AGREEMENT CONCERNING ADDITIONAL FACILITIES

         This Agreement concerning additional  facilities ("the Agreement"),  is
made and  entered  into as of December  27,  1996 by and  between AJG  Financial
Services, Inc., a Delaware corporation ("AJG"), and Covol Technologies,  Inc., a
Delaware corporation ("Covol").

         Whereas,  Covol has  represented  that it has  developed a  proprietary
process to produce synthetic coal fuel extrusions and briquettes from waste coal
dust, coal fines, and other coal derivatives.

         Whereas,  AJG proposes to enter into four (4) separate standard Form of
Agreements  (individually referred to as a "Facility Agreement" and collectively
referred to as the "Facility  Agreements") between Owner and Design/Builder with
Gencor  Industries,  Inc.  ("Contractor")  for  the  construction  of  four  (4)
agglomeration  facilities  within the United  States,  each to have a production
capacity of approximately  30,000 tons per month (individually  referred to as a
"Facility" and collectively referred to as the "Facilities").

         Now, therefore,  in consideration of the foregoing premises, the mutual
covenants  and  agreements  hereinafter  set forth,  and other good and valuable
consideration,  the receipt and sufficiency of which is hereby acknowledged, AJG
and Covol agree as follows:

         Section 1  Definitions.

         "Coal Briquetting  Technology" means intellectual property,  inventor's
certificates and applications  therefor,  printed and unprinted  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 other scientific or technical  information relating to or used in
the proprietary process to produce synthetic coal fuel extrusions and briquettes
from waste coal dust, coal fines,  and other similar coal  derivatives,  and the
proprietary binder material used in manufacturing synthetic coal fuel extrusions
and  briquettes  from  waste  coal  dust,  coal  fines  and other  similar  coal
derivatives,  in each case owned or controlled by Covol; provided, however, that
the defined term "Coal Briquetting Technology" shall not include the proprietary
process  developed by Covol to produce  synthetic coke extrusions and briquettes
from coke breeze or any  technology  other than the processing and production of
synthetic coal fuel extrusions or briquettes.

         "Commercial Use" means any usage of the Coal Briquetting Technology for
commercial  exploitation and any other usage to which Covol grants prior written
consent.

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

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

         "Facility" and "Facilities" have the meanings set forth in the
          preamble.

         "Facility Agreement" and "Facility Agreements" have the meanings set
          forth in the preamble.

         "Facility Assignment" has the meaning set forth in section 12 hereof.

         "Improvements" has the meaning set forth in section 2.3 hereof.

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

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

<PAGE>

         "Royalty" has the meaning set forth in section 3.2 hereof.

         Section 2  License Grant.

                  2.1  General.  Subject  to the  terms and  conditions  of this
Agreement,  Covol  hereby  grants to AJG a license  to use the Coal  Briquetting
Technology for  Commercial Use with each Facility,  including a license to make,
have made, use, and sell or otherwise  transfer  products which embody,  use, or
have been developed or manufactured  with the Coal Briquetting  Technology.  AJG
may propose the general  location  for each  Facility,  and Covol will then have
thirty (30) days to approve or disapprove of the general area for each Facility,
which approval  shall not  unreasonably  be withheld,  taking into account other
facilities  in  the  area  utilizing  Covol's  technology,   any  noncompetition
agreements, and like factors.

                  2.2 Know-How and  Assistance.  To enable AJG to benefit  fully
from the  license  of the  Coal  Briquetting  Technology,  Covol  shall  provide
reasonable access to documentation,  drawings,  engineering specifications,  and
other know-how in its possession that Covol determines is necessary to carry out
the purposes of this Agreement; reasonable access to its employees or agents who
are familiar with the Coal  Briquetting  Technology and Improvements to the Coal
Briquetting  Technology,  as defined in section 2.3; and  technical  advice with
regard to the Coal  Briquetting  Technology as is  reasonably  requested by AJG.
Covol  reserves  the right to deny  access to  documentation  and other forms of
information it deems unnecessary to carry out the purposes of this Agreement.

                  2.3 Improvements. Covol may develop improvements,  variations,
or modifications  ("Improvements") to the Coal Briquetting Technology.  The term
"Improvements"  shall  include  changes that reduce  production  costs,  improve
performance, or increase marketability.  Covol hereby grants to AJG a license to
utilize the Improvements made by it for Commercial Use,  including to make, have
made,  use,  and sell or  otherwise  transfer  products  that  utilize  any such
Improvements  subject to the terms of this Agreement.  It is mutually understood
and agreed that all Improvements  provided to AJG by Covol shall remain the sole
and exclusive property of Covol.

