Document:

Exhibit 10.60.3

                     FIRST AMENDMENT TO EMPLOYMENT AGREEMENT

         This first amendment to employment agreement (this "Agreement") is
effective on October 1, 2001 by and between ISG Resources, Inc. ("Employer")
with its principal place of business located at 136 East South Temple, Suite
1300, Salt Lake City, Utah 84111 and Raul A. Deju ("Employee"), an individual
who resides in Moraga, California.

         WHEREAS, JTM Industries, Inc. ("JTM") and Employee entered into an
Employment Agreement on October 14, 1997 (the "Employment Agreement") and
whereas JTM was merged into Employer on January 1, 1999;

         WHEREAS Employer and Employee desire to amend the Employment Agreement
as set forth herein.

         NOW, THEREFORE, in consideration of the premises and mutual covenants
contained herein and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties agree as set forth
herein.

         1. Section 3 of the Employment Agreement is amended to provide that the
term of employment shall run through December 31, 2003 (the "Term"), and all
other obligations of Employer shall be extended for a like period. At the
expiration of the Term, this Agreement shall be automatically extended for
additional terms of one year, unless one party notifies the other party of its
desire to not extend the term of this Agreement by giving written notice of such
desire to the other party, in writing, by October 1 of the year of the then
current term.

         2. Section 4 (a) of the Employment Agreement is amended to provide that
Employee's Base Salary shall be increased to the rate of three hundred forty
thousand dollars ($340,000).

         3. The remaining provisions of the Employment Agreement shall remain in
full force and effect. Reference is craved to the Employment Agreement for
specific terms and conditions thereof which are incorporated herein by
reference, except as amended by this Agreement.

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

ISG RESOURCES, INC.                                  RAUL A. DEJU

/s/ R. Steve Creamer                                 /s/ Raul A. Deju
                                                    ----------------------------
By: R. Steve Creamer                                  Raul A. Deju
Its: CEO

<PAGE>

                              EMPLOYMENT AGREEMENT

         EMPLOYMENT AGREEMENT, dated as of October 14, 1997 (this "Agreement"),
by and between JTM Industries. Inc. (the "Company") and Raul Deju (the
"Executive").

         WHEREAS, simultaneous with and effective upon the acquisition of the
Company by Industrial Quality Services, Inc., a Delaware corporation from
Laidlaw, Inc. the Company desires to employ the Executive as President and Chief
Operating Officer of the Company; and

         WHEREAS, the Executive desires to be retained in such capacity on the
terms and conditions set forth herein, effective upon the consummation of such
acquisition (the "Commencement Date"), it being understood and acknowledged that
if the consummation of the acquisition shall not occur, this Agreement shall
have no force or effect.

         NOW, THEREFORE, in consideration of the premises and the mutual
agreements made herein, the Company and the Executive agree as follows:

         1. No Conflict. The Executive represents to the Company that the
execution, delivery and performance by the Executive of this Agreement do not
and shall not conflict with or result in a violation or breach of, or constitute
(with or without notice or lapse of time or both) a default under any contract,
agreement or understanding, whether oral or written, to which the Executive is a
party or of which the Executive is or should be aware.

         2. Employment: Duties. The Company shall employ the Executive as
President and Chief Operating Officer for the "Employment Period" as defined in
Section 3. The Executive, in his capacity as President Chief Operating Officer,
shall have such duties, responsibilities and authority normally incident to such
office. The precise duties, responsibilities and authority of the Executive may
be expanded, limited or modified, at any time and from time to time, at the
discretion of the Board of Directors of the Company (the "Board"). During the
Employment Period, the Executive shall render his business services primarily in
the performance of his duties hereunder, and the Executive agrees that during
the term of his employment hereunder, he shall devote substantially all of his
working time, attention, knowledge and experience and give his best effort,
skill and abilities, to promote the business and interests of the Company. Other
than as set forth on Schedule A hereto, the Executive may not serve as an
officer or director of, make investments in, or otherwise participate in, any
other entity without the prior written consent of the Board; provided, however,
that the foregoing shall not prevent the Executive from acquiring, directly or
indirectly, solely as an investment, not more that five percent (5%) of any
class of securities of any entity that are registered under Section 12(b) or
12(g) of the Securities Exchange Act of 1934, as amended, including the
regulations issued thereunder.

         3. Employment Period. This Agreement shall have a term of three years,
commencing as of the Commencement Date and ending on the third anniversary of
the Commencement Date (the "Initial Period"), unless sooner terminated in

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accordance with the provisions of Section 9. On the expiration of the Initial
Period and on each yearly anniversary thereof, this Agreement shall
automatically renew for an additional one-year period, unless sooner terminated
in accordance with the provisions of Section 9, unless the Company or the
Executive notifies the other in writing of its intention not to renew this
Agreement not less than sixty (60) days prior to such expiration date or
anniversary, as the case may be. The term of this Agreement, as in effect from
time to time, is referred to herein as the "Employment Period".

         4. Compensation and Benefits.

         (a) Base Compensation. The Executive shall be paid an aggregate base
salary (the "Base Salary") at the rate of $140,000 per annum, less statutory
deductions and withholdings. The Base Salary shall be payable in a manner
consistent with the normal payroll practices of the Company as in effect from
time to time. The Base Salary shall be reviewed annually by the Compensation
Committee of the Board (the "Committee").

         (b) Annual Bonus. In addition to the Base Salary, the Executive may be
entitled to receive a discretionary annual bonus for each year during the
Employment Period based upon such factors as shall be established by the
Committee, at the sole discretion of the Committee.

         (c) Employee Benefits. The Executive shall be entitled to participate
in each and every employee benefit and group insurance plan and program provided
by the Company for its officers and employees generally, in accordance with the
terms of the applicable plan documents as they may be amended from time to time,
substantially consistent with the employee benefits being provided to the
officers and/or employees of the Company as of the date immediately preceding
the effectiveness of this Employment Agreement.

         (d) Business Expense Reimbursement. The Company shall reimburse the
Executive for all reasonable and necessary business and travel expenses that the
Executive incurs in connection with the Executive's performance of services for
the Company hereunder, in accordance with the reimbursement policies established
by the Company from time to time (which, the parties hereto acknowledge, shall
be consistent with the policies of the Company as they relate to business
expense reimbursement as of the date immediately preceding the effectiveness of
this Employment Agreement), and shall reimburse the Executive for the reasonable
expenses associated with the maintenance of an office in California, provided
that such reimbursement shall be limited to $3,000 per month.

         5. Confidentiality. The Executive recognizes that it is in the
legitimate business interest of the Company to restrict his disclosure or use of
Trade Secrets and Confidential Information relating to the Company and its
direct or indirect subsidiaries, parents or affiliates for any purpose other
than in connection with his performance of his duties to the Company, and to
limit any potential appropriation of such Trade Secrets and Confidential
Information by the Executive. The Executive therefore agrees that both during
and at all times after the Employment Period, be shall maintain as confidential
all Trade Secrets and Confidential Information relating to the Company and its
direct or indirect subsidiaries, parents or affiliates heretofore or in the
future obtained by the Executive The terms "Trade Secrets" and/or "Confidential

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Information" means matters protected by the Uniform Trade Secrets Act as stated
in California Civil Code Sections 3426 through 3426.10 and as interrupted under
California law. Confidential Information includes matters of a significant
technical or business nature that have been maintained as confidential or the
disclosure of which could likely have an adverse effect upon the interests of
the Company or its direct or indirect subsidiaries, parents or affiliates.

