Document:

BCE Subscription Plans (English translation)

 Exhibit 10.3 
 SEQUANS COMMUNICATIONS 
 Regulation 

 
  

Founders Warrant Granting Plan. 2006-1 

 - SUMMARY - 
 I - DEFINITION OF THE FOUNDERS WARRANT SUBSCRIPTION PLAN (BCE) 
 II - LEGAL FRAMEWORK FOR
THE PLAN 
 III - DESCRIPTION OF THE PLAN 
  

	 	•	 	 Granting of the BCE 

  

	 	•	 	 Terms and conditions of the BCE 

  

	 	•	 	 Beneficiary termination of services with the Company 

  

	 	•	 	 Determination of the exercise price of the BCE 

  

	 	•	 	 Protection of the rights of the Beneficiaries during the exercise period of the BCE 

IV - TERMS AND CONDITIONS FOR EXERCISING BCE 
  

	 	•	 	 Suspension of the rights to exercise the BCE 

  

	 	•	 	 Procedures and conditions for exercising the BCE 

 V - FEATURES OF SHARES SUBSCRIBED 
  

	 	•	 	 Delivery and form of shares 

  

	 	•	 	 Possession rights 

VI - TAX PROVISIONS 

  
 2 

 I – DEFINITION OF FOUNDERS WARRANT SUBSCRIPTION PLAN (BCE) 

In order to reward its employees and managers, SEQUANS COMMUNICATIONS wishes to set up a system enabling them to share its growth. 

A Founders Warrant (BCE) subscription plan is a mechanism by which a company offers to its employees and/or its managers (subject to employees taxation
regime), the possibility to subscribe for a BCE for free which subsequent exercise allows to subscribe for new shares during a certain period, at a price set on the date the BCE are granted, and that remains fixed during the entire period.

 These BCE offer to its beneficiaries the possibility to realize a profit in case of an increase in value of the Company security between the
date the BCE are granted and the date the share is subscribed by exercise of the BCE. 
 The beneficiaries participate in their Company’s
performance trough the evolution in value of the shares before even becoming effectively shareholder of the company by exercising the BCE. 

Furthermore, the financial benefit obtained by exercising the BCE and by a subsequent sale of the shares is subject to a specific tax treatment.

 II – LEGAL FRAMEWORK FOR THE PLAN 
 This mechanism has been set up by the law of finance of 1998 n°– n°97-1269 dated December 30 1997, amended by the law of finance of 1999 – n°98-1266 dated December 30, 1998
-, the law n°99-587 dated July 12, 1999, the law n°2001-420 dated May 15, 2001 and the law n°2003-706 dated August 1st 2003. 
 This mechanism is also governed by article 163 bis G of the French Tax Code and by the Decree n°98-557 dated July 1st, 1998. 
 The company SEQUANS COMMUNICATIONS meets all the requirements required by the dispositions mentioned above in order to set up a BCE plan, bearing in mind that: 

 

	 	•	 	 It is incorporated with the Trade and Companies Registry since at least 15 years 

 

	 	•	 	 It is subject to French corporate taxation 

  

	 	•	 	 At least 25% of its share capital is held directly by individuals. 

 The shareholders in a extraordinary general shareholders’ meeting held on December 15, 2005, voted in favour of a resolution for the issuance of a total number of 400,000 BCE maximum
and set the share purchase price that may be subscribed by exercising each BCE – that is one share of category A preference share – at a price set for shares issued in connection with the most recent share capital increase prior to the
issuance of said BCE. 
 In addition, the shareholders granted to the Board of Directors the power to grant such BCE, in one or several times,
including the power to determine the beneficiaries of the BCE and the number of BCE to be granted to each of them, with the suppression of shareholders’ preemptive subscription right – to increase the share capital for a maximum amount
equal to the number of BCE granted, to record / acknowledge the successive increases in share capital resulting from the exercise of the BCE, and to 

 
carry out all formalities required as a result thereof. 
 Pursuant to this grant of
authority, and partially using the authorization it has been granted, the Board of Directors, in a meeting held on January 12, 2006, has adopted this plan and adopted the terms and conditions applicable to this BCE plan in compliance
with the principles decided by the aforementioned extraordinary general shareholders’ meeting and the applicable statutory provisions. 
 III – DESCRIPTION OF THE PLAN 
 The list of the BCE Plan’s beneficiaries
(hereinafter the “Beneficiaries”) has been approved by the Company’s Board of Directors. 
 III-1. Granting of the BCE

 The BCE are granted free of charge to each Beneficiary. 
 The number of BCE granted to each Beneficiary shall be indicated in the Individual Notification Letter sent to him/her by the Chairman. 
 The exercise of a BCE entitles its holder to subscribe for one new class A preferred share of SEQANS COMMUNICATIONS. 
 This number of shares cannot be modified during the BCE period of validity, except in the event of an adjustment in the subscription price in accordance with the requirements provided by law (see section
III-4. hereinafter). 
 Within a period of seven (7) days following the receipt of the letter informing him/her that he/she has been
granted BCE, the Beneficiary undertakes to return to the Company a copy of this BCE Plan and a copy of the “CONTRACTUAL UNDERTAKING” attached to the said letter, after the Beneficiary has duly executed
the said copies. 
 Failure to comply with this formality within the applicable period shall render the granted BCE immediately and
automatically void. 
 III-2. Terms and conditions of the BCE 
 BCE are irrevocably granted for a period of 10 years as from the date they have been granted by the Board of Directors. 
 As a result of the granting of the BCE, the pre-emptive right of shareholders to subscribe for the new shares to be issued as the said BCE are exercised will be suppressed in favour of the Beneficiaries.

 This BCE cannot be transferred. 

The BCE must be exercised within the aforementioned maximum period of ten years, being specified that the Beneficiary must respect the following
calendar: 
 (i) first grant: 
  

	 	•	 	 The Beneficiary shall exercise 25% of the BCE granted to him/her after the expiration

  
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of the 12 months period following his/her entrance in the company SEQUANS COMMUNICATIONS or its subsidiaries; 

 

	 	•	 	 The Beneficiary shall then exercise the outstanding amount of his/her BCE , at the rate of
l/36e per month, within the period from the 13th and the 48th month following the date he/she entered the company SEQUANS COMMUNICATIONS or its subsidiaries.

 (ii) subsequent grants: 
  

	 	•	 	 The Beneficiary shall exercise 25% of the BCE issued to him/her after the expiration of the 12 months period following the date of grant of the said
BCE; 

  

	 	•	 	 The Beneficiary shall then exercise the outstanding amount of his/her BCE, at the rate of
l/36e per month, within the period from the 13th and the 48th month following the date of grant of the said BCE. 

Any first exercise must cover at least 25% of the BCE granted to the Beneficiary, in accordance with the exercise calendars set out above. 

In the event a third party acquires 100% of the share capital of SEQUANS COMMUNICATIONS, and in no other case, the Beneficiary who would
subsequently be dismissed for genuine material cause shall have the right to exercise all of his/her BCE within a period of 30 days following the date of the said dismissal, notwithstanding the calendar set out above. 

In any event, any BCE that is not exercised before the expiration of the aforementioned 10-year period shall be null and void. 

III-3. Beneficiary termination of services with the Company 
 In case of termination of the Beneficiary services with SEQUANS COMMUNICATIONS, whether as an employee or a company officer, due to resignation, redundancy, dismissal, incapacity or death, regardless of
the reason: 
 the said Beneficiary looses all rights with regard to the BCE yet not exercisable at the end of termination of
his/her duties regarding the exercise calendar set forth in the above article III-2. 
 However, he/she retains the right to
exercise the BCE that became exercisable and that have not yet been exercised provided that the Beneficiary exercises his/her BCE within a period of 30 days following the actual termination of his/her duties. 

In the event of incapacity, such period shall be extended to 90 days. 

In the event of death, the Beneficiary’s heirs or beneficiaries shall beneficiate of a period extended to 6 months. 

After expiration of the periods aforementioned, the Beneficiary, his/her heirs or beneficiaries lose irrevocably all rights with regard to
unexercised BCE. 
 III-4. Determination of the exercise price of the BCE 

  
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 Pursuant to the law and if the company granting the BCE increased its share capital in the six months
preceding the issuance of the said BCE, the subscription price shall not be inferior to the price of shares therefore issued. 
 Consequently,
the subscription price applicable is set in the amount of EUR 0.60 per share (with a premium of 0.59) i.e., the price of the shares issued in connection with the increase in share capital voted by the extraordinary general
shareholders’ meeting held on February 14, 2005. 
 This price may not be changed during the BCE’s period of validity, except in
the event of adjustments in accordance with statutory and regulatory provisions. 
 III-5. Protection of the rights of the Beneficiaries
during the exercise period 
 During the entire period of validity of the BCE, the Company will have the option to modify its form or
object, without having to obtain the prior authorisation of the Beneficiaries. In addition, the Company shall be entitled to change the rules for profits distribution, write down its capital, or create preferred shares. The Company will therefore
take all necessary measures in order to maintain Beneficiaries’ rights, in compliance with applicable legal and/or regulatory provisions. 
 IV – TERMS AND CONDITIONS FOR EXERCISING BCE 
 IV-1. Suspension of the rights to
exercise the BCE 
 If necessary, the Board of Directors may suspend the right to exercise the BCE. In particular, this suspension may be
ordered whenever a transaction concerning SEQUANS COMMUNICATIONS’ share capital requires knowing in advance the exact number of shares that make up the share capital or in the event of the carrying out of one of the financial transactions
requiring an adjustment. 
 In such case, SEQUANS COMMUNICATIONS shall inform the Beneficiaries of the BCE, indicating the date of the
suspension and the date on which the right to exercise the BCE will be re-established. Such suspension may not exceed 3 months. 
 If the right
to exercise a BCE expires during a period of suspension, the period of exercise of the BCE shall be extended by 3 months. 
 IV-2.
Procedure and conditions for exercising BCE 
 All requests for exercise of the BCE, documented by the signature of a subscription
certificate specific to the BCE plan, shall be sent to SEQUANS COMMUNICATIONS, and must be accompanied by a check made to the Company’s order for an amount corresponding to the number of shares to be subscribed. Shares subscribed must be fully
paid up in cash at the time of subscription. 
 Failure to do so renders the subscription null and void. 

V – FEATURES OF SHARES SUBSCRIBED 

  
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 V-1. Delivery and form of shares 
 Shares acquired by exercising the BCE are registered in the books of SEQUANS COMMUNICATIONS as registered shares, which meets the statutory requirements for benefiting from the applicable favourable tax
treatment. 
 V-2. Possession rights 
 The new shares, class A preferred shares, shall be subject to all provisions of the by-laws and shall enjoy all rights pertaining to the shares of such class as of the date of completion of the share
capital increase. 
 These shares shall be immediately transferable, in compliance with the “CONTRACTUAL
UNDERTAKING”, complied by the Beneficiary. 
 VI – TAX PROVISIONS 

VI-1. THE TAX PROVISIONS CURRENTLY APPLICABLE TO
BENEFICIARIES WHO ARE RESIDING IN FRANCE ARE EXPLAINED BELOW. 

In the event of a transfer of the shares subscribed following exercise of the BCE , the gain realised by the Beneficiary is equal to the difference
between the sale price of the share and their acquisition price. 
 This gain is imposed in accordance with the tax treatment of capital gain
realised on the sale of securities (articles 92 B, 92 J, 160, 200 A2 of the French Tax Code), and only if the annual threshold for sales of securities is exceeded (EUR 15.000 in 2004, total amount of sales made by a tax household). 

The proportional rate applicable is 16%, except if at the date of the transfer of his/her shares the Beneficiary has performed his/her duties for less
than three years, then the gain is subject to a 30% tax rate. 
 In addition to these proportional rates, the following social security
contributions apply for a total amount of 11% and are divided as follows: 
  

			
	 •    CSG 1:
	  	8,2%
	 •    CRDS 2:
	  	0,5%
	 •    social charges:
	  	2,3%

 Therefore, the total amount of taxation rate is of
27% or of 41% according to the term of the Beneficiary’s office in the Company. 
  

	1	 CSG = “contribution sociale généralisée”: a French social security tax. 

	2	 CRDS = “contribution au remboursement de la dette sociale”: another French social security tax. 

  
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 Note: in order to benefit from this specific tax provisions, the Beneficiary will have to attach to his/her
revenue statement of the year when the BCE have been exercised a certificate to be given by the Company. 
 VI-2.
TAX PROVISIONS APPLICABLE TO BENEFICIARIES DOMICILED ABROAD. 
 Beneficiaries domiciled abroad are themselves solely responsible for: 
  

	 	•	 	 Determining the tax provisions applicable to gains resulting from (i) holding the shares issued as a result of the exercise of the BCE, and
(ii) the sale of such shares; 

  

	 	•	 	 Paying all taxes and contributions due as a result. 

 The company Sequans Communications shall have no obligation to provide advice and/or assistance in this regard. 

  
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 SEQUANS COMMUNICATIONS 

Regulation 
  

 
 Founders
Warrant Granting Plan. 2006-2 

 - SUMMARY - 
 I - DEFINITION OF THE FOUNDERS WARRANT SUBSCRIPTION PLAN (BCE) 
 II - LEGAL FRAMEWORK
FOR THE PLAN 
 III - DESCRIPTION OF THE PLAN 
  

	 	•	 	 Granting of the BCE 

  

	 	•	 	 Terms and conditions of the BCE 

  

	 	•	 	 Beneficiary termination of services with the Company 

  

	 	•	 	 Determination of the exercise price of the BCE 

  

	 	•	 	 Protection of the rights of the Beneficiaries during the exercise period of the BCE 

IV - TERMS AND CONDITIONS FOR EXERCISING BCE 
  

	 	•	 	 Suspension of the rights to exercise the BCE 

  

	 	•	 	 Procedures and conditions for exercising the BCE 

 V - FEATURES OF SHARES SUBSCRIBED 
  

	 	•	 	 Delivery and form of shares 

  

	 	•	 	 Possession rights 

 VI -
TAX PROVISIONS 

  
 2 

 I – DEFINITION OF FOUNDERS WARRANT SUBSCRIPTION PLAN (BCE) 

In order to reward its employees and managers, SEQUANS COMMUNICATIONS wishes to set up a system enabling them to share its growth. 

A Founders Warrant (BCE) subscription plan is a mechanism by which a company offers to its employees and/or its managers (subject to employees taxation
regime), the possibility to subscribe for a BCE for free which subsequent exercise allows to subscribe for new shares during a certain period, at a price set on the date the BCE are granted, and that remains fixed during the entire period.

 These BCE offer to its beneficiaries the possibility to realize a profit in case of an increase in value of the Company security between the
date the BCE are granted and the date the share is subscribed by exercise of the BCE. 
 The beneficiaries participate in their Company’s
performance trough the evolution in value of the shares before even becoming effectively shareholder of the company by exercising the BCE. 

Furthermore, the financial benefit obtained by exercising the BCE and by a subsequent sale of the shares is subject to a specific tax treatment.

 II – LEGAL FRAMEWORK FOR THE PLAN 
 This mechanism has been set up by the law of finance of 1998 n°– n°97-1269 dated December 30 1997, amended by the law of finance of 1999 – n°98-1266 dated December 30, 1998
-, the law n°99-587 dated July 12, 1999, the law n°2001-420 dated May 15, 2001 and the law n°2003-706 dated August 1st 2003. 
 This mechanism is also governed by article 163 bis G of the French Tax Code and by the Decree n°98-557 dated July 1st, 1998. 
 The company SEQUANS COMMUNICATIONS meets all the requirements required by the dispositions mentioned above in order to set up a BCE plan, bearing in mind that: 

 

	 	•	 	 It is incorporated with the Trade and Companies Registry since at least 15 years 

 

	 	•	 	 It is subject to French corporate taxation 

  

	 	•	 	 At least 25% of its share capital is held directly by individuals. 

 The shareholders in a extraordinary general shareholders’ meeting held on October 17, 2006, voted in favour of a resolution for the issuance of a total number of 1,300,000 BCE maximum
and set the share purchase price that may be subscribed by exercising each BCE – that is one share of category A preference share – at a price set for shares issued in connection with the most recent share capital increase prior to the
issuance of said BCE. 
 In addition, the shareholders granted to the Board of Directors the power to grant such BCE, in one or several times,
including the power to determine the beneficiaries of the BCE and the number of BCE to be granted to each of them, with the suppression of shareholders’ preemptive subscription right -to increase the share capital for a maximum amount equal to
the number of BCE granted, to record/acknowledge the successive increases in share capital resulting from the exercise of the BCE, and to 

 
carry out all formalities required as a result thereof. 
 Pursuant to this grant of
authority, and partially using the authorization it has been granted, the Board of Directors, in a meeting held on November 9, 2006, has adopted this plan and adopted the terms and conditions applicable to this BCE plan in compliance
with the principles decided by the aforementioned extraordinary general shareholders’ meeting and the applicable statutory provisions. 
 III – DESCRIPTION OF THE PLAN 
 The list of the BCE Plan’s beneficiaries
(hereinafter the “Beneficiaries”) has been approved by the Company’s Board of Directors. 
 III-1. Granting of the BCE

 The BCE are granted free of charge to each Beneficiary. 
 The number of BCE granted to each Beneficiary shall be indicated in the Individual Notification Letter sent to him/her by the Chairman. 
 The exercise of a BCE entitles its holder to subscribe for one new class A preferred share of SEQANS COMMUNICATIONS. 
 This number of shares cannot be modified during the BCE period of validity, except in the event of an adjustment in the subscription price in accordance with the requirements provided by law (see section
III-4. hereinafter). 
 Within a period of seven (7) days following the receipt of the letter informing him/her that he/she has been
granted BCE, the Beneficiary undertakes to return to the Company a copy of this BCE Plan and a copy of the “CONTRACTUAL UNDERTAKING” attached to the said letter, after the Beneficiary has duly executed
the said copies. 
 Failure to comply with this formality within the applicable period shall render the granted BCE immediately and
automatically void. 
 III-2. Terms and conditions of the BCE 
 BCE are irrevocably granted for a period of 10 years as from the date they have been granted by the Board of Directors. 
 As a result of the granting of the BCE, the pre-emptive right of shareholders to subscribe for the new shares to be issued as the said BCE are exercised will be suppressed in favour of the Beneficiaries.

 This BCE cannot be transferred. 

The BCE must be exercised within the aforementioned maximum period of ten years, being specified that the Beneficiary must respect the following
calendar: 
 (i) first grant: 
  

	 	•	 	 The Beneficiary shall exercise 25% of the BCE granted to him/her after the expiration

  
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of the 12 months period following his/her entrance in the company SEQUANS COMMUNICATIONS or its subsidiaries; 

 

	 	•	 	 The Beneficiary shall then exercise the outstanding amount of his/her BCE, at the rate of
l/36e per month, within the period from the 13th and the 48th month following the date he/she entered the company SEQUANS COMMUNICATIONS or its subsidiaries.

 (ii) subsequent grants: 
  

	 	•	 	 The Beneficiary shall exercise 25% of the BCE issued to him/her after the expiration of the 12 months period following the date of grant of the said
BCE; 

  

	 	•	 	 The Beneficiary shall then exercise the outstanding amount of his/her BCE, at the rate of
l/36e per month, within the period from the 13th and the 48th month following the date of grant of the said BCE. 

Any first exercise must cover at least 25% of the BCE granted to the Beneficiary, in accordance with the exercise calendars set out above. 

In the event a third patty acquires 100% of the share capital of SEQUANS COMMUNICATIONS, and in no other case, the Beneficiary who would
subsequently be dismissed for genuine material cause shall have the right to exercise all of his/her BCE within a period of 30 days following the date of the said dismissal, notwithstanding the calendar set out above. 

In any event, any BCE that is not exercised before the expiration of the aforementioned 10-year period shall be null and void. 

III-3. Beneficiary termination of services with the Company 
 In case of termination of the Beneficiary services with SEQUANS COMMUNICATIONS, whether as an employee or a company officer, due to resignation, redundancy, dismissal, incapacity or death, regardless of
the reason: 
 the said Beneficiary looses all rights with regard to the BCE yet not exercisable at the end of termination of
his/her duties regarding the exercise calendar set forth in the above article III-2. 
 However, he/she retains the right to
exercise the BCE that became exercisable and that have not yet been exercised provided that the Beneficiary exercises his/her BCE within a period of 30 days following the actual termination of his/her duties. 

In the event of incapacity, such period shall be extended to 90 days. 

In the event of death, the Beneficiary’s heirs or beneficiaries shall beneficiate of a period extended to 6 months. 

After expiration of the periods aforementioned, the Beneficiary, his/her heirs or beneficiaries lose irrevocably all rights with regard to
unexercised BCE. 
 III-4. Determination of the exercise price of the BCE 

  
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 Pursuant to the law and if the company granting the BCE increased its share capital in the six months
preceding the issuance of the said BCE, the subscription price shall not be inferior to the price of shares therefore issued. 
 Consequently,
the subscription price applicable is set in the amount of EUR 1.215 per share (with a premium of 1.205) i.e., the price of the shares issued in connection with the increase in share capital voted by the extraordinary general
shareholders’ meeting held on July 17, 2006. 
 This price may not be changed during the BCE’s period of validity, except in the
event of adjustments in accordance with statutory and regulatory provisions. 
 III-5. Protection of the rights of the Beneficiaries
during the exercise period 
 During the entire period of validity of the BCE, the Company will have the option to modify its form or
object, without having to obtain the prior authorisation of the Beneficiaries. In addition, the Company shall be entitled to change the rules for profits distribution, write down its capital, or create preferred shares. The Company will therefore
take all necessary measures in order to maintain Beneficiaries’ rights, in compliance with applicable legal and/or regulatory provisions. 
 IV – TERMS AND CONDITIONS FOR EXERCISING BCE 
 IV-1. Suspension of the rights to
exercise the BCE 
 If necessary, the Board of Directors may suspend the right to exercise the BCE. In particular, this suspension may be
ordered whenever a transaction concerning SEQUANS COMMUNICATIONS’ share capital requires knowing in advance the exact number of shares that make up the share capital or in the event of the carrying out of one of the financial transactions
requiring an adjustment. 
 In such case, SEQUANS COMMUNICATIONS shall inform the Beneficiaries of the BCE, indicating the date of the
suspension and the date on which the right to exercise the BCE will be re-established. Such suspension may not exceed 3 months. 
 If the right
to exercise a BCE expires during a period of suspension, the period of exercise of the BCE shall be extended by 3 months. 
 IV-2.
Procedure and conditions for exercising BCE 
 All requests for exercise of the BCE, documented by the signature of a subscription
certificate specific to the BCE plan, shall be sent to SEQUANS COMMUNICATIONS, and must be accompanied by a check made to the Company’s order for an amount corresponding to the number of shares to be subscribed. Shares subscribed must be fully
paid up in cash at the time of subscription. 
 Failure to do so renders the subscription null and void. 

V – FEATURES OF SHARES SUBSCRIBED 

  
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 V-1. Delivery and form of shares 
 Shares acquired by exercising the BCE are registered in the books of SEQUANS COMMUNICATIONS as registered shares, which meets the statutory requirements for benefiting from the applicable favourable tax
treatment. 
 V-2. Possession rights 
 The new shares, class A preferred shares, shall be subject to all provisions of the by-laws and shall enjoy all rights pertaining to the shares of such class as of the date of completion of the share
capital increase. 
 These shares shall be immediately transferable, in compliance with the “CONTRACTUAL
UNDERTAKING”, complied by the Beneficiary. 
 VI – TAX PROVISIONS 

VI-1. THE TAX PROVISIONS CURRENTLY APPLICABLE TO
BENEFICIARIES WHO ARE RESIDING IN FRANCE ARE EXPLAINED BELOW. 

In the event of a transfer of the shares subscribed following exercise of the BCE , the gain realised by the Beneficiary is equal to the difference
between the sale price of the share and their acquisition price. 
 This gain is imposed in accordance with the tax treatment of capital gain
realised on the sale of securities (articles 92 B, 92 J, 160, 200 A2 of the French Tax Code), and only if the annual threshold for sales of securities is exceeded (EUR 15.000 in 2004, total amount of sales made by a tax household). 

The proportional rate applicable is 16%, except if at the date of the transfer of his/her shares the Beneficiary has performed his/her duties for less
than three years, then the gain is subject to a 30% tax rate. 
 In addition to these proportional rates, the following social security
contributions apply for a total amount of 11% and are divided as follows : 
  

					
	 •     CSG 1:
	  	8,2%	  	
	 •     CRDS 2:
	  	0,5%	  	
	 •     social charges:
	  	2,3%	  	

 Therefore, the total amount of taxation rate is of 27% or of 41% according to the term of the
Beneficiary’s office in the Company. 
  

	1	 CSG = “contribution sociale généralisée”: a French social security tax. 

	2	 CRDS = “contribution au remboursement de la dette sociale”: another French social security tax. 

  
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 Note: in order to benefit from this specific tax provisions, the Beneficiary will have to attach to his/her
revenue statement of the year when the BCE have been exercised a certificate to be given by the Company. 
 VI-2.
TAX PROVISIONS APPLICABLE TO BENEFICIARIES DOMICILED ABROAD. 
 Beneficiaries domiciled abroad are themselves solely responsible for: 
  

	 	•	 	 Determining the tax provisions applicable to gains resulting from (i) holding the shares issued as a result of the exercise of the BCE, and
(ii) the sale of such shares; 

  

	 	•	 	 Paying all taxes and contributions due as a result. 

 The company Sequans Communications shall have no obligation to provide advice and/or assistance in this regard. 

  
 - 8/8 -

 SEQUANS COMMUNICATIONS 

Regulation 
  

 
 Founders
Warrant Granting Plan. 2007-1 

 - SUMMARY - 
 I - DEFINITION OF THE FOUNDERS WARRANT SUBSCRIPTION PLAN (BCE) 
 II - LEGAL FRAMEWORK FOR
THE PLAN 
 III - DESCRIPTION OF THE PLAN 
  

	 	•	 	 Granting of the BCE 

  

	 	•	 	 Terms and conditions of the BCE 

  

	 	•	 	 Beneficiary termination of services with the Company 

  

	 	•	 	 Determination of the exercise price of the BCE 

  

	 	•	 	 Protection of the rights of the Beneficiaries during the exercise period of the BCE 

IV - TERMS AND CONDITIONS FOR EXERCISING BCE 
  

	 	•	 	 Suspension of the rights to exercise the BCE 

  

	 	•	 	 Procedures and conditions for exercising the BCE 

 V - FEATURES OF SHARES SUBSCRIBED 
  

	 	•	 	 Delivery and form of shares 

  

	 	•	 	 Possession rights 

 VI -
TAX PROVISIONS 

  
 2 

 I – DEFINITION OF FOUNDERS WARRANT SUBSCRIPTION PLAN (BCE) 

In order to reward its employees and managers, SEQUANS COMMUNICATIONS wishes to set up a system enabling them to share its growth. 

