Document:

EX-10.1

 Exhibit 10.1 

COHERUS BIOSCIENCES, INC. 

STOCK PURCHASE AGREEMENT 

This Stock Purchase Agreement (“Agreement”) is made as of August 21, 2017 (the “Effective Date”), by
and among Coherus BioSciences, Inc., a Delaware corporation (the “Company”) and V-Sciences Investments Pte Ltd, a private limited Singapore company (the “Purchaser”).

 WHEREAS, the Company desires additional capital for the completion of development and registration of its
CHS-1701 biosimilar product candidate (“CHS-1701”), the launch of CHS-1701, the development and registration of
its CHS-1420 biosimilar product candidate and for general corporate purposes. 
 WHEREAS, the
Company is seeking United States Food and Drug Administration (“FDA”) marketing approval for its CHS-1701 biosimilar product candidate (the “Approval”). 

WHEREAS, the Purchaser desires to purchase, and the Company has agreed to sell, shares of the Company’s common stock, par value $0.0001
per share (the “Common Stock”) in an initial tranche of $75,000,000.00. 
 WHEREAS, Purchaser desires to invest an
aggregate amount of up to $150,000,000.00 total, Purchaser desires to conduct in good faith a financial evaluation to support the purchase of a subsequent tranche of $75,000,000.00 after the receipt of the Approval. 

AGREEMENT 
 In
consideration of the mutual covenants contained in this Agreement, and for other good and valuable consideration, the receipt of which is hereby acknowledged, the Company and the Purchaser hereby agree as follows: 

SECTION 1. AUTHORIZATION OF SALE OF SECURITIES. 

The Company has authorized the sale and issuance of shares of its Common Stock to the Purchaser on the terms and subject to the conditions set
forth in this Agreement. The shares of Common Stock that may be sold to the Purchaser hereunder at the at the Initial Closing and the Subsequent Closing (each as defined in SECTION 3) shall be referred to as the
“Shares.” 
 SECTION 2. AGREEMENT TO SELL AND PURCHASE THE SHARES. 

2.1 Initial Purchase.  

(a) At the Initial Closing, the Company will issue, sell and deliver to the Purchaser, and the Purchaser will purchase from the Company (the
“Initial Purchase”), that number of shares of Common Stock (the “Initial Shares”) equal to seventy-five million dollars ($75,000,000.00) divided by the Initial Purchase Price, round to the nearest share, where the
“Initial Purchase Price” shall be equal to the product of: 
  

	 	i.	(x) the volume weighted average price (“VWAP”) for the Common Stock based on the ten consecutive trading days ending on (an including) August 18, 2017 (the “10-Day VWAP”), (1) if the consolidated closing bid price for the Common Stock as of 4:00 p.m., New York City time on August 18, 2017, as reported by the Company’s representative at Nasdaq’s
Market Intelligence Desk (the “August 18 Price”), is lower than the 10-Day VWAP by less than 10% of the 10-Day VWAP or (2) the
August 18 Price is greater than the 10-Day VWAP by less than 10% of the 10-Day VWAP, and (y) otherwise, the average of the
10-Day VWAP and the August 18 Price (such amount, the “Pre-Discount Price”); and 

 

	 	ii.	(x) 0.96, (1) if the August 18 Price is lower than the 10-Day VWAP by less than 10% of the 10-Day VWAP or (2) the August 18
Price is greater than the 10-Day VWAP by less than 10% of the 10-Day VWAP, and (y) otherwise, 0.97. 

(b) For illustrative purposes only, if the 10-Day VWAP were $13.00 and the August 18 Price were
$14.00, the Pre-Discount price would have been $13.00 and the Initial Purchase Price would have been $12.48, if the 10-Day VWAP were $13.00 and the August 18 Price
were $15.00, the Pre-Discount price would have been $14.00 and the Initial Purchase Price would have been $13.58, and if the 10-Day VWAP were $13.00 and the
August 18 Price were $11.00, the Pre-Discount price would have been $12.00 and the Initial Purchase Price would have been $11.64. 

(c) Based on the actual August 18 Price and the actual 10-Day VWAP, the Initial Purchase Price is
$11.4397 and 6,556,116 shares will be sold in the Initial Purchase. 
 2.2 Subsequent Purchase. 

(a) If the Company receives the Approval, promptly following the Approval, the Purchaser shall use its commercially reasonable efforts to
commence financial due diligence and evaluation on the Company to support the purchase of a subsequent tranche of shares of the Company’s Common Stock within 60 days of the Approval (the “Subsequent Purchase”). The purchase
price per share for the Subsequent Purchase (the “Subsequent Purchase Price”) shall be determined based on a discount to a prevailing VWAP for the Company’s Common Stock as then quoted on the Trading Market for a number of days
prior to the Subsequent Closing (the “Subsequent Pre-Discount Price”), with the applicable discount to be negotiated in good faith based on prevailing market conditions, including but not
limited to the Subsequent Pre-Discount Price, and with the definitive Subsequent Purchase Price to be agreed upon in writing by the Company and the Purchaser in advance of the Subsequent Closing. The number of
shares of Common Stock purchased by the Company shall equal $75,000,000.00 divided by the Subsequent Purchase Price, round to the nearest share (such shares, the “Subsequent Shares”). 

  
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 (b) Purchaser shall have no obligations pursuant to Section 2.2(a), and
may suspend any commenced diligence, evaluation or negotiation efforts, if the Company (i) is in material breach of any of its representations and warranties in Section 4 or any of its covenants under
SECTION 7 and such breach has not been cured in all material respects, (ii) is in material breach of any of its representations, warranties or covenants contained in the Registration Rights Agreement and such breach
has not been cured in all material respects, or (iii) has experienced a Material Adverse Effect and such Material Adverse Effect is ongoing or remains uncured. Further, a binding obligation with respect to the Subsequent Purchase shall result
only upon the mutual agreement of the parties with respect to the Subsequent Purchase Price, in addition to satisfaction of the applicable conditions to the Subsequent Closing and the other terms and conditions of this Agreement. 

2.3 Definitions. For purposes of this Agreement, the following terms shall have the following meanings: 

(a) “Business Day” means a day, other than a Saturday or Sunday, on which banks in New York City and Singapore are open for
the general transaction of business. 
 (b) “Knowledge of the Company” shall mean, with respect to the Company, the
knowledge of any of Dennis M. Lanfear, Jean-Frédéric Viret, Ph.D., Barbara K. Finck, M.D., Alan C. Herman, Ph.D., Peter K. Walter, Ph.D and Matthew R. Hooper. Such individuals will be deemed to
have “knowledge” of a particular fact or other matter if (i) such individual has or at any time had actual knowledge of such fact or other matter or (ii) a prudent individual would be expected to discover or otherwise become
aware of such fact or other matter in the course of conducting a reasonably diligent review concerning the existence thereof. 
 (c)
“Governmental Entity” means any nation, federal, state, county municipal, local or foreign government, or other political subdivision thereof or any other governmental, administrative, judicial, arbitral, legislative, executive,
regulatory or self-regulatory authority, instrumentality, agency, commission or body and any entity exercising executive, legislative, judicial, regulatory, taxing or administrative functions of or pertaining to government. 

(d) “Law” means any federal, state, local or foreign law (including common law), statute, code, ordinance, rule, regulation,
order, judgment, writ, stipulation, award, injunction, decree, arbitration award or finding or any other legally enforceable requirement. 

(e) “Material Adverse Effect” means any change, event, development, condition, occurrence or effect that (a) is, or would
reasonably be expected to be, materially adverse to the business, financial condition, assets, liabilities or results of operations of the Company and its subsidiaries, taken as a whole, or (b) materially impairs the ability of the Company to
comply, or prevents the Company from complying, with its material obligations with respect to the Closings (defined below) or would reasonably be expected to do so; provided, however, that none of the following will be deemed in
themselves, either alone or in combination, to constitute, and that none of the following will be taken into account in determining whether there has been or will be, a Material Adverse Effect under subclause (a) of this definition: 

 

	 	i.	any change generally affecting the economy, financial markets or political, economic or regulatory conditions in the United States or any other geographic region in which the Company conducts business, to the extent the
Company and its subsidiaries are not disproportionately affected thereby; 

  
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	 	ii.	general financial, credit or capital market conditions, including interest rates or exchange rates, or any changes therein, to the extent the Company and its subsidiaries are not disproportionately affected thereby;

  

	 	iii.	any change that generally affects industries in which the Company and its subsidiaries conduct business, to the extent the Company and its subsidiaries are not disproportionately affected thereby; 

 

	 	iv.	changes in Laws after the date hereof, to the extent the Company and its subsidiaries are not disproportionately affected thereby; 

  

	 	v.	changes in GAAP after the date of this Agreement, to the extent the Company and its subsidiaries are not disproportionately affected thereby; 

 

	 	vi.	in and of itself, any failure by the Company to meet any published or internally prepared estimates of revenues, earnings or other economic performance for any period ending on or after the date of this Agreement (it
being understood that the facts and circumstances giving rise to such failure may be deemed to constitute, and may be taken into account in determining whether there has been, a Material Adverse Effect to the extent that such facts and circumstances
are not otherwise described in clauses (i)-(v) of the definition). 

 (f) “Person” means an individual,
corporation, partnership, limited liability company, trust, business trust, association, joint stock company, joint venture, sole proprietorship, unincorporated organization, governmental authority or any other form of entity not specifically listed
herein. 
 (g) “Registration Rights Agreement” means the Registration Rights Agreement in the form attached hereto as
Exhibit B. 
 (h) “Trading Market” means The NASDAQ Global Market. 

(i) “Transaction Agreements” means this Agreement and the Registration Rights Agreement. 

SECTION 3. CLOSING, CLOSING CONDITIONS AND CLOSING DELIVERIES. 

3.1 Initial Closing. The closing of the purchase and sale of the Initial Shares pursuant to this Agreement (the “Initial
Closing”) shall occur at 5:00 p.m., Pacific time, on August 24, 2017, subject to the satisfaction or waiver of all of conditions set forth in Section 3.2 and the delivery of all of the closing deliveries set forth on
Section 3.3 (such date the “Initial Closing Date”), at the offices of Latham & Watkins LLP, 140 Scott Drive, Menlo Park, California 94025, or at such other time and place as may be agreed to by the Company and
the Purchaser. At or prior to the Initial Closing, each of the Company and the Purchaser shall execute any related agreements or other documents required to be executed as of the Initial Closing hereunder, each dated as of the date of the Initial
Closing. 

  
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 3.2 Initial Closing Conditions. 

(a) Mutual Closing Conditions. The respective obligations of each party for the Initial Closing is subject to the fulfillment, on or
before the Initial Closing, of each of the following conditions, unless waived: 
  

	 	i.	There shall have been no Law enacted, entered, promulgated, enforced or deemed applicable by any Governmental Entity of competent jurisdiction that is in effect and makes illegal or otherwise prohibits or materially
delays the consummation of the Initial Closing. 

  

	 	ii.	The aggregate number of Initial Shares to be issued shall not equal or exceed 20.0% of either (a) the total number of shares of Common Stock outstanding on the date of the Initial Closing or (b) the total
voting power of the Company’s securities outstanding on the Initial Closing that are entitled to vote on a matter being voted on by holders of the Common Stock. 

 

	 	iii.	In accordance with the Trading Market interpretations and guidelines relating to obtaining stockholder approval upon a change of control, the Company shall not issue to the Purchaser an aggregate number of Initial
Shares such that the Purchaser would own, or have the right to acquire, 20.0% or more of the Company’s total number of shares of Common Stock outstanding or total voting power of the Company’s securities outstanding, upon the Initial
Closing, unless and until the Company obtains stockholder approval in connection with such issuance. 

 (b) Conditions to
Purchaser’s Obligations. Purchaser’s obligation to purchase the Initial Shares at the Initial Closing is subject to the fulfillment, on or before the Initial Closing, of each of the following conditions, unless waived:

  

	 	i.	The Company’s representations and warranties in SECTION 4 shall be true and correct in all material respects at the date of the Initial Closing, with the same force and effect as if they
had been made on and as of said date. 

  

	 	ii.	The Company shall have performed and complied with all agreements and conditions herein required to be performed or complied with by the Company on or before the Initial Closing, or any breach or failure to do so has
been cured. 

  
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 (c) Conditions to the Company’s Obligations. The Company’s
obligation to issue and sell the Initial Shares at the Initial Closing is subject to the fulfillment, on or before the Initial Closing, of each of the following conditions, unless waived: 

 

	 	i.	The Purchaser’s representations and warranties in SECTION 5 shall be true and correct in all material respects at the date of the Initial Closing, with the same force and effect as if they
had been made on and as of said date. 

  

	 	ii.	The Purchaser shall have performed and complied with all agreements and conditions herein required to be performed or complied with by such Purchaser on or before the Initial Closing, or any breach or failure to do so
has been cured. 

 3.3 Initial Closing Deliveries.  

(a) Payment of the Initial Purchase Price at Initial Closing. At the Initial Closing, the Purchaser shall deliver, or cause to be
delivered, to the Company, an amount equal to seventy-five million dollars ($75,000,000.00) by wire transfer of immediately available funds to an account set forth on Exhibit A under the heading “Company Wire Information”. 

(b) Issuance of the Initial Shares at the Initial Closing. At the Initial Closing, the Company shall issue or cause the Company’s
transfer agent to issue to the Purchaser the Initial Shares in global form through a restricted book-entry account maintained by the Company’s transfer agent registered in the name of V-Sciences
Investments Pte Ltd, representing the number of Initial Shares purchased by the Purchaser at the Initial Closing against payment of $75,000,000.00 (including providing a copy of the irrevocable instructions delivered by the Company to the
Company’s transfer agent instructing the transfer agent to issue the Initial Shares to the Purchaser by crediting the Initial Shares to an account of the Purchaser on the transfer agent’s restricted book-entry system on the date of the
Initial Closing and confirmation from the transfer agent that such Initial Shares were so issued on the date thereof). 
 (c) Registration
Rights Agreement. At the Initial Closing, each of the Company and the Purchaser shall execute and deliver to the other party the Registration Rights Agreement in the form attached hereto as Exhibit B. 

