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Exhibit 4.2

REGISTRATION RIGHTS
AGREEMENT

BY AND AMONG

CIMATRON LTD.

AND

KOONRAS TECHNOLOGIES
LTD. 
D.B.S.I. INVESTMENTS LTD.

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DATED JUNE 3, 2007

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# REGISTRATION RIGHTS
AGREEMENT

THIS
REGISTRATION RIGHTS AGREEMENT (the Agreement) is entered into as of
the 3rd day of June, 2007, by and among CIMATRON LTD., a company
incorporated under the laws of the State of Israel (the Company), KOONRAS
TECHNOLOGIES LTD., acompany incorporated under the laws of the State of Israel
(Koonras) and D.B.S.I. INVESTMENTS LTD.,acompany
incorporated under the laws of the State of Israel (DBSI).

WHEREAS,
Koonras and DBSI are holders of the Companys Ordinary Shares, par value NIS 0.1 each
(Ordinary Shares);

WHEREAS,
the parties wish to set provisions governing the registration of the Companys
Ordinary Shares held by the Holders, as set forth herein.

NOW,
THEREFORE, the parties agree as follows:

1.    
          DEFINITIONS.

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

1.1.              Board means
the Board of Directors of the Company.

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

1.3.              Form
F-1 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.

1.4.              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.

1.5.              Holder(s) means
Koonras and/or DBSI so long as they own of           record of Registrable Securities or
any assignee of record of such Registrable           Securities in accordance with the
provisions of this Agreement.

1.6.              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.

1.7.              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.

1.8.              Registrable
Securities means all Ordinary Shares owned of           record now or in the
future by the Holders, and any and all securities issued or           issuable with
respect thereto upon any stock split or stock dividend, or into           which such
Ordinary 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) its effective registration under the Securities
          Act and resale in accordance with the registration statement covering it, or
          (ii) or its sale to the public pursuant to Rule 144.

1.9.              Registration
Expenses shall mean all expenses incurred by the           Company in complying
with Sections 2.2, 2.3 and 2.4 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 (selected by Holders of the majority of           the Registrable
Securities requesting such registration), blue sky fees and           expenses and the
expense of any special audits incident to or required by any           such registration,
but excluding Selling Expenses.

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

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

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

1.13.              SellingExpenses 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.    
          DEMAND REGISTRATION.

2.1.    Request
for Registration. Subject to the conditions of this Section 2, if           the
Company shall receive a written request from Holders of 70% of the           Registrable
Securities (the Initiating Holders) that the           Company file a
registration statement on Form F-1 covering the registration of           Registrable
Securities having an anticipated aggregate offering proceeds for the
          Registrable Shares to be registered, net of underwriting discounts and
          commissions, exceeding $1,000,000, then the Company shall, within thirty (30)
          days of the delivery thereof, give written notice of such request to all
          Holders, and subject to the limitations of this Section 2, and use its best
          efforts to effect, as promptly as reasonably possible, the registration under
          the Securities Act of the Registrable Securities that the Holders as are
          specified in the Initiating Holders request, together with the
Registrable           Securities of any Holder(s) joining in such request as are
specified in a           written request received by the Company within the above 30-day
period.

2.2.    Underwritten
Offering.

| | 2.2.1.              If
the Initiating Holders intend to distribute the Registrable Securities           covered
by their request by means of an underwriting, they shall so advise the           Company
as a part of their request made pursuant to this Section 2 or any           request
pursuant to Section 4 and the Company shall include such information in           the
written notice referred to in Section 2.1 or Section 4.1, as applicable. 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. All Holders
proposing to           distribute their securities through such underwriting shall enter
into an           underwriting agreement in customary form with an internationally
recognized           underwriter(s) designated for such underwriting as the lead or
managing           underwriter(s) by the Initiating Holders, who shall be acceptable to
the           Company, its acceptance not to be unreasonably withheld.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 2.2.2.              Notwithstanding
any other provision of this Section 2 or Section 4, if the           underwriter advises
the Company that marketing factors require a limitation of           the number of
securities to be underwritten (including Registrable Securities)           then the
Company shall so advise all Holders of Registrable Securities which           would
otherwise be underwritten pursuant hereto, and the number of shares that           may be
included in the underwriting shall be allocated to the Holders of such
          Registrable Securities so requested to be registered on a pro rata basis based
          on the number of Registrable Securities held by all such Holders (including the
          Initiating Holders); provided, however, that the number of shares of
Registrable           Securities to be included in such underwriting and registration
shall not be           reduced unless all other securities of the Company are first
entirely excluded           from the underwriting and registration. Any Registrable
Securities excluded or           withdrawn from such underwriting shall be withdrawn from
the registration.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

