Document:

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                           CAP ROCK ENERGY CORPORATION

                                 MIDLAND, TEXAS

           The purposes of the Cap Rock Energy Corporation Director Compensation
Plan ("the "Plan"), which was adopted by the Board of Directors (the "Board") of
Cap Rock Energy Corporation ("Energy") on October ___, 2000, are to provide (i)
a mechanism for compensating members of the Board, both inside and outside, for
serving on the Board of Energy; and (ii) a mechanism for the former directors of
Energy's predecessor, Cap Rock Electric Cooperative, Inc. (the "Cooperative"),
to have an exit strategy for the early stages in the life of Energy.

           The Plan will be administered by Energy's Compensation Committee (the
"Committee") and will contain the following material terms:

           -         For as long as each director of Energy is serving on the
                     Board of Energy, he or she will be provided with (i) life
                     insurance as currently provided to the Cooperative
                     directors and health insurance coverage (with Energy paying
                     up to $550 per month for health insurance coverage and with
                     each director being obligated to pay the remainder, if any,
                     for such coverage) under the same life and health insurance
                     arrangements as Energy provides for it officers and
                     employees or, at the option of the director, cash of $550
                     per month in lieu of health insurance coverage; (ii)
                     reimbursement for actual out-of-pocket expenses for
                     attending meetings of the Board of Energy; and (iii)
                     restricted Stock Awards under Energy's Incentive Stock Plan
                     of $10,000 of Energy common stock at the fair market value
                     thereof as determined under the Incentive Stock Plan (with
                     each director being entitled to receive up to $5,000 in
                     cash as a dollar for dollar offset against the amount of
                     Energy common stock to be received). Energy common stock
                     issued to a director pursuant to the Director Compensation
                     Plan will be subject to the restrictions required by
                     applicable securities laws and may contain other
                     restrictions as deemed appropriate by the Committee.

           -         Each outside director of Energy (I.E., a person who is not
                     an officer or employee of Energy) who was formerly a
                     director of the Cooperative and who elects to resign from
                     the Board of Energy and become an advisory director of
                     Energy will receive the same life insurance, health
                     insurance, and compensation benefits as directors of Energy
                     serving on the Board of Energy for a term not to exceed six
                     (6) years. If an advisory director chooses to resign prior
                     to the end of his six-year term then he shall receive stock
                     options for 35,000 shares at a strike price of: (i) $2.00
                     per share if there is no market price for the stock; or
                     (ii) the market price of the stock at that time.

           -         Each outside director of Energy who was formerly a director
                     of the Cooperative and who elects to resign from the Board
                     and chooses NOT to become a director or

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                     an advisory director of Energy will receive (i) a lump sum
                     cash payment equal to the present value discounted at
                     twelve percent (12%) of the amount that the Cooperative is
                     required to pay for health insurance for the balance of
                     six years for the director under the Cooperative's Board
                     Policy No. 123; and (ii) stock options for 35,000 shares
                     at a strike price of $2.00 per share or 90% of the average
                     listed price of the stock for the last five trading days,
                     whichever is more.

           -         Any person who receives options under the Director
                     Compensation Plan will have a period of ten (10) years from
                     the date of grant in which to exercise the options granted
                     to him.

           -         If an outside director of Energy who was formerly a
                     director of the Cooperative elects to resign for the Board
                     of Energy or if already elected to be an advisory director
                     of Energy and resigns, the stock he acquires pursuant to
                     the stock options he is granted will be restricted
                     (including restrictions on sale and all restrictions under
                     the securities laws regarding directors of public
                     corporations). After a person is no longer a member of the
                     Board of Energy and is no longer an advisory director of
                     Energy and has been out of such positions for at least
                     three (3) months, the shares that he acquires pursuant to
                     the stock options he is granted will not be subject to any
                     resale or other restrictions (provided he has held the
                     shares for a period of at least two years).

           -         An outside director who chooses not to take the company's
                     health or life insurance benefits may take the cash
                     equivalent of the yearly premium in cash as per Cooperative
                     Board Policy #123.

           -         If an outside director of Energy who was formerly a
                     director of the Cooperative is not nominated for, or is not
                     re-elected to, the Board of Energy or if he is removed from
                     the Board of Energy for any reason, he shall not be
                     entitled to receive any of the benefits outlined above
                     after his status as a member of the Board of Energy
                     terminates.

