AMENDMENT TO CONVERTIBLE LOAN AND SECURITY AGREEMENT

         THIS  AMENDMENT  TO  CONVERTIBLE  LOAN  AND  SECURITY  AGREEMENT  (this
"Amendment") is made as of December 12, 1997, by and between COVOL TECHNOLOGIES,
INC., a Delaware  corporation  ("Borrower"),  and PACIFICORP FINANCIAL SERVICES,
INC., an Oregon corporation ("Lender").

                                    RECITALS

         A. The Borrower and Lender have  entered  into a  Convertible  Loan and
Security  Agreement  dated as of  March  20,  1997  (as the same may be  further
amended,  modified,  extended or restated,  the "Loan  Agreement"),  pursuant to
which the Lender has made secured credit  facilities  available to the Borrower.
Capitalized  terms used herein and not otherwise defined shall have the meanings
assigned to them in the Loan Agreement.

         B. The  Borrower  and the  Lender  desire to amend  the Loan  Agreement
pursuant to the terms set forth herein to increase the facility from  $5,000,000
to $7,000,000.

                                   AGREEMENTS

         In consideration of the foregoing Recitals,  and of the agreements made
herein,  and of the Term Loans made or to be made by the Lender to the Borrower,
the Borrower and the Lender agree as follows:

         1.       Amendments.  The Loan Agreement is hereby amended as follows:

                  (a) Amending and  restating  the  definition  of  "Termination
Date" in Section 1.01 in its entirety as follows:

                  "Termination Date" means August 31, 1998.

                  (b)  Deleting  "September  30,  1997"  in the  second  line of
Section 2.01.A and inserting "February 27, 1998" in its place.

                  (c) Deleting  "$5,000,000" in the sixth line of Section 2.01.A
and inserting "$7,000,000" in its place.

                  (d) Amending and restating  Section  2.01.B in its entirety as
follows:

                  The Term Loans shall be available in the following amounts and
                  for the  following  purposes:  (i) up to  $25,000 to repay the
                  Demand  Promissory  Note,  dated as of February 24,  1997,  of
                  Borrower in favor of Lender, (ii) up to $100,000 to be used as
                  a "good  faith"  deposit  pursuant to the Amended and Restated
                  Supply  Agreement,  dated  as of the  date  hereof,  (iii)  to
                  complete

<PAGE>

                  construction  by Borrower of the Alabama  Project,  (iv) up to
                  $2,030,000  to finance the  acquisition  by  Borrower  for the
                  benefit of the  Alabama  Project of up to 70,000  tons of coal
                  fines  to be  stored  at 1200  Concord  Mine  Road,  Hueytown,
                  Alabama,  and (v) up to an amount  equal to  $4,845,000  minus
                  such  amounts as are  borrowed  or  reasonably  expected to be
                  borrowed by the Borrower  pursuant to clause (iii) to fund the
                  net  working  capital  needs of the  plant  operations  of the
                  Alabama Project; provided,  however, that the determination of
                  the amount of such net working  capital needs shall be subject
                  to the  approval of Lender in its sole  discretion;  provided,
                  further,  that any  amounts  available  to be drawn  under any
                  letters of credit  arranged by Lender or any of its Affiliates
                  for the purposes described in this Section 2.01.B shall not be
                  available to be drawn as Term Loans hereunder.

                  (e)  Amending  and  restating  the first  sentence  of Section
10.01.A in its entirety as follows:

                  Lender  shall  have  the  right,  subject  to  the  terms  and
                  provisions of this ARTICLE X, at the option of the Lender, (i)
                  at any time, to convert,  the unpaid  principal  amount of the
                  Term Loans or any portion thereof,  and any accrued and unpaid
                  interest on such Term Loans, and (ii) at any time prior to the
                  Termination  Date, to  simultaneously  advance and convert (a)
                  that  portion  of  the  remaining   Commitment  equal  to  the
                  remaining  Commitment minus $1,000,000,  if a positive number,
                  and (b) after the Commitment  Period,  an amount equal to that
                  portion of the Commitment  which is not then  outstanding as a
                  Term Loan minus  $1,000,000 (it being  acknowledged  that this
                  does not extend the Commitment  Period), if a positive number,
                  into fully paid and  non-assessable  shares of Borrower Common
                  Stock or any capital stock or other securities into which such
                  Borrower  Common  Stock shall have been changed or any capital
                  stock or other  securities  resulting from a  reclassification
                  thereof ("Shares").

