Document:

AMENDMENT

                           Dated as of August 9, 2000

     This THIRD AMENDMENT among MARVEL ENTERPRISES,  INC. (the "Borrower"),  the
GUARANTORS party hereto, the LENDERS party hereto and CITIBANK,  N.A., as Agent,
Collateral Agent and Issuer.

                             PRELIMINARY STATEMENTS:

     (1) The Borrower,  the Guarantors,  the Lenders,  the Agent, the Collateral
Agent and the Issuer have entered into a Credit  Agreement  dated as of April 1,
1999 and amended  pursuant to the First Amendment dated as of March 21, 2000 and
the Second Amendment dated as of June 1, 2000 (the "Credit  Agreement").  Unless
otherwise  defined  herein,  the terms defined in the Credit  Agreement are used
herein as therein defined.

     (2) The  parties  have  agreed to  further  amend the Credit  Agreement  as
hereinafter set forth.

     NOW, THEREFORE,  IN CONSIDERATION OF THE PREMISES, THE PARTIES HERETO AGREE
AS FOLLOWS:

     SECTION 1. Amendments to Credit Agreement. (a) The preamble to Article 5 of
the Credit  Agreement  is,  effective  as of the date  hereof and subject to the
satisfaction of the conditions  precedent set forth in Section 2 hereof,  hereby
amended to read in its entirety as follows:

            "The Borrower  agrees that, so long as any Lender has
            any Credit Exposure hereunder or any interest or fees
            accrued  hereunder  remain unpaid;  provided that the
            financial  covenants contained in Sections 5.13, 5.14
            and 5.15  will not be tested so long as (i) the Total
            Outstanding  Amount does not exceed  $20,000,000  and
            (ii) the  Borrowing  Base less the Total  Outstanding
            exceeds $10,000,000 at all times during the months of
            June,  July and August  2000 and  $20,000,000  at all
            other times:"

     (b) Section  5.01(n)  shall be  renumbered  as  5.01(o),  and a new Section
5.01(n) inserted in its place to read in its entirety as follows:

           "On or prior to September 15, 2000, the Borrower will
           deliver to the Agent  revised  financial  projections

<PAGE>

           for each remaining month in Fiscal Year 2000 and each
           quarter  in  Fiscal  Year  2001  which  (A)  will  be
           prepared by the Borrower on the basis of  assumptions
           which  the  Borrower  believes  in good  faith  to be
           reasonable  as of the date of such  projections,  and
           (B) will represent the Borrower's good faith estimate
           of  future   performance  of  the  Borrower  and  its
           Subsidiaries."

     SECTION 2.  Amendment  Fee. In connection  with this Third  Amendment,  the
Borrower  will pay to the Agent for the account of the Lenders an amendment  fee
in the aggregate  amount of $100,000,  one-half of such fee ($50,000) to be paid
upon execution of this Third Amendment by the Borrower and one-half ($50,000) to
be paid on the date of  execution  and delivery by the Borrower to the Agent and
the  Lenders of an  amendment  to the  Credit  Agreement  in form and  substance
satisfactory  to the Required  Lenders which amends the financial  covenants set
forth  in  Sections  5.13,  5.14 and 5.15 of the  Credit  Agreement  in a manner
consistent with the revised  financial  projections  required to be delivered by
the Borrower pursuant to Section 5.01(n) of the Credit Agreement.

     SECTION 3.  Conditions of  Effectiveness.  This Third Amendment will become
effective  when the Agent shall have  received  (a)  counterparts  of this Third
Amendment executed by the Borrower,  the Guarantors and the Required Lenders and
(b) payment of the first $50,000 installment of the amendment fee referred to in
Section 2 above,  payable to the Agent for the account of the Lenders  executing
this Third Amendment.

     SECTION 4. Representations and Warranties of the Borrower. The Borrower and
each      Guarantor      represents      and      warrants      as      follows:

          (a)  After  giving  effect  to  this  Third  Amendment,   all  of  the
     representations  and  warranties  contained  in  Article  4 of  the  Credit
     Agreement  and in  other  Loan  Documents  will  be  true  in all  material
     respects.

          (b) After giving effect to this Third  Amendment,  no Default or Event
     of Default shall have occurred and be continuing.

     SECTION  5.  Reference  to and Effect on the Loan  Documents.  (a) Upon the
effectiveness  of this  Third  Amendment,  on and  after  the date  hereof  each
reference in the Credit Agreement to "this Agreement", "hereunder", "hereof", or
words of like import  referring to the Credit  Agreement,  and each reference in
the other Loan Documents to "the Credit Agreement", "thereunder",  "thereof", or
words of like  import  referring  to the  Credit  Agreement,  will mean and be a
reference to the Credit Agreement as amended hereby.

          (b) Except as specifically amended above, the Credit Agreement and all
     other Loan  Documents  are and will continue to be in full force and effect
     and are hereby in all respects ratified and confirmed. Without limiting the
     generality of the  foregoing,  the Loan Documents and all of the Collateral

                                      -2-

<PAGE>

     described  therein  do and will  continue  to  secure  the  payment  of all
     obligations of the Borrower and the Guarantors under the Credit  Agreement,
     the Notes and the other Loan Documents, in each case as amended hereby.

