Document:

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                                                                   Exhibit 10.25

                       UNISYS DIRECTORS STOCK OPTION PLAN

                                   ARTICLE I
                       Purpose and Adoption of the Plan
                       --------------------------------

     1.1  Purpose.  The Unisys Directors Stock Option Plan (the "Plan") is
          -------
established as a sub-plan to the 1990 Unisys Long-Term Incentive Plan.  The
purpose of the Plan is to assist in attracting and retaining highly qualified
individuals to serve as outside directors of Unisys, to reward outside directors
for their service to Unisys and to act as an incentive in motivating the outside
directors to achieve long-term objectives of Unisys and its shareholders.

     1.2  Adoption and Term.  The Plan has been approved by the Board and is
          -----------------
effective as of January 1, 2000, and will remain in effect until terminated or
abandoned by action of the Board.

                                  ARTICLE II
                                  Definitions
                                  -----------

     2.1  "Adjusted Fair Market Value" means, in the event of a Change in
Control, the greater of (i) the highest Fair Market Value of a share of Company
Common Stock during the sixty day period ending on the date of such Change in
Control or (ii) in the case of a Change in Control described in Section 2.7(a)
or 2.7(c), the highest price per share of Company Common Stock paid to holders
of Company Common Stock in any transaction (or series of transactions)
constituting or resulting from such Change in Control.

     2.2  "Award" shall mean the grant of an Option made under the terms of the
Plan.

     2.3  "Award Agreement" means a written agreement between the Company and a
Participant or a written acknowledgement from the Company specifically setting
forth the terms and conditions of an Award granted under the Plan.

     2.4  "Beneficiary" means an individual, trust or estate who or which by
designation of the Participant or operation or law succeeds to the rights and
obligations of the Participant under the Plan and Award Agreement upon the
Participant's death.

     2.5  "Board" means the Board of Directors of Unisys.

     2.6  "Change in Control" means any of the following events:

               (a)  The acquisition by any individual, entity or group (within
          the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange
          Act of 1934, as amended (the "Exchange Act")) (a "Person") of
          beneficial ownership (within the meaning of Rule 13d-3 promulgated
          under the Exchange Act) of 20% or more of either (i) the then
          outstanding shares of common stock of the Company (the "Outstanding
          Company Common Stock") or (ii) the combined voting power of the then
          outstanding voting securities of the Company entitled to vote
          generally in the election of directors (the "Outstanding Company
          Voting Securities"); provided, however, that for purposes of this
          subsection (a), the following acquisitions shall not constitute a
          Change of Control: (i) any acquisition directly from the Company, (ii)
          any acquisition by the Company, (iii) any acquisition by any employee
          benefit plan (or related trust) sponsored or
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          maintained by the Company or any corporation controlled by the Company
          or (iv) any acquisition by any corporation pursuant to a transaction
          which complies with clauses (i), (ii) and (iii) of subsection (c) of
          this Section 2.07; or

               (b)  Individuals who, as of May 25, 1995, constitute the Board
          (the "Incumbent Board") cease for any reason to constitute at least a
          majority of the Board; provided, however, that any individual becoming
          a director subsequent to the date hereof whose election, or nomination
          for election by the Company's shareholders, was approved by a vote of
          at least a majority of the directors then comprising the Incumbent
          Board shall be considered as though such individual were a member of
          the Incumbent Board, but excluding, for this purpose, any such
          individual whose initial assumption of office occurs as a result of an
          actual or threatened election contest with respect to the election or
          removal of directors or other actual or threatened solicitation of
          proxies or consents by or on behalf of a Person other than the Board;
          or

