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Exhibit 4.2.5

Execution Copy

EMPLOYMENT AGREEMENT

| | THIS
EMPLOYMENT AGREEMENT (the Agreement) is made as of the 2NDday
of January, 2008 (Effective Date) by and between William F. Gibbs, a
resident of 4017 N Cedarpine Lane, Moorpark, CA  93021, United States of America
(the Executive), and Nortamic, LLC, a California limited liability
company with offices at 323 Science Drive, Moorpark, CA 93021 (the Company).
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | WHEREAS,
the Company desires to employ Executive as its President and Chief Executive Officer, and
Executive desires to be employed by the Company as its President and Chief Executive
Officer, upon the terms and conditions hereinafter set forth.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | NOW,
THEREFORE, in consideration of the mutual covenants and obligations contained herein, and
intending to be legally bound, the parties, subject to the terms and conditions set forth
herein, agree as follows:
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 1. | Employment
and Term. The Company hereby agrees to employ Executive,                and
Executive hereby agrees to accept employment with the Company, in the
               position of the President and Chief Executive Officer of the Company (the
               Position), upon the terms set forth in this Agreement,
for                the period (the Term) commencing as of the
Effective Date and                continuing until terminated by either party in
accordance with the provisions of                Section 7. The Executive shall be under
the direct supervision of, and comply                with the directives of, the
President and Chief Executive Officer of Cimatron                Ltd. (Cimatron).
During the Term, the Executive will form                part of Cimatrons
management team.
| | -- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 2. | Duties.
During the Term, Executive shall serve the Company faithfully                and to the
best of his ability and shall devote his full time, attention, skill                and
efforts to the performance of the lawful duties required by or appropriate
               for the Position. Accordingly, during the Term, Executive agrees not to
accept                any other employment or position (as an employee, consultant or
otherwise) with                any third party or otherwise engage in any other business
activities. Executive                shall be responsible for the efficient performance
of his duties and of the                responsibilities of the Position as determined by
the Company on an on-going                basis. During the Term, Executive agrees to
refrain from engaging in any                activity that does, will or could reasonably
be deemed to conflict with the best                interests of the Company. Provided,
however, while performing services                hereunder, Executive may serve as a
member of a board of directors of one (1)                non-competitive company, the
identity of which has been approved in advance by                the Company and engage
in charitable and public service activities provided that                such services or
activities do not interfere with the performance of his duties                and
responsibilities under this Agreement.
| | -- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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| | 3. | Compensation.
The Company shall pay Executive, and Executive hereby                agrees to accept, as
compensation for all services rendered hereunder and for                Executives
covenants provided for herein and in Exhibit                C, the
compensation set forth in this Section 3.
| | -- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Base
Salary. The Company shall pay Executive a base salary (the Base
Salary) at the annual rate of US$160,000, in equal semi-monthly installments.
The Base Salary shall be subject to withholding for all applicable income, social security
and other taxes and charges that are required by law to be withheld by the Company, or are
requested to be withheld by Executive, and shall be withheld and paid in accordance with
the normal payroll practice for similarly situated employees of the Company, Cimatron and
Cimatron Technologies, Inc. (CTI and together with the Company and
Cimatron, the Company Group) in the United States as in effect from
time to time.

Bonus
Program. Executive shall be entitled to receive a bonus (the
Annual Bonus) (subject to withholding as described above in Section 0)
for each calendar year of continues employment ending (starting with the calendar year
2008) during the Term based upon the criteria set forth in Exhibit A attached hereto.

Fringe
Benefits. Executive shall be entitled to health, life and disability
insurance and other fringe benefit programs (including a 401(k) or similar plan funded by
Executive) (the Benefits) of the Company on terms and conditions as are
customary for other comparable officers and employees of the Company Group in the United
States.

Reimbursement
of Expenses. The Executive acknowledges and agrees that from time to time
he may be required by the Company to travel abroad and inside the US as part of his work
in the Company. Executive shall be reimbursed for all normal items of travel and
miscellaneous expenses reasonably incurred by him on behalf of Company, provided that such
expenses are documented and submitted to the Company all in accordance with the
reimbursement policies of the Company Group as in effect from time to time.

