Exhibit 10.1

SETTLEMENT AND MUTUAL RELEASE AGREEMENT

This Settlement and Mutual Release Agreement ("Settlement Agreement") is entered into by and between BION ENVIRONMENTAL TECHNOLOGIES, INC. ("BION"), BION TECHNOLOGIES, INC. ("BION TECH"), BION 3G-1 LLC ("3G-1"), (from time to time collectively referred to as "Bion Group"), and THE HAMSTRA GROUP, INC. ("Hamstra"). The parties to this Settlement Agreement are referred to herein from time to time as the "Parties," or each singularly, as a "Party." The "Effective Date" is July 14, 2026.

Recitals

WHEREAS, Hamstra is a general contractor that was hired by BION to act as the general contractor to construct, amongst other things, an Ammonia Recovery System (the "Project") at the property located at 5093 East 700 North, Fair Oaks, Newton County, Indiana (the "Property").

WHEREAS, BION TECH and 3G-1 are subsidiaries and/or affiliates of BION.

WHEREAS, BION entered into a contract for the Project with Hamstra on January 3, 2023 (the "Hamstra Contract"). The original contract price was $2,056,816.80. Through the course of the work, there were 14 change orders, which added a total of $1,063,288.29 to the contract price for a total contract price of $3,120,085.09.

WHEREAS, Hamstra completed all work required of it under its contract with BION and yet, to date, BION has failed to pay $1,494,512.72 to Hamstra under the contract. With interest, the total amount now due to Hamstra is $1,774,512.72 (the "Hamstra Balance").

WHEREAS, on April 16, 2024, Hamstra secured its lien claim on the Property when it recorded its Sworn Statement and Notice of Intention to Hold Mechanic's Lien upon the Property in the office of the Recorder for Newton County, Indiana recorded as Document Number 20240860 ML (the "Bion Ammonia Recovery Contract Lien").

WHEREAS, in the Newton County litigation, on June 20, 2025, Hamstra filed a cross-claim against BION alleging Breach of Contract against BION (Count I) and Unjust Enrichment against BION (the "Hamstra Cross-Claim").

WHEREAS, on April 14, 2025, Hamstra initiated a civil lawsuit in the U.S. District Court for the Northern District of Indiana Lafayette Division Case Number: 4:25-cv-0024 against BION, BION TECH, and 3G-1 alleging claims for Breach of Contract against BION (Count I), Foreclosure of mechanic's lien against BION, BION TECH, and 3G-1 (Count II), and Unjust Enrichment against BION, BION TECH, and 3G-1 (Count III).

WHEREAS, the Hamstra Cross-Claim and any and all claims brought by or against any Party under Case Number 56C01-2503-MF-000316 currently pending in Newton County, Indiana are hereinafter (the "State Litigation").

WHEREAS, the Hamstra Complaint and any and all claims brought by or against any Party under Case Number 4:25-cv-0024 currently pending in the Northern District of Indiana are hereinafter (the "Federal Litigation").

WHEREAS, Hamstra, BION, BION TECH, and 3G-1 have determined it would be beneficial to resolve their disputes rather than continue in protracted litigation and therefore have mutually agreed upon the following settlement terms and conditions set forth herein.

NOW THEREFORE, in consideration of the foregoing Recitals and the mutual promises and covenants set forth herein and for good and valuable consideration, the sufficiency of which the Parties hereby acknowledge, and intending to be legally bound hereby, the Parties agree as follows:

directors, parents, subsidiaries, affiliates, divisions, related entities, employees, attorneys, agents, insurers, sureties, representatives, predecessors, successors and assigns (collectively "The Hamstra Released Parties") from and against any and all claims, expenses, costs, obligations, losses, damages, demands, debts, assessments, suits, causes of action, fees or liabilities (including, without limitation, attorneys' fees and costs) of any kind, whether of a legal or equitable nature and whether known or unknown, suspected or unsuspected, accrued or unaccrued, and asserted or which were asserted or which could have been asserted against the Hamstra Released Parties, including without limitation in the State Litigation and the Federal Litigation, with the sole exception of the claims set forth in Paragraph 6 of this Settlement Agreement.

dismissing without prejudice all claims asserted in the Federal Litigation and striking any court dates.