A Founders Warrant (BCE) subscription plan is a mechanism by which a company offers to its employees and/or its managers (subject to employees taxation
regime), the possibility to subscribe for a BCE for free which subsequent exercise allows to subscribe for new shares during a certain period, at a price set on the date the BCE are granted, and that remains fixed during the entire period.

 These BCE offer to its beneficiaries the possibility to realize a profit in case of an increase in value of the Company security between the
date the BCE are granted and the date the share is subscribed by exercise of the BCE. 
 The beneficiaries participate in their Company’s
performance trough the evolution in value of the shares before even becoming effectively shareholder of the company by exercising the BCE . 

Furthermore, the financial benefit obtained by exercising the BCE and by a subsequent sale of the shares is subject to a specific tax treatment.

 II – LEGAL FRAMEWORK FOR THE PLAN 
 This mechanism has been set up by the law of finance of 1998 n°– n°97-1269 dated December 30 1997, amended by the law of finance of 1999 – n°98-1266 dated December 30, 1998
-, the law n°99-587 dated July 12, 1999, the law n°2001-420 dated May 15, 2001 and the law n°2003-706 dated August 1st 2003. 
 This mechanism is also governed by article 163 bis G of the French Tax Code and by the Decree n°98-557 dated July 1st, 1998. 
 The company SEQUANS COMMUNICATIONS meets all the requirements required by the dispositions mentioned above in order to set up a BCE plan, bearing in mind that: 

 

	 	•	 	 It is incorporated with the Trade and Companies Registry since at least 15 years 

 

	 	•	 	 It is subject to French corporate taxation 

  

	 	•	 	 At least 25% of its share capital is held directly by individuals, being specified that in order to determine this threshold, it is not taken
into account participations held by: 

  

	 	(i)	regional development companies (RDC), venture capital companies (VCC), innovation finance companies (IFC) set forth in articles 208, 1°ter, 208, 3°septies and
39 quinquies A, 2°, b) of the French Tax Code, 

  

	 	(ii)	venture capital mutual fund (VCMF) and innovation mutual investment fund (IMIF) set forth in articles 163 quinquies B, I and 199 terdecies-o A, VI, 1 of the French Tax
Code, 

 The shareholders in a combined general shareholders’ meeting held on May 25, 2007, voted
in favour of a resolution for the issuance of a total number of 400,000 BCE maximum and set the share purchase price that may be subscribed by exercising each BCE – that is one share of category A preference share – at a price set
for shares issued in connection with the most recent share capital increase prior to the issuance of said BCE. 
 In addition, the shareholders
granted to the Board of Directors the power to grant such BCE, in one or several times, including the power to determine the beneficiaries of the BCE and the number of BCE to be granted to each of them, with the suppression of shareholders’
preemptive subscription right – to increase the share capital for a maximum amount equal to the number of BCE granted, to record / acknowledge the successive increases in share capital resulting from the exercise of the BCE, and to carry out
all formalities required as a result thereof. 
 Pursuant to this grant of authority, and partially using the authorization it has been granted,
the Board of Directors, in a meeting held on July 12, 2007, has adopted this plan and adopted the terms and conditions applicable to this BCE plan in compliance with the principles decided by the aforementioned combined general
shareholders’ meeting and the applicable statutory provisions. 
 III – DESCRIPTION OF THE PLAN 

The list of the BCE Plan’s beneficiaries (hereinafter the “Beneficiaries”) has been approved by the Company’s Board of Directors.

 III-1. Granting of the BCE 
 The BCE are granted free of charge to each Beneficiary. 
 The number of BCE granted to each
Beneficiary shall be indicated in the Individual Notification Letter sent to him/her by the Chairman. 
 The exercise of a BCE entitles its
holder to subscribe for one new class A preferred share of SEQANS COMMUNICATIONS. 
 This number of shares cannot be modified during the
BCE period of validity, except in the event of an adjustment in the subscription price in accordance with the requirements provided by law (see section III-4. hereinafter). 
 Within a period of seven (7) days following the receipt of the letter informing him/her that he/she has been granted BCE, the Beneficiary undertakes to return to the Company a copy of this BCE Plan
and a copy of the “CONTRACTUAL UNDERTAKING” attached to the said letter, after the Beneficiary has duly executed the said copies. 
 Failure to comply with this formality within the applicable period shall render the granted BCE immediately and automatically void. 
 III-2. Terms and conditions of the BCE 
 BCE are irrevocably granted for a period of
10 years as from the date they have been granted by the Board of Directors. 

  
 - 4/8 -

 As a result of the granting of the BCE, the pre-emptive right of shareholders to subscribe for the new
shares to be issued as the said BCE are exercised will be suppressed in favour of the Beneficiaries. 
 This BCE cannot be transferred.

 The BCE must be exercised within the aforementioned maximum period of ten years, being specified that the Beneficiary must respect the
following calendar: 
 (i) first grant: 
  

	 	•	 	 The Beneficiary shall exercise 25% of the BCE granted to him/her after the expiration of the 12 months period following his/her entrance in the company
SEQUANS COMMUNICATIONS or its subsidiaries; 

  

	 	•	 	 The Beneficiary shall then exercise the outstanding amount of his/her BCE, at the rate of
l/36e per month, within the period from the 13th and the 48th month following the date he/she entered the company SEQUANS COMMUNICATIONS or its subsidiaries.

 (ii) subsequent grants: 
  

	 	•	 	 The Beneficiary shall exercise 25% of the BCE issued to him/her after the expiration of the 12 months period following the date of grant of the said
BCE; 

  

	 	•	 	 The Beneficiary shall then exercise the outstanding amount of his/her BCE, at the rate of
l/36e per month, within the period from the 13th and the 48th month following the date of grant of the said BCE. 

Any first exercise must cover at least 25% of the BCE granted to the Beneficiary, in accordance with the exercise calendars set out above. 

In the event a third party acquires 100% of the share capital of SEQUANS COMMUNICATIONS, and in no other case, the Beneficiary who would
subsequently be dismissed for genuine material cause shall have the right to exercise all of his/her BCE within a period of 30 days following the date of the said dismissal, notwithstanding the calendar set out above. 

In any event, any BCE that is not exercised before the expiration of the aforementioned 10-year period shall be null and void. 

III-3. Beneficiary termination of services with the Company 
 In case of termination of the Beneficiary services with SEQUANS COMMUNICATIONS, whether as an employee or a company officer, due to resignation, redundancy, dismissal, incapacity or death, regardless of
the reason, the said Beneficiary looses all rights with regard to the BCE yet not exercisable at the end of termination of his/her duties regarding the exercise calendar set forth in the above article III-2. 

However, he/she retains the right to exercise the BCE that became exercisable and that have not yet been exercised provided that the Beneficiary
exercises his/her BCE within a period of 30 days following the actual termination of his/her duties. 

  
 - 5/8 -

 In the event of incapacity, such period shall be extended to 90 days. 

In the event of death, the Beneficiary’s heirs or beneficiaries shall beneficiate of a period extended to 6 months. 

After expiration of the periods aforementioned, the Beneficiary, his/her heirs or beneficiaries lose irrevocably all rights with regard to unexercised
BCE. 
 III-4. Determination of the exercise price of the BCE 
 Pursuant to the law and if the company granting the BCE increased its share capital in the six months preceding the issuance of the said BCE, the subscription price shall not be inferior to the price of
shares therefore issued. 
 Consequently, the subscription price applicable is set in the amount of EUR 1.215 per share (with a
premium of 1.205) i.e., the price of the shares issued in connection with the increase in share capital voted by the Board of Directors of the Company on December 1, 2006 on authority granted by the combined general shareholders’ meeting
held on November 17, 2007. 
 This price may not be changed during the BCE’s period of validity, except in the event of adjustments in
accordance with statutory and regulatory provisions. 
 III-5. Protection of the rights of the Beneficiaries during the exercise period

 During the entire period of validity of the BCE, the Company will have the option to modify its form or object, without having to
obtain the prior authorisation of the Beneficiaries. In addition, the Company shall be entitled to change the rules for profits distribution, write down its capital, or create preferred shares. The Company will therefore take all necessary measures
in order to maintain Beneficiaries’ rights, in compliance with applicable legal and/or regulatory provisions. 
 IV –
TERMS AND CONDITIONS FOR EXERCISING BCE 
 IV-1. Suspension of the rights to exercise the BCE 

If necessary, the Board of Directors may suspend the right to exercise the BCE. In particular, this suspension may be ordered whenever a transaction
concerning SEQUANS COMMUNICATIONS’ share capital requires knowing in advance the exact number of shares that make up the share capital or in the event of the carrying out of one of the financial transactions requiring an adjustment. 

In such case, SEQUANS COMMUNICATIONS shall inform the Beneficiaries of the BCE, indicating the date of the suspension and the date on which the right to
exercise the BCE will be re-established. Such suspension may not exceed 3 months. 
 If the right to exercise a BCE expires during a period of
suspension, the period of exercise of the BCE shall be extended by 3 months. 
 IV-2. Procedure and conditions for exercising BCE

  
 - 6/8 -

 All requests for exercise of the BCE, documented by the signature of a subscription certificate specific to
the BCE plan, shall be sent to SEQUANS COMMUNICATIONS, and must be accompanied by a check made to the Company’s order for an amount corresponding to the number of shares to be subscribed. Shares subscribed must be fully paid up in cash at the
time of subscription. 
 Failure to do so renders the subscription null and void. 

V – FEATURES OF SHARES SUBSCRIBED 
 V-1. Delivery and form of shares 
 Shares acquired by exercising the BCE are
registered in the books of SEQUANS COMMUNICATIONS as registered shares, which meets the statutory requirements for benefiting from the applicable favourable tax treatment. 
 V-2. Possession rights 
 The new shares, class A preferred shares, shall be subject
to all provisions of the by-laws and shall enjoy all rights pertaining to the shares of such class as of the date of completion of the share capital increase. 
 These shares shall be immediately transferable, in compliance with the “CONTRACTUAL UNDERTAKING”, complied by the Beneficiary. 

VI – TAX PROVISIONS 

VI-1. THE TAX PROVISIONS CURRENTLY APPLICABLE TO
BENEFICIARIES WHO ARE RESIDING IN FRANCE ARE EXPLAINED BELOW. 

In the event of a transfer of the shares subscribed following exercise of the BCE , the gain realised by the Beneficiary is equal to the difference
between the sale price of the share and their acquisition price. 
 This gain is imposed in accordance with the tax treatment of capital gain
realised on the sale of securities (articles 92 B, 92 J, 160, 200 A2 of the French Tax Code), and only if the annual threshold for sales of securities is exceeded (EUR 20.000 in 2007, total amount of sales made by a tax household). 

The proportional rate applicable is 16%, except if at the date of the transfer of his/her shares the Beneficiary has performed his/her duties for less
than three years, then the gain is subject to a 30% tax rate. 
 In addition to these proportional rates, the following social security
contributions apply for a total amount of 11% and are divided as follows: 

  
 - 7/8 -

			
	 •    CSG 1:
	  	8,2%
	 •    CRDS 2:
	  	0,5%
	 •    social charges:
	  	2,3%

 Therefore, the total amount of taxation rate is of
27% or of 41% according to the term of the Beneficiary’s office in the Company. 
 Note: in order to benefit from this
specific tax provisions, the Beneficiary will have to attach to his/her revenue statement of the year when the BCE have been exercised a certificate to be given by the Company. 
 VI-2. TAX PROVISIONS APPLICABLE TO BENEFICIARIES DOMICILED ABROAD.

 Beneficiaries domiciled abroad are themselves solely responsible for: 

 

	 	•	 	 Determining the tax provisions applicable to gains resulting from (i) holding the shares issued as a result of the exercise of the BCE, and
(ii) the sale of such shares; 

  

	 	•	 	 Paying all taxes and contributions due as a result. 

 The company Sequans Communications shall have no obligation to provide advice and/or assistance in this regard. 

 

	1	 CSG = “contribution sociale généralisée”: a French social security tax. 

	2	 CRDS = “contribution au remboursement de la dette sociale”: another French social security tax. 

  
 - 8/8 -

 SEQUANS COMMUNICATIONS 

Regulation 
  

 
 Founders
Warrant Granting Plan. 2008-1 

 - SUMMARY - 
 I - DEFINITION OF THE FOUNDERS WARRANT SUBSCRIPTION PLAN (BCE) 
 II - LEGAL FRAMEWORK FOR
THE PLAN 
 III - DESCRIPTION OF THE PLAN 
  

	 	•	 	 Granting of the BCE 

  

	 	•	 	 Terms and conditions of the BCE 

  

	 	•	 	 Beneficiary termination of services with the Company 

  

	 	•	 	 Determination of the exercise price of the BCE 

  

	 	•	 	 Protection of the rights of the Beneficiaries during the exercise period of the BCE 

IV - TERMS AND CONDITIONS FOR EXERCISING BCE 
  

	 	•	 	 Suspension of the rights to exercise the BCE 

  

	 	•	 	 Procedures and conditions for exercising the BCE 

 V - FEATURES OF SHARES SUBSCRIBED 
  

	 	•	 	 Delivery and form of shares 

  

	 	•	 	 Possession rights 

 VI -
TAX PROVISIONS 

  
 2 

 I – DEFINITION OF FOUNDERS WARRANT SUBSCRIPTION PLAN (BCE) 

In order to reward its employees and managers, SEQUANS COMMUNICATIONS wishes to set up a system enabling them to share its growth. 

A Founders Warrant (BCE) subscription plan is a mechanism by which a company offers to its employees and/or its managers (subject to employees taxation
regime), the possibility to subscribe for a BCE for free which subsequent exercise allows to subscribe for new shares during a certain period, at a price set on the date the BCE are granted, and that remains fixed during the entire period.

 These BCE offer to its beneficiaries the possibility to realize a profit in case of an increase in value of the Company security between the
date the BCE are granted and the date the share is subscribed by exercise of the BCE. 
 The beneficiaries participate in their Company’s
performance trough the evolution in value of the shares before even becoming effectively shareholder of the company by exercising the BCE. 

Furthermore, the financial benefit obtained by exercising the BCE and by a subsequent sale of the shares is subject to a specific tax treatment.

 II – LEGAL FRAMEWORK FOR THE PLAN 
 This mechanism has been set up by the law of finance of 1998 n°– n°97-1269 dated December 30, 1997, amended by the law of finance of 1999 – n°98-1266 dated December 30,
1998 -, the law n°99-587 dated July 12, 1999, the law n°2001-420 dated May 15, 2001 and the law n°2003-706 dated August 1st 2003. 
 This mechanism is also governed by article 163 bis G of the French Tax Code and by the Decree n°98-557 dated July 1st, 1998. 
 The company SEQUANS COMMUNICATIONS meets all the requirements required by the dispositions mentioned above in order to set up a BCE plan, bearing in mind that: 

 

	 	•	 	 It is incorporated with the Trade and Companies Registry since at least 15 years 

 

	 	•	 	 It is subject to French corporate taxation 

  

	 	•	 	 At least 25% of its share capital is held directly by individuals, being specified that in order to determine this threshold, it is not taken
into account participations held by : 

  

	 	(i)	regional development companies (RDC), venture capital companies (VCC), innovation finance companies (IFC) set forth in articles 208, l°ter, 208, 3°septies and
39 quinquies A, 2°, b) of the French Tax Code, 

  

	 	(ii)	venture capital mutual fund (VCMF) and innovation mutual investment fund (IMIF) set forth in articles 163 quinquies B, I and 199 terdecies-o A, VI, 1 of the French Tax
Code, 

  

	 	(iii)	local investment fund set forth in article L.241-41-1 of the French Monetary and Financial Code. 

 The shareholders in a combined general shareholders’ meeting held on June 12, 2008, voted
in favour of a resolution for the issuance of a total number of 850,000 BCE maximum and set the share purchase price that may be subscribed by exercising each BCE – that is one share of category A preference share – at a price set
for shares issued in connection with the most recent share capital increase prior to the issuance of said BCE. 
 In addition, the shareholders
granted to the Board of Directors the power to grant such BCE, in one or several times, including the power to determine the beneficiaries of the BCE and the number of BCE to be granted to each of them, with the suppression of shareholders’
preemptive subscription right – to increase the share capital for a maximum amount equal to the number of BCE granted, to record / acknowledge the successive increases in share capital resulting from the exercise of the BCE, and to carry out
all formalities required as a result thereof. 
 Pursuant to this grant of authority, and partially using the authorization it has been granted,
the Board of Directors, in a meeting held on July 9, 2008, has adopted this plan and adopted the terms and conditions applicable to this BCE plan in compliance with the principles decided by the aforementioned combined general
shareholders’ meeting and the applicable statutory provisions. 
 III – DESCRIPTION OF THE PLAN 

The list of the BCE 2008-1 Plan’s beneficiaries (hereinafter the “Beneficiaries”) has been approved by the Company’s Board of
Directors. 
 III-1. Granting of the BCE 
 The BCE are granted free of charge to each Beneficiary. 
 The number of BCE granted to each
Beneficiary shall be indicated in the Individual Notification Letter sent to him/her by the Chairman. 
 The exercise of a BCE entitles its
holder to subscribe for one new class A preferred share of SEQANS COMMUNICATIONS. 
 This number of shares cannot be modified during the
BCE period of validity, except in the event of an adjustment in the subscription price in accordance with the requirements provided by law (see section III-4. hereinafter). 
 Within a period of seven (7) days following the receipt of the letter informing him/her that he/she has been granted BCE, the Beneficiary undertakes to return to the Company a copy of this BCE 2008-1
Plan and a copy of the “CONTRACTUAL UNDERTAKING” attached to the said letter, after the Beneficiary has duly executed the said copies. 
 Failure to comply with this formality within the applicable period shall render the granted BCE immediately and automatically void. 
 III-2. Terms and conditions of the BCE 
 BCE are irrevocably granted for a period of
10 years as from the date they have been granted by the Board of Directors. 

  
 - 4/8 -

 As a result of the granting of the BCE, the pre-emptive right of shareholders to subscribe for the new
shares to be issued as the said BCE are exercised will be suppressed in favour of the Beneficiaries. 
 This BCE cannot be transferred.

 The BCE must be exercised within the aforementioned maximum period of ten years, being specified that the Beneficiary must respect the
following calendar: 
 (i) first grant: 
  

	 	•	 	 The Beneficiary shall exercise 25% of the BCE granted to him/her after the expiration of the 12 months period following his/her entrance in the company
SEQUANS COMMUNICATIONS or its subsidiaries; 

  

	 	•	 	 The Beneficiary shall then exercise the outstanding amount of his/her BCE, at the rate of
l/36e per month, within the period from the 13th and the 48th month following the date he/she entered the company SEQUANS COMMUNICATIONS or its subsidiaries.

 (ii) subsequent grants: 
  

	 	•	 	 The Beneficiary shall exercise 25% of the BCE issued to him/her after the expiration of the 12 months period following the date of grant of the said
BCE; 

  

	 	•	 	 The Beneficiary shall then exercise the outstanding amount of his/her BCE, at the rate of
l/36e per month, within the period from the 13th and the 48th month following the date of grant of the said BCE. 

Any first exercise must cover at least 25% of the BCE granted to the Beneficiary, in accordance with the exercise calendars set out above. 

In the event a third party acquires 100% of the share capital of SEQUANS COMMUNICATIONS, and in no other case, the Beneficiary who would
subsequently be dismissed for genuine material cause shall have the right to exercise all of his/her BCE within a period of 30 days following the date of the said dismissal, notwithstanding the calendar set out above. 

In any event, any BCE that is not exercised before the expiration of the aforementioned 10-year period shall be null and void. 

III-3. Beneficiary termination of services with the Company 
 In case of termination of the Beneficiary services with SEQUANS COMMUNICATIONS, whether as an employee or a company officer, due to resignation, redundancy, dismissal, incapacity or death, regardless of
the reason, the said Beneficiary looses all rights with regard to the BCE yet not exercisable at the end of termination of his/her duties regarding the exercise calendar set forth in the above article III-2. 

However, he/she retains the right to exercise the BCE that became exercisable and that have not yet been exercised provided that the Beneficiary
exercises his/her BCE within a period of 30 days following the actual termination of his/her duties. 

  
 - 5/8 -

 In the event of incapacity, such period shall be extended to 90 days. 

In the event of death, the Beneficiary’s heirs or beneficiaries shall beneficiate of a period extended to 6 months. 

After expiration of the periods aforementioned, the Beneficiary, his/her heirs or beneficiaries lose irrevocably all rights with regard to unexercised
BCE. 
 III-4. Determination of the exercise price of the BCE 
 Pursuant to the law and if the company granting the BCE increased its share capital in the six months preceding the issuance of the said BCE, the subscription price shall not be inferior to the price of
shares therefore issued. 
 Consequently, the subscription price applicable with respect to this BCE 2008-1 plan is set in the amount of EUR
2.024 per share (with a premium of 2.014) i.e., the price of the shares issued in connection with the increase in share capital voted by the extraordinary general shareholders’ meeting held on January 31, 2008. 

This price may not be changed during the BCE’s period of validity, except in the event of adjustments in accordance with statutory and regulatory
provisions. 
 III-5. Protection of the rights of the Beneficiaries during the exercise period 

During the entire period of validity of the BCE, the Company will have the option to modify its form or object, without having to obtain the prior
authorisation of the Beneficiaries. In addition, the Company shall be entitled to change the rules for profits distribution, write down its capital, or create preferred shares. The Company will therefore take all necessary measures in order to
maintain Beneficiaries’ rights, in compliance with applicable legal and/or regulatory provisions. 
 IV – TERMS AND
CONDITIONS FOR EXERCISING BCE 
 IV-1. Suspension of the rights to exercise the BCE 

If necessary, the Board of Directors may suspend the right to exercise the BCE. In particular, this suspension may be ordered whenever a transaction
concerning SEQUANS COMMUNICATIONS’ share capital requires knowing in advance the exact number of shares that make up the share capital or in the event of the carrying out of one of the financial transactions requiring an adjustment. 

In such case, SEQUANS COMMUNICATIONS shall inform the Beneficiaries of the BCE, indicating the date of the suspension and the date on which the right to
exercise the BCE will be re-established. Such suspension may not exceed 3 months. 
 If the right to exercise a BCE expires during a period of
suspension, the period of exercise of the BCE shall be extended by 3 months. 
 IV-2. Procedure and conditions for exercising BCE

  
 - 6/8 -

 All requests for exercise of the BCE, documented by the signature of a subscription certificate specific to
the BCE 2008-1 plan, shall be sent to SEQUANS COMMUNICATIONS, and must be accompanied by a check made to the Company’s order for an amount corresponding to the number of shares to be subscribed. Shares subscribed must be fully paid up in cash
at the time of subscription. 
 Failure to do so renders the subscription null and void. 

V – FEATURES OF SHARES SUBSCRIBED 
 V-1. Delivery and form of shares 
 Shares acquired by exercising the BCE are
registered in the books of SEQUANS COMMUNICATIONS as registered shares, which meets the statutory requirements for benefiting from the applicable favourable tax treatment. 
 V-2. Possession rights 
 The new shares, class A preferred shares, shall be subject
to all provisions of the by-laws and shall enjoy all rights pertaining to the shares of such class as of the date of completion of the share capital increase. 
 These shares shall be immediately transferable, in compliance with the “CONTRACTUAL UNDERTAKING”, complied by the Beneficiary. 

VI – TAX PROVISIONS 

VI-1. THE TAX PROVISIONS CURRENTLY APPLICABLE TO
BENEFICIARIES WHO ARE RESIDING IN FRANCE ARE EXPLAINED BELOW. 

In the event of a transfer of the shares subscribed following exercise of the BCE , the gain realised by the Beneficiary is equal to the difference
between the sale price of the share and their acquisition price. 
 This gain is imposed in accordance with the tax treatment of capital gain
realised on the sale of securities (articles 92 B, 92 J, 160, 200 A2 of the French Tax Code), and only if the annual threshold for sales of securities is exceeded (EUR 25,000 in 2008, total amount of sales made by a tax household). 

The proportional rate applicable is 18%, except if at the date of the transfer of his/her shares the Beneficiary has performed his/her duties for less
than three years, then the gain is subject to a 30% tax rate. 
 In addition to these proportional rates, the following social security
contributions apply for a total amount of 11% and are divided as follows: 

  
 - 7/8 -

			
	 •     CSG 1:
	  	8,2%
	 •     CRDS 2:
	  	0,5%
	 •     social charges:
	  	2,3%

 Therefore, the total amount of taxation rate is of
29% or of 41% according to the term of the Beneficiary’s office in the Company. 
 Note: in order to benefit from this
specific tax provisions, the Beneficiary will have to attach to his/her revenue statement of the year when the BCE have been exercised a certificate to be given by the Company. 
 VI-2. TAX PROVISIONS APPLICABLE TO BENEFICIARIES DOMICILED ABROAD.

 Beneficiaries domiciled abroad are themselves solely responsible for: 

 

	 	•	 	 Determining the tax provisions applicable to gains resulting from (i) holding the shares issued as a result of the exercise of the BCE, and
(ii) the sale of such shares; 

  

	 	•	 	 Paying all taxes and contributions due as a result. 

 The company Sequans Communications shall have no obligation to provide advice and/or assistance in this regard. 

