** This exhibit contains  confidential  material which has been omitted pursuant
to a Confidential  Treatment  Request.  The omitted  information  has been filed
separately with the Securities and Exchange Commission.

                      LICENSE AND BINDER PURCHASE AGREEMENT

         THIS LICENSE AND BINDER PURCHASE AGREEMENT (the  "Agreement"),  is made
and  entered  into as of April 17,  2000 by and  between  DTE  Kentucky,  LLC, a
Delaware limited  liability company (the  "Licensee"),  and Covol  Technologies,
Inc., a Delaware corporation (the "Licensor").

         WHEREAS  Licensor  has  developed  a  proprietary  process  to  produce
synthetic coal fuel extrusions,  pellets, and briquettes  (collectively referred
to herein as  "briquettes")  from  waste  coal  dust,  coal fines and other coal
derivatives,  and Licensor is entitled to license the synthetic Coal Briquetting
Technology (as defined below) to Licensee;

         WHEREAS  Licensor  owns  a  synthetic  fuel  manufacturing  plant  (the
"Facility"),  which is  dismantled  and stored at the  Buccaneer  Storage  Yard,
Buccaneer  Enterprises,  Inc., Route 10, Box 393, Buckhannon,  West Virginia and
Licensee has or will acquire the Facility from Licensor as  contemplated by that
certain  Asset  Purchase  Agreement,  dated as of April 17, 2000, by and between
Licensee, Licensor, Mountaineer Fuel, LLC, a Utah limited liability company, and
Synfuel  Investments,  Inc., a Utah  corporation,  each subsidiaries of Licensor
(the "Purchase Agreement");

         WHEREAS  Licensee  wishes to  obtain  and  Licensor  wishes to grant to
Licensee a license for the synthetic Coal  Briquetting  Technology to be used in
connection  with the  Facility  on the  terms and  conditions  set forth in this
Agreement, and Licensee wishes to obtain and Licensor wishes to sell to Licensee
the  Proprietary  Binder Material (as defined below) for use in the operation of
the Facility.

         NOW, THEREFORE,  in consideration of the foregoing premises, the mutual
covenants  and  agreements  hereinafter  set forth,  and other good and valuable
consideration,  the receipt  and  sufficiency  of which is hereby  acknowledged,
Licensor and Licensee each agree as follows:

         Section 1.  Definitions.

         "Coal Briquetting Technology" means all intellectual property,  patents
(including,  but  not  limited  to,  United  States  Patent  Numbers  5,599,361;
5,487,764;  and 5,453,103) and  applications  therefor,  printed and not printed
technical  data,  know-how,  trade secrets,  copyrights  and other  intellectual
property rights, inventions, discoveries, techniques, works, processes, methods,
plans, software, designs, drawings, schematics,  specifications,  communications
protocols,  source and object code and modifications,  test procedures,  program
cards,  tapes,   disks,   algorithms  and  all  other  scientific  or  technical
information in whatever form including "Developed Technology" and "Improvements"
relating to,  embodied in or used in the process to produce  synthetic coal fuel
briquettes from waste coal dust, coal fines, run of mine coal, and other similar
coal derivatives,  including all such information in existence as of the date of
this  Agreement  as well as related  information  later  developed  by Licensor;
provided, however, that the defined term "Coal Briquetting Technology" shall not
include the proprietary  process/method  or other binder material or composition
developed by Licensor to produce  synthetic  coke  briquettes  from coke breeze,
iron revert materials,  or any technology used in any application other than the
processing

<PAGE>

and production of synthetic coal fuel  briquettes.  Nothing in this Agreement is
intended to grant to Licensee the right to apply the Coal Briquetting Technology
to produce  anything  other than synthetic coal fuel intended to qualify for tax
credits under Section 29(c)(1)(C) of the Internal Revenue Code.

         "Code" means the Internal Revenue Code of 1986, as amended.