               (c)  Consummation of a reorganization, merger or consolidation or
          sale or other disposition of all or substantially all of the assets of
          the Company (a "Business Combination"), in each case, unless,
          following such Business Combination, (i) all or substantially all of
          the individuals and entities who were the beneficial owners,
          respectively, of the Outstanding Company Common Stock and Outstanding
          Company Voting Securities immediately prior to such Business
          Combination beneficially own, directly or indirectly, more than 50%
          of, respectively, the then outstanding shares of common stock and the
          combined voting power of the then outstanding voting securities
          entitled to vote generally in the election of directors, as the case
          may be, of the corporation resulting from such Business Combination
          (including, without limitation, a corporation which as a result of
          such transaction owns the Company or all or substantially all of the
          Company's assets either directly or through one or more subsidiaries)
          in substantially the same proportions as their ownership, immediately
          prior to such Business Combination of the Outstanding Company Common
          Stock and Outstanding Company Voting Securities, as the case may be,
          (ii) no Person (excluding any corporation resulting from such Business
          Combination or any employee benefit plan (or related trust) of the
          Company or such corporation resulting from such Business Combination)
          beneficially owns, directly or indirectly, 20% or more of,
          respectively, the then outstanding shares of common stock of the
          corporation resulting from such Business Combination or the combined
          voting power of the then outstanding voting securities of such
          corporation except to the extent that such ownership existed prior to
          the Business Combination and (iii) at least a majority of the members
          of the board of directors of the corporation resulting from such
          Business Combination were members of the Incumbent Board at the time
          of the execution of the initial agreement, or of the action of the
          Board, providing for such Business Combination; or

               (d)  Approval by the shareholders of the Company of a complete
          liquidation or dissolution of the Company.

     2.7  "Code" means the Internal Revenue Code of 1986, as amended. References
to a section of the Code shall include that section and any comparable section
or sections of any future legislation that amends,

                                       2
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supplement or supersedes said section.

     2.8  "Committee" means the Corporate Governance and Compensation Committee
of the Board.

     2.9  "Company Common Stock" means the common stock of Unisys, par value
$.01 per share.

     2.10 "Company Voting Securities" means the combined voting power of all
outstanding voting securities of Unisys entitled to vote generally in the
election of directors for the Board.

     2.11 "Date of Grant" means the date designated by the Committee as the date
as of which it grants an Award, which shall not be earlier than the date on
which the Committee approves the granting of such Award.

     2.12 "Exchange Act" means the Securities Exchange Act of 1934, as amended.

     2.13 "Fair Market Value" means, on any date, the average of the high and
low quoted sales prices of a share of Company Common Stock, sold regular way, as
reported on the Composite Tape for New York Stock Exchange Listed Companies, on
such date or, if there were no sales on such date, on the last date preceding
such date on which a sale was reported.

     2.14 "Incumbent Board" means the Board as of May 25, 1995.

     2.15 "Non-Qualified Stock Option" means a stock option that is not an
incentive stock option within the meaning of Section 422A of the Code.

     2.16 "Option" means a Non-Qualified Stock Option granted under the Plan.

     2.17 "Outstanding Company Common Stock" means, at any time, the issued and
outstanding shares of Company Common Stock.

     2.18 "Participant" shall have the meaning set forth in Section 5.1.

     2.19 "Plan" shall mean the Unisys Directors Stock Option Plan as described
herein and as may be amended from time to time.

     2.20 "Purchase Price", with respect to Options, shall have the meaning set
forth in Section 6.1(b).

     2.21 "Rule 16b-3" means Rule 16b-3 promulgated by the Securities and
Exchange Commission under Section 16 of the Exchange Act, as it may be amended
from time to time, and any successor rule.

     2.22 "Subsidiary" shall have the meaning set forth in Section 425(f) of the
Code.

     2.23 "Termination of Service" means the voluntary or involuntary
termination of a Participant's service as a director of Unisys for any reason,
including death, disability or retirement. Whether a Termination of Service is a
result of disability shall be determined in each case by the Committee in its
sole discretion.

     2.24 "Unisys" means Unisys Corporation, a Delaware corporation.

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                                  ARTICLE III
                                Administration
                                --------------

     3.1  Committee.  The Plan shall be administered by the Committee.  The
          ---------
Committee shall be selected from time to time by the Board, and shall be
comprised of not less than three members of the Board or such other persons who
would constitute "Non-Employee Directors" under the requirements of Rule 16b-3.
The Committee shall have exclusive and final authority in each determination,
interpretation or other action affecting the Plan and its Participants.  The
Committee shall have the sole discretionary authority to interpret the Plan, and
to take such steps in connection with the Plan and Awards granted as it may deem
necessary or advisable.  With Board ratification, the Committee may cancel
Awards and substitute new Options for underwater Options with the consent of the
recipient and under such terms as it deems appropriate.

