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                                                                    Exhibit 10.9

- EXECUTION COPY -

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                       PREFERRED SHARE PURCHASE AGREEMENT

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                               GIVEN IMAGING LTD.

          Up to US$25,050,000 of Series A Convertible Preferred Shares

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                         Dated as of September 15, 2000

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                                    EXHIBITS

EXHIBIT A      Purchasers

EXHIBIT A-1    Company's Account

EXHIBIT B      Amended and Restated Articles of Association

EXHIBIT C      Form of Opinion of Company Counsel

EXHIBIT D      Form of Investor Rights Agreement

EXHIBIT E      Form of Extension to Employment Agreement of Dr. Gavriel D. Meron

EXHIBIT F      Form of Irrevocable Proxy

EXHIBIT G      Form of Undertaking Under the R&D Law

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                                    SCHEDULES

SCHEDULE 2.6                Burdensome and Conflicting Agreements

SCHEDULE 2.7                Material Agreements

SCHEDULE 2.12               Title to Assets

SCHEDULE 2.13               Intellectual Property Rights

SCHEDULE 2.15               Capitalization

SCHEDULE 2.16               Listed Liabilities

SCHEDULE 2.20               Brokers

SCHEDULE 2.21               Transactions with Affiliates

SCHEDULE 2.22               Employees

SCHEDULE 3.3                Non US Person

SCHEDULE 3.9                Israeli Securities Law

SCHEDULE 4.2(iii)           Names of Proxies

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- EXECUTION COPY -

                       PREFERRED SHARE PURCHASE AGREEMENT

                  THIS PREFERRED SHARES PURCHASE AGREEMENT (this "Agreement") is
made as of September ___, 2000 by and among Given Imaging Ltd., a corporation
organized under the laws of Israel (the "Company"), the Lead Purchasers and the
Persons listed on EXHIBIT A hereto who may become party to this Agreement by
executing and delivering a counterpart signature page hereof no later than
October 8, 2000 (individually, a "Purchaser" and collectively, the
"Purchasers").

                  WHEREAS, the Company desires to issue and sell to the
Purchasers and the Purchasers desire to acquire on the terms and subject to the
conditions set forth in this Agreement up to an aggregate amount of up to
11,911,557 shares of the Company's Series A Convertible Preferred Shares, par
value New Israeli Shekel ("NIS") 0.01 per share (the "Series A Preferred
Shares").

                  NOW, THEREFORE, in consideration of the premises and the
mutual covenants contained in this Agreement, the parties hereto agree as
follows:

                                   ARTICLE 1.

                 PURCHASE AND SALE OF SERIES A PREFERRED SHARES

         1.1. AUTHORIZATION OF SERIES A PREFERRED SHARES. The Company has, or
before the Closing (as hereinafter defined) will have, authorized the issuance
and sale of up to 11,911,557 (Eleven Million Nine Hundred and Eleven Thousand
Five Hundred and Fifty-Seven) shares (the "Shares") of its Series A Preferred
Shares, par value NIS 0.01 per share, having the rights, restrictions,
privileges and preferences as set forth in the Memorandum and the Amended and
Restated Articles of Association attached to this Agreement as EXHIBIT B (the
"AMENDED ARTICLES") (not including additional 3,138,876 shares of its Series A
Preferred Shares which the Company has or will have authorized for issuance and
sale pursuant to the Bridge Finance Agreements and 142,653 shares of its Series
A Preferred Shares issuable to Lehman Brothers).

         1.2. CLOSING. Subject to the terms and conditions set forth in this
Agreement, and in reliance on the representations and warranties set forth in
this Agreement, the Company agrees to issue and sell to the Purchasers at the
Closing (as hereinafter defined) and the Purchasers, severally but not jointly,
agree to purchase from the Company, that number of Shares set forth opposite
their respective names on EXHIBIT A under the caption "Number of Series A
Shares" at a purchase price per Share of Two Dollars and Ten and Three
One-Hundredths Cents (US$2.103). The total purchase price of the Shares being
acquired by each Purchaser is set forth opposite such Purchaser's name on
EXHIBIT A. The closing of the purchase and sale of the Shares with any one or
more Purchasers, (each such closing being referred to as a "Closing" and the
date thereof, the "Closing Date") shall take place at the offices of Zellermayer
& Pelossof, Advocates, 37 Shaul Hamelech Blvd., Tel Aviv at such time and date
to be agreed between the Company and such Purchaser(s), but in any event all
Closings for the purchase and sale of all Shares shall take place

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and be consummated not later than 16:00 (Israel time) on October 8, 2000 or at
such time and date thereafter as the Purchasers and the Company may agree. At
each Closing, the Company will deliver to the Purchaser(s) with whom such
Closing is performed: (i) certificates for the number of Shares being purchased
by such Purchaser registered in such Purchaser's name; and (ii) a copy of a
resolution by the Company's Board of Directors issuing the Shares; and (iii) a
certificate of the Secretary of the Company certifying that such Purchaser has
been inscribed in the Shareholders Register of the Company as the owner of the
Shares purchased thereby hereunder, and a copy of the Company's complete
Registry of Shareholders, in accordance with the provisions of the Israeli
Companies Law, 1999, dated as of immediately subsequent to the last Closing,
will be delivered to Israeli counsel to the Lead Purchaser no later than ten
(10) days thereafter; and (iv) form of reports of the issue of the Shares to the
Israeli Registrar of Companies (the "Registrar"); all against payment in full by
way of a net transfer of immediately available funds to the account of the
Company identified in Exhibit A-1 or any other bank account which the Company
shall specify to the Purchasers in writing (the "Company's Account") by wire
transfer, in the amount equal to the purchase price set forth opposite each such
Purchaser's name on EXHIBIT A.

         1.3. USE OF PROCEEDS. The Company agrees to use the net proceeds
from the sale of the Shares solely: (i) for working capital; and (ii) as
otherwise approved by the Company's Board of Directors.

                                   ARTICLE 2.

                  THE COMPANY'S REPRESENTATIONS AND WARRANTIES

                  In order to induce the Purchasers to enter into this Agreement
and to consummate the transactions contemplated hereby, the Company represents
and warrants as of the date hereof and (except as may be qualified by the
Officer's Certificate to be delivered under Section 4.1(ii) below, provided that
any material qualifications therein shall permit the Purchasers not to close) as
of the Closing as follows:

         2.1 INCORPORATION, STANDING AND QUALIFICATION OF THE COMPANY. The
Company is a corporation duly incorporated and validly existing under the laws
of its jurisdiction of organization. The Company has requisite power and
authority to own, lease and operate its properties and to carry on its business
as now being conducted and as proposed to be conducted. The Company is not
qualified as a foreign corporation and in good standing in any other
jurisdiction. .

         2.2 SUBSIDIARIES. Except for Given Imaging Inc., a Delaware corporation
and a wholly owned Subsidiary of the Company (the "Given Sub"), the Company does
not (i) own of record or beneficially, directly or indirectly, (A) any shares of
capital shares of any other corporation or (B) any participating interest in any
partnership, joint venture or other non-corporate business enterprise (other
than collaborative research, joint development, sponsored research and similar
arrangements), or (ii) control, directly or indirectly, any other entity. The
Given Sub is a corporation duly incorporated and validly existing under the laws
of its jurisdiction of organization. The Given Sub has requisite power and
authority to own, lease and

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operate its properties and to carry on its business as now being conducted and
as proposed to be conducted. The Given Sub is qualified as a foreign corporation
and in good standing in the State of Georgia, and the nature of the Given Sub's
business and the ownership or lease of its property do not require it to become
qualified as a foreign corporation in any other state or jurisdiction.

         2.3 CORPORATE POWER AND AUTHORITY. The Company has the requisite power
and authority to execute and deliver this Agreement, the Shares, and the other
agreements and certificates contemplated hereby to which it is a party,
including the Investor Rights Agreement (collectively, the "Related
Agreements"), to perform its obligations hereunder and thereunder and to engage
in the transactions contemplated hereby and thereby. The Company has taken, or
prior to the Closing shall have taken, all requisite corporate action to
authorize the execution, delivery and performance of this Agreement, and the
Related Agreements and the issuance of the Shares. This Agreement is, and upon
the execution and delivery thereof, the Shares and each of the Related
Agreements will be, legal, valid and binding obligations of the Company,
enforceable in accordance with their terms, subject to laws of general
application from time to time in effect that have an effect on creditors' rights
and the exercise of judicial discretion in accordance with general equitable and
public policy principles.

         2.4 MEMORANDUM AND ARTICLES OF ASSOCIATION; CONSTITUTIVE DOCUMENTS OF
GIVEN SUB. The Company has made available to the Lead Purchaser or its counsel
true, correct and complete copies of its Memorandum and Amended Articles and the
Certificate of Incorporation and By-Laws of the Given Sub, each as in effect on
the Closing Date. Prior to the Closing, the Company shall have properly filed
the Amended Articles to permit the Company to fulfill its obligations under this
Agreement and the Related Agreements.

         2.5      LITIGATION; COMPLIANCE WITH LAWS; BANKRUPTCY.

                  (a) LITIGATION. There is no action, suit, claim, litigation,
proceeding, investigation, arbitration or governmental inquiry, at law or in
equity, or before or by any Federal, state, municipal or other governmental
department, commission, board, bureau, agency or instrumentality, within or
without the USA or arbitration involving private parties (collectively, a
"Proceeding") pending or, to the best knowledge of the Company, threatened
against the Company or the Given Sub or affecting any of their respective
properties or assets , or, to the knowledge of the Company, against any officer,
employee or holder of any of the capital shares of the Company affecting the
Company or its business, nor, to the best knowledge of the Company, has there
occurred any event nor does there exist any condition on the basis of which it
is reasonably likely that any such Proceeding might properly be instituted, in
each case which, if adversely determined, could reasonably be expected to have a
material adverse effect on the business, results of operations or financial
condition of the Company. There are no Proceedings pending or, to the Company's
knowledge, threatened (or any basis therefor known to the Company) which might
call into question the validity of this Agreement, any of the Shares, any of the
Related Agreements or any action taken or to be taken pursuant hereto or
thereto. There is no Proceeding by the Company pending or threatened against
others (other than a claim by the Company against a past supplier for payment of
approximately $12,500).

                  (b) COMPLIANCE WITH LAWS. Each of the Company and the Given
Sub has

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complied with, and is not in violation of or in default (with due notice or
lapse of time or both) on their side with respect to, all laws, governmental
rules, governmental regulations, governmental orders, judgments, decrees, writs,
injunctions and awards of any arbitration, court or governmental authority,
including the approvals issued to the Company by the Israeli Chief Scientist and
the Israeli Investment Center, applicable to it and its business, operations,
properties, assets, products and services, the violation of which would have a
material adverse impact on the Company or the Given Sub, and each of the Company
and the Given Sub has all necessary permits, licenses and other authorizations
required to conduct its business as currently conducted, the absence of which
would have a material adverse impact on the Company or the Given Sub. Subject to
obtaining relevant Governmental approvals from the U.S. Food and Drug
Administration, there is no existing law, governmental rule, governmental
regulation or governmental order applicable to or binding upon the Company or
the Given Sub, and the Company is not aware of any proposed law, governmental
rule, governmental regulation or governmental order, whether Federal or state,
domestic or foreign, which would prohibit or materially restrict the Company or
the Given Sub from, or otherwise materially adversely affect the Company or the
Given Sub in, conducting its business in any jurisdiction in which it is now
conducting business or has proposed to conduct business.

                  (c) BANKRUPTCY. Neither the Company nor the Given Sub has
admitted in writing its inability to pay its debts generally as they become due,
filed or consented to the filing against it of a petition in bankruptcy or a
petition to take advantage of any insolvency act, made an assignment for the
benefit of creditors, consented to the appointment of a receiver for itself or
for the whole or any substantial part of its property, or had a petition in
bankruptcy filed against it, been adjudicated a bankrupt, or filed a petition or
answer seeking reorganization or arrangement under the Federal bankruptcy laws
or any other law or statute of the United States of America or any other
jurisdiction, domestic or foreign.

                  2.6 BURDENSOME AND CONFLICTING AGREEMENTS; VIOLATIONS OF
PROVISIONS OF CONSTITUTIVE DOCUMENTS. Except as disclosed in SCHEDULE 2.6
hereto, neither the Company nor the Given Sub is bound by any agreement or
instrument or subject to any Memorandum or Articles of Association or other
corporate restriction which materially and adversely affects the business,
properties, operations, condition, prospects or affairs, financial or otherwise,
of the Company or the Given Sub. Neither the Company nor the Given Sub is in
violation or default (with due notice or lapse of time or both) of its
Memorandum and Articles of Association, Certificate of Incorporation, By-laws or
other corporate restriction, or of any agreement or instrument to which it is a
party or by which it or any of its assets is bound, except for violations or
defaults of any agreement or instrument other than the Memorandum and Articles
of Association, Certificate of Incorporation or By-laws, which, individually or
in the aggregate, would not materially adversely affect the business,
properties, operations or condition, financial or otherwise, of the Company.
Neither the authorization, execution, delivery and performance of this Agreement
or the Related Agreements, nor the sale, issuance and delivery of the Shares,
nor the consummation of the transactions herein and therein contemplated, nor
the fulfillment of or compliance with the terms hereof and thereof, require the
consent under or will conflict with or result in a breach or default (with due
notice or lapse of time or both) of any of the terms of the Memorandum and
Articles of Association, Certificate of Incorporation or By-laws, or of any
statute, law, rule or regulation, or of any judgment, decree, writ, injunction,
order or award of any arbitrator, court or governmental authority, or of any
material agreement or instrument, which is

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applicable to the Company or the Given Sub or by which the Company, the Given
Sub or any of their respective material assets is bound, or constitute a default
(with due notice or lapse of time or both) thereunder, or result in the creation
or imposition of any Lien upon any of the assets of the Company or the Given
Sub.

                  2.7 MATERIAL AGREEMENTS. Except as set forth in SCHEDULE 2.7,
neither the Company nor the Given Sub is a party to any material written or oral
contract, instrument, agreement, commitment, obligation, plan or arrangement, or
any other material agreement (the "Material Agreements"). Each of the Material
Agreements is in full force and effect with no default (without regard to notice
or lapse of time or both) by the Company, the Given Sub, or, to the knowledge of
the Company (without special inquiry), by any other party thereto. There is no
anticipated or, to the Company's best knowledge, threatened default or material
failure of performance or observance of any obligations or conditions contained
in the Material Agreements by the Company, the Given Sub, or, to the knowledge
of the Company (without special inquiry), by any other party thereto, and none
of the foregoing parties nor the Company nor the Given Sub has provided any
notice of default or of its intention to terminate these agreements.

                  2.8 GOVERNMENTAL APPROVALS. Subject to the accuracy of the
representations and warranties of the Purchasers set forth in Article 3, no
registration or filing with, or consent or approval of or other action by, any
Federal, state or other governmental agency or instrumentality, domestic or
foreign, under laws and regulations thereof as now in effect, is or will be
necessary for the valid execution, delivery and performance by the Company of
this Agreement, or any of the Related Agreements, the issuance, sale and
delivery of the Shares and the Conversion Shares and which have not yet been
obtained, other than filings required pursuant to applicable state securities
laws and blue sky laws, and other than with respect to the Investor Rights
Agreement, the registration of the shares covered thereby with the Commission
and filings pursuant to state securities laws, and any other registration or
filing, or consent or approval or other action as a result of or associated with
any purchase or sale of securities in accordance therewith.

                  2.9 TAX RETURNS AND PAYMENTS. Each of the Company and the
Given Sub has accurately, in all material respects, prepared and timely filed
all required tax returns and reports (other than those not required to be filed
by applicable law or regulation) and has paid, or adequately provided for the
payment of, all taxes, assessments and other governmental charges imposed upon
it or upon any of its assets, income or franchises, other than any such charges
that are currently payable without penalty or interest, including, without
limitation, all taxes which the Company or the Given Sub is obligated to
withhold from amounts owing to employees, creditors and third parties. Adequate
reserves have been established for all taxes accrued but not yet payable. The
Federal income tax returns of the Company has never been audited by the Internal
Revenue Service or other taxing authority, domestic or foreign. No deficiency
assessment with respect to or proposed adjustment of the Company's Federal,
state, county or local taxes, domestic or foreign, is pending or, to the
Company's best knowledge, threatened. There is no tax lien, whether imposed by
any Federal, state, county or local taxing authority, domestic or foreign,
outstanding against the assets, properties or business of the Company.

                  2.10 ISSUANCE TAXES. All taxes imposed by law in connection
with the issuance,

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sale and delivery of the Shares have been fully paid by the Company, or will
have been paid by the Company within 14 days of the Closing, and all laws
imposing such taxes have been fully complied with.

                  2.11 ERISA. Except as set forth on SCHEDULE 2.11 hereto,
neither the Company nor the Given Sub makes any contributions to any employee
pension benefit plans for its employees subject to the Employee Retirement
Income Security Act of 1974, as amended, or any foreign equivalent thereof.

                  2.12 TITLE TO ASSETS. Each of the Company and the Given Sub
has good and merchantable title to all of its assets free of any Liens except
mechanics liens not material to the Company or any property to which such liens
relate or liens for current taxes not yet due and payable. Each of the Company
and the Given Sub enjoys peaceful and undisturbed possession under all leases
(both capital and operating leases) under which it is operating, and all said
leases are valid and subsisting and in full force and effect. Neither the
Company nor the Given Sub owns any real property.

                  2.13 INTELLECTUAL PROPERTY RIGHTS. The Company is the
exclusive owner of all rights, titles and interests in its Intellectual Property
Rights as purported to be owned by the Company, and such Intellectual Property
Rights as set forth on SCHEDULE 2.13 are valid and in full force and in effect.
The Company owns or has a valid right to use the Intellectual Property Rights
being used to conduct its business as now conducted. A complete list of patents,
applications, trademarks, licenses, contract rights and registrations of such
Intellectual Property Rights is attached hereto as SCHEDULE 2.13. To the
Company's best knowledge, the conduct of the Company's business as now operated
does not infringe upon the Intellectual Property Rights of others. Except as
specified on SCHEDULE 2.13A, the Company has no obligation to compensate any
Person for the use of any such Intellectual Property Rights and the Company has
not granted to or assigned to any Person any license or other right to use any
of the Intellectual Property Rights of the Company or otherwise licensed from
others the Intellectual Property Rights of third parties, whether requiring the
payment of royalties or not.

                  The Company has taken, where and to the extent it deemed
appropriate, all reasonable measures (as customary for a start-up company) to
protect and preserve the security, confidentiality and value of its Intellectual
Property Rights, including its trade secrets and other confidential information.
All employees and consultants of the Company who are engaged in the Company's
research and development, have executed confidentiality and con-competition
undertakings. To the Company's best knowledge, none of the trade secrets and
other confidential information of the Company has been used, divulged or
appropriated by the Company, its officers or employees for the benefit of any
Person other than the Company or otherwise to the detriment of the Company,
except for under confidentiality agreements. Neither the Company nor, to the
best knowledge of the Company, any of its officers, employees or consultants has
received notice of, and there are no claims pending or, to the Company's best
knowledge, threatened that the Intellectual Property Rights owned by the Company
or the use or ownership thereof by the Company infringes, violates or conflicts
with any such right of any third party or are invalid or unenforceable.

                  2.14 PROPRIETARY INFORMATION OF THIRD PARTIES. No third party
has claimed or

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notified the Company of its intention to claim that any Person employed or
retained by the Company has (a) violated or may be violating any of the terms or
conditions of his or her employment, non-competition, nondisclosure or
inventions agreement with such third party, (b) disclosed or may be disclosing
or utilized or may be utilizing any trade secret or proprietary information or
documentation of such third party or (c) interfered or may be interfering in the
employment relationship between such third party and any of its present or
former employees. No third party has requested information from the Company
which suggests that such a claim might be contemplated. The Company in not aware
of any Person employed by it, which has employed or proposes to employ any trade
secret or any information or documentation proprietary to any former employer,
or of any Person employed by the Company which has violated any confidential
relationship which such Person may have had with any third party, in connection
with the development, manufacture or sale of any product or proposed product or
the development or sale of any service or proposed service of the Company. To
the Company's knowledge, none of the execution or delivery of this Agreement or
any of the Related Agreements, or the carrying on of the business of the Company
as officers, employees or agents by any officer, director or key employee of the
Company, or the conduct or proposed conduct of the business of the Company, will
conflict with or result in a breach of the terms, conditions or provisions of or
constitute a default under any non-competition, non-disclosure or inventions
agreement under which any such Person is obligated.

                  2.15 CAPITALIZATION; STATUS OF CAPITAL SHARE. The Company has,
or immediately prior to the Closing will have, a total authorized share capital
consisting of NIS 750,000, divided into (i) 40,000,000 Ordinary Shares,
(ii)8,000,000 Ordinary A Shares and (iii) 27,000,000 Series A Convertible
Preferred Shares, all such shares having par value of NIS 0.01 per share.
Immediately prior to the Closing, the issued and outstanding share capital of
the Company shall consist of 14,673,650 Ordinary Shares, no Ordinary A Shares
NIS 0.01 par value each, and no shares of Series A Convertible Preferred Shares.
All the outstanding shares of the Company have been duly authorized, are validly
issued and are fully paid and non-assessable and no personal liability will
attach to the ownership thereof. A complete list of the share capital of the
Company which has been previously issued and the names in which such share is
registered on the Company's Shareholders Register is set forth in SCHEDULE 2.15.
As of immediately prior to the Closing, the designations, powers, preferences,
rights, qualifications, limitations and restrictions in respect of the
authorized share capital of the Company will be as set forth in the Amended
Articles, and, all such designations, powers, preferences, rights,
qualifications, limitations and restrictions will be valid, binding and
enforceable and in accordance with all applicable laws. The Shares, when issued
and delivered in accordance with the terms hereof, and the Ordinary Shares
resulting from the conversion of the Shares (as adjusted from time to time in
accordance the Amended Articles, the "Conversion Shares"), when issued will be
duly authorized, validly issued, fully paid and non-assessable and no personal
liability will attach to the ownership thereof and will be free and clear of all
Liens or restrictions imposed by or through the Company except as set forth in
this Agreement, the Related Agreements and the Amended Articles. The Conversion
Shares have been duly reserved for issuance.

                  Except for the Shares and as set forth on SCHEDULE 2.15 or
contemplated by this Agreement, the Related Agreements or the Amended Articles,
there are no subscriptions, options, warrants or other rights (contingent or
otherwise) to purchase or otherwise acquire shares or other securities of the
Company authorized, issued or outstanding, nor is the Company

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obligated in any other manner to issue shares, subscriptions, warrants, options,
convertible securities, or other such rights or to distribute to holders of any
of its equity securities any evidence of Indebtedness or asset. As of the date
hereof,3,944,540 Ordinary A Shares are authorized for issuance pursuant to the
Company's Share Option Plans (the "Share Plans"), of which options to
purchase2,438,880 shares have been granted and are outstanding on the date
hereof. Except as set forth in SCHEDULE 2.15, or contemplated by this Agreement,
the Related Agreements or the Amended Articles, (i) there are no restrictions on
the transfer of shares of shares or other securities of the Company other than
those imposed by relevant securities laws, domestic or foreign, and (ii) there
are no agreements, understandings, proxies, trusts or other collaborative
arrangements to which the Company is a party concerning the voting, pledge or
purchase and sale of shares or other securities of the Company. Except as set
forth in SCHEDULE 2.15, the Amended articles or the Related Agreements, no
holder of any security of the Company is entitled to preemptive, first refusal
or similar statutory or contractual rights relating to the issuance of shares or
other securities, either arising pursuant to any agreement or instrument to
which the Company is a party, or which are otherwise binding upon the Company,
or to the best of the Company's knowledge, to which any other Person is a party.
Except as provided for in the Amended Articles or as set forth in the attached
SCHEDULE 2.15, the Company has no obligation (contingent or otherwise) to
purchase, redeem or otherwise acquire any of its equity securities or any
interest therein or to pay any dividend or make any other distribution in
respect thereof. The offer and sale of all shares and other securities of the
Company issued before the Closing, assuming the truth and accuracy of the
representations and warranties made by the purchasers of such shares and other
securities, complied with or were exempt from all applicable US Federal and
state, and Israeli, securities laws.