 

	1	 CSG = “contribution sociale généralisée”: a French social security tax. 

	2	 CRDS = “contribution au remboursement de la dette sociale”: another French social security tax. 

  
 - 8/8 -

 SEQUANS COMMUNICATIONS 

Regulation 
  

 
 Founders
Warrant Granting Plan. 2009-1 

 - SUMMARY - 
 I - DEFINITION OF THE FOUNDERS WARRANT SUBSCRIPTION PLAN (BCE) 
 II - LEGAL FRAMEWORK
FOR THE PLAN 
 III - DESCRIPTION OF THE PLAN 
  

	 	•	 	 Granting of the BCE 

  

	 	•	 	 Terms and conditions of the BCE 

  

	 	•	 	 Beneficiary termination of services with the Company 

  

	 	•	 	 Determination of the exercise price of the BCE 

  

	 	•	 	 Protection of the rights of the Beneficiaries during the exercise period of the BCE 

IV - TERMS AND CONDITIONS FOR EXERCISING BCE 
  

	 	•	 	 Suspension of the rights to exercise the BCE 

  

	 	•	 	 Procedures and conditions for exercising the BCE 

 V - FEATURES OF SHARES SUBSCRIBED 
  

	 	•	 	 Delivery and form of shares 

  

	 	•	 	 Possession rights 

 VI -
TAX PROVISIONS 

  
 2 

 I – DEFINITION OF FOUNDERS WARRANT SUBSCRIPTION PLAN (BCE) 

In order to reward its employees and managers, SEQUANS COMMUNICATIONS wishes to set up a system enabling them to share its growth. 

A Founders Warrant (BCE) subscription plan is a mechanism by which a company offers to its employees and/or its managers (subject to employees taxation
regime), the possibility to subscribe for a BCE for free which subsequent exercise allows to subscribe for new shares during a certain period, at a price set on the date the BCE are granted, and that remains fixed during the entire period.

 These BCE offer to its beneficiaries the possibility to realize a profit in case of an increase in value of the Company security between the
date the BCE are granted and the date the share is subscribed by exercise of the BCE. 
 The beneficiaries participate in their Company’s
performance trough the evolution in value of the shares before even becoming effectively shareholder of the company by exercising the BCE. 

Furthermore, the financial benefit obtained by exercising the BCE and by a subsequent sale of the shares is subject to a specific tax treatment.

 II – LEGAL FRAMEWORK FOR THE PLAN 
 This mechanism is governed by article 163 bis G of the French Tax Code. 
 The company SEQUANS
COMMUNICATIONS meets all the requirements required by the dispositions mentioned above in order to set up a BCE plan, bearing in mind that: 
  

	 	•	 	 It is incorporated with the Trade and Companies Registry since at least 15 years 

 

	 	•	 	 It is subject to French corporate taxation 

  

	 	•	 	 At least 25% of its share capital is held directly by individuals, being specified that in order to determine this threshold, it is not taken
into account participations held by: 

  

	 	(i)	regional development companies (RDC), venture capital companies (VCC), innovation finance companies (IFC) set forth in articles 208, l°ter, 208, 3°septies and
39 quinquies A, 2°, b) of the French Tax Code, 

  

	 	(ii)	venture capital mutual fund (VCMF) and innovation mutual investment fund (IMIF) set forth in articles 163 quinquies B, I and 199 terdecies-o A, VI, 1 of the French Tax
Code, 

  

	 	(iii)	local investment fund set forth in article L.241-41-1 of the French Monetary and Financial Code. 

 The shareholders in a combined general shareholders’ meeting held on June 12, 2009, voted
in favour of a resolution for the issuance of a total number of 450,000 BCE maximum and set the share purchase price that may be subscribed by exercising each BCE – that is one share of category A preference share – at a price set
for shares issued in connection with the most recent share capital increase prior to the issuance of said BCE. 
 In addition, the shareholders
granted to the Board of Directors the power to grant such BCE, in one or several times, including the power to determine the beneficiaries of the BCE and the number of BCE to be granted to each of them, with the suppression of shareholders’
preemptive subscription right – to increase the share capital for a maximum amount equal to the number of BCE granted, to record / acknowledge the successive increases in share capital resulting from the exercise of the BCE, and to carry out
all formalities required as a result thereof. 
 Pursuant to this grant of authority, and partially using the authorization it has been granted,
the Board of Directors, in a meeting held on July 15, 2009, has adopted this plan and adopted the terms and conditions applicable to this BCE plan in compliance with the principles decided by the aforementioned combined general
shareholders’ meeting and the applicable statutory provisions. 
 III – DESCRIPTION OF THE PLAN 

The list of the BCE 2009-1 Plan’s beneficiaries (hereinafter the “Beneficiaries”) has been approved by the Company’s Board of
Directors. 
 III-1. Granting of the BCE 
 The BCE are granted free of charge to each Beneficiary. 
 The number of BCE granted to each
Beneficiary shall be indicated in the Individual Notification Letter sent to him/her by the Chairman. 
 The exercise of a BCE entitles its
holder to subscribe for one new class A preferred share of SEQANS COMMUNICATIONS. 
 This number of shares cannot be modified during the
BCE period of validity, except in the event of an adjustment in the subscription price in accordance with the requirements provided by law (see section III-4. hereinafter). 
 Within a period of seven (7) days following the receipt of the letter informing him/her that he/she has been granted BCE, the Beneficiary undertakes to return to the Company a copy of this BCE 2009-1
Plan and a copy of the “CONTRACTUAL UNDERTAKING” attached to the said letter, after the Beneficiary has duly executed the said copies. 
 Failure to comply with this formality within the applicable period shall render the granted BCE immediately and automatically void. 
 III-2. Terms and conditions of the BCE 
 BCE are irrevocably granted for a period of
10 years as from the date they have been granted by the Board of Directors. 

  
 - 4/8 -

 As a result of the granting of the BCE, the pre-emptive right of shareholders to subscribe for the new
shares to be issued as the said BCE are exercised will be suppressed in favour of the Beneficiaries. 
 This BCE cannot be transferred.

 The BCE must be exercised within the aforementioned maximum period of ten years, being specified that the Beneficiary must respect the
following calendar: 
 (i) first grant: 
  

	 	•	 	 The Beneficiary shall exercise 25% of the BCE granted to him/her after the expiration of the 12 months period following his/her entrance in the company
SEQUANS COMMUNICATIONS or its subsidiaries; 

  

	 	•	 	 The Beneficiary shall then exercise the outstanding amount of his/her BCE, at the rate of
l/36e per month, within the period from the 13th and the 48th month following the date he/she entered the company SEQUANS COMMUNICATIONS or its subsidiaries.

 (ii) subsequent grants: 
  

	 	•	 	 The Beneficiary shall exercise 25% of the BCE issued to him/her after the expiration of the 12 months period following the date of grant of the said
BCE; 

  

	 	•	 	 The Beneficiary shall then exercise the outstanding amount of his/her BCE, at the rate of
l/36e per month, within the period from the 13th and the 48th month following the date of grant of the said BCE. 

Any first exercise must cover at least 25% of the BCE granted to the Beneficiary, in accordance with the exercise calendars set out above. 

In the event a third party acquires 100% of the share capital of SEQUANS COMMUNICATIONS, and in no other case, the Beneficiary who would
subsequently be dismissed for genuine material cause shall have the right to exercise all of his/her BCE within a period of 30 days following the date of the said dismissal, notwithstanding the calendar set out above. 

In any event, any BCE that is not exercised before the expiration of the aforementioned 10-year period shall be null and void. 

III-3. Beneficiary termination of services with the Company 
 In case of termination of the Beneficiary services with SEQUANS COMMUNICATIONS, whether as an employee or a company officer, due to resignation, redundancy, dismissal, incapacity or death, regardless of
the reason, the said Beneficiary looses all rights with regard to the BCE yet not exercisable at the end of termination of his/her duties regarding the exercise calendar set forth in the above article III-2. 

However, he/she retains the right to exercise the BCE that became exercisable and that have not yet been exercised provided that the Beneficiary
exercises his/her BCE within a period of 30 days following the actual termination of his/her duties. 

  
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 In the event of incapacity, such period shall be extended to 90 days. 

In the event of death, the Beneficiary’s heirs or beneficiaries shall beneficiate of a period extended to 6 months. 

After expiration of the periods aforementioned, the Beneficiary, his/her heirs or beneficiaries lose irrevocably all rights with regard to unexercised
BCE. 
 III-4. Determination of the exercise price of the BCE 
 The subscription price applicable with respect to this BCE 2009-1 plan is set in the amount of EUR 2.024 per share (with a premium of 2.014) i.e., the price of the shares issued in connection
with the increase in share capital voted by the extraordinary general shareholders’ meeting held on July 10, 2008. 
 This price may
not be changed during the BCE’s period of validity, except in the event of adjustments in accordance with statutory and regulatory provisions. 
 III-5. Protection of the rights of the Beneficiaries during the exercise period 

During the entire period of validity of the BCE, the Company will have the option to modify its form or object, without having to obtain the prior
authorisation of the Beneficiaries. In addition, the Company shall be entitled to change the rules for profits distribution, write down its capital, or create preferred shares. The Company will therefore take all necessary measures in order to
maintain Beneficiaries’ rights, in compliance with applicable legal and/or regulatory provisions. 
 IV – TERMS AND
CONDITIONS FOR EXERCISING BCE 
 IV-1. Suspension of the rights to exercise the BCE 

If necessary, the Board of Directors may suspend the right to exercise the BCE. In particular, this suspension may be ordered whenever a transaction
concerning SEQUANS COMMUNICATIONS’ share capital requires knowing in advance the exact number of shares that make up the share capital or in the event of the carrying out of one of the financial transactions requiring an adjustment. 

In such case, SEQUANS COMMUNICATIONS shall inform the Beneficiaries of the BCE, indicating the date of the suspension and the date on which the right to
exercise the BCE will be re-established. Such suspension may not exceed 3 months. 
 If the right to exercise a BCE expires during a period of
suspension, the period of exercise of the BCE shall be extended by 3 months. 
 IV-2. Procedure and conditions for exercising BCE

 All requests for exercise of the BCE, documented by the signature of a subscription certificate specific to the BCE 2009-1 plan, shall
be sent to SEQUANS COMMUNICATIONS, and must be accompanied by a check made to the Company’s order for an amount corresponding to the number of shares to be 

  
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subscribed. Shares subscribed must be fully paid up in cash at the time of subscription. 

Failure to do so renders the subscription null and void. 
 V – FEATURES OF SHARES SUBSCRIBED 
 V-l. Delivery and form of shares

 Shares acquired by exercising the BCE are registered in the books of SEQUANS COMMUNICATIONS as registered shares, which meets the
statutory requirements for benefiting from the applicable favourable tax treatment. 
 V-2. Possession rights 

The new shares, class A preferred shares, shall be subject to all provisions of the by-laws and shall enjoy all rights pertaining to the shares of such
class as of the date of completion of the share capital increase. 
 These shares shall be immediately transferable, in compliance with the
“CONTRACTUAL UNDERTAKING”, complied by the Beneficiary. 
 VI – TAX
PROVISIONS 
 VI-1. THE TAX PROVISIONS CURRENTLY APPLICABLE
TO BENEFICIARIES WHO ARE RESIDING IN FRANCE ARE EXPLAINED BELOW. 

In the event of a transfer of the shares subscribed following exercise of the BCE , the gain realised by the Beneficiary is equal to the difference
between the sale price of the share and their acquisition price. 
 This gain is imposed in accordance with the tax treatment of capital gain
realised on the sale of securities (articles 92 B, 92 J, 160, 200 A2 of the French Tax Code), and only if the annual threshold for sales of securities is exceeded (EUR 25,730 in 2008, total amount of sales made by a tax household). 

The proportional rate applicable is 18%, except if at the date of the transfer of his/her shares the Beneficiary has performed his/her duties for less
than three years, then the gain is subject to a 30% tax rate. 
 In addition to these proportional rates, the following social security
contributions apply for a total amount of 12,1% and are divided as follows: 
  

			
	 •     CSG l:
	  	8,2%
	 •     CRDS 2:
	  	0,5%

  

	1	 CSG = “contribution sociale généralisée”: a French social security tax. 

  
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	 •    social charges:
	  	2,3%
	 •    contribution for social allowances (RSA): 1,1%

Therefore, the total amount of taxation rate is of 30,1% or of 42,1% according to the term of the Beneficiary’s office in the Company.

 Note: in order to benefit from this specific tax provisions, the Beneficiary will have to attach to his/her revenue statement of the year
when the BCE have been exercised a certificate to be given by the Company. 
 VI-2. TAX PROVISIONS
APPLICABLE TO BENEFICIARIES DOMICILED ABROAD. 
 Beneficiaries
domiciled abroad are themselves solely responsible for: 
  

	 	•	 	 Determining the tax provisions applicable to gains resulting from (i) holding the shares issued as a result of the exercise of the BCE, and
(ii) the sale of such shares; 

  

	 	•	 	 Paying all taxes and contributions due as a result. 

 The company Sequans Communications shall have no obligation to provide advice and/or assistance in this regard. 

 

	2	 CRDS = “contribution au remboursement de la dette sociale”: another French social security tax. 

  
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 SEQUANS COMMUNICATIONS 

Regulation 
  

 
 Founders
Warrant Granting Plan. 2009-2 

 - SUMMARY - 
 I - DEFINITION OF THE FOUNDERS WARRANT SUBSCRIPTION PLAN (BCE) 
 II - LEGAL FRAMEWORK FOR
THE PLAN 
 III - DESCRIPTION OF THE PLAN 
  

	 	•	 	 Granting of the BCE 

  

	 	•	 	 Terms and conditions of the BCE 

  

	 	•	 	 Beneficiary termination of services with the Company 

  

	 	•	 	 Determination of the exercise price of the BCE 

  

	 	•	 	 Protection of the rights of the Beneficiaries during the exercise period of the BCE 

IV - TERMS AND CONDITIONS FOR EXERCISING BCE 
  

	 	•	 	 Suspension of the rights to exercise the BCE 

  

	 	•	 	 Procedures and conditions for exercising the BCE 

 V - FEATURES OF SHARES SUBSCRIBED 
  

	 	•	 	 Delivery and form of shares 

  

	 	•	 	 Possession rights 

 VI -
TAX PROVISIONS 

  
 2 

 I – DEFINITION OF FOUNDERS WARRANT SUBSCRIPTION PLAN (BCE) 

In order to reward its employees and managers, SEQUANS COMMUNICATIONS wishes to set up a system enabling them to share its growth. 

A Founders Warrant (BCE) subscription plan is a mechanism by which a company offers to its employees and/or its managers (subject to employees taxation
regime), the possibility to subscribe for a BCE for free which subsequent exercise allows to subscribe for new shares during a certain period, at a price set on the date the BCE are granted, and that remains fixed during the entire period.

 These BCE offer to its beneficiaries the possibility to realize a profit in case of an increase in value of the Company security between the
date the BCE are granted and the date the share is subscribed by exercise of the BCE. 
 The beneficiaries participate in their Company’s
performance trough the evolution in value of the shares before even becoming effectively shareholder of the company by exercising the BCE . 

Furthermore, the financial benefit obtained by exercising the BCE and by a subsequent sale of the shares is subject to a specific tax treatment.

 This BCE 2009-2 plan refers more specifically to the employees beneficiaries of the BCE 2004-1 plan that will not, at the expiration date of
the plan, exercise the BCE they have been granted in accordance with this plan and that were restricted to a 5 years period of exercise. 
 This
BCE 2009-2 plan has for requisite to allocate to each of the aforementioned employees a number of BCE equal to the number of BCE 2004-1 it would hold and that would be void, being specified that these new BCE will be exercisable as soon as they will
be granted. 
 II – LEGAL FRAMEWORK FOR THE PLAN 
 This mechanism is governed by article 163 bis G of the French Tax Code. 
 The company SEQUANS
COMMUNICATIONS meets all the requirements required by the dispositions mentioned above in order to set up a BCE plan, bearing in mind that: 
  

	 	•	 	 It is incorporated with the Trade and Companies Registry since at least 15 years 

 

	 	•	 	 It is subject to French corporate taxation 

  

	 	•	 	 At least 25% of its share capital is held directly by individuals, being specified that in order to determine this threshold, it is not taken
into account participations held by: 

  

	 	(i)	regional development companies (RDC), venture capital companies (VCC), innovation finance companies (IFC) set forth in articles 208, l°ter, 208, 3°septies and
39 quinquies A, 2°, b) of the French Tax Code, 

  

	 	(ii)	venture capital mutual fund (VCMF) and innovation mutual investment fund (IMIF) set forth in articles 163 quinquies B, I and 199 terdecies-o A, VI, 1 of the French Tax
Code, 

  

	 	(iii)	local investment fund set forth in article L.241-41-1 of the French Monetary and Financial Code. 

 The shareholders in a combined general shareholders’ meeting held on June 12, 2009, voted
in favour of a resolution for the issuance of a total number of 587,000 BCE maximum and set the share purchase price that may be subscribed by exercising each BCE – that is one share of category A preference share – at a price set
for shares issued in connection with the most recent share capital increase prior to the issuance of said BCE. 
 In addition, the shareholders
granted to the Board of Directors the power to grant such BCE, in one or several times, including the power to determine the beneficiaries of the BCE and the number of BCE to be granted to each of them, with the suppression of shareholders’
preemptive subscription right – to increase the share capital for a maximum amount equal to the number of BCE granted, to record / acknowledge the successive increases in share capital resulting from the exercise of the BCE, and to carry out
all formalities required as a result thereof. 
 Pursuant to this grant of authority, and partially using the authorization it has been granted,
the Board of Directors, in a meeting held on July 15, 2009, has adopted this plan and adopted the terms and conditions applicable to this BCE plan in compliance with the principles decided by the aforementioned combined general
shareholders’ meeting and the applicable statutory provisions. 
 III – DESCRIPTION OF THE PLAN 

The list of the BCE 2009-2 Plan’s beneficiaries (hereinafter the “Beneficiaries”) has been approved by the Company’s Board of
Directors. 
 III-1. Granting of the BCE 
 The BCE are granted free of charge to each Beneficiary. 
 The number of BCE granted to each
Beneficiary shall be indicated in the Individual Notification Letter sent to him/her by the Chairman. 
 The exercise of a BCE entitles its
holder to subscribe for one new class A preferred share of SEQANS COMMUNICATIONS. 
 This number of shares cannot be modified during the
BCE period of validity, except in the event of an adjustment in the subscription price in accordance with the requirements provided by law (see section III-4. hereinafter). 
 Within a period of seven (7) days following the receipt of the letter informing him/her that he/she has been granted BCE, the Beneficiary undertakes to return to the Company a copy of this BCE 2009-2
Plan and a copy of the “CONTRACTUAL UNDERTAKING” attached to the said letter, after the Beneficiary has duly executed the said copies. 
 Failure to comply with this formality within the applicable period shall render the granted BCE immediately and automatically void. 
 III-2. Terms and conditions of the BCE 
 BCE are irrevocably granted for a period of
10 years as from the date they have been granted by the Board of Directors. 

  
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 As a result of the granting of the BCE, the pre-emptive right of shareholders to subscribe for the new
shares to be issued as the said BCE are exercised will be suppressed in favour of the Beneficiaries. 
 This BCE cannot be transferred. The BCE
must be exercised within the aforementioned maximum period of ten years. 
 Any first exercise must cover at least 25% of the BCE granted
to the Beneficiary. 
 In any event, any BCE that is not exercised before the expiration of the aforementioned 10-year period shall be null and
void. 
 III-3. Beneficiary termination of services with the Company 
 In case of termination of the Beneficiary services with SEQUANS COMMUNICATIONS, whether as an employee or a company officer, due to resignation, redundancy, dismissal, incapacity or death, regardless of
the reason, the said Beneficiary retains the right to exercise the BCE that became exercisable and that have not yet been exercised provided that the Beneficiary exercises his/her BCE within a period of 30 days following the actual termination of
his/her duties. 
 In the event of incapacity, such period shall be extended to 90 days. 

In the event of death, the Beneficiary’s heirs or beneficiaries shall beneficiate of a period extended to 6 months. 

After expiration of the periods aforementioned, the Beneficiary, his/her heirs or beneficiaries lose irrevocably all rights with regard to unexercised
BCE. 
 III-4. Determination of the exercise price of the BCE 
 The subscription price applicable with respect to this BCE 2009-2 plan is set in the amount of EUR 2.024 per share (with a premium of 2.014) i.e., the price of the shares issued in connection
with the increase in share capital voted by the extraordinary general shareholders’ meeting held on July 10, 2008. 
 This price may
not be changed during the BCE’s period of validity, except in the event of adjustments in accordance with statutory and regulatory provisions. 
 III-5. Protection of the rights of the Beneficiaries during the exercise period 

During the entire period of validity of the BCE, the Company will have the option to modify its form or object, without having to obtain the prior
authorisation of the Beneficiaries. In addition, the Company shall be entitled to change the rules for profits distribution, write down its capital, or create preferred shares. The Company will therefore take all necessary measures in order to
maintain Beneficiaries’ rights, in compliance with applicable legal and/or regulatory provisions. 
 IV – TERMS AND
CONDITIONS FOR EXERCISING BCE 
 IV-1. Suspension of the rights to exercise the BCE 

  
 - 5/8 -

 If necessary, the Board of Directors may suspend the right to exercise the BCE. In particular, this
suspension may be ordered whenever a transaction concerning SEQUANS COMMUNICATIONS’ share capital requires knowing in advance the exact number of shares that make up the share capital or in the event of the carrying out of one of the financial
transactions requiring an adjustment. 
 In such case, SEQUANS COMMUNICATIONS shall inform the Beneficiaries of the BCE, indicating the date of
the suspension and the date on which the right to exercise the BCE will be re-established. Such suspension may not exceed 3 months. 
 If the
right to exercise a BCE expires during a period of suspension, the period of exercise of the BCE shall be extended by 3 months. 
 IV-2.
Procedure and conditions for exercising BCE 
 All requests for exercise of the BCE, documented by the signature of a subscription
certificate specific to the BCE 2009-2 plan, shall be sent to SEQUANS COMMUNICATIONS, and must be accompanied by a check made to the Company’s order for an amount corresponding to the number of shares to be subscribed. Shares subscribed must be
fully paid up in cash at the time of subscription. 
 Failure to do so renders the subscription null and void. 

V – FEATURES OF SHARES SUBSCRIBED 
 V-1. Delivery and form of shares 
 Shares acquired by exercising the BCE are
registered in the books of SEQUANS COMMUNICATIONS as registered shares, which meets the statutory requirements for benefiting from the applicable favourable tax treatment. 
 V-2. Possession rights 
 The new shares, class A preferred shares, shall be subject
to all provisions of the by-laws and shall enjoy all rights pertaining to the shares of such class as of the date of completion of the share capital increase. 
 These shares shall be immediately transferable, in compliance with the “CONTRACTUAL UNDERTAKING”, complied by the Beneficiary. 

VI – TAX PROVISIONS 

VI-1. THE TAX PROVISIONS CURRENTLY APPLICABLE TO
BENEFICIARIES WHO ARE RESIDING IN FRANCE ARE EXPLAINED BELOW. 

In the event of a transfer of the shares subscribed following exercise of the BCE , the gain realised by

  
 - 6/8 -

 
the Beneficiary is equal to the difference between the sale price of the share and their acquisition price. 
 This gain is imposed in accordance with the tax treatment of capital gain realised on the sale of securities (articles 92 B, 92 J, 160, 200 A2 of the French Tax Code), and only if the annual threshold for
sales of securities is exceeded (EUR 25,730 in 2009, total amount of sales made by a tax household). 
 The proportional rate applicable is 18%,
except if at the date of the transfer of his/her shares the Beneficiary has performed his/her duties for less than three years, then the gain is subject to a 30% tax rate. 
 In addition to these proportional rates, the following social security contributions apply for a total amount of 12,1% and are divided as follows: 

 

			
	 •     CSG 1:
	  	8,2%
	 •     CRDS 2:
	  	0,5%
	 •     social charges:
	  	2,3%
	 •     contribution for social allowances (RSA): 1,1 %

Therefore, the total amount of taxation rate is of 30,1% or of 42,1% according to the term of the Beneficiary’s office in the Company.

 Note: in order to benefit from this specific tax provisions, the Beneficiary will have to attach to his/her revenue statement of the year
when the BCE have been exercised a certificate to be given by the Company. 
 VI-2. TAX
PROVISIONS APPLICABLE TO BENEFICIARIES DOMICILED ABROAD. 
 Beneficiaries domiciled abroad are themselves solely responsible for: 
  

	 	•	 	 Determining the tax provisions applicable to gains resulting from (i) holding the shares issued as a result of the exercise of the BCE, and
(ii) the sale of such shares; 

  

	 	•	 	 Paying all taxes and contributions due as a result. 

 The company Sequans Communications shall have no obligation to provide advice and/or assistance in this regard. 

 

	1	 CSG = “contribution sociale généralisée”: a French social security tax. 

	2	 CRDS = “contribution au remboursement de la dette sociale”: another French social security tax. 

  
 - 7/8 -

 SEQUANS COMMUNICATIONS 

Société anonyme with a share capital of 475,712.78 Euros 
 Registered office: 19 Le Parvis de Paris La Défense – 92800 PUTEAUX 

Trade Register N°: 450 249 677 Nanterre 
 Regulation 
  

 
 Founders
Warrant Granting Plan. 2010-1 

 - SUMMARY - 
 I - DEFINITION OF THE FOUNDERS WARRANT SUBSCRIPTION PLAN (BCE) 
 II - LEGAL FRAMEWORK
FOR THE PLAN 
 III - DESCRIPTION OF THE PLAN 
  

	 	•	 	 Granting of the BCE 

  

	 	•	 	 Terms and conditions of the BCE 

  

	 	•	 	 Beneficiary termination of services with the Company 

  

	 	•	 	 Determination of the exercise price of the BCE 

  

	 	•	 	 Protection of the rights of the Beneficiaries during the exercise period of the BCE 

IV - TERMS AND CONDITIONS FOR EXERCISING BCE 
  

	 	•	 	 Suspension of the rights to exercise the BCE 

  

	 	•	 	 Procedures and conditions for exercising the BCE 

 V - FEATURES OF SHARES SUBSCRIBED 
  

	 	•	 	 Delivery and form of shares 

  

	 	•	 	 Possession rights 

 VI -
TAX PROVISIONS 

  
 2 

 I – DEFINITION OF FOUNDERS WARRANT SUBSCRIPTION PLAN (BCE) 

In order to reward its employees and managers, SEQUANS COMMUNICATIONS wishes to set up a system enabling them to share its growth. 

A Founders Warrant (BCE) subscription plan is a mechanism by which a company offers to its employees and/or its managers (subject to employees taxation
regime), the possibility to subscribe for a BCE for free which subsequent exercise allows to subscribe for new shares during a certain period, at a price set on the date the BCE are granted, and that remains fixed during the entire period.