(d) Secretary’s Certificate. At the Initial Closing, the Purchaser shall have received a certificate signed by the Secretary of the
Company, certifying (i) the resolutions of the Board of Directors of the Company approving this Agreement and all of the transactions contemplated hereunder and (ii) if the approval of any Committee of the Board of Directors of the Company
is required to authorize this Agreement and all of the transactions contemplated hereunder, the appropriate resolutions of such Committee. 

(e) Compliance Certificate. At the Initial Closing, the Purchaser shall have received a certificate signed by the Chief Executive
Officer and Chief Financial Officer of the Company certifying to the fulfillment of the conditions set forth in Section 3.2(b). 

(f) Legal Opinion. At the Initial Closing, the Purchaser shall cause to be delivered to the Purchaser the legal opinion of
Latham & Watkins LLP in substantially the form of Exhibit C attached hereto. 

  
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 3.4 Subsequent Closing. The closing of the purchase and sale of the Subsequent Shares
pursuant to this Agreement (the “Subsequent Closing” and together with the Initial Closing, the “Closings”) shall occur at 5:00 p.m., Pacific time, on a date no later than sixty (60) calendar days after the
Company’s receipt of the Approval, subject to the satisfaction or waiver of all of conditions set forth in Section 3.5 and the delivery of all of the closing deliveries set forth on Section 3.6 (such date the
“Subsequent Closing Date”), at the offices of Latham & Watkins LLP, 140 Scott Drive, Menlo Park, California 94025, or at such other time or place as may be agreed to by the Company and the Purchaser. At or prior to the
Subsequent Closing, each of the Company and the Purchaser shall execute any related agreements or other documents required to be executed as of the Subsequent Closing hereunder, each dated as of the date of the Subsequent Closing. 

3.5 Subsequent Closing Conditions. 

(a) Mutual Closing Condition. The respective obligations of each party for the Subsequent Closing is subject to the fulfillment, on or
before the Subsequent Closing, of each of the following conditions, unless waived: 
  

	 	i.	The waiting period applicable to the Initial Closing under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 Act, if any, shall have expired or been terminated. 

 

	 	ii.	There shall have been no Law enacted, entered, promulgated, enforced or deemed applicable by any Governmental Entity of competent jurisdiction that is in effect and makes illegal or otherwise prohibits or materially
delays the consummation of the Subsequent Closing. 

  

	 	iii.	The aggregate number of Shares to be issued shall not equal or exceed 20.0% of either (a) the total number of shares of Common Stock outstanding on the date of the Subsequent Closing or (b) the total voting
power of the Company’s securities outstanding on the Subsequent Closing that are entitled to vote on a matter being voted on by holders of the Common Stock. 

  

	 	iv.	In accordance with the Trading Market interpretations and guidelines relating to obtaining stockholder approval upon a change of control, the Company shall not issue to the Purchaser an aggregate number of Shares such
that the Purchaser would own, or have the right to acquire, 20.0% or more of the Company’s total number of shares of Common Stock outstanding or total voting power of the Company’s securities outstanding, upon the Subsequent Closing,
unless and until the Company obtains stockholder approval in connection with such issuance. 

 (b) Conditions to
Purchaser’s Obligations. Purchaser’s obligation to purchase the Subsequent Shares at the Subsequent Closing is subject to the fulfillment, on or before the Subsequent Closing, of each of the following conditions, unless
waived: 
  

	 	i.	The Purchaser’s investment committee shall have approved the Subsequent Purchase; provided, for the avoidance of doubt, that the investment committee may decline to approve the Subsequent Purchase for any
reason in its sole discretion. 

  
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	 	ii.	The Company’s representations and warranties in SECTION 4 shall be true and correct in all material respects at the date of the Subsequent Closing, with the same force and effect as if
they had been made on and as of said date. 

  

	 	iii.	The Company shall have performed and complied with all agreements and conditions herein required to be performed or complied with by the Company on or before the Subsequent Closing, or any breach or failure to do so has
been cured. 

 (c) Conditions to the Company’s Obligations. The Company’s obligation to issue and sell the
Subsequent Shares at the Subsequent Closing is subject to the fulfillment, on or before the Subsequent Closing, of each of the following conditions, unless waived: 
  

	 	i.	The board of directors of the Company shall have determined that the Subsequent Purchase Price is reasonable based on then prevailing market conditions and that the Subsequent Purchase is in the best interest of the
Company and its stockholders; provided, for the avoidance of doubt, that the Company may decline to sell the Subsequent Shares for any reason in its sole discretion. 

 

	 	ii.	The Purchaser’s representations and warranties in SECTION 5 shall be true and correct in all material respects at the date of the Subsequent Closing, with the same force and effect as if
they had been made on and as of said date. 

  

	 	iii.	The Purchaser shall have performed and complied with all agreements and conditions herein required to be performed or complied with by such Purchaser on or before the Subsequent Closing, or any breach or failure to do
so has been cured. 

 3.6 Subsequent Closing Deliveries.  

(a) Payment of the Subsequent Purchase Price at Subsequent Closing. At the Subsequent Closing, the Purchaser shall deliver, or cause to
be delivered, to the Company, an amount equal to seventy-five million dollars ($75,000,000.00) by wire transfer of immediately available funds to an account set forth on Exhibit A under the heading “Company Wire Information”. 

(b) Issuance of the Subsequent Shares at the Subsequent Closing. At the Subsequent Closing, the Company shall issue or cause the
Company’s transfer agent to issue to the Purchaser the Subsequent Shares in global form through a restricted book-entry account maintained by the Company’s transfer agent registered in the name of
V-Sciences Investments Pte Ltd, representing the number of Subsequent Shares purchased by the Purchaser at the Subsequent Closing against payment of $75,000,000.00 (including providing a copy of the
irrevocable instructions delivered by the Company to the Company’s transfer agent instructing the transfer agent to issue the Subsequent Shares to the Purchaser by crediting the Subsequent Shares to an account of the Purchaser on the transfer
agent’s restricted book-entry system on the date of the Subsequent Closing and confirmation from the transfer agent that such Subsequent Shares were so issued on the date thereof). 

  
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 (c) Compliance Certificate. At the Subsequent Closing, the Purchaser shall have received a
certificate signed by the Chief Executive Officer and Chief Financial Officer of the Company certifying to the fulfillment of the conditions set forth in Section 3.5(b). 

(d) Legal Opinion. At the Subsequent Closing, the Purchaser shall cause to be delivered to the Purchaser the legal opinion of
Latham & Watkins LLP in substantially the form of Exhibit C attached hereto. 
 SECTION 4. REPRESENTATIONS, WARRANTIES AND COVENANTS OF
THE COMPANY. 
 Except as set forth on the Schedule of Exceptions delivered to the Purchaser concurrently with the execution of this
Agreement (the “Company Schedule of Exceptions”), or, with respect to the representations and warranties by the Company other than those set forth in Section 4.1, Section 4.2,
Section 4.3, the first two sentences of Section 4.4, Section 4.5, Section 4.6, Section 4.7, the first sentence of
Section 4.8, Section 4.8(ii), Section 4.10, Section 4.12, Section 4.14, Section 4.20,
Section 4.21, Section 4.22, Section 4.25 and Section 4.27 only, as disclosed in the SEC Documents and publicly available prior to the date of
this Agreement and only as and to the extent disclosed therein (but excluding any risk factor disclosures contained under the heading “Risk Factors,” any disclosure of risks included in any “forward-looking statements” disclaimer
or any other statements that are similarly forward-looking), the Company hereby represents, warrants and covenants to the Purchaser as follows: 

4.1 Organization and Standing. The Company and each of its subsidiaries has been duly incorporated or organized and is validly existing
and in good standing under the laws of its state or other jurisdiction of incorporation or organization, has full corporate or other power and authority necessary to own or lease its properties and conduct its business as presently conducted, and is
duly qualified as a foreign corporation and in good standing in all jurisdictions in which the character of the property owned or leased or the nature of the business transacted by it makes qualification necessary, except where the failure to be so
qualified would not have a material adverse effect on the business, properties, financial condition or results or operations of the Company and its subsidiaries, taken as a whole (a “Company Material Adverse Effect”). 

4.2 Corporate Power; Authorization. The Company has all requisite corporate power, and the Company and its board of directors have taken
all requisite corporate action, to authorize, execute and deliver the Transaction Agreements, to consummate the transactions contemplated herein and therein, including to sell, issue and deliver the Shares to the Purchaser, and to carry out and
perform all of the Company’s obligations hereunder and thereunder. This Agreement constitutes the legal, valid and binding obligation of the Company, enforceable against the Company in accordance with its terms, except (i) as limited by
applicable bankruptcy, insolvency, reorganization, moratorium or similar laws relating to or affecting the enforcement of creditors’ rights generally and (ii) as limited by equitable principles generally, including any specific
performance. 

  
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 4.3 Issuance and Delivery of the Shares. The Shares have been duly authorized and, when
issued and paid for in compliance with the provisions of this Agreement, will be validly issued, fully paid and nonassessable. The issuance and delivery of the Shares is not subject to preemptive, co-sale,
right of first refusal or any other similar rights of the stockholders of the Company or any other Person or any liens or encumbrances. Assuming the accuracy of the representations made by the Purchaser in Section 5, the offer and
issuance by the Company of the Shares is exempt from registration under the Securities Act of 1933, as amended (the “Securities Act”). 

4.4 SEC Documents; Financial Statements. The Company has filed in a timely manner all documents that the Company was required to file
with the Securities and Exchange Commission (the “Commission”) under Sections 13, 14(a) and 15(d) the Securities Exchange Act of 1934, as amended (the “Exchange Act”), since becoming subject to the requirements of
the Exchange Act (the foregoing documents (together with any documents filed by the Company under the Exchange Act, whether or not required) being collectively referred to herein as the “SEC Documents”). As of their respective
filing dates (or, if amended prior to the date of this Agreement, when amended), all SEC Documents complied in all material respects with the requirements of the Exchange Act and the rules and regulations of the Commission promulgated thereunder.
None of the SEC Documents as of their respective filing dates contained any untrue statement of material fact or omitted to state a material fact required to be stated therein or necessary to make the statements made therein, in light of the
circumstances under which they were made, not misleading. The financial statements of the Company and its subsidiaries, on a consolidated basis, set forth in the SEC Documents (the “Financial Statements”) comply as to form in all
material respects with applicable accounting requirements and with the published rules and regulations of the Commission with respect thereto. The Financial Statements have been prepared in accordance with United States generally accepted accounting
principles consistently applied and fairly present the financial position of the Company and its subsidiaries at the dates thereof and the results of its operations and cash flows for the periods then ended (subject, in the case of unaudited
statements, to normal, recurring adjustments). 

  
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 4.5 Capitalization. All of the Company’s outstanding shares of capital stock have
been duly authorized and validly issued and are fully paid and nonassessable, have been issued in compliance with all federal and state securities laws, and were not issued in violation of or subject to any preemptive right or other rights to
subscribe for or purchase securities. The authorized capital stock of the Company consists of 300,000,000 shares of Common Stock and 5,000,000 shares of undesignated Preferred Stock. As of August 18, 2017, there are no shares of Preferred Stock
issued and outstanding and there are 51,359,187 shares of Common Stock issued and outstanding, of which no shares are owned by the Company. There are no other shares of any other class or series of capital stock of the Company issued or outstanding.
The Company has no capital stock reserved for issuance, except that, as of August 18, 2017, there are 3,747,162, 7,449,812, 0 and 701,500 shares of Common Stock reserved for issuance pursuant to options and restricted stock units
outstanding on such date pursuant to the Company’s 2010 Stock Incentive Plan (as amended to date, the “2010 Plan”), the Company’s 2014 Equity Incentive Plan (as amended to date, the “2014 Plan”), the
Company’s 2014 Employee Stock Purchase Plan (as amended to date, the “ESPP”) and the Company’s 2016 Employment Commencement Incentive Plan (as amended to date, the “Inducement Plan”), respectively. As of
August 18, 2017, there are no shares of Common Stock available for future issuance under the 2010 Plan, 224,682 shares of Common Stock available for future issuance under the 2014 Plan, 1,500,715 shares of Common Stock available for future
issuance under the ESPP, and 292,500 shares of Common Stock available for future issuance under the Inducement Plan. As of August 18, 2017, there are 4,473,871 shares of Common Stock issuable upon conversion of the Company’s
$100.0 million aggregate principal amount of senior convertible notes (the “Convertible Notes”). With the exception of the Convertible Notes, there are no bonds, debentures, notes or other indebtedness having general voting
rights (or convertible into securities having such rights) (“Voting Debt”) of the Company issued and outstanding. Except as stated above, there are no existing options, warrants, calls, subscriptions or other rights, agreements,
arrangements or commitments of any character, relating to the issued or unissued capital stock of the Company, obligating the Company to issue, transfer, sell, redeem, purchase, repurchase or otherwise acquire or cause to be issued, transferred,
sold, redeemed, purchased, repurchased or otherwise acquired any capital stock or Voting Debt of, or other equity interest in, the Company or securities or rights convertible into or exchangeable for such shares or equity interests or obligations of
the Company to grant, extend or enter into any such option, warrant, call, subscription or other right, agreement, arrangement or commitment. Neither the execution of this Agreement nor the issuance of Common Stock or other securities pursuant
to any provision of this Agreement will give rise to any preemptive rights or rights of first refusal on behalf of any Person or result in the triggering of any anti-dilution or other similar rights. Except as disclosed in the SEC Documents, there
are no agreements or arrangements under which the Company or any of its subsidiaries is obligated to register the sale of any of their securities under the Securities Act. The Company has made available upon request of the Purchaser, a true, correct
and complete copy of the Certificate of Incorporation and Bylaws (each as defined in Section 4.8) and the Company shall not amend or otherwise modify the Certificate of Incorporation or Bylaws prior to the Initial Closing.