                                  ARTICLE IV
                          Shares Issued Under Awards
                          --------------------------

     4.1  Shares Available for Issuance.  The shares issued as a result of the
          -----------------------------
grant of Awards under this Plan shall be issued from the shares available for
awards made under the terms of the 1990 Unisys Long-Term Incentive Plan.

     4.2  Shares Subject to Terminated Awards.  The shares of Company Common
          -----------------------------------
Stock involved in any unexercised portions of terminated Options (including
cancelled Options) granted under the Plan may again be subject to Awards under
the Plan or the 1990 Unisys Long-Term Incentive Plan.

                                   ARTICLE V
                                 Participants
                                 ------------

     5.1  Eligible Participants.  Participants in the Plan eligible to receive
          ---------------------
Awards shall be those members of the Board who are not employees of Unisys.

                                  ARTICLE VI
                                 Stock Options
                                 -------------

     6.1  Option Awards.
          -------------

               (a)  The Committee may grant, to such Participants as the
          Committee may select, Options entitling the Participant to purchase
          Company Common Stock from Unisys in such quantity, at such price, and
          on such terms and subject to such conditions, not inconsistent with
          the terms of this Plan, as may be established by the Committee. The
          terms of any Stock Option granted under this Plan shall be set forth
          in an Award Agreement. All Awards made by the Committee under the Plan
          will be subject to ratification by the Board.

               (b)  Purchase Price of Options.  The Purchase Price of each share
                    -------------------------
          of Company Common Stock which may be purchased upon exercise of any
          Option granted under the Plan shall be determined by the Committee,
          provided that such Purchase Price shall be not less than 50% of the
          Fair Market Value on the Date of Grant

               (c)  Rights as a Stockholder.  A Participant or a transferee of
                    -----------------------
          an Option pursuant to Section 7.4 shall have no rights as a
          stockholder with respect to any shares of Company Common Stock covered
          by an Option until the Participant or transferee shall have become the
          holder of record or beneficial owner of any such shares, and no
          adjustment shall be made for dividends in cash or other property or
          distributions or other rights with respect to any such shares of
          Company

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          Common Stock for which the record date is prior to the date on which
          the Participant or a transferee of the Option shall have become the
          holder of record or beneficial owner of any such shares covered by the
          Option.

     6.2  Terms of Stock Options.
          ----------------------

               (a)  Conditions on Exercise.  An Award Agreement with respect to
                    ----------------------
          Options may contain such waiting periods, exercise dates and
          restrictions on exercise (including, but not limited to, periodic
          installments which may be cumulative) as may be determined by the
          Committee at the time of grant. Unless otherwise authorized by the
          Board, no Stock Option may be exercised in whole or in part prior to
          one year from the Date of Grant, except as set forth in Section 6.4.

               (b)  Duration of Options.  Options shall terminate after the
                    -------------------
          first to occur of the following events:

               (1)  Expiration of the Option as provided in the Award Agreement;
          or

               (2)  Termination of the Award as provided in Section 6.2(e),
          following the Participant's Termination of Service.

               (c)  Acceleration of Exercise Time.  The Committee, in its sole
                    -----------------------------
          discretion, shall have the right (but shall not in any case be
          obligated) to permit purchase of shares under any Option prior to the
          time such Option would otherwise become exercisable under the terms of
          the Award Agreement, except that the acceleration of exercise prior to
          one year from the Date of Grant must be approved by the Board.

               (d)  Extension of Exercise Time.  In addition to the extensions
                    --------------------------
          permitted under Section 6.2(e) in the event of Termination of Service,
          the Committee, in its sole discretion, shall have the right (but shall
          not in any case be obligated) to permit any Option granted under this
          Plan to be exercised after its expiration date described in Section
          6.2(e), subject, however to the limitations described in Section
          6.2(b)(1).

               (e)  Exercise of Options upon Termination of Service.
                    -----------------------------------------------

               (1)  Termination with Less than Five Years of Service.  In the
                    ------------------------------------------------
          event of Termination of Service of a Participant who had not served on
          the Board for at least five years for a reason other than death or
          disability, to the extent the right to exercise the Option had accrued
          at the date of Termination of Service, the right of the Participant to
          exercise the Option under the Plan shall terminate at the date of such
          Termination of Service, unless otherwise provided by the Committee in
          accordance with Section 6.2(d). Options, or any portion thereof, that
          had not become exercisable as of the date of such Termination of
          Service shall expire as of such date.

