Document:

EXHIBIT 10.1

                Intellectual Property Assignment and Bill of sale

      This Intellectual Property Assignment and Bill of Sale (this "Agreement")
is entered into as of August 2, 2004 (the "Effective Date"), by and between
Medstretch, Inc. a corporation organized in the State of Nevada ("Seller"), and
Dr. Kim Partridge, a resident of Ontario, Canada ("Purchaser").

                                    RECITALS

      WHEREAS, Seller is a party to that certain share exchange agreement, dated
August 2, 2004 (the "Exchange Agreement");

      WHEREAS, pursuant to the Exchange Agreement, Seller has agreed to
irrevocably transfer and assign to Purchaser all of its right, title and
interest, on a worldwide basis, in, to and under the assets, which includes
certain items of intellectual property, relating to muscular - skeletal
programs.

      NOW, THEREFORE, for the return to the Seller of all the shares of common
stock held in the Seller by Purchaser and certain other shares, all of which are
to be cancelled and returned to the status of authorized but unissued shares of
Common Stock, the receipt and sufficiency of which hereby acknowledged, the
parties hereby agree as follows:

                                    AGREEMENT

1.    ASSIGNMENT

1.1 Intellectual Property and Assets. Seller hereby irrevocably sells,
transfers, conveys, assigns and delivers all of its right, title and interest of
every kind and character throughout the world in, to and under the assets and
intellectual property relating to muscular -skeletal programs owned by Seller to
the full extent of its ownership or interest therein, including, without
limitation, good will, all rights and causes of action for infringement or
misappropriation (past, present or future) of any such intellectual property,
all rights to apply for or register any of the foregoing, and any and all other
rights and interests arising out of, in connection with or in relation to the
intellectual property. At Closing, if requested, Seller shall execute and
deliver to Purchaser a confirmatory assignment agreement covering, if and to the
extent included in the intellectual property: (i) each registered trademark and
all applications for registration of trademarks for filing with any appropriate
patent and trademark registry, in the form acceptable to the Purchaser; (ii)
each registered Copyright and all applications for registration of Copyrights
for filing with any appropriate copyright registry, in the form acceptable to
the Purchaser; and (iii) each Internet domain name for filing and submission as
necessary to transfer such domain names, in the form acceptable to the Purchaser
or in such other form as necessary to transfer such domain names (collectively
the "Confirmatory Assignments").

1.2 Further Actions. Upon Purchaser's request, Seller will promptly take such
other actions as may be reasonably necessary to vest, secure, perfect, protect
or enforce the rights and interests of Purchaser in, to and under the
intellectual property, and Purchaser shall pay for Seller's actual and
reasonable expenses and costs. Such actions shall include, without limitation,
the prompt execution and delivery of documents in recordable form (including the
prompt execution and delivery of additional Confirmatory Assignments) and the
provision of documents and information useful or necessary for Purchaser,

                                      -1-
<PAGE>

designees or agents to file, prosecute or maintain any registration or
application for any intellectual property, or pursue or defend any
administrative, court, or other legal proceeding involving any of the
intellectual property.

1.3 Appointment. In the event that Purchaser is unable, after reasonable notice
to Seller (and passage of at least five business days from the date such notice
is delivered), for any reason whatsoever, to secure Seller's signature to any
document that is reasonably necessary to vest, secure, perfect, protect or
enforce the rights and interests of Purchaser in and to the intellectual
property, Seller hereby irrevocably designates and appoints Purchaser and its
duly authorized officers and agents as Seller's agents and attorneys-in-fact, to
act for and on its behalf and instead of Seller, to execute and file any such
documents and to do all other lawfully permitted acts to further the purposes of
this Section with the same legal force and effect as if executed by Seller.

2. MISCELLANEOUS. Sections 11.4 through 11.13 of the Exchange Agreement are
hereby incorporated herein by this reference; provided that references to
"Agreement," "hereto," "hereunder," and similar references in such sections
shall pertain to this Agreement.

              [REST OF PAGE INTENTIONALLY LEFT BLANK]

                                      -2-
<PAGE>

IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by
their duly authorized representatives as of the Effective Date.

