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Exhibit 4.2.3

Execution Copy

REGISTRATION RIGHTS
AGREEMENT

BY AND AMONG

CIMATRON LTD.

AND

MR. WILLIAM F. GIBBS

|                       
|-----------------------
|DATED DECEMBER 31, 2007
|                       



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# REGISTRATION RIGHTS
AGREEMENT

| | THIS
REGISTRATION RIGHTS AGREEMENT (the Agreement) is entered into as of
the 31st day of December, 2007, by and among CIMATRON LTD., a company
incorporated under the laws of the State of Israel (the Company), and
MR. WILLIAM F. GIBBS(Gibbs).
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | WHEREAS,
the Company and Gibbs are party to a Merger Agreement and a Plan of Reorganization (the
Merger Agreement) that provides for the issuance of the Companys
Ordinary Shares, par value NIS 0.1 each (Ordinary Shares) to Gibbs; and
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | WHEREAS,
in connection with the Merger Agreement, the Company has agreed to grant certain
registration rights with respect to the Ordinary Shares issued to Gibbs thereunder;
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | NOW,
THEREFORE, the parties agree as follows:
| | ---------------------------------------------

|1. | DEFINITIONS.
|-- | ------------

| | As
used in this Agreement the following terms shall have the following respective meanings:
| | -------------------------------------------------------------------------------------------

| | Additional
Holders means Koonras Technologies Ltd and/or DBSI Investment Ltd, and any
assignees of the foregoing.
| | -------------------------------------------------------------------------------------------------------------------

| | Affiliate
means an entity which controls, is controlled by or under common control with a Holder.
For the purpose of this definition of Affiliate, control shall mean the
ability, directly or indirectly, to direct the activities of the relevant entity,
whether by contract, voting rights or otherwise.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Boardmeans
the Board of Directors of the Company.
| | ---------------------------------------------------

| | Cimatron
Shares means the Ordinary Shares issued to Gibbs under the Merger Agreement.
Exchange Actmeans the Securities Exchange Act of 1934, as
amended.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------

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

| | Holder(s)
means Gibbs and/or any of his Affiliates as long as they own of record Registrable
Securities in accordance with the provisions of this Agreement.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Prospectus
means the prospectus included in the registration statement, as amended or supplemented by
any prospectus supplement and by all other amendments thereto and all material
incorporated by reference in such prospectus.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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

| | Registrable
Securities means all Cimatron Shares and any and all securities issued or
issuable with respect thereto upon any stock split or stock dividend, or into which such
Cimatron Shares have been or may be converted to or exchanged into in connection with any
merger, consolidation, recapitalization or similar event, until the earliest of
(i) their effective registration under the Securities Act and resale in accordance
with the registration statement covering it, or (ii) or their sale to the public
pursuant to Rule 144, or (iii) when the Holder is eligible to dispose all of its
Registrable Securities under Rule 144 within a 90 day period.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | Registration
Expenses shall mean all expenses incurred by the Company in complying with
Sections 2 and 3 hereof, including, without limitation, all registration and filing fees,
printing expenses, fees and disbursements of counsel for the Company, reasonable fees and
disbursements of a single special counsel for the Holders, blue sky fees and expenses and
the expense of any special audits incident to or required by any such registration, but
excluding Selling Expenses.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Rule
144 means Rule 144 under the Securities Act, as such Rule may be amended from
time to time.
| | --------------------------------------------------------------------------------------------------

| | SECor
Commission means the United States Securities and Exchange Commission.
| | --------------------------------------------------------------------------------

| | Securities
Act shall mean the Securities Act of 1933, as amended, and the rules and
regulations promulgated thereunder.
| | -------------------------------------------------------------------------------------------------------------------------

| | Selling
Expenses shall mean, with respect to each Holder, its underwriting discounts
and/or commissions, placement agent or broker fees and commissions and transfer taxes, if
any, in connection with the sale of securities by such Holder.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|2. | PIGGYBACK
REGISTRATIONS.
|-- | ------------------------

