Document:

Form of Deposit Agreement - The Bank of New York Mellon and owners and holders..

 Exhibit 4.2 

 
  

 
 SEQUANS COMMUNICATIONS S.A.

 AND 

THE BANK OF NEW YORK MELLON 
 As
Depositary                                        
                             
 AND 
 OWNERS AND HOLDERS OF AMERICAN DEPOSITARY SHARES 

Deposit Agreement 

Dated as of             , 2011 

 
  

 

 TABLE OF CONTENTS 

 

							
	 ARTICLE 1.
	  	 DEFINITIONS
	  	 	1	  
	 SECTION 1.01
	  	 American Depositary Shares.
	  	 	1	  
	 SECTION 1.02
	  	 Commission.
	  	 	2	  
	 SECTION 1.03
	  	 Company.
	  	 	2	  
	 SECTION 1.04
	  	 Custodian.
	  	 	2	  
	 SECTION 1.05
	  	 Deliver; Surrender.
	  	 	2	  
	 SECTION 1.06
	  	 Deposit Agreement.
	  	 	3	  
	 SECTION 1.07
	  	 Depositary; Corporate Trust Office.
	  	 	3	  
	 SECTION 1.08
	  	 Deposited Securities.
	  	 	3	  
	 SECTION 1.09
	  	 Dollars.
	  	 	3	  
	 SECTION 1.10
	  	 DTC.
	  	 	3	  
	 SECTION 1.11
	  	 Foreign Registrar.
	  	 	3	  
	 SECTION 1.12
	  	 Holder.
	  	 	4	  
	 SECTION 1.13
	  	 Owner.
	  	 	4	  
	 SECTION 1.14
	  	 Receipts.
	  	 	4	  
	 SECTION 1.15
	  	 Registrar.
	  	 	4	  
	 SECTION 1.16
	  	 Restricted Securities.
	  	 	4	  
	 SECTION 1.17
	  	 Securities Act of 1933.
	  	 	4	  
	 SECTION 1.18
	  	 Shares.
	  	 	5	  
	 ARTICLE 2.
	  	 FORM OF RECEIPTS, DEPOSIT OF SHARES, DELIVERY, TRANSFER AND SURRENDER OF AMERICAN DEPOSITARY SHARES
	  	 	5	  
	 SECTION 2.01
	  	 Form of Receipts; Registration and Transferability of American Depositary Shares.
	  	 	5	  
	 SECTION 2.02
	  	 Deposit of Shares.
	  	 	6	  
	 SECTION 2.03
	  	 Delivery of American Depositary Shares.
	  	 	7	  
	 SECTION 2.04
	  	 Registration of Transfer of American Depositary Shares; Combination and Split-up of Receipts; Interchange of Certificated and
Uncertificated American Depositary Shares.
	  	 	7	  
	 SECTION 2.05
	  	 Surrender of American Depositary Shares and Withdrawal of Deposited Securities.
	  	 	8	  
	 SECTION 2.06
	  	 Limitations on Delivery, Transfer and Surrender of American Depositary Shares.
	  	 	9	  
	 SECTION 2.07
	  	 Lost Receipts, etc.
	  	 	10	  
	 SECTION 2.08
	  	 Cancellation and Destruction of Surrendered Receipts.
	  	 	10	  
	 SECTION 2.09
	  	 Pre-Release of American Depositary Shares.
	  	 	11	  

  
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	 SECTION 2.10
	  	 DTC Direct Registration System and Profile Modification System.
	  	 	11	  
			
	 ARTICLE 3.
	  	 CERTAIN OBLIGATIONS OF OWNERS AND HOLDERS OF AMERICAN DEPOSITARY SHARES
	  	 	12	  
	 SECTION 3.01
	  	 Filing Proofs, Certificates and Other Information.
	  	 	12	  
	 SECTION 3.02
	  	 Liability of Owner for Taxes.
	  	 	12	  
	 SECTION 3.03
	  	 Warranties on Deposit of Shares.
	  	 	12	  
			
	 ARTICLE 4.
	  	 THE DEPOSITED SECURITIES
	  	 	13	  
	 SECTION 4.01
	  	 Cash Distributions.
	  	 	13	  
	 SECTION 4.02
	  	 Distributions Other Than Cash, Shares or Rights.
	  	 	14	  
	 SECTION 4.03
	  	 Distributions in Shares.
	  	 	14	  
	 SECTION 4.04
	  	 Rights.
	  	 	15	  
	 SECTION 4.05
	  	 Conversion of Foreign Currency.
	  	 	17	  
	 SECTION 4.06
	  	 Fixing of Record Date.
	  	 	17	  
	 SECTION 4.07
	  	 Voting of Deposited Securities.
	  	 	18	  
	 SECTION 4.08
	  	 Changes Affecting Deposited Securities.
	  	 	19	  
	 SECTION 4.09
	  	 Reports.
	  	 	19	  
	 SECTION 4.10
	  	 Lists of Owners.
	  	 	19	  
	 SECTION 4.11
	  	 Withholding.
	  	 	20	  
			
	 ARTICLE 5.
	  	 THE DEPOSITARY, THE CUSTODIANS AND THE COMPANY
	  	 	20	  
	 SECTION 5.01
	  	 Maintenance of Office and Transfer Books by the Depositary.
	  	 	20	  
	 SECTION 5.02
	  	 Prevention or Delay in Performance by the Depositary or the Company.
	  	 	21	  
	 SECTION 5.03
	  	 Obligations of the Depositary, the Custodian and the Company.
	  	 	21	  
	 SECTION 5.04
	  	 Resignation and Removal of the Depositary.
	  	 	22	  
	 SECTION 5.05
	  	 The Custodians.
	  	 	23	  
	 SECTION 5.06
	  	 Notices and Reports.
	  	 	24	  
	 SECTION 5.07
	  	 Distribution of Additional Shares, Rights, etc.
	  	 	24	  
	 SECTION 5.08
	  	 Indemnification.
	  	 	25	  
	 SECTION 5.09
	  	 Charges of Depositary.
	  	 	26	  
	 SECTION 5.10
	  	 Retention of Depositary Documents.
	  	 	27	  
	 SECTION 5.11
	  	 Exclusivity.
	  	 	28	  
	 SECTION 5.12
	  	 List of Restricted Securities Owners.
	  	 	28	  
			
	 ARTICLE 6.
	  	 AMENDMENT AND TERMINATION
	  	 	28	  

  
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	 SECTION 6.01
	  	 Amendment.
	  	 	28	  
	 SECTION 6.02
	  	 Termination.
	  	 	28	  
			
	 ARTICLE 7.
	  	 MISCELLANEOUS
	  	 	29	  
	 SECTION 7.01
	  	 Counterparts.
	  	 	29	  
	 SECTION 7.02
	  	 No Third Party Beneficiaries.
	  	 	30	  
	 SECTION 7.03
	  	 Severability.
	  	 	30	  
	 SECTION 7.04
	  	 Owners and Holders as Parties; Binding Effect.
	  	 	30	  
	 SECTION 7.05
	  	 Notices.
	  	 	30	  
	 SECTION 7.06
	  	 Submission to Jurisdiction; Appointment of Agent for Service of Process; Jury Trial Waiver.
	  	 	31	  
	 SECTION 7.07
	  	 Waiver of Immunities.
	  	 	32	  
	 SECTION 7.08
	  	 Governing Law.
	  	 	33	  

  
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 DEPOSIT AGREEMENT 
 DEPOSIT AGREEMENT dated as of             , 2011 among SEQUANS COMMUNICATIONS S.A., a société anonyme incorporated under
the laws of The Republic of France (herein called the Company), THE BANK OF NEW YORK MELLON, a New York banking corporation (herein called the Depositary), and all Owners (as hereinafter defined) and Holders (as hereinafter defined) from time to
time of American Depositary Shares issued hereunder. 
 W I T N E S S E T H: 

WHEREAS, the Company desires to provide, as hereinafter set forth in this Deposit Agreement (as hereinafter defined), for the deposit of
Shares (as hereinafter defined) of the Company from time to time with the Depositary or with the Custodian (as hereinafter defined) as agent of the Depositary for the purposes set forth in this Deposit Agreement, for the creation of American
Depositary Shares (as hereinafter defined) representing the Shares so deposited and for the execution and delivery of American Depositary Receipts (as hereinafter defined) evidencing the American Depositary Shares; and 

WHEREAS, the American Depositary Receipts are to be substantially in the form of Exhibit A annexed hereto, with appropriate insertions,
modifications and omissions, as hereinafter provided in this Deposit Agreement; 
 NOW, THEREFORE, in consideration of the
premises, it is agreed by and between the parties hereto as follows: 
  

	ARTICLE 1.	DEFINITIONS 

 The following
definitions shall for all purposes, unless otherwise clearly indicated, apply to the respective terms used in this Deposit Agreement: 
 SECTION 1.01 American Depositary Shares. 
 The term “American
Depositary Shares” shall mean the securities created under this Deposit Agreement representing rights with respect to the Deposited Securities. American Depositary Shares may be certificated securities evidenced by Receipts or uncertificated
securities. The form of Receipt annexed as Exhibit A to this Deposit Agreement shall be the prospectus required under the Securities Act of 1933 for sales of both certificated and uncertificated American Depositary Shares. Except for those
provisions of this Deposit Agreement that refer specifically to Receipts, all the provisions of this Deposit Agreement shall apply to both certificated and uncertificated American Depositary Shares. Each American Depositary Share shall represent the
number of Shares specified in Exhibit A to this Deposit Agreement, until there shall 

  
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occur a distribution upon Deposited Securities covered by Section 4.03 or a change in Deposited Securities covered by Section 4.08 with respect to which additional American 

Depositary Shares are not delivered, and thereafter American Depositary Shares shall represent the amount of Shares or Deposited Securities specified in
such Sections. 
 SECTION 1.02 Commission. 
 The term “Commission” shall mean the Securities and Exchange Commission of the United States or any successor governmental agency in the United States. 

SECTION 1.03 Company. 
 The term “Company” shall mean Sequans Communications S.A., a société anonyme incorporated under the laws of The Republic of France, and its successors. 

SECTION 1.04 Custodian. 
 The term “Custodian” shall mean the principal Paris office of Société Générale, as agent of the Depositary for the purposes of this Deposit Agreement, and any other
firm or corporation which may hereafter be appointed by the Depositary pursuant to the terms of Section 5.05, as substitute or additional custodian or custodians hereunder, as the context shall require and shall also mean all of them
collectively. 
 SECTION 1.05 Deliver; Surrender. 

(a) The term “deliver”, or its noun form, when used with respect to Shares or other Deposited Securities, shall mean
(i) book-entry transfer of those Shares or other Deposited Securities to an account maintained by an institution authorized under applicable law to effect transfers of such securities designated by the person entitled to that delivery or
(ii) physical transfer of certificates evidencing those Shares or other Deposited Securities registered in the name of, or duly endorsed or accompanied by proper instruments of transfer to, the person entitled to that delivery. 

(b) The term “deliver”, or its noun form, when used with respect to American Depositary Shares, shall mean (i) book-entry
transfer of American Depositary Shares to an account at DTC designated by the person entitled to such delivery, evidencing American Depositary Shares registered in the name requested by that person, (ii) registration of American Depositary
Shares not evidenced by a Receipt on the books of the Depositary in the name requested by the person entitled to such delivery and mailing to that person of a statement confirming that registration or (iii) if requested by the person entitled
to such delivery, delivery at the Corporate Trust Office of the Depositary to the person entitled to such delivery of one or more Receipts. 

  
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 (c) The term “surrender”, or its noun form, when used with respect to American
Depositary Shares, shall mean (i) one or more book-entry transfers of American Depositary Shares to the DTC account of the Depositary, (ii) delivery to the Depositary at its Corporate Trust Office of an instruction to surrender American
Depositary Shares not evidenced by a Receipt or (iii) surrender to the Depositary at its Corporate Trust Office of one or more Receipts evidencing American Depositary Shares. 

SECTION 1.06 Deposit Agreement. 
 The term “Deposit Agreement” shall mean this Deposit Agreement, including the Exhibit hereto, as the same may be amended from time to time in accordance with the provisions hereof. 

SECTION 1.07 Depositary; Corporate Trust Office. 
 The term “Depositary” shall mean The Bank of New York Mellon, a New York banking corporation, and any successor as depositary hereunder. The term “Corporate Trust Office”, when used
with respect to the Depositary, shall mean the office of the Depositary which at the date of this Deposit Agreement is 101 Barclay Street, New York, New York 10286. 
 SECTION 1.08 Deposited Securities. 
 The term “Deposited
Securities” as of any time shall mean Shares at such time deposited or deemed to be deposited under this Deposit Agreement, including without limitation Shares that have not been successfully delivered upon surrender of American Depositary
Shares, and any and all other securities, property and cash received by the Depositary or the Custodian in respect thereof and at such time held under this Deposit Agreement, subject as to cash to the provisions of Section 4.05. 

SECTION 1.09 Dollars. 
 The term “Dollars” shall mean United States dollars. 
 SECTION 1.10
DTC. 
 The term “DTC” shall mean The Depository Trust Company or its successor. 

SECTION 1.11 Foreign Registrar. 
 The term “Foreign Registrar” shall mean the entity that presently carries out the duties of registrar for the Shares or any successor as registrar for the Shares and any other appointed agent of
the Company for the transfer and registration of Shares, including without limitation any securities depository for the Shares. 

  
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 SECTION 1.12 Holder. 

The term “Holder” shall mean any person holding a Receipt or a security entitlement or other interest in American Depositary
Shares, whether for its own account or for the account of another person, but that is not the Owner of that Receipt or those American Depositary Shares. 
 SECTION 1.13 Owner. 
 The term “Owner” shall mean the person in
whose name American Depositary Shares are registered on the books of the Depositary maintained for such purpose. 
 SECTION 1.14
Receipts. 
 The term “Receipts” shall mean the American Depositary Receipts issued hereunder evidencing
certificated American Depositary Shares, as the same may be amended from time to time in accordance with the provisions hereof. 

SECTION 1.15 Registrar. 
 The term “Registrar” shall mean any bank or trust company having an office in the Borough of Manhattan, The City of New York, that is appointed by the Depositary to register American Depositary
Shares and transfers of American Depositary Shares as herein provided. 
 SECTION 1.16 Restricted Securities. 

The term “Restricted Securities” shall mean Shares, or American Depositary Shares representing Shares, that are acquired
directly or indirectly from the Company or its affiliates (as defined in Rule 144 under the Securities Act of 1933) in a transaction or chain of transactions not involving any public offering, or that are subject to resale limitations under
Regulation D under the Securities Act of 1933 or both, or which are held by an officer, director (or persons performing similar functions) or other affiliate of the Company, or that would require registration under the Securities Act of 1933 in
connection with the offer and sale thereof in the United States, or that are subject to other restrictions on sale or deposit under the laws of the United States or The Republic of France, or under a shareholder agreement or the statuts of
the Company or similar document of the Company. 
 SECTION 1.17 Securities Act of 1933. 

The term “Securities Act of 1933” shall mean the United States Securities Act of 1933, as from time to time amended. 

  
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 SECTION 1.18 Shares. 

The term “Shares” shall mean ordinary shares of the Company that are validly issued and outstanding and fully paid,
nonassessable and that were not issued in violation of any pre-emptive or similar rights of the holders of outstanding securities of the Company; provided, however, that, if there shall occur any change in nominal value, a split-up or
consolidation or any other reclassification or, upon the occurrence of an event described in Section 4.08, an exchange or conversion in respect of the Shares of the Company, the term “Shares” shall thereafter also mean the successor
securities resulting from such change in nominal value, split-up or consolidation or such other reclassification or such exchange or conversion. 
  

	ARTICLE 2.	FORM OF RECEIPTS, DEPOSIT OF SHARES, DELIVERY, TRANSFER AND SURRENDER OF AMERICAN DEPOSITARY SHARES 

SECTION 2.01 Form of Receipts; Registration and Transferability of American Depositary Shares. 

Definitive Receipts shall be substantially in the form set forth in Exhibit A annexed to this Deposit Agreement, with appropriate
insertions, modifications and omissions, as hereinafter provided. No Receipt shall be entitled to any benefits under this Deposit Agreement or be valid or obligatory for any purpose, unless such Receipt shall have been (i) executed by the
Depositary by the manual signature of a duly authorized officer of the Depositary or (ii) executed by the facsimile signature of a duly authorized officer of the Depositary and countersigned by the manual signature of a duly authorized
signatory of the Depositary or a Registrar. The Depositary shall maintain books on which (x) each Receipt so executed and delivered as hereinafter provided and the transfer of each such Receipt shall be registered and (y) all American
Depositary Shares delivered as hereinafter provided and all registrations of transfer of American Depositary Shares shall be registered. A Receipt bearing the facsimile signature of a person that was at any time a proper officer of the Depositary
shall, subject to the other provisions of this paragraph, bind the Depositary, notwithstanding that such person was not a proper officer of the Depositary on the date of issuance of that Receipt. 

The Receipts may be endorsed with or have incorporated in the text thereof such legends or recitals or modifications not inconsistent
with the provisions of this Deposit Agreement or with any provision of the Company’s statuts or French law as may be reasonably required by the Depositary or required to comply with any applicable law or regulations thereunder or with
the rules and regulations of any securities exchange upon which American Depositary Shares may be listed or to conform with any usage with respect thereto, or to indicate any special limitations or restrictions to which any particular Receipts are
subject by reason of the date of issuance of the underlying Deposited Securities or otherwise. 

  
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 American Depositary Shares evidenced by a Receipt, when properly endorsed or accompanied by
proper instruments of transfer, shall be transferable as certificated registered securities under the laws of the State of New York. American Depositary Shares not evidenced by Receipts shall be transferable as uncertificated registered securities
under the laws of the State of New York. The Depositary and the Company, notwithstanding any notice to the contrary, may treat the Owner of American Depositary Shares as the absolute owner thereof for the purpose of determining the person entitled
to any distribution of dividends or other distributions or to any notice provided for in this Deposit Agreement and for all other purposes, and neither the Depositary nor the Company shall have any obligation or be subject to any liability under
this Deposit Agreement to any Holder of American Depositary Shares (but only to the Owner of those American Depositary Shares). 

SECTION 2.02 Deposit of Shares. 
 Subject to the terms and conditions of this Deposit Agreement, Shares or evidence of rights to receive Shares may be deposited by delivery thereof to any Custodian hereunder, accompanied by any
appropriate instruments or instructions for transfer, or endorsement, in form satisfactory to the Custodian, together with all such certifications as may be required by the Depositary or the Custodian in accordance with the provisions of this
Deposit Agreement, and, if the Depositary requires, together with a written order directing the Depositary to deliver to, or upon the written order of, the person or persons stated in such order, the number of American Depositary Shares representing
such deposit. 
 No Share shall be accepted for deposit unless accompanied by evidence satisfactory to the Depositary that any
necessary approval has been granted by any governmental body in The Republic of France, if any, that is then performing the function of the regulation of currency exchange or that has jurisdiction over foreign investment or regulates foreign
ownership of French companies. If required by the Depositary, Shares presented for deposit at any time, whether or not the transfer books of the Company or the Foreign Registrar, if applicable, are closed, shall also be accompanied by an agreement
or assignment, or other instrument satisfactory to the Depositary, which will provide for the prompt transfer to the Custodian of any dividend, or right to subscribe for additional Shares or to receive other property which any person in whose name
the Shares are or have been recorded may thereafter receive upon or in respect of such deposited Shares, or in lieu thereof, such agreement of indemnity or other agreement as shall be satisfactory to the Depositary. 

At the request and risk and expense of any person proposing to deposit Shares, and for the account of such person, the Depositary may
receive certificates for Shares to be deposited, together with the other instruments herein specified, for the purpose of forwarding such Share certificates to the Custodian for deposit hereunder. 

  
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 Upon each delivery to a Custodian of a certificate or certificates for Shares to be
deposited hereunder, together with the other documents specified above, such Custodian shall, as soon as transfer and recordation can be accomplished, present such certificate or certificates to the Company or the Foreign Registrar, if applicable,
for transfer and recordation of the Shares being deposited in the name of the Depositary or its nominee or such Custodian or its nominee. 
 Deposited Securities shall be held by the Depositary or by a Custodian for the account and to the order of the Depositary or at such other place or places as the Depositary shall determine. 

SECTION 2.03 Delivery of American Depositary Shares. 
 Upon receipt by any Custodian of any deposit pursuant to Section 2.02 hereunder, together with the other documents required as specified above, such Custodian shall notify the Depositary of such
deposit and the person or persons to whom or upon whose written order American Depositary Shares are deliverable in respect thereof and the number of American Depositary Shares to be so delivered. Such notification shall be made by letter or, at the
request, risk and expense of the person making the deposit, by cable, telex or facsimile transmission (and, in addition, if the transfer books of the Company or the Foreign Registrar, if applicable, are open, the Depositary may in its sole
discretion require a proper acknowledgment or other evidence from the Company or the Foreign Registrar that any Deposited Securities have been recorded upon the books of the Company or the Foreign Registrar, if applicable, in the name of the
Depositary or its nominee or such Custodian or its nominee). Upon receiving such notice from such Custodian, or upon the receipt of Shares or evidence of the right to receive Shares by the Depositary, the Depositary, subject to the terms and
conditions of this Deposit Agreement, shall deliver, to or upon the order of the person or persons entitled thereto, the number of American Depositary Shares issuable in respect of that deposit, but only upon payment to the Depositary of the fees
and expenses of the Depositary for the delivery of such American Depositary Shares as provided in Section 5.09, and of all taxes and governmental charges and fees payable in connection with such deposit and the transfer of the Deposited
Securities. 
 SECTION 2.04 Registration of Transfer of American Depositary Shares; Combination and Split-up of Receipts;
Interchange of Certificated and Uncertificated American Depositary Shares. 
 The Depositary, subject to the terms and
conditions of this Deposit Agreement, shall register transfers of American Depositary Shares on its transfer books from time to time, upon (i) in the case of certificated American Depositary Shares, surrender of the Receipt evidencing those
American Depositary Shares, by the Owner in person or by a duly authorized attorney, properly endorsed or accompanied by proper instruments of transfer or (ii) in the case of uncertificated American Depositary Shares, receipt from the Owner of
a proper instruction (including, for the avoidance of doubt, 

  
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instructions through DRS and Profile as provided in Section 2.10), and, in either case, duly stamped as may be required by the laws of the State of New York and of the United States of
America. Thereupon the Depositary shall deliver those American Depositary Shares to or upon the order of the person entitled thereto. 
 The Depositary, subject to the terms and conditions of this Deposit Agreement, shall upon surrender of a Receipt or Receipts for the purpose of effecting a split-up or combination of such Receipt or
Receipts, execute and deliver a new Receipt or Receipts for any authorized number of American Depositary Shares requested, evidencing the same aggregate number of American Depositary Shares as were evidenced by the Receipt or Receipts surrendered.

 The Depositary, upon surrender of certificated American Depositary Shares for the purpose of exchanging for uncertificated
American Depositary Shares, shall cancel those certificated American Depositary Shares and send the Owner a statement confirming that the Owner is the owner of a number of uncertificated American Depositary Shares equal to the number of certificated
American Depositary Shares that were surrendered. The Depositary, upon receipt of a proper instruction (including, instructions through DRS and Profile as provided in Section 2.10) from the Owner of uncertificated American Depositary Shares for
the purpose of exchanging for certificated American Depositary Shares, shall cancel those uncertificated American Depositary Shares and deliver to the Owner the same number of certificated American Depositary Shares. 

The Depositary may appoint one or more co-transfer agents for the purpose of effecting registration of transfers of American Depositary
Shares and combinations and split-ups of Receipts at designated transfer offices on behalf of the Depositary. In carrying out its functions, a co-transfer agent may require evidence of authority and compliance with applicable laws and other
requirements by Owners or persons entitled to American Depositary Shares and will be entitled to protection and indemnity to the same extent as the Depositary. 
 SECTION 2.05 Surrender of American Depositary Shares and Withdrawal of Deposited Securities. 
 Upon surrender at the Corporate Trust Office of the Depositary of American Depositary Shares for the purpose of withdrawal of the Deposited Securities represented thereby, and upon payment of the fee of
the Depositary for the surrender of American Depositary Shares as provided in Section 5.09 and payment of all taxes and governmental charges payable in connection with such surrender and withdrawal of the Deposited Securities, and subject to
the terms and conditions of this Deposit Agreement and the Company’s statuts, the Owner of those American Depositary Shares shall be entitled to delivery, to him or as instructed, of the amount of Deposited Securities at the time
represented by those American Depositary Shares. Such delivery shall be made, as hereinafter provided, without unreasonable delay. 

  
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 A Receipt surrendered for such purposes may be required by the Depositary to be properly
endorsed in blank or accompanied by proper instruments of transfer in blank. The Depositary may require the surrendering Owner to execute and deliver to the Depositary a written order directing the Depositary to cause the Deposited Securities being
withdrawn to be delivered to or upon the written order of a person or persons designated in such order. 
 Thereupon, the
Depositary shall direct the Custodian to deliver at the office of such Custodian, subject to Sections 2.06, 3.01 and 3.02 and to the other terms and conditions of this Deposit Agreement and the Company’s statuts, to or upon the written
order of the person or persons designated in the order delivered to the Depositary as above provided, the amount of Deposited Securities represented by the surrendered American Depositary Shares, except that the Depositary may make delivery to such
person or persons at the Corporate Trust Office of the Depositary of any dividends or distributions with respect to the Deposited Securities represented by those American Depositary Shares, or of any proceeds of sale of any dividends, distributions
or rights, which may at the time be held by the Depositary. 
 At the request, risk and expense of any Owner so surrendering
American Depositary Shares, and for the account of such Owner, the Depositary shall direct the Custodian to forward any cash or other property (other than rights) comprising, and forward a certificate or certificates, if applicable, and other proper
documents of title for, the Deposited Securities represented by the surrendered American Depositary Shares to the Depositary for delivery at the Corporate Trust Office of the Depositary. Such direction shall be given by letter or, at the request,
risk and expense of such Owner, by cable, telex or facsimile transmission. 
 SECTION 2.06 Limitations on Delivery, Transfer
and Surrender of American Depositary Shares. 
 As a condition precedent to the delivery, registration of transfer or
surrender of any American Depositary Shares or split-up or combination of any Receipt or withdrawal of any Deposited Securities, the Depositary, Custodian or Registrar may require payment from the depositor of Shares or the presenter of the Receipt
or instruction for registration of transfer or surrender of American Depositary Shares not evidenced by a Receipt of a sum sufficient to reimburse it for any tax or other governmental charge and any stock transfer or registration fee with respect
thereto (including any such tax or charge and fee with respect to Shares being deposited or withdrawn) and payment of any applicable fees as herein provided, may require the production of proof satisfactory to it as to the identity and genuineness
of any signature and may also require compliance with any regulations the Depositary may establish consistent with the provisions of this Deposit Agreement, including, without limitation, this Section 2.06. 

  
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 The delivery of American Depositary Shares against deposit of Shares generally or against
deposit of particular Shares may be suspended, or the transfer of American Depositary Shares in particular instances may be refused, or the registration of transfer of outstanding American Depositary Shares generally may be suspended, during any
period when the transfer books of the Depositary are closed, or if any such action is deemed necessary or advisable by the Depositary or the Company at any time or from time to time because of any requirement of law or of any government or
governmental body or commission, or under any provision of this Deposit Agreement, or for any other reason, subject to the provisions of the following sentence. Notwithstanding anything to the contrary in this Deposit Agreement, the surrender of
outstanding American Depositary Shares and withdrawal of Deposited Securities may not be suspended subject only to (i) temporary delays caused by closing the transfer books of the Depositary or the Company or the Foreign Registrar, if
applicable, or the deposit of Shares in connection with voting at a shareholders’ meeting, or the payment of dividends, (ii) the payment of fees, taxes and similar charges, and (iii) compliance with any U.S. or foreign laws or
governmental regulations relating to the American Depositary Shares or to the withdrawal of the Deposited Securities. Without limitation of the foregoing, the Depositary shall not knowingly accept for deposit under this Deposit Agreement any Shares
which would be required to be registered under the provisions of the Securities Act of 1933 for public offer and sale in the United States unless a registration statement is in effect as to such Shares for such offer and sale. The Depositary will
comply with reasonable written instructions from the Company requesting that the Depositary not accept for deposit hereunder any Shares or rights identified in such instructions in order to facilitate the Company’s compliance with U.S. State
and Federal Securities laws or the laws of The Republic of France. 
 SECTION 2.07 Lost Receipts, etc. 

In case any Receipt shall be mutilated, destroyed, lost or stolen, the Depositary shall deliver to the Owner the American Depositary
Shares evidenced by that Receipt in uncertificated form or, if requested by the Owner, execute and deliver a new Receipt of like tenor in exchange and substitution for such mutilated Receipt, upon cancellation thereof, or in lieu of and in
substitution for such destroyed, lost or stolen Receipt. Before the Depositary shall deliver American Depositary Shares in uncertificated form or execute and deliver a new Receipt, in substitution for a destroyed, lost or stolen Receipt, the Owner
thereof shall have (a) filed with the Depositary (i) a request for such execution and delivery before the Depositary has notice that the Receipt has been acquired by a bona fide purchaser and (ii) a sufficient indemnity bond and
(b) satisfied any other reasonable requirements imposed by the Depositary. 
 SECTION 2.08 Cancellation and Destruction
of Surrendered Receipts. 
 All Receipts surrendered to the Depositary shall be cancelled by the Depositary. The Depositary
is authorized to destroy Receipts so cancelled. 

  
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 SECTION 2.09 Pre-Release of American Depositary Shares. 

Notwithstanding Section 2.03 hereof, the Depositary may deliver American Depositary Shares prior to the receipt of Shares pursuant to
Section 2.02 (a “Pre-Release”). The Depositary may, pursuant to Section 2.05, deliver Shares upon the surrender of American Depositary Shares that have been Pre-Released, whether or not such cancellation is prior to the
termination of such Pre-Release or the Depositary knows that such American Depositary Shares have been Pre-Released. The Depositary may receive American Depositary Shares in lieu of Shares in satisfaction of a Pre-Release. Each Pre-Release will be
(a) preceded or accompanied by a written representation from the person to whom American Depositary Shares or Shares are to be delivered, that such person, or its customer, owns the Shares or American Depositary Shares to be remitted, as the
case may be, (b) at all times fully collateralized with cash or such other collateral as the Depositary determines, in good faith, to be appropriate, (c) terminable by the Depositary on not more than five (5) business days notice, and
(d) subject to such further indemnities and credit regulations as the Depositary deems appropriate. The number of Shares represented by American Depositary Shares that are outstanding at any time as a result of Pre-Release will not normally
exceed thirty percent (30%) of the Shares deposited hereunder; provided, however, that the Depositary reserves the right to change or disregard such limit from time to time as it deems reasonably appropriate. 

The Depositary may retain for its own account any compensation received by it in connection with the foregoing. 

SECTION 2.10 DTC Direct Registration System and Profile Modification System. 

(a) Notwithstanding the provisions of Section 2.04, the parties acknowledge that the Direct Registration System (“DRS”) and
Profile Modification System (“Profile”) shall apply to uncertificated American Depositary Shares upon acceptance thereof to DRS by DTC. DRS is the system administered by DTC pursuant to which the Depositary may register the ownership of
uncertificated American Depositary Shares, which ownership shall be evidenced by periodic statements issued by the Depositary to the Owners entitled thereto. Profile is a required feature of DRS which allows a DTC participant, claiming to act on
behalf of an Owner of American Depositary Shares, to direct the Depositary to register a transfer of those American Depositary Shares to DTC or its nominee and to deliver those American Depositary Shares to the DTC account of that DTC participant
without receipt by the Depositary of prior authorization from the Owner to register such transfer. 
 (b) In connection with and
in accordance with the arrangements and procedures relating to DRS/Profile, the parties understand that the Depositary will not verify, determine or otherwise ascertain that the DTC participant which is claiming to be acting on behalf of an Owner in
requesting a registration of transfer and delivery as described in subsection (a) has the actual authority to act on behalf of the Owner 

  
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(notwithstanding any requirements under the Uniform Commercial Code as in effect in the State of New York). For the avoidance of doubt, the provisions of Sections 5.03 and 5.08 shall apply to the
matters arising from the use of the DRS. The parties agree that the Depositary’s reliance on and compliance with instructions received by the Depositary through the DRS/Profile System and in accordance with this Deposit Agreement shall not
constitute negligence or bad faith on the part of the Depositary. 
  

	ARTICLE 3.	CERTAIN OBLIGATIONS OF OWNERS AND HOLDERS OF AMERICAN DEPOSITARY SHARES 

 SECTION 3.01 Filing Proofs, Certificates and Other Information. 
 Any person
presenting Shares for deposit or any Owner or Holder may be required from time to time to file with the Depositary or the Custodian such proof of citizenship or residence, exchange control approval, payment of applicable French or other taxes or
governmental charges or legal or beneficial ownership or such information relating to the registration on the books of the Company or the Foreign Registrar, if applicable, to execute such certificates and to make such representations and warranties,
as the Depositary may deem necessary or proper or as the Company may reasonably require upon written request to the Depositary. The Depositary may withhold the delivery or registration of transfer of American Depositary Shares or the distribution of
any dividend or sale or distribution of rights or of the proceeds thereof or the delivery of any Deposited Securities until such proof or other information is filed or such certificates are executed or such representations and warranties made.

 SECTION 3.02 Liability of Owner for Taxes. 
 If any tax or other governmental charge shall become payable by the Custodian or the Depositary with respect to any American Depositary Shares or any Deposited Securities represented by any American
Depositary Shares, such tax or other governmental charge shall be payable by the Owner of such American Depositary Shares to the Depositary. The Depositary may refuse to register any transfer of those American Depositary Shares or any withdrawal of
Deposited Securities represented by those American Depositary Shares until such payment is made, and may withhold any dividends or other distributions, or may sell for the account of the Owner thereof any part or all of the Deposited Securities
represented by those American Depositary Shares, and may apply such dividends or other distributions or the proceeds of any such sale in payment of such tax or other governmental charge and the Owner of such American Depositary Shares shall remain
liable for any deficiency. 
 SECTION 3.03 Warranties on Deposit of Shares. 

