Exhibit
4.9


 


Description
of Registrant’s Securities


 


As
of March 27, 2020, the common stock of GWG Holdings, Inc. (“we,” “us,” “our,” or the “Company”)
is the only class of the Company’s securities registered under Section 12 of the Securities Exchange Act of 1934, as amended
(the “Exchange Act”).


 


The
following is a description of our common stock and the material provisions of our Certificate of Incorporation, bylaws and other
agreements to which we and our stockholders are parties. The following is only a summary and is qualified by applicable law and
by the provisions of our Certificate of Incorporation, bylaws and other agreements, copies of which are included as exhibits to
the report to which this Exhibit is attached. 


 


Common
Stock


 


Voting.
The holders of our common stock are entitled to one vote for each outstanding share of common stock owned by that stockholder
on every matter properly submitted to the stockholders for their vote. Stockholders are not entitled to vote cumulatively for
the election of directors.


 


Dividend
Rights. Subject to the dividend rights of the holders of any outstanding series of preferred stock, holders of our common
stock are entitled to receive ratably such dividends and other distributions of cash or any other right or property as may be
declared by our Board of Directors out of our assets or funds legally available for such dividends or distributions.


 


Liquidation
Rights. In the event of any voluntary or involuntary liquidation, dissolution or winding up of our affairs, holders of our
common stock would be entitled to share ratably in our assets that are legally available for distribution to stockholders after
payment of liabilities. If we have any preferred stock outstanding at such time, holders of the preferred stock may be entitled
to distribution and/or liquidation preferences. In either such case, we must pay the applicable distribution to the holders of
our preferred stock before we may pay distributions to the holders of our common stock.


 


Conversion,
Redemption and Preemptive Rights. Holders of our common stock have no conversion, redemption, preemptive, subscription or
similar rights.


 


Limitations
on Directors’ Liability; Indemnification of Directors and Officers


 


Our
Certificate of Incorporation and bylaws contain provisions indemnifying our directors and officers to the fullest extent permitted
by law. In addition, as permitted by Delaware law, our Certificate of Incorporation provides that no director will be liable to
us or our stockholders for monetary damages for breach of certain fiduciary duties as a director. The effect of this provision
is to restrict our rights and the rights of our stockholders in derivative suits to recover monetary damages against a director
for breach of certain fiduciary duties as a director, except that a director will be personally liable for:


 


		●	any
breach of his or her duty of loyalty to us or our stockholders;




 


		●	acts
or omissions not in good faith which involve intentional misconduct or a knowing violation of law;




 


		●	the
payment of dividends or the redemption or purchase of stock in violation of Delaware law; or




 


		●	any
transaction from which the director derived an improper personal benefit.




 


This
provision does not affect a director’s liability under the federal securities laws.


 






     


     


    

 


Article
6 of our corporate bylaws provides that we shall indemnify our directors, officers, employees and agents to the fullest extent
permitted by the Delaware General Corporation Law. Insofar as indemnification for liabilities arising under the Securities Act
of 1933 may be permitted to directors, officers or persons controlling GWG Holdings, Inc. pursuant to the foregoing provisions,
we understand that in the opinion of the SEC such indemnification is against public policy as expressed in the Securities Act
of 1933 and is therefore unenforceable.


 


We
have entered into Indemnification Agreements (the “Indemnification Agreements”) with each of our current directors
and executive officers (collectively, the “Indemnitees”). The Indemnification Agreements clarify and supplement indemnification
provisions already contained in the Company’s bylaws and generally provide that the Company shall indemnify the Indemnitees
to the fullest extent permitted by applicable law, subject to certain exceptions, against expenses, judgments, fines and other
amounts actually and reasonably incurred in connection with their service as a director or officer and also provide for rights
to advancement of expenses and contribution.


 


We
have purchased directors’ and officers’ liability insurance through in order to limit the exposure to liability for
indemnification of directors and officers, including liabilities under the Securities Act of 1933.


 


Provisions
of Our Certificate of Incorporation and Bylaws and Delaware Law that May Have an Anti-Takeover Effect


 


Certain
provisions set forth in our Certificate of Incorporation, in our bylaws and in Delaware law, which are summarized below, may be
deemed to have an anti-takeover effect and may delay, deter or prevent a tender offer or takeover attempt that a stockholder might
consider to be in its best interests, including attempts that might result in a premium being paid over the market price for the
shares held by stockholders.


 


Classified
Board and Related Board Matters. In early 2019, our Board of Directors and stockholders approved an amendment to our
bylaws that established a classified Board of Directors in which directors are divided into three classes, to be designated as
Class I, Class II and Class III. Each class will serve staggered, three year terms. The terms of office of Class II directors
will expire at the annual meeting of stockholders to be held in 2020. The terms of office of the Class III directors will expire
at the annual meeting of stockholders to be held in 2021. The terms of office of the Class I directors will expire at the annual
meeting of stockholders to be held in 2022.


 


In
addition to establishing a classified board, the Bylaw amendment provides that newly created directorships resulting from any
increase in the authorized number of directors and any vacancies occurring on the Board be filled by the affirmative vote of a
majority of the remaining members of the Board, provides that directors may be removed only for cause and only by the affirmative
vote of the holders of two-thirds or more of the outstanding voting power of the Company, and requires a two-thirds supermajority
approval of stockholders for stockholders to adopt further amendments to provisions of the Bylaws that govern (A) the number,
qualification and term of office of directors, (B) the filling of newly created directorships and vacancies, (C) the resignation
and removal of directors, (D) the right to indemnification for directors and other covered persons, and (E) the requisite approval
for certain future bylaw amendments.