Hamstra will ensure the Hamstra/Dilling Agreement, whereby any and all litigation and lien claims between Hamstra and Dilling Group, Inc. arising from or related to the Project shall be dismissed without prejudice, is executed and properly recorded.

If, upon maturity of the Note, BION has complied with all the terms of the Note, Hamstra shall enter Orders dismissing the State and Federal Litigation with prejudice.

[Signature page to follow.]

IN WITNESS WHEREOF, and intending to be legally bound hereby, the Parties, through their duly authorized representatives, have executed this Settlement Agreement as of the Effective Date.

[HAMSTRA GROUP, INC.]

By: /s/ Greg Hamstra

Name:_Greg Hamstra

Title: President

[BION ENVIRONMENTAL TECHNOLOGIES, INC., BION TECHNOLOGIES, INC., and BION 3G-1 LLC]

By: /s/ Stephen C. Scott

Name: Stephen C. Scott

Title: CEO

EXHIBIT A

FORM OF CONVERTIBLE PROMISSORY NOTE

[FOLLOWS THIS COVER PAGE]

Exhibit 10.2

THIS NOTE AND THE SECURITIES ISSUABLE UPON THE CONVERSION HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR UNDER THE SECURITIES LAWS OF ANY STATES IN THE UNITED STATES. THESE SECURITIES ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY NOT BE TRANSFERRED OR RESOLD EXCEPT AS PERMITTED UNDER THE ACT AND THE APPLICABLE STATE SECURITIES LAWS, PURSUANT TO REGISTRATION OR EXEMPTION THEREFROM.

SECURED CONVERTIBLE PROMISSORY NOTE

Date of Note: July 14, 2026

Principal Amount: $1,774,512.72

For value received Bion Environmental Technologies, Inc., a Colorado corporation (the “Company”), promises to pay to The Hamstra Group, Inc., an Indiana corporation, or such party’s assigns (the “Holder”) the principal amount of One Million Seven Hundred Seventy Four Thousand Five Hundred Twelve and 72/100 Dollars ($1,774,512.72) with interest on the outstanding principal amount at the rate of 10% per annum, compounded monthly. Interest shall commence with the date of this Note and shall continue on the outstanding principal amount until paid in full or converted. Interest shall be computed on the basis of a year of 365 days for the actual number of days elapsed. All unpaid interest and principal shall be due and payable on December 31, 2026 (the “Maturity Date”). In addition to the interest referenced above, and in the Event of Default, additional interest will accrue from the date of the Event of Default at the rate equal to the lower of 18% per annum or the highest rate permitted by law.

(a)  Payments. All payments of interest and principal shall be in lawful money of the United States of America. All payments shall be applied first to accrued interest, and thereafter to principal.

(b)     Prepayment; Repayment. Notwithstanding anything to the contrary, except for pursuant to Sections 2(a), 2(b) and 2(c) below or upon the Maturity Date or acceleration of the Note upon an Event of Default, the Company may not prepay or repay this convertible promissory note (the “Note”) without the consent of the Holder, which may be withheld in the Holder’s sole and exclusive discretion.

(c)  Most Favored Nations. If, while this Note is outstanding, the Company issues or enters into any new loan, credit facility or indebtedness for borrowed money, including other indebtedness of the Company convertible into equity securities of the Company, or amends any loan, credit facility or indebtedness for borrowed money, including any existing indebtedness convertible into equity securities of the Company, and such newly issued or amended loan, credit facility or indebtedness would have material terms that are more favorable, from the perspective of the Holder (the “Other Debt”), than the terms of this Note, then the Company will provide the Holder with prompt written notice thereof, together with a copy of all documentation relating to the Other Debt and, upon request of the Holder, any additional information related to the Other Debt as may be reasonably requested by the Holder. The Company will provide such notice to the Holder promptly (and in any event within 30 days) following the issuance of the Other Debt. In the event the Holder determines that the terms of the Other Debt are preferable to the terms of this Note, the Holder will notify the Company in writing within five days following the Holder’s receipt of such notice from the Company. Promptly after receipt of such written notice from the Holder, but in any event within 30 days, the Company will amend and restate this Note to include such favorable terms present in the Other Debt as selected by the Holder.

