Document:

Form of Debenture

 Exhibit 4.2 
 FORM OF DEBENTURE 
 THIS RENEWABLE SECURED DEBENTURE (THE “DEBENTURE”) OF GWG
HOLDINGS, INC. (THE “COMPANY”) IS SUBJECT TO THE TERMS OF THE INDENTURE, WHICH AMONG OTHER PROVISIONS, CONTAINS REQUIREMENTS RELATING TO ANY TRANSFER OF THIS DEBENTURE BY THE HOLDER, INCLUDING THE PRIOR CONSENT OF THE COMPANY TO ANY SUCH
TRANSFER. THE INDENTURE HAS BEEN FILED AS EXHIBIT 4.1 TO THE COMPANY’S REGISTRATION STATEMENT ON FORM S-1 FILED WITH THE U.S. SECURITIES AND EXCHANGE COMMISSION ON OR ABOUT
                    , 2011, PURSUANT TO WHICH THIS DEBENTURE HAS BEEN ISSUED BY THE COMPANY. 

THE COMPANY MAY REDEEM THIS DEBENTURE, IN WHOLE OR IN PART, IN ACCORDANCE WITH THE TERMS OF THE INDENTURE. 

GWG HOLDINGS, INC. 
 Incorporated under the Laws of Delaware 
 RENEWABLE SECURED DEBENTURES

  

			
	 Registered No.:
                                         
                                   
	  	Registered Principal Amount:
$                                         
       
	 Issue Date:
                                         
                                         
  
	  	Interest Rate:
                                         
                                   
	 Term:
                                         
                                         
          
	  	Interest Payment Schedule:
                                         
             
	 Maturity Date:
                                         
                                     
	  	Payment Date (for interest):
                                         
           

 GWG Holdings, Inc., a corporation created under the laws of the State of Delaware (the
“Company,” which term includes any successor corporation under the Indenture hereinafter referred to), for value received, hereby promises to pay to
                                         
       , or registered assigns, the principal sum of
                                 Dollars
($            ) on the Maturity Date and to pay accrued and unpaid interest hereon from the Issue Date set forth above, or from the most recent Payment Date to which interest
has been paid or duly provided for, beginning on the first Payment Date after the Issue Date (the “Initial Payment Date”) and on each subsequent Payment Date thereafter at the Interest Rate set forth above, until the principal hereof is
paid or made available for payment; provided, however, that if the Payment Date is within five Business Days of the Issue Date, then the first payment will be made in the following month and will include the interest earned since the Issue
Date. Interest shall accrue on the principal amount for the period from the later of the Issue Date of this Debenture or the last Payment Date upon which an interest payment was made until and including the day before the following Payment Date.
Initially capitalized terms used but not defined herein shall have the respective meanings given such terms in the Indenture. 

The principal hereof is subject to optional redemption by the Company and optional repurchase at the request of the Holder, as provided
in the Indenture, and if not so redeemed or repurchased, shall be due and payable in full on the Maturity Date, which also shall constitute a Payment Date (as such term is defined in the Indenture). The principal and interest so payable and
punctually paid or duly provided for on any Payment Date, as provided in the Indenture, will be paid to the Person in whose name this Debenture is registered (the “Holder”) at the close of business on the Regular Record Date (or Maturity
Record Date, as applicable) for such Payment Date. Payment of the principal of and interest on this 

  
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Debenture will be made at the office of the Paying Agent, or in such other office as may be selected in accordance with the Indenture, in such coin or currency of the United States of America as
at the time of payment is legal tender for payment of public and private debts, provided, however, that at the option of the Company payment of interest may be made in United States dollars by wire or by check mailed to the address of the Person
entitled thereto as such address shall appear in the Securities Register. 
 Reference is hereby made to the further provisions
of this Debenture set forth on the reverse hereof, which further provisions shall for all purposes have the same effect as if set forth at this place. 
 Unless the Certificate of Authentication hereon has been executed by or on behalf of the Trustee referred to on the reverse hereof by manual signature, this Debenture shall not be entitled to any benefit
under the Indenture or be valid or obligatory for any purpose. 
 No recourse shall be had for the payment of the principal or
interest of this Debenture against any Company incorporator, stockholder, officer, director, employee or agent by virtue of any statute or by enforcement of any assessment or otherwise; and any and all liability of incorporators, stockholders,
directors, officers, employees and agents of the Company being released hereby. 
 IN WITNESS WHEREOF, the Company has caused
this Renewable Secured Debenture to be signed in its name by the manual or facsimile signature of its Chief Executive Officer and attested to by the manual or facsimile signature of its Secretary. 