                  2.16 FINANCIAL STATEMENTS. Prior to the Closing, the Company
has made available to the Lead Purchaser or its counsel the Company's audited
financial statements for the years ended December 31, 1998 and 1999 (the
"Audited Financial Statements") and its unaudited balance sheet as of June 30,
2000 (the "June Financial Statement" and, together with the Audited Financial
Statements, the "Financial Statements"). The Audited Financial Statements have
been prepared in accordance with U.S. generally accepted accounting principles
("GAAP") applied on a consistent basis throughout the periods indicated. The
Financial Statements fairly present, in all material aspects and in accordance
with GAAP, the financial condition and operating results of the Company as of
the dates, and for the periods, indicated therein, subject to normal year-end
audit adjustments with respect to the June Financial Statement which the Company
does not expect to be material. Except as set forth in the June Financial
Statement or SCHEDULE 2.16 hereto, the Company has no material liabilities,
contingent or otherwise, other than (i) liabilities incurred in the ordinary
course of business subsequent to the date of last set of Financial Statements
delivered to the Purchasers and (ii) obligations under contracts and commitments
incurred in the ordinary course of business and not required under generally
accepted accounting principles to be reflected in the Financial Statements,
which, in both cases, individually or in the aggregate are not material to the
financial condition or operating results of the Company (hereafter referred to
as the "Listed Liabilities").

                  2.17 SECURITIES LAWS. Assuming the truth and correctness of
the Purchaser's representations and warranties in this Agreement, the Company
has complied and will comply with all applicable US Federal and state and
Israeli securities laws in connection with the offer, issuance and sale of the
Shares hereunder. Neither the Company nor anyone authorized to act on

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its behalf has or will sell, offer to sell or solicit offers to buy the Shares,
or solicit offers with respect thereto from, or enter into any preliminary
conversations or negotiations relating thereto with, any Person, so as to bring
the issuance and sale of the Shares under the registration provisions of the
Securities Act and applicable state securities laws (including, without
limitation, any offer, other issuance or sale of any security of the Company
under circumstances that might require the integration of the offering of such
security with the offering of the Shares under the Securities Act or the rules
and regulations thereunder).

                  2.18 INSURANCE. The Company carries insurance with financially
sound and reputable insurance companies or associations, in such amounts and
covering such risks as are adequate and customary for the type and scope of its
property and business.

                  2.19 REGISTRATION RIGHTS. Other than pursuant to the terms of
the Investor Rights Agreement, no Person has demand or other rights to cause the
Company to file any registration statement under the Securities Act relating to
any securities of the Company or any right to participate in any such
registration.

                  2.20 NO BROKER. Except as set forth in SCHEDULE 2.20, the
Company has no contract, arrangement or understanding with any broker, finder,
agent, financial advisor or other intermediary with respect to the transactions
contemplated by this Agreement, and no person or entity acting on behalf of the
Company has or will have, as a result of the transactions contemplated by this
Agreement, any right, interest or valid claim against or upon the Company or the
Purchasers for any commission, fee or other compensation as a finder or broker
because of any act or omission by the Company or the Purchasers or by any agent
of the Company or the Purchasers.

                  2.21 TRANSACTIONS WITH AFFILIATES. Except as set forth in
SCHEDULE 2.21, neither the Company, nor to the Company's knowledge, any of the
customers and suppliers of the Company, is a party to or bound by any agreement,
other than in connection with an investment or equity rights in the Company,
with any Affiliate of the Company. All of the agreements identified on SCHEDULE
2.21 hereto were entered into by the Company in good faith and are on terms no
less favorable to the Company than those which the Company could have obtained
from non-Affiliates.

                  2.22 EMPLOYEES. Set forth in SCHEDULE 2.22 is a list of the
names of all employees of the Company who are "Office Holders" (as defined in
the Israeli Companies Law, 1999), together with the title or job classification
of each such person. Except as set forth in SCHEDULE 2.22, none of such persons
(except for the CEO, pursuant to the amendment to his employment agreement
referred to in Section 4.1(viii) (the "CEO Agreement")) has an employment
agreement or understanding, whether oral or written, with the Company which is
not terminable on notice by the Company without cost or other liability to the
Company (except for through the applicable notice period). Except as set forth
in SCHEDULE 2.22, no key employee of the Company has advised the Company (orally
or in writing) that he or she intends to terminate employment with the Company.
The Company has generally complied in all material respects with all applicable
laws, domestic and foreign, relating to the employment of labor, including
provisions relating to wages, hours, equal opportunity, collective bargaining
and the payment of Social Security and other taxes.

                                       9
<Page>

                  2.23 LABOR RELATIONS. No labor union or any representative
thereof has made any attempt to organize or represent employees of the Company.
There are no unfair labor practice charges, pending trials with respect to
unfair labor practice charges, pending grievance proceedings or adverse
decisions of any labor relations board against the Company or relating to the
Company's employees or consultants. The Company is not in violation in any
material respect of any applicable statute, law or regulation relating to
occupational safety and health. Furthermore, to the best knowledge of the
Company, relations with employees and consultants of the Company are good and
has no reason to believe that any labor difficulties will arise in the
foreseeable future.

                  2.24 ASSUMPTIONS OR GUARANTIES OF INDEBTEDNESS OF OTHER
PERSONS. The Company has not assumed, Guaranteed, endorsed or otherwise become
directly or contingently liable on (including, without limitation, liability by
way of agreement, contingent or otherwise, to purchase, to provide funds for
payment, to supply funds to or otherwise invest in any debtor or otherwise to
assure any creditor against loss) any material amount Indebtedness of any other
Person.

                  2.25 LOANS AND ADVANCES. Other than pursuant to the CEO
Agreement, the Company has not made any material amount loan or advance to any
Person , nor is the Company obligated or committed to make any such material
amount loan or advance.

                  2.26 DISCLOSURE. Neither this Agreement, nor any other
agreement, document, certificate or written or oral statement furnished or made
to any Purchaser or its counsel by the Company or on behalf of the Company by
any of its officers or agents in connection with the transactions contemplated
hereby, including, without limitation, the Listed Liabilities or the Private
Placement Memorandum dated April 2000 relating to this investment (the "PPM"),
considered in the aggregate, contains any untrue statement of a material fact or
omits to state a material fact necessary in order to make the statements
contained herein and therein, in light of the circumstances under which they
were made, and subject to the limitations and risk factors identified therein,
not misleading; provided, however, that the PPM contains assumptions and
forecasts, some of which based upon sources of information as for the
reliability of which the Company can not be responsible, which there can be no
assurance that they will materialize.

                  2.27 BOOKS AND RECORDS. The books of account, ledgers, order
books, records and documents of the Company are maintained in accordance with
all applicable legal requirements and GAAP, and are accurate and complete in all
material aspects in accordance with such requirements and principles.

                  2.28 FOREIGN CORRUPT PRACTICES ACT. The Company is not
engaged, nor has any officer, director, employee or agent of the Company
engaged, in any act or practice which would constitute a violation of the
Foreign Corrupt Practices Act of 1977, or any rules or regulations promulgated
thereunder. There is not now, and there never has been, any employment by the
Company of any governmental or political official in any country in the world.

                  2.29 U.S. REAL PROPERTY HOLDING CORPORATION. The Company is
not a "United States real property holding corporation", as defined in Section
897(c)(2) of the U.S. Internal

                                       10
<Page>

Revenue Code and Section 1.897-2(b) of the Regulations promulgated by the
Internal Revenue Service.

                  2.30 ENVIRONMENTAL MATTERS.

                  (a) The Company and Given Sub are in compliance with all
limitations, restrictions, conditions, standards, prohibitions, requirements,
obligations, schedules and timetables contained in any Applicable Environmental
Laws, or in any plan, order, decree, judgment, notice or demand letter issued,
entered, promulgated or approved thereunder. For purposes of this Agreement, the
term "Applicable Environmental Laws" shall mean Comprehensive Environmental
Response, Compensation and Liability Act of 1980, 42 U.S.C. 9601 ET. SEQ.
("CERCLA"); Resource Conservation and Recovery Act of 1976, 42 U.S.C. 6901 ET.
SEQ. ("RCRA"); Federal Water Pollution Control Act, 33 U.S.C. 1251 ET. SEQ.; and
Clean Air Act, 42 U.S.C. 7401 ET. SEQ. and any similar provisions of state or
local law, domestic or foreign, in any jurisdictions where the properties of the
Company are located, and the regulations thereunder, and any other local, state
and or federal laws or regulations, domestic or foreign, relating to the
protection of human health or the environment.

                  2.31 ABSENCE OF CERTAIN DEVELOPMENTS. Except as provided in
any disclosure schedule or exhibit attached hereto, since the date of its last
Audited Financial Statements, the Company has not:

                        (a)   issued any share, bonds or other corporate
                            securities or any rights, options or warrants with
                            respect thereto;

                        (b)   borrowed any amount or incurred or become subject
                            to any liabilities (absolute or contingent) except
                            current liabilities incurred in the ordinary
                            course of business;

                        (c)   discharged or satisfied any Lien or encumbrance or
                            paid any obligation or liability (absolute or
                            contingent), other than current liabilities paid
                            in the ordinary course of business;

                        (d)   declared or made any payment or distribution of
                            cash or other property to shareholders with
                            respect to its shares, or purchased or redeemed,
                            or made any agreements to purchase or redeem, any
                            shares of its shares;

                        (e)   mortgaged or pledged any of its assets, tangible
                            or intangible, or subjected them to any Liens,
                            except Liens for current property taxes not yet
                            due and payable;

                        (f)   sold, assigned or transferred any other material
                            tangible assets, or cancelled any debts or claims;

                        (g)   sold, assigned or transferred any patents, patent
                            rights, trademarks, trade names, copyrights, trade
                            secrets or other intangible

                                       11
<Page>

                            assets or other Intellectual Property Rights, or
                            disclosed any material proprietary or confidential
                            information to any Person not associated with the
                            Company, unless such Person, prior to such
                            disclosure executed and delivered a non-disclosure
                            agreement in favor of the Company;

                        (h)   suffered any substantial casualty losses or waived
                            any rights of material value, whether or not in
                            the ordinary course of business or covered by
                            insurance, or otherwise suffered any material
                            adverse effect to its assets, business, prospects
                            or financial condition;

                        (i)   suffered any labor trouble, or any event or
                            condition of any character, materially adversely
                            affecting the business or plans of the Company; or

                        (j)   entered into any other transaction other than in
                            the ordinary course of business, or entered into
                            any other material transaction, whether or not in
                            the ordinary course of business.

                                   ARTICLE 3.

                 THE PURCHASERS' REPRESENTATIONS AND WARRANTIES

                  Each Purchaser severally, but not jointly, represents and
warrants to the Company solely as to itself as follows:

                  3.1 INVESTMENT REPRESENTATIONS. The Purchaser's present
intention is to acquire the Shares to be acquired by it for its own account and
the Shares are being and will be acquired by it for the purpose of investment
and not with a view to distribution or resale thereof. The acquisition by the
Purchaser of the Shares acquired by it shall constitute a confirmation of this
representation by such Purchaser. The Purchaser further represents that it
understands and agrees that, except as otherwise provided in the Related
Agreements, all certificates evidencing any of the Shares or Conversion Shares,
whether upon initial issuance or upon any transfer thereof, shall bear a legend,
prominently stamped or printed thereon, reading substantially as follows:

                  "The securities represented by this certificate have not been
                  registered under the Securities Act of 1933 or any other
                  securities laws. These securities have been acquired for
                  investment and not with a view to distribution or resale. Such
                  securities may not be offered for sale, sold, delivered after
                  sale, transferred, pledged or hypothecated in the absence of
                  an effective registration statement covering such securities
                  under the Securities Act of 1933 and any other applicable
                  securities laws, unless the holder shall have obtained an
                  opinion of counsel reasonably satisfactory to the corporation
                  that such registration is not required."

                                       12
<Page>

                  3.2 ACCESS TO INFORMATION. The Purchaser acknowledges that
such Purchaser, during the course of this transaction and prior to the purchase
of any Shares, has had the opportunity to ask questions of and receive answers
from representatives of the Company concerning the terms and conditions of the
offering of the Shares, and has obtained all information, documents, records and
books relative to the Company, its business, and an investment in the Company,
as requested by or on behalf of such Purchaser. Each Purchaser hereby agrees
that, except for such representations and warranties contained in this
Agreement, the Company provides no other warranty with respect to the Company
and the securities sold hereunder, whether express, implied, statutory or
otherwise.

                  3.3 ACCREDITED INVESTOR STATUS. The Purchaser is an
"accredited investor" as that term is defined in Rule 501 of Regulation D
promulgated under the Securities Act; or, if such Purchaser is listed under
SCHEDULE 3.3 hereto, that such Purchaser complies with the "Non U.S. Person
Status", as specified below, and the Company may rely upon such Purchaser's
representation for the purposes of complying with applicable securities laws.
The Purchaser's address set forth on EXHIBIT A represents the Purchaser's true
and correct state of domicile, upon which the Company may rely for the purposes
of complying with applicable Blue Sky or other securities laws.

                  "Non U.S. Person Status" means that such Purchaser is not a
U.S. person, as defined in Regulation S promulgated under the Securities Act
("Regulation S"), and is not purchasing the Shares for the account or benefit of
any U.S. person. The offer and sale of the Shares to the Purchaser is being made
in an "offshore transaction" as defined in Regulation S, and the Purchaser
acknowledges that neither the Company nor any affiliate, agent or person acting
on behalf of the foregoing has made any direct selling efforts, within the
meaning of Regulation S, in the United States in connection with the offer or
sale of the Shares.

                  3.4 TRANSFER RESTRICTIONS IMPOSED BY SECURITIES LAWS. The
Purchaser understands that none of the Shares and Conversion Shares have been
registered under the Securities Act or any other applicable securities laws,
and, therefore, cannot be resold unless they are subsequently registered under
the Securities Act and other applicable securities laws or unless an exemption
from such registration is available. The Purchaser understands that the issuance
of the Shares and the Conversion Shares has not been registered under the
Securities Act by reason of a specific exemption from the registration
provisions of the Securities Act, the availability of which depends upon, among
other things, the bona fide nature of the Purchaser's investment intent and the
accuracy of the Purchaser's representations herein. The Purchaser agrees not to
resell or otherwise dispose of all or any part of the Shares purchased by it or
the Conversion Shares, except as permitted by law, including, without
limitation, any regulations under the Securities Act and other applicable
securities laws. Purchaser acknowledges that the Company does not have any
present intention and is under no obligation to register the Shares or
Conversion Shares under the Securities Act and other applicable securities laws,
except as provided in the Related Agreements.

                  3.5 SOPHISTICATED PURCHASERS. Each of the Purchasers is
knowledgeable, sophisticated and experienced in making, and is qualified to
make, decisions with respect to investments of the type contemplated by this
Agreement and the Related Agreements, and has such knowledge and experience in
financial and business matters that he is capable of evaluating

                                       13
<Page>

the merits and risks of his investment hereunder. Such Purchaser is aware that
the Company is a private company and therefore no market for the Shares issuable
thereunder exists, and that there can be no assurance that such market will
exist in the future, that the investment in the Company involves a high degree
of risk, and that it can sustain the loss of its entire investment hereunder.

                  3.6 BUSINESS OF THE COMPANY. Without affecting the
representations and warranties and indemnification obligations of the Company
under this Agreement, the Purchaser agrees and acknowledges that the business of
the Company (the "Business"), as described in the PPM which has been delivered
to the Purchasers, including the financial projection and other information
contained therein, are accepted by such Purchaser, and reflect the Company's
best assumptions, for which the Company has subjective basis only. Such
Purchaser is aware that each of the Company and Given Sub is a high-tech
"start-up" company, that there can be no assurance that the Company will achieve
its business or technological goals or projections.

                  3.7 NO BROKER. The Purchaser has no contract, arrangement or
understanding with any broker, finder, agent, financial advisor or other
intermediary with respect to the transactions contemplated by this Agreement,
and no person or entity acting on behalf of the Purchaser has or will have, as a
result of the transactions contemplated by this Agreement, any right, interest
or valid claim against or upon the Company or the Purchasers, or their
respective Affiliates and agents, for any commission, fee or other compensation
as a finder or broker because of any act or omission by the Company or the
Purchasers or by any agent of the Company of the Purchasers.

                  3.8 NO COMPETITOR PURCHASER. The Purchaser is not currently
involved, whether alone or with others, including as a shareholder (except for
holding a less than 5% interest in a publicly traded entity), director,
employee, agent, consultant, partner, supplier, distributor or otherwise, in any
business which is in direct competition with the gastrointestinal imaging
business of the Company and/or the Given Sub.

                  3.9 (ISRAELI) SECURITIES LAW. The Purchaser (unless identified
in Schedule 3.9A) is a "venture capital fund" for the purpose of Section
15A(b)(1) of the Israeli Securities Law, 1968. Unless the Purchaser is
identified in SCHEDULE 3.10B, SUCH PURCHASER further acknowledges that neither
the Company nor any affiliate, agent or person acting on behalf of any of the
foregoing has made any offer or selling efforts within the State of Israel with
respect to the offer and sale of the Shares to the Purchaser.

                  3.10 RULE 144. The Purchaser acknowledges that the Shares and
the underlying Conversion Shares must be held indefinitely unless subsequently
registered under the Securities Act or unless an exemption from such
registration is available. The Purchaser is aware of the provisions of Rule 144
promulgated under the Securities Act which permit limited resale of shares
purchased in a private placement subject to the satisfaction of certain
conditions, including, among other things, the existence of a public market for
the shares, the availability of certain public information about the Company,
the resale occurring not less than one year after a party has purchased and paid
for the security to be sold, the sale being effected through a "broker's
transaction" or in a transaction directly with a "market maker," and the number
of shares being sold during any three-month period not exceeding specified
limitations.

                                       14
<Page>

                  3.11 AUTHORIZATION. All action on the part of the Purchaser's
partners, board of directors, and stockholders, as applicable, necessary for the
authorization, execution, delivery and performance of this Agreement and the
Related Agreements by the Purchaser, the purchase of and payment for the Shares
and the Conversion Shares and the performance of all of the Purchaser's
obligations under this Agreements and the Related Agreements has been taken or
will be taken prior to the Closing. This Agreement and the Related Agreements,
when executed and delivered by the Purchaser, shall constitute valid and binding
obligations of the Purchaser, enforceable against such Purchaser in accordance
with their respective terms, subject to laws of general application relating to
bankruptcy, insolvency and the relief of debtors and rules of law governing
specific performance, injunctive relief or other equitable remedies; provided,
however, that the Purchaser makes no representations as to the enforceability of
the indemnification provisions contained in the Investor Rights Agreement.

                                   ARTICLE 4.

                               CLOSING CONDITIONS

                  4.1 CONDITIONS TO THE PURCHASERS' OBLIGATIONS. Each
Purchaser's obligation to purchase and pay for the Shares to be purchased by it
at the Closing is subject to the complete satisfaction by the Company, on or
before such Closing, of the following conditions:

                  (a)   OPINION OF COMPANY'S COUNSEL. The Purchaser shall have
                      received from Zellermayer & Pelossof, Advocates, counsel
                      for the Company, an opinion, dated the date of the
                      Closing Date, in the form set forth in EXHIBIT C hereto
                      with respect to the Closing.

                  (b)   REPRESENTATIONS AND WARRANTIES; OFFICER'S CERTIFICATE.
                      The Company's representations and warranties contained
                      in Article 2 shall be true and correct in all material
                      aspects on and as of the date of the Closing with the
                      same effect as if made on and as of the date of the
                      Closing. All agreements and conditions to be performed
                      or satisfied by the Company hereunder on or before the
                      date of the Closing shall have been duly performed or
                      satisfied. The Company shall have delivered to the
                      Purchaser a certificate, dated the date of the Closing
                      and signed by the President or the Chief Financial
                      Officer of the Company, to such effect (the "Officer's
                      Certificate").

                  (c)   CONSENTS AND APPROVALS. The Company shall have delivered
                      to the Purchaser a certificate, dated the date of the
                      Closing and signed by the President or the Chief
                      Financial Officer of the Company, listing any consents,
                      waivers, approvals, authorizations, registrations,
                      filings and notifications of the character referred to
                      in Section 2.6or 2.8 which are necessary, that the same
                      have been obtained or made and are in full force and
                      effect, or stating that none is necessary.

                                        15

<Page>

                  (d)   MEMORANDUM AND ARTICLES OF ASSOCIATION OF THE COMPANY.
                      The Lead Purchasers or its counsel shall have received a
                      copy of the Amended Articles, amended as necessary to
                      permit the Company to fulfill its obligations under this
                      Agreement.

                  (e)   INVESTOR RIGHTS AGREEMENT. The Purchasers (with whom the
                      Closing is or was consummated) and the Company and other
                      shareholders thereto named therein shall have entered
                      into the Investor Rights Agreement in the form attached
                      hereto as EXHIBIT D.

                  (f)   SERIES A CONVERTIBLE PREFERRED SHARE. The Purchaser
                      shall have received a share certificate evidencing its
                      ownership of the Shares in the amounts set forth in
                      EXHIBIT A hereof, which Shares have been duly authorized
                      and issued by the Company.

                  (g)   COMPANY CERTIFIED RESOLUTIONS. The Purchaser shall have
                      received true copies of the corporate resolutions
                      adopted by the Board of Directors or the shareholders of
                      the Company authorizing the execution, delivery and
                      performance of this Agreement and any other document or
                      instrument executed in connection therewith, and the
                      issuance, sale and delivery of the Shares and the
                      Conversion Shares.

                  (h)   CEO EMPLOYMENT AGREEMENT. Dr. Gavriel D. Meron, the
                      Company's President and CEO, shall have entered into an
                      extension of his existing employment agreement with the
                      Company for a period of 3 years after the Closing in the
                      form attached hereto as EXHIBIT E.

                  4.2 CONDITIONS TO THE COMPANY'S OBLIGATIONS. The Company's
obligation to issue the Shares to the Purchasers at the Closing is subject to
the satisfaction of the following conditions:

                  (a)   REPRESENTATIONS AND WARRANTIES. The representations and
                      warranties of each Purchaser contained in Article 3
                      shall be true, correct and complete in all material
                      respects on and as of the date of the Closing with the
                      same force and effect as if they had been made on and as
                      of the date of the Closing.

                  (b)   PAYMENT OF PURCHASE PRICE. Each Purchaser shall have
                      delivered to the Company and the Company shall have
                      received payment in full of the purchase price relating
                      to the number of Shares to be purchased by such
                      Purchaser at the Closing.

                  (c)   DELIVERY OF PROXY. Each Purchaser, other than the Lead
                      Purchaser, Mr. Gary S. Weinstein and Purchasers who
                      prior to the Closing therewith have been shareholders of
                      the Company, shall have executed and delivered to the
                      Company and irrevocable proxy in the form of EXHIBIT F
                      hereto, appointing the Person named in SCHEDULE 4.2(iii)
                      as

                                       16
<Page>

                      proxy and agent for such Purchaser.

                  (d)   UNDERTAKING UNDER THE R&D LAW. Each Purchaser shall have
                      executed and delivered an acknowledgement and
                      undertaking relating to the applicable provisions of the
                      Law for Encouragement of Research and Development in the
                      Industry, 1984, substantially in the form of EXHIBIT G
                      hereto (or such other form acceptable to the Chief
                      Scientist).

                                   ARTICLE 5.

                                 INDEMNIFICATION

                   5.1 COMPANY INDEMNIFICATION. The Company shall indemnify,
defend and hold each Purchaser and its officers, directors, partners, members,
employees and agents and each other Person which controls (within the meaning of
the Securities Act) such Purchaser or any of its partners or members harmless
against all liability, loss or damage, together with all reasonable costs and
expenses related thereto (including legal and accounting fees and expenses as
incurred), arising from, based on, or directly connected with the untruth,
inaccuracy or breach of any representations, warranties or covenants contained
herein or in the Related Agreements. Notwithstanding the foregoing, (i) the
aggregate amount that may be recovered from the Company by any Purchaser or any
of its officers, directors, employees, agents or other controlling Persons under
this Section 5.1 shall be limited to the total purchase price paid hereunder by
such Purchaser for the Series A Preferred Shares plus a return thereon at the
rate of 8% per annum compounded quarterly (excluding claims for fraud or willful
misconduct for which there shall be no cap), and (ii) the Company shall not be
obligated to under this provision until the aggregate claims for indemnity
exceed US$200,000, provided that such amount shall not constitute a deductible
and the indemnification obligation hereunder shall thereafter include all claims
from dollar one.

