Document:

<PAGE>

NEITHER THIS WARRANT NOR ANY OF THE SECURITIES ISSUABLE UPON EXERCISE HEREOF
HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
"SECURITIES ACT"), OR ANY STATE SECURITIES LAW. NO TRANSFER OF THIS WARRANT OR
OF THE SECURITIES ISSUABLE UPON EXERCISE HEREOF SHALL BE VALID OR EFFECTIVE
UNLESS (A) SUCH TRANSFER IS MADE PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT
UNDER THE SECURITIES ACT AND IN COMPLIANCE WITH ANY APPLICABLE STATE SECURITIES
LAW, OR (B) THE HOLDER SHALL DELIVER TO THE COMPANY AN OPINION OF COUNSEL IN
FORM AND SUBSTANCE REASONABLY ACCEPTABLE TO THE COMPANY THAT SUCH TRANSFER IS
EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND OF ANY
APPLICABLE STATE SECURITIES LAW.

Warrant No. B-001                                              September 4, 1998

                           SILICON LABORATORIES INC.

                       PREFERRED STOCK PURCHASE WARRANT

         Silicon Laboratories Inc., a Delaware corporation (the "COMPANY"),
hereby grants to Imperial Bank ("PURCHASER"), or its registered assigns or
transferees (Purchaser and each such assign or transferee being referred to
herein as a "HOLDER" and collectively as the "HOLDERS") the right to purchase,
at any time and from time to time on and after the date hereof until the fifth
(5th) anniversary of the date hereof (the "EXPIRATION DATE"), up to 4,765 fully
paid and nonassessable shares of Series B Convertible Preferred Stock of the
Company, par value $0.0001 per share (the "SERIES B PREFERRED STOCK"), on the
terms and subject to the conditions set forth below.

         1.       EXERCISE AND VESTING OF WARRANT.

                  1.1. EXERCISE PRICE. Subject to adjustment as hereinafter
provided, the rights represented by this Preferred Stock Purchase Warrant (this
"WARRANT") are exercisable on and after the date hereof (the "EXERCISE DATE")
until the Expiration Date, at a price (the "EXERCISE PRICE") of $4.76 per share
of the Series B Preferred Stock issuable hereunder (hereinafter, the "WARRANT
SHARES"). The Exercise Price shall be payable in cash, or by certified or
official bank check.

                  1.2. METHOD OF EXERCISE. Upon surrender of this Warrant with a
duly executed Notice of Exercise in the form of ANNEX A attached hereto,
together with payment of the Exercise Price for the Warrant Shares purchased
(except to the extent of conversion pursuant to Section 1.3 herein), at the
Company's principal executive offices (presently located at 2024 East St. Elmo
Road, Austin, Texas 78744-1018) or at such other address as the Company shall

<PAGE>

have advised the Holder in writing (the "DESIGNATED OFFICE"), the Holder shall
be entitled to receive a certificate or certificates for the Warrant Shares so
purchased. The Company agrees that the Warrant Shares shall be deemed to have
been issued to the Holder as of the close of business on the date on which this
Warrant shall have been surrendered together with the Notice of Exercise and
payment for such Warrant Shares.

                  1.3. CONVERSION RIGHT. In lieu of exercising this Warrant as
specified in Section 1.2, Holder may from time to time convert this Warrant, in
whole or in part, into a number of Warrant Shares determined by dividing (a) the
aggregate fair market value of the Warrant Shares or other securities otherwise
issuable upon exercise of this Warrant minus the aggregate Exercise Price
of such Warrant Shares by (b) the fair market value of one Warrant Share. The
fair market value of the Warrant Shares shall be determined pursuant to Section
1.4.

                  1.4. VALUATION. If the Warrant Shares are traded regularly in
a public market, the fair market value of the Warrant Shares shall be the
closing price of the Warrant Shares (or the closing price of the Company's stock
into which the Warrant Shares are convertible) reported for the business day
immediately before Holder delivers its Notice of Exercise to the Company. If the
Warrant Shares are not regularly traded in a public market, the Board of
Directors of the Company shall determine fair market value in its reasonable
good faith judgment. The foregoing notwithstanding, if Holder advises the Board
of Directors of the Company in writing that Holder disagrees with such
determination, then the Company and Holder shall promptly agree upon a reputable
investment banking firm to undertake such valuation. If the valuation of such
investment banking firm is greater than that determined by the Board of
Directors of the Company, then all fees and expenses of such investment banking
firm shall be paid by the Company. In all other circumstances, such fees and
expenses shall be paid by Holder.

         2.       TRANSFER; ISSUANCE OF STOCK CERTIFICATES; RESTRICTIVE
                  LEGENDS.

                  2.1. TRANSFER. Subject to compliance with the restrictions
on transfer set forth in this Section 2, each transfer of this Warrant and
all rights hereunder, in whole or in part, shall be registered on the books
of the Company to be maintained for such purpose, upon surrender of this
Warrant at the Designated Office, together with a written assignment of this
Warrant in the form of ANNEX B attached hereto duly executed by the Holder or
its agent or attorney. Upon such surrender and delivery, the Company shall
execute and deliver a new Warrant or Warrants in the name of the assignee or
assignees and in the denominations specified in such instrument of
assignment, and shall issue to the assignor a new Warrant evidencing the
portion of this Warrant not so assigned, if any. A Warrant, if properly
assigned in compliance with the provisions hereof, may be exercised by the
new Holder for the purchase of Warrant Shares without having a new Warrant
issued. Prior to due presentment for registration of transfer thereof, the
Company may deem and treat the registered Holder of this Warrant as the
absolute owner hereof (notwithstanding any notations of ownership or writing
thereon made by anyone other than a duly authorized officer of the Company)
for all purposes and shall not be affected by any notice to the contrary. All
Warrants issued upon any assignment of Warrants

                                       2

<PAGE>

shall be the valid obligations of the Company, evidencing the same rights,
and entitled to the same benefits as the Warrants surrendered upon such
registration of transfer or exchange.

                  2.2. STOCK CERTIFICATES. Certificates for the Warrant Shares
shall be delivered to the Holder within a reasonable time after the rights
represented by this Warrant shall have been exercised pursuant to Section 1, and
a new Warrant representing the shares of Series B Preferred Stock, if any, with
respect to which this Warrant shall not then have been exercised shall also be
issued to the Holder within such time. The issuance of certificates for Warrant
Shares upon the exercise of this Warrant shall be made without charge to the
Holder hereof including, without limitation, any documentary, stamp or similar
tax that may be payable in respect thereof, PROVIDED, HOWEVER, that the Company
shall not be required to pay any income tax to which the Holder hereof may be
subject in connection with the issuance of this Warrant or the Warrant Shares;
AND PROVIDED FURTHER, that if Warrant Shares are to be delivered in a name other
than the name of the Holder hereof representing any Warrant being exercised,
then no such delivery shall be made unless the person requiring the same has
paid to the Company the amount of transfer taxes or charges incident thereto, if
any.

