SEAFIRST BANK

                             BUSINESS LOAN AGREEMENT

                                     PART B

1.     PROMISSORY NOTE(s). All loans shall be evidenced by promissory notes in a
       form and substance satisfactory to Bank.

2.     CONDITIONS TO AVAILABILITY OF LOAN/LINE OF CREDIT. Before Bank is
       obligated to disburse/make any advance, or at any time thereafter which
       Bank deems necessary and appropriate, Bank must receive all of the
       following, each of which must be in form and substance satisfactory to
       Bank ("loan documents"):

        2.1     Original, executed promissory note(s);

        2.2     Original executed security agreement(s) and/or deed(s) of trust
                covering the collateral described in Part A;

        2.3     All collateral described in Part A in which Bank wishes to have
                a possessory security interest;

        2.4     Financing statement(s) executed by Borrower;

        2.5     Such evidence that Bank may deem appropriate that the security
                interests and liens in favor of Bank are valid, enforceable, and
                prior to the rights and interests of others except those
                consented to in writing by Bank;

        2.6     The following guaranty(ies) in favor of the Bank:
                ______________________;

        2.7     Subordination agreement(s) in favor of Bank executed by:
                __________________;

        2.8     Evidence that the execution, delivery, and performance by
                Borrower of this Agreement and the execution, delivery, and
                performance by Borrower and any corporate guarantor or corporate
                subordinating creditor of any instrument or agreement required
                under this Agreement, as appropriate, have been duly authorized;

        2.9     Any other document which is deemed by the Bank to be required
                from time to time to evidence loans or to effect the provisions
                of this Agreement;

       2.10     If requested by Bank, a written legal opinion expressed to Bank,
                of counsel for Borrower as to the matters set forth in sections
                3.1 and 3.2, and to the best of such counsel's knowledge after
                reasonable investigation, the matters set forth in sections 3.3,
                3.5, 3.6, 3.7, 3.9 and such other matters as the Bank may
                reasonably request;

       2.11     Pay or reimburse Bank for any out-of-pocket expenses expended in
                making or administering the loans made hereunder including
                without limitation attorney's fees (including allocated costs of
                in-house counsel); and

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       2.12     Other (describe):
                ___________________________________________________________

3.     REPRESENTATIONS AND WARRANTIES. Borrower represents and warrants to Bank,
       except as Borrower has disclosed to Bank in writing, as of the date of
       this Agreement and hereafter so long as credit granted under this
       Agreement is available and until full and final payment of all sums
       outstanding under this Agreement and promissory notes that:

       3.1      Borrower is duly organized and existing under the laws of the
                state of its organization as a:

                                                                       Sole
                                              General      Limited   Proprietor-
                 [X] Corporation            Partnership  Partnership ship dba
                     LLC with Duration of   ____________________________________

                Borrower is properly licensed and in good standing in each state
                in which Borrower is doing business and Borrower has qualified
                under, and complied with, where required, the fictitious or
                trade name statutes of each state in which Borrower is doing
                business, and Borrower has obtained all necessary government
                approvals for its business activities; the execution, delivery,
                and performance of this Agreement and such notes and other
                instruments required herein are within Borrower's powers, have
                been duly authorized, and, as to Borrower and any guarantor, are
                not in conflict with the terms of any charter, bylaw, or other
                organization papers of Borrower, and this Agreement, such notes
                and the loan documents are valid and enforceable according to
                their terms;

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        3.2     The execution, delivery, and performance of this Agreement, the
                loan documents and any other instruments are not in conflict
                with any law or any indenture, agreement or undertaking to which
                Borrower is a party or by which Borrower is bound or affected;

        3.3     Borrower has title to each of the properties and assets as
                reflected in its financial statements (except such assets which
                have been sold or otherwise disposed of in the ordinary course
                of business), and no assets or revenues of the Borrower are
                subject to any lien except as required or permitted by this
                Agreement, disclosed in its financial statements or otherwise
                previously disclosed to Bank in writing;