 4.6 Litigation. There are no legal or governmental actions, suits or other proceedings pending or, to the Knowledge of the Company,
threatened against the Company or any of its subsidiaries before or by any court, regulatory body or administrative agency or any other governmental agency or body, domestic or foreign, which actions, suits or proceedings, individually or in the
aggregate, could reasonably be expected to (a) challenge this Agreement or prohibit or delay the transactions contemplated herein or (b) have a Company Material Adverse Effect. Neither the Company nor any of its subsidiaries is a party to
or subject to the provisions of any injunction, judgment, decree or order of any court, regulatory body, administrative agency or other governmental agency or body that might have a Company Material Adverse Effect. 

4.7 Governmental Consents. No consent, approval, order or authorization of, or registration, qualification, designation, declaration or
filing with, any federal, state, or local governmental authority or the Trading Market on the part of the Company is required in connection with the consummation of the transactions contemplated by this Agreement except for the filing of a Form D
with the Commission under the Securities Act and compliance with the securities and blue sky laws in the states and other jurisdictions in which shares of Common Stock are offered and/or sold, which compliance will be effected by the Company in
accordance with such laws.  

  
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 4.8 No Default or Consents. Neither the Company nor any of its subsidiaries is in material
violation or default under its organizational documents. Neither the execution, delivery or performance of this Agreement by the Company nor the consummation of any of the transactions contemplated hereby (including the issuance, sale and delivery
by the Company of the Shares) will: (i) give rise to a right to terminate or accelerate the due date of any payment due under, or conflict with or result in the breach of any term or provision of, or constitute a default (or an event which with
notice or lapse of time or both would constitute a default) under, or require any consent or waiver under, or result in the execution or imposition of any lien, charge or encumbrance upon any properties or assets of the Company or any of its
subsidiaries pursuant to the terms of, any indenture, mortgage, deed of trust or other agreement or instrument to which the Company or any of its subsidiaries is a party or by which the Company, any of its subsidiaries or any of their respective
properties or businesses is bound, or any franchise, license, permit, judgment, decree, order, statute, rule or regulation (including federal and state securities laws and regulations) and the rules and regulations, assuming the correctness of the
representations and warranties made by the Purchaser herein, of any self-regulatory organization to which the Company, any of its subsidiaries or their respective securities are subject) applicable to the Company or any of its subsidiaries, or
(ii) violate or conflict with any provision of the Company’s Certificate of Incorporation, as amended and as in effect on the date hereof (the “Certificate of Incorporation”) or the Company’s Bylaws, as amended and as
in effect on the date hereof (the “Bylaws”), except in the case of clause (i) as would not cause, either individually or in the aggregate, a Company Material Adverse Effect, and except for such consents or waivers which have
already been obtained and are in full force and effect.
 4.9 No Material Adverse Change. Since December 31, 2016, except as
specifically disclosed in the SEC Reports, there have been no events, occurrences or developments that have had or would reasonably be expected to have, either individually or in the aggregate, a Company Material Adverse Effect. Except for the
transactions contemplated by this Agreement and the License Agreement, no event, liability or development has occurred or exists with respect to the Company, its subsidiaries or their respective businesses, properties, operations or financial
conditions that would be required to be disclosed by the Company under applicable securities laws at the Effective Date that has not been publicly disclosed at least one Trading Market trading day prior to the Effective Date. 

4.10 No General Solicitation. Neither the Company, nor any of its affiliates, nor any Person acting on its or their behalf, has engaged
in any form of general solicitation or general advertising (within the meaning of Regulation D promulgated under the Securities Act) in connection with the offer or sale of the Shares.  

4.11 No Integrated Offering. None of the Company or any of its affiliates, or any Person acting on their behalf has, directly or
indirectly, made any offers or sales of any security or solicited any offers to buy any security, under circumstances that would require registration of any of the Shares under the Securities Act or cause this offering of the Shares to be integrated
with prior offerings by the Company for purposes of the Securities Act or any applicable stockholder approval provisions, including under the rules and regulations of the Trading Market. 

  
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 4.12 Sarbanes-Oxley Act. To the Knowledge of the Company, the Company is in material
compliance with the requirements of the Sarbanes-Oxley Act of 2002 that are effective and applicable to the Company as of the date hereof, and the rules and regulations promulgated by the Commission thereunder that are effective and applicable to
the Company as of the date hereof. 
 4.13 Intellectual Property. To the Knowledge of the Company, the Company or one of its
subsidiaries collectively own, possess, license or have rights to use, on terms that the Company believes to be reasonable, all patents, patent applications, trademarks, trademark applications, service marks, trade names, copyrights, licenses, trade
secrets, know-how and other similar rights that are necessary or material for use in connection with their business as described in the SEC Documents (collectively, the “Intellectual Property
Rights”). Neither the Company nor any of its subsidiaries has received a written notice that the Intellectual Property Rights used by the Company or any of its subsidiaries violates or infringes upon the rights of any Person. To
the Knowledge of the Company, all such Intellectual Property Rights are enforceable and there is no existing infringement by another Person of any of the Intellectual Property Rights. The Company and its subsidiaries collectively have taken
reasonably security measures to protect the secrecy and confidentiality of the Intellectual Property Rights (excluding any patents or patent applications that have or will become public), except where the failure to do so would not, individually or
in the aggregate, have a Company Material Adverse Effect. 
 4.14 Listing and Maintenance Requirements. The Company has not, in the
two years preceding the date hereof, received notice from the Trading Market to the effect that the Company is not in compliance with the listing or maintenance requirements thereof. The Company is in compliance with the listing and maintenance
requirements for continued listing of the Common Stock. The Company has no reason to believe that it will not for the foreseeable future continue to be in compliance with the listing and maintenance requirements for the continued listing of the
Common Stock on the Trading Market. The issuance and sale of the Shares under this Agreement does not contravene the rules and regulations of the Trading Market and no approval of the stockholders of the Company thereunder is required for the
Company to issue and deliver to the Purchaser the Shares. 
 4.15 Disclosure. The Company understands and confirms that the Purchaser
will rely on the representations, warranties and covenants set forth in this Section 4 in effecting the transactions contemplated by this Agreement. To the Knowledge of the Company, all due diligence materials
regarding the Company and its business and the transactions contemplated hereby, furnished by or on behalf of the Company to the Purchaser upon its request are, when taken together with the SEC Documents, true and correct in all material respects
and do not contain any untrue statement of material fact or omit to state a material fact necessary in order to make the statements made therein, in light of the circumstances in which they were made, misleading. 

4.16 Contracts. 
 (a) Each
indenture, contract, lease, mortgage, deed of trust, note agreement, loan or other agreement or instrument of a character that is required to be described or summarized in the SEC Documents or to be filed as an exhibit to the SEC Documents under the
Exchange Act and the rules and regulations promulgated thereunder (collectively, the “Material Contracts”) is so described, summarized or filed. 

  
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 (b) The Material Contracts to which the Company or any of its subsidiaries is a party have been
duly and validly authorized, executed and delivered by the Company and constitute the legal, valid and binding agreements of the Company or its subsidiaries, as applicable, enforceable by and against the Company or its subsidiaries, as applicable,
in accordance with their respective terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization or other similar laws relating to enforcement of creditors’ rights generally, and general equitable
principles relating to the availability of remedies, except as rights to indemnity or contribution may be limited by federal or state securities laws. 

4.17 Properties and Assets. The Company or one of its subsidiaries has good and marketable title to all the properties and assets
described as owned by it in the latest Financial Statements set forth in the SEC Documents, free and clear of all liens, mortgages, pledges or encumbrances of any kind except (a) those, if any, reflected in such Financial Statements or
(b) those that are not material in amount and do not adversely affect the use made and proposed to be made of such property by the Company and its subsidiaries. The Company and each of its subsidiaries holds its leased properties under valid
and binding leases. The Company and each of its subsidiaries owns or leases all such properties as are necessary to its operations as now conducted. 

4.18 Compliance. Neither the Company nor any of its subsidiaries has been advised, nor does the Company or any of its subsidiaries have
any reason to believe, that it is not conducting its business in compliance with all applicable laws, rules and regulations of the jurisdictions in which it is conducting business, including all applicable local, state and federal environmental laws
and regulations, and all applicable rules and regulations of the Food and Drug Administration (the “FDA”), and all applicable laws, statutes, ordinances, rule or regulations (including the Federal Food, Drug And Cosmetic Act of
1938, as amended, and similar foreign laws and regulations) enforced by the FDA or equivalent foreign authorities, except where failure to be so in compliance would not have a Company Material Adverse Effect. 

4.19 Taxes. The Company and each of its subsidiaries has filed on a timely basis (giving effect to extensions) all required federal,
state and foreign income and franchise tax returns and has timely paid or accrued all taxes shown as due thereon, including interest and penalties, and to the Knowledge of the Company there is no tax deficiency that has been or might be asserted or
threatened against it or any of its subsidiaries that could have a Company Material Adverse Effect. All tax liabilities accrued through the date hereof have been adequately provided for on the books of the Company and its subsidiaries. 

4.20 Investment Company. Neither the Company nor any of its subsidiaries is an “investment company” or an “affiliated
person” of, or “promoter” or “principal underwriter” for an investment company, within the meaning of the Investment Company Act of 1940, as amended, and the rules and regulations of the Commission promulgated thereunder.

  
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 4.21 Insurance. The Company maintains insurance underwritten by insurers of recognized
financial responsibility, of the types and in the amounts that the Company reasonably believes is adequate for businesses, including directors’ and officers’ liability insurance and insurance covering all real and personal property owned
or leased by the Company or any of its subsidiaries against theft, damage, destruction, acts of vandalism and all other risks customarily insured against, with such deductibles as are customary for companies in the same or similar business, all of
which insurance is in full force and effect. 
 4.22 Price of Common Stock. The Company has not taken, and will not take, directly or
indirectly, any action designed to cause or result in, or that has constituted or that might reasonably be expected to constitute, the stabilization or manipulation of the price of the shares of the Common Stock to facilitate the sale or resale of
the Shares. 
 4.23 Governmental Permits, Etc. The Company and each of its subsidiaries has all franchises, licenses, permits,
certificates and other authorizations from such federal, state or local government or governmental agency, department or body that are currently necessary for the operation of the business of the Company or such subsidiary, as applicable, as
currently conducted, except where the failure to possess currently such franchises, licenses, permits, certificates and other authorizations is not reasonably expected to have a Company Material Adverse Effect. Neither the Company nor any of its
subsidiaries has received any written notice regarding any revocation or material modification of any such franchise, license, permit, certificate or other authorization. 

4.24 Internal Control over Financial Reporting. The Company maintains internal control over financial reporting (as such term is defined
in paragraph (f) of Rule 13a-15 under the Exchange Act) as required by Rule 13a-15 under the Exchange Act. To the Knowledge of the Company, since the end of the
Company’s most recent audited fiscal year, there has been no material weakness in the design or operation of the Company’s internal control over financial reporting (whether or not remediated) which are reasonably likely to adversely
affect the Company’s ability to record, process, summarize and report financial information. 
 4.25 Foreign Corrupt Practices.
None of the Company, its subsidiaries or, to the Knowledge of the Company, any director, officer, agent, employee or other Person acting on behalf of the Company or any of its subsidiaries has, in the course of its actions for, or on behalf of, the
Company or any of its subsidiaries (a) used any corporate funds for any unlawful contribution, gift, entertainment or other unlawful expenses relating to political activity; (b) made any direct or indirect unlawful payment to any foreign
or domestic government official or employee from corporate funds; (c) violated or is in violation of any provision of the U.S. Foreign Corrupt Practices Act of 1977, as amended; or (d) made any unlawful bribe, rebate, payoff, influence
payment, kickback or other unlawful payment to any foreign or domestic government official or employee. 
 4.26 Employee Relations.
The Company believes that its relations with its employees are good. No executive officer of the Company (as defined in Rule 501(f) promulgated under the Securities Act) has notified the Company that such officer intends to leave the Company or
otherwise terminate such officer’s employment with the Company. To the Knowledge of the Company, no executive officer of the Company is, or is now expected to be, in violation of any material term of any employment contract, confidentiality,
disclosure or proprietary information agreement, non-competition agreement, or any other agreement or any restrictive covenant involving or otherwise affecting such executive officer’s relationship with
the Company, and the continued employment of each such executive officer does not subject the Company to any material liability with respect to any of the foregoing matters. 

  
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 4.27 ERISA. The Company and each of its subsidiaries is in compliance in all material
respects with all presently applicable provisions of the Employee Retirement Income Security Act of 1974, as amended, including the regulations and published interpretations thereunder (herein called “ERISA”); no “reportable
event” (as defined in ERISA) has occurred with respect to any “pension plan” (as defined in ERISA) for which the Company or any of its subsidiaries would have any material liability; neither the Company nor any of its subsidiaries has
incurred or expects to incur material liability under (a) Title IV of ERISA with respect to termination of, or withdrawal from, any “pension plan” or (b) Sections 412 or 4971 of the Internal Revenue Code of 1986, as amended,
including the regulations and published interpretations thereunder (the “Code”); and each “Pension Plan” for which the Company or any of its subsidiaries would have liability that is intended to be qualified under
Section 401(a) of the Code is so qualified in all material respects and to the Knowledge of the Company, nothing has occurred, whether by action or by failure to act, which would cause the loss of such qualification. 

4.28 No “Bad Actor” Disqualification. No “bad actor” disqualifying event described in Rule 506(d)(1)(i)-(viii) of
the Securities Act (a “Disqualification Event”) is applicable to the Company or, to the Knowledge of the Company, any Company Covered Person (as defined below), except for a Disqualification Event to which Rule 506(d)(2)(ii-iv) or (d)(3) is applicable. “Company Covered Person” means, with respect to the Company as an “issuer” for purposes of Rule 506 promulgated under the Securities Act, any
person listed in the first paragraph of Rule 506(d)(1). 
 SECTION 5. REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE PURCHASER. 