                  2.3. RESTRICTIVE LEGENDS. (a) Except as otherwise provided in
this Section 2, each certificate for Warrant Shares initially issued upon the
exercise of this Warrant, and each certificate for Warrant Shares issued to any
subsequent transferee of any such certificate, shall be stamped or otherwise
imprinted with a legend in substantially the following form:

         THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE OFFERED, SOLD OR
OTHERWISE TRANSFERRED, PLEDGED OR HYPOTHECATED UNLESS AND UNTIL SUCH SECURITIES
ARE REGISTERED UNDER SUCH ACT OR AN OPINION OF COUNSEL SATISFACTORY TO THE
COMPANY IS OBTAINED TO THE EFFECT THAT SUCH REGISTRATION IS NOT REQUIRED.

                  (b) Except as otherwise provided in this Section 2, each
Warrant shall be stamped or otherwise imprinted with a legend in substantially
the following form;

         NEITHER THIS WARRANT NOR ANY OF THE SECURITIES ISSUABLE UPON EXERCISE
THEREOF HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
"SECURITIES ACT"), OR ANY STATE SECURITIES LAW, NO TRANSFER OF THIS WARRANT OR
OF THE SECURITIES ISSUABLE UPON EXERCISE HEREOF SHALL BE VALID OR EFFECTIVE
UNLESS (A) SUCH TRANSFER IS MADE PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT
UNDER THE SECURITIES ACT AND IN COMPLIANCE WITH ANY APPLICABLE STATE SECURITIES
LAW, OR (B) THE HOLDER SHALL DELIVER TO THE COMPANY AN OPINION OF COUNSEL IN
FORM AND SUBSTANCE REASONABLY ACCEPTABLE TO THE COMPANY THAT SUCH TRANSFER IS
EXEMPT FROM THE REGISTRATION

                                       3

<PAGE>

REQUIREMENTS OF THE SECURITIES ACT AND OF ANY APPLICABLE STATE SECURITIES LAW.

Notwithstanding the foregoing, the legend requirements of this Section 2.3 shall
terminate as to any particular Warrant or Warrant Share when the Company shall
have received from the Holder thereof an opinion of counsel in form and
substance reasonably acceptable to the Company that such legend is not required
in order to ensure compliance with the Securities Act. Whenever the restrictions
imposed by this Section 2.3 shall terminate, the Holder hereof or of Warrant
Shares, as the case may be, shall be entitled to receive from the Company
without cost to such Holder a new Warrant or certificate for Warrant Shares of
like tenor, as the case may be, without such restrictive legend.

         3.       ADJUSTMENT OF NUMBER OF SHARES: EXERCISE PRICE: NATURE
                  OF SECURITIES ISSUABLE UPON EXERCISE OF WARRANTS.

                  3.1. EXERCISE PRICE; ADJUSTMENT OF NUMBER OF SHARES. The
Exercise Price set forth in Section 1 hereof and the number of shares
purchasable hereunder shall be subject to adjustment from time to time as
hereinafter provided.

                  3.2. CONVERSION OF SERIES B SHARES. If all of the Company's
Series B Preferred Stock shall be, or if outstanding would be, at any time prior
to the Expiration Date, converted into shares of the Company's Common Stock,
then the unexercised portion of this Warrant shall be converted into the right
to purchase that number of shares of the Company's Common Stock equal to the
number of shares of the Common Stock that would have been received if this
Warrant had been exercised in full and the Series B Preferred Stock received
thereupon had been simultaneously converted immediately prior to such event, and
the Exercise Price shall be immediately adjusted to equal the quotient obtained
by dividing (x) the aggregate Exercise Price of the maximum number of shares of
Series B Preferred Stock for which this Warrant was exercisable immediately
prior to such conversion, by (y) the number of shares of Common Stock for which
this Warrant is exercisable immediately after such conversion; provided,
however, that in no event shall the Exercise Price as so adjusted be less than
the par value of the Common Stock.

                  3.3.     MERGER, SALE OF ASSETS, ETC. If at any time while
this Warrant, or any portion thereof, is outstanding and unexpired there shall
be a reorganization (other than a combination, reclassification, exchange, or
subdivision of shares as provided in Sections 3.4 and 3.5), merger or
consolidation of the Company with or into another corporation in which the
Company is not the surviving entity, or a merger in which the Company is the
surviving entity but the shares of the Company's capital stock outstanding
immediately prior to the merger are converted by virtue of the merger into other
property, whether in the form of securities, cash or otherwise, or a sale or
transfer of the Company's properties and assets as, or substantially as, an
entirety to any other person, then, as a part of such reorganization, merger,
consolidation, sale or transfer, lawful provision shall be made so that the
Holder of this Warrant shall

                                       4

<PAGE>

thereafter be entitled to receive upon exercise of this Warrant, during the
period specified herein and upon payment of the Exercise Price then in
effect, the number of shares of stock or other securities or cash or property
of the successor corporation resulting from such reorganization, merger,
consolidation, sale or transfer that a Holder of the shares deliverable upon
exercise of this Warrant would have been entitled to receive in such
reorganization, consolidation, merger, sale or transfer if this Warrant had
been exercised immediately before such reorganization, consolidation, merger,
sale or transfer, all subject to further adjustment as provided in this
Section 3. The foregoing provisions of this Section 3.3 shall similarly apply
to successive reorganizations, consolidations, mergers, sales and transfers
and to the stock and securities of any other corporation that are at the time
receivable upon the exercise of this Warrant. If the per-share consideration
payable to the Holder hereof for shares in connection with any such
transaction is in a form other than cash or securities, then the value of
such consideration shall be determined in good faith by the Company's Board
of Directors. In all events, appropriate adjustment shall be made in the
application of the provisions of this Warrant with respect to the rights and
interests of the Holder hereof after the transaction, to the end that the
provisions of this Warrant shall be applicable after that event, as near as
reasonably may be, in relation to any shares or other property deliverable
after that event upon exercise of this Warrant.