| | 2.1. | Notice
of Registration. The Company shall notify all Holders of           Registrable
Securities in writing at least thirty (30) days prior to the filing           of any
registration statement under the Securities Act for purposes of a public
          offering of securities of the Company for cash (but other than registration
          relating solely to employee benefit plans on Form S-8 or similar forms that may
          be promulgated in the future, or a registration relating solely to a Commission
          Rule 145 transaction on Form F-4 or similar forms that may be promulgated in
the           future) and will afford each such Holder requesting to be included in such
          registration, in accordance with this Section 2.1, an opportunity to include in
          such registration statement all or part of such Registrable Securities held by
          such Holder. Each Holder desiring to include in any such registration statement
          all or any part of the Registrable Securities held by it shall, within twenty
          (20) days after delivery of the above-described notice by the Company, so
notify           the Company in writing specifying the number of Registrable Shares
requested to           be included. If a Holder decides not to include all of its
Registrable           Securities in any registration statement thereafter filed by the
Company, such           Holder shall nevertheless continue to have the right to include
any Registrable           Securities in any subsequent registration statement or
registration statements           as may be filed by the Company with respect to
offerings of its securities, all           upon the terms and conditions set forth
herein.
| | ---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 2.2. | Underwritten
Offering.
| | ---- | ----------------------

| | 2.2.1. | If
the registration statement under which the Company gives notice under this
          Section 2 is for an underwritten offering, the Company shall so advise the
          Holders of Registrable Securities as part of its notice made pursuant to
Section           2.1. In such event, the right of any such Holder to be included in a
          registration pursuant to this Section 2 shall be conditioned upon such
          Holders participation in such underwriting and the inclusion of such
          Holders Registrable Securities in the underwriting to the extent provided
          herein. All Holders proposing to distribute their Registrable Securities
through           such underwriting shall enter into an underwriting agreement in
customary form           with the underwriter or underwriters selected for such
underwriting by the           Company.
| | ------ | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | 2.2.2. | Notwithstanding
any other provision of this Agreement, if the underwriter           determines in good
faith that marketing factors require a limitation of the           number of shares to be
underwritten, the number of shares that may be included           in the underwriting
shall be allocated, first, to the Company; second, to the           Holders and the
Additional Holders pro-rata, based on the total number of           Ordinary Shares held
by each of them requesting to be included in such           registration; and third, if
any, to any shareholder of the Company (other than           the Holder and the
Additional Holders) on a pro rata basis. Any Registrable           Securities excluded or
withdrawn from such underwriting shall be excluded and           withdrawn from the
registration.
| | ------ | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 2.3. | Right
to Terminate Registration. The Company shall have the right to           terminate or
withdraw any registration initiated by it under this Section 2           prior to the
effectiveness of such registration, whether or not any Holder has           elected to
include securities in such registration. The Registration Expenses of           such
withdrawn registration shall be borne by the Company in accordance with           Section
4 hereof.
| | ---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|3. | SHELF
REGISTRATION STATEMENT REGISTRATION.
|-- | ------------------------------------------

| | 3.1. | Subject
to the conditions of this Section 3, if the Company shall receive a           written
request(s) from any Holder (the Initiating Holder) or           from
any Additional Holder that the Company file a registration statement for an
          offering to be made on a delayed or continuous basis pursuant to Rule 415
          of the Securities Act registering the resale from time to time by the Holders
          thereof of all of the relevant Registrable Securities (the Shelf
          Registration Statement), then the Company shall, within thirty (30)
          days of the delivery thereof, give written notice of such request to all
          Holders, which may elect to join in such request, as specified in a written
          request given within fifteen (15) days after delivery of the Companys
          written notice. The Shelf Registration Statement shall be on Form F-3 or
          another appropriate registration statement permitting registration of such
          Registrable Securities for resale by the Holders in accordance with the methods
          of distribution elected by them and set forth in such Shelf Registration
          Statement. The Company shall use its best commercial efforts to cause the Shelf
          Registration Statement to be declared effective under the Securities Act within
          3 months after the Holders initial request in accordance with this Section and
          to keep such Shelf Registration Statement continuously effective under the
          Securities Act until the expiration of five (5) years (the Registration
          Period) from the date the Shelf Registration is declared effective by
          the SEC.
| | ---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 3.2. | Underwritten
Offering. If the Initiating Holders intend to           distribute the
Registrable Securities covered by their request by means of an           underwriting
then the Initiating Holders shall inform the Company in writing of           their
intention to do so and the intended plan of distribution and such           information
shall be included in the written notice referred to in Section 3.1.
          Distribution of the Registrable Securities by means of an underwriting shall be
          subject to the Companys consent. Notwithstanding any other provision of
          this Section 3, if the offering is done by means of an underwriting and the
          underwriter advises the Company that marketing factors require a limitation of
          the number of Registrable Securities to be underwritten then the Company shall
          so advise all Holders of Registrable Securities which would otherwise be
          underwritten pursuant hereto (including the Additional Holders), and the number
          of shares that may be included in the underwriting shall be allocated to the
          Holders of such Registrable Securities (including the Additional Holders) so
          requesting to be registered on a pro rata basis, based on the number of
Ordinary           Shares then held by all such Holders (including the Additional
Holders). Any           Registrable Securities excluded or withdrawn from such
underwriting shall be           withdrawn from the registration.
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | 3.3. | Exclusions.
The Company shall not be required to effect a registration           pursuant to this
Section 3 (without limiting any other provisions of this           Section 3 to that
effect):
| | ---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 3.3.1. | After
the Company has effected two (2) registrations pursuant to this Section 3           at
the request of the Initiating Holder(s), and such registrations have been
          declared or ordered effective;
| | ------ | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 3.3.2. | If
the market price of the Registrable Securities to be registered thereunder is
          less than US $250,000;
| | ------ | -----------------------------------------------------------------------------------------------------------------

