Exhibit 10.29
                             BUSINESS LOAN AGREEMENT

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Principal   Loan Date  Maturity  Loan No Call / Coll  Account   Officer Initials
$1,750,000.00 10-17-2001 11-01-2003   26     599 / 990  0010028727   610
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References  in the shaded  area are for  Lender's  use only and do not limit the
applicability of this document to any particular loan or item.
Any item above containing "***" has been omitted due to text length limitations.
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Borrower: MacTarnahan Limited Partnership   Lender: Washington Mutual Bank
          11416 SW Lynnridge Avenue                 dba Western Bank
          Portland, OR  97225                       Beaverton Business Banking
                                                       Center
                                                    12655 SW Center Street,
                                                    Suite 500
                                                    Beaverton, OR  97005


THIS  BUSINESS  LOAN  AGREEMENT  dated  October 17,  2001,  is made and executed
between MacTarnahan Limited Partnership  ("Borrower") and Washington Mutual Bank
dba Western Bank ("Lender") 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 or other  financial  accommodations,  including  those
which may be  described  on any exhibit or schedule  attached to this  Agreement
("Loan").  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,  and (B) all such
Loans shall be and remain subject to the terms and conditions of this Agreement.

TERM.  This  Agreement  shall be  effective  as of October 17,  2001,  and shall
continue in full force and effect until such time as all of Borrower's  Loans in
favor of Lender have been paid in full,  including principal,  interest,  costs,
expenses, attorneys' fees, and other fees and charges, or until such time as the
parties may agree in writing to terminate this Agreement.

CONDITIONS  PRECEDENT TO EACH ADVANCE.  Lender's  obligation to make the initial
Advance and each subsequent 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 the following  documents
     for the Loan:  (1) the Note;  (2)  guaranties;  (3) together  with all such
     Related  Documents  as Lender  may  require  for the Loan;  all in form and
     substance satisfactory to Lender and Lender's 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.  In addition,  Borrower  shall have provided such other
     resolutions,  authorizations,  documents and  instruments  as Lender or its
     counsel, 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
     or under any Related Document.

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  partnership  which is, and at all times shall
     be, duly organized and validly existing, under and by virtue of the laws of
     the State of Oregon.  Borrower is duly  authorized to transact  business in
     all other states in which Borrower is doing business, in both cases and has
     obtained all  necessary  filings,  governmental  licenses and approvals for
     each state in which Borrower is doing business. Borrower has the full power
     and authority to own its  properties  and to transact the business in which
     it is presently engaged or presently proposes to engage. Borrower maintains
     an office at 11416 SW Lynnridge Avenue, Portland, OR 97225. Unless Borrower
     has designated  otherwise in writing, the principal office is the office at
     which Borrower keeps its books and records including its records concerning
     the  Collateral.  Borrower  will notify  Lender  prior to any change in the
     location of Borrower's principal office address or any change in Borrower's
     name.  Borrower  shall do all things  necessary  to preserve and to keep in
     full force and  effect its  existence,  rights  and  privileges,  and shall
     comply  with all  regulations,  rules,  ordinances,  statutes,  orders  and
     decrees  of any  governmental  or  quasi-governmental  authority  or  court
     applicable to Borrower and Borrower's business activities.

     Assumed  Business  Names.  Borrower has filed or recorded all  documents or
     filings  required by law  relating to all  assumed  business  names used by
     Borrower.  Excluding the name of Borrower, the following is a complete list
     of all assumed business names under which Borrower does business: None.

     Authorization.  Borrower's  execution,  delivery,  and  performance of this
     Agreement and all the Related  Documents  have been duly  authorized by all
     necessary  action  by  Borrower  and  do not  conflict  with,  result  in a
     violation of, or constitute a default under (1) any provision of Borrower's
     articles or agreements of partnership, or any agreement or other instrument
     binding  upon  Borrower  or (2) any  law,  governmental  regulation,  court
     decree, or order applicable to Borrower or to Borrower's properties.

     Financial Information.  Each of Borrower's financial statements 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
     Borrower is  required  to give under this  Agreement  when  delivered  will
     constitute legal, valid, and binding obligations of Borrower.

     Properties.  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
     Borrower's properties free and clear of all Security Interests, and has not
     executed any security  documents or financing  statements  relating to such
     properties.  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 five (5) years.

     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 of Borrower's tax returns
     and reports 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.

     Binding Effect. This Agreement, the Note, all Security Agreements (if any),
     and all Related Documents are binding upon the signers thereof,  as well as
     upon their successors, representatives and assigns.

AFFIRMATIVE  COVENANTS.  Borrower covenants and agrees with Lender that, so long
as this Agreement remains in effect, Borrower will:

     Notices of Claims and Litigation.  Promptly inform Lender in writing of (1)
     all material adverse changes in Borrower's financial condition, and (2) 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  sufficient  to prepare
     financial  statements  and permit  Lender to examine  and audit  Borrower's
     books and records at all reasonable times.

     Financial Statements. Furnish Lender with the following:
<PAGE>
  Loan No: 26                                                          Page 2
                            BUSINESS LOAN AGREEMENT
                                  (Continued)

     Annual  Statements.  As soon  as  available,  but in no  event  later  than
     one-hundred-twenty (120) days after the end of each fiscal year, Borrower's
     balance  sheet and  income  statement  for the year  ended,  compiled  by a
     certified public accountant satisfactory to Lender.

     Tax Returns.  As soon as available,  but in no event later than thirty (30)
     days after the applicable  filing date for the tax reporting  period ended,
     Federal and other governmental tax returns, prepared by Borrower.

     Additional Requirements. Tax Returns to include all supplemental schedules,
     together with K-1's.

     All financial reports required to be provided under this Agreement shall be
     prepared  in  accordance  with  sound  accounting  practices,  applied on a
     consistent basis, and certified by Borrower as being true and correct.

     Additional Information. Furnish such additional information and statements,
     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 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 to Lender.  Each  insurance  policy  also shall
     include an endorsement  providing that coverage in favor of Lender will not
     be impaired  in any way by any act,  omission or default of Borrower or any
     other person.  In  connection  with all policies  covering  assets in which
     Lender holds or is offered a security interest for the Loans, Borrower will
     provide  Lender with such  lender's loss payable or other  endorsements  as
     Lender may require.

