Document:

BUSINESS LOAN AGREEMENT

Borrower:         Covol Technologies, Inc.
                  3280 North Frontage Road
                  Lehi, UT  84043

Lender:           Zions First National Bank
                  Head Ofiice/Commercial Banking
                  #1 South Main Street
                  P.O.Box 25822
                  Salt Lake City, UT  84125

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         THIS  BUSINESS  LOAN  AGREEMENT   between  COVOL   TECHNOLOGIES,   INC.
("Borrower")  and ZIONS FIRST  NATIONAL BANK  ("Lender") is made and executed on
the following terms and conditions. Borrower has received prior commercial loans
from  Lender or has applied to Lender for a  commercial  loan or loans and other
financial accommodations,  including those which may be described on any exhibit
or  schedule   attached  to  this  Agreement.   All  such  loans  and  financial
accommodations, together with all future loans and financial accommodations from
Lender to Borrower, are referred to in this Agreement individually as the "Loan"
and  collectively as the "Loans."  Borrower  understands and agrees that: (a) in
granting,  renewing,  or extending any Loan,  Lender is relying upon  Borrower's
representations, warranties, and agreements, as set forth in this Agreement; (b)
the granting, renewing, or extending of any Loan by Lender at all times shall be
subject to Lender's sole judgment and  discretion;  and (c) all such Loans shall
be and shall  remain  subject  to the  following  terms and  conditions  of this
Agreement.

TERM.  This Agreement  shall be effective as of May 31, 2000, and shall continue
thereafter  until all  Indebtedness  of Borrower to Lender has been performed in
full and the parties terminate this Agreement in writing.

DEFINITIONS.  The following words shall have the following meanings when used in
this  Agreement.  Terms not otherwise  defined in this Agreement  shall have the
meanings attributed to such terms in the Uniform Commercial Code. All references
to dollar  amounts  shall mean amounts in lawful  money of the United  States of
America.

    Agreement.  The word "Agreement" means this Business Loan Agreement, as this
    Business  Loan  Agreement  may be  amended  or  modified  from time to time,
    together  with all exhibits and  schedules  attached to this  Business  Loan
    Agreement from time to time.

    Borrower.  The word  "Borrower"  means COVOL  TECHNOLOGIES,  INC..  The word
    "Borrower" also includes, as applicable,  all subsidiaries and affiliates of
    Borrower  as  provided  below  in the  paragraph  titled  "Subsidiaries  and
    Affiliates."

    CERCLA.  The word "CERCLA" means the Comprehensive  Environmental  Response,
    Compensation, and Liability Act of 1980, as amended.

    Collateral.  The word "Collateral" means and includes without limitation all
    property and assets

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    granted  as  collateral  security  for a  Loan,  whether  real  or  personal
    property, whether granted directly or indirectly,  whether granted now or in
    the  future,  and  whether  granted  in the  form  of a  security  interest,
    mortgage,  deed of trust,  assignment,  pledge,  chattel  mortgage,  chattel
    trust,  factor's lien,  equipment  trust,  conditional  sale, trust receipt,
    lien,  charge,  lien or  title  retention  contract,  lease  or  consignment
    intended  as a  security  device,  or any other  security  or lien  interest
    whatsoever, whether created by law, contract, or otherwise.

    ERISA. The word "ERISA" means the Employee Retirement Income Security Act of
    1974, as amended.

    Event of  Default.  The words  "Event of Default"  mean and include  without
    limitation  any of the  Events of  Default  set forth  below in the  section
    titled "EVENTS OF DEFAULT."

    Grantor.  The word "Grantor" means and includes without  limitation each and
    all  of  the  persons  or  entities  granting  a  Security  Interest  in any
    Collateral for the Indebtedness,  including without limitation all Borrowers
    granting such a Security Interest.

    Indebtedness.  The word "Indebtedness" means and includes without limitation
    all Loans,  together with all other  obligations,  debts and  liabilities of
    Borrower  to  Lender,  or any one or more of them,  as well as all claims by
    Lender  against  Borrower,  or any  one or  more  of  them;  whether  now or
    hereafter  existing,  voluntary or involuntary,  due or not due, absolute or
    contingent,  liquidated  or  unliquidated;  whether  Borrower  may be liable
    individually or jointly with others;  whether Borrower may be obligated as a
    guarantor, surety, or otherwise; whether recovery upon such Indebtedness may
    be or hereafter may become barred by any statute of limitations; and whether
    such Indebtedness may be or hereafter may become otherwise unenforceable.

    Lender.  The word "Lender"  means ZIONS FIRST  NATIONAL BANK, its successors
    and assigns.

    Loan. The word "Loan" or "Loans" means and includes  without  limitation any
    and all  commercial  loans  and  financial  accommodations  from  Lender  to
    Borrower,   whether  now  or  hereafter  existing,  and  however  evidenced,
    including  without  limitation  those  loans  and  financial  accommodations
    described  herein or described  on any exhibit or schedule  attached to this
    Agreement from time to time.

    Note.  The word "Note"  means and  includes  without  limitation  Borrower's
    promissory note or notes, if any, evidencing  Borrower's Loan obligations in
    favor of Lender, as well as any substitute,  replacement or refinancing note
    or notes therefor.

    Permitted Liens.  The words  "Permitted  Liens" mean: (a) liens and security
    interests  securing  Indebtedness owed by Borrower to Lender;  (b) liens for
    taxes, assessments, or similar charges either not yet due or being contested
    in good  faith;  (c)  liens  of  materialmen,  mechanics,  warehousemen,  or
    carriers, or other like liens arising in the ordinary course of business and
    securing obligations which are not yet delinquent;  (d) purchase money liens
    or purchase  money security  interests  upon or in any property  acquired or
    held by Borrower in the ordinary  course of business to secure  indebtedness
    outstanding  on the date of this Agreement or permitted to be incurred under
    the paragraph of this Agreement titled  "Indebtedness and Liens";  (e) liens
    and  security  interests  which  are in  existence,  as of the  date of this
    Agreement,  including, but not limited to the security interest of OZ Master
    Fund, Ltd., which will be eliminated upon  disbursement of the $4,000,000.00
    Zions Bank loan;  and (f) those liens and  security  interests  which in the
    aggregate  constitute an immaterial and  insignificant  monetary amount with
    respect to the net value of Borrower's assets.

<PAGE>

    Related  Documents.  The words "Related  Documents" mean and include without
    limitation  all  promissory  notes,  credit  agreements,   loan  agreements,
    environmental agreements,  guaranties, security agreements, mortgages, deeds
    of trust, and all other instruments,  agreements and documents,  whether now
    or hereafter existing, executed in connection with the Indebtedness.

    Security Agreement.  The words "Security Agreement" mean and include without
    limitation any agreements, promises, covenants, arrangements, understandings
    or  other  agreements,  whether  created  by law,  contract,  or  otherwise,
    evidencing, governing, representing, or creating a Security Interest.

    Security  Interest.  The words "Security  Interest" mean and include without
    limitation any type of collateral  security,  whether in the form of a lien,
    charge,  mortgage,  deed of trust,  assignment,  pledge,  chattel  mortgage,
    chattel trust,  factor's lien,  equipment  trust,  conditional  sale,  trust
    receipt, lien or title retention contract,  lease or consignment intended as
    a  security  device,  or any other  security  or lien  interest  whatsoever,
    whether created by law, contract, or otherwise.

    SARA. The word "SARA" means the Superfund Amendments and Reauthorization Act
    of 1986 as now or hereafter amended.

CONDITIONS  PRECEDENT TO EACH ADVANCE.  Lender's  obligation to make the initial
Loan Advance and each  subsequent  Loan Advance  under this  Agreement  shall be
subject to the fulfillment to Lender's satisfaction of all of the conditions set
forth in this Agreement and in the Related Documents.

    Loan  Documents.  Borrower shall provide to Lender in form  satisfactory  to
    Lender the  following  documents  for the Loan:  (a) the Note,  (b) Security
    Agreements  granting to Lender  security  interests in the  Collateral,  (c)
    Financing Statements perfecting Lender's Security Interests; (d) evidence of
    insurance as required below; and (e) any other documents required under this
    Agreement or by Lender or its counsel.

    Borrower's Authorization. Borrower shall have provided in form and substance
    satisfactory to Lender properly certified resolutions,  duly authorizing the
    execution  and  delivery  of  this  Agreement,  the  Note  and  the  Related
    Documents, and such other authorizations and other documents and instruments
    as Lender or its counsel, in their sole discretion, may require.

    Payment of Fees and Expenses.  Borrower  shall have paid to Lender all fees,
    charges,  and other  expenses which are then due and payable as specified in
    this Agreement or any Related Document.

    Representations and Warranties. The representations and warranties set forth
    in  this  Agreement,  in the  Related  Documents,  and in  any  document  or
    certificate delivered to Lender under this Agreement are true and correct.

    No Event of  Default.  There  shall not  exist at the time of any  advance a
    condition which would constitute an Event of Default under this Agreement.

REPRESENTATIONS  AND WARRANTIES.  Borrower represents and warrants to Lender, as
of the  date of this  Agreement,  as of the  date of each  disbursement  of Loan
proceeds, as of the date of any renewal,  extension or modification of any Loan,
and at all times any Indebtedness exists:

    Organization.  Borrower is a corporation  which is duly  organized,  validly
    existing,  and in good

<PAGE>

    standing under the laws of the State of Delaware and is validly existing and
    in good standing in all states in which Borrower is doing business. Borrower
    has the full power and authority to own its  properties  and to transact the
    businesses in which it is presently engaged or presently proposes to engage.
    Borrower  also is duly  qualified  as a foreign  corporation  and is in good
    standing  in all  states in which the  failure  to so  qualify  would have a
    material adverse effect on its businesses or financial condition.

    Authorization.  The execution,  delivery,  and performance of this Agreement
    and all  Related  Documents  by  Borrower,  to the  extent  to be  executed,
    delivered  or  performed  by  Borrower,  have  been duly  authorized  by all
    necessary action by Borrower;  do not require the consent or approval of any
    other person, regulatory authority or governmental body; and do not conflict
    with,  result in a  violation  of,  or  constitute  a default  under (a) any
    provision of its articles of incorporation or  organization,  or bylaws,  or
    any  agreement or other  instrument  binding  upon  Borrower or (b) any law,
    governmental regulation, court decree, or order applicable to Borrower.

    Financial  Information.  Each  financial  statement of Borrower  supplied to
    Lender truly and completely  disclosed  Borrower's financial condition as of
    the date of the statement,  and there has been no material adverse change in
    Borrower's  financial  condition  subsequent  to the date of the most recent
    financial statement supplied to Lender.  Borrower has no material contingent
    obligations except as disclosed in such financial statements.

    Legal Effect.  This Agreement  constitutes,  and any instrument or agreement
    required  hereunder to be given by Borrower when delivered will  constitute,
    legal,  valid  and  binding  obligations  of  Borrower  enforceable  against
    Borrower in accordance with their respective terms.

    Collateral.  Except  as  contemplated  by this  Agreement  or as  previously
    disclosed in Borrower's  financial statements or in writing to Lender and as
    accepted  by  Lender,  and  except  for  property  tax  liens  for taxes not
    presently  due and  payable,  Borrower  owns  and has  good  title to all of
    Lender's  collateral  free  and  clear  of all  Security  Interests,  except
    permitted  liens,  and has not executed any security  documents or financing
    statements  relating to such  collateral.  All of Borrower's  properties are
    titled in  Borrower's  legal name,  and  Borrower  has not used,  or filed a
    financing  statement  under,  any other name for at least the last three (3)
    years.

    Hazardous  Substances.  The terms "hazardous waste," "hazardous  substance,"
    "disposal,"  "release," and "threatened release," as used in this Agreement,
    shall  have the same  meanings  as set forth in the  "CERCLA,"  "SARA,"  the
    Hazardous Materials Transportation Act, 49 U.S.C. Section 1801, et seq., the
    Resource  Conservation and Recovery Act, 42 U.S.C. Section 6901, et seq., or
    other  applicable  state or Federal  laws,  rules,  or  regulations  adopted
    pursuant  to  any  of the  foregoing.  Except  for  acid  conditioner  or as
    disclosed to and acknowledged by Lender in writing,  Borrower represents and
    warrants  that:  (a)  During  the  period  of  Borrower's  ownership  of the
    properties,  there  has  been  no  use,  generation,  manufacture,  storage,
    treatment, disposal, release or threatened release of any hazardous waste or
    substance by any person on, under, about or from any of the properties.  (b)
    Borrower has no  knowledge  of, or reason to believe that there has been (i)
    any use, generation,  manufacture, storage, treatment, disposal, release, or
    threatened  release of any hazardous waste or substance on, under,  about or
    from  the  properties  by  any  prior  owners  or  occupants  of  any of the
    properties,  or (ii) any actual or  threatened  litigation  or claims of any
    kind by any person  relating to such matters.  (c) Neither  Borrower nor any
    tenant, contractor,  agent or other authorized user of any of the properties
    shall use, generate,  manufacture,  store, treat, dispose of, or release any
    hazardous waste or substance on, under, about or from any of the properties;
    and any such activity  shall be conducted in compliance  with all applicable
    federal,  state,  and local laws,  regulations,  and  ordinances,  including
    without limitation those laws,  regulations and ordinances

<PAGE>

    described above. Borrower authorizes Lender and its agents to enter upon the
    properties to make such inspections and tests as Lender may deem appropriate
    to  determine  compliance  of  the  properties  with  this  section  of  the
    Agreement.  Any  inspections  or tests made by Lender shall be at Borrower's
    expense and for Lender's  purposes only and shall not be construed to create
    any  responsibility or liability on the part of Lender to Borrower or to any
    other person. The representations and warranties  contained herein are based
    on Borrower's  due diligence in  investigating  the properties for hazardous
    waste and hazardous substances.  Borrower hereby (a) releases and waives any
    future  claims  against  Lender for indemnity or  contribution  in the event
    Borrower  becomes liable for cleanup or other costs under any such laws, and
    (b) agrees to indemnify and hold harmless Lender against any and all claims,
    losses,  liabilities,  damages,  penalties,  and  expenses  which Lender may
    directly or  indirectly  sustain or suffer  resulting  from a breach of this
    section  of  the  Agreement  or as a  consequence  of any  use,  generation,
    manufacture, storage, disposal, release or threatened release of a hazardous
    waste or substance on the properties.  The provisions of this section of the
    Agreement,  including the obligation to indemnify, shall survive the payment
    of the  Indebtedness and the termination or expiration of this Agreement and
    shall not be affected by Lender's  acquisition of any interest in any of the
    properties, whether by foreclosure or otherwise.

