Item 1.01. Entry into a Material Definitive Agreement

On August 1, 2012, the Board of Directors of Tegal Corporation (the "Company") granted each of the Company's non-employee directors an option to purchase 5,000 shares of the Company's common stock, with a per share exercise price of $3.4699 (which was the closing sale price of the Company's common stock on August 1, 2012, as reported by the Nasdaq Stock Market). The non-employee directors of the Company are Gilbert Belini, Jeffrey M. Krauss and Carl Muscari. The options are fully vested and were granted under the Tegal Corporation 2007 Incentive Plan.

Item 5.02. Departure of Directors or Principal Officers; Election of Directors;
Appointment of Principal Officers; Compensatory Arrangements of Certain Officers

Reference is made to Item 1.01 above regarding the stock option grants to the following non-employee directors of the Company: Gilbert Belini, Jeffrey M. Krauss and Carl Muscari.