                    (A)  Disability.  Upon a Participant's Termination of
                         ----------
          Service by reason of disability prior to the date on which the
          Participant completes five years of service, the Participant may,
          within five years after the Termination of Service, exercise all or
          any part of his or her Options which were exercisable upon such
          Termination of Service. In no event, however, may any Option be
          exercised later than the date described in Section 6.2(b)(1). Options,
          or any portion thereof, that had not become exercisable as of the date
          of such Termination of Service shall expire as of such date.

                                       5
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                    (B)  Death.  In the event of the death of a Participant
                         -----
          while serving as a director of Unisys or within the additional period
          of time from the date of Termination of Service and prior to the
          expiration of the Option as permitted in Section 6.2(e)(1)(A) or
          Section 6.2(e)(2), to the extent the right to exercise the Option
          accrued as of the date of such Termination of Service or thereafter
          and did not expire during such additional period and prior to the
          Participant's death, the right of the Participant's Beneficiary to
          exercise the Option under the Plan shall expire upon the earliest of
          (i) five years from the date of the Participant's death or (ii) five
          years from the date of the Participant's Termination of Service or
          (iii) the date of expiration of the Option determined pursuant to
          Section 6.2(b)(1). Options, or any portion thereof, that had not
          become exercisable as of the date of the Participant's death shall
          expire as of the date of death.

               (2)  Termination of Service with Five Years of Service.  If a
                    -------------------------------------------------
          Participant terminates service after completing five years of service
          as a director of Unisys,

                    (A)  to the extent that the right to exercise an Option, or
               any portion thereof, has not accrued as of the date of
               Termination of Service, the Participant shall continue to vest in
               the Option after Termination of Service in accordance with the
               vesting schedule contained in the applicable Award Agreement, and

                    (B)  the Participant may exercise the Option, to the extent
               the right to exercise has accrued as of the date of Termination
               of Service or thereafter in accordance with Section 6.2(e)(2)(A),
               within five years of the date of the Participant's Termination of
               Service, provided in no event may any Option be exercised later
               than the date described in Section 6.2(b)(1).

     6.3  Exercise Procedures.  Each Option granted under the Plan shall be
          -------------------
exercised by written notice to Unisys which must be received by the office of
Unisys designated in the Award Agreement on or before the expiration date of the
Award.  The Purchase Price of shares purchased upon exercise of an Option
granted under the Plan shall be paid in full in cash by the Participant pursuant
to the Award Agreement; provided, however, that the Committee may (but need not)
permit payment to be made by delivery to Unisys of either (a) shares of Company
Common Stock (which may include shares issued in connection with the exercise of
the Option, subject to such rules as the Committee deems appropriate) or (b) any
combination of cash and shares of Company Common Stock, or (c) such other
consideration as the Committee deems appropriate and in compliance with
applicable law (including payment in accordance with a cashless exercise program
under which, if so instructed by the Participant, shares of Company Common Stock
may be issued directly to the Participant's broker or dealer upon receipt of the
Purchase Price in cash from the broker or dealer.)  In the event that any
Company Common Stock shall be transferred to Unisys to satisfy all or any part
of the Purchase Price, the part of the Purchase Price deemed to have been
satisfied by such transfer of Company Common Stock shall be equal to the product
derived by multiplying the Fair Market Value as of the date of exercise times
the number of shares transferred.  The Participant may not transfer to Unisys in
satisfaction of the Purchase Price (y) a number of shares which when multiplied
times the Fair Market Value as of the date of exercise would result in a product
greater than the Purchase Price or (z) any fractional share of Company Common
Stock. Any part of the Purchase Price paid in cash upon the exercise of any
Option shall be added to the general funds of Unisys and be used for any proper
corporate purpose.  Unless the Committee shall otherwise determine, any Company
Common Stock transferred to Unisys as payment of all or part of the Purchase
Price upon the exercise of any Option shall be held as treasury shares.