SELLER                            PURCHASER

By: /s/ Dr. Kimberly Partridge         By: /s/ Ari Markow
    -------------------------              -------------------------

Name (Print): Kimberly Partridge       Name (Print): Ari Markow
              ------------------                    ----------------
Title:        President                Title:       President

                                      -3-REGISTRATION RIGHTS AGREEMENT

      THIS REGISTRATION RIGHTS AGREEMENT (the "Agreement") is made and entered
into this 28th day of May, 2004 by and among (i) Tegal Corporation, a Delaware
corporation ("Tegal"), (ii) First Derivative Systems, Inc., a California
corporation ("FDSI"), and (iii) Andy Clarke, in his capacity as the
representative (the "Shareholders' Representative") of all of the shareholders
and creditors of FDSI who will receive shares of common stock of Tegal upon
execution of FDSI's Plan of Dissolution.

                                 R E C I T A L S

      A. On April 28, 2004 Tegal and FDSI entered into an Asset Acquisition
Agreement (the "Asset Acquisition Agreement") pursuant to which Tegal has agreed
to purchase substantially all of the assets, and certain liabilities, of FDSI in
exchange of One Million Four Hundred Ten Thousand Six Hundred and Forty-two
(1,410,632) shares (the "Tegal Shares") of Common Stock (as defined in Section 1
below).

      B. In accordance with Section 9 of the Asset Acquisition Agreement, Tegal
has agreed to grant certain registration rights to holders of the Tegal Shares
and other Registrable Securities (as defined in Section 1 below).

      C. Tegal and FDSI enter into this Agreement to memorialize such
registration rights.

      D. Shareholders' Representative joins this Agreement as a party in
accordance with Section 14 of the Shareholder Representation Agreement by and
between Tegal and each of the shareholders and creditors of FDSI (all of whom
are listed on Exhibit A to this Agreement) as FDSI intends to dissolve and
distribute the Tegal Shares to certain of its shareholders and creditors soon
after the closing of the transactions contemplated in the Asset Acquisition
Agreement.

                                   AGREEMENTS

      NOW, THEREFORE, in consideration of the premises, and of the mutual
covenants and agreements contained herein and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties hereto hereby agree as follows:

      1. Definitions. In addition to capitalized terms defined elsewhere in this
Agreement, the following capitalized terms shall have the following meaning when
used in this Agreement. Defined terms used, but not defined, herein shall have
the meanings ascribed to them as set forth in the Asset Acquisition Agreement.

      1.1 "Common Stock" means the common stock, par value $0.01 per share, of
Tegal.

      1.2 "Exchange Act" means the Securities Exchange Act of 1934, as amended.

                                       1
<PAGE>

      1.3 "Person" means any person or entity, whether an individual, whether in
their capacity as a trustee, executor, administrator or other legal
representative, sole proprietorship, corporation, limited liability company,
general partnership, limited partnership, trust, unincorporated organization,
syndicate, business association, firm, joint venture, governmental agency or
authority or any similar entity.

      1.4 "Public Offering" means any offering by Tegal of its equity securities
to the public pursuant to an effective registration statement under the
Securities Act or any comparable statement under any comparable federal statute
then in effect.

      1.5 "Registrable Shares" means at any time (i) the Tegal Shares; (ii) any
shares of Common Stock then outstanding which were issued directly or indirectly
as a dividend or other distribution with respect to or in replacement of the
Tegal Shares; and (iii) any shares of Common Stock then issuable directly or
indirectly upon the conversion or exercise of other securities which were issued
as a dividend or other distribution with respect to or in replacement of the
Tegal Shares or the shares referred to in (ii); provided, however, that
Registrable Shares shall not include any shares which have been registered
pursuant to the Securities Act or which have been sold pursuant to Rule 144 of
the Securities Act. For purposes of this Agreement, a Person will be deemed to
be a holder of Registrable Shares whenever such Person has the right to acquire
such Registrable Shares, whether or not such acquisition actually has been
effected.

      1.6 "SEC" means the Securities and Exchange Commission.

      1.7 "Securities Act" means the Securities Act of 1933, as amended.

      2. Registration Rights.

      2.1 Registration. Within ninety (90) days of the Closing, Tegal will file
a single Form S-3 with the SEC to register the resale of the Registrable Shares
by the holders thereof.

