           Software....................................................................................................................................................................................................................................................................

            	
              8

            
	 
      	
              (g)           Online
      Properties......................................................................................................................................................................................................................................................

            	
              8

            
	 
      	
              (h)           Inventories...............................................................................................................................................................................................................................................................

            	
              8

            
	 
      	
              (i)           Proprietary
      Rights.......................................................................................................................................................................................................................................................

            	
              8

            
	 
      	
              (j)           Non-Infringement........................................................................................................................................................................................................................................................

            	
              9

            
	 
      	
              (k)           Legal
      Compliance.......................................................................................................................................................................................................................................................

            	
              9

            
	 
      	
              (l)           Contracts..................................................................................................................................................................................................................................................................

            	
              9

            
	 
      	
              (m)           Litigation................................................................................................................................................................................................................................................................

            	
              9

            
	 
      	
              (n)           Product
      Warranty.....................................................................................................................................................................................................................................................

            	
              9

            
	 
      	
              (o)           Product
      Liability........................................................................................................................................................................................................................................................

            	
              10

            
	 
      	
              (p)           Customer
      Base..........................................................................................................................................................................................................................................................

            	
              10

            
	 
      	
              (q)           Accounts
      Receivable.................................................................................................................................................................................................................................................

            	
              10

            
	 
      	
              (r)           Investment
      in Purchaser Common
      Stock........................................................................................................................................................................................................................

            	
              10

            
	 
      	
              (s)           Disclosure................................................................................................................................................................................................................................................................

            	
              11

            
	 
      	 
      	 
      
	
              4.

            	
              REPRESENTATIONS
      AND WARRANTIES OF THE SELLER
      PRINCIPALS......................................................................................................................................................................................

            	
              11

            
	 
      	 
      	 
      
	
              5.

            	
              REPRESENTATIONS
      AND WARRANTIES OF THE
      PURCHASER.................................................................................................................................................................................................

            	
              11

            
	 
      	
              (a)           Organization
      of
      Purchaser...........................................................................................................................................................................................................................................

            	
              11

            
	 
      	
              (b)           Authorization
      of
      Transaction......................................................................................................................................................................................................................................

            	
              11

            
	 
      	
              (c)           Noncontravention.....................................................................................................................................................................................................................................................

            	
              11

            
	 
      	
              (d)           Purchaser
      Common
      Stock...........................................................................................................................................................................................................................................

            	
              11

            
	 
      	
              (e)           Brokers’
      Fees............................................................................................................................................................................................................................................................

            	
              12

            
	 
      	 
      	 
      
	
              6.

            	
              POST-CLOSING
      COVENANTS.................................................................................................................................................................................................................................................

            	
              12

            
	 
      	
              (a)           Restrictive
      Covenants................................................................................................................................................................................................................................................

            	
              12

            
	 
      	
              (b)           Sale,
      Transfer, Assignment of Purchaser Common
      Stock..................................................................................................................................................................................................

            	
              12

            
	 
      	
              (c)           Purchase
      Price Allocation
      Schedule..............................................................................................................................................................................................................................

            	
              12

            
	 
      	
              (d)           Further
      Assurances..................................................................................................................................................................................................................................................

            	
              12

            
	 
      	 
      	 
      
	
              7.

            	
              OTHER
      AGREEMENTS...........................................................................................................................................................................................................................................................

            	
              13

            

    

     

    
      
         

      

      
        i

        
          

        

      

      
         

      

    

     

    
      	 
      	
              (a)           Independent
      Sales
      Agreement.....................................................................................................................................................................................................................................

            	
              13

            
	 
      	 
      	 
      
	
              8.

            	
              INDEMNIFICATION...............................................................................................................................................................................................................................................................

            	
              13

            
	 
      	
              (a)           Indemnification
      by
      Seller.............................................................................................................................................................................................................................................

            	
              13

            
	 
      	
              (b)           Indemnification
      by Seller
      Principals...............................................................................................................................................................................................................................

            	
              13

            
	 
      	
              (c)           Indemnification
      by
      Purchaser......................................................................................................................................................................................................................................

            	
              13

            
	 
      	
              (d)           Notice
      of
      Claim..........................................................................................................................................................................................................................................................

            	
              14

            
	 
      	
              (e)           Defense....................................................................................................................................................................................................................................................................

            	
              14

            
	 
      	
              (f)           Time
      for
      Claims...........................................................................................................................................................................................................................................................

            	
              14

            
	 
      	
              (g)           Reduction
      by Insurance
      Proceeds................................................................................................................................................................................................................................

            	
              14

            
	 
      	
              (h)           Offset
      Against Purchase Money
      Note...........................................................................................................................................................................................................................

            	
              14

            
	 
      	 
      	 
      
	
              9.

            	
              MISCELLANEOUS.................................................................................................................................................................................................................................................................

            	
              15

            
	 
      	
              (a)           Press
      Releases and Public
      Announcements...................................................................................................................................................................................................................

            	
              15

            
	 
      	
              (b)           No
      Third-Party
      Beneficiaries........................................................................................................................................................................................................................................

            	
              15

            
	 
      	
              (c)           Entire
      Agreement.......................................................................................................................................................................................................................................................

            	
              15

            
	 
      	
              (d)           Succession
      and
      Assignment.......................................................................................................................................................................................................................................

            	
              15

            
	 
      	
              (e)           Counterparts............................................................................................................................................................................................................................................................

            	
              15

            
	 
      	
              (f)           Headings..................................................................................................................................................................................................................................................................

            	
              15

            
	 
      	
              (g)           Notices....................................................................................................................................................................................................................................................................

            	
              15

            
	 
      	
              (h)           Governing
      Law..........................................................................................................................................................................................................................................................

            	
              16

            
	 
      	
              (i)           Amendments
      and
      Waivers...........................................................................................................................................................................................................................................

            	
              16

            
	 
      	
              (j)           Severability................................................................................................................................................................................................................................................................

            	
              16

            
	 
      	
              (k)           Expenses..................................................................................................................................................................................................................................................................

            	
              16

            
	 
      	
              (l)           Construction.............................................................................................................................................................................................................................................................

            	
              16

            
	 
      	
              (m)           Incorporation
      of Exhibits and
      Schedules......................................................................................................................................................................................................................

            	
              17

            
	 
      	
              (n)           Arbitration...............................................................................................................................................................................................................................................................

            	
              17

            

    

    

    Exhibit A
– Form of Assignment of Intellectual Property

    Exhibit B
– Form of General Assignment, Bill of Sale and Assumption of Liabilities
Agreement

    Exhibit C
– Form of Purchase Money Note

    Exhibit D
– Form of Independent Sales Agreement

    Exhibit E
– Product Warranties

    Schedule
2(b)(i) – Description of Software

    Schedule
2(b)(viii) – Assigned Contracts

    Purchase
Price Allocation Schedule

    Disclosure
Schedule

    
      
         

      

      
        ii

        
          

        

      

      
         

      

    

    ASSET
PURCHASE AGREEMENT

    

    This Asset Purchase Agreement (together
with all Schedules and Exhibits hereto, this “Agreement”), dated as
of the 25th day of
February, 2008, by and among Findex.com, Inc., a Nevada corporation (the “Purchaser”), ORG
Professional, LLC, a California limited liability company (the “Seller”), Robert
Borsari, an individual and one of the two principals of Seller (“Borsari”), and Joseph
Kolinger, an individual and the other of the two principals of Seller (“Kolinger”)(Borsari
and Kolinger are referred to jointly hereinafter as the “Seller Principals”,
Purchaser and Seller are referred to hereinafter individually as a “Primary Party” or
jointly as the “Primary Parties”, and
Purchaser, Seller, Borsari and Kolinger are referred to hereinafter individually
as a “Party” or
collectively as the “Parties”)

    

    WHEREAS, Seller desires to sell certain
of its assets, including certain computer software and know-how related thereto,
in accordance with the terms and conditions of this Agreement;

    

    WHEREAS, Purchaser desires to purchase
such assets in accordance with the terms and provisions hereof; and

    

    WHEREAS,
Seller Principals desire to be named as the designees of certain consideration
to which Seller is otherwise entitled in connection with the contemplated asset
sale;

    

    NOW, THEREFORE, for and in
consideration of the premises and the mutual covenants, promises and agreements
hereinafter set forth, and for other good and valuable consideration set forth
hereinbelow, the Parties hereto hereby agree as follows:

    

    
      	
               
      

            	
              1.

            	
              Definitions.  As
      used throughout this Agreement, the following terms shall have the
      correspondingly ascribed meanings:

            

    

    

    “Accounts Receivable”
has the meaning set forth in Section 2(b)(vii) of
this Agreement.

    

    “Acquired Assets” has
the meaning set forth in Section 2(b) of this
Agreement.

    

    “Agreement” has the
meaning set forth in the preamble of this Agreement.

    

    “Assigned Contracts”
has the meaning set forth in Section 2(b)(viii) of
this Agreement.

    

    “Assumed Liabilities”
has the meaning set forth in Section 2(c)(i) of
this Agreement.

    

    “Basis” means any past
or present fact, situation, circumstance, status, condition, activity, practice,
plan, occurrence, event, incident, action, failure to act, or transaction that
forms or should form the basis for any specified consequence.

    

    “Borsari” has the
meaning set forth in the preamble of this Agreement.

    

    “Borsari Certificate”
has the meaning set forth in Section 2(e)(iii) of
this Agreement.

    

    “Business Line” means
the business of Seller related to developing and licensing business and
administrative forms software titles under the name FormTool, including FormTool
Professional, FormTool Deluxe, FormTool Standard, FormTool Filler and FormTool
Reader.

    

    “Cash Consideration”
has the meaning set forth in Section 2(e)(i) of this Agreement.

