Document:

Form Directors Agreement

    Exhibit
      10.1

     

    BOARD
      OF DIRECTORS  - RETAINER AGREEMENT

     

    This
      agreement made as of the 1st
      day of
      May, 2006 between BlueFire Ethanol, Inc., with its principal place of business
      at 18201 Von Karman Ste 550, CA 92612 (“BlueFire”) and ________________, with an
      address of ____________________________________, provides for director services,
      according to the following:

     

    
      
        	I.	Services
                Provided

      

    

        

    BlueFire
      agrees to engage --_________________ to serve as a member of the Board of
      Directors (the “Director”) and to provide those services required of a director
      under BlueFire’s Articles of Incorporation and Bylaws (“Articles and Bylaws”),
      as both may be amended from time, to time and under the General Corporation
      Law
      of Delaware, the federal securities laws and other state and federal laws and
      regulations, as applicable.

     

    
      
        
          	II.	Nature of
                  Relationship

        

      

    

     

    The
      Director is an independent contractor and will not be deemed an employee of
      BlueFire for purposes of employee benefits, income tax withholding, F.I.C.A.
      taxes, unemployment benefits or otherwise.  The Director shall not enter
      into any agreement or incur any obligations on BlueFire’s behalf.

     

    BlueFire
      will supply, at no cost to the Director:  periodic briefings on the
      business, director packages for each board and committee meeting, copies of
      minutes of meetings and any other materials that are required under BlueFire’s
      Articles and Bylaws or the charter of any committee of the board on which the
      director serves and any other materials which may, by mutual agreement, be
      necessary for performing the services requested under this
      contract.

    
       

      
        
          
            	III.	Director’s
                    Warranties

          

        

      

    

     

    The
      Director warrants that no other party has exclusive rights to his services
      in
      the specific areas described and that the Director is in no way compromising
      any
      rights or trust between any other party and the Director or creating a conflict
      of interest.  The Director also warrants that no other agreement will be
      entered into that will create a conflict of interest with this agreement. 
The Director further warrants that he will comply with all applicable state
      and
      federal laws and regulations, as applicable, including Sections 10 and 16 of
      the
      Securities and Exchange Act of 1934.

     

    Throughout
      the term of this agreement and for a period of six months thereafter, the
      Director agrees he will not, without obtaining BlueFire’s prior written consent,
      directly or indirectly engage or prepare to engage in any activity in
      competition with any BlueFire business or product, including products in the
      development stage, accept employment or provide services to (including service
      as a member of a board of directors), or establish a business in competition
      with BlueFire.

     

    
      
        
          
            
              	IV.	Compensation

            

          

        

      

    

         
      

    A. 
      Retainer

     

    BlueFire
      shall pay the Director a nonrefundable retainer of $5,000 per year during the
      term of this agreement (prorate for the first year) to provide the services
      described in Section I which shall compensate him for all time spent preparing
      for, traveling to (if applicable) and attending board of director meetings
      during the year; provided, however, that if more than three board meetings
      require out-of-town travel time, such additional travel time may be billed
      at
      the rate set forth in subparagraph C. below.  The retainer shall be
      provided for portions of the term less than a full calendar year.  This
      retainer may be revised by action of BlueFire’s Board of Directors from time to
      time.  Such revision shall be effective as of the date specified in the
      resolution for payments not yet made and need not be documented by an amendment
      to this agreement.

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    B. 
      Stock Options

     

    Subject
      to approval by the Board of Directors, an annual grant of an option to purchase
      BlueFire common stock, par value $.001 per share, shall be made to the
      Director.  The grant shall consist of an option to purchase a specified
      number of shares under the term of BlueFire’s 2006 Equity Incentive Plan or then
      effective incentive plan.  The specified number of shares for a new
      appointment to the Board shall be 5,000 shares in 2006, which grant has already
      been made, and an annual grant at the discretion of the Board.  Currently
      this grant is of 1,000 shares.  Twenty-five percent of the option shall
      vest on each quarterly anniversary of the date of grant.  The amount and
      terms of the annual option grant may be revised by action of BlueFire’s Board of
      Directors from time to time.  Such revision shall be effective as of the
      date specified in the resolution for any grants not yet made and need not be
      documented by an amendment to this agreement.

     

    C. 
      Additional Payments

     

    To
      the
      extent services described in Section I require more than three out-of-town
      trips, such additional travel time may be charged at the rate of $1,000 per
      day
      or part thereof.   This rate may be revised by action of BlueFire’s
      Board of Directors from time to time for payments not yet made.  Such
      revision shall be effective as of the date specified in the resolution and
      need
      not be documented by an amendment to this agreement.

     

    D. 
      Payment

     

    Retainer
      payments shall be made quarterly in cash in advance on the first day of each
      accounting quarter.  Additional payments shall be made in arrears.  No
      invoices need be submitted by the Director for payment of the retainer. 
Invoices for additional payments under C, above, shall be submitted. Such
      invoices must be approved by BlueFire’s Chief Executive Officer as to form and
      completeness.

     

    E. 
      Expenses

     

    BlueFire
      will reimburse the Director for reasonable expenses approved in advance, such
      approval not to be unreasonably withheld.  Invoices for expenses, with
      receipts attached, shall be submitted. Such invoices must be approved by
      BlueFire’s Chief Executive Officer as to form and completeness.

    
       

      
        
          
            
              
                	V.	Indemnification
                        and
                        Insurance

              

            

          

        

      

    

     

    BlueFire
      will execute an indemnification agreement in favor of the Director substantially
      in the form of the agreement attached hereto as Exhibit B.  In addition,
      BlueFire will provide directors and officers liability insurance.

    
      
         

        
          
            
              
                
                  	VI.	Term of
                          Agreement

                

              

            

          

        

      

    

     

    This
      agreement shall be in effect from 1st
      day of
      May, 2006 through the last date of the Director’s current term as a member of
      BlueFire’s Board of Directors.  This agreement shall be automatically
      renewed on the date of the Director’s reelection as a member of BlueFire’s Board
      of Director’s for the period of such new term unless the Board of Directors
      determines not to renew this agreement.   Any amendment to this
      agreement must be approved by a written action of BlueFire’s Board of
      Directors.  Amendments to Section IV Compensation hereof do not require the
      Director’s consent to be effective.

    
      
         

        
          
            
            

          

          
            2

            
              

            

          

          
            
            

          

        

         

        
          
            
              
                
                  	VII.	Termination

                

              

            

          

        

      

    

     

    This
      agreement shall automatically terminate upon the death of the Director or upon
      his resignation or removal from, or failure to win election or reelection to,
      the BlueFire Board of Directors.

     

    In
      the
      event of any termination of this agreement, the Director agrees to return any
      materials transferred to the Director under this agreement except as may be
      necessary to fulfill any outstanding obligations hereunder.  The Director
      agrees that BlueFire has the right of injunctive relief to enforce this
      provision.