                  2.4  Confidentiality.  AJG hereby  agrees not to disclose  the
Coal  Briquetting  Technology  except to its agents,  employees,  directors,  or
representatives  that have a need to know about the Coal Briquetting  Technology
in connection  with the operation and maintenance of the Facilities and the sale
of coal briquettes or extrusions produced by the Facilities.

         Section 3  License Fees and Royalty.

                  3.1 License  Fees.  AJG shall pay a base  license fee to Covol
equal  to * for  each  Facility  at the  commencement  of  construction  of each
Facility.

                  3.2 Royalty Amount. As to each Facility, on or before the 15th
of the month  following the end of each fiscal  quarter,  AJG shall pay to Covol
royalty  payments  ("Royalty")  in an  amount  equal  to  the  product  of (i) *
multiplied  by (ii)  the MM Btu of the  extrusions  and  briquettes  sold by AJG
during the immediately preceding quarter. If unpaid by the date due, the Royalty
shall accrue simple interest at the rate of one (1) percent per month. Beginning
on January 1, 1997 and each year thereafter,  the Royalty shall be adjusted by *
of the increase or decrease in the inflation  adjustment  provided in Section 29
of the Internal Revenue Code.

         Section 4  Binder.

                  4.1 Sales of Binder.

                           4.1.1  Sale and Purchase.  Upon  the request  of AJG,
from time-to-time,  Covol shall sell to AJG a sufficient quantity of proprietary
binder material manufactured by Covol as is required to operate

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* Confidential  material omitted and filed separately with the Commission.

<PAGE>

each  Facility.  Covol shall  deliver the  proprietary  binder  material to each
Facility,  at such times and in such  amounts as  reasonably  requested  by AJG.
Payments for proprietary  binder material delivered by Covol during any calender
month  shall  be due and  payable  to  Covol  on the  10th  business  day of the
immediately  succeeding  month.  If unpaid by the due date,  the  payment  shall
accrue simple interest at the rate of one (1) percent per month.

                           4.1.2  Price.  The price which AJG  shall pay for the
proprietary binder material delivered by Covol during any calender year shall be
an amount  equal to (i) Covol's  direct and actual  costs  (direct  material and
labor costs and a percentage  of the total  overhead  costs of Covol  reasonably
reflecting the ratio of the administrative costs incurred in connection with the
manufacture  and sale of the  proprietary  binder material to the total overhead
costs of Covol)  reasonably  incurred  to  manufacture  the  proprietary  binder
material plus (ii) * of the amount determined pursuant to clause (i).

         Section 5 Records; Inspection; Confidentiality. Each party hereto shall
keep  accurate  records   containing  all  data  reasonably   required  for  the
computation and verification of the amounts to be paid by the respective parties
under  this  Agreement,  and shall  permit  each other  party or an  independent
accounting  firm  designated  by such other party to inspect  and/or  audit such
records during normal business hours upon reasonable  advance notice.  All costs
and expenses  incurred by a party in connection  with such  inspection  shall be
borne by it. Each party agrees to hold  confidential  from all third parties all
information contained in records examined by or on behalf of it pursuant to this
section 5.

         Section 6 Development and Construction of Facilities.

                  6.1 Assistance from Covol. Upon the reasonable request of AJG,
Covol  agrees to provide  assistance  from time to time in the  development  and
construction of each of the Facilities.  Covol shall also provide,  from time to
time upon the reasonable  request of AJG,  assistance to AJG in connection  with
presentations to potential investors in any of the Facilities.

                  6.2 Reimbursement of Expenses. AJG shall reimburse, on demand,
the travel  and other  similar  out-of-pocket  expenses  of Covol in  performing
services requested under Section 6.1; provided, however, that Covol shall obtain
the prior written approval of AJG for any expenditures in excess of $5,000.

         Section 7  Representations and Warranties.

                  7.1  Authority.  Each of Covol and AJG represents and warrants
that (i) the  execution,  delivery and  performance  of this  Agreement  and the
consummation of the transactions  contemplated  hereby have been or will be duly
authorized on its behalf by all requested action,  corporate or otherwise,  (ii)
it has the full right,  power and authority to enter into this  Agreement and to
carry out the terms of this Agreement,  (iii) it has duly executed and delivered
this Agreement,  and (iv) this Agreement is a valid and binding obligation of it
enforceable in accordance with its terms.