    

    
      
         

      

      
        1

        
          

        

      

      
         

      

       

    

    “Closing” has the
meaning set forth in Section 2(f) of this
Agreement.

    

    “Closing Date” has the
meaning set forth in Section 2(f) of this
Agreement.

    

    “Code” means the
Internal Revenue Code of 1986, as amended.

    

    “Disclosure Schedule”
has the meaning set forth in Section 3 of this
Agreement.

    

    “Distribution
Agreement” has the meaning set forth in Section 2(d)(i) of
this Agreement.

    

    “Governmental
Authority” means any federal, state, local, municipal, foreign, or other
government, or any governmental or quasi-governmental authority of any nature
(including any governmental agency, branch, department, official, or entity and
any court or other tribunal).

    

    “Indemnified Party”
has the meaning set forth in Section 8(c) of this
Agreement.

    

    “Indemnity Obligor”
has the meaning set forth in Section 8(c) of this
Agreement.

    

    “Independent Sales
Agreement” has the meaning set forth in Section 7(a) of this
Agreement.

    

    “Inventories” has the
meaning set forth in Section 2(b)(iii) of
this Agreement.

    

    “Knowledge” means
actual knowledge after reasonable investigation.

    

    “Kolinger” has the
meaning set forth in the preamble of this Agreement.

    

    “Kolinger Certificate”
has the meaning set forth in Section 2(e)(iii) of
this Agreement.

    

    “Liability/Liabilities”
means any direct or indirect, primary or secondary, liability, indebtedness,
obligation, penalty, cost or expense (including costs of investigation,
collection and defense), claim, deficiency, guaranty or endorsement of or by any
Person of any type, whether known or unknown, accrued or unaccrued, absolute or
contingent, liquidated or unliquidated, matured or unmatured, or otherwise, and
whether due or to become due.

    

    “Lien” means any lien,
mortgage, pledge, security interest, option, right of first refusal, charge,
claim or encumbrance or other restrictions of any kind or nature, except for (a)
liens for Taxes not yet due and payable and (b) liens for assessments and other
governmental charges or of landlords, carriers, warehouseman, mechanics and
material men incurred in the Ordinary Course of Business, in each case for sums
not yet due and payable or due but not delinquent.

    

    “Loss/Losses” has the
meaning set forth in Section 8(a) of this
Agreement.

    

    “Material Adverse
Effect” means, with respect to any Person, any state of facts,
development, event, circumstance, condition, occurrence or effect that,
individually or taken collectively with all other preceding facts, developments,
events, circumstances, conditions, occurrences or effects (a) is materially
adverse to the condition (financial or otherwise), business, operations or
results of such Person, or (b) impairs the ability of such Person to perform its
obligations under this Agreement.

    

    
      
         

      

      
        2

        
          

        

      

      
         

      

       

    

    “Non-Compete
Period” has the meaning set forth in Section 6(a)(ii) of
this Agreement.

    “Online Properties”
has the meaning set forth in Section 2(b)(ii) of
this Agreement.

    

    “Ordinary Course of
Business” means the ordinary course of business consistent with past
custom and practice (including with respect to quantity and
frequency).

    

    “Party” has the
meaning set forth in the preamble of this Agreement.

    

    “Person” means a
natural person or any legal, commercial or Governmental Authority, including any
corporation, general partnership, joint venture, limited partnership, limited
liability company, trust, business association, group acting in concert, or any
person acting in a representative capacity.

    

    “Primary Party” has the meaning
set forth in the preamble of this Agreement.

    

    “Proprietary Rights”
has the meaning set forth in Section 2(b)(iv) of
this Agreement.

    

    “Purchase Money Note”
has the meaning set forth in Section 2(e)(ii) of
this Agreement.

    

    “Purchase Price” has
the meaning set forth in Section 2(e) of this
Agreement.

    

    “Purchaser” has the
meaning set forth in the preamble of this Agreement.

    

    “Purchaser Common
Stock” has the meaning set forth in Section 2(e)(iii) of this
Agreement.

    

    “Retained Liabilities”
has the meaning set forth in Section 2(c)(ii) of
this Agreement.

    

    “Seller” has the
meaning set forth in the preamble of this Agreement.

    

    “Seller Principals”
has the meaning set forth in the preamble of this Agreement.

    

    “Software” has the
meaning set forth in Section 2(b)(i) of
this Agreement.

    

    “Taxes” means any
federal, state, county, local, foreign or other tax, charge, imposition or other
levy (including interest or penalties thereon) including income taxes, estimated
taxes, excise taxes, sales taxes, use taxes, gross receipts taxes, franchise
taxes, taxes on earnings and profits, employment and payroll related taxes,
property taxes, real property transfer taxes, Federal Insurance Acquisitions Act
taxes, any taxes or fees related to unclaimed property, taxes on value added and
import duties, whether or not measured in whole or in part by net income,
imposed by the United States or any political subdivision thereof or by any
jurisdiction other than the United States or any political subdivision
thereof.

    

    “Third Party Intellectual
Property Rights” has the meaning set forth in Section 3(j) of this
Agreement.

    

    
      
         

      

      
        3

        
          

        

      

      
         

      

       

    

    “Transaction
Documents” means each of this Agreement, the Assignment of Intellectual
Property, the General Assignment, Bill of Sale and Assumption of Liabilities
Agreement, the Purchase Money Note, the Independent Sales Agreement, and each
other document, instrument, and certificate delivered in connection
therewith.

    

    2.           Basic
Transaction.

    

    (a)           Purchase and Sale of
Assets. On and subject to the terms and conditions of this Agreement, at
the Closing, Purchaser agrees to purchase from Seller, and Seller agrees to
sell, transfer, convey, and deliver to Purchaser, all of the Acquired Assets for
the consideration specified below in this Section
2.

    

    (b)           Acquired Assets. The
“Acquired
Assets” shall consist of the following assets, properties and contractual
rights of Seller:

    

    (i)           Software.  All
of Seller’s copyright rights in and to the computer software and programs listed
in Schedule
2(b)(i) attached hereto (including object and source code, in machine
readable and listing form), and all documentation (including internal
documentation, documentation made available to customers, and training
materials), flowcharts, source code notes, software tools, compilers, test
routines and information related thereto, in whatever form, and all revisions,
modifications, upgrades, updates, enhancements, release levels and versions of
the foregoing (collectively, the “Software”), including
all rights to produce, create, market and sell derivative works and
modifications of the Software.

    

    (ii)           Online
Properties.  The Internet websites maintained by Seller for the
Business Line, the homepage for which is located at www.formtool.com, and
all content, design concepts, code (php, html, css, javascript and sql), text,
graphics, images, data, video, audio (including music used in time relation with
text, images, or video), URLs, navigational elements, links, pointers,
technology and software related thereto, including any modifications, upgrades,
updates, enhancements and related information or documentation (collectively,
the “Online
Properties”).

    

    (iii)           Inventories.  All
inventories related to the Business Line as of the Closing Date, including all
expendables and consumables and all advertising material, marketing material,
copy, camera-ready art, trade show booth set-ups, displays and other materials
and supplies to be used or consumed in connection with the operation of the
Business Line (collectively, the “Inventories”).

    

    (iv)           Proprietary
Rights.  All patents, patent applications, copyrights, trade
secrets, ideas, know-how, domain names, metatags, trademarks, service marks,
trade names, and other proprietary rights based, in whole or in part, or
included in, covering or related to the Business Line or any portion thereof
(collectively, the “Proprietary Rights”),
including all of Seller’s copyright rights and other Proprietary Rights in and
to the Software and the Online Properties.

    

    (v)           Trade
Names.  The name “FormTool” and all variations or derivatives
thereof, including all trademarks, service marks, trade names or logos, together
with any goodwill associated therewith.

    

    (vi)           Records.  All
designs, drawings, procedures (including design, manufacturing, test and
maintenance procedures), records, specifications, technical data, inventory
records, customer and supplier lists and records (including all prospective
customer and leads lists), pricing and cost information, and business and
marketing plans and proposals, in whatever form, related to, useful, utilizable
or necessary in connection with the operation of the Business Line.

    

    
      
         

      

      
        4

        
          

        

      

      
         

      

       

    

    (vii)           Accounts
Receivable.  All billed and unbilled notes receivable, accounts
receivable and other receivables or rights to payments due to Seller in
connection with the Business Line existing in good faith as of the Closing Date
(collectively, the “Accounts
Receivable”), including those Accounts Receivable set forth on Schedule
3(q).

    

    (viii)           Assigned
Contracts.  Subject to Section 2(d) hereof, all of the rights
of Seller arising after the Closing Date under the distribution agreements,
license agreements, and other agreements set forth on Schedule 2(b)(viii)
hereto (collectively, the “Assigned
Contracts”).

    

    (ix)           Other.  All
other assets of Seller exclusively used in or related to the Business
Line.

    

    (c)           Liabilities.

    

    (i)           Assumed
Liabilities.  Purchaser shall assume and pay or perform when
due all obligations of Seller arising after the Closing Date under the Assigned
Contracts (collectively, the “Assumed
Liabilities”), which obligations arise in accordance with the terms of
such Assigned Contracts after the Closing Date, except to the extent any such
obligations relate to a default thereunder by Seller, or an event which with
notice or lapse of time or both would constitute a default thereunder by Seller,
occurring on or prior to the Closing Date.