         6. Return of Documents and Property. Upon the termination of the
Executive's employment with the Company, or at any time upon the request of the
Company, the Executive (or his heirs or personal representatives) shall deliver
to the Company (a) all documents and materials (including, without limitation,
computer files) containing Trade Secrets or other Confidential Information
relating to the business and affairs of the Company and its direct and indirect
subsidiaries, parents or affiliates, and (b) all documents, materials and other
property (including. without limitation, computer files) belonging to the
Company or its direct or indirect subsidiaries, parents or affiliates, which in
either case are in the possession or under the control of the Executive (or his
heirs or personal representatives).

         7. Discoveries and Works. All Discoveries and Works made or conceived
by the Executive during his employment by the Company, whether during the
Employment Period or at any time prior thereto, whether or not on the property
or premises of the Company, jointly or with others, which relate to the
activities of the Executive with the Company or its direct or indirect
subsidiaries, parents or affiliates shall be owned by the Company or its direct
or indirect subsidiaries, parents or affiliates. The term "Discoveries and
Works" includes, by way of example but without limitation, Trade Secrets and
other Confidential Information, patents and patent applications, trademarks and
trademark registrations and applications, service marks and service mark
registrations and applications, trade names, copyrights and copyright
registrations and applications. The Executive shall (a) promptly notify, make
full disclosure to, and execute and deliver any documents requested by, the
Company, as the case may be, to evidence or better assure title to Discoveries
and Works in the Company or its direct or indirect subsidiaries, parents or
affiliates, as so requested, (b) renounce any and all claims, including but not
limited to claims of ownership and royalty, with respect to all Discoveries and
Works and all other property owned or licensed by the Company or its direct or
indirect subsidiaries, parents or affiliates, (c) assist the Company or its
direct or indirect subsidiaries, parents or affiliates in obtaining or
maintaining for itself at its own expense United States and foreign patents,
copyrights, trade secret protection or other protection of any and all
Discoveries and Works, and (d) promptly execute, whether during his employment
with the Company or thereafter, all applications or other endorsements necessary
or appropriate to maintain patents and other rights for the Company or its
direct or indirect subsidiaries, parents or affiliates and to protect the title
of the Company or its direct or indirect subsidiaries, parents or affiliates
thereto, including but not limited to assignments of such patents and other
rights. The Executive acknowledges that all Discoveries and Works shall be
deemed "works made for hire" under the Copyright Act of 1976, as amended, 17
U.S.C. ss.101.

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         8. Noncompetition and Nonsolicitation.

         (a) Restrictive Covenant. The Executive agrees that he shall, during
the Restricted Period (as defined below), refrain from, either alone or in
conjunction with any other Person, or directly or indirectly through his present
or future affiliates or Associates (as defined below):

                  (i) (except pursuant to his duties performed for the Company
         during the Employment Period) directly or indirectly, owning, managing,
         operating, joining, or having a financial interest in, controlling or
         participating in the ownership, management, operation or control of, or
         being employed as an employee, agent or the Executive, or in any other
         individual or representative capacity whatsoever, or using or
         permitting his name to be used in connection with, or lending
         assistance (financial or otherwise) to or being otherwise connected in
         any manner with any business or enterprise engaged in the Restricted
         Business (as defined below) within any portion of the United States
         (whether or not such business is physically located within the United
         States); provided, however, that nothing contained herein shall be
         construed as preventing the Executive from engaging in the ownership,
         purchase and/or sale of landfills; and

                  (ii) soliciting, inducing, entering into any agreement with,
         or attempting to influence any individual who the Executive, after due
         inquiry, knows is an employee of the Company or any of its
         subsidiaries, parents or affiliates during the Restricted Period to
         terminate his or her employment relationship with the Company or such
         subsidiary or affiliate, or to become employed by the Executive or any
         affiliate or associate of the Executive or any person by which the
         Executive is employed, or interfering in any other way with the
         employment, or other relationship, of the Company or such subsidiary,
         parent or affiliate and any employee thereof.

         (b) Definitions. As used herein:

                  (i) "Associate" means with respect to any person, any
         corporation or other business organization of which such person is an
         officer, employee or partner or is the beneficial owner, directly or
         indirectly, of ten percent (10%) or more of any class of equity
         securities, any trust or estate in which such person has a substantial
         beneficial interest or as to which such person serves as a trustee or
         in a similar capacity and any relative or spouse of such person, or any
         relative of such spouse;

                  (ii) "Cause" shall mean (i) the willful and continued failure
         of the Executive to follow the lawful directions of the Board, (ii) any
         act of fraud or dishonesty, misappropriation or embezzlement, or
         willful and material misconduct in connection with the performance of
         the Executive's duties hereunder, (iii) a material breach by the
         Executive of any material provision hereof or of any material
         contractual or material legal duty to the Company (including, but not
         limited to, the unauthorized disclosure of Trade Secrets or other
         Confidential Information), after written notice thereof from the Board
         and a 30-day opportunity to cure in the event that such breach is
         curable, (iv) the conviction of the Executive of a felony or other
         crime or offense involving moral turpitude (including pleading guilty
         or no contest to such a crime or offense or a lesser charge which
         results from plea bargaining), whether or not committed in connection
         with the business of the Company, (v) the Executive's alcohol or
         substance abuse or (vi) a material breach by the Executive of the

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         provisions of any stockholders agreement or other agreement relating to
         the Executive's acquisition of an equity interest in the Company to
         which the Executive may become a party on or after the Commencement
         Date after written notice thereof from the Board and a 30-day
         opportunity to cure in the event that such breach is curable.

                  (iii) "Good Reason" shall mean a material breach by the
         Company of any material provision hereof (after written notice thereof
         from the Executive and a 30-day opportunity to cure in the event that
         such breach is curable); a transfer of the Executive's customary place
         of employment to a location more than 40 miles from Salt Lake City,
         Utah; or a material change in the nature of the Executive's duties,
         title or responsibility without the consent of the Executive.

                  (iv) "Restricted Business" means the provision of coal
         by-product ("CCB") management services, such as collection, removal,
         disposal and marketing of fly-ash and other CCBs.

                  (v) "Restricted Period" means the Employment Period, and the
         period thereafter equal to (i) three years in the case of a termination
         of the Employment Period by the Company with Cause or by the Executive
         without Good Reason, or (ii) two years in the case of a termination of
         the Employment Period for any other reason (including by reason of
         expiration of the term of the Agreement).

         (c) Reasonableness of Restrictions. The Executive acknowledges and
agrees that the restrictions set forth in this Section 8, and, specifically, the
period of time designated as the Restricted Period and geographical area
specified hereunder, are reasonable in view of the nature of the business in
which the Company is engaged, and the Executive's particular knowledge of the
Company's and its subsidiaries, parents and affiliates' respective businesses,
and the Executive hereby agrees not to challenge in any way, or to otherwise
raise a defense to, the enforceability of any of the restrictions set forth in
this Section 8 during the Restricted Period in any manner whatsoever, including
but not limited to challenging the reasonableness of the restrictions set forth
herein.

         (d) Enforceability of Restrictive Covenant. It is the understanding of
the Executive and the Company that the provisions of this Section 8 be enforced
to the fullest extent permissible under the laws and policies of each
jurisdiction in which enforcement may be sought, and that the unenforceability
(or the modification to conform to such laws or policies) of any provisions of
this Section shall not render unenforceable, or impair, the remainder of the
provisions of this Section 8, or of this Agreement.

         9. Termination.

         (a) The Company or the Executive may terminate this Agreement, with or
without cause, with or without prior notice. In the event the Company terminates
this Agreement or the Executive resigns from employment, the Executive's rights
and the obligations of the Company hereunder shall cease as of the effective

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date of the termination, including, without limitation, the right to receive the
Base Salary, any Bonus Award and all other compensation or benefits provided for
in this Agreement, and the Executive hereby acknowledges and agrees that no
severance or similar or other damages or payments of any kind whatsoever shall
be payable to the Executive due to, in connection with, or in the event of, the
Executive's termination or resignation from employment for any reason.

