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Exhibit 4.7

# REGISTRATION RIGHTS
AGREEMENT

by and between

Formula Systems (1985)
Ltd.

and

FIMGold, Limited
Partnership

# March 3, 2005



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# REGISTRATION RIGHTS
AGREEMENT

This Registration Rights Agreement(this Agreement) is made as of the _________, 2005, by and between:
(i) Formula Systems (1985) Ltd. (the Company), a company organized
under the laws of the State of Israel whose shares are listed for trading on Nasdaq; and
(ii) FIMGold, Limited Partnership (FIMGold or the
Shareholder).

# WITNESSETH:

WHEREAS, the Shareholder is an
Israeli limited partnership managed by FIMGold Ltd., an Israeli private company limited by
shares and owned in equal parts by FIMI Opportunity Fund, L.P., a limited partnership
organized under the laws of the State of Delaware and Ildani Ltd., an Israeli private
company wholly owned by Mr. Dan Goldstein (Goldstein), the
Companys Chief Executive Officer and Chairman of the Board of Directors; and

WHEREAS, on even date
herewith, FIMGold is entering into (i) a share purchase agreement (the PIPE
Agreement) with the Company, pursuant to which FIMGold shall purchase 2,400,000
Ordinary Shares of the Company in a private placement, and (ii) a share purchase agreement
with Goldstein (the Goldstein Agreement), pursuant to which Goldstein
shall sell to FIMGold all of his shareholdings in the Company (namely, 2,000,000 Ordinary
Shares of the Company); and

WHEREAS, following the
consummation of the foregoing purchase transactions, FIMGold shall hold 4,400,000 Ordinary
Shares of the Company, constituting approximately 33% of the Companys issued and
outstanding share capital; and

WHEREAS, effective as of the
Closing (as defined in the PIPE Transaction) the Shareholder and the Company desire to set
forth certain matters regarding the registration rights of the shares of the Company held
by the Shareholder.

NOW, THEREFORE,in
consideration of the mutual promises and covenants set forth herein, the parties hereby
agree as follows:

|1. | DEFINITIONS;
EFFECT OF AGREEMENT
|-- | --------------------------------

| | Definitions.
          As used herein, the following terms have the following meanings:
| | ---------------------------------------------------------------------------------------

| | Commission
means the United States Securities and Exchange Commission, or any other federal agency at
the time administering the Securities Act.
| | --------------------------------------------------------------------------------------------------------------------------------------------------

| | Control
means direct or indirect ownership of more than 50% of the equity or voting capital of an
entity, or possession of the right and power to direct the policy and management of such
entity.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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| | Form
F-3 means Form F-2 or Form F-3 under the Securities Act, as in effect on the
date hereof or any registration form under the Securities Act subsequently adopted by the
Securities and Exchange Commission (the SEC) which permits inclusion or
incorporation of substantial information by reference to other documents filed by the
Company with the SEC.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Holdermeans
any holder of outstanding Registrable Shares.
| | -----------------------------------------------------------

| | Ordinary
Shares means the Ordinary Shares of the Company, par value NIS 0.01, subject to
a Reclassification Event.
| | --------------------------------------------------------------------------------------------------------------------

| | Permitted
Transferee shall mean a person or entity which receives shares pursuant to the
transfer of all or any of the shares held by the Shareholder (the
Transferor) to: (i) an entity Controlled by the Transferor; (ii) an
entity that Controls the Transferor; (iii) an entity under common Control with the
Transferor, (iv)  any partners or members of the Transferor and its Permitted
Transferees; or (v) in the case that a Permitted Transferee of the Transferor is a
trustee, the beneficiary or beneficiaries for whom the trustee is holding shares.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Person
means an individual, fund, company, unincorporated association, trust, joint venture,
governmental agency, or other entity, whether domestic or foreign.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Reclassification
Event means any share combination or subdivision (split), bonus shares or any
other recapitalization of the Companys shares.
| | ------------------------------------------------------------------------------------------------------------------------------------------------