    

    (ii)           Retained
Liabilities.  Except for the Assumed Liabilities, Purchaser
shall not assume and Seller shall retain all liabilities or obligations directly
or indirectly arising out of or related to the Acquired Assets or the operation
of the Business Line on or prior to the Closing Date, whether such liabilities
or obligations are known or unknown, disclosed or undisclosed, matured or
unmatured, accrued, absolute or contingent (collectively, the “Retained
Liabilities”), including (A) liabilities and obligations for Taxes of any
kind, including Taxes related to or arising solely from the transfers
contemplated hereby (which transfer or sales taxes shall be the sole
responsibility of Seller); (B) liabilities and obligations for damage or injury
to person or property; (C) liabilities and obligations for or otherwise arising
out of sales of the Software or services related thereto or grants of licenses
by Seller on or prior to the Closing Date; and (D) liabilities and obligations
for payables incurred or otherwise related to the Acquired Assets or the
operation of the Business Line on or prior to the Closing
Date.  Without limiting the foregoing, Purchaser shall not assume or
become liable for any obligations or liabilities of Seller not specifically
described in Section
2(c)(i) above and specifically included in the Assumed Liabilities.
Notwithstanding anything herein to the contrary, Seller shall pay or perform all
Retained Liabilities no later than when they become due and payable or are to be
performed.

    

    (d)           Assigned
Contracts.

    

    (i)           The
Primary Parties acknowledge that the Software is currently being distributed by
Seller pursuant to the terms of a certain distribution agreement between Seller
and a certain third party (the “Distribution
Agreement”), and that the Primary parties will effect an assignment of
such Distribution Agreement in accordance with its terms.

    

    (ii)           Notwithstanding
anything herein to the contrary, the transfer of the Assigned Contracts shall be
by assignment only, and nothing in this Agreement shall be construed as an
attempt to agree to assign any rights thereunder or under any other Acquired
Asset that by law or agreement is not assignable without the consent of the
other party or parties thereto or of any Governmental Authority, as the case may
be, unless such consent shall be given. If and to the extent the assignment of
any Assigned Contract requires the consent of another Person, then: (A) such
Assigned Contract shall not be deemed assigned and shall constitute an assumed
liability of Purchaser until such consent is obtained; (B) the Primary Parties
shall use commercially reasonable efforts and shall cooperate with each other in
seeking such consent or entering into reasonable arrangements, designed to
provide Purchaser the benefits thereunder; and (C) Purchaser shall be obligated
to perform and discharge the obligations of Seller arising after the Closing
Date under any such Assigned Contract only after such consent is
obtained.

    

    
      
         

      

      
        5

        
          

        

      

      
         

      

       

    

    (e)           Purchase
Price.  In consideration of the sale, transfer, conveyance,
assignment and delivery of the Acquired Assets, and in reliance upon the
representations and warranties made herein by Seller, Purchaser shall pay to
Seller the sum of two hundred and forty thousand and 00/100 dollars
($240,000.00) (the “Purchase
Price”).  The Purchase Price shall be payable by Purchaser to
Seller at Closing as follows:

    

    (i)           One
hundred thousand and 00/100 dollars ($100,000.00) in the form of cash by wire
transfer or delivery of other immediately available funds (the “Cash
Consideration”);

    

    (ii)           One
hundred thousand and 00/100 dollars ($100,000.00) in the form of a twenty-four
(24) month unsecured self-amortizing promissory note which shall be inclusive of
interest calculated at the rate of fifteen (15%) percent per annum and be
payable monthly in advance, such note to be substantially in the form attached
hereto as Exhibit C (the “Purchase Money
Note”); and

    

    (iii)           Forty
thousand and 00/100 dollars ($40,000.00) in the form of one million (1,000,000)
restricted shares of the common stock of Purchaser, par value $0.001 per share
(the “Purchaser Common
Stock”) issued in, and registered on the books of Purchaser’s transfer
agent in, the name of Seller Principals, as designees, in the following share
amounts:

    

    Borsari
...............           475,000
(the “Borsari
Certificate”)

    Kolinger
.............           525,000 (the
“Kolinger
Certificate”)

    

    (f)           The Closing.  The closing of
the transactions contemplated by this Agreement (the “Closing”) shall take
place simultaneously with the execution and delivery of this Agreement at
the  offices of Seller and Purchaser with deliveries by fax or wire
transfer.  The hour and date of the Closing are referred to herein as
the “Closing
Date”.  The parties agree and intend that the Closing shall be
effective as of 11:59 p.m. C.S.T. on the Closing Date.

    

    (g)           Deliveries at the
Closing.  At or before the Closing:

    

    (i)           Seller
shall deliver to Purchaser the following:

    

    
      	
              §  

            	
              A
      duly executed original of the Assignment of Intellectual
      Property;

            

    

    
      	
              §  

            	
              A
      duly executed original of the General Assignment, Bill of Sale and
      Assumption of Liabilities
Agreement;

            

    

    
      	
              §  

            	
              A
      duly executed original of the Independent Sales Agreement;
    and

            

    

    
      	
              §  

            	
              Such
      other certificates, instruments, and documents as may be reasonably agreed
      to by the Primary Parties in order to confer upon Purchaser the benefits
      of this Agreement.

            

    

    

    
      
         

      

      
        6

        
          

        

      

      
         

      

       

    

    (ii)           Purchaser
shall deliver to Seller the following:

    

    
      	
              §  

            	
              The
      Cash Consideration;

            

    

    
      	
              §  

            	
              The
      duly executed original of the Purchase Money
  Note;

            

    

    
      	
              §  

            	
              A
      duly executed original of the General Assignment, Bill of Sale and
      Assumption of Liabilities
Agreement;

            

    

    and

    
      	
              §  

            	
              A
      duly executed original of the Independent Sales
  Agreement.

            

    

    

    (iii)           Purchaser
shall deliver to Borsari the Borsari Certificate.

    

    (iv)           Purchaser
shall deliver to Kolinger the Kolinger Certificate.

    

    3.           Representations and
Warranties of the Seller.  Seller represents and warrants to
Purchaser that the statements contained in this Section 3 are correct
and complete as of the Closing Date, except as specifically set forth in the
disclosure schedules accompanying this Agreement and initialed by the Primary
Parties (each a “Schedule” and
collectively, the “Disclosure
Schedule”).  The Disclosure Schedule is arranged in pages
corresponding to the lettered and numbered paragraphs contained in this
Agreement.

    (a)           Organization of
Seller.  Seller is a limited liability company duly organized,
validly existing and in good standing under the laws of the State of California
and has full power and authority to carry on its current business and to own,
use and sell its assets and properties, including the Acquired
Assets.  Seller is duly qualified to do business and is in good
standing under the laws of each state or other jurisdiction in which the conduct
of the Business Line requires such qualification, except where the failure to be
so qualified is not reasonably anticipated to have a Material Adverse
Effect.

    

    (b)           Authorization of
Transaction.  Seller has full power and authority to execute
and deliver this Agreement and to perform its obligations hereunder. Without
limiting the generality of the foregoing, the managing members or other duly
governing body of Seller and, to the extent required by applicable law or
Seller’s limited liability company operating agreement, Seller’s members have
duly authorized the execution, delivery, and performance of this Agreement by
Seller. This Agreement constitutes the valid and legally binding obligation of
Seller, enforceable in accordance with its terms and conditions.

    

    (c)           Noncontravention.  Neither
the execution and the delivery of this Agreement, nor the consummation of the
transactions contemplated hereby will (i) violate any constitution, statute,
regulation, rule, injunction, judgment, order, decree, ruling, charge, or other
restriction of any Governmental Authority to which Seller is subject or any
provision of the charter or bylaws of Seller or (ii) except as set forth on
Schedule 3(c),
conflict with, result in a breach of, constitute a default under, result in the
acceleration of, create in any party the right to accelerate, terminate, modify,
or cancel, or require any notice or consent under any agreement, contract,
lease, license, instrument, or other arrangement to which Seller is a party or
by which it is bound or to which any of its assets is subject (or result in the
imposition of any Lien upon any of its assets).  Except as set forth
on Schedule
3(c), Seller does not need to give any notice to, make any filing with,
or obtain any authorization, consent, or approval of any Governmental Authority
in order for the Parties to consummate the transactions contemplated by this
Agreement.

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

       

      
        (d)           Brokers’
Fees.  Seller has no Liability or obligation to pay any fees or
commissions to any broker, finder, or agent with respect to the transactions
contemplated by this Agreement for which Purchaser could become liable or
obligated.

         

      

    

    (e)           Title to Acquired
Assets.  Except as set forth on Schedule 3(e), Seller
has good and valid title to all of the Acquired Assets; owns the Acquired Assets
free and clear of any and all Liens; and is conveying good and valid title to
the Acquired Assets to Purchaser free and clear of any and all Liens. No portion
of the Acquired Assets is subject to any outstanding injunction, judgment,
order, decree, ruling or charge, and no action, suit, proceeding, hearing,
investigation, charge, complaint, claim, or demand is pending or, to the
Knowledge of Seller, is threatened which challenges the legality, validity,
enforceability, use, or ownership of any portion of the Acquired
Assets.  Except as set forth on Schedule 3(e), all of
the tangible Acquired Assets being acquired by Purchaser on the Closing Date are
in the possession and control of Seller.  Seller is the sole and
exclusive owner of the Acquired Assets, and has the sole and exclusive right to
use, license, sublicense, assign or sell the Acquired Assets without liability
to, or consent of, any Person.  Except pursuant to this Agreement,
Seller is not a party to any contract or obligation whereby an absolute or
contingent right to purchase, obtain or acquire any rights in any of the
Acquired Assets has been granted to any Person.

    

    (f)           Software.  Except
as set forth on Schedule 3(f), there
are no known, material errors, malfunctions or defects in the
Software.  Seller is not aware of any unauthorized use of the Software
or any portion thereof by any Person.  All modifications, improvements
and other derivative works to or from the Software created by or on behalf of
Seller have been created solely by employees or contractors of Seller who are
under an obligation to assign all right, title and interest therein to
Seller.  Except for licenses granted in the Ordinary Course of
Business to purchasers or licensees of the Software, no rights or licenses,
express or implied, have been granted to any Person under, in or to the Software
or any portion thereof.