    Litigation and Claims. No litigation,  claim, investigation,  administrative
    proceeding or similar  action  (including  those for unpaid  taxes)  against
    Borrower is pending or threatened, and no other event has occurred which may
    materially  adversely affect Borrower's  financial  condition or properties,
    other than  litigation,  claims,  or other  events,  if any,  that have been
    disclosed to and acknowledged by Lender in writing.

    Taxes. To the best of Borrower's  knowledge,  all tax returns and reports of
    Borrower  that are or were  required to be filed,  have been filed,  and all
    taxes,  assessments and other  governmental  charges have been paid in full,
    except those presently being or to be contested by Borrower in good faith in
    the ordinary  course of business and for which  adequate  reserves have been
    provided.

    Lien Priority.  Except for permitted liens or otherwise previously disclosed
    to Lender in writing,  Borrower has not entered into or granted any Security
    Agreements,  or permitted the filing or attachment of any Security Interests
    on or  affecting  any of the  Collateral  directly  or  indirectly  securing
    repayment of  Borrower's  Loan and Note,  that would be prior or that may in
    any way be superior to Lender's Security Interests and rights in and to such
    Collateral.

    Binding Effect.  This Agreement,  the Note, all Security Agreements directly
    or indirectly  securing repayment of Borrower's Loan and Note and all of the
    Related  Documents  are binding  upon  Borrower  as well as upon  Borrower's
    successors,  representatives  and assigns,  and are legally  enforceable  in
    accordance with their respective terms.

    Commercial  Purposes.  Borrower  intends to use the Loan proceeds solely for
    business or commercial related purposes.

    Employee Benefit Plans.  Each employee benefit plan as to which Borrower may
    have any liability  complies in all material  respects  with all  applicable
    requirements  of law  and  regulations,  and  (i) no  Reportable  Event  nor
    Prohibited  Transaction  (as defined in ERISA) has occurred  with respect to
    any such  plan,  (ii)  Borrower  has not  withdrawn  from  any such  plan or
    initiated  steps to do so, (iii) no steps have been taken to  terminate  any
    such  plan,  and (iv)  there are no  unfunded  liabilities  other than those
    previously disclosed to Lender in writing.

    Location of Borrower's Offices and Records. Borrower's place of business, or
    Borrower's  Chief

<PAGE>

    executive  office,  if  Borrower  has more  than one place of  business,  is
    located at 3280 NORTH FRONTAGE  ROAD,  LEHI, UT 84043.  Unless  Borrower has
    designated  otherwise in writing this location is also the office or offices
    where Borrower keeps its records concerning the Collateral.

    Information.   All  information  heretofore  or  contemporaneously  herewith
    furnished  by Borrower to Lender for the purposes of or in  connection  with
    this  Agreement  or  any  transaction   contemplated   hereby  is,  and  all
    information  hereafter  furnished by or on behalf of Borrower to Lender will
    be, true and accurate in every material respect on the date as of which such
    information is dated or certified;  and none of such  information is or will
    be incomplete by omitting to state any material fact  necessary to make such
    information not misleading.

    Survival of Representations and Warranties.  Borrower understands and agrees
    that Lender,  without independent  investigation,  is relying upon the above
    representations  and  warranties  in  making  the above  referenced  Loan to
    Borrower.  Borrower  further agrees that the foregoing  representations  and
    warranties  shall be continuing in nature and shall remain in full force and
    effect until such time as Borrower's  Indebtedness shall be paid in full, or
    until this  Agreement  shall be  terminated  in the manner  provided  above,
    whichever is the last to occur.

AFFIRMATIVE  COVENANTS.  Borrower  covenants and agrees with Lender that,  while
this Agreement is in effect, Borrower will:

    Litigation.  Promptly  inform Lender in writing of (a) all material  adverse
    changes in  Borrower's  financial  condition,  and (b) all  existing and all
    threatened litigation, claims, investigations, administrative proceedings or
    similar actions  affecting  Borrower or any Guarantor which could materially
    affect the financial condition of Borrower or the financial condition of any
    Guarantor.

    Financial  Records.  Maintain  its  books and  records  in  accordance  with
    generally accepted accounting principles, applied on a consistent basis, and
    permit  Lender to  examine  and audit  Borrower's  books and  records at all
    reasonable times.

    Financial Statements.  Furnish Lender with, as soon as available,  but in no
    event  later  than  ninety  (90)  days  after the end of each  fiscal  year,
    Borrower's balance sheet and income statement for the year ended, audited by
    a certified public accountant  satisfactory to Lender. All financial reports
    required to be provided under this Agreement shall be prepared in accordance
    with  generally  accepted  accounting  principles,  applied on a  consistent
    basis, and certified by Borrower as being true and correct.

    Additional Information.  Furnish such additional information and statements,
    lists of  assets  and  liabilities,  agings  of  receivables  and  payables,
    inventory schedules, budgets, forecasts, tax returns, and other reports with
    respect to Borrower's  financial condition and business operations as Lender
    may request from time to time.

    Insurance.   Maintain  fire  and  other  risk  insurance,  public  liability
    insurance,  and such other  insurance  as Lender may require with respect to
    Borrower's properties and operations,  in form, amounts,  coverages and with
    insurance companies reasonably acceptable to Lender.  Borrower, upon request
    of  Lender,  will  deliver  to  Lender  from  time to time the  policies  or
    certificates  of  insurance  in  form  satisfactory  to  Lender,   including
    stipulations  that coverages will not be cancelled or diminished  without at
    least ten (10) days' prior written notice.

    Insurance  Reports.  Furnish to Lender,  upon request of Lender,  reports on
    each  existing  insurance  policy  showing  such  information  as Lender may
    reasonably request, including without limitation the

<PAGE>

    following:  (a) the name of the  insurer;  (b) the  risks  insured;  (c) the
    amount of the  policy;  (d) the  properties  insured;  (e) the then  current
    property values on the basis of which  insurance has been obtained,  and the
    manner of  determining  those  values;  and (f) the  expiration  date of the
    policy.

    Loan  Proceeds.  Use  all  Loan  proceeds  solely  for  Borrower's  business
    operations,  unless  specifically  consented  to the  contrary  by Lender in
    writing.

    Taxes, Charges and Liens. Pay and discharge when due all of its indebtedness
    and  obligations,  including  without  limitation  all  assessments,  taxes,
    governmental  charges,  levies and liens, of every kind and nature,  imposed
    upon Borrower or its properties,  income,  or profits,  prior to the date on
    which penalties would attach,  and all lawful claims that, if unpaid,  might
    become  a lien or  charge  upon any of  Borrower's  properties,  income,  or
    profits.  Provided  however,  Borrower  will  not be  required  to  pay  and
    discharge any such assessment,  tax, charge,  levy, lien or claim so long as
    (a) the legality of the same shall be contested in good faith by appropriate
    proceedings,  and (b) Borrower shall have  established on its books adequate
    reserves with respect to such contested assessment, tax, charge, levy, lien,
    or  claim  in  accordance  with  generally  accepted  accounting  practices.
    Borrower,  upon demand of Lender, will furnish to Lender evidence of payment
    of the  assessments,  taxes,  charges,  levies,  liens and  claims  and will
    authorize the appropriate  governmental official to deliver to Lender at any
    time a written statement of any assessments,  taxes, charges,  levies, liens
    and claims against Borrower's properties, income, or profits.

    Performance.  Perform and comply with all terms, conditions,  and provisions
    set forth in this Agreement and in the Related Documents in a timely manner,
    and promptly notify Lender if Borrower learns of the occurrence of any event
    which  constitutes  an Event of Default under this Agreement or under any of
    the Related Documents.

    Operations.  Maintain executive and management  personnel with substantially
    the  same  qualifications  and  experience  as  the  present  executive  and
    management  personnel;  provide  written  notice to Lender of any  change in
    executive  and  management  personnel;  conduct  its  business  affairs in a
    reasonable and prudent manner and in compliance with all applicable federal,
    state and municipal laws,  ordinances,  rules and regulations respecting its
    properties,   charters,   businesses  and  operations,   including   without
    limitation, compliance with the Americans With Disabilities Act and with all
    minimum  funding  standards and other  requirements  of ERISA and other laws
    applicable to Borrower's employee benefit plans.

    Inspection.  Permit  employees or agents of Lender at any reasonable time to
    inspect any and all Collateral  for the Loan or Loans and  Borrower's  other
    properties and to examine or audit Borrower's books,  accounts,  and records
    and to make copies and memoranda of Borrower's books, accounts, and records.
    If Borrower now or at any time  hereafter  maintains any records  (including
    without limitation computer generated records and computer software programs
    for the  generation  of such  records) in the  possession  of a third party,
    Borrower,  upon request of Lender,  shall notify such party to permit Lender
    free access to such records at all  reasonable  times and to provide  Lender
    with copies of any records it may request, all at Borrower's expense.

    Compliance  Certificate.  Unless waived in writing by Lender, provide Lender
    QUARTERLY,  WITHIN  45  DAYS  OF EACH  QUARTER  END and at the  time of each
    disbursement  of Loan  proceeds  with a  certificate  executed by Borrower's
    chief financial  officer,  or other officer or person  acceptable to Lender,
    certifying  that  the  representations  and  warranties  set  forth  in this
    Agreement are true and correct as of the date of the certificate and further
    certifying  that,  as of the date of the  certificate,  no Event of  Default
    exists under this Agreement.

<PAGE>

    Environmental Compliance and Reports.  Borrower shall comply in all respects
    with all environmental  protection federal,  state and local laws, statutes,
    regulations and ordinances;  not cause or permit to exist, as a result of an
    intentional or  unintentional  action or omission on its part or on the part
    of any third  party,  on property  owned and/or  occupied by  Borrower,  any
    environmental  activity where damage may result to the  environment,  unless
    such  environmental  activity  is  pursuant  to and in  compliance  with the
    conditions of a permit  issued by the  appropriate  federal,  state or local
    governmental authorities;  shall furnish to Lender promptly and in any event
    within thirty (30) days after receipt thereof a copy of any notice, summons,
    lien,   citation,   directive,   letter  or  other  communication  from  any
    governmental  agency  or  instrumentality   concerning  any  intentional  or
    unintentional  action or omission on Borrower's  part in connection with any
    environmental  activity  whether  or not there is damage to the  environment
    and/or other natural resources.

    Additional  Assurances.  Make, execute and deliver to Lender such promissory
    notes, mortgages, deeds of trust, security agreements, financing statements,
    instruments,  documents and other  agreements as Lender or its attorneys may
    reasonably  request to evidence and secure with the Lender's  collateral the
    Loans and to perfect all Security Interests in the Lender's collateral.

RECOVERY OF  ADDITIONAL  COSTS.  If the  imposition of or any change in any law,
rule,  regulation or guideline,  or the  interpretation  or  application  of any
thereof by any court or administrative or governmental  authority (including any
request or policy not  having  the force of law)  shall  impose,  modify or make
applicable  any taxes (except U.S.  federal,  state or local income or franchise
taxes imposed on Lender), reserve requirements, capital adequacy requirements or
other  obligations  which would (a) increase the cost to Lender for extending or
maintaining the credit  facilities to which this Agreement  relates,  (b) reduce
the amounts payable to Lender under this Agreement or the Related Documents,  or
(c) reduce the rate of return on Lender's  capital as a consequence  of Lender's
obligations  with  respect to the  credit  facilities  to which  this  Agreement
relates,  then  Borrower  agrees to pay Lender such  additional  amounts as will
compensate  Lender therefor,  within ten (10) days after Lender's written demand
for such payment,  which demand shall be  accompanied  by an explanation of such
imposition or charge and a calculation  in reasonable  detail of the  additional
amounts  payable  by  Borrower,  which  explanation  and  calculations  shall be
conclusive in the absence of manifest error.

