Document:

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EXHIBIT 4.2

                             SUBSCRIPTION AGREEMENT

BLUEFERE ETHANOL FUELS, INC.

Ladies and Gentlemen:

BLUEFIRE ETHANOL FUELS, INC., a Nevada corporation (the "Company" or
"BlueFire"), desires to sell up to Two Hundred and Fifty Thousand (250,000)
shares of the Company's common stock, par value $0.001 per share (the "SHARES"),
at a price of two dollars ($2.00) per Share. The undersigned ("SUBSCRIBER")
desires to purchase the number of Shares set forth on the signature page of this
Agreement (the "AGREEMENT"). Accordingly, the Company and Subscriber agree as
follows:

         1.       SALE AND PURCHASE. Subject to the terms and conditions set
                  forth in this Agreement, Subscriber hereby tenders the amount
                  set forth on the signature page of this Agreement for the
                  purchase of the number of Shares set forth on said signature
                  page.

         2.       REPRESENTATIONS, WARRANTIES, AND AGREEMENTS OF SUBSCRIBER. In
                  connection with this subscription, Subscriber hereby makes the
                  following representations, warranties, and agreements and
                  confirms the following understandings, each of which are made
                  or confirmed, as the case may be, with respect to Shares
                  subscribed for herein:

                  (a)      INVESTMENT PURPOSE Subscriber is acquiring the Shares
                           for Subscriber's own account and for investment
                           purposes only.

                  (b)      REVIEW AND EVALUATION OF INFORMATION REGARDING THE
                           COMPANY

                           (i) Subscriber is familiar with the Company's
                           financial condition and proposed operations. Without
                           limiting the foregoing, the Subscriber acknowledges
                           that the undersigned has reviewed the corporate
                           documents regarding the Company and the terms of this
                           Offering.

                           (ii) In addition to the foregoing. Subscriber
                           acknowledges that Subscriber has conducted, or has
                           been afforded the opportunity to conduct, an
                           investigation of the. Company and has been offered
                           the opportunity to ask representatives of the.
                           Company questions about the Company's financial
                           condition and proposed business and that Subscriber
                           has obtained such available information as Subscriber
                           has requested, to the extent Subscriber has deemed.
                           necessary, to permit Subscriber to fully evaluate the
                           merits and risks of an investment in the Company,
                           Representatives of the Company have answered all
                           inquiries that Subscriber has put to them concerning
                           the Company and its activities, and the offering and
                           sale of the Shares.

                  (c)      RISKS. Subscriber recognizes that the purchase of
                           Shares involves a high degree of risk and is suitable
                           only for persons of adequate financial means who have
                           no

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                           need for liquidity in this investment in that (i)
                           Subscriber may not be able to liquidate the
                           investment in the event of an emergency; (ii)
                           transferability is limited; and (iii) in the event of
                           a disposition, Subscriber could sustain a complete
                           loss of the entire investment.

                      (d)    ACCREDITED INVESTOR STATUS Subscriber represents
                             that. Subscriber is an "accredited investor" as
                             such term is defined in Rule 501 of Regulation D
                             promulgated under the Securities Act of 1933,
                             amended (the "Securities Act"). Specifically, the
                             Subscriber is (check appropriate items):

__________                 (i) A bank, savings and loan association or other
similar institution (as defined in Sections 3(a)(2) and 3(a)(5)(A) of the
Securities Act);

__________                 (ii) A broker or dealer registered pursuant to
Section 15 of the Securities Exchange Act of 1934, as amended;

__________                 (iii) An insurance company (as defined in Section
2(13) of the Securities Act);

__________                 (iv) An investment company registered under the
Investment Company Act of 1940 (the "Investment Company Act");

__________                 (v) A Small Business Investment Company licensed by
the U.S. Small Business Administration under Sections 301(c) or (d) of the Small
Business Investment Act of 1958;

__________                 (vi) Any plan established and maintained by a state,
its political subdivisions, or any agency or instrumentality of a state or its
subdivisions for the benefit to its employees, which plan has total assets in
excess of $55,000,000;

