Item 1.01 Entry into a Material Definitive Agreement

On May 12, 2009, KMG Electronic Chemicals, Inc., a subsidiary of KMG Chemicals, Inc., entered into a purchase agreement with Intel Corporation ("Intel") by which Intel will purchase certain of our wet process electronic chemicals. Our products are used by Intel at certain of its fabricating facilities worldwide for the production of semiconductors. Intel has been purchasing electronic chemicals from us since we acquired that business from Air Products and Chemicals, Inc., in December 2007, and this agreement formalizes that arrangement. The agreement has a term ending December 31, 2010, subject to renewal on notice by the parties.

A copy of the agreement is attached as Exhibit 10.45 to this Current Report on Form 8-K and is incorporated herein by reference.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits.

10.45 Purchase Agreement dated December 31, 2007 between the company and Intel Corporation

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