                  3.4. RECLASSIFICATION, ETC. If the Company, at any time while
this Warrant, or any portion thereof, remains outstanding and unexpired, shall,
by the reclassification or exchange of securities or otherwise, change any of
the securities as to which purchase rights under this Warrant exist into the
same or a different number of securities of any other class or classes, this
Warrant shall thereafter represent the right to acquire such number and kind of
securities as would have been issuable as the result of such change with respect
to the securities that were subject to the purchase rights under this Warrant
immediately prior to such reclassification, exchange or other change and the
Exercise Price therefor shall be appropriately adjusted, all subject to further
adjustment as provided in this Section 3. No adjustment shall be made pursuant
to this Section 3.4, upon any conversion of the Series B Preferred Stock which
is the subject of Section 3.2

                  3.5. STOCK SPLITS, STOCK DIVIDENDS AND REVERSE STOCK SPLITS.
In case at any time the Company shall split or subdivide the outstanding shares
of Series B Preferred Stock into a greater number of shares, or shall declare
and pay any stock dividend with respect to its outstanding stock that has the
effect of increasing the number of outstanding shares of Series B Preferred
Stock, the Exercise Price in effect immediately prior to such subdivision or
stock dividend shall be proportionately reduced (but not below the par value of
the Series B Preferred Stock) and the number of Warrant Shares purchasable
pursuant to this Warrant immediately prior to such subdivision or stock dividend
shall be proportionately increased, and conversely, in case at any time the
Company shall combine its outstanding shares of Series B Preferred Stock into a
smaller number of shares, the Exercise Price in effect immediately prior to such
combination shall be proportionately increased and the number of Warrant Shares
purchasable upon the exercise of this Warrant immediately prior to such
combination shall be proportionately reduced.

                                       5

<PAGE>

         4.       REGISTRATION; EXCHANGE AND REPLACEMENT OF WARRANT;
                  RESERVATION OF SHARES.

         The Company shall keep at the Designated Office a register in which the
Company shall provide for the registration, transfer and exchange of this
Warrant. The Company shall not at any time, except upon the dissolution,
liquidation or winding-up of the Company, close such register so as to result in
preventing or delaying the exercise or transfer of this Warrant.

         The Company may deem and treat the person in whose name this Warrant is
registered as the Holder and owner hereof for all purposes and shall not be
affected by any notice to the contrary, until presentation of this Warrant for
registration or transfer as provided in this Section 4.

         Upon receipt by the Company of evidence reasonably satisfactory to it
of the loss, theft, destruction or mutilation of this Warrant and (in case of
loss, theft or destruction) of indemnity satisfactory to it, and (in the case of
mutilation) upon surrender and cancellation of this Warrant, the Company will
(in the absence of notice to the Company that the Warrant has been acquired by a
BONA FIDE purchaser) make and deliver a new Warrant of like tenor, in lieu of
this Warrant without requiring the posting of any bond or the giving of any
security.

         The Company shall at all times reserve and keep available out of its
authorized shares of Series B Preferred Stock, solely for the purpose of
issuance upon the exercise of this Warrant, such number of shares of Series B
Preferred Stock as shall be issuable upon the exercise hereof. The Company
covenants and agrees that, upon exercise of this Warrant and payment of the
Exercise Price therefor, all Warrant Shares issuable upon such exercise shall be
duly and validly issued, fully paid and non-assessable.

         5.       FRACTIONAL WARRANTS AND FRACTIONAL SHARES.

         If the number of Warrant Shares purchasable upon the exercise of this
Warrant is adjusted pursuant to Section 3 hereof, the Company shall nevertheless
not be required to issue fractions of shares, upon exercise of this Warrant or
otherwise, or to distribute certificates that evidence fractional shares. With
respect to any fraction of a share called for upon any exercise hereof, the
Company shall pay to the Holder an amount in cash equal to such fraction
multiplied by the current market value of such fractional share as may be
prescribed by the Board of Directors of the Company.

         6.       WARRANT HOLDERS NOT DEEMED STOCKHOLDERS.

         No Holder of this Warrant shall, as such, be entitled to vote or to
receive dividends or be deemed the Holder of Warrant Shares that may at any time
be issuable upon exercise of this Warrant for any purpose whatsoever, nor shall
anything contained herein be construed to confer upon the Holder of this
Warrant, as such, any of the rights of a stockholder of the Company or any right
to vote for the election of directors or upon any matter submitted to
stockholders at

                                       6

<PAGE>

any meeting thereof, or to give or withhold consent to any corporate action
(whether upon any recapitalization, issue or reclassification of stock,
change of par value or change of stock to no par value, consolidation, merger
or conveyance or otherwise), or to receive notice of meetings, or to receive
dividends or subscription rights, until such Holder shall have exercised this
Warrant and been issued Warrant Shares in accordance with the provisions
hereof.

         7.       NOTICES.

         All notices, requests, consents and other communications hereunder
shall be in writing and shall be deemed to have been duly made when delivered
personally, or mailed by registered or certified mail, return receipt requested,
or telecopied or telexed and confirmed in writing and delivered personally or
mailed by registered or certified mail, return receipt requested (a) if to the
Holder of this Warrant, to the address of such Holder as shown on the books of
the Company, or (b) if to the Company, to the address set forth in Section 1.2
of this Warrant; or at such other address as the Holder or the Company may
hereafter have advised the other.

         8.       SUCCESSORS.

         All the covenants, agreements, representations and warranties contained
in this Warrant shall bind the parties hereto and their respective heirs,
executors, administrators, distributees, successors, assigns and transferees.

         9.       LAW GOVERNING.

         This Warrant shall be construed and enforced in accordance with, and
governed by, the laws of the State of Texas (not including the choice of law
rules thereof) regardless of the jurisdiction of creation or domicile of the
Company or its successors or of the Holder at any time hereof.

         10.      ENTIRE AGREEMENT; AMENDMENTS AND WAIVERS.

         This Warrant sets forth the entire understanding of the parties with
respect to the transactions contemplated hereby. The failure of any party to
seek redress for the violation or to insist upon the strict performance of any
term of this Warrant shall not constitute a waiver of such term and such party
shall be entitled to enforce such term without regard to such forbearance. This
Warrant may be amended, and any breach of or compliance with any covenant,
agreement, warranty or representation may be waived, only if the Company has
obtained the written consent or written waiver of the Holder, and then such
consent or waiver shall be effective only in the specific instance and for the
specific purpose for which given.

                                       7

<PAGE>

         11.      SEVERABILITY; HEADINGS.

         If any term of this Warrant as applied to any person or to any
circumstance is prohibited, void, invalid or unenforceable in any jurisdiction,
such term shall, as to such jurisdiction, be ineffective to the extent of such
prohibition or invalidity without in any way affecting any other term of this
Warrant or affecting the validity or enforceability of this Warrant or of such
provision in any other jurisdiction. The Section headings in this Warrant have
been inserted for purposes of convenience only and shall have no substantive
effect.

              [The balance of this page intentionally left blank]

<PAGE>

         IN WITNESS WHEREOF, the Company has caused this Warrant to be duly
executed as of the date first written above.

                                            SILICON LABORATORIES INC.