          (c) The execution,  delivery and effectiveness of this Third Amendment
     will not, except as expressly  provided herein,  operate as a waiver of any
     right,  power or  remedy of any  Lender or the Agent  under any of the Loan
     Documents,  nor  constitute  a waiver of any  provision  of any of the Loan
     Documents.

     SECTION 6. Execution in Counterparts.  This Third Amendment may be executed
in any number of counterparts, each of which when so executed and delivered will
be deemed to be an original and all of which taken together shall constitute but
one and the same agreement.

     SECTION 7.  Governing  Law. This Third  Amendment  will be governed by, and
construed in accordance with, the laws of the State of New York.

                                      -3-

<PAGE>

     IN WITNESS WHEREOF,  the parties hereto have caused this Third Amendment to
be executed by their respective  authorized  officers as of the date first above
written.

                                    MARVEL ENTERPRISES, INC.,
                                            as Borrower

                                    By: /s/ Allen S. Lipson
                                        --------------------
                                        Name: Allen S. Lipson
                                        Title:Exec. VP Business & Legal Affairs

                                    MARVEL ENTERTAINMENT GROUP, INC.,
                                            as Guarantor

                                    By:/s/ Allen S. Lipson
        `                              ----------------------
                                        Name: Allen S. Lipson
                                        Title:Vice President

                                    MEI HOLDING COMPANY S CORP.,
                                            as Guarantor

                                    By:/s/ Allen S. Lipson
                                       -----------------------
                                        Name:Allen S. Lipson
                                        Title:Vice President

                                    MEI HOLDING COMPANY F CORP.,
                                            as Guarantor

                                    By:/s/ Allen S. Lipson
                                       ------------------------
                                        Name:Allen S. Lipson
                                        Title:Vice President

                                    MARVEL CHARACTERS, INC.,
                                            as Guarantor

                                    By:/s/Allen S. Lipson
                                      -----------------------
                                        Name:Allen S. Lipson
                                        Title:Vice President

                                      -4-

<PAGE>

                                    MARVEL RESTAURANT VENTURE CORP.,
                                            as Guarantor

                                    By:/s/ Allen S. Lipson
                                       -----------------------
                                        Name:Allen S. Lipson
                                        Title:Vice President

                                    MRV, INC., as Guarantor

                                    By:/s/ Allen S. Lipson
                                       ----------------------
                                        Name:Allen S. Lipson
                                        Title:Vice President

                                   CITIBANK, N.A., as Agent and Collateral Agent

                                   By:/s/ Thomas M Halsch
                                      -------------------------------------
                                        Name:Thomas M. Halsch
                                        Title:Vice President

                                    CITIBANK, N.A., as Issuer

                                    By:/s/ Thomas M Halsch
                                      -------------------------------------
                                        Name:Thomas M Halsch
                                        Title:Vice President

                                    CITIBANK, N.A., as Lender

                                    By:/s/ Thomas M Halsch
                                      -------------------------------------
                                        Name:Thomas M. Halsch
                                        Title:Vice President

                                    HELLER FINANCIAL, INC., as Lender

                                    By:/s/ Tara Wrobel
                                       -----------------------------------
                                        Name:Tara Wrobel
                                        Title:Vice President

                                      -5-
<PAGE>

                                    AMSOUTH BANK, as Lender

                                    By:/s/Kathleen F. Kerlinger
                                       ----------------------------------
                                        Name:Kathleen F. Kerlinger
                                        Title:Attorney-in-fact

                                      -6-Exhibit 10.32

                             BUSINESS LOAN AGREEMENT

Borrower:  SEMITOOL, INC.                       Lender:  BANK OF AMERICA, NA
           655 West Reserve Drive                        800 5TH AVE
           Kalispell, MT 59901                           P.O. BOX 84448
                                                         SEATTLE,WA 98124

This BUSINESS LOAN AGREEMENT  between  SEMITOOL,  INC.  ("Borrower") and BANK OF
AMERICA,  N.A.  ("Lender")  is made and  executed  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  and  other  financial
accommodations,  including  those  which  may be  described  on any  exhibit  or
schedule   attached   to  this   Agreement.   All  such   loans  and   financial
accommodations, together with all future loans and financial accommodations from
Lender to Borrower, are referred to in this Agreement individually as the "Loan"
and  collectively as the "Loans."  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; (b)
the granting, renewing, or extending of any Loan by Lender at all times shall be
subject to Lender's sole judgment and  discretion;  and (c) all such Loans shall
be and shall  remain  subject  to the  following  terms and  conditions  of this
Agreement.

TERM.  This Agreement  shall be effective as of July 5, 2000, and shall continue
thereafter  until all  Indebtedness  of Borrower to Lender has been performed in
full and the parties terminate this Agreement in writing.

DEFINITIONS.  The following words shall have the following meanings when used in
this  Agreement.  Terms not otherwise  defined in this Agreement  shall have the
meanings attributed to such terms in the Uniform Commercial Code. All references
to dollar  amounts  shall mean amounts in lawful  money of the United  States of
America.

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

     Borrower. The word  "Borrower"  means  SEMITOOL,  INC.. The word "Borrower"
     also includes, as applicable, all  subsidiaries  and affiliates of Borrower
     as provided below in the paragraph titled "Subsidiaries and Affiliates."