Every person depositing Shares under this Deposit Agreement shall be deemed thereby to represent and warrant that such Shares and each
certificate therefor, if applicable, are validly issued, fully paid, nonassessable and free of any preemptive rights 

  
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of the holders of outstanding Shares and that the person making such deposit is duly authorized so to do. Every such person shall also be deemed to represent that the deposit of such Shares and
the sale of American Depositary Shares representing such Shares by that person are not restricted under the Securities Act of 1933. Such representations and warranties shall survive the deposit of Shares and delivery of American Depositary Shares.

 SECTION 3.04 Disclosure of Interests. 
 Notwithstanding any other provisions of this Deposit Agreement, each Owner and Holder of American Depositary Shares agrees to comply with the Company’s statuts, as they may be amended from
time to time, and the laws of the Republic of France, if applicable, with respect to the disclosure requirements regarding ownership of Shares, as if the American Depositary Shares were, for this purpose, the amount of Shares they represent.

 In order to facilitate compliance with the notification requirements, an Owner or Holder of American Depositary Shares may
deliver any notification to the Depositary with respect to the amount of Shares represented thereby, and the Depositary shall, as promptly as practicable, forward that notification to the Company and, if applicable, the Société des
Bourses Françaises or any other authorities in the Republic of France. 
  

	ARTICLE 4.	THE DEPOSITED SECURITIES 

SECTION 4.01 Cash Distributions. 
 Whenever the Depositary shall receive any cash dividend or other cash distribution on any Deposited Securities, the Depositary shall, as promptly as practicable after its receipt of such dividend or
distribution, subject to the provisions of Section 4.05, convert such dividend or distribution into Dollars and shall, as promptly as possible, distribute the amount thus received (net of the fees and expenses of the Depositary as provided in
Section 5.09) to the Owners entitled thereto, in proportion to the number of American Depositary Shares representing such Deposited Securities held by them respectively; provided, however, that in the event that the Custodian or
the Depositary shall be required to withhold and does withhold from such cash dividend or such other cash distribution an amount on account of taxes or other governmental charges, the amount distributed to the Owner of the American Depositary Shares
representing such Deposited Securities shall be reduced accordingly. The Depositary shall distribute only such amount, however, as can be distributed without attributing to any Owner a fraction of one cent. Any such fractional amounts shall be
rounded to the nearest whole cent and so distributed to Owners entitled thereto. The Company or its agent will remit to the appropriate governmental agency in each applicable jurisdiction all amounts withheld and owing to such agency. The Depositary
will forward to the Company or its agent such information from its records as the Company may reasonably request to enable the 

  
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Company or its agent to file necessary reports with governmental agencies, and the Depositary or the Company or its agent may file any such reports necessary to obtain benefits under the
applicable tax treaties for the Owners. 
 SECTION 4.02 Distributions Other Than Cash, Shares or Rights. 

Subject to the provisions of Sections 4.11 and 5.09, whenever the Depositary shall receive any distribution other than a distribution
described in Section 4.01, 4.03 or 4.04, the Depositary shall cause the securities or property received by it to be distributed to the Owners entitled thereto, as of the record date fixed pursuant to Section 4.06, after deduction or upon
payment of any fees and expenses of the Depositary or any taxes or other governmental charges, in proportion to the number of American Depositary Shares representing such Deposited Securities held by them respectively, in any manner that the
Depositary, after consultation with the Company to the extent practicable, may deem equitable and practicable for accomplishing such distribution; provided, however, that if in the opinion of the Depositary such distribution cannot be
made proportionately among the Owners entitled thereto, or if for any other reason (including, but not limited to, any requirement that the Company or the Depositary withhold an amount on account of taxes or other governmental charges or that such
securities must be registered under the Securities Act of 1933 in order to be distributed to Owners or Holders) the Depositary deems such distribution not to be feasible, the Depositary may, after consultation with the Company to the extent
practicable, adopt such method as it may deem equitable and practicable for the purpose of effecting such distribution, including, but not limited to, the public or private sale of the securities or property thus received, or any part thereof, and
the net proceeds of any such sale (net of the fees and expenses of the Depositary as provided in Section 5.09) shall be distributed by the Depositary to the Owners entitled thereto, all in the manner and subject to the conditions described in
Section 4.01. The Depositary may withhold any distribution of securities under this Section 4.02 if it has not received satisfactory assurances from the Company that the distribution does not require registration under the Securities Act
of 1933. The Depositary may sell, by public or private sale, an amount of securities or other property it would otherwise distribute under this Section 4.02 that is sufficient to pay its fees and expenses in respect of that distribution.

 SECTION 4.03 Distributions in Shares. 
 If any distribution upon any Deposited Securities consists of a dividend in, or free distribution of, Shares, the Depositary may, and shall if the Company shall so request in writing, deliver to the
Owners entitled thereto, in proportion to the number of American Depositary Shares representing such Deposited Securities held by them respectively, an aggregate number of American Depositary Shares representing the amount of Shares received as such
dividend or free distribution, subject to the terms and conditions of the Deposit Agreement with respect to the deposit of Shares and issuance of American Depositary Shares, including withholding of any tax or governmental charge as

  
 -14-

 
provided in Section 4.11 and deduction or and after deduction or upon payment of the fees and expenses of the Depositary as provided in Section 5.09 (and the Depositary may sell, by
public or private sale, an amount of the Shares received sufficient to pay its fees and expenses in respect of that distribution). The Depositary may withhold any such delivery of American Depositary Shares if it has not received satisfactory
assurances from the Company that such distribution does not require registration under the Securities Act of 1933. In lieu of delivering fractional American Depositary Shares in any such case, the Depositary shall sell the amount of Shares
represented by the aggregate of such fractions and distribute the net proceeds, all in the manner and subject to the conditions described in Section 4.01. If additional American Depositary Shares are not so delivered, each American Depositary
Share shall thenceforth also represent the additional Shares distributed upon the Deposited Securities represented thereby. 

SECTION 4.04 Rights. 
 In the event that the Company shall offer or cause to be offered to the holders of any Deposited Securities any rights to subscribe for additional Shares or any rights of any other nature, the Depositary,
after consultation with the Company, shall have discretion as to the procedure to be followed in making such rights available to any Owners or in disposing of such rights on behalf of any Owners and making the net proceeds available to such Owners
or, if by the terms of such rights offering or for any other reason, the Depositary may not either make such rights available to any Owners or dispose of such rights and make the net proceeds available to such Owners, then the Depositary shall allow
the rights to lapse. If at the time of the offering of any rights the Depositary determines in its discretion that it is lawful and feasible to make such rights available to all or certain Owners but not to other Owners, the Depositary may
distribute to any Owner to whom it determines the distribution to be lawful and feasible, in proportion to the number of American Depositary Shares held by such Owner, warrants or other instruments therefor in such form as it deems appropriate.

 In circumstances in which rights would otherwise not be distributed, if an Owner requests the distribution of warrants or
other instruments in order to exercise the rights allocable to the American Depositary Shares of such Owner hereunder, the Depositary will as promptly as practicable make such rights available to such Owner upon written notice from the Company to
the Depositary that (a) the Company has elected in its sole discretion to permit such rights to be exercised and (b) such Owner has executed such documents as the Company has determined in its sole discretion are reasonably required under
applicable law. 
 If the Depositary has distributed warrants or other instruments for rights to all or certain Owners, then
upon instruction from such an Owner pursuant to such warrants or other instruments to the Depositary from such Owner to exercise such rights, upon payment by such Owner to the Depositary for the account of such Owner of an amount equal to the
purchase price of the Shares to be received upon the exercise of the 

  
 -15-

 
rights, and upon payment of the fees and expenses of the Depositary and any other charges as set forth in such warrants or other instruments, the Depositary shall, on behalf of such Owner,
exercise the rights and purchase the Shares, and the Company shall cause the Shares so purchased to be delivered to the Depositary on behalf of such Owner. As agent for such Owner, the Depositary will cause the Shares so purchased to be deposited
pursuant to Section 2.02 of this Deposit Agreement, and shall, pursuant to Section 2.03 of this Deposit Agreement, deliver American Depositary Shares to such Owner. In the case of a distribution pursuant to the second paragraph of this
Section, such deposit shall be made, and depositary shares shall be delivered, under depositary arrangements which provide for issuance of depositary shares subject to the appropriate restrictions on sale, deposit, cancellation, and transfer under
applicable United States laws. 
 If the Depositary determines in its reasonable judgment that it is not lawful and feasible to
make such rights available to all or certain Owners, it may, and at the request of the Company shall use reasonable efforts to, sell the rights, warrants or other instruments in proportion to the number of American Depositary Shares held by the
Owners to whom it has determined it may not lawfully or feasibly make such rights available, and allocate the net proceeds of such sales (net of the fees and expenses of the Depositary as provided in Section 5.09 and all taxes and governmental
charges payable in connection with such rights and subject to the terms and conditions of this Deposit Agreement) for the account of such Owners otherwise entitled to such rights, warrants or other instruments, upon an averaged or other practical
basis without regard to any distinctions among such Owners because of exchange restrictions or the date of delivery of any American Depositary Shares or otherwise. Such proceeds shall be distributed as promptly as practicable in accordance with
Section 4.01. 
 The Depositary will not offer rights to Owners unless both the rights and the securities to which such
rights relate are either exempt from registration under the Securities Act of 1933 with respect to a distribution to all Owners or are registered under the provisions of such Act; provided, that nothing in this Deposit Agreement shall create
any obligation on the part of the Company to file a registration statement with respect to such rights or underlying securities or to endeavor to have such a registration statement declared effective. If an Owner requests the distribution of
warrants or other instruments, notwithstanding that there has been no such registration under the Securities Act of 1933, the Depositary shall not effect such distribution unless it has received an opinion from recognized counsel in the United
States for the Company upon which the Depositary may rely that such distribution to such Owner is exempt from such registration; provided, however, it is acknowledged and agreed that the Company shall no obligation to furnish any such
opinion to the Depositary. 
 The Depositary shall not be responsible for any failure to determine that it may be lawful or
feasible to make such rights available to Owners in general or any Owner in particular. 

  
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 SECTION 4.05 Conversion of Foreign Currency. 

Whenever the Depositary or the Custodian shall receive foreign currency, by way of dividends or other distributions or the net proceeds
from the sale of securities, property or rights, and if at the time of the receipt thereof the foreign currency so received can in the judgment of the Depositary be converted on a reasonable basis into Dollars and the resulting Dollars transferred
to the United States, the Depositary shall convert or cause to be converted, as promptly as practicable, by sale or in any other manner that it may reasonably determine such foreign currency into Dollars, and such Dollars shall be distributed to the
Owners entitled thereto or, if the Depositary shall have distributed any warrants or other instruments which entitle the holders thereof to such Dollars, then to the holders of such warrants and/or instruments upon surrender thereof for
cancellation. Such distribution may be made upon an averaged or other practicable basis without regard to any distinctions among Owners on account of exchange restrictions, the date of delivery of any American Depositary Shares or otherwise and
shall be net of any expenses of conversion into Dollars incurred by the Depositary as provided in Section 5.09. 
 If such
conversion or distribution can be effected only with the approval or license of any government or agency thereof, the Depositary shall file, as promptly as practicable, such application for approval or license, if any, as it may deem desirable.

 If at any time the Depositary shall determine that in its judgment any foreign currency received by the Depositary or the
Custodian is not convertible on a reasonable basis into Dollars transferable to the United States, or if any approval or license of any government or agency thereof which is required for such conversion is denied or in the opinion of the Depositary
is not obtainable, or if any such approval or license is not obtained within a reasonable period as determined by the Depositary, the Depositary may distribute the foreign currency (or an appropriate document evidencing the right to receive such
foreign currency) received by the Depositary to, or in its discretion may hold such foreign currency uninvested and without liability for interest thereon for the respective accounts of, the Owners entitled to receive the same. 

If any such conversion of foreign currency, in whole or in part, cannot be effected for distribution to some of the Owners entitled
thereto, the Depositary may in its discretion make such conversion and distribution in Dollars to the extent permissible to the Owners entitled thereto and may distribute the balance of the foreign currency received by the Depositary to, or hold
such balance uninvested and without liability for interest thereon for the respective accounts of, the Owners entitled thereto. 

SECTION 4.06 Fixing of Record Date. 
 Whenever any cash dividend or other cash distribution shall become payable or any distribution other than cash shall be made, or whenever rights shall be issued with respect to the Deposited Securities,
or whenever the Depositary shall receive 

  
 -17-

 
notice of any meeting of holders of Shares or other Deposited Securities, or whenever for any reason the Depositary causes a change in the number of Shares that are represented by each American
Depositary Share, or whenever the Depositary shall find it necessary or convenient, the Depositary shall fix a record date, which shall be the same as, or as near as practicable to, the record date, if any established by the Company, (a) for
the determination of the Owners who shall be (i) entitled to receive such dividend, distribution or rights or the net proceeds of the sale thereof, (ii) entitled to give instructions for the exercise of voting rights at any such meeting or
(iii) responsible for any fee or charge assessed by the Depositary pursuant to this Deposit Agreement, or (b) on or after which each American Depositary Share will represent the changed number of Shares. Subject to the provisions of
Sections 4.01 through 4.05 and to the other terms and conditions of this Deposit Agreement, the Owners on such record date shall be entitled, as the case may be, to receive the amount distributable by the Depositary with respect to such dividend or
other distribution or such rights or the net proceeds of sale thereof in proportion to the number of American Depositary Shares held by them respectively and to give voting instructions and to act in respect of any other such matter. 

SECTION 4.07 Voting of Deposited Securities. 
 Upon receipt of notice of any meeting of holders of Shares or other Deposited Securities, if requested in writing by the Company, the Depositary shall, as soon as practicable thereafter, mail to the
Owners a notice, the form of which notice shall be in the sole discretion of the Depositary, which shall contain (a) such information as is contained in such notice of meeting received by the Depositary from the Company, (b) a statement
that the Owners as of the close of business on a specified record date will be entitled, subject to any applicable provision of French law and of the statuts of the Company, to instruct the Depositary as to the exercise of the voting rights,
if any, pertaining to the amount of Shares or other Deposited Securities represented by their respective American Depositary Shares and (c) a statement as to the manner in which such instructions may be given. Upon the written request of an
Owner of American Depositary Shares on such record date, received on or before the date established by the Depositary for such purpose, the Depositary shall endeavor, in so far as practicable, to vote or cause to be voted the amount of Shares or
other Deposited Securities represented by those American Depositary Shares in accordance with the instructions set forth in such request. The Depositary shall not vote or attempt to exercise the right to vote that attaches to the Shares or other
Deposited Securities, other than in accordance with such instructions. 
 There can be no assurance that Owners generally or any
Owner in particular will receive the notice described in the preceding paragraph sufficiently prior to the instruction cutoff date to ensure that the Depositary will vote the Shares or Deposited Securities in accordance with the provisions set forth
in the preceding paragraph. 

  
 -18-

 In order to give Owners a reasonable opportunity to instruct the Depositary as to the
exercise of voting rights relating to Deposited Securities, if the Company will request the Depositary to act under this Section 4.07, the Company shall give the Depositary notice of any such meeting and details concerning the matters to be
voted upon not less than 45 days prior to the meeting date. 
 SECTION 4.08 Changes Affecting Deposited Securities.

 Upon any change in nominal value, change in par value, split-up, consolidation or any other reclassification of Deposited
Securities, or upon any recapitalization, reorganization, merger or consolidation or sale of assets affecting the Company or to which it is a party, or upon the redemption or cancellation by the Company of the Deposited Securities, any securities,
cash or property which shall be received by the Depositary or a Custodian in exchange for, in conversion of, in lieu of or in respect of Deposited Securities, shall be treated as new Deposited Securities under this Deposit Agreement, and American
Depositary Shares shall thenceforth represent, in addition to the existing Deposited Securities, the right to receive the new Deposited Securities so received, unless additional American Depositary Shares are delivered pursuant to the following
sentence. In any such case the Depositary may, and shall if the Company shall so request, deliver additional American Depositary Shares as in the case of a dividend in Shares, or call for the surrender of outstanding Receipts to be exchanged for new
Receipts specifically describing such new Deposited Securities. 
 SECTION 4.09 Reports. 

The Depositary shall make available for inspection by Owners at its Corporate Trust Office any reports and communications, including any
proxy solicitation material, received from the Company which are both (a) received by the Depositary as the holder of the Deposited Securities and (b) made generally available to the holders of such Deposited Securities by the Company. The
Depositary shall also, upon written request by the Company, send to the Owners copies of such reports when furnished by the Company pursuant to Section 5.06. Any such reports and communications, including any such proxy soliciting material,
furnished to the Depositary by the Company shall be furnished in English, to the extent such materials are required to be translated into English pursuant to any regulations of the Commission. 

SECTION 4.10 Lists of Owners. 
 Promptly upon request by the Company, the Depositary shall, at the expense of the Company, furnish to it a list, as of a recent date, of the names, addresses and holdings of American Depositary Shares by
all persons in whose names American Depositary Shares are registered on the books of the Depositary. 

  
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 SECTION 4.11 Withholding. 

In the event that the Depositary determines that any distribution in property (including Shares and rights to subscribe therefor) is
subject to any tax or other governmental charge which the Depositary is obligated to withhold, the Depositary may by public or private sale dispose of all or a portion of such property (including Shares and rights to subscribe therefor) in such
amounts and in such manner as the Depositary deems necessary and practicable to pay such taxes or charges and the Depositary shall distribute the net proceeds of any such sale after deduction of such taxes or charges to the Owners entitled thereto
in proportion to the number of American Depositary Shares held by them respectively. 
 The Depositary may establish and
maintain procedures consistent with the rules and procedures established by the French Treasury to enable eligible U.S. resident Owners and Holders to recover any excess French withholding taxes initially withheld or deducted with respect to
dividends and other distributions of the Company paid to those Owners and Holders. 
  

	ARTICLE 5.	THE DEPOSITARY, THE CUSTODIANS AND THE COMPANY 

 SECTION 5.01 Maintenance of Office and Transfer Books by the Depositary. 

Until termination of this Deposit Agreement in accordance with its terms, the Depositary shall maintain in the Borough of Manhattan, The
City of New York, facilities for the execution and delivery, registration, registration of transfers and surrender of American Depositary Shares in accordance with the provisions of this Deposit Agreement. 

The Depositary shall keep books, at its Corporate Trust Office, for the registration of American Depositary Shares and transfers of
American Depositary Shares which at all reasonable times shall be open for inspection by the Owners, provided that such inspection shall not be for the purpose of communicating with Owners in the interest of a business or object other than the
business of the Company or a matter related to this Deposit Agreement or the American Depositary Shares. 
 The Depositary may
close the transfer books, at any time or from time to time, when deemed expedient by it in connection with the performance of its duties hereunder. 
 If any American Depositary Shares are listed on one or more stock exchanges in the United States, the Depositary shall act as Registrar or appoint a Registrar or one or more co-registrars for registry of
such American Depositary Shares in accordance with any requirements of such exchange or exchanges. 

  
 -20-

 The Company shall have the right, upon reasonable request, at any reasonable time, to
inspect the transfer and registration records of the Depositary relating to the American Depositary Shares, to take copies thereof and to require the Depositary to supply copies of such portions of such records as the Company may reasonably request.

 SECTION 5.02 Prevention or Delay in Performance by the Depositary or the Company. 

Neither the Depositary nor the Company nor any of their respective directors, employees, agents or affiliates shall incur any liability to
any Owner or Holder (i) if by reason of any provision of any present or future law or regulation of the United States, the Republic of France or any other country, or of any governmental or regulatory authority or stock exchange, or by reason
of any provision, present or future, of the statuts of the Company, or by reason of any provision of any securities issued or distributed by the Company, or any offering or distribution thereof, or by reason of any act of God or war or
terrorism or other circumstances beyond its control, the Depositary or the Company shall be prevented, delayed or forbidden from, or be subject to any civil or criminal penalty on account of, doing or performing any act or thing which by the terms
of this Deposit Agreement or the Deposited Securities it is provided shall be done or performed, (ii) by reason of any non-performance or delay, caused as aforesaid, in the performance of any act or thing which by the terms of this Deposit
Agreement it is provided shall or may be done or performed, (iii) by reason of any exercise of, or failure to exercise, any discretion provided for in this Deposit Agreement, (iv) for the inability of any Owner or Holder to benefit from
any distribution, offering, right or other benefit which is made available to holders of Deposited Securities but is not, under the terms of this Deposit Agreement, made available to Owners or Holders, or (v) for any special, consequential or
punitive damages for any breach of the terms of this Deposit Agreement. Where, by the terms of a distribution pursuant to Section 4.01, 4.02 or 4.03, or an offering or distribution pursuant to Section 4.04, or for any other reason, such
distribution or offering may not be made available to Owners, and the Depositary may not dispose of such distribution or offering on behalf of such Owners and make the net proceeds available to such Owners, then the Depositary shall not make such
distribution or offering, and shall allow any rights, if applicable, to lapse. 
 SECTION 5.03 Obligations of the Depositary,
the Custodian and the Company. 
 The Company and its directors, employees, agents and affiliates assume no obligation nor
shall they be subject to any liability under this Deposit Agreement to any Owner or Holder, except that the Company agrees to perform its obligations specifically set forth in this Deposit Agreement without negligence or bad faith. 

The Depositary and its directors, employees, agents and affiliates assume no obligation nor shall they be subject to any liability under
this Deposit Agreement to 

  
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any Owner or Holder (including, without limitation, liability with respect to the validity or worth of the Deposited Securities), except that the Depositary agrees to perform its obligations
specifically set forth in this Deposit Agreement without negligence or bad faith. 
 Neither the Depositary nor the Company, nor
any of their respective directors, employees nor affiliates, shall be under any obligation to appear in, prosecute or defend any action, suit or other proceeding in respect of any Deposited Securities or in respect of the American Depositary Shares
on behalf of any Owner or Holder or any other person. 
 Neither the Depositary nor the Company, nor any of their respective
directors, employees nor affiliates, shall be liable for any action or nonaction by them in reliance upon the advice of or information from legal counsel, accountants, any person presenting Shares for deposit, any Owner or any other person believed
by it in good faith to be competent to give such advice or information. 
 The Depositary shall not be liable for any acts or
omissions made by a successor depositary whether in connection with a previous act or omission of the Depositary or in connection with any matter arising wholly after the removal or resignation of the Depositary, provided that in connection with the
issue out of which such potential liability arises the Depositary performed its obligations without negligence or bad faith while it acted as Depositary. 
 The Depositary shall not be liable for the acts or omissions of any securities depository, clearing agency or settlement system in connection with or arising out of book-entry settlement of Deposited
Securities or otherwise. 
 The Depositary shall not be responsible for any failure to carry out any instructions to vote any of
the Deposited Securities, or for the manner in which any such vote is cast or the effect of any such vote, provided that any such action or nonaction is in good faith. 
 No disclaimer of liability under the Securities Act of 1933 is intended by any provision of this Deposit Agreement. 
 SECTION 5.04 Resignation and Removal of the Depositary. 
 The Depositary may
at any time resign as Depositary hereunder by written notice of its election so to do delivered to the Company, such resignation to take effect upon the appointment of a successor depositary and its acceptance of such appointment as hereinafter
provided. 
 The Depositary may at any time be removed by the Company by 120 days prior written notice of such removal, to
become effective upon the later of (i) the 120th 

  
 -22-

 
day after delivery of the notice to the Depositary and (ii) the appointment of a successor depositary and its acceptance of such appointment as hereinafter provided. 

In case at any time the Depositary acting hereunder shall resign or be removed, the Company shall use its best efforts to appoint a
successor depositary, which shall be a bank or trust company having an office in the Borough of Manhattan, The City of New York. Every successor depositary shall execute and deliver to its predecessor and to the Company an instrument in writing
accepting its appointment hereunder, and thereupon such successor depositary, without any further act or deed, shall become fully vested with all the rights, powers, duties and obligations of its predecessor; but such predecessor, nevertheless, upon
payment of all sums due it and on the written request of the Company shall execute and deliver an instrument transferring to such successor all rights and powers of such predecessor hereunder, shall duly assign, transfer and deliver all right, title
and interest in the Deposited Securities to such successor and shall deliver to such successor a list of the Owners of all outstanding American Depositary Shares. Any such successor depositary shall promptly mail notice of its appointment to the
Owners. 
 Any corporation into or with which the Depositary may be merged or consolidated shall be the successor of the
Depositary without the execution or filing of any document or any further act. 
 SECTION 5.05 The Custodians.

 The Custodian shall be subject at all times and in all respects to the directions of the Depositary and shall be responsible
solely to it. Any Custodian may resign and be discharged from its duties hereunder by notice of such resignation delivered to the Depositary at least 30 days prior to the date on which such resignation is to become effective. If upon such
resignation there shall be no Custodian acting hereunder, the Depositary shall, promptly after receiving such notice, appoint a substitute custodian or custodians, each of which shall thereafter be a Custodian hereunder. The Depositary in its
discretion may appoint a substitute or additional custodian or custodians, each of which shall thereafter be one of the Custodians hereunder. Upon demand of the Depositary any Custodian shall deliver such of the Deposited Securities held by it as
are requested of it to any other Custodian or such substitute or additional custodian or custodians. Each such substitute or additional custodian shall deliver to the Depositary, forthwith upon its appointment, an acceptance of such appointment
satisfactory in form and substance to the Depositary. 
 Upon the appointment of any successor depositary hereunder, each
Custodian then acting hereunder shall forthwith become, without any further act or writing, the agent hereunder of such successor depositary and the appointment of such successor depositary shall in no way impair the authority of each Custodian
hereunder; but the successor depositary so appointed shall, nevertheless, on the written request of any Custodian, execute and deliver to such Custodian all such instruments as may be 

  
 -23-

 
proper to give to such Custodian full and complete power and authority as agent hereunder of such successor depositary. 
 SECTION 5.06 Notices and Reports. 
 On or before the first date on which the
Company gives notice, by publication or otherwise, of any meeting of holders of Shares or other Deposited Securities, or of any adjourned meeting of such holders, or of the taking of any action in respect of any cash or other distributions or the
offering of any rights, the Company agrees to transmit to the Depositary and the Custodian a copy of the notice thereof in the form given or to be given to holders of Shares or other Deposited Securities. 

The Company will arrange for the translation into English, if not already in English, to the extent required pursuant to any regulations
of the Commission, and the prompt transmittal by the Company to the Depositary and the Custodian of such notices and any other reports and communications which are made generally available by the Company to holders of its Shares. If requested in
writing by the Company, the Depositary will arrange for the mailing, at the Company’s expense, of copies of such notices, reports and communications to all Owners. The Company will timely provide the Depositary with the quantity of such
notices, reports, and communications, as requested by the Depositary from time to time, in order for the Depositary to effect such mailings. 
 SECTION 5.07 Distribution of Additional Shares, Rights, etc. 
 If the
Company or any affiliate of the Company determines to make any issuance or distribution of (1) additional Shares, (2) rights to subscribe for Shares, (3) securities convertible into Shares, or (4) rights to subscribe for such
securities (each a “Distribution”), the Company shall notify the Depositary in writing in English as promptly as practicable and in any event before the Distribution starts and, if requested in writing by the Depositary, the Company shall
promptly furnish to the Depositary a written opinion from U.S. counsel for the Company that is reasonably satisfactory to the Depositary, stating whether or not the Distribution requires, or, if made in the United States, would require, registration
under the Securities Act of 1933. If, in the opinion of that counsel, the Distribution requires, or, if made in the United States, would require, registration under the Securities Act of 1933, that counsel shall furnish to the Depositary a written
opinion as to whether or not there is a registration statement under the Securities Act of 1933 in effect that will cover that Distribution. 
 The Company agrees with the Depositary that neither the Company nor any company controlled by, controlling or under common control with the Company will at any time deposit any Shares, either originally
issued or previously issued and reacquired by the Company or any such affiliate, unless a Registration Statement is in effect as to such Shares under the Securities Act of 1933 or the Company delivers to the Depositary an opinion of United States
counsel, satisfactory to the Depositary, to the 

  
 -24-

 
effect that, upon deposit, those Shares will be eligible for public resale in the United States without further registration under the Securities Act of 1933. 

SECTION 5.08 Indemnification. 
 The Company agrees to indemnify the Depositary, its directors, employees, agents and affiliates and any Custodian against, and hold each of them harmless from, any liability or expense (including, but not
limited to any fees and expenses incurred in seeking, enforcing or collecting such indemnity and the fees and expenses of counsel) which may arise out of or in connection with (a) any registration with the Commission of American Depositary
Shares or Deposited Securities or the offer or sale thereof in the United States or (b) acts performed or omitted, pursuant to the provisions of or in connection with this Deposit Agreement and the American Depositary Shares, as the same may be
amended, modified or supplemented from time to time, (i) by either the Depositary or a Custodian or their respective directors, employees, agents and affiliates, except for any liability or expense arising out of the negligence or bad faith of
either of them, or (ii) by the Company or any of its directors, employees, agents and affiliates. 
 The indemnities
contained in the preceding paragraph shall not extend to any liability or expense which may arise out of any Pre-Release (as defined in Section 2.09) but only to the extent that any such liability or expense arises in connection with
(a) any United States Federal, state or local income tax laws, or (b) the failure of the Depositary to deliver Deposited Securities when required under the terms of Section 2.05. However, the indemnities contained in the preceding
paragraph shall apply to any liability or expense which may arise out of any misstatement or alleged misstatement or omission or alleged omission in any registration statement, proxy statement, prospectus (or placement memorandum), or preliminary
prospectus (or preliminary placement memorandum) relating to the offer of sale of American Depositary Shares, except to the extent any such liability or expense arises out of (i) information relating to the Depositary or any Custodian (other
than the Company), as applicable, furnished in writing and not materially changed or altered by the Company expressly for use in any of the foregoing documents, or, (ii) if such information is provided, the failure to state a material fact
necessary to make the information provided not misleading. 
 The Depositary agrees to indemnify the Company, its directors,
employees, agents and affiliates and hold them harmless from any liability or expense which may arise out of acts performed or omitted by the Depositary or its Custodian or their respective directors, employees, agents and affiliates due to their
negligence or bad faith. 
 If an action, proceeding (including, but not limited to, any governmental investigation), claim or
dispute (collectively, a “Proceeding”) in respect of which indemnity may be sought by either party is brought or asserted against the other party, the party seeking indemnification (the “Indemnitee”) shall promptly (and in no
event more 

  
 -25-

 
than ten (10) days after receipt of notice of such Proceeding) notify the party obligated to provide such indemnification (the “Indemnitor”) of such Proceeding. The failure of the
Indemnitee to so notify the Indemnitor shall not impair the Indemnitee’s ability to seek indemnification from the Indemnitor (but only for costs, expenses and liabilities incurred after such notice) unless such failure adversely affects the
Indemnitor’s ability to adequately oppose or defend such Proceeding. Upon receipt of such notice from the Indemnitee, the Indemnitor shall be entitled to participate in such Proceeding and, to the extent that it shall so desire and provided no
conflict of interest exists as specified in subparagraph (b) below or there are no other defenses available to Indemnitee as specified in subparagraph (d) below, to assume the defense thereof with counsel reasonably satisfactory to the
Indemnitee (in which case all attorney’s fees and expenses shall be borne by the Indemnitor and the Indemnitor shall in good faith defend the Indemnitee). The Indemnitee shall have the right to employ separate counsel in any such Proceeding and
to participate in the defense thereof, but the reasonable fees and expenses of such counsel shall be borne by the Indemnitee unless (a) the Indemnitor agrees in writing to pay such fees and expenses, (b) the Indemnitee shall have
reasonably and in good faith concluded that there is a conflict of interest between the Indemnitor and the Indemnitee in the conduct of the defense of such Proceeding, (c) the Indemnitor fails to assume, at least ten (10) days prior to the
date the first response or appearance is required to be made in such Proceeding, the defense of such Proceeding with counsel reasonably satisfactory to the Indemnitee or (d) there are legal defenses available to the Indemnitee that are
different from or are in addition to those available to the Indemnitor. No compromise or settlement of such Proceeding may be effected by either party without the other party’s consent unless (i) there is no finding or admission of any
violation of law and no effect on any other claims that may be made against such other party and (ii) the sole relief provided is monetary damages that are paid in full by the party seeking the settlement. Neither party shall have any liability
with respect to any compromise or settlement effected without its consent, which shall not be unreasonably withheld. The Indemnitor shall have no obligation to indemnify and hold harmless the Indemnitee from any loss, expense or liability incurred
by the Indemnitee as a result of a default judgment entered against the Indemnitee unless such judgment was entered after the Indemnitor agreed, in writing, to assume the defense of such Proceeding. 

SECTION 5.09 Charges of Depositary. 
 The Company agrees to pay the fees and out-of-pocket expenses of the Depositary and those of any Registrar only in accordance with agreements in writing entered into between the Depositary and the Company
from time to time. Except as otherwise provided in the following paragraph, the charges and expenses of the Custodian are for the sole account of the Depositary. 
 The following charges shall be incurred by any party depositing or withdrawing Shares or by any party surrendering American Depositary Shares or to whom American Depositary Shares are issued (including,
without limitation, issuance 

  
 -26-

 
pursuant to a stock dividend or stock split declared by the Company or an exchange of stock regarding the American Depositary Shares or Deposited Securities or a delivery of American Depositary
Shares pursuant to Section 4.03), or by Owners, as applicable: (1) taxes and other governmental charges, (2) such registration fees as may from time to time be in effect for the registration of transfers of Shares generally on the
Share register of the Company or Foreign Registrar and applicable to transfers of Shares to or from the name of the Depositary or its nominee or the Custodian or its nominee on the making of deposits or withdrawals hereunder, (3) such cable,
telex and facsimile transmission expenses as are expressly provided in this Deposit Agreement, (4) such expenses as are incurred by the Depositary in the conversion of foreign currency pursuant to Section 4.05, (5) a fee of $5.00 or
less per 100 American Depositary Shares (or portion thereof) for the delivery of American Depositary Shares pursuant to Section 2.03, 4.03 or 4.04 and the surrender of American Depositary Shares pursuant to Section 2.05 or 6.02, (6) a
fee of $.05 or less per American Depositary Share (or portion thereof) for any cash distribution made pursuant to this Deposit Agreement, including, but not limited to Sections 4.01 through 4.04 hereof, (7) a fee for the distribution of
securities pursuant to Section 4.02, such fee being in an amount equal to the fee for the execution and delivery of American Depositary Shares referred to above which would have been charged as a result of the deposit of such securities (for
purposes of this clause 7 treating all such securities as if they were Shares) but which securities are instead distributed by the Depositary to Owners, (8) in addition to any fee charged under clause 6, a fee of $.05 or less per American
Depositary Share (or portion thereof) per annum for depositary services, which will be payable as provided in clause 9 below, and (9) any other charges payable by the Depositary, any of the Depositary’s agents, including the Custodian, or
the agents of the Depositary’s agents in connection with the servicing of Shares or other Deposited Securities (which charge shall be assessed against Owners as of the date or dates set by the Depositary in accordance with Section 4.06 and
shall be payable at the sole discretion of the Depositary by billing such Owners for such charge or by deducting such charge from one or more cash dividends or other cash distributions). 