     

    BlueFire’s
      obligation in the event of such termination shall be to pay the Director the
      retainer and other payments due through the date of termination.

     

    Termination
      shall not relieve either party of its continuing obligation under this agreement
      with respect to confidentiality of proprietary information.

    
       

      
        
          
            
              
                	VIII.	Limitation of
                        Liability

              

            

          

        

      

    

     

    Under
      no
      circumstances shall BlueFire be liable to the Director for any consequential
      damages claimed by any other party as a result of representations made by the
      Director with respect to BlueFire which are different from any to those made
      in
      writing by BlueFire.

     

    Furthermore,
      except for the maintenance of confidentiality, neither party shall be liable
      to
      the other for delay in any performance, or for failure to render any performance
      under this agreement when such delay or failure is caused by Government
      regulations (whether or not valid), fire, strike, differences with workmen,
      illness of employees, flood, accident, or any other cause or causes beyond
      reasonable control of such delinquent party.

    
      
         

        
          
            
              
                
                  	IX.	Confidentiality

                

              

            

          

        

      

    

     

    The
      Director agrees to sign and abide by BlueFire’s Director Proprietary Information
      and Inventions Agreement, a copy of which is attached hereto as Exhibit
      A.

    
      
         

        
          
            
              
                
                  	X.	Resolution
                          of
                          Dispute

                

              

            

          

        

      

    

     

    Any
      dispute regarding the agreement (including without limitation its validity,
      interpretation, performance, enforcement, termination and damages) shall be
      determined in accordance with the laws of the State of California, the United
      States of America.  Any action under this paragraph shall not preclude any
      party hereto from seeking injunctive or other legal relief to which each party
      may be entitled.

    
      
         

        
          
            
              
                
                  	XI.	Sole
                          Agreement

                

              

            

          

        

      

    

     

    This
      agreement (including agreements executed in substantially in the form of the
      exhibits attached hereto) supersedes all prior or contemporaneous written or
      oral understandings or agreements, and may not be added to, modified, or waived,
      in whole or in part, except by a writing signed by the party against whom such
      addition, modification or waiver is sought to be asserted.

    
      
         

        
          
            
              
                
                  	XII.	Assignment

                

              

            

          

        

      

    

     

    This
      agreement and all of the provisions hereof shall be binding upon and insure
      to
      the benefit of the parties hereto and their respective successors and permitted
      assigns and, except as otherwise expressly provided herein, neither this
      agreement, nor any of the rights, interests or obligations hereunder shall
      be
      assigned by either of the parties hereto without the prior written consent
      of
      the other party.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    
      
         

        
          
            
              
                
                  	XIII.	Notices

                

              

            

          

        

      

    

     

    Any
      and
      all notices, requests and other communications required or permitted hereunder
      shall be in writing, registered mail or by facsimile, to each of the parties
      at
      the addresses set forth above or the numbers set forth below:

     

    
      	
              The
                Director:

            	
              Attention:

            	
            
	
            	
              Telephone:

            	 
	 	
              Facsimile:

            	 
	 	 	 
	
              BlueFire:

            	
              Attention:

            	
              Arnold
                R. Klann

            
	 	
              Telephone:

            	
              800-511-4471

            
	
            	
              Facsimile:

            	
              949-752-9389

            

    

     

    Any
      such
      notice shall be deemed given when received and notice given by registered mail
      shall be considered to have been given on the tenth (10th) day after having
      been
      sent in the manner provided for above.

    
      
         

        
          
            
              
                
                  	XIV.	Survival of
                          Obligations

                

              

            

          

        

      

    

     

    Notwithstanding
      the expiration of termination of this agreement, neither party hereto shall
      be
      released hereunder from any liability or obligation to the other which has
      already accrued as of the time of such expiration or termination (including,
      without limitation, BlueFire’s obligation to make any fees and expense payments
      required pursuant to Article IV hereof) or which thereafter might accrue in
      respect of any act or omission of such party prior to such expiration or
      termination.

    
      
         

        
          
            
              
                
                  	XV.	Severability

                

              

            

          

        

      

    

     

    Any
      provision of this agreement which is determined to be invalid or unenforceable
      shall not affect the remainder of this agreement, which shall remain in effect
      as though the invalid or unenforceable provision had not been included herein,
      unless the removal of the invalid or unenforceable provision would substantially
      defeat the intent, purpose or spirit of this agreement.

     

    IN
      WITNESS WHEREOF, the parties hereto have caused this agreement to be executed
      by
      their duly authorized officers, as of the date first written above.

     

    
      	
              Signature:

            	 	 	
              Date:

            	
              ___/___/06

            
	 	 
	
              By:

            	 	 
	
              Title:

            	
            	
              Director

            
	 	 
	
               

              BlueFire
                Ethanol, Inc.

            
	 	 
	
              Signature:

            	 	 	
              Date:

            	
              ___/___/06

            
	 	 
	
              By:

            	
            	
              Arnold
                R. Klann

            
	
              Title:

            	 	
              President
                and Chief Executive Officer

            
	 	 	 	 	 	 	 

    

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      A

     

     

    BOARD
      OF DIRECTORS PROPRIETARY INFORMATION

     

    AND
      INVENTIONS AGREEMENT

     

     

    WHEREAS,
      the parties desire to assure the confidential status of the information which
      may be disclosed by BlueFire to the Director; NOW THEREFORE, in reliance upon
      and in consideration of the following undertaking, the parties agree as
      follows:

     

    1.    Subject
      to
      the limitations set forth in Paragraph 2, all information disclosed by BlueFire
      to the Director shall be deemed to be "Proprietary Information".  In
      particular, Proprietary Information shall be deemed to include any information,
      process, technique, algorithm, program, design, drawing, formula or test data
      relating to any research project, work in process, future development,
      engineering, manufacturing, marketing, servicing, financing or personnel matter
      relating to BlueFire, its present or future products, sales, suppliers,
      customers, employees, investors, or business, whether or oral, written, graphic
      or electronic form.

     

    2.    The
      term
      "Proprietary Information" shall not be deemed to include information which
      the
      Director can demonstrate by competent written proof. (i) is now, or hereafter
      becomes, through no act or failure to act on the part of the Director, generally
      known or available; (ii) is known by the Director at the time of receiving
      such
      information as evidenced by its records: (iii) is hereafter furnished to the
      Director by a third party, as a matter of right and without restriction on
      disclosure; or (iv) is the subject of a written permission to disclose provided
      by BlueFire.

