EXHIBIT 10.27

                             BUSINESS LOAN AGREEMENT

This Business Loan Agreement ("Agreement") is made between Bank of America NT&SA
doing business as Seafirst Bank ("Bank") and Semitool,  Inc.  ("Borrower")  with
respect to the following:

                                     Part A

1.     LINE OF CREDIT # 8021506788-TBA . Subject to the terms of this Agreement,
       Bank will make loans to Borrower under a   revolving   non-revolving line
       of credit as follows:
       (a)    Total Amount Available:  $ 25,000,000.00
              [ ] Subject to the provisions of any accounts receivable and/or 
                  inventory borrowing plan required herein; it is expressly 
                  understood that collateral ineligible for borrowing purposes 
                  is determined solely by Bank.
              [ ] Subject to (describe): N/A
       (b)    Availability  Period:  September  30, 1998 through April 1, 2001 .
              However,  if loans will be subject  and/or  new  promissory  notes
              executed after the last date, such advances will be subject to the
              terms of this  Agreement  until  repaid  in full  unless a written
              statement signed by the Bank and Borrower provides otherwise, or a
              replacement  loan  agreement  is  executed.  The  making  of  such
              additional  advances  alone,   however,   does  not  constitute  a
              commitment by the Bank to make any further  advances or extend the
              availability period.
       (c)    Interest Rate:
              [X] Bank's publicly announced Reference Rate plus 0 percent of the
                  principal  per  annum.  "Reference  Rate"  means  the  rate of
                  interest  publicly  announced from time to time by Bank in San
                  Francisco,  California as its "Reference  Rate." The Reference
                  Rate is set based on various factors including Bank's cost and
                  desired  return,   general  economic  conditions,   and  other
                  factors,  and is used as a reference  point for  pricing  some
                  loans.  Bank may price loans to its customers  at,  above,  or
                  below the Reference  Rate.  Any change in the  Reference  Rate
                  shall  take  effect  at the  opening  of  business  on the day
                  specified  in  the  public  announcement  of a  change  in the
                  Reference Rate OR 
              [X] At the option of Borrower, borrowings within the approved line
                  of credit  may be  available, in  minimum  amounts of $500,000
                  or more for specific  periods of time (30, 90 or 180  days) at
                  LIBOR  +  1.50%  per  annum.  Any  LIBOR borrowings  shall be 
                  requested at least three  business  days prior  to  funding.  
                  LIBOR  borrowings  shall  be based on the  British   Bankers' 
                  Association   Interest   Settlement  Rate (BBAIRS),  page 3750
                  on  Telerate.  The LIBOR  rate shall be adjusted for reserves,
                  deposit insurance, assessments and/or taxes.  Borrowing 
                  periods for the LIBOR rate option may be for 30, 60, 90 or 180
                  days.  Under the  LIBOR  rate  option,  any advance which is 
                  prepaid prior to maturity may be subject to a  prepayment 
                  penalty as described in "Exhibit 1 Prepayment Fees" to the 
                  Promissory Note.
       (d)    Interest  Rate Basis:  All interest  will be calculated at the per
              annum  interest  rate based on a 360-day  year and  applied to the
              actual number of days elapsed.
       (e)    Repayment: At the times and in the amounts as set forth in note(s)
              required under Part B Article 1 of this  Agreement.  Interest only
              payments  will be due  monthly  until  April 1, 2001 with the then
              outstanding  balance  repayable in monthly  principal and interest
              payments fully amortized over 3 years,  not to extend beyond April
              1, 2004.  Payments  shall be paid monthly on the first day of each
              month by automatic  deduction from the Borrower's checking account
              #13629803.
       (f)    Loan Fee: N/A payable on N/A .
       (g)    Fee on  Unutilized  Portion of Line:  On  December  31, 1998 , and
              every quarter ,  thereafter,  Borrower  shall pay a fee based upon
              the average daily unused  portion of the line of credit.  This fee
              will be  calculated  as  follows:  0.20% per  annum on the  unused
              portion of the commitment, payable quarterly in arrears.
       (i)    Collateral.  This line of credit  shall be  secured  by a security
              interest,  which  is  hereby  granted,  in  favor  of  Bank on the
              following  collateral:  N/A Also,  collateral securing other loans
              with Bank may secure this loan.