| | 3.3.3. | If
Form F-3 is not available for such offering by the Holders;
| | ------ | --------------------------------------------------------------

| | 3.3.4. | If
it is requested to effect more than one (1) registration under this Section 3
          in any twelve (12) month period;
| | ------ | ---------------------------------------------------------------------------------------------------------------------------

| | 3.3.5. | During
the period starting with the date of filing of, and ending on the date           one
hundred eighty (180) days following the effective date of a registration
          statement pertaining to the Companys securities (but other than
          registration relating solely to employee benefit plans on Form S-8 or similar
          forms that may be promulgated in the future, or a registration relating solely
          to SEC Rule 145 transaction on Form F-4 or similar forms that may be
promulgated           in the future);
| | ------ | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 3.3.6. | If
within ten (10) days of receipt of a written request from Initiating Holders
          pursuant to this Section 3.1, the Company gives notice to the Initiating
Holders           of the Companys good faith intention to file a registration
statement for           a public offering within ninety (90) days, provided that the
Company actually           files such registration statement within such ninety (90) days
and makes           reasonable good faith efforts to cause such registration statement to
become           effective;
| | ------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 3.3.7. | For
a Holder if a registration statement filed pursuant to Section 2 herein is           then
effective and is available to such Holder for the resale of Registrable
          Securities;
| | ------ | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 3.3.8. | If
the Company shall furnish to the Initiating Holders requesting a registration
          statement pursuant to this Section 3, an officers certificate signed by
          order of the Board stating that in the good faith judgment of the Board, (i)
          such registration may interfere with or affect the negotiation or completion of
          any material transaction or other material event that is being contemplated by
          the Company (whether or not final decision has been made to undertake such
          transaction at the time the right to delay is exercised), or (ii) such
          registration involves initial or continuing disclosure obligations that might
          not be in the best interest of the Company or its shareholders, or (iii) it
          would be otherwise seriously detrimental to the Company and its shareholders
for           such Shelf Registration Statement to be filled and/or effected at such
time, any           in each of the events described above the Company shall have the
right to defer           the filing of the Shelf Registration Statement for a period of
not more than one           hundred and twenty (120) days after receipt of the request of
the Holder under           this Section 3; provided, that such right to delay a request
shall be exercised           by the Company not more than once in any twelve (12) month
period, or
| | ------ | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 3.3.9. | In
any particular jurisdiction in which the Company would be required to qualify
          to do business or to execute a general consent to service of process in
          effecting such registration, qualification or compliance.
| | ------ | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | 3.4. | Suspension.
| | ---- | -----------