        3.4     All financial information, statements as to ownership of
                Borrower and all other statements submitted by Borrower to Bank,
                whether previously or in the future, are and will be true and
                correct in all material respects upon submission and are and
                will be complete upon submission insofar as may be necessary to
                give Bank a true and accurate knowledge of the subject matter
                thereof;

        3.5     Borrower has filed all tax returns and reports as required by
                law to be filed and has paid all taxes and assessments
                applicable to Borrower or to its properties which are presently
                due and payable, except those being contested in good faith;

        3.6     There are no proceedings, litigation or claims (including unpaid
                taxes) against Borrower pending or, to the knowledge of the
                Borrower, threatened, before any court or government agency, and
                no other event has occurred which may have a material adverse
                effect on Borrower's financial condition;

        3.7     There is no event which is, or with notice or lapse of time, or
                both, would be, an Event of Default (as defined in Section 7)
                under this Agreement;

        3.8     Borrower has developed and budgeted for a comprehensive program
                to address the "Year 2000 problem" (that is, the inability of
                computers, as well as embedded microchips in non-computing
                devices, to perform properly date-sensitive functions with
                respect to certain dates prior to and after December 31, 1999).
                Borrower has implemented that program substantially in
                accordance with its timetable and budget and [reasonably
                anticipates that] it will substantially avoid the Year 2000
                problem as to all computers, as well as embedded microchips in
                non-computing devices, that are material to Borrower's business,
                properties or operations. Borrower has developed feasible
                contingency plans adequately to ensure uninterrupted and
                unimpaired business operation in the event of failure of its own
                or a third party's systems or equipment due to the Year 2000
                problem, including those of vendors, customers, and suppliers,
                as well as a general failure of or interruption in its
                communications and delivery infrastructure.


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        3.9     Borrower has exercised due diligence in inspecting Borrower's
                properties for hazardous wastes and hazardous substances. Except
                as otherwise previously disclosed and acknowledged to Bank in
                writing: (a) during the period of Borrower's ownership of
                Borrower's properties, there has been no use, generation,
                manufacture, storage, treatment, disposal, release or threatened
                release of any hazardous waste or hazardous substance by any
                person in, on, under or about any of Borrower's properties; (b)
                Borrower has no actual or constructive knowledge that there has
                been any use, generation, manufacture, storage, treatment,
                disposal, release or threatened release of any hazardous waste
                or hazardous substance by any person in, on, under or about any
                of Borrower's properties by any prior owner or occupant of any
                of Borrower's properties; and (c) Borrower has no actual or
                constructive notice of any actual or threatened litigation or
                claims of any kind by any person relating to such matters. The
                terms "hazardous waste(s)," hazardous substance(s)," "disposal,"
                "release," and "threatened release" as used in this Agreement
                shall have the same meanings as set forth in the Comprehensive
                Environmental Response, Compensation, and Liability Act of 1980,
                as amended, 42 U.S.C. Section 9601, et. seq., the Superfund
                Amendments and Reauthorization Act of 1986, as amended, Pub. L.
                No. 99-499, the Hazardous Materials Transportation Act, as
                amended, 49 U.S. C. Section 1801, et. seq., the Resource
                Conservation and Recovery Act, as amended, 49 U.S.C. Section
                6901, et seq., or other applicable state or federal laws, rules
                or regulations adopted pursuant to any of the foregoing; and

        3.10    Each chief place of business of Borrower, and the office or
                offices where Borrower keeps its records concerning any of the
                collateral, is located at: E. 3900 BROADWAY, SPOKANE, WA.

4.     AFFIRMATIVE COVENANTS. So long as credit granted under this Agreement is
       available and until full and final payment of all sums outstanding under
       this Agreement and promissory note(s) Borrower will:

        4.1     Use the proceeds of the loans covered by this Agreement only in
                connection with Borrower's business activities and exclusively
                for the following purposes: _GENERAL CORPORATE PURPOSES;

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        4.2     Maintain current assets in an amount at least equal to 1.50
                times current liabilities, and not less than $1,500,000. Current
                assets and current liabilities shall be determined in accordance
                with generally accepted accounting principles and practices,
                consistently applied;