The Depositary, subject to Section 2.09 hereof, may own and deal in any class of securities of the Company and its affiliates and in
American Depositary Shares. 
 SECTION 5.10 Retention of Depositary Documents. 

The Depositary is authorized to destroy those documents, records, bills and other data compiled during the term of this Deposit Agreement
at the times permitted by the laws or regulations governing the Depositary unless the Company requests that such papers be retained for a longer period or turned over to the Company or to a successor depositary. 

  
 -27-

 SECTION 5.11 Exclusivity. 

Subject to the provisions of Section 5.04, the Company agrees not to appoint any other depositary for issuance of American or global
depositary shares or receipts so long as The Bank of New York Mellon is acting as Depositary hereunder. 
 SECTION 5.12 List
of Restricted Securities Owners. 
 From time to time, the Company shall provide to the Depositary a list setting forth, to
the actual knowledge of the Company, those persons or entities who beneficially own Restricted Securities and the Company shall update that list on a regular basis. The Company agrees to advise in writing each of the persons or entities so listed
that such Restricted Securities are ineligible for deposit hereunder. The Depositary may rely on such a list or update but shall not be liable for any action or omission made in reliance thereon. 

 

	ARTICLE 6.	AMENDMENT AND TERMINATION 

SECTION 6.01 Amendment. 
 The form of the Receipts and any provisions of this Deposit Agreement may at any time and from time to time be amended by agreement between the Company and the Depositary without the consent of Owners or
Holders in any respect which they may deem necessary or desirable. Any amendment which shall impose or increase any fees or charges (other than taxes and other governmental charges, registration fees, cable, telex or facsimile transmission costs,
delivery costs or other such expenses), or which shall otherwise prejudice any substantial existing right of Owners, shall, however, not become effective as to outstanding American Depositary Shares until the expiration of thirty days after notice
of such amendment shall have been given to the Owners of outstanding American Depositary Shares. Every Owner and Holder, at the time any amendment so becomes effective, shall be deemed, by continuing to hold American Depositary Shares or any
interest therein, to consent and agree to such amendment and to be bound by the Deposit Agreement as amended thereby. In no event shall any amendment impair the right of the Owner to surrender American Depositary Shares and receive therefor the
Deposited Securities represented thereby, except in order to comply with mandatory provisions of applicable law. 
 SECTION 6.02
Termination. 
 The Company may at any time terminate this Deposit Agreement by instructing the Depositary to mail a
notice of termination to the Owners of all American Depositary Shares then outstanding at least 30 days prior to the termination date included in such notice. The Depositary may likewise terminate this Deposit Agreement if at any time 60 days shall
have expired after the Depositary delivered to the Company a written resignation notice and if a successor depositary shall not have been appointed and 

  
 -28-

 
accepted its appointment as provided in Section 5.04; in such case the Depositary shall mail a notice of termination to the Owners of all American Depositary Shares then outstanding at least
30 days prior to the termination date. On and after the date of termination, the Owner of American Depositary Shares will, upon (a) surrender of such American Depositary Shares, (b) payment of the fee of the Depositary for the surrender of
American Depositary Shares referred to in Section 2.05, and (c) payment of any applicable taxes or governmental charges, be entitled to delivery, to him or upon his order, of the amount of Deposited Securities represented by those American
Depositary Shares. If any American Depositary Shares shall remain outstanding after the date of termination, the Depositary thereafter shall discontinue the registration of transfers of American Depositary Shares, shall suspend the distribution of
dividends to the Owners thereof, and shall not give any further notices or perform any further acts under this Deposit Agreement, except that the Depositary shall continue to collect dividends and other distributions pertaining to Deposited
Securities, shall sell rights and other property as provided in this Deposit Agreement, and shall continue to deliver Deposited Securities, together with any dividends or other distributions received with respect thereto and the net proceeds of the
sale of any rights or other property, upon surrender of American Depositary Shares (after deducting, in each case, the fee of the Depositary for the surrender of American Depositary Shares, any expenses for the account of the Owner of such American
Depositary Shares in accordance with the terms and conditions of this Deposit Agreement, and any applicable taxes or governmental charges). 
 At any time after the expiration of four months from the date of termination, the Depositary may sell the Deposited Securities then held under this Deposit Agreement and may thereafter hold uninvested the
net proceeds of any such sale, together with any other cash then held by it hereunder, unsegregated and without liability for interest, for the pro rata benefit of the Owners of American Depositary Shares that have not theretofore been surrendered,
such Owners thereupon becoming general creditors of the Depositary with respect to such net proceeds. After making such sale, the Depositary shall be discharged from all obligations under this Deposit Agreement, except to account for such net
proceeds and other cash (after deducting, in each case, the fee of the Depositary for the surrender of American Depositary Shares, any expenses for the account of the Owner of such American Depositary Shares in accordance with the terms and
conditions of this Deposit Agreement, and any applicable taxes or governmental charges. Upon the termination of this Deposit Agreement, the Company shall be discharged from all obligations under this Deposit Agreement except for its obligations to
the Depositary under Sections 5.08 and 5.09. 
  

	ARTICLE 7.	MISCELLANEOUS 

 SECTION 7.01
Counterparts. 
 This Deposit Agreement may be executed in any number of counterparts, each of which shall be deemed an
original and all of such counterparts shall constitute 

  
 -29-

 
one and the same instrument. Copies of this Deposit Agreement shall be filed with the Depositary and the Custodians and shall be open to inspection by any Owner or Holder during business hours.

 SECTION 7.02 No Third Party Beneficiaries. 
 This Deposit Agreement is for the exclusive benefit of the parties hereto and shall not be deemed to give any legal or equitable right, remedy or claim whatsoever to any other person. 

SECTION 7.03 Severability. 
 In case any one or more of the provisions contained in this Deposit Agreement or in the Receipts should be or become invalid, illegal or unenforceable in any respect, the validity, legality and
enforceability of the remaining provisions contained herein or therein shall in no way be affected, prejudiced or disturbed thereby. 
 SECTION 7.04 Owners and Holders as Parties; Binding Effect. 
 The Owners and
Holders from time to time shall be parties to this Deposit Agreement and shall be bound by all of the terms and conditions hereof and of the Receipts by acceptance of American Depositary Shares or any interest therein. 

SECTION 7.05 Notices. 
 Any and all notices to be given to the Company shall be deemed to have been duly given if personally delivered or sent by mail or cable, telex or facsimile transmission confirmed by letter, addressed to
Sequans Communications S.A., 19 Le Parvis de La Défense, La Défense Cedex, 92073 Paris, France, Attention: Chief Financial Officer, or any other place to which the Company may have transferred its principal office with notice to the
Depositary. 
 Any and all notices to be given to the Depositary shall be deemed to have been duly given if in English and
personally delivered or sent by mail or cable, telex or facsimile transmission confirmed by letter, addressed to The Bank of New York Mellon, 101 Barclay Street, New York, New York 10286, Attention: American Depositary Receipt
Administration, or any other place to which the Depositary may have transferred its Corporate Trust Office with notice to the Company. 
 Any and all notices to be given to any Owner shall be deemed to have been duly given if personally delivered or sent by mail or cable, telex or facsimile transmission confirmed by letter, addressed to
such Owner at the address of such Owner as it appears on the transfer books for American Depositary Shares of the Depositary, or, if such Owner shall have filed with the Depositary a written request that notices intended

  
 -30-

 
for such Owner be mailed to some other address, at the address designated in such request. 
 Delivery of a notice sent by mail or cable, telex or facsimile transmission shall be deemed to be effected at the time when a duly addressed letter containing the same (or a confirmation thereof in the
case of a cable, telex or facsimile transmission) is deposited, postage prepaid, in a post-office letter box. The Depositary or the Company may, however, act upon any cable, telex or facsimile transmission received by it, notwithstanding that such
cable, telex or facsimile transmission shall not subsequently be confirmed by letter as aforesaid. 
 SECTION 7.06 Submission
to Jurisdiction; Appointment of Agent for Service of Process; Jury Trial Waiver. 
 The Company hereby (i) irrevocably
designates and appoints GKL Corporate/Search, Inc., 915 L Street, Suite 1250, Sacramento, CA 95814, as the Company’s authorized agent upon which process may be served in any suit or proceeding arising out of or relating to the Shares or
Deposited Securities, the American Depositary Shares, the Receipts or this Agreement, (ii) consents and submits to the jurisdiction of any state or federal court in the State of New York in which any such suit or proceeding may be instituted
and (iii) agrees that service of process upon said authorized agent shall be deemed in every respect effective service of process upon the Company in any such suit or proceeding. The Company agrees to deliver, upon the execution and delivery of
this Deposit Agreement, a written acceptance by such agent of its appointment as such agent. The Company further agrees to take any and all action, including the filing of any and all such documents and instruments, as may be necessary to continue
such designation and appointment in full force and effect for so long as any American Depositary Shares or Receipts remain outstanding or this Agreement remains in force. In the event the Company fails to continue such designation and appointment in
full force and effect, the Company hereby waives personal service of process upon it and consents that any such service of process may be made by certified or registered mail, return receipt requested, directed to the Company at its address last
specified for notices hereunder, and service so made shall be deemed completed five (5) days after the same shall have been so mailed. 
 EACH PARTY TO THIS DEPOSIT AGREEMENT (INCLUDING EACH OWNER AND HOLDER) HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY SUIT,
ACTION OR PROCEEDING AGAINST THE COMPANY AND/OR THE DEPOSITARY DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THE SHARES OR OTHER DEPOSITED SECURITIES, THE AMERICAN DEPOSITARY SHARES OR THE RECEIPTS, THIS DEPOSIT AGREEMENT OR ANY TRANSACTION
CONTEMPLATED HEREIN OR THEREIN, OR THE BREACH HEREOF OR 

  
 -31-

 
THEREOF, INCLUDING, WITHOUT LIMITATION, ANY QUESTION REGARDING EXISTENCE, VALIDITY OR TERMINATION (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). 

SECTION 7.07 Waiver of Immunities. 
 To the extent that the Company or any of its properties, assets or revenues may have or may hereafter become entitled to, or have attributed to it, any right of immunity, on the grounds of sovereignty or
otherwise, from any legal action, suit or proceeding, from the giving of any relief in any respect thereof, from setoff or counterclaim, from the jurisdiction of any court, from service of process, from attachment upon or prior to judgment, from
attachment in aid of execution or judgment, or from execution of judgment, or other legal process or proceeding for the giving of any relief or for the enforcement of any judgment, in any jurisdiction in which proceedings may at any time be
commenced, with respect to its obligations, liabilities or any other matter under or arising out of or in connection with the Shares or Deposited Securities, the American Depositary Shares, the Receipts or this Agreement, the Company, to the fullest
extent permitted by law, hereby irrevocably and unconditionally waives, and agrees not to plead or claim, any such immunity and consents to such relief and enforcement. 
 SECTION 7.08 Governing Law. 
 This Deposit Agreement and the Receipts shall
be interpreted and all rights hereunder and thereunder and provisions hereof and thereof shall be governed by the laws of the State of New York, except with respect to its authorization and execution by the Company, which shall be governed by the
laws of The Republic of France. 

  
 -32-

 IN WITNESS WHEREOF, SEQUANS COMMUNICATIONS S.A. and THE BANK OF NEW YORK MELLON have duly
executed this Deposit Agreement as of the day and year first set forth above and all Owners and Holders shall become parties hereto upon acceptance by them of American Depositary Shares or any interest therein. 

 

			
	SEQUANS COMMUNICATIONS S.A.
		
	By:	 	  

		 	Name:
		 	Title:
	
	 THE BANK OF NEW YORK MELLON,
   as Depositary

		
	By:	 	  

		 	Name:
		 	Title:

  
 -33-

 EXHIBIT A 
  

					
		 		 	AMERICAN DEPOSITARY SHARES
		 		 	 (Each American Depositary Share represents
 one deposited Share)

 THE BANK OF NEW YORK MELLON 

AMERICAN DEPOSITARY RECEIPT 
 FOR ORDINARY SHARES 
 OF 

SEQUANS COMMUNICATIONS S.A. 
 (INCORPORATED UNDER THE LAWS OF THE REPUBLIC OF FRANCE) 
 The Bank of New York
Mellon, as depositary (hereinafter called the “Depositary”), hereby certifies that                     , or registered assigns IS
THE OWNER OF                      
 AMERICAN DEPOSITARY SHARES 
 representing deposited ordinary shares (herein called
“Shares”) of Sequans Communications S.A., a société anonyme organized under the laws of the Republic of France (herein called the “Company”). At the date hereof, each American Depositary Share represents one
(1) Share deposited or subject to deposit under the Deposit Agreement (as such term is hereinafter defined) at the principal Paris office of Société Générale (herein called the “Custodian”). The
Depositary’s Corporate Trust Office is located at a different address than its principal executive office. Its Corporate Trust Office is located at 101 Barclay Street, New York, N.Y. 10286, and its principal executive office is located at One
Wall Street, New York, N.Y. 10286. 
 THE DEPOSITARY’S CORPORATE TRUST OFFICE ADDRESS IS 

101 BARCLAY STREET, NEW YORK, N.Y. 10286 
 1. THE DEPOSIT AGREEMENT. 
 This American Depositary Receipt is one of an
issue (herein called “Receipts”), all issued and to be issued upon the terms and conditions set forth in the deposit agreement dated as of             , 2011 (herein called
the “Deposit Agreement”) among the Company, the Depositary and all Owners and Holders from time to time of American Depositary Shares issued thereunder, each of whom by accepting American Depositary

  
 -1-

 
Shares agrees to become a party thereto and become bound by all the terms and conditions thereof. The Deposit Agreement sets forth the rights of Owners and Holders and the rights and duties of
the Depositary in respect of the Shares deposited thereunder and any and all other securities, property and cash from time to time received in respect of such Shares and held thereunder (such Shares, securities, property, and cash are herein called
“Deposited Securities”). Copies of the Deposit Agreement are on file at the Depositary’s Corporate Trust Office in New York City and at the office of the Custodian. 

The statements made on the face and reverse of this Receipt are summaries of certain provisions of the Deposit Agreement and are
qualified by and subject to the detailed provisions of the Deposit Agreement, to which reference is hereby made. Capitalized terms not defined herein shall have the meanings set forth in the Deposit Agreement. 

2. SURRENDER OF AMERICAN DEPOSITARY SHARES AND WITHDRAWAL OF DEPOSITED SECURITIES. 

Upon surrender at the Corporate Trust Office of the Depositary of American Depositary Shares, and upon payment of the fee of the
Depositary provided in this Receipt, and subject to the terms and conditions of the Deposit Agreement, the Company’s status and the Deposited Securities, the Owner of those American Depositary Shares is entitled to delivery, to him or as
instructed, of the amount of Deposited Securities at the time represented by those American Depositary Shares. Such delivery will be made at the option of the Owner hereof, either at the office of the Custodian or at the Corporate Trust Office of
the Depositary, provided that the forwarding of certificates for Shares or other Deposited Securities for such delivery at the Corporate Trust Office of the Depositary shall be at the risk and expense of the Owner hereof. 

3. TRANSFERS, SPLIT-UPS, AND COMBINATIONS OF RECEIPTS. 
 Transfers of American Depositary Shares may be registered on the books of the Depositary by the Owner in person or by a duly authorized attorney, upon surrender of those American Depositary Shares
properly endorsed for transfer or accompanied by proper instruments of transfer, in the case of a Receipt, or pursuant to a proper instruction (including, instructions through DRS and Profile as provided in Section 2.10 of the Deposit
Agreement), in the case of uncertificated American Depositary Shares, and funds sufficient to pay any applicable transfer taxes and the expenses of the Depositary and upon compliance with such regulations, if any, as the Depositary may establish for
such purpose. This Receipt may be split into other such Receipts, or may be combined with other such Receipts into one Receipt, evidencing the same aggregate number of American Depositary Shares as the Receipt or Receipts surrendered. The
Depositary, upon surrender of certificated American Depositary Shares for the purpose of exchanging for uncertificated American Depositary Shares, shall cancel those certificated American Depositary Shares and send the Owner a statement confirming
that the Owner is the Owner of uncertificated American Depositary Shares. The Depositary, upon receipt of a 

  
 -2-

 
proper instruction (including, instructions through DRS and Profile as provided in Section 2.10 of the Deposit Agreement) from the Owner of uncertificated American Depositary Shares for the
purpose of exchanging for certificated American Depositary Shares, shall cancel those uncertificated American Depositary Shares and deliver to the Owner the same number of certificated American Depositary Shares. As a condition precedent to the
delivery, registration of transfer, or surrender of any American Depositary Shares or split-up or combination of any Receipt or withdrawal of any Deposited Securities, the Depositary, the Custodian, or Registrar may require payment from the
depositor of the Shares or the presenter of the Receipt or instruction for registration of transfer or surrender of American Depositary Shares not evidenced by a Receipt of a sum sufficient to reimburse it for any tax or other governmental charge
and any stock transfer or registration fee with respect thereto (including any such tax or charge and fee with respect to Shares being deposited or withdrawn) and payment of any applicable fees as provided in the Deposit Agreement, may require the
production of proof satisfactory to it as to the identity and genuineness of any signature and may also require compliance with any regulations the Depositary may establish consistent with the provisions of the Deposit Agreement. 

The delivery of American Depositary Shares against deposit of Shares generally or against deposit of particular Shares may be suspended,
or the transfer of American Depositary Shares in particular instances may be refused, or the registration of transfer of outstanding American Depositary Shares generally may be suspended, during any period when the transfer books of the Depositary
are closed, or if any such action is deemed necessary or advisable by the Depositary or the Company at any time or from time to time because of any requirement of law or of any government or governmental body or commission, or under any provision of
the Deposit Agreement, the statuts of the Company or this Receipt, or for any other reason, subject to the provisions of the following sentence. Notwithstanding anything to the contrary in the Deposit Agreement or this Receipt, the surrender of
outstanding American Depositary Shares and withdrawal of Deposited Securities may not be suspended except in connection with (i) temporary delays caused by closing the transfer books of the Depositary or the Company or the Foreign Registrar, if
applicable, or the deposit of Shares in connection with voting at a shareholders’ meeting, or the payment of dividends, (ii) the payment of fees, taxes and similar charges, and (iii) compliance with any U.S. or foreign laws or
governmental regulations relating to the American Depositary Shares or to the withdrawal of the Deposited Securities. Without limitation of the foregoing, the Depositary shall not knowingly accept for deposit under the Deposit Agreement any Shares
which would be required to be registered under the provisions of the Securities Act of 1933, unless a registration statement is in effect as to such Shares. 
 4. LIABILITY OF OWNER FOR TAXES. 
 If any tax or other governmental charge
shall become payable with respect to any American Depositary Shares or any Deposited Securities represented by any American 

  
 -3-

 
Depositary Shares, such tax or other governmental charge shall be payable by the Owner to the Depositary. The Depositary may refuse to register any transfer of those American Depositary Shares or
any withdrawal of Deposited Securities represented by those American Depositary Shares until such payment is made, and may withhold any dividends or other distributions, or may sell for the account of the Owner any part or all of the Deposited
Securities represented by those American Depositary Shares, and may apply such dividends or other distributions or the proceeds of any such sale in payment of such tax or other governmental charge and the Owner shall remain liable for any
deficiency. 
 5. WARRANTIES ON DEPOSIT OF SHARES. 
 Every person depositing Shares under the Deposit Agreement shall be deemed thereby to represent and warrant, that such Shares and each certificate therefor, if applicable, are validly issued, fully paid,
nonassessable and free of any preemptive rights of the holders of outstanding Shares and that the person making such deposit is duly authorized so to do. Every such person shall also be deemed to represent that the deposit of such Shares and the
sale of American Depositary Shares representing such Shares by that person are not restricted under the Securities Act of 1933. Such representations and warranties shall survive the deposit of Shares and delivery of American Depositary Shares.

 6. FILING PROOFS, CERTIFICATES, AND OTHER INFORMATION. 
 Any person presenting Shares for deposit or any Owner or Holder may be required from time to time to file with the Depositary or the Custodian such proof of citizenship or residence, exchange control
approval, payment of applicable French or other taxes or governmental charges or legal or beneficial ownership or such information relating to the registration on the books of the Company or the Foreign Registrar, if applicable, to execute such
certificates and to make such representations and warranties, as the Depositary may deem necessary or proper or the Company may reasonably require upon written request to the Depositary. The Depositary may withhold the delivery or registration of
transfer of any American Depositary Shares or the distribution of any dividend or sale or distribution of rights or of the proceeds thereof or the delivery of any Deposited Securities until such proof or other information is filed or such
certificates are executed or such representations and warranties made. No Share shall be accepted for deposit unless accompanied by evidence satisfactory to the Depositary that any necessary approval has been granted by any governmental body in each
applicable jurisdiction that is then performing the function of the regulation of currency exchange or which has jurisdiction over foreign investment. 
 7. CHARGES OF DEPOSITARY. 
 The following charges shall be incurred by any
party depositing or withdrawing Shares or by any party surrendering American Depositary Shares or to whom American 

  
 -4-

 
Depositary Shares are issued (including, without limitation, issuance pursuant to a stock dividend or stock split declared by the Company or an exchange of stock regarding the American Depositary
Shares or Deposited Securities or a delivery of American Depositary Shares pursuant to Section 4.03 of the Deposit Agreement), or by Owners, as applicable: (1) taxes and other governmental charges, (2) such registration fees as may
from time to time be in effect for the registration of transfers of Shares generally on the Share register of the Company or Foreign Registrar and applicable to transfers of Shares to or from the name of the Depositary or its nominee or the
Custodian or its nominee on the making of deposits or withdrawals under the terms of the Deposit Agreement, (3) such cable, telex and facsimile transmission expenses as are expressly provided in the Deposit Agreement, (4) such expenses as
are incurred by the Depositary in the conversion of foreign currency pursuant to Section 4.05 of the Deposit Agreement, (5) a fee of $5.00 or less per 100 American Depositary Shares (or portion thereof) for the delivery of American
Depositary Shares pursuant to Section 2.03, 4.03 or 4.04 of the Deposit Agreement and the surrender of American Depositary Shares pursuant to Section 2.05 or 6.02 of the Deposit Agreement, (6) a fee of $.05 or less per American
Depositary Share (or portion thereof) for any cash distribution made pursuant to the Deposit Agreement, including, but not limited to Sections 4.01 through 4.04 of the Deposit Agreement, (7) a fee for the distribution of securities pursuant to
Section 4.02 of the Deposit Agreement, such fee being in an amount equal to the fee for the execution and delivery of American Depositary Shares referred to above which would have been charged as a result of the deposit of such securities (for
purposes of this clause 7 treating all such securities as if they were Shares) but which securities are instead distributed by the Depositary to Owners, (8) in addition to any fee charged under clause 6, a fee of $.05 or less per American
Depositary Share (or portion thereof) per annum for depositary services, which will be payable as provided in clause 9 below, and (9) any other charges payable by the Depositary, any of the Depositary’s agents, including the Custodian, or
the agents of the Depositary’s agents in connection with the servicing of Shares or other Deposited Securities (which charge shall be assessed against Owners as of the date or dates set by the Depositary in accordance with Section 4.06 of
the Deposit Agreement and shall be payable at the sole discretion of the Depositary by billing such Owners for such charge or by deducting such charge from one or more cash dividends or other cash distributions). 

The Depositary, subject to Article 8 hereof, may own and deal in any class of securities of the Company and its affiliates and in
American Depositary Shares. 
 8. PRE-RELEASE OF RECEIPTS. 
 Notwithstanding Section 2.03 of the Deposit Agreement, the Depositary may deliver American Depositary Shares prior to the receipt of Shares pursuant to Section 2.02 of the Deposit Agreement (a
“Pre-Release”). The Depositary may, pursuant to Section 2.05 of the Deposit Agreement, deliver Shares upon the surrender of American Depositary Shares that have been Pre-Released, whether or not such cancellation is prior

  
 -5-

 
to the termination of such Pre-Release or the Depositary knows that such American Depositary Shares have been Pre-Released. The Depositary may receive American Depositary Shares in lieu of Shares
in satisfaction of a Pre-Release. Each Pre-Release will be (a) preceded or accompanied by a written representation from the person to whom American Depositary Shares or Shares are to be delivered, that such person, or its customer, owns the
Shares or American Depositary Shares to be remitted, as the case may be, (b) at all times fully collateralized with cash or such other collateral as the Depositary deems appropriate, (c) terminable by the Depositary on not more than five
(5) business days notice, and (d) subject to such further indemnities and credit regulations as the Depositary deems appropriate. The number of American Depositary Shares that are outstanding at any time as a result of Pre-Release will not
normally exceed thirty percent (30%) of the Shares deposited under the Deposit Agreement; provided, however, that the Depositary reserves the right to change or disregard such limit from time to time as it deems reasonably
appropriate. 
 The Depositary may retain for its own account any compensation received by it in connection with the foregoing.

 9. TITLE TO RECEIPTS. 
 It is a condition of this Receipt and every successive Owner and Holder of this Receipt by accepting or holding the same consents and agrees that title to this Receipt (and to the American Depositary
Shares evidenced thereby) when properly endorsed or accompanied by proper instruments of transfer, shall be transferable as certificated registered securities under the laws of the State of New York. American Depositary Shares not evidenced by
Receipts shall be transferable as uncertificated registered securities under the laws of the State of New York. The Depositary, notwithstanding any notice to the contrary, may treat the Owner of American Depositary Shares as the absolute owner
thereof for the purpose of determining the person entitled to distribution of dividends or other distributions or to any notice provided for in the Deposit Agreement and for all other purposes, and neither the Depositary nor the Company shall have
any obligation or be subject to any liability under the Deposit Agreement to any Holder of American Depositary Shares unless that Holder is the Owner of those American Depositary Shares. 
 10. VALIDITY OF RECEIPT. 
 This Receipt shall not be entitled to any
benefits under the Deposit Agreement or be valid or obligatory for any purpose, unless this Receipt shall have been (i) executed by the Depositary by the manual signature of a duly authorized officer of the Depositary or (ii) executed by
the facsimile signature of a duly authorized officer of the Depositary and countersigned by the manual signature of a duly authorized signatory of the Depositary or a Registrar. 
 11. REPORTS; INSPECTION OF TRANSFER BOOKS. 

  
 -6-

 The Company is subject to the periodic reporting requirements of the Securities Exchange Act
of 1934 and, accordingly, files reports with the Securities and Exchange Commission (the “Commission”). Those reports will be available for inspection and copying through the Commission’s EDGAR system on the Internet at www.sec.gov or
at public reference facilities maintained by the Commission located at 100 F Street, N.E., Washington, D.C. 20549. 
 The
Depositary will make available for inspection by Owners at its Corporate Trust Office any reports, notices and other communications, including any proxy soliciting material, received from the Company which are both (a) received by the
Depositary as the holder of the Deposited Securities and (b) made generally available to the holders of such Deposited Securities by the Company. The Depositary will also, upon written request by the Company, send to Owners copies of such
reports when furnished by the Company pursuant to the Deposit Agreement. Any such reports and communications, including any such proxy soliciting material, furnished to the Depositary by the Company shall be furnished in English to the extent such
materials are required to be translated into English pursuant to any regulations of the Commission. 
 The Depositary will keep
books, at its Corporate Trust Office, for the registration of American Depositary Shares and transfers of American Depositary Shares which at all reasonable times shall be open for inspection by the Owners, provided that such inspection shall not be
for the purpose of communicating with Owners in the interest of a business or object other than the business of the Company or a matter related to the Deposit Agreement or the American Depositary Shares. 

12. DIVIDENDS AND DISTRIBUTIONS. 
 Whenever the Depositary receives any cash dividend or other cash distribution on any Deposited Securities, the Depositary will, subject to the Deposit Agreement, convert such dividend or distribution into
dollars and will distribute the amount thus received (net of the fees and expenses of the Depositary as provided in Article 7 hereof and Section 5.09 of the Deposit Agreement) to the Owners entitled thereto; provided,
however, that in the event that the Custodian or the Depositary is required to withhold and does withhold from any cash dividend or other cash distribution in respect of any Deposited Securities an amount on account of taxes or other
governmental charges, the amount distributed to the Owners of the American Depositary Shares representing such Deposited Securities shall be reduced accordingly. 
 Subject to the provisions of Section 4.11 and 5.09 of the Deposit Agreement, whenever the Depositary receives any distribution other than a distribution described in Section 4.01, 4.03 or 4.04
of the Deposit Agreement, the Depositary will cause the securities or property received by it to be distributed to the Owners entitled thereto, in any manner that the Depositary, after consultation with the Company to the extent practicable, may
deem equitable and practicable for accomplishing such distribution; provided, however, that if in the opinion of the Depositary such distribution cannot be 

  
 -7-

 
made proportionately among the Owners of Receipts entitled thereto, or if for any other reason (including, but not limited to, any requirement that the Company or the Depositary withhold an
amount on account of taxes or other governmental charges or that such securities must be registered under the Securities Act of 1933 in order to be distributed to Owners or Holders) the Depositary deems such distribution not to be feasible, the
Depositary may, after consultation with the Company to the extent practicable, adopt such method as it may deem equitable and practicable for the purpose of effecting such distribution, including, but not limited to, the public or private sale of
the securities or property thus received, or any part thereof, and the net proceeds of any such sale (net of the fees of the Depositary as provided in Article 7 hereof and Section 5.09 of the Deposit Agreement) will be distributed by the
Depositary to the Owners of Receipts entitled thereto as in the case of a distribution received in cash. The Depositary may withhold any distribution of securities under Section 4.02 of the Deposit Agreement if it has not received satisfactory
assurances from the Company that the distribution does not require registration under the Securities Act of 1933. The Depositary may sell, by public or private sale, an amount of securities or other property it would otherwise distribute under
Section 4.02 of the Deposit Agreement that is sufficient to pay its fees and expenses in respect of that distribution. 

If any distribution consists of a dividend in, or free distribution of, Shares, the Depositary may, and shall if the Company shall so
request in writing, distribute to the Owners of outstanding Receipts entitled thereto, in proportion to the number of American Depositary Shares corresponding to such Deposited Securities held by them respectively, an aggregate number of American
Depositary Shares representing the amount of Shares received as such dividend or free distribution, subject to the terms and conditions of the Deposit Agreement with respect to the deposit of Shares and the issuance of American Depositary Shares,
including withholding of any tax or other governmental charge as provided in Section 4.11 of the Deposit Agreement and deduction or payment of the fees and expenses of the Depositary as provided in Article 7 hereof and Section 5.09 of the
Deposit Agreement (and the Depositary may sell, by public or private sale, an amount of Shares received that is sufficient to pay its fees and expenses in respect of that distribution). The Depositary may withhold any such delivery of American
Depositary Shares if it has not received satisfactory assurances from the Company that the distribution does not require registration under the Securities Act of 1933. In lieu of delivering fractional American Depositary Shares in any such case, the
Depositary will sell the amount of Shares represented by the aggregate of such fractions and distribute the net proceeds, all in the manner and subject to the conditions described in Section 4.01 of the Deposit Agreement. If additional American
Depositary Shares are not so delivered, each American Depositary Share shall thenceforth also represent the additional Shares distributed upon the Deposited Securities represented thereby. 

In the event that the Depositary determines that any distribution in property (including Shares and rights to subscribe therefor) is
subject to any tax or other governmental charge which the Depositary is obligated to withhold, the Depositary may 

  
 -8-

 
by public or private sale dispose of all or a portion of such property (including Shares and rights to subscribe therefor) in such amounts and in such manner as the Depositary deems necessary and
practicable to pay any such taxes or charges, and the Depositary shall distribute the net proceeds of any such sale after deduction of such taxes or charges to the Owners of Receipts entitled thereto. 

The Depositary will use reasonable efforts to follow the procedures established by the French Treasury for eligible United States Owners
to benefit from the reduced withholding tax rate upon payment of any dividend. To effect such recovery and receipt, the Depositary shall provide U.S. resident Owners, upon request, with the appropriate French tax forms and instructions for
completing such forms, which shall be provided by the Company to the Depositary, and shall advise such U.S. resident Owners to return such forms to it properly completed and executed. Upon receipt of such forms properly completed and executed by
U.S. resident Owners, the Depositary shall promptly cause them to be filed with the appropriate French tax authorities, and upon receipt of any resulting remittance, the Depositary shall distribute to the Owners entitled thereto, as soon as
practicable, the proceeds thereof in Dollars in accordance with Section 4.05 of the Deposit Agreement. 
 13. RIGHTS. 

In the event that the Company shall offer or cause to be offered to the holders of any Deposited Securities any rights to subscribe for
additional Shares or any rights of any other nature, the Depositary shall have discretion, after consultation with the Company, as to the procedure to be followed in making such rights available to any Owners or in disposing of such rights on behalf
of any Owners and making the net proceeds available to such Owners or, if by the terms of such rights offering or for any other reason, the Depositary may not either make such rights available to any Owners or dispose of such rights and make the net
proceeds available to such Owners, then the Depositary shall allow the rights to lapse. If at the time of the offering of any rights the Depositary determines in its discretion that it is lawful and feasible to make such rights available to all or
certain Owners but not to other Owners, the Depositary may distribute to any Owner to whom it determines the distribution to be lawful and feasible, in proportion to the number of American Depositary Shares held by such Owner, warrants or other
instruments therefor in such form as it deems appropriate. 
 In circumstances in which rights would otherwise not be
distributed, if an Owner requests the distribution of warrants or other instruments in order to exercise the rights allocable to the American Depositary Shares of such Owner under the Deposit Agreement, the Depositary will make such rights available
to such Owner upon written notice from the Company to the Depositary that (a) the Company has elected in its sole discretion to permit such rights to be exercised and (b) such Owner has executed such

  
 -9-

 
documents as the Company has determined in its sole discretion are reasonably required under applicable law. 
 If the Depositary has distributed warrants or other instruments for rights to all or certain Owners, then upon instruction from such an Owner pursuant to such warrants or other instruments to the
Depositary from such Owner to exercise such rights, upon payment by such Owner to the Depositary for the account of such Owner of an amount equal to the purchase price of the Shares to be received upon the exercise of the rights, and upon payment of
the fees of the Depositary and any other charges as set forth in such warrants or other instruments, the Depositary shall, on behalf of such Owner, exercise the rights and purchase the Shares, and the Company shall cause the Shares so purchased to
be delivered to the Depositary on behalf of such Owner. As agent for such Owner, the Depositary will cause the Shares so purchased to be deposited pursuant to Section 2.02 of the Deposit Agreement, and shall, pursuant to Section 2.03 of
the Deposit Agreement, deliver American Depositary Shares to such Owner. In the case of a distribution pursuant to the second paragraph of this Article 13, such deposit shall be made, and depositary shares shall be delivered, under depositary
arrangements which provide for issuance of depositary shares subject to the appropriate restrictions on sale, deposit, cancellation, and transfer under applicable United States laws. 