| | 3.4.1. | In
addition to any suspension rights under subsection 3.4.2 below, upon the
          happening of any pending corporate development, public filing with the SEC or
          similar event, that, in the judgment of the Companys Board, renders it
          advisable to suspend the use of the Prospectus or upon the request by an
          underwriter in connection with an underwritten public offering of the
          Companys securities, the Company may, on not more than two (2) occasions
          for not more than thirty (30) days on each such occasion, suspend use of the
          Prospectus, on written notice to each Holder (which notice will not disclose
the           content of any material non-public information and will indicate the date
of the           beginning and end of the intended period of suspension, if known), in
which case           each Holder shall discontinue disposition of Registrable Securities
covered by           the registration statement or Prospectus until copies of a
supplemented or           amended Prospectus are distributed to the Holders or until the
Holders are           advised in writing by the Company that sales of Registrable
Securities under the           applicable Prospectus may be resumed and have received
copies of any additional           or supplemental filings that are incorporate or deemed
incorporated by reference           in any such Prospectus. The suspension and notice
thereof described in this           Section 3.4 shall be held by each Holder in strictest
confidence and shall not           be disclosed by such Holder.
| | ------ | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 3.4.2. | In
the event of: (i) any request by the SEC or any other federal or state
          governmental authority during the Registration Period for amendments or
          supplements to a registration statement or related prospectus or for additional
          information, (ii) the issuance by the SEC or any other federal or state
          governmental authority of any stop order suspending the effectiveness of a
          registration statement or the initiation of any proceedings for that purpose,
          (iii) the receipt by the Company of any notification with respect to the
          suspension of the qualification or exemption from qualification of any of the
          Registrable Securities for sale in any jurisdiction or the initiation of any
          proceeding for such purpose, or (iv) any event or circumstance which
          necessitates the making of any changes in the registration statement or
          Prospectus, or any document incorporated or deemed to be incorporated therein
by           reference, so that, in the case of the registration statement, it will not
          contain any untrue statement of a material fact or any omission to state a
          material fact required to be stated therein or necessary to make the statements
          therein not misleading, and that in the case of the Prospectus, it will not
          contain any untrue statement of a material fact or any omission to state a
          material fact required to be stated therein or necessary to make the statements
          therein, in the light of the circumstances under which they were made, not
          misleading, then the Company shall deliver a certificate in writing to the
          Holders (the Suspension Notice) to the effect of the
          foregoing (which notice will not disclose the content of any material
non-public           information and will indicate the date of the beginning and end of
the intended           period of suspension, if known), and, upon receipt of such
Suspension Notice,           the Holders will discontinue disposition of Registrable
Securities covered by           the registration statement or Prospectus (a Suspension)
until           the Holders receipt of copies of a supplemented or amended
Prospectus           prepared and filed by the Company, or until the Holders are advised
in writing           by the Company that the current Prospectus may be used, and have
received copies           of any additional or supplemental filings that are incorporated
or deemed           incorporated by reference in any such prospectus. In the event of any
          Suspension, the Company will use its commercially reasonable efforts to cause
          the use of the Prospectus so suspended to be resumed as soon as possible after
          delivery of a Suspension Notice to the Holders. The Suspension and Suspension
          Notice described in this Section 3.4.2 shall be held by each Holder in
strictest           confidence and shall not be disclosed by such Holder.
| | ------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 3.4.3. | Provided
that a Suspension is not then in effect, the Holders may sell           Registrable
Securities under the registration statement, provided that the           selling Holder
arranges for delivery of a current Prospectus to the transferee           of such
Registrable Securities to the extent such delivery is required by           applicable
law.
| | ------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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|4. | EXPENSES
OF REGISTRATION.
|-- | -------------------------

| | Except
as specifically provided herein, all Registration Expenses incurred in connection with
any registration, qualification or compliance pursuant to Sections 2 or 3 herein shall be
borne by the Company. All Selling Expenses incurred in connection with any registrations
hereunder, shall be borne by the holders of the securities so registered, pro rata on the
basis of the number of shares so registered.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|5. | OBLIGATIONS
OF THE COMPANY.
|-- | ---------------------------

| | 5.1. | Whenever
required to effect the registration of any Registrable Securities, the
                    Company shall, as expeditiously as reasonably possible:
| | ---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------

| | 5.1.1. | Prepare
and file with the SEC a Shelf Registration Statement with respect to
                    such Registrable Securities and use its commercially reasonable best
efforts to                     cause such registration statement to become effective,
and, upon the request of                     the Holders of a majority of the Registrable
Securities registered thereunder,                     keep such registration statement
effective for up to the Registration Period or,                     if earlier, until the
Holder or Holders have completed the distribution related                     thereto.
| | ------ | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 5.1.2. | Prepare
and file with the SEC such amendments and supplements to Shelf
                    Registration Statement and the prospectus used in connection with
such                     registration statement as may be necessary to comply with the
provisions of the                     Securities Act with respect to the disposition of
all securities covered by such                     registration statement for the period
set forth in paragraph 5.1.1 above.
| | ------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 5.1.3. | Furnish
to the Holders such number of copies of a prospectus, including a
                    preliminary prospectus, in conformity with the requirements of the
Securities                     Act, and such other documents as they may reasonably
request in order to                     facilitate the disposition of Registrable
Securities owned by them.
| | ------ | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 5.1.4. | Use
its reasonable efforts to register and qualify the securities covered by
                    such registration statement under such other securities or Blue Sky
laws of such                     jurisdictions as shall be reasonably requested by the
Holders; provided that the                     Company shall not be required in
connection therewith or as a condition thereto                     to qualify to do
business or to file a general consent to service of process in                     any
such states or jurisdictions.
| | ------ | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 5.1.5. | 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(s) of such offering. Each Holder participating in such
                    underwriting shall also enter into and perform its obligations under such an
                    agreement.
| | ------ | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 5.1.6. | Notify each Holder of Registrable Securities 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. The Company will
                    use reasonable efforts to amend or supplement such prospectus in order to cause
                    such prospectus not to include any untrue statement of a material fact or omit
                    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.
| | ------ | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | 5.1.7. | Use
its reasonable efforts to furnish, on the date that such Registrable
                    Securities are delivered to the underwriters for sale, if such
securities are                     being sold through underwriters, (i) an opinion, dated
as of 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 as of
                    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.
| | ------ | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 5.1.8. | Cause
all such Registrable Securities registered pursuant hereunder to be listed
                    on each securities exchange on which similar securities issued by the
Company                     are then listed.
| | ------ | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|6. | DELAY
OF REGISTRATION; FURNISHING INFORMATION.
|-- | ----------------------------------------------