 

									
	GWG HOLDINGS, INC.	 		 	
					
	By:	 	 	 		 	Dated:	 	 
	Name:	 	 	 		 		 	
	Title:	 	 	 		 		 	
					
	ATTEST:	 		 		 		 	
				
	 	 		 		 	
	Secretary	 		 		 		 	

 CERTIFICATE OF AUTHENTICATION 
 This Debenture is one of the Renewable Secured Debentures referred to in the within-mentioned Indenture. 
  

									
	BANK OF UTAH (as Trustee)	 		 	
					
	By:	 	 	 		 	Dated:	 	 
		 	Authorized Signature	 		 		 	

  
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 REVERSE SIDE OF DEBENTURE 

This Debenture is one of a duly authorized issue of Renewable Secured Debentures of the Company designated as its Renewable Secured
Debentures (the “Debentures”) in the maximum aggregate principal amount of up to $250,000,000, issued and to be issued under an Indenture, dated as of
                    , 2011 (the “Indenture”), between the Company and Bank of Utah, as Trustee (the “Trustee,” which
term includes any successor Trustee under the Indenture). Reference is hereby made to the Indenture and all indentures supplemental thereto for a statement of the respective rights, limitation of rights, duties and immunities thereunder of the
Company, the Trustee and the Holders, and for a statement of the terms upon which the Debentures are, and are to be, authenticated and delivered. Capitalized and certain other terms used herein and not otherwise defined have the meanings set forth
in the Indenture. 
 The Debentures are general obligations of the Company. The payment of the principal of and interest on this
Debenture is expressly subordinated, as provided in the Indenture, to the payment of all Senior Debt and, by the acceptance of this Debenture, the Holder hereof agrees, expressly for the benefit of the present and future holders of Senior Debt, to
be bound by the provisions of the Indenture relating to such subordination and authorizes and appoints as such Holder’s attorney-in-fact, the Trustee, to take such action on such Holder’s behalf as may be necessary or appropriate to
effectuate such subordination. 
 The Company may, at its option, at any time redeem this Debenture either in whole or from time
to time in part prior to the Maturity Date by providing at least thirty 30 days written notice to the Holder. If this Debenture shall be redeemed by call for redemption and payment be duly provided therefor as specified in the Indenture, interest
shall cease to accrue on this Debenture. 
 This Debenture may be transferred and exchanged only as provided in the Indenture.
This Debenture may not be assigned, transferred or otherwise alienated without the prior written consent of the Company and shall be subject to the Company’s right to demand and receive an opinion of Holder’s legal counsel (which counsel
shall be reasonably acceptable to the Company) that the transfer does not violate any applicable securities laws. The Company may also require a signature guarantee. 
 Approximately 30 days prior to the Maturity Date, the Company will send the Holder a Notice of Maturity to notify the Holder of the Maturity Date. If in the Notice of Maturity the Company does not notify
the Holder of its intention to repay this Debenture, and unless at least 15 days prior to the Maturity Date, the Holder has not demanded repayment of this Debenture, this Debenture shall be automatically renewed for an additional term equal to the
term of the maturing Debenture and shall be deemed to have been renewed by the Holder and the Company as of the Maturity Date, such that a new Debenture shall be deemed to have been issued as of such Maturity Date. This Debenture will continue to
renew as described herein absent some action permitted under the Indenture and this Debenture by either the Holder or the Company. Interest on the renewed Debenture shall accrue from the Issue Date thereof, which is the first day of such renewed
term. This renewed Debenture will be deemed to have identical terms and provisions as the maturing Debenture, including provisions relating to payment, except that the interest rate payable during the term of the renewed Debenture shall be the
interest rate which is being offered by the Company on other Debentures with the same term as of the Issue Date of such renewal. If other Debentures with the same term are not then being offered on the Issue Date of such renewal, the interest rate
upon renewal will be the rate specified by the Company on or before the Maturity Date, or the Debenture’s existing rate if no such rate is specified. If the Company gives notice to the Holder of the Company’s intention to repay the
Debenture at maturity, the Company shall pay the Holder the principal amount and accrued and unpaid interest thereon on the Payment Date next following the Maturity Date, and, provided such payment is timely made, no interest will accrue after the
Maturity Date. Otherwise, if the Holder requests repayment at least 15 prior to the Maturity Date, no interest will accrue after the 

