July 19, 1996 VIA FAX TRANSMISSION TO: Rick Visovsky Mark Rodak AGTC, Inc. Alpine Coal Company, Inc. 7 Oakwood Way Fax: (717)730-9416 Robbinsville, NJ 08691 Fax: (609)275-0779 Edwin J. Hodder E.J. Hodder & Assoc. 2700 Powhatan Street Mulga, AL 35118...

July 19, 1996

VIA FAX TRANSMISSION

TO:      Xxxx Xxxxxxxx                      Xxxx Xxxxx
         AGTC, Inc.                         Alpine Coal Company, Inc.
         0 Xxxxxxx Xxx                      Fax: (000)000-0000
         Xxxxxxxxxxxx, XX 00000
         Fax: (000)000-0000

         Xxxxx X. Xxxxxx
         X.X. Xxxxxx & Assoc.
         0000 Xxxxxxxx Xxxxxx
         Xxxxx, XX 00000
         Fax: (000)000-0000

SUBJECT: CANCELLATION OF SITE IDENTIFICATION AGREEMENT

Gentlemen:

In accord with the provisions relating to the term of the agreement entered into
by COVOL TECHNOLOGIES,  INC. ("COVOL"),  AGTC, Inc., ALPINE COAL COMPANY,  INC.,
and X.X. XXXXXX & ASSOCIATES,  on March 6, 1996,  whereby COVOL has the right to
cancel if less than two projects are  presented  and accepted at the end of four
months, COVOL hereby cancels the agreement.

Sincerely,


/s/Xxxxxxx X. Xxxxxxx
Xxxxxxx X. Xxxxxxx
President