        4.3     Maintain a tangible net worth of at least $2,400,000 and not
                permit Borrower's total indebtedness which is not subordinated
                in a manner satisfactory to Bank to exceed 2.30 times Borrower's
                tangible net worth. "Tangible net worth" means the excess of
                total assets over total liabilities, excluding, however, from
                the determination of total assets (a) all assets which should be
                classified as intangible assets such as goodwill, patents,
                trademarks, copyrights, franchises, and deferred charges
                (including unamortized debt discount and research and
                development costs), (b) treasury stock, (c) cash held in a
                sinking or other similar fund established for the purpose of
                redemption or other retirement of capital stock, (d) to the
                extent not already deducted from total assets, reserves for
                depreciation, depletion, obsolescence or amortization of
                properties and other reserves or appropriations of retained
                earnings which have been or should be established in connection
                with the business conducted by the relevant corporation, and (e)
                any revaluation or other write-up in book value of assets
                subsequent to the fiscal year of such corporation last ended at
                the date of this Agreement;

        4.4     Upon request Borrower agrees to insure and to furnish Bank with
                evidence of insurance covering the life of Borrower (if an
                individual) or the lives of designated partners or officers of
                Borrower (if a partnership or corporation) in the amounts stated
                below. Borrower shall take such actions as are reasonably
                requested by Bank, such as assigning the insurance policies to
                Bank or naming Bank as beneficiary and obtaining the insurer's
                acknowledgment thereof, to provide that in the event of the
                death of any of the named insured as the policy proceeds will be
                applied to payment of Borrower's obligations owing to Bank;

                Name:   N/A                     Amount:  $
                        -------------------               ---------------------

                Name:   N/A                     Amount:  $
                        -------------------               ---------------------

        4.5     Promptly give written notice to Bank of: (a) all litigation and
                claims made or threatened affecting Borrower where the amount is
                $100,000 or more; (b) any substantial dispute which may exist
                between Borrower and any governmental regulatory body or law
                enforcement authority; (c) any Event of Default under this
                Agreement or any other agreement with Bank or any other creditor

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                or any event which become an Event of Default, and (d) any other
                matter which has resulted or might result in a material adverse
                change in Borrower's financial condition or operations;

        4.6     Borrower shall as soon as available, but in any event within 120
                days following the end of each Borrower's fiscal years and
                within 45 days following the end of each QUARTER provide to
                Bank, in a form satisfactory to Bank (including audited
                statements if required at any time by Bank), such financial
                statements and other information respecting the financial
                condition and operations of Borrower as Bank may reasonably
                request, INCLUDING "QUARTERLY COMPLIANCE CERTIFICATES", AS PER
                THE ATTACHED, AND THE U.S. SECURITIES COMMISSION REPORT 10-K.

        4.7     Borrower will maintain in effect insurance with responsible
                insurance companies in such amounts and against such risks as is
                customarily maintained by persons engaged in businesses similar
                to that of Borrower and all policies covering property given as
                security for the loans shall have loss payable clauses in favor
                of Bank. Borrower agrees to deliver to Bank such evidence of
                insurance as Bank may reasonably require and, within thirty (30)
                days after notice from Bank, to obtain such additional insurance
                with an insurer satisfactory to the Bank;

        4.8     Borrower will pay all indebtedness taxes and other obligations
                for which the Borrower is liable or to which its income or
                property is subject before they shall become delinquent, except
                any which is being contested by the Borrower in good faith;

        4.9     Borrower will continue to conduct its business as presently
                constituted, and will maintain and preserve all rights,
                privileges and franchises now enjoyed, conduct Borrower's
                business in an orderly, efficient and customary manner, keep all
                Borrowers properties in good working order and condition, and
                from time to time make all needed repairs, renewals or
                replacements so that the efficiency of Borrower's properties
                shall be fully maintained and preserved;

        4.10    Borrower will maintain adequate books, accounts and records and
                prepare all financial statements required hereunder in
                accordance with generally accepted accounting principles and
                practices consistently applied, and in compliance with the
                regulations of any governmental regulatory body having
                jurisdiction over Borrower or Borrower's business;

        4.11    Borrower will permit representatives of Bank to examine and make
                copies of the books and records of Borrower and to examine the
                collateral of the Borrower at reasonable times;