         (b) Termination Without Cause; Resignation for Good Reason. In the
event the Company terminates this Agreement without Cause, or the Executive
resigns for Good Reason, the Executive shall be entitled to continue to receive
payments of his Base Salary for the balance of the then-existing Employment
Period, payable at such times and in such amounts as if this Agreement were not
terminated; provided, however, that the period during which the Executive shall
be entitled to continue to receive payments of his Base Salary, any Bonus Award
and all other compensation or benefits provided for in this Agreement, and the
Executive hereby acknowledges and agrees that, except for the Accrued
Obligations, no severance or similar or other damages or payments of any kind
whatsoever shall be payable to the Executive due to, in connection with, or in
the event of, such termination or resignation. Notwithstanding the foregoing,
such continuation of Base Salary shall immediately cease upon any violation by
the Executive of the restrictions contained in Sections 5, 6, 7 and 8 hereof,
provided, that if such violation is curable, the Company shall have first given
the Executive notice thereof and a period of 30 days in which to cure such
violation.

         (c) Termination for Cause: Resignation without Good Reason. In the
event the Company terminates this Agreement for Cause or in the event that the
Executive resigns from his employment under this Agreement without Good Reason,
the Executive's rights hereunder shall cease as of the effective date of the
termination, including, without limitation, the right to receive the Base
Salary, and Bonus Award and all other compensation or benefits provided for in
this Agreement. In such event, the Executive hereby acknowledges and agrees
that, except for the Accrue Obligations, no severance or similar or other
damages or payment of any kind whatsoever shall be payable to the Executive due
to, in connection with, or in the event of, such termination.

         (d) Disability: Death. If, prior to the expiration of the Employment
Period or the termination of this Agreement, the Executive shall be unable to
perform his duties by reason of mental or physical disability for at least
one-hundred eighty (180) consecutive days or any one-hundred eighty (180) days
(whether or not consecutive ) in any three-hundred sixty (360) consecutive day
period, the Company may terminate this Agreement and the remainder of the
Employment Period by giving written notice to the Executive to that effect.
Immediately upon the giving of such notice, the Employment Period shall
terminate. Upon termination of this Agreement pursuant to this Section 9(d), the
Executive shall be paid, in addition to the Accrued Obligations, his Base Salary
for the month in which notice is given. In the event of a dispute as to whether
the Executive is disabled within the meaning of Section 9(d), either party may
from time to time request a medical examination of the Executive by a doctor
appointed by the Chief of Staff of a hospital selected by mutual agreement of
the parties, or as the parties may otherwise agree, and the written medical
opinion of such doctor shall be conclusive and binding upon the parties as to
whether the Executive has become disabled and the date when such disability

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arose. If, prior to the expiration of the Employment Period or the termination
of this Agreement, the Executive shall die, the Executive's estate shall be
paid, in addition to the Accrued Obligations, his Base Salary through the end of
the month in which the Executive's death has occurred, at which time the
Employment Period shall terminate without further notice and the Company shall
have no further obligations hereunder.

         10. Enforcement.

         (a) Equitable Relief. The Executive agrees that the remedies at law for
any breach or threat of breach by him of any of the provisions of Sections 5, 6,
7, and 8 hereof will be inadequate, and that, in addition to any other remedy to
which the Company may be entitled at law or in equity, the Company shall be
entitled to a temporary or permanent injunction or injunctions or temporary
restraining order or orders to prevent breaches of the provisions of Sections 5,
6, 7, and 8 hereof and to enforce specifically the terms and provisions thereof,
in each case without the need to post any security or bond. Nothing herein
contained shall be construed as prohibiting the Company from pursuing, in
addition, any other remedies available to the Company for such breach or
threatened breach. A waiver by the Company of any breach of any provision hereof
shall not operate or be construed as a waiver of a breach of any other provision
of this Agreement or of any subsequent breach by the Executive.

         (b) Enforceability. It is expressly understood and agreed that although
the Company and the Executive consider the restrictions contained in Sections 5,
6, 7 and 8 hereof to be reasonable for the purpose of preserving the goodwill,
proprietary rights and going concern value of the Company, if a final
arbitratory or judicial determination is made by a court or arbitrator having
jurisdiction that the time or territory or any other restriction contained in
such Sections 5, 6, 7 and 8 is an unenforceable restriction on the Executive's
activities, the provisions of such Sections 5, 6, 7 and 8 shall not be rendered
void but shall be deemed amended to apply as to such maximum time and territory
and to such other extent as such arbitrator or court may determine or indicate
to be reasonable. Alternatively, if the arbitrator or court referred to above
finds that any restriction contained in Sections 5, 6, 7 or 8 or any remedy
provided herein is unenforceable, and such restriction or remedy cannot be
amended so as to make it enforceable, such finding shall not affect the
enforceability of any of the other restrictions contained therein or the
availability of any other remedy. The provisions of Sections 5, 6, 7 and 8 shall
in no respect limit or otherwise affect the Executive's obligations under other
agreements with the Company, and the provisions of Sections 5,6,7 and 8 shall in
no respect limit the rights of the Executive as set forth in this Agreement or
any other agreement between the Executive and the Company.

         11. Assignment. The rights and obligations of the parties under this
Agreement shall not be assignable by either the Company or the Executive,
provided that this Agreement is assignable by the Company to any affiliate of
the Company, to any successor in interest to any business of the Company, or to
a purchaser of all or substantially all of the assets of any business of the
Company.

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         12. Notices. Any notice required or permitted under this Agreement
shall be deemed to have been effectively made or given if in writing and
personally delivered, mailed properly addressed in a sealed envelope, postage
prepaid by certified or registered mail, delivered by a reputable overnight
delivery service or sent by facsimile. Unless otherwise changed by notice,
notice shall be properly addressed to the Executive if addressed to:

                           Raul Deju
                           5 Hastings Court
                           Moraga, California 94556
                           Facsimile No.: (510) 299-7840

                           with a copy to:

                           Otis & Hogan
                           180 Montgomery Street, Suite 1240
                           San Francisco, California 94104
                           Facsimile No.: (415) 362-7332
                           Attention: J. Morrow Otis

and properly addressed to the Company if addressed to:

                           JTM Industries, Inc.
                           127 South 500 East
                           Suite 675
                           Salt Lake City, Utah 84102
                           Attention: Chief Executive Officer

                           with a copy to:

                           Citicorp Venture Capital, Ltd.
                           399 Park Avenue
                           New York, New York 10043
                           Attention:  Joseph Silvestri
                           Facsimile No.: (212) 888-2940

         13. Severability. Wherever there is any conflict between any provision
of this Agreement and any statute, law, regulation or judicial precedent, the
latter shall prevail. In the event that any provision of this Agreement shall be
held by a court of proper jurisdiction to be indefinite, invalid, void or
voidable or otherwise unenforceable, the balance of the Agreement shall continue
in full force and effect unless such construction would clearly be contrary to
the intentions of the parties or would result in an unconscionable injustice.

         14. Counterparts. This Agreement may be executed in several
counterparts, each of which shall be deemed to be an original but all of which
together will constitute one and the same instrument.

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         15. Effect of Termination. Notwithstanding anything to the contrary
contained herein, if this Agreement or the Executive's employment is terminated
pursuant to Section 9 or otherwise expires, the provisions of Sections 5, 6, 7,
8, 9, 10, 12, 13, 15, 16, 17 and 18 shall continue in full force and effect.

