Document:

2014 10-Q 3Q Exhibit 10.1 Severance Plan Amendment and Restatement

Exhibit 10.1

CERTIFICATION OF SEVERANCE PLAN AMENDMENT AND RESTATEMENT
Effective as of October 1, 2014, except where otherwise stated, the Severance Pay Plan of Johnson & Johnson and U.S. Affiliated Companies is hereby amended and restated in its entirety in the form attached hereto and incorporated herein by reference.

Dated:  October 29, 2014    /s/ J. A. Papa        
J. A. Papa
Member 
Pension and Benefits Committee of Johnson & Johnson 

SEVERANCE PAY PLAN
OF
JOHNSON & JOHNSON AND U.S. AFFILIATED COMPANIES

Amended and Restated as of October 1, 2014

10/1/2014 Restatement

ARTICLE 1    
General
		
	1.1
	Purpose – The Severance Pay Plan of Johnson & Johnson and U.S. Affiliated Companies was established by Johnson & Johnson to provide severance pay under certain circumstances to Eligible Employees whose employment with a U.S. Affiliated Company is terminated under a Severance Event described in Article 4.1a.  The sole purpose for payment of benefits under this Plan is to assist Participants when they are unemployed during the transition period when they are attempting to secure a new position.

		
	1.2
	Funding – Plan benefits shall be paid from the general assets of U.S. Johnson & Johnson Companies.

		
	1.3
	Effective Date – The Plan as amended and restated herein shall be effective as of October 1, 2014.

		
	1.4
	Prior Documents – This Plan shall supersede all prior severance pay plans and any other policies or practices pertaining to severance pay in effect prior to the Effective Date.

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ARTICLE 2    
Definitions
		
	2.1
	Administrator – The “Administrator” of this Plan is the Pension and Benefits Committee of Johnson & Johnson (or a successor to such committee).

		
	2.2
	Appeal – An “Appeal” is a request filed with the Committee seeking review of the Claims Administrator’s denial of a Claim.

		
	2.3
	Base Pay – “Base Pay” is an Eligible Employee’s regular weekly base rate of pay in effect on the date the Eligible Employee’s employment terminates as a result of a Severance Event.  The regular weekly base rate of pay for an hourly or part-time employee shall be the product of the employee’s hourly rate of pay and his standard weekly work hours, determined as of the employee’s termination date.  For an Eligible Employee whose compensation is based solely on commissions, “Base Pay” means the Eligible Employee’s draw against such commissions, expressed as a weekly amount, and does not include any compensation in excess of such draw.

		
	2.4
	Claim – A “Claim” is an application for benefits filed with the Claims Administrator.

		
	2.5
	Claims Administrator – The “Claims Administrator” is the organization, entity, or person that has been designated by the Administrator to determine Claims under Article 7 hereto.

		
	2.6
	Committee – The “Committee” is the Benefit Claims Committee appointed by the Administrator.

		
	2.7
	Eligible Employee – An “Eligible Employee” is a regular, full-time or part-time salaried, commissioned, or hourly employee of a U.S. Affiliated Company who is not a member of a collective bargaining unit (unless the employee is included in the Plan through an express provision in a collective bargaining agreement).  An employee’s full-time or part-time status shall be determined by the personnel practices and policies of the U.S. Affiliated Company employing the person.  A “regular” employee shall mean an employee who is hired for an indefinite duration and who is on the regular payroll of a U.S. Affiliated Company.  “Eligible Employee” shall in no event include an individual whose period of employment with a U.S. Affiliated Company is intended to be for a limited duration, including but not limited to, co-ops, interns, graduate and post-graduate fellows, and project-specific positions.

A person retained to perform services for a Johnson & Johnson Company (whether for a definite or indefinite duration) who is classified by that company as a fee-for-service worker, an independent contractor or a similar type of worker (rather than an employee) shall not be an Eligible Employee under this Plan, regardless of such person’s status under common law and regardless of whether the person is or has been determined by a government agency or board or a court or arbitrator or other third party to be an employee for any other purpose, including, but not limited to, for purposes of any employee benefit 

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plan of a Johnson & Johnson Company (including this Plan) or for purposes of federal, state or local tax withholding, employment taxes or employment law.  A person shall also not be an Eligible Employee under this Plan if (i) that person commenced employment with a Johnson & Johnson Company as a result of an acquisition, merger, or other similar transaction involving a Johnson & Johnson Company and the person’s Pre-Acquisition Employer, and (ii) such person is entitled to receive payments in the nature of severance or retention pay under a plan, agreement, policy, program, or arrangement maintained by a Johnson & Johnson Company or the person’s Pre-Acquisition Employer.
		
	2.8
	Johnson & Johnson Company – A “Johnson & Johnson Company” is (i) Johnson & Johnson or (ii) any other entity that is a direct or indirect subsidiary, related entity, or affiliate of Johnson & Johnson.  A Johnson & Johnson Company shall also include any predecessor to such entity.

		
	2.9
	Participant – A “Participant” is an Eligible Employee whose employment with a U.S. Affiliated Company is terminated as a result of a Severance Event described in Article 4.1a and who meets the other eligibility conditions for the receipt of benefits under this Plan.

		
	2.10
	Pension and Benefits Committee – The “Pension and Benefits Committee” is a committee established by the Board of Directors of Johnson & Johnson and constituted to administer and supervise the Plan in accordance with Article 6.  The Pension and Benefits Committee shall be governed by the terms of the Pension and Benefits Committee Charter.

		
	2.11
	Plan – The “Plan” means the Severance Pay Plan of Johnson & Johnson and U.S. Affiliated Companies as set forth herein and as amended from time to time.

		
	2.12
	Plan Sponsor – The “Plan Sponsor” is Johnson & Johnson.

		
	2.13
	Plan Year – A “Plan Year” is the calendar year.

		
	2.14
	Pre-Acquisition Employer – “Pre-Acquisition Employer” is the entity that employed a person immediately before such individual became an employee of a Johnson & Johnson Company as a result of an acquisition, merger, or other transaction between a Johnson & Johnson Company and such entity.

		
	2.15
	Proceeding – A “Proceeding” is any action under which an Eligible Employee or other person claims the right to receive Plan benefits, other than a Claim or an Appeal.

		
	2.16
	Related Company Severance Plan – A “Related Company Severance Plan” is any other plan, program, policy, employment agreement, or arrangement providing severance benefits that is maintained by or otherwise involves a Johnson & Johnson Company or a Pre-Acquisition Employer (or an affiliate thereof).

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	2.17
	Separation Agreement and Release – A “Separation Agreement and Release” is a separation agreement that contains a general release of claims in favor of all Johnson & Johnson Companies and all related entities, affiliates, and persons, and such other terms and conditions as may be contained in a separation agreement required on a general basis or in a particular case by the U.S. Affiliated Company employing a particular Eligible Employee at the time his or her employment is terminated.  A Separation Agreement and Release may consist of one or more separate documents and may require the execution of one or more supplemental releases.  A Separation Agreement and Release shall not be effective under this Plan unless each component document has been properly executed and each document has become effective.  The content of any particular Separation Agreement and Release and its terms and conditions shall be determined by and be subject to Article 4 and the business judgment of the U.S. Affiliated Company employing the Eligible Employee at the time his or her employment is terminated.

		
	2.18
	Severance Event – A “Severance Event” is an event which results in eligibility for benefits under this Plan, as defined in Article 4.1.

		
	2.19
	U.S. Affiliated Company – A “U.S. Affiliated Company” is a Johnson & Johnson Company (i) that is organized under the laws of any State of the United States and has its principal place of business in the United States (excluding Puerto Rico and other U.S. territories), and (ii) that has elected to participate in the Plan. A list of U.S. Affiliated Companies is set forth in Appendix A as of the date set forth therein.  

		
	2.20
	Years of Service – Subject to the exclusions in this Article 2.20, “Years of Service” means an Eligible Employee’s full years of Credited Service determined and credited under the terms of the Consolidated Retirement Plan of Johnson & Johnson as of the date the Eligible Employee’s employment terminates as a result of a Severance Event, provided, however, that Years of Service shall include service with a Johnson & Johnson Company prior to age 21 and shall include service only through the date on which the Eligible Employee’s employment terminates (not the end of the month in which the termination occurs).  Years of Service shall be measured in full years, and partial years shall be disregarded.

Years of Service shall in no event include the following:
		
	a.
	Periods of employment for which an Eligible Employee has received payments in nature of severance pay under this Plan or a Related Company Severance Plan;

		
	b.
	Periods of employment that are, or will be, taken into account in determining payments in the nature of severance pay that is payable to an Eligible Employee under a Related Company Severance Plan;

		
	c.
	Periods of employment that precede the date with respect to which a Johnson & Johnson Company or a Pre-Acquisition Employer pays an Eligible Employee any retention or other payment in lieu of severance pay in connection with an acquisition, merger, or other similar transaction; and

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	d.
	Periods of employment that precede the date on which an Eligible Employee previously terminated employment with a Johnson & Johnson Company or a Pre-Acquisition Company, provided the Eligible Employee was not eligible to receive payments in the nature of severance pay under this Plan or a Related Company Severance Plan at the time of such termination.