If the Depositary determines in its reasonable judgment that it is not lawful and feasible to make such rights available to all or
certain Owners, it may, and at the request of the Company shall use reasonable efforts to, sell the rights, warrants or other instruments in proportion to the number of American Depositary Shares held by the Owners to whom it has determined it may
not lawfully or feasibly make such rights available, and allocate the net proceeds of such sales (net of the fees of the Depositary as provided in Section 5.09 of the Deposit Agreement and all taxes and governmental charges payable in
connection with such rights and subject to the terms and conditions of the Deposit Agreement) for the account of such Owners otherwise entitled to such rights, warrants or other instruments, upon an averaged or other practical basis without regard
to any distinctions among such Owners because of exchange restrictions or the date of delivery of any American Depositary Shares or otherwise. 
 The Depositary will not offer rights to Owners unless both the rights and the securities to which such rights relate are either exempt from registration under the Securities Act of 1933 with respect to a
distribution to all Owners or are registered under the provisions of such Act; provided, that nothing in the Deposit Agreement shall create any obligation on the part of the Company to file a registration statement with respect to such rights or
underlying securities or to endeavor to have such a registration statement declared effective. If an Owner requests the distribution of warrants or other instruments, notwithstanding that there has been no such registration under the Securities Act
of 1933, the Depositary shall not effect such distribution unless it has received an opinion from recognized counsel in the United States for the Company upon which the Depositary may rely that such distribution to such Owner is exempt from such
registration. 

  
 -10-

 The Depositary shall not be responsible for any failure to determine that it may be lawful
or feasible to make such rights available to Owners in general or any Owner in particular. 
 14. CONVERSION OF FOREIGN CURRENCY.

 Whenever the Depositary or the Custodian shall receive foreign currency, by way of dividends or other distributions or the net
proceeds from the sale of securities, property or rights, and if at the time of the receipt thereof the foreign currency so received can in the judgment of the Depositary be converted on a reasonable basis into Dollars and the resulting Dollars
transferred to the United States, the Depositary shall convert or cause to be converted by sale or in any other manner that it may determine, such foreign currency into Dollars, and such Dollars shall be distributed to the Owners entitled thereto
or, if the Depositary shall have distributed any warrants or other instruments which entitle the holders thereof to such Dollars, then to the holders of such warrants and/or instruments upon surrender thereof for cancellation. Such distribution may
be made upon an averaged or other practicable basis without regard to any distinctions among Owners on account of exchange restrictions, the date of delivery of any American Depositary Shares or otherwise and shall be net of any expenses of
conversion into Dollars incurred by the Depositary as provided in Section 5.09 of the Deposit Agreement. 
 If such
conversion or distribution can be effected only with the approval or license of any government or agency thereof, the Depositary shall file such application for approval or license, if any, as it may deem desirable. 

If at any time the Depositary shall determine that in its judgment any foreign currency received by the Depositary or the Custodian is
not convertible on a reasonable basis into Dollars transferable to the United States, or if any approval or license of any government or agency thereof which is required for such conversion is denied or in the opinion of the Depositary is not
obtainable, or if any such approval or license is not obtained within a reasonable period as determined by the Depositary, the Depositary may distribute the foreign currency (or an appropriate document evidencing the right to receive such foreign
currency) received by the Depositary to, or in its discretion may hold such foreign currency uninvested and without liability for interest thereon for the respective accounts of, the Owners entitled to receive the same. 

If any such conversion of foreign currency, in whole or in part, cannot be effected for distribution to some of the Owners entitled
thereto, the Depositary may in its discretion make such conversion and distribution in Dollars to the extent permissible to the Owners entitled thereto and may distribute the balance of the foreign currency received by the Depositary to, or hold
such balance uninvested and without liability for interest thereon for the respective accounts of, the Owners entitled thereto. 
 15. RECORD
DATES. 

  
 -11-

 Whenever any cash dividend or other cash distribution shall become payable or any
distribution other than cash shall be made, or whenever rights shall be issued with respect to the Deposited Securities, or whenever the Depositary shall receive notice of any meeting of holders of Shares or other Deposited Securities, or whenever
for any reason the Depositary causes a change in the number of Shares that are represented by each American Depositary Share, or whenever the Depositary shall find it necessary or convenient, the Depositary shall fix a record date, which shall be
the same as, or as near as practicable to, the record date, if any, established by the Company) (a) for the determination of the Owners who shall be (i) entitled to receive such dividend, distribution or rights or the net proceeds of the
sale thereof, (ii) entitled to give instructions for the exercise of voting rights at any such meeting or (iii) responsible for any fee assessed by the Depositary pursuant to the Deposit Agreement, or (b) on or after which each
American Depositary Share will represent the changed number of Shares, subject to the provisions of the Deposit Agreement. 
 16. VOTING OF
DEPOSITED SECURITIES. 
 Upon receipt of notice of any meeting of holders of Shares or other Deposited Securities, if
requested in writing by the Company, the Depositary shall, as soon as practicable thereafter, mail to the Owners of Receipts a notice, the form of which notice shall be in the sole discretion of the Depositary, which shall contain (a) such
information as is contained in such notice of meeting received by the Depositary from the Company, (b) a statement that the Owners as of the close of business on a specified record date will be entitled, subject to any applicable provisions of
French law and of the statuts of the Company, to instruct the Depositary as to the exercise of the voting rights, if any, pertaining to the amount of Shares or other Deposited Securities represented by their respective American Depositary
Shares and (c) a statement as to the manner in which such instructions may be given. Upon the written request of an Owner of American Depositary Shares on such record date, received on or before the date established by the Depositary for such
purpose, the Depositary shall endeavor insofar as practicable to vote or cause to be voted the amount of Shares or other Deposited Securities represented by those American Depositary Shares in accordance with the instructions set forth in such
request. The Depositary shall not vote or attempt to exercise the right to vote that attaches to the Shares or other Deposited Securities, other than in accordance with such instructions. 

There can be no assurance that Owners generally or any Owner in particular will receive the notice described in the preceding paragraph
sufficiently prior to the instruction date to ensure that the Depositary will vote the Shares or Deposited Securities in accordance with the provisions set forth in the preceding paragraph. 

In order to give Owners a reasonable opportunity to instruct the Depositary as to the exercise of voting rights relating to Deposited
Securities, if the Company will request the Depositary to act under Section 4.07 of the Deposit Agreement, the Company shall 

  
 -12-

 
give the Depositary notice of any such meeting or solicitation and details concerning the matters to be voted upon not less than 45 days prior to the meeting date. 

17. CHANGES AFFECTING DEPOSITED SECURITIES. 
 Upon any change in nominal value, change in par value, split-up, consolidation, or any other reclassification of Deposited Securities, or upon any recapitalization, reorganization, merger or
consolidation, or sale of assets affecting the Company or to which it is a party, or upon the redemption or cancellation by the Company of the Deposited Securities, any securities, cash or property which shall be received by the Depositary or a
Custodian in exchange for, in conversion of, in lieu of or in respect of Deposited Securities shall be treated as new Deposited Securities under the Deposit Agreement, and American Depositary Shares shall thenceforth represent, in addition to the
existing Deposited Securities, the right to receive the new Deposited Securities so received, unless additional Receipts are delivered pursuant to the following sentence. In any such case the Depositary may deliver additional American Depositary
Shares as in the case of a dividend in Shares, or call for the surrender of outstanding Receipts to be exchanged for new Receipts specifically describing such new Deposited Securities. 
 18. LIABILITY OF THE COMPANY AND DEPOSITARY. 
 Neither the Depositary nor
the Company nor any of their respective directors, employees, agents or affiliates shall incur any liability to any Owner or Holder (i) if by reason of any provision of any present or future law or regulation of the United States, the Republic
of France or any other country, or of any governmental or regulatory authority or stock exchange, or by reason of any provision, present or future, of the statuts of the Company, or by reason of any provision of any securities issued or
distributed by the Company, or any offering or distribution thereof, or by reason of any act of God or war or terrorism or other circumstances beyond its control, the Depositary or the Company shall be prevented, delayed or forbidden from, or be
subject to any civil or criminal penalty on account of, doing or performing any act or thing which by the terms of the Deposit Agreement or the Deposited Securities it is provided shall be done or performed, (ii) by reason of any
non-performance or delay, caused as aforesaid, in the performance of any act or thing which by the terms of the Deposit Agreement it is provided shall or may be done or performed, (iii) by reason of any exercise of, or failure to exercise, any
discretion provided for in the Deposit Agreement, (iv) for the inability of any Owner or Holder to benefit from any distribution, offering, right or other benefit which is made available to holders of Deposited Securities but is not, under the
terms of the Deposit Agreement, made available to Owners or Holders, or (v) for any special, consequential or punitive damages for any breach of the terms of the Deposit Agreement. Where, by the terms of a distribution pursuant to
Section 4.01, 4.02 or 4.03 of the Deposit Agreement, or an offering or distribution pursuant to Section 4.04 of the Deposit Agreement, or for any other reason, such distribution or offering may not be made available to Owners of Receipts,
and the Depositary may not dispose of such distribution 

  
 -13-

 
or offering on behalf of such Owners and make the net proceeds available to such Owners, then the Depositary shall not make such distribution or offering, and shall allow any rights, if
applicable, to lapse. Neither the Company nor the Depositary nor any of their directors, employees, agents or affiliates assumes any obligation or shall be subject to any liability under the Deposit Agreement to Owners or Holders, except that they
agree to perform their obligations specifically set forth in the Deposit Agreement without negligence or bad faith. The Depositary shall not be subject to any liability with respect to the validity or worth of the Deposited Securities. Neither the
Depositary nor the Company nor any of their directors, employees, agents or affiliates shall be under any obligation to appear in, prosecute or defend any action, suit, or other proceeding in respect of any Deposited Securities or in respect of the
American Depositary Shares, on behalf of any Owner or Holder or other person. Neither the Depositary nor the Company shall be liable for any action or nonaction by it in reliance upon the advice of or information from legal counsel, accountants, any
person presenting Shares for deposit, any Owner or Holder, or any other person believed by it in good faith to be competent to give such advice or information. The Depositary shall not be liable for any acts or omissions made by a successor
depositary whether in connection with a previous act or omission of the Depositary or in connection with a matter arising wholly after the removal or resignation of the Depositary, provided that in connection with the issue out of which such
potential liability arises, the Depositary performed its obligations without negligence or bad faith while it acted as Depositary. The Depositary shall not be liable for the acts or omissions of any securities depository, clearing agency or
settlement system in connection with or arising out of book-entry settlement of Deposited Securities or otherwise. The Depositary shall not be responsible for any failure to carry out any instructions to vote any of the Deposited Securities or for
the manner in which any such vote is cast or the effect of any such vote, provided that any such action or nonaction is in good faith. 
 No disclaimer of liability under the Securities Act of 1933 is intended by any provision of the Deposit Agreement. 
 19. RESIGNATION AND REMOVAL OF THE DEPOSITARY; APPOINTMENT OF SUCCESSOR CUSTODIAN. 
 The Depositary may at any time resign as Depositary under the Deposit Agreement by written notice of its election so to do delivered to the Company, such resignation to take effect upon the appointment of
a successor depositary and its acceptance of such appointment as provided in the Deposit Agreement. The Depositary may at any time be removed by the Company by 120 days prior written notice of such removal, to become effective upon the later of
(i) the 120th day after delivery of the notice to the Depositary and (ii) the appointment of a successor depositary and its acceptance of such appointment as provided in the Deposit Agreement. The Depositary in its discretion may appoint a
substitute or additional custodian or custodians. 

  
 -14-

 20. AMENDMENT. 
 The form of the Receipts and any provisions of the Deposit Agreement may at any time and from time to time be amended by agreement between the Company and the Depositary without the consent of Owners or
Holders in any respect which they may deem necessary or desirable. Any amendment which shall impose or increase any fees or charges (other than taxes and other governmental charges, registration fees, cable, telex or facsimile transmission costs,
delivery costs or other such expenses), or which shall otherwise prejudice any substantial existing right of Owners, shall, however, not become effective as to outstanding American Depositary Shares until the expiration of thirty days after notice
of such amendment shall have been given to the Owners of outstanding American Depositary Shares. Every Owner and Holder of American Depositary Shares, at the time any amendment so becomes effective, shall be deemed, by continuing to hold such
American Depositary Shares or any interest therein, to consent and agree to such amendment and to be bound by the Deposit Agreement as amended thereby. In no event shall any amendment impair the right of the Owner to surrender American Depositary
Shares and receive therefor the Deposited Securities represented thereby, except in order to comply with mandatory provisions of applicable law. 
 21. TERMINATION OF DEPOSIT AGREEMENT. 
 The Company may terminate the
Deposit Agreement by instructing the Depositary to mail notice of termination to the Owners of all American Depositary Shares then outstanding at least 30 days prior to the termination date included in such notice. The Depositary may likewise
terminate the Deposit Agreement, if at any time 60 days shall have expired after the Depositary delivered to the Company a written resignation notice and if a successor depositary shall not have been appointed and accepted its appointment as
provided in the Deposit Agreement; in such case the Depositary shall mail a notice of termination to the Owners of all American Depositary Shares then outstanding at least 30 days prior to the termination date. On and after the date of termination,
the Owner of American Depositary Shares will, upon (a) surrender of such American Depositary Shares, (b) payment of the fee of the Depositary for the surrender of American Depositary Shares referred to in Section 2.05, and
(c) payment of any applicable taxes or governmental charges, be entitled to delivery, to him or upon his order, of the amount of Deposited Securities represented by those American Depositary Shares. If any American Depositary Shares shall
remain outstanding after the date of termination, the Depositary thereafter shall discontinue the registration of transfers of American Depositary Shares, shall suspend the distribution of dividends to the Owners thereof, and shall not give any
further notices or perform any further acts under the Deposit Agreement, except that the Depositary shall continue to collect dividends and other distributions pertaining to Deposited Securities, shall sell rights and other property as provided in
the Deposit Agreement, and shall continue to deliver Deposited Securities, together with any dividends or other distributions received with respect thereto and the net proceeds of the sale of any rights or other property, upon surrender of American

  
 -15-

 
Depositary Shares (after deducting, in each case, the fee of the Depositary for the surrender of American Depositary Shares, any expenses for the account of the Owner of such American Depositary
Shares in accordance with the terms and conditions of the Deposit Agreement, and any applicable taxes or governmental charges). At any time after the expiration of four months from the date of termination, the Depositary may sell the Deposited
Securities then held under the Deposit Agreement and may thereafter hold uninvested the net proceeds of any such sale, together with any other cash then held by it thereunder, unsegregated and without liability for interest, for the pro rata benefit
of the Owners of American Depositary Shares that have not theretofore been surrendered, such Owners thereupon becoming general creditors of the Depositary with respect to such net proceeds. After making such sale, the Depositary shall be discharged
from all obligations under the Deposit Agreement, except to account for such net proceeds and other cash (after deducting, in each case, the fee of the Depositary for the surrender of American Depositary Shares, any expenses for the account of the
Owner of such American Depositary Shares in accordance with the terms and conditions of the Deposit Agreement, and any applicable taxes or governmental charges). Upon the termination of the Deposit Agreement, the Company shall be discharged from all
obligations under the Deposit Agreement except for its obligations to the Depositary with respect to indemnification, charges, and expenses. 

22. DTC DIRECT REGISTRATION SYSTEM AND PROFILE MODIFICATION SYSTEM. 
 (a) Notwithstanding the provisions of Section 2.04 of the Deposit Agreement, the parties acknowledge that the Direct Registration System (“DRS”) and Profile Modification System
(“Profile”) shall apply to uncertificated American Depositary Shares upon acceptance thereof to DRS by DTC. DRS is the system administered by DTC pursuant to which the Depositary may register the ownership of uncertificated American
Depositary Shares, which ownership shall be evidenced by periodic statements issued by the Depositary to the Owners entitled thereto. Profile is a required feature of DRS which allows a DTC participant, claiming to act on behalf of an Owner, to
direct the Depositary to register a transfer of those American Depositary Shares to DTC or its nominee and to deliver those American Depositary Shares to the DTC account of that DTC participant without receipt by the Depositary of prior
authorization from the Owner to register such transfer. 
 (b) In connection with and in accordance with the arrangements and
procedures relating to DRS/Profile, the parties understand that the Depositary will not verify, determine or otherwise ascertain that the DTC participant which is claiming to be acting on behalf of an Owner in requesting registration of transfer and
delivery described in subsection (a) has the actual authority to act on behalf of the Owner (notwithstanding any requirements under the Uniform Commercial Code). For the avoidance of doubt, the provisions of Sections 5.03 and 5.08 of the
Deposit Agreement shall apply to the matters arising from the use of the DRS. The parties agree that the Depositary’s reliance on and 

  
 -16-

 
compliance with instructions received by the Depositary through the DRS/Profile System and in accordance with the Deposit Agreement, shall not constitute negligence or bad faith on the part of
the Depositary. 
 23. SUBMISSION TO JURISDICTION; JURY TRIAL WAIVER; WAIVER OF IMMUNITIES. 

In the Deposit Agreement, the Company has (i) appointed
                    , in the State of New York, as the Company’s authorized agent upon which process may be served in any suit or
proceeding arising out of or relating to the Shares or Deposited Securities, the American Depositary Shares, the Receipts or this Agreement, (ii) consented and submitted to the jurisdiction of any state or federal court in the State of New York
in which any such suit or proceeding may be instituted and (iii) agreed that service of process upon said authorized agent shall be deemed in every respect effective service of process upon the Company in any such suit or proceeding.

 EACH PARTY TO THE DEPOSIT AGREEMENT (INCLUDING EACH OWNER AND HOLDER) THEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY SUIT, ACTION OR PROCEEDING AGAINST THE COMPANY AND/OR THE DEPOSITARY DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THE SHARES OR OTHER DEPOSITED SECURITIES, THE
AMERICAN DEPOSITARY SHARES OR THE RECEIPTS, THE DEPOSIT AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREIN OR THEREIN, OR THE BREACH HEREOF OR THEREOF, INCLUDING, WITHOUT LIMITATION, ANY QUESTION REGARDING EXISTENCE, VALIDITY OR TERMINATION (WHETHER
BASED ON CONTRACT, TORT OR ANY OTHER THEORY). 
 To the extent that the Company or any of its properties, assets or revenues may
have or hereafter become entitled to, or have attributed to it, any right of immunity, on the grounds of sovereignty or otherwise, from any legal action, suit or proceeding, from the giving of any relief in any respect thereof, from setoff or
counterclaim, from the jurisdiction of any court, from service of process, from attachment upon or prior to judgment, from attachment in aid of execution or judgment, or other legal process or proceeding for the giving of any relief or for the
enforcement of any judgment, in any jurisdiction in which proceedings may at any time be commenced, with respect to its obligations, liabilities or any other matter under or arising out of or in connection with the Shares or Deposited Securities,
the American Depositary Shares, the Receipts or the Deposit Agreement, the Company, to the fullest extent permitted by law, hereby irrevocably and unconditionally waives, and agrees not to plead or claim, any such immunity and consents to such
relief and enforcement. 
 23. DISCLOSURE OF INTERESTS. 

  
 -17-

 Notwithstanding any other provisions of the Deposit Agreement, each Owner and Holder of
American Depositary Shares agrees to comply with the Company’s statuts, as they may be amended from time to time, and the laws of the Republic of France, if applicable, with respect to the disclosure requirements regarding ownership of
Shares, as if the American Depositary Shares were, for this purpose, the amount of Shares they represent. 
 In order to
facilitate compliance with the notification requirements, an Owner or Holder of American Depositary Shares may deliver any notification to the Depositary with respect to the amount of Shares represented thereby, and the Depositary shall, as promptly
as practicable, forward that notification to the Company and, if applicable, the Société des Bourses Françaises or any other authorities in the Republic of France. 

  
 -18-Stock Option Subscription Plans

 Exhibit 10.1 
 - SEQUANS COMMUNICATIONS - 
 Regulations 

 
  

Stock Option Subscription Plan - 2006-1 

 - CONTENTS - 
 I - DEFINITION OF STOCK OPTION SUBSCRIPTION PLAN 
 II - LEGAL FRAMEWORK FOR THE PLAN

 IIl - DESCRIPTION OF THE PLAN 
  

	 	•	 	 Issuing the Options 

  

	 	•	 	 Number of shares covered by the Options 

  

	 	•	 	 Features and period of validity of the Options 

  

	 	•	 	 Cessation of the Beneficiary’s duties with the Company or one of its subsidiaries 

 

	 	•	 	 Setting the subscription price for shares covered by the Options 

 

	 	•	 	 Adjusting the subscription price and number of shares covered by the Options 

IV - REQUIREMENTS AND PROCEDURES FOR EXERCISING OPTIONS 
  

	 	•	 	 Suspension of the rights to exercise the Options 

  

	 	•	 	 Procedures and conditions for Exercising the Options 

 V - FEATURES OF SHARES SUBSCRIBED 
  

	 	•	 	 Delivery ad form of shares 

  

	 	•	 	 Rights 

  

	 	•	 	 Availability of shares 

VI - TAX PROVISIONS 

  
 - 2/8 -

 I - DEFINITION OF STOCK OPTION SUBSCRIPTION PLAN 

In order to reward its employees and those of its subsidiaries, Sequans Communications wishes to set up a system enabling them to share in its growth.

 A stock option subscription plan is a mechanism by which a company offer its employees and/or company officers, as well as the employees of
its subsidiaries within the meaning of Article 804 of the law of 24 July 1966, the possibility of subscribing for new shares during a certain period, at a price set on the date the Options are issued, and that remains fixed during the entire
period. 
 In this way, the beneficiaries participate in their company’s performance through the changes in share value, even before they
become shareholders by exercising the options to subscribe for shares (hereinafter “Options”). 
 Furthermore, the financial benefit
obtained by exercising the Options and by a subsequent sate of the shares is subject to a specific tax treatment. 
 II -
LEGAL FRAMEWORK FOR THE PLAN 
 This mechanism governed, in particular, by law no. 70-1322 of 31 December 1970 and decree no. 71-418 of
7 June 1971. 
 In a decision taken on 15 December 2005, an extraordinary general shareholders’ meeting voted in favour of the
principle of issuing a total number of 300,000 Options maximum. Each Option gives the holder the right to subscribe for one new class A common share of the Company at the price set for shares issued in connection with the most recent increase
in share capital prior to the actual issue of said Option. 
 In addition, this decision granted the Board of Directors the power to issue these
Options, on one or more occasions, including the authority to determine the beneficiaries and the number of Options to be issued, and the elimination of shareholders’ pre-emptive subscription rights. Furthermore, the Board of Directors was
granted the power to increase share capital by a maximum amount equal to the total number of Options issued, to record the successive increases in share capital as a result of the exercise of the Options, and to carry out all formalities required as
a result thereof. 
 Pursuant to this grant of authority, and using a part of the authority granted to it, at a meeting held on 12 January
2006, the Board of Directors decided the procedures applicable to this stock Option plan (hereinafter “the Plan”), in compliance with the principles decided by the aforementioned extraordinary general shareholders’ meeting and the
statutory provisions cited hereinabove. 
 III - DESCRIPTION OF THE PLAN 

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

  
 - 3/8 -

 III-1. Issuing the Options 
 The Options are issued free of charge to each Beneficiary. 
 No person holding more than 10% of
Sequans Communications’ share capital shall be issued any Options. 
 The number of Options issued to each Beneficiary shall be indicated
in an individual letter sent to him/her by the Chairman. 
 Exercising an Option entities the holder to subscribe for one new class A common
share of Sequans Communications’ share capital at the price set out hereinafter. 
 This number of shares cannot be modified during the
Options’ 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 Options have been issued to him/her, the Beneficiary undertakes to return to the Company a copy of this
Plan and a copy of the “CONTRACTUAL UNDERTAKING” attached to said letter, after the Beneficiary has duly executed said copies. 
 Failure to comply with this formality within the applicable period shall render the Options issued immediately and automatically void. 
 III-2. Features and period of validity of the Options 
 Options are irrevocably
granted for a period of 10 years as from the time they are issued by the Board of Directors. 
 As a result of issuing the Options, the
pre-emptive right of shareholders to subscribe for the new shares to be issued as said Options are exercised will be eliminated in favour of the Beneficiaries. 
 Rights obtained as the result of the Options cannot be transferred until the Options have been exercised. 
 Options must be exercised within the aforementioned maximum period of 10 years. Furthermore, the Beneficiary must comply with the following schedule: 

(i) first grant 
  

	 	•	 	 The Beneficiary may exercise 25% of the Options issued to him/her after the expiry of a period of 12 months following the date he/she joins Sequans
Communications or one of its subsidiaries; 

  

	 	•	 	 Thereafter, the Beneficiary may exercise the remainder of his/her Options at the rate of 1/36th per month for the period between the 13th and 48th month following the date he/she joins Sequans Communications or one of its subsidiaries. 

  
 - 4/8 -

 (i) further grant(s) 
  

	 	•	 	 The Beneficiary may exercise 25% of the Options issued to him/her after the expiry of a period of 12 months following the date of such issue;

  

	 	•	 	 Thereafter, the Beneficiary may exercise the remainder of his/her Options at the rate of 1/36th per month for the period between the 13th and 48th month following the date of the aforesaid issue. 

The first exercise must cover 25% of the Options issued to the Beneficiary, in accordance with the schedule set out above. 

In the event that a third party acquires a 100% Interest in Sequans Communications, and in no other case, a Beneficiary who is subsequently dismissed for
genuine material cause shall have the right to exercise all of his/her Options within a period of 30 days following the date of said dismissal, notwithstanding the schedule set out above for exercising his/her Options. 

In the event that a company ceases to be a subsidiary of Sequans Communications, all Options held by the employees of such subsidiary, and that have not
been exercised before such time, shall automatically and immediately become void. 
 In any event, any Option that is not exercised before the
expiry of the aforementioned 10-year period shall be null and void. 
 III-3. Cessation of the Beneficiary’s duties with Sequans
Communications or one of its subsidiaries 
 In the event that the Beneficiary’s duties with Sequans Communications or one of its
subsidiaries, whether as an employee or company officer, cease due to resignation, redundancy, dismissal, incapacity or death, regardless of the reason: 
  

	 	•	 	 Said Beneficiary shall lose all rights with regard to Options that are not yet exercisable on the dale that his/her duties cease in accordance with the
schedule for exercising the Options set out in Article III-2. hereinabove. 

 However, the Beneficiary retains
the right to exercise Options that are exercisable and that have not yet been exercised, provided that the Beneficiary exercises his/her Options 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 have a period of 6 months [to exercise the Options],

 After the expiry of the periods hereinabove, the Beneficiary, his/her heirs or beneficiaries lose all rights with regard to
unexercised Options. 

  
 - 5/8 -

 III-4. Setting the subscription price for shares obtained by exercising the Options

 A general shareholders’ meeting set the subscription price for share to be issued pursuant to an exercise of the Options at the
price set for shares issued pursuant to the most recent increase in share capital prior to the actual issue of said Option. 
 Consequently, the
subscription price or shares to be issued pursuant to exercising the Option is set in the amount of EUR 0.60 per share (of which EUR 0.59 is an issue premium), i.e., the issue price for shares decided in connection with the increase in
share capital voted by the extraordinary general shareholders’ meeting held on 14 February 2005. 
 This price may not be changed
during the the Options’ period of validity, except in the event of adjustments in accordance with statutory and regulatory requirements. 

III-5. Maintaining the rights of Option holders during the exercise period 
 During the entire period of validity, the Company shall be entitled to change its corporate form or company objects, create new preferred shares, redeem its share capital or amend the rules for the
allocation of profits. The Company shall, consequently, take the measure necessary to maintain the rights of Options’ holders, in accordance with applicable laws an regulations. 

IV - REQUIREMENTS AND PROCEDURES FOR EXERCISING OPTIONS  
 IV-1. Suspension of the rights to exercise the Options 
 If necessary, the Board of
Directors may suspend the right to exercise the Options. In particular, a suspension may be ordered whenever a transaction concerning Sequans Communications’ share capital requires knowing in advance the exact number of shares that make up
share capital or in the event that one of the financial transactions requiring an adjustment is carried out. 
 In such case, Sequans
Communications shall inform the Beneficiaries of the Options, indicating the date of the suspension and the date on which the right to exercise Options will be re-established. Such suspension may not exceed 3 months. 

If the right to exercise an Option expires during a period in which rights are suspended, the period for exercising the Option shall be extended by 3
months. 
 IV-2. Conditions for exercising Options 
 All requests for exercising Options, documented by the signature of a subscription certificate specific to the Plan, shall be sent to Sequans Communications, and must be accompanied by a cheque made out
to the Company’s order in an amount corresponding to the number of shares 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. 

  
 - 6/8 -

 V - FEATURES OF SHARES SUBSCRIBED 

V-1. Delivery and form of shares 

Shares acquired by exercising Options 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. Rights - Availability 

The new shares, ordinary class A shares, shall be subject to all provisions of the memorandum and articles of association and shall enjoy all rights
pertaining to shares of such class as from the date the increase in share capital is completed. 
 These shares shall be immediately
transferable, in compliance with the “CONTRACTUAL UNDERTAKING”. 

VI - TAX PROVISIONS 

VI-1. THE TAX PROVISIONS CURRENTLY APPLICABLE TO
BENEFICIARIES WHO ARE EMPLOYEES OF SEQUANS COMMUNICATIONS AND WHO ARE DOMICILED
IN FRANCE ARE EXPLAINED BELOW. 
 1. A Beneficiary who has
exercised Options and subscribed for shares of Sequans Communications receives a gain equal to the difference between the value of the shares on the date the Option is exercised and the subscription price for the shares. 

This gain is subject to favourable tax treatment provided that, the shares are issued as registered shares and that the sale of the shares
obtained by exercising the Options occurs at least four (4) years after such Options are issued. 
 This gain,
treated as a capital gain, realised at the time of purchase, is subject to a 41% tax (i.e., 30% tax, plus 11% for the CSG1, CRD52 and social security contributions) on the amount up to €152,500, and to a 51% tax on the amount above
€152,500. These rates are reduced to 27% and 41% respectively if the Beneficiary holds these shares for an additional period of two (2) years. 
 Failure to comply with these periods will subject these capital gains to the tax treatment applicable to wages and salaries (Article 163 bis C of the French General Tax Code). As an exception to
the foregoing, shares may be sold before the expiry of the four-year period in the event of: 
  

	•	 	 The dismissal of the Beneficiary 

  

	•	 	 The Beneficiary’s retirement 

  

	•	 	 Invalidity deemed to fall within the second and third categories provided in Article L.341-4 of the French Social Security Code

  

	•	 	 The Beneficiary’s death 

 2. Capital gains realised at the time of sale (i.e., the difference between the sale price of the share and the value of such share on the date the Option is exercised) are taxed in accordance with
the tax treatment of capital gains realised on the sale of securities (Articles 92 B, 92 J, 160, 200 A2 of the French General Tax Code), and only if the annual threshold for sales of securities is exceeded (€15,000 in 2004, the total amount of
sales made by a tax household). 
  

	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 -

 The rate applicable is 27% (i.e., the proportional rate of 16%, plus 11% for the CSG, CRDS and social
security contributions). 
 Note: In addition, in order to benefit from this specific tax treatment, the Beneficiary must attach to
his/her income tax return for the year in which the Options are exercised a certificate that will be provided to him/her by the Company. 

VI-2. TAX PROVISIONS APPLICABLE TO BENEFICIARIES
DOMICILED ABROAD AND/OR EMPLOYEES OF SEQUANS COMMUNICATIONS SUBSIDIARIES LOCATED
ABROAD. 
 Beneficiaries domiciled abroad and/or who are employees of a foreign subsidiary of Sequans Communications are
themselves solely responsible for: 
  

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

  

	 	•	 	 Paying all taxes and contributions due as a result. 

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

  
 - 8/8 -

 - SEQUANS COMMUNICATIONS - 

Regulations 
  

 
 Stock Option
Subscription Plan - 2006-2 

 - CONTENTS - 

I - DEFINITION OF STOCK OPTION SUBSCRIPTION PLAN 

II - LEGAL FRAMEWORK FOR THE PLAN 

III - DESCRIPTION OF THE PLAN 
  

	 	•	 	 Issuing the Options 

  

	 	•	 	 Number of shares covered by the Options 

  

	 	•	 	 Features and period of validity of the Options 

  

	 	•	 	 Cessation of the Beneficiary’s duties with the Company or one of its subsidiaries 

 

	 	•	 	 Setting the subscription price for shares covered by the Options 

 

	 	•	 	 Maintaining the rights of Beneficiaries during the exercise period 

IV - REQUIREMENTS AND PROCEDURES FOR EXERCISING OPTIONS 

 

	 	•	 	 Suspension of the rights to exercise the Options 

  

	 	•	 	 Procedures and conditions for exercising the Options 

V - FEATURES OF SHARES SUBSCRIBED 

 

	 	•	 	 Delivery ad form of shares 

  

	 	•	 	 Rights 

  

	 	•	 	 Availability of shares 

 VI - TAX PROVISIONS 

  
 - 2/8 -

 I - DEFINITION OF STOCK OPTION SUBSCRIPTION PLAN 

In order to reward its employees and those of its subsidiaries, Sequans Communications wishes to set up a system enabling them to share in its growth.