Vacation The
Executive shall be entitled to an annual vacation of twenty (20) business           days
per year. It is hereby clarified that the Executive must make every effort           to
take annual vacation, but if he is unable to utilize all his vacation days,           he
shall be entitled to accumulate the unused portion of his vacation days up to           a
ceiling of fifty (50) vacation days (the Ceiling). The
          balance of vacation days in excess of the Ceiling shall be paid in accordance
          with the Companys policies as may be amended from time to time. Any
          outstanding vacation days due to the Executive as aforesaid upon the
termination           of his employment, shall be paid in accordance with applicable law.

| | 4. | Stock
Options. Subject to the terms of Cimatrons Stock Option                Plan
and the stock option agreement attached hereto as Exhibit                B,
the Executive shall be granted as promptly as possible after                the date
hereof (the Date of Grant) an option to purchase                such
number of Ordinary Shares of Cimatron as shall be agreed by the Company and
               the Executive (not to exceed 20,000 shares) at the then current fair
market                value of such Ordinary Shares (the Options). The
Executive                undertakes to take all actions and to sign all documents
required, at the                discretion of Cimatron, in order to give effect to and
enforce the above terms                and conditions. Any tax liability in connection
with the Options (including with                respect to the grant, exercise, sale of
the Options or the shares receivable                upon their exercise) shall be borne
solely by the Executive.
| | -- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | 5. | Taxes;
Section 409A of Internal Revenue Code. Any tax liability in
connection with any payments or compensation due to the Executive
hereunder shall be borne solely by the Executive. The Company shall deduct
from any such payments or compensation any relevant taxes and charges that
are required by law to be withheld by the Company, or are requested to be
withheld by Executive. Executive hereby elects to receive, and the Company
hereby agrees to pay, the compensation payable to Employee under Section 7
of this Agreement (the Post-Termination Compensation)
at the time, in the manner, and on the terms and conditions set forth in
Section 7. The parties acknowledge and agree that the Post-Termination
Compensation is intended to be for Executives compliance with the
restrictions in Section 6 and is not to be considered deferred
compensation or severance pay in connection with Executives
employment under this Agreement.  Notwithstanding the foregoing,
however, if the payment of the Post-Termination Compensation is ever
determined to be subject to Section 409A (Section 409A)
of the Internal Revenue Code (the Code), (i) neither
Executive nor the Company shall have the right to accelerate or defer any
payment of such Post-Termination Compensation; (ii) the
Post-Termination Compensation shall be payable only if Executive has
incurred a Separation from Service from the Company (as defined below),
(iii) Post-Termination Compensation shall be paid out of the Companys
general assets, and (iv) if Executive is a Code Section 416(i) key
employee (determined without regard to Code Section 416(i)(5) which
treats a key employees beneficiary as a key employee) of the Company
at any time during the 12-month period ending on December 31stof
the calendar year preceding the calendar year in which payment of
Post-Termination Compensation commences, and if any Companys stock
is publicly traded on an established securities market or otherwise on the
date of Executives Separation from Service, payments of the
Post-Termination Compensation shall commence on the first regular Company
payday in the seventh month following the month in which Executives
Separation from Service occurs.  If the Post-Termination Compensation
is ever determined to be subject to Section 409A, a Separation
from Service is deemed to occur if Executive dies, retires, or
otherwise has a termination of employment with the Company; provided, that
Executives employment relationship is treated as continuing intact
while on sick leave or other bona fide leave of absence if the period of
such leave does not exceed six months or longer, if Executives right
to reemployment is provided either by statute or by contract; and provided,
further, if Executive continues to provide services to the Company in any
capacity after termination or expiration of this Agreement or termination
of Executives employment relationship with the Company (the
Post-Termination Services), the determination of
whether a Separation from Service has occurred shall be made in accordance
with Section 409A.  For purposes of this paragraph, the term Company includes
all other organizations that together with the Company are part of a Code
Section 414(b-c) control group of organizations.
| | -- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | 6. | Confidentiality;
Invention Assignment and Non-Compete. Executive                shall execute the
Confidential Information, Non-Compete and Invention Assignment                Agreement
attached hereto as Exhibit C simultaneously with                the
execution of this Agreement. Nothing set forth in Exhibit                C shall
limit or terminate any obligations that Executive may                have pursuant to any
other agreement of confidentiality, non-compete, or                assignment of rights
with the Company or any of its predecessor entities.
| | -- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 7. | Termination.
In the event of a termination of this Agreement, then                the following shall
apply:
| | -- | ------------------------------------------------------------------------------------------------------------