        4.12    Borrower will perform, on request of Bank, such acts as may be
                necessary or advisable to perfect any lien or security interest
                provided for herein or otherwise carry out the intent of this
                Agreement;

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        4.13    Borrower will comply with all applicable federal, state and
                municipal laws, ordinances, rules and regulations relating to
                its properties, charters, businesses and operations, including
                compliance with all minimum funding and other requirements
                related to any of Borrower's employee benefit plans;

        4.14    Borrower will permit representatives of Bank to enter onto
                Borrower's properties to inspect and test Borrower's properties
                as Bank, in its sole discretion, may deem appropriate to
                determine Borrower's compliance with section 5.8 of this
                Agreement; provided however, that any such inspections and tests
                shall be for Bank's sole benefit and shall not be construed to
                create any responsibility or liability on the part of Bank to
                Borrower or to any third party.

5.     NEGATIVE COVENANTS. So long as credit granted under this Agreement is
       available and until full and final payment of all sums outstanding under
       this Agreement and promissory note(s):

        5.1     Borrower will not, during any fiscal year, expend or incur in
                the aggregate more than $ N/A for fixed assets, nor more than $
                N/A for any single fixed asset whether or not payable that
                fiscal year or later under any purchase agreement or lease;

        5.2     Borrower will not, without the prior written consent of Bank,
                purchase or lease under an agreement for acquisition, incur any
                other indebtedness for borrowed money, mortgage, assign, or
                otherwise encumber any of Borrower's assets, nor sell, transfer
                or otherwise hypothecate any such assets except in the ordinary
                course of business. Borrower shall not guaranty, endorse,
                co-sign, or otherwise become liable upon the obligations of
                others, except by the endorsement of negotiable instruments for
                deposit or collection in the ordinary course of business. For
                purposes of this paragraph, the sale or assignment of accounts
                receivable, or the granting of a security interest therein,
                shall be deemed the incurring of indebtedness for borrowed
                money;

        5.3     The total of salaries, withdrawals, or other forms of
                compensation, whether paid in cash or otherwise, by Borrower
                shall not exceed the following amounts for the persons
                indicated, nor will amounts in excess of such limits be paid to
                any other person:

                Name:   N/A             Monthly/Yearly Amount: $ N/A
                        --------------                           --------------

                Name:   N/A             Monthly/Yearly Amount: $ N/A
                        --------------                           --------------


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        5.4     Borrower will not, without Bank's prior written consent, declare
                any dividends on shares of its capital stock, or apply any of
                its assets to the purchase, redemption or other retirement of
                such shares, or otherwise amend its capital structure, EXCEPT AS
                SHOWN IN EXHIBIT "A";

        5.5     Borrower will not make any loan or advance to any person(s) or
                purchase or otherwise acquire the capital stock, assets or
                obligations of, or any interest in, any person, except:
                a)      commercial bank time deposits maturing within one year,
                b)      marketable general obligations of the United States or a
                        State, or marketable obligations fully guaranteed by the
                        United States,
                c)      short-term commercial paper with the highest rating of a
                        generally recognized rating service, and
                d)      other investments related to the Borrower's business
                        which, together with such other investments now
                        outstanding, do not in the aggregate exceed the sum of
                        $100,000 at any time;

        5.6     Borrower will not liquidate or dissolve or enter into any
                consolidation, merger, pool, joint venture, syndicate or other
                combination, or sell, lease, or dispose of Borrower's business
                assets as a whole or such as in the opinion of Bank constitute a
                substantial portion of Borrower's business or assets;

        5.7     Borrower will not engage in any business activities or
                operations substantially different from or unrelated to present
                business activities or operations; and/or

        5.8     Borrower, and Borrower's tenants, contractors, agents or other
                parties authorized to use any of Borrower's properties, will not
                use, generate, manufacture, store, treat, dispose of, or release
                any hazardous substance or hazardous waste in, on, under or
                about any of Borrower's properties except as previously
                disclosed to Bank in writing as provided in section 3.9; and any
                such activity shall be conducted in compliance with all
                applicable federal, state and local laws, regulations and
                ordinances, including without limitation those described in
                section 3.9.