                   5.2 PURCHASERS' INDEMNIFICATION. Each of the Purchasers,
severally but not jointly, shall indemnify, defend and hold the Company and its
officers, directors, employees and agents and each other Person which controls
(within the meaning of the Securities Act) the Company harmless against all
liability, loss or damage, together with all reasonable costs and expenses
related thereto (including legal and accounting fees and expenses as incurred),
arising from, relating to, or connected with the untruth, inaccuracy or breach
of any representations or warranties or covenants of such Purchaser contained
herein or in the Related Agreements. Notwithstanding the preceding sentence, (i)
the aggregate amount that may be recovered from any Purchaser by the Company or
any of its officers, directors, employees, agents or other controlling Persons
under this Section 5.2 shall be limited to the total purchase price paid
hereunder by such Purchaser for the Series A Preferred Shares plus a return
thereon at the rate of 8% per annum compounded quarterly (excluding claims for
fraud or willful misconduct for which there shall be no cap), and (ii) no
Purchaser shall be obligated to under this provision until the aggregate claims
for indemnity exceed US$200,000, provided that such amount shall not constitute
a deductible and the indemnification obligation hereunder shall thereafter
include all claims from dollar one.

                                       17
<Page>

                   5.3 LIMITATION OF LIABILITY. Except with respect to fraud or
willful misconduct, the aggregate liability of the Company, arising out of or
relating to this Agreement or the Related Agreements or the transactions
contemplated thereby, whether based on contract, warranty, tort, strict
liability or otherwise, including all rights for indemnification hereunder,
shall not exceed, with respect to each Purchaser, the total purchase price paid
hereunder by such Purchaser for the Shares plus a return thereon at the rate of
8% (eight percent) per annum compounded quarterly. Except with respect to fraud
or willful misconduct, the Company and the Purchasers waive any right they may
have to recover any special, exemplary, punitive or consequential damages, or
any damages other than actual damages.

                                   ARTICLE 6.

                                   DEFINITIONS

                  6.1 DEFINITIONS. Except as otherwise defined in this Agreement
or as the context may otherwise require, the following terms shall have the
respective meanings set forth below whenever used in this Agreement:

                  "AFFILIATE" shall mean, with respect to any Person, any other
Person controlling, controlled by, or under common control with, such Person.

                  "AMENDED ARTICLES" shall mean the Amended and Restated
Articles of Association of the Company, attached as EXHIBIT B hereto.

                  "BRIDGE FINANCE AGREEMENTS" shall mean two Share Purchase
Agreements, both dated as of February 1, 2000, for an aggregate investment in
the Company of $4,950,000.

                  "BRIDGE PURCHASERS" shall mean the parties to the Bridge
Finance Agreements (other than the Company).

                  "CLOSING" shall have the meaning assigned to that term in
Section 1.2 of this Agreement.

                  "CLOSING DATE" shall have the meaning assigned to that term in
Section 1.2 of this Agreement.

                  "COMMISSION" shall mean the Securities and Exchange Commission
and any successor agency of the Federal government administering the Securities
Act and the Exchange Act, and shall be deemed to include the Israeli equivalent
thereof.

                  "CONVERSION SHARES" shall have the meaning assigned to that
term in Section 2.15 of this Agreement.

                  "EXCHANGE ACT" shall mean the Securities Exchange Act of 1934,
as amended, and any similar or successor Federal statute, and the rules and
regulations of the Commission thereunder, all as the same shall be in effect at
the time.

                                       18
<Page>

                  "GUARANTEE" shall mean any obligation, contingent or
otherwise, of any Person guaranteeing any Indebtedness of any other Person in
any manner, whether directly or indirectly, and including, without limitation,
any obligation of such Person, direct or indirect, (i) to purchase or pay (or
advance or supply funds for the purchase or payment of) such Indebtedness or to
purchase (or to advance or supply funds for the purchase of) any security for
the payment of such Indebtedness, (ii) to purchase property, securities or
services for the purpose of assuring the owner of such Indebtedness of the
payment of such Indebtedness, or (iii) to maintain working capital, equity
capital or other financial statement condition of the primary obligor so as to
enable the primary obligor to pay such Indebtedness; PROVIDED, HOWEVER, that the
term "Guarantee" shall not include endorsements for collection or deposit, in
either case, in the ordinary course of business.

                  "INDEBTEDNESS" shall mean, with respect to any Person, (i) all
obligations of such Person for borrowed money, (ii) all obligations of such
Person evidenced by bonds, debentures, notes or similar instruments, (iii) all
obligations of such Person upon which interest charges are customarily paid
(other than obligations accepted in connection with the purchase by such Person
of products or services in the ordinary course of business), (iv) all
obligations of such Person under conditional sale or other title retention
agreements relating to property purchased by such Person, (v) all obligations of
such Person issued or assumed as the deferred purchase price of property or
services (other than accounts payable to suppliers incurred in the ordinary
course of business and paid when due), (vi) all Indebtedness of others secured
by (or for which the holder of such Indebtedness has an existing right,
contingent or otherwise, to be secured by) any Lien or security interest on
property owned or acquired by such Person whether or not the obligations secured
thereby have been assumed, (vii) all obligations of such Person under leases
required to be accounted for as capital leases under generally accepted
accounting principles, and (viii) all Guarantees of such Person.

                  "INTELLECTUAL PROPERTY RIGHTS" shall mean any and all, whether
domestic or foreign, patents, patent applications, patent rights, trade secrets,
confidential business information, formula, biological or chemical processes,
compounds, cell lines, fungi, yeast, laboratory notebooks, algorithms,
copyrights, mask works, claims of infringement against third parties, licenses,
permits, license rights to or of technologies, contract rights with employees,
consultants or third parties, tradenames, trademarks, trademark applications,
trademark rights, inventions and discoveries.

                  "INVESTMENT" shall mean, with respect to any Person, any loan,
advance or extension of credit (other than in connection with the sale by such
Person of products or services in the ordinary course of business) by such
Person to, and any Guarantee or other contingent liability with respect to the
capital share. Indebtedness or other obligations of, and any contributions to
the capital of, any other Person, as well as any ownership, purchase or other
acquisition by such Person of any interest in any capital shares or other
securities of any such other Person as well as any transfer or sale (other than
in connection with the sale by such Person of products or services in the
ordinary course of business) of property by such Person to any other Person
other than upon full payment, in cash, of not less than the agreed sale price or
the fair value of such property, whichever is higher.

                                       19
<Page>

                  "LEAD PURCHASER" shall mean OrbiMed Advisors LLC, a limited
liability company incorporated under the laws of State of Delaware, and funds
advised or controlled thereby.

                  "LIEN" shall mean: (i) any interest in property (whether real,
personal or mixed and whether tangible or intangible) which secures an
obligation owed to, or a claim by, a Person other than the owner of such
property, whether such interest is based on the common law, statute or contract,
including, without limitation, any such interest arising from a lease, mortgage,
charge, pledge, security agreement, conditional sale, trust receipt or deposit
in trust, or arising from a consignment of bailment given for security purposes
(other than a trust receipt or deposit given in the ordinary course of business
which does not secure any obligation for borrowed money), (ii) any encumbrance
upon such property which does not secure such an obligation, and (iii) any
exception to or defect in the title to or ownership interest in such property,
including, without limitation, reservations, rights of entry, possibilities of
reverter, encroachments, easements, rights of way, restrictive covenants,
licenses and PROFITS A PRENDRE. For purposes of this Agreement, any Person shall
be deemed to be the owner of the leasehold or other interest in any property
which it has acquired or holds subject to a lease and the owner of any property
which it has acquired or holds subject to a conditional sale agreement or other
similar arrangement pursuant to which title to the property has been retained by
or vested in some other Person for security purposes.

                  "PERSON" shall include any individual, a corporation, an
association, a partnership, a limited liability company, an unincorporated
business entity, a trust or estate, a government and any agency or political
subdivision thereof, or any other entity.

                  "SECURITIES ACT" shall mean the Securities Act of 1933, as
amended, and any similar or successor Federal statute, and the rules and
regulations of the Commission thereunder, all as the same shall be in effect
from time to time.

                  "SHARE PLANS" shall have the meaning assigned to that term in
Section 2.15 of this Agreement.

                  "SUBSIDIARY" or "SUBSIDIARIES" shall mean any corporation,
partnership, trust or other entity of which the Company and/or any of its other
Subsidiaries directly or indirectly owns at the time a majority of the
outstanding shares of any class of equity security of such corporation,
partnership, trust or other entity.

                  6.2 ACCOUNTING PRINCIPLES. The character or amount of any
asset, liability, capital account or reserve and of any item of income or
expense required to be determined pursuant to this Agreement, and any
consolidation or other accounting computation required to be made pursuant to
this Agreement, and the construction of any definition in this Agreement
containing a financial term, shall be determined or made, as the case may be, in
accordance with generally accepted accounting principles, to the extent
applicable, unless such principles are inconsistent with the express
requirements of this Agreement.

                                   ARTICLE 7.

                                       20
<Page>

                                  MISCELLANEOUS

                  7.1 NOTICES. All notices, requests, consents and other
communications hereunder shall be in writing, shall be addressed to the
receiving party's address set forth below or to such other address as a party
may designate by notice hereunder, and shall be either (i) delivered by hand,
(ii) made by telecopy or facsimile transmission, (iii) sent by overnight
courier, or (iv) sent by certified mail, return receipt requested, postage
prepaid.

              If to a Purchaser:    To its address set forth on EXHIBIT A;

                                    With a copy to: Wollmuth Maher & Deutsch LLP
                                    500 Fifth Avenue, 12th Floor
                                    New York, NY 10110
                                    USA
                                    Attn: Mason H. Drake, Esq.
                                    +1-212-382-3300 (Telephone)
                                    +1-212-382-0050 (Fax)

                                    Sharir, Shiv, Friedman & Co., Law Offices
                                    Top Dan building
                                    72 Pinchas Rosen street
                                    Tel Aviv 69512
                                    Israel
                                    Attn: Yoram Shiv, Adv.
                                    Tel: +972 -3-6440105
                                    Fax: +972-3-6440106

              If to the Company:    Given Imaging Ltd.
                                    2 Ha'Carmel Street
                                    New Industrial Park
                                    P.O. Box 258
                                    Yoqneam 20692
                                    Israel
                                    Attn: Gavriel Meron, President and CEO
                                    972-4-9097789 (Tel)
                                    972-4-959-2466 (Fax)

              With copies to:       Zellermayer & Pelossof, Advocates
                                    Europe House
                                    37 King Shaul Blvd.
                                    Tel-Aviv 64928
                                    Israel
                                    Attn:  Yoram Ashery, Adv.
                                    972-3-693-9555 (Tel)
                                    972-3-695-2884 (Fax)

All notices, requests, consents and other communications hereunder shall be
deemed to have

                                       21
<Page>

been given (i) if by hand, at the time of the delivery thereof to the receiving
party at the address of such party set forth above, (ii) if made by telecopy or
facsimile transmission, at the time that receipt thereof has been acknowledged
by electronic confirmation or otherwise, (iii) if sent by overnight courier, on
the next business day (or if sent overseas, on the second business day)
following the day such notice is delivered to the courier service, or (iv) if
sent by registered or certified mail, on the 5th business day (or if sent
overseas, on the 10th business day) following the day such mailing is made.

                  7.2 ENTIRE AGREEMENT. This Agreement, together with the
Exhibits and Schedules hereto, and the other agreements executed and delivered
herewith embody the entire agreement and understanding between the Purchasers
and the Company, and supersede all prior oral or written agreements and
understandings relating to the subject matter hereof, including the Term Sheet
dated August 3, 2000 between the Company and the Lead Purchaser. No statement,
representation, warranty, covenant or agreement of any kind not set forth in
this Agreement, including the Exhibits and Schedules hereto, shall affect, or be
used to interpret, change or restrict, the express terms and provisions of this
Agreement.

                  7.3 MODIFICATIONS AND AMENDMENTS. This Agreement may not be
changed, modified or discharged orally, nor may any waivers or consents be given
orally hereunder, and every such change, modification, discharge, waiver or
consent shall be in writing and, except as provided in Section 7.4 hereto,
signed by the Person against which enforcement thereof is sought.

                  7.4 WAIVERS AND CONSENTS. Any waiver or consent hereunder
shall be effective only in the specific instance and for the purpose for which
it was given, and shall not constitute a continuing waiver or consent. Except as
otherwise provided herein, notwithstanding the consummation of the transactions
contemplated hereby, no Purchaser waives or relinquishes any right it may have
or may acquire against the Company or any of its Affiliates or agents in
connection with the acquisition of Series A Preferred Shares by such Purchaser,
or the ownership thereof. All such rights shall remain unimpaired by the
execution of this Agreement and the consummation of the transactions
contemplated hereby. Any waiver or consent which may be required or sought from
the Purchasers will be effective as if granted by all Purchasers if granted by
holders of at least two-thirds (2/3) of the Shares and the Conversion Shares
then outstanding, on an as-converted basis.

                  7.5 BINDING EFFECT, ASSIGNMENT. This Agreement shall be
binding upon and inure to the benefit of the Company, and the Purchasers and
their respective heirs, successors (including, without limitation, by sale or
transfer of all or substantially all assets, merger or consolidation) and
assigns, except that the Company shall not have the right to delegate its
obligations hereunder or to assign its rights hereunder or any interest herein
except by a consent complying with Section 7.3 above. Any Purchaser not in
breach or default hereunder may prior to the Closing therewith assign all or
part of its rights hereunder and the Related Agreements, with the corresponding
obligations, to one or more of its Permitted Transferees (as defined in the
Amended Articles), by notice to the Company by both Purchaser and assignee
confirming the assignee's assumption of such obligations.

                  7.6 GOVERNING LAW. This Agreement and the rights and
obligations of the

                                       22
<Page>

parties hereunder shall be construed in accordance with and governed by the law
of the State of New York, without giving effect to the conflict of law
principles thereof.

                  7.7 SEVERABILITY. In the event that any court of competent
jurisdiction shall determine that any provision, or any portion thereof,
contained in this Agreement shall be unenforceable in any respect, then such
provision shall be deemed limited to the extent that such court deems it
enforceable, and as so limited shall remain in fall force and effect. In the
event that such court shall deem any such provision, or portion thereof, wholly
unenforceable, the remaining provisions of this Agreement shall nevertheless
remain in full force and effect.

                  7.8 INTERPRETATION. The parties hereto acknowledge and agree
that: (i) each party and its counsel, if so represented, reviewed and negotiated
the terms and provisions of this Agreement excluding Schedules and Exhibits and
have contributed to its revision; and (ii) the rule of construction to the
effect that any ambiguities are resolved against the drafting party shall not be
employed in the interpretation of this Agreement.

                  7.9 HEADINGS AND CAPTIONS. The headings and captions of the
various subdivisions of this Agreement are for convenience of reference only and
shall in no way modify or affect the meaning or construction of any of the terms
or provisions hereof.

                  7.10 NO WAIVER OF RIGHTS, POWERS AND REMEDIES. No failure or
delay by a party hereto in exercising any right, power or remedy under this
Agreement, and no course of dealing between the parties hereto, shall operate as
a waiver of any such right, power or remedy of the party, except as provided in
Section 7.3. No single or partial exercise of any right, power or remedy under
this Agreement by a party hereto, nor any abandonment or discontinuance of steps
to enforce any such right, power or remedy, shall preclude such party from any
other or further exercise thereof or the exercise of any other right, power or
remedy hereunder. The election of any remedy by a party hereto shall not
constitute a waiver of the right of such party to pursue other available
remedies. No notice to or demand on a party not expressly required under this
Agreement shall entitle the party receiving such notice or demand to any other
or further notice or demand in similar or other circumstances or constitute a
waiver of the rights of the party giving such notice or demand to any other or
further action in any circumstances without such notice or demand.

                  7.11 RELIANCE. The parties hereto agree that, notwithstanding
any access to information by any party or any right of a party to this Agreement
to investigate the affairs of any other party to this Agreement, the party
having such access and right to investigate shall have the right to rely fully
upon the representations and warranties of the other party expressly contained
in this Agreement and on the accuracy of any Schedule, Exhibit or other document
attached hereto or referred to herein or delivered by such other party or
pursuant to this Agreement. Each of the Purchasers acknowledges that, based on
information provided by the Company, it has made its own analysis and decisions
regarding the transactions contemplated hereby and that it is not relying on any
of the other Purchasers in executing this Agreement or consummating the
transactions contemplated hereby.

                  7.12 SURVIVAL. All representations, warranties, covenants and
agreements made by the parties hereto in this Agreement or in any other
agreement (other than the Related

                                       23
<Page>

Agreements, which shall survive in accordance with their own terms), certificate
or instrument provided for or contemplated hereby shall survive (i) the
execution and delivery hereof, (ii) any investigations made by or on behalf of
the parties and (iii) the Closing and shall remain in full force and effect
thereafter for a period of three years after the Closing (provided that the
representations and warranties contained in (A) Section 2.15 shall survive
indefinitely, and (B) Sections 2.9 and 2.30 shall survive until the expiration
of the applicable statute of limitations). Notwithstanding the preceding
sentence, any representation, warranty, covenant or agreement in respect of
which indemnity may be sought under this Agreement shall survive the time at
which it would otherwise terminate pursuant to the preceding sentence if notice
specifying the inaccuracy or breach thereof giving rise to such right of
indemnity shall have been given to the party against whom such indemnity may be
sought prior to such time, and is reasonably promptly followed by the
appropriate legal action to exercise such right by the party serving such
notice.

                  7.14 FURTHER ASSURANCES. From and after the date of this
Agreement, upon the request of any Purchaser or the Company or as required by
applicable law, the Company and the Purchasers shall execute, file and deliver
with the appropriate authorities such instruments, documents and other writings
(including the Amended Articles) as may be reasonably necessary or desirable to
confirm and carry out and to effectuate fully the intent and purposes of this
Agreement.

                  7.15 COSTS, EXPENSES AND TAXES. Subject to consummation of the
Closing by the Lead Purchaser, the Company agrees to pay at the Closing in
connection with the preparation, execution and delivery of this Agreement, the
legal fees of (i) Wollmuth Maher & Deutsch LLP, special counsel for the
Purchasers, in an amount equal to US$35,000 (which amount may at such counsel's
option be payable in up to 16,643 Shares); (ii) Sharir, Shiv, Friedman & Co. Law
Offices, Israeli counsel for the Purchasers, in an amount up to US$11,000; and
(iii) Testa, Hurwitz & Thibeault, LLP, intellectual property counsel for the
Purchasers, in an amount up to US$5,000, plus the reasonable expenses and
disbursements of each of the foregoing not expected to exceed US$5,000
(excluding extraordinary expenses such as any requirement to travel to Israel).
In addition, the Company shall pay any and all stamp, or other similar taxes
payable or determined to be payable in connection with the execution and
delivery of this Agreement, the issuance of the Shares and the other instruments
and documents to be delivered hereunder or thereunder, and agrees to save the
Purchasers harmless from and against any and all liabilities with respect to or
resulting from any delay in paying or omission to pay such taxes.

                  If the Closing with the Lead Purchaser is not consummated
after this Agreement has been executed, on account of the Company's failure to
close in breach of this Agreement, the Company shall, without limiting any other
right or remedy of the Purchasers to enforce the provisions of this Agreement,
pay the reasonable out-of-pocket expenses of the Purchasers and their counsel,
not to exceed US$51,000.

                  7.16 COUNTERPARTS. This Agreement may be executed in one or
more counterparts, and by different parties hereto on separate counterparts,
each of which shall be deemed an original, but all of which together shall
constitute one and the same instrument.

                  7.17 USE OF DEFINITIONS; GENDER. Any definitions used herein
defined in the plural shall be deemed to include the singular as the context may
require and any definitions used

                                       24
<Page>

herein defined in the singular shall be deemed to include the plural as the
context may require. Wherever reference is made herein to the male, female or
neuter genders, such reference shall be deemed to include any of the other
genders as the context may require.

                  7.18 JURISDICTION AND SERVICE OF PROCESS. Any legal action or
proceeding with respect to this Agreement may be brought in the courts of the
State of New York or of the United States of America for the District of New
York. By execution and delivery of this Agreement, each of the parties hereto
accepts for itself and in respect of its property, generally and
unconditionally, the jurisdiction of the aforesaid courts. Each of the parties
hereto irrevocably consents to the service of process of any of the
aforementioned courts in any such action or proceeding by the mailing of copies
thereof by certified mail, postage prepaid, to the party at its address set
forth in Section 7.1 hereof.

                  7.19 PUBLICITY. No party shall issue any press releases or
otherwise make any public statement with respect to the transactions
contemplated by this Agreement without the prior written consent of the other
party, except as may be required by law; provided, that, the Company and the
Lead Purchaser may each issue such press release or public statement, subject to
prior coordination with each other.

                   Counterpart Signature Pages Begin Next Page

                                       25
<Page>

                  IN WITNESS WHEREOF, the parties hereto have executed this
Series A Preferred Share Purchase Agreement or caused this Agreement to be
executed by their duly authorized representatives, as of the date first written
above.

                                       GIVEN IMAGING LTD.

                                       By: /s/ Ami Erel    /s/ Dr. Gavriel Meron
                                          --------------------------------------
                                          Ami Erel,        Dr. Gavriel D. Meron,
                                          Chairman of      President and Chief
                                          The Board        Executive Officer

            Purchasers Counterpart Signature Pages Begin on Next Page

                                       26
<Page>

COUNTERPART SIGNATURE PAGE FOR PURCHASERS

                  The undersigned hereby agrees to become a party to that
certain Preferred Shares Purchase Agreement dated as of September ___, 2000 (the
"Agreement") among Given Imaging Ltd. (the "Company") and others set forth on
the signature pages thereto. From and after the undersigned's execution and
delivery and the Company's acceptance of this Counterpart Signature Page, the
undersigned shall be a party to the Agreement and the Preferred Shares purchased
by the undersigned shall be deemed to be "Shares" for all purposes of the
Agreement.

------------------------------------
Printed Name of Purchaser

------------------------------------
Signature of Purchaser

                                     Investment Amount:
                                                       -------------------------

                                     Number of Shares:
                                                       -------------------------

                                     By:
                                        ----------------------------------------

                                     Title:
                                           -------------------------------------

                                     Address:
                                             -----------------------------------

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

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

                                     Date: ______________,2000

Agreed and accepted to as to
________ shares at US$2.103 per share:

GIVEN IMAGING LTD.

By:
   -----------------------------------
Name:
Title:

Date: _____________, 2000

                                       27

<Page>

COUNTERPART SIGNATURE PAGE FOR PURCHASERS

                  The undersigned hereby agrees to become a party to that
certain Preferred Shares Purchase Agreement dated as of September 15, 2000 (the
"Agreement") among Given Imaging Ltd. (the "Company") and others set forth on
the signature pages thereto. From and after the undersigned's execution and
delivery and the Company's acceptance of this Counterpart Signature Page, the
undersigned shall be a party to the Agreement and the Preferred Shares purchased
by the undersigned shall be deemed to be "Shares" for all purposes of the
Agreement.

OrbiMed Associates, LLC
------------------------------------
Printed Name of Purchaser

/s/ JONATHAN SILVERSTEIN
------------------------------------
Signature of Purchaser

                                     Investment Amount: $358,883.24
                                                       -------------------------

                                     Number of Shares:   170,653
                                                       -------------------------

                                     By: JONATHAN SILVERSTEIN
                                        ----------------------------------------

                                     Title:
                                           -------------------------------------

                                     Address: 767 Third Ave.
                                             -----------------------------------
                                              New York, NY 10017
                                     -----------------------------------------

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

                                     Date: September 15, 2000

Agreed and accepted to as to
170,653 shares at US$2.103 per share:

GIVEN IMAGING LTD.

By: /s/ Zvi D. Ben David
   -----------------------------------
Name:   Zvi D. Ben David
Title:  CFO

Date: September 15, 2000

                                       28

<Page>

COUNTERPART SIGNATURE PAGE FOR PURCHASERS

                  The undersigned hereby agrees to become a party to that
certain Preferred Shares Purchase Agreement dated as of September 15, 2000 (the
"Agreement") among Given Imaging Ltd. (the "Company") and others set forth on
the signature pages thereto. From and after the undersigned's execution and
delivery and the Company's acceptance of this Counterpart Signature Page, the
undersigned shall be a party to the Agreement and the Preferred Shares purchased
by the undersigned shall be deemed to be "Shares" for all purposes of the
Agreement.