     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 following:  (1) the
     name of the insurer;  (2) the risks insured;  (3) the amount of the policy;
     (4) the properties  insured;  (5) the then current  property  values on the
     basis of which  insurance has been obtained,  and the manner of determining
     those values; and (6) the expiration date of the policy.

     Guaranties.  Prior to disbursement of any Loan proceeds,  furnish  executed
     guaranties  of the Loans in favor of  Lender,  executed  by the  guarantors
     named below, on Lender's forms, and in the amounts and under the conditions
     set forth in those guaranties.

           Names of Guarantors                                    Amounts
           -------------------                                    -------

           Harmer Mill & Logging Supply Co.                 $1,750,000.00
           Robert M. MacTarnahan                            $1,750,000.00
           MacTarnahan Family Trust                         $1,750,000.00

     Other  Agreements.  Comply  with all  terms  and  conditions  of all  other
     agreements,  whether now or hereafter  existing,  between  Borrower and any
     other  party and notify  Lender  immediately  in writing of any  default in
     connection with any other such agreements.

     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. See Addendum.

     Performance.  Perform  and  comply,  in a timely  manner,  with all  terms,
     conditions,  and provisions set forth in this Agreement, and in the Related
     Documents.  Borrower  shall  notify  Lender  immediately  in writing of any
     default in connection with any such agreement.

     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.

     Compliance   with   Governmental   Requirements.   Comply  with  all  laws,
     ordinances,   and  regulations,   now  or  hereafter  in  effect,   of  all
     governmental   authorities   applicable   to  the  conduct  of   Borrower's
     properties,  businesses and operations,  including without limitation,  the
     Americans  With  Disabilities  Act.  Borrower may contest in good faith any
     such law,  ordinance,  or  regulation  and withhold  compliance  during any
     proceeding, including appropriate appeals, so long as Borrower has notified
     Lender in writing prior to doing so.

     Inspection.  Permit employees or agents of Lender at any reasonable time 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 Certificates. Unless waived in writing by Lender, provide Lender
     at  least  annually,  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.

     Environmental Compliance and Reports. Borrower shall comply in all respects
     with any and all  Environmental  Laws;  not cause or permit to exist,  as a
     result of an intentional or unintentional  action or omission on Borrower's
     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.

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  has with
Lender; or (B) Borrower or any Guarantor becomes insolvent,  files a petition in
bankruptcy or similar proceedings, or is adjudged a bankrupt.

RIGHT OF SETOFF. See Addendum.

DEFAULT.  Each of the following shall  constitute an Event of Default under this
Agreement:

     Payment  Default.  Borrower  fails to make any  payment  when due under the
     Loan.

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

     Default in Favor of Third Parties. Borrower or any Grantor defaults and the
     amount is  accelerated  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
     or any Grantor'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  Borrower  or on  Borrower's  behalf  under  this
     Agreement or the Related  Documents is false or  misleading in any material
     respect,  either now or at the time made or furnished  or becomes  false or
     misleading at any time thereafter.

     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.

<PAGE>
      Loan No: 26                                                  Page 3

                            BUSINESS LOAN AGREEMENT
                                  (Continued)

     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 or by any
     governmental agency against any collateral securing the Loan. This includes
     a garnishment of any of Borrower's  accounts,  including  deposit accounts,
     with Lender.  However,  this Event of Default shall not apply if there is a
     good faith dispute by Borrower as to the validity or  reasonableness of the
     claim which is the basis of the creditor or  forfeiture  proceeding  and if
     Borrower  gives  Lender  written  notice  of  the  creditor  or  forfeiture
     proceeding  and  deposits  with  Lender  monies  or a  surety  bond for the
     creditor or forfeiture  proceeding,  in an amount  determined by Lender, in
     its sole discretion, as being an adequate reserve or bond for the dispute.

     See Addendum.

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  (including any obligation to make
further  Loan  Advances  or   disbursements),   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.

GUARANTOR'S  FINANCIAL  STATEMENTS.  Borrower  agrees to furish  Lender with the
following Guarantor information:

Corporate Annual  Statements.  As soon as available,  but in no event later than
one-hundred-twenty  (120) days after the end of each  fiscal  year,  Guarantor's
balance sheet and income  statement for the year ended,  compiled by a certified
public accountant satisfactory to Lender.

Individual Annual Statements.  As soon as available,  but in no event later than
one hundred  twenty  (120) days after the end of each fiscal  year,  Guarantor's
balance sheet and income statement for the year ended, prepared by Guarantor.

Tax Returns.  As soon as available,  but in no event later than thirty (30) days
after the applicable filing date for the tax reporting period ended, Federal and
other governmental tax returns, prepared by Guarantor.

Additional  Requirements.  Tax  returns to include  all  supplemental  schedules
together with K-1's.

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.

     Attorneys'  Fees;  Expenses.  Borrower  agrees  to pay upon  demand  all of
     Lender's  costs  and  expenses,  including  Lender's  attorneys'  fees  and
     Lender's legal  expenses,  incurred in connection  with the  enforcement of
     this  Agreement.  Lender may hire or pay someone  else to help enforce this
     Agreement,   and  Borrower  shall  pay  the  costs  and  expenses  of  such
     enforcement.  Costs and expenses include Lender's attorneys' fees and legal
     expenses whether or not there is a lawsuit,  including  attorneys' fees and
     legal expenses for bankruptcy  proceedings  (including efforts to modify or
     vacate any automatic  stay or  injunction),  appeals,  and any  anticipated
     post-judgment collection services.  Borrower also shall pay all court costs
     and such additional fees as may be directed by the court.

     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  Loan  to one or  more  purchasers,  whether  related  or
     unrelated  to  Lender.  Subject to  securities  laws,  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  Borrower 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 Loan 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 purchaser may enforce Borrower's obligation under the
     Loan  irrespective  of the  failure  or  insolvency  of any  holder  of any
     interest in the Loan.  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.

     Governing Law. This  Agreement will be governed by,  construed and enforced
     in  accordance  with federal law and the laws of the State of Oregon.  This
     Agreement has been accepted by Lender in the State of Oregon.

     No Waiver by Lender.  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 of  Borrower's  or any  Grantor's  obligations  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 to subsequent instances where such consent is
     required  and in all cases such  consent  may be granted or withheld in the
     sole discretion of Lender.