           -         Attendance by advisory directors at meetings of the Board
                     of Directors of Energy will not be mandatory and there may
                     be occasions where advisory directors will not be invited
                     to attend meetings of the Board of Directors of Energy.

           -         Each director who resigns from the Board of Energy will
                     continue to be subject to the Cooperative's Loyalty Oath
                     and Confidentiality Agreement after his resignation.

           -         The benefits and other provisions of the Director
                     Compensation Plan do NOT apply to persons who are currently
                     advisory directors of the Cooperative.

                                       2<PAGE>

                                                                 Exhibit 10.44

                                 TRUST AGREEMENT

                                     FOR THE

                       CAP ROCK ELECTRIC COOPERATIVE, INC.

                         SUPPLEMENTAL EXECUTIVE DEFERRED

                          COMPENSATION RETIREMENT PLAN

                                TABLE OF CONTENTS
                                -----------------
<TABLE>
<CAPTION>
<S>                  <C>                                                                                         <C>
Section 1             Establishment of Trust                                                                      1

Section 2             Payments to Plan Participants and Their Beneficiaries                                       2

Section 3             Trustee Responsibility Regarding Payments to
                       Trust Beneficiary When Company Is Insolvent                                                3

Section 4             Payments to Company                                                                         4

Section 5             Investment Authority                                                                        4

Section 6             Disposition of Income                                                                       5

Section 7             Accounting by Trustee                                                                       5

Section 8             Responsibility of Trustee                                                                   5

Section 9             Compensation and Expenses of Trustee                                                        6

Section 10            Resignation and Removal of Trustee                                                          6

Section 11            Appointment of Successor                                                                    7

Section 12            Amendment or Termination                                                                    7

Section 13            Miscellaneous                                                                               7

Section 14            Effective Date                                                                              8

                      Adoption of Trust Agreement                                                                 9
</TABLE>

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     THIS AGREEMENT, made this ____ day of _____________ by and between Cap Rock
Electric Cooperative, Inc. (the "Company") and Russell E. Jones, John D. Parker,
Beverly E. Collier, Alfred J. Schwartz (the "Trustee");

     WHEREAS, the Company has adopted the Cap Rock Electric Cooperative, Inc.
Supplemental Executive Deferred Compensation Retirement Plan (the "Plan"); and

     WHEREAS, the Company has incurred or expects to incur liability under the
terms of the Plan with respect to the individuals participating thereunder; and

     WHEREAS, the Company wishes to establish the Trust Agreement for the Cap
Rock Electric Cooperative, Inc. Supplemental Executive Deferred Compensation
Retirement Plan (the "Trust") and to contribute to the Trust assets that shall
be held herein, subject to the claims of the general creditors of the Company in
the event of its insolvency (as herein defined) until paid to participants or
their beneficiaries in such manner and at such times as specified in the Plan;

     WHEREAS, it is the intention of the parties that this Trust shall
constitute an unfunded arrangement and shall not affect the status of the Plan
as an unfunded plan maintained for the purpose of providing deferred
compensation for a select group of management or highly compensated employees
for purposes of Title I of the Employee Retirement Income Security Act of 1974
("ERISA");

     WHEREAS, it is the intention of Company to make contributions to the Trust
to provide itself with a source of funds to assist it in the meeting of its
liabilities under the Plan;

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     NOW, THEREFORE, IT IS AGREED, that the parties do hereby establish the
Trust and agree that the Trust shall be comprised, held and disposed of as
follows:

Section 1.  ESTABLISHMENT OF TRUST.

          (a) The Company hereby deposits with the Trustee in Trust $100.00 (one
     hundred dollars), which shall become the principal of the Trust to be held,
     administered and disposed of by the Trustee as provided in this Agreement.

          (b) The Trust hereby established shall be irrevocable.

          (c) The Trust is intended to be a grantor trust, of which the Company
     is the grantor, within the meaning of subpart E, part I, subchapter J,
     chapter 1, subtitle A of the Internal Revenue Code of 1986, as amended, and
     shall be construed accordingly.

          (d) The principal of the Trust, and any earnings thereon shall be held
     separate and apart from other funds of the Company and shall be used
     exclusively for the uses and purposes of Plan participants and general
     creditors as herein set forth. Plan participants and their beneficiaries
     shall have no preferred claim on, or any beneficial ownership interest in,
     any assets of the Trust. Any rights created under the Plan and this Trust
     Agreement shall be mere unsecured contractual rights of Plan participants
     and their beneficiaries against the Company. Any assets held by the Trust
     will be subject to the claims of the Company's general creditors under
     federal and state law in the event of insolvency, as defined in Section
     3(a) herein.