                                            By: /s/ Navdeep S. Sooch
                                                -----------------------
                                                Navdeep S. Sooch
                                                President

                                            By: /s/ John W. McGovern
                                                -----------------------
                                                John W. McGovern
                                                Chief Financial Officer

Accepted and agreed:

IMPERIAL BANK

By: /s/ Tommy Deavenport
    ----------------------------
    Name:  Tommy Deavenport
    Title: Senior Vice President

                                       9

<PAGE>

                                    ANNEX A

                              NOTICE OF EXERCISE

                     (TO BE EXECUTED UPON PARTIAL OR FULL
                        EXERCISE OF THE WITHIN WARRANT)

         1.  The undersigned hereby elects to purchase _______ shares of
Series B Convertible Preferred Stock of Silicon Laboratories Inc. pursuant to
the terms of the attached Warrant, and tenders herewith payment of the
purchase price of such shares in full.

         1.  The undersigned hereby elects to convert the attached Warrant
into Warrant Shares in the manner specified in the Warrant. This conversion
is exercised with respect to ________ of the Warrant Shares covered by the
Warrant.

         [STRIKE THE PARAGRAPH NUMBERED 1 ABOVE THAT DOES NOT APPLY.]

         2.  Please issue a certificate or certificates representing said
shares in the name of the undersigned or in such other name as is specified
below and deliver such certificate(s) to:

         Ms. Christine M. McCarthy
         Chief Financial Officer
         Controllers Department
         Imperial Bank
         P.O. Box 92991
         Los Angeles, CA 90009

         3.  The undersigned represents it is acquiring the shares solely for
its own account and not as a nominee for any other party and not with a view
toward the resale or distribution thereof except in compliance with
applicable securities laws.

                                            IMPERIAL BANK

                                            ------------------------------
                                                      (Signature)

                                            ------------------------------
                                                        (Date)

                                      A-1

<PAGE>

                                    ANNEX B

                                ASSIGNMENT FORM

         FOR VALUE RECEIVED, the undersigned registered owner of this Warrant
hereby sells, assigns and transfers unto the Assignee named below all of the
rights of the undersigned under this Warrant, with respect to the number of
shares of Series B Convertible Preferred Stock set forth below:

<TABLE>
<CAPTION>

--------------------------------------------------------------------------------
                                            No. of Shares of
Name and Address of Assignee                Series B Convertible Preferred Stock
--------------------------------------------------------------------------------
<S>                                         <C>

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

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

</TABLE>

and does hereby irrevocably constitute and appoint ____________ attorney-in-fact
to register such transfer onto the books of Silicon Laboratories Inc.
maintained for the purpose, with full power of substitution in the premises.

Dated:                                      Print Name:
       --------------------                             --------------------

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

                                            Witness:
                                                     -----------------------

NOTICE:    The signature on this assignment must correspond with the name
           as written upon the face of this Warrant in every particular,
           without alteration or enlargement or any change whatsoever.

                                     B-1

<PAGE>

                                   EXHIBIT B

  Form of Amendment No.1 to Amended and Restated Investors' Rights Agreement

                                  (Attached)

                                       6<PAGE>

                            PCTEL, INC/ SILICON LABS

                           VOLUME PURCHASE AGREEMENT

1. ACCEPTANCE: EXCEPT AS SET FORTH ON THE ATTACHED ADDENDUM WHICH SHALL TAKE
PRECEDENCE IN THE EVENT OF ANY CONFLICT, THE TERMS OF SALE CONTAINED HEREIN
STATE THE EXCLUSIVE TERMS APPLICABLE TO SALES BY SILICON LABORATORIES INC. (THE
"SELLER") TO PC-TEL Global, INC. ("THE BUYER") HEREUNDER, NOTWITHSTANDING ANY
DIFFERENT OR ADDITIONAL TERMS IN BUYER'S PURCHASE ORDER, TO WHICH SELLER HEREBY
OBJECTS. SELLER'S FAILURE TO OBJECT TO PROVISIONS CONTAINED IN ANY
COMMUNICATION FROM BUYER SHALL NOT BE DEEMED A WAIVER OF THE CONDITIONS OF THIS
ACCEPTANCE. ANY CHANGES IN THE TERMS CONTAINED HEREIN MUST SPECIFICALLY BE
AGREED TO IN WRITING BY AN OFFICER OF THE SELLER BEFORE BECOMING BINDING ON
EITHER THE SELLER OR THE BUYER. All orders or contracts must be approved and
accepted by the Seller at its home office. These terms shall be applicable
whether or not they are attached to or enclosed with the products to be sold or
sold hereunder. No Seller prices shall be subject to audit.

2.   DURATION:

     This Agreement shall become effective On June 1st, 1998 ("Effective Date")
and continue in effect for a term of two (2) years.

3.   PAYMENT:

     (a) Unless otherwise agreed by Seller in writing, all invoices are due and
payable thirty (30) days from date of invoice. No discounts are authorized.
Shipments, deliveries, and performance of work shall at all times be subject to
the approval of the Seller's credit department and the Seller may at any time
decline to make any shipments or deliveries or perform any work except upon
receipt of payment or upon terms and conditions or security satisfactory to
such department.

     (b) If, in the sole judgment of the Seller, the financial condition or
payment history of the Buyer at any time does not justify continuation of
production or shipment on the terms of payment originally specified, the Seller
may require full or partial payment in advance and, in the event of the
bankruptcy or insolvency of the Buyer under the bankruptcy or insolvency laws,
the Seller shall be entitled to cancel any order then outstanding and shall
receive reimbursements for its cancellation charges.

     (c) Each shipment shall be considered a separate and independent
transaction, and payment therefor shall be made accordingly. If shipments are
delayed by the Buyer, payments shall become due on the date when the Seller is
prepared to make shipment. If the work covered by the purchase order is delayed
by the Buyer, payments shall be made based on the purchase price and the
percentage of completion. Products held for the Buyer shall be at the risk and
expense of the Buyer.

4. TAXES: Unless otherwise provided herein, the amount of any present or future
sales, use, revenue, excise or other taxes, fees, or other charges of any
nature, imposed by any public authority (national, state, local or other)
applicable to the products covered by any order, or the manufacture or sales
thereof shall be added to the purchase price and shall be paid by the Buyer, or
in lieu thereof, prior to shipment the Buyer shall provide the Seller with a
tax exemption certificate acceptable to the taxing authority.

5.   PRICES AND RELEASES:

     (a)  All prices are quoted in U.S. dollars.

