EXHIBIT
10.31


 


2003 ANNUAL CONTRACT


 


This Agreement is
entered into as of
                                              ,
2003 by and between American Crystal Sugar Company (the “Company”) and
                                                                                                                                                                                   
shareholder #                                       (the
“Shareholder”).


 


WHEREAS, the
Shareholder is a shareholder of the Company, and as such has entered into a
Five Year Agreement with the Company with regard to the growing and delivery of
sugarbeets to the Company; and


 


WHEREAS, the
parties desire to supplement the Five Year Agreement as provided therein with
regard to the 2003 sugarbeet crop.


 


NOW, THEREFORE, in
consideration of the foregoing and the mutual covenants set forth herein, the
parties agree as follows:


 


1.                                       Delivery
Obligation.  In
accordance with the terms of the Five Year Agreement, the Shareholder agrees to
prepare land, plant, cultivate, harvest and deliver the 2003 sugarbeet crop
from such number of acres and such fields as set forth on the Annual GPS
Information form to be separately completed in an electronic format by the
parties, and which shall thereafter be deemed to become an integral part of
this Agreement.  The Company shall
provide a copy of the Annual GPS Information form to the Shareholder at the
Shareholder’s request.


 


2.                                       Deductions.  The Shareholder hereby authorizes and
directs the Company to:


 


(a)                                  Deduct
an amount specified by the Red River Valley Sugarbeet Growers Association,
Inc., which amount shall not exceed 171⁄2¢ per ton, from the beet payments to be
made by the Company to the Shareholder for sugarbeets delivered for the 2003
crop; provided, that, such deduction shall not be made in the event the
Shareholder notifies the Company in writing prior to June 1, 2003 that such
deduction should not be made.  Amounts
deducted under this provision shall be paid by the Company to the Red River
Valley Sugarbeet Growers Association, Inc.; and


 


(b)                                 Deduct
such per ton amount, as may be necessary, from the beet payments to be made by
the Company to the Shareholder for sugarbeets delivered for the 2003 crop to
reimburse the Company for all costs incurred in the operation of the Truck Haul
Committee for the piling location to which the Shareholder delivers
sugarbeets.  The amount charged to the
Shareholder shall be determined on a per ton basis, reflecting a proration of
the costs based on the total tonnage delivered to the respective piling
locations.


 


3.                                       Certification.  The Shareholder hereby certifies that:


 


(a)                                  It
is a bona fide sugarbeet farm operator who will: (i) be the legal owner of the
2003 sugarbeet crop; (ii) have the majority financial interest in the 2003
crop, and (iii) have general control of the sugarbeet operations on the farm
where the 2003 crop will be grown.


 


(b)                                 It
has no agreements or understanding with third parties (i.e., owners, partners,
shareholders, etc.) providing for guaranteed cash payments.


 


4.                                       Nature of
Agreement.  This
Agreement is intended to supplement the Five Year Agreement as contemplated
therein, and except as specifically provided herein, this Agreement shall not
be deemed to amend or modify the terms of the Five Year Agreement.  This Agreement and the related Five Year
Agreement may be terminated by the Company upon ten (10) days written notice to
the Shareholder in the event the Shareholder is, as of April 1, 2003, in
default on any payment obligation owed to the Company.


 


5.                                       No Modification.  No agent of the Company has any authority to
change, waive, or modify any of the terms of this Agreement.


 


IN WITNESS WHEREOF, this Agreement has been
executed as of the date set forth above.


 


	
  AMERICAN CRYSTAL SUGAR COMPANY

  	
   

  	
  SHAREHOLDER

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Its:

  	
   

  	
   

  	
   

  	
  Its: