Document:

<Page>

                                                                   Exhibit 10.11

[GIVEN IMAGING LOGO]

                                                              GIVEN IMAGING LTD.
                                                 BUILDING 7, NEW INDUSTRIAL PARK
                                               PO BOX 258, YOQNEAM 20692, ISRAEL
                                                             FAX: 973 4 959 0720

--------------------------------------------------------------------------------
Order No.             0142
--------------------------------------------------------------------------------
Date:                 August 12, 1998
--------------------------------------------------------------------------------
Currency:             $
--------------------------------------------------------------------------------
Supplier:             Photobit
--------------------------------------------------------------------------------
Address:              135 North Los Robles Ave.,
                      Pasadena, CA
--------------------------------------------------------------------------------
Tel:                  (626) 683-2200
--------------------------------------------------------------------------------
Fax:                  (626) 683-2220
--------------------------------------------------------------------------------

<Table>
<Caption>
-----------------------------------------------------------------------------------------------------------
Qty.            Description                                Unit Price         Delivery         Order total
-----------------------------------------------------------------------------------------------------------
<S>            <C>                                        <C>                <C>                <C>
                Deliverables as per Photobit revised                                             $353,300
                proposal of Aug. 11, 1998
-----------------------------------------------------------------------------------------------------------

-----------------------------------------------------------------------------------------------------------

-----------------------------------------------------------------------------------------------------------

-----------------------------------------------------------------------------------------------------------

-----------------------------------------------------------------------------------------------------------
Terms of Payment
-----------------------------------------------------------------------------------------------------------
</Table>

Signature:
          ------------------------

For clarifications:                               [/s/ Given Imaging Ltd.]

Sharon Shteckelman
Tel:     972 4 9599678
Fax:     972 4 9592466

<Page>

6 September, 1998

ADDENDUM TO GIVEN IMAGING LIMITED PURCHASE ORDER NUMBER 142 AND PHOTOBIT REVISED
PROPOSAL DATED AUGUST 11, 1998 (JOINTLY CONSTITUTING THE "AGREEMENT") - AS OF
SEP. 6, 1998

The following is agreed upon between Photobit Corporation ("Photobit") and GIven
Imaging Limited ("GIven"):

1.    In the event that GIven ceases operations or enters into liquidation or
      similar proceedings, whether voluntarily or if involuntarily that are not
      discharged within 90 days, Photobit (or any other entity to which Photobit
      assigned its rights under the agreement with GIven in conjunction with the
      sale of Photobit's business or the relevant segment thereof) shall be
      released from the restrictions in the Agreement on selling the sensor to
      others. The foregoing however shall not apply in any sale or transfer of
      the relevant business of GIven to third parties, provided that they
      continue to purchase the sensor from Photobit in accordance with the terms
      of the Agreement.

2.    In the event that Photobit ceases operations or enters into liquidation or
      similar proceedings, whether voluntarily or involuntarily, GIven (or any
      other entity to which GIven assigned its rights under the agreement with
      Photobit in conjunction with the sale of GIven's business or the relevant
      segment thereof) shall be entitled, upon agreement between the parties on
      payment of a commercially reasonable royalty to Photobit, to receive from
      Photobit all information necessary for manufacturing the sensor, in
      comprehensible documented form, and to manufacture the sensor or have it
      manufactured for GI tract imaging as provided in the agreement. The
      foregoing however shall not apply in any sale or transfer of the relevant
      business of Photobit to third parties, provided that they continue to
      supply the sensor to GIven in accordance with the terms of the Agreement.

3.    At GIven's request and expense, Photobit shall prepare and deposit in
      trust with an escrow agent files containing all information necessary for
      manufacturing the sensor, in comprehensible documented form, engineering
      drawings, a list of components and suppliers ("the Production Files"). The
      escrow agent shall be designated by GIven, subject to Photobit's consent
      which shall not be unreasonably withheld, and all fees of the escrow agent
      shall be borne by GIven alone. If the events described in paragraph (2)
      occur, then GIven shall be entitled, with no additional compensation to
      Photobit, to receive the Production Files from the escrow agent and to
      manufacture the sensor for GI tract imaging as provided in the Agreement.

/s/ [Illegible]                                    /s/ Gavriel Meron
---------------------------                        ---------------------------
   Photobit Corporation                                GIven Imaging Limited

<Page>

                              PHOTOBIT Confidential

                            [LETTERHEAD OF PHOTOBIT]

                                                                 August 11, 1998

Mr. Gavriel Meron
President and CEO
Given Imaging Limited
Bldg 7, New Industrial Park
PO Box 258, Yoqneam 20692
ISRAEL
Fax:  972-4-959-2466

Dear Gabi,

Here is the revised proposal.

PROPOSED BUSINESS ARRANGEMENTS:

Photobit proposes to develop a custom CMOS image sensor for Given. Given will
pay Photobit for NRE expenses, presently estimated at US$* and will receive the
proposed deliverables, including prototype sensors.

Photobit will then develop the captive product version of the sensor for an
additional NRE fee, to be determined, based on standard Photobit engineering
rates and the modifications required by Given, on a mutually agreed upon time
table. Achieving an end-of-year 1999 delivery date is expected. This sensor
would only be sold to Given based on a mutually agreed upon price vs. quantity
structure. THIS SPECIFIC SENSOR WOULD NOT BE OFFERED AS A STANDARD PHOTOBIT
CATALOG PART.

Photobit will continue to provide support to Given on an as-needed basis
throughout the product life cycle, based on the standard Photobit engineering
rates and invoiced monthly. Such support may include assistance in transitioning
the prototype sensor from the laboratory to product, reliability, quality
assurance, environmental test issues, and failure analysis, as requested by
Given and subject to Photobit resource availability. Some of these costs may be
lumped together in the productization phase of the effort, according to Given's
preferences.

It would be Photobit's hope that a long term relationship with Given would be
developed where Photobit would continue to develop application-specific custom
CMOS imaging solutions for future Given products (provided there are no
conflicts with other established customers).

-------------------
*     Omitted pursuant to a confidential treatment request. The confidential
      information has been filed separately with the SEC.

<Page>

                           PHOTOBIT Confidential

PROPOSED SPECIFICATIONS: (Given's desired specifications are attached)
<Table>
<Caption>
---------------------------------------------------------------------------------------------
PARAMETER                                                    TARGET VALUE
---------------------------------------------------------------------------------------------
<S>                                                         <C>
Number of pixels (approximate)                               *
---------------------------------------------------------------------------------------------
Maximum packaged die diagonal                                * mm
---------------------------------------------------------------------------------------------
Pixel pitch                                                  * um - *
---------------------------------------------------------------------------------------------
Readout                                                      *
---------------------------------------------------------------------------------------------
ADC                                                          On-chip * bits
---------------------------------------------------------------------------------------------
Operating voltage                                            * V min
---------------------------------------------------------------------------------------------
Power (target)                                               * mW at * frames/sec peak power
                                                             * mW avg. power (*  mJ/frame)
---------------------------------------------------------------------------------------------
Color filter array                                           *
---------------------------------------------------------------------------------------------
Saturation                                                   * lux at * sec integration time
---------------------------------------------------------------------------------------------
Sensitivity                                                  * V/lux-sec (* mV at * sec)
---------------------------------------------------------------------------------------------
"Sensitivity" per Given spec                                 SNR>= * dB @ * lux faceplate illum.
---------------------------------------------------------------------------------------------
Integration duration                                         *
---------------------------------------------------------------------------------------------
Analog gain                                                  *
---------------------------------------------------------------------------------------------
Analog offset                                                *
---------------------------------------------------------------------------------------------
FPN, average dark current                                    * % peak output video (* mV)
---------------------------------------------------------------------------------------------
Frame rate                                                   * frames/sec
---------------------------------------------------------------------------------------------
On-chip clock generator *                                    Approx. * and * MHz *
---------------------------------------------------------------------------------------------
</Table>

<Table>
<S>                           <C>                   <C>
[chart]                        Package diameter =    The prototype sensor will have analog output in addition to the
                               * mm                  digital output.  We will target * dB SNR for * lux faceplate
                                                     illuminance.

                               Die size < * mm       Photobit cannot guarantee the blemish density on the prototype
                                                     parts, though the density requested by Given is consistent
                                                     with typical results observed in the * process.

                               Imaging core          * and * will be small, possibly immeasurable, but non-zero.
                               (centered) *mm

SCHEMATIC ILLUSTRATION OF                            * TBD. Full well will be between * and * electrons.
DIMENSIONAL CONSTRAINTS
</Table>

----------------------
*     Omitted pursuant to a confidential treatment request. The confidential
      information has been filed separately with the SEC.

                                      -2-

<Page>

                             PHOTOBIT Confidential

I think we will meet most if not all of your requirements. However, the
packaging issue is still up in the air, and it will take more effort to find a
package and get the exact dimensions of the cavity. Once we have those
dimensions, we can work backwards to calculate the number of pixels if they
cannot all be accommodated. This will be done in communication with Given.

We propose using our standard serial interface protocol for the prototype
sensor. This is a * that will allow setup and readout of internal registers in
the logic section of the chip. The logic can be changed on the product version
of the chip to default to settings that you choose once you have evaluated the
prototype. You will also likely make other changes as well, so that a complete
new mask set will be required for production. Since the scope of those changes
is unknown, it will be hard to estimate the production version NRE.

*

COST ESTIMATE:

I estimate the cost of the effort to be US$ * with a breakdown of the project
costs as follows: (DOES NOT INCLUDE PACKAGING, see below. Photobit's cost of
goods is passed thru without markup. Assumes use of * foundry.)

<Table>
<Caption>
----------------------------------------------------------------------------------------------------------------------
TASK                                              EFFORT (WORKMONTHS)                       COST OF GOODS
----------------------------------------------------------------------------------------------------------------------
<S>                                                     <C>                                  <C>
Deliver EPPI camera                                                                           No charge
----------------------------------------------------------------------------------------------------------------------
Architectural design                                       *
----------------------------------------------------------------------------------------------------------------------
VLSI design, simulation,
verification                                               *
----------------------------------------------------------------------------------------------------------------------
Fabrication (masks, wafers,
CFA)                                                       *                                      *
----------------------------------------------------------------------------------------------------------------------
Characterization                                           *
----------------------------------------------------------------------------------------------------------------------
Lab end-to-end demonstration system                        *                                      *
(optics, chip, electronics, frame
grabber, computer)
----------------------------------------------------------------------------------------------------------------------
TOTAL                                                      *                                      *
----------------------------------------------------------------------------------------------------------------------
</Table>

MILESTONE SCHEDULE:

The proposed milestone schedule for the project is:

----------------------
*     Omitted pursuant to a confidential treatment request. The confidential
      information has been filed separately with the SEC.

                                      -3-

<Page>

                             PHOTOBIT Confidential

<Table>
<Caption>
----------------------------------------------------------------------------------------------------------------------
EVENT                                                                           DATE (APPROXIMATE)
----------------------------------------------------------------------------------------------------------------------
<S>                                                                               <C>
Project Kickoff (receipt of PO)                                                         *
----------------------------------------------------------------------------------------------------------------------
Architectural design review (firm specs)                                                *
----------------------------------------------------------------------------------------------------------------------
Preliminary design review                                                               *
----------------------------------------------------------------------------------------------------------------------
Critical design review                                                                  *
----------------------------------------------------------------------------------------------------------------------
Tape out                                                                                *
----------------------------------------------------------------------------------------------------------------------
Wafers received                                                                    Feb 26, 1999
----------------------------------------------------------------------------------------------------------------------
Packaged parts received                                                            Mar 12, 1999
----------------------------------------------------------------------------------------------------------------------
Preliminary characterization                                                       Apr 2, 1999
----------------------------------------------------------------------------------------------------------------------
Complete characterization                                                          May 3, 1999
----------------------------------------------------------------------------------------------------------------------
Delivery of demonstration system/sensors and report                                May 28, 1999
----------------------------------------------------------------------------------------------------------------------
</Table>

Correction of a Photobit design error including refabrication will be completed
at Photobit's expense but will result in a concomitant slip in schedule.

PAYMENT SCHEDULE:

<Table>
<Caption>
           MILESTONE                                                                  AMOUNT DUE
                                                                                     (NET 15 DAYS)
          <S>                                                                            <C>
           Start of project                                                               $ *
           Architectural design review/pkg selection                                      $ *
           Preliminary design review                                                      $ *
           Critical design review and acceptance test procedure definition                $ *
           Tape out                                                                       $ *
           Delivery of deliverables                                                       $ *
           TOTAL without packaging costs                                                  $ *
</Table>

Costs incurred for packaging will be proposed to Given separately at a later
date, and will be invoiced on the above schedule as incremental charges with the
exception of the first kick-off payment that will remain as stated above.

DELIVERABLES:

The following items will be delivered in performance of the proposed work on or
before May 31, 1999, assuming project kickoff no later than Aug 12, 1998.
Unanticipated problems may result in some schedule delay.

----------------------
*     Omitted pursuant to a confidential treatment request. The confidential
      information has been filed separately with the SEC.

                                      -4-

<Page>

                             PHOTOBIT Confidential

1.   One (1) EPPI camera based on PB159 product.
2.   Twenty (20) packaged prototype sensors.
3.   Demonstration system that includes PC board for holding sensor, small `C'
     lens/mount (FOV not necessarily matched to sensor diagonal), PC system with
     frame grabber, software (not source code), to enable the viewing of images
     captured by the sensor and GUI for setting up sensor parameters.
4.   Detailed characterization report covering main characteristics of interest
     such as dark current, blemishes, noise, ADC performance, etc. for a
     typical part of the delivered sensor set.

INTELLECTUAL PROPERTY:

Any new intellectual property (IP) developed in the course of this project will
be the property of Photobit with no license, implied or actual, granted to Given
Imaging Limited. However, no new intellectual property is expected to be
generated. All mask works, detailed schematics, layout artwork, etc. will remain
the property of Photobit and will not be delivered to Given. Subsequent use of
the masks by Given will be negotiated under a separate agreement.

ADDITIONAL CONSIDERATIONS:

Should Given change specifications after the architectural design review, Given
will be responsible for any additional engineering time required, billed at
standard Photobit engineering rates.

We do not know the cost of the packaging at this time. Packaging of the parts
will likely ADD US$ * to the cost of this proposal. Details of packaging will be
determined during the architectural definition portion of the project. The cost
may be less if an existing sensor package can be utilized.

Conversion of the prototype sensor to a product sensor is estimated to cost
US$BB * for labor ( * ) and new masks assuming no substantive changes are
required other than to change the default settings for the sensor, and
rearrange pads for the lowest cost package. Additional costs can be occurred
for additional changes and depending on the scope of characterization
required. It is expected that 1,000 production units of the sensor can be
delivered to Given by approximately January 1, 2000. The cost of the
production sensors, payment schedule, etc., will be negotiated at a later
time.

Based on Photobit's present understanding of Given's sensor and packaging
requirements, we presently estimate that the cost per delivered sensor (chip,
package, test, no optics, crystal oscillator) will not exceed the following,
based on order size:

----------------------
*     Omitted pursuant to a confidential treatment request. The confidential
      information has been filed separately with the SEC.

                                      -5-

<Page>

                             PHOTOBIT Confidential

1000 units                                        $ * each
10,000 units                                      $ * each
100,000 units                                     $ * each
1,000,000 units                         Less than $ * each

It is Photobit's understanding that Given will not be in a position to place
such an order until at least the year 2001. In this case, the above prices would
be expected to be reduced in accordance with typical solid-state image sensor
trends. Furthermore, Photobit will make every commercially reasonable attempt to
provide Given with "most favorable pricing" based on other Photobit products
with the same or similar chip, package and test requirements.

Please contact me if you have any questions. Photobit would be pleased to work
with Given to develop the sensor described above, and believes that we would
deliver a superior product consistent with the high expectations of medical
practitioners.

Sincerely yours,

/s/ Eric Fossum

Eric R. Fossum, Ph.D.
Chief Scientist

----------------------
*     Omitted pursuant to a confidential treatment request. The confidential
      information has been filed separately with the SEC.

                                      -6-<Page>

                                                                   Exhibit 10.12

                    TECHNOLOGY PURCHASE AND LICENSE AGREEMENT

              Made and entered into on the __ day of January, 1998

                                 By and Between:

                      RAFAEL ARMAMENT DEVELOPMENT AUTHORITY
                       of the Israeli Ministry of Defense
                         of POB 2250 Haifa 31021 Israel
                          (hereinafter called "RAFAEL")

                                      and:

                               GIVEN IMAGING LTD.
      a private company incorporated under the laws of the State of Israel
                                 PC #51-257802-2
                       (hereinafter called, the "COMPANY")

      WHEREAS, Rafael has developed and owns the Project and the Technology, as
defined and specified below; and

      WHEREAS, The Company desires to purchase from Rafael, and Rafael desires
to sell to the Company, the Project and the Project's Technology, and to grant
the Company an exclusive license to use the Other Technology within the
Company's Field of License, all as defined and specified below and subject to
the terms and conditions set forth herein;

      NOW, THEREFORE, the parties hereto hereby agree as follows:

      1. DEFINITIONS.

      In this Technology Purchase and License Agreement the following words and
expressions shall bear the meanings set opposite them:

      the "Agreement"       this Technology Purchase and License Agreement, the
                            preamble and all exhibits and schedules thereto;

      "Improvements"        all improvements, enhancements or modifications to
                            the Project's Technology made by either party
                            during the term of this Agreement;

      "Global Patent        the Global Patent Assignment in the form attached to
       Assignment"          this Agreement as EXHIBIT A;

      the "Patents"         the patents and patent applications, as identified
                            in EXHIBIT B hereto;

      the "Project"         An in vivo video camera and an autonomous video
                            endoscope, including a swallowable capsule with a
                            camera and an optical system, a transmitter and a
                            reception system;

<Page>

      the "Technology"      the existing unclassified documented know-how and
                            intellectual property developed by Rafael, and
                            specifically used at Rafael for the Project,
                            including the Patents and other patents and patent
                            applications, if any, the prototypes, drawings,
                            designs, diagrams, computer programs and their
                            sources, design assurance data and other tangible
                            technical information used at Rafael for the
                            Project;

       the "Project's       the Patents, the prototypes, and such other part of
       Technology"          Technology which was developed by Rafael
                            specifically for the Project;

       the "Other           any Technology other than the Project's Technology,
       Technology"          and which shall, when delivered in tangible form to
                            the Company, be marked as "Other Technology";

       the "Company's       the license granted by Rafael to the Company under
       License"            SECTION 3.2 hereof;

       the "Company's       the commercial exploitation of the Project and
       Field of License"    products to be developed or derived therefrom;

       the "Rafael          the license granted by the Company to Rafael under
       License"             SECTION 7.1 hereof;

       the "Rafael's Field  any military and/or security application of the
       of License"          Project's Technology.

      2.    RAFAEL'S REPRESENTATIONS.

      The Technology has been developed and is owned solely by Rafael, and
Rafael's rights therein are free and clear of any lien, charge, claim,
preemptive right or any other encumbrance or third party rights. Neither the
execution and delivery of this Agreement nor, to Rafael's best knowledge and
without having conducted any special investigation, the use by the Company of
the Technology, shall violate or infringe the rights of any other person, firm
or entity, nor has any person, firm or entity made or threatened Rafael with any
claim that will interfere with the Company's use of the Project or the Project's
Technology in accordance with the terms of this Agreement, and nor will the
execution, delivery or performance by Rafael of this Agreement constitute a
breach of any law, agreement or instrument to which Rafael is a party or by
which it is bound.

<Page>

      3.    SALE AND LICENSE OF TECHNOLOGY.

      3.1 Rafael hereby sells to the Company, and the Company hereby purchases
from Rafael, all of Rafael's right, title and interest in and to the Project and
the Project's Technology, free and clear of any lien, charge, claim, license,
preemptive right or any other encumbrance or third party right, except for the
Rafael License, as provided for under SECTION 7 below and the restrictions on
the Company's use thereof as provided for under SECTION 3.3 below. In order to
give full effect to this transaction, Rafael shall deliver to the Company,
together with this Agreement, the GLOBAL PATENT ASSIGNMENT, duly signed by
Rafael.

            Rafael agrees to execute upon the request of the Company such
additional instruments, applications, declarations and forms, as may be
necessary under any relevant law or as may be required by any official or
authority, to continue, secure, defend, register and otherwise give full effect
to, and perfect the rights of the Company under the Global Patent Assignment in
the Patents, including to register the assignment of each Patent in the name of
the Company.

            3.2 (a) Rafael hereby grants to the Company, and the Company hereby
      accepts, a world-wide, exclusive, royalty-free, and perpetual license to
      use the Other Technology, solely for the purpose of the commercial
      exploitation of the Project (the "COMPANY'S LICENSE"). The Company's
      License shall be transferable only in accordance with the provisions of
      Section 6 below.

                (b) Except for Rafael's limited right to rescind the Company's
      License as specifically provided in Section 3.3 below, the Company's
      License shall be irrevocable and the only remedies for any breach of its
      terms shall be damages and/or injunctive reliefs.

                (c) The Company's License granted hereby shall be effective
      upon the execution and delivery of this Agreement, without necessity for
      any further action or writing, subject however to the payment by the
      Company of the consideration as provided in SECTION 5 below. Upon the
      Company's written request, Rafael shall forthwith confirm in writing the
      Company's License and, at the Company's expense, shall execute any forms
      or instruments necessary for the filing, registering, perfecting,
      defending and recording of the Company's License at any appropriate
      governmental offices or other competent authorities, in Israel or abroad.

                (d) Subject to the Company's License granted hereby, Rafael
      shall retain all rights in the Other Technology as the sole owner thereof.

      3.3 The use of the Other Technology by the Company contrary to the
provisions of this SECTION 3.2(a) shall constitute a material breach of this
Agreement, and unless the Company shall cease making such use within thirty (30)
days from receiving Rafael's first written notice of same, Rafael shall be
entitled to rescind the Company's License by giving the Company a written notice
to that effect.

      4. TANGIBLES, TECHNICAL SUPPORT AND PERSONNEL.

            4.1 As soon as practicable following the signing hereof, Rafael
shall deliver to the Company all the tangible Project's Technology.

<Page>

      4.2 For the exploitation of the Project by the Company, from time to time
as shall be coordinated between the Company and Rafael, at the Company's request
and subject to Rafael's security restrictions and available manpower and
facilities, Rafael shall provide the Company with: (i) technical support, such
as Rafael's available work space, manpower (for which the Company shall pay
according to Rafael's "Cost" rate plus 10%), laboratories, apparatus and other
equipment required, provided, however, that the Company shall be liable for any
loss or damage to Rafael or to any third party caused by any of the Company's
personnel (unless the person who caused such loss or damage was acting in
accordance with Rafael's written instructions), and that the Company shall
maintain during such period adequate insurances covering such liabilities; (ii)
reasonable assistance in technical guidance and instructions regarding the
Technology, as shall be required for the Company's technical staff to gain
acquaintance thereof for the purpose of the Project; and (iii) free access to
Rafael's existing documentation as required for completing and documenting the
Project by the Company's technical staff, consultants and other experts employed
thereby.

      4.3 The Company may request Rafael from time to time that employees of
Rafael will provide consulting or other services similar in nature to the
Company in connection with the Project, and Rafael shall give due consideration
to such requests on a case by case basis, subject to the availability of such
employee, the provisions of the State Service Regulations (?????"?) and
customary terms of Rafael for such purpose.

      5. CONSIDERATION.

         In consideration for the Project, the Project's Technology and the
Company's License, the Company shall pay Rafael the amount of US$30,000 (thirty
thousand US Dollars). Payment shall be in NIS, calculated according to the
representative rate of exchange as published by the Bank of Israel immediately
prior to when payment is effected, plus V.A.T. at the applicable rate, against
delivery by Rafael of a "tax invoice" in the Company's name.

      6. TRANSFERABILITY OF OTHER TECHNOLOGY.

         Any transfer license or sub-license by the Company (a "TRANSFER") of
any currently existing Other Technology which is not in the public domain, or
any of the Company's rights under Sections 4, 8, 10 and/or 11 of this Agreement,
to any third party shall be limited at all times for use only within the
Company's Field of License, and further, shall be conditioned upon the prior
written consent of Rafael, which consent shall not be unreasonably withheld,
except for a Transfer to an affiliate which shall not require such consent. The
term "affiliate" shall mean, an entity which shall first agree to abide by the
terms hereof, and in which either the Company or RDC - Rafael Development
Corporation Ltd. shall hold at the time of such Transfer, directly, the majority
of voting rights assuring the effective control therein in a permanent fashion,
and such control shall be maintained at all times unless Rafael has otherwise
consented in writing and in advance, which consent shall not be unreasonably
withheld. Notwithstanding the foregoing, Rafael's rights under the Rafael
License shall in no way be impaired by virtue of any Transfer.

                  Any of the Project's Technology shall be freely transferable
by the Company, subject only to the Rafael's License, and a prior written notice
by the Company to Rafael of any intended Transfer thereof.

<Page>

      7. THE RAFAEL LICENSE.

      7.1 The Company hereby grants Rafael, and Rafael hereby accepts, a
world-wide, exclusive, royalty-free, freely transferable and perpetual license
to use the Project and the Project's Technology, to design, develop,
manufacture, market, sell, lease, service or otherwise exploit the Project and
the Project's Technology, but only within the Rafael's Field of License (the
"RAFAEL LICENSE").

      7.2 The Rafael License shall be irrevocable and the only remedies for any
breach of its terms shall be damages and/or injunctive reliefs.

      7.3 The Rafael License granted hereby shall be effective upon the
execution and delivery of this Agreement, without necessity for any further
action or writing. Upon the Rafael's written demand, the Company shall forthwith
confirm in writing the Rafael's License and, at Rafael's expense, shall execute
any documents necessary for the filing, registering, perfecting, defending and
recording the Rafael's License at any appropriate governmental offices or other
competent authorities, in Israel or abroad.

      8. NEW PATENTS ON THE PROJECTS TECHNOLOGY.

      8.1 Rafael shall have the exclusive right to prepare and file patent
applications for inventions developed by Rafael based on the Project's
Technology within the Rafael's Field of License in such jurisdictions and in
such manner as it shall determine, and shall prosecute such applications as it
deems appropriate, and the Company shall provide Rafael, at Rafael's expense,
with any reasonable assistance therefor as Rafael may request. All such
applications shall be filed and prosecuted in the name of Rafael and at its
expense. Rafael hereby grants to the Company an irrevocable, worldwide,
royalty-free, exclusive, freely transferable and perpetual license to use the
inventions protected by the said patents for any use outside the Rafael's Field
of License.

      9. INFRINGEMENTS.

         In the event of any infringement by a third party of any of the Patent
rights in the Rafael's Field of License, Rafael may take all legitimate steps to
halt such infringement, and otherwise the Company may take such steps. Rafael
may request the Company to lend its name to such proceedings and provide
reasonable assistance and the Company will do so subject to Rafael covering the
expenses it may incur.

      10. IMPROVEMENTS.

      10.1 Where a party to this Agreement has made an Improvement, the other
party shall be entitled to be notified in confidence of the general nature of
such Improvement, except insofar as such disclosure would disclose information
deriving from and subject to confidentiality obligations in favor of a third
party and, in case of Rafael, subject to all requisite defence consents. For the
foregoing purpose, either party may from time to time, by notice to the other,
convene a joint meeting of the parties' senior technical personnel, at which
meeting any Improvements made by each party shall be disclosed to the other
party, as provided above. If the other party is interested in obtaining rights
in such Improvement, the parties shall negotiate royalties or other
consideration therefor. Upon agreement, the party which made the Improvement
shall grant to the other exclusive rights (in the case of Rafael subject to all
requisite defence consents) to use and exploit such Improvement. Such rights

<Page>

where granted to the Company shall be restricted to non-military applications
and where granted to Rafael shall be restricted to military applications.

      10.2 Where one party hereto has developed an Improvement, and the other
party has notified that it is interested in obtaining patent protection for such
Improvement, then the first party shall not publish the same or do anything that
might prejudice the validity of any patent that might subsequently be granted on
it for such time as may be reasonably required to prepare and file an
application for patent or other protection. Such patent shall be in the name of
the party requesting the patent who shall also bear all costs and expenses
connected therewith.

      11. RAFAEL'S SERVICES.

      11.1 The Company may from time to time request to engage Rafael as a
sub-contractor for providing research, development or prototype manufacturing
services to the Company in connection with the Project (the "SERVICES"), and
Rafael shall endeavor to meet such request, subject to its priorities and its
available manpower, facilities and other resources. The Services shall be
provided under terms as are customary in such engagements of Rafael and which
the Company and Rafael shall agree, and Rafael shall be entitled to charge the
Company for Services rendered the going commercial rates.