     (b)  SI Labs agrees to provide pricing for all similar products to PCtel on
          a most favored customer basis to PCtel within market segments limited
          to soft modem chipset or board level suppliers and controllerless
          modem chipset or board level suppliers PCtel shall always have a price
          lower than any other customer for similar products. In the event that
          a price is quoted by SILABS or products are shipped by SILABS to other
          customers for any similar products which is equal to or lower than
          that price offered to PCtel, a retroactive price protection shall be
          granted to PCtel for all products shipped by SILABS to PCtel ninety
          (90) days prior to the infringing quotation or shipment. In addition
          any backlog PCtel orders shall be reset to the new price. The
          foregoing shall be the exclusive remedy given by SILabs to PCtel.

     (c)  Prices and associated volumes shall be decribed in the adjunct
          "addendum A" to this agreement.

<PAGE>

6. PRICE ADJUSTMENTS: Seller's unit prices are based on certain material costs.
These materials include, but are not limited to, gold, packages and silicon.
Adjustments shall be as follows:

     (a) Gold. If Seller has a Gold Price Adjustment List, the price at the time
of shipment shall be adjusted for increases in the cost of gold in accordance
with that list. This adjustment will be shown as a separate line item on each
invoice.

     (b) Other Materials. In the event of significant increases in the price of
other materials, Seller reserves the right to renegotiate the unit prices..

7. SPECIAL PRODUCTS: The following provisions are to be considered a part of
all Special Product quotations and orders. "Special Products" are those calling
for products not contained in Seller's current catalog or price list, or those
requiring modifications to catalog products (including semi-custom, custom, or
application specific products), or those requiring sample, environmental,
mechanical or life testing, 100% reliability screening, quality conformance
qualification, or any combination thereof. These provisions supersede any other
terms or conditions which are inconsistent herewith.

     (a) Delivery dates are best estimates only and are subject to (1) Seller's
receipt of order and negotiable specifications containing where applicable, all
quoted waivers or exceptions; (2) successful first-time passage of products
submitted to electrical performance test, to environmental or life test
processing required by applicable specifications.

     (b) Seller assumes no responsibility for refund or replacement of products
shipped at Buyer's request prior to successful completion of acceptance or
qualification tests performed by Seller, whether such tests are at Buyer's
request or otherwise.

     (c) Buyer may not make changes in the drawings, designs or specifications
for the items to be sold hereunder without Seller's prior consent.

     (d) Unless otherwise agreed in a writing signed by both Buyer and Seller,
Seller shall retain title to and possession of all tooling of any kind
(including but not limited to masks and pattern generator tapes) used in
production of products furnished hereunder.

     (e) All proprietary designs, concepts, drawings, data, processes, pattern
generator tapes, masks and any other information which shall be disclosed by
Seller in making a quotation or in the performance of a contract to sell the
goods covered hereby, shall not be disclosed to third parties by Buyer. If
Seller and Buyer have executed a "Non-Disclosure Agreement," all applicable
provisions shall hereby be incorporated by reference.

     (f) As between Seller and Buyer, Seller shall own all patents, copyrights
and mask work rights in or relating to each product developed by Seller whether
or not such product is developed to specifications furnished by Buyer.

8. MINIMUM ORDER: Unless otherwise agreed by Seller in writing, Seller's
minimum order amount shall be one hundred dollars ($100.00) for individual
production orders.

9. TITLE: Unless otherwise agreed in writing by Seller, delivery of the
products hereunder shall be made F.O.B. Texas, Seller's plant, and title and
liability for loss or damage thereto shall pass to Buyer upon Seller's tender
of delivery of the goods to a carrier for shipment to Buyer, and any loss or
damage thereafter shall not relieve Buyer from obligation hereunder.
Transportation expenses and insurance shall be paid by the Buyer.

10. DELIVERY: Shipping dates are approximate and are based upon prompt receipt
from Buyer of all necessary information. In no event will Seller be liable for
any re-procurement costs, nor for delay or non-delivery, due to causes beyond
its reasonable control including, but not limited to, acts of God, acts of
civil or military authority, priorities, fires, strikes, lockouts, slow-downs,
shortages, factory or poor conditions, yield problems, or inability to obtain
necessary labor, materials, or manufacturing facilities. In the event of any
such delay, the date of delivery shall, at the request of the Seller, be
deferred for a period equal to the time lost by reason of the delay.

11. SUBSTITUTIONS AND MODIFICATIONS OF GOODS: Seller may modify the
specifications of goods designed by Seller and substitute goods manufactured to
such modified specifications for those specified herein provided such goods
substantially conform to this contract., provided Seller receives Buyer's
written approval.

12. SOFTWARE: All software provided by Seller shall be subject to the license
agreement and/or terms and conditions accompanying the software. Without
limitation, a license agreement and/or terms and conditions may be printed or
may be provided electronically. ALL SOFTWARE IS PROVIDED "AS IS" WITH NO
WARRANTY WHATSOEVER.

                                      -2-

<PAGE>

13.  ACCESS TO TECHNOLOGY: in the event that SILABS becomes the subject of
voluntary or involuntary petition in bankruptcy or any proceeding related to
insolvency, or composition for the benefit of creditors, SILABS agrees to
grant access to the Product Technology through means of a standard form of
third party technology escrow which would release and license (at no charge)
the Product technology. Furthermore, SILABS agrees to enter into and execute
the before mentioned escrow agreement within (90) ninety days following the
execution of this agreement. In the event SILABS emerges from any such
bankruptcy or insolvency proceeding, the Product Technology will be returned
to SILABS and SILABS will resume supply of Products to PC-TEL.

14.  CAPACITY AND FORECAST FLEXIBILITY: Based upon a six month rolling
forecast from PC-TEL, SILABS guarantees 50% upside quantities for the first
two months of the 6 month rolling forecast and 100% upside quantities for
months three through six. The six month rolling forecast will be provided by
PC-TEL to SILABS on a monthly basis on or before the first Tuesday of each
month. The SILABS upside guarantee shall become effective 60 days after
receiving the first six month rolling forecast from PC-TEL. PC-TEL will make
best efforts to provide timely and accurate forecasts.

15.  LIMITED WARRANTY:

     (a) General. Seller warrants that its packaged products furnished hereunder
will at the time of delivery be free from defects in material and workmanship
and will conform on the basis of form, fit and function to Seller's applicable
specifications or, if appropriate, to specifications accepted by Seller
therefor. Seller's obligation or liability hereunder shall be limited to, at
Seller's option, either refunding the purchase price of, repairing, or
replacing, any products for which written notice of nonconformance hereunder is
received by Seller within two years following the date of shipment, provided,
such nonconforming products are, with Seller's prior written authorization,
returned to Seller, FOB Seller's plant, within thirty (30) days after the two
year period. This warranty shall not apply to unpackaged semiconductor device
die or wafers or to any products in other than their original condition, or to
any products which Seller determines have, by Buyer or otherwise, been subjected
to operating or environmental conditions in excess of the maximum value
established therefor in the applicable specifications or otherwise have been the
subject of mishandling, misuse, neglect, improper testing, repair, alteration or
damage.