In
the event that the Company terminates the Executives employment for Cause (as
defined below) then (a) Executive shall be entitled to receive all accrued but unpaid (as
of the effective date of such termination) Base Salary and Benefits, and (b) the Company
may terminate the Executives employment immediately and without prior notice. All
Base Salary and Benefits shall cease at the time of such termination. Executive shall not
be entitled to receive any Bonus for (i) the then current calendar quarter or calendar
year, as may be the case. Except as specifically set forth in this Section 0, the Company
shall have no liability or obligation to Executive hereunder by reason of such
termination of the Executive.

| | For
purposes of this Agreement, termination for Cause shall mean
termination due to the occurrence of any of the following: (i) any material breach by
Executive of any of the covenants set forth herein, including any covenants set forth in
Exhibit C attached hereto, which, to the extent cureable, continues after notice and a
reasonable opportunity to cure of 10 Business Days has been provided; (ii) Executive has
been grossly negligent or has committed willful misconduct in carrying out his duties
hereunder, which, to the extent cureable, continues after notice and a reasonable
opportunity to cure of 10 Business Days has been provided; (iii) the Executives
conduct causing grave injury to the Company Group, monetarily or otherwise; (iv)
conviction of a felony or other criminal act punishable by more than one (1) year in
prison, or (v) commission by Executive of an intentional tort or an act involving moral
turpitude or constituting fraud. If, as a result of arbitration, an arbitrator later
determines that termination by the Company of Executives employment purportedly for
cause was without cause, the termination will be deemed a termination without cause, and
Executive will be entitled to the benefits set forth in Section 7.2. For the purpose of
this Agreement, Business Day means a day other than Saturday, Sunday
or any day on which banks located in the State of California are authorized or obligated
to close.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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The
Company may terminate the Executives employment at any time without
Cause, upon a prior written notice (a) during the first year of employment
 of nine (9) months, (b) during the second year of employment  of six (6)
months, and (c) at any time following two (2) years of employment  of three (3)
months. In such event, Executive shall be entitled to receive all accrued but unpaid (as
of the effective date of such termination) Base Salary, Benefits and a pro-rata amount (as
determined in good faith by the Companys management) of the Bonus applicable to the
then calendar quarter or calendar year, as may be the case, in exchange for a release of
claims in the form attached hereto as Exhibit D to be executed by the
Executive. Except as specifically set forth in this Section 0, the Company shall have no
liability or obligation to Employee hereunder by reason of such termination.

The
Company shall have the right at any time to terminate the Executives employment if
the Executive is substantially unable to perform the essential functions of the Position
by reason of any mental, physical or other disability for a period of at least six (6)
consecutive months (after any accommodations required by the American with Disabilities
Act or applicable state law). This Agreement shall also terminate upon the death of the
Executive. Termination pursuant to this Section 0 shall be deemed termination not for
Cause.

At
any time after five (5) years from the date hereto, Executive shall be entitled to
terminate his employment hereunder for any reason and for no reason, upon a prior written
notice of three (3) months. A breach by the Executive of this Section shall be deemed a
material breach of this Agreement.

Notwithstanding
the provisions of Section 0 above, the Executive may terminate this Agreement at any time
upon the occurrence of Good Reason (as defined below). In such event, Executive shall be
entitled to compensation as set forth in Section 0 as though the Company had terminated
the Executives employment without Cause. For this purpose, the term
Good Reason shall mean (i) a material diminution in the
Executives authority, duties, title or responsibilities, provided, however, that a
reduction in authority and responsibilities solely by virtue of the Company / CTI /
Cimatron being acquired and made part of a larger entity will not constitute Good
Reason to the extent the Executive remains Chief Executive Officer (or equivalent
position) of a division, unit or subsidiary of the acquiror, which division, unit or
subsidiary conducts substantially the same core business as was conducted by the Company
prior to any such acquisition or similar corporate transaction, (ii) a decrease in
Executives Base Salary of 10% or greater, except in the event that all employees of
the Company Group who hold executive positions have a similar reduction in their
respective base salaries, or (iii) the Companys material breach of this Agreement,
which, to the extent cureable, continues after notice and a reasonable opportunity to cure
of 10 Business Days has been provided.

Notwithstanding
anything to the contrary herein, the Company may immediately cease the Executives
employment and may shorten all or part of any notice period whether given by the Company
or the Executive and in such event the Executive shall be entitled to all Base Salary and
all other benefits as provided in Section 3 above (except for Bonus) as if the Executive
would have been employed by the Company for duration of the applicable notice period
specified above; provided, however, that Bonus payments will be made in accordance with
the provisions of Section 0 and 0 above.

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Subject
to the foregoing provisions of this Section 7, the employment relationship with the
Company is one of employment at will and may be terminated by either Executive or the
Company at any time, with or without cause or prior notice, subject always to the terms
and conditions set forth above.

| | 8. | Representations,
Warranties and Covenants of Executive.Executive represents and warrants
to the Company that:
| | -- | -------------------------------------------------------------------------------------------------------------

There
are no restrictions, agreements or understandings whatsoever to which Executive is a party
which would prevent or make unlawful Executives execution of this Agreement or
Executives continued employment hereunder, or which is or would be inconsistent or
in conflict with this Agreement or Executives employment hereunder, or would
prevent, limit or impair in any way the performance by Executive of the obligations
hereunder;

Executive
has disclosed to the Company in writing all restraints, confidentiality commitments or
other employment restrictions that he has with any other employer, person or entity; and

In
any event of the termination of this Agreement, the Executive shall, for as long as he is
still an Executive of the Company (including any notice period), cooperate with the
Company and use his best efforts to assist with the integration into the Companys
organization of the person or persons who will assume the Executives
responsibilities.

| | 9. | Survival
of Provisions. The provisions of this Agreement set forth in
               Sections 5, 6, 7, 9, 10, 12, 13 and 14 hereof and Exhibit C attached
hereto                shall survive the termination of Executives employment
hereunder for any                reason whatsoever.
| | -- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 10. | Successors
and Assigns. Neither party may assign or transfer this                Agreement
nor any right or obligation herein, without the prior written consent                of
the other party, and any such prohibited assignment or transfer shall be null
               and void.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 11. | Entire
Agreement; Amendments. This Agreement and its exhibits                supersede
all prior agreements and understandings between the parties as to its
               subject matter. This Agreement may not be changed or modified, except by
an                agreement in writing signed by each of the parties hereto.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | 12. | Governing
Law; Arbitration. This Agreement shall be construed and                enforced
in accordance with, and shall be governed by, the laws of the State of
               California.In the event any claim or controversy
arises                concerning any provision of this Agreement, Company and Executive
hereby agree                that such claim or controversy, including the termination of
employment, alleged                intentional torts or allegations of harassment or
discrimination between Company                and Executive and commission disputes shall
be settled by final, binding                arbitration in accordance with the Employment
Dispute Resolution Rules of the                American Arbitration Association,
provided, however, that the impartial                arbitrator shall be selected as
follows: If Company and Executive are unable to                agree upon an impartial
arbitrator within five (5) days of a request for                arbitration, the parties
shall request a panel of five (5) labor and employment                arbitrators from
the American Arbitration Association and shall alternately                strike names
until a single arbitrator remains. Arbitration shall occur in the                County
of San Francisco, State of California. Judgment upon the award rendered                by
the arbitrator may be entered in any court having jurisdiction thereof.
               Depositions may be taken and other discovery may be obtained during such
               arbitration proceedings to the same extent as authorized in civil judicial
               proceedings, subject to any limitations placed on discovery by the
arbitrator.                If the Executive commences arbitration, he/she shall pay the
initial fee, and                all other fees shall be borne equally by the parties.
Each party shall be solely                responsible for its own attorneys fees.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 13. | Invalidity.
If any provision of this Agreement shall be determined to                be void,
invalid, unenforceable or illegal for any reason, the validity and
               enforceability of all of the remaining provisions hereof shall not be
affected                thereby. If any particular provision of this Agreement shall be
adjudicated to                be invalid or unenforceable, such provision shall be deemed
amended to delete                therefrom the portion thus adjudicated to be invalid or
unenforceable, such                amendment to apply only to the operation of such
provision in the particular                jurisdiction in which such adjudication is
made; provided that, if any provision                contained in this Agreement shall be
adjudicated to be invalid or unenforceable                because such provision is held
to be excessively broad as to duration,                geographic scope, activity or
subject, such provision shall be deemed amended by                limiting and reducing
it so as to be valid and enforceable to the maximum extent                compatible with
the applicable laws of such jurisdiction.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 14. | Specific
Enforcement. Executive acknowledges that a material breach                or
threatened breach by Executive of any of the provisions contained herein or
               Exhibit C may cause the Company irreparable injury. Executive therefore
agrees                that, notwithstanding anything to the contrary in Section 14 above,
the Company                Group shall be entitled, in addition to any other right or
remedy, to a                temporary, preliminary and permanent injunction, without the
necessity of                proving the inadequacy of monetary damages or the posting of
any bond or                security, enjoining or restraining Executive from any such
violation or                threatened violation or from any other material violations
which may cause                material harm to the Company Group.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 15. | Shareholders
Approval. This Agreement (including the grant of the                Options) is
subject to the approval of the shareholders of Cimatron. The Company                shall
use reasonable best efforts to convene such meeting by April 30, 2008.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 16. | Counterparts.
This Agreement may be executed in one or more                counterparts, each of which
shall be deemed an original, and all of which                together shall be deemed to
be one and the same instrument.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | 17. | Notices.
Any notice hereunder by either party shall be given by                personal delivery
or by sending such notice by certified mail, return-receipt                requested, or
faxed, with confirmation of transmission retained, as the case may                be, to
the other party at its address set forth in the preamble to this                Agreement
or at such other address designated by notice in the manner provided                in
this section. Such notice shall be deemed to have been received upon the date
               of actual delivery if personally delivered or, in the case of mailing,
seven (7)                days after deposit with the U.S. mail, or, in the case of
facsimile                transmission, when confirmed by the facsimile machine report.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | IN
WITNESS WHEREOF, the parties have caused this Agreement to be executed as of the day and
year first written above.
| | ---------------------------------------------------------------------------------------------------------------------

|NORTAMIC, LLC               |                        
|--------------------------- | -----------------------
|By:______________________   | _______________________
|Name:____________________   | William F. Gibbs       
|Title:_____________________ |                        

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# Exhibit A

# Annual Bonus

The criteria for the
annual bonus are comprised of two parts:

| | 1. | The
Company will pay to the Executive 5% of the Annual Gibbs Growth (as
                    defined below) for the relevant year of employment reported by the
Financials.
| | -- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 2. | The
Company will pay to the Executive 10% of the Annual North America
                    Cimatron Growth (as defined below) for the relevant year of
employment reported                     by the Financials.
| | -- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

The calculations shall be made within
30 days of the approval of the Companys audited annual consolidated financial
statements for the previous year (the Financials) and payment of the
bonus will be made promptly thereafter but in any event, no later than the end of the
calendar year following the year covered by the Financials (for example  the bonus
for 2008 will be determined based on the Financials of 2008 and will be paid promptly
following the approval of the 2008 Financials but in any event no later than the end of
2009).

Annual Gibbs
Growth shall mean the increase in contribution to the Companys business
from the sales of Gibbs products, maintenance and services, as compared to the
contribution in the prior year. With respect to any sales of Gibbs products, maintenance
and services made through other entities within the Company Group (other than the Company)
 only 50% of the revenues received by such entity from such sale shall be deemed
part of the revenues of the Company for the purpose of the contribution calculation. The
contribution shall be calculated in accordance with Financials and shall be based on the
revenues received from such business less expenses related thereto.

Annual North America
Cimatron Growth shall mean the increase in contribution to the Company
Groups business from the sales of Cimatron E products in North America, as compared
to such contribution in the prior year. The contribution shall be calculated in accordance
with Financials and shall be based on the revenues received from such business less
expenses related thereto (provided that payments made by CTI to Cimatron shall not be
taken into consideration as expenses).

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Exhibit D

# WAIVER AND RELEASE

| | In
consideration of the payment obligation of Nortamic, LLC, the (Company)
for the severance benefits identified in that certain Employment Agreement entered into
between the Company and Executive (the Employment Agreement) pursuant
to Section 7.2 of such Employment Agreement the undersigned (Executive)
on behalf of himself and his agents, representatives, heirs, partners, spouse,
affiliates, predecessors, successors and assigns and any person acting by, through, under
or in concert with each of them, or any of them, hereby releases and forever discharges
Company, its agents, directors, officers, attorneys, employees, affiliates, predecessors,
successors and assigns, and any person acting by, through, under or in concert with each
of them, or any of them, of and from any and all manner of action or actions, cause or
causes of action, in law or in equity, suits, debts, liens, contracts, agreements,
promises, liabilities, claims, demands, losses, damages, costs or expenses, including but
not limited to court costs and attorneys fees, of any nature whatsoever, whether or
not now known, claimed or suspected, fixed or contingent (hereinafter collectively
referred to as Claims) which Executive now has, ever had, ever claimed
to have had, or hereafter may have arising out of, based upon or related in any manner
whatsoever to the parties activities prior to the execution of this Agreement
including, without limiting the generality of the foregoing, all Claims related to any
incentive plans or otherwise arising out of or in any way connected with Executives
employment relationship with Company; provided, however, that this waiver
and release does not release or discharge Company from its obligations under any of the
other provisions of this Waiver and Release or that certain Employment Agreement between
Executive and the Company, or under the Merger Agreement and Plan of Reorganization
entered into as of December 31, 2007 by and among Gibbs System, Inc., Cimatron Ltd.,
Cimatron Technologies, Inc., the Company, and Executive. This release includes any and
all claims, direct or indirect, relating to the matters described in the foregoing
sentence which might otherwise be made under any applicable state or federal authority,
including but not limited to any claim arising under the state statutes dealing with
discrimination in employment, Title VII of the Civil Rights Act of 1964, the Equal Pay
Act of 1963, 42 U.S.C Executive Order 11246, the Rehabilitation Act, the Age
Discrimination in Vietnam Era Veterans Reemployment Adjustment Act, the Age
Discrimination in Employment Act, the Fair Labor Standards Act, state wage and hour
statutes, all as amended, any regulations under such authorities, and any applicable
contract, tort or other common law theories. Executive acknowledges that Executive has
carefully read this Agreement and fully understands the terms of this separation release
and has been advised that:
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (a) | Executive
should consult with personal legal counsel regarding the terms of this
               Agreement, and that advice is hereby reemphasized;
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | Executive
has been provided with at least twenty-one (21) days to consider this
               agreement; and
| | --- | -------------------------------------------------------------------------------------------------------------

| | (c) | Executive
has the right to rescind this agreement within seven (7) days after its execution.
| | --- | --------------------------------------------------------------------------------------------

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This
Waiver and Release shall be effective on the ___ day after its signing by Executive.

WAIVER OF CIVIL CODE § 1542

Executive acknowledges that he has
been advised by legal counsel and is familiar with the provisions of California Civil
Code § 1542, which provides as follows:

| | A
GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO
EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM MUST HAVE
MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Executive, being aware of said code
section, hereby expressly waives any rights he may have thereunder, as well as under any
other statute or common law principal with similar effect.

_____________________________Name: _____________________________________________________Date

Acknowledged and Accepted by:

[COMPANY]



By: ________________________________
Name: ______________________________
Title: _______________________________

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