Document:

Exhibit
10.84

 

SECURITIES
PURCHASE AGREEMENT

 

This Securities Purchase
Agreement (this “Agreement”) is dated as of September ___, 2017, between Aethlon Medical, Inc., a Nevada corporation
(the “Company”), and each purchaser identified on the signature pages hereto (each, including its successors
and assigns, a “Purchaser” and collectively the “Purchasers”).

 

WHEREAS, subject to
the terms and conditions set forth in this Agreement and pursuant to an effective registration statement under the Securities
Act of 1933, as amended (the “Securities Act”), the Company desires to issue and sell to each Purchaser, and
each Purchaser, severally and not jointly, desires to purchase from the Company, securities of the Company as more fully described
in this Agreement.

 

NOW, THEREFORE, IN
CONSIDERATION of the mutual covenants contained in this Agreement, and for other good and valuable consideration the receipt and
adequacy of which are hereby acknowledged, the Company and each Purchaser agree as follows:

 

ARTICLE I.

 

DEFINITIONS

 

1.1           
 Definitions. In addition to the terms defined elsewhere in this Agreement, for all purposes of this Agreement, the
following terms have the meanings set forth in this Section 1.1:

 

“Acquiring
Person” shall have the meaning ascribed to such term in Section 4.5.

 

“Action”
shall have the meaning ascribed to such term in Section 3.1(j).

 

“Affiliate”
means any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common
control with a Person as such terms are used in and construed under Rule 405 under the Securities Act.

 

“Board
of Directors” means the board of directors of the Company.

 

“Business
Day” means any day except any Saturday, any Sunday, any day which is a federal legal holiday in the United States or
any day on which banking institutions in the State of New York are authorized or required by law or other governmental action
to close.

 

“Class
A Warrants” means, collectively, the Common Stock purchase warrants delivered to the Purchasers at the Closing in accordance
with Section 2.2(a) hereof, which Warrants shall be exercisable immediately and have a term of exercise equal to five (5) years,
in the form of Exhibit A attached hereto.

 

“Class
B Warrants” means, collectively, the Common Stock purchase warrants delivered to the Purchasers at the Closing in accordance
with Section 2.2(a) hereof, which Warrants shall be exercisable immediately, in the form of Exhibit B attached hereto.

 

“Closing”
means the closing of the purchase and sale of the Securities pursuant to Section 2.1.

 

“Closing
Date” means the Trading Day on which all of the Transaction Documents have been executed and delivered by the applicable
parties thereto, and all conditions precedent to (i) the Purchasers’ obligations to pay the Subscription Amount and (ii)
the Company’s obligations to deliver the Securities, in each case, have been satisfied or waived, but in no event later
than the second (2nd) Trading Day following the date hereof.

 

“Commission”
means the United States Securities and Exchange Commission.

 

“Common
Stock” means the common stock of the Company, par value $0.001 per share, and any other class of securities into which
such securities may hereafter be reclassified or changed.

 

 

 

 

    	 	1	 

     

    

 

“Common
Stock Equivalents” means any securities of the Company or the Subsidiaries which would entitle the holder thereof to
acquire at any time Common Stock, including, without limitation, any debt, preferred stock, right, option, warrant or other instrument
that is at any time convertible into or exercisable or exchangeable for, or otherwise entitles the holder thereof to receive,
Common Stock.

 

“Company
Counsel” means Jolie Kahn, Esq., with offices located at 33 Edgewood, Locust Valley, NY 11560.

 

“EGS”
means Ellenoff Grossman & Schole LLP, with offices located at 1345 Avenue of the Americas, New York, New York 10105-0302.

 

“Evaluation
Date” shall have the meaning ascribed to such term in Section 3.1(s).