2.3.    Exclusions.
The Company shall not be required to effect a registration           pursuant to this
Section 2 (without limiting any other provisions of this           Section 2 to that
effect):

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| | 2.3.1.              After
the Company has effected two (2) registrations pursuant to this Section 2,           and
such registrations have been declared or ordered effective;
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 2.3.2.              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 the registration
          statement pertaining to the Companys securities; provided that the
Company           makes reasonable good faith efforts to cause such registration
statement to           become effective;
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 2.3.3.              If
within ten (10) days of receipt of a written request from Initiating Holders
          pursuant to Section 2.1, the Company gives notice to the Holders of the
          Companys good faith intention to file a registration statement for a
          public offering for a sale of the Companys shares for its own account
          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;
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 2.3.4.              If
the Company shall furnish to Holders requesting a registration statement
          pursuant to this Section 2, an officers certificate signed by order of
the           Board stating that in the good faith judgment of the Board, it would be
          seriously detrimental to the Company and its shareholders for such registration
          statement to be effected at such time, in which event the Company shall have
the           right to defer such filing for a period of not more than one hundred and
twenty           (120) days after receipt of the request of the Initiating Holders;
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.    
          PIGGYBACK REGISTRATIONS.

3.1.    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 F-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 3.1, 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.

3.2.    Underwritten
Offering.

| | 3.2.1.              If
the registration statement under which the Company gives notice under this
          Section 3 is for an underwritten offering, the Company shall so advise the
          Holders of Registrable Securities as part of its notice made pursuant to
Section           3.1. In such event, the right of any such Holder to be included in a
          registration pursuant to this Section 3 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.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 3.2.2.              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 pro-rata,
based on the total number of Registrable Securities held by           the Holders; and
third, to any shareholder of the Company (other than a Holder)           on a pro rata
basis. Any Registrable Securities excluded or withdrawn from such           underwriting
shall be excluded and withdrawn from the registration.
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3.3.    Right
to Terminate Registration. The Company shall have the right to           terminate or
withdraw any registration initiated by it under this Section 3           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
5 hereof.

4.    
          SHELF REGISTRATION STATEMENT REGISTRATION.

4.1.              Subject
to the conditions of this Section 4, if the Company shall receive a           written
request(s) from any Holder(s) of Registrable Securities 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 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.

4.2.    Exclusions.
The Company shall not be required to effect a registration           pursuant to this
Section 4 (without limiting any other provisions of this           Section 4 to that
effect):

| | 4.2.1.              After
the Company has effected four (4) registrations pursuant to this Section           4, and
such registrations have been declared or ordered effective;
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| | 4.2.2.     If
          Form F-3 is not available for such offering by the Holders, or
| | --------------------------------------------------------------------------------------

| | 4.2.3.              If
it is requested to effect more than two (2) registrations under this Section           4
in any twelve (12) month period;
| | ------------------------------------------------------------------------------------------------------------------------------------------------

| | 4.2.4.              If
within ten (10) days of receipt of a written request from any Holder or           Holders
pursuant to this Section 4, the Company gives notice to such Holder or           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;
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 4.2.5.              If
the Company shall furnish to the Holders requesting a registration statement
          pursuant to this Section 2, an officers certificate signed by order of
the           Board stating that in the good faith judgment of the Board, it would be
          seriously detrimental to the Company and its shareholders for such Shelf
          Registration Statement to be effected at such time, in which event 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 or Holders under this Section 4; 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
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | 4.2.6.              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.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

4.3.    Suspension.

| | 4.3.1.              In
addition to any suspension rights under subsection 4.3.2 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 4.3 shall be held by each Holder in strictest
confidence and shall not           be disclosed by such Holder.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 4.3.2.              Subject
to subsection 4.3.3 below, 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 4.3 shall be held by each Holder in strictest
          confidence and shall not be disclosed by such Holder.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 4.3.3.              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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4.4.              Registrations
effected pursuant to this Section 4 shall not be counted as           demands for
registration or registrations effected pursuant to Sections 2 or 3,
          respectively.

5.    
          EXPENSES OF REGISTRATION.

5.1.              Except
as specifically provided herein, all Registration Expenses incurred in
          connection with any registration, qualification or compliance pursuant to
          Sections 2, 3 or 4 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.