| | 6.1. | It
shall be a condition precedent to the obligations of the Company to take any
                    action pursuant to Section 2 and 3 that the selling Holders shall
furnish to the                     Company such information regarding themselves, the
Registrable Securities held                     by them and the intended method of
disposition of such securities as shall be                     reasonably required to
effect the registration of their Registrable Securities                     and so
requested in writing by the Company.
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 6.2. | If
a registration pursuant to Section 3 is to be effected by means of an
                    underwritten offering, the identity of the underwriter shall be
determined by                     the Company, subject to the consent of the Initiating
Holders which shall not be                     unreasonably withheld, and in such event,
the right of any Holder to include its                     Registrable Securities in such
registration shall be conditioned upon such                     Holders
participation in such underwriting and the inclusion of such                     Holders
Registrable Securities in the underwriting to the extent provided
                    herein.
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 6.3. | No
Holder of Registrable Securities may participate in any underwritten
                    registration under Section 3 unless such Holder (i) agrees to enter
into a                     written underwriting agreement with the managing underwriter
selected in the                     manner herein provided in such form and containing
such provisions as are                     customary in the securities business for such
an arrangement between such                     underwriter and companies of the Companys
size and investment stature;                     provided, however, that no Holder shall
be required to give representations and                     warranties pursuant to any
such underwriting agreement other than as to their                     ownership of, and
ability to transfer, such Holders Registrable                     Securities; 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.
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|7. | INDEMNIFICATION.
|-- | ----------------

| | In
the event any Registrable Securities are included in a registration statement under
Sections 2 or 3:
| | -------------------------------------------------------------------------------------------------------