5.1 Except as set forth on the Schedule of Exceptions delivered to the Company concurrently with the execution of this Agreement (the
“Purchaser Schedule of Exceptions”), the Purchaser represents and warrants to and covenants with the Company that: 
 (a)
The Purchaser, taking into account the personnel and resources it can practically bring to bear on the purchase of the Shares contemplated hereby, is knowledgeable, sophisticated and experienced in making, and is qualified to make, decisions with
respect to investments in securities presenting an investment decision like that involved in the purchase of the Shares, including investments in securities issued by the Company, and has requested, received, reviewed and considered all information
the Purchaser knows about and deems relevant (including the SEC Documents) in making an informed decision to purchase the Shares. 
 (b) The
Purchaser is acquiring the Shares pursuant to this Agreement for its own account for investment only and with no present intention of distributing any of such Shares or any arrangement or understanding with any other Persons regarding the
distribution of such Shares, except in compliance with Section 5.1(c). 

  
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 (c) The Purchaser will not, directly or indirectly, offer, sell, pledge, transfer or otherwise
dispose of (or solicit any offers to buy, purchase or otherwise acquire or take a pledge of) any of the securities purchased hereunder except in compliance with the Securities Act, applicable blue sky laws, and the rules and regulations promulgated
thereunder. 
 (d) The Purchaser is an “accredited investor” within the meaning of Rule 501 of Regulation D promulgated under the
Securities Act or a Qualified Institutional Buyer within the meaning of Rule 144A promulgated under the Securities Act. 
 (e) The Purchaser
has all requisite corporate power, and has taken all requisite corporate action, to authorize, execute and deliver this Agreement and each of the other agreements and instruments contemplated herein to which the Purchaser is a party, to consummate
the transactions contemplated herein and therein and to carry out and perform all of the Purchaser’s obligations hereunder and thereunder. Upon the execution and delivery of this Agreement, this Agreement shall constitute a valid and binding
obligation of the Purchaser, enforceable in accordance with its terms, except (i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws relating to or affecting the enforcement of creditors’ rights
generally and (ii) as limited by equitable principles generally, including any specific performance. 
 (f) The Purchaser is not a
broker or dealer registered pursuant to Section 15 of the Exchange Act (a “registered broker dealer”) and is not an affiliate of a registered broker dealer. The Purchaser is not party to any agreement for distribution of any of
the Shares. 
 (g) As the Purchaser is not a United States person (as defined by Section 7701(a)(30) of the Code), the Purchaser hereby
represents that it has satisfied itself as to the full observance of the laws of its jurisdiction in connection with any invitation to subscribe for the Shares or any use of this Agreement, including (a) the legal requirements within its
jurisdiction for the purchase of the Securities, (b) any foreign exchange restrictions applicable to such purchase, (c) any government or other consents that may need to be obtained and (d) the income tax and other tax consequences,
if any, that may be relevant to the purchase, holding, redemption, sale or transfer of the Shares. The Purchaser’s subscription and payment for and continued beneficial ownership of the Shares will not violate any applicable securities or other
laws of the Purchaser’s jurisdiction. 
 (h) The Purchaser is not a U.S. Person as defined in Rule 902(k) of Regulation S under
the Act. The offer and sale of the Shares to the Purchaser was made in an offshore transaction (as defined in Rule 902(h) of Regulation S), no directed selling efforts (as defined in Rule 902(c) of Regulation S) were made in the United States, and
the Purchaser is not acquiring the Securities for the account or benefit of any U.S. Person. 
 (i) The Purchaser will not, during the
Restricted Period applicable to the Shares set forth in the legend set forth below in Exhibit D (the “Restricted Period”) and to any certificate representing the Securities, offer or sell any of the foregoing securities (or
create or maintain any derivative position equivalent thereto) in the United States, to or for the account or benefit of a U.S. Person or other than in accordance with Regulation S; and 

  
 17 

 (j) The Purchaser will, after the expiration of the applicable Restricted Period, offer, sell,
pledge or otherwise transfer the Securities (or create or maintain any derivative position equivalent thereto) only pursuant to registration under the Act or any available exemption therefrom and, in any case, in accordance with applicable state
securities laws. 
 5.2 The Purchaser has not, either directly or indirectly through an affiliate, agent or representative of the Company,
engaged in any transaction in the securities of the Company other than with respect to the transactions contemplated herein, since the time that the Purchaser was first contacted by the Company or any other Person regarding the transactions
contemplated hereby until the date hereof, except as set forth in filings made with the Commission pursuant to the Exchange Act. 
 5.3 The
Purchaser understands that nothing in this Agreement or any other materials presented to the Purchaser in connection with the purchase and sale of the Shares constitutes legal, tax or investment advice. The Purchaser has consulted such legal, tax
and investment advisors as it, in its sole discretion, has deemed necessary or appropriate in connection with its purchase of the Shares. 

5.4 Legends. Purchaser understands that, until such time as the Shares have been registered for resale under the Securities Act, sold
pursuant to the Registration Statement or the Shares may be sold pursuant to Rule 144 without any restriction as to the number of securities as of a particular date that can then be immediately sold, any certificates representing the Shares, whether
maintained in a book entry system or otherwise, may bear one or more legends in substantially the following form and substance: 
 “THE
SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY OTHER APPLICABLE SECURITIES LAWS AND HAVE BEEN ISSUED IN RELIANCE UPON AN EXEMPTION FROM THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND SUCH OTHER SECURITIES LAWS. NEITHER THIS SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED, HYPOTHECATED OR OTHERWISE DISPOSED OF,
EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO A TRANSACTION WHICH IS EXEMPT FROM, OR NOT SUBJECT TO, SUCH REGISTRATION, IN EACH CASE IN ACCORDANCE WITH ALL APPLICABLE SECURITIES LAWS, AND, IN THE CASE
OF A TRANSACTION EXEMPT FROM, OR NOT SUBJECT TO, SUCH REGISTRATION, THE HOLDER WILL NOTIFY ANY SUBSEQUENT PURCHASER OF THE SECURITIES EVIDENCED BY THIS CERTIFICATE FROM IT OF SUCH RESALE RESTRICTIONS.” 

  
 18 

 In addition any stock certificates, whether maintained in a book entry system or otherwise,
representing the Shares may contain: 
 (a) Any legend required by the blue sky laws of any state to the extent such laws are applicable to
the sale of such Shares hereunder; and 
 (b) A legend regarding certain Regulation S related restrictions set forth in Exhibit D
hereto, in the form included therein. 
 (c) A legend regarding affiliate status of the Purchaser set forth in Exhibit E hereto, in
the form included therein. 
 5.5 Restricted Securities. The Purchaser understands that the Shares are characterized as
“restricted securities” under the federal securities laws inasmuch as they are being acquired from the Company in a transaction not involving a public offering and that under such laws and applicable regulations such Shares may be resold
without registration under the Securities Act only in certain limited circumstances. In this connection, the Purchaser represents that it is familiar with Commission Rule 144, as presently in effect, and understands the resale limitations imposed
thereby and by the Securities Act. 
 SECTION 6. BROKER’S FEE. 

Each of the Company and the Purchaser hereby represents that there are no brokers or finders retained by, or otherwise acting on behalf of, it
or any of its affiliates and entitled to compensation in connection with the sale of the Shares, and shall indemnify the other party hereto for any such compensation that the other party hereto actually pays to any such broker or finder. 

SECTION 7. COVENANTS. 
 7.1 Use of
Proceeds. The Company agrees that proceeds from the sale of the Shares pursuant to this Agreement shall be used for completion of development and registration of CHS-1701, the launch of CHS-1701, the development and registration of the Company’s CHS-1420 biosimilar product candidate, the development and registration of the Company’s CHS-3351 biosimilar product candidate and for general corporate purposes. The Company shall not use proceeds of the offering to pay any dividend or make any distribution of any kind on the Company’s capital
stock, or purchase, redeem or otherwise acquire, directly or indirectly, any shares of the Company’s capital stock, any options or other rights to acquire shares of capital stock of the Company, except for the repurchase of such securities from
former employees of or consultants to the Company at the original issue price paid therefor pursuant to contractual rights of the Company upon the termination of such employees’ or consultants’ employment by or provision of service to the
Company. 
 7.2 Form D; Blue Sky Filings. The Company agrees to file a Form D with respect to the Shares as required under Regulation
D of the Securities Act. The Company will take such action as the Company shall reasonably determine is necessary in order to obtain an exemption from, or to qualify the Shares for, sale to the Purchaser at each of the Closings respectively pursuant
to this Agreement under applicable securities of “Blue Sky” laws of the states of the United States, and shall provide evidence of such actions promptly upon the written request of the Purchaser. 

  
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 7.3 NASDAQ. The Company will notify the Trading Market of the proposed listing of the
Shares contemplated hereby. As soon as reasonably practicable following each of the Closings respectively the Company will take all actions necessary to ensure to the Shares are listed on the Trading Market. 

7.4 Lock-up. Purchaser agrees to abide by the terms of the
Lock-up set forth in Exhibit F for a period of (a) six months beginning on the Initial Closing Date (the “Initial Period”) and (b) six months beginning on the Subsequent
Closing Date (the “Subsequent Period” and, together with the “Initial Period”, the “Lock-up Period”); provided that such obligation shall be suspended
where the Company: 
 (a) is in material breach of any of its representations and warranties in Section 4 or any of
its covenants under this SECTION 7 and such breach has not been cured in all material respects; 
 (b) is in
material breach of any of its representations, warranties or covenants contained in the Registration Rights Agreement and such breach has not been cured in all material respects; 

(c) has experienced a Material Adverse Effect and such Material Adverse Effect is ongoing or remains uncured; or 

(d) has issued equity securities in another financing transaction where the purchasers of such securities (excluding, for the avoidance of
doubt, any underwriters, sales agents, brokers or similar intermediaries not the ultimate principals to such transaction) are not subject to a Lock-up with materially comparable terms to the Lock-up set forth in Exhibit F. 
 7.5 Transfer Taxes. 

(a) On the date of the Initial Closing, all stock transfer or other taxes (other than income taxes) that are required to be paid in connection
with the issuance, sale and delivery of the Initial Shares to the Purchaser hereunder will be fully paid or provided for by the Company and all laws imposing such taxes will have been fully complied with and the Purchaser and its affiliates shall
have no obligation therefor. 
 (b) On the date of the Subsequent Closing, all stock transfer or other taxes (other than income taxes) that
are required to be paid in connection with the issuance, sale and delivery of the Subsequent Shares to the Purchaser hereunder will be fully paid or provided for by the Company and all laws imposing such taxes will have been fully complied with and
the Purchaser and its affiliates shall have no obligation therefor. 
 SECTION 8. NOTICES. 

All notices, requests, consents and other communications hereunder shall be in writing, shall be sent by confirmed facsimile or electronic
mail, or mailed by first-class registered or certified airmail, or nationally recognized overnight express courier, postage prepaid, and shall be deemed given when so sent in the case of facsimile or electronic mail transmission, or when so received
in the case of mail or courier, and addressed as follows: 

  
 20 

 (a) if to the Company, to: 

Coherus Biosciences, Inc. 

333 Twin Dolphin Drive, Suite 600 

Redwood City, CA, USA 94065 

Attn: ############# ##### 

Email: ############### 

with a copy to (which shall not constitute notice): 

Latham & Watkins LLP 

140 Scott Drive 

Menlo Park, California 94025 

Attn: Alan C. Mendelson, Esq. 

Fax: (650) 463-2600 

Email: alan.mendelson@lw.com 

or to such other Person at such other place as the Company shall designate to the Purchaser in writing; and 

(b) if to the Purchaser, to: 

V-Sciences Investments Pte Ltd 

60B Orchard Road #06-18 

Tower 2, The Atrium@Orchard 

Singapore 238891 

Attention: #### #### 

Email: ############### 

with a copy to (which shall not constitute notice): 

Morrison & Foerster LLP 

San Francisco, California 94105 

Attn: Alfredo B. D. Silva, Esq. 

          John M. Rafferty, Esq. 

Fax: (415) 268-7522 

Email: asilva@mofo.com 

            jrafferty@mofo.com 

or to such other Person at such other place as the Purchaser shall designate to the Company in writing. 

SECTION 9. MISCELLANEOUS.  

9.1 Waivers and Amendments. Neither this Agreement nor any provision hereof may be changed, waived, discharged, terminated, modified or
amended except upon the written consent of the Company and the Purchaser, in the case of any change, discharge, termination, modification, or of the party hereto against whom the waiver is to be effective, in the case of a waiver. 

  
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 9.2 Headings; Interpretation. The headings of the various Sections of this Agreement have
been inserted for convenience of reference only and shall not be deemed to be part of this Agreement. The terms “hereof,” “herein,” “hereby” and derivative or similar words refer to this Agreement as a whole and not to
any particular provision of this Agreement. Except when used together with the word “either” or otherwise for the purpose of identifying mutually exclusive alternatives, the term “or” has the inclusive meaning represented by the
phrase “and/or.” All references in this Agreement to “dollars” or “$” shall mean United States dollars. Except where the context otherwise requires, wherever used the singular shall include the plural, the plural the
singular, the use of any gender shall be applicable to all genders. The term “including” or “includes” means “including without limitation” or “includes without limitation.” 

9.3 Severability. In case any provision contained in this Agreement should be invalid, illegal or unenforceable in any respect, the
validity, legality and enforceability of the remaining provisions contained herein shall not in any way be affected or impaired thereby. 