| | Register,
registered and registration refer to a registration
effected by filing a registration statement in compliance with the Securities Act and the
declaration or ordering by the SEC of effectiveness of such registration statement.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Registrable
Shares means Ordinary Shares purchased by the Shareholder pursuant to the PIPE
Agreement and the Goldstein Purchase Agreement, including bonus shares and share dividends
payable with respect to such shares, and Ordinary Shares of the Company which hereafter
may be purchased or acquired by the Shareholder. Notwithstanding the foregoing,
Registrable Shares shall not include otherwise Registrable Shares (i) sold or transferred
to anyone other than a Permitted Transferee, or (ii) which could be disposed of, under
applicable law, within six (6) months without registration, pursuant to Rule 144.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Rule
144 shall mean Rule 144 under the Securities Act or any successor or similar
rule as may be enacted by the Commission from time to time.
| | -----------------------------------------------------------------------------------------------------------------------------------------------

| | Securities
Act means the United States Securities Act of 1933, as amended.
| | ----------------------------------------------------------------------------

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|2. | INCIDENTAL REGISTRATION
|-- | -----------------------

| | 2.1. | If
the Company proposes to register any of its securities for its own account           (the
CompanysSecurities) or for the account of           any
other person, other than (a) in a registration under Section 3 of           this
Agreement or (b) a registration on Form S-8 or Form F-4, the Company shall           give
notice to the Holder of such intention, at least 30 days prior to the           filing of
the registration statement in connection with such registration. Upon           the
written request of the Holder given within twenty (20) days after receipt of
          any such notice, the Company shall include in such registration (subject to
          Section 2.2 below) all of the Registrable Shares indicated in such request of
          the Holder so as to permit the disposition of the shares so requested.
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 2.2. | Notwithstanding
any other provision of this Section 2, if the managing           underwriter
advises the Company in writing that in its opinion the number of           securities
requested to be included in such registration exceeds the number that           can be
sold in such offering without adversely affecting such underwriters
          ability to effect an orderly distribution of such securities, the Company will
          include in such registration: (i) first, the Companys Securities;
and           (ii) second, the number of Registrable Shares requested to be included
by           the Holder which in the opinion of such underwriter can be sold.
| | ---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|3. | DEMAND REGISTRATION
|-- | -------------------

| | 3.1. | The
Holder (the Initiating Holder) may request in writing           that
all or part of its Registrable Shares shall be registered under the           Securities
Act. Upon the receipt of such request, the Company shall, as promptly           as
practicable, and in any event within 3 (three) months of the written request           of
the Holder, make best reasonable efforts to file a registration statement           with
the Commission with respect to all Registrable Shares indicated in the           written
request by the Holder and any related qualification or compliance (a           Demand).
| | ---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 3.2. | The
Holder shall be entitled to an aggregate of two (2) Demands.
| | ---- | ----------------------------------------------------------------