          (e) The Company, in its sole discretion, may at any time, or from time
     to time, make additional deposits of cash or other property in trust with
     the Trustee to augment the principal to be held, administered and disposed
     of by the Trustee as provided in this Trust Agreement. Neither the Trustee
     nor any Plan participant or beneficiary shall have any right to compel such
     additional deposits.

Section 2.  PAYMENTS TO PLAN PARTICIPANTS AND THEIR BENEFICIARIES.

          (a) The Company shall deliver to the Trustee a schedule (the
     "Payment Schedule") that indicates the amounts payable in respect of
     each Plan participant (and his or her beneficiaries), that provides a
     formula or other instructions acceptable to the Trustee for determining
     the amounts so payable, the form in which such amount is to be paid (as
     provided for or available under the Plan), and the time of commencement
     for payment of such amounts.  Except as otherwise

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     provided herein, the Trustee shall make payments to the Plan
     participants and their beneficiaries in accordance with such Payment
     Schedule. The Trustee shall make provision for the reporting and
     withholding of any federal, state or local taxes that may be required to
     be withheld with respect to the payment of benefits pursuant to the
     terms of the Plan and shall pay amounts withheld to the appropriate
     taxing authorities or determine that such amounts have been reported,
     withheld and paid by the Company.

          (b) The entitlement of a Plan participant or his or her
     beneficiaries to benefits under the Plan shall be determined by the
     Company or such party as it shall designate under the Plan, and any
     claim for such benefits shall be considered and reviewed under the
     procedures set out in the Plan.

          (c) The Company may make payment of benefits directly to Plan
     participants or their beneficiaries as they become due under the terms
     of the Plan. the Company shall notify the Trustee of its decision to
     make payment of benefits directly prior to the time amounts are payable
     to participants or their beneficiaries. In addition, if the principal of
     the Trust, and any earnings thereon, are not sufficient to make payments
     of benefits in accordance with the terms of the Plan, the Company shall
     make the balance of each such payment as it falls due. The Trustee shall
     notify the Company where principal and earnings are not sufficient.

Section 3.  TRUSTEE RESPONSIBILITY REGARDING PAYMENTS TO TRUST
                 BENEFICIARY WHEN COMPANY IS INSOLVENT.

          (a) The Trustee shall cease payment of benefits to Plan
     participants and their beneficiaries if the Company is Insolvent. the
     Company shall be considered "Insolvent" for purposes of this Trust
     Agreement if (i) the Company is unable to pay its debts as they become
     due, or (ii) the Company is subject to a pending proceeding as a debtor
     under the United States Bankruptcy Code.

          (b) At all times during the continuance of this Trust, as provided
     in Section 1(d) hereof, the principal and income of the Trust shall be
     subject to claims of general creditors of the Company under federal and
     state law as set forth below.

              (1) The Board of Directors and the Chief Executive Officer of
          the Company shall have the duty to inform the Trustee in writing of
          the Company's Insolvency. If a person claiming to be a creditor of
          the Company alleges in writing to the Trustee that the Company has
          become Insolvent, the Trustee shall determine whether the Company
          is Insolvent and, pending

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          such determination, the Trustee shall discontinue payment of benefits
          to Plan participants or their beneficiaries.

              (2) Unless the Trustee has actual knowledge of the Company's
          Insolvency, or has received notice from the Company or a person
          claiming to be a creditor alleging that the Company is Insolvent,
          the Trustee shall have no duty to inquire whether the Company is
          Insolvent. the Trustee may in all events rely on such evidence
          concerning the Company's solvency as may be furnished to the
          Trustee and that provides the Trustee with a reasonable basis for
          making a determination concerning the Company's solvency.

              (3) If at any time the Trustee has determined that the Company
          is Insolvent, the Trustee shall discontinue payments to Plan
          participants or their beneficiaries and shall hold the assets of
          the Trust for the benefit of the Company's general creditors.
          Nothing in this Trust Agreement shall in any way diminish any
          rights of Plan participants or their beneficiaries to pursue their
          rights as general creditors of the Company with respect to benefits
          due under the Plan or otherwise.