9.4 Survival. The representations and warranties contained herein shall survive the Initial Closing and the delivery of the Shares for a
period of three (3) years after the date hereof; provided, however, that notwithstanding the foregoing in this Section 9.4, the representations and warranties contained in Section 4.1,
Section 4.2, Section 4.3, the first two sentences of Section 4.4, Section 4.5, Section 4.7, the first sentence of Section 4.8, Section 4.8(ii),
Section 4.14, Section 5.1(e) and SECTION 6 shall survive until the expiration of the applicable statute of limitations. The agreements and covenants contained herein shall survive for the applicable statute of
limitations 
 9.5 Governing Law; Jurisdiction. This Agreement shall be governed by and interpreted in accordance with the substantive
laws of the State of California, U.S.A., without regard to its or any other jurisdiction’s choice of law rules. Any and all disputes arising out of, concerning, or related to this Agreement, or to the interpretation, performance, breach or
termination thereof shall be referred to and resolved by arbitration administered in the City and County of San Francisco, California, in accordance with the then current Comprehensive Arbitration Rules and Procedures of the Judicial Arbitration and
Mediation Services, Inc. (“JAMS”), or its successor, and judgment upon the award rendered may be entered in any court having jurisdiction thereof. Such arbitration shall be conducted by a single arbitrator appointed by JAMS in
accordance with its rules. The decision of the arbitrator as to any claim or dispute shall be final, binding, and conclusive upon the parties. Such decision shall be written and shall be supported by written findings of fact and conclusions which
shall set forth the award, judgment, decree or order awarded by the arbitrator. In the event that recourse to the courts shall be necessary for the purpose of determining any question of law required to be determined for arbitration or for interim
or conservatory relief, including a temporary restriction order or preliminary injunction (as necessary), the parties hereto hereby submit to the exclusive jurisdiction of the state and federal courts of San Francisco, California, agree not to
commence any suit, action or proceeding relating thereto except in such courts, and waive, to the fullest extent permitted by law, the right to move to dismiss or transfer any action brought in such courts on the basis of any objection to personal
jurisdiction or venue. EACH PARTY HEREBY WAIVES ITS RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT, THE OTHER TRANSACTION DOCUMENTS, THE SHARES OR THE SUBJECT MATTER HEREOF OR THEREOF. THE SCOPE OF
THIS WAIVER IS INTENDED TO BE ALL-ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY COURT AND THAT RELATE TO THE SUBJECT MATTER OF THIS TRANSACTION, INCLUDING, WITHOUT LIMITATION, CONTRACT CLAIMS,
TORT CLAIMS (INCLUDING NEGLIGENCE), BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS. THIS SECTION HAS BEEN FULLY DISCUSSED BY EACH OF THE PARTIES HERETO AND THESE PROVISIONS WILL NOT BE SUBJECT TO ANY EXCEPTIONS. EACH PARTY
HERETO HEREBY FURTHER WARRANTS AND REPRESENTS THAT SUCH PARTY HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL, AND THAT SUCH PARTY KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL. 

  
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 9.6 Counterparts. This Agreement may be executed in counterparts, each of which shall
constitute an original, but all of which, when taken together, shall constitute but one instrument, and shall become effective when one or more counterparts have been signed by each party hereto and delivered to the other party. Signatures to this
Agreement transmitted by facsimile, by email in “portable document format” (“.pdf”), or by any other electronic means intended to preserve the original graphic and pictorial appearance of this Agreement shall have the same effect
as physical delivery of the paper document bearing original signature. 
 9.7 Successors and Assigns. Except as otherwise expressly
provided herein, the provisions hereof shall inure to the benefit of, and be binding upon, the successors, assigns, heirs, executors and administrators of the parties hereto. The Company may not assign this Agreement or any rights or obligations
hereunder without the prior written consent of the Purchaser. The Purchaser may assign its rights under this Agreement to any affiliate of the Purchaser to whom the Purchaser assigns or transfers any Shares, provided such affiliate-transferee agrees
in writing to be bound, with respect to the transferred Shares, by the provisions hereof that apply to the “Purchaser.” 
 9.8
No Third-Party Beneficiaries. Notwithstanding anything contained in this Agreement to the contrary, nothing in this Agreement, express or implied, is intended to confer on any Person other than the parties hereto any rights, remedies,
obligations or liabilities under or by reason of this Agreement, and no Person that is not a party hereto shall have any standing as a third-party beneficiary with respect to this Agreement or the transactions contemplated hereby. 

9.9 Entire Agreement. This Agreement, the License Agreement and the other documents and instruments delivered pursuant hereto or
thereto, including the exhibits hereto or thereto, the Company Schedule of Exceptions, the Purchaser Schedule of Exceptions and the Registration Rights Agreement, constitute the full and entire understanding and agreement between the parties hereto
with regard to the subjects hereof and thereof. 
 9.10 Payment of Fees and Expenses. Except as otherwise provided herein or in the
other documents or instruments contemplated hereby, including in the Registration Rights Agreement, each of the Company and the Purchaser shall bear its own expenses and legal fees incurred on its behalf with respect to this Agreement and the
transactions contemplated hereby. If any action at law or in equity is necessary to enforce or interpret the terms of this Agreement, the prevailing party shall be entitled to reasonable attorney’s fees, costs and necessary disbursements in
addition to any other relief to which such party may be entitled. 

  
 23 

 9.11 Further Actions. Each party hereto agrees to execute, acknowledge, and deliver such
further instruments, and to do all such other acts, as may be necessary or appropriate in order to carry out the purposes and intent of this Agreement and the Registration Rights Agreement. 

9.12 Form 8-K. On or before the fourth (4th) business day following the Effective Date,
the Company shall file a Current Report on Form 8-K with the Commission describing the terms of the transactions contemplated by this Agreement and the Registration Rights Agreement. The Company shall provide
the Purchaser an opportunity to review and comment on the disclosure to be included in such Current Report on Form 8-K. Except for the Current Report on Form 8-K
contemplated by this Section 9.12, all public announcements regarding this Agreement shall be issued only in accordance with Section 9.13. 

9.13 Public Announcement. No press release or, except to the extent required under applicable law (in which case the disclosing
party shall use reasonable efforts to give the other party hereto an opportunity to review and comment on such disclosure in advance of its public release), other public announcement shall be made, directly or indirectly, by either party hereto
concerning the execution of this Agreement, the terms and conditions hereof or the consummation of the transactions contemplated hereby, in each case without the prior written consent of the other party hereto, which consent shall not be
unreasonably withheld, conditioned or delayed. 
 [signature pages follow] 

  
 24 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their
duly authorized representatives as of the day and year first above written. 
  

			
	COMPANY:
	
	COHERUS BIOSCIENCES, INC.

 
			
		
	By:	 	 /s/ Dennis M. Lanfear

	Name:	 	Dennis M. Lanfear
	Title:	 	Chief Executive Officer

 [Signature Page – Stock Purchase Agreement] 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their
duly authorized representatives as of the day and year first above written. 
  

			
	 PURCHASER:
  

V-SCIENCES INVESTMENTS PTE LTD

		
	By:	 	 /s/ Khoo Shih

	Name:	 	Khoo Shih
	Title:	 	Authorized Signatory

 [Signature Page – Stock Purchase Agreement] 

 EXHIBIT A 

Company Wire Instructions 

 EXHIBIT B 

Form of Registration Rights Agreement 

[see attached] 

 EXHIBIT C 

Legal Opinion 
 [see
attached] 

 EXHIBIT D 

Form of Regulation S Legend 
 “PRIOR
TO [_____ __, 201_]*, THESE SECURITIES MAY NOT BE OFFERED OR SOLD (INCLUDING OPENING A SHORT POSITION IN SUCH SECURITIES) IN THE UNITED STATES OR TO U.S. PERSONS AS DEFINED BY RULE 902(K) ADOPTED UNDER THE ACT, OTHER THAN TO DISTRIBUTORS, UNLESS THE
SECURITIES ARE REGISTERED UNDER THE ACT, OR AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE ACT IS AVAILABLE. PURCHASERS OF SHARES PRIOR TO [_____ __, 201_]*, MAY RESELL SUCH SECURITIES ONLY PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER
THE ACT OR OTHERWISE IN ACCORDANCE WITH THE PROVISIONS OF REGULATION S OF THE ACT, OR IN TRANSACTIONS EFFECTED OUTSIDE OF THE UNITED STATES PROVIDED THEY DO NOT SOLICIT (AND NO ONE ACTING ON THEIR BEHALF SOLICITS) PURCHASERS IN THE UNITED STATES OR
OTHERWISE ENGAGE(S) IN SELLING EFFORTS IN THE UNITED STATES AND PROVIDED THAT HEDGING TRANSACTIONS INVOLVING THESE SECURITIES MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE ACT. A HOLDER OF THE SECURITIES WHO IS A DISTRIBUTOR, DEALER, SUB-UNDERWRITER OR OTHER SECURITIES PROFESSIONAL, IN ADDITION, CANNOT PRIOR TO [_____ __, 201_]* RESELL THE SECURITIES TO A U.S. PERSON AS DEFINED BY RULE 902(K) OF REGULATION S UNLESS THE SECURITIES ARE REGISTERED
UNDER THE ACT OR AN EXEMPTION FROM REGISTRATION UNDER THE ACT IS AVAILABLE.” 
  

	*	The twelve-month anniversary of the Initial Closing Date or Subsequent Closing Date, as applicable. 

 EXHIBIT E 

Form of Affiliate Legend 
 “THE
SHARES REPRESENTED BY THIS CERTIFICATE ARE HELD BY AN AFFILIATE OF THE ISSUER AS DEFINED IN RULE 144 PROMULGATED UNDER THE SECURITIES ACT OF 1933 AND MAY ONLY BE SOLD OR OTHERWISE TRANSFERRED IN COMPLIANCE WITH THE REQUIREMENTS OF RULE 144 OR
PURSUANT TO A REGISTRATION STATEMENT UNDER SAID ACT OR AN EXEMPTION FROM SUCH REGISTRATION.” 

 EXHIBIT F 

Lock-up Terms 

Capitalized terms used herein and not otherwise defined shall have the meanings set forth in the Stock Purchase Agreement (the
“Agreement”) made as of August 21, 2017 by and among Coherus BioSciences, Inc., a Delaware corporation (the “Company”) and V-Sciences Investments Pte Ltd, a private
limited Singapore company (the “Purchaser”). 
 During the Lock-up Period, the
Purchaser shall not, without the prior written consent of the Company, subject to the exceptions set forth below, (1) offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant
any option, right or warrant to purchase, or otherwise transfer or dispose of, directly or indirectly, any shares of common stock, par value $0.0001, of the Company (the “Common Stock”) or any securities convertible into or
exercisable or exchangeable for Common Stock (including without limitation, Common Stock or such other securities which may be deemed to be beneficially owned by the Purchaser in accordance with the rules and regulations of the Securities and
Exchange Commission and securities which may be issued upon exercise of a stock option or warrant) (collectively, the “Lock-up Shares”), or publicly disclose the intention to make any offer,
sale, pledge or disposition or (2) enter into any swap or other agreement that transfers, in whole or in part, any of the economic consequences of ownership of the Common Stock or such other securities, whether any such transaction described in
clause (1) or (2) above is to be settled by delivery of Common Stock or such other securities, in cash or otherwise, in each case other than (A) transfers of the Lock-up Shares as a bona fide gift or
gifts, (B) transfers or dispositions of the Lock-up Shares to any trust for the direct or indirect benefit of the Purchaser or the immediate family of the Purchaser, (C) distributions by a trust to
its beneficiaries, (D) transfers or dispositions of the Lock-up Shares to any corporation, partnership, limited liability company or other entity, all of the beneficial ownership interests of which are
held by the Purchaser or the immediate family of the Purchaser, (E) transfers or dispositions of the Lock-up Shares by will, other testamentary document or intestate succession to the legal
representative, heir, beneficiary or a member of the immediate family of the Purchaser, (F) transfers of the Lock-up Shares to partners, members or stockholders of the Purchaser, or to another
partnership, limited liability company, corporation or other business entity that controls, is controlled by or is under common control with the Purchaser, (G) transfers that occur by operation of law pursuant to a qualified domestic
order or in connection with a divorce settlement, (H) transfers or dispositions of securities acquired in open-market transactions or (I) the entry into any plan under Rule 10b5-1 of the Exchange
Act; provided that (x) in the case of any transfer or distribution pursuant to clauses (A) – (G), each transferee, donee or distributee shall execute and deliver to the Company a lock-up letter
agreeing to these Lock-up Terms; (y) no sales shall be permitted to be made under such plan prior to the expiration of the Lock-up Period; and (z) in the case
of any transfer, disposition or distribution pursuant to clause (A) – (I), no filing by any party (donor, donee, transferor or transferee) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or other public
announcement shall be required or shall be made voluntarily in connection with such transfer or distribution (other than a filing on a Form 5 made after the expiration of the Lock-up Period) and any such
transfer or distribution shall not involve a disposition for value. For purposes of these Lock-up Terms, “immediate family” shall mean any relationship by blood, marriage or adoption, not more remote
than first cousin. 