      11.2 Notwithstanding the foregoing, where the Company decides to employ a
sub-contractor for Services, and the Company has a choice between Rafael and
another one or more sub-contractors, the Company shall nevertheless be obliged
to employ such Services of Rafael, if Rafael's Services are competitive in
respect of quality, quantity, time and price with those offered by such other
sub-contractors.

      12. CONFIDENTIALITY.

      12.1 Subject to the exclusions set forth in SECTION 12.2 below, (a) the
Company hereby agrees to keep the Other Technology confidential, (b) Rafael
hereby agrees to keep the Project's Technology confidential, and (c) both
parties agree to keep confidential any Improvement which may be disclosed
thereto by the other party pursuant to Section 10 above. For the foregoing
purpose, the parties hereby agree to keep the Project's Technology confidential
and to take all reasonably necessary steps to ensure that its affiliates,
officers and employees keep such information confidential, except for customary
disclosures in the ordinary business practice of either party in connection to
its respective permitted use of the Project's Technology or the Other
Technology, as applicable, as provided under this Agreement, including
information customarily disclosed in brochures, manuals of operation and other
similar documents.

      12.2  The provisions of SECTION 12.1 shall not apply to any information
            which: (i) is public knowledge at the date of the Agreement or
            thereafter becomes public knowledge through no fault of the
            receiving party, (ii) is lawfully received by the receiving party
            from a third party who either has the right to disclose it, or is
            under no obligation of confidentiality to the disclosing party, or
            (iii) is disclosed as required under any applicable law. The burden
            of proof that any disclosure falls within any of the aforesaid
            exclusions shall be on the disclosing party. Where a doubt exists,
            as to whether any of the aforesaid exclusions apply, the party
            seeking to disclose shall give the other party a written notice and,
            if a dispute arises, then such party shall keep such information
            confidential until the dispute

<Page>

            is settled or resolved in an appropriate court of law, subject to
            any temporary relief which the party seeking the disclosure shall be
            entitled to apply for to such court.

      13. RAFAEL'S LIABILITY; INDEMNIFICATION.

          13.1 Rafael shall promptly indemnify the Company against any losses,
damages, costs and expenses incurred by Company as a direct result of any
representation of Rafael contained in SECTION 2 above proven by the Company as
materially untrue or incorrect, provided, however, that all indemnifications,
compensations or other payments which Rafael may become liable for hereunder
shall in no event exceed the total consideration amount specified in SECTION 5
above.

          13.2 The Company shall not be entitled to the above indemnity,
unless, if any claim, suit, action or other proceeding to which the indemnity
set forth above applies is brought against the Company, it shall give Rafael
prompt notice of same, and Rafael and the Company shall coordinate and cooperate
in the defense of such claim, suit, action or other proceeding. If the Company
seeks such indemnity from Rafael, then neither the Company nor Rafael shall
adjust, settle or compromise any claim, suit, action or other proceeding brought
against it to which the indemnity set forth herein applies without the prior
written consent of the other party which consent shall not be unreasonably
withheld; provided, however, that Rafael shall be entitled to adjust, settle or
compromise any such claim, suit, action or other proceeding without the prior
written consent of the Company if such adjustment, settlement or compromise is
monetary only and in an amount which is fully covered by the indemnification
under SECTION 13.1 above.

      14. NOTICES.

          Any notice or other communication required or authorized under this
Agreement to be given by any party to the other party may be personally
delivered, mailed, transmitted by telex, facsimile, or other electronic mean,
however such notice shall operate and be deemed to have been served upon its
actual receipt by the other party or upon the third working day in the postal
service from its dispatch by registered mail, postage prepaid and return receipt
requested, addressed to the other party's address as stated below:

          If to Rafael:

                     Rafael Armament Development Authority
                     POB 2250
                     Haifa 31020, ISRAEL
                     Attention:   President, and
                                  General Counsel

          If to  the Company:

                     GIven Imaging Ltd.
                     c/o RDC Rafael Development Corporation Ltd.
                     14 Beith Hashoeva Lane
                     Tel-Aviv 65814
                     Attention:   President and C.E.O.

<Page>

      15. MISCELLANEOUS.

          15.1 In the event that Rafael becomes a corporate or other legal
entity, then Rafael shall be entitled to assign all or part of it rights and
obligations hereunder to such corporation or entity, which shall become party to
this Agreement with respect to the rights and obligations assigned thereto. If
any Other Technology is transferred to such corporation or entity, such transfer
shall be subject to the Company's License granted to the Company hereunder and
the Company's rights related thereto. Except as provided in this SECTION 15.1
and in SECTION 6 above, neither this Agreement as a whole nor any right or
obligation hereunder, shall be assignable by any party without the prior written
consent of the other party.

          15.2 This Agreement may be executed in two or more counterparts each
of which shall be deemed an original but all of which constitute one and the
same instrument.