 

“Exchange
Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

 

“Exempt
Issuance” means the issuance of (a) shares of Common Stock or options to employees, officers or directors of the Company
pursuant to any stock or option plan duly adopted for such purpose, by a majority of the non-employee members of the Board of
Directors or a majority of the members of a committee of non-employee directors established for such purpose for services rendered
to the Company, (b) securities upon the exercise or exchange of or conversion of any Securities issued hereunder and/or other
securities exercisable or exchangeable for or convertible into shares of Common Stock issued and outstanding on the date of this
Agreement, provided that such securities have not been amended since the date of this Agreement to increase the number of such
securities or to decrease the exercise price, exchange price or conversion price of such securities (other than in connection
with stock splits or combinations) or to extend the term of such securities, and (c) securities issued pursuant to acquisitions
or strategic transactions approved by a majority of the disinterested directors of the Company, provided that such securities
are issued as “restricted securities” (as defined in Rule 144) and carry no registration rights that require or permit
the filing of any registration statement in connection therewith during the prohibition period in Section 4.12(a) herein, and
provided that any such issuance shall only be to a Person (or to the equityholders of a Person) which is, itself or through its
subsidiaries, an operating company or an owner of an asset in a business synergistic with the business of the Company and shall
provide to the Company additional benefits in addition to the investment of funds, but shall not include a transaction in which
the Company is issuing securities primarily for the purpose of raising capital or to an entity whose primary business is investing
in securities.

 

“FCPA”
means the Foreign Corrupt Practices Act of 1977, as amended.

 

“FDA”
shall have the meaning ascribed to such term in Section 3.1(hh).

 

“FDCA”
shall have the meaning ascribed to such term in Section 3.1(hh).

 

“GAAP”
shall have the meaning ascribed to such term in Section 3.1(h).

 

“Indebtedness”
shall have the meaning ascribed to such term in Section 3.1(aa).

 

“Intellectual
Property Rights” shall have the meaning ascribed to such term in Section 3.1(p).

 

“Liens”
means a lien, charge, pledge, security interest, encumbrance, right of first refusal, preemptive right or other restriction.

 

“Material
Adverse Effect” shall have the meaning assigned to such term in Section 3.1(b).

 

“Material
Permits” shall have the meaning ascribed to such term in Section 3.1(n).

 

 

 

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“Per
Share Purchase Price” equals $_______, subject to adjustment for reverse and forward stock splits, stock dividends,
stock combinations and other similar transactions of the Common Stock that occur after the date of this Agreement.

 

“Person”
means an individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability
company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind.

 

“Pharmaceutical
Product” shall have the meaning ascribed to such term in Section 3.1(hh).

 

“Placement
Agent” means H.C. Wainwright & Co., LLC.

 

“Proceeding”
means an action, claim, suit, investigation or proceeding (including, without limitation, an informal investigation or partial
proceeding, such as a deposition), whether commenced or threatened.

 

“Prospectus”
means the final prospectus filed for the Registration Statement.

 

“Prospectus
Supplement” means the supplement to the Prospectus complying with Rule 424(b) of the Securities Act that is filed with
the Commission and delivered by the Company to each Purchaser at the Closing.

 

“Purchaser
Party” shall have the meaning ascribed to such term in Section 4.8.

 

“Registration
Statement” means the effective registration statement with Commission file No. 333-219589 which registers the sale of
the Shares, the Warrants and the Warrant Shares to the Purchasers.

 

“Required
Approvals” shall have the meaning ascribed to such term in Section 3.1(e).

 

“Rule
144” means Rule 144 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended or interpreted
from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same purpose
and effect as such Rule.

 

“Rule
424” means Rule 424 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended or interpreted
from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same purpose
and effect as such Rule.

 

“SEC
Reports” shall have the meaning ascribed to such term in Section 3.1(h).

 

“Securities”
means the Shares, the Warrants and the Warrant Shares.

 

“Securities
Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

 

“Shares”
means the shares of Common Stock issued or issuable to each Purchaser pursuant to this Agreement.

 

“Short
Sales” means all “short sales” as defined in Rule 200 of Regulation SHO under the Exchange Act (but shall
not be deemed to include locating and/or borrowing shares of Common Stock). 

 

“Subscription
Amount” means, as to each Purchaser, the aggregate amount to be paid for Shares and Warrants purchased hereunder as
specified below such Purchaser’s name on the signature page of this Agreement and next to the heading “Subscription
Amount,” in United States dollars and in immediately available funds.

 

 

 

 

    	 	3	 

     

    

 

“Subsidiary”
means any subsidiary of the Company and shall, where applicable, also include any direct or indirect subsidiary of the Company
formed or acquired after the date hereof.

 

“Trading
Day” means a day on which the principal Trading Market is open for trading.

 

“Trading
Market” means any of the following markets or exchanges on which the Common Stock is listed or quoted for trading on
the date in question: the NYSE American, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market
or the New York Stock Exchange (or any successors to any of the foregoing).