    

    (g)           Online
Properties.  There are no known, material errors, malfunctions
or defects in the Online Properties. Seller is not aware of any unauthorized use
of the Online Properties or any portion thereof by any Person. All
modifications, improvements and other derivative works to or from the Online
Properties created by or on behalf of Seller have been created solely by
employees of Seller who are under an obligation to assign all right, title and
interest therein to Seller.  Except for licenses granted in the
Ordinary Course of Business to end users of the Online Properties, no rights or
licenses, express or implied, have been granted to any Person under, in or to
the Online Properties or any portion thereof.

    

    (h)           Inventories.  Schedule 3(h)
contains a complete and correct list of all Inventories as of the Closing Date.
The Inventories consist of materials and supplies, manufactured and purchased
parts, goods in process, and finished goods, all of which are of a quality and
quantity usable or salable in the Ordinary Course of Business of Seller, are
currently used by Seller in the Ordinary Course of Business, and are
merchantable and fit for the purpose for which such items were procured or
manufactured.

    

    (i)           Proprietary
Rights.  Schedule 3(i)
contains a complete and correct list of all trade names, domain names,
trademarks, service marks, service names, logos, brand names, registered
copyrights and patents, and to the extent applicable any registrations and
applications therefor, used by Seller in connection with or otherwise included
in, covering or related to the Business Line.  Seller has delivered to
Purchaser complete and correct copies of all such trademarks, service marks,
patents, and related registrations and applications and has made available to
Purchaser complete and correct copies of all other written documentation
evidencing ownership and prosecution (if applicable) of each such item. The
Proprietary Rights are in full force and effect and there are no Liens,
proceedings or causes of action that in any way affect the validity or
enforceability of such Proprietary Rights. Except for licenses granted in the
Ordinary Course of Business to purchasers, licensees or end users of the
Software and Online Properties, no rights or licenses, express or implied, have
been granted to any Person under, in or to the Proprietary Rights or any portion
thereof.

    

    
      
         

      

      
        8

        
          

        

      

      
         

      

       

    

    (j)           Non-Infringement.  The
Acquired Assets, in whole or in part, do not violate or infringe any patents,
copyrights, trademarks, service marks, trade names, trade dress, rights of
privacy or publicity, moral rights, rights of attribution or integrity or any
other intellectual property or proprietary rights of any Person (collectively,
“Third Party
Intellectual Property Rights”). Seller has not interfered with, infringed
upon, misappropriated, or otherwise come into conflict with any Third Party
Intellectual Property Rights, and none of Seller or its officers, directors,
shareholders or employees has ever received any charge, complaint, claim,
demand, or notice alleging any such interference, infringement,
misappropriation, or violation (including any claim that Seller must license or
refrain from using any Third Party Intellectual Property Rights).  To
the Knowledge of Seller, no third party has interfered with, infringed upon,
misappropriated, or otherwise come into conflict with the Acquired Assets or any
portion thereof.

    

    (k)           Legal
Compliance.  Except as would not, individually or in the
aggregate, have a Material Adverse Effect on Seller, Seller has complied with
all applicable laws (including rules, regulations, codes, plans, injunctions,
judgments, orders, decrees, rulings, and charges thereunder) of Governmental
Authorities, and no action, suit, proceeding, hearing, investigation, charge,
complaint, claim, demand, or notice has been filed or commenced against Seller
alleging any failure so to comply.

    

    (l)           Contracts.  Schedule 3(l)
contains a complete and correct list of all written or oral contracts,
agreements or commitments that in any way relate to the Acquired
Assets.  Seller has delivered to Purchaser a correct and complete copy
of each written agreement listed in Schedule 3(l),
together with a written summary setting forth the terms and conditions of each
oral agreement referred to in Schedule
3(l).  With respect to each such agreement: (i) the agreement
is legal, valid, binding, enforceable, and in full force and effect; (ii) the
agreement will continue to be legal, valid, binding, enforceable, and in full
force and effect on identical terms following the consummation of the
transactions contemplated hereby; (iii) no party is in breach or default, and no
event has occurred which with notice or lapse of time would constitute a breach
or default, or permit termination, modification, or acceleration, under the
agreement; and (iv) no party has repudiated any provision of the
agreement.

    

    (m)           Litigation.  Schedule 3(m) sets
forth each instance in which Seller (i) is subject to any outstanding
injunction, judgment, order, decree, ruling, or charge or (ii) is a party, or to
the Knowledge of Seller is threatened to be made a party, to any action, suit,
proceeding, hearing, or investigation of, in, or before any court or
quasi-judicial or administrative agency of any federal, state, local, or foreign
jurisdiction or before any arbitrator. None of the actions, suits, proceedings,
hearings, and investigations set forth in Schedule 3(m) could
result in any Material Adverse Effect on Seller or any of the Acquired
Assets.

    

    (n)           Product
Warranty.  Each product manufactured, sold, licensed, leased,
or delivered by Seller has been in conformity with all applicable contractual
commitments and all express and implied warranties, and Seller has no Liability
(and there is no Basis for any present or future action, suit, proceeding,
hearing, investigation, charge, complaint, claim, or demand against it giving
rise to any Liability) for replacement or repair thereof or other damages in
connection therewith. No product manufactured, sold, licensed, leased, or
delivered by Seller is subject to any guaranty, warranty, or other indemnity
beyond the applicable standard terms and conditions of sale or
license.  Exhibit E includes
correct and complete copies of the standard terms and conditions of sale,
license, lease, maintenance and support agreements relating to the Software or
the Online Properties (containing applicable guaranty, warranty, and indemnity
provisions).  The Software and the Online Properties have been
licensed for use by third parties only in accordance with such standard terms
and conditions.

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

       

      
        (o)           Product
Liability.  Seller has no Liability (and there is no Basis for
any present or future action, suit, proceeding, hearing, investigation, charge,
complaint, claim, or demand against it giving rise to any Liability) arising out
of any injury to individuals or property as a result of the ownership,
possession, or use of the Software or the Online Properties.

         

      

    

    (p)           Customer
Base.  There are at least forty thousand (40,000) entities and
other customers that, in the aggregate, are current or prior version FormTool
users.  Schedule 3(p)
contains a complete and accurate list of all such FormTool users as of the
Closing Date.

    

    (q)           Accounts
Receivable.  All Accounts Receivable represent valid
obligations arising from sales actually made or services actually performed by
Seller in the Ordinary Course of Business.  Such Accounts Receivable
are or will be as of the Closing Date current and collectible consistent with
past practice.  There is no contest, claim, defense or right of
setoff, other than returns in the Ordinary Course of Business of Seller,
relating to the amount or validity of any Accounts Receivable. Schedule 3(q)
contains a complete and accurate list of all Accounts Receivable as of the
Closing Date, which list sets forth the name and address of each customer and
the amount and aging of each Account Receivable.

    

    (r)           Investment in Purchaser
Common Stock.  With an understanding that the Purchaser is
relying upon the accuracy and completeness of the representations contained
herein in complying with its obligations under applicable federal and state
securities laws, the Seller hereby acknowledges and represents as
follows:

    

    (i)           Seller
Principals, in their capacity as management of Seller, (i) have reviewed certain
of the Purchaser’s most recent public filings, including its annual report on
Form 10-KSB for the year ended December 31, 2006 and all subsequent quarterly
and current reports on Form 10-QSB and 8-K respectively, and understand the
contents thereof, (ii) have received copies of all documents and any other
information requested from the Purchaser and have had an opportunity to ask
questions of and receive answers from the management of the Purchaser regarding
the Purchaser and to obtain any additional information desired or has elected to
waive such opportunity, (iii) confirm that they are fully informed regarding the
current financial condition of the Purchaser, the administration of its business
affairs and its prospects for the future, and that the Purchaser makes no
assurance whatsoever concerning the present and prospective value of the
Purchaser Common Stock.

    

    (ii)           Seller
Principals, in their capacity as management of Seller, realize that an
investment in the Purchaser Common Stock is highly speculative and involves a
high degree of risk.

    

    (iii)           Seller
Principals, in their capacity as management of Seller, have such knowledge and
experience in financial and business matters that he is capable of evaluating
the merits and risks of an investment in the Purchaser Common
Stock.

    

    (iv)           Although
the certificates reflecting the Purchaser Common Stock are to be issued in the
names of Borsari and Kolinger, individually, as designees of Seller, the
Purchaser Common Stock is being purchased by the Seller for investment
purposes and not as nominee for, or for the beneficial interest of, or with the
intention to transfer or distribute to, any other Person.

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

       

      
        (s)           Disclosure.  The
representations and warranties contained in this Section 3 do not
contain any untrue statement of a material fact or omit to state any material
fact necessary in order to make the statements and information contained in this
Section 3 not
misleading.

        

        4.           Representations and
Warranties of the Seller Principals.  Seller Principals,
severally but not jointly, represent and warrant to Purchaser that they
understand and acknowledge that (a) the Purchaser Common Stock has not been
registered under the Securities Act of 1933, as amended, or any applicable state
securities laws, and therefore may not be sold, transferred, assigned or
otherwise disposed of unless such disposition is subsequently registered under
such laws or exemptions from such registrations are available, and (b) a legend
in the following or similar form will be placed on the certificate(s) evidencing
the shares of Purchaser Common Stock referencing such restrictions on
transferability:

         

      

    

    “THE
SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”) OR ANY OTHER SECURITIES
LAWS.  THESE SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT PURPOSES AND
NOT WITH A VIEW TO DISTRIBUTION OR RESALE, AND MAY NOT BE TRANSFERRED, SOLD OR
OTHERWISE DISPOSED OF, OR OFFERED FOR TRANSFER, SALE OR OTHER DISPOSITION IN THE
ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR SUCH SECURITIES UNDER THE
ACT, AND ANY OTHER APPLICABLE SECURITIES LAWS, OR THE AVAILABILITY OF AN
EXEMPTION FROM REGISTRATION UNDER THE ACT AND ANY OTHER APPLICABLE SECURITIES
LAWS.