         "Developed   Technology"   means  any  inventions,   "Improvement,"  or
technology that Licensor may conceive,  make,  invent,  or suggest in connection
with Licensor's disclosure to Licensee of the Coal Briquetting  Technology,  all
of which the  parties  hereto  acknowledge  and agree  constitutes  the sole and
exclusive   property  of  Licensor.   "Developed   Technology"  also  means  any
inventions,  "Improvement,"  or new  technology  directly  related  to the  Coal
Briquetting  Technology that Licensor or Licensee may conceive,  make, invent or
suggest  relating  to the Coal  Briquetting  Technology  during the Term of this
Agreement; provided, however, that "Developed Technology" shall not include coal
fines recovery,  coal fines washing,  material  handling,  or product  marketing
techniques or technologies  conceived,  made, invented, or suggested by Licensee
that are  generally  applicable  to the coal  industry but which are used at the
Facility in connection with the Coal Briquetting Technology.

         "Effective Date" means the date of this Agreement set forth above.

         "Facility" has the meaning set forth in the preamble.

         "Improvement"  means an  alteration  or  addition  to an  invention  or
discovery  which may  enhance  performance  or  economics  while  maintaining  a
product's,   device's,   or  method's  essential  identity  and  character.   An
"Improvement"  may  comprise  alterations  or  additions  to either  patented or
unpatented inventions,  discoveries,  technology, or devices, and may or may not
be patentable;  provided,  however,  that  "Improvement"  shall not include coal
fines recovery,  coal fines washing,  material  handling,  or product  marketing
techniques or technologies  conceived,  made, invented, or suggested by Licensee
that are  generally  applicable  to the coal  industry but which are used at the
Facility in connection with the Coal Briquetting Technology.

         "Licensee" has the meaning set forth in the preamble.

         "Licensor" has the meaning set forth in the preamble.

         "Proprietary  Binder  Material" means and refers to the binder compound
necessary  for the  production,  by Licensee,  of synthetic  coal  briquettes as
contemplated  under the Purchase  Agreement and which  briquettes are reasonably
expected  to  constitute  "qualified  fuels"  pursuant  to the terms of  Section
29(c)(1)(C)  of the Code and with  respect  to which  Section  29 is  applicable
pursuant to Section 29(f) and 29(g) of the Code.

         "Purchase Agreement" has the meaning set forth in the preamble.

         "Royalty" has the meaning set forth in Section 3.

         Section 2.  License Grant.

                                       2
<PAGE>

         2.1 General. Licensor hereby grants to Licensee a non-exclusive license
to use the Coal Briquetting  Technology,  including Developed  Technology and/or
Improvements relating to the Coal Briquetting Technology, throughout the term of
this  Agreement,  for the  purpose of  commercial  exploitation,  including  the
non-exclusive  right to make,  have made or use at the  Facility and to offer to
sell and to sell or otherwise transfer products that have been manufactured with
the Coal  Briquetting  Technology,  subject to the terms and  conditions of this
Agreement.  Licensee  hereby  accepts the license on the terms hereof.  Licensee
shall not have the right to sublicense the Coal Briquetting Technology.

         2.2  Licensor's  Ownership  of  Developed  Technology.   All  Developed
Technology  and/or   Improvements  are  and  shall  become  Licensor's  absolute
property,  subject to the terms of this  Agreement.  Licensee  shall at any time
during the Term of this  Agreement  and  thereafter,  at  Licensor's  reasonable
request,  execute any patent papers  covering such Developed  Technology  and/or
Improvements as well as any other documents that Licensor may consider necessary
or  helpful  in the  prosecution  of  applications  for a patent  thereon  or in
connection  with  any  litigation  or  controversy  related  thereto;  provided,
however,  that all expenses  incident to the filing of such applications and the
prosecution  thereof  and the  conduct  of such  litigation  shall  be  borne by
Licensor.