 Furthermore, notwithstanding the restrictions imposed by these
Lock-up Terms, the Purchaser may, without the prior written consent of the Company, (i) exercise an option or warrant (including a net or cashless exercise of an option or warrant) to purchase shares of
Common Stock or preferred stock, par value $0.0001, of the Company (the “Preferred Stock”), and transfer shares of Common Stock to the Company to cover tax withholding obligations of the Purchaser in connection with any such option
exercise, provided that the underlying shares of Common Stock or Preferred Stock shall continue to be subject to the restrictions on transfer set forth in these Lock-up Terms, (ii) transfer any
shares of Common Stock pursuant to a trading plan established prior to the date hereof pursuant to Rule 10b5-1 under the Exchange Act for the transfer of Common Stock, provided that to the extent a
public announcement or filing under the Exchange Act, if any, is required of or voluntarily made by or on behalf of the Purchaser or the Company regarding any such transfer, such announcement or filing shall include a statement to the effect that
any transfer was effected pursuant to such plan, (iii) establish a trading plan after the date hereof pursuant to Rule 10b5-1 under the Exchange Act for the transfer of Common Stock, provided that
such plan does not provide for any transfers of Common Stock during the Lock-up Period, and (iv) transfer or dispose of shares of Common Stock acquired on the open market (i.e. those shares of
Common Stock not acquired pursuant to the Agreement), provided that, with respect to each of (i), (iii) and (iv) above, no filing under the Exchange Act or other public announcement shall be required or shall be made voluntarily in
connection with such transfer or disposition during the Lock-up Period. 
 All authority herein
conferred or agreed to be conferred and any obligations of the Purchaser shall be binding upon the successors, assigns, heirs or personal representatives of the Purchaser.Exhibit

PRUCO LIFE INSURANCE COMPANY 
 Phoenix, Arizona 85014
[The Prudential Logo] A STOCK COMPANY SUBSIDIARY OF

	
	
	The Prudential Insurance Company of America 
 
ANNUITANT(S) JOHN DOE                            XX XXX XXX CONTRACT NUMBER 
             MARY DOE                    SEPTEMBER 1, 1996  CONTRACT DATE 
ANNUITY DATE SEPTEMBER 1, 2051 
 
      AGENCY R-NK 1

This is an annuity contract. Subject to the provisions of the contract, and in consideration of any purchase payment you make and we accept, we will make annuity payments starting on the Annuity Date we show above.
Please read the contract carefully; it is a legal contract between you and Pruco Life Insurance Company. Expense charges applicable to the contract are shown on a Contract Data page. If you have a question about the contract, or a claim, see one of our representatives or get in touch with one of our offices.
BENEFITS AND VALUES UNDER THIS CONTRACT MAY BE ON A VARIABLE BASIS. AMOUNTS DIRECTED INTO ONE OR MORE OF THE VARIABLE INVESTMENT OPTIONS WILL REFLECT THE INVESTMENT EXPERIENCE OF THOSE INVESTMENT OPTIONS. THEY ARE SUBJECT TO CHANGE BOTH UP AND DOWN AND ARE NOT GUARANTEED AS TO DOLLAR AMOUNT. AMOUNTS DIRECTED INTO THE MARKET-VALUE-ADJUSTMENT OPTION(S) MAY BE ADJUSTED UPWARD OR DOWNWARD BY THE APPLICATION OF A MARKET-VALUE-ADJUSTMENT FORMULA. SEE THE MARKET-VALUE ADJUSTMENT (MVA) PROVISION FOR A DESCRIPTION OF THE FORMULA, AND THE VALUES AVAILABLE WITHOUT AN ADJUSTMENT.
10 DAY RIGHT TO CANCEL CONTRACT.--If you return this contract to us not later than 10 days after you receive it, we will return your money in accordance with applicable law and the contract will be canceled. All you have to do is take it or mail it to one of our offices or to the representative who sold it to you.
Signed for Pruco Life Insurance Company, an Arizona Corporation.

	
	
	/s/ SUSAN L. BLOUNT                                  /s/ ESTHER H. MILNES 
- - ----------------------------------             -------------------------------- 
            Secretary                                     President

VARIABLE ANNUITY CONTRACT WITH FLEXIBLE PURCHASE PAYMENTS. ANNUITY PAYMENTS STARTING ON ANNUITY DATE. BENEFIT PAYABLE AS STATED UPON DEATH BEFORE ANNUITY DATE. CONTRACT VALUES REFLECT INVESTMENT RESULTS. MARKET-VALUE-ADJUSTMENT OPTION(S) SUBJECT TO MARKET-VALUE ADJUSTMENTS. ELIGIBLE FOR ANNUAL DIVIDENDS AS STATED UNDER PARTICIPATION.

VFM--96

GUIDE TO CONTENTS

	
	
	Page 
                                                                            ---- 
CONTRACT DATA .............................................................    3 
  Basic Contract Data, Including Individuals Covered by the Contract, 
  Contract Minimums, Charges, Available Investment Options, and 
  Initial Allocations 
 
DEFINITIONS ...............................................................    5 
 
PURCHASE PAYMENTS .........................................................    5 
  When Permitted; Invested Purchase Payments; Allocations 
 
 
INTEREST-RATE INVESTMENT OPTIONS ..........................................    6 
  Options Available; Interest Rates; Interest Cell 
 
VARIABLE INVESTMENT OPTIONS ...............................................    7 
  Variable Separate Account; Separate Account Investments; 
  Variable Investment Options 
 
CONTRACT FUND .............................................................    7 
 
MARKET-VALUE ADJUSTMENT (MVA) .............................................    8 
  Market-Value Adjustment (MVA); Market-Value Factor; 
  Effect of Market-Value Adjustment 
 
TRANSFERS .................................................................    9 
 
WITHDRAWALS ...............................................................   10 
   Amount Available for Withdrawal; Withdrawal Charges; Allocation of 
   Withdrawals; Charge-Free Amounts; Waiver of Withdrawal Charges 
 
BENEFICIARY ...............................................................   11 
 
DEATH OF ANNUITANT BEFORE ANNUITY DATE ....................................   12 
 
DEATH OF ANNUITANT ON OR AFTER ANNUITY DATE ...............................   12 
 
PAYOUT PROVISIONS .........................................................   13 
  Choosing an Option; Options Described; Other Payout Options; 
  When No Option Chosen; Interest Rate; Withdrawal Charges 
 
ANNUITY SETTLEMENT TABLES .................................................   14 
 Amounts Payable 
 
GENERAL PROVISIONS ........................................................   15 
  Quarterly Report; The Contract; Contract Modifications; Change of 
  Annuity Date; Ownership and Control; Currency; Misstatement of Age 
  or Sex; Incontestability; Proof of Life or Death; Assignment; 
  Deferring Payment; Changes; Participation (Dividends); 
  Terminally Ill; Eligible Nursing Home; Eligible Hospital

(VFM--96) Page 2

CONTRACT DATA

	
	
	Annuitants(s) 
 
      First Annuitant 
 
         JOHN DOE          Male,      Issue Age 35 
 
      Co-Annuitant 
 
         MARY DOE          Female,    Issue age 35 
 
- - -------------------------------------------------------------------------------

Basic Contract Information

	
	
	Contract Number        xx xxx xxx 
      Contract Date          September 1, 1996 
      Annuity Date           September 1, 2051 
      Beneficiary            Class 1   Robert Doe, son of Annuitants 
                             Class 2   Susan Smith, sister of Mary Doe 
 
- - -------------------------------------------------------------------------------

Purchase Payments
The purchase payment paid on the Contract Date is $10,000.00.
The minimum initial purchase payment is $10,000.00. The minimum subsequent purchase payment is $1,000.00.

Other Minimums
The minimum withdrawal amount is $500.00.
The minimum Interest Crediting Rate on Interest-Rate Investment Options is 3%.

Expense Charges
The expense charges deducted from the contract fund (see the Contract Fund provision for a complete description of the fund and how it increases and decreases) are:
CONTRACT DATA CONTINUED ON NEXT PAGE
(VFM--96) Page 3

CONTRACT NO. XX XXX XXX
CONTRACT DATA CONTINUED
Daily Mortality and Expense Risk Charge - the maximum daily charge is .00340349%, which is equivalent to an annual rate of 1.25%.
Daily Administrative Charge - the maximum daily charge is .00041065%, which is equivalent to an annual rate of .15%.
Annual Administrative Charge - the charge is $30.00. It is deducted on the Contract Anniversary and when a surrender (i.e., full withdrawal) of the contract occurs, if the contract fund at the time is then less than $50,000.00.

Transaction Charge
The transaction charge for each transfer after the first 12 in a contract year is $25.00. We reserve the right to limit the number of transfers in order to comply with federal, state or local law.

Withdrawal Charge
The withdrawal charge (see the Withdrawals provision for a full discussion of how this charge is applied) is a percentage of the amount withdrawn that is subject to the charge, and depends on the Contract Year in which the withdrawal is made.

	
	
	Year of Withdrawal           Withdrawal Charqe 
------------------           ----------------- 
         1                            7% 
         2                            6% 
         3                            5% 
         4                            4% 
         5                            3% 
         6                            2% 
         7                            1% 
         8 and later                  0%

CONTRACT DATA CONTINUED ON NEXT PAGE
(VFM--96) Page 3A

CONTRACT NO. XX XXX XXX
CONTRACT DATA CONTINUED
Investment Options
Interest-Rate Investment Options
As of the contract date, two interest-rate investment options are available, a one-year fixed-interest-rate option (the Fixed-Rate option) and a seven year market-value-adjustment option (the MVA option). Interest is credited at declared rates to amounts held in each of these options. For the MVA option, if money is withdrawn prior to the end of the maturity date, there will be a market-value adjustment, which may increase or decrease the value of amounts in that option.
Variable Investment Options
The following variable investment options are available through allocation to subaccounts of the Pruco Life Flexible Premium Variable Annuity Account. We reserve the right to limit the availability of the below options, if necessary, in order to comply with federal, state or local law.
Variable Investment Options (Subaccounts) Available 
 THE PRUDENTIAL SERIES FUND 
 Money Market Portfolio
Diversified Bond Portfolio Equity Portfolio 
Prudential Jennison Portfolio Global Portfolio 
Stock Index Portfolio 
High Yield Bond Portfolio 
Equity Income Portfolio
T. ROWE PRICE 
 Equity Income Portfolio
International Stock Portfolio
OPCAP ADVISORS 
 OCC Accumulation Trust Managed Portfolio
OCC Accumulation Trust Small Cap Portfolio
AIM
V.I. Value Fund 
V.I. Growth and Income Fund

CONTRACT DATA CONTINUED ON NEXT PAGE
(VFM--96) Page 3B

	
	
	CONTRACT NO. XX XXX XXX 
 
                             CONTRACT DATA CONTINUED 
 
         JANUS 
              Aspen Growth Portfolio 
              Aspen International Growth Portfolio 
 
         MFS 
              Emerging Growth Series 
              Research Series 
 
         WARBURG PINCUS 
              Post-Venture Capital Portfolio 
 
XXXXXXXXXXXXXX 
XXXXXXXXXXXXXX 
 
- - ------------------------------------------------------------------------------- 
 
Initial Allocation of Invested Premium Amounts 
 
    The Prudential Series Fund Global Portfolio      40% 
    The Prudential Series Fund Equity Portfolio      30% 
    Janus Aspen Growth Portfolio                     10% 
    One-Year Fixed-Rate Option                       10% 
    Seven-Year MVA Option                            10%

For any portion of the purchase payment allocated on the Contract Date to an interest-rate investment option, the interest rates are:

	
	
	One-Year Fixed-Rate Option                   6% 
         Seven-Year MVA Option                        8% 
 
- - ------------------------------------------------------------------------------- 
 
                              END OF CONTRACT DATA 
 
 
(VFM--96)                           Page 3C

CONTRACT NO. XX XXX XXX
ENDORSEMENTS
(Only we can endorse this contract.)
(VFM--96) Page 4

DEFINITIONS
We, Our, and Us.--Pruco Life Insurance Company, an 
Arizona corporation, or any affiliated company.
You and Your.--The owner of the contract.
Annuitant(s).--The person or persons named on the first page. If two persons are named, one of the two is named on page 3 as First Annuitant, the other as Co-Annuitant. In that case, the Beneficiary provision of the contract will be based on the death of the last survivor of the persons so named.
Payee.--A beneficiary who has a right to receive a settlement under this contract.
SEC.--The Securities and Exchange Commission.
Contract Date.--The date we receive the initial purchase payment. We show the Contract Date on page 3.
Contract Anniversary.--The same day and month as the Contract Date in each later year.
Contract Year.--A year which starts on the Contract Date or on a Contract Anniversary.
Business Day.--Any day the New York Stock Exchange is open for business.
Annuity Date.--The date our first annuity payment to you is due. We show the Annuity Date on page 3.

PURCHASE PAYMENTS

	
	
	WHEN PERMITTED    The initial purchase payment must be paid on the 
                           Contract Date. Subsequent purchase payments may be 
                           made at any time before the Annuity Date. Minimum 
                           purchase payment amounts are shown on a Contract Data 
                           page; we reserve the right to establish a maximum 
                           amount. 
 
      INVESTED PURCHASE    Corresponding to each purchase payment, there is an 
               PAYMENTS    "invested purchase payment." This is the balance of 
                           the purchase payment after we make any applicable 
                           deduction for: (1) state and local premium taxes; and 
                           (2) any other type of tax (or component thereof) 
                           measured by or based upon the amount of the purchase 
                           payment we receive. 
 
            ALLOCATIONS    You may allocate all or a part of an invested 
                           purchase payment to one or more of the investment 
                           options described below. The allocation of the 
                           initial invested purchase payment is shown on a 
                           Contract Data page. You may change the allocation of 
                           future invested purchase payments at any time. The 
                           change will take effect on the date we receive your 
                           request. If, after the initial purchase payment, we 
                           receive a purchase payment without allocation 
                           instructions, we will allocate the corresponding 
                           invested purchase payment in the same proportion as 
                           the most recent purchase payment you made (unless 
                           that was a purchase payment you directed us to 
                           allocate on a one-time-only basis). 
 
                           We reserve the right to establish minimum percentage 
                           and dollar amounts for invested purchase payment 
                           allocations. 
 
 
(VFM--96)                           Page 5

INTEREST-RATE INVESTMENT OPTIONS

	
	
	OPTIONS AVAILABLE    As shown on a Contract Data page, two types of 
                           interest-rate investment options were available on 
                           the Contract Date: fixed-interest-rate option 
                           (Fixed-Rate option) and market-value adjustment 
                           option (MVA option). We may add other options in the 
                           future. Each option may be divided into interest 
                           cells (described below). 
 
         INTEREST RATES    The annual interest rates applicable to the 
                           interest-rate investment options on the Contract Date 
                           are shown on a Contract Data page. We will credit 
                           interest each day on amounts allocated to any of 
                           these options at the daily equivalent of the rate 
                           shown for that option. Interest rates for future 
                           allocations or transfers to interest-rate investment 
                           options will be declared when those allocations or 
                           transfers are made. The declared rates will never be 
                           less than the Minimum Interest Crediting Rate shown 
                           on a Contract Data page. 
 