         2. Conditions Precedent.  The obligation of the Lender to make any Term
Loans that,  together  with Term Loans  outstanding  on the date hereof,  exceed
$5,000,000 in the aggregate is subject to the  fulfillment  or waiver in writing
of each of the following conditions precedent.

                  (a) The  Borrower  shall have  executed  and  delivered to the
Lender an amended and restated  promissory  note in the form attached  hereto as
Exhibit A (the "Amended and Restated Note").

                  (b) The Lender  shall have  received  an opinion of counsel to
the  Borrower  dated  as of  the  date  hereof  and  addressed  to  the  Lender,
substantially in the form attached hereto as Exhibit B.

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<PAGE>

                  (c) The  Borrower  and  Birmingham  Syn Fuel,  LLC shall  have
entered into an agreement  in the form  attached  hereto as Exhibit C (the "Coal
Fines  Purchase  Agreement")  pursuant to which Borrower shall sell certain coal
fines to Birmingham Syn Fuel, LLC.

                  (d) The  Borrower  and  PacifiCorp  Syn Fuel,  LLC shall  have
entered into an Amended and Restated Additional Facilities Agreement in the form
attached hereto as Exhibit D.

                  (e) The Lender shall have  received a letter from the Borrower
acknowledging  its obligation to indemnify the Lender and its  affiliates  under
Section 8.13 of the Loan Agreement for costs incurred by them in connection with
the Brandt Filtration Group v. Covol Technologies litigation, which letter shall
be acceptable to the Lender in its sole discretion.

                  (f) Each of the  parties  thereto  shall have  entered  into a
letter amendment substantially in the form attached hereto as Exhibit E amending
the Alabama Project Purchase Agreement.

                  (g) The Lender,  Borrower,  Alabama Synfuel #1 Ltd and TIC The
Industrial  Company  shall  have  executed  and  delivered  a  letter  agreement
substantially in the form attached hereto as Exhibit F.

                  (h) The Borrower,  Alabama  Synfuel #1 Ltd and  Birmingham Syn
Fuel,  LLC shall have entered  into an Amended and  Restated  License and Binder
Purchase Agreement substantially in the form attached hereto as Exhibit G.

         3.  Representations  and  Warranties.  (a)  Except as  modified  by the
attached schedules,  each and every  representation and warranty of the Borrower
set forth in the Loan Agreement is hereby confirmed and ratified in all material
respects and such  representations  and warranties  shall be deemed to have been
made and undertaken as of the date of this Amendment as well as at the time they
were made and undertaken.

                  (b)      The Borrower represents and warrants that:

                           (i)       No Event  of Default  now  exists  or  will
exist  immediately  following the execution hereof or after giving effect to the
transactions contemplated hereby.

                           (ii)      All necessary  actions on the  part of  the
Borrower to authorize the execution, delivery and performance of this Amendment,
the Amended and Restated Note and all other  documents or  instruments  required
pursuant  hereto or thereto  have been taken;  this  Amendment,  the Amended and
Restated  Note and each such other  document  or  instrument  have been duly and
validly  executed  and  delivered  and are legally  valid and  binding  upon the
parties thereto and enforceable in accordance with their respective terms,

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<PAGE>

except  to  the  extent  that  the  enforceability  thereof  may be  limited  by
bankruptcy, insolvency or like laws or by general equitable principles.

