EXHIBIT 10.1

                             EXTENSION AGREEMENT

THIS EXTENSION AGREEMENT is executed effective September 30, 2009 by, between
and among Bion Environmental Technologies, Inc. ('Bion') (collectively Bion,
together with the other subsidiaries of Bion, are sometimes referred to as
the 'Bion Companies') and Bright Capital, Ltd. ('BC') and Dominic Bassani
('DB').

WHEREAS BC has provided the services of DB to the Bion Companies since 2000
and most recently pursuant to the agreement of March 2005, as extended
('Existing Agreement');

WHEREAS Bion wishes to receive the services of DB on a long term basis and
BC & DB desire to provide such services to the Bion Companies upon the terms
and conditions set forth in this Agreement;

AND WHEREAS Bion, DB & BC are executing this Extension Agreement with the
intention that certain open matters specified below be resolved and
incorporated herein on or before December 31, 2009;

NOW THEREFORE, in consideration of the mutual covenants and conditions
hereinafter set forth, the Bion Companies, BC and DB do hereby agree as set
forth below upon the terms and conditions set forth in the following
paragraphs:

     1)  Pursuant to this Extension Agreement, DB shall continue to provide
his services to the Bion Companies through BC as he has under the Existing
Agreement ( presently  holding the  positions of Vice President-Special
Projects and Strategic Planning of Bion's Bion Services Group, Inc. & Bion
Integrated Projects Group, Inc. subsidiaries, which positions may be changed
from time-to-time by action of the Board of Directors ('BOD') of Bion with
the written consent of DB) on a 'full-time' basis (as defined below) for a
period of three (3) years commencing October 1, 2009 and running through
September 30, 2012; and, for one (1) year thereafter, on a 'half-time' basis
(as defined below); and  for an additional one (1) year period ('Additional
Period'), with the written consent of DB; (for purposes of this Extension
Agreement, the period from October 1, 2009 through the end of the Additional
Period, if any, shall be the 'Term').

     2)  Compensation:

          a)  Cash compensation from the Bion Companies to BC for the
services of DB provided by BC shall continue at an annual rate of $312,000
for the entire term of this Extension Agreement (with