     CERCLA. The word "CERCLA" means the Comprehensive  Environmental  Response,
     Compensation, and Liability Act of 1980, as amended.

     Collateral.  The word  "Collateral"  means and includes  without limitation
     all property and assets granted as  collateral security for a Loan, whether
     real or personal property, whether granted directly or indirectly,  whether
     granted now or in the future, and whether granted in the form of a security
     interest,  mortgage, deed of trust,  assignment,  pledge, chattel mortgage,
     chattel trust,  factor's lien,  equipment  trust,  conditional  sale, trust
     receipt,  lien,  charge,  lien  or  title  retention  contract,   lease  or
     consignment  intended as a security  device,  or any other security or lien
     interest whatsoever, whether created by law, contract, or otherwise.

     ERISA. The word "ERISA" means  the Employee  Retirement Income Security Act
     of 1974, as amended.

     Event of  Default. The words "Event of Default" mean  and  include  without
     limitation  any of the Events of  Default  set forth  below in the  section
     titled "EVENTS OF DEFAULT."

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

     Guarantor. The word "Guarantor"  means and includes without limitation each
     and all of  the guarantors,  sureties,  and  accommodation parties in
     connection with any Indebtedness.

     Indebtedness. The word "Indebtedness" means and includes without limitation
     all Loans, together with all other obligations,  debts and  liabilities  of
     Borrower  to Lender,  or any one or more of them,  as well as all claims by
     Lender  against  Borrower,  or any  one or  more of  them;  whether  now or
     hereafter existing,  voluntary or involuntary,  due or not due, absolute or
     contingent,  liquidated  or  unliquidated;  whether  Borrower may be liable
     individually or jointly with others; whether Borrower may be obligated as a
     guarantor,  surety,  or otherwise;  whether recovery upon such Indebtedness
     may be or hereafter  may become barred by any statute of  limitations;  and
     whether  such  Indebtedness  may  be  or  hereafter  may  become  otherwise
     unenforceable.

     Lender. The word "Lender" means BANK OF AMERICA, N.A., its  successors  and
     assigns.

     Loan. The word "Loan" or "Loans" means and includes without limitation  any
     and all commercial 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 and includes  without   limitation   Borrower's
     promissory note or notes, if any, evidencing Borrower's Loan obligations in
     favor of Lender, as well as any substitute, replacement or refinancing note
     or notes therefor.

     Permitted Liens. The words "Permitted Liens" mean:  (a) liens and  security
     interests  securing  Indebtedness owed by Borrower to Lender; (b) liens for
     taxes,  assessments,  or  similar  charges  either  not  yet  due or  being
     contested in good faith; (c) 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;  (d) 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";  (e) liens and  security  interests  which,  as of the date of this
     Agreement,  have been  disclosed  to and approved by the Lender in writing;
     and  (f)  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.

     Related Documents. The words "Related Documents" mean and  include  without
     limitation  all  promissory  notes,  credit  agreements,  loan  agreements,
     environmental agreements, guaranties, security agreements, mortgages, deeds
     of trust, and all other instruments,  agreements and documents, whether now
     or hereafter existing, executed in connection with the Indebtedness.

     Security Agreement. The words "Security Agreement" mean and include without
     limitation   any    agreements,    promises,    covenants,    arrangements,
     understandings or other agreements,  whether created by law,  contract,  or
     otherwise,  evidencing,  governing,  representing,  or  creating a Security
     Interest.

     Security Interest. The words "Security Interest" mean and  include  without
     limitation any type of collateral security,  whether in the form of a lien,
     charge,  mortgage,  deed of trust,  assignment,  pledge,  chattel mortgage,
     chattel trust,  factor's lien,  equipment  trust,  conditional  sale, trust
     receipt, lien or title retention contract, lease or consignment intended as
     a security  device,  or any other  security  or lien  interest  whatsoever,
     whether created by law, contract, or otherwise.

     SARA.  The word "SARA" means the Superfund Amendments and Reauthorization
     Act of 1986 as now or hereafter amended.

CONDITIONS  PRECEDENT TO EACH ADVANCE.  Lender's  obligation to make the initial
Loan Advance and each  subsequent  Loan 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 in form  satisfactory to
     Lender the  following  documents for the Loan:  (a) the Note,  (b) Security
     Agreements  granting to Lender security  interests in the  Collateral,  (c)
     Financing Statements  perfecting Lender's Security Interests;  (d) evidence
     of insurance as required below; and (e) any other documents  required under
     this Agreement or by Lender or its 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,  and such other  authorizations and other documents and
     instruments  as  Lender  or its  counsel,  in their  sole  discretion,  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.

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 corporation  which is duly organized,  validly
     existing,  and in good standing  under the laws of the State of Montana and
     is validly existing and in good standing in all states in which Borrower is
     doing  business.  Borrower  has the full  power  and  authority  to own its
     properties and to transact the businesses in which it is presently  engaged
     or  presently  proposes to engage.  Borrower  also is duly  qualified  as a
     foreign  corporation  and is in good  standing  in all  states in which the
     failure  to so  qualify  would  have  a  material  adverse  effect  on  its
     businesses or financial condition.