NEGATIVE  COVENANTS.  Borrower  covenants and agrees with Lender that while this
Agreement is in effect, Borrower shall not, without the prior written consent of
Lender:

    Indebtedness  and Liens.  (a) Except for trade debt  incurred  in the normal
    course  of  business  and  indebtedness  to  Lender   contemplated  by  this
    Agreement, create, incur or assume indebtedness for borrowed money in excess
    of  $250,000.00,  including  capital  leases,  (b)  except as  allowed  as a
    Permitted Lien, sell, transfer,  mortgage,  assign,  pledge,  lease, grant a
    security  interest in, or encumber any of Lender's  collateral,  or (c) sell
    with recourse any of Borrower's accounts, except to Lender.

    Continuity   of   Operations.   (a)  Engage  in  any   business   activities
    substantially  different than those in which  Borrower is presently  engaged
    without  Lender's  approval,  which will not be unreasonably  withheld,  (b)
    cease operations,  liquidate,  merge, transfer,  acquire or consolidate with
    any other entity, change ownership, change its name, dissolve or transfer or
    sell  Collateral  out of the  ordinary  course  of  business  or (c) pay any
    dividends on Borrower's  stock (other than dividends  payable in its stock),
    provided, however that notwithstanding the foregoing, but only so long as no
    Event of Default has  occurred  and is  continuing  or would result from the
    payment of  dividends,  if  Borrower is a  "Subchapter  S  Corporation"  (as
    defined in the Internal Revenue Code of 1986, as amended),  Borrower may pay
    cash dividends on its stock to its shareholders from time to time in amounts
    necessary to enable the  shareholders to pay income taxes and make estimated
    income tax

<PAGE>

    payments  to satisfy  their  liabilities  under  federal and state law which
    arise solely from their status as Shareholders of a Subchapter S Corporation
    because of their  ownership of shares of stock of Borrower,  or (d) purchase
    or retire any of Borrower's  outstanding  shares in excess of $200,000.00 or
    alter or amend Borrower's capital structure.

    Loans, Acquisitions and Guaranties.  (a) Loan, invest in or advance money or
    assets in the aggregate of more than  $250,000.00,  (b) purchase,  create or
    acquire any  interest in any other  enterprise  or entity,  or (c) incur any
    obligation  as surety or  guarantor  other  than in the  ordinary  course of
    business.

CESSATION OF  ADVANCES.  If Lender has made any  commitment  to make any Loan to
Borrower,  whether  under this  Agreement or under any other  agreement,  Lender
shall have no  obligation to make Loan Advances or to disburse Loan proceeds if:
(a) Borrower or any Guarantor is in default under the terms of this Agreement or
any of the  Related  Documents  or any  other  agreement  that  Borrower  or any
Guarantor  has with Lender;  (b) Borrower or any  Guarantor  becomes  insolvent,
files a  petition  in  bankruptcy  or  similar  proceedings,  or is  adjudged  a
bankrupt;  (c) there occurs a material  adverse  change in Borrower's  financial
condition,  in the financial condition of any Guarantor,  or in the value of any
Collateral  securing  any Loan;  (d) any  Guarantor  seeks,  claims or otherwise
attempts to limit, modify or revoke such Guarantor's guaranty of the Loan or any
other loan with Lender; or (e) Lender in good faith deems itself insecure,  even
though no Event of Default shall have occurred.

WAIVER OF CLAIMS.  BORROWER  (I)  REPRESENTS  THAT THEY HAVE NO  DEFENSES  TO OR
SETOFFS  AGAINST ANY  INDEBTEDNESS OR OTHER  OBLIGATIONS  OWING TO LENDER OR ITS
AFFILIATES (THE  "OBLIGATIONS")  NOR CLAIMS AGAINST LENDER OR ITS AFFILIATES FOR
ANY  MATTER  WHATSOEVER,  RELATED  OR  UNRELATED  TO THE  OBLIGATIONS,  AND (II)
RELEASES LENDER AND ITS AFFILIATES FROM ALL CLAIMS, CAUSES OF ACTION, AND COSTS,
IN LAW OR EQUITY, EXISITING AS OF THE DATE OF THIS AGREEMENT, WHICH BORROWER HAS
OR MAY  HAVE BY  REASON  OF ANY  MATTER  OF ANY  CONCEIVABLE  KIND OR  CHARACTER
WHATSOEVER,  RELATED OR  UNRELATED  TO THE  OBLIGATIONS,  INCLUDING  THE SUBJECT
MATTER  OF THIS  AGREEMENT.  THIS  PROVISION  SHALL  NOT  APPLY  TO  CLAIMS  FOR
PERFORMANCE OF EXPRESS  CONTRACTUAL  OBLIGATIONS  OWING TO BORROWER BY LENDER OR
ITS AFFILIATES.

QUARTERLY  10-Q.  BORROWER SHALL PROVIDE  LENDER WITH COPIES OF THEIR  QUARTERLY
10-Q REPORTS WITHIN 45 DAYS OF EACH QUARTER END.

SYNTHETIC FUEL  PRODUCTION  REPORTS.  BORROWER SHALL PROVIDE LENDER WITH MONTHLY
SYNTHETIC FUEL PRODUCTION REPORTS WITHIN 15 DAYS OF EACH MONTH END.

EARNINGS.  BORROWER SHALL MAINTAIN AN OPERATING  EARNINGS  BEFORE INTEREST TAXES
DEPRECIATION  AND  AMORTIZATION  OF NOT LESS  THAN  $2,000,000.00  PER  QUARTER,
BEGINNING WITH THE REPORTED JUNE 30, 2000 10-Q FINANCIAL STATEMENT.

ROYALTY REVENUES. BORROWER SHALL MAINTAIN ROYALTY REVENUES FROM LICENSEES OF NOT
LESS THAN $850,000.00 PER MONTH.

RIGHT OF SETOFF.  Borrower grants to Lender a contractual  security interest in,
and hereby  assigns,  conveys,  delivers,  pledges,  and transfers to Lender all
Borrower's right, title and interest in and to, Borrower's  accounts with Lender
(whether checking, savings, or some other account), including without limitation
all accounts  held jointly with someone else and all accounts  Borrower may open
in the  future,

<PAGE>

excluding  however all IRA and Keogh accounts,  and all trust accounts for which
the grant of a security interest would be prohibited by law. Borrower authorizes
Lender,  to the extent permitted by applicable law, to charge or setoff all sums
owing on the Indebtedness against any and all such accounts.
EVENTS OF DEFAULT.  Each of the following  shall  constitute an Event of Default
under this Agreement:

    Default on Indebtedness. Failure of Borrower to make any payment when due on
    the Loans.

    Other  Defaults.  Failure of  Borrower  or any  Grantor to comply with or to
    perform when due any other term, obligation, covenant or condition contained
    in this Agreement or in any of the Related Documents, or failure of Borrower
    to  comply  with or to  perform  any other  term,  obligation,  covenant  or
    condition contained in any other agreement between Lender and Borrower.

    Default in Favor of Third Parties.  Should  Borrower or any Grantor  default
    under any loan, extension of credit,  security agreement,  purchase or sales
    agreement,  or any other agreement, in favor of any other creditor or person
    that may materially  affect any of Borrower's  property or Borrower's or any
    Grantor's ability to repay the Loans or perform their respective obligations
    under this Agreement or any of the Related Documents.

    False  Statements.  Any  warranty,   representation  or  statement  made  or
    furnished  to Lender by or on behalf of Borrower  or any Grantor  under this
    Agreement or the Related  Documents is false or  misleading  in any material
    respect at the time made or furnished, or becomes false or misleading at any
    time thereafter.

    Defective Collateralization.  This Agreement or any of the Related Documents
    ceases to be in full force and  effect  (including  failure of any  Security
    Agreement to create a valid and perfected Security Interest) at any time and
    for any reason.

    Insolvency.  The  dissolution or  termination  of Borrower's  existence as a
    going  business,  the insolvency of Borrower,  the appointment of a receiver
    for any part of  Borrower's  property,  any  assignment  for the  benefit of
    creditors,  any  type  of  creditor  workout,  or  the  commencement  of any
    proceeding under any bankruptcy or insolvency laws by or against Borrower.

    Creditor  or  Forfeiture   Proceedings.   Commencement   of  foreclosure  or
    forfeiture   proceedings,   whether  by  judicial   proceeding,   self-help,
    repossession or any other method, by any creditor of Borrower,  any creditor
    of any Grantor against any collateral  securing the Indebtedness,  or by any
    governmental agency. This includes a garnishment,  attachment, or levy on or
    of any of Borrower's  deposit accounts with Lender.  However,  this Event of
    Default  shall not apply if there is a good  faith  dispute by  Borrower  or
    Grantor,  as the case may be, as to the  validity or  reasonableness  of the
    claim which is the basis of the creditor or  forfeiture  proceeding,  and if
    Borrower  or  Grantor  gives  Lender  written  notice  of  the  creditor  or
    forfeiture  proceeding  and  furnishes  reserves  or a  surety  bond for the
    creditor or forfeiture proceeding satisfactory to Lender.

    Change In Ownership.  Any person or entity acquires ownership of twenty-five
    percent (25%) or more of the common stock of Borrower.

    Adverse  Change.  A material  adverse change occurs in Borrower's  financial
    condition,  or Lender believes the prospect of payment or performance of the
    Indebtedness is impaired.

    Insecurity. Lender, in good faith, deems itself insecure.

<PAGE>

    Right to Cure.  If any  default,  other than a Default on  Indebtedness,  is
    curable and if Borrower or Grantor, as the case may be, has not been given a
    notice of a similar default within the preceding twelve (12) months,  it may
    be cured  (and no Event of  Default  will  have  occurred)  if  Borrower  or
    Grantor,  as the case may be,  after  receiving  written  notice from Lender
    demanding  cure of such  default:  (a) cures the default  within thirty (30)
    days; or (b) if the cure  requires  more than thirty (30) days,  immediately
    initiates  steps  which  Lender  deems in  Lender's  sole  discretion  to be
    sufficient  to cure the default and  thereafter  continues and completes all
    reasonable and necessary steps  sufficient to produce  compliance as soon as
    reasonably practical.

EFFECT OF AN EVENT OF DEFAULT. If any Event of Default shall occur, except where
otherwise provided in this Agreement or the Related  Documents,  all commitments
and  obligations of Lender under this Agreement or the Related  Documents or any
other  agreement  immediately  will  terminate  and,  at  Lender's  option,  all
Indebtedness  immediately will become due and payable, all without notice of any
kind to  Borrower,  except  that in the case of an Event of  Default of the type
described in the  "Insolvency"  subsection  above,  such  acceleration  shall be
automatic  and not optional.  In addition,  Lender shall have all the rights and
remedies  provided in the Related  Documents or available at law, in equity,  or
otherwise. Except as may be prohibited by applicable law, all of Lender's rights
and  remedies   shall  be  cumulative   and  may  be  exercised   singularly  or
concurrently.  Election by Lender to pursue any remedy shall not exclude pursuit
of any other remedy,  and an election to make  expenditures or to take action to
perform an obligation  of Borrower or of any Grantor  shall not affect  Lender's
right to declare a default and to exercise its rights and remedies.

MISCELLANEOUS  PROVISIONS.  The following miscellaneous provisions are a part of
this Agreement:

    Amendments. This Agreement, together with any Related Documents, constitutes
    the entire  understanding and agreement of the parties as to the matters set
    forth in this  Agreement.  No alteration  of or amendment to this  Agreement
    shall be  effective  unless  given in  writing  and  signed  by the party or
    parties sought to be charged or bound by the alteration or amendment.

    Applicable  Law. This Agreement has been delivered to Lender and accepted by
    Lender in the State of Utah.  If there is a lawsuit,  Borrower  agrees  upon
    Lender's  request to submit to the  jurisdiction  of the courts of SALT LAKE
    County,  the State of Utah.  Subject to the provisions on arbitration,  this
    Agreement  shall be governed by and construed in accordance with the laws of
    the State of Utah.

    ARBITRATION DISCLOSURES:

    1.

         ARBITRATION  IS FINAL AND  BINDING ON THE  PARTIES  AND SUBJECT TO ONLY
     VERY LIMITED REVIEW BY A COURT.

    2.

         IN  ARBITRATION  THE  PARTIES  ARE  WAIVING  THEIR RIGHT TO LITIGATE IN
     COURT, INCLUDING THEIR RIGHT TO A JURY TRIAL.

    3.

         DISCOVERY IN ARBITRATION IS MORE LIMITED THAN DISCOVERY IN COURT.

    4.

<PAGE>

         ARBITRATORS  ARE NOT  REQUIRED  TO INCLUDE  FACTUAL  FINDINGS  OR LEGAL
     REASONING IN THEIR AWARDS.  THE RIGHT TO APPEAL OR TO SEEK  MODIFICATION OF
     ARBITRATORS' RULINGS IS VERY LIMITED.

    5.

         A PANEL  OF  ARBITRATORS  MIGHT  INCLUDE  AN  ARBITRATOR  WHO IS OR WAS
     AFFILIATED WITH THE BANKING INDUSTRY.

    6.

         IF YOU HAVE QUESTIONS ABOUT  ARBITRATION,  CONSULT YOUR ATTORNEY OR THE
     AMERICAN ARBITRATION ASSOCIATION.