         16. Disputes. Except as necessary to obtain the relief specified in
Section 10(a). any claim or controversy arising out of or relating to this
Agreement, or any breach thereof, or otherwise arising out of or relating to the
Executive's employment, compensation and benefits with the Company or the
termination thereof hereafter, shall be settled by arbitration in San Francisco
County, California, in accordance with the rules established by the American
Arbitration Association, provided, however, that the parties agree that (i) a
30-day negotiation period between the Company and the Executive will be
specified prior to any arbitration proceeding; (ii) the arbitrator shall be
prohibited from disregarding, adding to or modifying the terms of this
Agreement; and (iii) the arbitrator shall be required to follow established
principles of substantive law and the law governing burdens of proof. Any claim
or controversy not submitted to arbitration in accordance with this Section 16
shall be considered waived and, thereafter, no arbitration panel or tribunal or
court shall have the power to rule or make any award on any such claim or
controversy. The award rendered in any arbitration proceeding held under this
Section 16 shall be final and binding, and judgment upon the award may be
entered in any court having jurisdiction thereof. The prevailing party shall be
entitled to recover all reasonable attorneys fees and related costs from the
losing party.

         17. Miscellaneous: Choice of Law. This Agreement constitutes the entire
agreement, and supersedes all prior agreements, of the parties hereto relating
to the subject matter hereof, and there are no written or oral terms or
representations made by either party other than those contained herein. This
Agreement shall be governed by and construed in accordance with (i) with respect
to Section 8 and all other provisions of this Agreement which affect the
interpretation and/or the enforceability of the restrictive covenants therein
contained, the domestic laws of the State of New York, without giving effect to
any choice of law or conflict of law provision or rule (whether of the State of
New York or any other jurisdiction) that would cause the application of the laws
of any jurisdiction other than the State of New York, and (ii) with respect to
all other provisions of this Agreement, the domestic laws of the State of
California, without giving effect to any choice of law or conflict of law
provision or rule (whether of the State of California or any other jurisdiction)
that would cause the application of the laws of any jurisdiction other than the
State of California.

         18. Indemnification. In the event that any claim is asserted against
the Executive, including but not limited to any legal action or administrative
proceeding, whether civil or criminal, by reason of the fact that the Executive
is or was an officer or director of the Company or any subsidiary or affiliate
of the Company, the Executive shall be indemnified by the Company, and the
Company shall pay the Executive's attorney fees, accounting fees, expert witness
fees and other customary expense within 30 days after the Company receives
notice of such fees, expenses and costs, all to the fullest extent permitted by
law, provided, however, that no indemnification shall be made hereunder with
respect to payments and expenses incurred in relation to (i) matters as to which
the Executive shall not have acted in good faith and in the reasonable belief
that his action was in the best interest of the Company, or (ii) matters as to
which are otherwise prohibited by law.

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

                                               JTM INDUSTRIES, INC.

                                               /s/ J.I. Everest, II
                                              ----------------------------------
                                               By: J.I. Everest, II
                                               Title: Treasurer and CFO

                                               EXECUTIVE

                                               /s/ Raul Deju
                                              ----------------------------------
                                               Raul Deju

                                       10Exhibit 10.65.3

                              AMENDED AND RESTATED
                     LICENSE AND REAGENT PURCHASE AGREEMENT

         THIS AMENDED AND RESTATED LICENSE AND REAGENT PURCHASE AGREEMENT (the
"Agreement"), is made and entered into as of July 1, 2002, by and between
Premier Elkhorn Coal Company, a Kentucky corporation (the "Licensee"), and
Headwaters Incorporated, a Delaware corporation, formerly known as Covol
Technologies, Inc. (the "Licensor").

                                    RECITALS

         WHEREAS, Licensor has developed and owns a proprietary process to
produce synthetic coal fuel qualifying for tax credits under Internal Revenue
Code Section 29 from waste coal dust, coal fines, run of mine coal and other
similar coal derivatives (collectively, "Coal Feedstock"), and Licensor is
entitled to license the Coal Technology (as defined below) to Licensee;

         WHEREAS, Mohave Fuel Company, L.L.C., a Utah limited liability company
("Mohave"), sold a solid synthetic fuel manufacturing plant (the "Facility") to
Licensee as set forth in that certain Purchase and Sale Agreement dated January
21, 2002 (the "Purchase and Sale Agreement");

         WHEREAS, in connection with the Purchase and Sale Agreement, Licensee
and Licensor entered into a License and Binder Purchase Agreement dated January
21, 2000 for the Licensee's use of the Coal Technology and wish to amend certain
terms and restate their agreement herein.

         NOW, THEREFORE, in consideration of the foregoing, 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. Capitalized terms used herein shall have the
meanings specified in the Purchase and Sale Agreement, unless otherwise
specified below:

         1.1 "Bankruptcy Code" has the meaning set forth in Section 16.

<PAGE>

         1.2 "Claimant" has the meaning set forth in Section 3.2.

         1.3 "Coal 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" relating to,
embodied in or used in the process to produce synthetic coal fuel from Coal
Feedstock, 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 Technology" shall not include the
proprietary process/method or other Reagent 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
and production of synthetic coal fuel. Nothing in this Agreement is intended to
grant to Licensee the right to apply the Coal Technology to produce anything
other than synthetic coal fuel intended to qualify for tax credits under Section
29(c)(1)(C) of the Code.

         1.4 "Code" means the Internal Revenue Code of 1986, as amended, and the
regulations thereunder.

         1.5 "Confidential Information" has the meaning set forth in Section
2.4.

         1.6 "Developed Technology" means any inventions, "Improvement" or
technology that Licensor may conceive, make, invent or suggest in connection
with or related to the Coal Technology; provided, however, that "Developed
Technology" shall not include (i) 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
Technology or (ii) any inventions, "Improvement" or technology that Licensee may
conceive, make, invent or suggest in connection with or related to the Coal
Technology.

         1.7 "Dow Agreement" means that certain agreement between Dow Chemical
Company and Licensor, effective January 1, 1998.

                                       2
<PAGE>

         1.8 "Facility" has the meaning set forth in the Recitals.

         1.9 "Hazardous Substances" means (a) any petrochemical or petroleum
products (provided that for purposes of this Agreement, the Proprietary Reagent
Material shall not be considered to be a petrochemical or petroleum product),
oil or coal ash, radioactive materials, radon gas, asbestos in any form that is
or could become friable, urea formaldehyde foam insulation and transformers or
other equipment that contain dielectric fluid which may contain polychlorinated
biphenyls, (b) any chemicals, materials or substances defined as or included in
the definition of "hazardous substances," "hazardous wastes," "hazardous
materials," "hazardous constituents," "restricted hazardous materials,"
"extremely hazardous substances," "toxic substances," "contaminants,"
"pollutants," "toxic pollutants" or words of similar meaning and regulatory
effect under any applicable environmental law and (c) any other chemical,
material or substance, exposure to which is prohibited, limited or regulated by
any applicable environmental law.

         1.10 "Increased Cost of Manufacture" has the meaning set forth in
Section 4.2.

         1.11 "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; provided,
however, that "Improvement" shall not include (i) 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 Technology or (ii) any alteration or addition to an
invention or discovery which was conceived, made, invented or suggested by
Licensee. An "Improvement" may comprise alterations or additions to either
patented or unpatented inventions, discoveries, technology or devices and may or
may not be patentable.

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

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

         1.14 "Proprietary Reagent Material" means and refers to the chemical
reagent compound supplied by Licensor and used for the production of synthetic
coal by the Facility.

                                       3
<PAGE>

         1.15 "Purchase and Sale Agreement" has the meaning set forth in the
Recitals.

         1.16 "Reduced Cost of Manufacture" has the meaning set forth in Section
4.2.

Section 2. License Grant.