    

    5.           Representations and
Warranties of the Purchaser.  Purchaser represents and warrants
to Seller that the statements contained in this Section 5 are correct
and complete as of the Closing Date.

    

    (a)           Organization of
Purchaser. Purchaser is a corporation duly organized, validly existing,
and in good standing under the laws of the State of Nevada and has full power
and authority to carry on its current business and to own, use and sell its
assets and properties.

    

    (b)           Authorization of
Transaction.  Purchaser has full power and authority (including
full corporate power and authority) to execute and deliver this Agreement and to
perform its obligations hereunder. Without limiting the generality of the
foregoing, the Board of Directors of Purchaser has duly authorized the
execution, delivery, and performance of this Agreement by Purchaser. This
Agreement constitutes the valid and legally binding obligation of Purchaser,
enforceable in accordance with its terms and conditions.

    

    (c)           Noncontravention.
Neither the execution and the delivery of this Agreement, nor the consummation
of the transactions contemplated hereby, will (i) violate any constitution,
statute, regulation, rule, injunction, judgment, order, decree, ruling, charge,
or other restriction of any Governmental Authority to which Purchaser is subject
or any provision of its charter or bylaws or (ii) conflict with, result in a
breach of, constitute a default under, result in the acceleration of, create in
any party the right to accelerate, terminate, modify, or cancel, or require any
notice under any agreement, contract, lease, license, instrument, or other
arrangement to which Purchaser is a party or by which it is bound or to which
any of its assets is subject. Purchaser does not need to give any notice to,
make any filing with, or obtain any authorization, consent, or approval of any
Governmental Authority in order for the Primary Parties to consummate the
transactions contemplated by this Agreement.

    

    (d)           Purchaser Common
Stock.  Upon issuance, the Purchaser Common Shares shall be
fully paid and non-assessable.

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

       

      
        (e)           Brokers’
Fees.  Purchaser has no Liability or obligation to pay any fees
or commissions to any broker, finder, or agent with respect to the transactions
contemplated by this Agreement for which Seller could become liable or
obligated.

        
 

        6.           Post-Closing
Covenants.

         

      

    

    (a)           Restrictive
Covenants.

    

    (i)           Except
as provided in the Independent Sales Agreement, or as may be necessary to
fulfill its obligations thereunder, from and after the Closing, Seller shall cease
utilizing the name “FormTool”, or any variations or derivatives thereof, in
connection with any of its continuing business operations or
initiatives.

    

    (ii)           Each
of Seller and Seller Principals agree that, for a period of five (5) years
following the date hereof (the “Non-Compete Period”),
they shall not directly or indirectly, either individually or with others,
engage or have any interest, as an owner, employee, representative, agent,
consultant or otherwise, in any business which is similar to the Business
Line.  These covenants shall be deemed separate covenants for each and
every state, country and any other governmental entity covered by the
non-compete obligation and in the event the covenant for one or more such
jurisdictions is determined to be unenforceable the remaining covenants shall
continue to be effective.

    

    (iii)           Each
of Seller and Seller Principals agree that, during the Non-Compete Period, they
shall not solicit nor employ any Person who is employed by the Purchaser during
the Non-Compete Period.

    

    (iv)           Each
of Seller and Seller Principals agree that, during the Non-Compete Period, they
shall not solicit the Purchaser’s customers on their own behalf or on behalf of
any other business or Person in competition with the Purchaser.

    

    (b)           Sale, Transfer, Assignment
of Purchaser Common Stock.  Seller Principals agree to refrain
from selling, transferring, assigning, conveying or otherwise disposing of any
of the Purchaser Common Stock unless such disposition is registered under the
Securities Act of 1933, as amended, or any applicable state securities laws or
exemptions from such registrations are available.

    

    (c)           Purchase Price Allocation
Schedule.  For purposes of any federal or state tax reporting
associated with the transactions contemplated by this Agreement, Purchaser and
Seller agree that the Purchase Price shall be allocated among the Acquired
Assets in accordance with the purchase price allocation schedule annexed hereto
and made a part hereof (the “Purchase Price Allocation
Schedule”). Said allocation is intended by Purchaser and Seller to comply
with Section 1060 of the Code and any Treasury Regulations issued thereunder,
and Purchaser and Seller shall file Form 8594 with their respective federal
income tax returns in a manner consistent with said allocation.

    

    (d)           Further
Assurances.  If, at any time following the Closing Date,
Purchaser shall consider or be advised that any deeds, bills of sale,
assignments or assurances or any other acts or things are necessary, desirable
or proper (i) to vest, perfect or confirm, of record or otherwise, in Purchaser
its right, title and interest in, to or under any of the Acquired Assets, or
(ii) otherwise to carry out the purposes of this Agreement, Seller shall execute
and deliver all such deeds, bills of sale, assignments and assurances and shall
do all such other acts and things as may be necessary, desirable or proper to
vest, perfect or confirm Purchaser’s right, title and interest in, to and under
any of the Acquired Assets and otherwise to carry out the purposes of this
Agreement.

     

    
      
         

      

      
        12

        
          

        

      

      
         

      

       

      
        7.           Other
Agreements.  At the Closing, Seller and Purchaser shall enter
into the following additional agreement:

        

         (a)           An
agreement pursuant to which Seller shall, for an initial term of five (5) years,
provide certain marketing and sales services to Purchaser on a commission basis,
a form of which agreement is attached hereto as Exhibit D (the “Independent Sales
Agreement”).

         

      

    

    8.           Indemnification.

    

    (a)           Indemnification by
Seller.  Up to an amount equal to the Purchase Price, Seller
shall indemnify, defend and hold harmless Purchaser and its officers and
directors from, against, and with respect to any and all losses, damages,
claims, obligations, liabilities, costs and expenses (including, without
limitation, reasonable attorneys’ fees and costs and expenses incurred in
investigating, preparing, defending against or prosecuting any litigation,
claim, proceeding or demand) of any kind or character (each a “Loss” and
collectively, the “Losses”) arising out
of or in connection with any of the following:

    

    (i)           Any
material breach of any of the representations or warranties of Seller or Seller
Principals contained in this Agreement;

    

    (ii)           Any
material failure by Seller or Seller Principals to perform or observe any
covenant, agreement or condition to be performed or observed by them pursuant to
this Agreement;

    

    (iii)           Any
and all Retained Liabilities or other liabilities and obligations of Seller,
except for the Assumed Liabilities; or

    

    (iv)           Seller’s
ownership and operation of the Acquired Assets and the Business Line on or prior
to the Closing Date, including any and all claims for products, service or
professional liability against Seller arising out of sales of the Software or
services related thereto or grants of licenses by Seller on or prior to the
Closing Date.

    

    (b)           Indemnification by Seller
Principals.  Seller Principals shall indemnify, defend and hold
harmless Purchaser and its officers and directors from, against, and with
respect to any and all Losses arising out of or in connection with any material
failure by Seller Principals to perform or observe any covenant, agreement or
condition to be performed or observed by them pursuant to this
Agreement.

    

    (c)           Indemnification by
Purchaser.  Up to an amount equal to the Purchase Price,
Purchaser shall indemnify, defend and hold harmless Seller and its officers and
directors from, against and with respect to any Losses arising out of or in
connection with any of the following:

    

    (i)           Any
material breach of any of the representations and warranties of Purchaser
contained in this Agreement;

    

    (ii)           Any
material failure by Purchaser to perform or observe, any covenant, agreement or
condition to be performed or observed by it pursuant to this
Agreement;

    

    (iii)           All
obligations and liabilities arising after the Closing Date attributable to the
Assumed Liabilities; or

    

    (iv)           Purchaser’s
ownership and operation of the Acquired Assets after the Closing Date, including
any and all claims for products, service or professional liability against
Purchaser arising out of sales of the Software or services related thereto or
grants of licenses by Purchaser after the Closing Date.

    

    
      
         

      

      
        13

        
          

        

      

      
         

      

       

    

    (d)           Notice of
Claim.  Any Party seeking to be indemnified hereunder (the
“Indemnified
Party”) shall, within thirty (30) days following discovery of the matters
giving rise to a Loss, notify the Party from whom indemnity is sought (the
“Indemnity
Obligor”) in writing of any claim for recovery, specifying in reasonable
detail the nature of the Loss and the amount of the liability estimated to arise
therefrom; provided,
however, that no single claim shall be made hereunder for an amount less
than ten thousand and 00/100ths dollars ($10,000.00). If the Indemnified Party
does not so notify the Indemnity Obligor within said thirty (30) days, such
claim shall be barred, and the Indemnity Obligor shall have no obligation with
respect thereto.  The Indemnified Party shall provide to the Indemnity
Obligor as promptly as practicable thereafter all information and documentation
requested by the Indemnity Obligor to verify the claim asserted.