Periods of service with a Pre-Acquisition Employer shall be included in an Eligible Employee’s Years of Service only if, and to the extent, approved by the applicable Johnson & Johnson Company and the Administrator.  Pursuant to Article 6.4, the Administrator, or its representative, shall have the sole and binding authority to determine all questions regarding an Eligible Employee’s Years of Service, and such determination shall be final and binding for all purposes under the Plan.

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ARTICLE 3    
Eligibility for Participation
		
	3.1
	Eligibility Requirements – Eligibility for participation in the Plan is available to all Eligible Employees as defined in Article 2.7 as of the Effective Date.

		
	3.2
	Cessation of Eligibility – Eligibility for participation in the Plan shall cease on the earliest to occur of:  (i) the date on which an Eligible Employee ceases to be eligible to receive benefits pursuant to Article 4.1b or 4.1c, 4.3, or 5.4; (ii) the date on which the Plan terminates; or (iii) the date on which the Eligible Employee has received the full benefit payable under Article 5.

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ARTICLE 4    
Eligibility for Benefits
		
	4.1
	Conditions of Benefits Eligibility

		
	a.
	An Eligible Employee may be eligible for the benefits provided in Article 5 if termination of employment with a U.S. Affiliated Company is permanent and results from any one of the following Severance Events:

		
	i.
	position elimination;

		
	ii.
	an Eligible Employee’s inability to meet the requirements of his or her position (as determined by management of the U.S. Affiliated Company employing the Eligible Employee at the time of termination);

		
	iii.
	reduction in force; or

		
	iv.
	for such other reasons as the Pension and Benefits Committee may, in its sole discretion, deem appropriate.

		
	b.
	An Eligible Employee is not eligible for the benefits provided in Article 5 if his or her employment is terminated as a result of any one of the following events:

		
	i.
	voluntary termination of employment by resignation, retirement or otherwise (unless the Pension and Benefits Committee in its sole discretion deems that severance benefits shall be payable under a voluntary workforce reduction program sponsored by a U.S. Affiliated Company);

		
	ii.
	the merger, divestiture, or other sale or disposition of all or part of a business unit or the transfer of all or part of a business function to an unaffiliated entity if the Eligible Employee is offered a position with the unaffiliated entity and the primary work location for such position is no more than 50 miles from the Eligible Employee’s primary work location immediately prior to such transaction;

		
	iii.
	the refusal of a position with a Johnson & Johnson Company, which, in the sole opinion of the Pension and Benefits Committee, is comparable (in terms of base pay or salary and responsibilities) to the Eligible Employee’s current position and for which the primary work location is no more than a 50-mile radius from the Eligible Employee’s current primary work location, or the acceptance of employment with a Johnson & Johnson Company;

		
	iv.
	layoff with recall rights;

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	v.
	discharge for (i) misconduct, (ii) a violation of applicable rules, policies, and/or practices, or (iii) conduct considered by the Pension and Benefits Committee to be detrimental to a Johnson & Johnson Company; or

		
	vi.
	for such other reasons as the Pension and Benefits Committee, in its sole discretion, determines to be cause for denying or discontinuing benefits under this Plan.

		
	c.
	As a condition of eligibility for both the commencement and the continuation of the receipt of benefits under this Plan, an Eligible Employee must not be conducting any work for a Johnson & Johnson Company (except for any work that may be requested pursuant to Article 4c(ii) below) or a competitor of the U.S. Affiliated Company employing the Eligible Employee at the time his or her employment is terminated, and must have fulfilled and be in compliance with all of his or her obligations to the Johnson & Johnson Companies, including but not limited to: (a) having returned all documents and other property related to any Johnson & Johnson Company, (b) being and remaining in full compliance with the confidentiality obligations and any non-solicitation and non-competition obligations of the applicable Employee Secrecy Agreement or similar agreement, and (c) not having any outstanding monetary obligation to any Johnson & Johnson Company (unless, in States in which such deductions are permissible, an agreement has been reached between the U.S. Affiliated Company employing the Eligible Employee at the time of termination and the Eligible Employee for sufficient deductions to be taken from the benefits to pay the obligation in full).  In addition, as a condition of eligibility for both the commencement and the continuation of the receipt of benefits under Formula 2 of this Plan (in lieu of and not in addition to the benefits provided for under Formula 1), an Eligible Employee must execute a Separation Agreement and Release containing a general release of claims in favor of all Johnson & Johnson Companies and related entities and persons, in a form satisfactory to the U.S. Affiliated Company employing the Eligible Employee at the time his or her employment is terminated, and the Separation Agreement and Release must become effective.  A Separation Agreement and Release may consist of one or more separate documents and may require the execution of one or more supplemental releases.  A Separation Agreement and Release shall not be effective under this Plan unless each component document has been properly executed and each document has become effective.  In the exercise of its business judgment, the management of the U.S. Affiliated Company employing the Eligible Employee at the time of termination may also require in the Separation Agreement and Release that the Eligible Employee:

		
	i.
	not be conducting any work without prior written consent of the U.S. Affiliated Company employing the Eligible Employee at the time of termination, even if the work is not for a Johnson & Johnson Company or a competitor of a Johnson & Johnson Company;

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	ii.
	consult at reasonable times upon reasonable notice and to cooperate fully with any Johnson & Johnson Company in connection with any business matter, investigation or legal matter as to which the Eligible Employee may have relevant information and to do so without further compensation if Plan benefits are being paid at the time the assistance is provided;

		
	iii.
	not disparage any Johnson & Johnson Company or any related entity or person and/or not apply for future work with any Johnson & Johnson Company and waive any right to conduct such work;

		
	iv.
	agree that the employee contribution for any continuing benefit coverage (e.g., medical) may be deducted from the severance pay; and

		
	v.
	agree to such other terms and conditions as the management of the U.S. Affiliated Company employing the Eligible Employee at the time of termination, in the exercise of its business judgment, decides should be included in the Separation Agreement and Release it provides to the Eligible Employee.

Once an Eligible Employee has signed a Separation Agreement and Release and that Separation Agreement and Release has become effective, the Eligible Employee is no longer eligible to receive benefits under Formula 1 of the Plan.
		
	d.
	No individual shall be eligible for benefits under this Plan with respect to any period for which he or she is eligible to receive benefits under a Related Company Severance Plan.  No provision of this Plan shall be interpreted to provide benefits under more than one Plan for any period.

		
	4.2
	Severance Pay for Employees in Collective Bargaining Units

Severance pay, if any, for employees covered by a collective bargaining agreement will be governed by the specific provisions of such agreement.  Unless a collective bargaining agreement specifically and expressly incorporates this Plan, employees covered by a collective bargaining agreement will not be eligible to participate in this Plan.
		
	4.3
	Determination of Eligibility

The Administrator shall, in its sole discretion, determine any factual questions concerning an Eligible Employee’s eligibility for or entitlement to benefits and shall have absolute discretion in interpreting and applying the terms of this Plan. The Pension and Benefits Committee may impose such other eligibility conditions on payment of benefits hereunder as it may deem advisable.

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ARTICLE 5    
Amount and Payment of Benefits
		
	5.1
	Amount of Benefits

		
	a.
	Subject to the provisions of Articles 5.1c, d and e, a Participant shall be eligible to receive severance pay benefits in accordance with the following Severance Pay Schedule:

	
			
	

SEVERANCE PAY SCHEDULE

	

Formula 1 – Basic Severance Pay – Applicable only if Participant Does Not Sign a Separation Agreement and Release that Becomes Effective (see Article 5.1b):

Total Benefit  = Four (4) weeks of Base Pay (without regard to Years of Service) 

	

Formula 2 – Enhanced Severance Pay – Applicable only if Participant Signs a Separation Agreement and Release that Becomes Effective (see Article 5.1b):

Total Benefit = Two (2) weeks of Base Pay per Year of Service, subject to the following Minimum and Maximum Benefits:

	Minimum Benefit:
	Employee Type
	Weeks of Base Pay

	Non-exempt employees
	

6 Weeks

	Exempt employees with Job Grade below 30
	

8 Weeks

	Exempt employees with Job Grade of 30-39
	

12 Weeks

	Exempt employees with Job Grade of 40-50
	

26 Weeks

	Exempt employees with: (a) Job Grade of 51 or higher or (b) Base Pay at or exceeding the approved maximum for Job Grade 50
	52 Weeks

	             
Maximum Benefit:
	

All Eligible Employees
	

104 Weeks

 
		
	b.
	Each Participant shall be provided with a Separation Agreement and Release by the U.S. Affiliated Company employing him or her at the time of termination. The Separation Agreement and Release will become effective if it is executed and 

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returned by the Participant within the time period specified therein and not revoked by the Participant within the period for revocation stated therein.  If the Participant does not execute a Separation Agreement and Release that becomes effective, the Participant’s severance pay benefit under this Plan shall be determined solely under Formula 1 of the above Severance Pay Schedule.  If a Participant does execute a Separation Agreement and Release that becomes effective, the Participant’s severance pay benefit under this Plan shall be determined solely under Formula 2 of the above Severance Pay Schedule.
		
	c.
	A Participant who has previously received severance payments from a Johnson & Johnson Company in connection with his or her separation from employment will be eligible to receive severance benefits under this Plan, subject to Article 2.20 regarding previous severance payments from a Johnson & Johnson Company.

		
	d.
	The Pension and Benefits Committee may, in its sole discretion, authorize a reduction in severance pay to a Participant hereunder by the amount of any payment that the Participant is entitled to receive for the period during which severance pay would otherwise be payable to the Participant under the Plan: (i) under any confidentiality, non-solicitation and/or non-competition agreement the Participant has signed, (ii) as unemployment compensation, or (iii) as any other type of wage replacement benefit to which the Participant is entitled by law, pursuant to the terms of a benefit plan or contract, or from a source to which a Johnson & Johnson Company contributes.

		
	e.
	If a Participant ceases to meet the applicable requirements for eligibility for or entitlement to the receipt of benefits under this Plan, no further payments will be made.

		
	5.2
	Other Benefits

A Participant’s eligibility, if any, for other benefits while severance pay is being received will be determined in accordance with the terms of the official plan documents concerning those benefits.
		
	5.3
	Schedule and Timing of Severance Pay Payments

Severance pay shall be paid in installments at the Participant’s last regular base pay rate per payroll period, until all benefits have been paid, and, to the extent practicable, shall be paid on the Participant’s normal payroll dates.
		
	5.4
	Cessation of Benefits

Cessation of benefits shall occur on the earliest of (i) the date on which a Participant has received the full benefit payable under Section 5.1; (ii) the date on which benefit payments have been discontinued due to failure to abide by a condition imposed by 

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Article 4.1 or 4.3 or payments have otherwise ceased or been offset under the terms of the Plan; or (iii) the date on which the Plan terminates.
		
	5.5
	No Vested Rights

Nothing in this Plan shall be construed as giving any Eligible Employee, Participant or beneficiary a nonforfeitable or vested right to any benefits hereunder.
		
	5.6
	Time Limits Affecting Benefit Entitlement

Prior to commencing a Proceeding asserting a claim of entitlement to Plan benefits, an Eligible Employee must file with the appropriate decision maker both a Claim and an Appeal that are timely under Article 7.1.  Any Proceeding asserting a claim of entitlement to Plan benefits must be commenced within 180 days after the date on which the Committee issues its decision on the Eligible Employee’s Appeal.  The failure either (i) to submit both a timely Claim and a timely Appeal, or (ii) to commence a Proceeding within the time period provided for in this Article 5.6 will result in the loss of any otherwise existing right to contested Plan benefits, unless the Committee in its discretion determines that extenuating circumstances require a different result.
		
	5.7
	Death of Participant

If a Participant dies prior to payment of all severance pay due under the Plan, the Participant’s surviving spouse, domestic or civil union partner, or estate (if the Participant is unmarried or does not have a surviving spouse or domestic or civil union partner) shall be entitled to receive the balance of the severance pay, but all benefits under Article 5.2 shall cease upon the Participant’s death, except to the extent otherwise provided in the applicable plan or as required by law.

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ARTICLE 6    
Administration
		
	6.1
	The Employment Retirement Income Security Act of 1974

This Plan is a welfare plan as defined in the Employee Retirement Income Security Act of 1974 (“ERISA”).
		
	6.2
	Plan Sponsor

Johnson & Johnson is the Plan Sponsor:
Address:    One Johnson & Johnson Plaza 
        New Brunswick, New Jersey 08933
Telephone:    (732) 524-0400
		
	6.3
	Named Fiduciary and Plan Administrator

The Pension and Benefits Committee shall be the “Named Fiduciary” within the meaning of Section 402(a) of the Employee Retirement Income Security Act of 1974, as amended, and shall carry out the duties of the “Administrator” of the Plan as required by ERISA.  The Pension and Benefits Committee shall have the responsibilities and powers set forth in this Article 6.
Address:    One Johnson & Johnson Plaza 
        New Brunswick, New Jersey 08933
Telephone:    (732) 524-0400
		
	6.4
	Powers and Duties of the Administrator

The Pension and Benefits Committee, or its duly authorized representatives, shall have the authority to control and manage the operation and administration of the Plan, including all rights and powers necessary or convenient to carry out its functions hereunder, whether or not such rights and powers are specifically enumerated herein.  Without limiting the generality of the foregoing, and in addition to other powers set forth in this Plan, the Pension and Benefits Committee shall have the following express authority:
		
	a.
	To have the sole and complete discretion to construe and interpret the Plan, to resolve ambiguities and inconsistencies, to decide all questions concerning Base Pay, Years of Service, eligibility for  participation and entitlement to benefits, and to decide any other questions concerning the interpretation or application of Plan terms;

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	b.
	To prescribe procedures to be followed by Eligible Employees for applying for benefits hereunder;

		
	c.
	To prepare and distribute, in such manner as the Pension and Benefits Committee determines to be necessary or appropriate, information relating to the Plan;

		
	d.
	To receive from any Johnson & Johnson Company and from Eligible Employees such information as shall be necessary for proper administration of the Plan;

		
	e.
	To consult with counsel, accountants, actuaries, or other advisors (who may also be advisors for any Johnson & Johnson Company in the discharge of its responsibilities); and

		
	f.
	To delegate its authorities and discretion hereunder.

		
	6.5
	Pension and Benefits Committee Members as Eligible Employees and Participants

Members of the Pension and Benefits Committee may be Eligible Employees and Participants but they shall not make any discretionary decision or take any actions affecting themselves as Eligible Employees or Participants, unless such decision or action is upon a matter that affects all other similarly situated Eligible Employees or Participants, and confers no special right, benefit, or privilege on the members of the Pension and Benefits Committee not simultaneously conferred upon all other similarly situated Eligible Employees or Participants.
		
	6.6
	Records and Reports

The Administrator shall take any actions it deems necessary or appropriate to comply with laws and regulations relating to maintenance of records, notification to Participants and Eligible Employees, reports to the United States Department of Labor, and all other requirements applicable to the Plan.

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ARTICLE 7    
Claims and Appeals
		
	7.1
	Claim and Appeal Procedures

		
	a.
	An Eligible Employee (or his or her duly authorized representative) who wishes to assert a claim for Plan benefits may file with the Claims Administrator a signed written Claim that is timely (as described in this Article 7.1a), that specifically identifies the Plan benefits claimed and that describes all facts and circumstances entitling the Eligible Employee to payment of those benefits.  In the event an Eligible Employee has not received a Separation Agreement and Release providing for the payment of Plan benefits (or has received a Separation Agreement and Release that provides for the payment of Plan benefits in an amount that is less than the amount he or she believes to be due), the Eligible Employee must file a Claim with the Claims Administrator within one hundred-eighty (180) days after the Severance Event.  In all other cases, the Eligible Employee must file a Claim with the Claims Administrator no later than one hundred-eighty (180) days after the date on which payments under the Plan were discontinued or reduced.

		
	b.
	The Claims Administrator shall notify the Eligible Employee of its decision within ninety (90) days after receipt of a Claim or, if special circumstances exist, within one hundred-eighty (180) days of receipt of the Claim.  If the Claim is denied in whole or in part, the Claims Administrator’s notice of denial shall be in writing and shall give:

		
	i.
	the specific reasons for denial with specific reference to pertinent Plan provisions upon which the denial was based;

		
	ii.
	a description of any additional materials or information necessary for the Eligible Employee to perfect the Claim and an explanation of why the materials or information are necessary; and

		
	iii.
	an explanation of the Plan’s Appeal procedure.

		
	c.
	For a period of sixty (60) days after receiving the Claims Administrator’s notice of denial, an Eligible Employee or his or her duly authorized representative may:

		
	i.
	obtain and review pertinent documents; and

		
	ii.
	submit a written Appeal to the Committee for review of the denial.

		
	d.
	An Eligible Employee submitting an Appeal shall be allowed to submit issues and comments in writing to the Committee.

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	e.
	The Committee shall afford any Eligible Employee requesting an Appeal a full and fair review of the decision denying the Eligible Employee’s Claim; and the Committee in its sole discretion, may hold a hearing to review any or all issues raised by the Eligible Employee on Appeal.  The Committee shall issue a written decision to the Eligible Employee on the Appeal within sixty (60) days after receipt of the Appeal (unless special circumstances, such as the need to hold a hearing, require an extension of time, in which case a decision shall be rendered as soon as possible but no later than one hundred-twenty (120) days after the filing of the Appeal).  In the event of an adverse decision, the Committee’s decision shall give specific reasons for the decision, written in a manner calculated to be understood by the Eligible Employee and shall include specific references to the pertinent Plan provisions upon which the decision is based.