EATON VANCE WW HEALTH SCIENCES
------------------------------------
Printed Name of Purchaser

/s/ JONATHAN SILVERSTEIN
------------------------------------
Signature of Purchaser

                                     Investment Amount:  $1,898,750.22
                                                       -------------------------

                                     Number of Shares:      902,877
                                                       -------------------------

                                     By: JONATHAN SILVERSTEIN
                                        ----------------------------------------

                                     Title:
                                           -------------------------------------

                                     Address: 767 THIRD AVE.
                                             -----------------------------------
                                              NEW YORK, NY 10017
                                     -----------------------------------------

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

                                     Date: September 15, 2000

Agreed and accepted to as to
902,877 shares at US$2.103 per share:

GIVEN IMAGING LTD.

By: /s/ Zvi D. Ben David
   -----------------------------------
Name:   Zvi D. Ben David
Title:  CFO

Date: September 15, 2000

                                       29

<Page>

COUNTERPART SIGNATURE PAGE FOR PURCHASERS

                  The undersigned hereby agrees to become a party to that
certain Preferred Shares Purchase Agreement dated as of September 15, 2000 (the
"Agreement") among Given Imaging Ltd. (the "Company") and others set forth on
the signature pages thereto. From and after the undersigned's execution and
delivery and the Company's acceptance of this Counterpart Signature Page, the
undersigned shall be a party to the Agreement and the Preferred Shares purchased
by the undersigned shall be deemed to be "Shares" for all purposes of the
Agreement.

FINSBURY WORLDWIDE PHARMACEUTICAL TRUST
---------------------------------------
Printed Name of Purchaser

/s/ JONATHAN SILVERSTEIN
------------------------------------
Signature of Purchaser

                                     Investment Amount:  $1,898,750.22
                                                       -------------------------

                                     Number of Shares:      902,877
                                                       -------------------------

                                     By: JONATHAN SILVERSTEIN
                                        ----------------------------------------

                                     Title:
                                           -------------------------------------

                                     Address: 767 THIRD AVE.
                                             -----------------------------------
                                              NEW YORK, NY 10017
                                     -----------------------------------------

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

                                     Date: September 15, 2000

Agreed and accepted to as to
902,877 shares at US$2.103 per share:

GIVEN IMAGING LTD.

By: /s/ Zvi D. Ben David
   -----------------------------------
Name:   Zvi D. Ben David
Title:  CFO

Date: September 15, 2000

                                       30

<Page>

COUNTERPART SIGNATURE PAGE FOR PURCHASERS

                  The undersigned hereby agrees to become a party to that
certain Preferred Shares Purchase Agreement dated as of September 15, 2000 (the
"Agreement") among Given Imaging Ltd. (the "Company") and others set forth on
the signature pages thereto. From and after the undersigned's execution and
delivery and the Company's acceptance of this Counterpart Signature Page, the
undersigned shall be a party to the Agreement and the Preferred Shares purchased
by the undersigned shall be deemed to be "Shares" for all purposes of the
Agreement.

CADUCEUS PRIVATE INVESTMENTS, LP
------------------------------------
Printed Name of Purchaser

/s/ JONATHAN SILVERSTEIN
------------------------------------
Signature of Purchaser

                                     Investment Amount:  $9,641,116.74
                                                       -------------------------

                                     Number of Shares:    4,584,459
                                                       -------------------------

                                     By: JONATHAN SILVERSTEIN
                                        ----------------------------------------

                                     Title:
                                           -------------------------------------

                                     Address: 767 THIRD AVE.
                                             -----------------------------------
                                              NEW YORK, NY 10017
                                     -----------------------------------------

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

                                     Date: September 15, 2000

Agreed and accepted to as to
4,584,459 shares at US$2.103 per share:

GIVEN IMAGING LTD.

By: /s/ Zvi D. Ben David
   -----------------------------------
Name:   Zvi D. Ben David
Title:  CFO

Date: September 15, 2000

                                       31

<Page>

COUNTERPART SIGNATURE PAGE FOR PURCHASERS

                  The undersigned hereby agrees to become a party to that
certain Preferred Shares Purchase Agreement dated as of September 15, 2000 (the
"Agreement") among Given Imaging Ltd. (the "Company") and others set forth on
the signature pages thereto. From and after the undersigned's execution and
delivery and the Company's acceptance of this Counterpart Signature Page, the
undersigned shall be a party to the Agreement and the Preferred Shares purchased
by the undersigned shall be deemed to be "Shares" for all purposes of the
Agreement.

AUBER INVESTMENTS LTD
------------------------------------
Printed Name of Purchaser

[ILLEGIBLE]
------------------------------------
Signature of Purchaser

                                     Investment Amount:  $1,000,000
                                                       -------------------------

                                     Number of Shares:      475,511
                                                       -------------------------

                                     By:
                                        ----------------------------------------

                                     Title:  Assist. Treas.
                                           -------------------------------------

                                     Address: Tropic Isle Bldg
                                             -----------------------------------
                                              ROAD TOWN, TORTOLA BVI
                                     -----------------------------------------

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

                                     Date: September 15, 2000

Agreed and accepted to as to
475,511 shares at US$2.103 per share:

GIVEN IMAGING LTD.

By: /s/ Gavriel Meron
   -----------------------------------
Name:   Dr. Gavriel Meron
Title:  President & CEO

Date: September 15, 2000

                                       32

<Page>

COUNTERPART SIGNATURE PAGE FOR PURCHASERS

                  The undersigned hereby agrees to become a party to that
certain Preferred Shares Purchase Agreement dated as of September 15, 2000 (the
"Agreement") among Given Imaging Ltd. (the "Company") and others set forth on
the signature pages thereto. From and after the undersigned's execution and
delivery and the Company's acceptance of this Counterpart Signature Page, the
undersigned shall be a party to the Agreement and the Preferred Shares purchased
by the undersigned shall be deemed to be "Shares" for all purposes of the
Agreement.

WOLLMUTH MAHER & DEUTSCH LLP
------------------------------------
Printed Name of Purchaser

/s/ [ILLEGIBLE] MEMBER
------------------------------------
Signature of Purchaser

                                     Investment Amount: $35,000
                                                       -------------------------

                                     Number of Shares:   16,643
                                                       -------------------------

                                     By:  /s/ [ILLEGIBLE]
                                        ----------------------------------------

                                     Title:  MEMBER
                                           -------------------------------------

                                     Address: Wollmuth Maher & Deutsch LLP
                                             -----------------------------------
                                              500 Fifth Avenue, 12th Floor
                                     -----------------------------------------
                                              New York, NY 10110
                                     -----------------------------------------

                                     Date: September 15, 2000

Agreed and accepted to as to
16,643 shares at US$2.103 per share:

GIVEN IMAGING LTD.

By: /s/ Gavriel Meron
   -----------------------------------
Name:   Dr. Gavriel Meron
Title:  President & CEO

Date: September 15, 2000

                                       33

<Page>

COUNTERPART SIGNATURE PAGE FOR PURCHASERS

                  The undersigned hereby agrees to become a party to that
certain Preferred Shares Purchase Agreement dated as of September 15, 2000 (the
"Agreement") among Given Imaging Ltd. (the "Company") and others set forth on
the signature pages thereto. From and after the undersigned's execution and
delivery and the Company's acceptance of this Counterpart Signature Page, the
undersigned shall be a party to the Agreement and the Preferred Shares purchased
by the undersigned shall be deemed to be "Shares" for all purposes of the
Agreement.

RDC - Rafael Development Corporation Ltd.
-----------------------------------------
Printed Name of Purchaser

/s/ Reuben Baron
------------------------------------
Signature of Purchaser

                                     Investment Amount: US$ 6,000,000
                                                       -------------------------

                                     Number of Shares:  2,853,067
                                                       -------------------------

                                     By:
                                        ----------------------------------------

                                     Title:
                                           -------------------------------------

                                     Address: 14 Beit Hashoeva Lane,
                                             -----------------------------------
                                              Tel Aviv 65814,
                                     -----------------------------------------
                                              Israel.
                                     -----------------------------------------

                                     Date: October 3, 2000

Agreed and accepted to as to
2,853,067 shares at US$2.103 per share:

GIVEN IMAGING LTD.

By: /s/ Zvi Ben David
   -----------------------------------
Name:   Zvi Ben David
Title:  CFO

Date: October 3, 2000

                                       34

<Page>

COUNTERPART SIGNATURE PAGE FOR PURCHASERS

                  The undersigned hereby agrees to become a party to that
certain Preferred Shares Purchase Agreement dated as of September 15, 2000 (the
"Agreement") among Given Imaging Ltd. (the "Company") and others set forth on
the signature pages thereto. From and after the undersigned's execution and
delivery and the Company's acceptance of this Counterpart Signature Page, the
undersigned shall be a party to the Agreement and the Preferred Shares purchased
by the undersigned shall be deemed to be "Shares" for all purposes of the
Agreement.

Discount Investment Corporation Ltd.
------------------------------------
Printed Name of Purchaser

/s/ [ILLEGIBLE] [ILLEGIBLE]
----------------------------------------
DISCOUNT INVESTMENT CORPORATION LTD.
Signature of Purchaser

                                     Investment Amount: US$ 1,821,666
                                                       -------------------------

                                     Number of Shares:  866,222
                                                       -------------------------

                                     By:
                                        ----------------------------------------

                                     Title:
                                           -------------------------------------

                                     Address: 14 Beit Hashoeva Lane,
                                             -----------------------------------
                                              Tel Aviv 65814,
                                     -----------------------------------------
                                              Israel.
                                     -----------------------------------------

                                     Date: October 3, 2000

Agreed and accepted to as to
866,222 shares at US$2.103 per share:

GIVEN IMAGING LTD.

By: /s/ Zvi Ben David
   -----------------------------------
Name:   Zvi Ben David
Title:  CFO

Date: October 3, 2000

                                       35

<Page>

COUNTERPART SIGNATURE PAGE FOR PURCHASERS

                  The undersigned hereby agrees to become a party to that
certain Preferred Shares Purchase Agreement dated as of September 15, 2000 (the
"Agreement") among Given Imaging Ltd. (the "Company") and others set forth on
the signature pages thereto. From and after the undersigned's execution and
delivery and the Company's acceptance of this Counterpart Signature Page, the
undersigned shall be a party to the Agreement and the Preferred Shares purchased
by the undersigned shall be deemed to be "Shares" for all purposes of the
Agreement.

Elron Electronic Industries Ltd.
------------------------------------
Printed Name of Purchaser

/s/ Ami Erel    /s/ Doron Birger
------------------------------------
ELRON ELECTRONIC INDUSTRIES LTD.
Signature of Purchaser

                                     Investment Amount: US$ 910,834
                                                       -------------------------

                                     Number of Shares:  433,112
                                                       -------------------------

                                     By: /s/ [ILLEGIBLE]     /s/ [ILLEGIBLE]
                                        ----------------------------------------

                                     Title: CEO                  CFO
                                           -------------------------------------

                                     Address: Advanced Technology Center,
                                                 Building 3,
                                             -----------------------------------
                                              Haifa,
                                     -----------------------------------------
                                              Israel.
                                     -----------------------------------------

                                     Date: October 3, 2000

Agreed and accepted to as to
433,112 shares at US$2.103 per share:

GIVEN IMAGING LTD.

By: /s/ Zvi Ben David
   -----------------------------------
Name:   Zvi Ben David
Title:  CFO

Date: October 3, 2000

                                       36

<Page>

COUNTERPART SIGNATURE PAGE FOR PURCHASERS

                  The undersigned hereby agrees to become a party to that
certain Preferred Shares Purchase Agreement dated as of September 15, 2000 (the
"Agreement") among Given Imaging Ltd. (the "Company") and others set forth on
the signature pages thereto. From and after the undersigned's execution and
delivery and the Company's acceptance of this Counterpart Signature Page, the
undersigned shall be a party to the Agreement and the Preferred Shares purchased
by the undersigned shall be deemed to be "Shares" for all purposes of the
Agreement.

Amos Horev (Professor)
------------------------------------
Printed Name of Purchaser

/s/ A. Horev
------------------------------------
Signature of Purchaser

                                     Investment Amount: US$ 50,000
                                                       -------------------------

                                     Number of Shares:  23,776
                                                       -------------------------

                                     By:
                                        ----------------------------------------

                                     Title:
                                           -------------------------------------

                                     Address: 8 Ha'Gefen St.
                                             -----------------------------------
                                              Ramat Hasharon, 47254, Israel
                                     -----------------------------------------

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

                                     Date: 4.10.2000, 2000

Agreed and accepted to as to
23,776 shares at US$2.103 per share:

GIVEN IMAGING LTD.

By: /s/ Zvi Ben David
   -----------------------------------
Name:   Zvi Ben David
Title:  CFO

Date: October 3, 2000

                                       37

<Page>

COUNTERPART SIGNATURE PAGE FOR PURCHASERS

                  The undersigned hereby agrees to become a party to that
certain Preferred Shares Purchase Agreement dated as of September 15, 2000 (the
"Agreement") among Given Imaging Ltd. (the "Company") and others set forth on
the signature pages thereto. From and after the undersigned's execution and
delivery and the Company's acceptance of this Counterpart Signature Page, the
undersigned shall be a party to the Agreement and the Preferred Shares purchased
by the undersigned shall be deemed to be "Shares" for all purposes of the
Agreement.

Adiger Technologies Ltd.
------------------------------------
Printed Name of Purchaser

/s/ [ILLEGIBLE]
------------------------------------
Signature of Purchaser

                                     Investment Amount: US$ 500,000
                                                       -------------------------

                                     Number of Shares:  237,756
                                                       -------------------------

                                     By: /s/ Ron Ben-Or       /s/ Haim Cohen
                                        ----------------------------------------

                                     Title:
                                           -------------------------------------

                                     Address: C/O Suari & Co Offices,
                                             -----------------------------------
                                              Lincoln Street, 20,
                                     -----------------------------------------
                                              Tel Aviv, 67134, Israel
                                     -----------------------------------------

                                     Date: October 8, 2000

Agreed and accepted to as to
237,756 shares at US$2.103 per share:

GIVEN IMAGING LTD.

By: /s/ Zvi Ben David
   -----------------------------------
Name:   Zvi Ben David
Title:  CFO

Date: October 3, 2000

                                       38

<Page>

COUNTERPART SIGNATURE PAGE FOR PURCHASERS

                  The undersigned hereby agrees to become a party to that
certain Preferred Shares Purchase Agreement dated as of September 15, 2000 (the
"Agreement") among Given Imaging Ltd. (the "Company") and others set forth on
the signature pages thereto. From and after the undersigned's execution and
delivery and the Company's acceptance of this Counterpart Signature Page, the
undersigned shall be a party to the Agreement and the Preferred Shares purchased
by the undersigned shall be deemed to be "Shares" for all purposes of the
Agreement.

Ron Lubash
------------------------------------
Printed Name of Purchaser

/s/ [ILLEGIBLE]
------------------------------------
Signature of Purchaser

                                     Investment Amount: US$ 60,000
                                                       -------------------------

                                     Number of Shares:  28,531
                                                       -------------------------

                                     Address: No. 1 Habrosh St.
                                             -----------------------------------
                                              Ra'anana Israel, 43573
                                     -----------------------------------------

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

                                     Date: October 3, 2000

Agreed and accepted to as to
28,531 shares at US$2.103 per share:

GIVEN IMAGING LTD.

By: /s/ Zvi Ben David
   -----------------------------------
Name:   Zvi Ben David
Title:  CFO

Date: October 3, 2000

                                       39

<Page>

COUNTERPART SIGNATURE PAGE FOR PURCHASERS

                  The undersigned hereby agrees to become a party to that
certain Preferred Shares Purchase Agreement dated as of September 15, 2000 (the
"Agreement") among Given Imaging Ltd. (the "Company") and others set forth on
the signature pages thereto. From and after the undersigned's execution and
delivery and the Company's acceptance of this Counterpart Signature Page, the
undersigned shall be a party to the Agreement and the Preferred Shares purchased
by the undersigned shall be deemed to be "Shares" for all purposes of the
Agreement.

Securfin S.p.A.
------------------------------------
Printed Name of Purchaser

/s/ [ILLEGIBLE]
------------------------------------
Signature of Purchaser

                                     Investment Amount: US$ 400,000
                                                       -------------------------

                                     Number of Shares:  190,204
                                                       -------------------------

                                     By: /s/ [ILLEGIBLE]
                                        ----------------------------------------

                                     Title:  Chairman
                                           -------------------------------------

                                     Address: Via Durini 28
                                             -----------------------------------
                                              20122 Milano
                                     -----------------------------------------
                                              Italy
                                     -----------------------------------------

                                     Date: October 3, 2000

Agreed and accepted to as to
190,204 shares at US$2.103 per share:

GIVEN IMAGING LTD.

By: /s/ Zvi Ben David
   -----------------------------------
Name:   Zvi Ben David
Title:  CFO

Date: October 30, 2000

                                       40

<Page>

COUNTERPART SIGNATURE PAGE FOR PURCHASERS

                  The undersigned hereby agrees to become a party to that
certain Preferred Shares Purchase Agreement dated as of September 15, 2000 (the
"Agreement") among Given Imaging Ltd. (the "Company") and others set forth on
the signature pages thereto. From and after the undersigned's execution and
delivery and the Company's acceptance of this Counterpart Signature Page, the
undersigned shall be a party to the Agreement and the Preferred Shares purchased
by the undersigned shall be deemed to be "Shares" for all purposes of the
Agreement.

Gary S. Weinstein
------------------------------------
Printed Name of Purchaser

/s/ [ILLEGIBLE]
------------------------------------
Signature of Purchaser

                                     Investment Amount: US$ 100,000
                                                       -------------------------

                                     Number of Shares:  47,551
                                                       -------------------------

                                     Address: 275 Round Hill Road,
                                             -----------------------------------
                                              Greenwich, CT 06831
                                     -----------------------------------------

                                     Date: September 22, 2000

Agreed and accepted to as to
47,551 shares at US$2.103 per share:

GIVEN IMAGING LTD.

By: /s/ Zvi Ben David
   -----------------------------------
Name:   Zvi Ben David
Title:  CFO

Date: October 3, 2000

                                       41

<Page>

COUNTERPART SIGNATURE PAGE FOR PURCHASERS

                  The undersigned hereby agrees to become a party to that
certain Preferred Shares Purchase Agreement dated as of September 15, 2000 (the
"Agreement") among Given Imaging Ltd. (the "Company") and others set forth on
the signature pages thereto. From and after the undersigned's execution and
delivery and the Company's acceptance of this Counterpart Signature Page, the
undersigned shall be a party to the Agreement and the Preferred Shares purchased
by the undersigned shall be deemed to be "Shares" for all purposes of the
Agreement.

Harvey Krueger
------------------------------------
Printed Name of Purchaser

/s/ Harvey Krueger
------------------------------------
Signature of Purchaser

                                     Investment Amount: US$ 60,000
                                                       -------------------------

                                     Number of Shares:  28,531
                                                       -------------------------

                                     Address: 201 East 80th St., Apartment 19
                                             -----------------------------------
                                              New York, NY 10021
                                     -----------------------------------------

                                     Date: October 3, 2000

Agreed and accepted to as to
28,531 shares at US$2.103 per share:

GIVEN IMAGING LTD.

By: /s/ Zvi Ben David
   -----------------------------------
Name:   Zvi Ben David
Title:  CFO

Date: October 3, 2000

                                       42

<Page>

COUNTERPART SIGNATURE PAGE FOR PURCHASERS

                  The undersigned hereby agrees to become a party to that
certain Preferred Shares Purchase Agreement dated as of September 15, 2000 (the
"Agreement") among Given Imaging Ltd. (the "Company") and others set forth on
the signature pages thereto. From and after the undersigned's execution and
delivery and the Company's acceptance of this Counterpart Signature Page, the
undersigned shall be a party to the Agreement and the Preferred Shares purchased
by the undersigned shall be deemed to be "Shares" for all purposes of the
Agreement.

David Gruber
------------------------------------
Printed Name of Purchaser

/s/ David Gruber
------------------------------------
Signature of Purchaser

                                     Investment Amount: US$ 50,000
                                                       -------------------------

                                     Number of Shares:  23,776
                                                       -------------------------

                                     Address: 4 Myron Court.
                                             -----------------------------------
                                              Teaneck, NJ 07666
                                     -----------------------------------------

                                     Date: September 23, 2000

Agreed and accepted to as to
23,776 shares at US$2.103 per share:

GIVEN IMAGING LTD.

By: /s/ Zvi Ben David
   -----------------------------------
Name:   Zvi Ben David
Title:  CFO

Date: October 3, 2000

                                       43

<Page>

COUNTERPART SIGNATURE PAGE FOR PURCHASERS

                  The undersigned hereby agrees to become a party to that
certain Preferred Shares Purchase Agreement dated as of September 15, 2000 (the
"Agreement") among Given Imaging Ltd. (the "Company") and others set forth on
the signature pages thereto. From and after the undersigned's execution and
delivery and the Company's acceptance of this Counterpart Signature Page, the
undersigned shall be a party to the Agreement and the Preferred Shares purchased
by the undersigned shall be deemed to be "Shares" for all purposes of the
Agreement.

Jason Fertig
------------------------------------
Printed Name of Purchaser

/s/ Jason Fertig
------------------------------------
Signature of Purchaser

                                     Investment Amount: US$ 40,000
                                                       -------------------------

                                     Number of Shares: 19,020
                                                       -------------------------

                                     Address: 240 West 98th Street, Apartment 3F
                                             -----------------------------------
                                              New York, NY 10025
                                     -----------------------------------------

                                     Date: September 22, 2000

Agreed and accepted to as to
19,020 shares at US$2.103 per share:

GIVEN IMAGING LTD.

By: /s/ Zvi Ben David
   -----------------------------------
Name:   Zvi Ben David
Title:  CFO

Date: September 26, 2000

                                       44

<Page>

COUNTERPART SIGNATURE PAGE FOR PURCHASERS

                  The undersigned hereby agrees to become a party to that
certain Preferred Shares Purchase Agreement dated as of September 15, 2000 (the
"Agreement") among Given Imaging Ltd. (the "Company") and others set forth on
the signature pages thereto. From and after the undersigned's execution and
delivery and the Company's acceptance of this Counterpart Signature Page, the
undersigned shall be a party to the Agreement and the Preferred Shares purchased
by the undersigned shall be deemed to be "Shares" for all purposes of the
Agreement.

Michael I. Brill
------------------------------------
Printed Name of Purchaser

/s/ Michael I. Brill
------------------------------------
Signature of Purchaser

                                     Investment Amount: US$ 15,000
                                                       -------------------------

                                     Number of Shares:  7,133
                                                       -------------------------

                                     Address: 144 East 84th St., Apartment 8B
                                             -----------------------------------
                                              New York, NY 10028
                                     -----------------------------------------

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

                                     Date: September 22, 2000

Agreed and accepted to as to
7,133 shares at US$2.103 per share:

GIVEN IMAGING LTD.

By: /s/ Zvi Ben David
   -----------------------------------
Name:   Zvi Ben David
Title:  CFO

Date: September 26, 2000

                                       45

<Page>

COUNTERPART SIGNATURE PAGE FOR PURCHASERS

                  The undersigned hereby agrees to become a party to that
certain Preferred Shares Purchase Agreement dated as of September 15, 2000 (the
"Agreement") among Given Imaging Ltd. (the "Company") and others set forth on
the signature pages thereto. From and after the undersigned's execution and
delivery and the Company's acceptance of this Counterpart Signature Page, the
undersigned shall be a party to the Agreement and the Preferred Shares purchased
by the undersigned shall be deemed to be "Shares" for all purposes of the
Agreement.

Alexis D. Lasser
------------------------------------
Printed Name of Purchaser

/s/ Alexis D. Lasser
------------------------------------
Signature of Purchaser

                                     Investment Amount: US$ 10,000
                                                       -------------------------

                                     Number of Shares: 4,755
                                                       -------------------------

                                     Address: 160 West 66th St., Apartment 28F
                                             -----------------------------------
                                              New York, NY 10023
                                     -----------------------------------------

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

                                     Date: September 22, 2000

Agreed and accepted to as to
4,755 shares at US$2.103 per share:

GIVEN IMAGING LTD.