          15.3 Save as expressly provided herein, this Agreement may be amended
or terminated, and any of the terms hereof waived, only by a document in writing
specifically referring to this Agreement and executed by the parties hereto or,
in the case of a waiver, by the party waiving compliance. The failure of either
party hereto at any time or times to require performance of any provisions
hereof shall in no manner affect this right at a later time. No waiver by either
party hereto of a breach of any term contained in this Agreement, in any one or
more instances, shall be deemed or construed as a further or continuing waiver
of any such breach or a waiver of any breach of any other form.

         15.4 If any provision of this Agreement is held to be invalid or
unenforceable, such invalidity or unenforceability shall not invalidate this
Agreement as a whole, but this Agreement shall be construed as though it did not
contain the particular provision held to be invalid or unenforceable and all
other rights and obligations of the parties shall survive to the maximum extent
permitted by law.

         15.5 This Agreement and the rights and obligations of the parties
hereunder or pursuant hereto shall be governed by and construed in accordance
with the laws of the State of Israel. The parties hereby submit to the exclusive
jurisdiction of the competent courts situated in Tel-Aviv in all matters
relating to this Agreement.

         15.6 Words herein denoting the singular number only shall include the
plural and vice versa.

         15.7 The headings and section in this Agreement are inserted for
convenience only and shall not affect the construction thereof.

<Page>

      IN WITNESS WHEREOF, the parties hereto have executed this Technology
Transfer and License Agreement on the day first written above.

           RAFAEL ARMAMENT
                  DEVELOPMENT AUTHORITY

           By: /s/ M. Zemel        By: /s/ E. Yodikid    By: /s/ [Illegible]
              ----------------        ---------------       ----------------

           Title: Comptroller      Title:   G.M.         Title: President
                  ------------           ------------          -----------

           GIVEN IMAGING LTD.

           /s/ Gavriel Meron

           By:    Gavriel Meron

           Title: President and Chief Executive Officer

<Page>

                                    EXHIBIT A

                            GLOBAL PATENT ASSIGNMENT

             Whereas, GIven Imaging Ltd. ("GIL"), an Israeli corporation, has
entered into a Technology Purchase and License Agreement, dated January 29,
1998 (the "AGREEMENT") with Rafael Armament Development Authority, a
subdivision of the Israeli Ministry of Defense ("RAFAEL"), wherein Rafael has
agreed, inter alia, to sell, transfer and convey to GIL certain patents and
patent applications (as provided in the Agreement); and

             Whereas, Rafael (hereinafter, the "ASSIGNOR") is the sole and
exclusive owner of all right, title and interest in and to the patents that have
been registered with the Israeli Patents and Trademarks Registrar, and/or the
United States Patent and Trademark Office and/or patent registration offices of
other countries, all as identified in SCHEDULE I, which is attached hereto and
incorporated herein by way of reference; and

             Whereas, Assignor is the sole and exclusive owner of all right,
title and interest in and to the patent applications that have been filed with
the Israeli Patents and Trademarks Registrar, and/or the United States Patent
and Trademark Office and/or patent registration offices of other countries, all
as identified in SCHEDULE I; and

             Whereas, GIL (hereinafter, the "ASSIGNEE") is desirous of acquiring
all right, title and interest in and to each of the patents and patent
applications identified in SCHEDULE I, subject to the rights of Assignor under
the Agreement;

             NOW, THEREFOR, for good and valuable consideration, the receipt and
sufficiency thereof is hereby acknowledged, Assignors and Assignee agree as
follows:

             1. Assignor hereby sells, assigns and transfers to Assignee, and
Assignee acquires and accepts, all right, title and interest in and to the
patents and patent applications identified in SCHEDULE I, subject to the rights
of Assignor under the Agreement.

             2. Assignor hereby authorizes and requests the Patents and
Trademarks Registrar in Israel, the Commissioner of Patents and Trademarks of
the United States, and each official holding a corresponding position of
authority in any country or jurisdiction within which Assignor owns one or more
patents or have pending one or more patent applications, to issue and to record
the title of Assignee as owner of all right, title and interest in and to the
patents and patent applications identified in SCHEDULE I.

             IN WITNESS WHEREOF, Assignor has signed below, by its duly
authorized representatives, on this ______ day of _________, 199__.

RAFAEL ARMAMENT DEVELOPMENT AUTHORITY

By: /s/ M. Zemel        By:                   By: /s/ [Illegible]
   ----------------        ---------------       ----------------

Title: Comptroller      Title:                Title: President
       ------------           ------------          -----------

<Page>

                                 ACKNOWLEDGMENT

             On behalf of ASSIGNEE, Given Imaging Ltd., I hereby acknowledge
receipt of assignment - for good and valuable consideration - of the patents and
patent applications identified in SCHEDULE I.

GIVEN IMAGING LTD.

/s/ G. Meron

By:          Gavriel Meron

Title:       President and Chief Executive Officer

<Page>

                                    EXHIBIT B

                                  THE "PATENTS"

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