     Notices.  Any notice  required  to be given under this  Agreement  shall be
     given in writing,  and shall be effective  when  actually  delivered,  when
     actually received by telefacsimile (unless otherwise required by law), when
     deposited with a nationally  recognized  overnight courier,  or, if mailed,
     when  deposited  in the United  States mail,  as first class,  certified or
     registered mail postage  prepaid,  directed to the addresses shown near the
     beginning of this  Agreement.  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.
     For notice  purposes,  Borrower agrees to keep Lender informed at all times
     of Borrower's  current address.  Unless  otherwise  provided or required by
     law, if there is more than one Borrower,  any notice given by Lender to any
     Borrower is deemed to be notice given to all Borrowers.

     Severability.  If a court of competent  jurisdiction finds any provision of
     this  Agreement  to  be  illegal,  invalid,  or  unenforceable  as  to  any
     circumstance,  that finding shall not make the offending provision illegal,
     invalid,  or unenforceable as to any other circumstance.  If feasible,  the
     offending  provision shall be considered modified so that it becomes legal,
     valid and enforceable. If the offending provision cannot be so modified, it
     shall be considered deleted from this Agreement.  Unless otherwise required
     by law, the illegality, invalidity, or unenforceability of any provision of
     this Agreement shall not affect the legality, validity or enforceability of
     any other provision of this Agreement.

     Subsidiaries  and Affiliates of Borrower.  To the extent the context of any
     provisions  of this  Agreement  makes  it  appropriate,  including  without
     limitation any representation, warranty or covenant, the word "Borrower" as
     used in this  Agreement  shall include all of Borrower's  subsidiaries  and
     affiliates.  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  of  Borrower's  subsidiaries  or
     affiliates.

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

     Survival of Representations and Warranties. Borrower understands and agrees
     that in making  Loan  Advances,  Lender is relying on all  representations,
     warranties,  and  covenants  made by Borrower in this  Agreement  or in any
     certificate or other instrument  delivered by Borrower to Lender under this
     Agreement or the Related Documents. Borrower further agrees that regardless
     of any investigation made by Lender, all such  representations,  warranties
     and  covenants  will  survive the making of Loan  Advances  and delivery to
     Lender of the Related  Documents,  shall be continuing in nature,  shall be
     deemed made and redated by Borrower at the time each Loan  Advance is made,
     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.
<PAGE>
   Loan No: 26                                                      Page 4

                            BUSINESS LOAN AGREEMENT
                                  (Continued)

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

     See Addendum.

DEFINITIONS.  The following capitalized words and terms shall have the following
meanings  when  used  in  this  Agreement.  Unless  specifically  stated  to the
contrary, all references to dollar amounts shall mean amounts in lawful money of
the United States of America. Words and terms used in the singular shall include
the  plural,  and the plural  shall  include  the  singular,  as the context may
require.  Words and terms not otherwise defined in this Agreement shall have the
meanings  attributed to such terms in the Uniform  Commercial  Code.  Accounting
words and terms not otherwise  defined in this Agreement shall have the meanings
assigned to them in accordance with generally accepted accounting  principles as
in effect on the date of this Agreement:

     Advance.  The word "Advance" means a disbursement of Loan funds made, or to
     be made,  to  Borrower  or on  Borrower's  behalf  on a line of  credit  or
     multiple advance basis under the terms and conditions of this Agreement.

     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 addendum exhibits and schedules attached to this Business
     Loan Agreement from time to time.

     Borrower.  The word "Borrower" means MacTarnahan Limited  Partnership,  and
     all other persons and entities signing the Note in whatever capacity.

     Environmental Laws. The words  "Environmental Laws" mean any and all state,
     federal and local  statutes,  regulations  and  ordinances  relating to the
     protection of human health or the environment, including without limitation
     the Comprehensive Environmental Response,  Compensation,  and Liability Act
     of 1980,  as amended,  42 U.S.C.  Section  9601,  et seq.  ("CERCLA"),  the
     Superfund  Amendments and  Reauthorization  Act of 1986, Pub. L. No. 99-499
     ("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 thereto or intended to protect human health or
     the environment.

     Event of Default.  The words  "Event of Default"  mean any of the events of
     default  set  forth  in  this  Agreement  in the  default  section  of this
     Agreement.

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

     Guarantor.   The  word  "Guarantor"   means  any  guarantor,   surety,   or
     accommodation party of any or all of the Loan.

     Guaranty.  The word "Guaranty" means the guaranty from Guarantor to Lender,
     including without limitation a guaranty of all or part of the Note.

     Hazardous Substances. The words "Hazardous Substances" mean materials that,
     because  of  their  quantity,   concentration  or  physical,   chemical  or
     infectious characteristics, may cause or pose a present or potential hazard
     to human health or the environment when improperly used,  treated,  stored,
     disposed of, generated, manufactured, transported or otherwise handled. The
     words  "Hazardous  Substances"  are used in their very  broadest  sense and
     include  without  limitation  any and all  hazardous  or toxic  substances,
     materials  or waste as defined by or listed under the  Environmental  Laws.
     The  term  "Hazardous   Substances"  also  includes,   without  limitation,
     petroleum and petroleum by-products or any fraction thereof and asbestos.

     Indebtedness.  The word "Indebtedness" means the indebtedness  evidenced by
     the  Note or  Related  Documents,  including  all  principal  and  interest
     together  with all other  indebtedness  and costs  and  expenses  for which
     Borrower is  responsible  under this  Agreement or under any of the Related
     Documents.

     Lender.  The word "Lender" means  Washington  Mutual Bank dba Western Bank,
     its successors and assigns.

     Loan. The word "Loan" means any and all 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 the Note executed by Borrower in the principal
     amount of $1,750,000.00  dated October 17, 2001, together with all renewals
     of, extensions of,  modifications of,  refinancings of,  consolidations of,
     and substitutions for the note or credit agreement.

     Permitted Liens.  The words  "Permitted  Liens" mean (1) liens and security
     interests  securing  Indebtedness owed by Borrower to Lender; (2) liens for
     taxes,  assessments,  or  similar  charges  either  not  yet  due or  being
     contested in good faith; (3) 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;  (4) 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";  (5) liens and  security  interests  which,  as of the date of this
     Agreement,  have been  disclosed  to and approved by the Lender in writing;
     and  (6)  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. See Addendum.

     Related Documents. The words "Related Documents" mean all promissory notes,
     credit agreements, loan agreements,  environmental agreements,  guaranties,
     security agreements,  mortgages, deeds of trust, security deeds, collateral
     mortgages, and all other instruments, agreements and documents, whether now
     or hereafter existing, executed in connection with the Loan.