Holder acknowledges that any documentation or information provided to Holder pursuant to Section 1(c) may constitute material non-public information regarding the Company. Holder agrees to treat all such documentation and information as confidential and shall not disclose, publish, or otherwise release such information to any third party, except as may be required by applicable law or legal process.

(d)   Collateral This Note is secured by the building and all equipment located at 5093 East 700 North, Fair Oaks, Newton County, Indiana (the "Collateral"), but excludes, and the Company makes no representation of ownership of the underlying land. The Company shall execute and deliver to the Holder such security agreements, financing statements, and other instruments as may be reasonably necessary to perfect the Holder's security interest in the Collateral. In the Event of Default, the Company stipulates that it will not contest, oppose, or otherwise interfere with any action taken by the Holder to recover or enforce its rights against the Collateral, and the Company waives any defenses to such enforcement.

(i)     Partial Repayment upon a Qualified Financing. In the event that the Company issues and sells shares of its common stock (“Common Stock”), to investors (the “Investors”) while this Note remains outstanding and prior to the Maturity Date in a bona fide sale to a third party or third parties with total proceeds to the Company of not less than $2,000,000 (excluding the conversion of the Note or other convertible securities issued for capital raising purposes (e.g., Simple Agreements for Future Equity)) (a “Qualified Financing”), then the Company shall pay Holder, in cash, an amount equal to $653,915.00 to be applied first against accrued interest, and remainder if any to principal. Such payment shall be made within five (5) days following the consummation of the Qualified Financing and receipt of funds.

(ii)    Conversion of Balance upon a Qualified Financing. In the event that the Company issues and sells shares of its Common Stock to Investors while this Note remains outstanding and prior to the Maturity Date in a Qualified Financing (as defined above), then the outstanding principal amount of this Note and any unpaid accrued interest shall automatically convert in whole without any further action by the Holder into Common Stock of the Company sold in the Qualified Financing at a conversion price per share equal to the price paid for the Common Stock of the Company by the Investors in the Qualified Financing. Within five (5) days following the consummation of the Qualified Financing, the Company shall give the Holder written notice of the consummation of the Qualified Financing and of the material terms thereof, and number of shares of Common Stock of the Company into which the outstanding principal amount of this Note and any unpaid accrued interest converted.

(b)     Optional Conversion at non-Qualified Financing. In the event the Company consummates one or more equity financings while this Note remains outstanding and prior to the Maturity Date pursuant to which it sells shares of its capital stock in a transaction or transactions for capital raising purposes that does not constitute a Qualified Financing having aggregate total proceeds of not less than $1,000,000 (“Threshold”), then the Company shall give the Holder written notice of the equity financing which causes such aggregate Threshold to be equaled or exceeded and the material terms thereof within five (5) days of the consummation of such equity financing and the Holder shall have the option (but not the obligation) acting in the Holder’s sole and exclusive discretion to treat such equity financing as a Qualified Financing on the same terms set forth herein and upon notice to the Company thereby convert the outstanding principal amount of this Note and any unpaid accrued interest into the shares of capital stock issued in such equity financing on the same terms and conditions as would otherwise apply to

conversion of this Note into shares of Common Stock of the Company in a Qualified Financing as set forth in Section 2(a) hereof.