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| | 7.1. | To
the extent permitted by law, the Company will indemnify and hold harmless
                    each Holder, its affiliates, the partners, officers, directors and
shareholders                     of each Holder, legal counsel and accountants for each
Holder, any underwriter                     (as defined in the Securities Act) for such
Holder and each person, if any, who                     controls such Holder or
underwriter within the meaning of the Securities Act or                     the Exchange
Act, against any losses, claims, damages, or liabilities (joint or
                    several) to which they may become subject under the Securities Act,
the Exchange                     Act or other federal or state law, insofar as such
losses, claims, damages or                     liabilities (or actions in respect
thereof) arise out of or are based upon any                     of the following
statements, omissions or violations (collectively a                     Violation)
by the Company: (i) any untrue statement or                     alleged untrue statement
of a material fact contained in such registration                     statement,
including any preliminary prospectus or final prospectus contained
                    therein or any amendments or supplements thereto, (ii) the omission
or alleged                     omission to state therein a material fact required to be
stated therein, or                     necessary to make the statements therein not
misleading, or (iii) any violation                     or alleged violation by the
Company of the Securities Act, the Exchange Act, any                     state securities
law or any rule or regulation promulgated under the Securities                     Act,
the Exchange Act or any state securities law in connection with the
                    offering covered by such registration statement; and the Company will
pay as                     incurred to each such Holder, its affiliates, partners,
officers, directors, any                     underwriter (as defined in the Securities
Act) for such Holder and each person,                     if any, who controls such
Holder or underwriter within the meaning of the                     Securities Act or the
Exchange Act, for any legal or other expenses reasonably                     incurred by
them in connection with investigating or defending any such loss,
                    claim, damage, liability or action; provided however, that the
indemnity                     agreement contained in this Section 7.1 shall not apply to
amounts paid in                     settlement of any such loss, claim, damage, liability
or action if such                     settlement is effected without the consent of the
Company, which consent shall                     not be unreasonably withheld, nor shall
the Company be liable in any such case                     for any such loss, claim,
damage, liability or action to the extent that it                     arises out of or is
based upon a Violation which occurs in reliance upon and in
                    conformity with written information furnished expressly for use in
connection                     with such registration by such Holder, partner, officer,
director, underwriter                     or controlling person of such Holder.
| | ---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 7.2. | To
the extent permitted by law, each Holder will, if Registrable Securities held
                    by such Holder are included in the securities as to which such
registration                     qualifications or compliance is being effected,
indemnify and hold harmless the                     Company, each of its directors, its
officers, directors, shareholders, legal                     counsel and accountants for
the Company and each person, if any, who controls                     the Company within
the meaning of the Securities Act, any underwriter and any                     other
Holder selling securities under such registration statement or any of such
                    other Holders its affiliates, partners, directors, shareholders
or                     officers, legal counsel and accountants for each Holder, any
underwriter (as                     defined in the Securities Act) for such Holder or any
person who controls such                     Holder or underwriter within the meaning of
the Securities Act or the Exchange                     Act, against any losses, claims,
damages or liabilities (joint or several) to                     which the Company or any
such director, officer, controlling person, underwriter                     or other such
Holder, or partner, director, officer or controlling person of                     such
other Holder may become subject under the Securities Act, the Exchange Act
                    or other federal or state law, insofar as such losses, claims,
damages or                     liabilities (or actions in respect thereto) arise out of
or are based upon any                     Violation, in each case to the extent (and only
to the extent) that such                     Violation occurs in reliance upon and in
conformity with written information                     furnished by such Holder under an
instrument duly executed by such Holder and                     stated to be specifically
for use in connection with such registration; and each                     such Holder
will pay as incurred any legal or other expenses reasonably incurred
                    by the Company or any such director, officer, controlling person,
underwriter or                     other Holder, or partner, officer, director or
controlling person of such other                     Holder in connection with
investigating or defending any such loss, claim,                     damage, liability or
action if it is judicially determined that there was such a
                    Violation; provided, however, that the indemnity agreement contained
in this                     Section 7.2 shall not apply to amounts paid in settlement of
any such loss,                     claim, damage, liability or action if such settlement
is effected without the                     consent of the Holder, which consent shall
not be unreasonably withheld;                     provided further, that in no event
shall any indemnity under this Section 7.2                     exceed the net proceeds
from the offering received by such Holder.
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | 7.3. | Promptly
after receipt by an indemnified party under this Section 7 of notice of
                    the commencement of any action (including any governmental action),
such                     indemnified party will, if a claim in respect thereof is to be
made against any                     indemnifying party under this Section 7, deliver to
the indemnifying party a                     written notice of the commencement thereof
and the indemnifying party shall have                     the right to participate in,
and, to the extent the indemnifying party so                     desires, jointly with
any other indemnifying party similarly noticed, to assume                     the defense
thereof with counsel mutually satisfactory to the parties; provided,
                    however, that an indemnified party shall have the right to retain its
own                     counsel, with the fees and expenses to be paid by the
indemnifying party, if                     representation of such indemnified party by
the counsel retained by the                     indemnifying party would be inappropriate
due to actual or potential differing                     interests between such
indemnified party and any other party represented by such                     counsel in
such proceeding. The failure to deliver written notice to the
                    indemnifying party within a reasonable time of the commencement of
any such                     action, shall, to the extent materially prejudicial to its
ability to defend                     such action, relieve such indemnifying party of its
liability to the indemnified                     party under this Section 7, but the
omission so to deliver written notice to the                     indemnifying party will
not relieve it of any liability that it may have to any                     indemnified
party otherwise than under this Section 7.
| | ---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 7.4. | If
the indemnification provided for in this Section 7 is held by a court of
                    competent jurisdiction to be unavailable to an indemnified party with
respect to                     any losses, claims, damages or liabilities referred to
herein, the indemnifying                     party, in lieu of indemnifying such
indemnified party thereunder, shall to the                     extent permitted by
applicable law contribute to the amount paid or payable by                     such
indemnified party as a result of such loss, claim, damage or liability in
                    such proportion as is appropriate to reflect the relative fault of
the                     indemnifying party on the one hand and of the indemnified party
on the other in                     connection with the Violation(s) that resulted in
such loss, claim, damage or                     liability, as well as any other relevant
equitable considerations. The relative                     fault of the indemnifying
party and of the indemnified party shall be determined                     by a court of
law by reference to, among other things, whether the untrue or
                    alleged untrue statement of a material fact or the omission to state
a material                     fact relates to information supplied by the indemnifying
party or by the                     indemnified party and the parties relative
intent, knowledge, access to                     information and opportunity to correct
or prevent such statement or omission;                     provided, that in no event
shall any contribution by a Holder hereunder exceed                     the net proceeds
from the offering received by such Holder.
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 7.5. | The
obligations of the Company and Holders under this Section 7 shall survive
                    completion of any offering of Registrable Securities in a
registration statement                     and the termination of this Agreement. No
indemnifying party, in the defense of                     any such claim or litigation,
shall, except with the consent of each indemnified                     party, 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.
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 7.6. | The
indemnification provisions of this Section 7 shall not be in limitation of
                    any other indemnification provisions included in any other agreement
| | ---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------