6.    
          OBLIGATIONS OF THE COMPANY.

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

| | 6.1.1.              Prepare
and file with the SEC a 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 thirty (30) days (and in the
          case of registration pursuant to Section 4 one hundred during the Registration
          Period) or, if earlier, until the Holder or Holders have completed the
          distribution related thereto.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 6.1.2.              Prepare
and file with the SEC such amendments and supplements to such           registration
statement and the prospectus used in connection with such           registration
statement as may be 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 (a) above.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 6.1.3.              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.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 6.1.4.              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.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 6.1.5.              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.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 6.1.6.              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.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 6.1.7.              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.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | 6.1.8.              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.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

7.    
          DELAY OF REGISTRATION; FURNISHING INFORMATION.

7.1.              It
shall be a condition precedent to the obligations of the Company to take any
          action pursuant to Section 2, 3 or 4 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.

7.2.              The
Company shall have no obligation with respect to any registration requested
          pursuant to Section 2 if, due to the operation of subsection 2.2, the number of
          shares or the anticipated aggregate offering price of the Registrable
Securities           to be included in the registration does not equal or exceed the
number of shares           or the anticipated aggregate offering price required to
originally trigger the           Companys obligation to initiate such registration
as specified in Section           2.

8.    
          INDEMNIFICATION.

In
the event any Registrable Securities are included in a registration statement under
Sections 2, 3 or 4:

8.1.              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 8.1 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.

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8.2.              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 8.2 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 8.2           exceed the net proceeds from the offering
received by such Holder.

8.3.              Promptly
after receipt by an indemnified party under this Section 8 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 8, 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 8, 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 8.

8.4.              If
the indemnification provided for in this Section 8 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.

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8.5.              The
obligations of the Company and Holders under this Section 8 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.

8.6.              The
indemnification provisions of this Section 8 shall not be in limitation of           any
other indemnification provisions included in any other agreement.

9.    
          ASSIGNMENT OF REGISTRATION RIGHTS; TRANSFER OF REGISTRABLE SECURITIES.

9.1.              The
rights to cause the Company to register Registrable Securities pursuant to           this
Agreement may be assigned by a Holder to any transferee or assignee of all           or
part of the Registrable Securities held by such 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 or assignee 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.

9.2.              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.

10.    
          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.

11.    
          RULE 144 REPORTING.

11.1.              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:

| | 11.1.1.              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 after the effective date of the first registration
          filed by the Company for an offering of its securities to the general public;
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 11.1.2.              File
with the SEC, in a timely manner, all reports and other documents required           of
the Company under the Exchange Act; and
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------

| | 11.1.3.              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.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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12.    
          MISCELLANEOUS.

12.1.    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.

12.2.    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 Holders           of 70%
of the Registrable Securities. Any amendment or waiver effected in           accordance
with this Section 12.1 shall be binding upon each Holder and the           Company. By
acceptance of any benefits under this Agreement, Holders of           Registrable
Securities hereby agree to be bound by the provisions hereunder.

12.3.    Governing
Law; Venue. This Agreement shall be governed by and construed           under the
laws of the State of Israel, without regard to the conflicts of law           principles
of such State. The parties hereto irrevocably submit to the exclusive
          jurisdiction of the Courts of the district of Tel Aviv-Jaffa in respect of any
          dispute or matter arising out of or connected with this Agreement.

12.4.    Successors
and Assigns. Subject to the provisions of Section 9, 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.

12.5.    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.

12.6.    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.

12.7.    Aggregation
of Shares. All shares of the Company held or acquired by any           Holder and any
entity or person which controls, is controlled by or is under           common control
with such Holder (for the purpose of this Section,           control shall
mean the holdings directly or indirectly of a           majority of the voting
securities), 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.

12.8.    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:    Dan Haran, Chief Executive OfficerWith 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, AdvocateIf to Koonras:
21 Ha'arba'a St.
Tel Aviv, IsraelIf to DBSI:
85 Medinat Ha'yehudim St.
Herzlia, Israel
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

12.9.    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 follows 

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

# THE COMPANY:

|/s/ Dan HaranCIMATRON LTD.Name: Dan Haran
Title: CEO |  | 
|--------------------------------------------------------------------- |  | 

# THE HOLDERS:

|/s/ Rimon Ben-Shaoul       /s/ Ken laloKOONRAS TECHNOLOGIES LTD.Name: Rimon Ben-Shaoul     Ken Lalo |  | /s/ Yossi Ben-Shalom    /s/ Barak DotanD.B.S.I. INVESTMENTS LTD.
Name: Yossi Ben-Shalom    Barak Dotan
|-------------------------------------------------------------------------------------------------------------------- |  | -----------------------------------------------------------------------------------------------------------------------

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