    

    (e)           Defense.  If
the facts pertaining to a Loss arise out of the claim of any third party, or if
there is any claim against a third party available by virtue of the
circumstances of the Loss, the Indemnity Obligor may, by giving written notice
to the Indemnified Party within thirty (30) days following its receipt of the
notice of such claim, elect to assume the defense or the prosecution thereof,
including the employment of counsel or accountants at its cost and expense;
provided, however, that during the interim the Indemnified Party shall use its
best efforts to take all action (not including settlement) reasonably necessary
to protect against further damage or loss with respect to the
Loss.  The Indemnified Party shall have the right to employ counsel
separate from counsel employed by the Indemnity Obligor in any such action and
to participate therein, but the fees and expenses of such counsel shall be at
the Indemnified Party’s own expense.  Whether or not the Indemnity
Obligor chooses so to defend or prosecute such claim, all the parties hereto
shall cooperate in the defense or prosecution thereof. In the event of payment
by the Indemnity Obligor to the Indemnified Party in connection with any Loss
arising out of a third party claim, the Indemnity Obligor shall be subrogated to
and shall stand in the place of the Indemnified Party with respect to such
indemnified matter.  The Indemnified Party shall cooperate with the
Indemnity Obligor in prosecuting any subrogated claim.

    

    (f)           Time for
Claims.  All of the representations and warranties of the
Parties contained in this Agreement shall survive the Closing.  Except
as otherwise provided herein, action on any claim asserted with respect to the
items enumerated in Section 8(a), Section
8(b), or Section 8(c) must be
commenced within three (3) years after the Closing Date.

    

    (g)           Reduction by Insurance
Proceeds.  The amount payable by an Indemnity Obligor to an
Indemnified Party with respect to a Loss shall be reduced by the amount of any
insurance proceeds received by the Indemnified Party with respect to the Loss,
and each of the parties hereby agrees to use its best efforts to collect any and
all insurance proceeds to which it may be entitled in respect of any
Loss.

    

    (h)           Offset Against Purchase
Money Note.  Any amounts that may become payable by Seller to
Purchaser from time to time under this Section 8 shall be subject in whole or in
part to offset against the Purchase Money Note to the extent that such amounts
do not exceed the outstanding  obligations remaining thereunder at
such times.

     

    
      
         

      

      
        14

        
          

        

      

      
         

      

       

      
        9.           Miscellaneous.

        

        (a)           Press Releases and Public
Announcements.  Any Party may
make any public disclosure it believes in good faith is required by applicable
law, in which case the disclosing Party will use its best efforts to advise the
other Parties prior to making the disclosure.

        

        (b)           No Third-Party
Beneficiaries.  This Agreement shall not confer any rights or
remedies upon any Person other than the Parties and their respective successors
and permitted assigns.

        

        (c)           Entire
Agreement.  This Agreement
(including the documents referred to herein) constitutes the entire agreement
between the Parties and supersedes any prior understandings, agreements, or
representations by or between the Parties, written or oral, to the extent they
related in any way to the subject matter hereof.

         

      

    

    (d)           Succession and
Assignment.  This Agreement
shall be binding upon and inure to the benefit of the Parties named herein and
their respective successors and permitted assigns.  No Party may
assign either this Agreement or any of its rights, interests, or obligations
hereunder without the prior written approval of the other Parties.

    

    (e)           Counterparts.  This Agreement
may be executed in one or more counterparts, each of which shall be deemed an
original but all of which together will constitute one and the same
instrument.

    

    (f)           Headings.  The section
headings contained in this Agreement are inserted for convenience only and shall
not affect in any way the meaning or interpretation of this
Agreement.

    

    (g)           Notices.  All
notices, requests, demands, claims, and other communications hereunder will be
in writing.  Any notice, request, demand, claim, or other
communication hereunder shall be deemed duly given if (and then two business
days after) it is sent by registered or certified mail, return receipt
requested, postage prepaid, and addressed to the intended recipient as set forth
below:

    

    

    If to Purchaser:                                Copy to:

    

    Steven
Malone                                                                               
Michael M. Membrado

    Findex.com,
Inc.                                                                             
M.M. Membrado, PLLC

    620 North
129th
Street                                                                    115
East 57th Street,
Suite 1006

    Omaha, NE
68154                                                                           
New York, NY 10022

    P:
(402)333-1900                                                                             
P: (646)486-9772

    F:
(402)778-5763                                                                             
F: (646)486-9771

    

    If to Seller:

    

    Joseph
Kolinger

    ORG
Professional,
LLC                                                                

    69 Sandy
Creek Way

    Novato,
CA 94945

    T: (415)
898-2300

    F: (415)
246-7264

    

    If to Borsari:

    

    Robert
Borsari

    23 Hummel
Drive

    South
Dennis, MA 02660

    T: (508)
258-0127

    F: (415)
598-1573fax

    

    If to Kolinger:

    

    Joseph
Kolinger

    69 Sandy
Creek Way

    Novato,
CA 94947

    T: (415)
898-2300

    F: (415)
246-7264

    

    
      
         

      

      
        15

        
          

        

      

      
         

      

       

    

    Any Party
may send any notice, request, demand, claim, or other communication hereunder to
the intended recipient at the address set forth above using any other means
(including personal delivery, expedited courier, messenger service, fax, telex,
ordinary mail, or e-mail), but no such notice, request, demand, claim, or other
communication shall be deemed to have been duly given unless and until it
actually is received by the intended recipient.  Any Party may change
the address to which notices, requests, demands, claims, and other
communications hereunder are to be delivered by giving the other Parties notice
in the manner herein set forth.

    

    (h)           Governing
Law.  This Agreement shall be governed by and construed in
accordance with the domestic laws of the State of Nebraska without giving effect
to any choice or conflict of law provision or rule (whether of the State of
Nebraska or any other jurisdiction) that would cause the application of the laws
of any jurisdiction other than the State of Nebraska.

    

    (i)           Amendments and
Waivers.  No amendment of any provision of this Agreement shall
be valid unless the same shall be in writing and signed by each party. No waiver
by any Party of any default, misrepresentation, or breach of warranty or
covenant hereunder, whether intentional or not, shall be deemed to extend to any
prior or subsequent default, misrepresentation, or breach of warranty or
covenant hereunder or affect in any way any rights arising by virtue of any
prior or subsequent such occurrence.

    

    (j)           Severability.  Any term or
provision of this Agreement that is invalid or unenforceable in any situation in
any jurisdiction shall not affect the validity or enforceability of the
remaining terms and provisions hereof or the validity or enforceability of the
offending term or provision in any other situation or in any other
jurisdiction.

    

    (k)           Expenses.  Each
Party will bear its own costs and expenses (including legal fees and expenses)
incurred in connection with this Agreement and the transactions contemplated
hereby.

    

    (l)           Construction.  The Parties
have participated collectively in the negotiation and drafting of this
Agreement.  In the event an ambiguity or question of intent or
interpretation arises, this Agreement shall be construed as if drafted
collectively by all Parties and no presumption or burden of proof shall arise
favoring or disfavoring any one or more Parties by virtue of the authorship of
any of the provisions of this Agreement.  Any reference to any
federal, state, local, or foreign statute or law shall be deemed also to refer
to all rules and regulations promulgated thereunder, unless the context requires
otherwise.  The word “including” shall mean “including without
limitation”.  Nothing in the Disclosure Schedule shall be deemed
adequate to disclose an exception to a representation or warranty made herein
unless the Disclosure Schedule identifies the exception with reasonable
particularity and describes the relevant facts in reasonable
detail.  Without limiting the generality of the foregoing, the mere
listing (or inclusion of a copy) of a document or other item shall not be deemed
adequate to disclose an exception to a representation or warranty made herein
(unless the representation or warranty has to do with the existence of the
document or other item itself).  The Parties intend that each
representation, warranty, and covenant contained herein shall have independent
significance.  If any Party shall have breached any representation,
warranty, or covenant contained herein in any respect, the fact that there
exists another representation, warranty, or covenant relating to the same
subject matter (regardless of the relative levels of specificity) which such
Party shall not have breached shall not detract from or mitigate the fact that
such Party is in breach of the first representation, warranty, or
covenant.

     

    
      
         

      

      
        16

        
          

        

      

      
         

      

       

      
        (m)           Incorporation of Exhibits
and Schedules.  The Exhibits and Schedules identified in this
Agreement are incorporated herein by reference and made a part
hereof.

         

      

    

    (n)           Arbitration.  Any
and all disputes arising under this Agreement shall be settled by arbitration in
Omaha, NE before a single arbitrator without the involvement of any professional
arbitration association.  Arbitration may be commenced at any time by
any Party giving written notice to the other Parties (as applicable) that such
dispute is being referred to arbitration under this provision.  The
arbitrator shall be selected by the commencing Party in its reasonable and good
faith discretion based on professional qualification, reputation and an absence
of material bias, and the procedure established for resolution of any claim
hereunder shall be as established by the designated arbitrator, but, in any
case, shall be on as highly expedited a basis as is practicable.  Any
award rendered by the arbitrator shall be conclusive and binding upon the
applicable Parties; provided,
however, that any such award be accompanied by a written opinion of the
arbitrator giving the reasons for the award.  This provision for
arbitration shall be specifically enforceable by the Parties involved and the
decision of the arbitrator in accordance herewith shall be final and binding and
there shall be no right of appeal therefrom.  Until an award of
arbitration is issued, each Party shall pay its own expenses of arbitration and
the expenses of the arbitrator.  Upon issuance of an award in
arbitration, the non-prevailing Parties shall, in addition to paying such award,
pay to the prevailing Party on a pro-rata basis all costs and expenses incurred
in connection with the arbitration (or the reasonable value thereof if performed
themselves) to date.

    

    

    

    

    [SIGNATURES
APPEAR ON FOLLWING PAGE]

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    
 

    
      
         

      

      
        17

        
          

        

      

      
         

      

       

    

    IN
WITNESS WHEREOF, the Parties have executed this Agreement as of the date first
above written.

     

     

    
      
        	 	FINDEX.COM,
      INC.	 
	 	 	 	 