                                     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: N/A;
        2.7     Subordination agreement(s) in favor of Bank executed by: N/A;
        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
        2.12    Other (describe): N/A

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:

                              General         Limited               Sole
         X Corporation  __  Partnership  __ Partnership  __  Proprietorship 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;
        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     On  the  basis  of a  comprehensive  review  and  assessment  of
                Borrower's  systems and equipment and inquiry made of Borrower's
                material suppliers, vendors and customers, Borrower's management
                is of the view  that 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),  including  costs of  remediation,  will not
                result in a material adverse change in the operations, business,
                properties, condition (financial or otherwise) [or prospects] of
                Borrower.  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.
        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: 655 West Reserve Drive,  Kalispell,
                MT 59901

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;
        4.2     Maintain current assets in an amount at least equal to N/A times
                current  liabilities,  and not less than N/A. 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  $70,000,000  and not
                permit Borrower's total  indebtedness  which is not subordinated
                in a manner satisfactory to Bank to exceed 1.00 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  insureds the policy  proceeds will be
                applied to payment of Borrower's obligations owing to Bank;

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

        4.5     Promptly give written  notice to Bank of: (a) all litigation and
                claims made or threatened affecting Borrower where the amount is
                $250,000 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
                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 90
                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;
        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;
        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
                        ---------------                             ------------

        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;
        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 guarantied 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 aggregate  exceed the sum of $__N/A__
                      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
       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
                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
       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
                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  N/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.

        11.1    Borrower shall maintain a Trading Asset Ratio of 1.40:1,
                computed as follows:

                Trading Asset Ratio = Trading Account Receivables + Inventory
                                      ---------------------------------------
                                         Bank Credit Line + Trade Payables

        11.2    Borrower   shall  maintain  a  Debt  Coverage  Ratio  of  1.50:1
                (measured  quarterly based upon the  immediately  preceding four
                quarters financial results), computed as follows:

 Debt Coverage Ratio = Net Inc.+Depr.+Amort.-Maint. CAPEX($3,000,000)-Dividends
                       --------------------------------------------------------
                                   Current Portion Long-Term Debt

        11.3    Borrower to provide Loan  Agreement Compliance Certificates on a
                quarterly  basis 11.4  Borrower  shall  not,  without  the prior
                written consent of Bank, create or permit to exist any lien  or
                encumbrance  upon,  o transfer  any  interest in, any of its
                accounts receivable or inventory,  other than sales of inventory
                in the ordinary course of business.
        11.5    If  at  anytime  the  principal  amount  outstanding  under  the
                Borrower's  revolving  credit line from Bank  exceeds the sum of
                (i) 50 % of Borrower's  accounts receivable plus (ii) 25% of the
                value  (based  on the  lower of cost or  market)  of  Borrower's
                inventory  then,  upon request of Bank,  Borrower shall grant to
                Bank a security  interest in all of its accounts  receivable and
                inventory  to  secure  all  obligations  of  Borrower  under the
                revolving line of credit,  pursuant to a security  agreement and
                UCC filings in form satisfactory to Bank.

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),
                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.

This  business  Loan  Agreement  (Parts  A and B)  executed  by the  parties  on
September  30,  1998  (date)  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 Commercial Banking, Team #1
                                             (Branch/Office)

By:        /s/Joe Poole                 Title:              Vice President
           ------------------------                         --------------------
           Joe Poole
Address:   W. 601 Riverside             City, State, Zip:   Spokane, WA  99201
           ------------------------                         --------------------

Phone:     (509) 353-1475               Fax:                (509) 353-1492
           ------------------------                         --------------------





<PAGE>


Semitool, Inc.

By:        /s/Raymon F. Thompson        Title:              Chairman
           ------------------------                         --------------------
           Raymon F. Thompson
Address:   655 West Reserve Drive       City, State, Zip:   Kalispell, MT  59901
           ------------------------                         --------------------

Phone:     (406) 752-2107               Fax:                (406) 752-5522
           ------------------------                         --------------------