__________                 (vii) An employee benefit plan within the meaning of
the Employee Retirement Income Security Act of 1974 ("ERISA"), if the investment
decision is made by a "Plan Fiduciary", as defined in Section 3(21) of ERISA,
which is either a bank, savings and loan association, insurance company or
registered investment adviser;

__________                 (viii) An employee benefit plan within the meaning of
ERISA having total assets in excess of $55,000,000;

__________                 (ix) A self-directed employee benefit plan within the
meaning of ERISA, with investment decisions made solely by persons who are
accredited investors as defined in Rule 501(a) of Regulation D;

__________                 (x) A business development company (as defined in
Section 2(a)(48) of the Investment Company Act) or a private business
development company (as defined in Section 202(a)(22) of the Investment Advisers
Act of 1940);

                                       2

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__________                 (xi) A corporation, partnership, Massachusetts or
similar business trust, or organization described in Section 501(c)(3) of the
Internal Revenue Code of 1986, as amended (tax exempt organization), not formed
for the specific purpose of acquiring the Units having total assets in excess of
$5,000,000;

__________                 (xii) Any executive officer or director of the
Company;

__________                 (xiii) An individual having an individual net worth
or a joint net worth with spouse at the time of purchase in excess of
$1,000,000;

__________                 (xiv) An individual whose net income was in excess of
$200,000 in each of the two most recent years, or whose joint income with spouse
was in excess of $300,000 in each of those years, and who reasonably expects his
net income to reach such level in the current year;

__________                 (xv) A trust with total assets in excess of
$5,000,000 not formed for the specific purpose of acquiring the Units whose
purchase is directed by a sophisticated person (i.e., person who has such
knowledge and experience in financial and business matters that he is capable of
evaluating the merits and risks of any securities); or

__________                 (xvi) Any entity in which all of the entity owners
are "accredited investors."

                  (e)      SUBSCRIBER'S FINANCIAL EXPERIENCE Subscriber is
                           sufficiently experienced in financial and business
                           matters to be capable of evaluating the merits and
                           risks of an investment in the Company or, if he or
                           she has utilized the services of a purchaser
                           representative, together with such representative,
                           are sufficiently experienced in financial and
                           business matter to be capable of evaluating the
                           merits and risks of an investment in the Company.

                  (f)      SUITABILITY OF INVESTMENT Subscriber has evaluated
                           the merits and risks of Subscriber's proposed
                           investment in the Company, including those risks
                           particular to Subscriber's situation, and has
                           determined that this investment is suitable for
                           Subscriber. Subscriber has adequate financial
                           resources for an investment of this character, and at
                           this time Subscriber can bear a complete loss of
                           Subscriber's investment. Further, Subscriber will
                           continue to have, after making an investment in the
                           common stock of Pet Ecology Brands Inc, adequate
                           means of providing for Subscriber's current needs,
                           the needs of those dependent on Subscriber, and
                           possible personal contingencies. Subscriber
                           specifically represents that he or she has a net
                           worth at least five times greater than the investment
                           made herein.

                  (g)      EXEMPT OFFERING Subscriber understands that the sale
                           of Shares is not being registered on the basis that
                           this issuance is exempt from registration under the
                           Securities Act, and the applicable state securities
                           laws, and the rules and regulations promulgated
                           thereunder, and that reliance on such exemptions is

                                       3

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                           predicated, in part, on Subscriber's representations
                           and warranties contained in this Agreement.

                  (h)      LIMITATIONS ON DISPOSITION Subscriber understands
                           that there are substantial restrictions on the
                           transferability of the Units pursuant to the
                           Securities Act; the Shares will not be, and, except
                           as provided in Section 4 herein, Subscriber has no
                           right to require that the Shares be registered under
                           the Securities Act; and, accordingly, Subscriber may
                           have to hold the Shares for an indefinite period of
                           time until the Shares have been registered by the
                           Company or are subject to an exemption from
                           registration. Subscriber represents that Subscriber
                           can afford to hold the Shares for an indefinite
                           period of time. Subscriber further understands that
                           an opinion of counsel and other documents may be
                           required to transfer the Shares. Subscriber
                           acknowledges that the Shares shall bear the
                           following, or a substantially similar, legend:

                           "THE SHARES OF COMMON STOCK REPRESENTED BY THIS
                           CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
                           SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES
                           ACT"), OR ANY STATE SECURITIES LAWS AND NEITHER SUCH
                           UNITS NOR ANY INTEREST THEREIN MAY BE OFFERED, SOLD,
                           PLEDGED, ASSIGNED OR OTHERWISE TRANSFERRED UNLESS (1)
                           A REGISTRATION STATEMENT WITH RESPECT THERETO IS
                           EFFECTIVE UNDER THE SECURITIES ACT AND ANY APPLICABLE
                           STATE SECURITIES LAWS, OR (2) IN ACCOIWANCE WITH THE
                           PROVISIONS OF REGULATION S, OR (3) PURSUANT TO AN
                           EXEM-PTION FROM REGISTRATION UNDER THE SECURITIES
                           ACT."

                  (i)      ABSENCE OF OFFICIAL EVALUATION Subscriber understands
                           that no federal or state agency has made any finding
                           or determination as to the fairness of the terms of
                           an investment in the Company, or any recommendation
                           for or endorsement of the Shares offered hereby.

                  (j)      ADDITIONAL FINANCING Subscriber further acknowledges
                           that nothing hereunder shall preclude the Company
                           from seeking and/or procuring, additional equity
                           and/or debt financing.

                  (k)      NON-RELIANCE Subscriber is not relying on the Company
                           or any representation contained herein or in the
                           documents referred to herein with respect to the tax
                           and economic effect of Subscriber's investment in the
                           Shares.

                  (l)      ACCEPTANCE Subscriber acknowledges that. the Company
                           shall, in its sole discretion, have the right to
                           accept or reject this subscription, in whole or in
                           part, for any reason or for no reason. If
                           Subscriber's subscription is accepted by the Company,
                           Subscriber shall, and Subscriber hereby elects to,
                           execute any and all further documents necessary in
                           the opinion of the Company to complete his
                           subscription and become a shareholder of the Company.

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                  (m)      AUTHORITY TO ENTER INTO AGREEMENT Subscriber has the
                           full right, power, and authority to execute and
                           deliver this Agreement and perform Subscriber's
                           obligations hereunder.

                  (n)      ENTITY AS A SUBSCRIBER If Subscriber is a
                           corporation, partnership, trust, or other entity, (i)
                           Subscriber is authorized and qualified to become a
                           shareholder of, and is authorized to, make its
                           investment in the Company; (ii) Subscriber has not
                           been formed for the purpose of acquiring an interest
                           in the Company; (iii) Subscriber has not been in
                           existence for less than 90 days prior to the date
                           hereof; and (iv) the person signing this Agreement on
                           behalf of such entity has been duly authorized by
                           such entity to do so.

                  (o)      PROHIBITIONS ON CANCELLATION, TERMINATION,
                           REVOCATION, TRANSFERABILITY, AND ASSIGNMENT
                           Subscriber hereby acknowledges and agrees that,
                           except as may be specifically provided herein or by
                           applicable law, Subscriber is not entitled to cancel,
                           terminate, or revoke, this Agreement, and this
                           Agreement shall survive Subscriber's death or
                           disability or any assignment of Shares. Subscriber
                           further agrees that Subscriber may not transfer or
                           assign Subscriber's rights under this Agreement, and
                           Subscriber understands that, if Subscriber's
                           subscription is accepted, the transferability of
                           Shares will be restricted.

                  (p)      OBLIGATION This Agreement constitutes a valid and
                           legally binding obligation of Subscriber and neither
                           the execution of this Agreement nor the consummation
                           of the transactions contemplated herein will
                           constitute a violation of or default under, or
                           conflict with, any judgment, decree, statutes or
                           regulation of any governmental authority applicable
                           to Subscriber, or any contract, commitment, agreement
                           or restriction of any kind to which Subscriber is a
                           party or by which Subscriber's assets are bound. The
                           execution and delivery of this Agreement does not,
                           and the consummation of the transactions described
                           herein will not, violate applicable laws, or any
                           mortgage, lien, agreement, indenture, lease or
                           understanding (whether oral or written) of any kind
                           outstanding relative to Subscriber.