By: /s/ Zvi Ben David
   -----------------------------------
Name:   Zvi Ben David
Title:  CFO

Date: September 26, 2000

                                       46

<Page>

COUNTERPART SIGNATURE PAGE FOR PURCHASERS

                  The undersigned hereby agrees to become a party to that
certain Preferred Shares Purchase Agreement dated as of September 15, 2000 (the
"Agreement") among Given Imaging Ltd. (the "Company") and others set forth on
the signature pages thereto. From and after the undersigned's execution and
delivery and the Company's acceptance of this Counterpart Signature Page, the
undersigned shall be a party to the Agreement and the Preferred Shares purchased
by the undersigned shall be deemed to be "Shares" for all purposes of the
Agreement.

Rolf Haegler
------------------------------------
Printed Name of Purchaser

/s/ Rolf Haegler
------------------------------------
Signature of Purchaser

                                     Investment Amount: US$ 100,000
                                                       -------------------------

                                     Number of Shares:  47,551
                                                       -------------------------

                                     Address: Chelleraech 19,
                                             -----------------------------------
                                              CH - 5452,
                                     -----------------------------------------
                                              Obersohrdorf,
                                     -----------------------------------------
                                              Switzerland.
                                     -----------------------------------------

                                     Date: August 10, 2000

Agreed and accepted to as to
47,551 shares at US$2.103 per share:

GIVEN IMAGING LTD.

By: /s/ Zvi Ben David
   -----------------------------------
Name:   Zvi Ben David
Title:  CFO

Date: October 3, 2000

                                       47

<Page>

COUNTERPART SIGNATURE PAGE FOR PURCHASERS

                  The undersigned hereby agrees to become a party to that
certain Preferred Shares Purchase Agreement dated as of September 15, 2000 (the
"Agreement") among Given Imaging Ltd. (the "Company") and others set forth on
the signature pages thereto. From and after the undersigned's execution and
delivery and the Company's acceptance of this Counterpart Signature Page, the
undersigned shall be a party to the Agreement and the Preferred Shares purchased
by the undersigned shall be deemed to be "Shares" for all purposes of the
Agreement.

Amedeo Carassai
------------------------------------
Printed Name of Purchaser

/s/ Amedeo Carassai
------------------------------------
Signature of Purchaser

                                     Investment Amount: US$ 50,000
                                                       -------------------------

                                     Number of Shares:  23,776
                                                       -------------------------

                                     By: AMEDEO CARASSAI
                                        ----------------------------------------

                                     Title:
                                           -------------------------------------

                                     Address: Via San Teodoro 34,
                                             -----------------------------------
                                              00186 Roma,
                                     -----------------------------------------
                                              Italy
                                     -----------------------------------------

                                     Date: October 3, 2000

Agreed and accepted to as to
23,776 shares at US$2.103 per share:

GIVEN IMAGING LTD.

By: /s/ Zvi Ben David
   -----------------------------------
Name:   Zvi Ben David
Title:  CFO

Date: October 30, 2000

                                       48<Page>

                                                                   EXHIBIT 10.10

EXECUTION COPY -

                            INVESTOR RIGHTS AGREEMENT

      INVESTOR RIGHTS AGREEMENT made as of September 15, 2000 by and among (i)
Given Imaging Ltd., an Israeli corporation (the "Company"), (ii) the Purchasers
listed on Exhibit A (the "Purchasers") of that certain Preferred Share Purchase
Agreement of even date herewith (the "Series A Purchase Agreement"), (iii) the
existing holders of Ordinary Shares in the Company listed on EXHIBIT A hereto
(the "Ordinary Shareholders"), and (iv) the Bridge Purchasers (as defined in the
Series A Purchase Agreement). Such parties may become party to this Agreement
upon executing and delivering signature pages hereto no later than October 8,
2000, except that the Bridge Purchasers may become party to this Agreement upon
executing and delivering signature pages hereto no later than October 30, 2000.
The Purchasers, the Ordinary Shareholders and the Bridge Purchasers may be
referred to herein individually as an "Investor," and collectively as the
"Investors". An Investor who is both a Purchaser and an Ordinary Shareholder
will be deemed, for the purpose of this Agreement, as a Purchaser with respect
to the Series A Shares held thereby, and as an Ordinary Shareholders with
respect to the Ordinary Shares held thereby at the date hereof.

      WHEREAS, the Company proposes to issue and sell an aggregate of up to
11,911,557 Series A Convertible Preferred Shares, par value NIS 0.01 per share,
to the Purchasers pursuant to the Series A Purchase Agreement and additional
3,138,876 of such shares (collectively, the "Series A Shares"), to the Bridge
Purchasers pursuant to the Bridge Agreements (as defined in the Series A
Purchase Agreement);

      WHEREAS, as a condition to entering into the Series A Purchase Agreement,
the Purchasers have requested that the Company extend to them registration
rights and certain other rights and covenants as set forth herein;

      WHEREAS, as a condition to approving the Company's entering into the
Series A Purchase Agreement, the Ordinary Shareholders have requested that the
Company extend to them registration rights and certain other rights and
covenants as set forth herein

      WHEREAS, the Board of Directors of the Company has determined that it is
in the best interests of the Company that the Company enter into this Agreement;

      NOW, THEREFORE, in consideration of the covenants and agreements set forth
herein and for other good and valuable consideration, the receipt and
sufficiency of which are hereby mutually acknowledged, the parties hereto
covenant and agree as follows:

                               GENERAL PROVISIONS

      1.1 SHARES SUBJECT TO THIS AGREEMENT. The Investors expressly agree that
the terms and restrictions of this Agreement shall apply to all shares of the
Company's share capital which any of them now owns or hereafter acquires by any
means, including without limitation by purchase, assignment or operation of law,
or as a result of any share dividend, share split, reorganization,
reclassification, whether voluntary or involuntary, or other similar
transaction, and to any shares of the Company's share capital of any successor
in interest of the Company,

<Page>

whether by sale, merger, consolidation or other similar transaction, or by
purchase, assignment or operation of law (the "Shares").

      1.2 NO PARTNERSHIP RELATIONSHIP. Notwithstanding, but not in limitation
of, any other provision of this Agreement, the parties understand and agree that
the creation, management and operation of the Company shall not create or imply
a general partnership between or among the Investors and shall not make any
Investor the agent or partner of any other Investor for any purpose.

      1.3 CERTAIN DEFINITIONS. As used in this Agreement, the following terms
shall have the following respective meanings:

      "AFFILIATE" has the meaning ascribed to that term in Rule 12b-2 under the
Exchange Act, or any successor rule.

      "AMENDED ARTICLES" shall mean the Amended and Restated Articles of
Association as adopted or as shall be adopted by the Company pursuant to the
Series A Purchase Agreement, as they may hereafter be amended in accordance with
their terms on the date hereof.

      "COMMISSION" shall mean the Securities and Exchange Commission and any
successor agency of the Federal government administering the Securities Act and
the Exchange Act.

      "EXCHANGE ACT" shall mean the Securities Exchange Act of 1934, as amended,
and any similar or successor Federal statute, and the rules and regulations of
the Commission thereunder, all as the same shall be in effect from time to time.

      "INITIAL PUBLIC OFFERING" shall mean the Company's first firm commitment
underwritten public offering of its Ordinary Shares registered under the
Securities Act.

      "ORDINARY SHARES" shall mean (i) the ordinary shares, NIS 0.01 par value
per share, of the Company, (ii) any other capital shares of the Company, however
designated, authorized on or after the date hereof, which shall neither be
limited to a fixed sum or percentage of par value in respect of the rights of
the holders thereof to participate in dividends nor entitled to a preference
prior or equal to any class of preferred shares of the Company in the
distribution of assets upon the voluntary or involuntary liquidation,
dissolution or winding up of the Company; and (iii) any other securities into
which or for which any of the securities described in (i) or (ii) may be
converted or exchanged pursuant to any recapitalization, reorganization, merger,
consolidation, sale of assets or other similar event.

      "ORDINARY REGISTRABLE SECURITIES" shall mean Registrable Securities (other
than Registrable Securities as defined in clauses (i) or (ii) in the definition
of Registrable Securities) held by the Ordinary Shareholders on the date hereof.

      "PERSON" means an individual, corporation, partnership, joint venture,
trust or unincorporated organization, or a government or any agency or political
subdivision thereof.

                                                                               2
<Page>

      "QUALIFIED PUBLIC OFFERING" shall mean a public offering of Ordinary
Shares of the Company, pursuant to a registration statement filed with the
Commission under the Securities Act on Form F-1 or its then equivalent, in which
(i) the aggregate gross proceeds to the Company equals or exceeds US$30,000,000
at a pre-money valuation of the Company of not less than US$150,000,000 pursuant
to which the Ordinary Shares are listed for trading on a national US stock
exchange or over-the-counter market.

      The terms "REGISTER", "REGISTERED" and "REGISTRATION" shall refer to a
registration effected by preparing and filing a registration statement in
compliance with the Securities Act and applicable rules and regulations
thereunder, and the declaration or ordering of the effectiveness of such
registration statement, or, as the context may require, under the Exchange Act
or applicable state securities laws.

      "REGISTRABLE SECURITIES" shall mean (i) Ordinary Shares or other
securities issued or issuable pursuant to the conversion of the Series A
Preferred Shares; (ii) Ordinary Shares or other securities issued or issuable
with respect to the Series A Shares by reason of any share split, share
dividend, recapitalization, reorganization, merger, consolidation, sale of
assets or similar event (a "Reorganization"), (iii) Ordinary Shares held by the
Ordinary Shareholders on the date hereof (and expressly excluding any such
shares acquired by the Ordinary Shareholders after the date hereof other than as
described in the immediately following clause (iv)), (iv) other Ordinary Shares
or other securities issued or issuable with respect to such Ordinary Shares in
connection with any Reorganization, excluding in any event securities which have
been (a) registered under the Securities Act pursuant to an effective
registration statement filed thereunder and disposed of in accordance with the
registration statement covering them, (b) publicly sold pursuant to Rule 144
under the Securities Act, or (c) sold by a person in a transaction in which the
holder's registration rights have not been assigned in accordance with Section
3.14 hereof. Wherever reference is made in this Agreement to a request or
consent of holders of a certain percentage of Registrable Securities, or a right
attaching to holders of Registrable Securities, the determination of such
percentage shall be calculated on the basis of shares of Ordinary Shares issued
or issuable upon conversion of the Series A Preferred Shares, and such right
shall likewise inure to the benefit of the holders of Series A Preferred Shares,
even if such conversion has not been effected.

      "REGISTRATION EXPENSES" shall mean the expenses so described in Section
4.8.

      "SECURITIES ACT" shall mean the Securities Act of 1933, as amended, and
any similar or successor Federal statute, and the rules and regulations of the
Commission thereunder, all as the same shall be in effect from time to time.

      "SERIES A SHARES" and "SERIES A PREFERRED SHARES" shall mean the Series A
Convertible Preferred Shares.

      "SERIES A REGISTRABLE SECURITIES" shall mean Registrable Securities (other
than Ordinary Registrable Securities) held by Purchasers.

      "SELLING EXPENSES" shall mean the expenses so described in Section 3.8.

                                                                               3
<Page>

      "SUBSIDIARY" or "SUBSIDIARIES" shall mean any corporation, partnership,
trust or other entity of which the Company and/or any of its other Subsidiaries
directly or indirectly owns at the time a majority of the outstanding shares of
any class of equity security of such corporation, partnership, trust or other
entity.

      2. PERCENTAGE MAINTENANCE RIGHTS

      2.1 GRANT OF PREEMPTIVE RIGHTS. The Company and the Ordinary Shareholders
hereby grant the holders of Series A Preferred Shares the preemptive percentage
maintenance rights set forth in the Amended Articles, the terms of which are
hereby incorporated herein by reference; PROVIDED that in addition to the
foregoing purchase right OrbiMed Advisors LLC and its Affiliates or funds under
its control (collectively, "OrbiMed"), and no other Series A Holder, shall have
the one-time right to purchase in the Initial Public Offering the greater of (i)
that number of securities issued in the such issuance that would maintain
OrbiMed's proportionate ownership of Ordinary Shares as of the date immediately
preceding such issuance or (ii) 10% of the securities issued in such new
issuance (provided that if, due to interpretations by the staff of the
Commission, such purchase might cause material difficulties in implementing such
Initial Public Offering, the Company and OrbiMed agree to negotiate in good
faith modifications to such purchase right to eliminate such difficulties).

      3. TRANSFER OF REGISTRABLE SECURITIES; REGISTRATION

      3.1 RESTRICTIVE LEGEND. Each certificate representing Series A Shares and
Registrable Securities issued on or after the date hereof ("Restricted
Securities") shall, except as otherwise provided in this Section 3.1 or in
Section 3.2, be stamped or otherwise imprinted with a legend substantially in
the following form (in addition to any legend required under applicable state
securities laws):

      "The securities represented by this certificate have not been registered
      under the Securities Act of 1933 or any other securities laws. These
      securities have been acquired for investment and not with a view to
      distribution or resale. Such securities may not be offered for sale, sold,
      delivered after sale, transferred, pledged or hypothecated in the absence
      of an effective registration statement covering such securities under the
      Securities Act of 1933 and any other applicable securities laws, unless
      the holder shall have obtained an opinion of counsel reasonably
      satisfactory to the corporation that such registration is not required."

      Upon request of a holder of such a certificate, the Company shall remove
the foregoing legend from the certificate or issue to such holder a new
certificate therefor free of any transfer legend, if there is an effective
registration statement covering the securities represented by such certificate
or, with such request, the Company shall have received either the opinion
referred to in Section 3.2(a)(i) or the "no-action" letter referred to in
Section 3.2(a)(ii).

                                                                               4
<Page>

      3.2 NOTICE OF PROPOSED TRANSFER.

      (a) Prior to any proposed sale, pledge, hypothecation or other transfer of
any Restricted Securities (other than under the circumstances described in
Section 3.3, 3.4 or 3.5), the holder thereof shall give written notice to the
Company of its intention to effect such sale, pledge, hypothecation or other
transfer. Each such notice shall describe the manner of the proposed sale,
pledge, hypothecation or other transfer and, if requested by the Company shall
be accompanied by either (i) an opinion of counsel reasonably satisfactory to
the Company to the effect that the proposed sale, pledge, hypothecation or other
transfer may be effected without registration under the Securities Act or (ii) a
"no action" letter from the Commission to the effect that the distribution of
such securities without registration will not result in a recommendation by the
staff of the Commission that action be taken with respect thereto, whereupon the
holder of such share shall be entitled to transfer such share in accordance with
the terms of its notice. Each certificate for Restricted Securities transferred
as above provided shall bear the appropriate restrictive legend set forth in
Section 3.1, except that such certificate shall not bear such legend if (i) such
transfer is in accordance with the provisions of Rule 144 (or any other rule
permitting public sale without registration under the Securities Act) or (ii)
the opinion of counsel or "no-action" letter referred to above is to the further
effect that the transferee and any subsequent transferee (other than an
Affiliate of the Company) would be entitled to transfer such securities in a
public sale without registration under the Securities Act or that such legend is
not required to establish compliance with any provisions of the Securities Act.
Notwithstanding any other provision hereof, the restrictions provided for in
this Section 3.2 shall not apply to securities which are not required to bear
the legend prescribed by Section 3.1 in accordance with the provisions of that
Section. The Company will not unreasonably refuse to accept an opinion of
counsel required hereby signed by the original holder's counsel (it being agreed
that an opinion of Wollmuth Maher & Deutsch LLP shall be considered
satisfactory).

      (b) No such opinion of counsel or "no action" letter from the Commission,
as set forth in Section 3.2(a) above, shall be required in the event of a sale,
pledge, hypothecation or other transfer of any Registrable Securities to (i) any
Affiliate of a Purchaser, including, without limitation, any venture capital
limited partnership now existing or hereafter formed which controls, is
controlled by or is under common control with such Investor; (ii) one or more
partners or members of the transferor (in the case of a transferor that is a
partnership, limited liability company or fund), to a shareholder (in the case
of a transferor that is a corporation) or to a trust grantor (in the case of a
transferor that is a trust) in each case in respect of the beneficial interest
of such partner, shareholder or trust; or (iii) any successors or assigns of any
of the foregoing persons, provided that the transferee agrees in writing to be
subject to this Agreement to the same extent as if such transferee were
originally a signatory.

      3.3 REQUIRED REGISTRATION.

      (a) At any time after the Initial Public Offering, one or more of the
holders of Series A Shares (the "Series A Investors") constituting at least 20%
of the total number of Registrable Securities then outstanding and held by the
Series A Investors (or their "permitted transferees" (as defined in the Amended
Articles)) may request the Company to register for sale under the Securities Act
all or any portion of the shares of Registrable Securities held by such
requesting holder or holders for sale in the manner specified in such notice;
PROVIDED, HOWEVER,

                                                                               5
<Page>

that the proposed offering price of the Registrable Securities held by such
holder or holders must be at least US$5,000,000.

      (b) Following receipt of any notice under this Section 3.3, the Company
shall promptly notify all holders of Registrable Securities from whom notice has
not been received and such holders shall then be entitled within thirty (30)
days after receipt of such notice from the Company to request the Company to
include in the requested registration all or any portion of their shares of
Registrable Securities. The Company shall use its best efforts to register under
the Securities Act, for public sale in accordance with the method of disposition
specified in the notice from requesting holders described in paragraph (a)
above, within 180 days of its receipt of such notice, the number of shares of
Registrable Securities specified in such notice (and in all notices received by
the Company from other holders within thirty (30) days after the receipt of such
notice by such holders). The Company shall be obligated to register the
Registrable Securities pursuant to this Section 3.3 on two (2) occasions only,
provided, however, that such obligation shall be deemed satisfied only when a
registration statement covering all shares of Registrable Securities specified
in notices received as aforesaid (except to the extent reduced by the managing
underwriter, if any, pursuant to Section 3.3(d)), for sale in accordance with
the method of disposition specified by the requesting holders, shall have become
effective and, if such method of disposition is a firm commitment underwritten
public offering, all such shares shall have been sold pursuant thereto.
Notwithstanding anything to the contrary contained herein, no request may be
made under this Section 3.3 during the period commencing 60 days prior to the
Company's good faith estimate of the effectiveness of a registration statement
filed by the Company covering a firm commitment underwritten public offering
(other than pursuant to this Section 3.3) and prior to the later to occur of the
completion of the period of distribution for such offering or 120 days after the
effective date of such registration statement.

      (c) If the holders requesting such registration intend to distribute the
Registrable Securities covered by their request by means of an underwriting,
they shall so advise the Company as a part of their request made pursuant to
this Section 3.3 and the Company shall include such information in the written
notice referred to in paragraph (b) above. The right of any holder to
registration pursuant to this Section 3.3 shall be conditioned upon such
holder's agreeing to participate in such underwriting and to permit inclusion of
such holder's Registrable Securities in the underwriting. If such method of
disposition is an underwritten public offering, the Company may designate the
managing underwriter(s) of such offering, which managing underwriter(s) shall be
reasonably acceptable to the holders of at least a majority in interest of the
shares of Registrable Securities to be sold in such offering. A holder may elect
to include in such underwriting all or a part of the Registrable Securities it
holds.

      (d) A registration statement filed pursuant to this Section 3.3 may,
subject to the following provisions, include (i) Ordinary Shares for sale by the
Company for its own account, (ii) Ordinary Shares held by officers or directors
of the Company and (iii) Ordinary Shares held by persons who by virtue of
agreements with the Company in compliance with the provisions of Section 3.13
hereof are entitled to include such shares in such registration (the "Other
Shareholders"), in each case for sale in accordance with the method of
disposition specified by the requesting holders. If such registration shall be
underwritten, the Company, such officers and directors and Other Shareholders
proposing to distribute their shares through such

                                                                               6
<Page>

underwriting shall enter into an underwriting agreement in customary form with
the representative of the underwriter or underwriters selected for such
underwriting on terms no less favorable to such officers, directors or Other
Shareholders than the terms afforded the holders of Registrable Securities. If
and to the extent that the managing underwriter determines that marketing
factors require a limitation on the number of shares to be included in such
registration, then the Ordinary Shares held by officers or directors (other than
Registrable Securities) of the Company or by Other Shareholders (other than
Registrable Securities) and Ordinary Shares to be sold by the Company for its
own account shall be excluded from such registration to the extent so required
by such managing underwriter, and unless the holders of such shares and the
Company have otherwise agreed in writing, such exclusion shall be applied first
to the Ordinary Shares of the Company to be included for its own account to the
extent required by the managing underwriter, and then to the shares held by the
directors and officers and the Other Shareholders to the extent required by the
managing underwriter, ratable among them on the basis of the respective number
of shares held by each of them. If the managing underwriter determines that
marketing factors require a limitation of the number of Registrable Securities
to be registered under this Section 3.3, then Registrable Securities shall be
excluded in such manner that the securities to be sold shall be allocated among
the selling holders pro rata based on their ownership of Registrable Securities.
In any event all securities to be sold other than Series A Registrable
Securities will be excluded prior to any exclusion of Series A Registrable
Securities. No Registrable Securities or any other security excluded from the
underwriting by reason of the underwriter's marketing limitation shall be
included in such registration. If any holder of Registrable Securities, officer,
director or Other Shareholder who has requested inclusion in such registration
as provided above, disapproves of the terms of the underwriting, such holder of
securities may elect to withdraw therefrom by written notice to the Company and
the managing underwriter. The securities so withdrawn shall also be withdrawn
from registration. Except for registration statements on Form S-4, S-8 or any
comparable form or successor thereto, the Company will not file with the
Commission any other registration statement with respect to its Ordinary Shares,
whether for its own account or that of other shareholders, from the date of
receipt of a notice from requesting holders pursuant to this Section 3.3 until
the completion of the period of distribution of the registration contemplated
thereby or 120 days after the effective date of such registration, whichever is
earlier, if in the good faith judgment of the managing underwriter marketing
factors would materially adversely affect the price of the Registrable
Securities subject to such underwritten registration.

      3.4 REQUIRED REGISTRATION OF ORDINARY SHARES.

      (a) At any time after the earlier of (i) 18 months following the Initial
Public Offering or (ii) the earlier of the completion of the period of
distribution under Section 3.3 or 120 days after the effective date of such
registration under Section 3.3, one or more of the Ordinary Shareholders holding
Registrable Securities constituting at least 20% of the total number of Ordinary
Shares then outstanding may request the Company to register for sale under the
Securities Act all or any portion of the Ordinary Shares held by such requesting
holder or holders for sale in the manner specified in such notice; PROVIDED,
HOWEVER, that the proposed offering price of the Ordinary Shares held by such
holder or holders must be at least US$5,000,000.

      (b) Following receipt of any notice under this Section 3.4, the Company
shall

                                                                               7
<Page>

promptly notify all holders of Registrable Securities from whom notice has
not been received and such holders shall then be entitled within thirty (30)
days after receipt of such notice from the Company to request the Company to
include in the requested registration all or any portion of their Ordinary
Shares. The Company shall use its best efforts to register under the Securities
Act, for public sale in accordance with the method of disposition specified in
the notice from requesting holders described in paragraph (a) above, within 180
days of its receipt of such notice, the number of shares of Registrable
Securities specified in such notice (and in all notices received by the Company
from other holders within thirty (30) days after the receipt of such notice by
such holders). The Company shall be obligated to register the Ordinary Shares
pursuant to this Section 3.4 on three (3) occasions only, provided, however,
that such obligation shall be deemed satisfied only when a registration
statement covering all shares of Ordinary Shares specified in notices received
as aforesaid (except to the extent reduced by the managing underwriter pursuant
to Section 3.4(d)) shall have become effective and, if such method of
disposition is a firm commitment underwritten public offering, all such shares
shall have been sold pursuant thereto. Notwithstanding anything to the contrary
contained herein, no request may be made under this Section 3.4 during the
period commencing 60 days prior to the Company's good faith estimate of the
effectiveness of a registration statement filed by the Company covering a firm
commitment underwritten public offering (other than pursuant to this Section
3.4) and prior to the later to occur of the completion of the period of
distribution for such offering or 120 days after the effective date of such
registration statement.

