Cap Rock Electric Cooperative, Inc. Equity and Membership Redemption Options Form

Summary

This agreement is between Cap Rock Electric Cooperative, Inc. and its equity holders. It allows former members to choose how they wish to redeem their equity: either by participating in a Dutch Auction for immediate partial cash redemption, or by receiving stock in the company at a future date when it converts to a stock company. If no option is selected, the default is to receive stock. The form must be signed and returned by March 31, 1999. Participation in the Dutch Auction is limited and subject to certain conditions.

EX-10.31 26 a2036361zex-10_31.txt EXHIBIT 10.31 EXHIBIT 10.31 CAP ROCK ELECTRIC COOPERATIVE, INC. EQUITY & MEMBERSHIP REDEMPTION OPTIONS Please read the following information carefully and return this form as soon as possible. -------------------- YOUR EQUITY IN CAP ROCK ELECTRIC IS -------------------- - -------------------------------------------------------------------------------- Please select one of the following three options for your equity and membership accounts. IF YOU DO NOT SELECT AN OPTION, YOU WILL RECEIVE 100% OF YOUR EQUITY VALUE IN STOCK (OR THE EQUIVALENT) AT SOME FUTURE DATE. [ ] I would like to participate in the Dutch Auction to totally redeem my equity with Cap Rock Electric Cooperative, Inc. I will accept ________% of my equity as payment in full. (NOTE: TO PARTICIPATE, YOUR BID MUST BE 70% OR LESS AND PARTICIPATION WILL BE BASED ON FIRST COME, FIRST SERVED BASIS TO THE LOWEST BIDDERS. A TOTAL MAXIMUM OF THREE MILLION DOLLARS ($3,000,000) FOR ALL BIDDERS HAS BEEN ALLOCATED FOR THIS OPTION. IF YOUR BID IS NOT ACCEPTED, YOU WILL RECEIVE THE SECOND OPTION. [ ] I would like to receive stock at some future date when Cap Rock Electric Cooperative, Inc. converts to a stock company. I understand I am guaranteed 100% of my equity value. - ------------------------------------- ------------------------ SIGNATURE OF EQUITY HOLDER DATE By choosing an option and signing this form I am directing Cap Rock Cooperative, Inc. to take certain actions with regards to my equity and membership according to the plan approved by the membership on October 20, 1998. If I do not choose an option, the option of receiving stock will be assigned to me. I am no longer be a voting member of Cap Rock Electric Cooperative, Inc. and my equity is a result of my previous membership. PLEASE COMPLETE THIS FORM AND RETURN IT IN THE ENVELOPE PROVIDED THIS FORM MUST BE POSTMARKED BY 5:00 PM, MARCH 31, 1999.