    (a) Any claim or  controversy  ("Dispute")  between or among the parties and
    their  assigns,  including  but not  limited to  Disputes  arising out of or
    relating  to  this  agreement,   this  arbitration  provision  ("arbitration
    clause"),  or any  related  agreements  or  instruments  relating  hereto or
    delivered in connection  herewith ("Related  Documents"),  and including but
    not limited to a Dispute based on or arising from an alleged tort,  shall at
    the request of any party be resolved by binding  arbitration  in  accordance
    with  the  applicable   arbitration   rules  of  the  American   Arbitration
    Association (the "Administrator"). The provisions of this arbitration clause
    shall survive any termination, amendment, or expiration of this agreement or
    Related Documents. The provisions of this arbitration clause shall supersede
    any  prior  arbitration  agreement  between  or among  the  parties.  If any
    provision  of  this   arbitration   clause   should  be   determined  to  be
    unenforceable,  all other provisions of this arbitration clause shall remain
    in full force and effect.
    (b) The arbitration  proceedings shall be conducted in Salt Lake City, Utah,
    at a place to be determined by the Administrator.  The Administrator and the
    arbitrator(s) shall have the authority to the extent practicable to take any
    action  to  require  the  arbitration  proceeding  to be  completed  and the
    arbitrator(s)'  award  issued  within one  hundred  fifty  (150) days of the
    filing of the Dispute with the Administrator.  The arbitrator(s)  shall have
    the  authority  to impose  sanctions  on any party that fails to comply with
    time periods imposed by the  Administrator or the  arbitrator(s),  including
    the sanction of summarily  dismissing any Dispute or defense with prejudice.
    The arbitrator(s)  shall have the authority to resolve any Dispute regarding
    the terms of this agreement,  this arbitration  clause or Related Documents,
    including  any  claim or  controversy  regarding  the  arbitrability  of any
    Dispute.  All  limitations  periods  applicable  to any  Dispute or defense,
    whether by statute or agreement,  shall apply to any arbitration  proceeding
    hereunder and the  arbitrator(s)  shall have the authority to decide whether
    any  Dispute or defense is barred by a  limitations  period  and,  if so, to
    summarily  enter an award  dismissing  any Dispute or defense on that basis.
    The  doctrines of compulsory  counterclaim,  res  judicata,  and  collateral
    estoppel shall apply to any arbitration proceeding hereunder so that a party
    must state as a  counterclaim  in the  arbitration  proceeding  any claim or
    controversy  which arises out of the  transaction or occurrence  that is the
    subject matter of the Dispute.  The arbitrator(s) may in the  arbitrator(s)'
    discretion  and at the  request of any party:  (1)  consolidate  in a single
    arbitration  proceeding  any other claim or  controversy  involving  another
    party that is substantially related to the Dispute where that other party is
    bound  by  an  arbitration  clause  with  the  Lender,  such  as  borrowers,
    guarantors,  sureties, and owners of collateral; (2) consolidate in a single
    arbitration  proceeding any other claim or controversy that is substantially
    similar to the Dispute;  and (3) administer  multiple  arbitration claims or
    controversies  as class actions in accordance with the provisions of Rule 23
    of the Federal Rules of Civil Procedure.
    (c) The arbitrator(s)  shall be selected in accordance with the rules of the
    Administrator  from  panels  maintained  by  the  Administrator.   A  single
    arbitrator shall have expertise in the subject matter of the Dispute.  Where
    three arbitrators  conduct an arbitration  proceeding,  the Dispute shall be
    decided by a majority  vote of the three  arbitrators,  at least one of whom
    must have

<PAGE>

    expertise in the subject matter of the Dispute and at least one of whom must
    be a practicing  attorney.  The arbitrator(s)  shall award to the prevailing
    party recovery of all costs and fees  (including  attorneys' fees and costs,
    arbitration  administration  fees and costs, and  arbitrator(s)'  fees). The
    arbitrator(s),  either during the pendency of the arbitration  proceeding or
    as part of the arbitration  award,  also may grant  provisional or ancillary
    remedies,  including  but not  limited  to an  award of  injunctive  relief,
    foreclosure,  sequestration,   attachment,  replevin,  garnishment,  or  the
    appointment of a receiver.
    (d) Judgment  upon an  arbitration  award may be entered in any court having
    jurisdiction,  subject to the following limitation: the arbitration award is
    binding  upon the parties  only if the amount  does not exceed Four  Million
    Dollars  ($4,000,000.00);  if the award exceeds that limit, either party may
    demand  the right to a court  trial.  Such a demand  must be filed  with the
    Administrator  within thirty (30) days following the date of the arbitration
    award;  if such a demand is not made within that time period,  the amount of
    the arbitration award shall be binding.  The computation of the total amount
    of an arbitration  award shall include  amounts  awarded for attorneys' fees
    and costs,  arbitration  administration  fees and costs, and  arbitrator(s)'
    fees.
    (e) No provision of this arbitration  clause, nor the exercise of any rights
    hereunder,  shall  limit  the  right of any  party  to:  (1)  judicially  or
    non-judicially foreclose against any real or personal property collateral or
    other security;  (2) exercise self-help remedies,  including but not limited
    to  repossession  and  setoff  rights;  or (3)  obtain  from a court  having
    jurisdiction thereover any provisional or ancillary remedies,  including but
    not limited to injunctive relief,  foreclosure,  sequestration,  attachment,
    replevin,  garnishment, or the appointment of a receiver. Such rights can be
    exercised  at any  time,  before  or  during  initiation  of an  arbitration
    proceeding,  except to the extent such action is contrary to the arbitration
    award.  The  exercise of such rights  shall not  constitute  a waiver of the
    right to submit any  Dispute to  arbitration,  and any claim or  controversy
    related to the  exercise  of such  rights  shall be a Dispute to be resolved
    under the  provisions  of this  arbitration  clause.  Any party may initiate
    arbitration  with  the  Administrator;   however,  if  any  party  initiates
    litigation and another party disputes any allegation in that litigation, the
    disputing  party--upon  the  request of the  initiating  party--must  file a
    demand for arbitration with the  Administrator  and pay the  Administrator's
    filing fee. The parties may serve by mail a notice of an initial  motion for
    an order of arbitration.
    (f)  Notwithstanding  the  applicability of any other law to this agreement,
    the arbitration  clause,  or Related Documents between or among the parties,
    the Federal Arbitration Act, 9 U.S.C.  Section 1 et seq., shall apply to the
    construction and interpretation of this arbitration clause.

Caption  Headings.  Caption  headings  in this  Agreement  are  for  convenience
purposes  only and are not to be used to interpret or define the  provisions  of
this Agreement.

Consent to Loan Participation.  Borrower agrees and consents to Lender's sale or
transfer,  whether now or later, of one or more  participation  interests in the
Loans  to one or more  purchasers,  whether  related  or  unrelated  to  Lender,
provided that Lender must obtain Borrower's prior written approver so long as no
default is  outstanding,  which  approval  shall not be  unreasonably  withheld.
Lender  may  provide,  without  any  limitation  whatsoever,  to any one or more
purchasers,  or potential  purchasers,  any information or knowledge  Lender may
have about Borrower or about any other matter relating to the Loan, and Borrower
hereby  waives any rights to privacy it may have with  respect to such  matters.
Borrower  additionally  waives  any and  all  notices  of sale of  participation
interests,  as well  as all  notices  of any  repurchase  of such  participation
interests.  Borrower also agrees that the  purchasers of any such  participation
interests  will be  considered as the absolute  owners of such  interests in the
Loans and will have all the rights granted under the participation  agreement or
agreements governing the sale of such participation interests.  Borrower further
waives  all  rights  of  offset  or  counterclaim  that it may have now or later
against  Lender or against any  purchaser of such a  participation  interest and
unconditionally  agrees  that  either  Lender  or  such

<PAGE>

purchaser may enforce Borrower's  obligation under the Loans irrespective of the
failure or  insolvency  of any  holder of any  interest  in the Loans.  Borrower
further  agrees  that the  purchaser  of any such  participation  interests  may
enforce its  interests  irrespective  of any  personal  claims or defenses  that
Borrower may have against Lender.

Costs and Expenses. Borrower agrees to pay upon demand all of Lender's expenses,
including without limitation  reasonable attorneys' fees, incurred in connection
with the  preparation,  execution,  enforcement,  modification and collection of
this Agreement or in connection  with the Loans made pursuant to this Agreement.
Lender  may pay  someone  else to help  collect  the Loans and to  enforce  this
Agreement,  and Borrower  will pay that amount.  This  includes,  subject to any
limits under applicable law,  Lender's  reasonable  attorneys' fees and Lender's
legal  expenses,  whether  or  not  there  is a  lawsuit,  including  reasonable
attorneys'  fees for  bankruptcy  proceedings  (including  efforts  to modify or
vacate  any  automatic  stay  or  injunction),   appeals,  and  any  anticipated
post-judgment  collection  services.  Borrower also will pay any court costs, in
addition to all other sums provided by law.

Notices. All notices required to be given under this Agreement shall be given in
writing,  may be sent by telefacsimile  (unless otherwise  required by law), and
shall be effective  when actually  delivered or when deposited with a nationally
recognized  overnight  courier or  deposited in the United  States  mail,  first
class, postage prepaid, addressed to the party to whom the notice is to be given
at the address  shown above.  Any party may change its address for notices under
this Agreement by giving formal written notice to the other parties,  specifying
that the purpose of the notice is to change the party's  address.  To the extent
permitted by applicable  law, if there is more than one Borrower,  notice to any
Borrower will constitute notice to all Borrowers. For notice purposes,  Borrower
will keep Lender informed at all times of Borrower's current address(es).

Severability.  If a court of competent  jurisdiction finds any provision of this
Agreement to be invalid or unenforceable as to any person or circumstance,  such
finding shall not render that provision invalid or unenforceable as to any other
persons or  circumstances.  If feasible,  any such offending  provision shall be
deemed to be modified  to be within the limits of  enforceability  or  validity;
however, if the offending provision cannot be so modified,  it shall be stricken
and all other  provisions of this  Agreement in all other  respects shall remain
valid and enforceable.

Subsidiaries  and  Affiliates  of  Borrower.  To the extent  the  context of any
covenant of this Agreement  makes it  appropriate,  the word  "Borrower" as used
herein   shall   include  all   subsidiaries   and   affiliates   of   Borrower.
Notwithstanding  the  foregoing  however,  under  no  circumstances  shall  this
Agreement  be construed  to require  Lender to make any Loan or other  financial
accommodation to any subsidiary or affiliate of Borrower.

Successors and Assigns.  All covenants and agreements  contained by or on behalf
of Borrower shall bind its successors and assigns and shall inure to the benefit
of Lender,  its successors and assigns.  Borrower shall not,  however,  have the
right to assign its rights under this Agreement or any interest therein, without
the prior written consent of Lender.

Survival.  All  warranties,  representations,  and covenants made by Borrower in
this Agreement or in any certificate or other  instrument  delivered by Borrower
to Lender under this  Agreement  shall be considered to have been relied upon by
Lender and will  survive  the making of the Loan and  delivery  to Lender of the
Related Documents, regardless of any investigation made by Lender or on Lender's
behalf.

Time  Is of the  Essence.  Time is of the  essence  in the  performance  of this
Agreement.

<PAGE>

Waiver.  Lender  shall  not be deemed  to have  waived  any  rights  under  this
Agreement unless such waiver is given in writing and signed by Lender.  No delay
or omission  on the part of Lender in  exercising  any right shall  operate as a
waiver of such right or any other  right.  A waiver by Lender of a provision  of
this  Agreement  shall not  prejudice or  constitute a waiver of Lender's  right
otherwise to demand strict compliance with that provision or any other provision
of this Agreement.  No prior waiver by Lender, nor any course of dealing between
Lender and  Borrower,  or between  Lender and any  Grantor,  shall  constitute a
waiver of any of  Lender's  rights or of any  obligations  of Borrower or of any
Grantor  as to any  future  transactions.  Whenever  the  consent  of  Lender is
required  under this  Agreement,  the  granting of such consent by Lender in any
instance shall not constitute  continuing consent in subsequent  instances where
such  consent  is  required,  and in all cases  such  consent  may be granted or
withheld in the sole discretion of Lender.

FINAL AGREEMENT.  Borrower  understands that this Agreement and the related loan
documents are the final expression of the agreement  between Lender and Borrower
and may not be contradicted by evidence of any alleged oral agreement.

BORROWER  ACKNOWLEDGES  HAVING READ ALL THE  PROVISIONS  OF THIS  BUSINESS  LOAN
AGREEMENT,  AND BORROWER AGREES TO ITS TERMS.  THIS AGREEMENT IS DATED AS OF MAY
31, 2000.

BORROWER:

COVOL TECHNOLOGIES, INC.

By: /s/ Kirk A. Benson
   -----------------------------
KIRK A. BENSON, CHAIRMAN & CEO

LENDER:

ZIONS FIRST NATIONAL BANK

By: /s/ Tracy A. Groll
   ------------------------
   Authorized Officer

================================================================================<PAGE>

                                                                  EXHIBIT 4.10.1

                          REGISTRATION RIGHTS AGREEMENT
                          -----------------------------

     This Registration Rights Agreement (this "Agreement") is made and entered
into as of January 19, 2000, among Global Maintech Corporation, a Minnesota
corporation (the "Company"), and each of the Investors listed on Schedule 1
attached hereto. Each of the Investors listed on Schedule 1 attached hereto is
referred to herein as an "Investor" and are collectively referred to herein as
the "Investors."