	 	
                By:
      

              	/s/
      Steven Malone	 
	 	Name: 	Steven
      Malone	 
	 	Title:	President
      & Chief Executive Officer	 
	 	 	 	 

      

    

     

     

    

      
        	 	ORG
      PROFESSIONAL, LLC	 
	 	 	 	 
	
                 

              	
                By:
      

              	/s/
      Joseph Kolinger	 
	 	Name: 	Joseph
      Kolinger	 
	 	Title:	President	 
	 	 	 	 

      

    

    
 

     

    
      	
               

            	
               

            	/s/ Robert
      Borsari	 
	 	 	Robert
      Borsari, personally	 
	 	 	 	 

    

     

     

    

    
      	
               

            	
               

            	/s/ Joseph
      Kolinger	 
	 	 	Joseph
      Kolinger, personally	 
	 	 	 	 

    

    

    

    

    

    
      
         

      

      
        18exhibit10g7.htm

    
      

      

    

    EXHIBIT
      10(g)(7)

    
      
        

        CLECO
          CORPORATION

        

        EXECUTIVE
          EMPLOYMENT AGREEMENT

        (Level
          1)

        

        THIS
          AGREEMENT (the
“Agreement”) is entered into as of this 29th
          day of January,
          2007, by and between Wade A. Hoefling (“Executive”), and Cleco
          Corporation, a Louisiana corporation (the “Company”).

        

        1.  EMPLOYMENT
          AND TERM

        

        1.1           Position.  The
          Company shall employ and retain Executive as its Senior Vice President –
General Counsel, Director – Regulatory Compliance, and Assistant Corporate
          Secretary or in such other capacity or capacities as shall be mutually
          agreed upon, from time to time, by Executive and the Company, and Executive
          agrees to be so employed, subject to the terms and conditions set forth
          herein.  Executive’s duties and responsibilities shall be those
          assigned to him hereunder, from time to time, by the Chief Executive Officer
          of
          the Company and shall include such duties as are the type and nature normally
          assigned to similar executive officers of a corporation of the size, type
          and
          stature of the Company.  Executive shall report to the Chief Executive
          Officer.

        

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

        

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

        

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

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        

        1.4           Term.  Executive’s
          employment under this Agreement shall commence as of January 29, 2007 (the
          “Effective Date”), and shall terminate on January 29, 2010 (such date or the
          last day of employment specified in any renewal or amendment hereof referred
          to
          herein as the “Termination Date”) (the period commencing as of the Effective
          Date and ending as of the Termination Date referred to herein as the “Employment
          Term”).

        

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

        

        2.  COMPENSATION
          AND BENEFITS

        

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

        

        2.2           Annual
          Incentive Bonus.  In addition to the foregoing, Executive
          shall be eligible for participation in the Annual Incentive Compensation
          Plan or
          similar bonus arrangement maintained by the Company or an Affiliate (as
          defined
          in Section 6.15) or such other bonus or incentive plans which the Company
          or its
          Affiliates may adopt, from time to time, for similarly situated executives
          (an
“Incentive Bonus”).

        

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

        

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

        

        2.5           Other
          Benefits. During the term of this Agreement and in addition to the
          amounts otherwise provided herein, Executive shall participate in such
          plans,
          policies, and programs as may be maintained, from time to time, by the
          Company
          or its Affiliates for the benefit of senior executives or employees, including,
          without limitation, profit sharing, life insurance, and group medical and
          other
          welfare benefit plans.  Any such benefits shall be determined in
          accordance with the specific terms and conditions of the documents evidencing
          any such plans, policies, and programs.

         

        
          
          

          
            Page
              2

            
              

            

          

          
          

        

        

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

        

        3.  TERMINATION

        

        3.1           Termination
          Payments to Executive.  As set forth more fully in this
          Section 3 and except as provided in Sections 3.3 or 3.8 hereof, Executive
          shall
          be paid the greater of the amounts or benefits set forth below or the amounts
          or
          benefits provided under the terms of the separate severance plan or arrangement
          maintained by the Company (or its Affiliates) on account of termination
          of
          employment hereunder, but in no event will Executive be entitled to recover
          under both:

        

        
          	
                   

                	
                  a.

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

                

        

        

        
          	
                   

                	
                  b.

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

                

        

        

        
          	
                   

                	
                  c.

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

                

        

        

        
          	
                   

                	
                  d.

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

                

        

        

        
          	
                   

                	
                  e.

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

                

        

        

        
          	
                   

                	
                  i.

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

                

        

        

        
          	
                  ii.  

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

                

        

        

        
          
          

          
            Page
              3

            
              

            

          

          
          

        

        

        Notwithstanding
          the foregoing, the Company shall not be obligated hereunder, unless, within
          21⁄2
months after the year in which occurs the termination of his employment
          with the Company (and its Affiliates), the Company is requested to purchase
          such
          Principal Residence or Executive has actually relocated from the Pineville,
          Louisiana area.  Any payments by the Company pursuant to this Section
          3.1e shall be made no later than March 15th of the
          calendar
          year following the calendar year in which Executive’s employment is
          terminated.

        

        
          	
                   

                	
                  f.

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

                

        

        

        
          	
                   

                	
                  g.

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

                

        

        

        Notwithstanding
          any provision to the contrary, the amounts set forth in Sections 3.1a,
          b, c, d
          and e hereof shall be paid no later than March 15th of the
          calendar
          year following the calendar year in which Executive’s employment is
          terminated.

         

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

        

        3.2           Termination
          for Death or Disability.  If Executive dies or becomes
          disabled during the Employment Term, this Agreement and Executive’s employment
          hereunder shall immediately terminate and the Company’s obligations hereunder
          shall automatically cease.  In such event, the Company shall pay to
          Executive (or his estate) the amounts described in Sections 3.1a and 3.1c
          hereof.  Payment shall be made in the form of one or more single-sums
          as soon as practicable after Executive’s death or disability or as and when such
          amounts are ascertainable, but in no event later than March 15th of the
          calendar
          year following the Executive’s termination of employment due to death or
          disability.

        

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

         

        
          
          

          
            Page
              4

            
              

            

          

          

        

        3.3           Company’s
          Termination for Cause.  This Agreement and Executive’s
          employment hereunder may be terminated by the Company on account of
          Cause.  In such event, the Company shall pay to Executive the amount
          described in Section 3.1a hereof.  Payment shall be made in the form
          of a single-sum not later than three days after such
          termination.  Notwithstanding any provision of this Agreement or any
          other plan, policy or agreement evidencing any other compensation arrangement
          or
          benefit payable to Executive, no additional amount shall be paid to Executive,
          except as may be required by law.

        

        For
          purposes of this Agreement “Cause”
means that Executive has:

        

        
          	
                   

                	
                  a.

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

                

        

        

        
          	
                   

                	
                  b.

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

                

        

        

        
          	
                   

                	
                  c.

                	
                  Intentionally
                    refused to perform the material duties of his
                    position;

                

        

        

        
          	
                   

                	
                  d.

                	
                  Failed
                    to fully cooperate to the extent requested by the Company (or
                    an
                    Affiliate) with investigations by government or independent agencies
                    involving the Company (or an Affiliate);
                    or

                

        

        

        
          	
                   

                	
                  e.

                	
                  Committed
                    a material breach of this
                    Agreement.

                

        

        

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

        

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

        

        3.4           Executive’s
          Constructive Termination. Executive may terminate this Agreement and
          his employment hereunder on account of a Constructive Termination upon
          30 days
          prior written notice to the Chief Executive Officer (or such shorter period
          as
          may be agreed upon by the parties hereto.)  In such event, the Company
          shall provide to Executive (a) the amount described in Section 3.1a hereof,
          payable not later than three days after his termination of employment,
          (b) the
          amounts determined under Sections 3.1b and 3.1d hereof, payable in not
          

         

        
          
          

          
            Page
              5

            
              

            

          

          
          

        

         

         

        more
          than two equal installments, one-half not later than 30 days after termination
          and the other one-half six months after such termination or, if earlier,
          on
          March 15th of
          the calendar year following the calendar year in which such termination
          occurs,
          and (c) the benefits described in Sections 3.1e, 3.1f and 3.1g
          hereof.

        

        For
          purposes of this Agreement,
“Constructive Termination” means:

        

        
          	
                   

                	
                  a.

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

                

        

        

        
          	
                   

                	
                  b.

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

                

        

        

        
          	
                   

                	
                  c.

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

                

        

        

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

        

        3.5           Termination
          by the Company, without Cause.  The Company may terminate
          this Agreement and Executive’s employment hereunder, without Cause, upon 30 days
          prior written notice to Executive (or such shorter period as may be agreed
          upon
          by Executive and the Chief Executive officer).  In such event, the
          Company shall provide to Executive (a) the amount described in Section
          3.1a
          hereof, payable not later than three days after such termination, (b) the
          amounts determined under Sections 3.1b and 3.1d hereof, payable in not
          more than
          two equal installments, one-half not later than 30 days after termination
          and
          the other one-half six months after such termination, or, if earlier, on
          March
          15th of the
          calendar year following the calendar year in which such termination occurs,
          and
          (c) the benefits described in Sections 3.1e, 3.1f and 3.1g hereof.

        

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

        

        3.7           Return
          of Property.  Upon termination of this Agreement or
          Executive’s employment for any reason, Executive shall promptly return to the
          Company, and not keep any copies, all of the property of the Company (and
          its
          Affiliates), including, without limitation, automobiles, equipment, computers,
          fax machines, portable telephones, printers, software, credit cards, manuals,
          customer lists, financial data, letters, notes, notebooks, reports and
          copies of
          any 

         

        
          
          

          
            Page
              6

            
              

            

          

          
          

        

         

        of
          the above, as well as any Confidential Information (as defined in Section
          5.2
          hereof) that is in the possession or under the control of
          Executive.