 A stock option subscription plan is a mechanism by which a company offer its employees and/or company officers, as well as the employees of
its subsidiaries within the meaning of Article 804 of the law of 24 July 1966, the possibility of subscribing for new shares during a certain period, at a price set on the date the Options are issued, and that remains fixed during the entire
period. 
 In this way, the beneficiaries participate in their company’s performance through the changes in share value, even before they
become shareholders by exercising the options to subscribe for shares (hereinafter “Options”). 
 Furthermore, the financial benefit
obtained by exercising the Options 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, in particular, by law no. 70-1322 of 31 December 1970 and decree no. 71-418
of 7 June 1971. 
 In a decision taken on 8 March 2005, an extraordinary general shareholders’ meeting voted in favour of the
principle of issuing a total number of 1,300,000 Options maximum. Each Option gives the holder the right to subscribe for one new class A common share of the Company at the price set for shares issued in connection with the most recent
increase in share capital prior to the actual issue of said Option. 
 In addition, this decision granted the Board of Directors the power to
issue these Options, on one or more occasions, including the authority to determine the beneficiaries and the number of Options to be issued, and the elimination of shareholders’ pre-emptive subscription rights. Furthermore, the Board of
Directors was granted the power to increase share capital by a maximum amount equal to the total number of Options issued, to record the successive increases in share capital as a result of the exercise of the Options, and to carry out all
formalities required as a result thereof. 
 Pursuant to this grant of authority, and using a part of the authority granted to it, at a meeting
held on 9 March 2006, the Board of Directors decided the procedures applicable to this stock Option plan (hereinafter “the Plan”), in compliance with the principles decided by the aforementioned extraordinary general
shareholders’ meeting and the statutory provisions cited hereinabove. 
 Ill - DESCRIPTION OF THE PLAN 

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

  
 - 3/8 -

 III-1. Issuing the Options 
 The Options are issued free of charge to each Beneficiary. 
 No person holding more than 10% of
Sequans Communications’ share capital shall be issued any Options. 
 The number of Options issued to each Beneficiary shall be indicated
in an individual letter sent to him/her by the Chairman. 
 Exercising an Option entitles the holder to subscribe for one new class A common
share of Sequans Communications’ share capital at the price set out hereinafter. 
 This number of shares cannot be modified during the
Options’ 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 Options have been issued to him/her, the Beneficiary undertakes to return to the Company a copy of this
Plan and a copy of the “CONTRACTUAL UNDERTAKING” attached to said letter, after the Beneficiary has duly executed said copies. 
 Failure to comply with this formality within the applicable period shall render the Options issued immediately and automatically void. 
 III-2. Features and period of validity of the Options 
 Options are irrevocably
granted for a period of 10 years as from the time they are issued by the Board of Directors. 
 As a result of issuing the Options, the
pre-emptive right of shareholders to subscribe for the new shares to be issued as said Options are exercised will be eliminated in favour of the Beneficiaries. 
 Rights obtained as the result of the Options cannot be transferred until the Options have been exercised. 
 Options must be exercised within the aforementioned maximum period of 10 years. Furthermore, the Beneficiary must comply with the following schedule: 

(i) first grant 
  

	 	•	 	 The Beneficiary may exercise 25% of the Options issued to him/her after the expiry of a period of 12 months following the date he/she joins Sequans
Communications or one of its subsidiaries; 

  

	 	•	 	 Thereafter, the Beneficiary may exercise the remainder of his/her Options at the rate of 1/36th per month for the period between the 13th and 48th month following the date he/she joins Sequans Communications or one of its subsidiaries. 

  
 - 4/8 -

 (i) further grant(s) 
  

	 	•	 	 The Beneficiary may exercise 25% of the Options issued to him/her after the expiry of a period of 12 months following the date of such issue;

  

	 	•	 	 Thereafter, the Beneficiary may exercise the remainder of his/her Options at the rate of 1/36th per month for the period between the 13th and 48th month following the date of the aforesaid issue. 

The first exercise must cover 25% of the Options issued to the Beneficiary, in accordance with the schedule set out above. 

In the event that a third party acquires a 100% interest in Sequans Communications, and in no other case, a Beneficiary who is subsequently dismissed for
genuine material cause shall have the right to exercise all of his/her Options within a period of 30 days following the date of said dismissal, notwithstanding the schedule set out above for exercising his/her Options. 

In the event that a company ceases to be a subsidiary of Sequans Communications, all Options held by the employees of such subsidiary, and that have not
been exercised before such time, shall automatically and immediately become void. 
 In any event, any Option that is not exercised before the
expiry of the aforementioned 10-year period shall be null and void. 
 III-3. Cessation of the Beneficiary’s duties with Sequans
Communications or one of its subsidiaries 
 In the event that the Beneficiary’s duties with Sequans Communications or one of its
subsidiaries, whether as an employee or company officer, cease due to resignation, redundancy, dismissal, incapacity or death, regardless of the reason: 
  

	 	•	 	 Said Beneficiary shall lose all rights with regard to Options that are not yet exercisable on the date that his/her duties cease in accordance with the
schedule for exercising the Options set out in Article III-2 hereinabove. 

 However, the Beneficiary retains
the right to exercise Options that are exercisable and that have not yet been exercised, provided that the Beneficiary exercises his/her Options 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 have a period of 6 months to exercise the Options. 

After the expiry of the periods hereinabove, the Beneficiary, his/her heirs or beneficiaries lose all rights with regard to unexercised
Options. 

  
 - 5/8 -

 III-4. Setting the subscription price for shares obtained by exercising the Options

 A general shareholders’ meeting set the subscription price for shares to be issued pursuant to an exercise of the Options at the
price set for shares issued pursuant to the most recent increase in share capital prior to the actual issue of said Option. 
 Consequently, the
subscription price for shares to be issued pursuant to exercising the Option is set in the amount of EUR 0.60 per share (of which EUR 0.59 is an issue premium), i.e., the issue price for shares decided in connection with the increase in
share capital voted by the extraordinary general shareholders’ meeting held on 14 February 2005. 
 This price may not be changed
during the the Options’ period of validity, except in the event of adjustments in accordance with statutory and regulatory requirements. 

III-5. Maintaining the rights of Option holders during the exercise period 
 During the entire period of validity, the Company shall be entitled to change its corporate form or company objects, create new preferred shares, redeem its share capital or amend the rules for the
allocation of profits. The Company shall, consequently, take the measure necessary to maintain the rights of Options’ holders, in accordance with applicable laws an regulations. 

IV - REQUIREMENTS AND PROCEDURES FOR EXERCISING OPTIONS 
 IV-1. Suspension of the rights to exercise the Options 
 If necessary, the Board of
Directors may suspend the right to exercise the Options. In particular, a suspension may be ordered whenever a transaction concerning Sequans Communications’ share capital requires knowing in advance the exact number of shares that make up
share capital or in the event that one of the financial transactions requiring an adjustment is carried out. 
 In such case, Sequans
Communications shall inform the Beneficiaries of the Options, indicating the date of the suspension and the date on which the right to exercise Options will be re-established. Such suspension may not exceed 3 months. 

If the right to exercise an Option expires during a period in which rights are suspended, the period for exercising the Option shall be extended by 3
months. 
 IV-2. Conditions for exercising Options 
 All requests for exercising Options, documented by the signature of a subscription certificate specific to the Plan, shall be sent to Sequans Communications, and must be accompanied by a cheque made out
to the Company’s order in an amount corresponding to the number of shares 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. 

  
 - 6/8 -

 V - FEATURES OF SHARES SUBSCRIBED 

V-1. Delivery and form of shares 

Shares acquired by exercising Options 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. Rights - Availability 

The new shares, ordinary class A shares, shall be subject to all provisions of the memorandum and articles of association and shall enjoy all rights
pertaining to shares of such class as from the date the increase in share capital is completed. 
 These shares shall be immediately
transferable, in compliance with the “CONTRACTUAL UNDERTAKING”. 

VI - TAX PROVISIONS 

VI-1. THE TAX PROVISIONS CURRENTLY APPLICABLE TO
BENEFICIARIES WHO ARE EMPLOYEES OF SEQUANS COMMUNICATIONS AND WHO ARE DOMICILED
IN FRANCE ARE EXPLAINED BELOW. 
 1. A Beneficiary who has
exercised Options and subscribed for shares of Sequans Communications receives a gain equal to the difference between the value of the shares on the date the Option is exercised and the subscription price for the shares. 

This gain is subject to favourable tax treatment provided that the shares are issued as registered shares and that the sale of the shares
obtained by exercising the Options occurs at least four (4) years after such Options are issued. 
 This gain,
treated as a capital gain realised at the time of purchase, is subject to a 41% tax (i.e., 30% tax, plus 11% for the CSG1, CRDS2 and social security contributions) on the amount up to €152,500, and to a 51% tax on the amount above
€152,500. These rates are reduced to 27% and 41% respectively if the Beneficiary holds these shares for an additional period of two (2) years. 
 Failure to comply with these periods will subject these capital gains to the tax treatment applicable to wages and salaries (Article 163 bis C of the French General Tax Code). As an exception to
the foregoing, shares may be sold before the expiry of the four-year period in the event of: 
  

	•	 	 The dismissal of the Beneficiary 

  

	•	 	 The Beneficiary’s retirement 

  

	•	 	 Invalidity deemed to fall within the second and third categories provided in Article L.341-4 of the French Social Security Code

  

	•	 	 The Beneficiary’s death 

 2. Capital gains realised at the time of sale (i.e., the difference between the sale price of the share and the value of such share on the date the Option is exercised) are taxed in accordance with
the tax treatment of capital gains realised on the sale of securities (Articles 92 B, 92 J, 160, 200 A2 of the French General Tax Code), and only if the annual threshold for sales of securities is exceeded (€15,000 in 2004, the total amount of
sales made by a tax household). 
  

	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 -

 The rate applicable is 27% (i.e., the proportional rate of 16%, plus 11% for the CSG, CRDS and social
security contributions). 
 Note: In addition, in order to benefit from this specific tax treatment, the Beneficiary must attach to
his/her income tax return for the year in which the Options are exercised a certificate that will be provided to him/her by the Company. 

VI-2. TAX PROVISIONS APPLICABLE TO BENEFICIARIES
DOMICILED ABROAD AND/OR EMPLOYEES OF SEQUANS COMMUNICATIONS SUBSIDIARIES LOCATED
ABROAD. 
 Beneficiaries domiciled abroad and/or who are employees of a foreign subsidiary of Sequans Communications are
themselves solely responsible for: 
  

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

  

	 	•	 	 Paying all taxes and contributions due as a result. 

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

  
 - 8/8 -

 - SEQUANS COMMUNICATIONS - 

Regulations 
  

 
 Stock Option
Subscription Plan - 2006-3 

 - CONTENTS - 
 I - DEFINITION OF STOCK OPTION SUBSCRIPTION PLAN 
 II - LEGAL FRAMEWORK FOR THE PLAN

 III - DESCRIPTION OF THE PLAN 
  

	 	•	 	 Issuing the Options 

  

	 	•	 	 Number of shares covered by the Options 

  

	 	•	 	 Features and period of validity of the Options 

  

	 	•	 	 Cessation of the Beneficiary’s duties with the Company or one of its subsidiaries 

 

	 	•	 	 Setting the subscription price for shares covered by the Options 

 

	 	•	 	 Maintaining the rights of Beneficiaries during the exercise period 

 IV - REQUIREMENTS AND PROCEDURES FOR EXERCISING OPTIONS 
  

	 	•	 	 Suspension of the rights to exercise the Options 

  

	 	•	 	 Procedures and conditions for exercising the Options 

 V - FEATURES OF SHARES SUBSCRIBED 
  

	 	•	 	 Delivery ad form of shares 

  

	 	•	 	 Rights 

  

	 	•	 	 Availability of shares 

VI - TAX PROVISIONS 

  
 - 2/8 -

 I - DEFINITION OF STOCK OPTION SUBSCRIPTION PLAN 

In order to reward its employees and those of its subsidiaries, Sequans Communications wishes to set up a system enabling them to share in its growth.

 A stock option subscription plan is a mechanism by which a company offer its employees and/or company officers, as well as the employees of
its subsidiaries within the meaning of Article 804 of the law of 24 July 1966, the possibility of subscribing for new shares during a certain period, at a price set on the date the Options are issued, and that remains fixed during the entire
period. 
 In this way, the beneficiaries participate in their company’s performance through the changes in share value, even before they
become shareholders by exercising the options to subscribe for shares (hereinafter “Options”). 
 Furthermore, the financial benefit
obtained by exercising the Options 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, in particular, by law no. 70-1322 of 31 December 1970 and decree no. 71-418
of 7 June 1971. 
 In a decision taken on 8 March 2005, an extraordinary general shareholders’ meeting voted in favour of the
principle of issuing a total number of 1,300,000 Options maximum. Each Option gives the holder the right to subscribe for one new class A common share of the Company at the price set for shares issued in connection with the most recent
increase in share capital prior to the actual issue of said Option. 
 In addition, this decision granted the Board of Directors the power to
issue these Options, on one or more occasions, including the authority to determine the beneficiaries and the number of Options to be issued, and the elimination of shareholders’ pre-emptive subscription rights. Furthermore, the Board of
Directors was granted the power to increase share capital by a maximum amount equal to the total number of Options issued, to record the successive increases in share capital as a result of the exercise of the Options, and to carry out all
formalities required as a result thereof. 
 Pursuant to this grant of authority, and using a part of the authority granted to it, at a meeting
held on 9 March 2006, the Board of Directors decided the procedures applicable to this stock Option plan (hereinafter “the Plan”), in compliance with the principles decided by the aforementioned extraordinary general
shareholders’ meeting and the statutory provisions cited hereinabove. 
 Ill - DESCRIPTION OF THE PLAN 

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

  
 - 3/8 -

 III-1. Issuing the Options 
 The Options are issued free of charge to each Beneficiary. 
 No person holding more than 10% of
Sequans Communications’ share capital shall be issued any Options. 
 The number of Options issued to each Beneficiary shall be indicated
in an INDIVIDUAL LETTER OF GRANT sent to him/her by the Chairman. 
 Exercising an
Option entitles the holder to subscribe for one new class A common share of Sequans Communications’ share capital at the price set out hereinafter. 
 This number of shares cannot be modified during the Options’ 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 Options
have been issued to him/her, the Beneficiary undertakes to return to the Company a copy of this Plan and a copy of the “CONTRACTUAL UNDERTAKING” attached to said letter, after the
Beneficiary has duly executed said copies. 
 Failure to comply with this formality within the applicable period shall render the Options issued
immediately and automatically void. 
 III-2. Features and period of validity of the Options 

Options are irrevocably granted for a period of 10 years as from the time they are issued by the Board of Directors. 

As a result of issuing the Options, the pre-emptive right of shareholders to subscribe for the new shares to be issued as said Options are exercised will
be eliminated in favour of the Beneficiaries. 
 Rights obtained as the result of the Options cannot be transferred until the Options have been
exercised. 
 Options must be exercised within the aforementioned maximum period of 10 years and the first exercise must cover 25% of the
Options issued to the Beneficiary, in accordance with the exercise conditions set forth below. 
 The Beneficiary is entitled to exercise the
allocated Options only if such Options have Vested, pursuant to the following Vesting and exercise schedule: 
  

			
	1st Vesting milestone:	  	25% of the allocated Options will vest on June 30, 2007 and the Beneficiary will be entitled to exercise them if the RF IC development activity results in the
availability of a Functional WIMAX RF IC Engineering Sample (i.e. measured performance close to the specifications; of the RF IC component) by June 30 2007;

  
 - 4/8 -

			
	2nd Vesting milestone:	  	in addition to the vesting related to the
1st previous milestone, 45% of the allocated Options will
vest on December 31, 2007 and the Beneficiary will be entitled to exercise them if the RF IC development activity results in the general availability for sale of the WIMAX RF IC as Production Unit by December 31
2007;
		
	3rd Vesting milestone:	  	in addition to the previous milestones, 30% of the allocated Options will vest on December 31, 2008 and the Beneficiary will be entitled to exercise them if the
effective sales of the WIMAX RF IC by Sequans Communications by December 31 2008 is greater than one million (1,000,000) units.

 In the event that a third party acquires a 100% interest in Sequans Communications, and in no other case, a Beneficiary who is subsequently dismissed for genuine material cause shall have the right to
exercise all of his/her Options within a period of 30 days following the date of said dismissal, notwithstanding the schedule set out above for exercising his/her Options. 
 In the event that a company ceases to be a subsidiary of Sequans Communications, all Options held by the employees of such subsidiary, and that have not been exercised before such time, shall
automatically and immediately become void. 
 In any event, any Option that is not exercised before the expiry of the aforementioned 10-year
period shall be null and void. 
 III-3. Cessation of the Beneficiary’s duties with Sequans Communications or one of its subsidiaries

 In the event that the Beneficiary’s duties with Sequans Communications or one of its subsidiaries, whether as an employee or
company officer, cease due to resignation, redundancy, dismissal, incapacity or death, regardless of the reason: 
  

	 	•	 	 Said Beneficiary shall lose all rights with regard to Options that are not yet exercisable on the date that his/her duties cease in accordance with the
schedule for exercising the Options set out in Article III-2. hereinabove. 

 However, the Beneficiary retains
the right to exercise Options that are exercisable and that have not yet been exercised, provided that the Beneficiary exercises his/her Options 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 have a period of 6 months to exercise the Options. 

After the expiry of the periods hereinabove, the Beneficiary, his/her heirs or beneficiaries lose all rights with regard to unexercised
Options. 
 III-4. Setting the subscription price for shares obtained by exercising the Options 

  
 - 5/8 -

 A general shareholders’ meeting set the subscription price for shares to be issued pursuant to an
exercise of the Options at the price set for shares issued pursuant to the most recent increase in share capital prior to the actual issue of said Option. 
 Consequently, the subscription price for shares to be issued pursuant to exercising the Option is set in the amount of EUR 0.60 per share (of which EUR 0.59 is an issue premium), i.e.,
the Issue price for shares decided in connection with the increase in share capital voted by the extraordinary general shareholders’ meeting held on 14 February 2005. 
 This price may not be changed during the Options’ period of validity, except in the event of adjustments in accordance with statutory and regulatory requirements. 

III-5. Maintaining the rights of Option holders during the exercise period 
 During the entire period of validity, the Company shall be entitled to change its corporate form or company objects, create new preferred shares, redeem its share capital or amend the rules for the
allocation of profits. The Company shall, consequently, take the measure necessary to maintain the rights of Options’ holders, in accordance with applicable laws an regulations. 

IV - REQUIREMENTS AND PROCEDURES FOR EXERCISING OPTIONS 
 IV-1. Suspension of the rights to exercise the Options 
 If necessary, the Board of
Directors may suspend the right to exercise the Options. In particular, a suspension may be ordered whenever a transaction concerning Sequans Communications’ share capital requires knowing in advance the exact number of shares that make up
share capital or in the event that one of the financial transactions requiring an adjustment is carried out 
 In such case, Sequans
Communications shall inform the Beneficiaries of the Options, indicating the date of the suspension and the date on which the right to exercise Options will be re-established. Such suspension may not exceed 3 months. 

If the right to exercise an Option expires during a period in which rights are suspended, the period for exercising the Option shall be extended by 3
months. 
 IV-2 Conditions for exercising Options 
 All requests for exercising Options, documented by the signature of a subscription certificate specific to the Plan, shall be sent to Sequans Communications, and must be accompanied by a cheque made out
to the Company’s order in an amount corresponding to the number of shares 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 

  
 - 6/8 -

 Shares acquired by exercising Options 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. Rights - Availability

 The new shares, ordinary class A shares, shall be subject to all provisions of the memorandum and articles of association and shall
enjoy all rights pertaining to shares of such class as from the date the increase in share capital is completed. 
 These shares shall be
immediately transferable, in compliance with the “CONTRACTUAL UNDERTAKING”. 
 VI - TAX PROVISIONS 
 VI-1. THE TAX
PROVISIONS CURRENTLY APPLICABLE TO BENEFICIARIES WHO ARE EMPLOYEES OF SEQUANS
COMMUNICATIONS AND WHO ARE DOMICILED IN FRANCE ARE EXPLAINED BELOW. 

1. A Beneficiary who has exercised Options and subscribed for shares of Sequans Communications receives a gain equal to the difference between the
value of the shares on the date the Option is exercised and the subscription price for the shares. 
 This gain is subject to favourable tax
treatment provided that the shares are issued as registered shares and that the sale of the shares obtained by exercising the Options occurs at least four (4) years after such Options are issued. 

This gain, treated as a capital gain realised at the time of purchase, is subject to a 41% tax (i.e., 30% tax, plus 11%
for the CSG1, CRDS2 and social security contributions) on the amount up to €152,500,
and to a 51% tax on the amount above €152,500. These rates are reduced to 27% and 41% respectively if the Beneficiary holds these shares for an additional period of two (2) years. 
 Failure to comply with these periods will subject these capital gains to the tax treatment applicable to wages and salaries (Article 163 bis C of the French General Tax Code). As an exception to
the foregoing, shares may be sold before the expiry of the four-year period in the event of: 
  

	•	 	 The dismissal of the Beneficiary 

  

	•	 	 The Beneficiary’s retirement 

  

	•	 	 Invalidity deemed to fall within the second and third categories provided in Article L.341-4 of the French Social Security Code

  

	•	 	 The Beneficiary’s death 

 2. Capital gains realised at the time of sale (i.e., the difference between the sale price of the share and the value of such share on the date the Option is exercised) are taxed in accordance with
the tax treatment of capital gains realised on the sale of securities (Articles 92 B, 92 J, 160, 200 A2 of the French General Tax Code), and only if the annual threshold for sales of securities is exceeded (€15,000 in 2004, the total amount of
sales made by a tax household). 
 The rate applicable is 27% (i.e., the proportional rate of 16%, plus 11% for the CSG, CRDS and social
security contributions). 
  

	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 -

 Note: In addition, in order to benefit from this specific tax treatment, the Beneficiary must attach
to his/her Income tax return for the year in which the Options are exercised a certificate that will be provided to him/her by the Company. 

VI-2. TAX PROVISIONS APPLICABLE TO BENEFICIARIES
DOMICILED ABROAD AND/OR EMPLOYEES OF SEQUANS COMMUNICATIONS SUBSIDIARIES LOCATED
ABROAD. 
 Beneficiaries domiciled abroad and/or who are employees of a foreign subsidiary of Sequans Communications are
themselves solely responsible for: 
  

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

  

	 	•	 	 Paying all taxes and contributions due as a result. 

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

  
 - 8/8 -

 - SEQUENS COMMUNICATIONS - 

Regulations 
  

 
 Stock Option
Subscription Plan - 2006-4 

 - CONTENTS - 
 I - DEFINITION OF STOCK OPTION SUBSCRIPTION PLAN 
 II - LEGAL FRAMEWORK FOR THE PLAN

 III - DESCRIPTION OF THE PLAN 
  

	 	•	 	 Issuing the Options 

  

	 	•	 	 Number of shares covered by the Options 

  

	 	•	 	 Features and period of validity of the Options 

  

	 	•	 	 Cessation of the Beneficiary’s duties with the Company or one of its subsidiaries 

 

	 	•	 	 Setting the subscription price for shares covered by the Options 

 

	 	•	 	 Maintaining the rights of Beneficiaries during the exercise period 

 IV - REQUIREMENTS AND PROCEDURES FOR EXERCISING OPTIONS 
  

	 	•	 	 Suspension of the rights to exercise the Options 

  

	 	•	 	 Procedures and conditions for exercising the Options 

 V - FEATURES OF SHARES SUBSCRIBED 
  

	 	•	 	 Delivery ad form of shares 

  

	 	•	 	 Rights 

  

	 	•	 	 Availability of shares 

VI - TAX PROVISIONS 

  
 - 2/8 -

 I - DEFINITION OF STOCK OPTION SUBSCRIPTION PLAN 

In order to reward its employees and those of its subsidiaries, Sequans Communications wishes to set up a system enabling them to share in its growth.

 A stock option subscription plan is a mechanism by which a company offer its employees and/or company officers, as well as the employees of
its subsidiaries within the meaning of Article 804 of the law of 24 July 1966, the possibility of subscribing for new shares during a certain period, at a price set on the date the Options are issued, and that remains fixed during the entire
period. 
 In this way, the beneficiaries participate in their company’s performance through the changes in share value, even before they
become shareholders by exercising the options to subscribe for shares (hereinafter “Options”). 
 Furthermore, the financial benefit
obtained by exercising the Options 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, in particular, by law no. 70-1322 of 31 December 1970 and decree no. 71-418
of 7 June 1971. 
 In a decision taken on 17 October 2006, an extraordinary general shareholders’ meeting voted in favour
of the principle of issuing a total number of 750,000 Options maximum. Each Option gives the holder the right to subscribe for one new class A common share of the Company at the price set for shares issued in connection with the most recent
increase in share capital prior to the actual issue of said Option. 
 In addition, this decision granted the Board of Directors the power to
issue these Options, on one or more occasions, including the authority to determine the beneficiaries and the number of Options to be issued, and the elimination of shareholders’ pre-emptive subscription rights. Furthermore, the Board of
Directors was granted the power to increase share capital by a maximum amount equal to the total number of Options issued, to record the successive increases in share capital as a result of the exercise of the Options, and to carry out all
formalities required as a result thereof. 
 Pursuant to this grant of authority, and using a part of the authority granted to it, at a meeting
held on 9 November 2006, the Board of Directors decided the procedures applicable to this stock Option plan (hereinafter “the Plan”), in compliance with the principles decided by the aforementioned extraordinary general
shareholders’ meeting and the statutory provisions cited hereinabove. 
 Ill - DESCRIPTION OF THE PLAN 

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

  
 - 3/8 -

 III-1. Issuing the Options 
 The Options are issued free of charge to each Beneficiary. 
 No person holding more than 10% of
Sequans Communications’ share capital shall be issued any Options. 
 The number of Options issued to each Beneficiary shall be indicated
in an individual letter sent to him/her by the Chairman. 
 Exercising an Option entitles the holder to subscribe for one new class A
preferred share of Sequans Communications’ share capital at the price set out hereinafter. 
 This number of shares cannot be modified
during the Options’ 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 Options have been issued to him/her, the Beneficiary
undertakes to return to the Company a copy of this Plan and a copy of the “CONTRACTUAL UNDERTAKING” attached to said letter, after the Beneficiary has duly executed said copies.

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

 III-2. Features and period of validity of the Options 
 Options are irrevocably granted for a period of 10 years as from the time they are issued by the Board of Directors. 
 As a result of issuing the Options, the pre-emptive right of shareholders to subscribe for the new shares to be issued as said Options are exercised will be eliminated in favour of the Beneficiaries.

 Rights obtained as the result of the Options cannot be transferred until the Options have been exercised. 

Options must be exercised within the aforementioned maximum period of 10 years. Furthermore, the Beneficiary must comply with the following
schedule: 
 (i) first issue 
  

	 	•	 	 The Beneficiary may exercise 25% of the Options issued to him/her after the expiry of a period of 12 months following the date he/she joins Sequans
Communications or one of its subsidiaries; 

  

	 	•	 	 Thereafter, the Beneficiary may exercise the remainder of his/her Options at the rate of 1/36th per month for the period between the 13th and 48th month following the date he/she joins Sequans Communications or one of its subsidiaries. 

  
 - 4/8 -

 (i) further issue(s) 
  

	 	•	 	 The Beneficiary may exercise 25% of the Options issued to him/her after the expiry of a period of 12 months following the date of such issue;

  

	 	•	 	 Thereafter, the Beneficiary may exercise the remainder of his/her Options at the rate of 1/36th per month for the period between the 13th and 48th month following the date of the aforesaid issue. 

The first exercise must cover 25% of the Options issued to the Beneficiary, in accordance with the schedule set out above. 

In the event that a third party acquires a 100% interest in Sequans Communications, and in no other case, a Beneficiary who is subsequently dismissed for
genuine material cause shall have the right to exercise all of his/her Options within a period of 30 days following the date of said dismissal, notwithstanding the schedule set out above for exercising his/her Options. 

In the event that a company ceases to be a subsidiary of Sequans Communications, all Options held by the employees of such subsidiary, and that have not
been exercised before such time, shall automatically and immediately become void. 
 In any event, any Option that is not exercised before the
expiry of the aforementioned 10-year period shall be null and void. 
 III-3. Cessation of the Beneficiary’s duties with Sequans
Communications or one of its subsidiaries 
 In the event that the Beneficiary’s duties with Sequans Communications or one of its
subsidiaries, whether as an employee or company officer, cease due to resignation, redundancy, dismissal, incapacity or death, regardless of the reason: 
  

	 	•	 	 Said Beneficiary shall lose all rights with regard to Options that are not yet exercisable on the date that his/her duties cease in accordance with the
schedule for exercising the Options set out in Article III-2. hereinabove. 

 However, the Beneficiary retains
the right to exercise Options that are exercisable and that have not yet been exercised, provided that the Beneficiary exercises his/her Options 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 have a period of 6 months to exercise the Options. 

After the expiry of the periods hereinabove, the Beneficiary, his/her heirs or beneficiaries lose all rights with regard to unexercised
Options. 

  
 - 5/8 -

 III-4. Setting the subscription price for shares obtained by exercising the Options

 A general shareholders’ meeting set the subscription price for shares to be issued pursuant to an exercise of the Options at the
price set for shares issued pursuant to the most recent increase in share capital prior to the actual issue of said Option. 
 Consequently, the
subscription price for shares to be issued pursuant to exercising the Option is set in the amount of EUR 1.215 per share (of which EUR 1.205 is an issue premium), i.e., the issue price for shares decided in connection with the increase
In share capital voted by the extraordinary general shareholders’ meeting held on 17 July 2006. 
 This price may not be changed
during the the Options’ period of validity, except in the event of adjustments in accordance with statutory and regulatory requirements. 

III-5. Maintaining the rights of Option holders during the exercise period 
 During the entire period of validity, the Company shall be entitled to change its corporate form or company objects, create new preferred shares, redeem its share capital or amend the rules for the
allocation of profits. The Company shall, consequently, take the measure necessary to maintain the rights of Options’ holders, in accordance with applicable laws an regulations. 

IV - REQUIREMENTS AND PROCEDURES FOR EXERCISING OPTIONS 
 IV-1. Suspension of the rights to exercise the Options 
 If necessary, the Board of
Directors may suspend the right to exercise the Options. In particular, a suspension may be ordered whenever a transaction concerning Sequans Communications’ share capital requires knowing in advance the exact number of shares that make up
share capital or in the event that one of the financial transactions requiring an adjustment is carried out. 
 In such case, Sequans
Communications shall inform the Beneficiaries of the Options, indicating the date of the suspension and the date on which the right to exercise Options will be re-established. Such suspension may not exceed 3 months. 

If the right to exercise an Option expires during a period in which rights are suspended, the period for exercising the Option shall be extended by 3
months. 
 IV-2. Conditions for exercising Options 
 All requests for exercising Options, documented by the signature of a subscription certificate specific to the Plan, shall be sent to Sequans Communications, and must be accompanied by a cheque made out
to the Company’s order in an amount corresponding to the number of shares 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. 

  
 - 6/8 -

 V - FEATURES OF SHARES SUBSCRIBED 

V-1. Delivery and form of shares 

Shares acquired by exercising Options 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. Rights - Availability 

The new shares, class A preferred shares, shall be subject to all provisions of the memorandum and articles of association and shall enjoy all rights
pertaining to shares of such class as from the date the increase in share capital is completed. 
 These shares shall be immediately
transferable, in compliance with the “CONTRACTUAL UNDERTAKING”. 

VI - TAX PROVISIONS 

VI-1. THE TAX PROVISIONS CURRENTLY APPLICABLE TO
BENEFICIARIES WHO ARE EMPLOYEES OF SEQUANS COMMUNICATIONS AND WHO ARE DOMICILED
IN FRANCE ARE EXPLAINED BELOW. 
 1. A Beneficiary who has
exercised Options and subscribed for shares of Sequans Communications receives a gain equal to the difference between the value of the shares on the date the Option is exercised and the subscription price for the shares. 

This gain is subject to favourable tax treatment provided that the shares are issued as registered shares and that the sale of the shares
obtained by exercising the Options occurs at least four (4) years after such Options are issued. 
 This gain,
treated as a capital gain realised at the time of purchase, is subject to a 41% tax (i.e., 30% tax, plus 11% for the CSG1, CRDS2 and social security contributions) on the amount up to €152,500, and to a 51% tax on the amount above
€152,500. These rates are reduced to 27% and 41% respectively if the Beneficiary holds these shares for an additional period of two (2) years. 
 Failure to comply with these periods will subject these capital gains to the tax treatment applicable to wages and salaries (Article 163 bis C of the French General Tax Code). As an exception to
the foregoing, shares may be sold before the expiry of the four-year period in the event of: 
  

	•	 	 The dismissal of the Beneficiary 

  

	•	 	 The Beneficiary’s retirement 

  

	•	 	 Invalidity deemed to fall within the second and third categories provided in Article L.341-4 of the French Social Security Code

  

	•	 	 The Beneficiary’s death 

 2. Capital gains realised at the time of sale (i.e., the difference between the sale price of the share and the value of such share on the date the Option is exercised) are taxed in accordance with
the tax treatment of capital gains realised on the sale of securities (Articles 92 B, 92 J, 160, 200 A2 of the French General Tax Code), and only if the annual threshold for sales of securities is exceeded (€15,000 In 2004, the total amount of
sales made by a tax household). 
  

	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 -

 The rate applicable is 27% (i.e., the proportional rate of 16%, plus 11% for the CSG, CRDS and social
security contributions). 
 Note: In addition, in order to benefit from this specific tax treatment, the Beneficiary must attach to
his/her income tax return for the year in which the Options are exercised a certificate that will be provided to him/her by the Company. 