     This Agreement is being entered into pursuant to the Series D Convertible
Preferred Stock Purchase Agreement, dated as of the date hereof, by and among
the Company and the Investors (the "Purchase Agreement").

     The Company and the Investors hereby agree as follows:

     1. Definitions.

     Capitalized terms used and not otherwise defined herein shall have the
meanings given such terms in the Purchase Agreement. As used in this Agreement,
the following terms shall have the following meanings:

          "Advice" shall have the meaning set forth in Section 3(m).

          "Affiliate" means, with respect to any Person, any other Person that
     directly or indirectly controls or is controlled by or under common control
     with such Person. For the purposes of this definition, "control," when used
     with respect to any Person, means the possession, direct or indirect, of
     the power to direct or cause the direction of the management and policies
     of such Person, whether through the ownership of voting securities, by
     contract or otherwise; and the terms of "affiliated," "controlling" and
     "controlled" have meanings correlative to the foregoing.

          "Blackout Period" shall have the meaning set forth in Section 3(n).

          "Board" shall have the meaning set forth in Section 3(n).

          "Business Day" means any day except Saturday, Sunday and any day which
     shall be a legal holiday or a day on which banking institutions in the
     state of New York generally are authorized or required by law or other
     government actions to close.

          "Commission" means the Securities and Exchange Commission.

          "Common Stock" means the Company's Common Stock, no par value.
<PAGE>

          "Effectiveness Date" means with respect to the Registration Statement
     the 90th day following the Closing Date.

          "Effectiveness Period" shall have the meaning set forth in Section 2.

          "Event" shall have the meaning set forth in Section 7(e).

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

          "Filing Date" means the 30th day following the Closing Date.

          "Holder" or "Holders" means the holder or holders, as the case may be,
     from time to time of Registrable Securities.

          "Indemnified Party" shall have the meaning set forth in Section 5(c).

          "Indemnifying Party" shall have the meaning set forth in Section 5(c).

          "Losses" shall have the meaning set forth in Section 5(a).

          "Person" means an individual or a corporation, partnership, trust,
     incorporated or unincorporated association, joint venture, limited
     liability company, joint stock company, government (or an agency or
     political subdivision thereof) or other entity of any kind.

          "Preferred Stock" means the Series D Convertible Preferred Stock,
     stated value $1,000 per share, of the Company issued to the Investors
     pursuant to the Purchase Agreement.

          "Proceeding" means an action, claim, suit, investigation or proceeding
     (including, without limitation, an investigation or partial proceeding,
     such as a deposition), whether commenced or threatened.

          "Prospectus" means the prospectus included in the Registration
     Statement (including, without limitation, a prospectus that includes any
     information previously omitted from a prospectus filed as part of an
     effective registration statement in reliance upon Rule 430A promulgated
     under the Securities Act), as amended or supplemented by any prospectus
     supplement, with respect to the terms of the offering of any portion of the
     Registrable Securities covered by the Registration Statement, and all other
     amendments and supplements to the Prospectus, including post-effective
     amendments, and all material incorporated by reference in such Prospectus.

          "Registrable Securities" means (i) the New Common Shares, (ii) the
     shares of Common Stock issuable upon conversion of the Preferred Stock (the
     "Conversion Shares") and exercise of the Warrants (the "Warrant Shares"),
     and upon any stock split, stock dividend, recapitalization or similar event
     with respect to such Conversion Shares, Warrant Shares or Preferred Stock,
     (iii) the shares of Common Stock issuable upon conversion of the Preferred

                                       2
<PAGE>

     Stock and the number of shares of Common Stock issued to the placement
     agent in connection with the issuance of the Preferred Stock, the New
     Common Shares and the Warrants to the Investors, (iv) the shares of Common
     Stock issued upon any redemption of Preferred Stock pursuant to Section 8
     of the Certificate of Designation and (v) any other dividend or other
     distribution with respect to, conversion or exchange of, or in replacement
     of, Registrable Securities; provided, however, that Registrable Securities
     shall include (but not be limited to) a number of shares of Common Stock
     equal to no less than the sum of (a) 200% of the maximum number of shares
     of Common Stock which would be issuable upon conversion of the Preferred
     Stock issued to the Investors and the placement agent and (b)100% of (1)
     the maximum number of shares of Common Stock which would be issuable upon
     exercise of the Warrants, (2) the number of New Common Shares issued to the
     Investors and (3) the number of shares of Common Stock issued to the
     placement agent in connection with the issuance of the Preferred Stock, the
     New Common Shares and the Warrants to the Investors, assuming conversion of
     the Preferred Stock and exercise of the Warrants occurred on the Closing
     Date or the Filing Date, whichever date would result in the greater number
     of Registrable Securities. Notwithstanding anything herein contained to the
     contrary, such registered shares of Common Stock shall be allocated among
     the Holders pro rata based on the total number of Registrable Securities
     issued or issuable as of each date that a Registration Statement, as
     amended, relating to the resale of the Registrable Securities is declared
     effective by the Commission. Notwithstanding anything contained herein to
     the contrary, if the actual number of shares of Common Stock issuable upon
     conversion of the Preferred Stock and upon exercise of the Warrants exceeds
     200% of the number of shares of Common Stock issuable upon conversion of
     the Preferred Stock and 100% of the number of shares of Common Stock
     issuable upon exercise of the Warrants based upon a computation as of the
     Closing Date or the Filing Date, the term "Registrable Securities" shall be
     deemed to include such additional shares of Common Stock.

          "Registration Statement" means the registration statements and any
     additional registration statements contemplated by Section 2, including (in
     each case) the Prospectus, amendments and supplements to such registration
     statement or Prospectus, including pre- and post-effective amendments, all
     exhibits thereto, and all material incorporated by reference in such
     registration statement.

          "Rule 144" means Rule 144 promulgated by the Commission pursuant to
     the Securities Act, as such Rule may be amended from time to time, or any
     similar rule or regulation hereafter adopted by the Commission having
     substantially the same effect as such Rule.

          "Rule 158" means Rule 158 promulgated by the Commission pursuant to
     the Securities Act, as such Rule may be amended from time to time, or any
     similar rule or regulation hereafter adopted by the Commission having
     substantially the same effect as such Rule.

          "Rule 415" means Rule 415 promulgated by the Commission pursuant to
     the Securities Act, as such Rule may be amended from time to time, or any
     similar rule or regulation hereafter adopted by the Commission having
     substantially the same effect as such Rule.

          "Securities Act" means the Securities Act of 1933, as amended.

                                       3
<PAGE>

          "Special Counsel" means any special counsel to the Holders, for which
     the Holders will be reimbursed by the Company pursuant to Section 4.

     2. Shelf Registration.

     On or prior to the Filing Date the Company shall prepare and file with the
Commission a "shelf" Registration Statement covering all Registrable Securities
for an offering to be made on a continuous basis pursuant to Rule 415. The
Registration Statement shall be on Form SB-2 (except if the Company is not then
eligible to register for resale the Registrable Securities on Form SB-2, in
which case such registration shall be on another appropriate form in accordance
herewith). The Company shall (i) not permit any securities other than the
Registrable Securities and the securities listed on Schedule 2 attached hereto
to be included in the Registration Statement and (ii) cause the Registration
Statement to be declared effective under the Securities Act as promptly as
possible after the filing thereof, but in any event prior to the Effectiveness
Date, and to keep such Registration Statement continuously effective under the
Securities Act until such date as is the earlier of (x) the date when all
Registrable Securities covered by such Registration Statement have been sold or
(y) the date on which the Registrable Securities may be sold without any
restriction pursuant to Rule 144(k) as determined by the counsel to the Company
pursuant to a written opinion letter, addressed to the Company's transfer agent
to such effect (the "Effectiveness Period"). If an additional Registration
Statement is required to be filed because the actual number of shares of Common
Stock into which the Preferred Stock is convertible and the Warrants are
exercisable exceeds the number of shares of Common Stock initially registered in
respect of the Conversion Shares and the Warrant Shares based upon the
computation on the Closing Date or the Filing Date, the Company shall have
twenty (20) Business Days to file such additional Registration Statement after
receiving notice thereof from any of the Investors, and the Company shall cause
such additional Registration Statement to be declared effective by the
Commission as soon as possible, but in no event later than thirty (30) Business
Days after filing.

     3. Registration Procedures.

     In connection with the Company's registration obligations hereunder, the
Company shall:

          (a) Prepare and file with the Commission on or prior to the Filing
     Date, a Registration Statement on Form SB-2 (or if the Company is not then
     eligible to register for resale the Registrable Securities on Form SB-2
     such registration shall be on another appropriate form in accordance
     herewith) in accordance with the method or methods of distribution thereof
     as specified by the Holders (except if otherwise directed by the Holders),
     and cause the Registration Statement to become effective and remain
     effective as provided herein; provided, however, that not less than five
     (5) Business Days prior to the filing of the Registration Statement or any
     related Prospectus or any amendment or supplement thereto (including any
     document that would be incorporated therein by reference), the Company
     shall (i) furnish to the Special Counsel on behalf of the Holders, copies
     of all such documents proposed to be filed, which documents (other than
     those incorporated by reference) will be subject to the review of such
     Special Counsel, and (ii) at the request of any Holder cause its officers
     and directors, counsel and independent certified

                                       4
<PAGE>

     public accountants to respond to such inquiries as shall be necessary, in
     the reasonable opinion of counsel to the Company, to conduct a reasonable
     investigation within the meaning of the Securities Act. The Company shall
     not file the Registration Statement or any such Prospectus or any
     amendments or supplements thereto to which the Holders of a majority of the
     Registrable Securities or any Special Counsel shall reasonably object in
     writing within three (3) Business Days of their receipt thereof.

          (b) (i) Prepare and file with the Commission such amendments,
     including post-effective amendments, to the Registration Statement as may
     be necessary to keep the Registration Statement continuously effective as
     to the applicable Registrable Securities for the Effectiveness Period and
     prepare and file with the Commission such additional Registration
     Statements in order to register for resale under the Securities Act all of
     the Registrable Securities; (ii) cause the related Prospectus to be amended
     or supplemented by any required Prospectus supplement, and as so
     supplemented or amended to be filed pursuant to Rule 424 (or any similar
     provisions then in force) promulgated under the Securities Act; (iii)
     respond as promptly as possible to any comments received from the
     Commission with respect to the Registration Statement or any amendment
     thereto and as promptly as possible provide the Holders true and complete
     copies of all correspondence from and to the Commission relating to the
     Registration Statement; and (iv) comply in all material respects with the
     provisions of the Securities Act and the Exchange Act with respect to the
     disposition of all Registrable Securities covered by the Registration
     Statement during the applicable period in accordance with the intended
     methods of disposition by the Holders thereof set forth in the Registration
     Statement as so amended or in such Prospectus as so supplemented.

          (c) Notify the Special Counsel on behalf of the Holders of Registrable
     Securities to be sold as promptly as possible (and, in the case of (i)(A)
     below, not less than five (5) Business Days prior to such filing) and (if
     requested by any such Person) confirm such notice in writing no later than
     one (1) Business Day following the day (i)(A) when a Prospectus or any
     Prospectus supplement or post-effective amendment to the Registration
     Statement is proposed to be filed; (B) when the Commission notifies the
     Company whether there will be a "review" of such Registration Statement and
     whenever the Commission comments in writing on such Registration Statement
     and (C) with respect to the Registration Statement or any post-effective
     amendment, when the same has become effective; (ii) of any request by the
     Commission or any other Federal or state governmental authority for
     amendments or supplements to the Registration Statement or Prospectus or
     for additional information; (iii) of the issuance by the Commission of any
     stop order suspending the effectiveness of the Registration Statement
     covering any or all of the Registrable Securities or the initiation of any
     Proceedings for that purpose; (iv) if at any time any of the
     representations and warranties of the Company contained in any agreement
     contemplated hereby ceases to be true and correct in all material respects;
     (v) of the receipt by the Company of any notification with respect to the
     suspension of the qualification or exemption from qualification of any of
     the Registrable Securities for sale in any jurisdiction, or the initiation
     or threatening of any Proceeding for such purpose; and (vi) of the
     occurrence of any event that makes any statement made in the Registration
     Statement or Prospectus or any document incorporated or deemed to be
     incorporated therein by reference untrue in any material respect or that
     requires any revisions to the Registration Statement, Prospectus or other
     documents so that, in the case of the Registration Statement or the
     Prospectus, as the case may be, it will not contain

                                       5
<PAGE>

     any untrue statement of a material fact or omit to state any material fact
     required to be stated therein or necessary to make the statements therein,
     in the light of the circumstances under which they were made, not
     misleading.

          (d) The Company shall promptly furnish to Special Counsel, without
     charge, (i) any correspondence from the Commission or the Commission's
     staff to the Company or its representatives relating to any Registration
     Statement and (ii) promptly after the same is prepared and filed with the
     Commission, a copy of any written response to the correspondence received
     from the Commission.

          (e) Use its best efforts to avoid the issuance of, or, if issued,
     obtain the withdrawal of, (i) any order suspending the effectiveness of the
     Registration Statement or (ii) any suspension of the qualification (or
     exemption from qualification) of any of the Registrable Securities for sale
     in any jurisdiction, at the earliest practicable moment.