         2.1 General. Licensor hereby grants to Licensee a non-exclusive license
to use the Coal Technology, including Developed Technology relating to the Coal
Technology, for 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 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 Technology,
except to any assignee, transferee or purchaser in accordance with Section 18.
Licensee further agrees to use the Coal Technology only under authority of this
Agreement with Licensor.

         2.2 Licensor's Ownership of Developed Technology. All Developed
Technology is and shall become Licensor's absolute property, subject to the
terms of this Agreement.

         2.3 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 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.

         2.4 Confidentiality. Each of the parties hereby agree to maintain the
Coal Technology confidential and not to disclose the Coal Technology, or any
aspect thereof, including, but not limited to, the Developed Technology
(collectively, the "Confidential Information"). Notwithstanding the foregoing,
information which (i) 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, (ii) was available to the party
receiving disclosure on a non-confidential basis prior to its receiving
disclosure hereunder, (iii) 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,

                                       4
<PAGE>

employees, directors or representatives to be prohibited from transmitting the
information), (iv) a party is compelled by legal process by any court or other
authority to disclose or (v) is developed by Licensee independently of (or which
does not depend on the use of) Confidential Information received from Licensor,
shall not be subject to the terms of this Section 2.4. In the case of (iv)
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
public disclosure of Confidential Information. At the termination of this
Agreement, each party receiving Confidential Information shall use commercially
reasonable efforts to return all copies of such Confidential Information
(including, without limitation, any reports or memoranda), except to the extent
such Confidential Information is necessary for accounting, tax, regulatory or
other similar purposes. Nothing in this Agreement shall prohibit Licensee from
disclosing the Confidential Information to affiliates or to others as may be
reasonably necessary for Licensee to exploit Licensee's rights under the
Purchase and Sale 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.

         2.5 Know-How and Assistance. To enable Licensee to benefit fully from
the license of the Coal 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 Technology, including, but not limited to, Developed Technology,
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 2.5; 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. Subject to Section 18 below, during the term of
this Agreement, Licensee shall pay to Licensor a royalty in an amount equal to
$**** per ton of synthetic fuel produced at the Facility and sold during the
period commencing on the date of this Agreement and ending upon the expiration
of the term (or earlier termination) of this Agreement. Such royalty shall be
paid quarterly on the last business day of January, April, July and October of
each calendar year for the synthetic fuel produced at the Facility and sold
during the previous calendar quarter (commencing with the calendar quarter which
includes the date of this Agreement), regardless of whether all or any part of
the Coal Technology is used.

                                       5
<PAGE>

         3.2 Royalty Set-off. If any person ("Claimant") asserts a claim that
all or any part of the Coal Technology is not the property of Licensor and is
instead the property of Claimant, Licensee may, pending resolution of such
claim, withhold from the royalty payment otherwise due Licensor pursuant to
Section 3.1, amounts equal to such licensee fees as Claimant may demand for the
use by Licensee of the Coal Technology allegedly owned by Claimant. Any amounts
so withheld will be placed in escrow by Licensee. Upon entrance of a final
non-appealable order by a court of competent jurisdiction that the Coal
Technology is the property of Licensor or upon receipt of a release of Licensee
from liability by Claimant, Licensee shall pay to Licensor any amounts withheld
pursuant to this Section 3.2. If a court of competent jurisdiction enters a
final non-appealable order that all or any portion of the Coal Technology is the
property of the Claimant, Licensee may pay to Claimant a reasonable license fee
and set off any amounts so paid against any amount withheld pursuant to this
Section 3.2 and/or any other royalty otherwise due Licensor without any further
liability with respect thereto. Nothing in this Section 3.2 shall be construed
as limiting in any respect Licensee's rights and remedies related to a breach by
Licensor of the representations and warranties contained in Section 7.3. 3.2

Section 4. Sales of Reagent.

         4.1 Sale and Purchase. Licensor shall sell to Licensee, and Licensee
shall purchase from Licensor, the Facility's full requirements of chemical
reagent to produce synthetic fuel, provided, that Licensee's obligation
hereunder may be reduced or eliminated if, after written notice from Licensee to
Licensor, and reasonable opportunity to cure (not to exceed thirty (30) days
from receipt of said notice) (i) Licensor fails to deliver a chemical reagent
that when properly applied to Coal Feedstock produces a "qualified fuel" for
purposes of Section 29 of the Code; (ii) Licensor fails to deliver on the terms
and conditions set forth in this Agreement the Facility's full requirements of
chemical reagent to produce synthetic fuel; (iii) customers of synthetic fuel
produced at the Facility provide Licensor with objective, verifiable evidence
that either (A) an alternative available chemical reagent makes Licensor's
chemical reagents obsolete, or (B) the customer's operating conditions preclude
the use of synthetic fuel produced with Licensor's chemical reagents; or (iv) it
is necessary to do so to comply with applicable environmental agency rulings,
orders, or regulations. Each calendar month Licensor shall deliver an invoice to
Licensee for the chemical reagent delivered to Licensee during the immediately
preceding calendar month. Payments for chemical reagent delivered by Licensor to
Licensee during any calendar month shall be due and payable to Licensor within
fifteen (15) days following receipt of an invoice from Licensor with respect to
such chemical reagent.

                                       6
<PAGE>

         4.2 Price. The price which Licensee shall pay for any Proprietary
Reagent Material delivered by Licensor to Licensee shall be an amount equal to
(a) $**** per dry pound of Covol 298 Proprietary Reagent Material, or (b) $****
per dry pound of Covol 298-1 Proprietary Reagent Material. If during the term of
this Agreement, Licensor's direct and actual costs (including, but not limited
to, material, labor and transportation costs) incurred in connection with the
manufacture and sale of the Proprietary Reagent Material delivered by Licensor
to Licensee pursuant to this Agreement shall exceed the price set forth in
clauses (a) or (b) in the preceding sentence (such price, the "Increased Cost of
Manufacture"), then the parties hereto agree that the price which Licensee shall
pay for Proprietary Reagent Material delivered by Licensor to Licensee pursuant
to this Agreement shall be automatically increased to an amount equal to such
Increased Cost of Manufacture. Licensee shall be entitled to receive volume
pricing general discounts on Proprietary Reagent Material that Licensor receives
under the Dow Agreement, as the same may be amended from time to time.

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

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

                  (2) Proprietary Reagent Material purchased by Licensee from
Licensor hereunder shall not be a Hazardous Substance and its sale, delivery and
use to produce solid synthetic fuel at the Facility, in each case, as
contemplated by this Agreement shall comply with all applicable laws and
governmental regulations (including, but not limited to, environmental laws and
regulations).

                  (3) Licensor represents and warrants to Licensee that the
Proprietary Reagent Material when properly applied to Coal Feedstock produces a
"significant chemical change" for purposes of Section 29 of the Code.

                  (4) Licensor agrees that it shall not substitute other
monomers or polymers for the Dow carboxylated styrene/butadiene/acrylate/acetate
latex formulations currently being used by Licensor to produce Proprietary
Reagent Material without the prior written consent of Buyer and without first
providing Buyer with a written report of a third party fuels expert reasonably
acceptable to the Licensor and Licensee to the effect that (in such third
party's professional judgment) the monomers or polymers so to be substituted
will achieve the results set forth in Section 4.3(c).

                                       7
<PAGE>

                  (5) Licensor agrees that all Proprietary Reagent Material
delivered to Licensee shall be in accordance with the specifications set forth
in Exhibit A attached hereto.