      2.2 Payment of Expenses for the Registration. Registration Expenses (as
defined in Section 5 below) shall be paid by Tegal.

      2.3 Restrictions. Tegal may postpone for up to forty-five (45) days the
filing or the effectiveness of a registration statement for the Demand
Registration if the Board of Directors of Tegal reasonably and in good faith
determines that such filing would be materially detrimental to Tegal or require
a disclosure of a material fact that might reasonably be expected to have a
material adverse effect on Tegal or any plan or proposal by Tegal or any of its
subsidiaries to engage in any acquisition of assets (other than in the ordinary
course of business) or any merger, consolidation, tender offer or other
significant transaction.

      2.4 No Underwritten Offering. The holders of the Registrable Shares hereby
agree that they shall not sell the Registrable Shares in an underwritten
offering.

                                       2
<PAGE>

      3. Registration Procedures. Tegal will use its reasonable best efforts to
effect the registration and sale of such Registrable Shares in accordance with
the intended method of disposition thereof and, pursuant thereto, Tegal will as
expeditiously as possible:

      a. prepare and file with the SEC a registration statement with respect to
      such Registrable Shares and use its reasonable best efforts to cause such
      registration statement to become effective (provided that before filing a
      registration statement or prospectus, or any amendments or supplements
      thereto, Tegal will furnish upon request copies of all such documents
      proposed to be filed to the counsel or counsels for the sellers of the
      Registrable Shares covered by such registration statement);

      b. prepare and file with the SEC such amendments and supplements to such
      registration statement and the prospectus(es) used in connection therewith
      as may be necessary to keep such registration statement effective for a
      period of not less than one (1) year or such shorter period until such
      Registrable Shares are no longer Registrable Shares and comply with the
      provisions of the Securities Act with respect to the disposition of all
      securities covered by such registration statement during such period in
      accordance with the intended methods of disposition by the sellers thereof
      set forth in such registration statement;

      c. furnish to each seller of Registrable Shares such number of copies of
      such registration statement, each amendment and supplement thereto, the
      prospectus(es) included in such registration statement (including each
      preliminary prospectus) and such other documents as such seller may
      reasonably request in order to facilitate the disposition of the
      Registrable Shares owned by such seller;

      d. use its reasonable best efforts to register or qualify such Registrable
      Shares under such other securities or blue sky laws of such jurisdictions
      as any seller reasonably requests and do any and all other acts and things
      which may be reasonably necessary or advisable to enable such seller to
      consummate the disposition in such jurisdictions of the Registrable Shares
      owned by such seller (provided that Tegal will not be required to (i)
      qualify generally to do business in any jurisdiction where it would not
      otherwise be required to qualify but for this subparagraph or (ii) consent
      to general service of process in any such jurisdiction);

      e. notify each seller of such Registrable Shares, at any time when a
      prospectus relating thereto is required to be delivered under the
      Securities Act, of the happening of any event as a result of which the
      prospectus included in such registration statement contains an untrue
      statement of a material fact or omits any fact necessary to make the
      statements therein not misleading, and, at the request of any such seller,
      Tegal will prepare a supplement or amendment to such prospectus so that,
      as thereafter delivered to the purchasers of such Registrable Shares, such
      prospectus will not contain any untrue statement of a material fact or
      omit to state any fact necessary to make the statements therein not
      misleading;

                                       3
<PAGE>

      f. cause all such Registrable Shares to be listed on each securities
      exchange on which similar securities issued by Tegal are then listed or if
      no such securities are then listed, such securities exchange as the
      holders of a majority of the Registrable Shares included in such
      registration may reasonably request;

      g. make available for inspection by any seller of Registrable Shares and
      any attorney, accountant or other agent retained by any such seller, all
      financial and other records, pertinent corporate documents and properties
      of Tegal, and cause Tegal's officers, directors, employees and independent
      accountants to supply all information reasonably requested by any such
      seller, attorney, accountant or agent in connection with such registration
      statement; and

      h. advise each seller of such Registrable Shares, promptly after it shall
      receive notice or obtain knowledge thereof, of the issuance of any stop
      order by the SEC suspending the effectiveness of such registration
      statement or the initiation or threatening of any proceeding for such
      purpose and promptly use all reasonable efforts to prevent the issuance of
      any stop order or to obtain its withdrawal if such stop order should be
      issued.