(c)   Change of Control. If the Company consummates a Change of Control (as defined below) while this Note remains outstanding and prior to the Maturity Date, then the Company shall repay the Holder in cash within five (5) days after consummation of such Change of Control in an amount equal to the outstanding principal amount of this Note plus any unpaid accrued interest on the original principal; provided, however, that upon the written election of the Holder acting in the Holder’s sole and exclusive discretion made not less than five (5) days prior to the Change of Control, the Company shall convert the outstanding principal balance of this Note and any unpaid accrued interest into shares of the common stock of the Company at a conversion price per share equal to the average of the closing price of the Company’s common stock during the 5 consecutive Trading Days prior to the date on which the Company publicly discloses such a transaction, and the 5 consecutive Trading Days after the disclosure (but not more than twenty five cents per share) (“Applicable Conversion Price”). In the event that the Company engages in a stock split, stock dividend or similar transaction the Applicable Conversion Price shall be proportionately adjusted downward to reflect such stock split, stock dividend or similar transaction. For purposes of this Note, a “Change of Control” means (i) a consolidation or merger of the Company with or into any other corporation or other entity or person, or any other corporate reorganization, other than any such consolidation, merger or reorganization in which the shares of capital stock of the Company immediately prior to such consolidation, merger or reorganization continue to represent a majority of the voting power of the surviving entity immediately after such consolidation, merger or reorganization; (ii) any transaction or series of related transactions to which the Company is a party in which in excess of 50% of the Company’s voting power is transferred; or (iii) the sale or transfer of all or substantially all of the Company’s assets, or the exclusive license of all or substantially all of the Company’s material intellectual property. The Company shall give the Holder written notice of a Change of Control not less than thirty (30) days prior to the anticipated date of consummation of the Change of Control.

(d)   Procedure for Conversion. In connection with any conversion of this Note into capital stock, the Holder shall surrender this Note to the Company.

(e)    Stock Certificates. The Company will deliver to the Holder, or Holder’s authorized designee, no later than five (5) days after the date of conversion of this Note, a certificate or certificates (which certificate(s) shall be free of restrictive legends and trading restrictions if the shares of common stock (or other capital stock, as applicable) of the Company underlying the portion of the Note being converted are eligible under a resale exemption pursuant to Rule 144(b)(1)(ii) and Rule 144(d)(1)(ii) of the Securities Act) representing the number of shares of common stock (or other capital stock, as applicable) being acquired upon the conversion of this Note. In lieu of delivering physical certificates representing the shares of common stock (or other capital stock, as applicable) of the Company issuable upon conversion of this Note, provided the Company's transfer agent (“Transfer Agent”) is participating in the Fast Automated Securities Transfer (“FAST”) system program of the Depository Trust Company (“DTC”), the Company shall instead use commercially reasonable efforts to cause its transfer agent to electronically transmit such shares issuable upon conversion to the Holder (or its designee), by crediting the account of the Holder’s (or such designee’s) broker with DTC through its Deposits and Withdrawal at Custodian (“DWAC”) program (provided that the same time periods herein as for stock certificates shall apply).

(f)     Charges and Expenses. Issuance of common stock (or other capital stock, as applicable) to the Holder, or any of its assignees, upon the conversion of this Note shall be made without charge to the Holder for any issuance fee, transfer tax, legal and related charges, postage/mailing charge or any other expense with respect to the issuance of such common stock. Company shall pay all Transfer Agent fees incurred from the issuance of the common stock (or other capital stock, as applicable) to Holder, as well as any and all other fees and charges required by the Transfer Agent as a condition to effectuate

such issuance. Any such fees or charges, as noted in this Section that are paid by the Holder (whether from the Company’s delays, outright refusal to pay, or otherwise), will be automatically added to the principal amount of the Note and tack back to the Effective Date for purposes of Rule 144.

(g)   Piggyback Registration Rights. The Company shall include on the next registration statement (other than a registration statement on Form S-4 or Form S-8) that the Company files with the Securities and Exchange Commission (the “SEC”) (or on the subsequent registration statement if such registration statement is withdrawn) all shares issuable upon conversion of this Note, unless the shares issuable upon conversion of the Note may be sold under Rule 144 without any volume limitation and the Company shall pay all registration expenses arising from or incidental to the performance of, or compliance with, this Agreement.