                                       6
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     6.4  Change in Control.  In the event of a Change in Control, (1) all
          -----------------
Options outstanding on the date of such Change in Control shall become
immediately and fully exercisable, and (2) a Participant will be permitted to
surrender for cancellation within sixty days after such Change in Control any
Option or portion of an Option to the extent not yet exercised (or with respect
to an Option or portion of an Option granted less than six months prior to the
date of the Change in Control, within sixty days after the expiration of a six
month period following the Date of Grant) and to receive a cash payment in an
amount equal to the excess, if any, of (A) the Adjusted Fair Market Value of the
Company Common Stock subject to the Option or a portion thereof surrendered,
over (B) the Purchase Price. The provisions of this Section 6.4 shall not be
applicable to any Options granted to a Participant if any Change in Control
results from such Participant's beneficial ownership (within the meaning of Rule
13d(3) under the Exchange Act) of Company Common Stock or Company Voting
Securities.

                                  ARTICLE VII
             Terms Applicable to All Awards Granted Under the Plan
             -----------------------------------------------------

     7.1  Plan Provisions Control Award Terms.  The terms of the Plan shall
          -----------------------------------
govern all Awards granted under the Plan, and in no event shall the Committee
have the power to grant any Award under the Plan which is contrary to any of the
provisions of the Plan. In the event any provision of any Award granted under
the Plan should conflict with any term in the Plan as constituted on the Date of
Grant of such Award, the term in the Plan as constituted on the Date of Grant of
such Award shall control. Except as provided in Section 7.3, the terms of any
Award granted under the Plan may not be changed after the Date of Grant of such
Award so as to materially decrease the value of the Award without the express
approval of the holder.

     7.2  Award Agreement.  No person shall have any rights under any Award
          ---------------
granted under the Plan unless and until Unisys and the Participant to whom such
Award shall have been granted shall have executed and delivered an Award
Agreement or other Award acknowledgment expressly granting the Award to such
person and containing provisions setting forth the terms of the Award.

     7.3  Modification of Award After Grant.  No Award granted under the Plan to
          ---------------------------------
a Participant may be modified (unless such modification does not materially
decrease the value of the Award) after the date of its grant unless by express
written agreement between Unisys and the Participant provided that any such
change (a) shall not be inconsistent with the terms of the Plan, and (b) shall
be approved by the Committee. No modifications may be made to any Awards granted
to a Participant while the Participant is subject to Section 16(b) of the
Exchange Act except in compliance with Rule 16b-3.

     7.4  Limitations on Transfer.  A Participant's rights and interest under
          -----------------------
the Plan may not be assigned or transferred other than by will or the laws of
descent and distribution, and during the lifetime of a Participant, only the
Participant personally (or the Participant's personal representative) may
exercise rights under the Plan. The Participant's Beneficiary may exercise the
Participant's rights to the extent they are exercisable under the Plan following
the death of the Participant.

     7.5  Taxes.  Unisys shall be entitled, if the Committee deems it necessary
          -----
or desirable, to withhold (or secure payment from the Participant in lieu of
withholding) the amount of any withholding or other tax required by law to be
withheld or paid by Unisys with respect to any amount payable and/or shares
issuable under such Participant's Award, and Unisys may defer payment or
issuance of the cash or stock upon exercise of an Award unless indemnified to
its satisfaction against any liability for any such tax. The amount of such
withholding or tax payment shall be determined by the Committee and shall be
payable by the Participant at the time of issuance or payment

     7.6  Surrender of Awards.  Any Award granted under the Plan may be
          -------------------
surrendered to Unisys for cancellation on such terms as the Committee and holder
approve.

                                       7
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     7.9  Adjustments to Reflect Capital Changes.
          --------------------------------------

               (a)  Recapitalization.  The number and kind of shares subject to
                    ----------------
          outstanding Awards, the Purchase Price or Exercise Price for such
          shares, and the number and kind of shares available for Awards
          subsequently granted under the Plan shall be appropriately adjusted to
          reflect any stock dividend, stock split, combination or exchange of
          shares, merger, consolidation or other change in capitalization with a
          similar substantive effect upon the Plan or the Awards granted under
          the Plan.  The Committee shall have the power to determine the amount
          of the adjustment to be made in each case.

               (b)  Sale or Reorganization.  After any reorganization, merger or
                    ----------------------
          consolidation in which Unisys is the surviving corporation, each
          Participant shall, at no additional cost, be entitled upon any
          exercise of an Option to receive (subject to any required action by
          shareholders), in lieu of the number of shares of Company Common Stock
          receivable or exercisable pursuant to such Award, the number and class
          of shares of stock or other securities to which such Participant would
          have been entitled pursuant to the terms of the reorganization, merger
          or consolidation if, at the time of such reorganization, merger or
          consolidation, such Participant had been the holder of record of a
          number of shares of stock equal to the number of shares receivable or
          exercisable pursuant to such Award.  Comparable rights shall accrue to
          each Participant in the event of successive reorganizations, mergers
          or consolidations of the character described above.