      4. Registration Expenses. All expenses incident to Tegal's performance of
or compliance with this Agreement, including, but not limited to, all
registration and filing fees, fees and expenses of compliance with securities or
blue sky laws, printing expenses, messenger and delivery expenses, and fees and
disbursements of counsel for Tegal and all independent certified public
accountants and other Persons retained by Tegal (all such expenses being herein
called "Registration Expenses"), will be borne by Tegal, provided that Tegal
shall not be required to pay sales commissions, discounts or transfer taxes. In
addition, Tegal will pay its internal expenses (including, but not limited to,
all salaries and expenses of its officers and employees performing legal or
accounting duties), the expense of any annual audit or quarterly review, the
expense of any liability insurance obtained by Tegal and the expenses and fees
for listing the securities to be registered on each securities exchange.

      5. Indemnification.

      5.1 By Tegal. Tegal agrees to indemnify, to the extent permitted by law,
      each holder of Registrable Shares, its officers, employees and directors
      and each Person who controls such holder (within the meaning of the
      Securities Act) against all losses, claims, damages, liabilities and
      expenses (including, but not limited to, attorneys' fees and expenses)
      caused by any untrue or alleged untrue statement of material fact
      contained in any registration statement, prospectus or preliminary
      prospectus, or any amendment thereof or supplement thereto, or any
      omission or alleged omission of a material fact required to be stated
      therein or necessary to make the statements therein not misleading, except
      insofar as the same are caused by or contained in any information
      furnished in writing to Tegal by such holder expressly for use therein or
      by such holder's failure to deliver a copy of the prospectus or any
      amendments or supplements thereto after Tegal has furnished such holder
      with a sufficient number of copies of the same. The payments required by
      this Section 5.1 will be made periodically during the course of the
      investigation or defense, as and when bills are received or expenses
      incurred.

                                       4
<PAGE>

      5.2 By Each Holder. In connection with any registration statement in which
      a holder of Registrable Shares is participating, each such holder will
      furnish to Tegal in writing such information as Tegal reasonably requests
      for use in connection with any such registration statement or prospectus
      and, to the extent permitted by law, will indemnify Tegal, its directors,
      employees and officers and each Person who controls Tegal (within the
      meaning of the Securities Act) against any losses, claims, damages,
      liabilities and expenses resulting from any untrue or alleged untrue
      statement of material fact contained in the registration statement,
      prospectus or preliminary prospectus, or any amendment thereof or
      supplement thereto, or any omission or alleged omission of a material fact
      required to be stated therein or necessary to make the statements therein
      not misleading, but only to the extent that such untrue statement or
      omission is contained in or omitted from any information so furnished in
      writing by such holder for the acknowledged purpose of inclusion in such
      registration statement, prospectus or preliminary prospectus; provided
      that the obligation to indemnify will be several, not joint and several,
      among such holders of Registrable Shares and the liability of each such
      holder of Registrable Shares will be in proportion to and limited in all
      events to the net amount received by such holder from the sale of
      Registrable Shares pursuant to such registration statement.

      5.3 Procedure. Any Person entitled to indemnification hereunder will (a)
      give prompt written notice to the indemnifying Person of any claim with
      respect to which it seeks indemnification and (b) unless in such
      indemnified Person's reasonable judgment a conflict of interest between
      such indemnified and indemnifying parties may exist with respect to such
      claim, permit such indemnifying Person to assume the defense of such claim
      with counsel reasonably satisfactory to the indemnified Person. If such
      defense is assumed, the indemnifying Person will not be subject to any
      liability for any settlement made by the indemnified Person without its
      consent (but such consent will not be unreasonably withheld). An
      indemnifying Person who is not entitled to, or elects not to, assume the
      defense of a claim will not be obligated to pay the fees and expenses of
      more than one counsel for all parties indemnified by such indemnifying
      Person with respect to such claim, unless in the reasonable judgment of
      any indemnified Person a conflict of interest may exist between such
      indemnified Person and any other of such indemnified parties with respect
      to such claim.