(h)   Indemnification. To the extent permitted by law, and in addition to any other rights of the Holder under applicable law or this Agreement, the Company will indemnify, defend and hold harmless the Holder, the shareholders, directors, managers, officers, employees and agents of the Holder, any underwriter (as defined in the Securities Act) for the Holder and each person, if any, who controls (within the meaning of Section 15 of the Securities Act or Section 20 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) the Holder or such underwriter from and against any and all losses, claims, damages and liabilities, joint or several, (including, without limitation, reasonable legal fees and other expenses incurred in connection with any suit, or proceeding or any claim asserted) to which any of the foregoing may become subject, under the Securities Act, the Exchange Act, any state securities laws, or otherwise, based upon or arising out of any untrue statement or alleged untrue statement of a material fact in a registration statement, any prospectus or omission or alleged omission to state therein any material fact required to be stated therein or necessary to make the statements therein not misleading; provided, however, that the Company shall have no obligation to indemnify or hold harmless such persons in any such case for any such loss, claim, damage, liability or action for any materially untrue statement of the Holder that was provided by the Holder to the Company for use (and used by the Company in conformity therewith and in reasonable reliance thereon) in the preparation of such registration statement, prospectus, or amendment or supplement thereto.

3.   Representations and Warranties of the Company. The Company hereby represents and warrants to the Holder as of the date the Note was issued and at all times while this Note is outstanding as follows:

(a)   Organization, Good Standing and Qualification. The Company is a corporation duly organized, validly existing and in good standing under the laws of the State of Colorado. The Company has the requisite corporate power to own and operate its properties and assets and to carry on its business as now conducted and as presently proposed to be conducted. The Company is duly qualified and is authorized to do business and is in good standing as a foreign corporation in all jurisdictions in which the nature of its activities and of its properties (both owned and leased) makes such qualification necessary.

(b)   Corporate Power. The Company has all requisite corporate power to issue this Note and to carry out and perform its obligations under this Note. The Company’s Board of Directors (the “Board”) has approved the issuance of this Note based upon a reasonable belief that the issuance of this Note is appropriate for the Company after reasonable inquiry concerning the Company’s financing objectives and financial situation.

(c)   Authorization. All corporate action on the part of the Company, the Board and the Company’s stockholders necessary for the issuance and delivery of this Note has been taken. This Note constitutes a valid and binding obligation of the Company enforceable in accordance with its terms, subject to laws of general application relating to bankruptcy, insolvency, the relief of debtors and, with respect to

rights to indemnity, subject to federal and state securities laws. Any securities issued upon conversion of this Note (the “Conversion Securities”), when issued in compliance with the provisions of this Note, will be validly issued, fully paid, nonassessable, free of any liens or encumbrances and issued in compliance with all applicable federal and securities laws.

(d)   Governmental Consents. All consents, approvals, orders or authorizations of, or registrations, qualifications, designations, declarations or filings with, any governmental authority required on the part of the Company in connection with issuance of this Note has been obtained.

(e)   Compliance with Laws. The Company is not in violation of any applicable statute, rule, regulation, order or restriction of any domestic or foreign government or any instrumentality or agency thereof in respect of the conduct of its business or the ownership of its properties.

(f)   Compliance with Other Instruments. The Company is not in violation or default of any term of its articles of incorporation or bylaws, or of any provision of any mortgage, indenture or contract to which it is a party and by which it is bound or of any judgment, decree, order or writ. The execution, delivery and performance of this Note will not result in any such violation or be in conflict with, or constitute, with or without the passage of time and giving of notice, either a default under any such provision, instrument, judgment, decree, order or writ or an event that results in the creation of any lien, charge or encumbrance upon any assets of the Company or the suspension, revocation, impairment, forfeiture or nonrenewal of any material permit, license, authorization or approval applicable to the Company, its business or operations or any of its assets or properties. Without limiting the foregoing, the Company has obtained all waivers reasonably necessary with respect to any preemptive rights, rights of first refusal or similar rights, including any notice or offering periods provided for as part of any such rights, in order for the Company to consummate the transactions contemplated hereunder without any third party obtaining any rights to cause the Company to offer or issue any securities of the Company as a result of the consummation of the transactions contemplated hereunder.