UNDER OREGON LAW, MOST AGREEMENTS,  PROMISES AND COMMITMENTS MADE BY US (LENDER)
AFTER OCTOBER 3, 1989 CONCERNING LOANS AND OTHER CREDIT EXTENSIONS WHICH ARE NOT
FOR PERSONAL,  FAMILY OR HOUSEHOLD  PURPOSES OR SECURED SOLELY BY THE BORROWER'S
RESIDENCE MUST BE IN WRITING,  EXPRESS  CONSIDERATION  AND BE SIGNED BY US TO BE
ENFORCEABLE.

BORROWER  ACKNOWLEDGES  HAVING READ ALL THE  PROVISIONS  OF THIS  BUSINESS  LOAN
AGREEMENT AND BORROWER  AGREES TO ITS TERMS.  THIS  BUSINESS  LOAN  AGREEMENT IS
DATED OCTOBER 17, 2001.

BORROWER:


MACTARNAHAN LIMITED PARTNERSHIP


HARMER MILL & LOGGING SUPPLY CO., Partner of MacTarnahan Limited Parnership


By:
    Robert M. MacTarnahan, President of Harmer Mill &
    Logging Supply Co.



LENDER:


WASHINGTON MUTUAL BANK DBA WESTERN BANK


By:
    Authorized Signer

<PAGE>
                       ADDENDUM TO BUSINESS LOAN AGREEMENT



         This ADDENDUM TO BUSINESS LOAN AGREEMENT is attached to and by this
reference is made a part of the Business Loan Agreement dated October 17, 2001,
and executed in connection with a loan or other financial accommodations between
Washington Mutual Bank doing business as Western Bank and MacTarnahan Limited
Partnership. To the extent there is an inconsistency between this Addendum and
the Business Loan Agreement, this Addendum will control.

AFFIRMATION COVENANTS:

         TAXES, CHARGES AND LIENS. 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.

RIGHT OF SETOFF. Lender shall not have a security interest in, nor shall Lender
set off against amounts due under this agreement, the sums in any account of
Borrower maintained with Lender.

DEFAULT. Notwithstanding the foregoing, Borrower will not be in default as
provided unless and until (a) Lender gives to Borrower written notice of the
alleged default specifying that the default be cured within the time allowed by
this Business Loan Agreement, and (b) Borrower fails to cure the alleged default
within such time period. With respect to a failure to make a payment hereunder,
the amount of time allowed to cure the default shall be ten days following such
written notice from Lender. With respect to any other default, the amount of
time allowed for cure shall be 30 days following written notice of default;
provided, however, in the event a default reasonably requires more than 30 days
for cure, Borrower shall not be deemed in default so long as Borrower commences
cure within such 30-day period and thereafter diligently pursues cure to
completion.

Addendum agreed to:

WASHINGTON MUTUAL Bank DBA WESTERN BANK initial _______

MACTARNAHAN LIMITED PARTNERSHIP initial _______

<PAGE>

                        CORPORATE RESOLUTION TO GUARANTEE

--------------------------------------------------------------------------------
Principal     Loan Date  Maturity  Loan No Call / Coll Account Officer Initials
$1,750,000.00 10-17-2001 11-01-2003    26   599 / 990              610
--------------------------------------------------------------------------------
References  in the shaded  area are for  Lender's  use only and do not limit the
applicability of this document to any particular loan or item.
Any item above containing "***" has been omitted due to text length limitations.
--------------------------------------------------------------------------------
Borrower:                         Lender:
MacTarnahan Limited Partnership   Washington Mutual Bank dba Western Bank
11416 SW Lynnridge Avenue         Beaverton Business Banking Center
Portland, OR  97225               12655 SW Center Street, Suite 500
                                  Beaverton, OR  97005

Corporation:  Harmer Mill & Logging Supply Co.
              11416 SW Lynnridge Avenue
              Portland, OR  97225

================================================================================

THE UNDERSIGNED, DOES HEREBY CERTIFY THAT:

THE CORPORATION'S EXISTENCE. The complete and correct name of the Corporation is
Harmer Mill & Logging Supply Co. ("Corporation"). The Corporation is a
corporation for profit which is, and at all times shall be, duly organized and
validly existing, under and by virtue of the laws of the State of Oregon. The
Corporation is duly authorized to transact business in all other states in which
the Corporation is doing business, having obtained all necessary filings,
governmental licenses and approvals for each state in which the Corporation is
doing business. Specifically, the Corporation is, and at all times shall be,
duly qualified as a foreign corporation in all states in which the failure to so
qualify would have a material adverse effect on its business or financial
condition. The Corporation has the full power and authority to own its
properties and to transact the business in which it is presently engaged or
presently proposes to engage. The Corporation maintains an office at 11416 SW
Lynnridge Avenue, Portland, OR 97225. Unless the Corporation has designated
otherwise in writing, the principal office is the office at which the
Corporation keeps its books and records. The Corporation will notify Lender
prior to any change in the location of the Corporation's state of organization
or any change in the Corporation's name. The Corporation shall do all things
necessary to preserve and to keep in full force and effect its existence, rights
and privileges, and shall comply with all regulations, rules, ordinances,
statutes, orders and decrees of any governmental or quasi-governmental authority
or court applicable to the Corporation and the Corporation's business
activities.

RESOLUTIONS ADOPTED. At a meeting of the Directors of the Corporation, or if the
Corporation is a close corporation having no Board of Directors then at a
meeting of the Corporation's shareholders, duly called and held on October 17,
2001, at which a quorum was present and voting, or by other duly authorized
action in lieu of a meeting, the resolutions set forth in this Resolution were
adopted.

OFFICER.  The  following  named  person is an officer  of Harmer  Mill & Logging
Supply Co.:

    NAMES                   TITLES      AUTHORIZED        ACTUAL SIGNATURES
    -----                   ------      ----------        -----------------

    Robert M. MacTarnahan   President         Y        X________________________

ACTIONS AUTHORIZED. The authorized person listed above may enter into any
agreements of any nature with Lender, and those agreements will bind the
Corporation. Specifically, but without limitation, the authorized person is
authorized, empowered, and directed to do the following for and on behalf of the
Corporation:

         Guaranty. To guarantee or act as surety for loans or other financial
         accommodations to Borrower from Lender on such guarantee or surety
         terms as may be agreed upon between the officer of the Corporation and
         Lender and in such sum or sums of money as in his or her judgment
         should be guaranteed or assured, not exceeding, however, at any one
         time the amount of One Million Seven Hundred Fifty Thousand & 00/100
         Dollars ($1,750,000.00), in addition to such sum or sums of money as
         the Corporation currently may have guaranteed to Lender (the
         "Guaranty").