     Authorization.  The execution,  delivery, and performance of this Agreement
     and all  Related  Documents  by  Borrower,  to the  extent to be  executed,
     delivered  or  performed  by  Borrower,  have been duly  authorized  by all
     necessary action by Borrower; do not require the consent or approval of any
     other  person,  regulatory  authority  or  governmental  body;  and  do not
     conflict with,  result in a violation of, or constitute a default under (a)
     any provision of its articles of incorporation or organization,  or bylaws,
     or any agreement or other instrument  binding upon Borrower or (b) any law,
     governmental regulation, court decree, or order applicable to Borrower.

     Financial  Information.  Each financial  statement of Borrower  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
     required  hereunder to be given by Borrower when delivered will constitute,
     legal,  valid and  binding  obligations  of  Borrower  enforceable  against
     Borrower in accordance with their respective terms.

     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.

     Hazardous Substances.  The terms "hazardous waste," "hazardous  substance,"
     "disposal," "release," and "threatened release," as used in this Agreement,
     shall have the same  meanings  as set forth in the  "CERCLA,"  "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  to any of the  foregoing.  Except  as  disclosed  to and
     acknowledged by Lender in writing,  Borrower  represents and warrants that:
     (a) During the period of Borrower's ownership of the properties,  there has
     been no use, generation, manufacture, storage, treatment, disposal, release
     or threatened release of any hazardous waste or substance by any person on,
     under,  about or from any of the properties.  (b) Borrower has no knowledge
     of, or  reason  to  believe  that  there has been (i) any use,  generation,
     manufacture,  storage, treatment,  disposal, release, or threatened release
     of any hazardous waste or substance on, under, about or from the properties
     by any prior  owners or  occupants  of any of the  properties,  or (ii) any
     actual  or  threatened  litigation  or  claims  of any  kind by any  person
     relating to such matters. (c) Neither Borrower nor any tenant,  contractor,
     agent  or  other  authorized  user  of  any of the  properties  shall  use,
     generate,  manufacture,  store, treat, dispose of, or release any hazardous
     waste or substance on, under, about or from any of the properties;  and any
     such activity shall be conducted in compliance with all applicable federal,
     state,  and local laws,  regulations,  and  ordinances,  including  without
     limitation those laws, regulations and ordinances described above. Borrower
     authorizes  Lender and its agents to enter upon the properties to make such
     inspections  and  tests  as  Lender  may  deem   appropriate  to  determine
     compliance  of the  properties  with this  section  of the  Agreement.  Any
     inspections or tests made by Lender shall be at Borrower's  expense and for
     Lender's   purposes   only  and  shall  not  be  construed  to  create  any
     responsibility  or  liability  on the part of Lender to  Borrower or to any
     other person. The representations and warranties contained herein are based
     on Borrower's due diligence in  investigating  the properties for hazardous
     waste and hazardous substances. Borrower hereby (a) releases and waives any
     future claims  against  Lender for indemnity or  contribution  in the event
     Borrower becomes liable for cleanup or other costs under any such laws, and
     (b)  agrees to  indemnify  and hold  harmless  Lender  against  any and all
     claims, losses, liabilities,  damages, penalties, and expenses which Lender
     may directly or  indirectly  sustain or suffer  resulting  from a breach of
     this section of the Agreement or as a consequence  of any use,  generation,
     manufacture,   storage,  disposal,  release  or  threatened  release  of  a
     hazardous  waste or substance on the  properties.  The  provisions  of this
     section of the  Agreement,  including the  obligation  to indemnify,  shall
     survive the payment of the  Indebtedness  and the termination or expiration
     of this Agreement and shall not be affected by Lender's  acquisition of any
     interest in any of the properties, whether by foreclosure or otherwise.

     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 tax returns and reports of
     Borrower  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.

     Lien Priority.  Unless otherwise previously disclosed to Lender in writing,
     Borrower  has not  entered  into or granted  any  Security  Agreements,  or
     permitted  the  filing  or  attachment  of  any  Security  Interests  on or
     affecting any of the Collateral  directly or indirectly  securing repayment
     of Borrower's  Loan and Note, that would be prior or that may in any way be
     superior  to  Lender's  Security  Interests  and  rights  in  and  to  such
     Collateral.

     Binding Effect. This Agreement,  the Note, all Security Agreements directly
     or indirectly securing repayment of Borrower's Loan and Note and all of the
     Related  Documents  are binding  upon  Borrower as well as upon  Borrower's
     successors,  representatives  and assigns,  and are legally  enforceable in
     accordance with their respective terms.

     Commercial Purposes. Borrower  intends  to use the Loan proceeds solely for
     business or commercial related purposes.

     Employee Benefit Plans. Each employee benefit plan as to which Borrower may
     have any liability  complies in all material  respects with all  applicable
     requirements  of law and  regulations,  and  (i) no  Reportable  Event  nor
     Prohibited  Transaction  (as defined in ERISA) has occurred with respect to
     any such  plan,  (ii)  Borrower  has not  withdrawn  from any such  plan or
     initiated  steps to do so, (iii) no steps have been taken to terminate  any
     such plan,  and (iv)  there are no  unfunded  liabilities  other than those
     previously disclosed to Lender in writing.