     (b) Die. Seller warrants that its device die or wafers furnished hereunder
will at the time of delivery be free of defects in material and workmanship and
will conform to specifications established therefor, or if applicable, to
specifications accepted by Seller. Seller's obligation hereunder shall be
limited to, at Seller's option, replacing or refunding the purchase price for
any products for which written notice of nonconformance hereunder is received by
Seller within sixty (60) days following the date of shipment, provided such
nonconforming products are, with Seller's prior written authorization, returned
to Seller, F.O.B. Seller's plant, within thirty (30) days after the sixty (60)
day period. This warranty shall not apply to any die or wafers which Seller
determines have, by Buyer or otherwise, been subjected to operating or
environmental conditions in excess of the maximum value established therefor in
the applicable specifications or otherwise have been the subject of mishandling,
misuse, neglect, improper testing, repair, alteration or damage.

     (c) Technical Assistance. Seller's warranty as herein above set forth shall
not be enlarged, diminished or affected by, and no obligation or liability shall
arise or grow out of, Seller's rendering of technical advice, facilities or
service in connection with Buyer's order of the goods furnished hereunder.

     (d) Moisture/Static Sensitive. Seller ships all products in vacuum sealed
antistatic packages. Seller's warranty as hereinabove set forth shall not cover
warranty repair, replacement, or refund on product or devices damaged by static
due to Buyer's failure to properly ground.

     (e) Software. Software delivered hereunder is furnished "AS IS". SELLER
MAKES NO WARRANTIES, WHETHER EXPRESS, IMPLIED, STATUTORY, OR OTHERWISE, WITH
RESPECT TO SUCH SOFTWARE AND DOCUMENTATION DESCRIBING SUCH SOFTWARE, ITS
QUALITY, ITS PERFORMANCE, ITS MERCHANTABILITY, OR FITNESS FOR A PARTICULAR
PURPOSE. The entire risk as to the quality and performance of software and
documentation describing such software is with Buyer.

     (f) Disclaimer. THE ABOVE WARRANTIES EXTEND TO BUYER ONLY AND NOT TO
BUYER'S CUSTOMERS OR USERS OF BUYER'S PRODUCTS AND ARE IN LIEU OF ALL OTHER
WARRANTIES WHETHER EXPRESS, IMPLIED, STATUTORY, OR OTHERWISE, INCLUDING IMPLIED
WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. IN NO EVENT
SHALL SELLER OR BUYER BE LIABLE FOR SPECIAL OR CONSEQUENTIAL DAMAGES REGARDLESS
OF WHETHER IT HAS BEEN NOTIFIED IN ADVANCE OF THE POSSIBILITY THEREOF

                                      -3-

<PAGE>

16.  REMEDIES: If Seller breaches its warranties as contained in paragraph 13
herein, Seller's sole and exclusive liability shall be (at Seller's option)
to refund the purchase price of, repair or replace any such goods which are
returned by Buyer during the applicable warranty period set forth above,
provided that (a) Seller is promptly notified in writing upon discovery by
Buyer that such goods failed to conform to this contract with detailed
explanation of any alleged deficiencies, (b) such goods are returned to
Seller, F.O.B. Seller's plant from which goods were shipped and (c) Seller's
examination of such goods shall disclose that such alleged deficiencies
actually exist and were not caused by accident, misuse, neglect, alteration,
improper installation, unauthorized repair, or improper testing. If such
goods fail to perform as warranted, Seller shall reimburse Buyer for the
transportation charges paid by Buyer for such goods. If Seller elects to
repair or replace such goods, Seller shall have a reasonable time to make
such repairs or replace such goods.

17.  LIMITATION OF LIABILITY: EXCEPT WITH RESPECT TO THIRD PARTY CLAIMS
ARISING OUT OF THE OPERATION OF SECTION 22 OR A BREACH OF SECTION 23, IN NO
EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHER FOR ANY SPECIAL, COLLATERAL,
INDIRECT, INCIDENTAL OR CONSEQUENTIAL DAMAGES ARISING OUT OF THIS CONTRACT,
INCLUDING, WITHOUT LIMITATION, PROVISIONS REGARDING WARRANTIES, GUARANTEES,
INDEMNITIES, AND PATENT INFRINGEMENT, SUCH DAMAGES TO INCLUDE BUT NOT BE
LIMITED TO, COSTS OF REMOVAL AND REINSTALLATION OF ITEMS, LOSS OF GOODWILL,
LOSS OF PROFITS, OR LOSS OF USE, REGARDLESS OF WHETHER SELLER HAS BEEN
NOTIFIED IN ADVANCE OF THE POSSIBILITY THEREOF. EXCEPT WITH RESPECT TO THIRD
PARTY CLAIMS ARISING OUT OF THE OPERATION OF SECTION 22 OR A BREACH OF
SECTION 23 OR IN THE CASE OF GROSS NEGLIGENCE OR INTENTIONAL MISCONDUCT.
THESE LIMITATIONS SHALL APPLY NOTWITHSTANDING ANY FAILURE OF ESSENTIAL
PURPOSE OF ANY LIMITED REMEDY.

18.  INSPECTION: Unless otherwise specified and agreed upon, the material to
be furnished under this contract shall be subject to the Seller's standard
inspection at the place of manufacture. If it has been agreed upon and
specified in this order that Buyer is to inspect or provide for inspection at
place of manufacture such inspection shall be so conducted as to not
interfere unreasonably with Seller's instructions and consequent approval or
rejection by the Buyer shall be made before shipment of the material.
Notwithstanding the foregoing, if, upon receipt of such material by Buyer,
the same shall appear not to conform to this contract, the Buyer shall
immediately notify the Seller of such conditions and afford the Seller a
reasonable opportunity to inspect the material. No material shall be returned
without Seller's consent. Seller's Return Material Authorization Control
Number must accompany such returned material.

19.  ACCEPTANCE: Within twenty (20) days after shipment by Seller, Buyer may,
by prompt written notice to Seller, reject any product furnished hereunder
which, as delivered by Seller, has a defect in material or workmanship or (i)
with respect to packaged products, does not conform to Seller's applicable
specifications or, if appropriate, to specifications accepted by Seller
therefor, or (ii) with respect to die or wafers, does not conform to
specifications established therefor or, if applicable to specifications
accepted by Seller. Buyer's rights, and Seller's obligation or liability,
with respect to rejected products shall be limited to, at Seller's option,
either refunding the purchase price of, repairing, or replacing any products
for which written notice of nonconformance hereunder is received by Seller as
set forth herein within thirty (30) days after shipment by Seller. Any
product which is not so rejected by Buyer shall be deemed irrevocably
accepted. Notwithstanding the foregoing, any product which has been the
subject of mishandling, misuse, neglect, improper testing, repair,
alteration, extreme environmental conditions, or damage shall be deemed
accepted. Product returns shall be in accordance with the procedures
specified in paragraph 16.