         2.3  Exclusive  Technology.  Licensee  agrees  to  use  only  the  Coal
Briquetting  Technology  at the Facility and not to use any other  technology at
the Facility,  except to the extent other or additional technology is necessary.
Licensee shall not use any process or  methodology  that is not part of the Coal
Briquetting Technology, except to the extent that other or additional technology
is necessary.  Licensee (a) shall not make or have made products  using the Coal
Briquetting  Technology  or similar  technology  except at the  Facility and (b)
shall only make and have made products using the Coal Briquetting  Technology at
the  Facility  under  this  License  Agreement,  except to the  extent  other or
additional  technology is  necessary.  Licensee  further  agrees to use the Coal
Briquetting  Technology  only under  authority  of this License  Agreement  with
Licensor. Notwithstanding the foregoing, Licensee may produce Section 29 Product
at the  Facility  without the use of the  Proprietary  Binder  Material and with
binder  material  provided  elsewhere  subject  to the  requirement  to pay  the
additional royalty provided in Section 3.1 hereof.

         2.4  Non-licensed  Technology.  Licensor  retains the absolute right to
fully exploit its technologies including, but not limited to, the application of
such technology embodied in the Coal Briquetting  Technology to produce,  market
and use synthetic coke briquettes from coke breeze,  iron revert materials,  and
any other materials to which Licensor's technology can be applied.

         2.5  Confidentiality.  Each of the parties hereby agree to maintain the
Coal  Briquetting   Technology   confidential  and  not  to  disclose  the  Coal
Briquetting  Technology,   or  any  aspect  thereof,   including  the  Developed
Technology  or  Improvements  (collectively,  the  "Confidential  Information").
Notwithstanding  the foregoing,  information  which (a) is or becomes  generally
available to the public other than as a result of an unauthorized  disclosure by
the parties or their respective agents, employees, directors or representatives,
(b) was available to the party receiving disclosure on a non-confidential  basis
prior to its receiving disclosure  hereunder,  (c) lawfully becomes available to
the party receiving  disclosure on a  non-confidential  basis from a third party
source (provided that such source is not known by the party receiving disclosure
or its agents,

                                       3
<PAGE>

employees,  directors or  representatives to be prohibited from transmitting the
information), or (d) a party is compelled by legal process by any court or other
authority to disclose  shall not be subject to the terms of this Section 2.5. In
the case of (d) above,  the  compelled  party shall give the other party  prompt
written  notice of such legal  process in order that an  appropriate  protective
order can be sought  and each  party  agrees  not to  oppose  the other  party's
efforts  to  prevent  the  disclosure  of  Confidential   Information.   At  the
termination  of this  Agreement,  all  copies  of any  Confidential  Information
(including,  without limitation,  any reports or memoranda) shall be returned by
the  party  receiving  disclosure.  Nothing  in this  Agreement  shall  prohibit
Licensee  from  disclosing  the  Confidential  Information  to  others as may be
reasonably  necessary  for  Licensee  to  exploit  Licensee's  rights  under the
Purchase  Agreement,  and/or this Agreement;  provided that the recipient of any
such Confidential  Information executes a Confidentiality  Agreement restricting
further disclosure of the Confidential Information.

         2.6 Know-How and  Assistance.  To enable Licensee to benefit fully from
the license of the Coal Briquetting Technology, Licensor shall provide access to
all  relevant  documentation,  drawings,  engineering  specifications  and other
know-how in its possession, reasonable access to its employees or agents who are
familiar  with  the  Coal  Briquetting  Technology,  Developed  Technology,  and
Improvements  and shall  provide such  technical  assistance  and training as is
requested  by  Licensee.  If  Licensor  does  not  have  responsibility  for the
operation of the Facility,  Licensee  shall  reimburse  Licensor for  reasonable
travel and other  similar  out-of-pocket  expenses  of  Licensor  in  performing
services under this Section 2.6;  provided  however,  that Licensor shall obtain
the prior approval of Licensee for any expenditures in excess of $5,000.

         Section 3.  Royalty.

