EXHIBIT
10.3


 


CO-OP
COUNTRY FARMERS ELEVATOR

GRAIN HANDLER OPERATING AGREEMENT

WITH GOLDEN OVAL EGGS


 


THIS GRAIN HANDLER OPERATING
AGREEMENT is
dated as of
                            
(this Agreement) and is by and among Co-op Country Farmers Elevator, a Minnesota
cooperative association (CCFE) and Golden Oval Eggs, a Division of Midwest
Investors of Renville, Minnesota, Inc., a Minnesota cooperative association
(GOE).


 


WHEREAS, CCFE will handle and transfer to United
Mills corn supplied by the members of GOE to be processed into animal feed
required by GOE;


 


WHEREAS, GOE hereby designates CCFE as the Grain
Handler for the grain delivered by each of its farmer members;


 


NOW, THEREFORE, in consideration of the foregoing and
the respective covenants and agreements of the parties contained in the
Agreement and for other good and valuable consideration which is hereby
acknowledged the parties agree as follows:


 


DUTIES OF CO-OP COUNTRY FARMERS
ELEVATOR


 


Producer Notification


 


1. CCFE will
schedule deliveries for the month based on weekly usage.


 


•Producers
that call in first will be given preference of delivery time.


 


2. CCFE will accept
delivery of corn at any of its four locations, provided space is available.


 


Corn Delivery Alternative


 


1. CCFE will sell
corn to GOE members at $.05 per bushel over CCFE Renville published price for
the member’s scheduled delivery month. 
If the market place does not offer a carrying charge, CCFE at its discretion
may elect to have members price corn at a date specified by CCFE.


 


2. A sales contract
will be sent out at the end of the month preceding the scheduled delivery month
indicating the terms of the sale.  (This
will be the only notice sent for payment due.)


 

















 


Delivery Notification to GOE


 


1. CCFE will have
the responsibility of tracking GOE member deliveries and making notification to
GOE.  Notification will be given on the
15th of the delivery month and within 2 days following the end of each delivery
month as to the status of member deliveries.


 


2. If members have
not made sufficient deliveries, CCFE will not be obligated to deliver corn to
United Mills for feed needs.


 


3. CCFE will
reconcile GOE grain bank position and notify GOE of its position within 5 days
following each delivery month.


 


Transportation Charges


 


1. A transportation
fee for delivering corn from CCFE facilities to United Mills will be charged as
follows:  Sacred Heart and Danube
$.04/bu; Olivia $.05/bu.  The
transportation fee from locations outside of Renville will only be charged when
CCFE determines that the quantity and quality of corn that is needed at United
Mills is not available at Renville.


 


DUTIES
OF GOLDEN OVAL EGGS


 


Producer Notification


 


1. GOE members will
notify CCFE a minimum of 15 days prior to their delivery month to
schedule a delivery time.


 


2. GOE will provide
CCFE with an anticipated usage on a weekly schedule.


 


Corn Delivery Alternative


 


1. GOE members will
notify CCFE a minimum of 15 days prior to delivery time on intent to use
alternative.


 


2. Payment will be
made to CCFE by the 10th of the scheduled delivery month.


 


3.  The member will have until the end of the month
preceding their scheduled delivery month to establish a price.  If member has not established a corn price
prior the end of the month, CCFE Renville published closing price on the last
day of the month will be used.


 


4. If notification
of intent to use the delivery alternative is not made a minimum of 15 days
prior to the scheduled delivery month, the member will either have to deliver
the commitment at a time determined by CCFE or buy in the commitment at a price
to be determined by CCFE.


 


2

















 


Grain Handling Charges


 


1. GOE agrees to pay
a fee of $.05 per bushel for handling charges. 
The fee will be charged as bushels are delivered for feed.  The fees will be payable by the end of the
following month in which they were incurred.


 


2. GOE agrees to pay
CCFE a transportation fee for delivering corn from CCFE facilities to United
Mills as outlined above.


 


3. If a member of GOE
does not pay for the corn that they have contracted to purchase from CCFE by
the specified payment due date, GOE will pay CCFE for the contracted purchase
upon demand.


 


4. GOE will have
until the 10th of the month following each delivery month to sell any corn
bushels remaining in the grain bank after CCFE has delivered the quantity of
corn required by United Mills for the respective delivery month.  If the bushels are not sold, a charge of
$.03 per bushel per month will be assessed on all remaining bushels.


 


TERM OF AGREEMENT


 


1. The term of this
agreement shall be from the date of the agreement to
                                      .


 


 


	
  Coop Country Farmers Elevator

  	
   

  	
   

  	
  Golden Oval Eggs

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
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