     

    3.    The
      Director
      shall maintain in trust and confidence and not disclose to any third party
      or
      use for any unauthorized purpose any Proprietary Information received from
      BlueFire.  The Director may use such Proprietary Information only to the
      extent required to accomplish the purposes of this Agreement.  The Director
      shall not use Proprietary Information for any purpose or in any manner which
      would constitute a violation of any laws or regulations, including without
      limitation the export control laws of the United States.  No other rights
      of licenses to trademarks, inventions, copyrights, or patents are implied or
      granted under this Agreement.

     

    4.    Proprietary
      Information supplied shall not be reproduced in any form except as required
      to
      accomplish the intent of this Agreement.

     

    5.    The
      Director
      represents and warrants that he shall protect the Proprietary Information
      received with at least the same degree of care used to protect its own
      Proprietary Information from unauthorized use or disclosure.  The Director
      shall advise its employees or agents who might have access to such Proprietary
      Information of the confidential nature thereof and shall obtain from each of
      such employers and agents an agreement to abide by the terms of this
      Agreement.  The Director shall not disclose any Proprietary Information to
      any officer, employee or agent who does not have a need for such
      information.

     

    6.    All
      Proprietary Information (including all copies thereof) shall remain in the
      property of BlueFire, and shall be returned to BlueFire after Director's need
      for it has expired, or upon request of BlueFire, and in any event, upon
      completion or termination of this Agreement.

     

    
      
        
        

      

      
        A-1

        
          

        

      

      
        
        

      

    

     

    7.    Notwithstanding
      any
      other provision of this Agreement, disclosure of Proprietary Information shall
      not be precluded if such disclosure:

     

    (a)  
      is in response to a valid order of a court or other governmental body of the
      United States or any political subdivision thereof; provided, however, that
      the
      responding party shall first have given notice to the other party hereto and
      shall have made a reasonable effort to obtain a protective order requiring
      that
      the Proprietary Information so disclosed be used only for the purpose for which
      the order was issued;

     

    (b)  
      is otherwise required by law; or

     

    (c)  
      is otherwise necessary to establish rights or enforced obligations under this
      Agreement, but only to the extent that any such disclosure is
      necessary.

     

    8.    This
      Agreement shall continue in full force and effect for so long as the Director
      continues to receive Proprietary Information.  This Agreement may be
      terminated at any time upon thirty (30) days written notice to the other
      party.  The termination of the Agreement shall not relieve the Director of
      the obligations imposed by Paragraphs 3, 4, 5 and 12 of this Agreement with
      respect to Proprietary information disclosed prior to the effective date of
      such
      termination and the provisions of these Paragraphs shall survive the termination
      of this Agreement for a period of five (5) years from the date of such
      termination.

     

    9.    The
      Director
      agrees to indemnify BlueFire for any loss or damage suffered as a result of
      any
      breach by the Director of the terms of this Agreement, including any reasonable
      fees incurred by BlueFire in the collection of such indemnity.

     

    10.   This
      Agreement
      shall be governed by the laws of the State of California as those laws are
      applied to contracts entered into and to be performed entirely in California
      by
      California residents.

     

    11.   This
      Agreement
      contains the final, complete and exclusive agreement of the parties relative
      to
      the subject matter hereof and may not be changed, modified, amended or
      supplemented except by a written instrument signed by both parties.

     

    12.   Each
      party hereby
      acknowledges and agrees that in the event of any breach of this Agreement by
      the
      Director, including, without limitation, an actual or threatened disclosure
      of
      Proprietary Information without the prior express written consent of BlueFire,
      BlueFire will suffer an irreparable injury, such that no remedy at law will
      afford it adequate protection against, or appropriate compensation for, such
      injury.  Accordingly, each party hereby agrees that BlueFire shall be
      entitled to specific performance of the Director's obligations under this
      Agreement, as well as such further injunctive relief as may be granted by a
      court of competent jurisdiction.

     

    
      	
              AGREED
                TO:

            	
            	
              AGREED
                TO:

            
	
              BlueFire
                Ethanol, Inc.

            	
            	
               

            
	
              18201
                Von Karman Ste 550

            	
            	 
	
              Irvine,
                CA 92612

            	
            	
            

    

    
      	
              By:

            	
              /s/
                Arnold
                R. Klann

            	 	
              By:

            	 
	
              Name:

            	
              Arnold
                R. Klann

            	 	
              Name:

            	 
	
              Title:

            	
              President
                & CEO

            	 	
              Title:

            	
              Director

            

    

     

    
      
        
        

      

      
        A-2

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      B

     

     

    INDEMNITY
      AGREEMENT

     

     

    THIS
      AGREEMENT is
      made
      and entered into this _____ day of _______, 2006 by and between BLUEFIRE
      ETHANOL, INC.,
      Delaware corporation (the “Corporation”), and _________________
      (“Agent”).

     

    RECITALS

     

     

    WHEREAS,
      Agent
      performs a valuable service to the Corporation in his capacity as Director
      of
      the Corporation;

     

    WHEREAS,
      the
      stockholders of the Corporation have adopted bylaws (the “Bylaws”) providing for
      the indemnification of the directors, officers, employees and other agents
      of
      the Corporation, including persons serving at the request of the Corporation
      in
      such capacities with other corporations or enterprises, as authorized by the
      Delaware General Corporation Law, as amended (the “Code”);

     

    WHEREAS,
      the
      Bylaws and the Code, by their non-exclusive nature, permit contracts between
      the
      Corporation and its agents, officers, employees and other agents with respect
      to
      indemnification of such persons; and

     

    WHEREAS,
      in
      order
      to induce Agent to continue to serve as Director of the Corporation, the
      Corporation has determined and agreed to enter into this Agreement with
      Agent;

     

    NOW,
      THEREFORE, in
      consideration of Agent’s continued service as Director after the date hereof,
      the parties hereto agree as follows:

     

    AGREEMENT

     

    1.
      Services to the Corporation. Agent
      will serve, at the will of the Corporation or under separate contract, if any
      such contract exists, as Director of the Corporation or as a director, officer
      or other fiduciary of an affiliate of the Corporation (including any employee
      benefit plan of the Corporation) faithfully and to the best of his ability
      so
      long as he is duly elected and qualified in accordance with the provisions
      of
      the Bylaws or other applicable charter documents of the Corporation or such
      affiliate; provided,
      however, that
      Agent may at anytime and for any reason resign from such position (subject
      to
      any contractual obligation that Agent may have assumed apart from this
      Agreement) and that the Corporation or any affiliate shall have no obligation
      under this Agreement to continue Agent in any such position.

     

    2.
      Indemnity of Agent. The
      Corporation hereby agrees to hold harmless and indemnify Agent to the fullest
      extent authorized or permitted by the provisions of the Bylaws and the Code,
      as
      the same may be amended from time to time (but, only to the extent that such
      amendment permits the Corporation to provide broader indemnification rights
      than
      the Bylaws or the Code permitted prior to adoption of such
      amendment).