     Location of Borrower's  Offices and Records.  Borrower's place of business,
     or Borrower's Chief executive  office,  if Borrower has more than one place
     of business,  is located at 655 West Reserve Drive,  Kalispell,  MT 59901 .
     Unless  Borrower has designated  otherwise in writing this location is also
     the office or offices  where  Borrower  keeps its  records  concerning  the
     Collateral.

     Information.  All  information  heretofore  or  contemporaneously  herewith
     furnished by Borrower to Lender for the purposes of or in  connection  with
     this  Agreement  or  any  transaction   contemplated  hereby  is,  and  all
     information  hereafter furnished by or on behalf of Borrower to Lender will
     be,  true and  accurate in every  material  respect on the date as of which
     such information is dated or certified;  and none of such information is or
     will be incomplete by omitting to state any material fact necessary to make
     such information not misleading.

     Survival of Representations and Warranties. Borrower understands and agrees
     that Lender, without independent  investigation,  is relying upon the above
     representations  and  warranties  in extending  Loan  Advances to Borrower.
     Borrower further agrees that the foregoing  representations  and warranties
     shall be  continuing  in nature  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.

AFFIRMATIVE  COVENANTS.  Borrower  covenants and agrees with Lender that,  while
this Agreement is in effect, Borrower will:

     Litigation.  Promptly inform Lender in writing of (a) all material  adverse
     changes in  Borrower's  financial  condition,  and (b) 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  in  accordance  with
     generally accepted  accounting  principles,  applied on a consistent basis,
     and permit Lender to examine and audit  Borrower's books and records at all
     reasonable times.

     Additional Information. Furnish such additional information and statements,
     lists of assets  and  liabilities,  agings  of  receivables  and  payables,
     inventory  schedules,  budgets,  forecasts,  tax returns, and other reports
     with respect to Borrower's  financial  condition and business operations 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 reasonably 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 forty five (45) 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 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:  (a) the
     name of the insurer;  (b) the risks insured;  (c) the amount of the policy;
     (d) the properties  insured;  (e) the then current  property  values on the
     basis of which  insurance has been obtained,  and the manner of determining
     those values;  and (f) the expiration date of the policy. In addition, upon
     request of Lender  (however not more often than  annually),  Borrower  will
     have  an  independent  appraiser  satisfactory  to  Lender  determine,   as
     applicable,  the actual cash value or replacement  cost of any  Collateral.
     The cost of such appraisal shall be paid by Borrower.

     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.  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  in  accordance  with  generally  accepted
     accounting  practices.  Borrower,  upon demand of Lender,  will  furnish to
     Lender  evidence of payment of the  assessments,  taxes,  charges,  levies,
     liens and claims and will authorize the appropriate  governmental  official
     to deliver to Lender at any time a written  statement  of any  assessments,
     taxes,  charges,  levies,  liens and claims against Borrower's  properties,
     income, or profits.

     Performance.  Perform and comply with all terms, conditions, and provisions
     set  forth  in this  Agreement  and in the  Related  Documents  in a timely
     manner,  and promptly notify Lender if Borrower learns of the occurrence of
     any event which  constitutes  an Event of Default  under this  Agreement or
     under any of the Related Documents.

     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  and in  compliance  with  all  applicable
     federal,  state and  municipal  laws,  ordinances,  rules  and  regulations
     respecting its properties,  charters, businesses and operations,  including
     without limitation, compliance with the Americans With Disabilities Act and
     with all minimum  funding  standards  and other  requirements  of ERISA and
     other laws applicable to Borrower's employee benefit plans.

     Inspection.  Permit employees or agents of Lender at any reasonable time to
     inspect any and all Collateral  for the Loan or Loans and Borrower's  other
     properties and 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 Certificate.  Unless waived in writing by Lender, provide Lender
     at least  annually and at the time of each  disbursement  of Loan  proceeds
     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 all environmental  protection federal, state and local laws, statutes,
     regulations and ordinances; not cause or permit to exist, as a result of an
     intentional or unintentional  action or omission on its 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.

     Additional Assurances.  Make, execute and deliver to Lender such promissory
     notes,   mortgages,   deeds  of  trust,   security  agreements,   financing
     statements,  instruments,  documents and other  agreements as Lender or its
     attorneys  may  reasonably  request to evidence and secure the Loans and to
     perfect all Security Interests.

NEGATIVE  COVENANTS.  Borrower  covenants and agrees with Lender that while this
Agreement is in effect, Borrower shall not, without the prior written consent of
Lender:

     Indebtedness.  Except for trade debt  incurred  in the  ordinary  course of
     business,   indebtedness   as  permitted  in  Exhibit  A  Section  4.5  and
     indebtedness to Lender  contemplated by this  Agreement,  create,  incur or
     assume indebtedness for borrowed money, including capital leases.