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|8. | ASSIGNMENT
OF REGISTRATION RIGHTS; TRANSFER OF REGISTRABLE SECURITIES.
|-- | ----------------------------------------------------------------------

| | 8.1. | The
rights to cause the Company to register Registrable Securities pursuant to
                    this Agreement may be assigned by a Holder to any Affiliate of the
Holder that                     acquires at least 100,000 Registrable Securities (as
adjusted for stock splits,                     combinations and other recapitalization
events); provided, however, (i) the                     transferor shall, within ten (10)
days after such transfer, furnish to the                     Company written notice of
the name and address of such transferee and the                     securities with
respect to which such registration rights are being assigned,                     and
(ii) such transferee shall agree to be subject to all provisions and
                    restrictions set forth in this Agreement and shall have the rights
and                     privileges of a Holder under this Agreement.
| | ---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 8.2. | In
the event of a sale of Registrable Securities by a Holder, such Holder must
                    also deliver to the Companys transfer agent, with a copy to the
Company, a                     certificate of subsequent sale reasonably satisfactory to
the Company, so that                     ownership of the Registrable Securities may be
properly transferred. The Company                     will cooperate to facilitate the
timely preparation and delivery of certificates                     (unless otherwise
required by applicable law) representing Registrable                     Securities sold.
| | ---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|9. | AGREEMENT
TO FURNISH INFORMATION
|-- | --------------------------------

| | Each
Holder of Registrable Securities shall furnish to the Company such information regarding
such Holder and the distribution proposed by such Holder as the Company may reasonably
request in writing and as shall be reasonably required in connection with any
registration, qualification or compliance referred to in this Agreement.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|10. | RULE
144 REPORTING.
|--- | -------------------

| | 10.1. | With
a view to making available to the Holders the benefits of certain rules and
                    regulations of the SEC which may permit the sale of the Registrable
Securities                     to the public without registration, the Company (at any
time after it has become                     subject to such reporting requirements)
agrees to use its best efforts to:
| | ----- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 10.1.1. | Make
and keep public information available, as those terms are understood and
                    defined in SEC Rule 144 or any similar or analogous rule promulgated
under the                     Securities Act, at all times;
| | ------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 10.1.2. | File
with the SEC, in a timely manner, all reports and other documents required
                    of the Company under the Exchange Act; and
| | ------- | ----------------------------------------------------------------------------------------------------------------------------------------------

| | 10.1.3. | So
long as a Holder owns any Registrable Securities, furnish to such Holder
                    forthwith upon request: a written statement by the Company as to its
compliance                     with the reporting requirements of said Rule 144 of the
Securities Act, and of                     the Exchange Act (at any time after it has
become subject to such reporting                     requirements); a copy of the most
recent annual or quarterly report of the                     Company; and such other
reports and documents as a Holder may reasonably request                     in availing
itself of any rule or regulation of the SEC allowing it to sell any
                    such securities without registration.
| | ------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|11. | MISCELLANEOUS.
|--- | --------------