     

    
      
        
        

      

      
        B-1

        
          

        

      

      
        
        

      

    

     

    3.
      Additional Indemnity. In
      addition to and not in limitation of the indemnification otherwise provided
      for
      herein, and subject only to the exclusions set forth in Section 4 hereof, the
      Corporation hereby further agrees to hold harmless and indemnify
      Agent:

     

    (a)
      against
      any and all expenses (including attorneys’ fees), witness fees, damages,
      judgments, fines and amounts paid in settlement and any other amounts that
      Agent
      becomes legally obligated to pay because of any claim or claims made against
      or
      by him in connection with any threatened, pending or completed action, suit
      or
      proceeding, whether civil, criminal, arbitrational, administrative or
      investigative (including an action by or in the right of the Corporation) to
      which Agent is, was or at any time becomes a party, or is threatened to be
      made
      a party, by reason of the fact that Agent is, was or at any time becomes a
      director, officer, employee or other agent of Corporation, or is or was serving
      or at any time serves at the request of the Corporation as a director, officer,
      employee or other agent of another corporation, partnership, joint venture,
      trust, employee benefit plan or other enterprise; and

     

    (b)
      otherwise
      to the fullest extent as may be provided to Agent by the Corporation under
      the
      non-exclusivity provisions of the Code and Section 41 of the
      Bylaws.

     

    4.
      Limitations on Additional Indemnity. No
      indemnity pursuant to Section 3 hereof shall be paid by the
      Corporation:

     

    (a)
      on
      account of any claim against Agent solely for an accounting of profits made
      from
      the purchase or sale by Agent of securities of the Corporation pursuant to
      the
      provisions of Section 16(b) of the Securities Exchange Act of 1934 and
      amendments thereto or similar provisions of any federal, state or local
      statutory law;

     

    (b)
      on
      account of Agent’s conduct that is established by a final judgment as knowingly
      fraudulent or deliberately dishonest or that constituted willful
      misconduct;

     

    (c)
      on
      account of Agent’s conduct that is established by a final judgment as
      constituting a breach of Agent’s duty of loyalty to the Corporation or resulting
      in any personal profit or advantage to which Agent was not legally
      entitled;

     

    (d)
      for
      which
      payment is actually made to Agent under a valid and collectible insurance policy
      or under a valid and enforceable indemnity clause, bylaw or agreement, except
      in
      respect of any excess beyond payment under such insurance, clause, bylaw or
      agreement;

     

    (e)
      if
      indemnification is not lawful (and, in this respect, both the Corporation and
      Agent have been advised that the Securities and Exchange Commission believes
      that indemnification for liabilities arising under the federal securities laws
      is against public policy and is, therefore, unenforceable and that claims for
      indemnification should be submitted to appropriate courts for adjudication);
      or

     

    (f)
      in
      connection with any proceeding (or part thereof) initiated by Agent, or any
      proceeding by Agent against the Corporation or its directors, officers,
      employees or other agents, unless (i) such indemnification is expressly required
      to be made by law, (ii) the proceeding was authorized by the Board of Directors
      of the Corporation, (iii) such indemnification is provided by the Corporation,
      in its sole discretion, pursuant to the powers vested in the Corporation under
      the Code, or (iv) the proceeding is initiated pursuant to Section 9
      hereof.

     

    
      
        
        

      

      
        B-2

        
          

        

      

      
        
        

      

    

     

    5.
      Continuation of Indemnity. All
      agreements and obligations of the Corporation contained herein shall continue
      during the period Agent is a director, officer, employee or other agent of
      the
      Corporation (or is or was serving at the request of the Corporation as a
      director, officer, employee or other agent of another corporation, partnership,
      joint venture, trust, employee benefit plan or other enterprise) and shall
      continue thereafter so long as Agent shall be subject to any possible claim
      or
      threatened, pending or completed action, suit or proceeding, whether civil,
      criminal, arbitrational, administrative or investigative, by reason of the
      fact
      that Agent was serving in the capacity referred to herein.

     

    6.
      Partial Indemnification. Agent
      shall be entitled under this Agreement to indemnification by the Corporation
      for
      a portion of the expenses (including attorneys’ fees), witness fees, damages,
      judgments, fines and amounts paid in settlement and any other amounts that
      Agent
      becomes legally obligated to pay in connection with any action, suit or
      proceeding referred to in Section 3 hereof even if not entitled hereunder to
      indemnification for the total amount thereof, and the Corporation shall
      indemnify Agent for the portion thereof to which Agent is entitled.

     

    7.
      Notification and Defense of Claim. Not
      later
      than thirty (30) days after receipt by Agent of notice of the commencement
      of
      any action, suit or proceeding, Agent will, if a claim in respect thereof is
      to
      be made against the Corporation under this Agreement, notify the Corporation
      of
      the commencement thereof; but the omission so to notify the Corporation will
      not
      relieve it from any liability which it may have to Agent otherwise than under
      this Agreement. With respect to any such action, suit or proceeding as to which
      Agent notifies the Corporation of the commencement thereof:

     

    (a)  
      the
      Corporation will be entitled to participate therein at its own
      expense;

     

    (b)  
      except
      as
      otherwise provided below, the Corporation may, at its option and jointly with
      any other indemnifying party similarly notified and electing to assume such
      defense, assume the defense thereof, with counsel reasonably satisfactory to
      Agent. After notice from the Corporation to Agent of its election to assume
      the
      defense thereof, the Corporation will not be liable to Agent under this
      Agreement for any legal or other expenses subsequently incurred by Agent in
      connection with the defense thereof except for reasonable costs of investigation
      or otherwise as provided below. Agent shall have the right to employ separate
      counsel in such action, suit or proceeding but the fees and expenses of such
      counsel incurred after notice from the Corporation of its assumption of the
      defense thereof shall be at the expense of Agent unless (i) the employment
      of
      counsel by Agent has been authorized by the Corporation, (ii) Agent shall have
      reasonably concluded, and so notified the Corporation, that there is an actual
      conflict of interest between the Corporation and Agent in the conduct of the
      defense of such action or (iii) the Corporation shall not in fact have employed
      counsel to assume the defense of such action, in each of which cases the fees
      and expenses of Agent’s separate counsel shall be at the expense of the
      Corporation. The Corporation shall not be entitled to assume the defense of
      any
      action, suit or proceeding brought by or on behalf of the Corporation or as
      to
      which Agent shall have made the conclusion provided for in clause (ii) above;
      and

     

    (c)  
      the
      Corporation shall not be liable to indemnify Agent under this Agreement for
      any
      amounts paid in settlement of any action or claim effected without its written
      consent, which shall not be unreasonably withheld. The Corporation shall be
      permitted to settle any action except that it shall not settle any action or
      claim in any manner which would impose any penalty or limitation on Agent
      without Agent’s written consent, which may be given or withheld in Agent’s sole
      discretion.

