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                                                                   EXHIBIT 10.37

                      AMENDMENT TO LINE OF CREDIT AGREEMENT

         This is an amendment to the Line of Credit (the "Agreement") made by
and between the National Rural Utilities Cooperative Finance Corporation ("CFC")
and the undersigned ("Borrower"), dated June 27, 1997.

         1.       The amount of the CFC Commitment as defined in the Agreement
                  is hereby amended to read Twenty Eight Million Dollars
                  ($28,000,000.00).

         2.       Borrower hereby unconditionally promises and agrees to pay, as
                  and when due, interest on all amounts advanced under the CFC
                  Commitment, as amended hereby, from the date of each Advance
                  and to repay all amounts advanced under the Agreement, as
                  amended hereby, with interest thereon as provided in the
                  Agreement.

         3.       Except as specifically provided herein, all of the terms,
                  conditions and provisions contained in the Agreement shall
                  remain unchanged and in full force and effect.

         4.       The obligations of the undersigned Borrower as set forth in
                  the Agreement are secured by a Second Restated Mortgage and
                  Security Agreement by and between Borrower and CFC dated as of
                  October 24, 1995 as it may have been Supplemented, amended,
                  consolidated or restated from time to time.

Name of Borrower:_________________________________________

Signed By:________________________________________________

Title:____________________________________________________

NATIONAL RURAL UTILITIES COOPERATIVE FINANCE CORPORATION

By:_____________________________________
         Assistant Secretary-Treasurer

(To be filled in by CFC) The effective date of this Amendment
is:_________________<PAGE>
                                                                  EXHIBIT 10.39

                       CAP ROCK ELECTRIC COOPERATIVE, INC.
                     ACHIEVEMENT BASED COMPENSATION CONTRACT

               MERGER OR ACQUISITION WITH OTHER ELECTRIC UTILITIES

In accordance with Cap Rock Electric Cooperative, Inc.'s ("Cap Rock Electric")
Board Policy No. 143, this contract provides for calculation and payment of
incentive compensation in the form of a percentage of assets added to Cap Rock
Electric and/or Cap Rock Energy, Inc. ("Cap Rock Energy") hereinafter referred
to collectively as the "Companies" resulting from mergers with or acquisitions
of other electric utilities.

1.    RESPONSIBLE INDIVIDUAL:

      Ulen E. North, Jr.

2.    AMOUNT OF ACHIEVEMENT BASED COMPENSATION:

      The Achievement Based Compensation will be one and a half percent (1.5%)
      of the total assets added to Cap Rock Electric.

3.    CALCULATION OF ASSET BASIS:

      The amount of total assets on which the compensation is based equals
      the total of all assets acquired by Cap Rock Electric and/or Cap Rock
      Energy at the time of the merger or acquisition. This applies to all
      prior mergers and acquisitions since 1990, and includes the Lone Wolf,
      Hunt-Collin and McCulloch acquisitions and any future mergers or
      acquisitions for the next ten (10) years of electric cooperatives,
      telephone cooperatives, or municipal electric systems, when the company
      does not take on additional debt to acquire the cooperative or
      municipal electric system, but only assumes debt and equity.

4.    TERM OF ACHIEVEMENT BASED COMPENSATION:

      The Achievement Based Compensation will be paid no later than two (2)
      months of completion of the merger or acquisition, such merger or
      acquisition being considered completed at such time as ownership of all
      of the assets of an electric utility are officially transferred to and
      become a part of Cap Rock Electric and/or Cap Rock Energy.

5.    PAYMENT OF THE ACHIEVEMENT BASED COMPENSATION:

      The Achievement Based Compensation will be paid after ownership of all
      total assets of an electric utility are transferred to Cap Rock
      Electric and/or Cap Rock Energy.

      The Achievement Based Compensation will be paid in cash to each eligible
      individual in a lump sum unless the amount exceeds $10,000.00, in which
      case Cap Rock Electric will have

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      the option to spread the payment over as many months as necessary so that
      any one monthly payment does not exceed $10,000.00 or to pay in a lump sum
      if the Board and the President/CEO so decide. The lump-sum payment or
      series of payments, if applicable, will be made as provided in Board
      Policy No. 143 and with cash availability and overall cash flow of the
      Companies considered.