                  (q)      REQUIRED APPROVALS. No approval, authorization,
                           consent, order, or other action of, or filing with,
                           any person, firm or corporation or any court,
                           administrative agency or other governmental authority
                           is required in connection with the execution and
                           delivery of this Agreement by Subscriber or the
                           purchase of the Shares.

                  (r)      NO GENERAL SOLICITATION Subscriber is not subscribing
                           for Shares because of or following(,) any
                           advertisement, article, notice, or other
                           communication published in any newspaper, magazine or
                           similar media or broadcast over television or radio,
                           or presented at any seminar or meeting, or any
                           solicitation or a subscription by a person other than
                           an authorized representative of the Company.

                                       5

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         3.       REPRESENTATIONS, WARRANTIES AND AGREEMENTS OF THE. COMPANY In
                  connection with this subscription, the Company makes the
                  following representations, warranties and agreements and
                  confirms the following understandings:

                  (a)      COMPANY'S GOOD STANDING The Company is a corporation
                           organized and Validly existing under the laws of the
                           State of Nevada, and it has all corporate authority
                           and power to conduct its business and to own its
                           properties.

                  (b)      LEGAL AND OTHER PROCEEDINGS Neither the Company, nor
                           any of its affiliates or its executive officers or
                           directors (in their capacity as executive officers or
                           directors), is a party to any pending or, to the best
                           knowledge of the Company, threatened, or unasserted
                           but considered by it to be probable of assertion,
                           claim, action, suit; investigation, arbitration or
                           proceeding, or is subject to any order. judgment or
                           decree that is reasonably expected by management of
                           the Company to have, either individually or in the
                           aggregate, a material adverse effect on the condition
                           (financial or otherwise), earnings or results of
                           operations of lie Company. The Company is not, as of
                           the date hereof a party to or subject to any
                           enforcement action instituted by, or any agreement or
                           memorandum of understanding with any federal or state
                           regulatory authority restricting its operations or
                           requiring that actions be taken, and no such
                           regulatory authority has threatened any such action
                           memorandum or order against the Company and the
                           Company has not received any report of examination
                           from any federal or state regulatory agency which
                           requires that the Company address any problem or take
                           any action which has not already been addressed or
                           taken in a manner satisfactory to the regulatory
                           agency.

                  (c)      AUTHORIZATION; CONFLICT; VALID AND BINDING OBLIGATION
                           This Agreement and the transactions contemplated
                           herein have been duly and validly authorized by all
                           requisite corporate action of the Company. The
                           Company has full right, power and capacity to
                           execute, deliver and perform its obligations under
                           this Agreement. No governmental license, permit or
                           authorization and no registration or filings with any
                           court, governmental authority or regulatory agency is
                           required in connection with the Company's execution,
                           delivery and/or performance of this Agreement, other
                           than any filings required by applicable federal and
                           state securities laws. The execution, delivery and
                           performance of this Agreement, the consummation of
                           the transactions herein contemplated and the
                           compliance with the terms of this Agreement by the
                           Company will not violate or conflict with any
                           provision of the Articles of Incorporation, as
                           amended or By-laws of the Company, or any agreement,
                           instrument, law or regulation to which the Company is
                           a party or by which the Company may be bound. This
                           Agreement, upon execution and delivery by the
                           Company, will represent the valid and binding
                           obligation of the Company enforceable in accordance
                           with its terms.

                                       6

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         4.       SURVIVAL OF REPRESENTATIONS, WARRANTIES, AGREEMENTS AND
                  ACKNOWLEDGMENTS The representations, warranties, agreements,
                  and acknowledgments of the Company and Subscriber shall
                  survive the offering and purchase of Shares.