      5.4 Survival. The indemnification provided for under this Agreement will
      remain in full force and effect regardless of any investigation made by or
      on behalf of the indemnified Person or any officer, director or
      controlling Person of such indemnified Person and will survive the
      transfer of securities. Tegal also agrees to make such provisions as are
      reasonably requested by any indemnified Person for contribution to such
      Person in the event Tegal's indemnification is unavailable for any reason.

      6. Compliance with Rule 144 and Rule 144A. So long as Tegal files reports
under Section 13 or 15(d) of the Exchange Act, then at the request of any holder
of Registrable Shares who proposes to sell securities in compliance with Rule
144 of the Securities Act, Tegal will (a) forthwith furnish to such holder a
written statement of compliance with the filing requirements of the Securities
Act as set forth in Rule 144, as such rule may be amended from time to time and
(b) make available to the public and such holders such information as will
enable the holders of Registrable Shares to make sales pursuant to Rule 144. At
any time that Tegal is not subject to Section 13 or 15(d) of the Exchange Act,
Tegal will provide to the holder of Registrable Shares and to any prospective
purchaser of Registrable Shares under Rule 144A of the Securities Act, the
information described in Rule 144A(d)(4) of the Securities Act.

                                       5
<PAGE>

      7. Miscellaneous.

      7.1 No Inconsistent Agreements. Tegal will not hereafter enter into any
      agreement with respect to its securities which is inconsistent with or
      which otherwise materially limits, restricts or interferes with the rights
      granted to the holders of Registrable Shares in this Agreement.

      7.2 Amendments and Waivers. Except as otherwise expressly provided herein,
      the provisions of this Agreement may be amended or waived at any time only
      by the written agreement of Tegal, FDSI and the Shareholders'
      Representative (unless FDSI has distributed the Tegal Shares to its
      creditors and shareholders, in which case FDSI need not approve the
      amendment or waiver); provided, however, that the provisions of this
      Agreement may not be amended or waived without the consent of the holders
      of all the Registrable Shares adversely affected by such amendment or
      waiver if such amendment or waiver adversely affects a portion of the
      Registrable Shares but does not so adversely affect all of the Registrable
      Shares. Any waiver, permit, consent or approval of any kind or character
      on the part of any such holders of any provision or condition of this
      Agreement must be made in writing and shall be effective only to the
      extent specifically set forth in writing. Any amendment or waiver effected
      in accordance with this paragraph shall be binding upon each holder of
      Registrable Shares and Tegal.

      7.3 Successors and Assigns. Except as otherwise expressly provided herein,
      all covenants and agreements contained in this Agreement by or on behalf
      of any of the parties hereto will bind and inure to the benefit of the
      respective successors and assigns of the parties hereto, whether so
      expressed or not. In addition, and whether or not any express assignment
      has been made, the provisions of this Agreement which are for the benefit
      of FDSI, the shareholders of FDSI or holders of Registrable Shares are
      also for the benefit of, and enforceable by, any subsequent holders of
      such Registrable Shares.

      7.4 Descriptive Headings. The descriptive headings of this Agreement are
      inserted for convenience of reference only and do not constitute a part of
      and shall not be utilized in interpreting this Agreement.

      7.5 Notices. Any notices required or permitted to be sent hereunder shall
      be delivered personally or mailed, certified mail, return receipt
      requested, or delivered by overnight courier service to the following
      addresses, or such other address as any party hereto designates by written
      notice to Tegal, and shall be deemed to have been given upon delivery, if
      delivered personally, three (3) days after mailing, if mailed, or one (1)
      business day after delivery to the courier, if delivered by overnight
      courier service.

                                       6
<PAGE>

 If to FDSI:                                With a copy to:
    Andy Clarke                                Richard I. Wideman, Esq.
    Chairman & CEO                             1216 State Street, #602
    First Derivative Systems, Inc.             Santa Barbara, CA  93101
    700-C Becknell Road                        Fax:  805-884-9531
    Goleta, CA  93117                          email:  riw@firstdsystems.com
    Fax:  (805) 692-2382
    email:  andy@firstdsystems.com

If to Stockholders' Representative:
    Andy Clarke
    Chairman & CEO
    First Derivative Systems, Inc.
    700-C Becknell Road
    Goleta, CA  93117
    Fax:  (805) 692-2382
    email:  andy@firstdsystems.com