          INTEREST CELL    An interest cell is created whenever you allocate or 
                           transfer an amount to an interest-rate investment 
                           option. We credit interest to the amount in each 
                           interest cell daily at a specific rate declared for 
                           that interest cell until the earliest of: the date it 
                           is withdrawn; the date it is transferred to another 
                           investment option; the maturity date (the date the 
                           cell was established plus the number of years it is 
                           expected to remain in effect); and the date as of 
                           which a death benefit is determined. An interest 
                           cell's declared rate is guaranteed if the amount in 
                           that cell is held to maturity. Withdrawals and 
                           transfers from an MVA interest cell are subject to 
                           market-value adjustments, which may increase or 
                           decrease the cell's value. Withdrawals may also be 
                           subject to a withdrawal charge, which is described in 
                           Withdrawals below. 
 
                           At the maturity date of an interest cell, you may 
                           elect to transfer the amount in the cell into any of 
                           the investment options available on that date. Once 
                           you have made an election and we have received it, it 
                           may not be reversed. If you do not make an election 
                           to transfer within 30 days following the maturity 
                           date, we will transfer the amount in the interest 
                           cell on the maturity date to an interest-rate 
                           investment option with the same duration to maturity 
                           as the maturing interest cell. 
 
                           Amounts that are transferred into the same 
                           interest-rate investment option during the 30-day 
                           period will receive the appropriate rate for that 
                           option, effective as of the maturity date. Amounts 
                           that you withdraw, or transfer into any different 
                           investment option, during the 30-day period will 
                           receive interest from the maturity date to the date 
                           of withdrawal or transfer at the rate that would have 
                           applied to those amounts if you had taken no action 
                           within the 30-day period. 
 
 
(VFM--96)                           Page 6

VARIABLE INVESTMENT OPTIONS

	
	
	VARIABLE SEPARATE    "Variable Separate Account" refers to the Pruco Life 
                ACCOUNT    Flexible Premium Variable Annuity Account, its 
                           successors, if any, and any other variable separate 
                           accounts we add in the future. We established this 
                           account to hold and invest the assets that support 
                           this contract and variable annuity contracts like 
                           this one. The Variable Separate Account is divided 
                           into divisions called "subaccounts," and the 
                           subaccounts available to you on the Contract Date 
                           are listed on a Contract Data page. We may establish 
                           additional subaccounts. 
 
                           Any income and realized or unrealized gains and 
                           losses in a subaccount are credited to or charged 
                           against that subaccount. This is without regard to 
                           income, gains, or losses in other investment options. 
 
       SEPARATE ACCOUNT    We may invest the assets of different subaccounts in 
            INVESTMENTS    different ways than are shown on a Contract Data 
                           page. We will do so only with the consent of the SEC 
                           and, if required, of the insurance regulator where 
                           this contract is delivered. 
 
                           We will always keep assets in the Variable Separate 
                           Account with a total value at least equal to the 
                           amount credited to all the subaccounts under 
                           contracts like this one. That portion of the assets 
                           of the Variable Separate Account equal to the 
                           reserves and other contract liabilities with respect 
                           to the Variable Separate Account shall not be 
                           chargeable with liabilities or obligations arising 
                           out of any other business we conduct. To the extent 
                           that those assets exceed that amount, we may use them 
                           in any way we choose. 
 
    VARIABLE INVESTMENT    We show the options available on the Contract Date 
                OPTIONS    on a Contract Data page. We may offer additional 
                           options. 
 
- - ------------------------------------------------------------------------------- 
 
                           CONTRACT FUND 
 
                           The term "contract fund" refers to the total of all 
                           amounts credited to your contract as of any date as a 
                           result of your initial purchase payment and the 
                           increases and decreases described below. Note that 
                           this is not the same as the "cash value" of the 
                           contract, which is described under Withdrawals below. 
 
                           On the contract date, the contract fund is equal to 
                           the initial invested purchase payment. After that, 
                           the fund as of any day is determined by starting with 
                           the fund at the end of the previous day and adjusting 
                           it for items that increase it or decrease it. 
 
                           Items that increase the contract fund are: invested 
                           purchase payments; positive investment results in a 
                           variable investment option; interest credited to an 
                           interest-rate investment option; and any positive 
                           market-value adjustment associated with a transfer or 
                           withdrawal. 
 
                           Items that decrease the contract fund are: 
                           withdrawals and the charges associated with them; 
                           negative investment results in a variable investment 
                           option; mortality and expense risk charges; 
                           administration charges; any applicable federal, 
                           state, or local taxes charged to the contract; and 
                           any negative market-value adjustment associated with 
                           a transfer or withdrawal. 
 
                           Investment results are credited daily. Mortality and 
                           expense risk charges are deducted daily. There are 
                           two administration charges: one is deducted daily, 
                           and one is deducted on the Contract Anniversary and 
                           at the time of a surrender. Other charges may be 
                           assessed only if the appropriate event occurs. The 
                           maximum charges we may deduct are shown on a Contract 
                           Data page. 
 
 
(VFM--96)                           Page 7

MARKET-VALUE ADJUSTMENT (MVA)

	
	
	MARKET-VALUE    The market-value adjustment (MVA) is made when a 
       ADJUSTMENT (MVA)    withdrawal or transfer is requested from an MVA 
                           option. It is used to calculate the amount available 
                           for withdrawal or transfer, and the amount remaining 
                           after the withdrawal or transfer. It applies only to 
                           the interest cell from which the withdrawal or 
                           transfer is made (no market-value adjustment will 
                           apply to an interest cell in the event of a 
                           withdrawal or transfer within the 30-day period 
                           following the cell's maturity). 
 
                           We determine the amount available for withdrawal from 
                           a cell in two steps. We first determine a 
                           "market-value factor." This is based on the time 
                           remaining to maturity of the interest cell and the 
                           difference between the declared interest rate for 
                           that cell and a current rate that we establish. We 
                           then multiply that interest cell's portion of the 
                           contract fund by the sum of 1 plus the market-value 
                           factor. The formula for the market-value factor is 
                           shown below. 
 
                           To calculate the interest cell's portion of the 
                           contract fund after the withdrawal or transfer, we 
                           first subtract the amount withdrawn or transferred 
                           (including any charges) from the interest cell's 
                           original portion of the contract fund. The remaining 
                           amount, divided by the sum of 1 plus the market-value 
                           factor, is the interest cell's portion of the 
                           contract fund after the withdrawal or transfer. 
 
    MARKET-VALUE FACTOR    The market-value factor is determined as: 
                           (M/12)x(R-C), where: 
 
                           (M) is the number of whole months (not less than one) 
                               to the interest cell's maturity date; 
 
                           (R) is the interest cell's declared interest rate 
                               expressed as a decimal; for example, 
                               5 percent = .05; and 
 
                           (C) is the current rate referred to above, in effect 
                               on the date of the withdrawal or transfer, for a 
                               period to maturity one year longer than the 
                               number of whole years remaining until the 
                               interest cell's maturity date as of the date we 
                               receive your request. This rate is also expressed 
                               as a decimal. 
 
                           The market-value factor will never be greater than 
                           0.4 or less than minus 0.4. 
 
 EFFECT OF MARKET-VALUE    If the current interest rate is higher than the 
             ADJUSTMENT    interest cell's declared interest rate, the 
                           market-value factor will be negative, and we will 
                           reduce the contract fund by more than the sum of the 
                           withdrawal and the withdrawal charge. If the current 
                           rate is lower, the market-value factor will be 
                           positive, and we will reduce the contract fund by 
                           less than the sum of the withdrawal and the 
                           withdrawal charge. 
 
 
(VFM--96)                                    Page 8

TRANSFERS
You may transfer amounts into or out of investment 
options, subject to the following restrictions:
1. We impose a transaction charge, shown on a Contract Data page, if you make more than 12 transfers in a Contract Year. The charge is taken pro-rata from the investment options from which the transfer is made.
2. You may not make a transfer from an interest cell in the Fixed-Rate option, except during the 30-day period following the cell's maturity date, or under a plan for periodic transfers that we make available to all owners of contracts like this one.
3. You may not make a transfer from an investment option to the same investment option.
The transfer will take effect as of the end of the valuation period on the date we receive valid notification from you, if that is a Business Day. Otherwise, it will take effect on the next Business Day. A valuation period is the period of time from one determination of the value of the amount invested in a subaccount to the next such determination. Such determinations are made once each Business Day, generally at 4:15 p.m., New York City time.
Any amount transferred from an MVA cell is subject to a market-value adjustment, unless the transfer is made in the 30-day period following the maturity date of the interest cell. If you do not direct us otherwise, when we transfer money from a Fixed-Rate option or MVA option, we will take the money first from the oldest eligible interest cell in the option.
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WITHDRAWALS

	
	
	Amount Available for   You may make a withdrawal at any time prior to the 
          Withdrawal   Annuity Date while at least one Annuitant is living 
                       (the minimum withdrawal amount is shown on a 
                       Contract Data page). The total amount available for 
                       withdrawal at any time is the "cash value" of the 
                       contract. The cash value is equal to the contract 
                       fund, plus or minus the market-value adjustment of 
                       all amounts in MVA options, minus the withdrawal 
                       charge and the administrative charge that may apply 
                       for a surrender of the contract. 
 
  Withdrawal Charges   A withdrawal charge may apply if you make a 
                       withdrawal during the first seven Contract Years. 
                       The amount of the charge is a percentage, shown on a 
                       Contract Data page, of any amount to be withdrawn in 
                       excess of the applicable charge-free amount 
                       described below. If you ask for a withdrawal of a 
                       specific dollar amount, we will deduct enough from 
                       the contract fund to provide the withdrawal charge 
                       and provide you the amount you asked for. If you 
                       request a percentage withdrawal, unless you direct 
                       otherwise, we will apply that withdrawal pro-rata 
                       across all investment options. The requested 
                       percentage will be applied to each investment option 
                       in determining the gross amount withdrawn. In this 
                       instance, any applicable withdrawal charge, in 
                       addition to the withdrawal, will be applied pro-rata 
                       across all investment options. The withdrawal charge 
                       will never be greater than that permitted by any 
                       applicable law or regulation. 
 
       Allocation of   You may direct that a withdrawal be made from either 
         Withdrawals   an interest-rate investment option, a variable 
                       investment option, or both. If you direct that some 
                       or all of a withdrawal be made from an interest-rate 
                       investment option, you may direct that the 
                       withdrawal be made from a specific interest cell or 
                       cells. 
 
                       If you do not specify the investment option or 
                       options from which the withdrawal is to be made, 
                       here is how we will allocate the withdrawal. We will 
                       take the withdrawal (and the withdrawal charge) on a 
                       pro-rata basis from all investment options. Within 
                       the interest-rate investment options, we will take 
                       the withdrawal first from the oldest eligible 
                       interest cell or cells in those options. 
 
 Charge-Free Amounts   Certain amounts (the charge-free amounts) may be 
                       withdrawn without incurring a withdrawal charge. The 
                       charge-free amount available in any current Contract 
                       Year is equal to: 
 
                          (a)  10% of any portion of total purchase 
                               payments made in the current and all prior 
                               Contract Years in excess of total purchase 
                               payments withdrawn in prior Contract Years; 
                               plus 
 
                          (b)  any charge-free amount available in the 
                               prior Contract Year that has not been 
                               withdrawn; plus 
 
                          (c)  any portion of the withdrawal amount in 
                               excess of: the sum of all purchase payments 
                               made reduced by the amount of all prior 
                               withdrawals. 
 
                       For purposes of determining withdrawal charges and 
                       charge-free amounts, withdrawals are always assumed 
                       to come first from purchase payments. 
 
Waiver of Withdrawal   We will waive all withdrawal charges upon receipt of 
             Charges   due proof that a sole or last surviving Annuitant is 
                       Terminally Ill, or has been confined to an Eligible 
                       Nursing Home or Hospital continuously for at least 
                       three months. See the General Provisions for 
                       definitions of these terms. This waiver is not 
                       available if the contract has been assigned.

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BENEFICIARY
You may designate or change a beneficiary to receive any amount due if the sole or last surviving Annuitant dies before the Annuity Date. You may initiate a change to the beneficiary designation by completing a change form, which you can obtain from us or from your representative. We may also ask you to send us the contract. The change will take effect only when we process the request. Then any previous beneficiary's interest will end as of the date of the request, even if no Annuitant is living when we process the request. Any beneficiary's interest is subject to the rights of any assignee we know of.
When a beneficiary is designated, any relationship shown is to the Annuitant (First Annuitant if two Annuitants are named on page 3) unless otherwise specified.
To show priority among beneficiaries, we will use numbered classes, so that the class with first priority is called class 1, the class with next priority is called class 2, and so on. If two Annuitants are named on page 3, the term "Annuitant" refers to the last surviving Annuitant. The following statements apply to beneficiaries unless a Contract Data page, contract endorsement or change request that we have processed specifies otherwise:
1. One who survives the Annuitant will have the right to be paid only if no one in a prior class survives the Annuitant.
2. One who has the right to be paid will be the only one paid if no one else in the same class survives the Annuitant.
3. Two or more in the same class who have the right to be paid will be paid in equal shares.
4. If none survives the Annuitant, we will pay in one sum to the Annuitant's estate.
Before we make a payment, we have the right to decide what proof we need of the identity, age or any other facts about any persons designated as beneficiaries. If beneficiaries are not designated by name and we make payment(s) based on that proof, we will not have to make the payment(s) again.
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DEATH OF ANNUITANT BEFORE ANNUITY DATE
If a sole or last surviving Annuitant dies before the Annuity Date, then, when we receive due proof of death and any other documentation we need, the beneficiary is entitled to receive a death benefit equal to the greatest of:
(a) the contract fund as of the date we receive due proof of death and any other documentation we need;
(b) the total invested purchase payments made less the total withdrawals made (including withdrawal charges); and
(c) The minimum guaranteed death benefit less certain withdrawals described below. On the third Contract Anniversary, we set the minimum guaranteed death benefit equal to the contract fund. On each subsequent triennial Contract Anniversary, the minimum guaranteed death benefit is reset to the greater of: (1) the previous minimum guaranteed death benefit less total withdrawals made in the prior three Contract Years; and (2) the contract fund as of that Contract Anniversary. For death occurring between triennial Contract Anniversaries, we subtract from the minimum guaranteed death benefit any withdrawals made since the latest triennial Contract Anniversary.
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DEATH OF ANNUITANT ON OR AFTER ANNUITY DATE
If an Annuitant dies on or after the Annuity Date, the payout provision then in effect will govern whether and to whom we will make any payment.
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PAYOUT PROVISIONS

	
	
	Choosing an Option   You may use the contract fund as of the Annuity 
                         Date, plus or minus any market-value adjustment, to 
                         provide an income to the Annuitant(s) by choosing 
                         one or more of the options we describe below at any 
                         time before the Annuity Date. But, for any annuity 
                         option, we will first deduct any charge for taxes 
                         attributable to premiums, and any applicable 
                         withdrawal charges, described below. We offer the 
                         same annuity options to the Payee that we offer to 
                         an Annuitant. And we determine monthly payments for 
                         the Payee in the same way we do for an Annuitant. 
 