| | 3.3. | Notwithstanding
any other provision of this Section 3, no Demand shall be           binding on the
Company if: (i) the Company has filed any registration statement           for the
registration of its equity securities (other than on a form S-8 or           similar
registration for employee shares) within the previous one hundred eighty           days
(180) days, or (ii) the anticipated proceeds from the sale of the shares to           be
included in the Registration is less than Five Million United States Dollars
          ($5,000,000), or (iii) the Company has theretofore decided to file a Company
          initiated registration and, in its good faith estimate, will file it within the
          next sixty (60) days. In addition, if the Company shall furnish to the Holder a
          certificate signed by the Chief Financial Officer of the Company stating that,
          in the good faith judgment of the Board of Directors, it would be detrimental
to           the Company for such registration statement to be filed and it is therefore
          essential to defer the filing of such registration statement, the Company shall
          have the right to defer such filing for a period of not more than one hundred
          and eighty (180) days after receipt of the request of the Holder (the
          DelayPeriod). The Company agrees that it shall not
          file any other registration statement on behalf of itself or any other party
          during such Delay Period.
| | ---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | 3.4. | Any
registration proceeding begun pursuant to Section 3.1 that is
          subsequently withdrawn prior to the filing thereof at the request of the Holder
          shall not count toward the number of Demands, if such withdrawal is based upon
          material adverse information relating to the Company or its condition, business
          and prospects which is different from that generally known to the Holder at the
          time of its request. If a registration begun pursuant to this Section 3 is
          subsequently withdrawn at the request of the Holder subsequent to the filing
          thereof or for any other reason, it shall count towards the number of Demands.
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 3.5. | Notwithstanding
any other provision of this Section 3, if the managing           underwriter
advises the Holder, in writing, that in the managing           underwriters opinion
the number of securities requested to be included in           such registration exceeds
the number that can be sold in such offering without           adversely affecting such
underwriters ability to effect an orderly           distribution of such
securities, the Company will include in such registration           the number of
Registrable Shares requested to be included that, in the opinion           of such
underwriters, can be sold, in the registration.
| | ---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 3.6. | F-3
Registration. If the Company shall be qualified to register           securities on
Form F-3 and shall receive from the Holder a written request or           requests that
the Company effect a registration on Form F-3 and any related           qualification or
compliance with respect to Registrable Shares where the           aggregate net proceeds
from the sale of the Holders Registrable Shares           equal to at least two
million United States Dollars ($2,000,000), the Company           shall include in such
registration (subject to the provision more fully set           forth in this Section
3.6) all of the Registrable Shares indicated in the           request of the Holder. The
Company shall then effect such registration and all           such qualifications and
compliances as may be so requested and as would permit           or facilitate the sale
and distribution of all or such Registrable Shares as are           specified in the
requests; provided, however, that the Company shall not           be obligated to
effect any such registration, qualification, or compliance,           pursuant to this
Section 3.6 if the Company has, within the eighteen (18) month           period preceding
the date of such request, already effected one (1) registration           for the Holder.
Notwithstanding any other provision of this Section 3, no Demand           shall be
binding on the Company if: (i) the Company has filed any registration           statement
for the registration of its equity securities (other than on a form           S-8 or
similar registration for employee shares) within the previous one hundred
          eighty days (180) days, or (ii) the Company has theretofore decided to file a
          Company initiated registration and, in its good faith estimate, will file it
          within the next sixty (60) days. In addition, if the Company shall furnish to
          the Holder a certificate signed by the Chief Financial Officer of the Company
          stating that, in the good faith judgment of the Board of Directors, it would be
          detrimental to the Company for such registration statement to be filed and it
is           therefore essential to defer the filing of such registration statement, the
          Company shall have the right to defer such filing for a period of not more than
          one hundred and eighty (180) days after receipt of the request of the Holder
          (the DelayPeriod). The Company agrees that it shall
          not file any other registration statement on behalf of itself or any other
party           during such Delay Period. In addition, Section 3.5 hereof shall apply to
any           applicable registration under this Section 3.6
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | 3.7. | Black
Out Periods. At any time when a registration statement effected           hereunder
relating to Registrable Securities is effective, upon written notice           from the
Company to the Holder that either: (i) the Board of Directors of the           Company,
in its reasonable judgment, resolves that such Holders sale of
          Registrable Securities pursuant to the registration statement would adversely
          interfere with any major acquisition, corporate reorganization or other similar
          transaction involving the Company (a Transaction Blackout);
          or (ii) the Company determines, in the good faith judgment of the general
          counsel of the Company, that the Holders sale of Registrable Securities
          pursuant to the registration statement would require disclosure of material
          information that the Company has a bona fide business purpose for preserving as
          confidential or the Company is unable to comply with Commission requirements
and           that such disclosure will be detrimental to the Company (an Information
          Blackout); then the Holder shall suspend sales of Registrable
          Securities pursuant to such registration statement until the earlier of: (A)
(1)           in the case of a Transaction Blackout, the earliest of (a) one month after
the           completion of such acquisition, corporate reorganization or other similar
          transaction; (b) promptly after abandonment of such acquisition, corporate
          reorganization or other similar transaction; and (c) 120 days after the date of
          the Companys written notice of such Transaction Blackout; or (2) in the
          case of an Information Blackout, the earlier of (a) the date upon which such
          material information is disclosed to the public or ceases to be material; and
          (b) 90 days after the Companys notice of an Information Blackout, and (B)
          such time as the Company notifies the Holder that sales pursuant to such
          registration statement may be resumed.
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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|4. | DESIGNATION OF UNDERWRITER
|-- | --------------------------