VI-2. TAX PROVISIONS APPLICABLE TO BENEFICIARIES
DOMICILED ABROAD AND/OR EMPLOYEES OF SEQUANS COMMUNICATIONS SUBSIDIARIES LOCATED
ABROAD. 
 Beneficiaries domiciled abroad and/or who are employees of a foreign subsidiary of Sequans Communications are
themselves solely responsible for: 
  

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

  

	 	•	 	 Paying all taxes and contributions due as a result 

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

  
 - 8/8 -

 - SEQUANS COMMUNICATIONS - 

Regulations 
  

 
 Stock Option
Subscription Plan – 2008-1 

 - CONTENTS - 
 I - DEFINITION OF STOCK OPTION SUBSCRIPTION PLAN 
 II - LEGAL FRAMEWORK FOR THE PLAN

 III - DESCRIPTION OF THE PLAN 
  

	 	•	 	 Issuing the Options 

  

	 	•	 	 Number of shares covered by the Options 

  

	 	•	 	 Features and period of validity of the Options 

  

	 	•	 	 Cessation of the Beneficiary’s duties with the Company or one of its subsidiaries 

 

	 	•	 	 Setting the subscription price for shares covered by the Options 

 

	 	•	 	 Maintaining the rights of Beneficiaries during the exercise period 

 IV - REQUIREMENTS AND PROCEDURES FOR EXERCISING OPTIONS 
  

	 	•	 	 Suspension of the rights to exercise the Options 

  

	 	•	 	 Procedures and conditions for exercising the Options 

 V - FEATURES OF SHARES SUBSCRIBED 
  

	 	•	 	 Delivery ad form of shares 

  

	 	•	 	 Rights 

  

	 	•	 	 Availability of shares 

VI - TAX PROVISIONS 

  
 - 2/8 -

 I - DEFINITION OF STOCK OPTION SUBSCRIPTION PLAN 

In order to reward its employees and those of its subsidiaries, Sequans Communications wishes to set up a system enabling them to share in its growth.

 A stock option subscription plan is a mechanism by which a company offer its employees and/or company officers, as well as the employees of
its subsidiaries within the meaning of Article 804 of the law of 24 July 1966, the possibility of subscribing for new shares during a certain period, at a price set on the date the Options are issued, and that remains fixed during the entire
period. 
 In this way, the beneficiaries participate in their company’s performance through the changes in share value, even before they
become shareholders by exercising the options to subscribe for shares (hereinafter “Options”). 
 Furthermore, the financial benefit
obtained by exercising the Options 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, in particular, by articles L.225-177 and following of the French Code de
commerce. 
 In a decision taken on 12 June 2008, a combined general shareholders’ meeting voted in favour of the principle of
issuing a total number of 500,000 Options maximum. Each Option gives the holder the right to subscribe for one new class A common share of the Company at the price set for shares issued in connection with the most recent increase in share
capital prior to the actual issue of said Option. 
 In addition, this decision granted the Board of Directors the power to issue these Options,
on one or more occasions, including the authority to determine the beneficiaries and the number of Options to be issued, and the elimination of shareholders’ pre-emptive subscription rights. Furthermore, the Board of Directors was granted the
power to increase share capital by a maximum amount equal to the total number of Options issued, to record the successive increases in share capital as a result of the exercise of the Options, and to carry out all formalities required as a result
thereof. 
 Pursuant to this grant of authority, and using a part of the authority granted to it, at a meeting held on 9 July 2008,
the Board of Directors decided the procedures applicable to this stock Option plan (hereinafter “the Plan”), in compliance with the principles decided by the aforementioned extraordinary general shareholders’ meeting and the statutory
provisions cited hereinabove. 
 III - DESCRIPTION OF THE PLAN 
 The list of the Plan’s beneficiaries (hereinafter “Beneficiaries”) shall be approved by the Company’s Board of Directors. 

  
 - 3/8 -

 III-1. Issuing the Options 
 The Options are issued free of charge to each Beneficiary. 
 No person holding more than 10% of
Sequans Communications’ share capital shall be issued any Options. 
 The number of Options issued to each Beneficiary shall be indicated
in an individual letter sent to him/her by the Chairman. 
 Exercising an Option entitles the holder to subscribe for one new class A
preferred share of Sequans Communications’ share capital at the price set out hereinafter. 
 This number of shares cannot be modified
during the Options’ 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 Options have been issued to him/her, the Beneficiary
undertakes to return to the Company a copy of this Plan and a copy of the “CONTRACTUAL UNDERTAKING” attached to said letter, after the Beneficiary has duly executed said copies.

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

 III-2. Features and period of validity of the Options 
 Options are irrevocably granted for a period of 10 years as from the time they are issued by the Board of Directors. 
 As a result of issuing the Options, the pre-emptive right of shareholders to subscribe for the new shares to be issued as said Options are exercised will be eliminated in favour of the Beneficiaries.

 Rights obtained as the result of the Options cannot be transferred until the Options have been exercised. 

Options must be exercised within the aforementioned maximum period of 10 years. Furthermore, the Beneficiary must comply with the following
schedule: 
 (i) first issue 
  

	 	•	 	 The Beneficiary may exercise 25% of the Options issued to him/her after the expiry of a period of 12 months following the date he/she joins Sequans
Communications or one of its subsidiaries; 

  

	 	•	 	 Thereafter, the Beneficiary may exercise the remainder of his/her Options at the rate of 1/36th per month for the period between the 13th and 48th month following the date he/she joins Sequans Communications or one of its subsidiaries. 

  
 - 4/8 -

 (i) further issue(s) 
  

	 	•	 	 The Beneficiary may exercise 25% of the Options issued to him/her after the expiry of a period of 12 months following the date of such issue ;

  

	 	•	 	 Thereafter, the Beneficiary may exercise the remainder of his/her Options at the rate of 1/36th per month for the period between the 13th and 48th month following the date of the aforesaid issue. 

The first exercise must cover 25% of the Options issued to the Beneficiary, in accordance with the schedule set out above. 

In the event that a third party acquires a 100% interest in Sequans Communications, and in no other case, a Beneficiary who is subsequently
dismissed for genuine material cause shall have the right to exercise all of his/her Options within a period of 30 days following the date of said dismissal, notwithstanding the schedule set out above for exercising his/her Options. 

In the event that a company ceases to be a subsidiary of Sequans Communications, all Options held by the employees of such subsidiary, and that have not
been exercised before such time, shall automatically and immediately become void. 
 In any event, any Option that is not exercised before the
expiry of the aforementioned 10-year period shall be null and void. 
 III-3. Cessation of the Beneficiary’s duties with Sequans
Communications or one of its subsidiaries 
 In the event that the Beneficiary’s duties with Sequans Communications or one of its
subsidiaries, whether as an employee or company officer, cease due to resignation, redundancy, dismissal, incapacity or death, regardless of the reason: 
  

	 	•	 	 Said Beneficiary shall lose all rights with regard to Options that are not yet exercisable on the date that his/her duties cease in accordance with the
schedule for exercising the Options set out in Article III-2. hereinabove. 

 However, the Beneficiary retains
the right to exercise Options that are exercisable and that have not yet been exercised, provided that the Beneficiary exercises his/her Options 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 have a period of 6 months to exercise the Options. 

After the expiry of the periods hereinabove, the Beneficiary, his/her heirs or beneficiaries lose all rights with regard to unexercised
Options. 

  
 - 5/8 -

 III-4. Setting the subscription price for shares obtained by exercising the Options

 The combined general shareholders’ meeting set the subscription price for shares to be issued pursuant to an exercise of the
Options at the price set for shares issued pursuant to the most recent increase in share capital prior to the actual issue of said Option. 

Consequently, the subscription price for shares to be issued pursuant to exercising the Option is set, with respect to this SO Plan 2008-1, in the amount
of EUR 2.024 per share (of which EUR 2.014 is an issue premium), i.e., the issue price for shares decided in connection with the increase in share capital voted by the combined general shareholders’ meeting held on 31 January
2008. 
 This price may not be changed during the Options’ period of validity, except in the event of adjustments in accordance with
statutory and regulatory requirements. 
 III-5. Maintaining the rights of Option holders during the exercise period 

During the entire period of validity, the Company shall be entitled to change its corporate form or company objects, create new preferred shares, redeem
its share capital or amend the rules for the allocation of profits. The Company shall, consequently, take the measure necessary to maintain the rights of Options’ holders, in accordance with applicable laws an regulations. 

IV - REQUIREMENTS AND PROCEDURES FOR EXERCISING OPTIONS 
 IV-1. Suspension of the rights to exercise the Options 
 If necessary, the Board of
Directors may suspend the right to exercise the Options. In particular, a suspension may be ordered whenever a transaction concerning Sequans Communications’ share capital requires knowing in advance the exact number of shares that make up
share capital or in the event that one of the financial transactions requiring an adjustment is carried out. 
 In such case, Sequans
Communications shall inform the Beneficiaries of the Options, indicating the date of the suspension and the date on which the right to exercise Options will be re-established. Such suspension may not exceed 3 months. 

If the right to exercise an Option expires during a period in which rights are suspended, the period for exercising the Option shall be extended by 3
months. 
 IV-2. Conditions for exercising Options 
 All requests for exercising Options, documented by the signature of a subscription certificate specific to the Plan, shall be sent to Sequans Communications, and must be accompanied by a cheque made out
to the Company’s order in an amount corresponding to the number of shares 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. 

  
 - 6/8 -

 V - FEATURES OF SHARES SUBSCRIBED  

V-1. Delivery and form of shares 

Shares acquired by exercising Options 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. Rights - Availability 

The new shares, class A preferred shares, shall be subject to all provisions of the memorandum and articles of association and shall enjoy all rights
pertaining to shares of such class as from the date the increase in share capital is completed. 
 These shares shall be immediately
transferable, in compliance with the “CONTRACTUAL UNDERTAKING”, subject to the following exception : Beneficiaries domiciled in France are not entitled to assign any class A
preferred share - issued further to the exercise of an Option - before the end of a four (4) year-period from the issue of the given Option. 
 VI - TAX PROVISIONS 
 VI-1. THE TAX
PROVISIONS CURRENTLY APPLICABLE TO BENEFICIARIES WHO ARE EMPLOYEES OF SEQUANS
COMMUNICATIONS AND WHO ARE DOMICILED IN FRANCE ARE EXPLAINED BELOW. 

1. A Beneficiary who has exercised Options and subscribed for shares of Sequans Communications receives a gain equal to the difference between the
value of the shares on the date the Option is exercised and the subscription price for the shares. 
 This gain is subject to favourable tax
treatment provided that the shares are issued as registered shares and that the sale of the shares obtained by exercising the Options occurs at least four (4) years after such Options are issued. 

This gain, treated as a capital gain realised at the time of purchase, is subject to a 41% tax (i.e., 30% tax, plus 11% for the CSG1, CRDS2 and social security contributions) on the amount up to EUR 152,500, and to a 51% tax on the amount above EUR 152,500.
These rates are reduced to 29% and 41% respectively if the Beneficiary holds these shares for an additional period of two (2) years. 

Failure to comply with these periods will subject these capital gains to the tax treatment applicable to wages and salaries (Article 163 bis C of
the French General Tax Code). As an exception to the foregoing, shares may be sold before the expiry of the four-year period in the event of: 
  

	•	 	 The dismissal of the Beneficiary 

  

	•	 	 The Beneficiary’s retirement 

  

	•	 	 Invalidity deemed to fall within the second and third categories provided in Article L.341-4 of the French Social Security Code

  

	•	 	 The Beneficiary’s death 

 

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

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

  
 - 7/8 -

 2. Capital gains realised at the time of sale (i.e., the difference between the sale price of the
share and the value of such share on the date the Option is exercised) are taxed in accordance with the tax treatment of capital gains realised on the sale of securities (Articles 92 B, 92 J, 160, 200 A2 of the French General Tax Code), and only if
the annual threshold for sales of securities is exceeded (EUR 25,000 in 2008, the total amount of sales made by a tax household). 
 The rate
applicable is 29% (i.e., the proportional rate of 18%, plus 11% for the CSG, CRDS and social security contributions). 
 Note: In
addition, in order to benefit from this specific tax treatment, the Beneficiary must attach to his/her income tax return for the year in which the Options are exercised a certificate that will be provided to him/her by the Company. 

VI-2. TAX PROVISIONS APPLICABLE TO BENEFICIARIES
DOMICILED ABROAD AND/OR EMPLOYEES OF SEQUANS COMMUNICATIONS SUBSIDIARIES LOCATED
ABROAD. 
 Beneficiaries domiciled abroad and/or who are employees of a foreign subsidiary of Sequans Communications are
themselves solely responsible for: 
  

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

  

	 	•	 	 Paying all taxes and contributions due as a result. 

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

  
 - 8/8 -

 - SEQUANS COMMUNICATIONS - 

Regulations 
  

 
 Stock Option
Subscription Plan – 2009-1 

 - CONTENTS - 
 I - DEFINITION OF STOCK OPTION SUBSCRIPTION PLAN 
 II - LEGAL FRAMEWORK FOR THE PLAN

 III - DESCRIPTION OF THE PLAN 
  

	 	•	 	 Issuing the Options 

  

	 	•	 	 Number of shares covered by the Options 

  

	 	•	 	 Features and period of validity of the Options 

  

	 	•	 	 Cessation of the Beneficiary’s duties with the Company or one of its subsidiaries 

 

	 	•	 	 Setting the subscription price for shares covered by the Options 

 

	 	•	 	 Maintaining the rights of Beneficiaries during the exercise period 

 IV - REQUIREMENTS AND PROCEDURES FOR EXERCISING OPTIONS 
  

	 	•	 	 Suspension of the rights to exercise the Options 

  

	 	•	 	 Procedures and conditions for exercising the Options 

 V - FEATURES OF SHARES SUBSCRIBED 
  

	 	•	 	 Delivery ad form of shares 

  

	 	•	 	 Rights 

  

	 	•	 	 Availability of shares 

VI - TAX PROVISIONS 

  
 - 2/8 -

 I - DEFINITION OF STOCK OPTION SUBSCRIPTION PLAN 

In order to reward its employees and those of its subsidiaries, Sequans Communications wishes to set up a system enabling them to share in its growth.

 A stock option subscription plan is a mechanism by which a company offer its employees and/or company officers, as well as the employees of
its subsidiaries within the meaning of article L.233-1 of the French Code de commerce, the possibility of subscribing for new shares during a certain period, at a price set on the date the Options are issued, and that remains fixed during the entire
period. 
 In this way, the beneficiaries participate in their company’s performance through the changes in share value, even before they
become shareholders by exercising the options to subscribe for shares (hereinafter “Options”). 
 Furthermore, the financial benefit
obtained by exercising the Options 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, in particular, by articles L.225-177 and following of the French Code de
commerce. 
 In a decision taken on 12 June 2009, a combined general shareholders’ meeting voted in favour of the principle of
issuing a total number of 250,000 Options maximum. Each Option gives the holder the right to subscribe for one new series A preferred share of the Company at the price set for shares issued in connection with the most recent increase
in share capital prior to the actual issue of said Option. 
 In addition, this decision granted the Board of Directors the power to issue these
Options, on one or more occasions, including the authority to determine the beneficiaries and the number of Options to be issued, and the elimination of shareholders’ pre-emptive subscription rights. Furthermore, the Board of Directors was
granted the power to increase share capital by a maximum amount equal to the total number of Options issued, to record the successive increases in share capital as a result of the exercise of the Options, and to carry out all formalities required as
a result thereof. 
 Pursuant to this grant of authority, and using a part of the authority granted to it, at a meeting held on 15 July
2009, the Board of Directors decided the procedures applicable to this stock Option plan (hereinafter “the Plan”), in compliance with the principles decided by the aforementioned extraordinary general shareholders’ meeting and the
statutory provisions cited hereinabove. 
 III - DESCRIPTION OF THE PLAN 

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

  
 - 3/8 -

 III-1. Issuing the Options 
 The Options are issued free of charge to each Beneficiary. 
 No person holding more than 10% of
Sequans Communications’ share capital shall be issued any Options. 
 The number of Options issued to each Beneficiary shall be indicated
in an individual letter sent to him/her by the Chairman. 
 Exercising an Option entitles the holder to subscribe for one series A preferred
share of Sequans Communications’ share capital at the price set out hereinafter. 
 This number of shares cannot be modified during the
Options’ 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 Options have been issued to him/her, the Beneficiary undertakes to return to the Company a copy of this
Plan and a copy of the “CONTRACTUAL UNDERTAKING” attached to said letter, after the Beneficiary has duly executed said copies. 
 Failure to comply with this formality within the applicable period shall render the Options issued immediately and automatically void. 
 III-2. Features and period of validity of the Options 
 Options are irrevocably
granted for a period of 10 years as from the time they are issued by the Board of Directors. 
 As a result of issuing the Options, the
pre-emptive right of shareholders to subscribe for the new shares to be issued as said Options are exercised will be eliminated in favour of the Beneficiaries. 
 Rights obtained as the result of the Options cannot be transferred until the Options have been exercised. 
 Options must be exercised within the aforementioned maximum period of 10 years. Furthermore, the Beneficiary must comply with the following schedule: 

(i) first grant 
  

	 	•	 	 The Beneficiary may exercise 25% of the Options granted to him/her after the expiry of a period of 12 months following the date he/she joins Sequans
Communications or one of its subsidiaries; 

  

	 	•	 	 Thereafter, the Beneficiary may exercise the remainder of his/her Options at the rate of 1/36th per month for the period between the 13th and 48th month following the date he/she joins Sequans Communications or one of its subsidiaries. 

  
 - 4/8 -

 (i) subsequent grant(s) 

 

	 	•	 	 The Beneficiary may exercise 25% of the Options grant to him/her after the expiry of a period of 12 months following the date of such grant;

  

	 	•	 	 Thereafter, the Beneficiary may exercise the remainder of his/her Options at the rate of 1/36th per month for the period between the 13th and 48th month following the date of the aforesaid grant. 

The first exercise must cover at least 25% of the Options issued to the Beneficiary, in accordance with the schedule set out above. 

In the event that a third party acquires a 100% interest in Sequans Communications, and in no other case, a Beneficiary who is subsequently
dismissed for genuine material cause shall have the right to exercise all of his/her Options within a period of 30 days following the date of said dismissal, notwithstanding the schedule set out above for exercising his/her Options. 

In the event that a company ceases to be a subsidiary of Sequans Communications, all Options held by the employees of such subsidiary, and that have not
been exercised before such time, shall automatically and immediately become void. 
 In any event, any Option that is not exercised before the
expiry of the aforementioned 10-year period shall be null and void. 
 III-3. Cessation of the Beneficiary’s duties with Sequans
Communications or one of its subsidiaries 
 In the event that the Beneficiary’s duties with Sequans Communications or one of its
subsidiaries, whether as an employee or company officer, cease due to resignation, redundancy, dismissal, incapacity or death, regardless of the reason: 
  

	 	•	 	 Said Beneficiary shall lose all rights with regard to Options that are not yet exercisable on the date that his/her duties cease in accordance with the
schedule for exercising the Options set out in Article III-2. hereinabove. 

 However, the Beneficiary retains
the right to exercise Options that are exercisable and that have not yet been exercised, provided that the Beneficiary exercises his/her Options 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 have a period of 6 months to exercise the Options. 

After the expiry of the periods hereinabove, the Beneficiary, his/her heirs or beneficiaries lose all rights with regard to unexercised
Options. 

  
 - 5/8 -

 III-4. Setting the subscription price for the shares obtained by exercising the options

 The combined general shareholders’ meeting determined that the subscription price for shares to be issued pursuant to an exercise
of the Options shall be set at the price set for shares issued pursuant to the most recent increase in share capital prior to the actual issue of said Option. 
 Consequently, the subscription price for shares to be issued pursuant to exercising the Option is set, with respect to this SO Plan 2009-1, in the amount of EUR 2.024 per share (of
which EUR 2.014 is an issue premium), i.e., the issue price for shares decided in connection with the increase in share capital voted by the combined general shareholders’ meeting held on 10 July 2008. 

This price may not be changed during the Options’ period of validity, except in the event of adjustments in accordance with statutory and regulatory
requirements. 
 III-5. Maintaining the rights of Option holders during the exercise period 

During the entire period of validity, the Company shall be entitled to change its corporate form or company objects, create new preferred shares, redeem
its share capital or amend the rules for the allocation of profits. The Company shall, consequently, take the measure necessary to maintain the rights of Options’ holders, in accordance with applicable laws and regulations. 

IV - REQUIREMENTS AND PROCEDURES FOR EXERCISING OPTIONS 
 IV-1. Suspension of the rights to exercise the Options 
 If necessary, the Board of
Directors may suspend the right to exercise the Options. In particular, a suspension may be ordered whenever a transaction concerning Sequans Communications’ share capital requires knowing in advance the exact number of shares that make up
share capital or in the event that one of the financial transactions requiring an adjustment is carried out. 
 In such case, Sequans
Communications shall inform the Beneficiaries of the Options, indicating the date of the suspension and the date on which the right to exercise Options will be re-established. Such suspension may not exceed 3 months. 

If the right to exercise an Option expires during a period in which rights are suspended, the period for exercising the Option shall be extended by 3
months. 
 IV-2. Conditions for exercising Options 
 All requests for exercising Options, documented by the signature of a subscription certificate specific to the Plan, shall be sent to Sequans Communications, and must be accompanied by a cheque - or wire
transfer - made out to the Company’s order in an amount in Euros corresponding to the number of shares 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. 

  
 - 6/8 -

 V - FEATURES OF SHARES SUBSCRIBED  

V-1. Delivery and form of shares 

Shares acquired by exercising Options are registered in the books of Sequans Communications as registered shares, which meets the statutory requirements
for benefiting from the applicable favourable tax treatment in France. 
 V-2. Rights - Availability 

The new shares, class A preferred shares, shall be subject to all provisions of the memorandum and articles of association and shall enjoy all rights
pertaining to shares of such class as from the date the increase in share capital is completed. 
 These shares shall be immediately
transferable, in compliance with the “CONTRACTUAL UNDERTAKING”, subject to the following exception : Beneficiaries domiciled in France are not entitled to assign any class A
preferred share - issued further to the exercise of an Option - before the end of a four (4) year-period from the issue of the given Option. 
 VI - TAX PROVISIONS 
 VI-1. THE TAX AND
SOCIAL PROVISIONS CURRENTLY APPLICABLE TO BENEFICIARIES WHO ARE EMPLOYEES OF SEQUANS
COMMUNICATIONS AND WHO ARE DOMICILED IN FRANCE ARE EXPLAINED BELOW. 

1. A Beneficiary who has exercised Options and subscribed for shares of Sequans Communications receives a gain equal to the difference between the
value of the shares on the date the Option is exercised and the subscription price for the shares. 
 This gain is subject to favourable tax
treatment provided that the shares are issued as registered shares and that the sale of the shares obtained by exercising the Options occurs at least four (4) years after such Options are issued. 

This gain, treated as a capital gain realised at the time of purchase, is subject to a 42.1% tax (i.e., 30% tax, plus 12.1%
for the CSG, CRDS, social contribution and RSA1) on the
amount up to EUR 152.500, and to a 52.1% tax (i.e. 40% tax plus 12.1% social contributions) on the amount above EUR 152,500. These rates are reduced to 30.1% and 42.1% respectively if the Beneficiary holds these shares for an additional period of
two (2) years. 
 Failure to comply with these periods will subject these capital gains to the tax treatment applicable to wages and
salaries (Article 163 bis C of the French General Tax Code). As an exception to the foregoing, shares may be sold before the expiry of the four-year period in the event of: 

 

	 	•	 	 The dismissal of the Beneficiary 

  

	 	•	 	 The Beneficiary’s retirement 

  

	 	•	 	 Invalidity deemed to fall within the second and third categories provided in Article L.341-4 of the French Social Security Code

  

	 	•	 	 The Beneficiary’s death 

 

	1	 CSG (“contribution sociale généralisée”), CRDS (“contribution au remboursement de la dette
sociale”), prélèvement social and RSA are French social contributions 

  
 - 7/8 -

 2. Capital gains realised at the time of sale (i.e., the difference between the sale price of the
share and the value of such share on the date the Option is exercised) are taxed in accordance with the tax treatment of capital gains realised on the sale of securities (Articles 92 B, 92 J, 160, 200 A2 of the French General Tax Code), and only if
the annual threshold for sales of securities is exceeded (EUR 25,730 in 2008, the total amount of sales made by a tax household). 
 The rate
applicable is 30.1% (i.e., the proportional rate of 18%, plus 12.1% for the CSG, CRDS, the social contribution and the RSA contribution). 

Note: In addition, in order to benefit from this specific tax treatment, the Beneficiary must attach to his/her income tax return for the year in
which the Options are exercised a certificate that will be provided to him/her by the Company. 
 3. In addition, it is specified that
Options allocated to Beneficiaries affiliated to the French Social Security Regime (régime français d’assurance maladie) at the date of allocation, are liable to two specific social contributions to be paid respectively by
the employer and the employee (statute dated 19 December 2007, article 13 - Circulaire dated 8 April 2008). 
 The contribution
of the employee is based upon the value of the shares at the date of subscription, as defined under article 200, 6 bis, of the French tax code. The rate of such contribution is 2.5%. 
 The share sale shall trigger the payability of the contribution. 
 VI-2. TAX
PROVISIONS APPLICABLE TO BENEFICIARIES DOMICILED ABROAD AND/OR EMPLOYEES OF SEQUANS
COMMUNICATIONS SUBSIDIARIES LOCATED ABROAD. 
 1. General provisions

 Beneficiaries domiciled abroad and/or who are employees of a foreign subsidiary of Sequans Communications are themselves solely responsible
for: 
  

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

  

	 	•	 	 Paying all taxes and contributions due as a result. 

 Sequans Communications and its subsidiaries shall have no obligation to provide advice and/or assistance in this regard. 
 2. Specific provisions concerning Beneficiaries submitted to Israeli law 
 In order to
enjoy the benefit of the capital gains tax treatment in accordance with the provisions of Section 102(b)(2) of the Israeli Income Tax Ordinance (New Version), 5721-1961, as in effect from time to time (“Section 102”), the Shares
likely to be subscribed by the Israeli Beneficiary upon exercise of its Options must not be transferred until the end of a period of time as required under aforesaid Section 102 (the “Holding Period”). 

  
 - 8/8 -

 - SEQUANS COMMUNICATIONS - 

Regulations 
  

 
 Stock Option
Subscription Plan – 2009-2 

 - CONTENTS - 
 I - DEFINITION OF STOCK OPTION SUBSCRIPTION PLAN 
 II - LEGAL FRAMEWORK FOR THE PLAN

 III - DESCRIPTION OF THE PLAN 
  

	 	•	 	 Issuing the Options 

  

	 	•	 	 Number of shares covered by the Options 

  

	 	•	 	 Features and period of validity of the Options 

  

	 	•	 	 Cessation of the Beneficiary’s duties with the Company or one of its subsidiaries 

 

	 	•	 	 Setting the subscription price for shares covered by the Options 

 

	 	•	 	 Maintaining the rights of Beneficiaries during the exercise period 

 IV - REQUIREMENTS AND PROCEDURES FOR EXERCISING OPTIONS 
  

	 	•	 	 Suspension of the rights to exercise the Options 

  

	 	•	 	 Procedures and conditions for exercising the Options 

 V - FEATURES OF SHARES SUBSCRIBED 
  

	 	•	 	 Delivery ad form of shares 

  

	 	•	 	 Rights 

  

	 	•	 	 Availability of shares 

VI - TAX PROVISIONS 

  
 - 2/8 -

 I - DEFINITION OF STOCK OPTION SUBSCRIPTION PLAN 

In order to reward its employees and those of its subsidiaries, Sequans Communications wishes to set up a system enabling them to share in its growth.

 A stock option subscription plan is a mechanism by which a company offer its employees and/or company officers, as well as the employees of
its subsidiaries within the meaning of article L233-1 of the French Code de commerce, the possibility of subscribing for new shares during a certain period, at a price set on the date the Options are issued, and that remains fixed during the entire
period. 
 In this way, the beneficiaries participate in their company’s performance through the changes in share value, even before they
become shareholders by exercising the options to subscribe for shares (hereinafter “Options”). 
 Furthermore, the financial benefit
obtained by exercising the Options 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, in particular, by articles L225-177 and following of the French Code de
commerce. 
 In a decision taken on 14 October 2009, an extraordinary general shareholders’ meeting voted in favour of the
principle of issuing a total number of 250,000 Options under this Plan. Each Option gives the holder the right to subscribe for one new series A preferred share of the Company at the price set for shares issued in connection with the most
recent increase in share capital prior to the actual issue of said Option. 
 In addition, this decision granted the Board of Directors the
power to issue these Options, on one or more occasions, including the authority to determine the beneficiaries and the number of Options to be issued, and the elimination of shareholders’ pre-emptive subscription rights. Furthermore, the Board
of Directors was granted the power to increase share capital by a maximum amount equal to the total number of Options issued, to record the successive increases in share capital as a result of the exercise of the Options, and to carry out all
formalities required as a result thereof. 
 Pursuant to this grant of authority, and using a part of the authority granted to it, at a meeting
held on 12 November 2009, the Board of Directors decided the procedures applicable to this stock Option plan (hereinafter “the Plan”), in compliance with the principles decided by the aforementioned extraordinary general
shareholders’ meeting and the statutory provisions cited hereinabove. 
 Ill - DESCRIPTION OF THE PLAN 

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

  
 - 3/8 -

 III-1. Issuing the Options 
 The Options are issued free of charge to each Beneficiary. 
 No person holding more than 10% of
Sequans Communications’ share capital shall be issued any Options. 
 The number of Options issued to each Beneficiary shall be indicated
in an individual letter sent to him/her by the Chairman. 
 Exercising an Option entitles the holder to subscribe for one series A preferred
share of Sequans Communications’ share capital at the price set out hereinafter. 
 This number of shares cannot be modified during the
Options’ 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 Options have been issued to him/her, the Beneficiary undertakes to return to the Company a copy of this
Plan and a copy of the “CONTRACTUAL UNDERTAKING” attached to said letter, after the Beneficiary has duly executed said copies. 
 Failure to comply with this formality within the applicable period shall render the Options issued immediately and automatically void. 
 III-2. Features and period of validity of the Options 
 Options are irrevocably
granted for a period of 10 years as from the time they are issued by the Board of Directors. 
 As a result of issuing the Options, the
pre-emptive right of shareholders to subscribe for the new shares to be issued as said Options are exercised will be eliminated in favour of the Beneficiaries. 
 Rights obtained as the result of the Options cannot be transferred until the Options have been exercised. 
 Options must be exercised within the aforementioned maximum period of 10 years. Furthermore, the Beneficiary must comply with the following schedule: 

(i) first grant 
  

	 	•	 	 The Beneficiary may exercise 25% of the Options granted to him/her after the expiry of a period of 12 months following the date he/she joins Sequans
Communications or one of its subsidiaries; 

  

	 	•	 	 Thereafter, the Beneficiary may exercise the remainder of his/her Options at the rate of 1/36th per month for the period between the 13th and 48th month following the date he/she joins Sequans Communications or one of its subsidiaries. 

  
 - 4/8 -

 (i) subsequent grant(s) 

 

	 	•	 	 The Beneficiary may exercise 25% of the Options grant to him/her after the expiry of a period of 12 months following the date of such grant;

  

	 	•	 	 Thereafter, the Beneficiary may exercise the remainder of his/her Options at the rate of 1/36th per month for the period between the 13th and 48th month following the date of the aforesaid grant. 

The first exercise must cover at least 25% of the Options issued to the Beneficiary, in accordance with the schedule set out above. 

In the event that a third party acquires a 100% interest in Sequans Communications, and in no other case, a Beneficiary who is subsequently
dismissed for genuine material cause shall have the right to exercise all of his/her Options within a period of 30 days following the date of said dismissal, notwithstanding the schedule set out above for exercising his/her Options. 

In the event that a company ceases to be a subsidiary of Sequans Communications, all Options held by the employees of such subsidiary, and that have not
been exercised before such time, shall automatically and immediately become void. 
 In any event, any Option that is not exercised before the
expiry of the aforementioned 10-year period shall be null and void. 
 III-3. Cessation of the Beneficiary’s duties with Sequans
Communications or one of its subsidiaries 
 In the event that the Beneficiary’s duties with Sequans Communications or one of its
subsidiaries, whether as an employee or company officer, cease due to resignation, redundancy, dismissal, incapacity or death, regardless of the reason: 
  

	 	•	 	 Said Beneficiary shall lose all rights with regard to Options that are not yet exercisable on the date that his/her duties cease in accordance with the
schedule for exercising the Options set out in Article III-2. hereinabove. 

 However, the Beneficiary retains
the right to exercise Options that are exercisable and that have not yet been exercised, provided that the Beneficiary exercises his/her Options 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 have a period of 6 months to exercise the Options. 

After the expiry of the periods hereinabove, the Beneficiary, his/her heirs or beneficiaries lose all rights with regard to unexercised
Options. 

  
 - 5/8 -

 III-4. Setting the subscription price for shares obtained by exercising the options

 The combined general shareholders’ meeting determined that the subscription price for shares to be issued pursuant to an exercise
of the Options shall be set at the price set for shares issued pursuant to the most recent increase in share capital prior to the actual issue of said Option. 
 Consequently, the subscription price for shares to be issued pursuant to exercising the Option is set, with respect to this SO Plan 2009-1, in the amount of EUR 2.024 per share (of which EUR
2.014 is an issue premium), i.e., the issue price for shares decided in connection with the increase in share capital voted by the extraordinary general shareholders’ meeting held on 14 October 2009. 

This price may not be changed during the Options’ period of validity, except in the event of adjustments in accordance with statutory and regulatory
requirements. 
 III-5. Maintaining the rights of Option holders during the exercise period 

During the entire period of validity, the Company shall be entitled to change its corporate form or company objects, create new preferred shares, redeem
its share capital or amend the rules for the allocation of profits. The Company shall, consequently, take the measure necessary to maintain the rights of Options’ holders, in accordance with applicable laws and regulations. 

IV - REQUIREMENTS AND PROCEDURES FOR EXERCISING OPTIONS 
 IV-1. Suspension of the rights to exercise the Options 
 If necessary, the Board of
Directors may suspend the right to exercise the Options. In particular, a suspension may be ordered whenever a transaction concerning Sequans Communications’ share capital requires knowing in advance the exact number of shares that make up
share capital or in the event that one of the financial transactions requiring an adjustment is carried out. 
 In such case, Sequans
Communications shall inform the Beneficiaries of the Options, indicating the date of the suspension and the date on which the right to exercise Options will be re-established. Such suspension may not exceed 3 months. 

If the right to exercise an Option expires during a period in which rights are suspended, the period for exercising the Option shall be extended by 3
months. 
 IV-2. Conditions for exercising Options 
 All requests for exercising Options, documented by the signature of a subscription certificate specific to the Plan, shall be sent to Sequans Communications, and must be accompanied by a cheque - or wire
transfer - made out to the Company’s order in an amount in Euros corresponding to the number of shares 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. 