 

“Transaction
Documents” means this Agreement, the Warrants, all exhibits and schedules thereto and hereto and any other documents
or agreements executed in connection with the transactions contemplated hereunder.

 

“Transfer
Agent” means Computershare Investor Services, the current transfer agent of the Company, with a mailing address of 350
Indiana Street, Suite 800, Golden, Colorado 80401 and a facsimile number of _______________, and any successor transfer agent
of the Company.

 

“Variable
Rate Transaction” shall have the meaning ascribed to such term in Section 4.12(b).

 

“Warrants”
means, collectively, the Class A Warrants and the Class B Warrants.

 

“Warrant
Shares” means the shares of Common Stock issuable upon exercise of the Warrants.

 

ARTICLE II.

 

PURCHASE AND SALE

 

2.1           
Closing. On the Closing Date, upon the terms and subject to the conditions set forth herein, substantially concurrent
with the execution and delivery of this Agreement by the parties hereto, the Company agrees to sell, and the Purchasers, severally
and not jointly, agree to purchase, up to an aggregate of up to $_____ million of Shares (or Class B Warrants) and Class A Warrants
as calculated pursuant to Section 2.2(a).  Notwithstanding anything herein to the contrary, to the extent that a Purchaser
determines, in its sole discretion, that such Purchaser’s Subscription Amount (together with such Purchaser’s Affiliates
and any Person acting as a group together with such Purchaser or any of such Purchaser’s Affiliates) would cause such Purchaser’s
beneficial ownership of the shares of Common Stock to exceed 4.99% (or, at the election of the Purchaser, 9.99%) of the outstanding
shares of Common Stock, such Purchaser may elect to purchase Class B Warrants in lieu of the Shares as determined pursuant to
Section 2.2(a); provided, however, that, in the event that a Purchaser’s Subscription Amount (together with such Purchaser’s
Affiliates and any Person acting as a group together with such Purchaser or any of such Purchaser’s Affiliates) would cause
such Purchaser’s beneficial ownership of the shares of Common Stock to exceed 19.99% of the outstanding shares of Common
Stock, in lieu of shares of Common Stock in excess of such amount, such Purchaser may be entitled to purchase Class B Warrants
as determined pursuant to Section 2.2(a).  In each case, it appears that the election to receive pre-funded warrants is solely
at the option of the Purchaser. Each Purchaser’s Subscription Amount as set forth on the signature page hereto executed
by such Purchaser shall be made available for “Delivery Versus Payment” settlement with the Company. The Company shall
deliver to each Purchaser its respective Shares (or Class B Warrants) and Class A Warrants as determined pursuant to Section 2.2(a),
and the Company and each Purchaser shall deliver the other items set forth in Section 2.2 deliverable at the Closing.  Upon
satisfaction of the covenants and conditions set forth in Sections 2.2 and 2.3, the Closing shall occur at the offices of the
Placement Agent or such other location as the parties shall mutually agree.  Unless otherwise directed by the Placement Agent,
settlement of the Shares shall occur via “Delivery Versus Payment” (“DVP”) (i.e., on
the Closing Date, the Company shall issue the Shares registered in the Purchasers’ names and addresses and released by the
Transfer Agent directly to the account(s) at the Placement Agent identified by each Purchaser; upon receipt of such Shares, the
Placement Agent shall promptly electronically deliver such Shares and deliver the Warrants in physical form to the applicable
Purchaser, and payment therefor shall be made by the Placement Agent (or its clearing firm) by wire transfer to the Company).
The Company covenants that, if the Purchaser delivers a Notice of Exercise (as defined in the Class B Warrants) on or prior to
12:00 p.m. (New York City time) on the Closing Date to exercise any Class B Warrants, the Company shall deliver shares of Common
Stock with respect to the Class B Warrants to the Purchaser by 4:00 p.m. on the Closing Date in connection with such Notice of
Exercise.