| | 4.1. | In
the case of any registration effected pursuant to Section 3, should           the
offering be underwritten, the Company and the Holder shall confer as to the
          selection of a managing underwriter. Should they fail to reach agreement, the
          selection shall be made by the Holder.
| | ---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 4.2. | In
the case of any registration initiated by the Company under Section           2,
the Company shall have the right to designate the managing           underwriter in any
underwritten offering.
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|5. | EXPENSES
|-- | --------

| | All
expenses incurred in connection with any registration under Sections 2 or
3 shall be borne by the Company; provided, however, that the Holder shall pay its
pro rata portion of the discounts or commissions payable to any underwriter and shall bear
its own attorneys fees and disbursements.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|6. | INDEMNIFICATION
AND CONTRIBUTION
|-- | --------------------------------

| | In
the event of any registered offering of Ordinary Shares pursuant to this Agreement:
| | --------------------------------------------------------------------------------------

| | 6.1 | The Company will indemnify and hold harmless, to the fullest extent permitted by law, the
Holder participating in such registration and any underwriter who participates as an
underwriter in such registered offering, and each person, if any, who controls the Holder
or such underwriter, from and against any and all losses, damages, claims, liabilities,
joint or several, costs and expenses (including any amounts paid in any settlement
effected with the Companys prior written consent) to which the Holder or any such
underwriter or controlling person may become subject under applicable law or otherwise,
insofar as such losses, damages, claims, liabilities (or actions or proceedings in respect
thereof), costs or expenses arise out of or are based upon (i) any untrue statement
or alleged untrue statement of any material fact contained in the registration statement
or included in the prospectus, as amended or supplemented, or (ii) the omission or
alleged omission to state therein a material fact required to be stated therein or
necessary to make the statements therein, in the light of the circumstances in which they
are made, not misleading, and the Company will reimburse the Holder, any underwriter and
each such controlling person of the Holder or the underwriter, promptly upon demand, for
any reasonable legal or any other expenses incurred by them in connection with
investigating, preparing to defend or defending against or appearing as a third-party
witness in connection with such loss, claim, damage, liability, action or proceeding;
provided, however, that the Company will not be liable towards the Holder, the underwriter
or controlling person to the extent that any such loss, damage, liability, cost or expense
arises out of or is based upon an untrue statement or omission in such registration
statement or prospectus so made in conformity with information furnished to the Company in
writing by the Holder, such underwriter or such controlling persons specifically for use
in such registration statement; provided, further, that this indemnity shall not be deemed
to relieve any underwriter of any of its due diligence obligations; provided, further,
that the indemnity agreement contained in this Section 6.1 shall not apply to amounts
paid in settlement of any such claim, loss, damage, liability or action if such settlement
is effected without the consent of the Company, which consent shall not be unreasonably
withheld. Such indemnity shall remain in full force and effect regardless of any
investigation made by or on behalf of the Holder, the underwriter or any controlling
person of the Holder or the underwriter, and regardless of any sale in connection with
such offering by the Holder. Such indemnity shall survive the transfer of securities by
the Holder but in no event shall the Company pay more than once in respect of any loss,
damage, claim or liability. The foregoing indemnity is subject to the condition that,
insofar as it relates to any such untrue statement (or alleged untrue statement) or
omission (or alleged omission) made in the preliminary prospectus but eliminated or
remedied in the amended prospectus at the time the registration statement becomes
effective or in the final prospectus, such indemnity shall not inure to the benefit of (i)
the Holder and (ii) any underwriter, if a copy of such amended or final prospectus was not
furnished to the person or entity asserting the loss, liability, claim or damage at or
prior to the time such furnishing is required by the Securities Act.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | 6.2 | The
Holder participating in a registration will indemnify and hold harmless the Company, any
underwriter for the Company, and each person, if any, who controls the Company or such
underwriter, from and against any and all losses, damages, claims, liabilities, costs or
expenses (including any amounts paid in any settlement effected with such selling Holders
consent) to which the Company or any such controlling person and/or any such underwriter
may become subject under applicable law or otherwise, insofar as such losses, damages,
claims, liabilities (or actions or proceedings in respect thereof), costs or expenses
arise out of or are based on (i) any untrue statement or alleged untrue statement of
any material fact contained in the registration statement or included in the prospectus,
as amended or supplemented, or (ii) the omission or alleged omission to state
therein a material fact required to be stated therein or necessary to make the statements