If to Tegal:                                With a copy to:
    Thomas R. Mika                             Scott Willoughby
    Chief Financial Officer                    Latham & Watkins LLP
    Tegal Corporation                          505 Montgomery Street, Suite 1900
    2201 South McDowell Blvd.                  San Francisco, CA  94111-2562
    Petaluma, CA  94954-6903                   Fax:  (415) 395-8095
    Fax:  (707) 763-0436                       email:  scott.willoughby@lw.com
    email:  tmika@tegal.com

If to holders of the Registrable Shares other than FDSI or the shareholders of
FDSI, to the addresses set forth on the stock record books of Tegal.

      7.6 Execution in Counterparts. This Agreement may be executed in any
      number of counterparts, each of which when so executed and delivered shall
      be deemed an original, and such counterparts together shall constitute one
      instrument.

                                       7
<PAGE>

      7.7 Governing Law. This Agreement and the transactions contemplated hereby
      shall be construed in accordance with, and governed by, the laws of the
      State of California; provided, however, that matters of Delaware corporate
      law shall be governed by the Delaware General Corporation Law.

      7.8 Consent to Jurisdiction. Each of the parties hereto (a) consents to
      submit itself to the personal jurisdiction of the federal and state courts
      located in Petaluma, California in the event any dispute arises out of
      this Agreement or any of the transactions contemplated hereby, (b) agrees
      that it will not attempt to deny or defeat such personal jurisdiction by
      motion or other request for leave from any such court, and (c) agrees that
      it will not bring any action relating to this Agreement in any court other
      than a federal or state court located in Petaluma, California.

      7.9 WAIVER OF JURY TRIAL. EACH OF THE PARTIES HERETO HEREBY WAIVES ITS
      RESPECTIVE RIGHT TO A JURY TRIAL OF ANY PERMITTED CLAIM OR CAUSE OF ACTION
      ARISING OUT OF THIS AGREEMENT, ANY OF THE TRANSACTIONS CONTEMPLATED
      HEREBY, OR ANY DEALINGS BETWEEN ANY OF THE PARTIES HERETO RELATING TO THE
      SUBJECT MATTER OF THIS AGREEMENT OR ANY OF THE TRANSACTIONS CONTEMPLATED
      HEREBY. THE SCOPE OF THIS WAIVER IS INTENDED TO BE ALL ENCOMPASSING OF ANY
      AND ALL DISPUTES THAT MAY BE FILED IN ANY COURT AND THAT RELATE THE
      SUBJECT MATTER OF THIS AGREEMENT OR ANY OF THE TRANSACTIONS CONTEMPLATED
      HEREBY, INCLUDING, WITHOUT LIMITATION, CONTRACT CLAIMS, TORT CLAIMS, AND
      ALL OTHER COMMON LAW AND STATUTORY CLAIMS. THIS WAIVER IS IRREVOCABLE,
      MEANING THAT IT MAY NOT BE MODIFIED EITHER ORALLY OR IN WRITING, AND THIS
      WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, SUPPLEMENTS OR OTHER
      MODIFICATIONS TO THIS AGREEMENT, ANY OF THE TRANSACTIONS CONTEMPLATED
      HEREBY OR TO ANY OTHER DOCUMENT OR AGREEMENT RELATING TO THE TRANSACTIONS
      CONTEMPLATED HEREBY.

      7.10 Service of Process. Each of the parties hereto irrevocably consents
      to the service of any process, pleading, notices or other papers by the
      mailing of copies thereof by registered, certified or first class mail,
      postage prepaid, to such party at such party's address set forth herein,
      or by any other method provided or permitted under California law.

      7.11 Reproduction of Documents. This Agreement and all documents relating
      hereto, including, but not limited to, (a) consents, waivers, amendments
      and modifications which may hereafter be executed and (b) certificates and
      other information previously or hereafter furnished, may be reproduced by
      any photographic, photostatic, microfilm, optical disk, micro-card,
      miniature photographic or other similar process. The parties agree that
      any such reproduction shall be admissible in evidence as the original
      itself in any judicial or administrative proceeding, whether or not the
      original is in existence and whether or not such reproduction was made by
      a party in the regular course of business, and that any enlargement,
      facsimile or further reproduction of such reproduction shall likewise be
      admissible in evidence.