                  (6) At Licensee's request, Licensor shall replace, or refund
the purchase price of, all non-conforming Proprietary Binding Material. In
addition, Licensor shall (i) pay all of Licensee's costs and expenses incurred
to return, remove or dispose of non-conforming Proprietary Reagent Material and
(ii) indemnify, defend and hold harmless Licensee 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, penalties,
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
products liability claim resulting from, relating to, arising out of, or
incurred in connection with the delivery to and use by Licensee of Proprietary
Reagent Material delivered by Licensor; provided, however, that in no event
shall Licensor's liability under this Section 4.3(f)(ii) exceed the greater of
(i) the proceeds received from insurance provided for in Section 4.8 and (ii)
the proceeds received under the Dow Agreement and/or any of its other vendor or
Reagent manufacturing agreements which Licensor may enter into from time to
time.

                  (7) Licensor agrees that there will be available at the
Facility from time to time as reasonably requested by Licensee sufficient
quantities of the Proprietary Reagent Material to supply the Facility's full
requirements from the date hereof until at least December 31, 2007.

         4.4 Order Procedure. Licensee shall deliver all purchase orders for
chemical Reagent at least thirty (30) days in advance of the first day of the
month in which delivery of such chemical Reagent 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 (i) in writing (including by fax) or (ii) orally by telephone
by an authorized agent of Licensee (subject to the condition that it is followed
by a written purchase order within twenty-four (24) hours). Such purchase orders
shall be sent to Licensor at such address as Licensor shall direct in writing
from time to time.

                                       8
<PAGE>

         4.5 Delivery and Acceptance. All Proprietary Reagent Material purchased
hereunder shall be delivered F.O.B. the Facility. Licensor shall arrange for any
necessary transportation of the Proprietary Reagent Material to the Facility and
shall deliver or cause to be delivered to Licensee a material safety data sheet
in respect of each delivery of Proprietary Reagent Material to Licensee.
Licensee shall bear the expense of unloading Proprietary Reagent Material from
the trucks. Licensee shall have a reasonable opportunity to sample Proprietary
Reagent Material delivered to it hereunder to confirm that such Proprietary
Reagent Material conforms to the terms and requirements hereof (including, but
not limited to, the specifications set forth in Exhibit A attached hereto), and
Licensee shall not be deemed or required to accept any such Proprietary Reagent
Material prior to the completion of such sampling. From time to time as
requested by Licensee, Licensor shall certify in writing to Licensee that the
representations and warranties in Section 4.3 are true and complete with respect
to the Proprietary Reagent Material delivered to Licensee pursuant to this
Agreement.

         4.6 Grant of License. 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
Reagent Material, to manufacture the Proprietary Reagent Material in sufficient
quantities to operate the Facility to full capacity, and such technology shall
be deemed "Coal Technology" for the purposes of this Agreement; provided,
however, that Licensee shall not be permitted to use, and Licensee agrees that
it shall not use, such license unless and until Licensor has given notice to
Licensee of its inability to deliver the Proprietary Reagent Material to
Licensee (which Licensor shall give to Licensee not less than ninety (90) days
before its ability to deliver the Proprietary Reagent Material to Licensee will
be interrupted or terminated for any reason, including Licensor's insolvency,
bankruptcy or liquidation) or, in the absence of such notice, the actual failure
by Licensor to deliver the Proprietary Reagent Material to Licensee for at least
five (5) calendar days after Licensee gives written notice of non-delivery to
Licensor. Upon the occurrence of the events described in the immediately
proceeding proviso, Licensor agrees to coordinate and arrange for, and does
hereby authorize and permit, Licensee, its sublicensees or assignees, to
purchase the Proprietary Reagent Material directly from Licensor's Proprietary
Reagent Material manufacturer or other sources. The license granted to Licensee
under this Section shall cease (subject to reinstatement upon the reoccurrence
of the events contemplated above) and sales of Proprietary Reagent 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

                                       9
<PAGE>

with evidence reasonably satisfactory to Licensee, that Licensor is able to
deliver the Proprietary Reagent Material to Licensee 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 and Licensor shall
be responsible for any additional out-of-pocket costs incurred by Licensee in
connection with the production of Proprietary Reagent Material pursuant to this
Section.

         4.7 Required Insurance.

                  (1) Types. Licensor shall obtain and maintain, at its own
cost, from reputable insurers at all times during the term of this Agreement,
general third party liability insurance, including product liability coverage,
with a $10,000,000 coverage limit, which may be comprised of a $1,000,000 per
occurrence primary policy and a $10,000,000 umbrella policy.

                  (2) "Occurrence" Basis Coverage. To the extent available on
commercially reasonable terms at commercially reasonable rates the liability
coverage required in this Section 4.7 shall be written on an "occurrence" basis.

                  (3) Named Insured. Licensor shall cause Licensee to be named
as an additional insured on all the insurance policies required under this
Section 4.7.

                  (4) Subrogation Waiver. Licensor shall cause all the insurance
policies required under this Section 4.7 to contain a waiver of subrogation by
the insurer in favor of Licensee.

                  (5) Notice of Cancellation/Coverage Reduction. Licensor shall
insure that each insurance policy required under this Section 4.7 shall contain
a "notice of cancellation/coverage reduction" provision requiring the insurer to
give at least thirty (30) days prior written notice to Licensee of the
cancellation of and/or material change to (including, but not limited to, a
reduction in coverage under such insurance policy) its insurance policy.

                  (6) Default. If Licensor fails duly to perform it obligations
to effect and maintain any of the insurance required pursuant to this Section
4.7, Licensee may, but shall not be obligated to, upon written notice to
Licensor, in the name of and on behalf of Licensor effect and maintain such
insurance, and all costs and expenses thereby incurred by Licensee shall be paid
by Licensor within ten (10) days of written demand.

                                       10
<PAGE>

                  (7) Certificates of Insurance. Licensor shall cause its
insurers under each insurance policy required under this Section 4.7 to provide
Licensee with certificates of insurance evidencing the insurance policies and
endorsements required by this Section 4.7. Failure of the Licensee to receive
such certificates shall not relieve Licensor of its obligation to obtain and
maintain insurance in accordance with this Section 4.7. Failure to obtain
insurance pursuant to this Section 4.7 shall in no way relieve or limit
Licensor's obligations and liabilities under this Agreement.

Section 5. Records; Inspection; Confidentiality.

         5.1 Records. 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 (including, but not
limited to, any Reduced Cost of Manufacture or Increased Cost of Manufacture),
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.

         5.2 Confidentiality. 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 shall not be
subject to the terms of this Section 5 which (i) 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,
(ii) was available to the party receiving disclosure on a non-confidential basis
prior to its receiving disclosure hereunder, (iii) 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), (iv) a party is compelled by legal process by any
court or other authority to disclose, or (v) is developed by the party
independently of (or which does not depend on the use of) disclosure hereunder.
In the case of (iv) 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 public disclosure of such information. At the termination
of this Agreement, each party receiving copies of such information (including,
without limitation, any reports or memoranda) shall use commercially reasonable

                                       11
<PAGE>

efforts to return all such copies, except to the extent such information is
necessary for accounting, tax, regulatory or other similar purposes. Nothing in
this Agreement shall prohibit Licensee from disclosing such information to
affiliates or to others as may be reasonably necessary for Licensee to exploit
Licensee's rights under the Purchase and Sale Agreement and/or this Agreement,
provided that the recipient of any such information executes a confidentiality
agreement restricting further disclosure of such information.

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 at Licensor's sole expense.

Section 7. General Representations, Warranties and Covenants.