         5.       INDEMNIFICATION OF THE COMPANY Subscriber agrees to indemnify
                  and hold harmless the Company against and in respect of any
                  and all loss, liability, claim, damage, deficiency, and all
                  actions, suits, proceedings, demands, assessments, judgments,
                  costs and expenses whatsoever (including, but not limited to,
                  attorneys fees reasonably incurred in investigating,
                  preparing, or defending against any litigation commenced or
                  threatened or any claim whatsoever through all appeals)
                  arising out of or based upon any false representation or
                  warranty or breach or failure by Subscriber to comply with any
                  covenant or agreement made by it herein or in any other
                  document furnished by it in connection with this subscription.

         6.       RESET PROVISION During the 12 months following the
                  Subscriber's purchase of the Shares, if the Company raises
                  capital at a price per Share (split-protected) of less than
                  that paid by the Subscriber, then the Subscriber shall be
                  issued additional Shares such that his cost per Share is equal
                  to that of the new investors.

         7.       PIGGYBACK REGISTRATION RIGHTS If during two years from the
                  date of this Agreement, the Company files a registration
                  statement for any of its Shares, the Shares issued pursuant to
                  this Agreement shall be included in such registration
                  statement. This "piggyback" registration right is subject to
                  the right of the Company and its underwriters in any public
                  offering to reduce the number of shares proposed to be
                  registered in view of market conditions (to avoid adversely
                  affecting the Company's offering) and any state laws or
                  regulations which may prevent safe of these shares.

         8.       COOPERATION IN EFFECTING SALE OF THE SHARES Should the
                  Subscriber desire to sell the Shares subsequent to the end of
                  a one-year holding period and pursuant to an exemption from
                  registration under the Act, then the Company shall at no cost
                  to the Subscriber cooperate with the Investor in removing any
                  restrictions on the Shares; such cooperation shall include (a)
                  providing the transfer agent with written permission to remove
                  the restrictive legend and (b) furnishing the requisite
                  tradability opinion letter of counsel. If the Issuer's efforts
                  have been insufficient to have the restriction on the
                  Subscriber's shares removed within fifteen (15) days after
                  receiving a written request for such removal from the
                  Subscriber, then the Company shall indemnify the Investor
                  against any loss in the value of its Shares until such time as
                  the restriction on the Shares is removed. If the Company's
                  efforts have been insufficient to have the restriction on the
                  Shares removed within thirty (30) days after receiving a
                  written request for such removal from the Subscriber, then in
                  addition to the aforementioned indemnification, the Company
                  shall pay to the Subscriber a penalty equal to five hundred
                  dollars ($500) per day. If the Company has performed on a
                  "Reasonable Efforts basis, including written notification to
                  the Subscriber of delays that are out of the Company's
                  control, none of the above Company penalties shall be
                  enforceable.

                                       7

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         9.       MISCELLANEOUS

                  (a)      ENTIRE AGREEMENT This Agreement constitutes the
                           entire agreement between the parties hereto, and
                           supersedes all prior negotiations, letters and
                           understandings relating to the subject matter hereof

                  (b)      AMENDMENTS This Agreement may not be amended,
                           supplemented, or modified in whole or in part except
                           by an instrument in writing signed by the party or
                           parties against whom enforcement of any such
                           amendment, supplement, or modification is sought.

                  (c)      NOTICES Any notice, demand, or other communication
                           that any party hereto may be required, or may elect,
                           to give to anyone interested hereunder shall be
                           deemed given on the date initially received if
                           delivered by facsimile transmission followed by
                           registered or certified mail confirmation; on the
                           date delivered by an overnight courier service; on
                           the third business day after it is mailed if mailed
                           by registered or certified mail (return receipt
                           requested, with postage and other fees prepaid)
                           addressed to such addresses as provided herein.

                  (d)      SUCCESSORS AND ASSIGNS Except as otherwise provided
                           herein, this Agreement shall be binding upon and
                           inure to Subscriber's benefit and the benefit of
                           Subscriber's heirs, executors, administrators,
                           successors legal representatives, and permitted
                           assigns. If the undersigned is more than one person,
                           the obligation of the undersigned shall be joint and
                           several and the agreements, representations,
                           warranties, and acknowledgements herein contained
                           shall be deemed to be made by and be binding upon
                           each such person and his heirs, executors;
                           successors, administrators, legal representatives,
                           and permitted assigns.