                           (iii)     The execution, delivery  and performance of
this  Amendment,  the  Amended and  Restated  Note and all other  documents  and
instruments   required   pursuant  hereto  or  thereto,   and  all  actions  and
transactions  contemplated  hereby  and  thereby  will  not (A)  violate,  be in
conflict with,  result in a breach of or constitute (with due notice or lapse of
time or both) a default under (I) any provision of the articles of incorporation
or bylaws of the Borrower,  (II) any arbitration award or any order of any court
or of any other governmental agency or authority,  (III) any license,  permit or
authorization  granted to the Borrower or under which the Borrower operates,  or
(IV) any applicable  law, rule,  order or  regulation,  indenture,  agreement or
other  instrument  to which the  Borrower is a party or by which the Borrower or
any of its properties is bound and which has not been waived or consented to, or
(B) result in the creation or imposition of any lien,  charge or  encumbrance of
any nature whatsoever, except as expressly permitted in the Loan Agreement, upon
any of the properties of the Borrower.

                           (iv)      No consent,  approval or  authorization of,
or filing, registration or qualification with, any governmental authority or any
other Person is required to be obtained by the Borrower in  connection  with the
execution,  delivery or performance of this Amendment,  the Amended and Restated
Note or any document or instrument  required in connection herewith or therewith
which has not already been obtained or completed.

         4.  Affirmation  of the Borrower.  The Borrower  acknowledges  that the
security  interests and liens granted by the Borrower to the Lender  pursuant to
the Loan Agreement and the other Security Documents shall continue to secure all
Obligations, as increased pursuant hereto.

         5. Counterparts. This Amendment may be executed in as many counterparts
as may be convenient  and shall become  binding when the Borrower and the Lender
have executed at least one counterpart.

         6.  Governing  Law. This  Amendment  shall be a contract made under and
governed by the laws of the State of Utah,  without  regard to the  conflicts of
law provisions thereof.

         7. Binding Effect. This Amendment shall be binding upon and shall inure
to the benefit of the Borrower,  the Lender and their respective  successors and
assigns, and in particular, any holder of the Note.

         8.  Reference to Loan  Agreement.  Except as amended  hereby,  the Loan
Agreement  shall  remain in full  force and effect  and is hereby  ratified  and
confirmed in all respects.  On and after the  effectiveness  of the amendment to
the Loan Agreement  accomplished hereby, each reference in the Loan Agreement to
"this Agreement",

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<PAGE>

"hereunder",  "hereof",  "herein" or words of like import, and each reference to
the  Loan  Agreement  in  any  of  the  Collateral   Assignment  of  Lease,  the
Construction Assignment Agreement,  the Construction  Assignment Agreement,  the
Registration Rights Agreement, and the Security Agreement, dated as of April 15,
1997,  by and between  Lender and Alabama  Synfuel #1 Ltd,  and any of the other
Transaction  Documents or any other agreement,  document or instrument  executed
and delivered pursuant to the Transaction Documents, shall be deemed a reference
to the Loan Agreement, as amended hereby.

         9.  No  Other  Modifications.  Except  as  expressly  provided  in this
Amendment,  all of the terms and conditions of the Loan  Agreement  shall remain
unchanged and in full force and effect.

         10. Same  Indebtedness.  The modifications  effected by this Amendment,
the  Amended  and  Restated  Note and by the  other  documents  and  instruments
contemplated hereby shall not be deemed to provide for or effect a repayment and
re-advance of any of the Obligations to the Lender now outstanding, it being the
intention  of the Borrower  and the Lender that the  Obligation  owing under the
Loan Agreement,  as amended by this Amendment,  be and is the same Obligation as
that  owing  under the Loan  Agreement  immediately  prior to the  effectiveness
hereof.

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<PAGE>

         IN WITNESS  WHEREOF,  the  parties  have  executed  this  Amendment  to
Convertible Loan and Security Agreement as of the date first above written.


                                            COVOL TECHNOLOGIES, INC.


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


                                            PACIFICORP FINANCIAL SERVICES, INC.



                                            By:  /s/ Reynold Roeder
                                               ---------------------
                                          Name: Reynold Roeder
                                         Title: Vice President

AGREED AND ACCEPTED
WITH RESPECT TO SECTION 8

ALABAMA SYNFUEL #1 LTD.


  By:  /s/ Brent M. Cook
     ---------------------------------------
Name:  Brent M. Cook
Title: Pres., Covol Technologies, Inc., G.P.

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