          (f) If requested by the Holders of a majority in interest of the
     Registrable Securities, (i) promptly incorporate in a Prospectus supplement
     or post-effective amendment to the Registration Statement such information
     as the Company reasonably agrees should be included therein and (ii) make
     all required filings of such Prospectus supplement or such post-effective
     amendment as soon as practicable after the Company has received
     notification of the matters to be incorporated in such Prospectus
     supplement or post-effective amendment.

          (g) Furnish the Special Counsel, without charge, at least one
     conformed copy of each Registration Statement and each amendment thereto,
     including financial statements and schedules, all documents incorporated or
     deemed to be incorporated therein by reference, and all exhibits to the
     extent requested by such Person (including those previously furnished or
     incorporated by reference) promptly after the filing of such documents with
     the Commission.

          (h) Promptly deliver to the Special Counsel, without charge, as many
     copies of the Prospectus or Prospectuses (including each form of
     prospectus) and each amendment or supplement thereto as such Persons may
     reasonably request; and the Company hereby consents to the use of such
     Prospectus and each amendment or supplement thereto by each of the selling
     Holders in connection with the offering and sale of the Registrable
     Securities covered by such Prospectus and any amendment or supplement
     thereto.

          (i) Prior to any public offering of Registrable Securities, register
     or qualify or cooperate with the selling Holders and any Special Counsel in
     connection with the registration or qualification (or exemption from such
     registration or qualification) of such Registrable Securities for offer and
     sale under the securities or Blue Sky laws of such jurisdictions within the
     United States as any Holder requests in writing, to keep each such
     registration or qualification (or exemption therefrom) effective during the
     Effectiveness Period and to do any and all other acts or things necessary
     or advisable to enable the disposition in such jurisdictions of the
     Registrable Securities covered by a Registration Statement; provided,
     however, that the Company shall not be required to qualify generally to do
     business in any jurisdiction where it is not then so qualified or to take
     any action that would subject it to general service of process in any such
     jurisdiction

                                       6
<PAGE>

     where it is not then so subject or subject the Company to any material tax
     in any such jurisdiction where it is not then so subject.

          (j) Cooperate with the Holders to facilitate the timely preparation
     and delivery of certificates representing Registrable Securities to be sold
     pursuant to a Registration Statement, which certificates shall be free to
     all restrictive legends and to enable such Registrable Securities to be in
     such denominations and registered in such names as any Holder may request
     at least two (2) Business Days prior to any sale of Registrable Securities.

          (k) Upon the occurrence of any event contemplated by Section 3(c)(vi),
     as promptly as possible, prepare a supplement or amendment, including a
     post-effective amendment, to the Registration Statement or a supplement to
     the related Prospectus or any document incorporated or deemed to be
     incorporated therein by reference, and file any other required document so
     that, as thereafter delivered, neither the Registration Statement nor such
     Prospectus will contain an untrue statement of a material fact or omit to
     state a material fact required to be stated therein or necessary to make
     the statements therein, in the light of the circumstances under which they
     were made, not misleading.

          (l) Request each selling Holder to furnish to the Company information
     regarding such Holder and the distribution of such Registrable Securities
     as is required by law to be disclosed in the Registration Statement, and
     the Company may exclude from such registration the Registrable Securities
     of any such Holder who fails to furnish such information within a
     reasonable time prior to the filing of each Registration Statement,
     supplemented Prospectus and/or amended Registration Statement.

          If the Registration Statement refers to any Holder by name or
     otherwise as the holder of any securities of the Company, then such Holder
     shall have the right to require (if such reference to such Holder by name
     or otherwise is not required by the Securities Act or any similar federal
     statute then in force) the deletion of the reference to such Holder in any
     amendment or supplement to the Registration Statement filed or prepared
     subsequent to the time that such reference ceases to be required.

          Each Holder covenants and agrees that (i) it will not sell any
     Registrable Securities under the Registration Statement until it has
     received copies of the Prospectus as then amended or supplemented as
     contemplated in Section 3(h) and notice from the Company that such
     Registration Statement and any post-effective amendments thereto have
     become effective as contemplated by Section 3(c) and (ii) it and its
     officers, directors or Affiliates, if any, will comply with the prospectus
     delivery requirements of the Securities Act as applicable to them in
     connection with sales of Registrable Securities pursuant to the
     Registration Statement.

          Each Holder agrees by its acquisition of such Registrable Securities
     that, upon receipt of a notice from the Company of the occurrence of any
     event of the kind described in Section 3(c)(ii), 3(c)(iii), 3(c)(iv),
     3(c)(v) or 3(c)(vi), such Holder will forthwith discontinue disposition of
     such Registrable Securities under the Registration Statement until such
     Holder's receipt of the copies of the supplemented Prospectus and/or
     amended Registration Statement contemplated by Section 3(k), or until it is
     advised in writing (the "Advice") by the Company

                                       7
<PAGE>

     that the use of the applicable Prospectus may be resumed, and, in either
     case, has received copies of any additional or supplemental filings that
     are incorporated or deemed to be incorporated by reference in such
     Prospectus or Registration Statement.

          (m) If (i) there is material non-public information regarding the
     Company which the Company's Board of Directors (the "Board") reasonably
     determines not to be in the Company's best interest to disclose and which
     the Company is not otherwise required to disclose, or (ii) there is a
     significant business opportunity (including, but not limited to, the
     acquisition or disposition of assets (other than in the ordinary course of
     business) or any merger, consolidation, tender offer or other similar
     transaction) available to the Company which the Board reasonably determines
     not to be in the Company's best interest to disclose and which the Company
     would be required to disclose under the Registration Statement, then the
     Company may postpone or suspend filing or effectiveness of a registration
     statement for a period not to exceed 20 consecutive days, provided that the
     Company may not postpone or suspend its obligation under this Section 3(m)
     for more than 45 days in the aggregate during any 12 month period (each, a
     "Blackout Period"); provided, however, that no such postponement or
     suspension shall be permitted for consecutive 20 day periods, arising out
     of the same set of facts, circumstances or transactions.

     4. Registration Expenses

     All fees and expenses incident to the performance of or compliance with
this Agreement by the Company shall be borne by the Company whether or not the
Registration Statement is filed or becomes effective and whether or not any
Registrable Securities are sold pursuant to the Registration Statement. The fees
and expenses referred to in the foregoing sentence shall include, without
limitation, (i) all registration and filing fees (including, without limitation,
fees and expenses (A) with respect to filings required to be made with Nasdaq
and each other securities exchange or market on which Registrable Securities are
required hereunder to be listed, (B) with respect to filings required to be made
with the Commission, (C) with respect to filings required to be made with the
NASD and the NASD Regulation, Inc. and (D) with respect to filings to be made
under state securities or Blue Sky laws, (ii) printing expenses (including,
without limitation, expenses of printing certificates for Registrable Securities
and of printing prospectuses if the printing of prospectuses is requested by the
holders of a majority of the Registrable Securities included in the Registration
Statement), (iii) messenger, telephone and delivery expenses, (iv) fees and
disbursements of counsel for the Company and Special Counsel for the Holders, in
the case of the Special Counsel, to a maximum amount of $10,000, and (v) fees
and expenses of all other Persons retained by the Company in connection with the
consummation of the transactions contemplated by this Agreement, including,
without limitation, the Company's independent public accountants (including the
expenses of any comfort letters or costs associated with the delivery by
independent public accountants of a comfort letter or comfort letters). In
addition, the Company shall be responsible for all of its internal expenses
incurred in connection with the consummation of the transactions contemplated by
this Agreement (including, without limitation, all salaries and expenses of its
officers and employees performing legal or accounting duties), the expense of
any annual audit, the fees and expenses incurred in connection with the listing
of the Registrable Securities on any securities exchange as required hereunder.

                                       8
<PAGE>

     5. Indemnification

          (a) Indemnification by the Company. The Company shall, notwithstanding
     any termination of this Agreement, indemnify and hold harmless each Holder,
     the officers, directors, agents, brokers (including brokers who offer and
     sell Registrable Securities as principal as a result of a pledge or any
     failure to perform under a margin call of Common Stock), investment
     advisors and employees of each of them, each Person who controls any such
     Holder (within the meaning of Section 15 of the Securities Act or Section
     20 of the Exchange Act) and the officers, directors, agents and employees
     of each such controlling Person, to the fullest extent permitted by
     applicable law, from and against any and all losses, claims, damages,
     liabilities, costs (including, without limitation, costs of preparation and
     reasonable attorneys' fees) and expenses (collectively, "Losses"), as
     incurred, arising out of or relating to any untrue or alleged untrue
     statement of a material fact contained in the Registration Statement, any
     Prospectus or any form of prospectus or in any amendment or supplement
     thereto or in any preliminary prospectus, or arising out of or relating to
     any omission or alleged omission of a material fact required to be stated
     therein or necessary to make the statements therein (in the case of any
     Prospectus or form of prospectus or supplement thereto, in the light of the
     circumstances under which they were made) not misleading, except to the
     extent, but only to the extent, that such untrue statements or omissions
     are based solely upon information regarding such Holder furnished in
     writing to the Company by such Holder expressly for use therein, which
     information was reasonably relied on by the Company for use therein or to
     the extent that such information relates to such Holder or such Holder's
     proposed method of distribution of Registrable Securities and was reviewed
     and expressly approved in writing by such Holder expressly for use in the
     Registration Statement, such Prospectus or such form of Prospectus or in
     any amendment or supplement thereto. The Company shall notify the Holders
     promptly of the institution, threat or assertion of any Proceeding of which
     the Company is aware in connection with the transactions contemplated by
     this Agreement. Such indemnity shall remain in full force and effect
     regardless of any investigation made by or on behalf of an Indemnified
     Party and shall survive the transfer of the Registrable Securities by the
     Holders.

          (b) Indemnification by Holders. Each Holder shall, severally and not
     jointly, indemnify and hold harmless the Company, the directors, officers,
     agents and employees, each Person who controls the Company (within the
     meaning of Section 15 of the Securities Act and Section 20 of the Exchange
     Act), and the directors, officers, agents or employees of such controlling
     Persons, to the fullest extent permitted by applicable law, from and
     against all Losses, as incurred, arising solely out of or based solely upon
     any untrue statement of a material fact contained in the Registration
     Statement, any Prospectus, or any form of prospectus, or arising solely out
     of or based solely upon any omission of a material fact required to be
     stated therein or necessary to make the statements therein (in the case of
     any Prospectus or form of prospectus or supplement thereto, in the light of
     the circumstances under which they were made) not misleading, to the
     extent, but only to the extent, that such untrue statement or omission is
     contained in or omitted from any information so furnished in writing by
     such Holder to the Company specifically for inclusion in the Registration
     Statement or such Prospectus and that such information was reasonably
     relied upon by the Company for use in the Registration Statement, such
     Prospectus or such form of prospectus or to the extent that such
     information

                                       9
<PAGE>

     relates to such Holder or such Holder's proposed method of distribution of
     Registrable Securities and was reviewed and approved in writing by such
     Holder expressly for use in the Registration Statement, such Prospectus or
     such form of Prospectus Supplement. Notwithstanding anything to the
     contrary contained herein, the Holder shall be liable under this Section
     5(b) for only that amount as does not exceed the net proceeds to such
     Holder as a result of the sale of Registrable Securities pursuant to such
     Registration Statement.

          (c) Conduct of Indemnification Proceedings. If any Proceeding shall be
     brought or asserted against any Person entitled to indemnity hereunder (an
     "Indemnified Party"), such Indemnified Party promptly shall notify the
     Person from whom indemnity is sought (the "Indemnifying Party) in writing,
     and the Indemnifying Party shall assume the defense thereof, including the
     employment of counsel reasonably satisfactory to the Indemnified Party and
     the payment of all fees and expenses incurred in connection with defense
     thereof; provided, that the failure of any Indemnified Party to give such
     notice shall not relieve the Indemnifying Party of its obligations or
     liabilities pursuant to this Agreement, except (and only) to the extent
     that it shall be finally determined by a court of competent jurisdiction
     (which determination is not subject to appeal or further review) that such
     failure shall have proximately and materially adversely prejudiced the
     Indemnifying Party.

          An Indemnified Party shall have the right to employ separate counsel
     in any such Proceeding and to participate in the defense thereof, but the
     fees and expenses of such counsel shall be at the expense of such
     Indemnified Party or Parties unless: (1) the Indemnifying Party has agreed
     in writing to pay such fees and expenses; or (2) the Indemnifying Party
     shall have failed promptly to assume the defense of such Proceeding and to
     employ counsel reasonably satisfactory to such Indemnified Party in any
     such Proceeding; or (3) the named parties to any such Proceeding (including
     any impleaded parties) include both such Indemnified Party and the
     Indemnifying Party, and such Indemnified Party shall have been advised by
     counsel that a conflict of interest is likely to exist if the same counsel
     were to represent such Indemnified Party and the Indemnifying Party (in
     which case, if such Indemnified Party notifies the Indemnifying Party in
     writing that it elects to employ separate counsel at the expense of the
     Indemnifying Party, the Indemnifying Party shall not have the right to
     assume the defense thereof and such counsel shall be at the expense of the
     Indemnifying Party). The Indemnifying Party shall not be liable for any
     settlement of any such Proceeding effected without its written consent,
     which consent shall not be unreasonably withheld. No Indemnifying Party
     shall, without the prior written consent of the Indemnified Party, effect
     any settlement of any pending Proceeding in respect of which any
     Indemnified Party is a party, unless such settlement includes an
     unconditional release of such Indemnified Party from all liability on
     claims that are the subject matter of such Proceeding.