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ARTICLE 8    
Miscellaneous
		
	8.1
	No Guarantee of Employment, Etc.

Neither the creation of the Plan nor anything contained herein shall be construed as giving any Employee any right to remain in the employ of any Johnson & Johnson Company (or otherwise alter the employment at will relationship), any equitable or other interest in the assets, business, or affairs of any Johnson & Johnson Company, or any right to challenge any action taken or policy adopted or pursued by any Johnson & Johnson Company.
		
	8.2
	Controlling Law

The terms of the Plan and the rights and duties of all parties hereto or persons affected hereby shall be construed and determined according to ERISA to the extent applicable.  It is intended that the Plan shall be an employee welfare benefit plan as described in Section 3(1) of ERISA.  In the event of any ambiguity in the Plan, the interpretation of the Plan shall be within the sole discretion of the Pension and Benefits Committee, and its interpretation shall be binding for all purposes.
		
	8.3
	Severability

If any provision of the Plan is held illegal or invalid for any reason, such illegality or invalidity shall not affect the remaining parts of the Plan, and the Plan shall be construed and enforced as if the illegal and invalid provision were not included.

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ARTICLE 9    
Amendment and/or Termination
		
	9.1
	Right to Amend or Terminate

Johnson & Johnson, as Plan Sponsor, reserves the absolute right to amend or terminate this Plan, at any time and in whole or in part, without prior consultation or notice to Eligible Employees and Participants of the Plan.
		
	9.2
	Termination or Amendment Procedure

The right to amend or terminate this Plan may be exercised by resolution adopted by the Pension and Benefits Committee or by its duly authorized representatives.

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ARTICLE 10    
Internal Revenue Code Section 409A
		
	10.1
	General.   Notwithstanding any other provision of the Plan to the contrary, the terms of this Article 10 shall apply to the payment of all Plan benefits on or after January 1, 2009 (“409A Amounts”).  This Article 10 is intended to ensure that the terms of the Plan comply with Section 409A of the Internal Revenue Code of 1986, as amended, and the regulations and other guidance issued thereunder (“Section 409A”).  The provisions of this Article 10 and any other section of the Plan that applies to the payment of benefits on or after January 1, 2009, shall be limited to those terms permitted under Section 409A.  Any terms of the Plan that are not permitted under Section 409A shall be automatically modified and limited to the extent necessary to comply with Section 409A, but only to the extent such modification or limitation is permitted under Section 409A.

		
	10.2
	Payment of 409A Amounts.  In addition to the conditions for benefit eligibility set forth in Section 4.1, an Eligible Employee shall not be entitled to a payment of benefits under the Plan unless the termination of employment with a U.S. Johnson & Johnson Company constitutes a “Separation from Service” within the meaning of Treasury Regulations Section 1.409A-1(h) and other applicable rules under Section 409A.  Subject to the limitations applicable to Specified Employees set forth in this Article 10, a Participant’s benefit under the Plan shall be paid on the Participant’s normal payroll dates commencing as soon as practicable within the 60-day period beginning after the Participant’s Separation from Service.  In no event shall the Participant (or the Participant’s beneficiary in the event of the Participant’s death) have any influence on any determination as to the tax year in which the benefit is paid.

		
	10.3
	Right to Separate Payments – Short-Term Deferrals.  Each installment of a Participant’s Severance pay under the Plan shall be treated as a separate payment for purposes of Section 409A.  Consequently, a Participant’s Severance pay under this Plan shall be treated as a series of separate payments and not a single payment of the aggregate amount.  Each separate payment that is required to be paid and is actually paid during the Short-Term Deferral Period is intended to be exempt from the requirements of Section 409A under the exemption applicable to short-term deferrals.  For purposes of this Plan, the Short-Term Deferral Period shall be the period beginning on the date of the Participant’s Separation from Service and ending on the date that is 2-1/2 months after the end of the taxable year in which the Participant’s Separation from Service occurred.

		
	10.4
	Severance Pay Exemption.  It is intended that payments under the Plan that must be paid and that are actually paid after the Short-Term Deferral Period shall be exempt from Section 409A to the extent that such payments (i) do not exceed two times the lesser of (A) the Participant’s total annual compensation based on the Participant’s annual rate of pay for the prior taxable year (adjusted for any increases that were expected to continue indefinitely); or (B) the limitation under Code Section 401(a)(17) for the year of the Participant’s Separation from Service within the meaning of Section 409A, and (ii) are 

19
10/1/2014 Restatement

paid in full no later than December 31 of the second year following the year of the Participant’s Separation from Service.
		
	10.5
	Limitation for Specified Employees.  No portion of any payment under the Plan that is not exempt from Section 409A under Section 10.3 or 10.4, above, shall be made to a Specified Employee before the expiration of the six-month period specified in Code Section 409A(a)(2) and the regulations thereunder.  Any payment that would have been paid to a Specified Employee but for the six-month delay imposed by this Section 10.5 shall be paid during the seventh month after the Specified Employee’s Separation from Service, or if earlier, the date of the Specified Employee’s death.  For purposes of this Plan, “Specified Employee” shall mean a “key employee” (within the meaning of Code Section 416(i) without regard to paragraph (5) thereof) who is one of the top 50 highest paid officers of the Company on the applicable determination date pursuant to procedures adopted by the Company.  For purposes of identifying Specified Employees under this Section 10.5, “compensation” shall be determined under the safe harbor definition set forth in Treasury Regulation Section 1.415(d)-2(d)(3) and shall exclude all compensation permitted under Treasury Regulation Section 1.415(c)-2(g)(ii).

.

20
10/1/2014 RestatementExhibit 4.8 

AMENDMENT NO. 2 TO INDENTURE

 

This
Amendment No. 2 to Indenture (this “Amendment”) is entered into as of this [●], 2014, by and among
GWG Holdings, Inc., a Delaware corporation, as obligor (the “Company”), GWG Life, LLC, a Delaware limited liability
company (formerly known as GWG Life Settlements, LLC), as guarantor (the “Guarantor”), and Bank of Utah, National
Association, as trustee (the “Trustee”), for the purpose of amending that certain Indenture by and among the
Company, the Guarantor and the Trustee dated as of October 19, 2011, as earlier amended on December 15, 2011 (as amended, referred
to as the “Indenture”).

 

This Amendment is being entered into to increase
the principal amount of debt securities issuable under the Indenture, to provide for certain differing terms and conditions pertaining
to debt securities proposed to be sold in a new offering and under a new Registration Statement of the Company (SEC Registration
Nos. 333-197227 and 333-1972201-01) (such differing terms primarily relating to transferability and global certification), and
to rename the debt securities, previously issued under the name “Renewable Secured Debentures,” as “L Bonds.”
This Amendment is being entered into on the date first written above, but the amendments to the Indenture provided for hereunder
will not become effective until the new Registration Statement (SEC Registration Nos. 333-197227 and 333-1972201-01) shall have
been declared effective by the SEC.

 

Now,
Therefore, the Indenture is hereby amended as follows:

 

1.                 
On the cover page of the Indenture, the phrasing “$250,000,000 Secured Debentures” is deleted and in its place
is inserted the words “Debt Securities”.

 

2.                 
All iterations of the name “GWG Life Settlements, LLC” are deleted and replaced with the new legal name of such
entity: “GWG Life, LLC”.

 

3.                 
The only series and class of debt securities issued and outstanding as “Securities” under the Indenture are,
effective upon the effectiveness of this Amendment, renamed as “L Bonds”.

 

4.                 
The second sentence contained in the preamble of the Indenture is replaced in its entirety with:

 

“The Company, the Guarantor and the Trustee
hereby agree as follows for the benefit of each other and for the equal and ratable benefit of the Holders of the debt securities
of the Company issued pursuant to the Registration Statement, as defined below, or otherwise:”

 

5.                 
The following defined terms are added to Section 1.1:

 

“Beneficial Holder” means
the holder of a beneficial interest in any Global Security.

 

“Depositary” means, with
respect to Securities of any series issuable in whole or in part in the form of one or more Global Securities, a clearing agency
registered under the Exchange Act and designated as Depositary by the Company pursuant to Section 2.15(a).

 

“DTC” means the Depositary
Trust Company.

 

“Global Security” means a
Security that evidences all or part of the Securities of any series and bears the legends set forth in Section 2.15 (or such other
legend as may be specified for such Securities pursuant to Section 2.15), issued to a Depositary or its nominee, and registered
in the name of such Depositary or nominee, with the beneficial interests in such Security being held by one or more Beneficial
Holders.”

 

    	

    	 

    

 

6.                 
The defined term “Eligible Life Insurance Policy” contained in Section 1.1 is deleted and all iterations of
that defined term contained in the Indenture are replaced with the term “Life Insurance Policy”.