 

 

 

    	 	4	 

     

    

 

2.2           
Deliveries.

 

(a)            
On or prior to the Closing Date, the Company shall deliver or cause to be delivered to each Purchaser the following:

 

(i)             
this Agreement duly executed by the Company;

 

(ii)           
a legal opinion of Company Counsel, acceptable to the Placement Agent;

 

(iii)         
subject to the last sentence of Section 2.1, the Company shall have provided each Purchaser with the Company’s wire
instructions, on Company letterhead and executed by the Chief Executive Officer or Chief Financial Officer;

 

(iv)          
subject to the last sentence of Section 2.1, a copy of the irrevocable instructions to the Transfer Agent instructing the
Transfer Agent to deliver on an expedited basis via The Depository Trust Company Deposit or Withdrawal at Custodian system (“DWAC”)
Shares equal to such Purchaser’s Subscription Amount divided by the Per Share Purchase Price, registered in the name of
such Purchaser;

 

(v)            
a Class A Warrant registered in the name of such Purchaser to purchase up to a number of shares of Common Stock equal to
___% of such Purchaser’s Shares, with an exercise price equal to $_____, subject to adjustment therein;

 

(vi)          
if applicable, a Class B Warrant registered in the name of such Purchaser to purchase up to a number of shares of Common
Stock equal to the difference the difference between (A) such Purchaser’s Subscription Amount divided by the Per Share Purchase
Price and (B) the number of Shares otherwise issuable to such Purchaser that would cause such Purchaser’s Beneficial Ownership
to be more than 4.99%, 9.99% or 19.99%, as applicable, of the issued and outstanding shares of Common Stock, with an exercise
price of $0.01 per share, subject to adjustment therein; and

 

(vii)        
the Prospectus and Prospectus Supplement (which may be delivered in accordance with Rule 172 under the Securities Act).

 

(b)            
On or prior to the Closing Date, each Purchaser shall deliver or cause to be delivered to the Company the following:

 

(i)             
this Agreement duly executed by such Purchaser; and

 

(ii)           
immediately available funds equal to such Purchaser’s Subscription Amount (less, if applicable, the aggregate exercise
price of the Class B Warrants issuable to such Purchaser hereunder), which shall be made available for “Delivery Versus
Payment” settlement with the Company and, as to the Class B Warrants, will be wired to the account designed by the Company
in writing.

 

2.3           
Closing Conditions.

 

(a)       The
obligations of the Company hereunder in connection with the Closing are subject to the following conditions being met:

 

(i)             
the accuracy in all material respects (or, to the extent representations or warranties are qualified by materiality or
Material Adverse Effect, in all respects) on the Closing Date of the representations and warranties of the Purchasers contained
herein (unless as of a specific date therein in which case they shall be accurate as of such date);

 

(ii)           
all obligations, covenants and agreements of each Purchaser required to be performed at or prior to the Closing Date shall
have been performed; and

 

(iii)         
the delivery by each Purchaser of the items set forth in Section 2.2(b) of this Agreement.

 

 

 

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(b)            
The respective obligations of the Purchasers hereunder in connection with the Closing are subject to the following conditions
being met:

 

(i)             
the accuracy in all material respects (or, to the extent representations or warranties are qualified by materiality or
Material Adverse Effect, in all respects) when made and on the Closing Date of the representations and warranties of the Company
contained herein (unless as of a specific date therein in which case they shall be accurate as of such date);

 

(ii)           
all obligations, covenants and agreements of the Company required to be performed at or prior to the Closing Date shall
have been performed;

 

(iii)         
the delivery by the Company of the items set forth in Section 2.2(a) of this Agreement;

 

(iv)          
there shall have been no Material Adverse Effect with respect to the Company since the date hereof; and

 

(v)            
from the date hereof to the Closing Date, trading in the Common Stock shall not have been suspended by the Commission or
the Company’s principal Trading Market, and, at any time prior to the Closing Date, trading in securities generally as reported
by Bloomberg L.P. shall not have been suspended or limited, or minimum prices shall not have been established on securities whose
trades are reported by such service, or on any Trading Market, nor shall a banking moratorium have been declared either by the
United States or New York State authorities nor shall there have occurred any material outbreak or escalation of hostilities or
other national or international calamity of such magnitude in its effect on, or any material adverse change in, any financial
market which, in each case, in the reasonable judgment of such Purchaser, makes it impracticable or inadvisable to purchase the
Securities at the Closing.

 

ARTICLE III.