  
 - 6/8 -

 V - FEATURES OF SHARES SUBSCRIBED  

V-1. Delivery and form of shares 

Shares acquired by exercising Options are registered in the books of Sequans Communications as registered shares, which meets the statutory requirements
for benefiting from the applicable favourable tax treatment in France. 
 V-2. Rights - Availability 

The new shares, class A preferred shares, shall be subject to all provisions of the memorandum and articles of association and shall enjoy all rights
pertaining to shares of such class as from the date the increase in share capital is completed. 
 These shares shall be immediately
transferable, in compliance with the “CONTRACTUAL UNDERTAKING”, subject to the following exception : Beneficiaries domiciled in France are not entitled to assign any class A
preferred share - issued further to the exercise of an Option – before the end of a four (4) year-period from the issue of the given Option. 
 VI - TAX PROVISIONS 
 VI-1. THE TAX AND
SOCIAL PROVISIONS CURRENTLY APPLICABLE TO BENEFICIARIES WHO ARE EMPLOYEES OF SEQUANS
COMMUNICATIONS AND WHO ARE DOMICILED IN FRANCE ARE EXPLAINED BELOW. 

1. A Beneficiary who has exercised Options and subscribed for shares of Sequans Communications receives a gain equal to the difference between the
value of the shares on the date the Option is exercised and the subscription price for the shares. 
 This gain is subject to favourable tax
treatment provided that the shares are issued as registered shares and that the sale of the shares obtained by exercising the Options occurs at least four (4) years after such Options are issued. 

This gain, treated as a capital gain realised at the time of purchase, is subject to a 42.1% tax (i.e., 30% tax, plus 12.1%
for the CSG, CRDS, social contribution and RSA1) on the
amount up to EUR 152,500, and to a 52.1% tax (i.e. 40% tax plus 12.1% social contributions) on the amount above EUR 152,500. These rates are reduced to 30.1% and 42.1% respectively if the Beneficiary holds these shares for an additional period of
two (2) years. 
 Failure to comply with these periods will subject these capital gains to the tax treatment applicable to wages and
salaries (Article 163 bis C of the French General Tax Code). As an exception to the foregoing, shares may be sold before the expiry of the four-year period in the event of: 

 

	•	 	 The dismissal of the Beneficiary 

  

	•	 	 The Beneficiary’s retirement 

  

	•	 	 Invalidity deemed to fall within the second and third categories provided in Article L.341-4 of the French Social Security Code

  

	•	 	 The Beneficiary’s death 

 

	1	 CSG (“contribution sociale généralisée”), CRDS (“contribution au remboursement de la dette
sociale”), prélèvement social and RSA are French social contributions 

  
 - 7/8 -

 2. Capital gains realised at the time of sale (i.e., the difference between the sale price of the
share and the value of such share on the date the Option is exercised) are taxed in accordance with the tax treatment of capital gains realised on the sale of securities (Articles 92 B, 92 J, 160, 200 A2 of the French General Tax Code), and only if
the annual threshold for sales of securities is exceeded (EUR 25,730 in 2008, the total amount of sales made by a tax household). 
 The rate
applicable is 30.1% (i.e., the proportional rate of 18%, plus 12.1% for the CSG, CRDS, the social contribution and the RSA contribution). 

Note: In addition, in order to benefit from this specific tax treatment, the Beneficiary must attach to his/her income tax return for the year in
which the Options are exercised a certificate that will be provided to him/her by the Company. 
 3. In addition, it is specified that
Options allocated to Beneficiaries affiliated to the French Social Security Regime (régime français d’assurance maladie) at the date of allocation, are liable to two specific social contributions to be paid respectively by
the employer and the employee (statute dated 19 December 2007, article 13 – Circulaire dated 8 April 2008). 
 The
contribution of the employee is based upon the value of the shares at the date of subscription, as defined under article 200, 6 bis, of the French tax code. The rate of such contribution is 2.5%. 

The share sale shall trigger the payability of the contribution. 
 VI-2. TAX PROVISIONS APPLICABLE TO BENEFICIARIES DOMICILED ABROAD
AND/OR EMPLOYEES OF SEQUANS COMMUNICATIONS SUBSIDARIES LOCATED ABROAD. 

1. General provisions 
 Beneficiaries
domiciled abroad and/or who are employees of a foreign subsidiary of Sequans Communications are themselves solely responsible for: 
  

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

  

	 	•	 	 Paying all taxes and contributions due as a result. 

 Sequans Communications and its subsidiaries shall have no obligation to provide advice and/or assistance in this regard. 
 2. Specific provisions concerning Beneficiaries submitted to Israeli law 
 In order to
enjoy the benefit of the capital gains tax treatment in accordance with the provisions of Section 102(b)(2) of the Israeli Income Tax Ordinance (New Version), 5721-1961, as in effect from time to time (“Section 102”), the Shares
likely to be subscribed by the Israeli Beneficiary upon exercise of its Options must not be transferred until the end of a period of time as required under aforesaid Section 102 (the “Holding Period”). 

  
 - 8/8 -

 SEQUANS COMMUNICATIONS 

Société ananyme au capital de 475.712,78 Euros 
 Siège social : 19, Le Parvis de La Défense-92800 PUTEAUX 
 RCS
Nonterre B 450 249 677 
 Regulations 

 
  

Stock Option Subscription Plan – 2010-1 

 - CONTENTS - 
 I - DEFINITION OF STOCK OPTION SUBSCRIPTION PLAN 
 II - LEGAL FRAMEWORK FOR THE PLAN

 III - DESCRIPTION OF THE PLAN 
  

	 	•	 	 Issuing the Options 

  

	 	•	 	 Number of shares covered by the Options 

  

	 	•	 	 Features and period of validity of the Options 

  

	 	•	 	 Cessation of the Beneficiary’s duties with the Company or one of its subsidiaries 

 

	 	•	 	 Setting the subscription price for shares covered by the Options 

 

	 	•	 	 Maintaining the rights of Beneficiaries during the exercise period 

 IV - REQUIREMENTS AND PROCEDURES FOR EXERCISING OPTIONS 
  

	 	•	 	 Suspension of the rights to exercise the Options 

  

	 	•	 	 Procedures and conditions for exercising the Options 

 V - FEATURES OF SHARES SUBSCRIBED 
  

	 	•	 	 Delivery ad form of shares 

  

	 	•	 	 Rights 

  

	 	•	 	 Availability of shares 

VI - TAX PROVISIONS 

  
 - 2/8 -

 I - DEFINITION OF STOCK OPTION SUBSCRIPTION PLAN 

In order to reward its employees and those of its subsidiaries, Sequans Communications wishes to set up a system enabling them to share in its growth.

 A stock option subscription plan is a mechanism by which a company offer its employees and/or company officers, as well as the employees of
its subsidiaries within the meaning of Article L.233-3 of the French Commercial code, the possibility of subscribing for new shares during a certain period, at a price set on the date the Options are issued, and that remains fixed during the entire
period. 
 In this way, the beneficiaries participate in their company’s performance through the changes in share value, even before they
become shareholders by exercising the options to subscribe for shares (hereinafter “Options”). 
 Furthermore, the financial benefit
obtained by exercising the Options 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, in particular, by articles L.225-177 and following of the French Code de
commerce. 
 In a decision taken on 30 June 2010, a combined general shareholders’ meeting voted in favour of the principle of
issuing a total number of 738,000 Options maximum. Each Option gives the holder the right to subscribe for one new class A preferred share of the Company at the price set for shares issued in connection with the most recent increase in share
capital prior to the actual issue of said Option. 
 In addition, this decision granted the Board of Directors the power to issue these Options,
on one or more occasions, including the authority to determine the beneficiaries and the number of Options to be issued, and the elimination of shareholders’ pre-emptive subscription rights. Furthermore, the Board of Directors was granted the
power to increase share capital by a maximum amount equal to the total number of Options issued, to record the successive increases in share capital as a result of the exercise of the Options, and to carry out all formalities required as a result
thereof. 
 Pursuant to this grant of authority, and using a part of the authority granted to it, at a meeting held on [21] July 2010,
the Board of Directors decided the procedures applicable to this stock Option plan (hereinafter “the SO 2010-1 Plan”), in compliance with the principles decided by the aforementioned extraordinary general shareholders’ meeting and the
statutory provisions cited hereinabove, being specified that this SO 2010-1 Plan shall apply to the issuance of 600,000 Options maximum. 
 III - DESCRIPTION OF THE PLAN 
 The list of the Plan’s beneficiaries (hereinafter
“Beneficiaries”) shall be approved by the Company’s Board of Directors. 

  
 - 3/8 -

 III-1. Issuing the Options 
 The Options are issued free of charge to each Beneficiary. 
 No person holding more than 10% of
Sequans Communications’ share capital shall be issued any Options. 
 The number of Options issued to each Beneficiary shall be indicated
in an individual letter sent to him/her by the Chairman. 
 Exercising an Option entitles the holder to subscribe for one new class A
preferred share of Sequans Communications’ share capital at the price set out hereinafter. 
 This number of shares cannot be modified
during the Options’ 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 Options have been issued to him/her, the Beneficiary
undertakes to return to the Company a copy of this Plan and a copy of the “CONTRACTUAL UNDERTAKING” attached to said letter, after the Beneficiary has duly executed said copies.

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

 III-2. Features and period of validity of the Options 
 Options are irrevocably granted for a period of 10 years as from the time they are issued by the Board of Directors. 
 As a result of issuing the Options, the pre-emptive right of shareholders to subscribe for the new shares to be issued as said Options are exercised will be eliminated in favour of the Beneficiaries.

 Rights obtained as the result of the Options cannot be transferred until the Options have been exercised. 

Options must be exercised within the aforementioned maximum period of 10 years. Furthermore, the Beneficiary must comply with the following schedule:

 (i) first issue 
  

	 	•	 	 The Beneficiary may exercise 25% of the Options issued to him/her after the expiry of a period of 12 months following the date he/she joins Sequans
Communications or one of its subsidiaries; 

  

	 	•	 	 Thereafter, the Beneficiary may exercise the remainder of his/her Options at the rate of 1/36th per month for the period between the 13th and 48th month following the date he/she joins Sequans
Communications or one of its subsidiaries. 

  
 - 4/8 -

 (i) further issue(s) 
  

	 	•	 	 The Beneficiary may exercise 25% of the Options issued to him/her after the expiry of a period of 12 months following the date of such issue ;

  

	 	•	 	 Thereafter, the Beneficiary may exercise the remainder of his/her Options at the rate of 1/36th per month for the period between the 13th and 48th month following the date of the aforesaid issue. 

The first exercise must cover 25% of the Options issued to the Beneficiary, in accordance with the schedule set out above. 

In the event that a third party acquires a 100% interest in Sequans Communications, and in no other case, a Beneficiary who is subsequently
dismissed for genuine material cause shall have the right to exercise all of his/her Options within a period of 30 days following the date of said dismissal, notwithstanding the schedule set out above for exercising his/her Options. 

In the event that a company ceases to be a subsidiary of Sequans Communications, all Options held by the employees of such subsidiary, and that have not
been exercised before such time, shall automatically and immediately become void. 
 In any event, any Option that is not exercised before the
expiry of the aforementioned 10-year period shall be null and void. 
 III-3. Cessation of the Beneficiary’s duties with Sequans
Communications or one of its subsidiaries 
 In the event that the Beneficiary’s duties with Sequans Communications or one of its
subsidiaries, whether as an employee or company officer, cease due to resignation, redundancy, dismissal, incapacity or death, regardless of the reason: 
  

	 	•	 	 Said Beneficiary shall lose all rights with regard to Options that are not yet exercisable on the date that his/her duties cease in accordance with the
schedule for exercising the Options set out in Article III-2. hereinabove. 

 However, the Beneficiary retains
the right to exercise Options that are exercisable and that have not yet been exercised, provided that the Beneficiary exercises his/her Options 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 have a period of 6 months to exercise the Options. 

After the expiry of the periods hereinabove, the Beneficiary, his/her heirs or beneficiaries lose all rights with regard to unexercised
Options. 

  
 - 5/8 -

 III-4. Setting the subscription price for shares obtained by exercising the options

 The combined general shareholders’ meeting set the subscription price for shares to be issued pursuant to an exercise of the
Options at the price set for shares issued pursuant to the most recent increase in share capital prior to the actual issue of said Option. 

Consequently, the subscription price for shares to be issued pursuant to exercising the Option is set, with respect to this SO 2010-1 Plan, in the amount
of EUR 2.024 per share (of which EUR 2.014 is an issue premium), i.e., the issue price for shares decided in connection with the increase in share capital voted by the combined general shareholders’ meeting held on 16 July
2010. 
 This price may not be changed during the Options’ period of validity, except in the event of adjustments in accordance with
statutory and regulatory requirements. 
 III-5. Maintaining the rights of Option holders during the exercise period 

During the entire period of validity of the Options, the Company will have the option of changing its form or object, without obtaining prior
authorisation from the Beneficiaries. In addition, the Company shall be entitled to change the rules for distributing profits, write down its capital, or create preferred shares entailing such modification or writing down, subject to the prior
authorisation to be delivered pursuant the terms of Article L. 228-103 of the French Commercial code and provided that the Company accordingly take the measures necessary to maintain the rights of the Beneficiaries, in compliance with applicable
legal and/or regulatory provisions. 
 IV - REQUIREMENTS AND PROCEDURES FOR EXERCISING OPTIONS 

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

All requests for exercising Options, documented by the signature of a subscription certificate specific to the Plan, shall be sent to Sequans
Communications, and must be accompanied by a cheque made out to the Company’s order in an amount corresponding to the number of shares 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. 

  
 - 6/8 -

 V - FEATURES OF SHARES SUBSCRIBED  

V-1. Delivery and form of shares 

Shares acquired by exercising Options 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. Rights - Availability 

The new shares, class A preferred shares, shall be subject to all provisions of the memorandum and articles of association and shall enjoy all rights
pertaining to shares of such class as from the date the increase in share capital is completed. 
 These shares shall be immediately
transferable, in compliance with the “CONTRACTUAL UNDERTAKING”, subject to the following exception : Beneficiaries residing in France are not entitled to assign any class A preferred share - issued
further to the exercise of an Option – before the end of a four (4) year-period from the issue of the given Option. 

VI - TAX PROVISIONS 

VI-1. THE TAX PROVISIONS CURRENTLY APPLICABLE TO
BENEFICIARIES WHO ARE EMPLOYEES OF SEQUANS COMMUNICATIONS AND WHO ARE DOMICILED
IN FRANCE ARE EXPLAINED BELOW. 
 1. A Beneficiary who has
exercised Options and subscribed for shares of Sequans Communications receives a gain equal to the difference between the value of the shares on the date the Option is exercised and the subscription price for the shares. 

This gain is subject to favourable tax treatment provided that the shares are issued as registered shares and that the sale of the shares
obtained by exercising the Options occurs at least four (4) years after such Options are issued. 

This gain, treated as a capital gain realised at the time of purchase, is subject to a 42,1% tax (i.e., 30% tax, plus 12,1%
for the CSG1, CRDS2 and social security contributions) on the amount up to EUR 152,500,
and to a 52,1% tax on the amount above EUR 152,500. These rates are reduced to 30,1% and 42,1% respectively if the Beneficiary holds these shares for an additional period of two (2) years. 

Failure to comply with these periods will subject these capital gains to the tax treatment applicable to wages and salaries (Article 163 bis C of
the French General Tax Code). As an exception to the foregoing, shares may be sold before the expiry of the four-year period in the event of: 
  

	•	 	 The dismissal of the Beneficiary 

  

	•	 	 The Beneficiary’s retirement 

  

	•	 	 Invalidity deemed to fall within the second and third categories provided in Article L.341-4 of the French Social Security Code

  

	•	 	 The Beneficiary’s death 

 

	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 -

 2. Capital gains realised at the time of sale (i.e., the difference between the sale price of the
share and the value of such share on the date the Option is exercised) are taxed in accordance with the tax treatment of capital gains realised on the sale of securities (Articles 92 B, 92 J, 160, 200 A2 of the French General Tax Code), and only if
the annual threshold for sales of securities is exceeded (EUR 25,830 in 2010, the total amount of sales made by a tax household). 
 The rate
applicable is 30,1% (i.e., the proportional rate of 18%, plus 12,1% for the CSG, CRDS and social security contributions). 
 Note: In
addition, In order to benefit from this specific tax treatment, the Beneficiary must attach to his/her income tax return for the year in which the Options are exercised a certificate that will be provided to him/her by the Company. 

VI-2. TAX PROVISIONS APPLICABLE TO BENEFICIARIES
DOMICILED ABROAD AND/OR EMPLOYEES OF SEQUANS COMMUNICATIONS SUBSIDIARIES LOCATED
ABROAD. 
 Beneficiaries domiciled abroad and/or who are employees of a foreign subsidiary of Sequans Communications are
themselves solely responsible for: 
  

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

  

	 	•	 	 Paying all taxes and contributions due as a result. 

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

  
 - 8/8 -

 SEQUANS COMMUNICATIONS 

Société anonyme au capital de 475.712.78 Euros 
 Siège social: 19, Le Parvis de La Défense - 92800 PUTEAUX 
 RCS
Nonterre 8 450 249 677 
 Regulations 

 
  

Stock Option Subscription Plan - 2010-2 

 - CONTENTS - 

I - DEFINITION OF STOCK OPTION SUBSCRIPTION PLAN 

II - LEGAL FRAMEWORK FOR THE PLAN 

III - DESCRIPTION OF THE PLAN 

 

	 	•	 	 Issuing the Options 

  

	 	•	 	 Number of shares covered by the Options 

  

	 	•	 	 Features and period of validity of the Options 

  

	 	•	 	 Cessation of the Beneficiary’s duties with the Company or one of its subsidiaries 

 

	 	•	 	 Setting the subscription price for shares covered by the Options 

 

	 	•	 	 Maintaining the rights of Beneficiaries during the exercise period 

IV - REQUIREMENTS AND PROCEDURES FOR EXERCISING OPTIONS 

 

	 	•	 	 Suspension of the rights to exercise the Options 

  

	 	•	 	 Procedures and conditions for exercising the Options 

V - FEATURES OF SHARES SUBSCRIBED 

 

	 	•	 	 Delivery ad form of shares 

  

	 	•	 	 Rights 

  

	 	•	 	 Availability of shares 

 VI - TAX PROVISIONS 

  
 - 2/7 -

 I - DEFINITION OF STOCK OPTION SUBSCRIPTION PLAN 

In order to reward its employees and those of its subsidiaries, Sequans Communications wishes to set up a system enabling them to share in its growth.

 A stock option subscription plan is a mechanism by which a company offer its employees and/or company officers, as well as the employees of
its subsidiaries within the meaning of Article L.233-3 of the French Commercial code, the possibility of subscribing for new shares during a certain period, at a price set on the date the Options are issued, and that remains fixed during the entire
period. 
 In this way, the beneficiaries participate in their company’s performance through the changes in share value, even before they
become shareholders by exercising the options to subscribe for shares (hereinafter “Options”). 
 Furthermore, the financial benefit
obtained by exercising the Options 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, in particular, by articles L.225-177 and following of the French Code de
commerce. 
 In a decision taken on 30 June 2010, a combined general shareholders’ meeting voted in favour of the principle of
issuing a total number of 738,000 Options maximum. Each Option gives the holder the right to subscribe for one new class A preferred share of the Company at the price set for shares issued in connection with the most recent increase in share
capital prior to the actual issue of said Option. 
 In addition, this decision granted the Board of Directors the power to issue these Options,
on one or more occasions, including the authority to determine the beneficiaries and the number of Options to be issued, and the elimination of shareholders’ pre-emptive subscription rights. Furthermore, the Board of Directors was granted the
power to increase share capital by a maximum amount equal to the total number of Options issued, to record the successive increases in share capital as a result of the exercise of the Options, and to carry out all formalities required as a result
thereof. 
 Pursuant to this grant of authority, and using a part of the authority granted to it, at a meeting held on [21] July 2010,
the Board of Directors decided the procedures applicable to this stock Option plan (hereinafter “the SO 2010-2 Plan”), in compliance with the principles decided by the aforementioned extraordinary general shareholders’ meeting and the
statutory provisions cited hereinabove, being specified that this SO 2010-2 Plan shall apply to the issuance of 138,000 Options maximum, reserved to the holders of Options issued within SO-2004 subscription plan who have not been able to
exercise such Options 2004-1 within the applicable 5 year period. 
 Ill - DESCRIPTION OF THE SO 2010-2 PLAN 

The list of the SO 2010-2 Plan’s beneficiaries (hereinafter “Beneficiaries”) shall be approved by the Company’s Board of Directors.

  
 - 3/7 -

 III-1. Issuing the Options 
 The Options are issued free of charge to each Beneficiary. 
 No person holding more than 10% of
Sequans Communications’ share capital shall be issued any Options. 
 The number of Options issued to each Beneficiary shall be indicated
in an individual letter sent to him/her by the Chairman. 
 Exercising an Option entitles the holder to subscribe for one new class A
preferred share of Sequans Communications’ share capital at the price set out hereinafter. 
 This number of shares cannot be modified
during the Options’ 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 Options have been issued to him/her, the Beneficiary
undertakes to return to the Company a copy of this SO 2010-2 Plan and a copy of the “CONTRACTUAL UNDERTAKING” attached to said letter, after the Beneficiary has duly executed said copies.

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

 III-2. Features and period of validity of the Options 
 Options are irrevocably granted for a period of 10 years as from the time they are issued by the Board of Directors. 
 As a result of issuing the Options, the pre-emptive right of shareholders to subscribe for the new shares to be issued as said Options are exercised will be eliminated in favour of the Beneficiaries.

 Rights obtained as the result of the Options cannot be transferred until the Options have been exercised. 

Options may be exercised from the date of grant, being specified that such exercise must in any case occur within the aforementioned maximum period of
10 years. 
 The first exercise must cover 25% of the Options issued to the Beneficiary, in accordance with the schedule set out above.

 In the event that a third party acquires a 100% interest in Sequans Communications, and in no other case, a Beneficiary who is
subsequently dismissed for genuine material cause shall have the right to exercise all of his/her Options within a period of 30 days following the date of said dismissal, notwithstanding the schedule set out above for exercising his/her Options.

 In the event that a company ceases to be a subsidiary of Sequans Communications, all Options held by the employees of such subsidiary, and
that have not been exercised before such time, shall automatically and immediately become void. 
 In any event, any Option that is not
exercised before the expiry of the aforementioned 10-year period shall be null and void. 

  
 - 4/7 -

 III-3. Cessation of the Beneficiary’s duties with Sequans Communications or one of its
subsidiaries 
 In the event that the Beneficiary’s duties with Sequans Communications or one of its subsidiaries, whether as an
employee or company officer, cease due to resignation, redundancy, dismissal, incapacity or death, regardless of the reason: 
  

	 	•	 	 Said Beneficiary shall retains the right to exercise Options that have not yet been exercised, provided that the Beneficiary exercises his/her Options
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 have a
period of 6 months to exercise the Options. 
 After the expiry of the periods hereinabove, the Beneficiary, his/her heirs or
beneficiaries lose all rights with regard to unexercised Options. 
 III-4. Setting the subscription price for shares obtained by
exercising the Options 
 The combined general shareholders’ meeting set the subscription price for shares to be issued pursuant to
an exercise of the Options at the price set for shares issued pursuant to the most recent increase in share capital prior to the actual issue of said Option. 
 Consequently, the subscription price for shares to be issued pursuant to exercising the Option is set, with respect to this SO 2010-2 Plan, in the amount of EUR 2.024 per share (of which EUR
2.014 is an issue premium), i.e., the issue price for shares decided in connection with the increase in share capital voted by the combined general shareholders’ meeting held on 16 July 2010. 

This price may not be changed during the Options’ period of validity, except in the event of adjustments in accordance with statutory and regulatory
requirements. 
 III-5. Maintaining the rights of Option holders during the exercise period 

During the entire period of validity of the Options, the Company will have the option of changing its form or object, without obtaining prior
authorisation from the Beneficiaries. In addition, the Company shall be entitled to change the rules for distributing profits, write down its capital, or create preferred shares entailing such modification or writing down, subject to the prior
authorisation to be delivered pursuant the terms of Article L. 228-103 of the French Commercial code and provided that the Company accordingly take the measures necessary to maintain the rights of the Beneficiaries, in compliance with applicable
legal and/or regulatory provisions. 
 IV - REQUIREMENTS AND PROCEDURES FOR EXERCISING OPTIONS 

IV-1. Suspension of the rights to exercise the Options 
 If necessary, the Board of Directors may suspend the right to exercise the Options. In particular, a suspension may be ordered whenever a transaction concerning Sequans Communications’ share capital
requires knowing in advance the exact number of shares that make up share capital or in the event that one of the financial transactions requiring an adjustment is carried out. 

  
 - 5/7 -

 In such case, Sequans Communications shall inform the Beneficiaries of the Options, indicating the date of
the suspension and the date on which the right to exercise Options will be re-established. Such suspension may not exceed 3 months. 
 If the
right to exercise an Option expires during a period in which rights are suspended, the period for exercising the Option shall be extended by 3 months. 
 IV- 2. Conditions for exercising Options 
 All requests for exercising Options,
documented by the signature of a subscription certificate specific to the SO 2010-2 Plan, shall be sent to Sequans Communications, and must be accompanied by a cheque made out to the Company’s order in an amount corresponding to the number of
shares 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 Options 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. Rights - Availability 
 The new shares, class A preferred shares, shall be
subject to all provisions of the memorandum and articles of association and shall enjoy all rights pertaining to shares of such class as from the date the increase in share capital is completed. 

These shares shall be immediately transferable, in compliance with the “CONTRACTUAL
UNDERTAKING”, subject to the following exception : Beneficiaries domiciled in France are not entitled to assign any class A preferred share - issued further to the exercise of an Option – before the
end of a four (4) year-period from the issue of the given Option. 
 VI - TAX PROVISIONS 

VI-1. THE TAX PROVISIONS CURRENTLY APPLICABLE TO
BENEFICIARIES WHO ARE EMPLOYEES OF SEQUANS COMMUNICATIONS AND WHO ARE RESIDING
IN FRANCE ARE EXPLAINED BELOW. 
 1. A Beneficiary who has
exercised Options and subscribed for shares of Sequans Communications receives a gain equal to the difference between the value of the shares on the date the Option is exercised and the subscription price for the shares. 

This gain is subject to favourable tax treatment provided that the shares are issued as registered shares and that the sale of the shares obtained
by exercising the Options occurs at least four (4) years after such Options are issued. 

  
 - 6/7 -

 This gain, treated as a capital gain realised at the time of purchase, is subject
to a 42,1% tax (i.e., 30% tax, plus 12,1% for the CSG1,
CRDS2 and social security contributions) on the amount up
to EUR 152,500, and to a 52,1% tax on the amount above EUR 152,500. These rates are reduced to 30,1% and 42,1% respectively if the Beneficiary holds these shares for an additional period of two (2) years. 

Failure to comply with these periods will subject these capital gains to the tax treatment applicable to wages and salaries (Article 163 bis C of
the French General Tax Code). As an exception to the foregoing, shares may be sold before the expiry of the four-year period in the event of: 
  

	•	 	 The dismissal of the Beneficiary 

  

	•	 	 The Beneficiary’s retirement 

  

	•	 	 Invalidity deemed to fall within the second and third categories provided in Article L.341-4 of the French Social Security Code

  

	•	 	 The Beneficiary’s death 

 2. Capital gains realised at the time of sale (i.e., the difference between the sale price of the share and the value of such share on the date the Option is exercised) are taxed in accordance with
the tax treatment of capital gains realised on the sale of securities (Articles 92 B, 92 J, 160, 200 A2 of the French General Tax Code), and only if the annual threshold for sales of securities is exceeded (EUR 25,830 in 2010, the total amount of
sales made by a tax household). 
 The rate applicable is 30,1% (i.e., the proportional rate of 18%, plus 12,1% for the CSG, CRDS and social
security contributions). 
 Note: In addition, in order to benefit from this specific tax treatment, the Beneficiary must attach to
his/her income tax return for the year in which the Options are exercised a certificate that will be provided to him/her by the Company. 

Vl-2. TAX PROVISIONS APPLICABLE TO BENEFICIARIES
DOMICILED ABROAD AND/OR EMPLOYEES OF SEQUANS COMMUNICATIONS SUBSIDIARIES LOCATED
ABROAD. 
 Beneficiaries domiciled abroad and/or who are employees of a foreign subsidiary of Sequans Communications are
themselves solely responsible for: 
  

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

  

	 	•	 	 Paying all taxes and contributions due as a result. 

 Sequans Communications and its subsidiaries 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. 

  
 - 7/7 -

 SEQUANS COMMUNICATIONS 

Société anonyme au capital de 534.373.54 euros 
 Siège social: 19, Le Parvis de La Défense - 92800 PUTEAUX 
 RCS
Nanterre 8 450 249 677 
 Regulations 

 
  

Stock Option Subscription Plan - 2010-1-2 
 (11 January 2011) 

 - CONTENTS - 
 I - DEFINITION OF STOCK OPTION SUBSCRIPTION PLAN 
 II - LEGAL FRAMEWORK FOR THE
PLAN 
 III - DESCRIPTION OF THE PLAN 
  

	 	•	 	 Issuing the Options 

  

	 	•	 	 Number of shares covered by the Options 

  

	 	•	 	 Features and period of validity of the Options 

  

	 	•	 	 Cessation of the Beneficiary’s duties with the Company or one of its subsidiaries 

 

	 	•	 	 Setting the subscription price for shares covered by the Options 

 

	 	•	 	 Maintaining the rights of Beneficiaries during the exercise period 

 IV - REQUIREMENTS AND PROCEDURES FOR EXERCISING OPTIONS 
  

	 	•	 	 Suspension of the rights to exercise the Options 

  

	 	•	 	 Procedures and conditions for exercising the Options 

 V - FEATURES OF SHARES SUBSCRIBED 
  

	 	•	 	 Delivery ad form of shares 

  

	 	•	 	 Rights 

  

	 	•	 	 Availability of shares 

VI - TAX PROVISIONS 

  
 - 2/8 -

 I - DEFINITION OF STOCK OPTION SUBSCRIPTION PLAN 

In order to reward its employees and those of its subsidiaries, Sequans Communications wishes to set up a system enabling them to share in its growth.

 A stock option subscription plan is a mechanism by which a company offer its employees and/or company officers, as well as the employees of
its subsidiaries within the meaning of Article L.233-3 of the French Commercial code, the possibility of subscribing for new shares during a certain period, at a price set on the date the Options are issued, and that remains fixed during the entire
period. 
 In this way, the beneficiaries participate in their company’s performance through the changes in share value, even before they
become shareholders by exercising the options to subscribe for shares (hereinafter “Options”). 
 Furthermore, the financial benefit
obtained by exercising the Options 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, in particular, by articles L.225-177 and following of the French Code de
commerce. 
 In a decision taken on 30 June 2010, a combined general shareholders’ meeting voted in favour of the principle of
issuing a total number of 738,000 Options maximum. Each Option gives the holder the right to subscribe for one new class A preferred share of the Company at the price set for shares issued in connection with the most recent increase in share
capital prior to the actual issue of said Option. 
 In addition, this decision granted the Board of Directors the power to issue these Options,
on one or more occasions, including the authority to determine the beneficiaries and the number of Options to be issued, and the elimination of shareholders’ pre-emptive subscription rights. Furthermore, the Board of Directors was granted the
power to increase share capital by a maximum amount equal to the total number of Options issued, to record the successive increases in share capital as a result of the exercise of the Options, and to carry out all formalities required as a result
thereof. 
 Pursuant to this grant of authority, and using a part of the authority granted to it, at a meeting held on 21 July 2010,
the Board of Directors decided the procedures applicable to such stock Option plan (hereinafter “the SO 2010-1 Plan”), in compliance with the principles decided by the aforementioned extraordinary general shareholders’ meeting and
applicable statutory provisions. 
 By virtue of a decision taken on 11 January 2011, a combined general shareholders’ meeting
has amended the conditions of setting of the subscription price for the class A preferred share (or a ordinary share should the Company be listed on financial markets) to be issued pursuant to exercising an Option, and decided that this price would
be set at the fair market value as applicable at the date of allocation of the Option, value to be set and approved by the Board of Directors of the Company. 

  
 - 3/8 -

 Therefore and pursuant to the aforesaid grant of authority, at a meeting held on 11 January
2011, the Board of Directors decided the procedures applicable to this stock and established the present SO 2010-1-2 Plan which are a declination of the SO 2010-1 Plan and which include the new conditions of setting of the subscription price for
the share to be issued pursuant to exercising an Option. 
 III - DESCRIPTION OF THE PLAN 

The list of the 2010-1-2 Plan’s beneficiaries (hereinafter “Beneficiaries”) shall be approved by the Company’s Board of Directors.

 III-1. Issuing the Options 
 The Options are issued free of charge to each Beneficiary. 
 No person holding more than 10% of
Sequans Communications’ share capital shall be issued any Options. 
 The number of Options issued to each Beneficiary, as well as the
subscription price for the share to be issued pursuant to exercising an Option (as defined under section III-4 below) shall be indicated in the Individual Letter of Notification sent to him/her by the Chairman and which is deemed to be an exhibit of
this Plan. 
 Exercising an Option entities the holder to subscribe for one new class A preferred share (or an ordinary share should the
Company be listed on financial markets) of Sequans Communications’ share capital. 
 This number of shares cannot be modified during the
Options’ 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 informing him/her that Options have been issued to him/her, the Beneficiary undertakes to return to
the Company: 
  

	 	(i)	a copy of this Plan, 

  

	 	(ii)	a copy of the Individual Letter of Notification, and 

  

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

being specified that all such copies shall be duly executed by the Beneficiary who acknowledges that the Individual Letter of Notification and the
“CONTRACTUAL UNDERTAKING” are part of these Plan. 
 Failure to comply with this
formality within the applicable period shall render the Options issued immediately and automatically void. 
 III-2. Features and period
of validity of the Options 
 Options are irrevocably granted for a period of 10 years as from the time they are issued by the Board of
Directors. 
 As a result of issuing the Options, the pre-emptive right of shareholders to subscribe for the new shares to be issued as said
Options are exercised will be eliminated in favour of the Beneficiaries. 
 Rights obtained as the result of the Options cannot be transferred
until the Options have been exercised. 