      (c) If the holders requesting such registration intend to distribute the
Registrable Securities covered by their request by means of an underwriting,
they shall so advise the Company as a part of their request made pursuant to
this Section 3.4 and the Company shall include such information in the written
notice referred to in paragraph (b) above. The right of any holder to
registration pursuant to this Section 3.4 shall be conditioned upon such
holder's agreeing to participate in such underwriting and to permit inclusion of
such holder's Ordinary Shares in the underwriting. If such method of disposition
is an underwritten public offering, the Company may designate the managing
underwriter(s) of such offering, which managing underwriter(s) shall be
reasonably acceptable to the holders of at least a majority in interest of the
shares of Registrable Securities to be sold in such offering. A holder may elect
to include in such underwriting all or a part of the Registrable Securities it
holds.

      (d) A registration statement filed pursuant to this Section 3.4 may,
subject to the following provisions, include (i) Ordinary Shares for sale by the
Company for its own account, (ii) Ordinary Shares held by officers or directors
of the Company and (iii) Ordinary Shares held by Other Shareholders (as defined
in Section 3.3(d)), in each case for sale in accordance with the method of
disposition specified by the requesting holders. If such registration shall be
underwritten, the Company, such officers and directors and Other Shareholders
proposing to distribute their shares through such underwriting shall enter into
an underwriting agreement in customary form with the representative of the
underwriter or underwriters selected for such underwriting on terms no less
favorable to such officers, directors or Other Shareholders than the terms
afforded the holders of Registrable Securities. If and to the extent that the
managing underwriter determines that marketing factors require a limitation on
the number of shares to be included in such registration, then the Ordinary
Shares held by officers or directors (other than

                                                                               8
<Page>

Registrable Securities) of the Company or by Other Shareholders (other than
Registrable Securities) and Ordinary Shares to be sold by the Company for its
own account shall be excluded from such registration to the extent so required
by such managing underwriter, and unless the holders of such shares and the
Company have otherwise agreed in writing, such exclusion shall be applied first
to the Ordinary Shares of the Company to be included for its own account to the
extent required by the managing underwriter, and then to the shares held by the
directors and officers and the Other Shareholders to the extent required by the
managing underwriter, ratable among them on the basis of the respective number
of shares held by each of them. If the managing underwriter determines that
marketing factors require a limitation of the number of Registrable Securities
to be registered under this Section 3.4, then Registrable Securities shall be
excluded in such manner that the securities to be sold shall be allocated among
the selling holders pro rata based on their ownership of Registrable Securities.
In any event all securities to be sold other than Ordinary Registrable
Securities will be excluded prior to any exclusion of Ordinary Registrable
Securities. No Registrable Securities or any other security excluded from the
underwriting by reason of the underwriter's marketing limitation shall be
included in such registration. If any holder of Registrable Securities, officer,
director or Other Shareholder who has requested inclusion in such registration
as provided above, disapproves of the terms of the underwriting, such holder of
securities may elect to withdraw therefrom by written notice to the Company and
the managing underwriter. The securities so withdrawn shall also be withdrawn
from registration. Except for registration statements on Form S-4, S-8 or any
comparable form or successor thereto, the Company will not file with the
Commission any other registration statement with respect to its Ordinary Shares,
whether for its own account or that of other shareholders, from the date of
receipt of a notice from requesting holders pursuant to this Section 3.3 until
the completion of the period of distribution of the registration contemplated
thereby or 120 days after the effective date of such registration, whichever is
earlier, if in the good faith judgment of the managing underwriter marketing
factors would materially adversely affect the price of the Registrable
Securities subject to such underwritten registration.

      3.5 INCIDENTAL REGISTRATION. If the Company at any time following the
Initial Public Offering proposes to register any of its securities under the
Securities Act for sale to the public, whether for its own account or for the
account of other security holders or both (except with respect to registration
statements on Forms S-4, S-8 or any successor to such forms or another form not
available for registering the Registrable Securities for sale to the public),
each such time it will promptly give written notice to all holders of the
Registrable Securities of its intention so to do. Upon the written request of
any such holder, received by the Company within thirty (30) days after the
giving of any such notice by the Company, to register any or all of its
Registrable Securities, the Company will use its reasonable best efforts to
cause the Registrable Securities as to which registration shall have been so
requested to be included in the securities to be covered by the registration
statement proposed to be filed by the Company, all to the extent requisite to
permit the sale or other disposition by the holder (in accordance with its
written request) of such Registrable Securities so registered. If the
registration of which the Company gives notice is for a registered public
offering involving an underwriting, the Company shall so advise the holders of
Registrable Securities as a part of the written notice given pursuant to this
Section 3.5. In such event the right of any holder of Registrable Securities to
registration pursuant to this Section 3.5 shall be conditioned upon such
holder's participation in such underwriting to the extent provided herein. All
holders of Registrable Securities proposing to distribute their securities
through such underwriting shall (together with the Company and the

                                                                               9
<Page>

other shareholders distributing their securities through such underwriting)
enter into an underwriting agreement in customary form with the underwriter or
underwriters selected for underwriting by the Company. Notwithstanding any other
provision of this Section 3.5, if the underwriter determines that marketing
factors require a limitation on the number of shares to be underwritten, the
Company shall so advise all holders of securities requesting registration of any
limitations on the number of shares to be underwritten, and the number of shares
of securities that are entitled to be included in the registration and
underwriting shall be allocated (i) first to the party initiating such
registration procedure (whether the Company for selling Ordinary Shares for its
own account or any Other Shareholder entitled to request and initiate such
registration); (ii) then, to the holders of Registrable Securities requesting
registration pursuant to this Section 3.5 and Other Shareholders requesting
registration pursuant to similar rights, in proportion, as nearly as
practicable, to the respective amounts of securities owned by them; and (iii)
then, to the Company with respect to Ordinary Shares being sold for its own
account (unless allocated first under clause (i) above). Notwithstanding the
foregoing provisions, the Company may withdraw any registration statement
referred to in this Section 3.5 without thereby incurring any liability to the
holders of Registrable Securities. If any holder of Registrable Securities
disapproves of the terms of any such underwriting, it may elect to withdraw
therefrom by written notice to the Company and the underwriter. Any Registrable
Securities or other securities excluded or withdrawn from such underwriting
shall be withdrawn from such registration.

      3.6 REGISTRATION ON FORM F-3.

      (a) In addition to the rights provided in Sections 3.3 and 3.4, provided
that at least nine (9) months have elapsed since the most recent registration in
which the shareholder seeking to make a request under this Section 3.6 was
entitled to request that any of its Registrable Securities be included therein,
if at any time (i) any holder or holders of the Registrable Securities request
that the Company file a registration statement on Form F-3 or any comparable or
successor form thereto for a public offering of all or any portion of the shares
of Registrable Securities held by such requesting holder or holders, the
reasonably anticipated aggregate price to the public of which would exceed
US$5,000,000, and (ii) the Company is a registrant entitled to use Form F-3 or
any comparable or successor form thereto to register such shares, then the
Company shall use its best efforts to register under the Securities Act on Form
F-3 or any comparable or successor form thereto, for public sale in accordance
with the method of disposition specified in such notice, the number of
Registrable Securities specified in such notice. Whenever the Company is
required by this Section 3.6 to use its best efforts to effect the registration
of Registrable Securities, each of the procedures and requirements of Section
3.3 and 3.4 (with all holders of Registrable Securities being treated equally),
including but not limited to the requirement that the Company notify all holders
of Registrable Securities from whom notice has not been received and provide
them with the opportunity to participate in the offering, shall apply to such
registration, PROVIDED, HOWEVER, that except as provided above, there shall be
no limitation on the number of registrations on Form F-3 which may be requested
and obtained under this Section 3.6.

      (b) The Company shall use its best efforts to qualify for registration on
Form F-3 or any comparable or successor form or forms; and to that end the
Company shall register (whether or not required by law to do so) the Ordinary
Shares under the Exchange Act in

                                                                              10
<Page>

accordance with the provisions of that Act following the effective date of the
first registration of any securities of the Company on Form F-1 or any
comparable or successor form.

      3.7 REGISTRATION PROCEDURES. If and whenever the Company is required by
the provisions of Section 3.3, 3.4, 3.5 or 3.6 to use its best efforts to effect
the registration of any Registrable Securities under the Securities Act, the
Company will, as expeditiously as possible:

      (a) prepare and file with the Commission a registration statement (which,
in the case of an underwritten public offering pursuant to Section 3.3 or 3.4,
shall be on Form F-1 or other form of general applicability satisfactory to the
managing underwriter selected as therein provided) with respect to such
securities including executing an undertaking to file post-effective amendments
and use its best efforts to cause such registration statement to become and
remain effective for the period of the distribution contemplated thereby
(determined as provided below);

      (b) prepare and file with the Commission such amendments and supplements
to such registration statement and the prospectus used in connection therewith
as may be necessary to keep such registration statement effective for the period
specified herein and comply with the provisions of the Securities Act with
respect to the disposition of all Registrable Securities covered by such
registration statement in accordance with the sellers' intended method of
disposition set forth in such registration statement for such period;

      (c) furnish to each seller of Registrable Securities and to each
underwriter such number of copies of the registration statement and each such
amendment and supplement thereto (in each case including all exhibits) and the
prospectus included therein (including each preliminary prospectus) as such
persons reasonably may request in order to facilitate the public sale or other
disposition of the Registrable Securities covered by such registration
statement;

      (d) use its best efforts to register or qualify the Registrable Securities
covered by such registration statement under the securities or "blue sky" laws
of such jurisdictions as the sellers of Registrable Securities or, in the case
of an underwritten public offering, the managing underwriter reasonably shall
request, PROVIDED, HOWEVER, that the Company shall not for any such purpose be
required to qualify generally to transact business as a foreign corporation in
any jurisdiction where it is not so qualified or to consent to general service
of process in any such jurisdiction, unless the Company is already subject to
service in such jurisdiction;

      (e) use its best efforts to list the Registrable Securities covered by
such registration statement with any securities exchange on which the Ordinary
Shares of the Company are then listed;

      (f) comply with all applicable rules and regulations under the Securities
Act and Exchange Act relating to such registration;

      (g) immediately notify each seller of Registrable Securities and each
underwriter under such registration statement, at any time when a prospectus
relating thereto is required to be delivered under the Securities Act, of the
happening of any event of which the Company has knowledge as a result of which
the prospectus contained in such registration

                                                                              11
<Page>

statement, as then in effect, includes an untrue statement of a material fact or
omits to state a material fact required to be stated therein or necessary to
make the statements therein not misleading in light of the circumstances then
existing, and promptly prepare and furnish to such seller a reasonable number of
copies of a prospectus supplemented or amended so that, as thereafter delivered
to the purchasers of such Registrable Securities, such prospectus shall not
include an untrue statement of a material fact or omit to state a material fact
required to be stated therein or necessary to make the statements therein not
misleading in light of the circumstances then existing;

      (h) if the offering is underwritten and at the request of any seller of
Registrable Securities, use its best efforts to furnish on the date that
Registrable Securities are delivered to the underwriters for sale pursuant to
such registration: (i) an opinion dated such date of counsel representing the
Company for the purposes of such registration, addressed to the underwriters to
such effects as reasonably may be requested by counsel for the underwriters, and
(ii) a letter dated such date from the independent public accountants retained
by the Company, addressed to the underwriters stating that they are independent
public accountants within the meaning of the Securities Act and that, in the
opinion of such accountants, the financial statements of the Company included in
the registration statement or the prospectus, or any amendment or supplement
thereof, comply as to form in all material respects with the applicable
accounting requirements of the Securities Act, and such letter shall
additionally cover such other financial matters (including information as to the
period ending no more than five (5) business days prior to the date of such
letter) with respect to such registration as such underwriters reasonably may
request;

      (i) make available for inspection by each seller of Registrable
Securities, any underwriter participating in any distribution pursuant to such
registration statement, and any attorney, accountant or other agent retained by
such seller or underwriter, all at the cost and expense of such sellers or
underwriters, as the case may be, reasonable access to all financial and other
records, pertinent corporate documents and properties of the Company, as such
parties may reasonably request, and cause the Company's officers, directors and
employees to supply all information reasonably requested by any such seller,
underwriter, attorney, accountant or agent in connection with such registration
statement, all subject to the recipients' signing non-disclosure undertakings in
form designated by the Company;

      (j) cooperate with the selling holders of Registrable Securities and the
managing underwriter, if any, to facilitate the timely preparation and delivery
of certificates representing Registrable Securities to be sold, such
certificates to be in such denominations and registered in such names as such
holders or the managing underwriter may request at least two business days prior
to any sale of Registrable Securities;

      (k) permit any holder of Registrable Securities which holder, in the sole
and exclusive judgment, exercised in good faith, of such holder, would be deemed
to be a controlling person of the Company, to participate in good faith in the
preparation of such registration statement and to require the insertion therein
of material, furnished to the Company in writing, which in the reasonable
judgment of such holder and its counsel, reasonably concurred in by the
Company's counsel, should be included; and

                                                                              12
<Page>

      (l) in the event of any underwritten public offering, enter into and
perform its obligations under an underwriting agreement reasonably acceptable to
the Company, in usual and customary form, with the managing underwriter of such
offering.

      For purposes of this Agreement, the period of distribution of Registrable
Securities in a firm commitment underwritten public offering shall be deemed to
extend until each underwriter has completed the distribution of all securities
purchased by it, and the period of distribution of Registrable Securities in any
other registration shall be deemed to extend until the earlier of the sale of
all Registrable Securities covered thereby or 180 days after the effective date
thereof, PROVIDED, HOWEVER, in the case of any registration of Registrable
Securities on Form F-3 or a comparable or successor form which are intended to
be offered on a continuous or delayed basis, such 180 day-period shall be
extended, if necessary, to keep the registration statement effective until all
such Registrable Securities are sold (but in no event longer than nine months
after the effective date of such registration statement), provided that Rule
415, or any successor rule under the Securities Act, permits an offering on a
continuous or delayed basis, and provided further that applicable rules under
the Securities Act governing the obligation to file a posteffective amendment,
permit, in lieu of filing a post-effective amendment which (y) includes any
prospectus required by Section 10(a)(3) of the Securities Act or (z) reflects
facts or events representing a material or fundamental change in or omission
from the information set forth in the registration statement, the incorporation
by reference of information required to be included in (y) and (z) above
contained in periodic reports filed pursuant to Section 13 or 15(d) of the
Exchange Act in the registration statement.

      In connection with each registration hereunder, the sellers of Registrable
Securities will furnish to the Company in writing such information requested by
the Company with respect to themselves and the proposed distribution by them as
shall be reasonably necessary in order to assure compliance with Federal and
applicable state securities laws.

      3.8 EXPENSES.

      (a) All expenses incurred by the Company in complying with Sections 3.3,
3.4, 3.5 and 3.6, including, without limitation, all registration and filing
fees, printing expenses, fees and disbursements of counsel and independent
public accountants for the Company, fees and expenses (including counsel fees)
incurred in connection with complying with state securities or "blue sky" laws,
fees of the National Association of Securities Dealers, Inc., transfer taxes,
fees of transfer agents and registrars, costs of any insurance which might be
obtained by the Company with respect to the offering by the Company, and fees
and disbursements of one counsel selected by the holders of at least two-thirds
(2/3) of the Registrable Securities being sold, but excluding any Selling
Expenses, are called "Registration Expenses". All underwriting discounts and
selling commissions applicable to the sale of Registrable Securities are called
"Selling Expenses".

      (b) The Company will pay all Registration Expenses in connection with each
registration statement under Section 3.3, 3.4, 3.5 or 3.6; provided, that, in
the event of a registration pursuant to Section 3.3 or 3.4 hereof which is
withdrawn at the request of the Investors other than (i) as a result of the
Company's failure to perform its obligations hereunder,

                                                                              13
<Page>

(ii) as a result of a cutback by the underwriter of such registration in the
amount of Registrable Securities which may be included in such registration by
more than 25% or (iii) as a result of information concerning a materially
adverse change in the Company's business or financial condition that is made
known to the Investors after the date on which such registration was requested,
the Investors shall pay the Registration Expenses with respect to such
registration. In the event that a registration pursuant to Section 3.3 hereof is
withdrawn pursuant to clauses (i), (ii) or (iii) of this Section 3.8(b), the
Investors shall, immediately following such withdrawal, be entitled to that
number of registration requests pursuant to Section 3.3 or 3.4 hereof to which
they would have been entitled not taking into account the withdrawn request. All
Selling Expenses in connection with each registration statement under Section
3.3, 3.4, 3.5 or 3.6 shall be borne by the participating sellers in proportion
to the number of shares registered by each, or by such participating sellers
other than the Company (except to the extent the Company shall be a seller) as
they may agree.

      3.9 INDEMNIFICATION AND CONTRIBUTION.

      (a) In the event of a registration of any of the Registrable Securities
under the Securities Act pursuant to Section 3.3, 3.4, 3.5 or 3.6, the Company
will indemnify and hold harmless each holder of Registrable Securities, its
officers, directors and partners, each underwriter of such Registrable
Securities thereunder and each other person, if any, who controls such holder or
underwriter within the meaning of the Securities Act (each, an "Indemnitee"),
against any losses, claims, damages or liabilities, joint or several, to which
such Indemnitee may become subject under the Securities Act or otherwise,
insofar as such losses, claims, damages or liabilities (or actions in respect
thereof) arise out of or are based upon (i) any untrue statement or alleged
untrue statement of any material fact contained in any prospectus, offering
circular or other document incident to such registration (including any related
notification, registration statement under which such Registrable Securities
were registered under the Securities Act pursuant to Section 3.3, 3.4, 3.5, or
3.6 any preliminary prospectus or final prospectus contained therein, or any
amendment or supplement thereof), (ii) any blue sky application or other
document executed by the Company specifically for that purpose or based upon
written information furnished by the Company filed in any state or other
jurisdiction in order to qualify any or all of the Registrable Securities under
the securities laws thereof (any such application, document or information
herein called a "Blue Sky Application"), (iii) any omission or alleged omission
to state in any such registration statement, prospectus, amendment or supplement
or in any Blue Sky Applications executed or filed by the Company, a material
fact required to be stated therein or necessary to make the statements therein
not misleading, or (iv) any violation by the Company of the Securities Act or
any rule or regulation promulgated under the Securities Act or any state law
applicable to the Company and relating to action or inaction required of the
Company in connection with such registration, and will reimburse each Indemnitee
for any legal or other expenses reasonably incurred by them in connection with
investigating or defending any such loss, claim, damage, liability or action,
promptly after being so incurred, PROVIDED, HOWEVER, that the Company will not
be liable to an Indemnitee if and to the extent that any such loss, claim,
damage or liability arises out of or is based upon an untrue statement or
alleged untrue statement or omission or alleged omission so made in conformity
with written information furnished by such Indemnitee, in writing specifically
for use in such registration statement or prospectus; PROVIDED FURTHER, however,
that, other than in a firm commitment underwriting, the

                                                                              14
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foregoing indemnity agreement with respect to any preliminary prospectus shall
not inure to the benefit of any Indemnitee from whom the person asserting any
such losses, claims, damages or liabilities purchased shares in the offering, if
a copy of the prospectus (as then amended or supplemented if the Company shall
have furnished any amendments or supplements thereto) was not sent or given by
or on behalf of such Indemnitee to such person, if required by law so to have
been delivered, at or prior to the written confirmation of the sale of the
shares to such person, and if the prospectus (as so amended or supplemented)
would have cured the defect giving rise to such loss, claim, damage or
liability.

      (b) In the event of a registration of any of the Registrable Securities
under the Securities Act pursuant to Section 3.3, 3.4, 3.5 or 3.6, each seller
of such Registrable Securities thereunder, severally and not jointly, will
indemnify and hold harmless the Company, each person, if any, who controls the
Company within the meaning of the Securities Act, each officer of the Company
who signs the registration statement, each director of the Company, each other
seller of Registrable Securities, each underwriter and each person who controls
any underwriter within the meaning of the Securities Act, against all losses,
claims, damages or liabilities, joint or several, to which the Company or such
officer, director, other seller, underwriter or controlling person may become
subject under the Securities Act or otherwise, insofar as such losses, claims,
damages or liabilities (or actions in respect thereof) arise out of or are based
upon any untrue statement or alleged untrue statement of any material fact
contained in any prospectus, offering circular or other document incident to
such registration (including any related notification, registration statement
under which such Registrable Securities were registered under the Securities Act
pursuant to Section 3.3, 3.4, 3.5 or 3.6, any preliminary prospectus or final
prospectus contained therein, or any amendment or supplement thereof), or any
Blue Sky Application or arise out of or are based upon the omission or alleged
omission to state therein a material fact required to be stated therein or
necessary to make the statements therein not misleading, and will reimburse the
Company and each such officer, director, other seller, underwriter and
controlling person for any legal or other expenses reasonably incurred by them
in connection with investigating or defending any such loss, claim, damage,
liability or action, promptly after being so incurred, PROVIDED, HOWEVER, that
such seller will be liable hereunder in any such case if and only to the extent
that any such loss, claim, damage or liability arises out of or is based upon an
untrue statement or alleged untrue statement or omission or alleged omission
made in reliance upon and in conformity with information pertaining to such
seller, as such, furnished in writing to the Company by such seller specifically
for use in such registration statement or prospectus; and PROVIDED FURTHER,
HOWEVER, that the liability of each seller hereunder shall be limited to the
proceeds received by such seller from the sale of Registrable Securities covered
by such registration statement. Not in limitation of the foregoing, it is
understood and agreed that the indemnification obligations of any seller
hereunder pursuant to any underwriting agreement entered into in connection
herewith shall be limited to (or be reasonably comparable to, in the event an
underwriter reasonably requires the use of its form of underwriting agreement)
the obligations contained in this subparagraph (b).

      (c) Promptly after receipt by an indemnified party hereunder of notice of
the commencement of any action, such indemnified party shall, if a claim in
respect thereof is to be made against the indemnifying party hereunder, notify
the indemnifying party in writing thereof, but the omission so to notify the
indemnifying party shall not relieve it from any liability which it

                                                                              15
<Page>

may have to such indemnified party other than under this Section 3.9 and shall
only relieve it from any liability which it may have to such indemnified party
under this Section 3.9 if and to the extent the indemnifying party is prejudiced
by such omission. In case any such action shall be brought against any
indemnified party and it shall notify the indemnifying party of the commencement
thereof, the indemnifying party shall be entitled to participate in and, to the
extent it shall wish, to assume and undertake the defense thereof with counsel
selected by such indemnifying party, and, after notice from the indemnifying
party to such indemnified party of its election so to assume and undertake the
defense thereof, the indemnifying party shall not be liable to such indemnified
party under this Section 3.9 for any legal expenses subsequently incurred by
such indemnified party in connection with the defense thereof other than
reasonable costs of investigation and of liaison with counsel so selected,
PROVIDED, HOWEVER, that, if the defendants in any such action include both the
indemnified party and the indemnifying party and the counsel selected by the
indemnifying party shall have reasonably concluded that there may be deemed to
conflict with the interests of the indemnifying party, the indemnified party
shall have the right to select a separate counsel and to assume such legal
defenses and otherwise to participate in the defense of such action, with the
expenses and fees of such separate counsel and other expenses related to such
participation to be reimbursed by the indemnifying party. No indemnifying party,
in the defense of any such claim or action, shall, except with the consent of
each indemnified party, consent to entry of any judgment or enter into any
settlement which does not include as an unconditional term thereof the giving by
the claimant or plaintiff to such indemnified party of a release from all
liability in respect to such claim or action, and no indemnified party shall
consent to entry of any judgment or settle such claim or litigation without the
prior written consent of the indemnifying party, which consent shall not be
unreasonably withheld. Each indemnified party shall furnish such information
regarding itself or the claim in question as an indemnifying party may
reasonably request in writing and as shall be reasonably required in connection
with defense of such claim and litigation resulting therefrom.

