FINANCING AGREEMENT


         THIS AGREEMENT is made and entered into this 14th day of November 1997,
by and between Covol Technologies,  Inc., a Delaware corporation,  whose address
is 3280 No.  Frontage  Road,  Lehi,  Utah 84043,  ("Covol"),  and CoBon  Energy,
L.L.C., a Utah limited liability company, whose address is 1145 East South Union
Avenue,  Midvale,  Utah 84047,  hereinafter referred to as ("CoBon").  Covol and
CoBon are sometimes referred to herein as the "parties."

         WITNESSETH:

         Whereas,   Covol  and  CoBon  are  parties  to  that  certain  "License
Agreement" dated September 10, 1996, in which Covol agreed to grant to CoBon the
rights to develop up to 1.5 million  tons of annual  production  capacity  using
Covol's patented Coal Technology,  and are also parties to that certain "Project
Development  Agreement"  dated  December  30, 1996,  which  modifies the License
Agreement (collectively the "CoBon Agreements"), and

         Whereas,  pursuant to the License  Agreement,  CoBon has  identified  a
potential   project  for  the  development  of  synthetic  fuel   manufacturing,
briquetting or extruding  facilities and related  product  marketing  operations
that will use Covol's patented Coal Technology, and

         Whereas,   CoBon  has  entered  into  a  construction   agreement  (the
"Construction Agreement"), pursuant to which, after due inquiry and research, it
has specified certain equipment for its projects, and

         Whereas,  Covol is willing and able to provide  supplemental  financing
for the equipment specified by CoBon.

         Now, therefore, in consideration of the mutual covenants and conditions
contained herein, and for other good and valuable consideration, the sufficiency
and  receipt of which are hereby  acknowledged,  the  parties,  intending  to be
legally bound, hereby agree as follows:

         TERMS:

         1.  Covol or  Covol's  financier  will  issue  purchase  orders for the
pelletizer and dryer equipment in a total amount not to exceed  $1,000,000,  and
for such other mutually  agreeable long lead time equipment required pursuant to
CoBon's Construction  Agreement (the "Equipment").  Within the $1,000,000 limit,
Covol will accept full and primary  responsibility for the purchase price of the
Equipment.   CoBon  will  pay  any  portion  of  the  purchase  price  exceeding
$1,000,000. CoBon will assist Covol or Covol's financier with the negotiation of
all remaining purchase order terms and with the placement of the purchase orders
for the Equipment.  Except for the purchase  price of the  Equipment,  all other
aspects of the purchase  order,  including  but not limited to,  negotiation  of
terms,  expediting  the order and  administration  and  execution  of any claims
thereunder, shall be the full and primary responsibility and liability of CoBon,
notwithstanding any participation or lack of participation in such other aspects
by Covol or its financier.

                                     Page 1

*Confidential  material has been omitted from this Exhibit and filed  separately
with the Securities and Exchange Commission (the "Commission").

<PAGE>

         2. In addition to any other  payments  and  royalties to which Covol is
entitled for CoBon's  projects under the CoBon  Agreements,  Covol will have the
right to receive payments in the amount of * of Section 29 tax credits generated
by the facility employing the Equipment (the "Facility").  CoBon will cause such
payments  to be made to  Covol  from  CoBon's  interest  in the  Section  29 tax
credits, as specified in paragraph 3 below,  regardless of the amount of CoBon's
interest,  and in  accord  with  the same  timetable  as  corresponding  royalty
payments are made by the Tax Oriented Investor (TOI) who purchases the Facility.

         3. Covol or Covol's  financier  will have the  exclusive  right through
January 27, 1998,  to identify and  negotiate a letter of intent,  acceptable to
the  parties,  for the  purchase  of the  Facility  by a TOI on terms  including
Section 29 tax credit royalty payments to CoBon in an amount not less than * per
$1.00 of Section 29 tax credits  generated by the Facility.  CoBon's  payment to
Covol as  referenced  in paragraph 2 will be made from the proceeds  received by
CoBon as a result  of  CoBon's  interest  in the  Section  29 tax  credits.  The
exclusivity provision set forth in this paragraph notwithstanding, CoBon has the
right to hold  discussions  and negotiate with other TOI's including *, prior to
January 27, 1998 as a contingent or back-up to TOI or Covol's efforts.

         4. If Covol or Covol's financier  succeeds in negotiating an acceptable
letter of intent  with a TOI under  paragraph  3 above,  then in addition to the
payments  specified in paragraph 2 above,  Covol and Covol's  financier,  as the
case may be, shall be entitled to all Section 29 tax credit  royalty  payments *
$1.00 interest in the total Section 29 tax credits generated by the Facility.

         5. If Covol fails to  negotiate an  acceptable  letter of intent with a
TOI under paragraph 3 above,  then CoBon may proceed in its efforts to negotiate
with its  prospective  TOI.  However,  Covol will retain the right,  without the
exclusivity  set forth in paragraph 3, to identify and  negotiate  with a TOI on
terms set forth in paragraphs 3 and 4.

         6. If the project for which the  Equipment is ordered and  purchased by
Covol fails for any reason,  Covol will assume  responsibility for payments due,
if any, by CoBon  relating to the Equipment and Covol shall,  as its sole remedy
hereunder,  take possession of and retain all rights,  title and interest in and
to the Equipment.

         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed by a duly authorized officer and the Agreement shall be effective as of
the date first above written.

COBON ENERGY, L.L.C.                              COVOL TECHNOLOGIES, INC.


By:/s/ Steven Nash                                By: /s/ Brent M. Cook
  ------------------                                 -------------------
Its: President                                    Its: President
Date: 11/14/97                                    Date: 11/14/97

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* Confidential  material omitted and filed separately with the Commission.