         3.1 Royalty Payments. During the term of this Agreement, Licensee shall
pay to  Licensor  a  royalty  in an  amount  equal to $** per ton for the  first
360,000  tons  per  calendar  year,  and $** per ton for all tons in  excess  of
360,000 tons in a calendar year, of Section 29 Product  produced at the Facility
and sold during the period  commencing on the  effective  date hereof and ending
upon the expiration of the term (or earlier termination) of this Agreement. Such
royalty  shall be paid  quarterly  on the last day of January,  April,  July and
October  of each year for the  Section  29  Product  sold  during  the  previous
calendar quarter. In the event that, during the term of this Agreement, Licensee
elects to use a binder  material  other than the  Proprietary  Binder  Material,
Licensee will pay an additional royalty to Licensor in the amount of $** per ton
of Section 29 Product produced at the Facility,  without the Proprietary  Binder
Material, and sold to any third-party customer.

                                       4
<PAGE>

         Section 4.  Sales of Binder.

         4.1 Sale and Purchase.  Licensor  shall sell to Licensee,  and Licensee
shall  purchase from  Licensor,  all of Licensee's  requirements  of Proprietary
Binder  Material  required to operate the Facility.  Licensor  shall deliver the
Proprietary  Binder  Material at such times and in such  amounts as requested by
Licensee.  Licensor  shall  invoice  Licensee for  Proprietary  Binder  Material
monthly.  Payments for Proprietary  Binder Material delivered by Licensor during
any  calendar  month shall be due and payable to Licensor on the tenth  business
day of the immediately succeeding month.

         4.2  Price.  The price  which  Licensee  shall pay for the  Proprietary
Binder Material delivered by Licensor shall be an amount equal to (a) Licensor's
direct and actual costs  (including,  but not limited to,  material,  labor, and
transportation  costs) and a percentage of the total  overhead costs of Licensor
reasonably  reflecting  the  ratio  of  the  administrative  costs  incurred  in
connection  with the  manufacture  and sale of the  Proprietary  Binder Material
(estimated at the date hereof to be $** per unit of Proprietary  Binder Material
necessary to create one (1) ton of synthetic  fuel  product),  payable within 30
days  of  receipt  of an  invoice  therefor,  plus  (b) **  ($**)  per  unit  of
Proprietary  Binder  Material  necessary to create one (1) ton of synthetic fuel
product,  payable for the preceding calendar quarter on the last day of January,
April, July and October of each year.

         4.3  Licensor  Representations  and  Warranties.  Licensor  represents,
warrants and covenants as follows:

                  (a)  Licensor  shall  convey  to  Licensee  good  title to all
Proprietary Binder Material purchased by Licensee from Licensor hereunder,  free
and clear of any and all liens, claims and encumbrances of any type whatsoever.

                  (b) No Proprietary Binder Material shall contain any hazardous
material in violation of applicable laws and governmental regulations.

                  (c) At Licensee's reasonable request,  Licensor shall replace,
or  refund  the  purchase  price  of,  all  non-conforming  Proprietary  Binding
Material.

                  (d) Proper use of the Coal Briquetting  Technology,  including
use at an adequate,  qualified  Facility and with adequate  feedstocks and other
raw  materials,  will enable  Licensor to produce a product  which is reasonably
expected  to  constitute  "qualified  fuels"  pursuant  to the terms of  Section
29(c)(1)(C) of the Code.

         4.4 Order  Procedure.  Licensee  shall deliver all purchase  orders for
Proprietary  Binder  Material at least  thirty (30) days in advance of the first
day of the  month in which  delivery  of such  Proprietary  Binder  Material  is
required  under such  purchase  order.  (For example,  Licensee  shall deliver a
purchase order for December  delivery by no later than November 1st).  Each such
purchase order shall be delivered  either (a) in writing  (including by fax), or
(b) orally by  telephone  by an  authorized  agent of  Licensee  (subject to the
condition that it is followed by a

                                       5
<PAGE>

written  purchase order within 24 hours).  Such purchase orders shall be sent to
Licensor at such address as Licensor shall direct.

         4.5 Delivery and Acceptance.  All Proprietary Binder Material purchased
hereunder shall be delivered F.O.B. the Facility. Licensor shall arrange for any
necessary  transportation  of the  Proprietary  Binder Material to the Facility.
Licensee  shall bear the expense of unloading the  Proprietary  Binder  Material
from  the  trucks.  Licensee  shall  have a  reasonable  opportunity  to  sample
Proprietary  Binder  Material  delivered  to it  hereunder  to confirm that such
Proprietary  Binder Material conforms to the terms and requirements  hereof, and
Licensee shall not be deemed or required to accept any such  Proprietary  Binder
Material prior to the completion of such sampling.