         Execute Security Documents. To execute and deliver to Lender the forms
         of mortgage, deed of trust, pledge agreement, hypothecation agreement,
         and other security agreements and financing statements which Lender may
         require and which shall evidence the terms and conditions under and
         pursuant to which such liens and encumbrances, or any of them, are
         given; and also to execute and deliver to Lender any other written
         instruments, any chattel paper, or any other collateral, of any kind or
         nature, which Lender may deem necessary or proper in connection with or
         pertaining to the giving of the liens and encumbrances.

         Further Acts. To do and perform such other acts and things and to
         execute and deliver such other documents and agreements as the officer
         may in his or her discretion deem reasonably necessary or proper in
         order to carry into effect the provisions of this Resolution.

ASSUMED BUSINESS NAMES. The Corporation has filed or recorded all documents or
filings required by law relating to all assumed business names used by the
Corporation. Excluding the name of the Corporation, the following is a complete
list of all assumed business names under which the Corporation does business:

         Assumed Business Name                     Filing Location
         Harmer Co.                                Salem, Oregon


NOTICES TO LENDER. The Corporation will promptly notify Lender in writing at
Lender's address shown above (or such other addresses as Lender may designate
from time to time) prior to any (A) change in the Corporation's name; (B) change
in the Corporation's assumed business name(s); (C) change in the management of
the Corporation; (D) change in the authorized signer(s); (E) change in the
Corporation's principal office address; (F) change in the Corporation's state of
organization; (G) conversion of the Corporation to a new or different type of
business entity; or (H) change in any other aspect of the Corporation that
directly or indirectly relates to any agreements between the Corporation and
Lender. No change in the Corporation's name or state of organization will take
effect until after Lender has received notice

ADDITIONAL ACTIONS AUTHORIZED - INTEREST RATE SWAP PROVISIONS. To enter into any
interest rate swaps, interest rate caps, interest rate floors, interest rate
collars, Treasury locks, Treasury caps, Treasury floors, Treasury collars,
barrier options, forward rate agreements, cross currency swaps, cross currency
caps, cross currency floors, cross currency collars, foreign exchange forward
contracts, options on any of the foregoing, and combinations of any of the
foregoing, with the Lender (each a "Swap Transaction"), to take all steps
necessary to effectuate and perform such Swap Transaction, including but not
limited to the execution and delivery to Lender an of an ISDA Master Agreement,
together with any and all exhibits and annexes thereto as may be requested by
Lender, the execution and delivery of confirmations of such Swap Transactions,
and the execution and delivery of all documents or agreements required pursuant
to any of the foregoing; to mortgage, pledge, transfer, endorse, hypothecate, or
otherwise encumber and deliver to lender any property now or hereafter belonging
to the Corporation or in which the Corporation now or hereafter may have an

<PAGE>
  Loan No: 26                                                      Page 2

                       CORPORATE RESOLUTION TO GUARANTEE
                                  (Continued)

interest, including without limitation all real property and all personal
property (tangible or intangible) of the Corporation, as security for the
payment of any indebtedness of the Corporation to the Lender arising out of a
Swap Transaction, however the same may be evidenced. Such property may be
mortgaged, pledged, transferred, endorsed, hypothecated or encumbered at the
time the Swap Transaction is entered into, or at any other time or times, and
may be either in addition to or in lieu of any property theretofore mortgaged,
pledged, transferred, endorsed, hypothecated or encumbered.

CERTIFICATION CONCERNING OFFICERS AND RESOLUTIONS. The officer named above is
duly elected, appointed, or employed by or for the Corporation, as the case may
be, and occupies the position set opposite his or her respective name. This
Resolution now stands of record on the books of the Corporation, is in full
force and effect, and has not been modified or revoked in any manner whatsoever.

NO CORPORATE SEAL. The Corporation has no corporate seal, and therefore, no seal
is affixed to this Resolution.

CONTINUING VALIDITY. Any and all acts authorized pursuant to this Resolution and
performed prior to the passage of this Resolution are hereby ratified and
approved. This Resolution shall be continuing, shall remain in full force and
effect and Lender may rely on it until written notice of its revocation shall
have been delivered to and received by Lender at Lender's address shown above
(or such addresses as Lender may designate from time to time). Any such notice
shall not affect any of the Corporation's agreements or commitments in effect at
the time notice is given.

IN TESTIMONY WHEREOF, We have hereunto set our hand.

The undersigned has read all the provisions of this Resolution, and on behalf of
the Corporation certifies that all statements and representations made in this
Resolution are true and correct. This Corporate Resolution to Guarantee is dated
October 17, 2001.

               CERTIFIED TO AND ATTESTED BY:

               By:
               Authorized Signer for Harmer Mill & Logging Supply Co.


<PAGE>

                            PARTNERSHIP AUTHORIZATION

--------------------------------------------------------------------------------
Principal     Loan Date  Maturity  Loan No  Call / Coll Account Officer Initials
$1,750,000.00 10-17-2001 11-01-2003   26     599 / 990             610
--------------------------------------------------------------------------------
applicability of this document to any particular loan or item.
Any item above containing "***" has been omitted due to text length limitations.
--------------------------------------------------------------------------------
Partnership:                      Lender:
MacTarnahan Limited Partnership   Washington Mutual Bank dba Western Bank
11416 SW Lynnridge Avenue         Beaverton Business Banking Center
Portland, OR  97225               12655 SW Center Street, Suite 500
                                  Beaverton, OR  97005

================================================================================

IN CONSIDERATION OF the existing or proposed lending or banking relationship
between MacTarnahan Limited Partnership ("the Partnership") and Washington
Mutual Bank dba Western Bank ("Lender"), the persons signing below jointly and
severally and on behalf of the Partnership represent and certify to Lender that:

THE PARTNERSHIP'S EXISTENCE. The complete and correct name of the Partnership is
MacTarnahan Limited Partnership ("Partnership"). The Partnership is a limited
partnership which is, and at all times shall be, formed under and by virtue of
the laws of the State of Oregon. The Partnership is duly authorized to transact
business in all other states in which the Partnership is doing business, having
obtained all necessary filings, governmental licenses and approvals for each
state in which the Partnership is doing business. Specifically, the Partnership
is, and at all times shall be, duly qualified as a foreign limited partnership
in all states in which the failure to so qualify would have a material adverse
effect on its business or financial condition. The Partnership has the full
power and authority to own its properties and to transact the business in which
it is presently engaged or presently proposes to engage. The Partnership
maintains an office at 11416 SW Lynnridge Avenue, Portland, OR 97225. Unless the
Partnership has designated otherwise in writing, the principal office is the
office at which the Partnership keeps its books and records. The Partnership
will notify Lender prior to any change in the location of the Partnership's
principal office address or any change in the Partnership's name. The
Partnership shall do all things necessary to preserve and to keep in full force
and effect its existence, rights and privileges, and shall comply with all
regulations, rules, ordinances, statutes, orders and decrees of any governmental
or quasi-governmental authority or court applicable to the Partnership and the
Partnership's business activities.