 


Advance
Notice Provisions for Raising Business or Nominating Directors. Under our Bylaws, if a stockholder wishes to propose an item
of business to be considered at our annual stockholders’ meeting (including director nominations), that stockholder must
deliver notice of the proposal or proposed director’s name at our principal executive offices not less than 90 nor more
than 120 calendar days prior to the first anniversary of the date on which we first mailed proxy materials for the preceding year’s
annual meeting.


 


If
the date of our annual stockholders’ meeting is advanced more than 30 calendar days prior to or delayed by more than 60
calendar days after the anniversary of the most recent annual stockholders’ meeting, timely notice of stockholder proposals
and stockholder nominations for directors may be delivered to or mailed and received at our principal executive offices not less
than 90 nor more than 120 calendar days prior to the date of such annual meeting, or if the first public announcement of the date
of such annual meeting is less than 100 days prior to the date of such annual meeting, not later than the close of business on
the 10th calendar day following the day on which we first make a public announcement of the date of such meeting.


 


Notices
of stockholder proposals and stockholder nominations for directors must comply with the informational and other requirements set
forth in our Bylaws as well as applicable statutes and regulations.


 






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Blank
Check Preferred Stock. Under our Certificate of Incorporation, our Board of Directors has the authority to fix by resolution
the terms and conditions of one or more series of preferred stock and provide by resolution for the issuance of shares of such
series.


 


We
believe that the availability of our preferred stock, in each case issuable in series, and additional shares of common stock could
facilitate certain financings and acquisitions and provide a means for meeting other corporate needs which might arise. The authorized
shares of our preferred stock, as well as authorized but unissued shares of common stock, will be available for issuance without
further action by our shareholders, unless shareholder action is required by applicable law or the rules of any stock exchange
on which any series of our stock may then be listed, or except as may be provided in the terms of any preferred stock created
by resolution of our Board of Directors.


 


These
provisions give our Board of Directors the power to approve the issuance of a series of preferred stock, or additional shares
of common stock, that could, depending on its terms, either impede or facilitate the completion of a merger, tender offer or other
takeover attempt. For example, the issuance of new shares of preferred stock might impede a business combination if the terms
of those shares include voting rights which would enable a holder to block business combinations or, alternatively, might facilitate
a business combination if those shares have general voting rights sufficient to cause an applicable percentage vote requirement
to be satisfied.


 


Special
Meetings of Stockholders. Our bylaws provide that special meetings of stockholders may be called only by the chairman or by
a majority of the members of our board. Stockholders are not permitted to call a special meeting of stockholders, to require that
the chairman call such a special meeting, or to require that our board request the calling of a special meeting of stockholders.


 


Delaware
Takeover Statute


 


In
general, Section 203 of the Delaware General Corporation Law prohibits a Delaware corporation that is a public company from engaging
in any “business combination” (as defined below) with any “interested stockholder” (defined generally
as an entity or person beneficially owning 15% or more of the outstanding voting stock of the corporation and any entity or person
affiliated with such entity or person) for a period of three years following the date that such stockholder became an interested
stockholder, unless: (1) prior to such date, the Board of Directors of the corporation approved either the business combination
or the transaction that resulted in the stockholder becoming an interested stockholder; (2) on consummation of the transaction
that resulted in the stockholder becoming an interested stockholder, the interested stockholder owned at least 85% of the voting
stock of the corporation outstanding at the time the transaction commenced, excluding for purposes of determining the number of
shares outstanding those shares owned (x) by persons who are directors and also officers and (y) by employee stock plans in which
employee participants do not have the right to determine confidentially whether shares held subject to the plan will be tendered
in a tender or exchange offer; or (3) on or subsequent to such date, the business combination is approved by the Board of Directors
and authorized at an annual or special meeting of stockholders, and not by written consent, by the affirmative vote of at least
two-thirds of the outstanding voting stock that is not owned by the interested stockholder.


 


Section
203 of the Delaware General Corporation Law defines “business combination” to include: (1) any merger or consolidation
involving the corporation and the interested stockholder; (2) any sale, transfer, pledge or other disposition of 10% or more of
the assets of the corporation involving the interested stockholder; (3) subject to certain exceptions, any transaction that results
in the issuance or transfer by the corporation of any stock of the corporation to the interested stockholder; (4) any transaction
involving the corporation that has the effect of increasing the proportionate share of the stock of any class or series of the
corporation beneficially owned by the interested stockholder; or (5) the receipt by the interested stockholder of the benefit
of any loans, advances, guarantees, pledges or other financial benefits provided by or through the corporation.


 


Potential
for Anti-Takeover Effects


 


While
the foregoing provisions of our Certificate of Incorporation, bylaws and Delaware law may have an anti-takeover effect, these
provisions are intended to enhance the likelihood of continuity and stability in the composition of our Board of Directors and
in the policies formulated by the board, and to discourage certain types of transactions that may involve an actual or threatened
change of control. In that regard, these provisions are designed to reduce our vulnerability to an unsolicited acquisition proposal.
The provisions also are intended to discourage certain tactics that may be used in proxy fights. However, such provisions could
have the effect of discouraging others from making tender offers for our shares and, as a consequence, they also may inhibit fluctuations
in the market price of our common stock that could result from actual or rumored takeover attempts. Such provisions also may have
the effect of preventing changes in our management.


 




 


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