 

REPRESENTATIONS AND WARRANTIES

 

3.1             
Representations and Warranties of the Company. The Company hereby makes the following representations and warranties
to each Purchaser:

 

(a)            
Subsidiaries. All of the direct and indirect subsidiaries of the Company are set forth in the SEC Reports. The Company
owns, directly or indirectly, all of the capital stock or other equity interests of each Subsidiary free and clear of any Liens,
and all of the issued and outstanding shares of capital stock of each Subsidiary are validly issued and are fully paid, non-assessable
and free of preemptive and similar rights to subscribe for or purchase securities. If the Company has no subsidiaries, all other
references to the Subsidiaries or any of them in the Transaction Documents shall be disregarded.

 

(b)            
Organization and Qualification. The Company and each of the Subsidiaries is an entity duly incorporated or otherwise
organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation or organization, with
the requisite power and authority to own and use its properties and assets and to carry on its business as currently conducted.
Neither the Company nor any Subsidiary is in violation nor default of any of the provisions of its respective certificate or articles
of incorporation, bylaws or other organizational or charter documents. Each of the Company and the Subsidiaries is duly qualified
to conduct business and is in good standing as a foreign corporation or other entity in each jurisdiction in which the nature
of the business conducted or property owned by it makes such qualification necessary, except where the failure to be so qualified
or in good standing, as the case may be, could not have or reasonably be expected to result in: (i) a material adverse effect
on the legality, validity or enforceability of any Transaction Document, (ii) a material adverse effect on the results of operations,
assets, business, prospects or condition (financial or otherwise) of the Company and the Subsidiaries, taken as a whole, or (iii)
a material adverse effect on the Company’s ability to perform in any material respect on a timely basis its obligations
under any Transaction Document (any of (i), (ii) or (iii), a “Material Adverse Effect”) and no Proceeding has
been instituted in any such jurisdiction revoking, limiting or curtailing or seeking to revoke, limit or curtail such power and
authority or qualification.

 

 

 

    	 	6	 

     

    

 

(c)            
Authorization; Enforcement. The Company has the requisite corporate power and authority to enter into and to consummate
the transactions contemplated by this Agreement and each of the other Transaction Documents and otherwise to carry out its obligations
hereunder and thereunder. The execution and delivery of this Agreement and each of the other Transaction Documents by the Company
and the consummation by it of the transactions contemplated hereby and thereby have been duly authorized by all necessary action
on the part of the Company and no further action is required by the Company, the Board of Directors or the Company’s stockholders
in connection herewith or therewith other than in connection with the Required Approvals. This Agreement and each other Transaction
Document to which it is a party has been (or upon delivery will have been) duly executed by the Company and, when delivered in
accordance with the terms hereof and thereof, will constitute the valid and binding obligation of the Company enforceable against
the Company in accordance with its terms, except (i) as limited by general equitable principles and applicable bankruptcy, insolvency,
reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights generally, (ii)
as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies and (iii)
insofar as indemnification and contribution provisions may be limited by applicable law.

 

(d)            
No Conflicts. The execution, delivery and performance by the Company of this Agreement and the other Transaction
Documents to which it is a party, the issuance and sale of the Securities and the consummation by it of the transactions contemplated
hereby and thereby do not and will not (i) conflict with or violate any provision of the Company’s or any Subsidiary’s
certificate or articles of incorporation, bylaws or other organizational or charter documents, or (ii) conflict with, or constitute
a default (or an event that with notice or lapse of time or both would become a default) under, result in the creation of any
Lien upon any of the properties or assets of the Company or any Subsidiary, or give to others any rights of termination, amendment,
acceleration or cancellation (with or without notice, lapse of time or both) of, any agreement, credit facility, debt or other
instrument (evidencing a Company or Subsidiary debt or otherwise) or other understanding to which the Company or any Subsidiary
is a party or by which any property or asset of the Company or any Subsidiary is bound or affected, or (iii) subject to the Required
Approvals, conflict with or result in a violation of any law, rule, regulation, order, judgment, injunction, decree or other restriction
of any court or governmental authority to which the Company or a Subsidiary is subject (including federal and state securities
laws and regulations), or by which any property or asset of the Company or a Subsidiary is bound or affected; except in the case
of each of clauses (ii) and (iii), such as could not have or reasonably be expected to result in a Material Adverse Effect.