      7.12 Remedies. Each of the parties to this Agreement will be entitled to
      enforce its rights under this Agreement specifically, to recover damages
      by reason of any breach of any provision of this Agreement and to exercise
      all other rights existing in its favor. The parties hereto agree and
      acknowledge that money damages may not be an adequate remedy for any
      breach of the provisions of this Agreement and that any party shall be
      entitled to immediate injunctive relief or specific performance without
      bond or the necessity of showing actual monetary damages in order to
      enforce or prevent any violations of the provisions of this Agreement.

                                       8
<PAGE>

      7.13 Severability. Whenever possible, each provision of this Agreement
      will be interpreted in such manner as to be effective and valid under
      applicable law, but if any provision of this Agreement is held to be
      prohibited by or invalid under applicable law, such provision will be
      ineffective only to the extent of such prohibition or invalidity, without
      invalidating the remainder of this Agreement.

      7.14 Final Agreement. This Agreement, together with the Asset Acquisition
      Agreement and all other agreements entered into by the parties hereto
      pursuant to the Asset Acquisition Agreement, constitutes the complete and
      final agreement of the parties concerning the matters referred to herein,
      and supersedes all prior agreements and understandings.

      7.15 No Strict Construction. The language used in this Agreement will be
      deemed to be the language chosen by the parties hereto to express their
      mutual intent, and no rule of strict construction will be used against any
      Person.

                                       9
<PAGE>

      The parties hereto have executed this Registration Rights Agreement as of
the date first set forth above.

                                        TEGAL CORPORATION

                                        By: /s/ Michael L. Parodi
                                            ------------------------------------
                                                Michael L. Parodi
                                                Chairman, President & CEO

                                        FIRST DERIVATIVE SYSTEMS, INC.

                                        By: /s/ Andy Clarke
                                            ------------------------------------
                                                Andy Clarke
                                                Chairman & CEO

                                        SHAREHOLDERS' REPRESENTATIVE

                                        By: /s/ Andy Clarke
                                            ------------------------------------
                                                Andy Clarke

                              SIGNATURE PAGE TO THE
                          REGISTRATION RIGHTS AGREEMENT

                                       10
<PAGE>

                                   SCHEDULE A

                       SHAREHOLDERS AND CREDITORS OF FDSI

<PAGE>

FDSI Shareholder Trust
Steve Bernhardt
Tony Bernhardt
Bigelow Asset Management
Tim Bigelow
David Boydston
Chris Brown
Tan Bui
Don Burkman
James Cameron
CDE ResMap
Alain Chardon
Andy Clarke
Benjamin Clarke
Carole Clarke
Jean-Francois Daviet
Ray Degner
James Diller
Harald Durr
Jeff Farni
Paul Franzon
Rob Furst
Elie Galimidi
Garage Securities, Inc.
Bob Gehlen
Jerry Giles Living Trust
Birger Gneuss
Joachim Gneuss
Oliver Gneuss
Adam Haron
Jack Harris
Karl Heiman
Tom Jacobs
Robert Johnson
Sam Kano
Gaal Karp
Tony Kazmakites
Brian Kelly
Shin Kimura
Michael Lachaise
Mitch Lashman
ICOM Technology International Pte Ltd (MAC LOH)
Noel MacDonald
Kurt Myataki
Jeff Myers

<PAGE>

John Newman
Nida & Maloney LLP
Joe Nida
Craig Olroyd
Richard Ortale
Rod Palmborg
Tom Parks
Lou Perrone
Dan Petersen
Paul Poenisch
Richard Powers
Simon Rack
Oliver Radl
Robert Rumsey
Isabel Salinas
Markus Seitz
Mike Sohn
Tim Stultz
Bob Sutton
Timberline Opportunity Partners, L.P.
Drew Traver
Trust Automation
Allen Vexler
Tom Voehl
Richard Vogt
Gordon Whitlock
Richard Wideman
Lorance Wilson
Edward Yoon
Larry Yoshida
Shoji Yoshii
Zohar Ziv

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00071-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00071-of-00352.parquet"}]]