          All fees and expenses of the Indemnified Party (including reasonable
     fees and expenses to the extent incurred in connection with investigating
     or preparing to defend such Proceeding in a manner not inconsistent with
     this Section) shall be paid to the Indemnified Party, as incurred, within
     ten (10) Business Days of written notice thereof to the Indemnifying Party
     (regardless of whether it is ultimately determined that an Indemnified
     Party is not entitled to indemnification hereunder; provided, that the
     Indemnifying Party may require such Indemnified

                                       10
<PAGE>

     Party to undertake to reimburse all such fees and expenses to the extent it
     is finally judicially determined that such Indemnified Party is not
     entitled to indemnification hereunder).

          (d) Contribution. If a claim for indemnification under Section 5(a) or
     5(b) is unavailable to an Indemnified Party because of a failure or refusal
     of a governmental authority to enforce such indemnification in accordance
     with its terms (by reason of public policy or otherwise), then each
     Indemnifying Party, in lieu of indemnifying such Indemnified Party, shall
     contribute to the amount paid or payable by such Indemnified Party as a
     result of such Losses, in such proportion as is appropriate to reflect the
     relative fault of the Indemnifying Party and Indemnified Party in
     connection with the actions, statements or omissions that resulted in such
     Losses as well as any other relevant equitable considerations. The relative
     fault of such Indemnifying Party and Indemnified Party shall be determined
     by reference to, among other things, whether any action in question,
     including any untrue or alleged untrue statement of a material fact or
     omission or alleged omission of a material fact, has been taken or made by,
     or relates to information supplied by, such Indemnifying Party or
     Indemnified Party, and the parties' relative intent, knowledge, access to
     information and opportunity to correct or prevent such action, statement or
     omission. The amount paid or payable by a party as a result of any Losses
     shall be deemed to include, subject to the limitations set forth in Section
     5(c), any reasonable attorneys' or other reasonable fees or expenses
     incurred by such party in connection with any Proceeding to the extent such
     party would have been indemnified for such fees or expenses if the
     indemnification provided for in this Section was available to such party in
     accordance with its terms. Notwithstanding anything to the contrary
     contained herein, the Holder shall be liable or required to contribute
     under this Section 5(c) for only that amount as does not exceed the net
     proceeds to such Holder as a result of the sale of Registrable Securities
     pursuant to such Registration Statement.

          The parties hereto agree that it would not be just and equitable if
     contribution pursuant to this Section 5(d) were determined by pro rata
     allocation or by any other method of allocation that does not take into
     account the equitable considerations referred to in the immediately
     preceding paragraph. No Person guilty of fraudulent misrepresentation
     (within the meaning of Section 11(f) of the Securities Act) shall be
     entitled to contribution from any Person who was not guilty of such
     fraudulent misrepresentation.

          The indemnity and contribution agreements contained in this Section 5
     are in addition to any liability that the Indemnifying Parties may have to
     the Indemnified Parties.

     6. Rule 144.

     As long as any Holder owns Preferred Shares, New Common Shares, Conversion
Shares, Warrants or Warrant Shares, the Company covenants to timely file (or
obtain extensions in respect thereof and file within the applicable grace
period) all reports required to be filed by the Company after the date hereof
pursuant to Section 13(a) or 15(d) of the Exchange Act. As long as any Holder
owns Preferred Shares, New Common Shares, Conversion Shares, Warrants or Warrant
Shares, if the Company is not required to file reports pursuant to Section 13(a)
or 15(d) of the Exchange Act, it will prepare and furnish to the Holders and
make publicly available in accordance with Rule 144(c) promulgated under the
Securities Act annual and quarterly

                                       11
<PAGE>

financial statements, together with a discussion and analysis of such financial
statements in form and substance substantially similar to those that would
otherwise be required to be included in reports required by Section 13(a) or
15(d) of the Exchange Act, as well as any other information required thereby, in
the time period that such filings would have been required to have been made
under the Exchange Act. The Company further covenants that it will take such
further action as any Holder may reasonably request, all to the extent required
from time to time to enable such Person to sell Conversion Shares and Warrant
Shares without registration under the Securities Act within the limitation of
the exemptions provided by Rule 144 promulgated under the Securities Act,
including providing any legal opinions of counsel to the Company referred to in
the Purchase Agreement. Upon the request of any Holder, the Company shall
deliver to such Holder a written certification of a duly authorized officer as
to whether it has complied with such requirements.

     7. Miscellaneous.

          (a) Remedies. In the event of a breach by the Company or by a Holder,
     of any of their obligations under this Agreement, each Holder or the
     Company, as the case may be, in addition to being entitled to exercise all
     rights granted by law and under this Agreement, including recovery of
     damages, will be entitled to specific performance of its rights under this
     Agreement. The Company and each Holder agree that monetary damages would
     not provide adequate compensation for any losses incurred by reason of a
     breach by it of any of the provisions of this Agreement and hereby further
     agrees that, in the event of any action for specific performance in respect
     of such breach, it shall waive the defense that a remedy at law would be
     adequate.

          (b) No Inconsistent Agreements. Except as listed on Schedule 2
     attached hereto, the Company has not, as of the date hereof entered into
     and currently in effect, nor shall the Company, on or after the date of
     this Agreement, enter into any agreement with respect to its securities
     that is inconsistent with the rights granted to the Holders in this
     Agreement or otherwise conflicts with the provisions hereof. The Company
     has not previously entered into any agreement currently in effect granting
     any registration rights with respect to any of its securities to any
     Person. Without limiting the generality of the foregoing, without the
     written consent of the Holders of a majority of the then outstanding
     Registrable Securities, the Company shall not grant to any Person the right
     to request the Company to register any securities of the Company under the
     Securities Act unless the rights so granted are subject in all respects to
     the prior rights in full of the Holders set forth herein, and are not
     otherwise in conflict with the provisions of this Agreement.

          (c) No Piggyback on Registrations. Except as listed on Schedule 2
     attached hereto, neither the Company nor any of its security holders (other
     than the Holders in such capacity pursuant hereto) may include securities
     of the Company in the Registration Statement, and the Company shall not
     after the date hereof enter into any agreement providing such right to any
     of its security holders, unless the right so granted is subject in all
     respects to the prior rights in full of the Holders set forth herein, and
     is not otherwise in conflict with the provisions of this Agreement.

                                       12
<PAGE>

          (d) Piggy-Back Registrations. If at any time when there is not an
     effective Registration Statement covering (i) New Common Shares, (ii)
     Conversion Shares or (iii) Warrant Shares, the Company shall determine to
     prepare and file with the Commission a registration statement relating to
     an offering for its own account or the account of others under the
     Securities Act of any of its equity securities, other than on Form S-4 or
     Form S-8 (each as promulgated under the Securities Act) or an equivalent
     form relating to equity securities to be issued solely in connection with
     any acquisition of any entity or business or equity securities issuable in
     connection with stock option or other employee benefit plans, the Company
     shall send to each holder of Registrable Securities written notice of such
     determination and, if within thirty (30) days after receipt of such notice,
     any such holder shall so request in writing (which request shall specify
     the Registrable Securities intended to be disposed of by the Investors),
     the Company will cause the registration under the Securities Act of all
     Registrable Securities which the Company has been so requested to register
     by the holder, to the extent requisite to permit the disposition of the
     Registrable Securities so to be registered, provided that if at any time
     after giving written notice of its intention to register any securities and
     prior to the effective date of the registration statement filed in
     connection with such registration, the Company shall determine for any
     reason not to register or to delay registration of such securities, the
     Company may, at its election, give written notice of such determination to
     such holder and, thereupon, (i) in the case of a determination not to
     register, shall be relieved of its obligation to register any Registrable
     Securities in connection with such registration (but not from its
     obligation to pay expenses in accordance with Section 4 hereof), and (ii)
     in the case of a determination to delay registering, shall be permitted to
     delay registering any Registrable Securities being registered pursuant to
     this Section 7(d) for the same period as the delay in registering such
     other securities. The Company shall include in such registration statement
     all or any part of such Registrable Securities such holder requests to be
     registered; provided, however, that the Company shall not be required to
     register any Registrable Securities pursuant to this Section 7(d) that are
     eligible for sale pursuant to Rule 144(k) of the Securities Act. In the
     case of an underwritten public offering, if the managing underwriter(s) or
     underwriter(s) should reasonably object to the inclusion of the Registrable
     Securities in such registration statement, then if the Company after
     consultation with the managing underwriter should reasonably determine that
     the inclusion of such Registrable Securities, would materially adversely
     affect the offering contemplated in such registration statement, and based
     on such determination recommends inclusion in such registration statement
     of fewer or none of the Registrable Securities of the Holders, then (x) the
     number of Registrable Securities of the Holders included in such
     registration statement shall be reduced pro-rata among such Holders (based
     upon the number of Registrable Securities requested to be included in the
     registration), if the Company after consultation with the underwriter(s)
     recommends the inclusion of fewer Registrable Securities, or (y) none of
     the Registrable Securities of the Holders shall be included in such
     registration statement, if the Company after consultation with the
     underwriter(s) recommends the inclusion of none of such Registrable
     Securities; provided, however, that if securities are being offered for the
     account of other persons or entities as well as the Company, such reduction
     shall not represent a greater fraction of the number of Registrable
     Securities intended to be offered by the Holders than the fraction of
     similar reductions imposed on such other persons or entities (other than
     the Company).

          (e) Failure to File Registration Statement and Other Events. The
     Company and the Investors agree that the Holders will suffer damages if the
     Registration Statement is not

                                       13
<PAGE>

     filed on or prior to the Filing Date and not declared effective by the
     Commission on or prior to the Effectiveness Date and maintained in the
     manner contemplated herein during the Effectiveness Period or if certain
     other events occur. The Company and the Holders further agree that it would
     not be feasible to ascertain the extent of such damages with precision.
     Accordingly, if (i) the Registration Statement is not filed on or prior to
     the Filing Date, or is not declared effective by the Commission on or prior
     to the Effectiveness Date (or in the event an additional Registration
     Statement is filed because the actual number of shares of Common Stock into
     which the Preferred Stock is convertible and the Warrants are exercisable
     exceeds the number of shares of Common Stock initially registered for such
     conversion and exercise is not filed and declared effective within the time
     periods set forth in Section 2(a)), or (ii) the Company fails to file with
     the Commission a request for acceleration in accordance with Rule 12dl-2
     promulgated under the Exchange Act within five (5) Business Days of the
     date that the Company is notified (orally or in writing, whichever is
     earlier) by the Commission that a Registration Statement will not be
     "reviewed," or not subject to further review, or (iii) the Registration
     Statement is filed with and declared effective by the Commission but
     thereafter ceases to be effective as to all Registrable Securities at any
     time prior to the expiration of the Effectiveness Period, without being
     succeeded immediately by a subsequent Registration Statement filed with and
     declared effective by the Commission, or (iv) trading in the Common Stock
     shall be suspended or if the Common Stock is delisted from the Principal
     Market for any reason for more than three (3) Business Days in the
     aggregate, or (v) the conversion rights of the Holders are suspended for
     any reason, including by the Company, or (vi) the Company breaches in a
     material respect any covenant or other material term or condition to this
     Agreement, the Certificate of Designation, the Purchase Agreement (other
     than a representation or warranty contained therein) or any other
     agreement, document, certificate or other instrument delivered in
     connection with the transactions contemplated hereby and thereby, and such
     breach continues for a period of thirty (30) days after written notice
     thereof to the Company, or (vii) the Company has breached Section 3(m) of
     this Agreement (any such failure or breach being referred to as an
     "Event"), the Company shall pay as liquidated damages for such failure and
     not as a penalty to each Holder an amount equal to 2% of such Holder's pro
     rata share of the purchase price paid by all Holders for all shares of
     Preferred Stock purchased and then outstanding pursuant to the Purchase
     Agreement for the initial thirty (30) day period after the Event until the
     applicable Event has been cured, which shall be pro rated for such periods
     less than thirty (30) days, and 3% of such Holder's pro rata share of the
     purchase price paid by all Holders for all shares of Preferred Stock
     purchased and then outstanding pursuant to the Purchase Agreement for each
     subsequent thirty (30) day period thereafter until the applicable Event has
     been cured which shall be pro rated for such periods less than thirty (30)
     days (the "Periodic Amount"). Payments to be made pursuant to this Section
     7(e) shall be due and payable immediately upon demand in cash or as a
     Dividend Payment (as defined in Section 2(a) of the Certificate of
     Designations) at the option of such Holder. The parties agree that the
     Periodic Amount represents a reasonable estimate on the part of the
     parties, as of the date of this Agreement, of the amount of damages that
     may be incurred by the Holders if the Registration Statement is not filed
     on or prior to the Filing Date or has not been declared effective by the
     Commission on or prior to the Effectiveness Date and maintained in the
     manner contemplated herein during the Effectiveness Period or if any other
     Event as described herein has occurred.

          (f) Specific Enforcement, Consent to Jurisdiction.