 

7.                 
The defined term “Subscription Agreement” contained in Section 1.1 is deleted and all iterations of that defined
term contained in the Indenture are replaced with the term “subscription agreement”. The corresponding “Exhibit
B” to the Indenture is hereby deleted and replaced with the words “intentionally omitted”.

 

8.                 
The following defined terms are amended to read, in their entireties, as follows:

 

“Collateral” shall
mean, unless a supplemental indenture relating to a particular class or series of Securities issued under this Indenture provides
otherwise: (i) all the assets of the Company, including without limitation all of its ownership interests in Subsidiaries; (ii)
all the assets of the Guarantor pledged under the Pledge and Security Agreement, including without limitation all of the Guarantor’s
ownership interests in its Subsidiaries; (iii) all Pledged Affiliate Stock; and (iv) any and all other items and property defined
as “Collateral” in any Collateral Document.

 

“Collateral Documents” means,
unless a supplemental indenture relating to a particular class or series of Securities issued under this Indenture provides otherwise,
the Pledge and Security Agreement, Intercreditor Agreement and the other agreements, documents or instruments, including any financing
statements and amendments or supplements thereto, creating, perfecting or evidencing any Liens securing the Securities, and any
other Obligation under this Indenture or the Collateral Documents.

 

“Fiscal Quarter” means the
approximately three-month period ending each March 31, June 30, September 30, and December 31.

 

“Guarantee” means the guarantee
of the Guarantor as described in Article 11 or otherwise endorsed on any Security authenticated and delivered pursuant to this
Indenture.

 

“Guarantor” means GWG Life,
LLC, a Delaware limited liability company, unless and until replaced by a successor in accordance with this Indenture, in which
case “Guarantor” shall mean such successor. “Guarantor” shall also mean any other Person that later becomes
a guarantor of Obligations under any Securities issued hereunder pursuant to an amendment or supplemental indenture hereto.

 

“Guarantor Secured Notes”
means that certain class of secured promissory notes privately offered and sold from time to time by the Guarantor prior to the
date of this Indenture, commonly referred to as “LifeNotes” and referred to in the Company’s consolidated financial
statements as “Series I Secured notes.” Unless otherwise specified in a supplemental indenture or amendment to this
Indenture relating to a particular class or series of Securities, the Guarantor Secured Notes constitute Pari Passu Debt with respect
to the Securities issued hereunder.

 

“Intercreditor Agreement”
means that certain Intercreditor Agreement of even date herewith by and among the Trustee, Lord Securities Corporation (as trustee
under that certain Third Amended and Restated Note Issuance Agreement dated as of November 15, 2010, by and among the Guarantor,
Lord Securities Corporation and the GWG LifeNotes Trust, with respect to the Guarantor Secured Notes and the Renewable Secured
Debentures), and Bank of Utah (as trustee under that certain Indenture dated as of October 19, 2011, as amended on December 15,
2011), as such agreement may be amended, modified or supplemented from time to time in accordance with its terms and with this
Indenture (specifically including but not limited to any future amendments entered into primarily for the purpose of accommodating
additional Securities comprising Pari Passu Debt), which agreement comprises one of the Collateral Documents. The form of Intercreditor
Agreement is attached hereto as Exhibit E, and any future amendments, modifications or supplements thereto will be
added as exhibits successively numbered in cardinal fashion.

 

    	2

    	 

    

 

“Life Insurance Policy” means
any life insurance policy owned by the Company, the Guarantor, or any of their direct or indirect Subsidiaries or Affiliates.

 

“Master Trust” means (i)
GWG DLP Master Trust II, a Delaware statutory trust, and (ii) any future master trust that may be created, or wholly or partially
owned, by the Guarantor and its Subsidiaries, the primary purpose of which is to segregate collateral granted in favor of the holder
or holders of Senior Debt.

 

“Obligations” means any principal,
interest (including Post-Petition Interest), penalties, fees, indemnifications, reimbursements, damages and other liabilities payable
under the documentation governing any Indebtedness, specifically including any such obligations under a Guarantee.

 

“Pari Passu Debt” means any
Indebtedness of the Company that is payable, or that has secured collateral that is shared, on a pari passu basis with the Securities,
including without limitation all Guarantor Secured Notes.

 

“Payment Date” means (i)
with respect to any Security for which monthly interest payments are required to be made, the 15th day of the next following calendar
month, (ii) with respect to any Security for which interest payments are required to be made annually, the 15th day of the calendar
month next following the anniversary of the Issue Date of such Security, and (iii) with respect to each Security, the date specified
in Section 2.1(f) for the payment upon maturity of all principal of and accrued but unpaid interest on such Security, and any Repurchase
Date or Redemption Date of such Security, if applicable; provided, however, that if any such day in the preceding clauses (i) through
(iii) is not a Business Day, then the Payment Date shall be the Business Day immediately following such day.

 

“Pledge and Security Agreement”
means that certain Amended and Restated Pledge and Security Agreement of even date herewith by and among the Company, the Guarantor,
the Company Majority Stockholders and the Trustee (in its capacity as trustee under that Indenture dated as of October 19, 2011,
as amended on December 15, 2011, and its capacity as trustee under this Indenture), as such agreement may be amended, modified
or supplemented from time to time in accordance with its terms and with this Indenture (specifically including any future amendments
entered into primarily for the purpose of accommodating additional Securities comprising Pari Passu Debt), which agreement comprises
one of the Collateral Documents. The form of Pledge and Security Agreement is attached hereto as Exhibit D. Any amendments,
modifications or supplements to such agreement thereto will be added as exhibits successively numbered in cardinal fashion.

 

“Prospectus” means any prospectus
under a Registration Statement at the time it was declared effective by the SEC, as supplemented by any related prospectus supplement
(including interest-rate supplements) filed with the SEC pursuant to Rule 424(b) under the Securities Act. References herein to
any Prospectus shall be deemed to refer to and include any documents incorporated therein by reference.

 

“Registration Statement”
is a registration statement filed with the SEC pursuant to the Securities Act, as such registration statement is amended from time
to time including through pre-effective and post-effective amendments, permitting the Company to publicly offer and, upon and during
its effectiveness, sell Securities under this Indenture.

 

“Security” or “Securities”
means any debt security authorized, authenticated and delivered under this Indenture, together with all classes, sub-classes, series
and sub-series of any such Securities. As of the original date of the Indenture, the only securities available for issuance hereunder
were named “Renewable Secured Debentures.”

 

    	3

    	 

    

 

“Senior Debt” means any Indebtedness,
other than the Securities and Pari Passu Debt (whether outstanding on the date hereof or thereafter created), incurred by the Company
(including its direct or indirect Subsidiaries or Affiliates) that is senior in rank to Securities as to the right to receive payments
from the Company, or senior as to the right to receive payments on or from (or otherwise with respect to) any Collateral, whether
such Indebtedness is or is not specifically designated by the Company as being “Senior Debt” in its defining instruments.
In this regard, Senior Debt shall include, without limitation, any and all Indebtedness and Obligations owed by the Company or
its direct or indirect Subsidiaries to Autobahn Funding Company LLC (or its affiliates, including without limitation DZ Bank AG
Deutsche Zentral-Genossenschaftsbank and any future senior lender) as of the date of this Indenture and, unless specifically designated
to the contrary in its defining instruments, thereafter existing, including all amendments, restatements, alternations, substitutions,
replacements and renewals thereof, and extensions thereto (which shall be understood to specifically include replacements or substitutions
involving a different lender).

 

“Small Life Insurance Policy”
means a Life Insurance Policy having a Policy Benefit equal to or less than $1,000,000.

 

“SPV Collateral” means all
assets and property in which either any SPV Entity or Master Trust has acquired, or purports to have acquired, an interest (including
without limitation all assets and property which the Company or the Guarantor has transferred, or purports to have transferred,
to any such Person) pursuant to either (i) the “Transaction Documents,” as defined in that certain Third Amended and
Restated Note Issuance and Security Agreement dated as of November 15, 2010, by and among the Guarantor, the holders of Guarantor
Secured Notes, Lord Securities Corporation (as trustee), and GWG LifeNotes Trust, as the same may be amended from time to time,
or (ii) any documentation relating to any Senior Debt and intended by the parties thereto to have the same primary purpose as the
Transaction Documents.

 

“Trustee” means Bank of Utah,
a Utah corporation, until a successor replaces it in accordance with the applicable provisions of this Indenture and thereafter
means the successor serving hereunder. “Trustee” also means a different trustee engaged under this Indenture (e.g.,
pursuant to a supplement indenture) to serve as trustee with respect to any particular class or series of Securities hereunder.”

 

9.               The first sentence of Section 2.1(a) is amended to read in its entirety as follows:

 

“The outstanding aggregate principal amount of Securities
to be issued hereunder is unlimited.”