                         Your right to choose an option is subject to all 
                         these conditions: (1) You must ask for the option in 
                         writing and in a form which meets our needs. (2) You 
                         must send the contract to us to be endorsed. (3) If 
                         we require it, you must give us due proof of the 
                         date of birth of the person on whose life an annuity 
                         payment is based. (4) We must have your request, the 
                         contract and any required due proof(s) of the 
                         date(s) of birth before the Annuity Date. 
 
                         The option you choose will take effect on the 
                         Annuity Date if: (1) the person on whose life the 
                         annuity is to be based is living on that date; (2) 
                         the first payment under the option will be at least 
                         $50; and (3) you do not void the choice by making a 
                         later choice before the Annuity Date. 
 
                         If two Annuitants are named in the contract and both 
                         are living, payment will be based on the life of the 
                         First Annuitant, as named on page 3. 
 
     Options Described   When we use the word Annuitant in the following 
                         paragraphs we mean the Annuitant for whom the 
                         annuity described was chosen and who is to receive 
                         payment under the annuity. 
 
                         For an Annuitant, the first payment under these 
                         options will be made on the Annuity Date. 
 
                         For a Payee, unless a later date is requested, the 
                         first payment will be made on the first day of the 
                         earliest calendar month on or after the day we have 
                         received the request for the payout and due proof of 
                         the Annuitant's death and such claim forms and other 
                         evidence as may be satisfactory to us. 
 
                         Here are the options we offer. We may also consent 
                         to other arrangements. 
 
Option 1 (Installments   We will make equal payments for up to 25 years. The 
   for a Fixed Period)   Option 1 Table shows the minimum amounts we will 
                         pay. 
 
Option 2 (Life Income)   We will make monthly payments for as long as the 
                         person on whose life the payout is based lives, with 
                         payments certain for 120 months. The Option 2 Table 
                         shows the minimum amounts we will pay. 
 
    Option 3 (Interest   We will hold an amount at interest at the rate 
              Payment)   indicated below. At your choice, we will pay the 
                         interest annually, semi-annually, quarterly, or 
                         monthly. 
 
  Other Payout Options   We may offer other payout options. Contact one of 
                         our representatives or one of our offices for 
                         information. 
 
        When No Option   If no choice takes effect on the Annuity Date, 
                Chosen   payout under Option 3 (Interest Payment Option) will 
                         become effective. 
 
         Interest Rate   Payments under any of the options will be calculated 
                         assuming an effective interest rate of at least 3% a 
                         year. We may include more interest. 
 
    Withdrawal Charges   If you choose Option 1 or Option 3, we will apply a 
                         withdrawal charge in the same way as we would if you 
                         had made a withdrawal (see Withdrawals). Any amount 
                         used to provide income under Option 2 may be 
                         withdrawn without charge. If you choose any other 
                         method of payment not described in this contract, we 
                         will tell you if it is subject to a withdrawal 
                         charge.

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ANNUITY SETTLEMENT TABLES

	
	
	Amounts Payable   For Options 1 and 2, we will use the table below to 
                  compute the minimum amount of the annuity payment. 
 
                  If the Annuity Date is not a Contract Anniversary, 
                  we will adjust the amounts accordingly. 
 
                  When we computed the amounts we show in the Option 2 
                  Table, we adjusted the 1983 Table a to an age last 
                  birthday basis, less three years; we used an 
                  interest rate of 3 1/2% per year. If the age is over 
                  80, the rate for age 80 will be used.

OPTION 1 TABLE 
MINIMUM AMOUNT OF 
MONTHLY PAYMENT FOR 
EACH $1,000, THE FIRST 
PAYABLE IMMEDIATELY

	
	
	Number        Monthly 
of Years       Payment 
--------       ------- 
  1           $84.65 
  2            43.05 
  3            29.19 
  4            22.27 
  5            18.12 
  6            15.35 
  7            13.38 
  8            11.90 
  9            10.75 
 10             9.83 
 11             9.09 
 12             8.46 
 13             7.94 
 14             7.49 
 15             7.10 
 16             6.76 
 17             6.47 
 18             6.20 
 19             5.97 
 20             5.75 
 21             5.56 
 22             5.39 
 23             5.24 
 24             5.09 
 25             4.96

Multiply the monthly amount by 2.989 for quarterly, 5.952 for semi-annual or 11.804 for annual.
OPTION 2 TABLE 
 Amount of Annuity Payment for 
each $1,000 applied on the Annuity Date

	
	
	AGE       MALE        FEMALE        AGE           MALE          FEMALE 
---       ----        ------        ---           ----          ------ 
41       $3.88        $3.67          61           $5.25         $4.79 
42        3.92         3.70          62            5.36          4.89 
43        3.97         3.74          63            5.48          4.98 
44        4.01         3.78          64            5.60          5.09 
45        4.06         3.82          65            5.73          5.20 
46        4.12         3.86          66            5.87          5.31 
47        4.17         3.90          67            6.01          5.43 
48        4.23         3.94          68            6.15          5.56 
49        4.28         3.99          69            6.30          5.70 
50        4.35         4.04          70            6.46          5.84 
51        4.41         4.09          71            6.62          5.99 
52        4.48         4.15          72            6.79          6.15 
53        4.55         4.21          73            6.96          6.31 
54        4.62         4.27          74            7.13          6.49 
55        4.70         4.33          75            7.30          6.67 
56        4.78         4.40          76            7.48          6.85 
57        4.86         4.47          77            7.66          7.04 
58        4.95         4.54          78            7.83          7.24 
59        5.05         4.62          79            8.00          7.44 
60        5.15         4.71          80            8.17          7.64

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GENERAL PROVISIONS

	
	
	Quarterly Report   We will send you a report four times each calendar 
                            year until the Annuity Date. It will show the 
                            contract fund, the cash value, the death benefit as 
                            of the report date, the guaranteed minimum death 
                            benefit as of the report date, interest and any 
                            other credits applied during the period covered by 
                            the report, and charges and withdrawals during the 
                            period covered by the report. The report will 
                            include any other data that may be required where 
                            this contract is delivered. You may ask for a report 
                            like this at any time. But, except for the four 
                            reports we send you during the year, we have the 
                            right to charge a fee for each report. 
 
             The Contract   This document forms the whole contract. 
 
   Contract Modifications   Only one of our officers with the rank or title of 
                            vice president or above may agree to modify this 
                            contract, and then only in writing. 
 
        Change of Annuity   You may change your Annuity Date if we consent. Any 
                     Date   such change will be subject to conditions that we 
                            then determine. 
 
    Ownership and Control   Unless we endorse this contract to say otherwise: 
                            (1) the Annuitant (the First Annuitant, if two are 
                            named) is the owner of the contract; (2) while any 
                            Annuitant is living the owner alone is entitled to 
                            any contract benefit and value, and the exercise of 
                            any right or privilege granted by the contract or by 
                            us; (3) if two Annuitants are named and the First 
                            Annuitant dies while the Co-Annuitant is living, 
                            the Co-Annuitant will become the owner; and (4) if 
                            there is no Co-Annuitant and no contingent owner has 
                            been named, on the death of the owner, the 
                            beneficiary becomes the owner for purposes of 
                            Section 72(s) of the Internal Revenue Code of 1986, 
                            as amended, or any successor provision. 
 
                 Currency   Any money we pay, or which is paid to us, must be in 
                            United States currency. 
 
      Misstatement of Age   If any Annuitant's stated sex or date of birth or 
                   or Sex   both are not correct, we will change each benefit 
                            and the amount of each annuity payment to that which 
                            the total purchase payment amounts would have bought 
                            for the correct sex and date of birth. Also, we will 
                            adjust the amount of any payments we have already 
                            made. Here is how we will do it: (1) We will deduct 
                            any overpayments, with interest at 5% a year, from 
                            any payment(s) due then or later. (2) We will add 
                            any underpayments, with interest at 5% a year, to 
                            the next payment we make after we receive proof of 
                            the correct sex and date of birth. 
 
         Incontestability   We will not contest this contract. We consider all 
                            statements made in the application for this contract 
                            to be representations, not warranties. 
 
   Proof of Life or Death   Before we make a payment, we have the right to 
                            require proof of continued life or proof of death, 
                            and any other documentation we need to make the 
                            payment, for any person whose life or death 
                            determines whether or to whom we must make the 
                            payment. 
 
                                     Page 15 
 
(VFM--96)

	
	
	Assignment   We are under no obligation to comply with or honor 
                            an assignment unless we receive it, or a copy of it. 
                            We are not obliged to see that an assignment is 
                            valid or sufficient. If any Annuitant is living 
                            on the Annuity Date and an assignment is in effect 
                            on that date, we have the right to pay the cash 
                            value in one sum to the assignee. 
 
                            This contract may not be assigned to a 
                            tax-qualified retirement plan or program without 
                            our approval. 
 
        Deferring Payment   We will usually pay any death benefit or withdrawal 
                            promptly. If the death benefit or withdrawal is to 
                            be paid from a variable investment option, we have 
                            the right to defer that payment for any period 
                            during which the New York Stock Exchange is closed 
                            for trading (except for normal holiday closing) or 
                            when the Securities and Exchange Commission has 
                            determined that a state of emergency exists which 
                            may make payment of the death benefit or withdrawal 
                            impractical. 
 
                  Changes   We reserve the right, upon 90 days notice to you to: 
 
                              1. restrict or refuse to accept any purchase 
                                 payment; 
 
                              2. establish minimum percentage and dollar amounts 
                                 for invested purchase payment allocations; 
 
                              3. change any or all terms and provisions of the 
                                 Annuity Settlement Tables, but only with 
                                 respect to any portion of an annuity settlement 
                                 deriving from purchase payments made on or 
                                 after the effective date of the change and from 
                                 earnings on those purchase payments; and 
 
                              4. make any changes required by law. 
 
            Participation   This contract is eligible to participate in our 
              (Dividends)   divisible surplus. We do not expect that any 
                            dividends will be payable on or before the Annuity 
                            Date. While any payout provision or arrangement is 
                            in effect, the contract will share in our surplus to 
                            the extent and in the way we decide. 
 
                                     Page 16 
 
(VFM--96)

	
	
	Terminally Ill   We consider someone terminally ill who has a life 
                            expectancy of six months or less. Proof of Terminal 
                            Illness must include a certification by a licensed 
                            physician. 
 
    Eligible Nursing Home   An institution or special nursing unit of a hospital 
                            that meets at least one of the following 
                            requirements: 
 
                              1. It is Medicare approved as a provider of 
                                 skilled nursing care services; 
 
                              2. It is licensed as a skilled nursing home or as 
                                 an intermediate care facility by the state it 
                                 is located in; or 
 
                              3. It meets all the following requirements: 
 
                                 (a) It is licensed as a nursing home by the 
                                     state it is located in; 
 
                                 (b) Its main function is to provide skilled, 
                                     intermediate, or custodial nursing care; 
 
                                 (c) It is engaged in providing continuous room 
                                     and board accommodations to 3 or more 
                                     persons; 
 
                                 (d) It is under the supervision of a registered 
                                     nurse (RN) or licensed practical nurse 
                                     (LPN); 
 
                                 (e) It maintains a daily medical record of each 
                                     patient; and 
 
                                 (f) It maintains control and records for all 
                                     medications dispensed. 
 
                                     Institutions that primarily provide 
                                     residential facilities are not eligible 
                                     nursing homes. 
 
        Eligible Hospital   An institution that meets either of the following 
                            requirements: 
 
                              1. It is accredited as a hospital under the 
                                 Hospital Accreditation Program of the Joint 
                                 Commission on Accreditation of Healthcare 
                                 Organizations; or 
 
                              2. It is legally operated, has 24-hour a day 
                                 supervision by a staff of doctors, has 24-hour 
                                 a day nursing service by registered graduate 
                                 nurses, and either: 
 
                                 (a) It mainly provides general inpatient 
                                     medical care and treatment of sick and 
                                     injured persons by the use of medical, 
                                     diagnostic and major surgical facilities. 
                                     All such facilities are located in it or 
                                     are under its control; or 
 
                                 (b) It mainly provides specialized inpatient 
                                     medical care and treatment of sick or 
                                     injured persons by the use of medical and 
                                     diagnostic facilities (including x-ray and 
                                     laboratory). All such facilities are 
                                     located in it, are under its control, or 
                                     are available to it under a written 
                                     agreement with a hospital (as defined 
                                     above) or with a specialized provider of 
                                     these facilities. 
 
                            An eligible hospital is not an institution, or part 
                            of one, that: (a) furnishes mainly homelike or 
                            custodial care, or training in the routines of daily 
                            living; or (b) is mainly a school. 
 
                                     Page 17 
 
(VFM--96)

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Variable Annuity Contract with Flexible Purchase Payments. Annuity payments starting on Annuity Date. Benefit payable as stated upon death before Annuity Date. Contract values reflect investment results. Market-Value-Adjustment option subject to market-value adjustments. Eligible for annual dividends as stated under Participation.
Page 18
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