      (d) In order to provide for just and equitable contribution to joint
liability under the Securities Act in any case in which either (i) any
indemnified party makes a claim for indemnification pursuant to this Section 3.9
but it is judicially determined (by the entry of a final judgment or decree by a
court of competent jurisdiction and the expiration of time to appeal or the
denial of the last right of appeal) that such indemnification may not be
enforced in such case notwithstanding the fact that this Section 3.9 provides
for indemnification in such case, or (ii) contribution under the Securities Act
may be required on the part of any such indemnified party in circumstances for
which indemnification is provided under this Section 3.9; then, and in each such
case, the indemnifying party shall, in lieu of indemnifying such indemnified
party, contribute to the amount paid or payable by such indemnified party as a
result of such losses, claims, damages or liabilities to which such party may be
subject in such proportion as is appropriate to reflect the relative fault of
the indemnifying party on the one hand and the indemnified party on the other in
connection with the statements or omissions which resulted in such losses,
claims, damages or liabilities, as well as any other relevant equitable
considerations. The relative fault of the indemnifying party and the indemnified
party shall be determined by reference to, among other things, whether the
untrue or alleged untrue statement of material fact related to information
supplied by the indemnifying party or the indemnified party and the parties'
relative intent, knowledge, access to information and opportunity to correct or
prevent

                                                                              16
<Page>

such statement or omission. Notwithstanding the foregoing (A) no such holder of
Registrable Securities will be required to contribute any amount in excess of
the proceeds received from the sale of all such Registrable Securities offered
by it pursuant to such registration statement; and (B) no person or entity
guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of
the Securities Act) will be entitled to contribution from any person or entity
who was not guilty of such fraudulent misrepresentation.

      (e) The indemnities and obligations provided in this Section 3.9 shall
survive the transfer of any Registrable Securities by such holder.

      3.10 CHANGES IN ORDINARY SHARES. If, and as often as, there is any change
in the Ordinary Shares by way of a share split, share dividend, combination or
reclassification, or through a merger, consolidation, reorganization or
recapitalization, or by any other means, appropriate adjustment shall be made in
the provisions hereof so that the rights and privileges granted hereby shall
continue with respect to the Ordinary Shares as so changed.

      3.11 RULE 144 AND 144A REPORTING. With a view to making available the
benefits of certain rules and regulations of the Commission which may at any
time permit the sale of the Registrable Securities to the public without
registration, except as provided in paragraph (c) below, at all times after any
registration statement covering a public offering of securities of the Company
under the Securities Act shall have become effective, the Company agrees to:

      (a) use its best efforts to comply with all of the applicable reporting
requirements of the Exchange Act and shall comply with all other public
information reporting requirements of the Commission as a condition to the
availability of an exemption from the Securities Act for the sale of any of the
Registrable Securities by any holder of Registrable Securities pursuant to Rule
144 or Rule 144A thereof, as amended from time to time, or any successor rule
thereto or otherwise;

      (b) cooperate with each holder of Registrable Securities in supplying such
information as may be necessary for such holder of Registrable Securities to
complete and file any information reporting forms presently or hereafter
required by the Commission as a condition to the availability of an exemption
from the Securities Act under Rule 144 or Rule 144A thereunder for the sale of
any of the Registrable Securities by any holder of Registrable Securities; and

      (c) furnish to each holder of Registrable Securities forthwith upon
request a written statement by the Company as to its compliance with the
reporting requirements of such Rule 144 or Rule 144A (or any successor rule)
and, at any time after it has become subject to such reporting requirements, of
the Securities Act and the Exchange Act, a copy of the most recent annual or
quarterly report of the Company, and such other reports and documents so filed
by the Company as such holder may reasonably request in availing itself of any
rule or regulation of the Commission allowing such holder to sell any
Registrable Securities without registration.

      3.12 "MARKET STAND-OFF' AGREEMENT. Each of the Investors agrees, severally

                                                                              17
<Page>

and not jointly, if requested by the Company and an underwriter of Ordinary
Shares (or other securities) of the Company, not to sell or otherwise transfer
or dispose of any Ordinary Shares (or other securities) of the Company held by
such Investor during a period not to exceed (i) one hundred and eighty (180)
days following the effective date of the first registration statement of the
Company filed under the Securities Act and (ii) ninety (90) days following the
effective date of any subsequent registration statement filed by the Company
under the Securities Act, and to enter into an agreement to such effect;
PROVIDED that all of the Company's officers, directors and holders of at least
5% of the outstanding Ordinary Shares (or securities convertible into at least
5% of the Ordinary Shares) also enter into agreements to such effect.

      The Company may impose stop-transfer instructions with respect to the
shares (or securities) subject to the foregoing restriction until the end of
said period.

      3.13 LIMITATION ON SUBSEQUENT REGISTRATION RIGHTS. The Company shall not,
without the approval of the Board of Directors, including at least one of the
Preferred Directors (as defined in the Amended Articles), grant to any third
party any registration rights more favorable than, or in any way conflicting
with, any of those contained herein, so long as any of the registration rights
under this Agreement remains in effect, provided, in any event, (i) any grant of
demand or required registration rights shall provide that the Purchasers have
incidental or "piggyback" registration rights with respect thereto in accordance
with the provisions of Section 3.5 hereof, and (ii) such rights shall not become
exercisable prior to the exercise of the rights of the holders of Registrable
Securities hereunder.

      3.14 ASSIGNMENT OF REGISTRATION RIGHTS. The rights to cause the Company to
register Registrable Securities pursuant to this Article 3 may be assigned (but
only with all related obligations) by a holder of Registrable Securities to a
transferee or assignee of such securities who is not engaged in a business
activity competitive with the Company (as reasonably determined by the Company's
Board of Directors) and who, after such assignment or transfer, holds at least
100,000 shares of Registrable Securities (subject to appropriate adjustment for
share splits, share dividends, combinations and similar recapitalization
events), provided the Company is, within a reasonable time after such transfer,
furnished with written notice of the name and address of such transferee or
assignee and the securities with respect to which such registration rights are
being assigned; and provided, further, that such assignment shall be effective
only if (i) immediately following such transfer the further disposition of such
securities by the transferee or assignee is restricted under the Act and (ii)
the transferee or assignee shall acknowledge in writing that the transferred or
assigned Registrable Securities shall remain subject to this Agreement. For the
purposes of determining the number of shares of Registrable Securities held by a
transferee or assignee, the holdings of transferees and assignees of a
partnership who are partners or retired partners of such partnership (including
spouses and ancestors, lineal descendants and siblings of such partners or
spouses who acquire Registrable Securities by gift, will or intestate
succession) shall be aggregated together and with the partnership; provided that
all assignees and transferees who would not qualify individually for assignment
of registration rights shall have a single attorney-in-fact for the purpose of
exercising any rights, receiving notices or taking any action under this Article
3.

      3.15 BLOCKAGE PERIODS. Notwithstanding any other provision of this

                                                                              18
<Page>

Agreement, the Company shall be permitted to defer the filing of any
registration statement under Sections 3.3, 3.4 or 3.6 if the Company's Board of
Directors determines in good faith, as certified in writing by the Company's
President or Chief Executive Officer to the holder of Registrable Securities
requesting registration pursuant to any of the said Sections, that the filing of
such a registration statement at such time would be seriously detrimental to the
business of the Company. The Company may decline to file any registration
statement for this reason only once in any 12-month period and only for a
maximum period of 90 days at any one time.

      3.16 TERMINATION OF REGISTRATION RIGHTS. The rights under this Section 3
will expire with respect to each of the Investors and their respective
successors, assigns and transferees, upon the earlier of (i) five years after
the date of the Company's Initial Public Offering, or, (ii) after the Company's
Initial Public Offering with respect to a particular holder, the earlier of such
person's ceasing to hold any Registrable Securities or at such time as such
person is entitled to sell all of its Registrable Securities within a
consecutive 90-day period pursuant to Rule 144.

      4. BOARD OF DIRECTORS

      4.1 ELECTION OF DIRECTORS. Each Investor shall take or cause to be taken
such actions as may be required from time to time to establish and maintain the
number of persons comprising the Board of Directors and the representation
therein as set forth in the Articles of Association as adopted by the Company
pursuant to the Series A Purchase Agreement.

      4.2 COMPENSATION AND REIMBURSEMENT OF DIRECTORS. Each of the Preferred
Directors shall receive 10,000 options (under the Company's option plan) to
purchase Ordinary Shares (at the price of the sale of Series A Shares to the
Purchasers) for their services on the Board. Should the Company seek to
equally incentivize any or all of the other directors in accordance with the
foregoing, the Series A Holders shall vote in favor thereof. Directors shall
be reimbursed by the Company for their travel expenses in connection with
attendance at Board meetings, in accordance with Company policy.

      4.3 TERMINATION. The provisions set forth in this Article 4 shall be of no
further force and effect upon the closing of the Company's Qualified Public
Offering.

      5. AFFIRMATIVE COVENANTS OF THE COMPANY

      The Company covenants and agrees that, from the date of the Closing under
the Series A Purchase Agreement and thereafter so long as any Purchaser owns
Registrable Securities constituting at least five percent (5%) of the total then
outstanding shares of the Company ("Significant Purchaser"), it will perform and
observe the following covenants and provisions, and will cause each Subsidiary,
if and when such Subsidiary exists, to perform and observe the following
covenants and provisions as applicable to such Subsidiary.

      5.1 FINANCIAL STATEMENTS; OTHER REPORTS. The Company and each Subsidiary
will maintain proper books of account and records in accordance with generally
accepted accounting principles applied on a consistent basis, certified by a
nationally recognized independent accounting firm, and will deliver, promptly
after the close of the applicable period,

                                                                              19
<Page>

quarterly and annual financial statements to each Significant Purchaser, which
shall include:

      (a) as soon as available and in any event within thirty (30) days after
the end of each of the first three quarters of each fiscal year of the Company,
a consolidated balance sheet of the Company and its Subsidiaries as of the end
of such quarter and the related statements of income and shareholders' equity
and of cash flows of the Company for the period commencing at the end of the
previous fiscal year and ending with the end of such quarter, reviewed by the
independent auditors of the Company and setting forth in each case in
comparative form the corresponding figures for the corresponding period of the
preceding fiscal year, all in reasonable detail and prepared in accordance with
U.S. generally accepted accounting principles consistently applied (including an
adjustment schedule to Israeli generally accepted accounting principles), and
duly certified (subject to year-end audit adjustments) by the chief financial
officer of the Company;

      (b) as soon as available and in any event within sixty (60) days after the
end of each fiscal year of the Company, a copy of the annual audited
consolidated balance sheet of the Company and its Subsidiaries as of the end of
such fiscal year and statements of income and shareholders' equity and of cash
flows of the Company for such fiscal year, setting forth in each case in
comparative form the corresponding figures for the preceding fiscal year,
including the audit letter of the Company's independent public accountants of
nationally recognized standing;

      (c) promptly upon receipt thereof, any written report submitted to the
Company by independent public accountants in connection with an annual or
interim audit of the books of the Company and its Subsidiaries made by such
accountants;

      (d) promptly after sending, making available, or filing the same, such
reports and financial statements as the Company shall send or make available to
the shareholders of the Company; and

      (e) promptly after the occurrence thereof and in any event within five (5)
business days after it becomes aware of each occurrence, notice of any material
adverse change in the business, assets, properties, management, operations or
financial condition of the Company or its Subsidiaries.

      Neither the foregoing provisions of this Section nor any other provision
of this Agreement shall be in limitation of any rights which a Purchaser may
have with respect to the books and records of the Company and its Subsidiaries,
or to inspect their properties or discuss their affairs, finances and accounts,
under the laws of the jurisdictions in which they are incorporated.

      5.2 INSPECTION AND OTHER INFORMATION. Each Significant Purchaser and such
agents, advisors and counsel as such Purchaser may designate, may, at its
expense and subject to the prior signing of a non-disclosure undertaking in form
designated by the Company, visit and inspect any of the properties of the
Company and each Subsidiary, examine the books of account of the Company and
each Subsidiary, take extracts therefrom and discuss the affairs, finances and
accounts of the Company and each Subsidiary with its officers and employees and,

                                                                              20
<Page>

with a Company representative present at the expense of the Company, its public
accountants (and by this provision the Company and each Subsidiary hereby
authorizes said accountants to discuss with such Significant Purchaser and such
persons its finances and accounts), at reasonable times and with reasonable
prior notice during normal business hours. All such visits and inspections shall
be conducted in a manner which will not unreasonably interfere with the normal
business operations of the Company and each Subsidiary. The Company and each
Subsidiary will furnish to each such Significant Purchaser such other
information as it from time to time may reasonably request.

      5.3 INDEPENDENT ACCOUNTANTS. The Company will retain independent public
accountants of recognized national standing approved by the Company's Board of
Directors who shall audit the Company's consolidated financial statements at the
end of each fiscal year. In the event the services of the independent public
accountants, so selected, or any firm of independent public accountants
hereafter employed by the Company are terminated, the Company will promptly
thereafter engage another such firm of independent public accountants of
national standing. In its notice to the Series A Holders, the Company shall
state whether the change of accountants was recommended or approved by the Board
of Directors or any committee thereof.

      5.4 MAINTENANCE OF INSURANCE. The Company and each Subsidiary will
maintain insurance with financially sound and reputable insurance companies or
associations in such amounts and covering such risks as is usually carried by
companies engaged in similar businesses and owning similar properties in the
same general areas in which the Company operates, including, without limitation,
directors' and officers' liability insurance.

      5.5 MAINTENANCE OF KEY-PERSON LIFE INSURANCE. The Company will reasonably
consider procuring term life insurance on the life of its President and CEO,
with a financially sound and reputable insurance company or association and in
amounts reasonably determined by the Company, which proceeds shall be payable to
the order of the Company. The Company will not cause or permit any assignment of
the proceeds of either policy or change in beneficiary, and will not borrow
against either policy.

      5.6 EMPLOYEE NONDISCLOSURE AND NONCOMPETITION AGREEMENTS. The Company
shall use its best efforts to obtain, and shall cause its subsidiaries (if any)
to use their best efforts to obtain, a confidentiality, noncompetition and
work-for-hire agreement from all key employees and from any other employees who
will have access to confidential information of the Company or any of its
subsidiaries, upon their employment by the Company or any of its subsidiaries.

      5.7 PRESERVATION OF CORPORATE EXISTENCE. The Company and each Subsidiary
will preserve and maintain its corporate existence, rights, franchises and
privileges in the jurisdiction of its incorporation, and qualify and remain
qualified, as a foreign corporation in each jurisdiction in which such
qualification is necessary or desirable in view of its business and operations
or the ownership of its properties. The Company and each Subsidiary shall
preserve and maintain all material licenses and other rights to use patents,
processes, licenses, trademarks, trade names, inventions, Intellectual Property
Rights or copyrights owned or possessed by it and necessary to the conduct of
its business.

                                                                              21
<Page>

      5.8 COMPLIANCE WITH LAWS. The Company will use its best efforts to comply,
and cause each of its Subsidiaries to comply, with all applicable laws, rules,
regulations and orders of any governmental authority, noncompliance with which
could reasonably be expected to materially and adversely affect its business or
condition, financial or otherwise.

      5.9 COMPENSATION. The Company and each Subsidiary shall pay to its
management compensation which is not in excess of compensation customarily paid
to management in companies of similar size, of similar maturity, and in similar
businesses and all management compensation and all policies relating thereto,
shall be approved in advance by a majority of the Company's Board of Directors.

      5.10 NEW DEVELOPMENTS. The Company and each Subsidiary will employ
reasonable and customary standards as the Company will deem necessary and
appropriate in documenting and protecting all valuable technological
developments, patentable or unpatentable inventions, discoveries or improvements
by their officers, employees or consultants.

      5.11 MEETINGS OF DIRECTORS AND COMMITTEES; EXPENSES OF DIRECTORS. The
Company shall hold meetings of the Company's Board of Directors (in-person or
telephonic) not less frequently than six times during any calendar year. The
Company shall promptly reimburse in full each director of the Company for all of
his or her reasonable out-of-pocket expenses incurred in attending each
in-person meeting of the Board of Directors of the Company or any committee
thereof or in connection with any special project. No action shall be taken at
any such meeting (other than an adjourned meeting reconvened for lack of quorum,
and of which meeting the Preferred Directors shall have been given notice as was
given to all directors and in accordance with the Amended Articles) unless at
least one of the Preferred Directors is present at such meeting.

      5.12 PROMPT PAYMENT OF TAXES, ETC. The Company and each Subsidiary will
promptly pay and discharge, or cause to be paid and discharged, when due and
payable, all material lawful taxes, assessments and governmental charges or
levies imposed upon the income, profits, property or business of the Company or
any Subsidiary; PROVIDED, HOWEVER, that any such tax, assessment, charge or levy
need not be paid if the validity thereof shall currently be contested in good
faith by appropriate proceedings and if the Company or such Subsidiary shall
have set aside on its books adequate reserves with respect thereto, and
provided, further, that the Company and each Subsidiary will pay all such taxes,
assessments, charges or levies forthwith upon the commencement of proceedings to
foreclose any Lien which may have attached as security therefor. The Company and
each Subsidiary will promptly pay or cause to be paid when due, or in
conformance with customary trade terms, all other Indebtedness incident to
operations of the Company and each Subsidiary.

      5.13 MAINTENANCE OF PROPERTIES AND LEASES. The Company will keep its
properties and those of its Subsidiaries in good repair, working order and
condition, reasonable wear and tear excepted, and from time to time make all
needful and proper repairs, renewals, replacements, additions and improvements
thereto; and the Company and its Subsidiaries will at all times comply with each
provision of all leases to which any of them is a party or under which

                                                                              22
<Page>

any of them occupies property if the breach of such provision could reasonably
be expected to have a material adverse effect on the condition, financial or
otherwise, or operations of the Company or such Subsidiary.

      5.14 COMPLIANCE WITH AGREEMENTS. The Company and all of its Subsidiaries
shall duly comply with all of the provisions of the material contracts,
obligations, agreements, plans, arrangements and commitments to which any of
them is a party or by which any of them is bound.

      5.15 AVAILABILITY OF ORDINARY SHARES. The Company will, from time to time,
in accordance with the laws of the State of Israel, increase the authorized
amount of Ordinary Shares if at any time the number of Ordinary Shares remaining
unissued and available for issuance shall be insufficient to permit conversion
of all then outstanding Preferred Shares.

      5.16 SHARE DISPOSITIONS. The Option Plan maintained by the Company will
contain provisions, which, subject to exclusions approved by the Board of
Directors or Compensation Committee, will generally apply to each employee or
officer of the Company who hereafter acquires shares of the Company's share
capital from the Company, or any option or right to acquire shares of the
Company's share capital from the Company, if they have not already done so, ,
pursuant to which the Company shall have the right, exercisable subject to
applicable laws, to repurchase for fair value such shares of the Company's share
capital from such employee or officer upon the cessation of his or her
employment with the Company, whether in general or in certain circumstances
surrounding such cessation.

      5.17 TERMINATION OF AFFIRMATIVE COVENANTS. The covenants set forth in this
Article 6 shall be of no further force or effect upon the closing of the
Company's Initial Public Offering.

      6. NEGATIVE COVENANTS

      Without limiting any other covenants or provisions hereof, the Company
covenants and agrees that it will comply with and observe the following negative
covenants and provisions, and will cause each Subsidiary to comply with and
observe such of the following covenants and provisions as are applicable to such
Subsidiary, if and when such Subsidiary exists, and will not, without first
having obtained either (y) the approval of the Board of Directors, including at
least one Preferred Director, or (z) the affirmative vote or written consent of
the holders of at least a majority of the outstanding Preferred Share, do any of
the actions set forth in the following covenants and provisions.

      6.1 BUSINESS. The Company will not engage in any business other than the
business of research, development, production service and sale of products for
use in the gastrointestinal diagnostics and/or therapy.

      6.2 MERGER AND SALE OF ASSETS; LIQUIDATION AND DISSOLUTION. Prior to the
second anniversary of the Closing under the Series A Purchase Agreement, the
Company will not merge or consolidate with any other Person or sell, assign,
lease or otherwise dispose of all or

                                                                              23
<Page>

substantially all of its assets, in one transaction or in a series of related
transactions, nor dissolve or liquidate the Company if the proceeds for such
event are less than US$300 million.

      6.3 AMENDMENTS TO MEMORANDUM AND ARTICLES OF ASSOCIATION AND RIGHTS OF
PREFERRED SHARES. The Company will not amend, alter or repeal any provision of
its Memorandum or Articles of Association or take any other action which
adversely affects or compromises the rights attached to the Preferred Shares.

      6.4 DISTRIBUTIONS. Neither the Company nor any Subsidiary will purchase,
redeem, retire, or otherwise acquire for value, except as contemplated by
Section 5.16 above, any shares of its share capital (or rights, options or
warrants to purchase such shares) now or hereafter outstanding, return any
capital to its shareholders (such transactions being hereinafter referred to as
"Distributions"), and neither the Company nor any Subsidiary shall declare or
pay any dividends or make any distribution of assets to its shareholders as
such, in each case unless such Distribution, dividends or asset distribution is
funded from an event approved or which does not require approval pursuant to
Section 6.2 above.

      6.5 MATERIAL AGREEMENTS; DEALINGS WITH AFFILIATES. Except for existing
agreements described in the Schedules to the Series A Purchase Agreement,
neither the Company nor any Subsidiary will enter into any transaction or
agreement (i) involving the expenditure or commitment of amounts exceeding
US$500,000, individually or in the aggregate, within 18 months of the Closing
under the Series A Purchase Agreement unless contemplated within in an annual
budget approved by the Board of Directors, or (ii) other than indemnification
and employment transactions in the ordinary course of the Company's business,
with any employee, officer or director or any member of their families, or any
corporation or other entity in which any one or more of such persons holds,
directly or indirectly, five percent (5%) or more of any class of share capital,
or with any other Affiliate of the Company, except agreements and transactions
on terms no less favorable to the Company or any Subsidiary than it would obtain
in a transaction between unrelated parties, and then only if such agreements or
transactions are approved by the disinterested members of the Board of
Directors.

      6.6 TRANSFERS OF TECHNOLOGY. Neither the Company nor any Subsidiary will
transfer substantially all or substantially all of the Intellectual Property
Rights to any Person for a value of less than US$300 million within 2 years of
the Closing under the Series A Purchase Agreement.

      6.7 RESTRICTIVE AGREEMENTS PROHIBITED. Neither the Company nor any of its
Subsidiaries shall become a party to any agreement which by its terms restricts
the Company's performance of its obligations pursuant to the terms of this
Agreement, the Series A Purchase Agreement, or the provisions relating to the
Series A Shares, included in the Amended Articles, including, but not limited
to, registration rights and the payment of dividends on, the redemption, voting
or conversion of the Series A Shares, PROVIDED, HOWEVER, that nothing in this
Section 6.7 shall prohibit any amendment of or waiver of any provision of this
Agreement or any of the foregoing agreements or the Amended Articles, if such
amendment or waiver is in accordance with the applicable provisions of this
Agreement and other applicable law.

                                                                              24
<Page>

      6.8 MERGERS, SALE OF ASSETS, ETC. OF SUBSIDIARIES. Prior to the second
anniversary of the Closing under the Series A Purchase Agreement, the Company
shall not permit any Subsidiary to consolidate or merge into or with or sell or
transfer all or substantially all its assets, except that any Subsidiary may (i)
consolidate or merge into or with or sell or transfer assets to any other
Subsidiary, or (ii) merge into or sell or transfer assets to the Company, if the
proceeds from such transaction to the Company are less than $US300 million.

      6.9 MAINTENANCE OF OWNERSHIP OF SUBSIDIARIES. Prior to the second
anniversary of the Closing under the Series A Purchase Agreement, the Company
shall not sell or otherwise transfer any shares of Share capital of any
Subsidiary, except to the Company or another Subsidiary, or permit any
Subsidiary to issue, sell or otherwise transfer any shares of its Share capital
or the Share capital of any Subsidiary, except to the Company or another
Subsidiary, if the proceeds from such transaction to the Company are less than
$US300 million.

      6.11 U.S. REAL PROPERTY HOLDING CORPORATION. The Company will not be a
"United States real property holding corporation", as defined in Section
897(c)(2) of the Code and Section 1.897-2(b) of the Regulations promulgated by
the Internal Revenue Service and upon written request, will provide to any
holder of Registrable Securities a statement to the effect informing such holder
whether such interest constitutes a U.S. real property interest.

      6.12 SHARE AND OPTION AGREEMENTS. Except as permitted under Section 6.2,
the Company will not (i) issue Ordinary Shares or securities convertible into
Ordinary Shares within 1 year of the Closing under the Series A Purchase
Agreement or (ii) issue share options to its officers, directors, employees or
others who render services to the Company at an exercise price less than the
price per Series A Share paid by the Purchasers, except with respect to either
of the foregoing (A) pursuant to a Share Option Plan in an aggregate amount
approved on the date hereof or such greater number of shares of Ordinary Shares
as approved by the Board of Directors, consistent with the Company's then
general compensation policy, (B) pursuant to any other share option plan
approved by the Board of Directors, (C) pursuant to a Qualified Public Offering,
(D) or pursuant to the exercise of any options existing at the date of the
Closing under the Series A Purchase Agreement..