      The eligible individual shall have the option to elect some or all of the
      payment to be made to such deferred compensation plans as may be
      maintained by the individual or Cap Rock Electric.

6.    CONDITIONS AND CONSIDERATIONS FOR PAYMENT:

      Except upon becoming eligible for benefits under any Cap Rock Electric
      retirement plan, either early or regular, the Achievement Based
      Compensation will be payable to the recipient listed below in paragraph
      (7) without regard to the continued employment of those individuals by
      Cap Rock Electric or an affiliate or subsidiary thereof, provided that,
      unless otherwise agreed by Cap Rock Electric, each individual agrees
      that he will not voluntarily terminate his employment or seat on the
      Board of Directors or Advisory Director position with Cap Rock Electric
      or any affiliate or subsidiary of Cap Rock Electric for the shorter of
      three years following the date of initial payment under this contract.
      Further, each individual agrees that he will keep the terms of this
      contract, as well as the terms of the transaction causing the awarding
      and payment of the Achievement Based Compensation, confidential.

7.    SHARING WITH OTHER INDIVIDUALS:

      In recognition of the necessary contribution of the entire management
      team, including the General Counsel, and the Board of Directors, including
      the Advisory Directors to the continued success of Cap Rock Electric, the
      Achievement Based Compensation will be shared among the Responsible
      Individual and the other management team members as follows:

                  Responsible Individual - 20 %
                                          -----
                  Management Team - 80 %
                                   -----
                        a.    Chief Executive Officer - 20 %
                                                       -----
                        b.    Other Individuals selected by the President/CEO
                              and Board of Directors - 60 %
                                                      -----

                              i.    John D. Parker            10 %
                                                              ----
                              ii.   Sam Prough                10 %
                                                              ----
                              iii.  Ronnie Lyon               10 %
                                                              ----
                              iv.   Russell E. Jones          2.70%
                                                              ----
                              v.    Alfred J. Schwartz        2.70%
                                                              ----

                                                                          Page 2
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                              vi.   S.D Buchanan              2.70%
                                                              ----
                              vii.  Newell Tate               2.70%
                                                              ----
                              viii. Jerry Swindell            2.70%
                                                              ----
                              ix.   Jerry Hoelscher           2.70%
                                                              ----
                              x.    Floyd Ritchey             2.70%
                                                              ----
                              xi.   Carlos Dusek              2.70%
                                                              ----
                              xii.  A.D. Reed                 2.70%
                                                              ----
                              xiii. Teddy Stewart             2.70%
                                                              ----
                              xiv.  Robert Holman             2.70%
                                                              ----

    Except for the confidentiality and retirement provisions, the conditions
    for payment described above in paragraph (6) are not applicable to those
    persons identified and listed above as "Other Individuals". It is further
    understood and agreed that such conditions of payment as set out in
    paragraph (6) are applicable subject to the amount of such Achievement
    Based Compensation total payment being commensurate and with the
    conditions placed upon the recipients by the acceptance of such
    Compensation.

    In the event the Responsible Party should violate terms of this Agreement,
    the right to receive future payments under this Agreement shall immediately
    cease and such interest or right to future payments shall revert to the
    Companies. In the event any individual named herein by the President/Chief
    Executive Officer and Board of Directors as a part of the Management Team
    shall violate the terms of this agreement, die, retire, or terminate their
    employment with the Companies for any reason, the right to receive future
    payments under this contract, if any, shall immediately cease and the
    President/Chief Executive Officer shall have the right to allocate such
    share among those named individuals or others as he may deem in the best
    interests of the Companies.

Witness our hands on this the 22nd day of August, 2000.
                              ----        ------

/s/ [ILLEGIBLE]                                    Date:    8-22-2000
--------------------------------------------            ----------------------
Responsible Individual

/s/ [ILLEGIBLE]                                    Date:    8-22-2000
--------------------------------------------            ----------------------
President/Chief Executive Officer

/s/ [ILLEGIBLE]                                    Date:    8-22-2000
--------------------------------------------            ----------------------
Chairman

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