6.     WAIVER, RELEASE AND INDEMNIFICATION. Borrower hereby:

       (a) releases and waives any claims against Bank for indemnity or
       contribution in the event Borrower becomes liable for cleanup or other
       costs under any of the applicable federal, state or local laws,
       regulations or ordinances, including without limitation those described

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       in section 3.9, and (b) agrees to indemnify and hold Bank harmless from
       and against any and all claims, losses, liabilities, damages, penalties
       and expenses which Bank may directly or indirectly sustain or suffer
       resulting from a breach of (i) any of Borrower's representations and
       warranties with respect to hazardous wastes and hazardous substances
       contained in section 3.9, or (ii) section 5.8. The provisions of this
       section 6 shall survive the full and final payment of all sums
       outstanding under this Agreement and promissory notes and shall not be
       affected by Bank's acquisition of any interest in any of the Borrower's
       properties, whether by foreclosure or otherwise.

7.     EVENTS OF DEFAULT. The occurrence of any of the following events ("Events
       of Default") shall terminate any and all obligations on the part of Bank
       to make or continue the loan and/or line of credit and, at the option of
       Bank, shall make all sums of interest and principal outstanding under the
       loan and/or line of credit immediately due and payable, without notice of
       default, presentment or demand for payment, protest or notice of non
       payment or dishonor, or other notices or demands of any kind or
       character, all of which are waived by Borrower, and Bank may proceed with
       collection of such obligations and enforcement and realization upon all
       security which it may hold and to the enforcement of all rights hereunder
       or at law:

        7.1     The Borrower shall fail to pay when due any amount payable by it
                hereunder on any loans or notes executed in connection herewith;

        7.2     Borrower shall fail to comply with the provisions of any other
                covenant, obligation or term of this Agreement for a period of
                fifteen (15) days after the earlier of written notice thereof
                shall have been given to the Borrower by Bank or Borrower or any
                Guarantor has knowledge of an Event of Default or an event that
                can become an Event of Default;

        7.3     Borrower shall fail to pay when due any other obligation for
                borrowed money, or to perform any term or covenant on its part
                to be performed under any agreement relating to such obligation
                or any such other debt shall be declared to be due and payable
                and such failure shall continue after the applicable grace
                period;

        7.4     Any representation or warranty made by Borrower in this
                Agreement or in any other statement to Bank shall prove to have
                been false or misleading in any material respect when made, or
                Borrower's representations regarding the "year 2000 problem"
                shall cease to be true, whether or not true when made, and as a


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                result Bank reasonably believes that Borrower's financial
                condition or its ability to pay its debts as they come due will
                thereby be materially impaired;

        7.5     Borrower makes an assignment for the benefit of creditors, files
                a petition in bankruptcy, is adjudicated insolvent or bankrupt,
                petitions to any court for a receiver or trustee for Borrower or
                any substantial part of its property, commences any proceeding
                relating to the arrangement, readjustment, reorganization or
                liquidation under any bankruptcy or similar laws, or if there is
                commenced against Borrower any such proceedings which remain
                undismissed for a period of thirty (30) days or, if Borrower by
                any act indicates its consent or acquiescence in any such
                proceeding or the appointment of any such trustee or receiver;

        7.6     Any judgment attaches against Borrower or any of its properties
                for an amount in excess of $100,000 which remains unpaid,
                unstayed on appeal, unbonded, or undismissed for a period of
                thirty (30) days;

        7.7     Loss of any required government approvals, and/or any
                governmental regulatory authority takes or institutes action
                which, in the opinion of Bank, will adversely affect Borrower's
                condition, operations or ability to repay the loan and/or line
                of credit;

        7.8     Failure of Bank to have a legal, valid and binding first lien
                on, or a valid and enforceable prior perfected security interest
                in, any property covered by any deed of trust or security
                agreement required under this Agreement;

        7.9     Borrower dies, becomes incompetent, or ceases to exist as a
                going concern;

       7.10     Occurrence of an extraordinary situation which gives Bank
                reasonable grounds to believe that Borrower may not, or will be
                unable to, perform its obligations under this or any other
                agreement between Bank and Borrower; or

       7.11     Any of the preceding events occur with respect to any guarantor
                of credit under this Agreement, or such guarantor dies or
                becomes incompetent, unless the obligations arising under the
                guaranty and related agreements have been unconditionally
                assumed by the guarantor's estate in a manner satisfactory to
                Bank.