     

    8.
      Expenses. The
      Corporation shall advance, prior to the final disposition of any proceeding,
      promptly following request therefore, all expenses incurred by Agent in
      connection with such proceeding upon receipt of an undertaking by or on behalf
      of Agent to repay said amounts if it shall be determined ultimately that Agent
      is not entitled to be indemnified under the provisions of this Agreement, the
      Bylaws, the Code or otherwise.

     

    
      
        
        

      

      
        B-3

        
          

        

      

      
        
        

      

    

     

    9.
      Enforcement. Any
      right
      to indemnification or advances granted by this Agreement to Agent shall be
      enforceable by or on behalf of Agent in any court of competent jurisdiction
      if
      (i) the claim for indemnification or advances is denied, in whole or in part,
      or
      (ii) no disposition of such claim is made within ninety (90) days of request
      therefore. Agent, in such enforcement action, if successful in whole or in
      part,
      shall be entitled to be paid also the expense of prosecuting his claim. It
      shall
      be a defense to any action for which a claim for indemnification is made under
      Section 3 hereof (other than an action brought to enforce a claim for expenses
      pursuant to Section 8 hereof, provided
      that the
      required undertaking has been tendered to the Corporation) that Agent is not
      entitled to indemnification because of the limitations set forth in Section
      4
      hereof. Neither the failure of the Corporation (including its Board of Directors
      or its stockholders) to have made a determination prior to the commencement
      of
      such enforcement action that indemnification of Agent is proper in the
      circumstances, nor an actual determination by the Corporation (including its
      Board of Directors or its stockholders) that such indemnification is improper
      shall be a defense to the action or create a presumption that Agent is not
      entitled to indemnification under this Agreement or otherwise.

     

    10.
      Subrogation. In
      the
      event of payment under this Agreement, the Corporation shall be subrogated
      to
      the extent of such payment to all of the rights of recovery of Agent, who shall
      execute all documents required and shall do all acts that may be necessary
      to
      secure such rights and to enable the Corporation effectively to bring suit
      to
      enforce such rights.

     

    11.
      Non-Exclusivity of Rights. The
      rights conferred on Agent by this Agreement shall not be exclusive of any other
      right which Agent may have or hereafter acquire under any statute, provision
      of
      the Corporation’s Certificate of Incorporation or Bylaws, agreement, vote of
      stockholders or directors, or otherwise, both as to action in his official
      capacity and as to action in another capacity while holding office.

     

    12.
      Survival of Rights.

     

    (a)  
      The
      rights conferred on Agent by this Agreement shall continue after Agent has
      ceased to be a director, officer, employee or other agent of the Corporation
      or
      to serve at the request of the Corporation as a director, officer, employee
      or
      other agent of another corporation, partnership, joint venture, trust, employee
      benefit plan or other enterprise and shall inure to the benefit of Agent’s
      heirs, executors and administrators.

     

    (b)  
      The
      Corporation shall require any successor (whether direct or indirect, by
      purchase, merger, consolidation or otherwise) to all or substantially all of
      the
      business or assets of the Corporation, expressly to assume and agree to perform
      this Agreement in the same manner and to the same extent that the Corporation
      would be required to perform if no such succession had taken place.

     

    13.
      Separability. Each
      of
      the provisions of this Agreement is a separate and distinct agreement and
      independent of the others, so that if any provision hereof shall be held to
      be
      invalid for any reason, such invalidity or unenforceability shall not affect
      the
      validity or enforceability of the other provisions hereof. Furthermore, if
      this
      Agreement shall be invalidated in its entirety on any ground, then the
      Corporation shall nevertheless indemnify Agent to the fullest extent provided
      by
      the Bylaws, the Code or any other applicable law.

     

    14.
      Governing Law. This
      Agreement shall be interpreted and enforced in accordance with the laws of
      the
      State of Delaware.

     

    15.
      Amendment and Termination. No
      amendment, modification, termination or cancellation of this Agreement shall
      be
      effective unless in writing signed by both parties hereto.

     

    16.
      Identical Counterparts. This
      Agreement may be executed in one or more counterparts, each of which shall
      for
      all purposes be deemed to be an original but all of which together shall
      constitute but one and the same Agreement. Only one such counterpart need be
      produced to evidence the existence of this Agreement.

     

    17.
      Headings. The
      headings of the sections of this Agreement are inserted for convenience only
      and
      shall not be deemed to constitute part of this Agreement or to affect the
      construction hereof.

     

    
      
        
        

      

      
        B-4

        
          

        

      

      
        
        

      

    

     

    18.
      Notices. All
      notices, requests, demands and other communications hereunder shall be in
      writing and shall be deemed to have been duly given (i) upon delivery if
      delivered by hand to the party to whom such communication was directed or (ii)
      upon the third business day after the date on which such communication was
      mailed if mailed by certified or registered mail with postage
      prepaid:

     

    (a)  
      If
      to
      Agent, to:  

     

    (b)  
      If
      to the
      Corporation, to:

     

    BLUEFIRE
      ETHANOL, INC.

     

    18201
      Von
      Karman Ste 550

    Irvine,
      CA 92612

     

    or
      to
      such other address as may have been furnished to Agent by the
      Corporation.

     

    IN
      WITNESS WHEREOF, the
      parties hereto have executed this Agreement on and as of the day and year first
      above written.

     

    
      	
              BLUEFIRE
                ETHANOL, INC,

            	 
	 	 
	
              By:
                /s/ Arnold R.
                Klann                     

            	 
	
              Name:
                Arnold R. Klann

            	
              Title:
                President & CEO

            	 
	 	 
	
              AGENT

            	 
	
              By:

            	 
	 	 
	
              Name:
                

            	 

    

     

     

     

    B-5Form Executive Employment Agreement

    Exhibit
      10.2

     

    EXECUTIVE
      EMPLOYMENT AGREEMENT

    

    This
      Agreement is made and entered into as of the 1st
      day of
      June, 2006
      (“Agreement Date”) by and between BlueFire Ethanol, Inc., a Nevada corporation
      and subsidiary of BlueFire Ethanol, Inc, a Delaware corporation (hereinafter
      referred to as the “Company”), and ____________,
      an
      individual (hereinafter referred to as the “Employee”). The Company and the
      Employee are collectively referred to as the “Parties”. This Agreement
      supersedes any similar agreement between the Parties.

    

    WITNESSETH:

    

    Whereas
      it is in
      the best interest of the Company to retain quality personnel such as the
      Employee; and

    Whereas
      the
      Employee is willing to enter into an employment agreement with the Company
      in
      accordance with the conditions hereinafter provided.

