Letter of Understanding
This agreement is made and entered into this 13th day of September, 1996 by and
between Covol Technologies, Inc., a Delaware Corporation ("Covol") and X.X.
Xxxxxx & Associates, Inc. ("Hodder"), a __________ corporation.
RECITALS
Whereas, "Hodder" owns an assignable land lease and equipment company commonly
referred to as Port Hodder (2700 Powhatan Street, Mulga, AL.) which is a barge
loading facility servicing the Warrior River.
Whereas, "Hodder" warrants that it owns title to all the equipment and
facilities currently located on Port Hodder site.
Whereas, "Hodder" desires to sell the Port Hodder facility, and "Covol" desires
to purchase said facility.
BE IT THEREFORE AGREED AS FOLLOWS:
Hodder" agrees to sell and convey unencumbered title to the Port Hodder facility
to "Covol", "Hodder" warrants and represents that there are no liens or
encumbrances and that any claims against the Port Hodder facility have been
disclosed to "Covol".
"Covol" agrees to pay to "Hodder" the following sums for the Port Hodder
facility:
(1) A Sum of $125,000 U.S. Dollars to be paid at commencement of
construction or by August 15, 1996 whichever is sooner.
(2) An additional sum of $125,000 U.S. Dollars to be paid on or
before September 15, 1996.
(3) An additional sum of $100,000 U.S. Dollars to be paid on or
before October 15, 1996.
(4) 71,800 Shares of Covol Stock (CVOL)
(Estimated value, based on 6/27/96 closing price $700,000.
Both parties agree to cooperate and work jointly at operating the Port Hodder
facility. Both parties further agree that if the efforts to acquire Concord Coal
Recovery Ltd. Partnership (K-Xxx Processing) are unsuccessful the quantity of
shares identified in (3) above shall be reduced to 60,000 shares of Covol Stock
(CVOL) (estimated value based on 6/27/96 closing price $585,000).
It is further agreed that if the efforts to acquire Concord Coal Recovery Ltd.
Partnership (K-Xxx Processing) is successful, the payment identified in (3)
above shall be reduced to $50,000 U.S.
Dollars.
Both parties agree that Xx Xxxxxx shall have the right to load and utilize the
Port facility for business purposes, upon condition that any such activity shall
not interfere with any present or future business activities of Covol
Technologies, Inc.
Both parties further agree that X.X. Xxxxxx & Associates, Inc. shall provide
consulting services to Covol Technologies, Inc. and will assist with operation
of the port facility and future plant operations, and will also aid in acquiring
fines and other feedstock material and in developing finished product markets in
Coal, Coke and iron rich material an in other market development and industry
efforts which Covol is undertaking. Compensation and consideration for such
consulting services shall be as follows:
(deleted)
Agreed to this day 13th of September 1996.
Covol Technologies, Inc. X.X. Xxxxxx Associates, Inc.
/s/ Xxx Xxxxx /s/ Xxxxx X. Xxxxxx
By: Xxx Xxxxx By: Xxxxx X. Xxxxxx
Title: CEO Title: President