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

                  7.3 Intellectual Property Matters.  Covol warrants that it (i)
owns intellectual property,  inventor's  certificates and applications therefor,
printed and unprinted 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
other scientific or technical information relating to or used in the proprietary
process to produce synthetic coal fuel extrusions and briquettes from waste coal
dust,  coal fines,  and other  similar coal  derivatives,  and, the  proprietary
binder material used

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* Confidential  material omitted and filed separately with the Commission.

<PAGE>

in  manufacturing  synthetic coal fuel extrusions and briquettes from waste coal
dust, coal fines and other similar coal derivatives,  and (ii) has the right and
power to grant to AJG the licenses granted herein.

         Section 8 Term. This Agreement and the license granted  hereunder shall
be for the period from the Closing Date to and including January 1, 2008, or the
corresponding  date  under  Section  29 of the  1986  Code  in the  event  of an
extension of the tax credits available under Section 29 of the 1986 Code.

         Section 9 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 10  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 11 Notices. All notices required or permitted to be given under
this  Agreement  shall be in  writing.  Notices  may be served by  certified  or
registered mail, postage paid with return receipt requested; by private courier,
prepaid;  by telex,  facsimile,  or other  telecommunication  device  capable of
transmitting or creating a written record;  or personally.  Mailed notices shall
be deemed  delivered  five days after  mailing,  property  addressed.  Couriered
notices  shall be  deemed  delivered  when  delivered  as  addressed,  or if the
addressee refuses  delivery,  when presented for delivery  notwithstanding  such
refusal.  Telex or  telecommunicated  notices  shall be  deemed  delivered  when
receipt is either confirmed by confirming transmission equipment or acknowledged
by the  addressee  or its office.  Personal  delivery  shall be  effective  when
accomplished.  Unless a party  changes its address by giving notice to the other
party as  provided  herein,  notices  shall be  delivered  to the parties at the
following address:

                  Covol:            Covol Technologies, Inc.
                                    3280 North Frontage Road
                                    Lehi, Utah 84084
                                    Telephone:  (801) 768-4481
                                    Telecopier:  (801) 768-4483
                                    Attn.:  Mr. Brent M. Cook

         With a copy to:            Ballard Spahr Andrews & Ingersoll
                                    201 South Main Street, Suite 1200
                                    Salt Lake City, Utah 84111-2215
                                    Telephone:  (801) 531-3000
                                    Telecopier:  (801) 531-3001
                                    Attn.:  Mr. William Marsh

         Buyer:                     AJG Financial Services, Inc.
                                    The Gallagher Centre
                                    Two Pierce Place
                                    Itasca, IL  60143-3141
                                    Telephone:  (312) 285-3500
                                    Telecopier:  (312) 285-3483
                                    Attn.:  Mr. David R. Long

         With a copy to:            Rudnick & Wolfe
                                    203 North LaSalle Street
                                    Chicago, IL  60601-1293

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<PAGE>

                                    Telephone:  (312) 368-4000
                                    Telecopier:  (312) 236-7516
                                    Attn.:  Mr. John R. Mannix, Jr.

         Section 12 Assignment;  Sublicenses.  This Agreement may be assigned by
Covol to any of its  wholly-owned  subsidiaries.  After the  payment of the base
license fee  contemplated  under section 3.1 for a Facility,  AJG may assign its
rights  under this  Agreement  relating to that  Facility to persons or entities
approved by Covol (a "Facility Assignment").

         Section 13 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  forbear  from all such  action,  as may be
reasonably  necessary or appropriate in order more  effectively to carry out the
provisions of this Agreement.

         Section 14 Entire  Agreement.  This  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.   This  Agreement   supersedes  all  prior   communications,
representations, or agreements, verbal or written, among the parties relating to
the subject matter  hereof.  This Agreement may not be amended except in writing
signed by the parties hereto.

         Section 15   Governing  Law.  This  Agreement   shall  be  governed  in
accordance with the laws of the State of Utah.

         Section 16 Counterparts.  This Agreement may be executed in two or more
counterparts,  each which shall be deemed an original, but all of which together
shall constitute one and the same agreement.

         IN WITNESS WHEREOF,  the parties hereto have executed this Agreement by
their duly authorized representatives the day and year first above written.

                                              COVOL TECHNOLOGIES, INC.


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


                                              AJG FINANCIAL SERVICES, INC.


                                              By:  /s/ Mark Strauch
                                                 ----------------------
                                              Name:  Mark Strauch
                                              Title:  Treasurer

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