         4.6 Delivery of Binder Material.  If Licensor's  ability to deliver the
Proprietary  Binder  Material to Licensee will be  interrupted or terminated for
any  reason,  Licensor  shall  give not less than  ninety  (90)  days  notice to
Licensee.  Subject to giving notice of its inability to deliver the  Proprietary
Binder  Material to Licensee  (or,  in the  absence of such  notice,  the actual
failure to deliver the Proprietary Binder Material for at least twenty (20) days
after  Licensee  gives written  notice of  non-delivery  to Licensor),  Licensor
hereby grants to Licensee a nonexclusive  license for the term of this Agreement
(or such shorter period as provided in the proviso hereto) to use the technology
used to manufacture the Proprietary Binder Material, and the copy of the Formula
delivered in escrow  pursuant to Section  4.7, to  manufacture  the  Proprietary
Binder  Material  in  sufficient  quantities  to operate  the  Facility  to full
capacity, and such technology shall be deemed "Coal Briquetting  Technology" for
the purposes of this Agreement;  provided,  however, that the license granted to
Licensee under this Section 4.6 shall cease (subject to  reinstatement  upon the
reoccurrence of the events  contemplated  above) and sales of Proprietary Binder
Material under the terms of this Agreement shall be reinstated, in each case, on
a date not less than ninety (90) days after  Licensor  gives notice to Licensee,
together with evidence reasonably satisfactory to Licensee that Licensor is able
to deliver the Proprietary Binder Material in accordance with this Agreement. No
additional  fee or royalty shall be payable to Licensor in  connection  with the
License  granted  pursuant to this Section 4.6 and Licensor shall be responsible
for any additional  out-of-pocket  costs incurred by Licensee in connection with
the production of Proprietary Binder Material pursuant to this Section 4.6.

         4.7 Escrow of Binder  Material  Formula.  As a material  inducement for
Licensee  entering  into this  Agreement  and for the Buyer  under the  Purchase
Agreement  entering  into  the  Purchase  Agreement,  and in  order  to  provide
assurance  to  Licensee of access to an adequate  and  continuing  supply of the
Proprietary  Binder Material during the term of this Agreement,  Licensor agrees
to place in escrow with Licensee the formula and technology  used to manufacture
the  Proprietary   Binder  Material  (the  "Formula")  as  provided  herein.  In
connection therewith,  Licensor agrees to deposit with Licensee, within ten (10)
days of the date of this  Agreement,  a copy of the Formula.  During the term of
this  Agreement,  Licensor  shall keep the  Formula in escrow  fully  current by
depositing  all updates and  revisions  thereto  and related  materials,  as the
Formula may be updated or revised from time to time. Such supplemental  deposits
will be  completed  no later  than ten (10)  days  after the date of use of such
revised Formula by Licensor.  Title to the Formula shall remain in Licensor, but
title to the copy  thereof to be  deposited in escrow  hereunder  shall,  in the
event the Formula  shall be released  for use to Licensee as provided in Section
4.6, pass to and vest in Licensee.  Licensee shall hold such copy of the Formula
and

                                       6
<PAGE>

any supplements in a safe-deposit box at a financial  institution located in the
Detroit/Ann  Arbor,  Michigan  region  designated  by  Licensee  and  reasonably
approved by Licensor.  Notwithstanding its ownership of a copy of the Formula in
such event,  Licensee's  use of the Formula shall remain subject to the terms of
this Agreement.

