bluefire_8k-ex1001.htm


    Exhibit 10.1

     

    
      

      


      
        The
Future of Ethanol

      

      


      


      


      REVOLVING
LINE OF CREDIT

      
        	
                $570,000

              	
                Irvine,
      CA

              


      

       

      February
24, 2009

       

      Arkenol,
Inc. (“Lender”) hereby agrees to establish for the benefit of BlueFire Ethanol,
Inc. (“Borrower”) a revolving credit facility in the maximum principal amount of
$570,000 according to the terms below (“Line of Credit”).

      


      Repayment
Terms/Due Date:  FOR VALUE RECEIVED, the Borrower promises to pay in
full, without set off, deduction or counterclaim of any kind or nature, to
Lender, the outstanding principal balance of any amounts due under the Line of
Credit within thirty (30) days of Borrower’s  receipt of investment
financing, in the amount of at least $2,000,000 (“Due Date”).  This
financing must provide for at least $1,500,000 for general working capital
and/or general corporate purposes. Such repayment of the Line of Credit is to be
paid in lawful United States currency.

      


      Draw
Downs:  Borrower, in its sole discretion prior to the Due Date and by
written notice to Lender, may borrow, from time to time, loans from Lender up to
an aggregate maximum principal amount of $570,000.

      


      The
annual interest rate will be 6%, compounded annually, and paid
quarterly.

      


      Default
Charge: Monies not paid within thirty (30) days after the Due Date shall be
subject to, and it is agreed that Lender shall collect from Borrower, a “late
charge” in the amount of ten percent (10%) of the entire remaining unpaid
balance at the time of delinquency under the Line of Credit.

      


      Default
and Default Interest: In the event that any payment is not made within thirty
(30) days after the Due Date, the entire remaining unpaid balance shall become
immediately due and payable at the option of Lender, without notice, time being
of the essence, and the sum shall bear interest from such time until paid at an
interest rate of 20% per annum. Failure of Lender to exercise this option shall
not constitute a waiver of the right to exercise the same in the event of any
subsequent Default.

      


      Change of
Control of Borrower: Lender, at its option, may further require that all sums
due under this Line of Credit become immediately due and payable as a condition
precedent or on the closing of transaction effecting a change of control of
Borrower. Failure to exercise this option shall not constitute a waiver of any
rights of Lender contained in this Line of Credit.

      


      
        	
                BORROWER

              	
                LENDER

              
	
                Blue
      Fire Ethanol, Inc.

              	
                Arkenol,
      Inc.

              
	
                31
      Musick

              	
                53
      New Dawn

              
	
                Irvine,
      CA 92618

              	
                Irvine,
      CA 92620

              
	 
      	 
      
	 
      	 
      
	
                By:
      _________________________

              	
                By:
      _________________________

              
	 
      	 
      
	
                Its:
      _________________________

              	
                Its:
      _________________________

              
	
                Date:
      _______________________

              	
                Date:
      _______________________