     Continuity   of   Operations.   (a)  Engage  in  any  business   activities
     substantially  different than those in which Borrower is presently engaged,
     (b) cease operations,  liquidate,  merge, transfer,  acquire or consolidate
     with any other  entity,  change  ownership,  change its name,  dissolve  or
     transfer or sell Collateral out of the ordinary course of business, (c) pay
     any  dividends on  Borrower's  stock (other than  dividends  payable in its
     stock),  provided,  however that notwithstanding the foregoing, but only so
     long as no Event of Default has occurred and is  continuing or would result
     from the payment of dividends,  if Borrower is a "Subchapter S Corporation"
     (as defined in the Internal Revenue Code of 1986, as amended), Borrower may
     pay cash  dividends on its stock to its  shareholders  from time to time in
     amounts  necessary to enable the  shareholders to pay income taxes and make
     estimated  income tax payments to satisfy their  liabilities  under federal
     and state law which arise  solely from their  status as  Shareholders  of a
     Subchapter S Corporation  because of their  ownership of shares of stock of
     Borrower, or (d) purchase or retire any of Borrower's outstanding shares or
     alter or amend Borrower's capital structure.

     Loans, Acquisitions and Guaranties. (a) Loan, invest in or advance money or
     assets,  (b)  purchase,  create  or  acquire  any  interest  in  any  other
     enterprise  or entity,  or (c) incur any  obligation as surety or guarantor
     other than in the ordinary course of business.

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  or any
Guarantor  has with Lender;  (b) Borrower or any  Guarantor  becomes  insolvent,
files a  petition  in  bankruptcy  or  similar  proceedings,  or is  adjudged  a
bankrupt;  (c) there occurs a material  adverse  change in Borrower's  financial
condition,  in the financial condition of any Guarantor,  or in the value of any
Collateral  securing  any Loan;  (d) any  Guarantor  seeks,  claims or otherwise
attempts to limit, modify or revoke such Guarantor's guaranty of the Loan or any
other loan with Lender; or (e) Lender in good faith deems itself insecure,  even
though no Event of Default shall have occurred.

EXHIBIT  "A".  By this  reference,  the  attached  Exhibit  "A" is hereby  fully
incorporated herein.

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

     Default on Indebtedness. Failure of Borrower to make any payment when due
     on the Loans.

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

     Default In Favor of Third Parties.  Should  Borrower or any Grantor default
     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  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 or on behalf of Borrower or any Grantor  under this
     Agreement or the Related  Documents is false or  misleading in any material
     respect at the time made or  furnished,  or becomes  false or misleading at
     any time thereafter.

     Defective Collateralization. This Agreement or any of the Related Documents
     ceases to be in full force and effect  (including  failure of any  Security
     Agreement to create a valid and  perfected  Security  Interest) at any time
     and for any reason.

     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.

     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, any creditor
     of any Grantor against any collateral securing the Indebtedness,  or by any
     governmental agency. This includes a garnishment, attachment, or levy on or
     of any of Borrower's deposit accounts with Lender.

     Events Affecting Guarantor. Any of the preceding events occurs with respect
     to any  Guarantor  of any of the  Indebtedness  or any  Guarantor  dies  or
     becomes  incompetent,  or revokes or disputes the validity of, or liability
     under, any Guaranty of the Indebtedness.

     Adverse Change. A material adverse change occurs in Borrower's financial
     condition, or Lender believes the prospect of payment or performance of the
     Indebtedness is impaired.

     Insecurity. Lender, in good faith, deems itself insecure.

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
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.

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.

     Applicable Law. This Agreement has been delivered to Lender and accepted by
     Lender in the State of Washington.  If there is a lawsuit,  Borrower agrees
     upon Lender's  request to submit to the jurisdiction of the courts situated
     In KING County,  the State of Washington.  This Agreement shall be governed
     by and construed in accordance with the laws of the State of Washington.

     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.

     Multiple Parties;  Corporate  Authority.  All obligations of Borrower under
     this Agreement  shall be joint and several,  and all references to Borrower
     shall mean each and every  Borrower.  This  means that each of the  persons
     signing below is responsible for all obligations in 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  Loans  to one or more  purchasers,  whether  related  or
     unrelated to Lender. 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 it 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 Loans 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 Loans irrespective of the failure or insolvency of any
     holder of any  interest  in the Loans.  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.

     Costs and  Expenses.  Borrower  agrees to pay upon  demand all of  Lender's
     expenses   incurred  in  connection   with  the   preparation,   execution,
     enforcement, modification and collection of this Agreement or in connection
     with the Loans made pursuant to this Agreement. Lender may pay someone else
     to help collect the Loans and to enforce this Agreement,  and Borrower will
     pay that amount. This includes, subject to any limits under applicable law,
     Lender's  legal  expenses,  whether  or not there is a  lawsuit,  including
     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 will pay any court costs,
     in addition to all other sums provided by law.

     Notices.  All notices  required to be given under this  Agreement  shall be
     given in writing,  may be sent by telefacsimile  (unless otherwise required
     by law), and shall be effective  when actually  delivered or when deposited
     with a nationally  recognized  overnight courier or deposited in the United
     States mail, first class,  postage prepaid,  addressed to the party to whom
     the notice is to be given at the address shown above.  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.  To the extent permitted by applicable law,
     if there is more than one Borrower,  notice to any Borrower will constitute
     notice to all  Borrowers.  For notice  purposes,  Borrower will keep Lender
     informed at all times of Borrower's current address(es). Borrower will give
     Lender  prior  written  notice of any  change of  either  Borrower's  legal
     structure or of any change of  Borrower's  chief  executive  office,  or if
     Borrower  has no place of  business,  Borrower's  residence,  and change of
     records location.