20.  RESCHEDULING: Buyer may reschedule orders for standard products under
this contract on written notice to Seller at least thirty (30) days prior to
Seller's scheduled delivery date. Buyer may reschedule orders for application
specific versions of standard products, semi-custom products, or custom
products on written notice to Seller at least thirty (30) days prior to
Seller's scheduled delivery date. All quantities must be rescheduled for
delivery within twelve (12) months of Seller's original scheduled delivery
dates; otherwise this contract may be cancelled by Seller, and Buyer shall be
liable for termination charges as provided herein.

                                      -4-
<PAGE>

21.  TERMINATION AND CANCELLATION: Except to the extent noted below orders
are not subject to cancellation or termination for convenience.

     (a) Buyer may terminate this contract upon sixty (60) days advance
     written notice to Seller. Buyer may terminate orders, or portions of
     orders, upon written notice to Seller at least sixty (60) days prior to
     the scheduled delivery date. In each such event Buyer shall be liable for
     termination charges which shall include a price adjustment based on the
     quantity of goods actually delivered, and all costs, direct or indirect,
     incurred and committed for this contract together with a reasonable
     allowance for prorated expenses and anticipated profits.

     (b) Unless otherwise specified on the face hereof, all quantities must be
     released no more than twelve (12) months and shipments scheduled no more
     than twelve (12) months from the date of Seller's receipt of Buyer's
     initial purchase order, otherwise this contract may be terminated by
     Seller and Buyer shall be liable for termination charges as provided
     herein.

     (c) If either party defaults in performance of any material obligation
     hereunder and if any such default is not corrected within (60) sixty days
     after the defaulting party receive written notice thereof from the
     non-defaulting party, then the non defaulting party, at its option, may
     in addition to any other remedies it may have, terminate this agreement.

     (d) Either party may terminate this agreement effective upon written
     notice to the other party in the event that the other part becomes the
     subject of voluntary or involuntary petition in bankruptcy or any
     proceeding related to insolvency, or composition for the benefit of
     creditors, if that petition or proceeding is not dismissed within (60)
     sixty days after filing.

22.  INDEMNITY: Seller shall defend Buyer against any suit or proceeding
brought against Buyer insofar as such suit or proceeding is based on a claim
that any goods manufactured and supplied by Seller to Buyer constitute direct
infringement of any copyright, mask work right, or duly issued United States
patent and Seller shall pay all damages and costs finally awarded therein
against Buyer, provided that Seller is promptly informed and furnished a copy of
each communication, notice or other action relating to the alleged infringement
and is given complete authority, information and assistance (at Seller's
expense) necessary to defend or settle said suit or proceeding; provided, that
Seller shall not be obligated to defend or be liable for costs and damages if
the infringement arises out of compliance with Buyer's specifications, or from a
combination with, and addition to, or modification of the goods after delivery
by Seller, or from use of the goods, or any part thereof, in the practice of a
process, or from any settlement or compromise incurred or made by Buyer without
Seller's prior written consent. Seller's obligations hereunder shall not apply
to any infringement occurring after Buyer has received notice of such suit or
proceeding alleging infringement unless Seller has given written permission for
the continued use of goods after notice of such infringement. If any goods
manufactured and supplied by Seller to Buyer shall be held to infringe any
copyright, mask work right, or United States patent and Buyer shall be enjoined
from using same, Seller at its option and its expense, will use good faith
efforts to, (a) procure for Buyer the right to use such goods free of any
liability for infringement, or (b) replace such goods with a non-infringing
substitute otherwise complying substantially with all requirements of this
contract, or (c) refund the purchase price and the transportation costs of such
goods. If the infringement by Buyer is alleged prior to completion of delivery
of the goods under this contract, Seller may decline to make further shipments
without being in breach of this contract, and, provided Seller has not been
enjoined from selling said goods to Buyer, Seller agrees to supply said goods to
Buyer if Buyer furnishes to Seller the written agreement of Buyer that the
indemnity obligations herein stated with respect to Seller shall reciprocally
apply with respect to Buyer.

     Seller's liability and obligations arising out of this section with respect
to any units shall not exceed the amount received by Seller from Buyer for such
units.

     If any such suit or proceeding is brought against Seller based on a claim
that the goods manufactured by Seller in compliance with Buyer's specifications
and supplied to Buyer directly infringe any copyright, mask work right or United
States patent, then the indemnity obligations herein stated with respect to
Seller shall reciprocally apply with respect to Buyer. The sale by Seller of the
items ordered hereunder does not grant to, convey, or confer upon Buyer or
Buyer's customers, or upon anyone claiming under Buyer, a license, express or
implied, under any copyrights, mask work rights, or patent rights of Seller
covering or relating to any combinations, machines or processes in which said
items might be or are used.

     THE FOREGOING STATE THE SOLE AND EXCLUSIVE LIABILITY OF THE PARTIES HERETO
FOR INFRINGEMENT AND IS IN LIEU OF ALL WARRANTIES, EXPRESS, IMPLIED, STATUTORY,
OR OTHERWISE IN REGARD THERETO.

                                     -5-

<PAGE>

23.  CONFIDENTIALITY: Each party agrees that it will keep in confidence, and
prevent the use (other than for the purposes of this contract) or disclosure
to any person, all technical information and data (hereinafter referred to as
"data") which is designated in writing, or by appropriate stamps, or legend
by the disclosing party, to be of a proprietary or confidential nature, and
is received from the other under this Agreement and which pertains to
proprietary or confidential data regarding its technological techniques,
inventions, or research and development, provided; however, that neither
party shall be liable for the of any data if the same: (A) was generally
available to the public at the time of disclosure to the receiving party; or
(B) becomes generally available to the public, except as the result of
unauthorized disclosure by the receiving party; or (C) was known, without
confidentiality restriction, to the receiving party and documented in writing
prior to its receipt, and so informs the disclosing party of such facts at
the time of disclosure; or (D) is disclosed inadvertently, despite the
exercise of the same degree of care as each party takes to preserve and
safeguard its own proprietary information; or (E) if the disclosing party
agrees in writing that it can be disclosed by the receiving party to a third
party; or (F) becomes known to the receiving party, without confidentiality
restriction, from a source other than the disclosing party without breach of
this Agreement by the receiving party; or (G) is independently developed by
the receiving party without use of the disclosing party's data; or (H) is
required by law to be released; or (I) is disclosed after three (3) years
from the date of this contract.