8.     SUCCESSORS; WAIVERS. Notwithstanding the Events of Default above, this
       Agreement shall be binding upon and inure to the benefit of Borrower and
       Bank, their respective successors and assigns, except that Borrower may
       not assign its rights hereunder. No consent or waiver under this
       Agreement shall be effective unless in writing and signed by the Bank and
       shall not waive or affect any other default, whether prior or subsequent
       thereto, and whether of the same or different type. No delay or omission


<PAGE>

       on the part of the Bank in exercising any right shall operate as a waiver
       of such right or any other right.

9.     ARBITRATION.

       9.1      At the request of either Bank or Borrower any controversy or
                claim between the Bank and Borrower, arising from or relating to
                this Agreement or any loan document executed in connection with
                this Agreement or arising from any alleged tort shall be settled
                by arbitration in Seattle, Washington. The United States
                Arbitration Act will apply to the arbitration proceedings which
                will be administered by the American Arbitration Association
                under its commercial rules of arbitration except that unless the
                amount of the claim(s) being arbitrated exceeds $5,000,000 there
                shall be only one arbitrator. Any controversy over whether an
                issue is arbitrable shall be determined by the arbitrator(s).
                Judgement upon the arbitration award may be entered in any court
                having jurisdiction. The institution and maintenance of any
                action for judicial relief or pursuit of a provisional or
                ancillary remedy shall not constitute a waiver of the right of
                either party, including plaintiff, to submit the controversy or
                claim to arbitration if such action for judicial relief is
                contested.

                For purposes of the application of the statute of limitations
                the filing of an arbitration as provided herein is the
                equivalent of filing a lawsuit and the arbitrator(s) will have
                the authority to decide whether any claim or controversy is
                barred by the statute of limitations, and if so, to dismiss the
                arbitration on that basis. The parties consent to the joinder in
                the arbitration proceedings of any guarantor, hypothecator or
                other party having an interest related to the claim or
                controversy being arbitrated.

        9.2     Notwithstanding the provisions of Section 9.1, no controversy or
                claim shall be submitted to arbitration without the consent of
                all parties if at the time of the proposed submission, such
                controversy or claim arises from or relates to an obligation
                secured by real property or by a marine vessel;

        9.3     No provision of this Section 9 shall limit the right of the
                Borrower or the Bank to exercise self-help remedies such as
                setoff, foreclosure or sale of any collateral, or obtaining any
                ancillary provisional or interim remedies from a court of
                competent jurisdiction before, after or during the pendency of
                any arbitration proceeding. The exercise of any such remedy does


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                not waive the right of either party to request arbitration. At
                Bank's option foreclosure under any deed of trust may be
                accomplished by exercise of the power of sale under the deed of
                trust or judicial foreclosure as a mortgage.

10.    COLLECTION ACTIVITIES, LAWSUITS AND GOVERNING LAW. Borrower agrees to pay
       Bank all of Bank's costs and expenses (including reasonable attorney's
       fees and the allocated cost for in-house legal services incurred by
       Bank), incurred in the documentation and administration of this Agreement
       and the loans reflected herein. The nonprevailing party shall, upon
       demand by the prevailing party, reimburse the prevailing party of all of
       its costs, expenses and reasonable attorneys' fees (including the
       allocated cost of in-house counsel) incurred in connection with any
       controversy or claim between said parties relating to this Agreement or
       any of the loan documents, or to an alleged tort arising out of the
       transactions evidence by this agreement or any of the loan documents,
       including those incurred in any action, bankruptcy proceeding,
       arbitration or other alternative dispute resolution proceeding, or
       appeal, or in the course of exercising any judicial or nonjudicial
       remedies. If suit is instituted by Bank to enforce this Agreement or any
       of the loan documents, Borrower consents to the personal jurisdiction of
       the courts of the State of Washington and Federal Courts located in the
       State of Washington. Borrower further consents to the venue of such suit
       being lain in Seattle, Washington. This Agreement and any notes, security
       agreements and other loan documents entered into pursuant to this
       Agreement shall be construed in accordance with the laws of the State of
       Washington.