AUTHORIZATIONS ADOPTED. At a meeting of the partners of the Partnership, duly
called and held on October 17, 2001, or by other duly authorized action in lieu
of a meeting, the agreements and authorizations set forth in this Authorization
were adopted.

PARTNER.  The  following  named  entity  is a  partner  of  MacTarnahan  Limited
Partnership:

   NAMES                           TITLES    AUTHORIZED        ACTUAL SIGNATURES
   -----                           ------    ----------        -----------------
   Harmer Mill & Logging Supply
   Co.                             General       Y         X____________________
                                   Partner

ACTIONS AUTHORIZED. The authorized entity listed above may enter into any
agreements of any nature with Lender, and those agreements will bind the
Partnership. Specifically, but without limitation, the authorized entity is
authorized, empowered, and directed to do the following for and on behalf of the
Partnership:

         Borrow Money. To borrow, as a cosigner or otherwise, from time to time
         from Lender, on such terms as may be agreed upon between the
         Partnership and Lender, such sum or sums of money as in its judgment
         should be borrowed; however, not exceeding at any one time the amount
         of One Million Seven Hundred Fifty Thousand & 00/100 Dollars
         ($1,750,000.00), in addition to such sum or sums of money as may be
         currently borrowed by the Partnership from Lender.

         Execute Notes. To execute and deliver to Lender the promissory note or
         notes, or other evidence of the Partnership's credit accommodations, on
         Lender's forms, at such rates of interest and on such terms as may be
         agreed upon, evidencing the sums of money so borrowed or any of the
         Partnership's indebtedness to Lender, and also to execute and deliver
         to Lender one or more renewals, extensions, modifications,
         refinancings, consolidations, or substitutions for one or more of the
         notes, any portion of the notes, or any other evidence of credit
         accommodations.

         Grant Security. To mortgage, pledge, transfer, endorse, hypothecate, or
         otherwise encumber and deliver to Lender any property now or hereafter
         belonging to the Partnership or in which the Partnership now or
         hereafter may have an interest, including without limitation all real
         property and all personal property (tangible or intangible) of the
         Partnership, as security for the payment of any loans or credit
         accommodations so obtained, any promissory notes so executed (including
         any amendments to or modifications, renewals, and extensions of such
         promissory notes), or any other or further indebtedness of the
         Partnership to Lender at any time owing, however the same may be
         evidenced. Such property may be mortgaged, pledged, transferred,
         endorsed, hypothecated or encumbered at the time such loans are
         obtained or such indebtedness is incurred, or at any other time or
         times, and may be either in addition to or in lieu of any property
         theretofore mortgaged, pledged, transferred, endorsed, hypothecated or
         encumbered.

         Execute Security Documents. To execute and deliver to Lender the forms
         of mortgage, deed of trust, pledge agreement, hypothecation agreement,
         and other security agreements and financing statements which Lender may
         require and which shall evidence the terms and conditions under and
         pursuant to which such liens and encumbrances, or any of them, are
         given; and also to execute and deliver to Lender any other written
         instruments, any chattel paper, or any other collateral, of any kind or
         nature, which Lender may deem necessary or proper in connection with or
         pertaining to the giving of the liens and encumbrances.

         Negotiate Items. To draw, endorse, and discount with Lender all drafts,
         trade acceptances, promissory notes, or other evidences of indebtedness
         payable to or belonging to the Partnership or in which the Partnership
         may have an interest, and either to receive cash for the same or to
         cause such proceeds to be credited to the Partnership's account with
         Lender, or to cause such other disposition of the proceeds derived
         therefrom as it may deem advisable.

         Further Acts. In the case of lines of credit, to designate additional
         or alternate individuals as being authorized to request advances under
         such lines, and in all cases, to do and perform such other acts and
         things, to pay any and all fees and costs, and to execute and deliver
         such other documents and agreements as the partner may in its
         discretion deem reasonably necessary or proper in order to carry into
         effect the provisions of this Authorization. The following persons
         currently are authorized to request advances and authorize payments
         under the line of credit until Lender receives from the Partnership, at
         Lender's address shown above, written notice of revocation of their
         authority: Robert M. MacTarnahan, President of Harmer Mill & Logging
         Supply Co.; and Scott MacTarnahan.

ASSUMED BUSINESS NAMES. The Partnership has filed or recorded all documents or
filings required by law relating to all assumed business names used by the
Partnership. Excluding the name of the Partnership, the following is a complete
list of all assumed business names under which the Partnership does business:
None.
<PAGE>
  Loan No:26                                                     Page 2

                            PARTNERSIP AUTHORIZATION
                                  (Continued)
JOINT AND SEVERAL LIABILITY. Each partner agrees to be jointly and severally
liable for all of the Partnership's present and future obligations to Lender;
however, any limited partners listed above and identified as such will not be
liable individually beyond its interest in the Partnership plus any liability
created under applicable law or under any other agreements with Lender (such as
a guaranty). We represent and warrant to Lender that the Partnership's
agreements with Lender, including the borrowing of monies, do not conflict with,
result in a violation of, or constitute a default under any agreement or other
instrument with any limited partner of the Partnership; and we agree to
indemnify and hold Lender harmless from all claims, costs and expenses relating
in any way to any such conflict, violation or default.