  
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Maturity Date and the Holder will be sent payment upon the Payment Date next following the Maturity Date; provided that any interest paid to the Holder accruing after the Maturity Date shall be
deducted from such payment. 
 If an Event of Default shall occur and be continuing, the outstanding principal of this Debenture
may be declared due and payable in the manner and with the effect provided in the Indenture. The Company shall pay all costs of collection, whether or not judicial proceedings are instituted, in the manner provided in the Indenture. The Indenture
provides that such declaration and its consequences may, in certain events, be waived by the Holders of a majority in principal amount of the Debentures outstanding. 
 The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations of the Company and the rights of the Holders under the
Indenture at any time by the Company and the Trustee with the consent of the Holders of a majority in aggregate principal amount of Debentures at the time outstanding. The Indenture also contains provisions permitting the Holders of specified
percentages of aggregate principal amount of the Debentures at the time outstanding, on behalf of the Holders of all of the Debentures, to waive compliance by the Company with certain provisions of the Indenture and certain past defaults under the
Indenture and their consequences. Any such consent or waiver by the Holder of this Debenture shall be conclusive and binding upon such Holder and upon all future Holders of this Debenture and of any Debenture issued upon the registration of transfer
hereof or in exchange herefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this Debenture. 

No reference herein to the Indenture and no provision of this Debenture or of the Indenture or amendment or modification hereof or
thereof shall alter or impair the obligation of the Company to pay the principal of and interest on this Debenture at the times, place and rate and in the coin or currency herein prescribed. 

In the event of a consolidation or merger of the Company into, or of the transfer of its assets substantially as an entirety to, a
successor entity in accordance with the Indenture, such successor entity shall assume payment of the Debenture and the performance of every covenant of the Indenture on the part of the Company, and in the event of any such transfer, the Company (or
the successor entity in the event of a subsequent consolidation, merger or transfer) shall be discharged from all obligations and covenants in respect of the Debentures and the Indenture and may be dissolved and liquidated, all as more fully set
forth in the Indenture. 
 The Debentures are originally issuable in such denominations as may be designated from time to time
by the Company, but in no event in an original denomination less than $1,000. Subject to the provisions of the Indenture (including without limitation Section 2.6 thereof), the transfer of this Debenture is registerable in the Securities
Register, upon surrender of this Debenture for registration of transfer at the office or agency of the Registrar duly endorsed by or accompanied by a written instrument of transfer in the form printed on this Debenture or in another form
satisfactory to the Company and the Registrar duly executed by the Holder hereof or such Holder’s attorney, duly authorized in writing, and thereupon one or more new Debentures, of authorized denominations and for the same aggregate principal
amount, will be issued to the designated transferee or transferees. The Registrar may assess service charges for any such registration or transfer or exchange, and the Registrar may require payment of a sum sufficient to cover any tax or other
governmental charge payable in connection therewith. 
 Prior to due presentment of this Debenture for registration of transfer,
the Company, the Trustee and any agent of the Company or the Trustee may treat the Person in whose name this Debenture is 

  
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registered as the owner hereof for all purposes, whether or not this Debenture be overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice to the contrary.

 This Debenture shall be governed by and construed in accordance with the internal laws of the State of Delaware, without
giving effect to the conflict of law provisions thereof. 
 FORM OF ASSIGNMENT 

(To be executed by the registered holder if such holder desires to transfer this Debenture) 

FOR VALUE RECEIVED the undersigned hereby sells, assigns and transfers unto 

 

			
	 	  	
		
	 	  	
		
	 	  	
	(Please print name and address of transferee above)	  	

 this Debenture, together with all right, title and interest therein, and does hereby irrevocably constitute and appoint
                                , as attorney-in-fact, to transfer the within
Debenture on the books kept for registration of the issuing corporation, with full power of substitution. 
 Dated:
                             
 Signature:
                                 

(Signature must conform in all respects to name of holder as specified on the face of the Debenture) 

Social Security or Other Identifying Number of Transferee:
                                        

 Signature Guaranteed: 

  
 5Form of Subscription Agreement

 Exhibit 4.3 
 GWG HOLDINGS, INC. 
 RENEWABLE SECURED DEBENTURE SUBSCRIPTION AGREEMENT

 To purchase a renewable secured debenture, please complete this form and write a check payable to GWG Holdings, Inc. Send
this subscription agreement along with your check and any other documents requested below to GWG Holdings, Inc., 220 South Sixth Street, Suite 1200, Minneapolis, Minnesota 55402, or to your broker-dealer. If you have any questions, please call GWG
Holdings, Inc. at 877-494-2388, or your broker-dealer. 
  