         7.1 Authority. Each party represents and warrants to the other party
that (a) the execution, delivery and performance of this Agreement and the
consummation of the transactions contemplated hereby (i) have been duly
authorized on its behalf by all requisite action, corporate or otherwise, (ii)
does not and will not result in any violation of, conflict with or default under
the terms of any of its organizational documents (nor, to its knowledge, does
there exist any condition which upon the passage of time or the giving of notice
would cause such violation, conflict or default), and (iii) does not and will
not result in any violation of, conflict with or default under any collective
bargaining agreement, permit, lease, venture, indenture, mortgage, agreement,
contract, judgment, order or other obligation or restriction to which it or its
assets may be bound or encumbered (nor, to its knowledge, does there exist any
condition which upon the passage of time or the giving of notice would cause
such violation, conflict or default), (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 its valid and binding obligation, enforceable in accordance with
its terms (subject, however, to the effects of bankruptcy, insolvency,
reorganization, moratorium, and similar laws from time to time in effect
relating to the rights and remedies of creditors as well as to general
principles of equity).

         7.2 No Consent. Each party represents and warrants to the other party
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.

                                       12
<PAGE>

         7.3 Intellectual Property Matters.

                  (1) Licensor represents and warrants to Licensee that (i) it
owns, free and clear of all liens and encumbrances, patents related to the Coal
Technology (including, but not limited to, United States Patent Numbers
5,599,361, 5,487,764 and 5,453,103) and has developed and to the best of its
knowledge exclusively owns the Coal 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 from waste coal dust, coal fines, run of mine coal
and other similar coal feedstock, and, the right to freely make, use, sell and
exploit the Coal Technology and Proprietary Reagent Material used in
manufacturing synthetic coal fuel from waste coal dust, coal fines, run of mine
coal and other similar coal feedstocks, (ii) it has the sole and complete right
and power to grant to Licensee the licenses granted herein, and (iii) the sale
or use of the rights, Proprietary Reagent Material and Coal Technology and/or
licenses granted herein as contemplated by this Agreement do not and will not
infringe any third-party's intellectual property rights.

                  (2) Except as otherwise expressly provided in this Agreement,
Licensor agrees that it will not take any action or fail to take any action
during the term of this Agreement that would negate this Agreement or cause a
loss to Licensee of the licenses granted hereunder.

                  (3) If during the term of this Agreement a third party has
infringed any intellectual property rights associated with the Coal Technology
or otherwise misappropriated any Coal Technology, Licensor shall, at Licensor's
expense, institute and conduct legal actions against such third party or enter
into such agreements or accord in settlement as are deemed appropriate by
Licensor, in which case Licensor shall be entitled to any sums recovered in
connection therewith from third parties. If Licensor does not take any action,
Licensee shall have the right, but not the obligation, to take action as a
plaintiff in the prosecution of any infringement or misappropriation action
affecting the Facility, and Licensee shall be entitled to any sums recovered in
connection therewith from third parties. If Licensee and Licensor have jointly
conducted an infringement or misappropriation action, after each party has been
reimbursed for costs and expenses incurred by it in prosecuting the action, any
sums recovered in connection therewith from third parties shall be distributed
to Licensee and Licensor based on the proportionate amount of damages suffered
by Licensee and Licensor. Licensee shall always have the right to be represented
at its expense by counsel of its own selection in any action. In no event shall
Licensor enter into any agreement or settlement inconsistent with the terms of
this Agreement.

                                       13
<PAGE>

         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, penalties (including, but not limited
to, for violation of environmental laws), payments, costs (including, but not
limited to, costs of remediation) and expenses (including, but not limited to,
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 its breach of any of the representations,
warranties and/or covenants contained in this Agreement.

Section 8. Term. The term of this Agreement will begin on the date of this
Agreement and will expire, unless terminated earlier pursuant to Section 9, on
the later of: (a) December 31, 2007, (b) the end of the term of Section 29 of
the Code, or (c) the last to expire of the U.S. patents referred to under the
definition of Coal Technology above or any other U.S. patents in existence at
the date of this Agreement that disclose and claim Covol's proprietary Coal
Technology. Any extension of this Agreement must be in writing and signed by
both parties.

Section 9. Events of Default; Remedies.

         9.1 Events of Default. The following shall constitute an event of
default ("Event of Default") under this Agreement:

                  (1) Licensor shall have breached any of its obligations
pursuant to Section 4.8, which breach cannot be or has not been cured within
thirty (30) days after the giving of written notice thereof by the
non-defaulting party;

                  (2) a party shall have breached in any material respect any of
its representations, warranties, covenants or other agreements contained in this
Agreement (other than as provided in Section 9.1(a)), which breach cannot be or
has not been cured within sixty (60) days after the giving of written notice
thereof by the non-defaulting party;

                  (3) a 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

                                       14
<PAGE>

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

                  (4) a 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 or any such person is appointed.

         9.2 Remedies.

                  (1) Upon the occurrence of an Event of Default, the
non-defaulting party may, in addition to exercising any of its remedies at law
or equity or any of its other remedies provided for in this Agreement, terminate
this Agreement upon written notice thereof to the defaulting party.

                  (2) Upon termination of this Agreement, all rights granted to
and future obligations of the parties shall immediately cease; provided,
however, that termination shall not relieve either party of its obligations
accrued during the term of this Agreement (including, but not limited to, 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.

                  (3) If either party terminates this Agreement pursuant to this
Section 9.2, Licensee shall promptly return and cause all agents of Licensee to
promptly return to Licensor all Confidential Information (except to the extent
such Confidential Information is necessary for accounting, tax, regulatory or
other similar purposes) and all Coal 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 Technology before the
end of the term of Section 29 of the Code. Notwithstanding the foregoing,
Confidential Information shall not be subject to the terms of this Section
9.2(c) which (i) 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, (ii) was available to the
Licensee on a non-confidential basis prior to its receiving disclosure
hereunder, (iii) lawfully becomes available to the Licensee on a

                                       15
<PAGE>

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), (iv) the
Licensee is compelled by legal process by any court or other authority to
disclose or (v) is developed by Licensee independently of (or which does not
depend on the use of) Confidential Information received from Licensor; provided,
however, that in the case of (iv) 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.

Section 10. 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 11. 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.

Section 12. 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
                                       Headwaters Incorporated
                                       11778 South Election Road, Suite 210
                                       Draper, UT  84020
                                       Fax:  (801) 984-9410

                  To Licensee:         Premier Elkhorn Coal Company
                                       c/o TECO Coal Corporation
                                       200 Allison Boulevard
                                       Corbin, Kentucky 40701
                                       Fax:  (606) 523-4180
                                       Attn:  President

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<PAGE>

                  With a copy to:      TECO Energy, Inc.
                                       702 N. Franklin Street
                                       Tampa, Florida 33602
                                       Fax:  (813) 228-4811
                                       Attn:  General Counsel

Section 13. Remedies Cumulative. Remedies provided under this Agreement shall be
cumulative and in addition to other remedies provided by law or in equity.

Section 14. Entire Agreement. This Agreement, together with the Transaction
Documents (as defined in the Purchase and Sale 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 15. Relocation of the Facility. Licensee shall have the right to
relocate the Facility to Pike County, Kentucky or any other site or sites with
respect to which Licensor has not as of the date of this Agreement conveyed a
conflicting exclusive territorial license to a third party, provided that any
such relocation shall not affect the terms of this Agreement which shall remain
in full force and effect. As used in this Agreement, the Facility refers to the
subject synthetic fuel manufacturing plant regardless of the location or
configuration thereof.

Section 16. License Status in Bankruptcy. (a) This Agreement shall constitute an
executory contract under Section 365 of the United States Bankruptcy Code, 11
U.S.C. ss. ss. 101 et seq. (the "Bankruptcy Code"). All rights and licenses
granted pursuant to this Agreement are, and shall be deemed to be, licenses of
and right to "intellectual property" as that term is defined in Section
101(35A), and as used in Section 365, of the Bankruptcy Code. The parties agree
that (i) Licensor is a "licensor" under Section 365(n) of the Bankruptcy Code
and (ii) Licensee, as licensee under this Agreement, shall possess and may fully
exercise all of its rights, remedies and elections afforded by and under the
Bankruptcy Code.