        

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

        

        4.  CHANGE
          IN CONTROL AND BUSINESS TRANSACTION

        

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

        

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

        

        
          	
                   

                	
                  a.

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

                

        

        

        
          	
                   

                	
                  b.

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

                

        

        

        
          	
                   

                	
                  c.

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

                

        

        

        
          	
                   

                	
                  d.

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

                

        

        

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

         

        
          
          

          
            Page
              7

            
              

            

          

          

        

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

        

        
          	
                   

                	
                  a.

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

                

        

        

        
          	
                   

                	
                  b.

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

                

        

        

        
          	
                   

                	
                  c.

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

                

        

        

        
          	
                   

                	
                  d.

                	
                  Vesting
                    shall be accelerated, any restrictions shall lapse, and all performance
                    objectives shall be deemed satisfied as to any outstanding grants
                    or
                    awards made to Executive under the 2000 Long-Term Incentive Compensation
                    Plan and/or the 1990 Long-Term Incentive Compensation
                    Plan.  Executive shall be entitled to such additional benefits
                    or rights as may be provided in the documents evidencing such
                    plans or the
                    terms of any agreement evidencing such grant or award.  All
                    payments and benefits to be provided by this section 4.2d shall
                    be paid no
                    later than March 15th
                    of the
                    calendar year following the calendar year in which such termination
                    occurs.

                

        

        

        
          	
                   

                	
                  e.

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

                

        

        

        
          	
                   

                	
                  f.

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

                

        

        

        
          	
                   

                	
                  i.

                	
                  Purchase
                    his principal residence if such residence is located within 60
                    miles of
                    the Company’s Pineville, Louisiana office (the “Principal
                    

                

        

         

        
          
          

          
            Page
              8

            
              

            

          

          
          

        

         

        
          	
                   

                	
                   

                	
                  Residence”)
                    for an amount equal to the greater of (1) the purchase price
                    of such
                    Principal Residence plus the documented cost of any capital improvements
                    to the Principal Residence made by Executive, or (2) the fair
                    market value
                    of such Principal Residence as determined by the Company’s usual
                    relocation practice; and

                

        

        
 

        
          	
                   

                	
                  ii.

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

                

        

        

        Notwithstanding
          the foregoing, the Company shall not be obligated hereunder, unless, within
          21⁄2
months after the year in which occurs the termination of his employment
          with the
          Company (and its Affiliates), the Company is requested to purchase such
          Principal Residence or Executive has actually relocated from the Pineville,
          Louisiana area.  Any payments by the Company pursuant to this Section
          4.2f shall be made no later than March 15th of the
          calendar
          year following the calendar year in which Executive’s employment is
          terminated.

        

        

        
          	
                   

                	
                  g.

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

                

        

        

        4.3           Business
          Transaction. If Executive’s employment hereunder is terminated (other
          than on account of Cause as defined in Section 3.3 hereof) in connection
          with a
          Business Transaction, then notwithstanding any provision of this Agreement
          to
          the contrary, the Company shall pay or provide to Executive (a) the amount
          described in Section 3.1a hereof, payable not later than three days after
          his
          termination of employment, (b) the amounts determined under Sections 3.1b
          and
          3.1d hereof, payable in not more than two equal installments, one-half
          not later
          than 30 days after termination and the other one-half six months after
          such
          termination, or, if earlier, on March 15th of the
          calendar
          year following the calendar year in which such termination occurs, and (c)
          the benefits described in Sections 3.1e and 3.1f and 4.2d and 4.2e
          hereof.

        

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

         

        
          
          

          
            Page
              9

            
              

            

          

          
          

        

         

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

        

        5.  LIMITATIONS
          ON ACTIVITIES

        

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

        

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

        

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

        

        
          	
                   

                	
                  a.

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

                

        

        

        
          	
                   

                	
                  b.

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

                

        

        

        
          	
                   

                	
                  c.

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

                

        

        

        The
          provisions of this Section 5.3 shall apply in the locations set forth on
          Exhibit
          A hereto, as the same may be amended from time to time.  Executive
          acknowledges that the Company (or its Affiliates) is presently doing business
          in
          such locations and that during the Employment Term Executive will be required
          to
          provide services to or for the benefit of the Company (or its Affiliates)
          in
          such locations.

         

        
          
          

          
            Page
              10

            
              

            

          

          

        

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

        

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

        

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

        

        6.  MISCELLANEOUS

        

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

        

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

        

        After
          a Change in Control or Business
          Transaction has occurred, Executive shall not be required to incur legal
          fees
          and the related expenses associated with the interpretation, enforcement
          or
          defense of Executive’s rights under this Agreement by litigation or
          otherwise.  Accordingly, if, following a Change in Control or Business
          Transaction, the Company has failed to comply with any of its obligations
          under
          this Agreement or the Company or any other person takes or threatens to
          take any
          action to declare this Agreement void or unenforceable or in any way reduce
          the
          possibility of collecting the amounts due hereunder, or institutes any
          litigation or other action or proceeding designed to deny or to recover
          from
          Executive the benefits provided or intended to be provided under this Agreement,
          Executive shall be entitled to retain counsel of Executive’s choice, at the
          expense of the Company, to advise and represent Executive in connection
          with any
          such interpretation, enforcement or defense, including without limitation
          the

         

        
          
          

          
            Page
              11

            
              

            

          

          
          

        

         

        initiation
          or defense of any litigation, arbitration or other legal action, whether
          by or
          against the Company or any director, officer, stockholder or other person
          affiliated with the Company, in any jurisdiction.  The Company shall
          pay and be solely financially responsible for any and all attorneys’ and related
          fees and expenses incurred by Executive in connection with any of the foregoing,
          without regard to whether Executive prevails, in whole or in part.

        

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

        

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

        

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

        

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

        

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

        

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

        

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

        

        6.9           Notices.  All
          notices and other communications under this Agreement must be in writing
          and
          will be deemed to have been duly given when (a) delivered by hand, (b)
          sent by
          telecopier to a telecopier number given below, provided that a copy is
          sent by a
          nationally recognized overnight delivery service (receipt requested), or
          (c)
          when received by the addressee, if sent by a nationally recognized overnight
          delivery service (receipt requested), in each case as follows:

         

        
          
          

          
            Page
              12

            
              

            

          

          
          

        

         

        If
          to
          Executive:                    Wade
          A. Hoefling

        925
          Retreat East

        Pineville,
          Louisiana
          71360

        

        If
          to the
          Company:              Cleco
          Corporation

        2030
          Donahue Ferry Road

        
          	
                   

                	
                  Pineville,
                    LA 71360

                

        

        Attention:
          Chief Executive
          Officer

        Telecopier:   (318)
          484-7777

        

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

        

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

        

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

        

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

        

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

        

        6.14           Waiver.  The
          failure of either party to insist in any one or more instances upon performance
          of any terms or conditions of this Agreement will not be construed as a
          waiver
          of future performance of any such term, covenant, or condition and the
          obligations of either party with respect to such term, covenant or condition
          will continue in full force and effect.

        

        6.15           Section
          409A.The parties intend that this Agreement comply, to the extent
          applicable, with the provisions of Section 409A of the Internal Revenue
          Code and
          related regulations and Treasury pronouncements ("Section 409A").  If
          the parties determine in good faith that any provision provided herein
          would
          result in the imposition of an excise tax under the 

         

        
          
          

          
            Page
              13

            
              

            

          

          
          

        

         

         

        provisions
          of Section 409A, Executive and the Company agree that each will use good
          faith
          efforts to reform any such provision to avoid imposition of any such excise
          tax
          in the manner that Executive and the Company mutually determine is appropriate
          to comply with Section 409A.

         

        6.16           Definition.  For
          purposes of this Agreement, “Affiliate” shall mean one or more subsidiaries or
          other entities with respect to which the Company owns (within the meaning
          of
          Section 425(f) of the Internal Revenue Code of 1986, as amended (the “Code”))
          50% or more of the total combined voting power of all classes of stock
          or other
          equity interests.

        

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

        

        CLECO
          CORPORATION                                        EXECUTIVE

        

        By:     /s/
          G. W. Bausewine                                          /s/
          Wade Hoefling

        WADE
          A. HOEFLING

        Its:      SVP,
          Corporate
          Services                                                                                     

        

        Date:
                  3/26/2007                                          Date:
                  3/27/2007      

         

         

        
          
          

          
            Page
              14

            
              

            

          

          
          

        

         

        CLECO
          CORPORATION

        EXECUTIVE
          EMPLOYMENT AGREEMENT

        

        EXHIBIT
          A

        

        

        This
          Exhibit A is intended to form a
          part of that certain Executive Employment Agreement by and between Cleco
          Corporation and Wade A. Hoefling, first effective as of January
          29, 2007.  The parties agree that the proscriptions set forth in
          Section 5.3 thereof shall apply in the State of Louisiana, Parishes
          of:

        

        

          
          Acadia Parish

        Allen
          Parish

        Avoyelles
          Parish

        Beauregard
          Parish

        Calcasieu
          Parish

        Catahoula
          Parish

        Desoto
          Parish

        Evangeline
          Parish

        Grant
          Parish

        Iberia
          Parish

        Jefferson
          Davis Parish

        Lafayette
          Parish

        Lasalle
          Parish

        Natchitoches
          Parish

        Rapides
          Parish

        Red
          River Parish

        Sabine
          Parish

        St.
          Landry Parish

        St.
          Martin Parish

        St.
          Mary Parish

        St.
          Tammany Parish

        Vernon
          Parish

        Washington
          Parish

        

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

        
 

        Page
          15

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