                  (e)      CHOICE OF LAW; VENUE This Agreement will be
                           interpreted, construed, and enforced in accordance
                           with the laws of the State of California without
                           giving effect to the application of the principles
                           pertaining to conflicts of laws. Any proceeding
                           arising between the parties in any manner pertaining
                           or relating to this Agreement shall, to the extent
                           permitted by law, be held in Orange County,
                           California.

                  (f)      EFFECT OF WAIVER The failure of any party at any time
                           or times to require performance of any provision of
                           this Agreement will in no manner affect the right to
                           enforce the same. The waiver by any party of any
                           breach of any provision of this Agreement will not be
                           construed to be a waiver by any such party of any
                           succeeding breach of that provision or a waiver by
                           such party of any breach of any other provision.

                  (g)      SEVERABILITY The invalidity, illegality, or
                           unenforceability of any provision or provisions of
                           this Agreement will not affect any other provision of
                           this

                                       8

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                           Agreement, which will remain in full force and
                           effect, nor will the invalidity, illegality, or
                           unenforceability of a portion of any provision of
                           this Agreement affect the balance of such provision.
                           In the event that any one or more of the provisions
                           contained in this Agreement or any portion thereof
                           shall for any reason be held to be invalid, illegal,
                           or unenforceable in any respect, this Agreement shall
                           be reformed, construed, and enforced as if such
                           invalid, illegal, or unenforceable provision had
                           never been contained herein.

                  (h)      ENFORCEMENT Should it become necessary party to
                           institute legal action to enforce this Agreement, the
                           successful party will be awarded reasonable
                           attorneys' fees at all trial and appellate levels,
                           expenses, and costs.

                  (i)      COUNTERPARTS This Agreement may be executed in one or
                           more counterparts, each of which will be deemed an
                           original and all of which together will constitute
                           one and the same instrument.

                  (j)      FURTHER ASSURANCES The parties hereto will execute
                           and deliver such further instruments and do such
                           further acts and things as may be reasonably required
                           to carry out the intent and purposes of this
                           Agreement.

                       [SIGNATURES ON THE FOLLOWING PAGE]

                                       9

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                       ---------------------------------
                             SUBSCRIPTION AGREEMENT
                                 SIGNATURE PAGE

IN WITNESS WHEREOF, the undersigned has caused this Agreement to be executed as
of the _____ day of January, 2007.

Total Number of Shares Subscribed for: _________

Total Purchase Price per Share: $2.00

______________                                (Print Name of Spouse or Joint
                                              Tenant, if Any)

______________

(Signature of Subscriber, Custodial)          (Signature of Spouse or Joint
                                              Tenant, If Any)

______________
______________                               (Address)

____________                                  (Telephone Number)

______________
                                              (Social Security or Tax ID Number)

January _, 2006
(Date)                                        (Date)

NOTE: If two purchasers are signing, please check the manner in which the
ownership is to be legally held (the indicated manner shall be construed as if
written out in fall accordance with applicable laws or regulations):

______   JT TEN:           As joint tenants with right of survivorship
                           and not as tenants in common.

______   TEN COM:          As tenants in common.

______   TENENT:           As tenants by the entireties.

THIS IS AN IRA ACCOUNT PURCHASE. PLEASE
REGISTER THE ASSET IN IRA NAME AS LISTED.

                                       10

<PAGE>

The undersigned hereby tenders to BLUEFIRE ETHANOL FUELS, INC. the amount above
indicating the :number of Units subscribed for. Checks should be made payable to
BLUEFIRE ETHANOL FUELS, INC. Wire transfer information is available upon
request.

                         -----------------------------

APPROVED AND ACCEPTED in accordance with the terms of this Subscription
Agreement on this _____ day of January, 2007.

BLUEFIRE ETHANOL FUELS INC.