     Severability.  If a court of competent  jurisdiction finds any provision of
     this  Agreement  to be  invalid  or  unenforceable  as  to  any  person  or
     circumstance,  such  finding  shall not render  that  provision  invalid or
     unenforceable as to any other persons or  circumstances.  If feasible,  any
     such  offending  provision  shall be deemed to be modified to be within the
     limits of enforceability or validity;  however,  if the offending provision
     cannot be so  modified,  it shall be stricken and all other  provisions  of
     this Agreement in all other respects shall remain valid and enforceable.

     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 herein shall  include all  subsidiaries  and  affiliates  of Borrower.
     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 subsidiary or affiliate of Borrower.

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

     Survival. All warranties,  representations,  and covenants made by Borrower
     in this Agreement or in any  certificate or other  instrument  delivered by
     Borrower to Lender under this  Agreement  shall be  considered to have been
     relied upon by Lender and will  survive the making of the Loan and delivery
     to Lender of the Related Documents, regardless of any investigation made by
     Lender or on Lender's behalf.

     Waiver.  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
     obligations  of Borrower  or of any Grantor 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 in subsequent  instances where such consent is required,
     and in all cases  such  consent  may be  granted  or  withheld  in the sole
     discretion of Lender.

<PAGE>

BORROWER  ACKNOWLEDGES  HAVING  READ  ALL THE  PROVISION  OF THE  BUSINESS  LOAN
AGREEMENT,  AND BORROWER AGREES TO ITS TERMS. THIS AGREEMENT IS DATED AS OF JULY
5, 2000.

BORROWER:

SEMITOOL, INC.

By:  /s/Raymon F. Thompson                    By: /s/William A. Freeman
     ------------------------------               ------------------------------
     Raymon F. Thompson                           William A. Freeman
     Chairman & CEO                               Senior Vice President & CEO

LENDER:

BANK OF AMERICA, N.A.

By:  /s/Mark N. Crawford
     ------------------------------
     Authorized Officer

<PAGE>

                                 Bank of America

   EXHIBIT A TO BUSINESS LOAN AGREEMENT EXECUTED BY AND BETWEEN SEMITOOL, INC.
           AND BANK OF AMERICA, NA. AS OF July 5, 2000 ("AGREEMENT").

This  Exhibit  A is  attached  to and  fully  incorporated  into the  Agreement.
Statements  set  forth in this  exhibit  A  supplement  those  set  forth in the
Agreement.

1.   FINANCIAL ACCOMMODATIONS. The Agreement applies to all commercial loans and
     other  financial  accommodations  now or  hereafter  extended  by Lender to
     Borrower, including but without limitation those described below in detail:

     $40,000,000.00 Revolving Line of Credit.  Subject to the terms of the
     Agreement, Lender agrees to make loans to Borrower under a revolving line
     of credit as follows:

     (a)      Advances:  Direct  advances shall be available under the revolving
              line of credit up to the Commitment Amount (as defined below).

     (b)      Commitment Amount: "Commitment Amount" shall mean $40,000,000.00.

     (c)      Purpose: General Corporate purposes.

     (d)      Availability Period:  Advances are available from the date of this
              Agreement through April 1, 2001. However, if loans are made and/or
              new promissory notes executed after the termination  date, such
              advances will be subject to the terms of this  Agreement  until
              repaid  in full  unless a  written  statement signed by Lender 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 Lender to make any further
              advances or extend the availability period.

     (f)      Interest Rate: As set forth in a promissory note that documents
              this line of credit.

     (g)      Interest Rate Basis: As set forth in a promissory note that
              documents this line of credit.

     (h)      Repayment: As set forth in a promissory note that documents this
              line of credit.

     (i)      Loan Fee: $15,000.00 due on closing, fully earned and
              non-refundable.

     (j)      Fee on Unutilized  Portion of Line: 0.20% per annum based upon the
              average daily unused portion of the  commitment, payable quarterly
              in arrears.

2.   ONGOING  REPRESENTATIONS AND WARRANTIES.  When Borrower signs the Agreement
     and until the Lender is repaid in full and all financial accommodations are
     cancelled,  Borrower makes the following  representations and warranties to
     Lender on the date of the  Agreement  and again at the time of each advance
     under the Agreement:

     2.1      Other  Obligations.  Borrower is not in default on any obligation
              for borrowed money,  any purchase money obligation or any other
              material lease, commitment, contract, instrument or obligation.

     2.2      No Defaults. There is no event which is, or with  notice  or lapse
              of time or both would be, an Event of Default under the Agreement.

     2.3      Borrower  will provide  Representation  and Warranty as to (a)
              valid corporate  existence,  (b) all taxes due have been paid, (c)
              authority to Borrow,  (d) this  borrowing will not cause violation
              of any other lending agreement.