    

    Now,
      therefore,
      for and
      in consideration of the terms and conditions contained herein, the Parties
      agree
      as follows, to wit:

    

    
      	1.	
              Definitions.
                As
                used in this Agreement:

            

    

     

    
      	A. 
                	
              “Company”
                means BlueFire Ethanol, Inc. its successors and assigns, and any
                of its
                present or future subsidiaries or organizations controlled by,
                controlling, or under common control with
                it.

            

    

     

    
      	B. 
                	
              “Confidential
                Information”
                means any and all information disclosed or made available to the
                Employee
                or known by the Employee as a direct or indirect consequence of or
                through
                Employee’s employment by the Company and not generally known in the
                industry in which the Company is or may become engaged, or any information
                related to the Company’s products, processes, or services, including, but
                not limited to, information relating to research, development, inventions,
                manufacture, purchasing, accounting, engineering, marketing,
                merchandising, or selling.

            

    

     

    
      	C.  
               	
              “Inventions”
                mean discoveries, concepts and ideas, whether patentable or not,
                relating
                to any present or prospective activities of the Company, including,
                but
                not limited to, devices, processes, methods, formulae, techniques,
                applications, technology and any improvements to the foregoing. Such
                definition shall also encompass all such discoveries, concepts and
                ideas,
                even if formulated by the Employee prior to his employment by the
                Company.

            

    

     

    
      	D.  
               	
              “Company
                Monthly Base Pay” means
                the employee’s last monthly remuneration, prior to termination of
                Employee’s employment with the Company, before federal, state, and local
                taxes and other withholding, but exclusive of extra compensation,
                such as
                that attributable to bonuses, overtime or employee retirement or
                pension
                benefits.

            

    

     

    
      	E.  
               	
              “Conflicting
                Organization”
                means any person or organization engaged, directly or indirectly,
                in the
                research, development, production, marketing or selling of a Conflicting
                Product.

            

    

     

    
      	F. 
                	
              “Conflicting
                Product”
                means any product, process, technology, application, or service of
                any
                person or organization, other than the Company, in existence or under
                development, which resembles, competes with or is marketed or offered
                for
                sale or lease to the same or similar potential customers as a product,
                process, technology, application, or service which is the subject
                of
                research, development, production, marketing or selling activities
                of the
                Company.

            

    

    
      

      
        	2.	
                
                  Employment.
                    The Company hereby employs the Employee and the Employee hereby
                    agrees to
                    accept employment with the Company upon the terms and conditions
                    herein
                    set forth.

                

              

      

    

    
      
        

        
          	3.	
                  
                    
                      Term.
                        The Company hereby employs the Employee for a period of three
                        (3)
                        years beginning on the 1st day of June, 2006, and ending
                        on the 31st day
                        of May, 2009, unless sooner terminated as provided in Section
                        13
                        (Disability), Section 14 (Death During Employment) or Section
                        16
                        (Termination), hereof; provided, this Agreement may be extended
                        for
                        additional periods or its terms amended upon the mutual written
                        agreement
                        of the
                        Parties.

                    

                  

                

        

      

    

    
      
         

        
          
            
              Initials
                ____

              Initials
                ____

            

          

          
            1

            
              

            

          

          
            
            

          

        

         

        
          	4.	
                  
                    
                      
                        Position.
                          The Employee shall be employed in the capacity of  
                          with such managerial, administrative and other services
                          as are customarily
                          associated with or incident to such position and shall
                          perform such other
                          duties and responsibilities for the Company as the Company
                          may reasonably
                          require, consistent with such position. The Employee shall
                          not be assigned
                          nor requested to perform duties or functions for which
                          he has not been
                          adequately trained or for which he does not have adequate
                          education and/or
                          professional
                          experience.

                      

                    

                  

                

        

      

    

    
      
        

        
          	5.	
                  
                    
                      
                        
                          Extent
                            of Services.
                            The Employee shall diligently and conscientiously devote
                            Employee’s time,
                            attention and energies to the business of the Company
                            and shall not,
                            during the term of this Agreement, be engaged in any
                            other full time
                            business activity whether or not such business activity
                            is pursued for
                            gain, profit, or other pecuniary advantage; however,
                            except as set forth
                            in Section 16, this provision shall not be construed
                            as preventing the
                            Employee from investing Employee’s assets in such form or manner as will
                            not require full-time services on the part of the Employee
                            outside of the
                            Company.

                        

                      

                    

                  

                

        

      

    

    
      
        

        
          	6.	
                  
                    
                      
                        
                          
                            Working
                              Facilities.
                              The Employee shall be furnished with such facilities
                              suitable to
                              Employee’s position and adequate for the performance of Employee’s duties
                              and the conduct of the Company’s business. The Employee’s principal office
                              shall be located in the area selected by the Company;
                              provided, however,
                              the Employee agrees to do such traveling as is required
                              to carry out
                              Employee’s duties hereunder.
                              

                          

                        

                      

                    

                  

                

        

      

    

    
      
        

        
          	7.	
                  
                    
                      
                        
                          
                            
                              Compensation.
                                The Company’s Board of Directors or the management of the Company
                                may
                                increase the Employee’s Company Monthly Base Pay from time to time as the
                                Board may see fit to grant such an increase. The
                                Employee shall be a
                                participant in any deferred compensation, bonus and/or
                                stock option plans
                                designed and implemented by the Company’s Board of Directors for the
                                benefit of the Company’s key executives and employees. The Employee shall
                                participate in any such plans at a level commensurate
                                with Employee’s
                                position with the
                                Company.

                            

                          

                        

                      

                    

                  

                

        

      

    

     

    
      	A. 
                	
              Company
                Monthly Base Pay.
                For all services rendered by the Employee under this Agreement, Employee
                shall be paid a salary in the sum of $
                per
                year, beginning on June 1,
                2006 through December 31, 2006. These amounts shall be paid in equal
                monthly or bi-monthly installments to the Employee as Company Monthly
                Base
                Pay. 

            

    

     

    
      	B.  
               	
              Benefits.
                Employee
                shall be eligible for Company-paid health insurance, dental insurance,
                401K Plan when available, short/long term disability coverage and
                other
                benefits that are and may become available. Employee shall be eligible
                to
                participate in any such benefits at a level commensurate with Employee’s
                position with the Company.

            

    

    
      
        

        
          	8.	
                  
                    
                      
                        
                          
                            
                              
                                Expenses.
                                  All expenses for transportation and travel, including
                                  business use of
                                  personal automobile, incurred by the Employee for
                                  the furtherance of the
                                  legitimate business interests of the Company, shall
                                  be reimbursed or
                                  directly paid by the Company upon presentment of
                                  receipts in accordance
                                  with the record keeping requirements of the Internal
                                  Revenue
                                  Service.

                              

                            

                          

                        

                      

                    

                  

                

        

      

    

    
      
        

        
          	9.	
                  