  
 - 4/8 -

 Options must be exercised within the aforementioned maximum period of 10 years. Furthermore, the
Beneficiary must comply with the following schedule: 
 (i) first issue 

 

	 	•	 	 The Beneficiary may exercise 25% of the Options issued to him/her after the expiry of a period of 12 months following the date he/she joins Sequans
Communications or one of its subsidiaries; 

  

	 	•	 	 Thereafter, the Beneficiary may exercise the remainder of his/her Options at the rate of 1/36th per month for the period between the 13th and 48th month following the date he/she joins Sequans Communications or one of its subsidiaries. 

(i) further issue(s) 
  

	 	•	 	 The Beneficiary may exercise 25% of the Options issued to him/her after the expiry of a period of 12 months following the date of such issue ;

  

	 	•	 	 Thereafter, the Beneficiary may exercise the remainder of his/her Options at the rate of l/36th per month for the period between the 13th and 48th month following the date of the aforesaid issue. 

The first exercise must cover 25% of the Options issued to the Beneficiary, in accordance with the schedule set out above. 

In the event that a third party acquires a 100% interest in Sequans Communications, and in no other case, a Beneficiary who is subsequently
dismissed for genuine material cause shall have the right to exercise all of his/her Options within a period of 30 days following the date of said dismissal, notwithstanding the schedule set out above for exercising his/her Options. 

In the event that a company ceases to be a subsidiary of Sequans Communications, all Options held by the employees of such subsidiary, and that have not
been exercised before such time, shall automatically and immediately become void. 
 In any event, any Option that is not exercised before the
expiry of the aforementioned 10-year period shall be null and void. 
 III-3. Cessation of the Beneficiary’s duties with Sequans
Communications or one of its subsidiaries 
 In the event that the Beneficiary’s duties with Sequans Communications or one of its
subsidiaries, whether as an employee or company officer, cease due to resignation, redundancy, dismissal, incapacity or death, regardless of the reason: 
  

	 	•	 	 Said Beneficiary shall lose all rights with regard to Options that are not yet exercisable on the date that his/her duties cease in accordance with the
schedule for exercising the Options set out in Article III-2. hereinabove. 

  
 - 5/8 -

 However, the Beneficiary retains the right to exercise Options that are exercisable and that
have not yet been exercised, provided that the Beneficiary exercises his/her Options 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 have a period of 6 months to exercise the Options. 
 After
the expiry of the periods hereinabove, the Beneficiary, his/her heirs or beneficiaries lose all rights with regard to unexercised Options. 

III-4. Setting the subscription price for shares obtained by exercising the Options 

The subscription price for shares to be issued pursuant to an exercise of the Options is set at the fair market value as applicable at the date of
allocation of the Option, value to be set and approved by the Board of Directors of the Company. 
 This price is mentioned in the Individual
Notification Letter, price which may not be changed during the Options’ period of validity, except in the event of adjustments in accordance with statutory and regulatory requirements. 
 III-5. Maintaining the rights of Option holders during the exercise period 
 During
the entire period of validity of the Options, the Company will have the option of changing its form or object, without obtaining prior authorisation from the Beneficiaries. In addition, the Company shall be entitled to change the rules for
distributing profits, write down its capital, or create preferred shares entailing such modification or writing down, subject to the prior authorisation to be delivered pursuant the terms of Article L. 228-103 of the French Commercial code and
provided that the Company accordingly take the measures necessary to maintain the rights of the Beneficiaries, in compliance with applicable legal and/or regulatory provisions. 
 IV - REQUIREMENTS AND PROCEDURES FOR EXERCISING OPTIONS  
 IV-1. Suspension of the
rights to exercise the Options 
 If necessary, the Board of Directors may suspend the right to exercise the Options. In particular, a
suspension may be ordered whenever a transaction concerning Sequans Communications’ share capital requires knowing in advance the exact number of shares that make up share capital or in the event that one of the financial transactions requiring
an adjustment is carried out. 
 In such case, Sequans Communications shall inform the Beneficiaries of the Options, Indicating the date of the
suspension and the date on which the right to exercise Options will be re-established. Such suspension may not exceed 3 months. 
 If the right
to exercise an Option expires during a period in which rights are suspended, the period for exercising the Option shall be extended by 3 months. 

  
 - 6/8 -

 IV-2. Conditions for exercising Options 

All requests for exercising Options, documented by the signature of a subscription certificate specific to the SO 2010-1-2 Plan, shall be sent to Sequans
Communications, and must be accompanied by a cheque made out to the Company’s order in an amount corresponding to the number of shares subscribed. Shares subscribed must be fully paid up in cash or by way of a set-off with a 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 Options 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. Rights - Availability 
 The new shares (class A preferred shares or ordinary
shares, as the case may be), shall be subject to all provisions of the memorandum and articles of association and shall enjoy all rights pertaining to shares of such class as from the date the increase in share capital is completed. 

These shares shall be immediately transferable, in compliance with the “CONTRACTUAL
UNDERTAKING”, subject to the following exception: Beneficiaries residing in France are not entitled to assign any class A preferred share - issued further to the exercise of an Option - before the end of
a four (4) year-period from the issue of the given Option. 
 VI - TAX PROVISIONS 

VI-1. THE TAX PROVISIONS CURRENTLY APPLICABLE TO
BENEFICIARIES WHO ARE EMPLOYEES OF SEQUANS COMMUNICATIONS AND WHO ARE DOMICILED
IN FRANCE ARE EXPLAINED BELOW. 
 1. A Beneficiary who has
exercised Options and subscribed for shares of Sequans Communications receives a gain equal to the difference between the value of the shares on the date the Option is exercised and the subscription price for the shares. 

This gain is subject to favourable tax treatment provided that the shares are Issued as registered shares and that the sale of the shares
obtained by exercising the Options occurs at least four (4) years after such Options are issued. 
 This gain, treated as a capital
gain realised at the time of purchase, is subject to a 42,3% tax (i.e., 30% tax, plus 12,3% for the CSG1, CRDS2 and social security contributions) on the amount up to EUR 152,500, and to a 53,3% tax on the amount above EUR 152,500.
These rates are reduced to 30,3% and 42,3% respectively if the Beneficiary holds these shares for an additional period of two (2) years. 

 

	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 -

 Failure to comply with these periods will subject these capital gains to the tax treatment applicable
to wages and salaries (Article 163 bis C of the French General Tax Code). As an exception to the foregoing, shares may be sold before the expiry of the four-year period in the event of: 

 

	•	 	 The dismissal of the Beneficiary 

  

	•	 	 The Beneficiary’s retirement 

  

	•	 	 Invalidity deemed to fall within the second and third categories provided in Article L.341-4 of the French Social Security Code

  

	•	 	 The Beneficiary’s death 

 2. Capital gains realised at the time of sale (i.e., the difference between the sale price of the share and the value of such share on the date the Option is exercised) are taxed from the first
Euro in accordance with the tax treatment of capital gains realised on the sale of securities (Articles 92 B, 92 J, 160, 200 A2 of the French General Tax Code). 
 The rate applicable is 31,3% (i.e., the proportional rate of 19%, plus 12,3% for the CSG, CRDS and social security contributions). 
 Note: In addition, in order to benefit from this specific tax treatment, the Beneficiary must attach to his/her income tax return for the year in which the Options are exercised a certificate that
will be provided to him/her by the Company. 
 VI-2. TAX PROVISIONS APPLICABLE
TO BENEFICIARIES DOMICILED ABROAD AND/OR EMPLOYEES OF SEQUANS COMMUNICATIONS
SUBSIDIARIES LOCATED ABROAD. 
 Beneficiaries domiciled abroad and/or who are employees of a foreign
subsidiary of Sequans Communications are themselves solely responsible for: 
  

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

  

	 	•	 	 Paying all taxes and contributions due as a result. 

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

  
 - 8/8 -

 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 
 Regulations 

 
  

Stock Option Subscription Plan – 2011-1 

 - CONTENTS - 
 I - DEFINITION OF STOCK OPTION SUBSCRIPTION PLAN 
 II - LEGAL FRAMEWORK FOR THE PLAN

 III - DESCRIPTION OF THE PLAN 
  

	 	•	 	 Issuing the Options 

  

	 	•	 	 Number of shares covered by the Options 

  

	 	•	 	 Features and period of validity of the Options 

  

	 	•	 	 Cessation of the Beneficiary’s duties with the Company or one of its subsidiaries 

 

	 	•	 	 Setting the subscription price for shares covered by the Options 

 

	 	•	 	 Maintaining the rights of Beneficiaries during the exercise period 

 IV - REQUIREMENTS AND PROCEDURES FOR EXERCISING OPTIONS 
  

	 	•	 	 Suspension of the rights to exercise the Options 

  

	 	•	 	 Procedures and conditions for exercising the Options 

 V - FEATURES OF SHARES SUBSCRIBED 
  

	 	•	 	 Delivery ad form of shares 

  

	 	•	 	 Rights 

  

	 	•	 	 Availability of shares 

VI - TAX PROVISIONS 

  
 - 2/8 -

 I - DEFINITION OF STOCK OPTION SUBSCRIPTION PLAN  

In order to reward its employees and those of its subsidiaries, Sequans Communications wishes to set up a system enabling them to share in its growth.

 A stock option subscription plan is a mechanism by which a company offer its employees and/or company officers, as well as the employees of
its subsidiaries within the meaning of Article L.233-3 of the French Commercial code, the possibility of subscribing for new shares during a certain period, at a price set on the date the Options are issued, and that remains fixed during the entire
period. 
 In this way, the beneficiaries participate in their company’s performance through the changes in share value, even before they
become shareholders by exercising the options to subscribe for shares (hereinafter “Options”). 
 Furthermore, the financial benefit
obtained by exercising the Options 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, in particular, by articles L.225-177 and following of the French Code de
commerce. 
 In a decision taken on 8 March 2011, a combined general shareholders’ meeting voted in favour of the principle of issuing
Options likely to give rise to a maximum of 3,500,000 new shares with a unitary par value of EUR 0.01 (or 1,750,000 new shares with a unitary par value of EUR 0.02, from the effective date of the reverse split of the Company shares). 

This combined general shareholders’ meeting has defined the conditions of setting of the subscription price for the security likely to be issued
upon exercise of each Option and decided that this price would be set by the Board of Directors of the Company, at the fair market value as applicable at the date of allocation of the Option, pursuant to objective methods applicable in the field of
assessment of shares (including, as the case may be, the reference to the market price of Company listed shares), and if required, with the assistance of independent experts. 
 In addition, this decision granted the Board of Directors the power to issue these Options, on one or more occasions, including the authority to determine the beneficiaries and the number of Options to be
issued, and the elimination of shareholders’ pre-emptive subscription rights. Furthermore, the Board of Directors was granted the power to increase share capital by a maximum amount equal to the total number of Options issued, to record the
successive increases in share capital as a result of the exercise of the Options, and to carry out all formalities required as a result thereof. 
 Therefore and pursuant to the aforesaid grant of authority, at a meeting held on 8 March 2011, the Board of Directors decided the procedures applicable to this stock and established the present SO
2011-1 Plan Option, in conformity with the principles set by the combined general shareholders’ meeting and aforesaid statutory provisions. 

  
 - 3/8 -

 III - DESCRIPTION OF THE PLAN 

The list of the 2011-1 Plan’s beneficiaries (hereinafter “Beneficiaries”) shall be approved by the Company’s Board of Directors.

 III-1. Issuing the Options 
 The Options are issued free of charge to each Beneficiary. 
 No person holding more than 10% of
Sequans Communications’ share capital shall be issued any Options. 
 The number of Options issued to each Beneficiary, as well as the
subscription price for the share to be issued pursuant to exercising an Option (as defined under section III-4 below) shall be indicated in the Individual Letter of Notification sent to him/her by the Chairman and which is deemed to be an exhibit of
this Plan. 
 Exercising an Option entitles the Beneficiary to subscribe for one new class A preferred share with a par value of EUR 0.01 (or
two (2) Options will allow the Beneficiary to subscribe for one (1) ordinary share with a par value of EUR 0.02, from the effective date of the conversion of A preferred shares in ordinary shares and reverse split of the Company shares)
(hereafter a “New Share”). 
 This number of shares cannot be modified during the Options’ 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 informing him/her that Options have been issued to
him/her, the Beneficiary undertakes to return to the Company: 
  

	 	(i)	a copy of this Plan, 

  

	 	(ii)	a copy of the Individual Letter of Notification, and 

  

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

being specified that all such copies shall be duly executed by the Beneficiary who acknowledges that the Individual Letter of Notification and the
“CONTRACTUAL UNDERTAKING” are part of these Plan. 
 Failure to comply with this formality within
the applicable period shall render the Options issued immediately and automatically void. 
 III-2. Features and period of validity of the
Options 
 Options are irrevocably granted for a period of 10 years as from the time they are issued by the Board of Directors.

 As a result of issuing the Options, the pre-emptive right of shareholders to subscribe for the new shares to be issued as said Options are
exercised will be eliminated in favour of the Beneficiaries. 
 Rights obtained as the result of the Options cannot be transferred until the
Options have been exercised. 
 Options must be exercised within the aforementioned maximum period of 10 years, any Option not exercised
before the expiry of such period shall automatically become null and void. 

  
 - 4/8 -

 Furthermore, the Beneficiary must comply with the following schedule: 

(i) first issue 
  

	 	•	 	 The Beneficiary may exercise 25% of the Options issued to him/her after the expiry of a period of 12 months following the date he/she joins Sequans
Communications or one of its subsidiaries; 

  

	 	•	 	 Thereafter, the Beneficiary may exercise the remainder of his/her Options at the rate of 1/36th per month for the period between the 13th and 48th month following the date he/she joins Sequans Communications or one of its subsidiaries. 

(i) further issue(s) 
  

	 	•	 	 The Beneficiary may exercise 25% of the Options issued to him/her after the expiry of a period of 12 months following the date of such issue ;

  

	 	•	 	 Thereafter, the Beneficiary may exercise the remainder of his/her Options at the rate of 1/36th per month for the period between the 13th and 48th month following the date of the aforesaid issue. 

The first exercise must cover 25% of the Options issued to the Beneficiary, in accordance with the schedule set out above. 

In the event that a third party acquires a 100% interest in Sequans Communications, and in no other case, a Beneficiary who is subsequently
dismissed for genuine material cause shall have the right to exercise all of his/her Options within a period of 30 days following the date of said dismissal, notwithstanding the schedule set out above for exercising his/her Options. 

In the event that a company ceases to be a subsidiary of Sequans Communications, all Options held by the employees of such subsidiary, and that have not
been exercised before such time, shall automatically and immediately become null and void. 
 III-3. Cessation of the Beneficiary’s
duties with Sequans Communications or one of its subsidiaries 
 In the event that the Beneficiary’s duties with Sequans
Communications or one of its subsidiaries, whether as an employee or company officer, cease due to resignation, redundancy, dismissal, incapacity or death, regardless of the reason: 

 

	 	•	 	 Said Beneficiary shall lose all rights with regard to Options that are not yet exercisable on the date that his/her duties cease in accordance with the
schedule for exercising the Options set out in Article III-2. hereinabove. 

 However, the Beneficiary retains
the right to exercise Options that are exercisable and that have not yet been exercised, provided that the Beneficiary exercises his/her Options 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. 

  
 - 5/8 -

 In the event of death, the Beneficiary’s heirs or beneficiaries shall have a period of
6 months to exercise the Options. 
 After the expiry of the periods hereinabove, the Beneficiary, his/her heirs or beneficiaries
lose all rights with regard to unexercised Options. 
 III-4. Setting the subscription price for shares obtained by exercising the Options

 The subscription price for New Shares to be issued pursuant to an exercise of the Options is set at the fair market value as
applicable at the date of allocation of the Option, value to be set and approved by the Board of Directors of the Company, pursuant to objective methods applicable in the field of assessment of shares (including, as the case may be, the reference to
the market price of Company listed shares), and if required, with the assistance of independent experts. 
 This price is mentioned in the
Individual Notification Letter, price which may not be changed during the Options’ period of validity, except in the event of adjustments in accordance with statutory and regulatory requirements. 

III-5. Maintaining the rights of Option holders during the exercise period 
 During the entire period of validity of the Options, the Company shall be entitled to proceed with a capital write-off or reduction, a change to the appropriation of profits, a free allotment of shares, a
capitalization of reserves, profits or share premiums, a distribution of reserves or any issue of capital securities or securities giving entitlement to an allotment of capital securities conferring a subscription right reserved for shareholders,
provided that the Company accordingly take the necessary measures to protect the interests of the Beneficiaries in compliance with applicable legal and/or regulatory provisions. 

IV - REQUIREMENTS AND PROCEDURES FOR EXERCISING OPTIONS 
 IV-1. Suspension of the rights to exercise the Options 
 If necessary, the Board of
Directors may suspend the right to exercise the Options. In particular, a suspension may be ordered whenever a transaction concerning Sequans Communications’ share capital requires knowing in advance the exact number of shares that make up
share capital or in the event that one of the financial transactions requiring an adjustment is carried out. 
 In such case, Sequans
Communications shall inform the Beneficiaries of the Options, indicating the date of the suspension and the date on which the right to exercise Options will be re-established. Such suspension may not exceed 3 months. 

If the right to exercise an Option expires during a period in which rights are suspended, the period for exercising the Option shall be extended by 3
months. 
 IV-2. Conditions for exercising Options 
 All requests for exercising Options, documented by the signature of a subscription certificate specific to the SO 2011-1 Plan, shall be sent to Sequans Communications, and shall be accompanied by a cheque
made out to the Company’s order in an amount corresponding to the number of New Shares subscribed, considering that such shares must be fully paid up in cash at the time of subscription, except in case of settlement of the subscription price by
way of a set-off with a debt. 

  
 - 6/8 -

 Failure to do so renders the subscription null and void. 

V - FEATURES OF SHARES SUBSCRIBED 
 V-1. Delivery and form of shares 
 New Shares acquired by exercising Options 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. Rights - Availability 
 New Shares (class A preferred shares or ordinary shares,
as the case may be), shall be subject to all provisions of the memorandum and articles of association and shall enjoy all rights pertaining to shares of such class as from the date the increase in share capital is completed. 

These New Shares shall be immediately transferable, in compliance with the “CONTRACTUAL UNDERTAKING”,
subject to the following exception : Beneficiaries residing in France are not entitled to assign any New Share issued further to the exercise of an Option, before the end of a four (4) year-period from the issue of the given
Option. 
 VI – TAX PROVISIONS 
 VI-1. THE TAX PROVISIONS CURRENTLY APPLICABLE TO BENEFICIARIES WHO
ARE EMPLOYEES OF SEQUANS COMMUNICATIONS AND WHO ARE DOMICILED IN FRANCE
ARE EXPLAINED BELOW. 
 1. A Beneficiary who has exercised Options and subscribed for shares
of Sequans Communications receives a gain equal to the difference between the value of the shares on the date the Option is exercised and the subscription price for the shares. 
 This gain is subject to favourable tax treatment provided that the shares are issued as registered shares and that the sale of the shares obtained by exercising the Options occurs at least four
(4) years after such Options are issued. 
 This gain, treated as a capital gain realised at the time of
purchase, is subject to a 42,3% tax (i.e., 30% tax, plus 12,3% for the CSG1, CRDS2 and
social security contributions) on the amount up to EUR 152,500, and to a 53,3% tax (i.e., 41% tax, plus 12,3% for social security contributions) on the amount above EUR 152,500.
These rates are reduced to 30,3% and 42,3% respectively if the Beneficiary holds these shares for an additional period of two (2) years. 
 Failure to comply with these periods will subject these capital gains to the tax treatment applicable to wages and salaries (Article 163 bis C of the French General Tax Code). As an exception to
the foregoing, shares may be sold before the expiry of the four-year period in the event of: 
  

	•	 	 The dismissal of the Beneficiary 

 

	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 -

	•	 	 The Beneficiary’s retirement 

  

	•	 	 Invalidity deemed to fall within the second and third categories provided in Article L.341-4 of the French Social Security Code

  

	•	 	 The Beneficiary’s death 

 2. Capital gains realised at the time of sale (i.e., the difference between the sale price of the share and the value of such share on the date the Option is exercised) are taxed from the first
Euro in accordance with the tax treatment of capital gains realised on the sale of securities (Articles 92 B, 92 J, 160, 200 A2 of the French General Tax Code). 
 The rate applicable is 31,3% (i.e., the proportional rate of 19%, plus 12,3% for the CSG, CRDS and social security contributions). 
 Note: In addition, in order to benefit from this specific tax treatment, the Beneficiary must attach to his/her income tax return for the year in which the Options are exercised a certificate that
will be provided to him/her by the Company. 
 3. The tax information contained in this section VI-1 is likely to change in accordance
with the applicable statutory and regulatory provisions. Sequans Communications and its subsidiaries shall have no obligation to provide advice and/or assistance in this regard. 
 VI-2. TAX PROVISIONS APPLICABLE TO BENEFICIARIES DOMICILED ABROAD
AND/OR EMPLOYEES OF SEQUANS COMMUNICATIONS SUBSIDIARIES LOCATED ABROAD. 

Beneficiaries domiciled abroad and/or who are employees of a foreign subsidiary of Sequans Communications are solely responsible for: 

 

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

  

	 	•	 	 Paying all taxes and contributions due as a result. 

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

  
 - 8/8 -

 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 
 Regulations 

 
  

Stock Option Subscription Plan – 2011-2 

 - CONTENTS - 
 I - DEFINITION OF STOCK OPTION SUBSCRIPTION PLAN 
 II - LEGAL FRAMEWORK FOR THE PLAN

 III - DESCRIPTION OF THE PLAN 
  

	 	•	 	 Issuing the Options 

  

	 	•	 	 Number of shares covered by the Options 

  

	 	•	 	 Features and period of validity of the Options 

  

	 	•	 	 Cessation of the Beneficiary’s duties with the Company or one of its subsidiaries 

 

	 	•	 	 Setting the subscription price for shares covered by the Options 

 

	 	•	 	 Maintaining the rights of Beneficiaries during the exercise period 

 IV - REQUIREMENTS AND PROCEDURES FOR EXERCISING OPTIONS 
  

	 	•	 	 Suspension of the rights to exercise the Options 

  

	 	•	 	 Procedures and conditions for exercising the Options 

 V - FEATURES OF SHARES SUBSCRIBED 
  

	 	•	 	 Delivery ad form of shares 

  

	 	•	 	 Rights 

  

	 	•	 	 Availability of shares 

VI - TAX PROVISIONS 

  
 - 2/8 -

 I - DEFINITION OF STOCK OPTION SUBSCRIPTION PLAN  

In order to reward its employees and those of its subsidiaries, Sequans Communications wishes to set up a system enabling them to share in its growth.

 A stock option subscription plan is a mechanism by which a company offer its employees and/or company officers, as well as the employees of
its subsidiaries within the meaning of Article L.233-3 of the French Commercial code, the possibility of subscribing for new shares during a certain period, at a price set on the date the Options are issued, and that remains fixed during the entire
period. 
 In this way, the beneficiaries participate in their company’s performance through the changes in share value, even before they
become shareholders by exercising the options to subscribe for shares (hereinafter “Options”). 
 In addition, the objective of
this plan is to incentivise the beneficiairies in case the company will succeed its initial public offering. 
 Furthermore, the financial
benefit obtained by exercising the Options 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, in particular, by articles L.225-177 and following of the French Code de commerce. 
 In a decision taken on 8 March 2011, a combined general shareholders’ meeting voted in favour of the principle of issuing Options likely to give rise to a maximum of 3,500,000 new shares with a
unitary par value of EUR 0.01 (or 1,750,000 new shares with a unitary par value of EUR 0.02, from the effective date of the reverse split of the Company shares). 
 This combined general shareholders’ meeting has defined the conditions of setting of the subscription price for the security likely to be issued upon exercise of each Option and decided that this
price would be set by the Board of Directors of the Company, at the fair market value as applicable at the date of allocation of the Option, pursuant to objective methods applicable in the field of assessment of shares (including, as the case may
be, the reference to the market price of Company listed shares), and if required, with the assistance of independent experts. 
 In addition,
this decision granted the Board of Directors the power to issue these Options, on one or more occasions, including the authority to determine the beneficiaries and the number of Options to be issued, and the elimination of shareholders’
pre-emptive subscription rights. Furthermore, the Board of Directors was granted the power to increase share capital by a maximum amount equal to the total number of Options issued, to record the successive increases in share capital as a result of
the exercise of the Options, and to carry out all formalities required as a result thereof. 
 Therefore and pursuant to the aforesaid grant of
authority, at a meeting held on 8 March 2011, the Board of Directors decided the procedures applicable to this stock and established the present SO 2011-2 Plan Option, in conformity with the principles set by the combined general
shareholders’ meeting and aforesaid statutory provisions. 

  
 - 3/8 -

 III - DESCRIPTION OF THE PLAN 

The list of the 2011-2 Plan’s beneficiaries (hereinafter “Beneficiaries”) shall be approved by the Company’s Board of Directors.

 III-1. Issuing the Options 
 The Options are issued free of charge to each Beneficiary. 
 No person holding more than 10% of
Sequans Communications’ share capital shall be issued any Options. 
 The number of Options issued to each Beneficiary, as well as the
subscription price for the share to be issued pursuant to exercising an Option (as defined under section III-4 below) shall be indicated in the Individual Letter of Notification sent to him/her by the Chairman and which is deemed to be an exhibit of
this Plan. 
 Exercising an Option entitles the Beneficiary to subscribe for one new class A preferred share with a par value of EUR 0.01 (or
two (2) Options will allow the Beneficiary to subscribe for one (1) ordinary share with a par value of EUR 0.02, from the effective date of the conversion of A preferred shares in ordinary shares and reverse split of the Company shares)
(hereafter a “New Share”). 
 This number of shares cannot be modified during the Options’ 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 informing him/her that Options have been issued to
him/her, the Beneficiary undertakes to return to the Company: 
  

	 	(i)	a copy of this Plan, 

  

	 	(ii)	a copy of the Individual Letter of Notification, and 

  

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

being specified that all such copies shall be duly executed by the Beneficiary who acknowledges that the Individual Letter of Notification and the
“CONTRACTUAL UNDERTAKING” are part of these Plan. 
 Failure to comply with this formality within
the applicable period shall render the Options issued immediately and automatically void. 
 III-2. Features and period of validity of the
Options 
 Options are irrevocably granted for a period of 10 years as from the time they are issued by the Board of Directors.

 As a result of issuing the Options, the pre-emptive right of shareholders to subscribe for the new shares to be issued as said Options are
exercised will be eliminated in favour of the Beneficiaries. 
 Rights obtained as the result of the Options cannot be transferred until the
Options have been exercised. 
 Options must be exercised within the aforementioned maximum period of 10 years, any Option not exercised
before the expiry of such period shall automatically become null and void. 

  
 - 4/8 -

 Furthermore, the Beneficiary must comply with the following schedule: 

 

	 	•	 	 The Beneficiary may exercise 25% of the Options issued to him/her after the expiry of a period of 12 months following the effective date of the initial
public offering of the Company which shall occur no later than the day the Ordinary Shareholders’ meeting shall held to rule on the annual accounts of the Company as of 31 December 2011 (the “IPO”);

  

	 	•	 	 Thereafter, the Beneficiary may exercise the remainder of his/her Options at the rate of 1/36th per month for the period between the 13th and 48th month following the IPO. 

 Should the IPO not occur, all Options already granted shall become automatically null and void on the day after the Ordinary Shareholders’ meeting shall held to rule on the annual accounts of the
Company as of 31 December 2011. 
 In the event that a company ceases to be a subsidiary of Sequans Communications, all Options held by the
employees of such subsidiary, and that have not been exercised before such time, shall automatically and immediately become null and void. 

III-3. Cessation of the Beneficiary’s duties with Sequans Communications or one of its subsidiaries 

In the event that the Beneficiary’s duties with Sequans Communications or one of its subsidiaries, whether as an employee or company officer, cease
due to resignation, redundancy, dismissal, incapacity or death, regardless of the reason: 
  

	 	•	 	 Said Beneficiary shall lose all rights with regard to Options that are not yet exercisable on the date that his/her duties cease in accordance with the
schedule for exercising the Options set out in Article III-2. hereinabove. 

 However, the Beneficiary retains
the right to exercise Options that are exercisable and that have not yet been exercised, provided that the Beneficiary exercises his/her Options 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 have a period of 6 months to exercise the Options. 

After the expiry of the periods hereinabove, the Beneficiary, his/her heirs or beneficiaries lose all rights with regard to unexercised
Options. 
 III-4. Setting the subscription price for New Shares obtained by exercising the Options 

The subscription price for New Shares to be issued pursuant to an exercise of the Options is set at the fair market value as applicable at the date of
allocation of the Option, value to be set and approved by the Board of Directors of the Company, pursuant to objective methods applicable in the field of assessment of shares (including, as the case may be, the reference to the market price of
Company listed shares), and if required, with the assistance of independent experts. 

  
 - 5/8 -

 This price is mentioned in the Individual Notification Letter, price which may not be changed during the
Options’ period of validity, except in the event of adjustments in accordance with statutory and regulatory requirements. 
 III-5.
Maintaining the rights of Option holders during the exercise period 
 During the entire period of validity of the Options, the Company
shall be entitled to proceed with a capital write-off or reduction, a change to the appropriation of profits, a free allotment of shares, a capitalization of reserves, profits or share premiums, a distribution of reserves or any issue of capital
securities or securities giving entitlement to an allotment of capital securities conferring a subscription right reserved for shareholders, provided that the Company accordingly take the necessary measures to protect the interests of the
Beneficiaries in compliance with applicable legal and/or regulatory provisions. 
 IV - REQUIREMENTS AND PROCEDURES FOR
EXERCISING OPTIONS 
 IV-1. Suspension of the rights to exercise the Options 

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

In such case, Sequans Communications shall inform the Beneficiaries of the Options, indicating the date of the suspension and the date on which the right
to exercise Options will be re-established. Such suspension may not exceed 3 months. 
 If the right to exercise an Option expires during a
period in which rights are suspended, the period for exercising the Option shall be extended by 3 months. 
 IV-2. Conditions for
exercising Options 
 All requests for exercising Options, documented by the signature of a subscription certificate specific to the SO
2011-2 Plan, shall be sent to Sequans Communications, and shall be accompanied by a cheque made out to the Company’s order in an amount corresponding to the number of New Shares subscribed, considering that such shares must be fully paid up in
cash at the time of subscription, except the case of settlement of the subscription price by way of a set-off with a debt. 
 Failure to do so
renders the subscription null and void. 
 V - FEATURES OF SHARES SUBSCRIBED 

V-1. Delivery and form of shares 

New Shares acquired by exercising Options are registered in the books of Sequans Communications as registered shares, which meets the statutory
requirements for benefiting from the applicable favourable tax treatment. 

  
 - 6/8 -

 V-2. Rights - Availability 
 New Shares (class A preferred shares or ordinary shares, as the case may be), shall be subject to all provisions of the memorandum and articles of association and shall enjoy all rights pertaining to
shares of such class as from the date the increase in share capital is completed. 
 These New Shares shall be immediately transferable, in
compliance with the “CONTRACTUAL UNDERTAKING”, subject to the following exception : Beneficiaries residing in France are not entitled to assign any New Share issued further to the exercise
of an Option, before the end of a four (4) year-period from the issue of the given Option. 
 VI – TAX
PROVISIONS 
 VI-1. THE TAX PROVISIONS CURRENTLY
APPLICABLE (MARCH 2011) TO BENEFICIARIES WHO ARE EMPLOYEES OF SEQUANS COMMUNICATIONS
AND WHO ARE DOMICILED IN FRANCE ARE EXPLAINED BELOW. 
 1. A Beneficiary who has exercised Options and subscribed for New Shares of Sequans Communications receives a gain equal to the difference between the value of these shares on the date the Option
is exercised and the subscription price for such shares. 
 This gain is subject to favourable tax treatment provided that the shares are
issued as registered shares and that the sale of the shares obtained by exercising the Options occurs at least four (4) years after such Options are issued. 
 This gain, treated as a capital gain realised at the time of purchase, is subject to a 42,3% tax (i.e., 30% tax, plus 12,3% for the CSG1, CRDS2 and social security contributions) on the amount up to
EUR 152,500, and to a 53,3% tax (i.e., 41% tax, plus 12,3% for social security contributions) on the amount above EUR 152,500. These rates are reduced to 30,3% and 42,3% respectively if the Beneficiary holds these shares for an additional
period of two (2) years. 
 Failure to comply with these periods will subject these capital gains to the tax treatment
applicable to wages and salaries (Article 163 bis C of the French General Tax Code). As an exception to the foregoing, shares may be sold before the expiry of the four-year period in the event of: 

 

	•	 	 The dismissal of the Beneficiary 

  

	•	 	 The Beneficiary’s retirement 

  

	•	 	 Invalidity deemed to fall within the second and third categories provided in Article L.341-4 of the French Social Security Code

  

	•	 	 The Beneficiary’s death 

 2. Capital gains realised at the time of sale (i.e., the difference between the sale price of the share and the value of such share on the date the Option is exercised) are taxed from the first
Euro in accordance with the tax treatment of capital gains realised on the sale of securities (Articles 92 B, 92 J, 160, 200 A2 of the French General Tax Code). 
 The rate applicable is 31,3% (i.e., the proportional rate of 19%, plus 12,3% for the CSG, CRDS and social security contributions). 
 Note: In addition, in order to benefit from this specific tax treatment, the Beneficiary must attach to his/her income tax return for the year in which the Options are exercised a certificate that
will be provided to him/her by 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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 3. The tax information contained in this section VI-1 is likely to change in accordance with the
applicable statutory and regulatory provisions. Sequans Communications and its subsidiaries shall have no obligation to provide advice and/or assistance in this regard. 
 VI-2. TAX PROVISIONS APPLICABLE TO BENEFICIARIES DOMICILED ABROAD
AND/OR EMPLOYEES OF SEQUANS COMMUNICATIONS SUBSIDIARIES LOCATED ABROAD. 

Beneficiaries domiciled abroad and/or who are employees of a foreign subsidiary of Sequans Communications are solely responsible for: 

 

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

	 	•	 	 Paying all taxes and contributions due as a result. 

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

  
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