 These BCE offer to its beneficiaries the possibility to realize a profit in case of an increase in value of the Company security between the
date the BCE are granted and the date the share is subscribed by exercise of the BCE. 
 The beneficiaries participate in their Company’s
performance trough the evolution in value of the shares before even becoming effectively shareholder of the company by exercising the BCE. 

Furthermore, the financial benefit obtained by exercising the BCE and by a subsequent sale of the shares is subject to a specific tax treatment.

 II – LEGAL FRAMEWORK FOR THE PLAN 
 This mechanism has been set up by the law of finance of 1998 n°– n°97-1269 dated December 30 1997, amended by the law of finance of 1999 – n°98-1266 dated December 30, 1998
-, the law n°99-587 dated July 12, 1999, the law n°2001-420 dated May 15, 2001 and the law n°2003-706 dated August 1st 2003, the law n°2008-776 dated August 4, 2008. 

This mechanism is also governed by article 163 bis G of the French Tax Code and by the Decree n°98-557 dated July 1st, 1998. 

The company SEQUANS COMMUNICATIONS meets all the requirements required by the dispositions mentioned above in order to set up a BCE plan, bearing in mind
that: 
  

	 	•	 	 It is incorporated with the Trade and Companies Registry since at least 15 years 

 

	 	•	 	 It is subject to French corporate taxation 

  

	 	•	 	 At least 25% of its share capital is held directly by individuals, being specified that in order to determine this threshold, it is not taken
into account participations held by: 

  

	 	(i)	regional development companies (RDC), venture capital companies (VCC), innovation finance companies (IFC) set forth in articles 208, l°ter, 208, 3°septies and
39 quinquies A, 2°, b) of the French Tax Code, 

  

	 	(ii)	venture capital mutual fund (VCMF) and innovation mutual investment fund (IMIF) set forth in articles 163 quinquies B, I and 199 terdecies-o A, VI, 1 of the French Tax
Code, 

  

	 	(iii)	local investment fund set forth in article L.241-41-1 of the French Monetary and Financial Code. 

 The shareholders in a combined general shareholders’ meeting held on June 30, 2010, voted
in favour of a resolution for the issuance of a total number of 724,000 BCE maximum and set the share purchase price that may be subscribed by exercising each BCE – that is one share of category A preference share – at a price set
for shares issued in connection with the most recent share capital increase prior to the issuance of said BCE. 
 In addition, the shareholders
granted to the Board of Directors the power to grant such BCE, in one or several times, including the power to determine the beneficiaries of the BCE and the number of BCE to be granted to each of them, with the suppression of shareholders’
preemptive subscription right – to increase the share capital for a maximum amount equal to the number of BCE granted, to record / acknowledge the successive increases in share capital resulting from the exercise of the BCE, and to carry out
all formalities required as a result thereof. 
 Pursuant to this grant of authority, and partially using the authorization it has been granted,
the Board of Directors, in a meeting held on July [21], 2010, has adopted this plan and adopted the terms and conditions applicable to this BCE plan hereinafter “the BCE 2010-1 Plan”, in compliance with the principles decided by the
aforementioned combined general shareholders’ meeting and the applicable statutory provisions, being specified that this BCE 2010-1 Plan shall apply to the issuance of a maximum of 600,000 BCE. 

III – DESCRIPTION OF THE PLAN 
 The list of the BCE 2010-1 Plan’s beneficiaries (hereinafter the “Beneficiaries”) has been approved by the Company’s Board of Directors. 

III-1. Granting of the BCE 
 The
BCE are granted free of charge to each Beneficiary. 
 The number of BCE granted to each Beneficiary shall be indicated in the Individual
Notification Letter sent to him/her by the Chairman. 
 The exercise of a BCE entitles its holder to subscribe for one new class A preferred
share of SEQANS COMMUNICATIONS. 
 This number of shares cannot be modified during the BCE period of validity, except in the event of an
adjustment in the subscription price in accordance with the requirements provided by law (see section III-4. hereinafter). 
 Within a period of
seven (7) days following the receipt of the letter informing him/her that he/she has been granted BCE, the Beneficiary undertakes to return to the Company a copy of this BCE 2010-1 Plan and a copy of the “CONTRACTUAL
UNDERTAKING” attached to the said letter, after the Beneficiary has duly executed the said copies. 
 Failure to comply
with this formality within the applicable period shall render the granted BCE immediately and automatically void. 
 III-2. Terms and
conditions of the BCE 
 BCE are irrevocably granted for a period of 10 years as from the date they have been granted by the

  
 - 4/8 -

 
Board of Directors. 
 As a result of the granting of the BCE, the pre-emptive right of
shareholders to subscribe for the new shares to be issued as the said BCE are exercised will be suppressed in favour of the Beneficiaries. 

This BCE cannot be transferred. 
 The BCE must
be exercised within the aforementioned maximum period of ten years, being specified that the Beneficiary must respect the following calendar: 
 (i) first grant: 
  

	 	•	 	 The Beneficiary shall exercise 25% of the BCE granted to him/her after the expiration of the 12 months period following his/her entrance in the company
SEQUANS COMMUNICATIONS or its subsidiaries; 

  

	 	•	 	 The Beneficiary shall then exercise the outstanding amount of his/her BCE, at the rate of
l/36e per month, within the period from the 13th and the 48th month following the date he/she entered the company SEQUANS COMMUNICATIONS or its subsidiaries.

 (ii) subsequent grants: 
  

	 	•	 	 The Beneficiary shall exercise 25% of the BCE issued to him/her after the expiration of the 12 months period following the date of grant of the said
BCE; 

  

	 	•	 	 The Beneficiary shall then exercise the outstanding amount of his/her BCE, at the rate of
l/36e per month, within the period from the 13th and the 48th month following the date of grant of the said BCE. 

Any first exercise must cover at least 25% of the BCE granted to the Beneficiary, in accordance with the exercise calendars set out above. 

In the event a third party acquires 100% of the share capital of SEQUANS COMMUNICATIONS, and in no other case, the Beneficiary who would
subsequently be dismissed for genuine material cause shall have the right to exercise all of his/her BCE within a period of 30 days following the date of the said dismissal, notwithstanding the calendar set out above. 

In any event, any BCE that is not exercised before the expiration of the aforementioned 10-year period shall be null and void. 

III-3. Beneficiary termination of services with the Company 
 In case of termination of the Beneficiary services with SEQUANS COMMUNICATIONS, whether as an employee or a company officer, due to resignation, redundancy, dismissal, incapacity or death, regardless of
the reason, the said Beneficiary looses all rights with regard to the BCE yet not exercisable at the end of termination of his/her duties regarding the exercise calendar set forth in the above article III-2. 

However, he/she retains the right to exercise the BCE that became exercisable and that have not yet been exercised provided that the Beneficiary
exercises his/her BCE within a period of 30 days following the actual termination of his/her duties. 

  
 - 5/8 -

 
In the event of incapacity, such period shall be extended to 90 days. 
 In the event of
death, the Beneficiary’s heirs or beneficiaries shall beneficiate of a period extended to 6 months. 
 After expiration of the periods
aforementioned, the Beneficiary, his/her heirs or beneficiaries lose irrevocably all rights with regard to unexercised BCE. 
 III-4.
Determination of the exercise price of the BCE 
 Pursuant to the law and if the company granting the BCE increased its share capital in
the six months preceding the issuance of the said BCE, the subscription price shall not be inferior to the price of shares therefore issued. 

Consequently, the subscription price applicable with respect to this BCE 2010-1 plan is set in the amount of EUR 2.024 per share (with a
premium of 2.014) i.e., the price of the shares issued in connection with the increase in share capital voted by the extraordinary general shareholders’ meeting held on July 16, 2010. 

This price may not be changed during the BCE’s period of validity, except in the event of adjustments in accordance with statutory and regulatory
provisions. 
 III-5. Protection of the rights of the Beneficiaries during the exercise period 

During the entire period of validity of the BCE, the Company will have the option to modify its form or object, without having to obtain the prior
authorisation of the Beneficiaries. In addition, the Company shall be entitled to change the rules for profits distribution, write down its capital, or create preferred shares entailing such modification or writing down, subject to the prior
authorisation to be delivered in accordance with to the terms of Article L. 228-103 of the French Commercial code and provided that the Company accordingly takes all necessary measures in order to maintain Beneficiaries’ rights, in compliance
with applicable legal and/or regulatory provisions. 
 IV – TERMS AND CONDITIONS FOR EXERCISING BCE 

IV-1. Suspension of the rights to exercise the BCE 
 If necessary, the Board of Directors may suspend the right to exercise the BCE. In particular, this suspension may be ordered whenever a transaction concerning SEQUANS COMMUNICATIONS’ share capital
requires knowing in advance the exact number of shares that make up the share capital or in the event of the carrying out of one of the financial transactions requiring an adjustment. 
 In such case, SEQUANS COMMUNICATIONS shall inform the Beneficiaries of the BCE, indicating the date of the suspension and the date on which the right to exercise the BCE will be re-established. Such
suspension may not exceed 3 months. 
 If the right to exercise a BCE expires during a period of suspension, the period of exercise of the BCE
shall be extended by 3 months. 

  
 - 6/8 -

 IV-2. Procedure and conditions for exercising BCE 

All requests for exercise of the BCE, documented by the signature of a subscription certificate specific to the BCE 2010-1 plan, shall be sent to SEQUANS
COMMUNICATIONS, and must be accompanied by a check made to the Company’s order for an amount corresponding to the number of shares to be subscribed. Shares subscribed must be fully paid up in cash at the time of subscription. 

Failure to do so renders the subscription null and void. 
 V – FEATURES OF SHARES SUBSCRIBED 
 V-l. Delivery and form of shares

 Shares acquired by exercising the BCE are registered in the books of SEQUANS COMMUNICATIONS as registered shares, which meets the
statutory requirements for benefiting from the applicable favourable tax treatment. 
 V-2. Possession rights 

The new shares, class A preferred shares, shall be subject to all provisions of the by-laws and shall enjoy all rights pertaining to the shares of such
class as of the date of completion of the share capital increase. 
 These shares shall be immediately transferable, in compliance with the
“CONTRACTUAL UNDERTAKING”, complied by the Beneficiary. 
 VI – TAX
PROVISIONS 
 VI-1. THE TAX PROVISIONS CURRENTLY APPLICABLE
TO BENEFICIARIES WHO ARE RESIDING IN FRANCE ARE EXPLAINED BELOW. 

In the event of a transfer of the shares subscribed following exercise of the BCE, the gain realised by the Beneficiary is equal to the difference between
the sale price of the share and their acquisition price. 
 This gain is imposed in accordance with the tax treatment of capital gain realised
on the sale of securities (articles 92 B, 92 J, 160, 200 A2 of the French Tax Code), and only if the annual threshold for sales of securities is exceeded (EUR 25,830 in 2010, total amount of sales made by a tax household). 

The proportional rate applicable is 18%, except if at the date of the transfer of his/her shares the Beneficiary has performed his/her duties for less
than three years, then the gain is subject to a 30% tax rate. 

  
 - 7/8 -

 In addition to these proportional rates, the following social security contributions apply for a total
amount of 11% and are divided as follows: 
  

			
	 •    CSG 1:
	  	8,2%
	 •    CRDS 2:
	  	0,5%
	 •    social charges:
	  	2,3%
	 •    contribution to the national solidarity fund for autonomy 0,3%

	 •    contribution for social allowances (RSA): 1,1%

Therefore, the total amount of taxation rate is of 30,1% or of 42,1% according to the term of the Beneficiary’s office in the Company.

 VI-2. TAX PROVISIONS APPLICABLE TO BENEFICIARIES
DOMICILED ABROAD. 
 Beneficiaries domiciled abroad are themselves solely responsible for:

  

	 	•	 	 Determining the tax provisions applicable to gains resulting from (i) holding the shares issued as a result of the exercise of the BCE, and
(ii) the sale of such shares; 

  

	 	•	 	 Paying all taxes and contributions due as a result. 

 The company Sequans Communications shall have no obligation to provide advice and/or assistance in this regard. 

 

	1	 CSG = “contribution sociale généralisée”: a French social security tax. 

	2	 CRDS = “contribution au remboursement de la dette sociale”: another French social security tax. 

  
 - 8/8 -

 SEQUANS COMMUNICATIONS 

Société anonyme with a share capital of 475,712.78 Euros 

Registered office: 19 Le Parvis de Paris La Défense – 92800 PUTEAUX 

Trade Register N°: 450 249 677 Nanterre 
 Regulation 
  

 
 Founders
Warrant Granting Plan. 2010-2 

 - SUMMARY - 
 I - DEFINITION OF THE FOUNDERS WARRANT SUBSCRIPTION PLAN (BCE) 
 II - LEGAL FRAMEWORK FOR
THE PLAN 
 III - DESCRIPTION OF THE PLAN 
  

	 	•	 	 Granting of the BCE 

  

	 	•	 	 Terms and conditions of the BCE 

  

	 	•	 	 Beneficiary termination of services with the Company 

  

	 	•	 	 Determination of the exercise price of the BCE 

  

	 	•	 	 Protection of the rights of the Beneficiaries during the exercise period of the BCE 

IV - TERMS AND CONDITIONS FOR EXERCISING BCE 
  

	 	•	 	 Suspension of the rights to exercise the BCE 

  

	 	•	 	 Procedures and conditions for exercising the BCE 

 V - FEATURES OF SHARES SUBSCRIBED 
  

	 	•	 	 Delivery and form of shares 

  

	 	•	 	 Possession rights 

 VI -
TAX PROVISIONS 

  
 2 

 I – DEFINITION OF FOUNDERS WARRANT SUBSCRIPTION PLAN (BCE) 

In order to reward its employees and managers, SEQUANS COMMUNICATIONS wishes to set up a system enabling them to share its growth. 

A Founders Warrant (BCE) subscription plan is a mechanism by which a company offers to its employees and/or its managers (subject to employees taxation
regime), the possibility to subscribe for a BCE for free which subsequent exercise allows to subscribe for new shares during a certain period, at a price set on the date the BCE are granted, and that remains fixed during the entire period.

 These BCE offer to its beneficiaries the possibility to realize a profit in case of an increase in value of the Company security between the
date the BCE are granted and the date the share is subscribed by exercise of the BCE. 
 The beneficiaries participate in their Company’s
performance trough the evolution in value of the shares before even becoming effectively shareholder of the company by exercising the BCE . 

Furthermore, the financial benefit obtained by exercising the BCE and by a subsequent sale of the shares is subject to a specific tax treatment.

 II – LEGAL FRAMEWORK FOR THE PLAN 
 This mechanism has been set up by the law of finance of 1998 n°– n°97-1269 dated December 30 1997, amended by the law of finance of 1999 – n°98-1266 dated December 30, 1998
-, the law n°99-587 dated July 12, 1999, the law n°2001-420 dated May 15, 2001 and the law n°2003-706 dated August 1st 2003, the law n°2008-776 dated August 4, 2008. 

This mechanism is also governed by article 163 bis G of the French Tax Code and by the Decree n°98-557 dated July 1st, 1998. 

The company SEQUANS COMMUNICATIONS meets all the requirements required by the dispositions mentioned above in order to set up a BCE plan, bearing in mind
that: 
  

	 	•	 	 It is incorporated with the Trade and Companies Registry since at least 15 years 

 

	 	•	 	 It is subject to French corporate taxation 

  

	 	•	 	 At least 25% of its share capital is held directly by individuals, being specified that in order to determine this threshold, it is not taken
into account participations held by: 

  

	 	(i)	regional development companies (RDC), venture capital companies (VCC), innovation finance companies (IFC) set forth in articles 208, l°ter, 208, 3°septies and
39 quinquies A, 2°, b) of the French Tax Code, 

  

	 	(ii)	venture capital mutual fund (VCMF) and innovation mutual investment fund (IMIF) set forth in articles 163 quinquies B, I and 199 terdecies-o A, VI, 1 of the French Tax
Code, 

  

	 	(iii)	local investment fund set forth in article L.241-41-1 of the French Monetary and Financial Code. 

 The shareholders in a combined general shareholders’ meeting held on June 30, 2010, voted
in favour of a resolution for the issuance of a total number of 724,000 BCE maximum and set the share purchase price that may be subscribed by exercising each BCE – that is one share of category A preference share – at a price set
for shares issued in connection with the most recent share capital increase prior to the issuance of said BCE. 
 In addition, the shareholders
granted to the Board of Directors the power to grant such BCE, in one or several times, including the power to determine the beneficiaries of the BCE and the number of BCE to be granted to each of them, with the suppression of shareholders’
preemptive subscription right – to increase the share capital for a maximum amount equal to the number of BCE granted, to record / acknowledge the successive increases in share capital resulting from the exercise of the BCE, and to carry out
all formalities required as a result thereof. 
 Pursuant to this grant of authority, and partially using the authorization it has been granted,
the Board of Directors, in a meeting held on July [21], 2010, has adopted this plan and adopted the terms and conditions applicable to this BCE plan hereinafter “the BCE 2010-2 Plan”, in compliance with the principles decided by the
aforementioned combined general shareholders’ meeting and the applicable statutory provisions, being specified that this BCE 2010-2 Plan shall apply to the issuance of a maximum of 124,000 BCE and is for the sole benefit of the holders
of BCE issued in application of the BCE 2004-1 plan that could not have been exercised within the timeline of 5 years set by the aforesaid plan. 
 III – DESCRIPTION OF THE PLAN 
 The list of the BCE 2010-2 Plan’s beneficiaries
(hereinafter the “Beneficiaries”) has been approved by the Company’s Board of Directors. 
 III-1. Granting of the BCE

 The BCE are granted free of charge to each Beneficiary. 
 The number of BCE granted to each Beneficiary shall be indicated in the Individual Notification Letter sent to him/her by the Chairman. 
 The exercise of a BCE entitles its holder to subscribe for one new class A preferred share of SEQANS COMMUNICATIONS. 
 This number of shares cannot be modified during the BCE period of validity, except in the event of an adjustment in the subscription price in accordance with the requirements provided by law (see section
III-4. hereinafter). 
 Within a period of seven (7) days following the receipt of the letter informing him/her that he/she has been
granted BCE, the Beneficiary undertakes to return to the Company a copy of this BCE 2010-2 Plan and a copy of the “CONTRACTUAL UNDERTAKING” attached to the said letter, after the Beneficiary has duly
executed the said copies. 
 Failure to comply with this formality within the applicable period shall render the granted BCE immediately and
automatically void. 
 III-2. Terms and conditions of the BCE 

  
 - 4/8 -

 BCE are irrevocably granted for a period of 10 years as from the date they have been granted by the Board
of Directors. 
 As a result of the granting of the BCE, the pre-emptive right of shareholders to subscribe for the new shares to be issued as
the said BCE are exercised will be suppressed in favour of the Beneficiaries. 
 This BCE cannot be transferred. 

The BCE must be exercised within the aforementioned maximum period of ten years, being specified that they may be exercised when they are granted.

 Any first exercise must cover at least 25% of the BCE granted to the Beneficiary. 
 In the event a third party acquires 100% of the share capital of SEQUANS COMMUNICATIONS, and in no other case, the Beneficiary who would subsequently be dismissed for genuine material cause shall
have the right to exercise all of his/her BCE within a period of 30 days following the date of the said dismissal, notwithstanding the calendar set out above. 
 In any event, any BCE that is not exercised before the expiration of the aforementioned 10-year period shall be null and void. 
 III-3. Beneficiary termination of services with the Company 
 In case of termination
of the Beneficiary services with SEQUANS COMMUNICATIONS, whether as an employee or a company officer, due to resignation, redundancy, dismissal, incapacity or death, regardless of the reason, the said Beneficiary retains the right to exercise the
BCE that became exercisable and that have not yet been exercised provided that the Beneficiary exercises his/her BCE within a period of 30 days following the actual termination of his/her duties. 

In the event of incapacity, such period shall be extended to 90 days. 
 In the event of death, the Beneficiary’s heirs or beneficiaries shall beneficiate of a period extended to 6 months. 
 After expiration of the periods aforementioned, the Beneficiary, his/her heirs or beneficiaries lose irrevocably all rights with regard to unexercised BCE. 

III-4. Determination of the exercise price of the BCE 
 Pursuant to the law and if the company granting the BCE increased its share capital in the six months preceding the issuance of the said BCE, the subscription price shall not be inferior to the price of
shares therefore issued. 
 Consequently, the subscription price applicable with respect to this BCE 2010-2 plan is set in the amount of EUR
2.024 per share (with a premium of 2.014) i.e., the price of the shares issued in connection with the increase in share capital voted by the extraordinary general shareholders’ meeting held on July 16, 2010. 

This price may not be changed during the BCE’s period of validity, except in the event of adjustments in accordance with statutory and regulatory
provisions. 

  
 - 5/8 -

 III-5. Protection of the rights of the Beneficiaries during the exercise period 

During the entire period of validity of the BCE, the Company will have the option to modify its form or object, without having to obtain the prior
authorisation of the Beneficiaries. In addition, the Company shall be entitled to change the rules for profits distribution, write down its capital, or create preferred shares entailing such modification or writing down, subject to the prior
authorisation to be delivered in accordance with to the terms of Article L. 228-103 of the French Commercial code and provided that the Company accordingly takes all necessary measures in order to maintain Beneficiaries’ rights, in compliance
with applicable legal and/or regulatory provisions. 
 IV – TERMS AND CONDITIONS FOR EXERCISING BCE 

IV-1. Suspension of the rights to exercise the BCE 
 If necessary, the Board of Directors may suspend the right to exercise the BCE. In particular, this suspension may be ordered whenever a transaction concerning SEQUANS COMMUNICATIONS’ share capital
requires knowing in advance the exact number of shares that make up the share capital or in the event of the carrying out of one of the financial transactions requiring an adjustment. 
 In such case, SEQUANS COMMUNICATIONS shall inform the Beneficiaries of the BCE, indicating the date of the suspension and the date on which the right to exercise the BCE will be re-established. Such
suspension may not exceed 3 months. 
 If the right to exercise a BCE expires during a period of suspension, the period of exercise of the BCE
shall be extended by 3 months. 
 IV-2. Procedure and conditions for exercising BCE 

All requests for exercise of the BCE, documented by the signature of a subscription certificate specific to the BCE 2010-2 plan, shall be sent to SEQUANS
COMMUNICATIONS, and must be accompanied by a check made to the Company’s order for an amount corresponding to the number of shares to be subscribed. Shares subscribed must be fully paid up in cash at the time of subscription. 

Failure to do so renders the subscription null and void. 
 V – FEATURES OF SHARES SUBSCRIBED 
 V-1. Delivery and form of shares

 Shares acquired by exercising the BCE are registered in the books of SEQUANS COMMUNICATIONS as registered shares, which meets the
statutory requirements for benefiting from the applicable favourable tax treatment. 
 V-2. Possession rights 

  
 - 6/8 -

 The new shares, class A preferred shares, shall be subject to all provisions of the by-laws and shall enjoy
all rights pertaining to the shares of such class as of the date of completion of the share capital increase. 
 These shares shall be
immediately transferable, in compliance with the “CONTRACTUAL UNDERTAKING”, complied by the Beneficiary. 
 VI – TAX PROVISIONS 
 VI-1. THE TAX
PROVISIONS CURRENTLY APPLICABLE TO BENEFICIARIES WHO ARE RESIDING IN FRANCE ARE
EXPLAINED BELOW. 
 In the event of a transfer of the shares subscribed following exercise of the BCE, the gain
realised by the Beneficiary is equal to the difference between the sale price of the share and their acquisition price. 
 This gain is imposed
in accordance with the tax treatment of capital gain realised on the sale of securities (articles 92 B, 92 J, 160, 200 A2 of the French Tax Code), and only if the annual threshold for sales of securities is exceeded (EUR 25,830 in 2010, total amount
of sales made by a tax household). 
 The proportional rate applicable is 18%, except if at the date of the transfer of his/her shares the
Beneficiary has performed his/her duties for less than three years, then the gain is subject to a 30% tax rate. 
 In addition to these
proportional rates, the following social security contributions apply for a total amount of 12.1% and are divided as follows: 
  

			
	 •    CSG 1:
	  	8,2%
	 •    CRDS 2:
	  	0,5%
	 •    social charges:
	  	   2%
	 •    contribution to the national solidarity fund for autonomy 0,3%

	 •    contribution for social allowances (RSA): 1,1%

Therefore, the total amount of taxation rate is of 30,1% or of 42,1% according to the term of the Beneficiary’s office in the Company.

 Note: in order to benefit from this specific tax provisions, the Beneficiary will have to attach to his/her revenue statement of the year
when the BCE have been exercised a certificate to be given by the Company. 
 VI-2. TAX
PROVISIONS APPLICABLE TO BENEFICIARIES DOMICILED ABROAD. 

 

	1	 CSG = “contribution sociale généralisée”: a French social security tax. 

	2	 CRDS = “contribution au remboursement de la dette sociale”: another French social security tax. 

  
 - 7/8 -

 Beneficiaries domiciled abroad are themselves solely responsible for: 

 

	 	•	 	 Determining the tax provisions applicable to gains resulting from (i) holding the shares issued as a result of the exercise of the BCE, and
(ii) the sale of such shares; 

  

	 	•	 	 Paying all taxes and contributions due as a result. 

 The company Sequans Communications shall have no obligation to provide advice and/or assistance in this regard. 

  
 - 8/8 -

 SEQUANS COMMUNICATIONS 

Société anonyme with a share capital of 534,373.54 Euros 
 Registered office: 19 Le Parvis de Paris La Défense – 92800 PUTEAUX 

Trade Register N°: 450 249 677 Nanterre 
 Regulation 
  

 
 Founders
Warrant Granting Plan. 2010-1-2 
 (January 11, 2011) 

 - SUMMARY - 
 I - DEFINITION OF THE FOUNDERS WARRANT SUBSCRIPTION PLAN (BCE) 
 II - LEGAL FRAMEWORK FOR
THE PLAN 
 III - DESCRIPTION OF THE PLAN 
  

	 	•	 	 Granting of the BCE 

  

	 	•	 	 Terms and conditions of the BCE 

  

	 	•	 	 Beneficiary termination of services with the Company 

  

	 	•	 	 Determination of the exercise price of the BCE 

  

	 	•	 	 Protection of the rights of the Beneficiaries during the exercise period of the BCE 

IV - TERMS AND CONDITIONS FOR EXERCISING BCE 
  

	 	•	 	 Suspension of the rights to exercise the BCE 

  

	 	•	 	 Procedures and conditions for exercising the BCE 

 V - FEATURES OF SHARES SUBSCRIBED 
  

	 	•	 	 Delivery and form of shares 

  

	 	•	 	 Possession rights 

 VI -
TAX PROVISIONS 

  
 2 

 I – DEFINITION OF FOUNDERS WARRANT SUBSCRIPTION PLAN (BCE) 

In order to reward its employees and managers, SEQUANS COMMUNICATIONS wishes to set up a system enabling them to share its growth. 

