EXHIBIT 10.26

                                                                      One of Two

April 21, 1998

Mr. Fabio Gualandris

Dear Fabio,

It is my pleasure to offer you the position of President/CEO of Semitool, Inc.

We want to review the offer in detail to allow you to quantify the package.  Ray
indicated he wanted the offer to be simple, to convey his trust in you, and most
important to address your family concerns.  The following letter and attachments
outline  both the  terms of the  offer  and  provide  detailed  descriptions  of
Semitool's 401(k) plan, insurance programs, etc.

     A.   Direct Compensation.  Fabio, there are three major elements in this 
          section including base salary, stock options and management bonus.

         1. Your start date will be October 1, 1998. The base salary will be 
            $260,000.00 per year, paid semi-monthly.

         2. You will receive an option for 100,000  shares of Semitool  common
            stock, subject to the provisions of the stock option agreement and
            Board approval.  We have included a copy of the agreement for your
            review. The plan provides for vesting over a five-year period with
            5% of the options  vested each  quarter.  The plan provides a very
            long period of 10 years from the time of vesting to  exercise  the
            option.

         3. We would like to have a mechanism to reward you for achieving both
            tactical and strategic goals that are not necessarily reflected in
            the stock price. Your contribution to the company's  performance 
            will be reviewed by the board.  You will be judged on the  overall
            health of Semitool  and  compensated appropriately.    Performance
            to these objectives will be reviewed by the Board on at least an
            annual basis.  There is no set limit for the bonus, but a 
            commitment from Ray and the board that performance will be fairly 
            rewarded.

     B.  Additional  Compensation/Transition  Assistance.  Fabio,  we  recognize
         moving to the Flathead Valley and working for Semitool is a significant
         career move. As part of the offer we have included a number of items to
         facilitate the transition.

         4. Semitool will provide you with a relocation  assistance  allowance
            of $120,000.00 to cover all moving expenses  including  relocation
            of your family,  subsequent trips to Italy to accomplish the move,
            as well as moving  household  goods or the  purchase of  household
            goods in the U.S.

         5. In  addition,  a  company  car  will be made  available  for  your
            business and personal use during your term of employment.



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                                                                      Two of Two
                                                                   F. Gualandris


         6. Semitool will cover the rent on your home in Kalispell for the first
            six months of employment.

         7. To help Paola  settle in the area,  Semitool  will  provide a leased
            vehicle for the first six months she is in the Flathead.

     C.   Other Benefits & Considerations. Fabio, to protect you and Semitool, 
          we have to include a number of legal considerations regarding the 
          offer.

         8. Per Ray's recommendation,  you will receive four weeks annual paid
            vacation. This item subject to company scheduling.

         9. You will be  eligible  for all  Semitool's  401(k),  insurance,  and
            medical plans as described in the attached  information.  (The firs
            of the month following employment.)

         10.As a condition  of your  employment  you will be required to sign a
            confidentiality/conflict of interest agreement.

         11.In the  unlikely  event you or Semitool  determines  this  working
            relationship  is not to continue,  we will  provide a  $200,000.00
            severance package to defray the cost of your relocation. This item
            will be in effect for two years  beginning  with your first day of
            employment.

         12.None of the above terms of this offer  represents  an  agreement by
            yourself or  Semitool,  Inc.  for any specific length of employment.
            Either you or  Semitool  may,  at any time, terminate the employment
            relationship  upon  notice to the other party.  As with all Semitool
            employment positions there is a 90 day probationary period.

            Any  controversy or claim arising out of termination of employment
            after  your  probationary  period  has  expired shall be settled  by
            arbitration as provided in Montana's Uniform  Arbitration Act,
            27-5-211 et. Seq., MCA. The laws of Montana shall apply.

         13.All of the compensation is subject to applicable tax laws.

Fabio, in putting  together this offer,  Ray and the Board have tried to address
your  immediate  cash needs,  provide  security for your move,  and give you the
chance to significantly  benefit from the performance of the company. We want to
make the family transition as easy as possible.  We want you to be a part of our
success.


/s/Raymon Thomspon                             /s/John Osborne
--------------------------------               ---------------------------------
Raymon Thompson                                John Osborne
Chairman                                       for the CEO Selection Committee,
                                               Board of Directors



I accept your offer and my start date          Fabio Gualandris
will be   10-01-98                             /s/Fabio Gualandris
                                               ---------------------------------