      6.13 TERMINATION OF NEGATIVE COVENANTS. The covenants set forth in this
Article 6 shall be of no further force or effect upon the closing of the Initial
Public Offering.

      7. MISCELLANEOUS

      7.1 NOTICES. All notices, requests, consents and other communications
hereunder shall be in writing, shall be addressed to the receiving party's
address set forth below or to such other address as a party may designate by
notice hereunder, and shall be either (i) delivered by hand, (ii) made by
telecopy or facsimile transmission, (iii) sent by overnight courier, or (iv)
sent by registered or certified mail, return receipt requested, postage prepaid.

                  If to the Company:   Given Imaging Ltd.
                                       2 Ha'Carmel Street
                                       New Industrial Park

                                                                              25
<Page>

                                       P.O. Box 258
                                       Yoqneam 20692
                                       Israel
                                       Attn: Gavriel Meron, President and CEO
                                       972-4-959-2466 (Fax)

                  With a copy to:      Zellermayer & Pelossof, Advocates
                                       Europe House
                                       37 King Shaul Blvd.
                                       Tel-Aviv 64928
                                       Israel
                                       972-3-693-9555 (Telephone)
                                       972-3-695-2884 (Fax)

                 If to the Purchasers: To the addresses set forth on Exhibit A

                  With copies to:      Wollmuth Maher & Deutsch LLP
                                       500 Fifth Avenue, 12th Floor
                                       New York, New York 10110
                                       Attn: Mason H. Drake, Esq.
                                       (212) 382-3300 (Telephone)
                                       (212) 382-0050 (Fax)

                                       Sharir, Shiv, Friedman & Co., Law Offices
                                       Top Dan building
                                       72 Pinchas Rosen street
                                       Tel Aviv 69512
                                       Israel
                                       Attn: Yoram Shiv, Adv.
                                       Tel: +972 -3-6440105
                                       Fax: +972-3-6440106

      All notices, requests, consents and other communications hereunder shall
be deemed to have been given either (i) if by hand, at the time of the delivery
thereof to the receiving party at the address of such party set forth above,
(ii) if made by telecopy or facsimile transmission, at the time that receipt
thereof has been acknowledged by electronic confirmation or otherwise, (iii) if
sent by overnight courier, on the next business day following the day such
notice is delivered to the courier service, or (iv) if sent by registered or
certified mail, on the fifth business day following the day such mailing is
made.

      7.2 ENTIRE AGREEMENT. This Agreement embodies the entire agreement and
understanding between the parties hereto with respect to the subject matter
hereof and supersedes all prior oral or written agreements and understandings
relating to the subject matter hereof, including the Term Sheet dated August 3,
2000 relating to the offering of the Series A Shares between the Company and
OrbiMed Advisors LLC. No statement, representation, warranty, covenant or
agreement of any kind not expressly set forth in this Agreement shall affect, or
be used to interpret, change or restrict, the express terms and

                                                                              26
<Page>

provisions of this Agreement.

      7.3 MODIFICATIONS AND AMENDMENTS. This Agreement may be amended or
modified, and any provision hereof may be waived, only with the written consent
of (i) the Company, (ii) the holders of at least two-thirds (2/3) of the
outstanding Series A Shares and (iii) the holders of at least two-thirds (2/3)
of the outstanding Ordinary Shares held by the Ordinary Shareholders. Any waiver
or consent hereunder shall be effective only in the specific instance and for
the purpose for which it was given, and shall not constitute a continuing waiver
or consent.

      7.4 ASSIGNMENT. The rights and obligations under this Agreement may not be
assigned by the Company without the prior written consent of at least a majority
of the holders of Registrable Securities, unless specifically permitted by the
terms hereof.

      7.5 BENEFIT. All statements, representations, warranties, covenants and
agreements in this Agreement shall be binding on the parties hereto and shall
inure to the benefit of the respective successors and permitted assigns of each
party hereto. Nothing in this Agreement shall be construed to create any rights
or obligations except among the parties hereto, and no person or entity shall be
regarded as a third-party beneficiary of this Agreement.

      7.6 GOVERNING LAW. This Agreement and the rights and obligations of the
parties hereunder shall be construed in accordance with and governed by the law
of the State of New York, without giving effect to the conflict of law
principles thereof.

      7.7 JURISDICTION AND SERVICE OF PROCESS. Any legal action or proceeding
with respect to this Agreement shall be brought in the courts of the State of
New York or of the United States of America for the District of New York. By
execution and delivery of this Agreement, each of the parties hereto accepts for
itself and in respect of its property, generally and unconditionally, the
jurisdiction of the aforesaid courts. Each of the parties hereto irrevocably
consents to the service of process of any of the aforementioned courts in any
such action or proceeding by the mailing of copies thereof by certified mail,
postage prepaid, to the party at its address set forth in Section 7.1 hereof.

      7.8 SEVERABILITY. In the event that any court of competent jurisdiction
shall determine that any provision, or any portion thereof, contained in this
Agreement shall be unenforceable in any respect, then such provision shall be
deemed limited to the extent that such court deems it enforceable, and as so
limited shall remain in full force and effect. In the event that such court
shall deem any such provision, or portion thereof, wholly unenforceable, the
remaining provisions of this Agreement shall nevertheless remain in full force
and effect.

      7.9 INTERPRETATION. The parties hereto acknowledge and agree that: (i)
each party and its counsel reviewed and negotiated the terms and provisions of
this Agreement and have contributed to its revision; (ii) the rule of
construction to the effect that any ambiguities are resolved against the
drafting party shall not be employed in the interpretation of this Agreement;
and (iii) the terms and provisions of this Agreement shall be construed fairly
as to all parties hereto and not in favor of or against any party, regardless of
which party was generally

                                                                              27
<Page>

responsible for the preparation of this Agreement.

      7.10 HEADINGS AND CAPTIONS. The headings and captions of the various
subdivisions of this Agreement are for convenience of reference only and shall
in no way modify or affect the meaning or construction of any of the terms or
provisions hereof.

      7.11 ENFORCEMENT. Each of the parties hereto acknowledges and agrees that
the rights acquired by each party hereunder are unique and that irreparable
damage would occur in the event that any of the provisions of this Agreement to
be performed by the other parties were not performed in accordance with their
specific terms or were otherwise breached. Accordingly, in addition to any other
remedy to which the parties hereto are entitled at law or in equity, each party
hereto shall be entitled to an injunction or injunctions to prevent breaches of
this Agreement by any other party and to enforce specifically the terms and
provisions hereof in any federal or state court to which the parties have agreed
hereunder to submit to jurisdiction.

      7.12 NO WAIVER OF RIGHTS, POWERS AND REMEDIES. No failure or delay by a
party hereto in exercising any right, power or remedy under this Agreement, and
no course of dealing among the parties hereto, shall operate as a waiver of any
such right, power or remedy of the party, other than as provided by Section 7.3
above. No single or partial exercise of any right, power or remedy under this
Agreement by a party hereto, nor any abandonment or discontinuance of steps to
enforce any such right, power or remedy, shall preclude such party from any
other or further exercise thereof or the exercise of any other right, power or
remedy hereunder. The election of any remedy by a party hereto shall not
constitute a waiver of the right of such party to pursue other available
remedies. No notice to or demand on a party not expressly required under this
Agreement shall entitle the party receiving such notice or demand to any other
or further notice or demand in similar or other circumstances or constitute a
waiver of the rights of the party giving such notice or demand to any other or
further action in any circumstances without such notice or demand.

      7.13 COUNTERPARTS. This Agreement may be executed in one or more
counterparts, and by different parties hereto on separate counterparts, each of
which shall be deemed an original, but all of which together shall constitute
one and the same instrument.

                                                                              28
<Page>

      IN WITNESS WHEREOF, the parties hereto have executed this Investors Rights
Agreement or caused this Agreement to be executed by their duly authorized
representatives; as of the date first written above.

                               GIVEN IMAGING LTD.

                               By: /s/ Ami Erel         G. Meron
                                  -------------------------------------------
                                  Ami Erel,             Dr. Gavriel D. Meron,
                                  Chairman of           President and Chief
                                  The Board             Executive Officer

              Investors Counterpart Signature Pages Begin Next Page

                                                                              29
<Page>

                           SERIES A HOLDERS:

                           CADUCEUS PRIVATE INVESTMENTS, LP

                           By: /s/ Jonathan Silverstein
                              -------------------------------
                           Name:   Jonathan Silverstein
                           Title:

                           ORBIMED ASSOCIATES LLC

                           By: /s/ Jonathan Silverstein
                              -------------------------------
                           Name:   Jonathan Silverstein
                           Title:

                           AUBER INVESTMENTS, LTD.

                           By: /s/ David Leibman
                              -------------------------------
                           Name:  David Leibman
                           Title: Assist. Treas.

                           EATON VANCE WORLDWIDE HEALTH
                           SCIENCES PORTFOLIO

                           By: /s/ Jonathan Silverstein
                              -------------------------------
                           Name:   Jonathan Silverstein
                           Title:

                                                                              30
<Page>

                           FINSBURY WORLDWIDE
                           PHARMACEUTICAL TRUST

                           By: /s/ Jonathan Silverstein
                              -------------------------------
                           Name:   Jonathan Silverstein
                           Title:

                           WOLLMUTH MAHER & DEUTSCH LLP

                           By: /s/ Mason H. Drake
                              -------------------------------
                           Name:   Mason H. Drake
                           Title:  Member

                           OTHER SERIES A PURCHASERS:

                           Name:
                                -----------------------------

                           By:
                              -------------------------------

                                                                              31
<Page>

COUNTERPART SIGNATURE PAGE (INVESTOR RIGHTS AGREEMENT)

      The undersigned hereby agrees to become a party to that certain Investors
Rights Agreement dated as of September 15, 2000 (the "Agreement") among GIven
Imaging Ltd. (the "Company") and others set forth on the signature pages
thereto. From and after the undersigned's execution and delivery and the
Company's acceptance of this Counterpart Signature Page, the undersigned shall
be a party to the Agreement.

------------------------------------------------
Printed Name of Investor

------------------------------------------------
Signature of Investor

                                                By:
                                                   ---------------------------

                                                Title:
                                                      ------------------------

                                                Address:
                                                        ----------------------

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

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

                                                Date:              , 2000
                                                     -------------

Agreed and accepted:

GIVEN IMAGING LTD.

By:
   ---------------------------------------------
Name:
Title:

Date:              , 2000
     -------------

                                                                              32
COUNTERPART SIGNATURE PAGE (INVESTOR RIGHTS AGREEMENT)

      The undersigned hereby agrees to become a party to that certain Investors
Rights Agreement dated as of September 15, 2000 (the "Agreement") among GIven
Imaging Ltd. (the "Company") and others set forth on the signature pages
thereto. From and after the undersigned's execution and delivery and the
Company's acceptance of this Counterpart Signature Page, the undersigned shall
be a party to the Agreement.

RDC -- Rafael Development Corporation Ltd.
------------------------------------------------
Printed Name of Investor

/s/ [ILLEGIBLE]
------------------------------------------------
Signature of Investor

Date: October 3, 2000

Agreed and accepted:

GIVEN IMAGING LTD.

By: /s/ Zvi Ben David
   ---------------------------------------------
Name:  Zvi Ben David
Title: CFO

Date: October 3, 2000

                                                                             33

<Page>

COUNTERPART SIGNATURE PAGE (INVESTOR RIGHTS AGREEMENT)

      The undersigned hereby agrees to become a party to that certain Investors
Rights Agreement dated as of September 15, 2000 (the "Agreement") among GIven
Imaging Ltd. (the "Company") and others set forth on the signature pages
thereto. From and after the undersigned's execution and delivery and the
Company's acceptance of this Counterpart Signature Page, the undersigned shall
be a party to the Agreement.

Discount Investment Corporation Ltd.
------------------------------------------------
Printed Name of Investor

/s/ [ILLEGIBLE]
------------------------------------------------
Signature of Investor

Date: October 3, 2000

Agreed and accepted:

GIVEN IMAGING LTD.

By: /s/ Zvi Ben David
   ---------------------------------------------
Name:  Zvi Ben David
Title: CFO

Date: October 3, 2000

                                                                             34
<Page>

COUNTERPART SIGNATURE PAGE (INVESTOR RIGHTS AGREEMENT)

      The undersigned hereby agrees to become a party to that certain Investors
Rights Agreement dated as of September 15, 2000 (the "Agreement") among GIven
Imaging Ltd. (the "Company") and others set forth on the signature pages
thereto. From and after the undersigned's execution and delivery and the
Company's acceptance of this Counterpart Signature Page, the undersigned shall
be a party to the Agreement.

Elron Electronic Industries Ltd.
------------------------------------------------
Printed Name of Investor

/s/ [ILLEGIBLE]
------------------------------------------------
Signature of Investor

Date: October 3, 2000

Agreed and accepted:

GIVEN IMAGING LTD.

By: /s/ Zvi Ben David
   ---------------------------------------------
Name:  Zvi Ben David
Title: CFO

Date: October 3, 2000

                                                                              35
<Page>

COUNTERPART SIGNATURE PAGE (INVESTOR RIGHTS AGREEMENT)

      The undersigned hereby agrees to become a party to that certain Investors
Rights Agreement dated as of September 15, 2000 (the "Agreement") among GIven
Imaging Ltd. (the "Company") and others set forth on the signature pages
thereto. From and after the undersigned's execution and delivery and the
Company's acceptance of this Counterpart Signature Page, the undersigned shall
be a party to the Agreement.

Amos Horev (Professor)
------------------------------------------------
Printed Name of Investor

/s/ A. Horev
------------------------------------------------
Signature of Investor

Date: 4.10.00, 2000

Agreed and accepted:

GIVEN IMAGING LTD.

By: /s/ Zvi Ben David
   ---------------------------------------------
Name:  Zvi Ben David
Title: CFO

Date: October 3, 2000

                                                                              36

<Page>

COUNTERPART SIGNATURE PAGE (INVESTOR RIGHTS AGREEMENT)

      The undersigned hereby agrees to become a party to that certain Investors
Rights Agreement dated as of September 15, 2000 (the "Agreement") among GIven
Imaging Ltd. (the "Company") and others set forth on the signature pages
thereto. From and after the undersigned's execution and delivery and the
Company's acceptance of this Counterpart Signature Page, the undersigned shall
be a party to the Agreement.

Adigar Techonologies Ltd.
------------------------------------------------
Printed Name of Investor

/s/ [ILLEGIBLE]
------------------------------------------------
Signature of Investor

Date: October 8, 2000

Agreed and accepted:

GIVEN IMAGING LTD.

By: /s/ Zvi Ben David
   ---------------------------------------------
Name:  Zvi Ben David
Title: CFO

Date: October 3, 2000

                                                                              37
<Page>

COUNTERPART SIGNATURE PAGE (INVESTOR RIGHTS AGREEMENT)

      The undersigned hereby agrees to become a party to that certain Investors
Rights Agreement dated as of September 15, 2000 (the "Agreement") among GIven
Imaging Ltd. (the "Company") and others set forth on the signature pages
thereto. From and after the undersigned's execution and delivery and the
Company's acceptance of this Counterpart Signature Page, the undersigned shall
be a party to the Agreement.

Ron Lubash
------------------------------------------------
Printed Name of Investor

/s/ Ron Lubash
------------------------------------------------
Signature of Investor

Date: October 3, 2000

Agreed and accepted:

GIVEN IMAGING LTD.

By: /s/ Zvi Ben David
   ---------------------------------------------
Name:  Zvi Ben David
Title: CFO

Date: October 3, 2000

                                                                              38
<Page>

COUNTERPART SIGNATURE PAGE (INVESTOR RIGHTS AGREEMENT)

      The undersigned hereby agrees to become a party to that certain Investors
Rights Agreement dated as of September 15, 2000 (the "Agreement") among GIven
Imaging Ltd. (the "Company") and others set forth on the signature pages
thereto. From and after the undersigned's execution and delivery and the
Company's acceptance of this Counterpart Signature Page, the undersigned shall
be a party to the Agreement.

Securfin S.p.A.
------------------------------------------------
Printed Name of Investor

/s/ [ILLEGIBLE]
------------------------------------------------
Signature of Investor

Date: October 3, 2000

Agreed and accepted:

GIVEN IMAGING LTD.

By: /s/ Zvi Ben David
   ---------------------------------------------
Name:  Zvi Ben David
Title: CFO

Date: October 30, 2000

                                                                             39

<Page>

COUNTERPART SIGNATURE PAGE (INVESTOR RIGHTS AGREEMENT)

      The undersigned hereby agrees to become a party to that certain Investors
Rights Agreement dated as of September 15, 2000 (the "Agreement") among GIven
Imaging Ltd. (the "Company") and others set forth on the signature pages
thereto. From and after the undersigned's execution and delivery and the
Company's acceptance of this Counterpart Signature Page, the undersigned shall
be a party to the Agreement.

Gary S. Weinstein
------------------------------------------------
Printed Name of Investor

/s/ Gary S. Weinstein
------------------------------------------------
Signature of Investor

Date: 9/22, 2000

Agreed and accepted:

GIVEN IMAGING LTD.

By: /s/ Zvi Ben David
   ---------------------------------------------
Name:  Zvi Ben David
Title: CFO

Date: October 3, 2000

                                                                             40
<Page>

COUNTERPART SIGNATURE PAGE (INVESTOR RIGHTS AGREEMENT)

      The undersigned hereby agrees to become a party to that certain Investors
Rights Agreement dated as of September 15, 2000 (the "Agreement") among GIven
Imaging Ltd. (the "Company") and others set forth on the signature pages
thereto. From and after the undersigned's execution and delivery and the
Company's acceptance of this Counterpart Signature Page, the undersigned shall
be a party to the Agreement.

Harvey Krueger
------------------------------------------------
Printed Name of Investor

/s/ Harry M. Krueger
------------------------------------------------
Signature of Investor

Date: October 3, 2000

Agreed and accepted:

GIVEN IMAGING LTD.

By: /s/ Zvi Ben David
   ---------------------------------------------
Name:  Zvi Ben David
Title: CFO

Date: October 3, 2000

                                                                            41

<Page>

COUNTERPART SIGNATURE PAGE (INVESTOR RIGHTS AGREEMENT)

      The undersigned hereby agrees to become a party to that certain Investors
Rights Agreement dated as of September 15, 2000 (the "Agreement") among GIven
Imaging Ltd. (the "Company") and others set forth on the signature pages
thereto. From and after the undersigned's execution and delivery and the
Company's acceptance of this Counterpart Signature Page, the undersigned shall
be a party to the Agreement.

David Gruber
------------------------------------------------
Printed Name of Investor

/s/ David Gruber
------------------------------------------------
Signature of Investor

Date: September 23, 2000

Agreed and accepted:

GIVEN IMAGING LTD.

By: /s/ Zvi Ben David
   ---------------------------------------------
Name:  Zvi Ben David
Title: CFO

Date: October 3, 2000

                                                                            42

<Page>

COUNTERPART SIGNATURE PAGE (INVESTOR RIGHTS AGREEMENT)

      The undersigned hereby agrees to become a party to that certain Investors
Rights Agreement dated as of September 15, 2000 (the "Agreement") among GIven
Imaging Ltd. (the "Company") and others set forth on the signature pages
thereto. From and after the undersigned's execution and delivery and the
Company's acceptance of this Counterpart Signature Page, the undersigned shall
be a party to the Agreement.

Jason Fertig
------------------------------------------------
Printed Name of Investor

/s/ Jason S. Fertig
------------------------------------------------
Signature of Investor

Date: September 22, 2000

Agreed and accepted:

GIVEN IMAGING LTD.

By: /s/ Zvi Ben David
   ---------------------------------------------
Name:  Zvi Ben David
Title: CFO

Date: Sep. 26, 2000

                                                                            43
<Page>

COUNTERPART SIGNATURE PAGE (INVESTOR RIGHTS AGREEMENT)

      The undersigned hereby agrees to become a party to that certain Investors
Rights Agreement dated as of September 15, 2000 (the "Agreement") among GIven
Imaging Ltd. (the "Company") and others set forth on the signature pages
thereto. From and after the undersigned's execution and delivery and the
Company's acceptance of this Counterpart Signature Page, the undersigned shall
be a party to the Agreement.

Michael I. Brill
------------------------------------------------
Printed Name of Investor

/s/ Michael Brill
------------------------------------------------
Signature of Investor

Date: September 22, 2000

Agreed and accepted:

GIVEN IMAGING LTD.

By: /s/ Zvi Ben David
   ---------------------------------------------
Name:  Zvi Ben David
Title: CFO

Date: Sep. 26, 2000

                                                                            44
<Page>

COUNTERPART SIGNATURE PAGE (INVESTOR RIGHTS AGREEMENT)

      The undersigned hereby agrees to become a party to that certain Investors
Rights Agreement dated as of September 15, 2000 (the "Agreement") among GIven
Imaging Ltd. (the "Company") and others set forth on the signature pages
thereto. From and after the undersigned's execution and delivery and the
Company's acceptance of this Counterpart Signature Page, the undersigned shall
be a party to the Agreement.

Alexis D. Lasser
------------------------------------------------
Printed Name of Investor

/s/ Alexis Lasser
------------------------------------------------
Signature of Investor

Date: 9/22, 2000

Agreed and accepted:

GIVEN IMAGING LTD.

By: /s/ Zvi Ben David
   ---------------------------------------------
Name:  Zvi Ben David
Title: CFO

Date: Sep. 26, 2000

                                                                            45

<Page>

COUNTERPART SIGNATURE PAGE (INVESTOR RIGHTS AGREEMENT)

      The undersigned hereby agrees to become a party to that certain Investors
Rights Agreement dated as of September 15, 2000 (the "Agreement") among GIven
Imaging Ltd. (the "Company") and others set forth on the signature pages
thereto. From and after the undersigned's execution and delivery and the
Company's acceptance of this Counterpart Signature Page, the undersigned shall
be a party to the Agreement.

Rolf Haegler
------------------------------------------------
Printed Name of Investor

/s/ R. Haegler
------------------------------------------------
Signature of Investor

Date: 8/10, 2000

Agreed and accepted:

GIVEN IMAGING LTD.

By: /s/ Zvi Ben David
   ---------------------------------------------
Name:  Zvi Ben David
Title: CFO

Date: October 3, 2000

                                                                            46
<Page>

COUNTERPART SIGNATURE PAGE (INVESTOR RIGHTS AGREEMENT)

      The undersigned hereby agrees to become a party to that certain Investors
Rights Agreement dated as of September 15, 2000 (the "Agreement") among GIven
Imaging Ltd. (the "Company") and others set forth on the signature pages
thereto. From and after the undersigned's execution and delivery and the
Company's acceptance of this Counterpart Signature Page, the undersigned shall
be a party to the Agreement.

Amedeo Carassai
------------------------------------------------
Printed Name of Investor

/s/ Amedeo Carassai
------------------------------------------------
Signature of Investor

Date: October 3, 2000

Agreed and accepted:

GIVEN IMAGING LTD.

By: /s/ Zvi Ben David
   ---------------------------------------------
Name:  Zvi Ben David
Title: CFO

Date: Oct. 30, 2000

                                                                            47
<Page>

COUNTERPART SIGNATURE PAGE (INVESTOR RIGHTS AGREEMENT)

      The undersigned hereby agrees to become a party to that certain Investors
Rights Agreement dated as of September 15, 2000 (the "Agreement") among GIven
Imaging Ltd. (the "Company") and others set forth on the signature pages
thereto. From and after the undersigned's execution and delivery and the
Company's acceptance of this Counterpart Signature Page, the undersigned shall
be a party to the Agreement.

Jacob Benatoff
------------------------------------------------
Printed Name of Investor

/s/ Jacob Benatoff
------------------------------------------------
Signature of Investor

Date: 5-10-, 2000

Agreed and accepted:

GIVEN IMAGING LTD.

By: /s/ Zvi Ben David
   ---------------------------------------------
Name:  Zvi Ben David
Title: CFO

Date: Oct. 30, 2000

                                                                            48

<Page>

                                    EXHIBIT A

RDC Rafael Development Corporation Ltd.

ThermoTrex Corporation

Discount Investment Corporation Ltd.

PEC Israel Economic Corporation

Elron Electronic Industries Ltd.

Trimaran Investment Trust

                                                                              33

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