(g)   No “Bad Actor” Disqualification. The Company has exercised reasonable care to determine whether any Company Covered Person (as defined below) is subject to any of the “bad actor” disqualifications described in Rule 506(d)(1)(i) through (viii), as modified by Rules 506(d)(2) and (d)(3), under the Act (“Disqualification Events”). To the Company’s knowledge, no Company Covered Person is subject to a Disqualification Event. The Company has complied, to the extent required, with any disclosure obligations under Rule 506(e) under the Act. For purposes of this Note, “Company Covered Persons” are those persons specified in Rule 506(d)(1) under the Act; provided, however, that Company Covered Persons do not include (a) the Holder, or (b) any person or entity that is deemed to be an affiliated issuer of the Company solely as a result of the relationship between the Company and the Holder.

(h)   Offering. The offer, issue and sale of this Note and the Conversion Securities (collectively, the “Securities”) are and will be exempt from the registration and prospectus delivery requirements of the Act, and have been registered or qualified (or are exempt from registration and qualification) under the registration, permit or qualification requirements of all applicable state securities laws.

(i)  Use of Proceeds. The Company shall use the proceeds of this Note solely for the operations of its business, and not for any personal, family or household purpose.

(j)   Broker’s Fees. No agent, broker, investment banker, person or firm acting on behalf of or under the authority of the Company hereto is or will be entitled to any broker’s or finder’s fee or any other commission directly or indirectly in connection with the transactions contemplated herein. In addition, and not by way of limitation, the Company further agrees to indemnify, defend and hold harmless the

Holder and the shareholders, directors, managers, officers, employees and agents of the Holder for any claims, losses or expenses incurred by the Holder or any of such other persons as a result of the representations and warranties of the Company being untrue.

(a)   If there shall be any Event of Default (as defined below) hereunder, at the option and upon the declaration of the Holder and upon written notice to the Company (which election and notice shall not be required in the case of an Event of Default under subsections (ii) through (xi) below), this Note shall accelerate and all principal and unpaid accrued interest shall become immediately due and payable. The occurrence of any one or more of the following shall constitute an “Event of Default”:

(i)  The Company fails to timely pay any of the principal amount due under this Note on the date the same becomes due and payable or any unpaid accrued interest or other amounts due under this Note on the date the same becomes due and payable or breaches any representation, warranty or obligation of the Company under this Note or under any other agreement to which the Company and the Holder are parties;

(ii)   The Company files any petition or action for relief under any bankruptcy, reorganization, insolvency or moratorium law or any other law for the relief of, or relating to, debtors, now or hereafter in effect, or makes any assignment for the benefit of creditors or takes any corporate action in furtherance of any of the foregoing;

(iii)   An involuntary petition is filed against the Company (unless such petition is dismissed or discharged within 60 days under any bankruptcy statute now or hereafter in effect, or a custodian, receiver, trustee or assignee for the benefit of creditors (or other similar official) is appointed to take possession, custody or control of any property of the Company);

(iv)     any failure of the Company to satisfy its “filing” obligations under the Exchange Act and the rules and guidelines issued by OTC Markets News Service, OTCMarkets.com and their affiliates;

(v)   failure of the Company to remain in good standing under the laws of the State of Colorado or any other jurisdiction where the Company is registered as a foreign corporation;

(vi)    failure of Company’s common stock to maintain a closing bid price in the primary exchange on which the Company’s common stock is traded or quoted (“Principal Market”) for more than three consecutive days on which there is trading or quoting for any security on the Principal Market (“Trading Days”);

(vii) any delisting from a Principal Market for any reason;

(viii)    failure by Company to pay any of its Transfer Agent fees or to maintain a Transfer Agent of record;

(ix) failure by Company to notify Holder of a change in Transfer Agent within 24 hours of such change;

(x) any trading suspension imposed by the SEC under Sections 12(j) or 12(k) of the Exchange Act; or

(xi)    failure by the Company to meet all requirements necessary to satisfy the availability of Rule 144 to the Holder or its assigns, including but not limited to the timely fulfillment of its filing requirements as a fully-reporting issuer registered with the SEC, requirements for XBRL filings, and requirements for disclosure of financial statements on its website.