therein, in the light of the circumstances in which they were made, not misleading, and
the Holder will reimburse the Company, any underwriter and each such controlling person
of the Company or any underwriter, promptly upon demand, for any reasonable legal or
other expenses incurred by them in connection with investigating, preparing to defend or
defending against or appearing as a third-party witness in connection with such loss,
claim, damage, liability, action or proceeding; in each case to the extent; provided,
however, that the Holder shall be liable in any such case only to the extent that any
such loss, damage, liability, cost or expense arises out of or is based upon an untrue
statement or omission in such registration or prospectus made in strict conformity with
written information furnished to the Company by the Holder specifically for use in such
registration statement; and provided, further, that this indemnity shall not be deemed to
relieve any underwriter of any of its due diligence obligations; and provided, further,
that the indemnity agreement contained in this Section 6.2 shall not apply to amounts
paid in settlement of any such claim, loss, damage, liability or action if such
settlement is effected without the consent of the Holder, as the case may be, which
consent shall not be unreasonably withheld. In any event, the indemnification obligations
under this Section 6.2 shall not exceed the net proceeds received by the Holder pursuant
to the public offering.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | 6.3 | Promptly
after receipt by an indemnified party pursuant to the provisions of Sections 6.1 or 6.2
of notice of the commencement of any action involving the subject matter of the foregoing
indemnity provisions, but in any event no fewer than ten (10) days before the date
designated in such notice as the date by which an answer must be served (or such
extension thereof, provided that the extension has been granted in writing by the
plaintiff and that no admission or consent to jurisdiction or other waiver has been
granted or implied by the request for such an extension), such indemnified party will, if
a claim thereof is to be made against the indemnifying party pursuant to the provisions
of said Sections 6.1 or 6.2, promptly notify the indemnifying party of the commencement
thereof. In case such action is brought against any indemnified party and it notifies the
indemnifying party of the commencement thereof, the indemnifying party shall have the
right to participate in, and, to the extent that it may wish, jointly with any other
indemnifying party similarly notified, to assume the defense thereof with counsel
reasonably satisfactory to such indemnified party; provided, however, that if the
defendants in any action include both the indemnified party and the indemnifying party
and there is a conflict of interests which would prevent counsel for the indemnifying
party from also representing the indemnified party, the indemnified party or parties
shall have the right to select one separate counsel to participate in the defense of such
action on behalf of such indemnified party or parties. After notice from the indemnifying
party to such indemnified party of its election so to assume the defense thereof, the
indemnifying party will not be liable to such indemnified party pursuant to the
provisions of said Sections 6.1 or 6.2 for any legal or other expense subsequently
incurred by such indemnified party in connection with the defense thereof, unless (i) the
indemnified party shall have employed counsel in accordance with the provision of the
preceding sentence, (ii) the indemnifying party shall not have employed counsel
reasonably satisfactory to the indemnified party to represent the indemnified party
within a reasonable time after the notice of the commencement of the action and within 15
days after written notice of the indemnified partys intention to employ separate
counsel pursuant to the previous sentence, or (iii) the indemnifying party has
authorized the employment of counsel for the indemnified party at the expense of the
indemnifying party. No indemnifying party will consent to entry of any judgment or enter
into any settlement, which does not include as an unconditional term thereof the giving
by the claimant or plaintiff to such indemnified party of a release from all liability in
respect to such claim or litigation.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | 6.4 | Contribution. If for any reason the foregoing indemnity is unavailable, or is
insufficient to hold harmless an indemnified party, then the indemnifying party shall
contribute to the amount paid or payable by the indemnified party as a result of such
losses, claims, damages, liabilities or expenses (i) in such proportion as is
appropriate to reflect the relative benefits received by the indemnifying party on the one
hand and the indemnified party on the other from the registration or (ii) if the
allocation provided by clause (i) above is not permitted by applicable law, or provides a
lesser sum to the indemnified party than the amount hereinafter calculated, in such
proportion as is appropriate to reflect not only the relative benefits received by the
indemnifying party on the one hand and the indemnified party on the other but also the
relative fault of the indemnifying party and the indemnified party as well as any other
relevant equitable considerations. No person guilty of fraudulent misrepresentation
(within the meaning of Section 11(f) of the Securities Act) shall be entitled to
contribution from any person who was not guilty of such fraudulent misrepresentation.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|7. | OBLIGATIONS
OF THE COMPANY
|-- | --------------------------