			
	DEBENTURE PURCHASE AMOUNT:	  	$                             
       
	 Note: minimum principal amount of $25,000.
 Above such minimum principal amount, debentures must be purchased in $1,000 increments.
	  	

 INTEREST PAYMENT SCHEDULE (please select one for each debenture): 

 

									
	 Debenture
 Term
	  	Principal	  	Monthly
Interest
Payments*	  	Annual
Interest
Payments	  	Upon
Maturity
	 Six month
	  	$                          
                          	  	 ̈	  	 ̈	  	 ̈
	 One year
	  	$                          
                          	  	 ̈	  	 ̈	  	 ̈
	 Two years
	  	$                          
                          	  	 ̈	  	 ̈	  	 ̈
	 Three years
	  	$                          
                          	  	 ̈	  	 ̈	  	 ̈
	 Four years
	  	$                          
                          	  	 ̈	  	 ̈	  	 ̈
	 Five years
	  	$                          
                          	  	 ̈	  	 ̈	  	 ̈
	 Seven years
	  	$                          
                          	  	 ̈	  	 ̈	  	 ̈
	 Total
	  	$                          
                          	  		  		  	

  

	*	The monthly payment date is the 15th calendar day (or, if such date is not a business day, then the next business day thereafter). 

 

			
	 FORM OF OWNERSHIP (please select one):
	  	
		
	  ̈       Individual Investor
	  	
 ̈       Joint Tenants with
right of survivorship 
 Note: Both joint tenants must sign this agreement.

		
	
 ̈       Corporation, LLC,
Partnership, Limited Partnership or Trust
 Note: Please include a trust resolution or the appropriate
corporation or partnership documents authorizing you to make this investment.
	  	
 ̈       Tenants in
Common
 Note: Both joint tenants must sign this agreement.

		
	  ̈       IRA, Employee Benefit Plan or other
retirement plan
	  	  ̈       Other (e.g., custodian for
minor)

 DEBENTURE PURCHASER: 

Full name of Individual Investor, Joint Tenants, Tenants in Common or custodian for minor: 

 
  

First
name                                 Middle
name                             Last name
                            SSN
                            Birthdate 
 Full name of second Joint Tenant, Tenant in Common or minor beneficiary (if applicable): 
  

 
 First
name                                 Middle
name                             Last name
                            SSN
                            Birthdate 
 Full name of Corporation, LLC, Partnership, Limited Partnership or Trust: 
  

 
 Print legal
name
                                         
                                         
                                      TIN 

Full name and title of authorized agent, partner, representative or trustee (as applicable): 

 
  

First
name                               Middle
name                            Last
name                             Title 
 PRIMARY ADDRESS (correspondence will be sent to this address): * 
  

 
 Address
                                         
           City
                                         
           State                              
                       Zip code 
  

 
 Daytime phone
                                      Evening phone

  
  
 Email address * 
  

	*	All reports, notices and information will be sent to the email address indicated above. In the event GWG Holdings receives notice that an email transmission has failed
to be delivered, reports, notice and information will be mailed to the address above. Please note that the indenture for the renewable secured debentures permits GWG Holdings to charge you the cost of mailing such reports, notices and information.
See section 2.14 of the indenture. If you do not wish to receive reports and information in electronic format by email, please contact GWG Holdings at 877-494-2388. 

 DIRECT DEPOSIT: GWG Holdings will electronically deposit your principal and interest payments to the account listed on your Direct Deposit Form (attached below). Please complete and sign the
reverse side of the Direct Deposit Form for automatic deposit to either your checking or savings account. 
 PASSWORD: When you call GWG
Holdings to discuss your investment, you may be asked to verify your identification by answering the following question. What is your mother’s maiden name? 
 Answer:
                                         
                                         
                                         
     . 