(b) In the event of any Event of Default hereunder, the Company shall pay all reasonable attorneys’ fees, court costs and other expenses incurred by the Holder in enforcing and collecting this Note.

(a) Waivers. The Company hereby waives demand, notice, presentment, protest and notice of dishonor.

(b)   Transfers of Note. This Note may be transferred by the Holder provided such transfer is permitted by applicable state and federal securities laws. Thereupon, this Note shall be reissued to, and registered in the name of, the transferee, or a new Note for like principal amount and interest shall be issued to, and registered in the name of, the transferee. Interest and principal shall be paid solely to the registered holder of this Note.

(c)   Amendment and Waiver. Any term of this Note may only be amended or waived with the written consent of the Company and the Holder.

(d)   Governing Law. This Note shall be governed by and construed under the laws of the State of Indiana, as applied to agreements among Indiana residents, made and to be performed entirely within the State of Indiana, without giving effect to conflicts of laws principles.

(e)   Jurisdiction and Venue. Any dispute or claim arising to or in any way related to this Note or the rights and obligations of each of the parties shall be brought only in the state courts located in Jasper County, Indiana or in the federal courts located in the United States District Court for the Northern District of Indiana (Hammond Division).

(f)    No Jury Trial. The Company hereto knowingly and voluntarily waives any and all rights it may have to a trial by jury with respect to any litigation based on, or arising out of, under, or in connection with, this Note.

(g)   Binding Agreement. The terms and conditions of this Note shall inure to the benefit of and be binding upon the respective successors and assigns of the parties. Nothing in this Note, expressed or implied, is intended to confer upon any third party any rights, remedies, obligations or liabilities under or by reason of this Note, except as expressly provided in this Note.

(h)    Counterparts; Manner of Delivery. This Note may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Counterparts may be delivered via facsimile, electronic mail (including pdf or any electronic signature complying with the U.S. federal ESIGN Act of 2000, Uniform Electronic Transactions Act or other applicable law) or other transmission method and any counterpart so delivered shall be deemed to have been duly and validly delivered and be valid and effective for all purposes.

(i)  Titles and Subtitles. The titles and subtitles used in this Note are used for convenience only and are not to be considered in construing or interpreting this Note.

(j)    Notices. All notices required or permitted hereunder shall be in writing and shall be deemed effectively given: (i) upon personal delivery to the party to be notified, (ii) when sent by confirmed electronic mail or facsimile if sent during normal business hours of the recipient, if not, then on the next business day, (iii) five days after having been sent by registered or certified mail, return receipt requested, postage prepaid, or (iv) one day after deposit with a nationally recognized overnight courier, specifying next day delivery, with written verification of receipt. All communications to a party shall be sent to the party’s address set forth on the signature page hereto or at such other address(es) as such party may designate by 10 days’ advance written notice to the other party hereto. A copy of any notice to the Holder shall be sent to Roetzel & Andress, LPA, 70 West Madison Street, Suite 3000, Chicago, Illinois 60602, Attn: Edward L. Filer, e-mail: [email protected].

(k)   Delays or Omissions. It is agreed that no delay or omission to exercise any right, power or remedy accruing to the Holder, upon any breach or default of the Company under this Note shall impair any such right, power or remedy, nor shall it be construed to be a waiver of any such breach or default, or any acquiescence therein, or of or in any similar breach or default thereafter occurring; nor shall any waiver of any single breach or default be deemed a waiver of any other breach or default theretofore or thereafter occurring. It is further agreed that any waiver, permit, consent or approval of any kind or character by the Holder of any breach or default under this Note, or any waiver by the Holder of any provisions or conditions of this Note, must be in writing and shall be effective only to the extent specifically set forth in writing and that all remedies, either under this Note, or by law or otherwise afforded to the Holder, shall be cumulative and not alternative.

(l)     Entire Agreement. This Note constitutes the full and entire understanding and agreement between the parties with regard to the subject matter hereof, and no party shall be liable or bound to any other party in any manner by any representations, warranties, covenants and agreements except as specifically set forth herein.