| | Whenever
required under this Agreement to effect the registration of any Registrable Shares, the
Company shall, as expeditiously as possible:
| | ---------------------------------------------------------------------------------------------------------------------------------------------

| | 7.1. | (i) prepare
and file with the SEC a registration statement with respect to           such Registrable
Shares and use its best reasonable efforts to cause such           registration statement
to become effective, (ii) upon the request of the           Holder of the
Registrable Shares registered thereunder, keep a registration           statement filed
pursuant to Section 2 effective until the earlier to           occur of (i) the
completion of the distribution contemplated in the Registration           Statement and
(ii) one year following the effective date thereof, provided that           the Company,
in its sole discretion, shall be entitled to reduce such one-year           period to any
period of at least 180 days plus the number of days of any           Transaction
Blackout or Information Blackout.
| | ---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | 7.2. | prepare
and file with the SEC such amendments and supplements to such           registration
statement and the prospectus used in connection with such           registration
statement as may be reasonably necessary to comply with the           provisions of the
Securities Act with respect to the disposition of all           Registrable Shares
covered by such registration statement.
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 7.3. | furnish
to the Holder a copy of the prospectus, including a preliminary           prospectus, in
conformity with the requirements of the Securities Act, and such           other
documents as it may reasonably request in order to facilitate the           disposition
of Registrable Shares owned by it.
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 7.4. | in
the event of any underwritten public offering, enter into and perform its
          obligations under an underwriting agreement, in usual and customary form, with
          the managing underwriter of such offering. The Holder participating in such
          underwriting shall also enter into and perform its obligations under such an
          agreement.
| | ---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 7.5. | notify
the Holder of Registrable Shares covered by such registration statement           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, as then in effect, includes
          an untrue statement of a material fact or omits to state a material fact
          required to be stated therein or necessary to make the statements therein not
          misleading in the light of the circumstances then existing.
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 7.6. | cause
all Registrable Shares registered pursuant hereunder to be listed on           Nasdaq on
any other stock exchange on which similar securities issued by the           Company are
then listed.
| | ---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 7.7. | provide
a transfer agent and registrar for all Registrable Shares registered           pursuant
hereunder and a CUSIP number for all such Registrable Shares, in each           case not
later than the effective date of such registration.
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 7.8. | take
such action as is required under the securities laws of such states of the
          United States as the Holder shall reasonably request; provided, however, that
          the Company shall not be required to qualify to do business as a foreign
          corporation, or to file any general consent to service of process, in any
state.
| | ---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | 7.9. | furnish,
at the request of the Holder requesting registration of Registrable           Shares
pursuant to this Agreement, on the date that such Registrable Shares are
          delivered to the underwriters for sale in connection with a registration
          pursuant to this Agreement, if such securities are being sold through
          underwriters, or, if such securities are not being sold through underwriters,
on           the date that the registration statement with respect to such securities
becomes           effective, (i) an opinion, dated such date, of the counsel
representing the           Company for the purposes of such registration, in form and
substance as is           customarily given to underwriters in an underwritten public
offering, addressed           to the underwriters, if any, and (ii) a letter dated
such date, from the           independent certified public accountants of the Company, in
form and substance           as is customarily given by independent certified public
accountants to           underwriters in an underwritten public offering, addressed to
the underwriters,           if any.
| | ---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|8. | CONDITIONS TO REGISTRATION OBLIGATIONS
|-- | --------------------------------------

| | The
Company shall not be obligated to effect the registration of Registrable Shares pursuant
to this Agreement unless the Holder of such Registrable Shares consents to the following
conditions:
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 8.1. | conditions
requiring the Holder to comply with all applicable provisions of the           Securities
Act and the Securities and Exchange Act including, but not limited           to, the
prospectus delivery requirements of the Securities Act, and to furnish           to the
Company information about itself, its holdings in the Company and sales           made in
such public offering;
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 8.2. | conditions
prohibiting the Holder upon receipt of telegraphic or written notice           from the
Company that it is required by law to correct or update the           registration
statement or prospectus from effecting sales of the Registrable           Shares until
the Company has completed the necessary correction or updating; and
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 8.3. | conditions
prohibiting the sale of Registrable Shares by the Holder during the           process of
the registration until the Registration Statement is effective.
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------