         Section 5.  Records;  Inspection;  Confidentiality.  Each party  hereto
shall keep accurate  records  containing  all data  reasonably  required for the
computation and verification of the amounts to be paid by the respective parties
under  this  Agreement,  and shall  permit  each other  party or an  independent
accounting  firm  designated  by such other party to inspect  and/or  audit such
records during normal business hours upon reasonable  advance notice.  All costs
and expenses  incurred by a party in connection  with such  inspection  shall be
borne by it. Each party agrees to hold  confidential  from all third parties all
information contained in records examined by or on behalf of it pursuant to this
Section 5; provided, however, that information which (a) is or becomes generally
available to the public other than as a result of an unauthorized  disclosure by
the parties or their respective agents, employees, directors or representatives,
(b) was available to the party receiving disclosure on a non-confidential  basis
prior to its receiving disclosure  hereunder,  (c) lawfully becomes available to
the party receiving  disclosure on a  non-confidential  basis from a third party
source (provided that such source is not known by the party receiving disclosure
or its agents,  employees,  directors or  representatives  to be prohibited from
transmitting the  information),  or (d) a party is compelled by legal process by
any court or other  authority  to disclose  shall not be subject to the terms of
this  Section 5. In the case of (d) above,  the  compelled  party shall give the
other  party  prompt  written  notice of such  legal  process  in order  that an
appropriate  protective  order can be sought and each party agrees not to oppose
the other party's efforts to prevent the disclosure of such information.  At the
termination  of this  Agreement,  all  copies  of such  information  (including,
without  limitation,  any reports or  memoranda)  shall be returned by the party
receiving disclosure.

         Section 6. Enforcement of Proprietary Rights.  Licensee shall cooperate
in good faith,  with Licensor's  efforts to enforce its  proprietary  patent and
trade secret rights.

         Section 7.  General Representations and Warranties.

         7.1  Authority.  Each of Licensee and Licensor  represents and warrants
that (a) the  execution,  delivery and  performance  of this  Agreement  and the
consummation of the transactions  contemplated  hereby have been duly authorized
on its behalf by all requisite  action,  corporate or otherwise,  (b) it has the
full right,  power and  authority to enter into this  Agreement and to carry out
the  terms  of this  Agreement,  (c) it has duly  executed  and  delivered  this
Agreement,  and (d) this  Agreement  is a valid  and  binding  obligation  of it
enforceable in accordance with its terms.

         7.2 No Consent.  Each of Licensee and Licensor  represents and warrants
that no approval, consent,  authorization,  order, designation or declaration of
any court or regulatory  authority or  governmental  body or any  third-party is
required to be obtained by it, nor is any filing or registration  required to be
made therewith by it for the consummation by it of the transactions contemplated
under this Agreement.

         7.3 Intellectual  Property  Matters.  Licensor  represents and warrants
that (a) it owns, free and clear of all liens and encumbrances,  patents related
to the Coal Briquetting Technology

                                       7
<PAGE>

(including,  but  not  limited  to,  United  States  Patent  Numbers  5,599,361,
5,487,764 and  5,453,103)  and has developed  the Coal  Briquetting  Technology,
including, but not limited to, printed and not printed technical data, know-how,
trade secrets,  copyrights, and other intellectual property rights and all other
scientific or technical information in whatever form relating to, embodied in or
used in the process to produce  synthetic coal fuel  briquettes  from waste coal
dust, coal fines, run of mine coal and other similar coal derivatives,  and, the
right to freely make, use, sell and exploit  Proprietary Binder Material used in
manufacturing  synthetic coal fuel  briquettes  from waste coal dust, coal fines
and other similar coal  derivatives,  (b) it has the right and power to grant to
Licensee the  licenses  granted  herein,  and (c) the sale or use of the rights,
Proprietary  Binder Material  and/or licenses  granted herein as contemplated by
this Agreement will not infringe any third-party's intellectual property rights.

         7.4  Indemnification.  Each party agrees to indemnify,  defend and hold
harmless the other party and its partners, directors, officers, members, agents,
representatives,  subsidiaries  and  affiliates  from  and  against  any and all
claims,  demands or suits (by any party,  including  any  governmental  entity),
losses,  liabilities,   damages,  obligations,   payments,  costs  and  expenses
(including  the  costs  and  expenses  of  enforcing  this  indemnification  and
defending  any and all actions,  suits,  proceedings,  demands and  assessments,
which shall include reasonable  attorneys' fees and court costs) resulting from,
relating to, arising out of, or incurred in connection with any breach of any of
the representations, warranties and/or covenants contained in this Agreement.