              (4) The Trustee shall resume the payment of benefits to Plan
          participants or their beneficiaries in accordance with Section 2 of
          this Trust Agreement only after the Trustee has determined that the
          Company is not Insolvent (or is no longer Insolvent).

          (c) Provided that there are sufficient assets, if the Trustee
     discontinues the payment of benefits from the Trust pursuant to Section
     3(b) hereof and subsequently resumes such payments, the first payment
     following such discontinuance shall include the aggregate amount of all
     payments due to Plan participants or their beneficiaries under the terms
     of the Plan for the period of such discontinuance, less the aggregate
     amount of any payments made to Plan participants or their beneficiaries
     by the Company in lieu of the payments provided for hereunder during any
     such period of discontinuance.

Section 4.  PAYMENTS TO COMPANY.

          Except as provided in Section 3 hereof, after the Trust has become
irrevocable, the Company shall have no right or power to direct the Trustee to
return to the Company or to divert to others any of the Trust assets before all
payment of benefits have

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been made to Plan participants and their beneficiaries pursuant to the
terms of the Plan.

Section 5.  INVESTMENT AUTHORITY.

          In no event may the Trustee invest in securities (including stock
or rights to acquire stock) or obligations issued by the Company, other than
a de minimis amount held in common investment vehicles in which the Trustee
invests. All rights associated with assets of the Trust shall be exercised by
the Trustee or the person designated by the Trustee, and shall in no event be
exercisable by or rest with Plan participants.

          The Company shall have the right, at anytime, and from time to time
in its sole discretion, to substitute assets of equal fair market value for
any asset held by the Trust.

Section 6.  DISPOSITION OF INCOME.

          During the term of this Trust, all income received by the Trust,
net of expenses and taxes, shall be accumulated and reinvested.

Section 7.  ACCOUNTING BY TRUSTEE.

          The Trustee shall keep accurate and detailed records of all
investments, receipts, disbursements, and all other transactions required to
be made, including such specific records as shall be agreed upon in writing
between the Company and the Trustee. Within 60 days following the close of
each calendar year and within 30 days after the removal or resignation of the

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Trustee, the Trustee shall deliver to the Company a written account of its
administration of the Trust during such year or during the period from the close
of the last preceding year to the date of such removal or resignation, setting
forth all investments, receipts, disbursements and other transactions effected
by it, including a description of all securities and investments purchased and
sold with the cost of net proceeds of such purchases or sales (accrued interest
paid or receivable being shown separately), and showing all cash, securities and
other property held in the Trust at the end of such year or as of the date of
such removal or resignation, as the case may be.

Section 8.  RESPONSIBILITY OF TRUSTEE.

               (a) The Trustee shall act with care, skill, prudence and
          diligence under the circumstances then prevailing that a prudent
          person acting in like capacity and familiar with such matters would
          use in the conduct of an enterprise of a like character and with like
          aims, provided, however, that the Trustee shall incur no liability to
          any person for any action taken pursuant to direction, request or
          approval given by the Company which is contemplated by, and in
          conformity with, the terms of the Plan of this Trust and is given in
          writing by the Company. In the event of a dispute between the Company
          and a party, the Trustee may apply to a court of competent
          jurisdiction to resolve the dispute.

               (b) If the Trustee undertakes or defends any litigation arising
          in connection with this Trust, the Company agrees to indemnify the
          Trustee against the Trustee's costs, expenses and liabilities
          (including, without limitation, attorneys' fees and expenses) relating
          thereto and to be primarily liable for such payments. If the Company
          does not pay such costs, expenses and liabilities in a reasonably
          timely manner, the Trustee may obtain payment from the Trust.

               (c) The Trustee may hire agents, accountants, actuaries,
          investment advisors, financial consultants or other professionals to
          assist it in performing any of its duties or obligations hereunder.

               (d) The Trustee may consult with legal counsel

<PAGE>

          (who may also be counsel for the Company generally) with respect to
          any of its duties or obligations hereunder.

Section 9.  COMPENSATION AND EXPENSES OF TRUSTEE.

          The Company shall pay all administrative and the Trustee's fees and
expenses. If not so paid, the fees and expenses shall be paid from the Trust.

Section 10.  RESIGNATION AND REMOVAL OF TRUSTEE.

               (a) The Trustee may resign at any time by written notice to the
          Company, which shall be effective 30 days after receipt of such notice
          unless the Company and the Trustee agree otherwise.