NOTICES TO LENDER. The Partnership will promptly notify Lender in writing at
Lender's address shown above (or such other addresses as Lender may designate
from time to time) prior to any (A) change in the Partnership's name; (B) change
in the Partnership's assumed business name(s); (C) change in the partners of the
Partnership, including the addition of new partners or the departure of current
partners from the Partnership; (D) change in the authorized signer(s); (E)
change in the Partnership's principal office address; (F) change in the
Partnership's state of organization; (G) conversion of the Partnership to a new
or different type of business entity; or (H) change in any other aspect of the
Partnership that directly or indirectly relates to any agreements between the
Partnership and Lender. No change in the Partnership's name, state or
organization, or principal office address will take effect until after Lender
has received notice.

ADDITIONAL ACTIONS AUTHORIZED - INTEREST RATE SWAP PROVISIONS. To enter into any
interest rate swaps, interest rate caps, interest rate floors, interest rate
collars, Treasury locks, Treasury caps, Treasury floors, Treasury collars,
barrier options, forward rate agreements, cross currency swaps, cross currency
caps, cross currency floors, cross currency collars, foreign exchange forward
contracts, options on any of the foregoing, and combinations of any of the
foregoing, with the Lender (each a "Swap Transaction"), to take all steps
necessary to effectuate and perform such Swap Transaction, including but not
limited to the execution and delivery to Lender an of an ISDA Master Agreement,
together with any and all exhibits and annexes thereto as may be requested by
Lender, the execution and delivery of confirmations of such Swap Transactions,
and the execution and delivery of all documents or agreements required pursuant
to any of the foregoing; to mortgage, pledge, transfer, endorse, hypothecate, or
otherwise encumber and deliver to lender any property now or hereafter belonging
to the Partnership or in which the Partnership now or hereafter may have an
interest, including without limitation all real property and all personal
property (tangible or intangible) of the Partnership, as security for the
payment of any indebtedness of the Partnership to the Lender arising out of a
Swap Transaction, however the same may be evidenced. Such property may be
mortgaged, pledged, transferred, endorsed, hypothecated or encumbered at the
time the Swap Transaction is entered into, or at any other time or times, and
may be either in addition to or in lieu of any property theretofore mortgaged,
pledged, transferred, endorsed, hypothecated or encumbered.

CERTIFICATION CONCERNING PARTNERS AND AUTHORIZATIONS. The partner named above is
duly elected, appointed, or employed by or for the Partnership, as the case may
be, and occupies the position set opposite its respective name. This
Authorization now stands of record on the books of the Partnership, is in full
force and effect, and has not been modified or revoked in any manner whatsoever.

CONTINUING VALIDITY. Any and all acts authorized pursuant to this Authorization
and performed prior to the passage of this Authorization are hereby ratified and
approved. This Authorization shall be continuing, shall remain in full force and
effect and Lender may rely on it until written notice of its revocation shall
have been delivered to and received by Lender at Lender's address shown above
(or such addresses as Lender may designate from time to time). Any such notice
shall not affect any of the Partnership's agreements or commitments in effect at
the time notice is given.

IN TESTIMONY WHEREOF, We have hereunto set our hand.

The undersigned has read all the provisions of this Authorization, and on behalf
of the Partnership certifies that all statements and representations made in
this Authorization are true and correct. This Partnership Authorization is dated
October 17, 2001.

                         CERTIFIED TO AND ATTESTED BY:

                         Harmer Mill & Logging Supply Co., General Partner

                         By:_______________________________
                               Authorized Signer



NOTE: If the partner signing this Authorization is designated by the foregoing
document as one of the partners authorized to act on the Partnership's behalf,
it is advisable to have this Authorization signed by at least one non-authorized
partner of the Partnership.

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


                         RESOLUTION OF CORPORATE PARTNER

--------------------------------------------------------------------------------
Principal     Loan Date  Maturity  Loan No  Call / Coll Account Officer Initials
$1,750,000.00 10-17-200  11-01-2003   26     599 / 990            610
--------------------------------------------------------------------------------
References  in the shaded  area are for  Lender's  use only and do not limit the
applicability of this document to any particular loan or item.
Any item above containing "***" has been omitted due to text length limitations.
--------------------------------------------------------------------------------
Borrower:                         Lender:
MacTarnahan Limited Partnership   Washington Mutual Bank dba Western Bank
11416 SW Lynnridge Avenue         Beaverton Business Banking Center
Portland, OR  97225               12655 SW Center Street, Suite 500
                                  Beaverton, OR  97005
Corporation:
Harmer Mill & Logging Supply Co.
11416 SW Lynnridge Avenue
Portland, OR  97225

================================================================================

THE UNDERSIGNED, DOES HEREBY CERTIFY THAT:

THE CORPORATION'S EXISTENCE. The complete and correct name of the Corporation is
Harmer Mill & Logging Supply Co. ("Corporation"). The Corporation is a
corporation for profit which is, and at all times shall be, duly organized and
validly existing, by virtue of the laws of the State of Oregon. The Corporation
is duly authorized to transact business in all other states in which the
Corporation is doing business, having obtained all necessary filings,
governmental licenses and approvals for each state in which the Corporation is
doing business. Specifically, the Corporation is, and at all times shall be,
duly qualified as a foreign corporation in all states in which the failure to so
qualify would have a material adverse effect on its business or financial
condition. The Corporation has the full power and authority to own its
properties and to transact the business in which it is presently engaged or
presently proposes to engage. The Corporation maintains an office at 11416 SW
Lynnridge Avenue, Portland, OR 97225. Unless the Corporation has designated
otherwise in writing, the principal office is the office at which the
Corporation keeps its books and records. The Corporation will notify Lender
prior to any change in the location of the Corporation's state of organization
or any change in the Corporation's name. The Corporation shall do all things
necessary to preserve and to keep in full force and effect its existence, rights
and privileges, and shall comply with all regulations, rules, ordinances,
statutes, orders and decrees of any governmental or quasi-governmental authority
or court applicable to the Corporation and the Corporation's business
activities.

RELATIONSHIP TO BORROWER AND GRANTOR. The Corporation is a Partner in
MacTarnahan Limited Partnership. MacTarnahan Limited Partnership has applied or
will be applying to Washington Mutual Bank dba Western Bank ("Lender") for a
loan or loans and other financial accommodations from Lender and has agreed to
grant collateral for a loan or loans and other financial accommodations from
Lender to MacTarnahan Limited Partnership, including those which may be
described on any exhibit or schedule attached to this Resolution. The
Corporation has considered the value to itself of MacTarnahan Limited
Partnership obtaining the financial accommodations described above and granting
the collateral.