A Founders Warrant (BCE) subscription plan is a mechanism by which a company offers to its employees and/or its managers (subject to employees taxation
regime), the possibility to subscribe for a BCE for free which subsequent exercise allows to subscribe for new shares during a certain period, at a price set on the date the BCE are granted, and that remains fixed during the entire period.

 These BCE offer to its beneficiaries the possibility to realize a profit in case of an increase in value of the Company security between the
date the BCE are granted and the date the share is subscribed by exercise of the BCE. 
 The beneficiaries participate in their Company’s
performance trough the evolution in value of the shares before even becoming effectively shareholder of the company by exercising the BCE. 

Furthermore, the financial benefit obtained by exercising the BCE and by a subsequent sale of the shares is subject to a specific tax treatment.

 II – LEGAL FRAMEWORK FOR THE PLAN 
 This mechanism has been set up by the law of finance of 1998 n°– n°97-1269 dated December 30 1997, amended by the law of finance of 1999 – n°98-1266 dated December 30, 1998
-, the law n°99-587 dated July 12, 1999, the law n°2001-420 dated May 15, 2001 and the law n°2003-706 dated August 1st 2003, the law n°2008-776 dated August 4, 2008. 

This mechanism is also governed by article 163 bis G of the French Tax Code and by the Decree n°98-557 dated July 1st, 1998. 

The company SEQUANS COMMUNICATIONS meets all the requirements required by the dispositions mentioned above in order to set up a BCE plan, bearing in mind
that: 
  

	 	•	 	 It is incorporated with the Trade and Companies Registry since at least 15 years 

 

	 	•	 	 It is subject to French corporate taxation 

  

	 	•	 	 At least 25% of its share capital is held directly by individuals, being specified that in order to determine this threshold, it is not taken
into account participations held by: 

  

	 	(i)	regional development companies (RDC), venture capital companies (VCC), innovation finance companies (IFC) set forth in articles 208, l°ter, 208, 3°septies and
39 quinquies A, 2°, b) of the French Tax Code, 

  

	 	(ii)	venture capital mutual fund (VCMF) and innovation mutual investment fund (IMIF) set forth in articles 163 quinquies B, I and 199 terdecies-o A, VI, 1 of the French Tax
Code, 

  

	 	(iii)	local investment fund set forth in article L.241-41-1 of the French Monetary and Financial Code. 

 The shareholders in a combined general shareholders’ meeting held on June 30, 2010, voted
in favour of a resolution for the issuance of a total number of 724,000 BCE maximum and set the share purchase price that may be subscribed by exercising each BCE – that is one share of category A preference share – at a price set
for shares issued in connection with the most recent share capital increase prior to the issuance of said BCE. 
 In addition, the shareholders
granted to the Board of Directors the power to grant such BCE, in one or several times, including the power to determine the beneficiaries of the BCE and the number of BCE to be granted to each of them, with the suppression of shareholders’
preemptive subscription right – to increase the share capital for a maximum amount equal to the number of BCE granted, to record / acknowledge the successive increases in share capital resulting from the exercise of the BCE, and to carry out
all formalities required as a result thereof. 
 Pursuant to this grant of authority, and partially using the authorization it has been granted,
the Board of Directors, in a meeting held on July 21, 2010, has adopted this plan and adopted the terms and conditions applicable to this BCE plan hereinafter “the BCE 2010-1 Plan”, in compliance with the principles decided by
the aforementioned combined general shareholders’ meeting and the applicable statutory provisions. 
 The shareholders in a combined
general shareholders’ meeting held on January 11, 2011, amended the terms and conditions for the determination of the price of the security to be subscribed by exercising each BCE and decided that this price will be set at the
market value of the shares of the Company applicable at the date the BCE were granted, value to be set and approved by the Board of directors. 

As a consequence and within the framework of the authority it has been granted, the Board of Directors of January 11, 2011 adopted the terms and
conditions applicable to this BCE plan hereinafter “the BCE 2010-1-2 Plan”, which constitute a declension of the BCE 2010-1 plan integrating the new terms and conditions for the determination of the purchase price. 

III – DESCRIPTION OF THE PLAN 
 The beneficiaries (hereinafter the “Beneficiaries”) of the BCE 2010-1-2 Plan’s have been approved by the Company’s Board of Directors. 

III-1. Granting of the BCE 
 The
BCE are granted free of charge to each Beneficiary. 
 The number of BCE granted to each Beneficiary shall be indicated in the Individual
Notification Letter sent to him/her by the Chairman. 
 The exercise of a BCE entitles its holder to subscribe for one new class A preferred
share (or an ordinary share in case of the listing of the Company in a financial market) of SEQANS COMMUNICATIONS. 
 This number of shares
cannot be modified during the BCE period of validity, except in the event of an adjustment in the subscription price in accordance with the requirements provided by law (see section III-4. hereinafter). 

Within a period of seven (7) days following the receipt of the Individual Letter of Notification

  
 - 4/8 -

 informing him/her that he/she has been granted BCE, the Beneficiary undertakes to return to the Company

 (i) a copy of this BCE 2010-1-2 Plan, 

(ii) a copy of the Individual Letter of Notification 
 (iii) a copy of the “CONTRACTUAL UNDERTAKING”attached to the said letter, 
 after the Beneficiary has duly executed the said copies and acknowledged that the Individual Notification Letter and the Contractual Undertaking are part of this plan. 

Failure to comply with this formality within the applicable period shall render the granted BCE immediately and automatically void. 

III-2. Terms and conditions of the BCE 
 BCE are irrevocably granted for a period of 10 years as from the date they have been granted by the Board of Directors. 
 As a result of the granting of the BCE, the pre-emptive right of shareholders to subscribe for the new shares to be issued as the said BCE are exercised will be suppressed in favour of the Beneficiaries.

 This BCE cannot be transferred. 

The BCE must be exercised within the aforementioned maximum period of ten years, being specified that the Beneficiary must respect the following
calendar: 
 (i) first grant: 
  

	 	•	 	 The Beneficiary shall exercise 25% of the BCE granted to him/her after the expiration of the 12 months period following his/her entrance in the company
SEQUANS COMMUNICATIONS or its subsidiaries; 

  

	 	•	 	 The Beneficiary shall then exercise the outstanding amount of his/her BCE, at the rate of
l/36e per month, within the period from the 13th and the 48th month following the date he/she entered the company SEQUANS COMMUNICATIONS or its subsidiaries.

 (ii) subsequent grants: 
  

	 	•	 	 The Beneficiary shall exercise 25% of the BCE issued to him/her after the expiration of the 12 months period following the date of grant of the said
BCE; 

  

	 	•	 	 The Beneficiary shall then exercise the outstanding amount of his/her BCE, at the rate of
l/36e per month, within the period from the 13th and the 48th month following the date of grant of the said BCE. 

Any first exercise must cover at least 25% of the BCE granted to the Beneficiary, in accordance with the exercise calendars set out above. 

In the event a third party acquires 100% of the share capital of SEQUANS COMMUNICATIONS, and in no other case, the Beneficiary who would
subsequently be dismissed for genuine material cause shall have the right to exercise all of his/her BCE within a period of 30 days following the date of the said 

  
 - 5/8 -

 
dismissal, notwithstanding the calendar set out above. 
 In any event, any BCE that is
not exercised before the expiration of the aforementioned 10-year period shall be null and void. 
 III-3. Beneficiary termination of
services with the Company 
 In case of termination of the Beneficiary services with SEQUANS COMMUNICATIONS, whether as an employee or a
company officer, due to resignation, redundancy, dismissal, incapacity or death, regardless of the reason, the said Beneficiary looses all rights with regard to the BCE yet not exercisable at the end of termination of his/her duties regarding the
exercise calendar set forth in the above article III-2. 
 However, he/she retains the right to exercise the BCE that became exercisable and
that have not yet been exercised provided that the Beneficiary exercises his/her BCE within a period of 30 days following the actual termination of his/her duties. 
 In the event of incapacity, such period shall be extended to 90 days. 
 In the event of death, the
Beneficiary’s heirs or beneficiaries shall beneficiate of a period extended to 6 months. 
 After expiration of the periods aforementioned,
the Beneficiary, his/her heirs or beneficiaries lose irrevocably all rights with regard to unexercised BCE. 
 III-4. Determination of the
exercise price of the BCE 
 The subscription price of the shares to be issued by exercising the BCE is set at the market value of the
shares of the Company applicable at the date the BCE were granted, value to be set and approved by the Board of directors. 
 This subscription
price is mentioned in the Individual Notification Letter. This price may not be changed during the BCE’s period of validity, except in the event of adjustments in accordance with statutory and regulatory provisions. 

III-5. Protection of the rights of the Beneficiaries during the exercise period 
 During the entire period of validity of the BCE, the Company will have the option to modify its form or object, without having to obtain the prior authorisation of the Beneficiaries. In addition, the
Company shall be entitled to change the rules for profits distribution, write down its capital, or create preferred shares entailing such modification or writing down, subject to the prior authorisation to be delivered in accordance with to the
terms of Article L. 228-103 of the French Commercial code and provided that the Company accordingly takes all necessary measures in order to maintain Beneficiaries’ rights, in compliance with applicable legal and/or regulatory provisions.

 IV – TERMS AND CONDITIONS FOR EXERCISING BCE 
 IV-1. Suspension of the rights to exercise the BCE 

  
 - 6/8 -

 If necessary, the Board of Directors may suspend the right to exercise the BCE. In particular, this
suspension may be ordered whenever a transaction concerning SEQUANS COMMUNICATIONS’ share capital requires knowing in advance the exact number of shares that make up the share capital or in the event of the carrying out of one of the financial
transactions requiring an adjustment. 
 In such case, SEQUANS COMMUNICATIONS shall inform the Beneficiaries of the BCE, indicating the date of
the suspension and the date on which the right to exercise the BCE will be re-established. Such suspension may not exceed 3 months. 
 If the
right to exercise a BCE expires during a period of suspension, the period of exercise of the BCE shall be extended by 3 months. 
 IV-2.
Procedure and conditions for exercising BCE 
 All requests for exercise of the BCE, documented by the signature of a subscription
certificate specific to the BCE 2010-1-2 plan, shall be sent to SEQUANS COMMUNICATIONS, and must be accompanied by a check made to the Company’s order for an amount corresponding to the number of shares to be subscribed. Shares subscribed must
be fully paid up in cash or by compensation with a liquidated and due debt at the time of subscription. 
 Failure to do so renders the
subscription null and void. 
 V – FEATURES OF SHARES SUBSCRIBED 

V-1. Delivery and form of shares 

Shares acquired by exercising the BCE are registered in the books of SEQUANS COMMUNICATIONS as registered shares, which meets the statutory requirements
for benefiting from the applicable favourable tax treatment. 
 V-2. Possession rights 

The new shares (class A preferred shares or ordinary shares if applicable) shall be subject to all provisions of the by-laws and shall enjoy all rights
pertaining to the shares of such class as of the date of completion of the share capital increase. 
 These shares shall be immediately
transferable, in compliance with the “CONTRACTUAL UNDERTAKING”, complied by the Beneficiary. 
 VI – TAX PROVISIONS 
 VI-1. THE TAX
PROVISIONS CURRENTLY APPLICABLE TO BENEFICIARIES WHO ARE RESIDING IN FRANCE ARE
EXPLAINED BELOW. 

  
 - 7/8 -

 In the event of a transfer of the shares subscribed following exercise of the BCE, the gain realised by the
Beneficiary is equal to the difference between the sale price of the share and their acquisition price. 
 This gain is imposed in accordance
with the tax treatment of capital gain realised on the sale of securities (articles 92 B, 92 J, 160, 200 A2 of the French Tax Code) applicable to the first euro obtained as a capital gain. 
 The proportional rate applicable is 19%, except if at the date of the transfer of his/her shares the Beneficiary has performed his/her duties for less than three years, then the gain is subject to
a 30% tax rate. 
 In addition to these proportional rates, the following social security contributions apply for a total amount of 12,3% and
are divided as follows: 
  

			
	 •   CSG 1:
	  	8,2%
	 •   CRDS 2:
	  	0,5%
	 •   social charges:
	  	2,3%
	 •   contribution to the national solidarity fund for autonomy 0,3%

	 •   contribution for social allowances (RSA): 1,1%

Therefore, the total amount of taxation rate is of 31,3% or of 42,3% according to the term of the Beneficiary’s office in the Company.

 VI-2. TAX PROVISIONS APPLICABLE TO BENEFICIARIES
DOMICILED ABROAD. 
 Beneficiaries domiciled abroad are themselves solely responsible for:

  

	 	•	 	 Determining the tax provisions applicable to gains resulting from (i) holding the shares issued as a result of the exercise of the BCE, and
(ii) the sale of such shares; 

  

	 	•	 	 Paying all taxes and contributions due as a result. 

 The company Sequans Communications shall have no obligation to provide advice and/or assistance in this regard. 

 

	1	 CSG = “contribution sociale généralisée”: a French social security tax. 

	2	 CRDS = “contribution au remboursement de la dette sociale”: another French social security tax. 

  
 - 8/8 -

 SEQUANS COMMUNICATIONS 

Société anonyme with a share capital of 554.400,26 Euros 

Registered office : 19 Le Parvis de Paris La Défense – 92800 PUTEAUX 

Trade Register N° : 450 249 677 Nanterre 
 Regulation 
  

 
 Founders
Warrant Granting Plan. 2011-1 

 - SUMMARY - 
 I - DEFINITION OF THE FOUNDERS WARRANT SUBSCRIPTION PLAN (BCE) 
 II - LEGAL FRAMEWORK FOR
THE PLAN 
 III - DESCRIPTION OF THE PLAN 
  

	 	•	 	 Granting of the BCE 

  

	 	•	 	 Terms and conditions of the BCE 

  

	 	•	 	 Beneficiary termination of services with the Company 

  

	 	•	 	 Determination of the exercise price of the BCE 

  

	 	•	 	 Protection of the rights of the Beneficiaries during the exercise period of the BCE 

IV - TERMS AND CONDITIONS FOR EXERCISING BCE 
  

	 	•	 	 Suspension of the rights to exercise the BCE 

  

	 	•	 	 Procedures and conditions for exercising the BCE 

 V - FEATURES OF SHARES SUBSCRIBED 
  

	 	•	 	 Delivery and form of shares 

  

	 	•	 	 Possession rights 

 VI -
TAX PROVISIONS 

  
 2 

 I – DEFINITION OF FOUNDERS WARRANT SUBSCRIPTION PLAN (BCE) 

In order to reward its employees and managers, SEQUANS COMMUNICATIONS wishes to set up a system enabling them to share its growth. 

A Founders Warrant (BCE) subscription plan is a mechanism by which a company offers to its employees and/or its managers (subject to employees taxation
regime), the possibility to subscribe for a BCE for free which subsequent exercise allows to subscribe for new shares during a certain period, at a price set on the date the BCE are granted, and that remains fixed during the entire period.

 These BCE offer to its beneficiaries the possibility to realize a profit in case of an increase in value of the Company security between the
date the BCE are granted and the date the share is subscribed by exercise of the BCE. 
 The beneficiaries participate in their Company’s
performance trough the evolution in value of the shares before even becoming effectively shareholder of the company by exercising the BCE . 

Furthermore, the financial benefit obtained by exercising the BCE and by a subsequent sale of the shares is subject to a specific tax treatment.

 II - LEGAL FRAMEWORK FOR THE PLAN 
 This mechanism has been set up by the law of finance of 1998 n°– n°97-1269 dated December 30 1997, amended by the law of finance of 1999 – n°98-1266 dated December 30, 1998
-, the law n°99-587 dated July 12, 1999, the law n°2001-420 dated May 15, 2001 and the law n°2003-706 dated August 1st 2003, the law n°2008-776 dated August 4, 2008. 

This mechanism is also governed by article 163 bis G of the French Tax Code and by the Decree n°98-557 dated July 1st, 1998. 

The company SEQUANS COMMUNICATIONS meets all the requirements required by the dispositions mentioned above in order to set up a BCE plan, bearing in mind
that : 
  

	 	•	 	 It is incorporated with the Trade and Companies Registry since at least 15 years 

 

	 	•	 	 It is subject to French corporate taxation 

  

	 	•	 	 At least 25% of its share capital is held directly by individuals, being specified that in order to determine this threshold, it is not taken
into account participations held by : 

  

	 	(i)	regional development companies (RDC), venture capital companies (VCC), innovation finance companies (IFC) set forth in articles 208, 1°ter, 208, 3°septies and
39 quinquies A, 2°, b) of the French Tax Code, 

  

	 	(ii)	venture capital mutual fund (VCMF) and innovation mutual investment fund (IMIF) set forth in articles 163 quinquies B, I and 199 terdecies-o A, VI, 1 of the French Tax
Code, 

  

	 	(iii)	local investment fund set forth in article L.241-41-1 of the French Monetary and Financial Code. 

 The shareholders in an ordinary and extraordinary general shareholders’ meeting held on
March 8, 2011, voted in favour of a resolution for the issuance of BCE that cannot give the right to an amount that exceed 3,500,000 new shares of a nominal value of 0.01 euro (or 1,750,000 new shares of a nominal value of 0.02 euro,
starting at the effective date of the reverse split of the shares of the Company). 
 The aforesaid general meeting determined the modalities of
determination of the price of the security to be subscribed by exercising each BCE and decided that this price will be set by the Board of directors at the market value of the shares of the Company applicable at the date the BCE were granted,
following the objective methods applicable for shares appraisal (including, if applicable, the reference to the quoted price of the shares of the Company) and, if it judges necessary, with the assistance of independent appraisal agencies.

 The aforesaid general meeting also granted to the Board of Directors the power to grant such BCE, in one or several times, including the
power to determine the beneficiaries of the BCE and the number of BCE to be granted to each of them, with the suppression of shareholders’ preemptive subscription right – to increase the share capital for a maximum amount equal to the
number of BCE granted, to record / acknowledge the successive increases in share capital resulting from the exercise of the BCE, and to carry out all formalities required as a result thereof. 
 Pursuant to this grant of authority, and partially using the authorization it has been granted, the Board of Directors, in a meeting held on March 8, 2011, has adopted this plan and adopted
the terms and conditions applicable to this BCE plan hereinafter “the BCE 2011-1 Plan”, in compliance with the principles decided by the aforementioned ordinary and extraordinary general shareholders’ meeting and the applicable
statutory provisions. 
 III - DESCRIPTION OF THE PLAN 
 The beneficiaries (hereinafter the “Beneficiaries”) of the BCE 2011-1 Plan’s have been approved by the Company’s Board of Directors. 

III-1. Granting of the BCE 
 The
BCE are granted free of charge to each Beneficiary. 
 The number of BCE granted to each Beneficiary and the subscription price upon exercise of
these BCE (as defined under Section III-4 hereinafter) shall be indicated in the Individual Notification Letter sent to him/her by the Chairman which shall constitute a schedule to this regulation. 

The exercise of each BCE entitles its holder to subscribe for one new class A preferred share of the Company of a nominal value of 0.01 € (or two
(2) BCE entitles its holder to subscribe to one (1) ordinary share of a nominal value of 0.02 € starting at the effective date of the conversion of the class A preferred shares in ordinary shares and of the reverse split of the shares
of the Company) (hereinafter referred as a “New Share”). 
 This number of shares cannot be modified during the BCE period of
validity, except in the event of an adjustment in the subscription price in accordance with the requirements provided by law (see section III-4. hereinafter). 
 Within a period of seven (7) days following the receipt of the Individual Letter of Notification 

  
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informing him/her that he/she has been granted BCE, the Beneficiary undertakes to return to the Company 
 (i) a copy of this regulation, 
 (ii) a copy of the Individual Letter of Notification 

(iii) a copy of the “CONTRACTUAL UNDERTAKING” attached to the said letter, 

after the Beneficiary has duly executed the said copies and acknowledged that the Individual Notification Letter and the Contractual Undertaking are part
of this plan. 
 Failure to comply with this formality within the applicable period shall render the granted BCE immediately and automatically
void. 
 III-2. Terms and conditions of the BCE 
 BCE are irrevocably granted for a period of 10 years as from the date they have been granted by the Board of Directors. 
 As a result of the granting of the BCE, the pre-emptive right of shareholders to subscribe for the new shares to be issued as the said BCE are exercised will be suppressed in favour of the Beneficiaries.

 This BCE cannot be transferred. 

The BCE must be exercised within the aforementioned maximum period of ten years, any BCE not exercised before expiration of this period will be
automatically void and devoid of validity. 
 The Beneficiary must respect the following calendar  : 

 

	(i)	first grant : 

  

	 	•	 	 The Beneficiary shall exercise 25% of the BCE granted to him/her after the expiration of the 12 months period following his/her entrance in the company
SEQUANS COMMUNICATIONS or its subsidiaries; 

  

	 	•	 	 The Beneficiary shall then exercise the outstanding amount of his/her BCE , at the rate of
1/36e per month, within the period from the 13th and the 48th month following the date he/she entered the company SEQUANS COMMUNICATIONS or its subsidiaries.

 (ii) subsequent grants : 
  

	 	•	 	 The Beneficiary shall exercise 25% of the BCE issued to him/her after the expiration of the 12 months period following the date of grant of the said
BCE; 

  

	 	•	 	 The Beneficiary shall then exercise the outstanding amount of his/her BCE , at the rate of
1/36e per month, within the period from the 13th and the 48th month following the date of grant of the said BCE. 

Any first exercise must cover at least 25% of the BCE granted to the Beneficiary, in accordance with the exercise calendars set out above. 

In the event a third party acquires 100% of the share capital of SEQUANS COMMUNICATIONS, and in 

  
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no other case, the Beneficiary who would subsequently be dismissed for genuine material cause shall have the right to exercise all of his/her BCE within a period of 30 days following the
date of the said dismissal, notwithstanding the calendar set out above. 
 III-3. Beneficiary termination of services with the Company

 In case of termination of the Beneficiary services with SEQUANS COMMUNICATIONS, whether as an employee or a company officer, due to
resignation, redundancy, dismissal, incapacity or death, regardless of the reason, the said Beneficiary looses all rights with regard to the BCE yet not exercisable at the end of termination of his/her duties regarding the exercise calendar set
forth in the above article III-2. 
 However, he/she retains the right to exercise the BCE that became exercisable and that have not yet been
exercised provided that the Beneficiary exercises his/her BCE within a period of 30 days following the actual termination of his/her duties. 

In the event of incapacity, such period shall be extended to 90 days. 
 In the event of death, the Beneficiary’s heirs or beneficiaries shall beneficiate of a period extended to 6 months. 
 After expiration of the periods aforementioned, the Beneficiary, his/her heirs or beneficiaries lose irrevocably all rights with regard to unexercised BCE. 

III-4. Determination of the exercise price of the BCE 
 The subscription price of the New Shares to be issued by exercising the BCE is set at the market value of the shares of the Company applicable at the date the BCE were granted, value to be set and
approved by the Board of directors – within the limits permitted by the applicable legal and regulatory provisions - following the objective methods applicable for shares appraisal (including, if applicable, the reference to the quoted price of
the shares of the Company) and, if it judges necessary, with the assistance of independent appraisal agencies. 
 This subscription price is
mentioned in the Individual Notification Letter. This price may not be changed during the BCE’s period of validity, except in the event of adjustments in accordance with legal provisions. 

III-5. Protection of the rights of the Beneficiaries during the exercise period 
 During the period of exercise of the BCE and as far as the Beneficiary has not exercised all the BCE granted to him/her by the Company, the Company commit to maintain the Beneficiaries’ rights, in
compliance with the provisions of article L. 228-99 of the Commercial Code. 
 IV – TERMS AND CONDITIONS FOR EXERCISING
BCE  
 IV-1. Suspension of the rights to exercise the BCE 

  
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 If necessary, the Board of Directors may suspend the right to exercise the BCE. 

In particular, this suspension may be ordered whenever a transaction concerning SEQUANS COMMUNICATIONS’ share capital requires knowing in advance
the exact number of shares that make up the share capital or in the event of the carrying out of one of the financial transactions requiring an adjustment. 
 In such case, SEQUANS COMMUNICATIONS shall inform the Beneficiaries of the BCE, indicating the date of the suspension and the date on which the right to exercise the BCE will be re-established. Such
suspension may not exceed 3 months. 
 If the right to exercise a BCE expires during a period of suspension, the period of exercise of the BCE
shall be extended by 3 months. 
 IV-2. Procedure and conditions for exercising BCE 

All requests for exercise of the BCE, documented by the signature of a subscription certificate specific to the BCE 2011-1 plan, shall be sent to SEQUANS
COMMUNICATIONS, and must be accompanied by a check made to the Company’s order for an amount corresponding to the number of shares to be subscribed, shares subscribed must be fully paid up in cash at the time of subscription, except payment by
compensation with a liquidated and due debt on the Company. 
 Failure to do so renders the subscription null and void. 

V - FEATURES OF SHARES SUBSCRIBED 
 V-1. Delivery and form of shares 
 The New Shares acquired by exercising the BCE are
registered in the books of SEQUANS COMMUNICATIONS as registered shares, which meets the statutory requirements for benefiting from the applicable favourable tax treatment. 
 V-2. Possession rights 
 The New Shares shall be subject to all provisions of the
by-laws and shall enjoy all rights pertaining to the shares of such class as of the date of completion of the share capital increase. 

These New Shares shall be immediately transferable, in compliance with the “CONTRACTUAL
UNDERTAKING”, complied by the Beneficiary. 
 VI - TAX PROVISIONS 

VI-1. THE TAX PROVISIONS CURRENTLY APPLICABLE (MARCH 2011)
TO BENEFICIARIES WHO ARE RESIDING IN FRANCE ARE EXPLAINED BELOW. 

In the event of a transfer of the shares subscribed following exercise of the BCE , the gain realised by

  
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the Beneficiary is equal to the difference between the sale price of the share and their acquisition price. 
 This gain is imposed in accordance with the tax treatment of capital gain realised on the sale of securities (articles 92 B, 92 J, 160, 200 A2 of the French Tax Code) applicable to the first euro obtained
as a capital gain. 
 The proportional rate applicable is 19%, except if at the date of the transfer of his/her shares the Beneficiary has
performed his/her duties for less than three years, then the gain is subject to a 30% tax rate. 
 In addition to these proportional
rates, the following social security contributions apply for a total amount of 12,3% and are divided as follows : 
  

	 	•	 	 CSG 1: 8,2 % 

  

	 	•	 	 CRDS 2: 0,5 % 

  

	 	•	 	 social charges : 2,3 % 

  

	 	•	 	 contribution to the national solidarity fund for autonomy 0,3 % 

 

	 	•	 	 contribution for social allowances (RSA) : 1,1 % 

 Therefore, the total amount of taxation rate is of 31,3% or of 42,3% according to the term of the Beneficiary’s office in the Company. 

The company SEQUANS COMMUNICATIONS indicates that the information stipulated in this article VI-1 must be regularly updated according to the evolution of
the applicable legal and regulatory provisions. It is up to the Beneficiaries to proceed to this update under their own responsibility, the Company SEQUANS COMMUNICATIONS shall have no obligation to provide advice and/or assistance in this regard.

 VI-2. TAX PROVISIONS APPLICABLE TO BENEFICIARIES
DOMICILED ABROAD. 
 Beneficiaries domiciled abroad are themselves solely responsible for:

  

	 	•	 	 Determining the tax provisions applicable to gains resulting from (i) holding the shares issued as a result of the exercise of the BCE, and
(ii) the sale of such shares; 

  

	 	•	 	 Paying all taxes and contributions due as a result. 

 The company Sequans Communications shall have no obligation to provide advice and/or assistance in this regard. 
  

 

	1	 CSG = “contribution sociale généralisée”: a French social security tax. 

	2	 CRDS = “contribution au remboursement de la dette sociale”: another French social security tax. 

  
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 SEQUANS COMMUNICATIONS 

Société anonyme with a share capital of 554.400,26 Euros 

Registered office : 19 Le Parvis de Paris La Défense – 92800 PUTEAUX 

Trade Register N° : 450 249 677 Nanterre 
 Regulation 
  

 
 Founders
Warrant Granting Plan. 2011-2 

 - SUMMARY - 
 I - DEFINITION OF THE FOUNDERS WARRANT SUBSCRIPTION PLAN (BCE) 
 II - LEGAL FRAMEWORK FOR
THE PLAN 
 III - DESCRIPTION OF THE PLAN 
  

	 	•	 	 Granting of the BCE 

  

	 	•	 	 Terms and conditions of the BCE 

  

	 	•	 	 Beneficiary termination of services with the Company 

  

	 	•	 	 Determination of the exercise price of the BCE 

  

	 	•	 	 Protection of the rights of the Beneficiaries during the exercise period of the BCE 

IV - TERMS AND CONDITIONS FOR EXERCISING BCE 
  

	 	•	 	 Suspension of the rights to exercise the BCE 

  

	 	•	 	 Procedures and conditions for exercising the BCE 

 V - FEATURES OF SHARES SUBSCRIBED 
  

	 	•	 	 Delivery and form of shares 

  

	 	•	 	 Possession rights 

 VI -
TAX PROVISIONS 

  
 2 

 I – DEFINITION OF FOUNDERS WARRANT SUBSCRIPTION PLAN (BCE) 

In order to reward its employees and managers, SEQUANS COMMUNICATIONS wishes to set up a system enabling them to share its growth. 

A Founders Warrant (BCE) subscription plan is a mechanism by which a company offers to its employees and/or its managers (subject to employees taxation
regime), the possibility to subscribe for a BCE for free which subsequent exercise allows to subscribe for new shares during a certain period, at a price set on the date the BCE are granted, and that remains fixed during the entire period.

 These BCE offer to its beneficiaries the possibility to realize a profit in case of an increase in value of the Company security between the
date the BCE are granted and the date the share is subscribed by exercise of the BCE. 
 The beneficiaries participate in their Company’s
performance trough the evolution in value of the shares before even becoming effectively shareholder of the company by exercising the BCE . 

This plan is particularly designated to motivate the beneficiaries in order to ensure the public offering of the company at the best conditions.

 Furthermore, the financial benefit obtained by exercising the BCE and by a subsequent sale of the shares is subject to a specific tax
treatment. 
 II - LEGAL FRAMEWORK FOR THE PLAN 
 This mechanism has been set up by the law of finance of 1998 n°– n°97-1269 dated December 30 1997, amended by the law of finance of 1999 – n°98-1266 dated December 30, 1998
-, the law n°99-587 dated July 12, 1999, the law n°2001-420 dated May 15, 2001 and the law n°2003-706 dated August 1st 2003, the law n°2008-776 dated August 4, 2008. 

This mechanism is also governed by article 163 bis G of the French Tax Code and by the Decree n°98-557 dated July 1st, 1998. 

The company SEQUANS COMMUNICATIONS meets all the requirements required by the dispositions mentioned above in order to set up a BCE plan, bearing in mind
that : 
  

	 	•	 	 It is incorporated with the Trade and Companies Registry since at least 15 years 

 

	 	•	 	 It is subject to French corporate taxation 

  

	 	•	 	 At least 25% of its share capital is held directly by individuals, being specified that in order to determine this threshold, it is not taken
into account participations held by : 

  

	 	(i)	regional development companies (RDC), venture capital companies (VCC), innovation finance companies (IFC) set forth in articles 208, 1°ter, 208, 3°septies and
39 quinquies A, 2°, b) of the French Tax Code, 

  

	 	(ii)	venture capital mutual fund (VCMF) and innovation mutual investment fund (IMIF) set forth in articles 163 quinquies B, I and 199 terdecies-o A, VI, 1 of the French Tax
Code, 

  

	 	(iii)	local investment fund set forth in article L.241-41-1 of the French Monetary and Financial Code. 

 The shareholders in an ordinary and extraordinary general shareholders’ meeting held on
March 8, 2011, voted in favour of a resolution for the issuance of BCE that cannot give the right to an amount that exceed 3,500,000 new shares of a nominal value of 0.01 euro (or 1,750,000 new shares of a nominal value of 0.02 euro,
starting at the effective date of the reverse split of the shares of the Company). 
 The aforesaid general meeting determined the modalities of
determination of the price of the security to be subscribed by exercising each BCE and decided that this price will be set by the Board of directors at the market value of the shares of the Company applicable at the date the BCE were granted,
following the objective methods applicable for shares appraisal (including, if applicable, the reference to the quoted price of the shares of the Company) and, if it judges necessary, with the assistance of independent appraisal agencies.

 The aforesaid general meeting also granted to the Board of Directors the power to grant such BCE, in one or several times, including the
power to determine the beneficiaries of the BCE and the number of BCE to be granted to each of them, with the suppression of shareholders’ preemptive subscription right – to increase the share capital for a maximum amount equal to the
number of BCE granted, to record / acknowledge the successive increases in share capital resulting from the exercise of the BCE, and to carry out all formalities required as a result thereof. 
 Pursuant to this grant of authority, and partially using the authorization it has been granted, the Board of Directors, in a meeting held on March 8, 2011, has adopted this plan and adopted
the terms and conditions applicable to this BCE plan hereinafter “the BCE 2011-2 Plan”, in compliance with the principles decided by the aforementioned ordinary and extraordinary general shareholders’ meeting and the applicable
statutory provisions. 
 III - DESCRIPTION OF THE PLAN 
 The beneficiaries (hereinafter the “Beneficiaries”) of the BCE 2011-2 Plan’s have been approved by the Company’s Board of Directors. 

III-1. Granting of the BCE 
 The
BCE are granted free of charge to each Beneficiary. 
 The number of BCE granted to each Beneficiary and the subscription price upon exercise of
these BCE (as defined under Section III-4 hereinafter) shall be indicated in the Individual Notification Letter sent to him/her by the Chairman which shall constitute a schedule to this regulation. 

The exercise of each BCE entitles its holder to subscribe for one new class A preferred share of the Company of a nominal value of 0.01 € (or two
(2) BCE entitles its holder to subscribe to one (1) ordinary share of a nominal value of 0.02 € starting at the effective date of the conversion of the class A preferred shares in ordinary shares and of the reverse split of the shares
of the Company) (hereinafter referred as a “New Share”). 
 This number of shares cannot be modified during the BCE period of
validity, except in the event of an adjustment in the subscription price in accordance with the requirements provided by law (see section III-4. hereinafter). 
 Within a period of seven (7) days following the receipt of the Individual Letter of Notification 

  
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informing him/her that he/she has been granted BCE, the Beneficiary undertakes to return to the Company 
 (i) a copy of this regulation, 
 (ii) a copy of the Individual Letter of Notification 

(iii) a copy of the “CONTRACTUAL UNDERTAKING” attached to the said letter, 

after the Beneficiary has duly executed the said copies and acknowledged that the Individual Notification Letter and the Contractual Undertaking are part
of this plan. 
 Failure to comply with this formality within the applicable period shall render the granted BCE immediately and automatically
void. 
 III-2. Terms and conditions of the BCE 
 BCE are irrevocably granted for a period of 10 years as from the date they have been granted by the Board of Directors. 
 As a result of the granting of the BCE, the pre-emptive right of shareholders to subscribe for the new shares to be issued as the said BCE are exercised will be suppressed in favour of the Beneficiaries.

 This BCE cannot be transferred. 

The BCE must be exercised within the aforementioned maximum period of ten years, any BCE not exercised before expiration of this period will be
automatically void and devoid of validity. 
 The Beneficiary must respect the following calendar  : 

 

	 	•	 	 The Beneficiary shall exercise 25% of the BCE granted to him/her after the expiration of the 12 months period following the effective date of the
initial public offering of the Company that should take place at the latest at the date of the ordinary general meeting of the Company to be held to approve the annual accounts for the fiscal year to be ended in December 31, 2011 (hereinafter
referred as the “IPO”); 

  

	 	•	 	 The Beneficiary shall then exercise the outstanding amount of his/her BCE , at the rate of
1/36e per month, within the period from the 13th and the 48th month following the IPO. 

 It is expressly stipulated that in the absence of the IPO, the BCE previously granted to the Beneficiaries shall be automatically void the day following the ordinary general meeting of the Company to be
held to approve the annual accounts for the fiscal year to be ended in December 31, 2011. 
 III-3. Beneficiary termination of
services with the Company 
 In case of termination of the Beneficiary services with SEQUANS COMMUNICATIONS, whether as an employee or a
company officer, due to resignation, redundancy, dismissal, incapacity or death, regardless of the reason, the said Beneficiary looses all rights with regard to the BCE yet not exercisable at the end of termination of his/her duties regarding the
exercise calendar set forth in the above article III-2. 

  
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 However, he/she retains the right to exercise the BCE that became exercisable and that have not yet been
exercised provided that the Beneficiary exercises his/her BCE within a period of 30 days following the actual termination of his/her duties. 

In the event of incapacity, such period shall be extended to 90 days. 
 In the event of death, the Beneficiary’s heirs or beneficiaries shall beneficiate of a period extended to 6 months. 
 After expiration of the periods aforementioned, the Beneficiary, his/her heirs or beneficiaries lose irrevocably all rights with regard to unexercised BCE. 

III-4. Determination of the exercise price of the BCE 
 The subscription price of the New Shares to be issued by exercising the BCE is set at the market value of the shares of the Company applicable at the date the BCE were granted, value to be set and
approved by the Board of directors – within the limits permitted by the applicable legal and regulatory provisions - following the objective methods applicable for shares appraisal (including, if applicable, the reference to the quoted price of
the shares of the Company) and, if it judges necessary, with the assistance of independent appraisal agencies. 
 This subscription price is
mentioned in the Individual Notification Letter. This price may not be changed during the BCE’s period of validity, except in the event of adjustments in accordance with legal provisions. 

III-5. Protection of the rights of the Beneficiaries during the exercise period 
 During the period of exercise of the BCE and as far as the Beneficiary has not exercised all the BCE granted to him/her by the Company, the Company commit to maintain the Beneficiaries’ rights, in
compliance with the provisions of article L. 228-99 of the Commercial Code. 
 IV – TERMS AND CONDITIONS FOR EXERCISING
BCE  
 IV-1. Suspension of the rights to exercise the BCE 
 If necessary, the Board of Directors may suspend the right to exercise the BCE. In particular, this suspension may be ordered whenever a transaction concerning SEQUANS COMMUNICATIONS’ share capital
requires knowing in advance the exact number of shares that make up the share capital or in the event of the carrying out of one of the financial transactions requiring an adjustment. 
 In such case, SEQUANS COMMUNICATIONS shall inform the Beneficiaries of the BCE, indicating the date of the suspension and the date on which the right to exercise the BCE will be re-established. Such
suspension may not exceed 3 months. 
 If the right to exercise a BCE expires during a period of suspension, the period of exercise of the BCE
shall be extended by 3 months. 

  
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 IV-2. Procedure and conditions for exercising BCE 

All requests for exercise of the BCE, documented by the signature of a subscription certificate specific to the BCE 2011-2 plan, shall be sent to SEQUANS
COMMUNICATIONS, and must be accompanied by a check made to the Company’s order for an amount corresponding to the number of shares to be subscribed, shares subscribed must be fully paid up in cash at the time of subscription, except payment by
compensation with a liquidated and due debt on the Company. 
 Failure to do so renders the subscription null and void. 

V - FEATURES OF SHARES SUBSCRIBED 
 V-1. Delivery and form of shares 
 The New Shares acquired by exercising the BCE are
registered in the books of SEQUANS COMMUNICATIONS as registered shares, which meets the statutory requirements for benefiting from the applicable favourable tax treatment. 
 V-2. Possession rights 
 The New Shares shall be subject to all provisions of the
by-laws and shall enjoy all rights pertaining to the shares of such class as of the date of completion of the share capital increase. 

These New Shares shall be immediately transferable, in compliance with the “CONTRACTUAL
UNDERTAKING”, complied by the Beneficiary. 
 VI - TAX PROVISIONS 

VI-1. THE TAX PROVISIONS CURRENTLY APPLICABLE (MARCH 2011)
TO BENEFICIARIES WHO ARE RESIDING IN FRANCE ARE EXPLAINED BELOW. 

In the event of a transfer of the shares subscribed following exercise of the BCE , the gain realised by the Beneficiary is equal to the difference
between the sale price of the share and their acquisition price. 
 This gain is imposed in accordance with the tax treatment of capital gain
realised on the sale of securities (articles 92 B, 92 J, 160, 200 A2 of the French Tax Code) applicable to the first euro obtained as a capital gain. 
 The proportional rate applicable is 19%, except if at the date of the transfer of his/her shares the Beneficiary has performed his/her duties for less than three years, then the gain is subject to
a 30% tax rate. 
 In addition to these proportional rates, the following social security contributions apply for a total amount of 12,3% and
are divided as follows : 

  
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	 	•	 	 CSG 1: 8,2 % 

  

	 	•	 	 CRDS 2: 0,5 % 

  

	 	•	 	 social charges : 2,3 % 

  

	 	•	 	 contribution to the national solidarity fund for autonomy 0,3 % 

 

	 	•	 	 contribution for social allowances (RSA) : 1,1 % 

 Therefore, the total amount of taxation rate is of 31,3% or of 42,3% according to the term of the Beneficiary’s office in the Company. 

The company SEQUANS COMMUNICATIONS indicates that the information stipulated in this article VI-1 must be regularly updated according to the evolution of
the applicable legal and regulatory provisions. It is up to the Beneficiaries to proceed to this update under their own responsibility, the Company SEQUANS COMMUNICATIONS shall have no obligation to provide advice and/or assistance in this regard.

 VI-2. TAX PROVISIONS APPLICABLE TO BENEFICIARIES
DOMICILED ABROAD. 
 Beneficiaries domiciled abroad are themselves solely responsible for:

  

	 	•	 	 Determining the tax provisions applicable to gains resulting from (i) holding the shares issued as a result of the exercise of the BCE, and
(ii) the sale of such shares; 

  

	 	•	 	 Paying all taxes and contributions due as a result. 

 The company Sequans Communications shall have no obligation to provide advice and/or assistance in this regard. 

 

	1	 CSG = “contribution sociale généralisée”: a French social security tax. 

	2	 CRDS = “contribution au remboursement de la dette sociale”: another French social security tax. 

  
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 SEQUANS COMMUNICATIONS 

Société anonyme au capital de          Euros 

Siège social : 19, Le Parvis de La Défense – 92800 PUTEAUX

RCS Nanterre B 450 249 677 
 [Beneficiary] 

[date]               

RE : BCE Subscription Plan –              

Dear Sir, 
 We
have the pleasure to inform you that at a meeting held on             , the Board of Directors decided to grant you
             BCEs, unassignable, each BCE giving you the right to subscribe – within a 10 year-period from the date of grant -, to one new series A preferred share at an
exercise price of EUR             , (or two BCEs shall give you the right to subscribe one ordinary share at an exercise price of EUR
            , from the effective date of the conversion of series A preferred shares in ordinary shares and reverse split of the Company shares). 

The terms and conditions of (i) grant, (ii) striking and (iii) assignment of these BCEs, as well as the applicable tax
regime, are set forth within the BCE SUBSCRIPTION PLAN              – hereafter referred to as “the PLAN” – (enclosed
in 2 copies) approved by decision of the Board of Directors held on             . 
 Please note that upon grant of these BCEs you are required to sign and accept certain conditions as set forth in an additional document named « CONTRACTUAL
UNDERTAKING » and enclosed in 2 copies. 
 We advise you to read carefully these
documents and to return to the Company, within 7 days, an executed copy – i.e. your initials on each page and your signature on the last page along with the handwritten mention “read and approved” – of this letter, the
contractual undertaking and the PLAN. 
 Should you fail to conform to this major
formality, the BCEs hereby allotted could consequently be null and void. 
 Subject to the terms and conditions of this
letter, the PLAN, and the CONTRACTUAL UNDERTAKING, you are entitled to subscribe
                     new series A preferred shares (or
                     ordinary shares as mentioned above), at a total price of EUR
            ; you are expressly informed that no BCE [or Founders Warrant] may be exercised prior
                    . 
 In order to exercise your rights and consequently become a shareholder of the Company, you shall return to the Company a subscription form duly filled out and signed with a bank cheque or wire
transfer of the amount of your subscription in Euros, on the basis of EUR             per series A preferred share (or EUR
             per ordinary share) together with such other documents or form of indemnity as the Board may in its absolute discretion determine at the appropriate time, to meet any
tax liability that arises on the grant or exercise of the option. 
 We invite you to keep one copy of this letter, the PLAN, and
the CONTRACTUAL UNDERTAKING. 
 Sincerely yours 

 Georges Karam 
 Chairman and CEO 
  

					
	Enc.	  	-	  	BCE SUBSCRIPTION PLAN              (2 copies)
		  	-	  	Subscription form (2 copies)
		  	-	  	Contractual undertaking (2 copies)

  

 
 Your signature below to be preceded by the
handwritten mention “read and approved”: 
 Beneficiary:
                                         
            
 Date:
                                         
                        

 SEQUANS COMMUNICATIONS 

Société anonyme au capital de 554,400.26 Euros 
 Siège social : 19, Le Parvis de La Défense – 92800 PUTEAUX
 RCS
Nanterre B 450 249 677 
 [Beneficiary] 

 [date] 

RE : BCE Subscription Plan – 2011-2 
 Dear Sir, 
 We have the pleasure to inform you that at a meeting
held on 8 March 2011     , the Board of Directors decided to grant you              BCEs, unassignable, which shall give the right to subscribe –
within a 10 year-period from the date of grant – to one new series A preferred share at an exercise price of EUR 3.13, (or two BCEs shall give you the right to subscribe one ordinary share at an exercise price of EUR 6.26,
from the effective date of the conversion of series A preferred shares in ordinary shares and reverse split of the Company shares). 
 The terms and conditions of (i) grant, (ii) striking and (iii) assignment of these BCEs, as well as the applicable tax regime, are set forth within the BCE SUBSCRIPTION
PLAN 2011-2 – hereafter referred to as “the PLAN” – (enclosed in 2 copies) approved by decision of the Board of Directors held on 8 March 2011. 

We remind you that these BCEs are also governed by the « CONTRACTUAL
UNDERTAKING » you have signed at the time of your first BCE grant on the [date]. 

We advise you to read carefully these documents and to return to the Company, within 7 days, an executed copy – i.e. your
initials on each page and your signature on the last page along with the handwritten mention “read and approved” – of this letter and the PLAN. 

Should you fail to conform to this major formality, the BCEs hereby allotted could consequently be null and void. 

Subject to the terms and conditions of this letter, the Plan – notably the vesting schedule -, and the Contractual
undertaking, you are entitled to subscribe                      new series A preferred shares (or
                     ordinary shares as mentioned above), at a total price of EUR
                    . 
 If the IPO does not occur, at latest, on the next ordinary shareholders meeting which shall approve the financial accounts of the fiscal year 2011, the BCEs granted to you shall be immediately and
irrevocably cancelled. 
 In order to exercise your rights and consequently become a shareholder of the Company, you shall
return to the Company a subscription form duly filled out and signed with a bank cheque or wire transfer of the amount of your subscription in Euros, on the basis of EUR 3.13 per series A preferred share (or EUR
6.26 per ordinary share) together with such other documents or form of indemnity as the Board may in its absolute discretion determine at the appropriate time, to meet any tax liability that arises on the grant or exercise of the option.

 We invite you to keep one copy of this letter, the subscription form and the PLAN.

 Sincerely yours 
 Georges Karam

 Chairman and CEO 
  

			
	Enc.	  	- BCE SUBSCRIPTION PLAN 2011-2 (2 copies)
		  	- Subscription form (2 copies)

  

 
 Your signature below to be preceded by the
handwritten mention “read and approved”: 
 Beneficiary:
                                         
                    
 Date:
                                         
                                

 SEQUANS COMMUNICATIONS 

Société anonyme au capital de          Euros 

Siège social : 19, Le Parvis de La Défense – 92800 PUTEAUX

RCS Nanterre 450 249 677 
  

	
	  
 SUBSCRIPTION FORM / LETTER OF APPLICATION
  
 (EXERCISE OF BCE         )

 

  

					
	I, undersigned:	  	  
	  	
			
	residing at:	  	  
	  	

 Pursuant to the subscription right related to the BCE I hold, pursuant to decision given on
             by the Board of Directors of SEQUANS COMMUNICATIONS, with respect to the BCE          subscription plan, by virtue of the
prior authorisation given by the combined general Shareholders meeting on             ; each BCE gives the right to subscribe one new series A preferred share with a par value of
Euro 0.01 (or two BCE gives the right to subscribe one ordinary share with a par value of EUR 0.02, from the effective date of the conversion of series A preferred shares in ordinary shares and reverse split of the Company shares). 

Hereby subscribe: 
 -
             new series A preferred shares of the Company, at the unit price of EUR              

Or from the effective date of the conversion of series A preferred shares in ordinary shares and reverse
split of the Company shares 
 -              new
ordinary shares of the Company, at the unit price of EUR              
 In consideration of this subscription/application, I settle the sum of
euros(1),                             ,by cheque
                    
(2), n°                     (3). 

I HEREBY REPRESENT AND ACKNOWLEDGE THAT THIS
SUBSCRIPTION IS SUBJECT TO THE TERMS AND CONDITIONS SET FORTH UNDER
THE « CONTRACTUAL UNDERTAKING » WHICH I HAVE EXECUTED. 
 I acknowledge that I have kept a copy of the present subscription form. 
 Executed in (place), On (date) 

(signature + the applicable handwritten mention) 
 « Bon pour souscription à [number of A shares subscribed] actions nouvelles de préférence de catégorie A ») 

« Bon pour souscription à [number of ordinary subscribed] actions nouvelles ordinaires ») 

 
  

	1	 Amount to be written out in words 

	2	 Name of the Bank 

	3	 Number of the cheque 

 CONTRACTUAL AGREEMENT 
 BETWEEN: 
  

	-	[Mr./Mrs.]
                                         
                                         
                                         
 , 

	 	residing at
                                         
                                         
                                         
   

	 	                           
                                         
                                         
                                   ; 

(hereinafter referred to as the “Holder”), 

ON THE ONE HAND, 

AND: 
  

	-	 Mr. Georges Karam, residing 7, rue du Centre, 92200 Neuilly/Seine, France; 

 

	-	 Mr. Bertrand Debray, residing 7, passage du Gros Murger, 78600 Maisons Laffitte, France,; 

 

	-	 Mr. Fabien Buda, residing 28, rue Guersant, 75017 Paris, France; 

 

	-	 Mr. Jérôme Bertorelle, residing 4, rue Bailleul, 75001 Paris, France; 

 

	-	 Mr. Laurent Sibony, residing 8, rue de la DCA, 78700 Conflans-Sainte-Honorine, France; 

 

	-	 Mr. Emmanuel Lemois, residing 60 avenue de la Motte Piquet 75015, France; 

 

	-	 Mr. Ambroise Popper, residing 25 rue de Chazelles, 75017 Paris, France; 

 

	-	 FCPR T-SOURCE, a French venture capital mutual fund (fonds commun de placement à risques), represented by its manager
(société de gestion), I-SOURCE GESTION, Société Anonyme à Directoire et Conseil de Surveillance with a share capital of EUR 675,144, the registered office of which is located 11 bis, avenue Victor Hugo,
75116 Paris, France, registered with the registry of commerce and companies of Paris under number 420 748 097 (“T-Source”); 

  

	-	 FCPI CAAM INNOVATION 6, a French Fonds commun de placement dans l’innovation represented by its manager (société de
gestion), Crédit Agricole Asset Management Capital Investors, Société Anonyme à Directoire et Conseil de Surveillance with a share capital of EUR 4.965.917, the registered office of which is 90, boulevard Pasteur,
75015 Paris, registered with the Registry of Commerce and Companies of Paris under number B 422 333 575, 

  

	-	 FCPI CAAM INNOVATION 9, a French Fonds commun de placement dans l’innovation represented by its manager (société de
gestion), Crédit Agricole Asset Management Capital Investors, Société Anonyme à Directoire et Conseil de Surveillance with a share capital of EUR 4.965.917, the registered office of which is 90, boulevard Pasteur,
75015 Paris, registered with the Registry of Commerce and Companies of Paris under number B 422 333 575, , 

  

	-	 FCPI CAAM INVESTISSEMENT 1, a French Fonds commun de placement dans l’innovation represented by its manager (société de
gestion), Crédit Agricole Asset Management Capital Investors, Société Anonyme à Directoire et Conseil de Surveillance with a share capital of EUR 4.965.917, the registered office of which is 90, boulevard Pasteur,
75015 Paris, registered with the Registry of Commerce and Companies of Paris under number B 422 333 575, 

  

	-	 CAP DECISIF, a French société par actions simplifiée, with a registered share capital of EUR 16,785,200, the
registered office of which is located 21 bis rue Lord Byron - 75008 Paris, 

  
 - 1 -

	 	 
France, registered with the registry of commerce and companies of Paris under number 440 405 405 (“Cap Décisif”); 

 

	-	 ADD ONE L.P., a Guernsey limited partnership established under the Limited Partnerships (Guernsey) Law 1995 and having its principal place of
business at 13-15 Victoria Road, St Peter Port, Guernsey, Channel Islands, United Kingdom, , 

  

	-	 ADD ONE GmbH & Co. KG, registered as a limited partnership with the commercial register at local court Munich, Germany and having
its principal place of business at Max Joseph Strasse 7, 80333 Munich, Germany, c/o VCM Venture Capital Management und Beteiligungsgesellshaft mbH, , 

  

	-	 VISION CAPITAL III LP, a limited partnership established under the Limited Partnerships (Jersey) Act 1994, having its registered office at
Kleinwort Benson House, Wests Centre, St Hélier, Jersey JE4 8PQ, Channel Islands (“Vision Capital”), 

  

	-	 FCPI SOGE INNOVATION 7, a French innovation mutual fund (fonds commun de placement dans l’innovation), represented by its manager
(société de gestion), Amundi Private Equity Funds, a French société anonyme with a share capital of EUR 12,394,096, the registered office of which is located at 90, boulevard Pasteur, 75015 Paris, France,
registered with the registry of commerce and companies of Paris under number 422 333 575, 

  

	-	 FCPI SOGE INNOVATION EVOLUTION 3, a French innovation mutual fund (fonds commun de placement dans l’innovation), represented by its
manager (société de gestion), Amundi Private Equity Funds, a French société anonyme with a share capital of EUR 12,394,096, the registered office of which is located at 90, boulevard Pasteur, 75015 Paris, France,
registered with the registry of commerce and companies of Paris under number 422 333 575, 

  

	-	 FCPI GEN-I, a French innovation mutual fund (fonds commun de placement dans l’innovation), represented by its manager
(société de gestion), Amundi Private Equity Funds, a French société anonyme with a share capital of EUR 12,394,096, the registered office of which is located at 90, boulevard Pasteur, 75015 Paris, France, registered with
the registry of commerce and companies of Paris under number 422 333 575, 

  

	-	 FCPI GEN-I 2, a French innovation mutual fund (fonds commun de placement dans l’innovation), represented by its manager
(société de gestion), Amundi Private Equity Funds, a French société anonyme with a share capital of EUR 12,394,096, the registered office of which is located at 90, boulevard Pasteur, 75015 Paris, France, registered with
the registry of commerce and companies of Paris under number 422 333 575, 

  

	-	 KENNET II L.P., a limited partnership established under the Limited Partnerships (Guernsey) Law 1995, whose principal place of business is at
Trafalgar Court, Les Banques, St Peter Port, Guernsey, Channel Islands, (“Kennet II”), 

  

	-	 KING STREET PARTNERS L.P., a limited partnership established under the Limited Partnerships (Guernsey) Law 1995, whose principal place of
business is at Trafalgar Court, Les Banques, St Peter Port, Guernsey, Channel Islands, (“King Street”), 

  

	-	 FONDS DE CO-INVESTISSEMENT DIRECT (FCID), a French venture capital mutual fund (fonds commun de placement à risques),
represented by its manager (société de gestion), CDC Entreprises, a French société par actions simplifiée with a registered share capital of EUR 2 920 000, the registered office of which is
located at 137, rue de l’Université 75007 Paris, France, registered with the registry of commerce and companies of Paris, under number 433 975 224, , 

  
 - 2 -

	-	 FCPR SERENA I, a French venture capital mutual fund (fonds commun de placement à risques), represented by its manager
(société de gestion), Serena Capital, a French société par actions simplifiée with a share capital of EUR 500,000, the registered office of which is located at 21, rue Auber – 75009, France,
registered with the registry of commerce and companies of Paris under number 504 262 650, 

  

	-	 MOTOROLA Inc., a Delaware corporation, whose principal place of business is 1303 E. Algonquin Road, Schaumburg, Illinois USA 60196
(“Motorola Inc.”), 

  

	-	 ALCATEL-LUCENT PARTICIPATIONS, a French société anonyme with a registered share capital of EUR 4.913.119.470, the
registered office of which is located at 54, rue La Boétie – 75008 Paris, France, registered with the registry of commerce and companies of Paris, under number 333 150 043 (“ALCATEL-LUCENT”),

  

	-	 GATEWAY NET TRADING PTE. LIMITED, a corporation established under Singapore Law and a wholly owned subsidiary of RELIANCE COMMUNICATIONS
LIMITED, having its registered office at Singapore 189677 15, beach road, # 03- 07, Beach Centre (“RELIANCE”),. 

  

	-	 SWISSCOM AG, a company established under Swiss Law, registered with the registry of commerce of Bern under the number CH-035.8.018.212-7 and
having its registered office in Ittingen, at Alte Tiefenaustr. 6, Worblaufen, 3050 Bern - Switzerland (“SWISSCOM”), 

  

	-	 UNITECH HOLDINGS INTERNATIONAL CO., LTD., an International Business Company established under the Law of the British Virgin Islands
(International Business Companies Act, Cap. 291), registered with the Registrar of Companies of the British Virgin Islands under the n°201707 and having its registered office at Drake Chambers, Tortola, British Virgin Islands
(“UHIC”) , 

 Each represented by: 

SEQUANS COMMUNICATIONS, a French société anonyme with a registered share capital of EUR
431,246.44, the registered office of which is located at 19, Parvis de La Défense – 92800 Puteaux, France, registered with the registry of commerce and companies of Nanterre, under number 450 249 677, (hereafter “Sequans
Communications” or the “Company”) represented by Mr. Georges Karam, acting in his capacity as chairman and managing director (président - directeur général), by virtue of the power of
attorney granted to the Company in this respect pursuant to the shareholders’agreement (the “Agreement”) dated January 31, 2008, 
 (hereinafter collectively referred to as the “Shareholders”), 
 ON THE OTHER HAND 
 (the Holder and the Shareholders are hereinafter referred to collectively as the “Parties” and individually as a “Party”, severally but not
jointly (conjointement mais sans solidarité) 
 IN THE PRESENCE OF: 

  
 - 3 -

	-	 SEQUANS COMMUNICATIONS, which is entering into this agreement for the purposes of accepting the rights granted to it and acknowledging the
obligations imposed on it pursuant to this contractual agreement. 

 Table of contents

  

							
	Preamble	  		  	 	5	  
			
	Article 1	  	Right to sell	  	 	5	  
			
	Article 2	  	Drag-along right	  	 	6	  
			
	Article 3	  	Pre-emptive Right	  	 	8	  
			
	Article 4	  	Listing on a stock exchange market	  	 	9	  
			
	Article 5	  	Confidentiality	  	 	10	  
			
	Article 6	  	Duration and termination of the Contract	  	 	10	  
			
	Article 7	  	Notices	  	 	11	  
			
	Article 8	  	Applicable law and jurisdiction	  	 	11	  
			
	Article 9	  	New Parties to the Contract	  	 	11	  
			
	Article 10	  	Miscellaneous provisions	  	 	12	  
			
	Exhibit	  	French translation of the Contract	  	 	13	  

  
 - 4 -

 WHEREAS: 
 In order to enable the Company to ensure its development by access to additional financing, access to a stock exchange or any other means, the Shareholders have agreed upon the terms and conditions
governing the purchase or disposal of the shares they hold or will hold in the Company. 
 The following are hereafter referred to as the
“Shares”: 
  

	-	 the equity securities (titres de capital) of the Company of which the Holder is the owner, if applicable; 

 

	-	 the equity securities (titres de capital) or securities of the Company giving access to a fraction of the capital or a voting right in the
general shareholders’ meetings of the Company of which the Holder may become the owner, in particular by way of purchase, subscription or exercise of stock options giving the right to subscribe for or purchase shares (options de souscription
ou d’achat d’actions) or founders’ warrants (bons de souscription de parts de créateurs d’entreprise). 

 In order to ensure the coherence of the behavior of the shareholders of the Company in the circumstances referred to above, the Shareholders intend to grant the Holder the option to sell his Shares in
case of a change in control as defined below, in consideration of the undertakings set out in this contractual agreement (the “Contract”). 
 It is specified that for the purposes of this Contract, a “Transfer” shall mean any transaction resulting in a transfer of the ownership of Shares for any reason whatsoever
(including, but not limited to gratuities, partial contributions of assets, mergers, demergers, or any combination of these methods of transfer of ownership). 
 NOW IT IS HEREBY AGREED AS FOLLOWS: 
 Article 1 – Right to
sell 
  

	1.1	 Should a Shareholder (hereinafter the “Concerned Shareholder”) contemplate a sale (the “Sale”) to a
Party or a third party to the contract (a “Third Party”) of a number of shares of the Company and shall the purchaser, as a result of such Sale, hold more than fifty per cent (50%) of the voting rights in the general
shareholders’ meetings or the share capital of the Company (the “Control”), the Holder would be entitled to sell, on the same terms and price conditions as offered by the purchaser (hereinafter the
“Purchaser”) to the Concerned Shareholder, all and nothing but all, of the Shares (hereinafter the “Concerned Shares”) which he would then hold. 

Accordingly, before making any commitment in respect of such Sale, the Concerned Shareholder would secure the
Purchaser’s irrevocable undertaking to purchase the Shares which the Holder may wish to sell, on the same terms and price conditions as those proposed by the Purchaser to the Concerned Shareholder. 

This obligation to purchase would be borne jointly and severally by the Concerned Shareholder and the Purchaser.

  

	1.2	 Consequently, in the situation referred to in Section 1.1 above, the Concerned Shareholder shall notify the Holder of the terms
of the proposed Sale by indicating the identity of the Purchaser, the number of shares of the Company contemplated to be sold, the price offered, the terms of payment of said price. 

 

	1.3	 The Holder shall have thirty (30) days from receipt of the notice provided for in Section 1.2 above to exercise its right to
sell in accordance with the following terms and conditions: 

  
 - 5 -

 In the event of exercise by the Holder of its right to sell, the Concerned
Shares shall be purchased by the Purchaser in accordance with the period set forth in the Purchaser’s notification for the purpose of the completion of the contemplated Sale or, failing such a provision, within fifteen (15) days of the
date of expiry of the above thirty (30) days period. 
  

	1.4	 If, in breach of the above provisions, the Purchaser were to purchase the shares of the Concerned Shareholder but did not purchase the
Concerned Shares, the Concerned Shareholder would be obliged to purchase all of the Concerned Shares itself within eight (8) days of the expiry of the period granted to the Purchaser in this Article 1 to purchase the Concerned Shares on
the same price conditions. 

 Also, if the Purchaser were to purchase the Concerned Shares but
did not pay for them, the Concerned Shareholder would be bound jointly and severally (solidairement) with the Purchaser to pay for the Concerned Shares within eight (8) days of the expiry of the period granted to the Purchaser in this
Article 1 to purchase the Concerned Shares. 
 Article 2 – Drag-along right 

 

	2.1	 Call Option 1 

  

	2.1.1	 Description 

 Should any Shareholder or Third Party, acting alone or in concert within the meaning of article L.233-10 of the French Commercial Code (hereinafter the “Beneficiary”) offer to
purchase one hundred per cent (100%) of the share capital of the Company (hereinafter the “Offer”) and Shareholders holding more than seventy five percent (75%) of the capital or voting rights in the general
shareholders’ meetings of the Company wish to accept the Offer, the Holder (hereinafter referred to as the “Promissor”) shall, if so requested by the in writing Beneficiary and upon written evidence of the acceptance of
the Offer by Shareholders holding more than seventy five percent (75%) of the capital or voting rights in the general shareholders’ meetings of the Company, transfer to the Beneficiary all of the Shares which he would then hold, including
any rights to the dividends as attached to said Shares, and free and clear of any pledge or security of any nature whatsoever. 

For this purpose, the Promissor hereby grants the Beneficiary the benefit of this irrevocable option to buy (the “Option
1”). 
  

	2.1.2	 Any Beneficiary may call the Option 1 if the conditions set forth in Section 2.1.1 above are met. 

 

	2.1.3	 Each Beneficiary shall notify the Promissor of its decision to call the Option 1 within thirty (30) days from the day on which the
conditions set forth in Section 2.1.1 shall have been met. It shall simultaneously notify each Promissor of the terms of the accepted Offer, as well as of the written acceptance of Shareholders holding more than seventy five percent
(75%) of the capital or voting rights in the general shareholders’ meetings of the Company. 

  

	2.1.4	 A Beneficiary may only call Option 1 in respect of all the Shares still held by the Promissor at the time of the exercise of Option 1, and in
one single call (“et ce en une seule fois”). If there are several Beneficiaries, the transferred Shares shall be allocated between them prorata their respective holdings in the share capital of the Company as at the date when the
condition set forth in Section 2.1.1 shall have been met, unless the said Beneficiaries agree otherwise. 

  

	2.1.5	 If the Option 1 is not called in accordance with the conditions set forth above, it will become null and void, without indemnity on any part.

  
 - 6 -

	2.1.6	 In the circumstances referred to in Section 2.1.1, in the event that the Option 1 is called in accordance with the terms and
within the time period set forth above, the Promissor undertakes to transfer the ownership of his Shares in accordance with the terms and conditions (including the price) set forth in the notified Offer. 

 

	2.1.7	 If this Option 1 is called in accordance with the terms and within the period set forth above, the Transfer of the Shares and the payment of
their purchase price shall take place at the latest within fifteen (15) days of the completion of the Offer. 

  

	2.1.8	 The Transfer shall be conditional upon the delivery : 

 

	 	(i)	to the Promissor of a bank check (chèque de banque) in an amount equal to the purchase price of its Shares ; 

 

	 	(ii)	to each Beneficiary of a stock transfer form (ordre de mouvement) duly completed and signed, requesting the Company to effect the Transfer of the relevant Shares
to the benefit of the said Beneficiary. 

  

	2.1.9	 Should the Beneficiary notify the exercise of the Option 1 within the period of time and according to the terms provided above, but shall the
Promissor fail to comply with its obligations under the Contract, the Beneficiary may deposit with the Caisse des Dépots et Consignations or any other bank agreeing on such mandate the price of the Shares for which the Option 1 shall
have been exercised. In such case, the mere remittance to the Company of the copies of the notice whereby the Option 1 has been exercised and the acknowledgement of the deposit would be deemed a share transfer form (ordre de mouvement des
titres) and would cause the Company, which the Company hereby undertakes, to register the Transfer in the share transfer register (registre des mouvements de titres) and the relevant shareholders’accounts (comptes individuels
d’actionnaires). 

  

	2.2.	 Call Option 2 

  

	2.2.1	 Should the Promissor, the condition defined in Section 2.1.1 above being met, hold rights (whether securities, options,
founders’ warrants or any other rights) to subscribe or purchase shares of the Company immediately or at a future date (the “Rights”), the Promissor shall, if so requested by the Beneficiary, transfer to the Beneficiary
the Shares it will hold as a result of the exercise of the Rights. 

 Accordingly, the Promissor irrevocably
grants to the Beneficiary this call Option (the “Option 2”). 
  

	2.2.2	 The Promissor irrevocably undertakes to inform the Beneficiary(ies) each time it shall exercise a Right. To that effect, it shall notify to
each Beneficiary and the Company the number of Shares subscribed within seven (7) days of exercising the relevant Right. 

 Any Beneficiary may exercise the Option 2 provided that the condition defined in Section 2.2.1 above are met. 
  

	2.2.3	 The Beneficiary shall notify to the Promissor its decision to exercise the Option 2 within thirty (30) days as from the receipt of the
notice provided in Section 2.2.2 above. 

  

	2.2.4	 A Beneficiary may exercise the Option 2, each time the Promissor shall exercise a Right, in one single call and for all and only all of the
Shares held by the Promissor as a result of the exercise of said Right. Should there be several Beneficiaries, the transferred Shares shall be allocated between them prorata their respective holdings in the share capital of the Company as at the
date when the conditions defined in Section 2.2.1 above shall be completed, unless the said Beneficiaries agree otherwise. 

  

	2.2.5	 Should the Option 2 not be exercised in accordance with the conditions set forth above, it would lapse automatically without any indemnity on either
side, within ninety (90) days following the expiration of the last Right which had remained in force. 

  
 - 7 -

	2.2.6	 Should the Option 2 be exercised in accordance with the terms and within the period of time set forth above, the price per Share should be
equal to the price per share set forth in the Offer. 

  

	2.2.7	 If the Option 2 is called in accordance with the terms and within the period of time set forth above, the Transfer of the Shares and the
payment of the sale price shall be completed within fifteen (15) days at the latest following the date on which the Beneficiary shall have notified its decision to purchase the Shares subscribed by the Promissor upon the exercise of a Right.

  

	2.2.8	 The Transfer shall be conditional upon the delivery : 

 

	 	(i)	 to each Promissor of a bank check (chèque de banque) of an amount equal to the purchase price of its Shares ;

  

	 	(ii)	 to each Beneficiary of a share transfer form (ordre de mouvement) instructing the Company to complete the Transfer of the relevant Shares to
the benefit of the said Beneficiary, duly completed and signed. 

  

	2.2.9	 Should the Beneficiary notify the exercise of the Option 2 within the period of time and according to the terms provided above but should the
Promissor fail to comply with its obligations under the Contract, the Beneficiary may deposit with the Caisse des Dépôts et Consignation or any other bank agreeing on such mandate the price of the Shares for which the Option 2
shall have been exercised. In such case, the mere remittance to the Company of the copies of the notice whereby the Option 2 has been exercised and the acknowledgement of the deposit would be deemed a share transfer form (ordre de mouvement de
titres) and would cause the Company, which the Company hereby undertakes, to register the Transfer in the share transfer register (registre des mouvements de titres) and the relevant shareholders’ accounts (comptes individuels
d’actionnaires). 

 ARTICLE 3 – Pre-emptive right  

 

	3.1.	 Prior to the Transfer by the Holder, for any reason whatsoever, of the ownership of all or any part of the Shares or Rights it holds or shall
hold (the “Transferred Shares”) to the benefit of a Shareholder or a Third Party (the “Transferee”), the Holder shall notify the proposed transfer (the “Proposed Transfer”) to
the Shareholders and the Company specifying the identity of the Transferee, its capacity (Shareholder or Third Party), the nature and number of Transferred Shares the Transfer of which is contemplated, the price offered by the Transferee (or, in the
case mentioned in Section 3.2(b) hereunder, by the Holder) and the description of the transaction pursuant to which the Transfer would be carried out. 

 

	3.2.	 The Holder grants a pre-emptive right on the Transferred Shares to the Shareholders in case of a Proposed Transfer. 

The Shareholders including, as the case may be, the Transferee, shall have thirty (30) days as from the receipt of
the notice of the Proposed Transfer, to notify the Holder and the Company that they intend to exercise their pre-emptive right. 
 The said pre-emptive right shall be exercised under the following conditions: 
  

	 	(a)	the pre-emptive right of the Shareholders shall be exercised, whether collectively or individually, only for the entirety of the Transferred Shares;

  

	 	(b)	in case of exercise of the pre-emptive right, the purchase price of the Transferred Shares to the Holder shall be: 

 

	 	(i)	 in case of sale (vente) of the Transferred Shares entirely for cash (numéraire), the price agreed upon between the Holder and
the Transferee, or 

  

	 	(ii)	 in all other cases, and in particular, in the event the Proposed Transfer is, in whole or in part, for a consideration other than cash, a donation,

  
 - 8 -

	 	 
exchange, contribution, merger or spin-off or a combined form of these forms of Transfer of ownership, the price agreed by the Holder and the Transferee, or in the event of a disagreement, the
price determined by an independent expert appointed, upon request of the disagreeing Party or Parties, by order of the President of the Tribunal de Grande Instance of Paris, ruling in a summary form (forme des
référés) and without appeal, as set forth in article 1843-4 of the French civil code; 

  

	 	(c)	 should the combined purchase offers of the Shareholders concern, in total, a number of Shares or Rights equal to the number of Transferred Shares,
the Transferred Shares shall be sold to each Shareholder pursuant to its request; 

  

	 	(d)	 should the combined purchase offers of the Shareholders concern, in total, a number of Shares or Rights superior to the total number of Transferred
Shares, the Transferred Shares shall be sold to the Shareholders having exercised their pre-emptive right in proportion to the number of shares they respectively hold in the share capital of the Company and within the limits of their request. In
case of fractions (rompus), the remaining Share(s) or Right(s) shall be automatically attributed to the Shareholders which shall have requested the largest number of Shares or, in case of equality, to the Shareholders which shall hold the
largest number of shares or, in case of new equality, to the Shareholders which shall have first notified that it intended to exercise its (their) pre-emptive right; 

 

	 	(e)	 in the circumstances referred to in Section 3.2(b)(ii) above, should at least one Shareholder disagree on the price at which the Shares
or Rights are offered, the dispute shall be notified to the Holder and the Company within the first (15) fifteen days of period provided for the exercise of the pre-emptive right. The Company shall immediately inform the other Shareholders of
the dispute. The appointed expert shall deliver his report to the Holder and the Company which shall promptly transmit said report to each Shareholder. Any duly notified objection shall cause to become null and void any notice of exercise of the
pre-emptive right sent by a Shareholder prior to the notice of the appointed expert’s report. The Shareholders may then exercise again their pre-emptive right at the price determined by the appointed expert according to the terms and conditions
provided for in this Section 3.2 within fifteen (15) days from the notification of the price determined by the appointed expert; 

  

	 	(f)	 the Holder shall not benefit from any right of withdrawal; 

The appointed expert fees shall be borne by the Holder if the price determined by the appointed expert is inferior to the
price it shall have offered and by the Shareholder(s) contesting the price in the other cases, prorata their respective holdings in the Company’s share capital. 
  

	 	(g)	 should the pre-emptive right be exercised for a number of Shares or Rights inferior to the total number of Transferred Shares, the Holder shall be
free to complete the Transfer of the Transferred Shares within the period of time notified in the Proposed Transfer or, absent of any such indication in the notification of the Proposed Transfer, within thirty (30) days from the expiration of
the period of time provided for the exercise of the pre-emptive right. 

 Should the Holder
fail to comply with the above, it shall be bound to observe again the provisions of this Article 3 prior to any Transfer of Shares or Rights. 
 ARTICLE 4 – Listing on a stock exchange market 
 Should the Board of Directors or the shareholders’ meeting of the Company vote a resolution for the listing of the Company’s shares on a French or foreign stock

  
 - 9 -

 
exchange market, the Holder irrevocably undertakes, with respect to the Shares it will then hold, to comply with the terms (including but not limited to lock-up, as the case may be) of the public
offering such as jointly determined by the Company, the Shareholders, the banks responsible for the listing and the relevant market authorities. 
 The terms of the public offering of the Company’s shares shall be notified to the Holder by the Company or any of the Shareholders. 

ARTICLE 5 - Confidentiality 

As long as this Contract remains in force, the Holder undertakes to consider as strictly confidential and not to divulge,
sell or transfer to any Third Party, any documents or information which it may acquire or to which it may have accessed in the course of its relationship with or responsibilities in the Company concerning, in particular, the activities, products,
clients, the strategy, the development, the commercial or partnership agreements and the financial situation of the Company or its subsidiaries unless made: 
  

	 	(i)	 with the prior consent of the Company, 

  

	 	(ii)	 as required by the applicable mandatory laws or regulations, or 

 

	 	(iii)	 to the directors, managers, employees or professional advisers of a Shareholder, provided that it is necessary to the performance by such
Shareholder of its obligations and undertakings or to the exercise of its rights in relation to the Company and provided that the director, manager, employee or professional adviser referred to above is himself subject to a similar confidentiality
agreement. 

 Notwithstanding the foregoing, information shall not be regarded as confidential,
if it is made available to the public : 
  

	 	(i)	 to the extent that such disclosed information does not result from the Holder’s or any Shareholder’s negligence, or

  

	 	(ii)	 through sources that are not in violation of this confidentiality undertaking. 

ARTICLE 6 – Duration and termination of the Contract  

 

	6.1	 The rights and duties of the Parties under the terms of this Contract shall enter into force as from the date on which the Holder shall hold
at least one share of the Company as a result of exercising all or part of his Right(s) or for any other reason or, if the Holder already holds, whether directly or through an employee savings plan (plan d’épargne
d’entreprise), at least one share of the Company, on the date of execution hereof. It will remain in force during a period of ten (10) years thereafter. 

At the end of this first period of ten (10) years, the Contract shall be automatically renewed for successive periods
of five (5) years. However, upon each renewal, any Party may terminate the Contract, as far as such Party is concerned, by notifying its decision to the other Parties at least twelve (12) months in advance. 

The exercise by one Shareholder of the right to terminate the Contract stipulated above shall not affect the validity of
the Contract towards the other Parties. 
  

	6.2	 Notwithstanding the foregoing, the Contract shall automatically terminate : 

 

	 	(i)	 with respect to any Shareholder or the Holder, on the date on which such Party shall cease to hold any share or right in the Company, without
affecting the validity of the Contract towards the other Parties; or 

  

	 	(ii)	 in case of listing (première cotation) of all or part of the shares of the Company on any regulated market of the European Union or
Japan or the Nasdaq National Market or NYSE in the United States of America. 

  
 - 10 -

 ARTICLE 7 - Notices 

 

	7.1.	 All notices and other communications required or authorized hereunder shall be in writing and shall be validly made if either delivered via
courier or sent by registered letter, return receipt requested, e-mail or fax provided that, in the latter cases, it is confirmed by same day registered letter, return receipt requested (or any equivalent process for notices sent across
international boundaries), to the registered office or residence of the Party concerned or the Company as specified in the above recitals. 