               (b) The Trustee may be removed by the Company on 30 days notice
          or upon shorter notice accepted by the Trustee.

               (c) Upon resignation or removal of the Trustee and appointment of
          a successor Trustee, all assets shall subsequently be transferred to
          the successor Trustee. The transfer shall be completed within 60 days
          after receipt of notice of resignation, removal or transfer, unless
          the Company extends the time limit.

               (d) If the Trustee resigns or is removed, a successor shall be
          appointed, in accordance with Section 11 hereof, by the effective date
          of resignation or removal under paragraph(s) (a) [or (b)] of this
          section. If no such appointment has been made, the Trustee may apply
          to a court of competent jurisdiction for appointment of a successor or
          for instructions. All expenses of the Trustee in connection with the
          proceeding shall be allowed as administrative expenses of the Trust.

Section 11.  APPOINTMENT OF SUCCESSOR.

               (a) If the Trustee resigns [or is removed] in accordance with
          Section 10(a) [or (b)] hereof, the Company may appoint any third
          party, such as a bank trust department or other party that may be
          granted corporate trustee powers under state law, as a successor to
          replace the Trustee upon. resignation or removal. The appointment
          shall be effective when accepted in writing by the new the Trustee,
          who shall

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          have all of the rights and powers of the former the Trustee, including
          ownership rights in the Trust assets. The former the Trustee shall
          execute any instrument necessary or reasonably requested by the
          Company or the successor Trustee to evidence the transfer.

               (b) The successor Trustee need not examine the records and acts
          of any prior Trustee and may retain or dispose of existing Trust
          assets, subject to Section 7 and 8 hereof. The successor Trustee shall
          not be responsible for and the Company shall indemnify and defend the
          successor Trustee from any claim or liability resulting from any
          action or inaction of any prior Trustee or from any other past event,
          or any condition existing at the time it becomes successor Trustee.

Section 12.  AMENDMENT OR TERMINATION.

               (a) This Trust Agreement may be amended by a written instrument
          executed by the Trustee and the Company. Notwithstanding the
          foregoing, no such amendment shall conflict with the terms of the Plan
          or shall make the Trust revocable after it has become irrevocable in
          accordance with Section 1(b) hereof

               (b) The Trust shall not terminate until the date on which Plan
          participants and their beneficiaries are no longer entitled to
          benefits pursuant to the terms of the Plan, "unless sooner revoked in
          accordance with Section 1(b) hereof" Upon termination of the Trust any
          assets remaining in the Trust shall be returned to the Company.

               (c) Upon written approval of participants or beneficiaries
          entitled to payment of benefits pursUant to the terms of the Plan, the
          Company may terminate this Trust prior to the time all benefit
          payments under the Plan have been made. All assets in the Trust at
          termination shall be returned to the Company.

Section 13.  MISCELLANEOUS.

               (a) Any provision of this Trust Agreement prohibited by law shall
          be ineffective to the extent of any such prohibition, without
          invalidating the remaining provisions hereof.

               (b) Benefits payable to Plan participants and their beneficiaries
          under this Trust Agreement may not be anticipated, assigned (either at
          law or in equity), alienated, pledged, encumbered or subjected to
          attachment, garnishment, levy, execution or other legal or equitable
          process.

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               (c) This Trust Agreement shall be governed by and construed in
          accordance with the laws of Texas.

Section 14.  EFFECTIVE DATE.

          The effective date of this Trust Agreement shall be its date of
execution.

          The undersigned, acting on behalf of the Company, do hereby execute
this instrument effective this ______day of _______ 19__.

                                       CAP ROCK ELECTRIC COOPERATIVE, INC.

                                       By:_________________________________
                                              David W. Pruitt

                                       Its:  Chief Executive Officer
                                             ------------------------------

                                    * * * * *

         The undersigned, as trustees under the Trust Agreement for the Cap Rock
Electric Cooperative, Inc. Supplemental Executive Deferred Compensation
Retirement Plan, hereby acknowledge receipt of an executed copy of the foregoing
agreement, and hereby consent thereto this ______ day of__________ 19__.

Attested by:

--------------------------

                                               -----------------------------
                                                     Russell E. Jones

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                                               -----------------------------
                                                     John D. Parker

                                               -----------------------------
                                                     Beverly D. Collier

                                               -----------------------------
                                                     Alfred J. Schwartz

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