BLUEFIRE ETHANOL FUELS, INC.
2006 INCENTIVE AND NONSTATUTORY STOCK OPTION PLAN
This Incentive and Nonstatutory Stock Option Plan (the "Plan") is intended to further the growth and financial
success of BlueFire Ethanol Fuels, Inc. (the "Corporation") by providing additional incentives to selected
employees, directors, and consultants to the Corporation or parent corporation or subsidiary corporation of the
Corporation as those terms are defined in Sections 424(e) and 424(f) of the Internal Revenue Code of 1986, as
amended (the "Code") (such parent corporations and subsidiary corporations hereinafter collectively referred to
as "Affiliates") so that such employees and consultants may acquire or increase their proprietary interest in the
Corporation. Stock options granted under the Plan (hereinafter "Options") may be either "Incentive Stock
Options," as defined in Section 422A of the Code and any regulations promulgated under said Section, or
"Nonstatutory Options" at the discretion of the Board of Directors of the Corporation (the "Board") and as
reflected in the respective written stock option agreements granted pursuant hereto.
The Plan shall be administered by the Board of Directors of the Corporation; provided however, that the Board
may delegate such administration to a committee of not fewer than three (3) members (the "Committee"), at least
two (2) of whom are members of the Board and all of whom are disinterested administrators, as contemplated by
Rule 16b-3 promulgated under the Securities Exchange Act of 1934, as amended ("Rule 16b-3"); and provided
further, that the foregoing requirement for disinterested administrators shall not apply prior to the date of the first
registration of any of the securities of the Corporation under the Securities Act of 1933, as amended.
Subject to the provisions of the Plan, the Board and/or the Committee shall have authority to (a) grant, in its
discretion, Incentive Stock Options in accordance with Sec