                    
                      
                        
                          
                            
                              
                                
                                  Right
                                    to Participate.
                                    The Employee shall have the right to participate
                                    in all other benefits of
                                    employment generally made available to the Company’s executive and
                                    managerial employees including but not limited
                                    to medical, dental,
                                    disability, life insurance, retirement plans
                                    and any other benefit(s)
                                    presented by the Company’s Board of Directors and befitting the Employee’s
                                    position and performance as
                                    available.

                                

                              

                            

                          

                        

                      

                    

                  

                

        

      

    

    
      
        

        
          	9.	
                  
                    
                      
                        
                          
                            
                              
                                
                                  Right
                                    to Participate.
                                    The Employee shall have the right to participate
                                    in all other benefits of
                                    employment generally made available to the Company’s executive and
                                    managerial employees including but not limited
                                    to medical, dental,
                                    disability, life insurance, retirement plans
                                    and any other benefit(s)
                                    presented by the Company’s Board of Directors and befitting the Employee’s
                                    position and performance as
                                    available.

                                

                              

                            

                          

                        

                      

                    

                  

                

        

      

    

    
      
        

        
          	10.	
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    Vacation.
                                      The Employee shall be entitled to paid vacation,
                                      as
                                      follows:

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

        

      

    

     

    Ten
      (10)
      working days during the 2006 calendar year

     

    fifteen
      (15) working days during the 2007 calendar year

     

    twenty
      (20) working days during the 2008 calendar year

     

    For
      purposes hereunder, the term “working days” refers to Monday through Friday,
      exclusive of weekends and holidays, observed by the Company as determined by
      the
      Board of Directors. Employee will not schedule vacation without prior written
      approval from the Company’s CEO. Unused vacation days may not be carried into
      the next calendar year nor will the Employee receive compensation for unused
      vacation days, unless Employee’s work requirements cause Employee to miss
      vacation days, in which case Employee can carry over unused vacation days or
      be
      compensated for unused vacation days.

    
      
         

        
          
            
              Initials
                ____

              Initials
                ____

            

          

          
            2

            
              

            

          

          
            
            

          

        

         

        
          	11.	
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      Right
                                        to Inventions.
                                        With respect to all Inventions made or conceived
                                        by the Employee, whether
                                        or not during the hours of Employee’s employment or with the use of
                                        Company facilities, materials or personnel,
                                        either solely or jointly with
                                        others, during the term of Employee’s employment by the Company, and
                                        without royalty or any other
                                        consideration:

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

        

      

    

     

    
      	A. 
                	
              Reports.
                The Employee shall inform the Company promptly and fully of such
                inventions by a written report, setting forth in detail the structures,
                procedures, and methodology employed and the result achieved. A report
                shall also be submitted by the Employee upon completion of any study
                or
                research project undertaken on the Company’s behalf, whether or not in the
                Employee’s opinion a given study or project has resulted in an
                invention.

            

    

     

    
      	B.  
               	
              Assignment.
                The Employee hereby assigns and agrees to assign to the Company all
                of
                Employee’s rights to such Inventions and to all proprietary right therein,
                based thereon or related thereto, including, but not limited to,
                applications for United States and foreign letters patent and resulting
                letters patent.

            

    

     

    
      	C.  
               	
              Patents.
                At
                the Company’s request and expense, the Employee shall execute such
                documents and provide such assistance as may be deemed necessary
                by the
                Company to apply for, defend or enforce any United States or foreign
                letters of patent based on or related to such
                Inventions.

            

    

     

    
      	D.  
               	
              Prior
                Inventions and Intellectual Property.
                All prior technical knowledge, inventions, know-how developed or
                learned
                by the Employee concerning the business of the Company, shall become
                the
                property of the Company upon execution of this Agreement, and the
                Employee
                shall not have any further proprietary rights to such Intellectual
                Property.

            

    

    
       

      
        	12.	
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      Disclosure
                                        of Confidential
                                        Information.

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

      

    

     

    
      	A. 
                	
              Confidentiality.
                Except as required in the performance of Employee’s duties during the term
                of Employee’s employment by the Company, the Employee shall treat as
                confidential and shall not, directly or indirectly, use, disseminate,
                disclose, publish, or otherwise make available any Confidential
                Information or any portion thereof. This provision shall remain in
                effect
                for a period of two (2) years after any termination of such
                employment.

            

    

     

    
      	B.  
               	
              Return
                of Confidential Information.
                Upon termination of Employee’s employment with the Company, all documents,
                records, notebooks, and similar repositories containing Confidential
                Information, including copies thereof, then in the Employee’s possession,
                whether prepared by him or others, shall be promptly returned to
                the
                Company. If at any time after the termination of employment the Employee
                determines that he has any Confidential Information in Employee’s
                possession or control, he shall immediately return to the Company
                all such
                Confidential Information, including all copies and portions
                thereof.

            

    

    
      
         

        
          	13.	
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          Disability.
                                            To
                                            the extent not covered by the Company’s disability insurance, if any, if
                                            the Employee is unable to perform Employee’s services during the term of
                                            this agreement by reason of illness or
                                            incapacity, he shall receive
                                            Employee’s full compensation during the first
                                            two (2) months of such
                                            disability, to the extent not covered
                                            by the Company’s disability
                                            insurance, if any. If such disability
                                            should continue for longer than two
                                            (2) months, the compensation otherwise
                                            payable to the Employee during the
                                            continued period of disability shall
                                            be reduced by fifty percent (50%)
                                            provided such continued period of disability
                                            lasts no longer than four (4)
                                            months. The Employee’s full compensation shall be reinstated
                                            upon
                                            Employee’s return to employment and the discharge
                                            of Employee’s full
                                            duties hereunder. This provision shall
                                            not be operative until all benefits
                                            under the Company’s long-term disability insurance plan,
                                            if any, have been
                                            calculated and shall not be considered
                                            in determining the amount of
                                            benefits under any such insurance
                                            plan.

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

        

      

    

     

    
      	A.   	
              In
                the event of disability of the Employee, shares of the Company, as
                provided in Section 7(B) of this Agreement shall continue as if this
                Agreement were in full force and
                effect.

            

    

    
      
         

        
          	14.	
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          Death
                                            during Employment.If
                                            the Employee dies during the term of
                                            this Agreement, this Agreement shall
                                            be terminated; provided, however, the
                                            Company shall pay to the estate of
                                            the employee any salary which would have
                                            otherwise been earned for the
                                            balance of the month in which the Employee’s death
                                            occurred.

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

        

      

    

    
      
         

        
          
            
              Initials
                ____

              Initials
                ____

            

          

          
            3

            
              

            

          

          
            
            

          

        

         

        
          	15.	
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            Non-Competition.
                                              During the term of this Agreement and
                                              or as long as thereafter as Employee
                                              is receiving unemployment
                                              insurance:

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

        

      

    

     

    
      	A.  
               	