11.    ADDITIONAL PROVISIONS. Borrower agrees to the additional provisions set
       forth immediately following this Section 11 or on any "Exhibit A"
       attached to and hereby incorporated into Agreement. This Agreement
       supersedes all oral negotiations or agreements between Bank and Borrower
       with respect to the subject matter hereof and constitutes the entire
       understanding and Agreement of the matters set forth in this Agreement.

12.    MISCELLANEOUS. If any provision of this Agreement is held to be invalid
       or unenforceable, then (a) such provision shall be deemed modified if
       possible, or if not possible, such provision shall be deemed stricken,
       and (b) all other provisions shall remain in full force and effect.

       12.1     If the imposition of or any change in any law, rule, or
                regulation guideline or the interpretation or application of any
                thereof by any court of administrative or governmental authority
                (including any request or policy whether or not having the force
                of law) shall impose or modify any taxes (except U.S. federal,
                state or local income or franchise taxes imposed on Bank),


<PAGE>


                reserve requirements, capital adequacy requirements or other
                obligations which would: (a) increase the cost to Bank for
                extending or maintaining any loans and/or line of credit to
                which this Agreement relates, (b) reduce the amounts payable to
                Bank under this Agreement, such notes and other instruments, or
                (c) reduce the rate of return on Bank's capital as a consequence
                of Bank's obligations with respect to any loan and/or line of
                credit to which this Agreement relates, then Borrower agrees to
                pay Bank such additional amounts as will compensate Bank
                therefor, within five (5) days after Bank'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, absent
                manifest error.

       12.2     Bank may sell participations in or assign this loan in whole or
                in part without notice to Borrower and Bank may provide
                information regarding the Borrower and this Agreement to any
                prospective participant or assignee. If a participation is sold
                or the loan is assigned the purchaser will have the right of set
                off against the Borrower and may enforce its interest in the
                Loan irrespective of any claims or defenses the Borrower may
                have against the Bank.

13.    NOTICES. Any notices shall be given in writing to the opposite party's
       signature below or as that party may otherwise specify in writing.

14.    ORAL AGREEMENTS OR ORAL COMMITMENTS TO LOAN MONEY, EXTEND CREDIT, OR TO
       FORBEAR FROM ENFORCING REPAYMENT OF A DEBT ARE NOT ENFORCEABLE UNDER
       WASHINGTON LAW.


<PAGE>

This Business Loan Agreement (Parts A and B) executed by the parties on MARCH 1,
1999. Borrower acknowledges having read all of the provisions of this Agreement
and Borrower agrees to its terms.


Bank of America NT&SA, D.B.A, Seafirst Eastern Wholesale Team #1

                                 -----------------------------------------------
                                 (Branch/Office)

By: /s/ JAMES R. DEAN                 Title: Vice President
   -----------------------------            ------------------------------------
        James R. Dean

Address:  P.O. Box 1446               City, State, Zip   Spokane, WA  99210
          ----------------------                       -------------------------

Phone:    (509) 353-1480              Fax: (509) 353-1492
          ----------------------           -------------------------------------



                           THE COEUR D'ALENES COMPANY
--------------------------------------------------------------------------------
                                 (Borrower Name)

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

Address:  P.O. Box 2610               City, State, Zip   Spokane, WA  99220
          ----------------------                       -------------------------

Phone:    (509) 924-6363              Fax: (509) 924-6924
          ----------------------           -------------------------------------



                  UNION IRON WORKS, INC. OF SPOKANE, WASHINGTON
--------------------------------------------------------------------------------
                                 (Borrower Name)

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

Address:  P.O. Box 2610               City, State, Zip   Spokane, WA  99220
          ----------------------                       -------------------------

Phone:    (509) 924-6363              Fax: (509) 924-6924
          ----------------------           -------------------------------------