BioNitrogen Corp. (BION), developer of a patent-pending technology for converting renewable biomass waste into high-nitrogen urea, has finalized the purchase contract with United Suppliers, as previously announced on Feb. 2, 2012.

BioNitrogen is in the business of manufacturing nitrogen-based fertilizer products and anticipates constructing one or more manufacturing facilities in the West Texas region. United Suppliers is in the business of sales, marketing and distribution of chemical and other agricultural products in the agricultural and industrial markets.

The general terms of the manufacturing and supply agreement whereby BioNitrogen shall supply United Suppliers a minimum of 1.25 million tons of nitrogen-based fertilizer over 10 years are as follows.

BioNitrogen shall use commercially reasonable efforts to construct up to three (3) manufacturing plants in the West Texas region that will be devoted to (i) the manufacture of the nitrogen-based fertilizer using BioNitrogen's proprietary systems, and (ii) the fulfillment of the supply obligations set forth in the Agreement (each a "Production Plant" and collectively the "Production Plants").

United Suppliers agrees to purchase from BioNitrogen the nitrogen-based fertilizer products ,which shall be in standard granular form and contain at least 46 percent nitrogen content.

BioNitrogen estimates that it will have output capacity of approximately 125,000 short tons of product annually at each production plant. BioNitrogen agrees to make available to United Suppliers annually at least 125,000 short tons of the product capacity from the West Texas Plant(s).

After construction of a production plant(s), BioNitrogen shall endeavor to operate each facility seven days per week based on a 49-week year. BioNitrogen shall bulk load product five days per week for transportation by truck or rail.

The term of this agreement shall commence on the date on which BioNitrogen completes construction of its first production plant and begins accepting purchase orders (the "effective date"). Upon establishment of the effective date, the parties shall execute and deliver a commencement date letter that sets forth the effective date.

This agreement shall continue for ten (10) years thereafter. This agreement shall automatically renew for additional one (1) year terms unless it is terminated in writing by either Party at least one hundred twenty (120) days prior to the end of any term.

"As a retailer-owned company, we must continue to find ways of bringing value to our retail owners and their grower customers alike. BioNitrogen's innovative technology is the type of opportunity we like to explore to keep us and our owners ahead of the game." stated Matt Carstens, United Suppliers, vice president of crop nutrients, "We constantly look at new opportunities in these changing markets, and we are very happy with the advantages and outcome of working with BioNitrogen to achieve a long-term customer-supplier relationship that is in the best interests of all parties involved."

"We are very excited to be working with United Suppliers. They are definitely a modern leader in the plant and agricultural industry." said Frank Segredo, BioNitrogen's chief corporate development officer. "We see this as a big step in a long journey working with United Suppliers and the first of a series of production plants we intend to open next year, both domestically and internationally."