 

10.          
  Section 2.1(b) is replaced in its entirety with the following:

 

“(b)         In the event issued in certificated
form pursuant to Section 2.14 or in a certificated Global Security form pursuant to Section 2.15: (i) the Securities, together
with the Trustee’s certificate of authentication, shall be in substantially the form set forth as Exhibit A
to this Indenture (or such other form as may be required by a Depositary), with any appropriate insertions, omissions, substitutions
and other variations as are required or permitted by this Indenture and may have such letters, numbers or other marks of identification
and such legends or endorsements placed thereon as may be required to comply with the rules of any securities exchange or as may
be otherwise determined, consistently herewith, by the officers executing such Securities to be appropriate, as evidenced by their
execution of the Securities; (ii) any portion of the text of any Securities may be set forth on the reverse thereof, with
an appropriate reference thereto on the face of the Securities; and (iii) the Securities may be subject to notations, legends or
endorsements required by law, stock exchange rule, rules or custom of a Depositary, or agreements to which the Company is subject
or reasonably required by usage. Upon the creation of other Securities issuable under this Indenture, or the creation of different
classes or series of any Securities issuable under this Indenture, a new Exhibit A, successively numbered in cardinal
fashion (e.g., Exhibit A-2, Exhibit A-3, etc.) will be attached to and thereupon become a part of this Indenture. If a Security
is to be issued or issuable in a certificated Global Security form pursuant to Section 2.15, such form shall likewise be attached
to and thereupon become a part of this Indenture.”

 

    	4

    	 

    

 

11.            
Section 2.1(c) is replaced in its entirety with the following:

 

“(c)         Except as provided in Section 2.14 or
Section 2.15, no Security shall be issued as, nor evidenced by, a certificated security, but rather each Security shall be issued
in book-entry or uncertificated form in which the record of beneficial ownership of each such Security shall be established and
maintained as Accounts by the Registrar pursuant to Section 2.13. For each Security issued in book-entry form in accordance with
Section 2.13, the same terms and provisions as those set forth in the form of Security attached as the relevant Exhibit A
shall be deemed to be incorporated into the terms and provision of such book-entry Securities.”

 

12.            
Section 2.1(d) is amended to read in its entirety as follows:

 

“(d)         Each Security shall be in such denominations
as provided by this Indenture and as may be designated from time to time by the Company, but in no event in an original denomination
less than $25,000, unless otherwise authorized by the Company. Separate purchases may not be cumulated to satisfy the minimum denomination
requirements. Each Security shall have a term of six months, or one, two, three, four, five, seven, or ten years as designated
by the Holder at the time of purchase, subject to the Company’s acceptance thereof, unless otherwise determined by the Company.”

 

13.            
The final sentence of Section 2.1(e) is amended to read in its entirety as follows:

 

“Any such change shall be effective upon the first
Business Day of the Fiscal Quarter next following the calendar month in which the Company shall have both (x) received written
notice from the Holder requesting such change and (y) approved such change, as evidenced in a writing delivered to such Holder.”

 

14.            
Clause (ii) of Section 2.1(f) is amended by adding the following proviso at the end of such clause:

 

“provided, however, that the Holder of a Global
Security may elect to receive payment of outstanding principal and accrued interest due on such Security respecting less than all
principal represented by such Global Security.”

 

15.            
The second sentence of final paragraph of Section 2.1(f) is amended to read in its entirety as follows:

 

“If a Notice of Maturity permits the Holder to renew
the Security or roll-over a Security into another security of the Company (including another Security under the Indenture), then
the Company shall also include the then-current applicable Prospectus, if any, together with a statement urging the Holder to review
such documentation prior to any renewal.”

 

16.            
The first two sentences of Section 2.1(g) are amended to read in their entirety as follows:

 

“(g)         The Notice of Maturity also shall state
that the Holder may submit a Repayment Election for the repayment of the maturing Security, use all or a portion of the proceeds
thereof to purchase a new Security with a different term, or roll-over the maturing Security into another security of the Company
(including another type of Security under this Indenture). To exercise an option, the Holder shall send to the Company such Holder’s
Repayment Election to the Company together with such other documentation as is required to effect such transactions.”

 

    	5

    	 

    

 

17.            
The fourth sentence of Section 2.1(g) is amended to read in its entirety as follows:

 

“Any proceeds from the maturing Security that are
not applied to the purchase of, or roll-over into, the new Security shall be sent to the Holder thereof.”

 

18.            
The first sentence of the final paragraph in Section 2.1(h) is amended by deleting the word “the” appearing
immediately after “to” and immediately before “Registration Statement,” and inserting in the place of such
deletion the word “a”.

 

19.            
Section 2.2(a) is amended as follows—

 

		(1)	Clause (ii) is amended by deleting the words “related Subscription Agreement” and replacing those words with “purchase
of the Security”.

 

		(2)	Clause (iii) is amended by deleting the words “pursuant to Section 2.13” and replacing those words with “in
the Securities Register”.

 

20.            
Section 2.3 is amended by inserting, at the very end of the second sentence of such section, the following words (immediately
prior to the parenthetical “(the “Securities Register”)”):

 

“, and which shall also include an indication as
to which Securities are book-entry, certificated, or represented by a Global Security”

 

21.            
The first clause of the first sentence of Section 2.3(b) is amended to replace the reference to Section 2.15 with “Section
2.17”.

 

22.            
Section 2.6 is amended to read in its entirety as follows:

 

“SECTION 2.6TRANSFER AND EXCHANGE

 

(a)            The
Securities may be transferred so long as they shall have been offered and sold by the Company pursuant to an effective Registration
Statement.

 

(i)         Upon surrender to the Registrar of such a Security
for registration of transfer that is certificated, accompanied by a written instrument of conveyance in form and substance satisfactory
to the Company (and the Registrar, if the Company is not the Registrar) executed by the Holder thereof or such Holder’s attorney
duly authorized in writing, the Company will execute and the Trustee will authenticate and deliver, in the name of the designated
transferee or transferees, one or more new Securities denominated as authorized by this Indenture and of a like aggregate principal
amount and containing identical terms and provisions.

 

(ii)        In the case of such Securities that are book-entry
only and not certificated, transfers shall be effected on the book-entry system maintained in accordance with Section 2.13 upon
receipt by the Company (and the Registrar, if the Company is not the Registrar) of a written instrument of transfer in form and
substance satisfactory to the Company, duly executed by the Holder thereof or such Holder’s attorney duly authorized in writing.

 

(iii)       In the case of such Securities that are represented
by a Global Security, transfers of such Global Security itself shall only be effected in accordance with Section 2.15(b).

 

    	6

    	 

    

 

(iv)       No Beneficial Holder of an interest in a Global
Security will be able to transfer that interest except in accordance with the applicable procedures of the Depositary and any other
procedures specified herein.

 

(b)            In cases where Securities shall not have been
offered and sold by the Company pursuant to an effective Registration Statement (“Restricted Indenture Securities”),
such Securities may be transferred only with the prior written consent of the Company. Any such requests shall be:

 

(i)         made to the Registrar in writing on a form
supplied by the Registrar;

 

(ii)        duly executed by the Holder of the Restricted
Indenture Security, as reflected on the Registrar’s records as of the date of receipt of such transfer request, or such Holder’s
attorney duly authorized in writing;

 

(iii)       accompanied by the written consent of the
Company to the transfer (which consent may not be unreasonably withheld), unless the Company is then serving as Registrar; and

 

(iv)       if requested by the Company or the Registrar,
be accompanied by (A) an opinion of Holder’s counsel (which counsel shall be reasonably acceptable to the requesting party)
that the transfer does not violate any applicable securities laws, and (B) a signature guarantee.

 

Upon transfer of a Security, the Company,
or the Registrar on behalf of the Company, will provide the new registered owner of the Security with a Written Confirmation that
will evidence the transfer of the Security in the Securities Register and will establish a corresponding Account.

 

The Company or the Registrar may assess
reasonable service charges to a Holder for any registration of transfer or exchange, and the Company may require payment of a sum
sufficient to cover any transfer tax or similar governmental charge payable in connection therewith (other than any such transfer
taxes or similar governmental charge payable upon exchange pursuant to Section 9.5).

 

(c)            With respect to the relevant Regular Record
Date, the Company shall treat the Person listed as a “Holder” on each Account maintained by the Registrar as the absolute
owner of the Security represented thereby for purposes of receiving payments thereon and for all other purposes whatsoever.”

 

23.            
The first sentence of Section 2.11 is amended to delete the word “limited” appearing immediately before the
word “circumstances,” and to replace the reference to “Section 2.13(b)” with “Section 2.14”.

 

24.            
The conclusion of Section 2.12(b) is amended to replace the words “pursuant to Section 2.13” with “in
the Securities Register.”