 CERTIFICATION: Under penalties of perjury, I hereby declare and certify that: 

 

	 	•	 	 I am a bona fide resident of the state listed in the primary mailing address; 

 

	 	•	 	 I have received and read the prospectus (and all documents incorporated by reference into the prospectus) provided by GWG Holdings, Inc. and understand
the risks associated with this investment; 

  

	 	•	 	 I have determined that this investment is suitable for me; 

 

	 	•	 	 I understand that the debentures are an obligation of GWG Holdings, Inc. only and are not bank certificates of deposit and are not guaranteed or
insured by the FDIC or any other entity (other than GWG Life Settlements, LLC, a wholly owned subsidiary of GWG Holdings, Inc.), the debentures are illiquid and do not trade in a secondary market, and that I risk the loss of my entire principal
amount and all accrued but unpaid interest when purchasing the debentures; 

  

	 	•	 	 the social security number or tax identification number listed above is correct; and 

 

	 	•	 	 I am not subject to backup withholding, either because the Internal Revenue Service has not notified me that I am subject to backup withholding as a
result of a failure to report all interest or dividends or I have been notified that I am no longer subject to backup withholding. 

 I understand that my purchase offer is subject to the terms contained in the prospectus, may be rejected in whole or in part and will not become effective until accepted by GWG Holdings, Inc. 

SIGNATURES: 
  

					
	Individuals, Joint Tenants, Tenants in Common or Custodians for Minors:	 		 	Corporation, LLC, Partnership, Limited Partnership or Trust:
			
	  	 		 	  
	Individual, First Joint Tenant, Tenant in Common or custodian for minor	 		 	Name of Corporation, LLC, Partnership, Limited Partnership of Trust
			
	 	 		 	 
	(Second Joint Tenant or Tenant in Common, if applicable)	 		 	Signature of Signor and Title
			
	 	 		 	 
	 Date
	 		 	Date

   
 DIRECT DEPOSIT FORM 
  

 
 Direct Deposit Account
Information (please check one): 
  

	 	 ̈	I currently receive direct deposit payments from an existing GWG investment. Please deposit all principal and interest payments for this/these new debenture(s) into the
same account. 

  

	 	 ̈	Please deposit my payments into the account listed below. Note: If this option is chosen, the account owner must attach a VOIDED check (or deposit slip if
the account is a savings account) to the reverse side of this form. 

 Account Owner Name(s):
                                         
              ̈ Checking     ̈ Savings     ̈ Other 
 Account
Number:                                        
                             
 Bank Routing Number (9 digits):  ̈  ̈  ̈  ̈  ̈  ̈  ̈  ̈  ̈ 
 Bank Name:
                                         
                      Branch Location:
                                         
    
 Note: Some financial institutions (e.g., brokerage firms, custodians, mutual savings
banks, credit unions, money market funds, etc.) also require “for further credit” information to correctly indentify direct deposit accounts. If your financial institution requires this additional information, please list it below. If you
are unsure if this additional information is required, please call your financial institution. 
 For further credit:
                                         
                                

DIRECT DEPOSIT AUTHORIZATION 

As the investor of record and authorized signatory of the account listed above, I hereby authorize GWG Holdings, Inc., its affiliates, or its agents
(collectively referred to hereinafter as “GWG”) to deposit interest and principal payments owed to me by initiating account credit entries to my financial institution listed on this form. Further, I authorize my financial institution to
accept and to credit any credit entries initiated by GWG to the listed account. In the event of an erroneous credit entry, I also authorize GWG to debit the account for an amount not to exceed the original amount of the erroneous credit. This
authorization shall remain in full force and effect until GWG and my financial institution have received written notice from me of its termination in such time and in such manner as to afford GWG and my financial institution reasonable opportunity
to act on it. In the event the listed account is closed, I will promptly notify GWG of an alternate account into which payments can be made. 

									
					
	By:	 	 	 		 		 	 
		 	Authorized Signature	 		 		 	Date

 Mail to: GWG Holdings, Inc., 222 South Sixth Street, Suite 1200, Minneapolis, MN 55402. 

 [REVERSE SIDE OF DIRECT DEPOSIT FORM] 

ATTACH VOIDED CHECK or DEPOSIT SLIP HERE

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