LEASE AGREEMENT

This  commercial  lease  is  entered  into  between   Industrial   Management  &
Engineering,  Inc. ("Landlord") and Covol Technologies,  Inc.,  ("Tenant").  The
Landlord  hereby leases the below described  commercial  property to the Tenant.
The Tenant hereby accepts the lease. The terms of the lease are as follows:

1. The lease  pertains to the property,  including the building and the adjacent
paved parking area located at 3280 North Frontage Road,  Lehi,  Utah 84043,  but
excluding  the  currently  fenced off portion on the north of the property  (the
"Premises").

2.  The  initial  term of the  lease  shall  be for a  period  of  three  years,
commencing  on the 1st day of  August,  1997 and  ending on the 31st day of July
2000.  Thereafter,  the lease shall automatically extend for successive one-year
periods  unless prior to the end of any lease year,  Tenant shall give  Landlord
60-days written notice of it intent to terminate the lease.

3. The Tenant shall pay Landlord,  the monthly rent of $5,000.00  payable on the
first day of every  month.  There  will be a late fee of $100 if the rent is not
paid by the 5th of the month, plus $10 for each additional day until paid. After
the initial  term of the lease,  the amount of the rent will  increase by 5% per
annum.  If Landlord  builds  additional  commercial  rental  space on the fenced
portion of the Premises and Tenant desires to lease those structures,  the terms
for such additional space shall be agreed upon by the parties.

4. The Tenant shall be responsible for providing all utilities,  property taxes,
and maintenance of the Premises.

5. The  Landlord  shall  provide  such  additional  parking  space as Tenant may
require, at no additional cost to the Tenant.

6. The Tenant agrees to return  possession of the Premises at the  conclusion of
the lease in its present condition, except for normal wear and tear.

7. The Premises shall be used for the purpose of conducting the proper  business
activities  of Tenant which include but are not limited to the  development  and
world-wide commercialization of its patented agglomeration technology.

8. The  Tenant  shall not  assign  or  sublease  the  Premises  without  written
permission of the Landlord.

9. No material or  structural  alterations  of the Premises will be made without
the prior written permission of the Landlord.

10. The Tenant  will  comply  with all  zoning,  health,  environmental  and use
ordinances.



11. In the event that legal  action is necessary  to enforce any  provisions  of
this contract, attorney fees may be recovered by the prevailing party.

12. This lease is subject to the formal  transfer of  ownership  of the Premises
from Tenant to Landlord.


Signed this 7th day of November, 1997.

Landlord                                             Tenant
IME                                                  COVOL TECHNOLOGIES, INC.



By: /s/ Gerald Larson                                By:/s/ Stanley Kimball
   -----------------------                              ---------------------
Its:  Director                                       Its: CFO