               (c)  Options to Purchase Stock of Acquired Companies.  After any
                    -----------------------------------------------
          reorganization, merger or consolidation in which Unisys or a
          Subsidiary of Unisys shall be a surviving corporation, the Committee
          may grant substituted options under the provisions of the Plan,
          pursuant to Section 425 of the Code, replacing old options granted
          under a plan of another party to the reorganization, merger or
          consolidation whose stock subject to the old options may no longer be
          issued following such merger or consolidation.  The foregoing
          adjustments and manner of application of the foregoing provisions
          shall be determined by the Committee in its sole discretion.  Any such
          adjustments may provide for the elimination of any fractional shares,
          which might otherwise become subject to any Options.

     7.7  Governing Law.  All determinations made and actions taken pursuant to
          -------------
the Plan shall be governed by the laws of the Commonwealth of Pennsylvania and
construed in accordance therewith.

     7.8  No Strict Construction.  No rule of strict construction shall be
          ----------------------
implied against Unisys, the Committee, or any other person in the interpretation
of any of the terms of the Plan, any Award granted under the Plan or any rule or
procedure established by the Committee.

     7.9  Compliance with Rule 16b-3.  It is intended that the Plan be applied
          --------------------------
and administered in compliance with Rule 16b-3. If any provision of the Plan
would be in violation of Rule 16b-3 if applied as written, such provision shall
not have effect as written and shall be given effect so as to comply with Rule
16b-3, as determined by the Committee. The Board is authorized to amend the plan
and to make any such modifications to Award Agreements to comply with Rule 16b-
3, as it may be amended from time to time, and to make any other such amendments
or modifications as it deems necessary or appropriate to better accomplish the
purposes of the Plan in light of any amendments made to Rule 16b-3.

     7.10 Captions.  The captions (i.e., all underlined words) used in the Plan
          --------
are for convenience only, do not constitute a part of the Plan, and shall not be
deemed to limit, characterize or affect in any way any provisions of the Plan,
and all provisions of the Plan shall be construed as if no captions have been
used in the Plan.

                                       8
<PAGE>

     7.11 Severability.  Whenever possible, each provision in the Plan and every
          ------------
Award at any time granted under the Plan shall be interpreted in such manner as
to be effective and valid under applicable law, but if any provision of the Plan
or any Award at any time granted under the Plan shall be held to be prohibited
by or invalid under applicable law, then (a) such provision shall be deemed
amended to accomplish the objectives of the provision as originally written to
the fullest extent permitted by law and (b) all other provisions of the Plan and
every other Award at any time granted under the Plan shall remain in full force
and effect.

     7.12 Amendment and Termination.
          -------------------------

               (a)  Amendment.  The Board shall have complete power and
                    ---------
          authority to amend the Plan at any time and to add any other stock
          award or other incentive compensation programs to the Plan as it deems
          necessary or appropriate and no approval by the stockholders of Unisys
          or by any other person, committee or entity of any kind shall be
          required to make any amendment. No termination or amendment of the
          Plan may, without the consent of the Participant to whom any Award
          shall theretofore have been granted under the Plan, adversely affect
          the right of such individual under such Award.

               (b)  Termination.  The Board shall have the right and the power
                    -----------
          to terminate the Plan at any time. No Award shall be granted under the
          Plan after the termination of the Plan, but the termination of the
          Plan shall not have any other effect and any Award outstanding at the
          time of the termination of the Plan may be exercised after termination
          of the Plan at any time prior to the expiration date of such Award to
          the same extent such Award would have been exercisable had the Plan
          not terminated.

                                       9ASSIGNMENT AND AMENDMENT AGREEMENT

         THIS  ASSIGNMENT  AND  AMENDMENT  dated as of  February  4, 2000  (this
"Agreement"),  made  by  and  between  Covol  Technologies,   Inc.,  a  Delaware
corporation  ("Covol"),  Utah  Synfuel #1 Ltd., a Delaware  limited  partnership
("Utah Synfuel"),  AJG Financial Services, Inc., a Delaware corporation ("AJG"),
and Coaltech No. 1 L.P., a Delaware limited partnership ("Coaltech").