By:
              ----------------------------
Print Name:   Arnold R. Klann
              ----------------------------
Title:        President
              ----------------------------

                             SUBSCRIPTION PROCEDURES

Certain documents for investors are enclosed for use in subscribing for the
securities. As a condition to the Company accepting subscriptions, a prospective
investor must complete, execute and deliver us the following:

1.       The Subscription Agreement with the signature page appropriately
         completed; and
2.       The payment required on the Subscription Agreement.
3.       Payment for the subscription shall be made by wire transfer follows

                     PAYMENT BY WIRE TO:
                          Bank of the West
                          Green. Valley Office
                          Acct Name: BlueFire Ethanol Fuels, Inc.
                          Acct #: 266-033307
                          Routing #: 121100782

Upon receipt of good funds, the Company will immediately order the Shares
subscribed for in the Subscription Document in the name of the subscriber,
instructions to the transfer agent to send the Shares directly to the
Subscriber.

                                       11<PAGE>

EXIBIT 10.5

                                                         [BLUEFIRE ETHANOL LOGO]

______________

RE: CONSULTING AGREEMENT FOR ______________ ("CONSULTANT")
    -----------------------------------------------------

Dear ______________,

It has been a pleasure working with you over the past few months to establish
and position BlueFire Ethanol for adoption in the public financial markets. We
believe you can continue to support the strategic, financial and market
objectives for Blue Fire Ethanol, Inc ("BFRE" or the "Company") and have
prepared the following for your consideration.

We are pleased to offer the following proposal.

ENGAGEMENT: Blue Fire Ethanol, Inc., ("BFRE") agrees to engage Consultant on a
non-exclusive basis as a corporate consultant for the Company. Consultant shall
be compensated in the form of 20,000 shares of restricted stock payable upon the
execution of this agreement.

SERVICES PROVIDED BY CONSULTANT: Consultant shall prepare, review and comment on
various presentations, press releases, or other public relations documentation
as requested by the Company. Consultant shall also provide the Company with
capital market support through its network of portfolio managers, hedge funds,
brokers, market-makers, institutions and other market support professionals and
organizations. Consultant may also advise the Company from time to time, as
requested by the Company, on potential development and business relationships
that May benefit the Company's financial market positioning.

NON-EXCLUSIVE RIGHT TO IMPLEMENT BLUEFIRE'S TECHNOLOGY ON CONSULTANT'S PROIECT

Company further agrees to grant Consultant a non-exclusive right to deploy the
BlueFire Technology on Consultant's Project. Such rights of deployment shall be
based on terms

--------------------------------------------------------------------------------
          31 Musick Irvine. CA 92618 Tel 949-588-3767 Fax 949-588-3972
                        Website: www.bluefireethanol.com

<PAGE>

and conditions of similar transactions entered into or in negotiations by
BlueFire at the time Consultant desires to exercise such right.

"Consultant's Project" means two projects in the Southeastern portion of the
United States currently envisioned to be in the States of Georgia and
Mississippi.

TERM AND TERMINATION: This agreement will terminate seven (7) years from the
Effective Date (the "Term") unless renewed at the discretion of the Company or
otherwise terminated pursuant to the terms hereof. Either party, subject to 30
days written notice, may terminate this agreement with the exception of
deleterious insider Selling from the Company which may constitute immediate
termination of this Agreement. In the event of early termination, Consultant
shall be entitled to all shares delivered to that point.

DISPUTES: Any controversy, dispute, or claim between the parties relating to
this agreement shall be resolved by binding arbitration in accordance with the
rules of the American Arbitration Association.

GOVERNING LAW: THIS AGREEMENT SHALL BE INTERPRETED AND GOVEREED UNDER THE LAWS
OF THE STATE OF NEVADA.

AMENDMENTS: This is the entire agreement between the parties pertaining to its
subject matter and supersedes all prior agreements, representations, and
undertakings of the parties. No modification of this agreement shall be binding
unless agreed to in writing by the parties.

Please indicate your acceptance of the foregoing terms and conditions by
executing and returning the duplicate copy hereof.

Very truly yours,

-----------------------------
ARNOLD R. KLANN
PRESIDENT

Accepted and Agreed to this 21st day of December, 2006 (the "Effective Date".)

-----------------------------

CONSULTANT

--------------------------------------------------------------------------------
          31 Musick Irvine. CA 92618 Tel 949-588-3767 Fax 949-588-3972
                        Website: www.bluefireethanol.com

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