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|9. | ASSIGNMENT OF REGISTRATION RIGHTS
|-- | ---------------------------------

| | The
Holder may assign its rights to cause the Company to register pursuant to this Agreement
all or part of its Registrable Shares to a purchaser of at least 20% of the Ordinary
Shares held by the Holder or to a Permitted Transferee who would not be able to dispose of
such shares under Rule 144 within six months from the date of such sale. The transferor
shall, within twenty (20) days after such transfer, furnish the Company with written
notice of the name and address of such transferee and the securities with respect to which
such registration rights are being assigned, and the transferees written agreement
to be bound by this Agreement.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|10. | LOCK-UP
AND OTHER REQUIREMENTS OF THE HOLDER
|--- | --------------------------------------------

| | In
any registration of the Companys shares, the Holder agrees that any sales of
Registrable Shares may be subject to a lock-up period restricting such sales
for up to one hundred and eighty (180) days, and the Holder will agree to abide by such
customary lock-up period of up to one hundred and eighty (180) days as is
required by the underwriter in such a registration and further agree to execute such
further documents as may be required by the underwriters to effectuate such
lock-up. In addition, the Holder may not participate in any underwritten
registration hereunder unless such person (i) agrees to sell such persons
securities on the basis provided in any customary underwriting arrangements and
(ii) provides any relevant information and completes and executes all questionnaires,
powers of attorney, indemnities, underwriting agreements, and other documents required
under the terms of such underwriting arrangements.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|11. | RULE
144
|--- | --------

| | Unless
and until the Company shall have terminated its registration under Section 12 of the
United States Securities Exchange Act of 1934, as amended, or any federal statute or code
which is a successor thereto (the Exchange Act), which it shall
be entitled to do in its sole discretion, the Company shall:
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 11.1. | Make
and keep available adequate current public information with respect to the
          Company within the meaning of Rule 144(c) under the Securities Act (or similar
          rule then in effect);
| | ----- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 11.2. | Furnish
to the Holder of Registrable Shares forthwith upon request (i) a           written
statement by the Company as to its compliance with the informational
          requirements of Rule 144(c) (or similar rule then in effect) or (ii) a
copy           of the most recent annual or quarterly report of the Company; and
| | ----- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 11.3. | Use
its best efforts to comply with all other necessary filings and other
          requirements so as to enable the Holder and any transferee thereof to sell
          Registrable Shares under Rule 144 under the Securities Act (or similar rule
then           in effect).
| | ----- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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|12. | OTHER REGISTRATION RIGHTS
|--- | -------------------------

| | The
Company shall not grant registration rights with respect to any securities of the Company
to any Person that are superior to the registration rights granted to the Holder pursuant
to this Agreement, except with the written consent of the Holder.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|13. | MISCELLANEOUS
|--- | -------------