                                    RECITALS

         WHEREAS,  Covol and AJG are  parties to that  certain  Debenture  dated
January 9, 1999 (the "Debenture") in the principal amount of $4,367,351.28; and

         WHEREAS,  as of the date  hereof,  the total amount owing from Covol to
AJG under the Debenture is $4,927,318.23 (the "Debenture Balance"); and

         WHEREAS,  Covol, Utah Synfuel, and Coaltech are parties to that certain
Non- Negotiable  Nonrecourse Promissory Note dated March 7, 1997 (the "Note") in
the principal amount of $3,500,000,  and that certain Security Agreement of even
date therewith (the "Security Agreement") relating to the note; and

         WHEREAS, as of the date hereof, the total amount owing from Coaltech to
Covol under the Note is $2,965,361.82 (the "Note Balance"); and

         WHEREAS, Covol and AJG desire and are willing to amend the terms of the
Debenture; and

         WHEREAS,  the  parties  hereto  desire to  effect  the  assignment  and
transfer by Covol and Utah  Synfuel to AJG of all the right,  title and interest
of Covol and Utah Synfuel in, under and with respect to the Note.

         NOW  THEREFORE,  in  consideration  of  the  premises  and  the  mutual
covenants and agreements herein contained, and for other valuable consideration,
the receipt and sufficiency of which is hereby acknowledged,  the parties hereto
do hereby agree as follows:

         SECTION 1. Assignment.

         (a) Effective as of the date hereof,  Covol and Utah Synfuel hereby (i)
irrevocably sell,  assign,  transfer and convey to AJG all of their right, title
and interest in and to the Note;  (ii) release any and all liens,  encumbrances,
and security  interests of whatsoever  nature against the Collateral (as defined
in the Note); (iii) agree that the Security Agreement is

                                        1
<PAGE>

terminated effective as of the date hereof; and (iv) agree to execute,  deliver,
and file such documents of release of lien,  including UCC filings, as AJG shall
reasonably direct.

         (b) Covol and Utah  Synfuel  hereby  covenant  and agree to pay over to
AJG, if and when received  following the date hereof, any amounts (including any
sums payable as interest in respect thereof) paid to or for the benefit of Covol
or Utah Synfuel that, under subsection (a) hereof, belong to AJG.

         SECTION 2. Amendment.

         (a) As of the  date  hereof,  Covol  and AJG  amend  the  Debenture  as
follows: (i) the Debenture Balance is reduced by the amount of the Note Balance,
to a  remaining  balance  of  $1,939,232.04  due  from  Covol to AJG  under  the
Debenture; and (ii) the due date of the Debenture for the remaining balance plus
interest is extended  from January 10, 2000 to October 31,  2000;  and all other
terms and provisions of the Debenture  (including  terms of the letter agreement
dated 26 February  1998 by and between Covol and AJG) shall remain in full force
and effect.

         (b) The amount due and  payable on October  31,  2000 is the  remaining
balance due under the Debenture of $1,961,956.41 plus interest of $86,756.09 for
a total of $2,048,712.40.

         SECTION  3.  Governing  Law.  This  Agreement  shall be  construed  and
enforced in accordance with and governed by the law of the State of Utah without
giving effect to the principles thereof relating to conflicts of law.

         SECTION 4.  Counterparts.  This Agreement may be executed in any number
of  counterparts,  each of 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 caused this Agreement to be
duly executed and delivered on the date first above written.

                                             COVOL TECHNOLOGIES, INC.

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

                                        2
<PAGE>

                                             AJG FINANCIAL SERVICES, INC.

                                             /s/ John C. Rosengren
                                             ---------------------
                                             Name:  John C. Rosengren
                                             Title: Vice President and
                                                    General Counsel

                                             UTAH SYNFUEL #1 LTD.

                                             By Covol Technologies, Inc.,
                                               general partner

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

                                             COALTECH NO. 1, L.P.
                                             By: US Coal LLC, general partner

                                             /s/ David S. O'Neill
                                             --------------------
                                             Name:  David S. O'Neill
                                             Title: Manager of the General
                                                    Partner

                                        3

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