 

25.            
Paragraph (b) of Section 2.13 is deleted and the first three sentences of Section 2.13(a) are replaced in their entirety
with the following:

 

“Except as set forth in Section 2.14 or Section
2.15, the Registrar shall maintain a book-entry registration and transfer system through the establishment and maintenance of Accounts
for the benefit of Holders of Securities as the sole method of recording the ownership and transfer of ownership interests in such
Securities. The registered owners of the Accounts established by the Registrar in connection with the purchase or transfer of the
Securities shall be deemed to be the Holders of the Securities outstanding for all purposes under this Indenture. The Company (or
its duly authorized Agent) shall promptly notify the Registrar of the acceptance of a subscriber’s purchase of a Security
by providing a copy of the related Written Confirmation, and, upon receipt of such notices, the Registrar shall establish an Account
for such Security by recording a credit to its book-entry registration and transfer system to the Account of the related Holder
of such Security for the principal amount of such Security owned by such Holder and issue a Written Confirmation to the Holder,
with a copy being delivered to the Trustee, on behalf of the Company.”

 

26.            
A new Section 2.14 is added to read in its entirety as follows:

 

    	7

    	 

    

 

“Section 2.14            CERTIFICATES

 

Book-entry Accounts evidencing ownership of the Securities
may, at the request of a Holder, be exchanged at the end of each Fiscal Quarter for a certificated form of Securities (or earlier,
if agreed to by the Company). In addition, at the election of the Company, upon written notice to the Trustee the Company may elect
to terminate the book-entry system. Finally, promptly after the occurrence of any Event of Default, the Trustee shall notify all
Holders of the Securities of such event and the availability of certificated forms of Securities pursuant to exchange, and the
Company shall effect such exchange at the end of a Fiscal Quarter for all Holders if the Holders of a majority of the aggregate
outstanding principal amount of the Securities (as determined based upon the latest quarterly statement provided to the Trustee
pursuant to Section 2.5) advise the Trustee in writing that the continuation of the book-entry system is no longer in the best
interests of such Holders.”

 

27.            
A new Section 2.15 is added to read as follows:

 

“SECTION 2.15         GLOBAL SECURITIES

 

(a)        A resolution of the Board of Directors of the
Company, a supplemental indenture hereto or an Officers’ Certificate shall establish whether the Securities shall be issued
in whole or in part in the form of one or more Global Securities and identify the Depositary for such Global Security or Securities.

 

(b)        Notwithstanding any provisions to the contrary
contained in Section 2.6 of the Indenture and in addition thereto, any Global Security shall be exchangeable pursuant to Section
2.6 of the Indenture for Securities registered in the names of Holders other than the Depositary for such Security or its nominee
only if (i) such Depositary notifies the Company that it is unwilling or unable to continue as Depositary for such Global Security
or if at any time such Depositary ceases to be a clearing agency registered under the Exchange Act, and, in either case, the Company
fails to appoint a successor Depositary registered as a clearing agency under the Exchange Act within 90 days of such event or
(ii) the Company executes and delivers to the Trustee an Officers’ Certificate to the effect that such Global Security shall
be so exchangeable. Any Global Security that is exchangeable pursuant to the preceding sentence shall be exchangeable for Securities
registered in such names as the Depositary shall direct in writing in an aggregate principal amount equal to the principal amount
of the Global Security with like tenor and terms.

 

Except as provided in this paragraph
(b), a Global Security may not be transferred except as a whole by the Depositary with respect to such Global Security to a nominee
of such Depositary, by a nominee of such Depositary to such Depositary or another nominee of such Depositary, or by the Depositary
or any such nominee to a successor Depositary or a nominee of such a successor Depositary.

 

(c)        Any Global Security issued hereunder shall
bear a legend in substantially the following form:

 

    	8

    	 

    

 

 

THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING
OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF THE DEPOSITARY OR A NOMINEE OF THE DEPOSITARY. THIS SECURITY
IS EXCHANGEABLE FOR SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITARY OR ITS NOMINEE ONLY IN THE LIMITED
CIRCUMSTANCES DESCRIBED IN THE INDENTURE, AND MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY,
BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE
TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH A SUCCESSOR DEPOSITARY.

 

In addition, so long as the Depository
Trust Company is the Depositary, each Global Security registered in the name of DTC or its nominee shall bear a legend in substantially
the following form:

 

UNLESS THIS GLOBAL NOTE IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE ISSUER OR ITS AGENT FOR REGISTRATION
OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY GLOBAL NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME
AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY
PERSON IS WRONGFUL INASMUCH THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

 

Such legends may be modified or added
to in order to satisfy the requirements, customs or reasonable requests of a Depositary.

 

(d)       The Depositary, as a Holder, may appoint agents
and otherwise authorize participants to give or take any request, demand, authorization, direction, notice, consent, waiver or
other action which a Holder is entitled to give or take under the Indenture.

 

(e)        Notwithstanding the other provisions of this
Indenture, unless otherwise specified as contemplated by Section 2.2, payment of the principal of and interest, if any, on any
Global Security shall be made to the Holder thereof.

 

(f)        The Company, the Trustee and any Agent shall
treat a person as the Holder of such principal amount of outstanding Securities represented by a Global Security as shall be specified
in a written statement of the Depositary or by the applicable procedures of such Depositary with respect to such Global Security,
for purposes of obtaining any consents, declarations, waivers or directions required to be given by the Holders pursuant to this
Indenture.”

 

28.            
The Sections of the Indenture previously numbered 2.14, 2.15 and 2.16 are renumbered to 2.16, 2.17 and 2.18, respectively.

 

29.            
The first sentence of Section 2.16(a) (“INITIAL AND PERIODIC STATEMENTS”) is amended by deleting the first clause
(which had read “Subject to the rejection of a Subscription Agreement pursuant to Section 2.2,”).

 

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30.            
Section 2.18 (“CUSIP NUMBERS”) is amended in its entirety to read as follows:

 

“The Company may obtain and use one or more CUSIP
numbers for the Securities (if then generally in use), and may also obtain and use different CUSIP numbers for Securities of the
same class or series that have different Issue Dates, Maturity Dates or interest rates. If CUSIP numbers are so obtained, the Trustee
shall use CUSIP numbers in notices of redemption or purchase as a convenience to Holders; provided, however, that any such notice
may state that no representation is made as to the correctness of such numbers either as printed on the Securities or as contained
in any notice of a redemption or purchase, and any such redemption or purchase shall not be affected by any defect in or omission
of such numbers. The Company will promptly notify the Trustee of any change in the CUSIP numbers.”

 

31.            
The first sentence of Section 3.1(a) is amended by deleting the “records maintained by the Registrar,” and inserting,
in the place of that deletion, “”Securities Register,”.

 

32.            
Section 3.2 is amended in its entirety to read as follows:

 

“(a)      Subject to subsection (c) below, within
45 days of the death, Total Permanent Disability or Bankruptcy of a Holder or Beneficial Holder who is a natural person (a “Holder
Redemption Event”), the estate of such Holder or Beneficial Holder (in the event of death) or such Holder, Beneficial Holder
or legal representative of such Holder or Beneficial Holder (in the event of Total Permanent Disability or Bankruptcy) may require
the Company to repurchase, in whole but not in part, without penalty, the Securities held by such Holder (including Securities
of the Holder held in his or her individual retirement accounts) or such Holder’s beneficial interest in a Global Security
(including the beneficial interests of the Beneficial Holder held through his or her individual retirement accounts), as the case
may be, by delivering to the Company a Repurchase Request; provided, however, that in the case of a Repurchase Request by a Beneficial
Holder, such Repurchase Request shall be valid only if delivered through the Depositary, in its capacity as the registered Holder
of the Global Security with respect to which such Beneficial Holder holds his or her beneficial interest in a Security. Any such
Repurchase Request shall specifically set forth the particular Holder Redemption Event giving rise to the right of the Holder or
Beneficial Holder to have his or her Securities or beneficial interest in a Global Security repurchased by the Company. If a Security
or beneficial interest in a Global Security is held jointly by natural persons who are legally married, then a Repurchase Request
may be made by the surviving Holder or Beneficial Holder upon the occurrence of a Holder Redemption Event arising by virtue of
a death, or by the disabled or bankrupt Holder or Beneficial Holder (or a legal representative) upon the occurrence of a Holder
Redemption Event arising by virtue of a Total Permanent Disability or Bankruptcy. In the event a Security or beneficial interest
in a Global Security is held together by two or more natural persons that are not legally married (regardless of whether held as
joint tenants, co-tenants or otherwise), neither of these persons shall have the right to request that the Company repurchase such
Security or beneficial interest in a Global Security unless a Holder Redemption Event has occurred for all such co-Holders or co-Beneficial
Holders of such Security. A Holder or Beneficial Holder that is not an individual natural person does not have the right to request
repurchase under this Section.

 

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(b)       Subject to subsection (c) below, a Holder or
Beneficial Holder may request (but not require, other than under circumstances described in subsection (a) above) the Company to
repurchase, in whole but not in part, the Security held by a Holder, or the beneficial interest in a Global Security held by a
Beneficial Holder, by delivering a Repurchase Request to the Company; provided, however, that in the case of a Repurchase Request
by a Beneficial Holder, such Repurchase Request shall be valid only if delivered through the Depositary, in its capacity as the
registered Holder of the Global Security with respect to which such Beneficial Holder holds his or her beneficial interest in a
Security. Any such requested repurchase shall be made only at the Company’s discretion and, if made, will be subject to an
early Repurchase Penalty to be deducted from the payment of such Holder’s or Beneficial Holder’s Repurchase Price on
the Repurchase Date. The early repurchase penalty (the “Repurchase Penalty”) shall equal to six percent (6.00%) of
the amount of the principal amount of the Security repurchased.