     SILABS WILL HONOR ALL ACTIVE NON DISCLOSURE AGREEMENTS IN PLACE
     BETWEEN SILABS AND PC-TEL, AND USE EXTREME CARE IN HANDLING ALL
     INFORMATION RELATED TO PRODUCTS NOT YET RELEASED TO THE MARKETPLACE.
     FURTHERMORE, SILABS WILL WORK CLOSELY WITH PC-TEL ON THE APPROPRIATE
     LANGUAGE AND MARKETING MESSAGES RELATED TO THE PC-TEL - SILABS
     RELATIONSHIP. SILABS AGREES TO ONLY COMMUNICATE INFORMATION TO THIRD
     PARTIES (RELATED TO THE PC-TEL RELATIONSHIP, TECHNOLOGY, AND PRODUCTS)
     THAT HAS BEEN APPROVED BY PC-TEL

24.  NONWAIVER OF DEFAULT: In the event of any default by Buyer, Seller may
decline to make further shipments without being in breach hereof. If Seller
elects to continue to make shipments, Seller's action shall not constitute a
waiver of any default by Buyer or in any way affect Seller's legal remedies
for any default hereunder.

25.  ASSIGNMENT: This contract shall be binding upon and inure to the benefit
of the parties and the successors and assigns of the entire business and
goodwill of either Seller or Buyer, or of that part of the business of either
used in the performance of this contract, but shall not be otherwise
assignable.

26.  LEGAL COMPLIANCE: Buyer at all times shall comply with all applicable
federal, state, and local laws and regulations.

THE PRODUCTS COVERED BY THIS CONTRACT MAY FALL WITHIN THE GROUP OF "STRATEGIC"
ELECTRONIC PRODUCTS THAT ARE WHOLLY OR PARTLY OF U.S. ORIGIN OR TECHNOLOGY, THE
EXPORT OF WHICH IS SUBJECT TO EXPORT LICENSE CONTROL BY THE U.S. GOVERNMENT.
BUYER, BY ACCEPTING THESE PRODUCTS, CERTIFIES THAT HE WILL NOT EXPORT OR
RE-EXPORT THE PRODUCTS FURNISHED HEREUNDER UNLESS HE COMPLIES FULLY WITH ALL
LAWS AND REGULATIONS OF THE UNITED STATES RELATING TO SUCH EXPORT OR RE-EXPORT,
INCLUDING BUT NOT LIMITED TO THE EXPORT ADMINISTRATION ACT OF 1979, AS AMENDED
AND THE EXPORT ADMINISTRATION REGULATIONS OF THE U.S. DEPARTMENT OF COMMERCE.

27.  APPLICABLE LAW: The validity, performance, and construction of this
contract shall be governed by the internal laws of the State of California,
without reference to conflict of laws principles.

28.  U.S. GOVERNMENT CONTRACTS: In the event the goods furnished hereunder
are used in the performance of a U.S. Government contract or subcontract, the
Government procurement regulation clauses required to be passed on to
subcontractors are excluded from this agreement unless separately agreed to
in writing by Seller. In no event shall Government clauses regarding "Rights
in Data" or "Subcontractor Cost and Pricing Data" be incorporated herein.

29.  ATTORNEYS FEES: In the event that any action is brought to enforce any
provision of this contract, the prevailing party shall be entitled to recover
from the other party, in addition to any judgment, its attorneys fees and
expenses.

30.  LIFE SUPPORT AND NUCLEAR POLICY: Seller's products are not designed,
intended, authorized, or warranted to be suitable for use in life support or
nuclear applications, devices or systems. Examples of nuclear applications
are applications in nuclear reactors or any device designed or used in
connection with the handling, processing, packaging, preparation,
utilization, fabricating, alloying, storing, or disposal of fissionable
material or waste products thereof. Inclusion by Buyer of Seller's products
in such applications is fully at Buyer's risk, and Buyer shall indemnify and
hold Seller and its suppliers harmless from all costs, loss, liability, and
expense (including without limitation

                                      -6-

<PAGE>

court costs and attorneys fees) arising out of such inclusion by Buyer or its
direct or indirect customers.

31.  MODIFICATION: THIS CONTRACT CONSTITUTES THE ENTIRE AGREEMENT BETWEEN THE
PARTIES RELATING TO THE SALE OF THE GOODS DESCRIBED ON THE FACE HEREOF AND
SUPERSEDES ALL PRIOR OR CONTEMPORANEOUS COMMUNICATIONS, REPRESENTATIONS, OR
AGREEMENTS, EITHER ORAL OR WRITTEN, WITH RESPECT TO THE SUBJECT MATTER
HEREOF, AND ANY REPRESENTATIONS OR STATEMENTS OF ANY KIND MADE BY ANY
REPRESENTATIVE OF SELLER, WHICH ARE NOT STATED HEREIN, SHALL NOT BE BINDING
ON SELLER. NO MODIFICATION OF ANY PROVISION UPON THE FACE OR REVERSE OF
THIS CONTRACT SHALL BE BINDING UPON SELLER UNLESS MADE IN WRITING AND
SIGNED BY A DULY AUTHORIZED REPRESENTATIVE OF SELLER LOCATED IN AUSTIN, TEXAS.

        PC-TEL INC.                   Silicon Labs, Inc.

By:     /s/ [ILLEGIBLE]            By:       /s/ Gary R. Gay
       ------------------------           -------------------------------
Title:   V.P. Marketing            Title:    VP of Sales
       ------------------------           -------------------------------
Date:    12/28/98                  Date:     10/16/98
       ------------------------           -------------------------------

                                     -7-

<PAGE>

                                  ADDENDUM "A"

                              PRICING AND VOLUMES

1.   PRICES: SiLabs shall honor a price point $2.33 per unit for Products
shipped to PCT in calendar year 1998, commencing on August 27, 1998. No later
than sixty (60) days prior to the conclusion of calendar year 1998, and each
annual period thereafter, the parties will negotiate the unit prices
applicable to succeeding calendar year. In the event that the parties are
unable to agree on such unit price for the upcoming annual period, the prices
shall be set at no greater than the existing unit price.

2.   MINIMUM VOLUME COMMITMENT. PCtel shall purchase a minimum annual
quantity of 600,000 units of SiLab's DAA chipset in calendar year 1998. This
volume may consist of the the current SI3033/PCtel 301 or future versions of
chips containing Silicon Labs integrated Codec/DAA technology. No later than
sixty (60) days prior to the conclusion of calendar year 1998, and each
annual period thereafter, the parties will negotiate the annual minimum
quantity, if any, applicable to succeeding calendar year.

                                     -8-

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