| | 11.1. | Expenses.
Each of Gibbs and the Company shall pay its own expenses and                     costs
incurred in connection with the negotiation, approval, authorization and
                    execution of this Agreement.
| | ----- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 11.2. | Entire
Agreement. This Agreement constitute the full and
                    entire understanding and agreement between the parties with regard to
the                     subject matters hereof and supersede all prior negotiations,
agreements and                     understandings of the parties of any nature, whether
oral or written, relating                     thereto.
| | ----- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | 11.3. | Amendment
of Registration Rights. Any provision of this Agreement may be
                    amended and the observance thereof may be waived (either generally or
in a                     particular instance and either retroactively or prospectively),
with the written                     consent of the Company (subject to the required
corporate approval) and Gibbs.                     Any amendment or waiver affected in
accordance with this Section 11.3 shall be                     binding upon all Holders
and the Company. By acceptance of any benefits under                     this Agreement,
Holders of Registrable Securities hereby agree to be bound by                     the
provisions hereunder.
| | ----- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 11.4. | Termination.
This Agreement shall terminate and shall have no further                     force and
effect at such time that the Holders cease to hold any Registrable
                    Securities.
| | ----- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 11.5. | Governing
Law; Venue. This Agreement shall be governed by and construed
                    under the laws of the State of New York, without regard to the
conflicts of law                     principles of such State. The parties hereto
irrevocably submit to the exclusive                     jurisdiction of the Courts of New
York located in the City of New York in                     respect of any dispute or
matter arising out of or connected with this                     Agreement.
| | ----- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 11.6. | Successors
and Assigns. Subject to the provisions of Section 8, the
                    provisions hereof shall inure to the benefit of, and be binding upon,
the                     successors, assigns, heirs, executors, and administrators of the
parties hereto                     and shall inure to the benefit of and be enforceable
by each person who shall be                     a holder of Registrable Securities from
time to time.
| | ----- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 11.7. | Severability.
In the event one or more of the provisions of this                     Agreement should,
for any reason, be held to be invalid, illegal or                     unenforceable in
any respect, such invalidity, illegality, or unenforceability                     shall
not affect any other provisions of this Agreement, and this Agreement
                    shall be construed as if such invalid, illegal or unenforceable
provision had                     never been contained herein.
| | ----- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 11.8. | Delays
or Omissions. It is agreed that no delay or omission to exercise
                    any right, power, or remedy accruing to any Holder, upon any breach,
default or                     noncompliance of the Company under this Agreement shall
impair any such right,                     power, or remedy, nor shall it be construed to
be a waiver of any such breach,                     default or noncompliance, or any
acquiescence therein, or of any similar breach,                     default or
noncompliance thereafter occurring. It is further agreed that any
                    waiver, permit, consent, or approval of any kind or character on any
                    Holders part of any breach, default or noncompliance under the
Agreement                     or any waiver on such Holders part 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, by law, or otherwise
afforded to Holders, shall be cumulative and not                     alternative.
| | ----- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 11.9. | Aggregation
of Shares. All Cimatron Shares held by any Holder and any
                    Affiliate thereof, shall be aggregated together for the purpose of
determining                     the availability of any rights under this Agreement, the
applicability of any                     limitation under this Agreement, or calculating
such Holders pro rata                     share.
| | ----- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 11.10. | Notices.
All notices required or permitted hereunder shall be in writing                     and
shall be deemed effectively given: (i) upon personal delivery to the party
                    to be notified, (ii) when sent by confirmed electronic mail or
facsimile if sent                     during normal business hours of the recipient; if
not, then on the next business                     day, (iii) five (5) days after having
been sent by registered or certified mail,                     return receipt requested,
postage prepaid, or (iv) two (2) days after deposit                     with an
internationally recognized courier, specifying two day delivery, with
                    written verification of receipt. All communications shall be sent to
the party                     to be notified at the address as set forth below or at such
other address as                     such party may designate by ten (10) days advance
written notice to the other                     parties hereto.
| | ------ | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | If to the Company:
Cimatron Ltd.
11 Gush Etzion Street
Givat Shmuel 54030, Israel
Fax: +972-3-5312097
Attn: Danny Haran, Chief Executive Officer
| | ------------------------------------------------------------------------------------------------------------------------------------------------

| | With a mandatory copy to:
Meitar, Liquornik, Geva & Leshem, Brandwein - Law Offices
16 Abba Hillel Road
Ramat Gan 52506, Israel
Fax: 972-3-6103111
Attn: Asaf Harel, Advocate
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | If to Gibbs:
William F. Gibbs
4017 N Cedarpine Lane
Moorpark, CA 93021
home telephone: 805-529-1991
office telephone: 805-523-0004
office fax 805-523-0006
cell 805-377-1789
email: bill@gibbsCAM.com
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | With a mandatory copy to:
Farella Braun + Martel LLP
Russ Building
235 Montgomery Street
San Francisco, CA 94104
Attn: Brian Donnelly
Telephone: 415.954.4400
Direct Phone: 415.954.4465
Fax: 415.954.4480
Email: BDonnelly@fbm.com
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 11.11. | Counterparts.
This Agreement may be executed in any number of                     counterparts
(including by facsimile transmission), all of which together shall
                    constitute one instrument.
| | ------ | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

- Signature Page to Follow -

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IN
WITNESS WHEREOF, the parties have duly signed this Registration Rights Agreement as of
the Effective Date.

# THE COMPANY:

|                                                                           
|---------------------------------------------------------------------------
|_________________________________________                                  
|CIMATRON LTD.                                                              
|                                                                           
|Name:   Danny Haran
              _________________________________________
|                                                                           
|Title:     CEO
              _________________________________________     

# THE HOLDER:

|_________________________________________
|-----------------------------------------
|MR. WILLIAM F. GIBBS                     

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