| | 13.1. | Further
Assurances. Each of the parties hereto shall perform such further           acts and
execute such further documents as may reasonably be necessary to carry           out and
give full effect to the provisions of this Agreement and the intentions           of the
parties as reflected thereby.
| | ----- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 13.2. | Governing
Law; Jurisdiction. This Agreement shall be governed by, and           construed in
accordance with, the laws of the State of Israel; provided,           however, that with
respect to maters specifically related to the federal           securities laws of the
United States, such laws shall govern. All disputes           arising under this
Agreement or in connection with the transactions hereunder           shall be resolved
between the parties in good faith. If the parties hereto fail           to agree within
twenty (20) days after a party shall have requested Arbitration,           they shall
select one arbitrator by mutual agreement. The proceedings will take           place in
Tel-Aviv, Israel. The arbitrator shall not be bound by any judicial           rules of
evidence or procedure but shall be bound by the substantive law of the           State of
Israel and will have to elaborate the grounds of his/her decision. The           arbitral
award shall be final and binding upon the parties, and judgment upon           the award
may be entered in any court having jurisdiction, or application may be           made to
such Court for a judicial acceptance of the award or for an order of
          enforcement, as the case may be.
| | ----- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 13.3. | Successors
and Assigns. Except as otherwise expressly limited herein, the           provisions
hereof shall inure to the benefit of, and be binding upon, the           successors,
assigns, heirs, executors, and administrators of the parties hereto.           None of
the rights, privileges, or obligations set forth in, arising under, or           created
by this Agreement may be assigned or transferred without the prior           consent in
writing of each party to this Agreement except that, upon the           consummation of a
transfer of Registrable Shares to a Permitted Transferee or           the sale of at
least 20% of the Registrable Shares held by the Holder to a           person that would
hold such shares as restricted securities and who would not be           able to dispose
of such shares under Rule 144 within six months from the date of           such sale,
such Permitted Transferee or purchaser, as the case may be, shall           succeed to
(or share in) all rights and privileges of the transferor (as a           Shareholder)
under this Agreement as if it were an original party hereto.
| | ----- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | Without
derogating from the provisions of the previous paragraph, no assignment or transfer under
this Section 13.3 shall be made unless the transferee agrees to be bound by all
agreements binding upon the transferor immediately prior to such transfer.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 13.4. | Entire
Agreement. This Agreement constitutes the full and entire           understanding and
agreement between the parties with regard to the subject           matter hereof.
| | ----- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 13.5. | Amendments.
Any term of this Agreement may be amended with the written           consent of the
Holder and the Company.
| | ----- | -----------------------------------------------------------------------------------------------------------------------

| | 13.6. | Section
Headings; Preamble. All article and section headings are inserted           for
convenience only and shall not modify or affect the construction or
          interpretation of any provision of this Agreement. The preamble to this
          Agreement is incorporated herein and forms an integral part of this Agreement.
| | ----- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 13.7. | Communications.
All notices or other communications hereunder shall be in           writing and shall
either be given in person, sent by registered mail (registered           international
air mail if mailed internationally), sent by an overnight courier           service which
obtains a receipt to evidence delivery, or transmitted by           facsimile
transmission (provided that written confirmation of receipt is           provided), to
the addresses of the parties set forth in the PIPE Agreement, or           such other
address as any party may designate to the other in accordance with           the
aforesaid procedure. All notices and other communications delivered in           person
or by courier service shall be deemed to have been given as of three           business
days after sending thereof, those given by facsimile transmission shall           be
deemed given twenty-four hours following transmission, and all notices and
          other communications sent by registered mail (or air mail if the posting is
          international) shall be deemed given ten (10) days after posting.
| | ----- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 13.8. | Delays
or Omissions. No delay or omission to exercise any right, power,           or remedy
accruing to any party upon any breach or default under this Agreement,           shall be
deemed a waiver of any such breach or default. Any waiver, permit,           consent, or
approval of any kind or character on the part of any party of any           breach or
default under this Agreement, or any waiver on the part of any party           of any
provisions or conditions of this Agreement, must be in writing and shall           be
effective only to the extent specifically set forth in such writing. All
          remedies, either under this Agreement or by law or otherwise afforded to any of
          the parties, shall be cumulative and not alternative.
| | ----- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | 13.9. | Severability.
If any provision of this Agreement is held by a court of           competent jurisdiction
to be unenforceable under applicable law, then such           provision shall be excluded
from this Agreement and the remainder of this           Agreement shall be interpreted as
if such provision were so excluded and shall           be enforceable in accordance with
its terms; provided, however, that in such           event this Agreement shall be
interpreted so as to give effect, to the greatest           extent consistent with and
permitted by applicable law, to the meaning and           intention of the excluded
provision as determined by such court of competent           jurisdiction.
| | ----- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 13.10. | Counterparts.
This Agreement may be executed in any number of           counterparts, each of which
shall be deemed an original and enforceable against           the parties actually
executing such counterpart, and all of which together shall           constitute one and
the same instrument.
| | ------ | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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IN WITNESS WHEREOF,the
parties have signed this Agreement as of the date first hereinabove set forth.

Formula Systems (1985) Ltd.
By____________________
Name
TitleFIMGold, Limited Partnership
By: FIMGold Ltd., the General Partner
_______________________________
Name: Ishay Davidi and Dan Goldstein
Title: directors:



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