                                       14
<PAGE>

               (i) The Company and the Investors acknowledge and agree that
          irreparable damage would occur in the event that any of the provisions
          of this Registration Rights Agreement or the Purchase Agreement were
          not performed in accordance with their specific terms or were
          otherwise breached. It is accordingly agreed that the parties shall be
          entitled to an injunction or injunctions to prevent or cure breaches
          of the provisions of this Registration Rights Agreement or the
          Purchase Agreement and to enforce specifically the terms and
          provisions hereof or thereof, this being in addition to any other
          remedy to which any of them may be entitled by law or equity.

               (ii) Each of the Company and the Investors (i) hereby irrevocably
          submits to the jurisdiction of the United States District Court
          sitting in the Southern District of New York for the purposes of any
          suit, action or proceeding arising out of or relating to this
          Agreement or the Purchase Agreement and (ii) hereby waives, and agrees
          not to assert in any such suit, action or proceeding, any claim that
          it is not personally subject to the jurisdiction of such court, that
          the suit, action or proceeding is brought in an inconvenient forum or
          that the venue of the suit, action or proceeding is improper. Each of
          the Company and the Investors consents to process being served in any
          such suit, action or proceeding by mailing a copy thereof to such
          party at the address in effect for notices to it under this Agreement
          and agrees that such service shall constitute good and sufficient
          service of process and notice thereof. Nothing in this Section 7(f)
          shall affect or limit any right to serve process in any other manner
          permitted by law.

          (g) Amendments and Waivers. The provisions of this Agreement,
     including the provisions of this sentence, may not be amended, modified or
     supplemented, and waivers or consents to departures from the provisions
     hereof may not be given, unless the same shall be in writing and signed by
     the Company and each of the Holders. Notwithstanding the foregoing, a
     waiver or consent to depart from the provisions hereof with respect to a
     matter that relates exclusively to the rights of Holders and that does not
     directly or indirectly affect the rights of other Holders may be given by
     Holders of at least a majority of the Registrable Securities to which such
     waiver or consent relates; provided, however, that the provisions of this
     sentence may not be amended, modified, or supplemented except in accordance
     with the provisions of the immediately preceding sentence.

          (h) Notices. Any and all notices or other communications or deliveries
     required or permitted to be provided hereunder shall be in writing and
     shall be deemed given and effective on the earlier of (i) the date of
     transmission, if such notice or communication is delivered via facsimile at
     the facsimile telephone number specified for notice prior to 5:00 p.m.,
     eastern time, on a Business Day, (ii) the Business Day after the date of
     transmission, if such notice or communication is delivered via facsimile at
     the facsimile telephone number specified for notice later than 5:00 p.m.,
     eastern time, on any date and earlier than 11:59 p.m., eastern time, on
     such date, (iii) the Business Day following the date of mailing, if sent by
     nationally recognized overnight courier service or (iv) actual receipt by
     the party to whom such notice is required to be given. The addresses for
     such communications shall be with respect to each Holder at its address set
     forth under its name on Schedule 1 attached hereto, or with respect to the
     Company, addressed to:

                                       15
<PAGE>

                  Global Maintech Corporation
                  7578 Market Place Drive
                  Eden Prairie, MN 55344
                  Attention: Chief Executive Officer
                  Facsimile: (612) 944-0400
                  Telephone: (612) 944-3311

     or to such other address or addresses or facsimile number or numbers as any
     such party may most recently have designated in writing to the other
     parties hereto by such notice. Copies of notices to Holders shall be sent
     to the addresses listed on Schedule 1 attached hereto. Copies of notices to
     the Company shall be sent to Dorsey & Whitney LLP, Pillsbury Center South,
     220 South Sixth Street, Minneapolis, MN 55402-1498, Attention: Ken Cutler,
     Esq., Facsimile No.: (612) 340-8738. Copies of notices to any Holder shall
     be sent to Parker Chapin Flattau & Klimpl, LLP, 1211 Avenue of the
     Americas, New York, New York 10036, Attention: Christopher S. Auguste,
     Esq., Facsimile No.: (212) 704-6288.

          (i) Successors and Assigns. This Agreement shall be binding upon and
     inure to the benefit of the parties and their successors and permitted
     assigns and shall inure to the benefit of each Holder and its successors
     and assigns. The Company may not assign this Agreement or any of its rights
     or obligations hereunder without the prior written consent of each Holder.
     Each Investor may assign its rights hereunder in the manner and to the
     Persons as permitted under the Purchase Agreement.

          (j) Assignment of Registration Rights. The rights of each Holder
     hereunder, including the right to have the Company register for resale
     Registrable Securities in accordance with the terms of this Agreement,
     shall be automatically assignable by each Holder to any transferee of such
     Holder of all or a portion of the shares of Preferred Stock, New Common
     Shares, Warrants or the Registrable Securities if: (i) the Holder agrees in
     writing with the transferee or assignee to assign such rights, and a copy
     of such agreement is furnished to the Company within a reasonable time
     after such assignment, (ii) the Company is, within a reasonable time after
     such transfer or assignment, furnished with written notice of (a) the name
     and address of such transferee or assignee, and (b) the securities with
     respect to which such registration rights are being transferred or
     assigned, (iii) following such transfer or assignment the further
     disposition of such securities by the transferee or assignees is restricted
     under the Securities Act and applicable state securities laws, (iv) at or
     before the time the Company receives the written notice contemplated by
     clause (ii) of this Section, the transferee or assignee agrees in writing
     with the Company to be bound by all of the provisions of this Agreement,
     and (v) such transfer shall have been made in accordance with the
     applicable requirements of the Purchase Agreement. In addition, each Holder
     shall have the right to assign its rights hereunder to any other Person
     with the prior written consent of the Company, which consent shall not be
     unreasonably withheld. The rights to assignment shall apply to the Holders
     (and to subsequent) successors and assigns.

          (k) Counterparts. This Agreement may be executed in any number of
     counterparts, each of which when so executed shall be deemed to be an
     original and, all of which taken together shall constitute one and the same
     Agreement. In the event that any signature is

                                       16
<PAGE>

     delivered by facsimile transmission, such signature shall create a valid
     binding obligation of the party executing (or on whose behalf such
     signature is executed) the same with the same force and effect as if such
     facsimile signature were the original thereof.

          (l) Governing Law. This Agreement shall be governed by and construed
     in accordance with the laws of the State of New York, without regard to
     principles of conflicts of law thereof.

          (m) Cumulative Remedies. The remedies provided herein are cumulative
     and not exclusive of any remedies provided by law.

          (n) Severability. If any term, provision, covenant or restriction of
     this Agreement is held to be invalid, illegal, void or unenforceable in any
     respect, the remainder of the terms, provisions, covenants and restrictions
     set forth herein shall remain in full force and effect and shall in no way
     be affected, impaired or invalidated, and the parties hereto shall use
     their reasonable efforts to find and employ an alternative means to achieve
     the same or substantially the same result as that contemplated by such
     term, provision, covenant or restriction. It is hereby stipulated and
     declared to be the intention of the parties that they would have executed
     the remaining terms, provisions, covenants and restrictions without
     including any of such that may be hereafter declared invalid, illegal, void
     or unenforceable.

          (o) Headings. The headings herein are for convenience only, do not
     constitute a part of this Agreement and shall not be deemed to limit or
     affect any of the provisions hereof.

          (p) Shares Held by the Company and its Affiliates. Whenever the
     consent or approval of Holders of a specified percentage of Registrable
     Securities is required hereunder, Registrable Securities held by the
     Company or its Affiliates (other than any Holder or transferees or
     successors or assigns thereof if such Holder is deemed to be an Affiliate
     solely by reason of its holdings of such Registrable Securities) shall not
     be counted in determining whether such consent or approval was given by the
     Holders of such required percentage.

          (q) Notice of Effectiveness. Within two (2) business days after the
     Registration Statement which includes the Registrable Securities is ordered
     effective by the Commission, the Company shall deliver, and shall cause
     legal counsel for the Company to deliver, to the transfer agent for such
     Registrable Securities (with copies to the Holders whose Registrable
     Securities are included in such Registration Statement) confirmation that
     the Registration Statement has been declared effective by the Commission in
     the form attached hereto as Exhibit A.

                  [Remainder of Page Intentionally Left Blank]

                                       17
<PAGE>

     IN WITNESS WHEREOF, the parties hereto have caused this Registration Rights
Agreement to be duly executed by their respective authorized persons as of the
date first indicated above.

                                       GLOBAL MAINTECH CORPORATION

                                       By:
                                           -------------------------------------
                                           Name:
                                           Title:

                                       ESQUIRE TRADE & FINANCE INC.

                                       By:
                                           -------------------------------------
                                           Name:
                                           Title:

                                       AUSTINVEST ANSTALT BALZERS

                                       By:
                                           -------------------------------------
                                           Name:
                                           Title:

                                       NESHER, INC.

                                       By:
                                           -------------------------------------
                                           Name:
                                           Title:

                                       ASSANZON DEVELOPMENT CORPORATION

                                       By:
                                           -------------------------------------
                                           Name:
                                           Title:

                                       AMRO INTERNATIONAL

                                       By:
                                           -------------------------------------
                                           Name:
                                           Title:
<PAGE>

                                       GARROS, LTD.

                                       By:
                                           -------------------------------------
                                           Name:
                                           Title:
<PAGE>

                                                                       EXHIBIT A

                         FORM OF NOTICE OF EFFECTIVENESS
                            OF REGISTRATION STATEMENT

[TRANSFER AGENT]
Attn: _____________

          Re: Global Maintech Corporation
              ---------------------------

Ladies and Gentlemen:

     We are counsel to Global Maintech Corporation, a Minnesota corporation (the
"Company"), and have represented the Company in connection with that certain
Series D Convertible Preferred Stock Purchase Agreement (the "Purchase
Agreement"), dated as of January 19, 2000, by and among the Company and the
purchasers named therein (collectively, the "Holders") pursuant to which the
Company issued to the Holders and the placement agent shares of its common
stock, no par value per share (the "Common Shares"), shares of its Series D
Convertible Preferred Stock (the "Preferred Shares") and issued warrants (the
"Warrants") to purchase shares of the Company's common stock, no par value per
share (the "Common Stock"). Pursuant to the Purchase Agreement, the Company has
also entered into a Registration Rights Agreement with the Holders (the
"Registration Rights Agreement"), dated as of January 19, 2000, pursuant to
which the Company agreed, among other things, to register the Registrable
Securities (as defined in the Registration Rights Agreement), including the
Common Shares and the shares of Common Stock issuable upon conversion of the
Preferred Shares and exercise of the Warrants, under the Securities Act of 1933,
as amended (the "1933 Act"). In connection with the Company's obligations under
the Registration Rights Agreement, on ________________, 1999, the Company filed
a Registration Statement on Form SB-2 (File No. 333-________) (the "Registration
Statement") with the Securities and Exchange Commission (the "SEC") relating to
the resale of the Registrable Securities which names each of the present Holders
as a selling stockholder thereunder.

     In connection with the foregoing, we advise you that a member of the SEC's
staff has advised us by telephone that the SEC has entered an order declaring
the Registration Statement effective under the 1933 Act at [ENTER TIME OF
EFFECTIVENESS] on [ENTER DATE OF EFFECTIVENESS] and we have no knowledge, after
telephonic inquiry of a member of the SEC's staff, that any stop order
suspending its effectiveness has been issued or that any proceedings for that
purpose are pending before, or threatened by, the SEC and the Registrable
Securities are available for resale under the 1933 Act pursuant to the
Registration Statement.

                                       Very truly yours,

                                       -----------------------------------------

cc:  [LIST NAMES OF HOLDERS]
<PAGE>

                                   SCHEDULE 1
                                   ----------

1.   Esquire Trade & Finance Inc.
     Trident Chambers
     P.O. Box 2154
     6342 Baar, Switzerland
     Facsimile: 41-41-760-1031
     Attention:  Roland Winiger, Director

2.   Austinvest Anstalt Balzers
     Landstrasse 938
     9494 Furstentums
     Balzers, Liechtenstein
     Attention: Dr. Walter Grill
     Facsimile: 431-534-532-895

3.   Nesher, Inc.
     18 Peel Road
     Douglas, Isle of Man
     1M1-4L2 United Kingdom
     Attention: David Grin
     Facsimile:  01197236050756

4.   Assanzon Development Corporation
     3501 Bamboo Grove
     76 Kennedy Road
     Mid-levels, Hong Kong
     Attention:
     Facsimile:

5.   Amro International
     40 Ultra Finance
     Grossmuenster Platz, No. 6
     Zurich, Switzerland CH8022
     Attention: Thomas Badian
     Facsimile: (212) 214-0440

6.   Garros, Ltd.
     P.O. Box 146
     Road Town, Tortola
     British Virgin Islands
     Attention: Giora Lavie
     Facsimile:  (011) 972-3-544-1870
<PAGE>

                                   SCHEDULE 2
                                   ----------

1.   Shares of common stock issuable upon conversion or exercise of 51,792
     shares of Series B Convertible Preferred Stock and related warrants.

2.   Shares of common stock issuable upon conversion or exercise of up to
     $3,000,000 (stated value) of shares of Series F Convertible Preferred Stock
     and related warrants, if any.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00010-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00010-of-00352.parquet"}]]