              For
                a period of Three (3) years after Termination, the Employee shall
                not
                engage in competition with the Company, either directly or indirectly,
                in
                any manner or capacity, as advisor, consultant, principal, agent,
                partner,
                officer, director, stockholder, employee, representative, spokesman
                or
                otherwise, in any phase of the business carried on by the Company
                at any
                time.

            

    

     

    
      	B.  
               	
              For
                a period of Three (3) years after the termination of this Agreement,
                the
                Employee shall not solicit anyone who was an employee of the Company
                when
                the Employee’s employment with the company terminated or solicit anyone
                then employed by the Company to terminate or refrain from renewing
                Employee’s or her employment with the
                Company.

            

    

     

    
      	C.   
              	
              For
                a period of Three (3) years after the termination of this Agreement,
                the
                Employee shall not, either directly or indirectly, solicit any customer,
                broker, or distributor of the Employer, for such products as are
                manufactured and/or sold by the Employer, and Employee will similarly
                not
                engage in the business of the manufacture and sales of such products
                as
                are manufactured and/or sold by the Employer within the said period.
                

            

    

    
       

      
        	16.	
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            Termination.
                                              The Employee may terminate this Agreement
                                              upon thirty days (30) written
                                              notice to the Company. Upon the effective
                                              date of the Employee terminating
                                              this Agreement, the Employee’s entitlement to any salary or other
                                              benefits
                                              hereunder shall cease subject to the
                                              provisions of Section
                                              13.

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

      

    

     

    
      	A.  
               	
              The
                Employer may terminate this Agreement at any time with twenty-four
                (24)
                hours prior written notice if the Employee commits any material act
                of
                dishonesty, discloses confidential information, is guilty of gross
                misconduct, or acts in any way that has a direct, substantial and
                adverse
                effect on the Company’s reputation. Upon the effective date of the Company
                terminating this Agreement, the Employee’s entitlement to any salary or
                other benefits hereunder shall
                cease.

            

    

    
      
         

        
          	17.	
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                Certain
                                                  Provisions to Survive Termination.
                                                  Notwithstanding any termination
                                                  of this employment under this Agreement,
                                                  the Employee, in consideration
                                                  of Employee’s employment hereunder to the
                                                  date of such termination, shall
                                                  remain bound by the provisions
                                                  of Section
                                                  12 and 15. It is acknowledged that
                                                  the Company would be irrevocably
                                                  damaged if the Employee were to
                                                  violate the provisions of Section
                                                  12
                                                  and/or 15, and consequently, in
                                                  addition to all other remedies
                                                  that may be
                                                  available to it, the Company shall
                                                  be entitled to injunctive relief
                                                  for
                                                  any actual or threatened violation
                                                  of such
                                                  Sections.

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

        

      

    

     

    
      	A.  
               	
              In
                the event of termination of the Agreement as a result of the disability
                or
                death of the Employee, it is agreed that the provisions of Section
                7(B)
                relating to shares of the Company shall continue as if the Employee
                were
                alive and fulfilling Employee’s obligations under this Agreement and not
                disabled or dead.

            

    

    
      
         

        
          	18.	
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                Notice.
                                                  All notices herein shall be in
                                                  writing and shall be deemed to
                                                  have been
                                                  duly given at the time personally
                                                  delivered or deposited in the United
                                                  States Mail, postage prepaid, to
                                                  the address of the respective parties
                                                  set
                                                  forth below their signatures hereto,
                                                  subject to changes upon notice
                                                  to the
                                                  other
                                                  party.

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

        

      

    

    
      
         

        
          	19.	
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                Waiver.
                                                  Failure to insist upon a strict
                                                  compliance with any of the terms
                                                  or
                                                  conditions of this Agreement shall
                                                  not be deemed waiver of such terms
                                                  or
                                                  conditions, nor shall any waiver
                                                  of any term, condition or right
                                                  of any
                                                  party at any time be deemed a waiver
                                                  of any other term, condition or
                                                  right
                                                  of any party hereto, nor shall
                                                  it preclude the party from subsequently
                                                  asserting or relying upon such
                                                  term, condition or
                                                  right.

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

        

      

    

    
      
         

        
          	20.	
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                Severability.
                                                  The invalidity or enforceability
                                                  of any provision hereof shall in
                                                  no way
                                                  affect the validity or enforceability
                                                  of any other
                                                  provision.

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

        

      

    

    
      
         

        
          	21.	
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  Modification.
                                                    There are no verbal understandings
                                                    between the Parties. This Agreement
                                                    contains the entire agreement
                                                    of the Parties and shall not
                                                    be changed,
                                                    modified, or terminated, except
                                                    in writing signed by the
                                                    Parties.

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

        

      

    

    
      
         

        
          	22.	
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  Construction.
                                                    This Agreement shall be construed
                                                    in accordance with the laws of
                                                    the State
                                                    of
                                                    California.

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

        

      

    

     

    
      
        
          	23.	
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  
                                                    Assignment.
                                                      The rights and obligations
                                                      of the Company under this Agreement
                                                      shall inure
                                                      to the benefit of and shall
                                                      be binding upon the successors
                                                      and assigns of
                                                      the Company. The Employee’s rights, powers, privileges
                                                      and immunities
                                                      under this Agreement shall
                                                      not be assignable by the Employee
                                                      without the
                                                      prior written consent of the
                                                      Company.

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

        

      

    

    
      
         

        
          
            
              Initials
                ____

              Initials
                ____

            

          

          
            4

            
              

            

          

          
            
            

          

        

         

        
          	24.	
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  
                                                    Binding
                                                      Effect.
                                                      This Agreement shall be binding
                                                      upon and shall inure to the
                                                      benefit of the
                                                      Parties and their respective
                                                      heirs, legal representatives,
                                                      successors and
                                                      assigns.

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

        

      

    

    

    IN
      WITNESS WHEREOF,
      the
      Parties have hereto set their hands on the day and year first above
      written.

     

    
      	 	COMPANY: BlueFire Ethanol,
              Inc.

    

     

    This
      agreement is hereby ratified by a majority of the BlueFire Ethanol, Inc. Board
      of Directors on this 1st day of May, 2006.

     

    
      	 	
              By:    /s/
                Arnold R. Klann

              Name:      
                Arnold R. Klann

              Title:        Chairman/CEO

            

    

    
 

    EMPLOYEE:

    
       

      
        	 	
                
                  By: __________________________________

                  Name: 

                

              

      

    

     

     

    
      
        
          Initials
            ____

          Initials
            ____

        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      A

    

    Operating
      Targets

    

    1. 
      Individual goals:

     

     

     

    
      Initials
        ____

      Initials
        ____

    

    A-1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00114-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00114-of-00352.parquet"}]]