AUTHORIZATION TO BE A PARTNER. The Corporation is authorized to be and become a
Partner in the Partnership named MacTarnahan Limited Partnership, whose office
is at 11416 SW Lynnridge Avenue, Portland, OR 97225.

RESOLUTIONS ADOPTED. At a meeting of the Directors of the Corporation, or if the
Corporation is a close corporation having no Board of Directors then at a
meeting of the Corporation's shareholders, duly called and held on October 17,
2001, at which a quorum was present and voting, or by other duly authorized
action in lieu of a meeting, the resolutions set forth in this Resolution were
adopted.

OFFICER. The following named person is an officer of Harmer Mill & Logging
Supply Co.:


         NAMES                  TITLES     AUTHORIZED       ACTUAL SIGNATURES
         -----                  ------     ----------       -----------------

         Robert M. MacTarnahan  President        Y        X_____________________

ACTIONS AUTHORIZED. The authorized person listed above may enter into any
agreements of any nature with Lender, and those agreements will bind the
Corporation. Specifically, but without limitation, the authorized person is
authorized, empowered, and directed to do the following for and on behalf of the
Corporation:

         Execute Documents. To execute and deliver to Lender the form of
         Partnership Authorization and other loan documents submitted by Lender,
         confirming the nature and existence of MacTarnahan Limited Partnership,
         including the Corporation's participation in MacTarnahan Limited
         Partnership as a Partner, and evidencing the terms of the loan from
         Lender to MacTarnahan Limited Partnership.

         Authorize Officers. To authorize other officers or employees of the
         Corporation, from time to time, to act in his or her stead or as his or
         her successors on behalf of the Corporation as Partner in MacTarnahan
         Limited Partnership.

         Further Acts. In the case of lines of credit, to designate additional
         or alternate individuals as being authorized to request advances under
         such lines, and in all cases, to do and perform such other acts and
         things, to pay any and all fees and costs, and to execute and deliver
         such other documents and agreements as the officer may in his or her
         discretion deem reasonably necessary or proper in order to carry into
         effect the provisions of this Resolution. The following persons
         currently are authorized to request advances and authorize payments
         under the line of credit until Lender receives from the Corporation, at
         Lender's address shown above, written notice of revocation of their
         authority: Robert M. MacTarnahan, President of Harmer Mill & Logging
         Supply Co.; and Scott MacTarnahan.

NOTICES TO LENDER. The Corporation will promptly notify Lender in writing at
Lender's address shown above (or such other addresses as Lender may designate
from time to time) prior to any (A) change in the Corporation's name; (B) change
in the Corporation's assumed business name(s); (C) change in the management of
the Corporation; (D) change in the authorized signer(s); (E) change in the
Corporation's principal office address; (F) change in the Corporation's state of
organization; (G) conversion of the Corporation to a new or different type of
business entity; or (H) change in any other aspect of the Corporation that
directly or indirectly relates to any agreements between the Corporation and
Lender. No change in the Corporation's name or state of organization will take
effect until after Lender has received notice

ADDITIONAL ACTIONS AUTHORIZED - INTEREST RATE SWAP PROVISIONS. To enter into any
interest rate swaps, interest rate caps, interest rate floors, interest rate
collars, Treasury locks, Treasury caps, Treasury floors, Treasury collars,
barrier options, forward rate agreements, cross currency swaps, cross currency
caps, cross currency floors, cross currency collars, foreign exchange forward
contracts, options on any of the foregoing, and combinations of any of the
foregoing, with the Lender (each a "Swap Transaction"), to take all steps
necessary to effectuate and perform such Swap Transaction, including but not
limited to the execution and delivery to Lender an of an ISDA Master Agreement,
together with any and all exhibits and annexes thereto as may be requested by
Lender, the execution and delivery of confirmations of such Swap Transactions,
and the execution and delivery of all documents or
<PAGE>
  Loan No: 26                                                    Page 2

                        RESOLUTION OF CORPORATE PARTNER
                                  (Continued)

agreements required pursuant to any of the foregoing; to mortgage, pledge,
transfer, endorse, hypothecate, or otherwise encumber and deliver to lender any
property now or hereafter belonging to the Corporation or in which the
Corporation now or hereafter may have an interest, including without limitation
all real property and all personal property (tangible or intangible) of the
Corporation, as security for the payment of any indebtedness of the Corporation
to the Lender arising out of a Swap Transaction, however the same may be
evidenced. Such property may be mortgaged, pledged, transferred, endorsed,
hypothecated or encumbered at the time the Swap Transaction is entered into, or
at any other time or times, and may be either in addition to or in lieu of any
property theretofore mortgaged, pledged, transferred, endorsed, hypothecated or
encumbered.

PARTICIPATION AUTHORIZED. The Corporation's participation in MacTarnahan Limited
Partnership as a Partner and the execution, delivery, and performance of the
documents described herein have been duly authorized by all necessary action by
the Corporation and do not conflict with, result in a violation of, or
constitute a default under (A) any provision of its articles of incorporation,
bylaws, or any agreement or other instrument binding upon the Corporation or (B)
any law, governmental regulation, court decree, or order applicable to the
Corporation.

CERTIFICATION CONCERNING OFFICERS AND RESOLUTIONS. The officer named above is
duly elected, appointed, or employed by or for the Corporation, as the case may
be, and occupies the position set opposite his or her respective name. This
Resolution now stands of record on the books of the Corporation, is in full
force and effect, and has not been modified or revoked in any manner whatsoever.

NO CORPORATE SEAL. The Corporation has no corporate seal, and therefore, no seal
is affixed to this Resolution.

CONTINUING VALIDITY. Any and all acts authorized pursuant to this Resolution and
performed prior to the passage of this Resolution are hereby ratified and
approved. This Resolution shall be continuing, shall remain in full force and
effect and Lender may rely on it until written notice of its revocation shall
have been delivered to and received by Lender at Lender's address shown above
(or such addresses as Lender may designate from time to time). Any such notice
shall not affect any of the Corporation's agreements or commitments in effect at
the time notice is given.

IN TESTIMONY WHEREOF, We have hereunto set our hand.

The undersigned has read all the provisions of this Resolution, and on behalf of
the Corporation certifies that all statements and representations made in this
Resolution are true and correct. This Resolution of Corporate Partner is dated
October 17, 2001.

                          CERTIFIED TO AND ATTESTED BY:

                          By:_________________________________________________
                          Authorized Signer for Harmer Mill & Logging Supply Co.


================================================================================