 

(c)        Upon receipt of a Repurchase Request under
subsection (a) above, or a Repurchase Request under subsection (b) above that the Company elects in its sole discretion to accept,
the Company shall designate a date for the repurchase of such Security (the “Repurchase Date”), which date shall not
be later than the 15th day of the month next following the month in which the Company receives facts or certifications establishing
to the reasonable satisfaction of the Company the occurrence of a Holder Redemption Event or, in the case of a Repurchase Request
granted pursuant to subsection (b) above, a date selected by the Company but no earlier than ten days and no later than 45 days
after the Company’s acceptance of the Repurchase Request. On the Repurchase Date, the Company shall pay the Repurchase Price
to the Holder, or the estate of the Holder, in accordance with Section 2.7. No interest shall accrue on a Security to be repurchased
under this Section for any period of time on or after the Repurchase Date for such Security, provided that the Company or the Paying
Agent has timely tendered the Repurchase Price to the Holder or the estate of the Holder, as the case may be.

 

(d)       The Company may waive or reduce any early Repurchase
Penalty in its sole discretion, and may at any time eliminate or modify its policy regarding the repurchase of Securities at the
request of Holders or Beneficial Holders, including requests made by Holders or Beneficial Holders in connection with any Holder
Redemption Event; provided, however, that no such elimination or modification shall adversely affect the rights of Holders or Beneficial
Holders whose Securities the Company is then obligated to repurchase pursuant to pending repurchases under paragraphs (a) and (b)
of this Section 3.2.”

 

33.             
Section 4.9 is amended to read in its entirety as follows:

 

“Notwithstanding any provision to the contrary within
this Indenture, the Company shall not be prohibited, restricted or otherwise limited under this Indenture from entering into, sponsoring
or conducting any Qualified Sales and Financing Transaction that provides for the issuance of Senior Debt. Except for Senior Debt
and as otherwise provided for herein or permitted hereunder, the Company shall not, without the approval of the Holders of a majority
in principal amount of the then-outstanding Securities, incur Indebtedness subsequent to the date hereof which is senior in right
to payment on or from the Collateral; provided, however, that the Company may incur Indebtedness, including secured Indebtedness,
which is Pari Passu Debt.”

 

34.            
Section 7.7(b) is amended to read in its entirety as follows:

 

“The Company shall indemnify and hold harmless the
Trustee, both in its individual capacity and as Trustee, against any and all losses, liabilities or expenses (including reasonable
attorneys’ fees) incurred by it arising out of or in connection with the acceptance or administration of its duties under
this Indenture, except as set forth in paragraph (d) below.”

 

35.            
A preamble for Article 9, preceding Section 9.1, is inserted as follows:

 

“Amendments to this Indenture may be effected as
described in this Article 9, whether pursuant to the execution and delivery of a document entitled “amendment” or pursuant
to the execution and delivery of a “supplemental indenture,” including a supplemental indenture for the purpose of
establishing a different class or series of Securities under this Indenture.”

 

    	11

    	 

    

 

36.            
Section 9.1(c) is amended to read in its entirety as follows:

 

“(c)       to provide for the issuance of additional
Securities or classes or series of Securities in conformity with this Indenture (including, for purposes of clarity, additional
Securities or classes or series of Securities having rights, preferences or privileges different from those set forth herein);”

 

37.            
New Sections 9.1(g) and 9.1(h) are added as follows:

 

“(g)       to comply with the rules or policies of
a Depositary of Securities; or

 

“(h)         in connection with an amendment, extension, replacement,
renewal or substitution of Senior Debt, to amend the subordination provisions of this Indenture to conform to the reasonable requirements
of the holder or holders of such Senior Debt.”

 

38.            
Section 9.2(a) is amended to read in its entirety as follows:

 

“(a)      Other than as set forth in Section 9.1,
the Company and the Trustee may amend this Indenture or the Securities with the consent of the Holders of at least a majority in
principal amount of the then-outstanding Securities; provided, however, that if an amendment would affect fewer than all classes
or series of Securities under this Indenture, then only the written consent of the Holders of a majority in principal amount of
the then-outstanding classes or series of Securities so affected shall be required. The Holders of a majority in principal of the
then-outstanding Securities may also waive on behalf of all Holders any existing Default or Event of Default or compliance with
any provision of this Indenture or the Securities (or class or series of Securities, as applicable). Nevertheless, without the
consent of the Holder of each Security affected, an amendment or waiver under this Section may not (with respect to any Security
held by a non-consenting Holder):”

 

39.            
Section 9.2(d) is amended to read in its entirety as follows:

 

“(d)      After an amendment or waiver under this
Section becomes effective, the Company shall mail to the Holders of each Security affected thereby a notice briefly describing
the amendment or waiver. Any failure of the Company to mail such notice, or any defect therein, shall not, however, in any way
impair or affect the validity of any such supplemental indenture or waiver. Subject to Section 6.4 and Section 6.7 and clauses
(i) through (vii) of paragraph (a) above, the Holders of a majority in principal amount of the Securities then outstanding may
waive compliance in a particular instance by the Company with any provision of this Indenture or the Securities.”

 

40.            
Section 10.3(a) is amended by inserting, immediately after the clause “direct or indirect,” and before the word
“including,” the following: “in respect of the Securities,”.

 

41.            
To fix certain errors in the Indenture, the following amendments are adopted—

 

		(1)	In Section 2.5, the lowercase “fiscal quarter” is amended by capitalizing the first letters of that phrase “Fiscal
Quarter” so that the defined term is correctly referenced.

 

		(2)	Section 10.15(a) is amended by inserting the word “Debt” between the words “Senior” and “Payout”
so that the defined term “Senior Debt Payout Date” is correctly referenced.

 

    	12

    	 

    

 

		(3)	In Article 11, every instance of the lowercase “obligations of the Company” is amended by capitalizing the word
“Obligations” so that the defined term is correctly referenced.

 

42.            
Section 12.5 is amended to read in its entirety as follows:

 

“In the event that the Company or the Guarantor
wishes to release Collateral in accordance with the Collateral Documents and has delivered the certificates and documents required
by the Collateral Documents and Section 12.3 and Section 12.4, the Trustee shall determine whether it has received all documentation
required by TIA §314(d) in connection with such release and, based on such determination and the Opinion of Counsel delivered
pursuant to Section 12.4, shall deliver a certificate to the collateral agent, if any, setting forth such determination (or retain
the above-described certificates and documents in the event the Trustee itself serves as or fulfills the function of a collateral
agent).”

 

43.            
The conclusion of Section 12.7 is amended by inserting, immediately before the period ending the only sentence of such section,
the following: “and the Collateral Documents.”

 

44.            
Section 13.2 is amended by added an unlettered paragraph at the end of such section as follows:

 

“Notwithstanding any other provision of this Indenture
or any Security, where this Indenture or any Security provides for notice of any event (including any notice of redemption) to
a Holder of a Global Security (whether by mail or otherwise), such notice shall be sufficiently given to the Depositary for such
Security (or its designee) pursuant to the customary procedures of such Depositary.”

 

44.          Marked and clean conformed copies of the Indenture, as
amended pursuant to this Amendment, shall be attached to this Amendment as Annex A and B, respectively, so as to facilitate a reading
of the Indenture, as amended. In the event of any conflict between this Amendment and the conformed copies of the Indenture, this
Amendment will control.

 

45.          Other than as set forth herein, the Indenture shall remain
unaffected by this Amendment.

 

 

 * * * * * * *

    	13

    	 

    

 

 

In Witness
Whereof, the undersigned have executed this Amendment No. 2 to Indenture as of the respective dates set forth below (but
with this Amendment to be effective in the manner prescribed above in the second paragraph of this Amendment).

 

	
        GWG HOLDINGS, INC.

        (as obligor)

	 	 
	By:  	 
	 	
        Jon R. Sabes

        Chief Executive Officer

	 	 
	 	 
	
        GWG LIFE, LLC

        (as Guarantor)

	 	 
	By:  	 
	 	
        Jon R. Sabes

        Chief Executive Officer

	 	 
	 	 
	
        BANK OF UTAH

        (not in its individual capacity, but as Trustee)

	 	 
	By:	 
	Name:	 
	Title:   	 

 

 

 

 

 

 

 

 

 Signature Page to Amendment No. 2 to
Indenture

 

    	14

    	 

    

 

 

Annex A

 

(conformed marked copy of Indenture)

 

 

    	15

    	 

    

 

Annex B

 

(conformed clean copy of Indenture)

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