Item 1.01 - Entry Into a Material Definitive Agreement.

On July 21, 2009 the employment agreement between Aspen Exploration Corporation ("Aspen") and R.V. Bailey, the Company's Chief Executive Officer and Chairman of the Board, was extended through December 31, 2009. The extension is effective as of August 1, 2009. Mr. Bailey's employment agreement was entered into by the parties on March 25, 2009 (but effective as of January 1, 2009) and was to terminate on July 31, 2009. Mr. Bailey is expected to actively participate in certain on-going corporate matters such as matters necessary to finalize the sale of Aspen's California oil and gas assets, other issues stemming from that transaction, and assisting Aspen identify other potential business opportunities. The material terms of Mr. Bailey's employment agreement are described in a Current Report on Form 8-K dated March 25, 2009. Except for extending the term of the employment agreement no other material terms of Mr. Bailey's employment agreement were amended by the extension.

Item 5.02 - Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

As described in Item 1.01 above, effective August 1, 2009 the term of Mr. Bailey's employment agreement was extended through December 31, 2009.

Item 9.01 - Financial Statements and Exhibits.

(d) Exhibits 10.1 Employment Agreement Extension between Aspen Exploration Corporation and R.V. Bailey.