 Any change in address or representative for purposes hereof shall be notified by the Party concerned to the other Parties as provided above. 

 

	7.2.	 Notices and other communications delivered via courier shall be effective as of their date of delivery, as evidenced by the delivery receipt.

 Notices and other communications sent by registered mail, return receipt requested, shall be
effective as of their date of first presentation to the addressee. 
 Notices and other communications sent by
e-mail or fax shall be deemed effective as of the date thereof, provided that they are confirmed by same day registered letter, return receipt requested (or any equivalent process for notices sent across international boundaries). 

ARTICLE 8 – Applicable law and jurisdiction 

The Contract shall be governed as to its validity, interpretation and performance by the laws of France. 

Any dispute arising in connection with the Contract and its exhibits or which may result therefrom shall be submitted to
the exclusive jurisdiction of the Tribunal de grande instance of the place where the Company’s registered office is located. 
 ARTICLE 9 – New Parties to the Contract 
  

	9.1	 Should the Holder decide to transfer one or several of its Shares to any Third Party, the Holder undertakes to procure that said Third Party
become a party to the Contract as a “Holder” itself no later than upon the completion of the contemplated Transfer. 

 Additionally, any third Party becoming a party to the Shareholders’ Agreement shall automatically become a Party to this Contract as a “Shareholder”. 

 

	9.2	 For this purpose, the Parties grant to the Company (the “Agent”) an irrevocable power of attorney to make such Third
Party become a party hereto. 

 Accordingly, the mere execution by the Agent of a copy of the
Contract also executed by the above-mentioned Third Party shall be deemed executed by the Parties. 
 Said Third
Party shall thus become a Party for the purpose of the Contract and the Contract shall benefit to and bind the said Third Party. 
 The Agent shall also have all powers to modify the Contract in order to insert the name of the Third Party and all the Parties shall be bound by the modifications thus made. 

A copy of the amended Contract shall then be sent by the Agent to each of the Parties. 

  
 - 11 -

 Should the relevant Party fail to comply with its commitment to ensure that
the Third Party becomes a party hereto as set forth above, the Parties grant a joint and irrevocable power of attorney to the Company to refuse to register the information pertaining to the Transfer in the share transfer register (registre des
mouvements de titres) and the relevant shareholders’accounts (comptes individuels d’actionnaires). 

ARTICLE 10 – Miscellaneous provisions 
  

	10.1.	 The Parties agree that the provisions set forth in the preamble and the Exhibit hereof shall form an integral part of the Contract.

  

	10.2	 As a consequence of entering into this Contract, each Party hereby irrevocably renounces to any and all rights which it may have pursuant to
any and all previous shareholders’ agreement between some or all the Parties with respect to the Company, except for the Agreement. 

  

	10.3	 In the event that any of the provisions hereof is held to be null or void in any way whatsoever and for any reason whatsoever, the Parties
undertake to use their best efforts to remedy the cause of such nullity so that, except where impossible, the Contract shall remain in full force and effect without disruption. 

 

	10.4.1	 The Parties undertake to communicate, sign and deliver any information and any document, as well as to execute any act or take any measure
which may be necessary for the performance of the Contract. 

  

	10.4.2	 The Parties hereby agree that any Party may require in justice for specific performance (execution forcée) against any
defaulting Party. and that there exists no physical, legal nor moral obstacle that would prevent such specific performance (exécution forcée) to take place. 

 

	10.5	 This Contract shall validly bind and benefit to the heirs, legatees and assigns, as well as the legal representatives of each Party.

  

	11.6	 This Contract has been prepared in French and English. The Parties agree and acknowledge for the avoidance of doubt that the French version
thereof, attached as an Exhibit hereto, constitutes a fair and accurate translation of the English version and may thus be used before any French court in lien of the English version as representing the full and final understanding of the
Parties. 

 Executed in La Défense, 
 On 
 In two (2) originals 

					
	  
	 		 	  

	The Holder	 		 	SEQUANS COMMUNICATIONS
		 		 	 in its name and on behalf of each of the
 Shareholders

		 		 	Represented by Georges Karam,
		 		 	President & CEO

  
 - 12 -

 EXHIBIT 

French translation of the Contract 

  
 - 13 -

 Schedule of Information for Form of Letter of Grant 

Grants to Executive Officers 
  

																													
	 Date
	 	  	  	Family Name	  	Given Name	  	Number of
Shares	 	  	Number 
of
Shares
(post-split)	 	  	Exercise
Price	 	 	Plan	  	Start of
vesting date	 	  	End of
vesting date	 
	20-Sep-07	 		  	Choate	  	Deborah	  	 	101,000	  	  	 	50,500	  	  	 	1.215 	€ 	 	BCE 2006-2	  	 	02-Jul-07	  	  	 	2-Jul-11	  
	20-Sep-07	 		  	Choate	  	Deborah	  	 	129,000	  	  	 	64,500	  	  	 	1.215 	€ 	 	BCE 2007-1	  	 	02-Jul-07	  	  	 	2-Jul-11	  
	12-Nov-08	 		  	Choate	  	Deborah	  	 	40,000	  	  	 	20,000	  	  	 	2.024 	€ 	 	BCE 2008-1	  	 	12-Nov-08	  	  	 	12-Nov-12	  
	11-Jan-11	 		  	Choate	  	Deborah	  	 	30,000	  	  	 	15,000	  	  	 	3.140 	€ 	 	BCE 2010-1	  	 	11-Jan-11	  	  	 	11-Jan-15	  
	8-Mar-11	 		  	Choate	  	Deborah	  	 	225,000	  	  	 	112,500	  	  	 	3.130 	€ 	 	BCE 2011-2	  	 	IPO	  	  	 	TBD	  
	8-Mar-11	 		  	Debray	  	Bertrand	  	 	300,000	  	  	 	150,000	  	  	 	3.130 	€ 	 	BCE 2011-2	  	 	IPO	  	  	 	TBD	  
	27-May-10	 		  	Deschamps	  	Sylvie	  	 	180,000	  	  	 	90,000	  	  	 	2.024 	€ 	 	BCE 2009-1	  	 	16-Mar-10	  	  	 	16-Mar-14	  
	11-Jan-11	 		  	Deschamps	  	Sylvie	  	 	20,000	  	  	 	10,000	  	  	 	3.140 	€ 	 	BCE 2010-1	  	 	11-Jan-11	  	  	 	11-Jan-15	  
	8-Mar-11	 		  	Deschamps	  	Sylvie	  	 	80,000	  	  	 	40,000	  	  	 	3.130 	€ 	 	BCE 2011-2	  	 	IPO	  	  	 	TBD	  
	8-Mar-11	 		  	Karam	  	Georges	  	 	1,000,000	  	  	 	500,000	  	  	 	3.130 	€ 	 	BCE 2011-2	  	 	IPO	  	  	 	TBD	  
	10-Sep-08	 		  	Waldburger	  	Hugues	  	 	140,000	  	  	 	70,000	  	  	 	2.024 	€ 	 	BCE 2008-1	  	 	30-Jun-08	  	  	 	30-Jun-12	  
	11-Jan-11	 		  	Waldburger	  	Hugues	  	 	25,000	  	  	 	12,500	  	  	 	3.140 	€ 	 	BCE 2010-1	  	 	11-Jan-11	  	  	 	11-Jan-15	  
	8-Mar-11	 		  	Waldburger	  	Hugues	  	 	95,000	  	  	 	47,500	  	  	 	3.130 	€ 	 	BCE 2011-2	  	 	IPO	  	  	 	TBDEngagement Letter

 Exhibit 10.17 

 

 

 1st February 2011 
 SEQUANS Communications S.A. 
 Bâtiment Citicenter 

19 Le Parvis de La Défense 
 La
Défense Cedex 
 92073, Paris 

France 
  

	Attention:	Dr. Georges Karam 

	  	Chief Executive Officer 

 Ladies
and Gentlemen: 
 This letter memorializes our agreement that SEQUANS Communications S.A. (collectively with its affiliates, the
“Company”) has engaged Qatalyst Partners LP (“Qatalyst”), to act as a financial advisor with respect to an Offering (as defined below) involving the Company. For purposes hereof, “Offering” shall mean a registered
public offering of any class of equity or equity-linked securities of the Company. 
 Section 1. Financial Advisory Services.
Qatalyst’s services under the engagement will, to the extent requested and appropriate, consist of assisting the Company in: 
  

	 	1)	analyzing the business, condition and financial position of the Company; 

  

	 	2)	preparing a marketing plan for the Offering, including advice on positioning the Company and its business in the marketplace, provided that Qatalyst will not solicit or
engage directly with potential investors; 

  

	 	3)	preparing and implementing a plan for identifying and selecting appropriate participants in any underwriting syndicate; 

 

	 	4)	evaluating proposals that are received from potential underwriters; 

  

	 	5)	negotiating the key terms of any underwriting arrangements; 

  

	 	6)	determining the optimal offering amount, timing, structure and pricing; and 

 

	 	7)	providing such other assistance as you and we may agree from time-to-time. 

 Section 2. Compensation. In connection with Qatalyst’s services relating to an
Offering, the Company agrees to pay Qatalyst a fee (the “Offering Fee”), upon consummation of such Offering, equal to 1.0% of the gross proceeds raised by the Company in the Offering, unreduced by any discounts, commissions, fees, expenses
or other amounts payable to others, including underwriters. 
 Section 3. Expenses and Payments. In addition, the Company
agrees upon request to promptly reimburse Qatalyst for its reasonable out-of-pocket expenses, including the fees and expenses of its legal counsel, arising out of the engagement or the performance of the services contemplated in this agreement. All
fees and expenses payable hereunder are payable in U.S. dollars in immediately available funds, without deduction for any withholding, value-added or other similar taxes, fees, charges or assessments (collectively, “Foreign Levies”) and
all references to amounts in this letter are in U.S. Dollars. If any Foreign Levies are payable with respect to amounts paid or payable to Qatalyst hereunder, the Company shall reimburse Qatalyst promptly for the amount of such Foreign Levies. The
aggregate amount of reimbursed expenses will not exceed $12,500 unless the Company provides prior written consent authorizing such additional reimbursement (which will not be unreasonably withheld); and provided, further, that nothing herein shall
alter or modify the Company’s obligations pursuant to Annex A hereof. 
 Section 4. Terms and Conditions. Because
Qatalyst will be acting as an independent contractor to the Company in connection with the engagement, the Company and Qatalyst agree to the Indemnity & Contribution, Information & Announcements, Acknowledgements & Waiver
provisions and other matters set forth in the Terms and Conditions contained in Annex A (the “Terms and Conditions”), which Annex A is incorporated by reference into this agreement and is an integral part hereof. The obligations of the
parties hereto pursuant to the Terms and Conditions shall survive any expiration or termination of this agreement or Qatalyst’s engagement hereunder. 
 Section 5. Termination. Qatalyst’s engagement hereunder is for the earliest of a term of 12 months or upon completion of an Offering or any sale (whether in one or multiple
transactions) of a majority of the assets or capital stock of the Company, any sale, merger, spin-off, split-off or other business/strategic combination involving the Company, as well as any recapitalization or restructuring of the Company, or any
other form of transaction or disposition which results in the effective sale, transfer or other disposition of ownership or control over the principal business or operations of the Company, and may be renewed by the Company for subsequent six month
periods if notified to Qatalyst in writing, and may be terminated at any time (including during the initial term) by either party hereto upon ten days’ prior written notice to the other party, provided, however, that in the event of any
termination of Qatalyst’s engagement by the Company (other than for Qatalyst’s willful and material breach of Section B(3) of Annex A hereof, provided that breach causes actual and significant harm to the Company) or any expiration of such
engagement, Qatalyst will continue to be entitled to the full Offering Fee (payable upon consummation of the Offering and subject to the payment procedures in Section 2 hereof), in the event that at any time prior to the expiration of 12 months
after any such termination or expiration, the Company consummates an Offering. No termination of Qatalyst’s engagement by the Company shall affect the Company’s obligations pursuant to the Terms and Conditions or its obligations to pay the
other fees described in Section 2 hereof and to reimburse 

  
 2 

 
Qatalyst for fees and expenses, payable or incurred prior to the termination of Qatalyst’s engagement. 

  
 3 

 We are pleased to accept the engagement and look forward to working with you on this assignment. Please
confirm your agreement with the foregoing (including the attached Terms and Conditions) by signing each of the enclosed copies of this agreement and returning to us one fully signed copy. 

 

			
	Very truly yours,
	
	Qatalyst Partners LP
		
	By:    	 	           /s/ Adrian E.
Dollard

			
	Name:	 	  Adrian E. Dollard
	Title:	 	  Partner

 Accepted and agreed to as of
the date first written above: 
 SEQUANS Communications S.A. 
  

					
	By:	 	     /s/ Dr. Georges Karam

		 	Name:	 	Dr. Georges Karam
		 	Title:	 	Chief Executive Officer

  
 4 

 ANNEX A 
 TERMS AND CONDITIONS 
 In further consideration of the
agreements contained in the engagement letter to which these Terms and Conditions are attached (the “engagement”), Qatalyst Partners LP (“Qatalyst”) and SEQUANS Communications S.A. (collectively with its subsidiaries, the
“Company”) hereby agree that these Terms and Conditions shall be incorporated by reference into the engagement and shall form an integral part thereof. Capitalized terms used but not defined below shall have the same meanings specified in
the engagement and any references to this agreement or the engagement shall mean the engagement together with these Terms and Conditions. 

Section A. Indemnity and Contribution. 
  

	(1)	 The Company agrees to indemnify and hold harmless Qatalyst, its affiliates, the respective members, directors, officers, partners, agents and
employees of Qatalyst and its affiliates, and any person controlling Qatalyst or any of its affiliates (collectively, “Indemnified Persons”) from and against, and the Company agrees that no Indemnified Person shall have any liability to
the Company or its owners, parents, affiliates, security holders or creditors for, any losses, claims, expenses, damages or liabilities (including actions or proceedings in respect thereof) (collectively, “Losses”) (i) related to or
arising out of (A) the Company’s actions or failures to act (including statements or omissions made or information provided by the Company or its agents) or (B) actions or failures to act by an Indemnified Person with the
Company’s consent or in reliance on the Company’s actions or failures to act or (ii) otherwise related to or arising out of the engagement, Qatalyst’s performance thereof or any other services Qatalyst is asked to provide to the
Company (in each case, including activities prior to the date hereof), except that this clause (ii) shall not apply to any Losses to the extent that they are finally determined by a court of competent jurisdiction to have resulted primarily
from the bad faith, willful misconduct, or gross negligence of such Indemnified Person. If such indemnification is for any reason not available or is insufficient to hold an Indemnified Person harmless, the Company agrees to contribute to the Losses
involved in such proportion as is appropriate to reflect the relative economic interests of the Company, on the one hand, and of Qatalyst, on the other hand, with respect to the engagement or, if such allocation is determined by a court of competent
jurisdiction to be unavailable, in such proportion as is appropriate to reflect other equitable considerations such as the relative fault of the Company on the one hand and of Qatalyst on the other hand; provided, however, that, to the extent
permitted by applicable law, the Indemnified Persons shall not be responsible for Losses which in the aggregate exceed the amount of all fees actually received by Qatalyst from the Company in connection with the engagement, except in the case of bad
faith. Relative economic interests of the Company, on the one hand, and Qatalyst, on the other hand, with respect to the engagement shall be deemed to be in the same proportion as (i) the total value paid or proposed to be paid or received or
proposed to be received by the Company and its security holders, as the case may be, pursuant to the transaction(s) contemplated by the engagement, whether or not consummated, bears to (ii) all fees actually received by Qatalyst in connection
with the 

  
 A-1

	 	 
engagement. Without limiting the generality of the foregoing, in no event shall any Indemnified Person have any liability to the Company or any of its affiliates or security holders for any
consequential, special, exemplary or punitive damages arising out of the engagement or the performance thereof, except for an intentional breach of Section B(3) hereof. If any Indemnified Person becomes involved in any capacity in any action, claim,
suit, investigation or proceeding, actual or threatened, brought by or against any person, including security holders of the Company, in connection with or as a result of the engagement, the Company also agrees to reimburse such Indemnified Persons
for their expenses (including without limitation reasonable legal fees and other costs and expenses incurred in connection with investigating, preparing for and responding to third-party subpoenas or enforcing the engagement) as such expenses are
incurred. 

  

	(2)	The Company also agrees, in connection with any Offering, that Qatalyst shall be an express third-party beneficiary of the indemnification and contribution
provisions in any underwriting, purchase or similar agreement such that Qatalyst is entitled to the full benefits, but not the obligations, of any such provisions. 

 

	(3)	The Company shall not be liable for any settlement of any claim, action, suit, investigation or proceeding effected without its consent. The Company will not,
without Qatalyst’s prior written consent, settle, compromise, consent to the entry of any judgment in or otherwise seek to terminate any claim, action, suit, investigation or proceeding in respect of which it is foreseeable that indemnification
may be sought hereunder, whether or not an Indemnified Person is a party thereto, unless such settlement, compromise, consent or termination includes an unconditional release of each Indemnified Person from any liabilities arising out of such claim,
action, suit, investigation or proceeding. The Company will not permit any settlement or compromise to include, or consent to the entry of any judgment that includes, a statement as to, or an admission of, fault, culpability or a failure to act by
or on behalf of an Indemnified Person, without such Indemnified Person’s prior written consent. 

  

	(4)	The Company’s obligations pursuant to this Section A shall inure to the benefit of any successors, assigns, heirs and personal representatives of each
Indemnified Person and are in addition to any rights that each Indemnified Person may have at common law or otherwise. Prior to entering into any agreement or arrangement with respect to, or effecting, any transaction that is reasonably likely to
impair the Company’s ability to meet its current and potential future obligations pursuant to this Section A, the Company will notify Qatalyst in writing thereof and, if requested by Qatalyst, shall arrange alternative means of providing for
the obligations of the Company set forth herein upon terms and conditions reasonably satisfactory to Qatalyst. For the avoidance of doubt, the preceding sentence shall not trigger any further obligation on the part of the Company in any transaction
in which the Company’s obligations under the engagement are assumed by a successor company by operation of law, including through merger. 

 Section B. Information and Announcements. 
  

	(1)	 Qatalyst’s advice hereunder is intended solely for the benefit and use of the Company’s executive management and Board of Directors in
considering an Offering and may not be 

  
 A-2

	 	 
used or relied upon for any other purpose or by any other person, including any security holder, employee or creditor of the Company. No advice or opinion rendered by Qatalyst, whether formal
or informal, may be disclosed or described, in whole or in part, or otherwise referred to, without Qatalyst’s prior written consent. In addition, neither Qatalyst nor the terms of the engagement may be otherwise referred to without our prior
written consent. The Company shall be solely responsible for the accuracy and completeness of, and Qatalyst shall have no liability with respect to any materials required to be submitted to any regulatory authorities in connection with any
Offering. 

  

	(2)	The Company will furnish, or cause to be furnished to, Qatalyst all information concerning the Company and, to the fullest extent practicable, any counterparty that
Qatalyst reasonably deems necessary or appropriate and will provide Qatalyst with access to officers, directors, employees, accountants, counsel and other representatives (collectively, the “Representatives”) of the Company and, to the
fullest extent practicable, any counterparty. In performing its services hereunder, Qatalyst shall be entitled to rely without investigation upon all available information, including information supplied to it by or on behalf of the Company, any
counterparty or their respective Representatives and shall not be responsible for the accuracy or completeness of, or have any obligation to verify, the same. Qatalyst will not conduct any appraisal of assets or liabilities of any party to an
Offering or evaluate the solvency thereof under any state or federal bankruptcy, insolvency or similar laws. In order to coordinate efforts with respect to matters contemplated by the engagement, the Company agrees to promptly inform Qatalyst of any
inquiry or proposal received by the Company or its management regarding a possible Offering or any strategic alternatives thereto. 

  

	(3)	Qatalyst will treat as confidential any non-public information relating to the Company or the proposed Offering, and will not use such information except as
(a) required in order to perform services under this engagement, (b) such information becomes publicly available other than through disclosure by Qatalyst or its employees, representatives or agents, or (c) otherwise required by law
or judicial or regulatory process (and in such case, only after seeking with the Company’s assistance a protective order or other confidential treatment, and provided, further if Qatalyst is thereafter required to disclose such information,
Qatalyst shall, if permissible, first review with the Company the information to be disclosed and shall not disclose information that in the reasonable opinion of Qatalyst’s legal counsel is not required to be disclosed in accordance with such
judicial or regulatory process). This paragraph will survive any termination of this letter. The parties recognize that remedies at law, including monetary damages, may be inadequate as a remedy for any breach of this section and agree that the
Company may be entitled to equitable remedies, including specific performance and injunctive relief as a remedy for any breach of this Section B(3). 

  

	(4)	 The Company shall cause Qatalyst’s name to appear on the cover of any initial prospectus filed (provided that it is reasonably satisfied that
Qatalyst’s role in the offering is important enough to be described on such cover) and any “tombstone” style announcement used in connection with any Offering. Qatalyst shall be identified as “Financial Advisor to the
Company” and it shall be made clear in the prospectus that Qatalyst is not an underwriter and did not participate in the underwriting. The Company 

  
 A-3

	 	 
acknowledges that Qatalyst may, at its option and expense and after completion of the Offering and with prior approval of the Company, place customary “tombstone” style announcements
or otherwise publicize or disclose Qatalyst’s role in the Offering (which may include the reproduction of the Company’s logo and a hyperlink to the Company’s website on Qatalyst’s Internet Website). Furthermore, if requested by
Qatalyst, the Company shall include a mutually acceptable reference to Qatalyst in any press release or other public announcement made by the Company regarding the matters described in the engagement. 

Section C. Acknowledgements and Waivers. 
  

	(1)	This agreement shall be binding upon and inure to the benefit of the Company, Qatalyst and their respective successors and assigns. If any term, provision, covenant
or restriction herein (including the Terms and Conditions) is held by a court of competent jurisdiction to be invalid, void or unenforceable or against public policy, the remainder of the terms, provisions and restrictions contained herein shall
remain in full force and effect and shall in no way be modified or invalidated. The obligations of the parties hereto pursuant to the Terms and Conditions shall survive any expiration or termination of this agreement or Qatalyst’s engagement
hereunder. 

  

	(2)	Qatalyst acknowledges that the engagement does not create any obligation on the part of the Company to enter into any agreement providing for an Offering.

  

	(3)	Qatalyst and its affiliates and certain of their respective employees, as well as certain private equity funds in which they may have financial interests, may from
time-to-time acquire, hold or make direct or indirect investments in, or otherwise finance, a wide variety of companies, including transaction counterparties and their affiliates. 

 

	(4)	The Company acknowledges and agrees that Qatalyst has been retained solely to act as exclusive financial advisor with respect to any potential Offering and that no
fiduciary or agency relationship between the Company and Qatalyst has been created in respect of any Offering or Qatalyst’s engagement hereunder, regardless of whether Qatalyst has advised or is advising the Company on other matters. In
connection with the engagement, Qatalyst is acting as an independent contractor, with obligations owing solely to the Company and not in any other capacity. Except as expressly contemplated by the Terms and Conditions, the engagement is not intended
to confer rights upon any persons not a party hereto (including security holders, employees or creditors of the Company). 

  
 A-4

	(5)	The Company acknowledges and agrees that Qatalyst and its affiliates may be engaged in a broad range of transactions involving interests that differ from those of
the Company and that Qatalyst has no obligation to disclose such interests and transactions to the Company. The Company waives, to the fullest extent permitted by law, any claims it may have based on any actual or potential conflicts of interest
that may arise or result from Qatalyst’s engagement by the Company hereunder or any claims it may have against Qatalyst for breach of fiduciary duty or alleged breach of fiduciary duty and agrees that Qatalyst shall have no liability (whether
direct or indirect) to the Company in respect of such a fiduciary duty claim or to any person asserting a fiduciary duty claim on behalf of or in right of the Company, including the Company’s security holders, employees or creditors.

 The Company will conduct any transactions contemplated hereby in compliance with applicable law. The Company
understands that Qatalyst is not undertaking to provide any legal, accounting or tax advice in connection with the engagement and that Qatalyst’s role in any due diligence will be limited solely to performing such review as it deems advisable
to support its own analysis and shall not be on behalf of or for the benefit of the Company. 

  
 A-5

	(6)	All aspects of the relationship created by the engagement and any other agreements relating to the engagement shall be governed by and construed in accordance with
the laws of the State of New York, applicable to contracts made and to be performed therein and, in connection therewith, the parties hereto consent to the exclusive jurisdiction of the Supreme Court of the State of New York sitting in New York
County or the United States District Court for the Southern District of New York and agree to venue in such courts. The Company shall appoint a U.S.-domiciled person or entity to accept service of process in connection with the engagement, provided
that if the Company fails to do so (or fails to notify Qatalyst of such appointment in writing), the Company hereby appoints Qatalyst as its agent for such service of process. Notwithstanding the foregoing, solely for purposes of enforcing the
Company’s obligations hereunder, the Company consents to personal jurisdiction, service and venue in any court proceeding in which any claim relating to or arising out of the engagement is brought by or against any Indemnified Person. QATALYST
AND THE COMPANY (ON ITS OWN BEHALF AND, TO THE MAXIMUM EXTENT PERMITTED BY LAW, ON BEHALF OF ITS SECURITY HOLDERS AND CREDITORS) EACH HEREBY AGREES TO WAIVE ANY RIGHT TO TRIAL BY JURY WITH RESPECT TO ANY CLAIM, COUNTERCLAIM OR ACTION ARISING OUT OF
OR RELATING TO THIS AGREEMENT OR THE ENGAGEMENT. 

 If the foregoing is acceptable to you, please confirm your
agreement by signing each of the enclosed copies of this agreement and returning to us one fully signed copy. 
  

					
	Very truly yours,
	
	Qatalyst Partners LP
		
	By:	 	     /s/ Adrian E. Dollard

		 	Name:  	 	Adrian E. Dollard
		 	Title:	 	Partner

 Accepted and agreed to as of the date first
written above: 
 SEQUANS Communications S.A. 
  

					
	By:	 	     /s/ Dr. Georges Karam

		 	Name:	 	Dr. Georges Karam
		 	Title:	 	Chief Executive Officer

  
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