3.   ADDITIONAL  CONDITIONS  PRECEDENT TO EACH ADVANCE:  Lender's  obligation to
     make the initial  advance  under the  Agreement as well as each  subsequent
     advance under the Agreement shall be subject to the fulfillment to Lender's
     satisfaction of all the additional conditions set forth below:

     3.1      Delivery to Lender by Borrower of an executed Corporate Borrowing
              Resolution and Promissory Note.

4.   ADDITIONAL COVENANTS. Borrower agrees, so long as credit is available under
     the  Agreement  and  until the  Lender is repaid in full and all  financial
     accommodations are cancelled, to:

     4.1      Financial Information. To provide the following financial
              information and statements in form and content acceptable to
              Lender, and such additional information as requested by Lender
              from time to time:

              (a)   Within  90  days  of  Borrower's fiscal year end, Borrower's
                    annual financial statements. These financial statements must
                    be audited by a Certified Public Accountant acceptable   to
                    Lender.   The statements shall be prepared on a consolidated
                    basis.

              (b)   Within 45 days of the period's end, Borrower's quarterly
                    financial statements. These financial statements may be
                    Borrower prepared. The statements shall be prepared on a
                    consolidated basis.

              (c)   Within the period(s) provided in (a) and (b) above, a
                    compliance  certificate  of  Borrower  signed  by  a
                    authorized  financial  officer  of  Borrower  setting  forth
                    (i)  the  information  and   computations  (in  sufficient
                    detail) to establish that Borrower is in compliance with all
                    financial covenants at the end of the period covered by the
                    financial statements  then being  furnished and (ii) whether
                    there existed as of the date of such  financial  statements
                    and  whether there exists as of the date of the certificate,
                    any default under this Agreement and, if any such default
                    exists,  specifying the nature thereof and the action
                    Borrower is taking and proposes to take with respect
                    thereto.

     4.2      Tangible Net Worth. To maintain on a consolidated basis the sum of
              the following:

              (a)   Seventy Million Dollars ($70,000,000.00); plus

              (b)   the  sum  of 50% of net  income  after  income  taxes
                    (without subtracting losses) earned in each quarterly
                    accounting period commencing after June 30, 1999, and not
                    permit Borrower's total indebtedness which is not
                    subordinated  in a  manner  satisfactory  to  Bank to
                    exceed 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.

     4.3      Debt Coverage  Ratio.  To maintain on a consolidated  basis a Debt
              Coverage Ratio of at least  1.50:1.0,  measured quarterly based on
              immediately preceding four quarters financial results.

              "Debt   Coverage   Ratio"  is  defined  as  (Net  income  plus
              Depreciation  plus   Amortization  less  Maintenance   Capital
              Expenditures  (defined as  $3,000,000.00)  less  Dividends) by
              (Current  Portion  Long  Term  Debt).   Compliance  with  this
              covenant is not required  until the beginning of the Term Loan
              Period April 1, 2001.

     4.4      Trading Asset Ratio. To maintain on a consolidated basis a Trading
              Asset Ratio of at least 1.40:1.0,  to be measured quarterly.

              "Trading Asset Ratio" is defined as (Trade Account Receivables
              plus Inventory) by (Bank Credit Line plus Trade Payables).

     4.5      Maximum Debt.  Total  indebtedness  which is not subordinated in a
              manner  satisfactory  to  Bank to exceed  Borrower's  Tangible Net
              Worth.

     4.6      Notices to Lender. To promptly notify Lender in writing of any
              lawsuit and any actual or potential contingent  liabilities   over
              Two Hundred Fifty Thousand Dollars ($250,000.00) against  Borrower
              (or any guarantor).

     4.7      No Disposal of Assets  Outside Ordinary Course of Business. Not to
              sell, assign, lease,  transfer or otherwise dispose of any part of
              Borrower's  business or Borrower's  assets except in the  ordinary
              course of Borrower's business.

     4.8      Not to Suspend Business.  Not to, without Lender's written consent
              voluntarily  suspend its business for more than a 30-day period.

     4.9      Agreement to Provide Collateral.

              (a)   If at  any time 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  it's 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.

              (b)   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.

     4.10     Payment  of  Dividends.  Borrower  will not, without  Bank's prior
              written consent,  declare  any  dividends,  on  any  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.   DEFAULT.  If any of the following events occurs,  Lender may do one or more
     of the following:  declare Borrower in default,  stop making any additional
     credit available to Borrower, and require Borrower to repay its entire debt
     immediately and without prior notice.

     5.1      Judgments.  Any  judgments or  arbitration  awards are entered
              against   Borrower  (or  any  guarantor),  or  Borrower  (or  any
              guarantor) enters into any settlement  agreements with respect  to
              any  litigation or  arbitration,  in  an  aggregate  amount of One
              Hundred Thousand Dollars ($100,000.00) or more.

     5.2      Dissolution. Borrower ceases to exist as a going concern.

     5.3      Material Adverse Change. The occurrence of any event or
              combination of events which causes Bank reasonably to believe that
              Borrower will not be able to perform its obligations under the
              Agreement.

This Exhibit A to Agreement is executed as of the date stated on the Agreement.

BANK OF AMERICA, N.A.                     SEMITOOL, INC.

By   /s/Mark N. Crawford                  By  /s/Raymon F. Thompson
     ----------------------------------       ----------------------------------
Name: Mark N. Crawford                        Name: Raymon F. Thompson
Title: Vice President                         Title: Chairman & CEO

                                          By  /s/William A. Freeman
                                              ----------------------------------
                                              Name: William A. Freeman
                                              Title: Senior Vice President & CEO

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