                  (b) The parties further agree that, in the event of the
commencement of a case by or against Licensor under the Bankruptcy Code,
Licensee shall be entitled to all applicable rights under Section 365 of the
Bankruptcy Code. Without limiting the foregoing, the parties hereby agree that

                                       17
<PAGE>

Licensee has (i) the right to complete duplicate/ or complete access to, as
appropriate) any such intellectual property referred to in subsection (a) above
and any and all embodiments of such intellectual property upon the written
request of Licensee and (ii) the right (unless and until the Agreement is
rejected), upon written request of Licensee, (A) to compel the Licensor to
perform the Agreement or to provide to Licensee such intellectual property
(including any and all embodiments thereof) and (B) to compel Licensor not to
interfere with Licensee's rights as provided in this Agreement/or any
supplemental agreement) to such intellectual property (including any and all
embodiments thereof), including any right to obtain such intellectual
property/or any embodiment thereof) from another entity (including without
limitation, the escrow referred to in Section 4.7).

Section 17. Governing Law; Consent to Jurisdiction; Waiver of Jury Trial.

         THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER
SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF
NEW YORK (WITHOUT GIVING EFFECT TO THE PRINCIPLES THEREOF RELATING TO CONFLICTS
OF LAW EXCEPT SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW OR ANY
SUCCESSOR PROVISION THERETO).

                  (1) Licensor, in respect of itself and its properties, (i)
agrees to be subject to (and hereby irrevocably submits to) the nonexclusive
jurisdiction of any Federal court located in the Commonwealth of Kentucky or any
Kentucky state court in the event of any dispute arising out of or relating to
this Agreement or the transactions contemplated hereby, (ii) agrees that it
shall not attempt to deny or defeat such jurisdiction by motion or other request
for leave from any such court and irrevocably waives, to the fullest extent it
may effectively do so under applicable Law, any objection to the laying of the
venue of any such action in any such court and any claim that any such action
brought in any such court has been brought in an inconvenient forum, (iii)
agrees that it shall not bring any action arising out of or relating to this
Agreement or any transactions contemplated hereby in any court other than a
Federal or state court sitting in the Commonwealth of Kentucky and (iv)
irrevocably agrees that all disputes arising out of or relating to this
Agreement and the transactions contemplated hereby may be determined in any
Federal or state court sitting in the Commonwealth of Kentucky.

                                       18
<PAGE>

                  (2) Licensee, in respect of itself and its properties, (i)
agrees to be subject to (and hereby irrevocably submits to) the nonexclusive
jurisdiction of any Federal court located in the State of Utah or any Utah state
court in the event of any dispute arising out of or relating to this Agreement
or the transactions contemplated hereby, (ii) agrees that it shall not attempt
to deny or defeat such jurisdiction by motion or other request for leave from
any such court and irrevocably waives, to the fullest extent it may effectively
do so under applicable Law, any objection to the laying of the venue of any such
action in any such court and any claim that any such action brought in any such
court has been brought in an inconvenient forum, (iii) agrees that it shall not
bring any action arising out of or relating to this Agreement or any
transactions contemplated hereby in any court other than a Federal or state
court sitting in the State of Utah and (iv) irrevocably agrees that all disputes
arising our of or relating to this Agreement and the transactions contemplated
hereby may be determined in any Federal or state court sitting in the State of
Utah.

                  (3) Either party may make service on the other Party by
sending or delivering a copy of the process to the Party to be served at the
address and in the manner provided for the giving of notices in Section 12,
provided that nothing in this Section 17, shall affect the right of any party to
serve legal process in any other manner permitted by law or in equity.

                  (4) EACH OF THE PARTIES IRREVOCABLY WAIVES ALL RIGHT OF TRIAL
BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF, OR IN
CONNECTION WITH, THIS AGREEMENT OR THE TRANSACTION DOCUMENTS OR ANY MATTER
ARISING HEREUNDER OR THEREUNDER.

Section 18. Assignment. This Agreement may not be assigned, in whole or in part,
by any party without the prior written consent of the other party, which consent
shall not be unreasonably withheld, except that each party shall have the right
to assign their respective rights and obligations under this Agreement without
the prior consent of the other party to (i) any affiliate or any entity which
controls, is controlled by or is under common control with such party, where
"control" by an entity is established by the ownership, directly or indirectly,
of at least fifty percent (50%) of each class of the outstanding securities of
the controlled entity, provided that no such assignment shall release such party
from their respective obligations hereunder or (ii) in the case of Licensee, to
any transferee or purchaser of the Facility, provided that no such attempted
assignment of rights or delegation of duties by Licensee shall be valid unless

                                       19
<PAGE>

the putative transferee shall have agreed unqualifiedly to assume the
obligations of Licensee under this Agreement. Licensee covenants not to transfer
or sell ownership of the Facility except on condition that the Licensee, as a
part of such transfer, assigns its obligations under this Agreement to the
transferee or purchaser.

Section 19. Further Assurances. Each party agrees, at the request of the other
party, at any time and from time to time, to execute and deliver all such
further documents, and to take and to forbear from all such action, as may be
reasonably necessary or appropriate in order to more effectively carry out the
provisions of this Agreement.

Section 20. Interpretation. Unless the context requires otherwise:

                  (1) When a reference is made in this Agreement to an article
or section, such reference shall be to an article or section of this Agreement.

                  (2) Whenever the words "include", "includes" or "including"
are used in this Agreement they shall be deemed to be followed by the words
"without limitation."

                  (3) The words "hereof", "herein" and "herewith" and words of
similar import shall, unless otherwise stated, be construed to refer to this
Agreement as a whole and not to any particular provision of this Agreement, and
section and exhibit references are to the sections and exhibits of this
Agreement.

                  (4) The meaning assigned to each term defined herein shall be
equally applicable to both the singular and the plural forms of such term, and
words denoting any gender shall include all genders. Where a word or phrase is
defined herein, each of its other grammatical forms shall have a corresponding
meaning.

                  (5) A reference to any party to this Agreement or any other
agreement or document shall include such party's successors and permitted
assigns.

                  (6) A reference to any legislation or to any provision of any
legislation shall include any amendment to, and any modification or re-enactment
thereof, any legislative provision substituted therefor and all regulations and
statutory instruments issued thereunder or pursuant thereto.

                  (7) All references to contracts, agreements, leases or other
understandings or arrangements shall refer to oral as well as written matters.

                                       20
<PAGE>

                  (8) The specificity of any representation or warranty
contained herein shall not be deemed to limit the generality of any other
representation or warranty contained herein.

                  (9) The parties have participated jointly in the negotiation
and drafting of this Agreement. In the event an ambiguity or question of intent
or interpretation arises, this Agreement shall be construed as if drafted
jointly by the parties, and no presumption or burden of proof shall arise
favoring or disfavoring any party by virtue of the authorship of any provisions
of this Agreement.

                    [SIGNATURES APPEAR ON THE FOLLOWING PAGE]

                                       21
<PAGE>

         IN WITNESS WHEREOF, each party has caused the License and Reagent
Purchase Agreement to be executed by the duly authorized representative of the
parties on the date and year first above written.

PREMIER ELKHORN COAL CO.                     HEADWATERS INCORPORATED

By: /s/ J.J. Shackleford                     By: /s/ Brent M. Cook
   --------------------------                   -------------------------
Name:    J.J. Shackleford                    Name: Brent M. Cook
Title:   President                           Title: President

                                       22

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