         Section  8.  Term.  The  term  of  this  Agreement  is for  the  period
commencing  on the Effective  Date of this  Agreement and ending on the later of
(a) 31 December  2007,  (b) the full term of Section 29 of the Code,  or (c) the
last to expire of the U.S.  patents in existence at the  Effective  Date of this
Agreement  that  disclose  and  claim  Covol's   proprietary   Coal  Briquetting
Technology  as  defined  herein.  Any  extension  of this  Agreement  must be in
writing, signed by both parties.

         Section  9.  Termination.  This  Agreement  shall  terminate  upon  the
termination  date set forth in Section 8,  unless the  Agreement  is  terminated
sooner pursuant to this Section 9.

         9.1  Termination  for Cause. In addition to any other remedies that may
exist,  either party may  terminate  this  Agreement  for cause in the event the
other party  commits a material  breach of any  provision  of this  Agreement by
giving the other  party at least  sixty (60) days prior  written  notice of such
termination, unless such default or breach is cured within said sixty (60) days.
If either party  terminates this Agreement  pursuant to this Section 9, Licensee
shall  promptly  return and cause all agents of Licensee  to promptly  return to
Licensor all Confidential  Information and all Coal Briquetting  Technology then
in Licensee's  possession,  and Licensee  shall not  thereafter  use for its own
commercial benefit or disclose to any third person any Confidential  Information
or Coal Briquetting Technology during the period ending three (3) years from the
date of such termination.  Notwithstanding the foregoing,  information which (a)
is or becomes  generally  available  to the public  other than as a result of an
unauthorized  disclosure  by the  Licensee or its  respective  members,  agents,
employees, directors or representatives,  (b) was available to the Licensee on a
non-confidential basis prior to its receiving disclosure hereunder, (c) lawfully
becomes available to the Licensee on a non-confidential basis from a third party
source  (provided  that such source is not known by the Licensee or its members,
agents,   employees,   directors  or   representatives  to  be  prohibited  from
transmitting the information), or (d) the Licensee is

                                       8
<PAGE>

compelled by legal process by any court or other authority to disclose shall not
be  subject  to the terms of the duty to protect  Confidential  Information  set
forth in this  section.  In the case of (d) above,  the Licensee  shall give the
Licensor  prompt  written  notice  of  such  legal  process  in  order  that  an
appropriate  protective  order can be sought and  Licensee  agrees not to oppose
Licensor's efforts to prevent the disclosure of Confidential Information.

         9.2 Termination for Insolvency or Ceasing Business.  This Agreement may
be terminated by either party if:

           (a) The other party  becomes  insolvent or is unable to pay its debts
as they fall due, seeks protection  voluntarily or  involuntarily  under any law
relating to bankruptcy, receivership, insolvency,  administration,  liquidation,
dissolution or similar law of any jurisdiction (other than for the purposes of a
reorganization  with a view to continuing  the business as a going concern under
relevant  bankruptcy  or  insolvency  proceedings)  or  enters  into  a  general
assignment  or  arrangement  or a  composition  with or for the  benefit  of its
creditors; or

           (b)  The  other  party  takes  any  step  (including  the  filing  or
presentation  of a  petition,  the  convening  of a meeting  or the filing of an
application  or  consent)  in any  jurisdiction  for,  or  with a view  to,  the
appointment of an administrator,  liquidator,  receiver,  trustee,  custodian or
similar official (other than for the purposes of a reorganization with a view to
continuing  the  business  as a  going  concern  under  relevant  bankruptcy  or
insolvency  proceedings)  for such  party  and/or  the  whole or any part of the
business,  undertaking,  property,  assets, receiver or uncalled capital of such
party Licensee or any such person is appointed.

         9.3 Effect of  Termination.  Upon  termination of this  Agreement,  all
rights granted to and future obligations of the parties shall immediately cease;
however  termination  shall not relieve either party of its obligations  accrued
during the term of this  Agreement  (including  any  pre-termination  obligation
Licensee  may  have to pay  Licensor)  which  has not  been  fulfilled,  and all
representations,  warranties,  indemnification  obligations and  confidentiality
agreements made herein shall survive termination of this Agreement.