(m)    Delivery of Process by the Holder to the Company. In the event of an action or proceeding by the Holder against the Company, and only by the Holder against the Company, service of copies of summons and/or complaint and/or any other process that may be served in any such action or proceeding may be made by the Holder via U.S. Mail, overnight delivery service such as FedEx or UPS, email, fax, or process server, or by mailing or otherwise delivering a copy of such process to the Company at its last known attorney as set forth in its most recent SEC filing.

[Signature page follows]

The parties have executed this Convertible Promissory Note as of the date of this Note.

Bion Environmental Technologies, Inc.

By: /s/ Stephen Craig Scott    

Name: Stephen Craig Scott

Its: Chief Executive Officer

Address:

Bion Environmental Technologies, Inc.

9 East Park Court

Old Bethpage, New York 11804

Attn: Stephen Craig Scott, Chief Executive Officer Email: [email protected]

The Hamstra Group, Inc.

By: /s/ Greg Hamstra     

Name: Greg Hamstra

Its: President

Address:

The Hamstra Group, Inc.

12028 N. CR 200 W

Wheatfield, Indiana 46392

Attn: Mitch Van Kley, Executive VP & CFO

Email: [email protected]

[Signature Page to Convertible Promissory Note]

Exhibit 99.1

Bion Announces Settlement of Fair Oaks Litigation

July 14, 2026. Billings, Montana. Bion Environmental Technologies, Inc. (OTC QB: BNET), a leader in advanced organic fertilizers produced from manure and other organic waste, announced it has reached an agreement to dismiss all outstanding litigation related to the construction of its Fair Oaks facility.

Bion has reached a settlement with Hamstra Builders, Inc., the General Contractor for the Fair Oaks demonstration and optimization facility that was completed in July 2023. The settlement, along with a separate agreement between Hamstra and Dilling Group, a subcontractor, results in the dismissal by both parties of all mechanics liens and litigation related to the construction of the Ammonia Recovery System at Fair Oaks. The first lien was filed in March 2024 and litigation commenced in April 2025; details have been disclosed in various SEC 8-K’s, 10-Q’s and -K’s, since that time.

Bion will issue Hamstra a convertible promissory note that will include a cash payment at the time of a future Bion financing and conversion of the balance into Bion common stock at the price of that financing (to be determined). Details of the note and agreement can be found in Bion’s 8-k, dated July 14, 2026.

Craig Scott said, “We are very happy to close this chapter with a good resolution for all concerned. The Fair Oaks litigation was among the largest challenges we inherited two years ago. It was critical we get it resolved – and get it resolved fairly – as we move forward on our path to commercialization.

Along with the Giveback and Settlement Agreements with Bion’s former principals and heirs, this largely completes the cleanup of our capital structure, removes the uncertainty of the litigation, and readies us for recapitalization and growth. We are grateful to the Hamstra team for recognizing that this gives both of us the best chance of success. We look forward to being able to welcome them as shareholders.”

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About Bion

Bion’s patented Ammonia Recovery System (ARS) produces advanced organic and low-carbon soluble nitrogen fertilizers from the volatile ammonia released when biogas is generated from animal manure and other organic waste, including food and food processing. Recovering this valuable resource, instead of allowing it to escape to the environment, prevents serious air and water pollution, produces clean water for reuse or discharge, and improves the economics of organic farming, biogas, and livestock production. Bion’s platform fills a critical gap in circular agriculture models and low-carbon and low-impact fuels and food production. https://bionenviro.com.

This material includes forward-looking statements based on management's current reasonable business expectations. In this document, the words and phrases ‘chance’, ‘will’, ‘look forward (to)’ and similar expressions identify certain forward-looking statements. These statements are made in reliance on the Private Securities Litigation Reform Act, Section 27A of the Securities Act of 1933, as amended. There are numerous risks and uncertainties that could result in actual results differing materially from expected outcomes. Potential investors are urged to carefully review Bion’s SEC filings, including its Forms 10-K and 10-Q and the Risk Factors therein.

Contact Information:

Craig Scott, CEO

[email protected]

(406) 281-8178 (direct)