         Section  10.  Effectiveness  of  Certain  Provisions.   Notwithstanding
anything herein to the contrary,  Licensee shall not be obligated under Sections
2.3,  3.1 or 4.1 hereof  unless and until  Licensee  has  entered  into  binding
agreements  with a third party to relocate  and place the Facility at a suitable
location  and to sell the  output of the  Facility,  all  pursuant  to terms and
conditions mutually acceptable to Licensee and a third party.

         Section 11. Waiver. The failure of any party to enforce at any time any
provision of this Agreement shall not be construed as a waiver of such provision
or the right  thereafter to enforce each and every  provision.  No waiver by any
party, either express or implied, of any breach of any of the provisions of this
Agreement  shall be  construed  as a waiver of any other  breach of such term or
condition.

         Section 12.  Severability.  If any provision of this Agreement shall be
held by a court of competent  jurisdiction to be invalid or unenforceable in any
respect for any reason, the validity and enforceability of any such provision in
any other respect and of the remaining provisions of this Agreement shall not be
in any way impaired.

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<PAGE>

         Section  13.  Notices.  All  notices  required  or  authorized  by this
Agreement shall be effective upon receipt and given to the parties in writing by
fax, mail, or courier as follows:

         To Licensor:          Brent M. Cook, President
                               Covol Technologies, Inc.
                               3280 North Frontage Road
                               Lehi, Utah 84043
                               Fax:  (801) 768-4481

         To Licensee:          DTE Kentucky, LLC
                               425 South Main Street
                               Suite 201
                               Ann Arbor, Michigan  48104
                               Fax:  (734) 668-9739
                               Attn:  Manager of Assets

         With a copy to:       DTE Energy Services, Inc.
                               425 South Main Street
                               Suite 201
                               Ann Arbor, Michigan  48104
                               Fax: (734) 668-1028
                               Attn:  General Counsel

         Section 14. Remedies Cumulative. Remedies provided under this Agreement
shall be  cumulative  and in  addition to other  remedies  provided by law or in
equity.

         Section  15.  Entire  Agreement.  This  Agreement,  together  with  the
Transaction  Documents (as defined in the Purchase  Agreement),  constitutes the
entire agreement of the parties relating to the subject matter hereof. There are
no promises,  terms,  conditions,  obligations,  or warranties  other than those
contained  herein and therein.  This  Agreement  and the  Transaction  Documents
supersede  any and all prior  communications,  representations,  or  agreements,
verbal or written,  between the parties  relating to the subject  matter hereof.
This  Agreement  may not be  amended  except in  writing  signed by the  parties
hereto.

         Section  16.  Governing  Law.  This  Agreement  shall  be  governed  in
accordance with the laws of the State of New York,  exclusive of its conflict of
laws rules.

         Section 17. Assignment. This Agreement may not be assigned, in whole or
in part,  by any party  without the written  consent of the other  party,  which
consent shall not be  unreasonably  withheld,  except that Licensor and Licensee
shall have the right to assign their  respective  rights and  obligations  under
this Agreement to any entity which is controlled by Licensor or Licensee, as the
case may be,  and of  which  Licensor  or  Licensee,  as the case may be,  owns,
directly  or  indirectly,  at least  fifty  percent  (50%) of each  class of its
outstanding securities,  provided that no such assignment shall release Licensor
or Licensee, as the case may be, from their respective obligations hereunder.

                  [Remainder of page intentionally left blank]

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<PAGE>

         Executed by the duly  authorized  representative  of the parties on the
date and year first above written.

COVOL TECHNOLOGIES, INC.                   DTE KENTUCKY, LLC



By: /s/ Kirk A. Benson                     By:  /s/  Kent L. McCargar
    ----------------------------               -------------------------------
Name:  Kirk A. Benson                      Name:   Kent L. McCargar
Its:     CEO                               Its: Vice President and Chief
                                                Financial Officer

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