 

(e)            
Filings, Consents and Approvals. The Company is not required to obtain any consent, waiver, authorization or order
of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental
authority or other Person in connection with the execution, delivery and performance by the Company of the Transaction Documents,
other than: (i) the filings required pursuant to Section 4.4 of this Agreement, (ii) the filing with the Commission of the Prospectus
Supplement, (iii) application(s) to each applicable Trading Market for the listing of the Shares and Warrant Shares for trading
thereon in the time and manner required thereby, and (iv) such filings as are required to be made under applicable state securities
laws (collectively, the “Required Approvals”).

 

(f)             
Issuance of the Securities; Registration. The Securities are duly authorized and, when issued and paid for in accordance
with the applicable Transaction Documents, will be duly and validly issued, fully paid and nonassessable, free and clear of all
Liens imposed by the Company. The Warrant Shares, when issued in accordance with the terms of the Warrants, will be validly issued,
fully paid and nonassessable, free and clear of all Liens imposed by the Company. The Company has reserved from its duly authorized
capital stock the maximum number of shares of Common Stock issuable pursuant to this Agreement and the Warrants. The Company has
prepared and filed the Registration Statement in conformity with the requirements of the Securities Act, which became effective
on _____________ (the “Effective Date”), including the Prospectus, and such amendments and supplements
thereto as may have been required to the date of this Agreement. The Registration Statement is effective under the Securities
Act and no stop order preventing or suspending the effectiveness of the Registration Statement or suspending or preventing the
use of the Prospectus has been issued by the Commission and no proceedings for that purpose have been instituted or, to the knowledge
of the Company, are threatened by the Commission. The Company, if required by the rules and regulations of the Commission, shall
file the Prospectus with the Commission pursuant to Rule 424(b). At the time the Registration Statement and any amendments thereto
became effective, at the date of this Agreement and at the Closing Date, the Registration Statement and any amendments thereto
conformed and will conform in all material respects to the requirements of the Securities Act and did not and will not contain
any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make
the statements therein not misleading; and the Prospectus and any amendments or supplements thereto, at time the Prospectus or
any amendment or supplement thereto was issued and at the Closing Date, conformed and will conform in all material respects to
the requirements of the Securities Act and did not and will not contain an untrue statement of a material fact or omit to state
a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made,
not misleading.

 

 

 

    	 	7	 

     

    

 

(g)            
Capitalization. The capitalization of the Company is as set forth in the SEC Reports. The Company has not issued
any capital stock since its most recently filed periodic report under the Exchange Act, other than pursuant to the exercise of
employee stock options under the Company’s stock option plans, the issuance of shares of Common Stock to employees pursuant
to the Company’s employee stock purchase plans and pursuant to the conversion and/or exercise of Common Stock Equivalents
outstanding as of the date of the most recently filed periodic report under the Exchange Act. No Person has any right of first
refusal, preemptive right, right of participation, or any similar right to participate in the transactions contemplated by the
Transaction Documents. Except as a result of the purchase and sale of the Securities, there are no outstanding options, warrants,
scrip rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities, rights or obligations
convertible into or exercisable or exchangeable for, or giving any Person any right to subscribe for or acquire, any shares of
Common Stock or the capital stock of any Subsidiary, or contracts, commitments, understandings or arrangements by which the Company
or any Subsidiary is or may become bound to issue additional shares of Common Stock or Common Stock Equivalents or capital stock
of any Subsidiary. The issuance and sale of the Securities will not obligate the Company or any Subsidiary to issue shares of
Common Stock or other securities to any Person (other than the Purchasers) and will not result in a right of any holder of Company
securities to adjust the exercise, conversion, exchange or reset price under any of such securities. There are no outstanding
securities or instruments of the Company or any Subsidiary that contain any redemption or similar provisions, and there are no
contracts, commitments, understandings or arrangements by which the Company or any Subsidiary is or may become bound to redeem
a security of the Company or such Subsidiary. The Company does not have any stock appreciation rights or “phantom stock”
plans or agreements or any similar plan or agreement. All of the outstanding shares of capital stock of the Company are duly authorized,
validly issued, fully paid and nonassessable, have been issued in compliance with all federal and state securities laws, and none
of such outstanding shares was issued in violation of any preemptive rights or similar rights to subscribe for or purchase securities.
No further approval or authorization of any stockholder, the Board of Directors or others is required for the issuance and sale
of the Securities. There are no stockholders agreements, voting agreements or other similar agreements with respect to the Company’s
capital stock to which the Company is a party or, to the knowledge of the Company, between or among any of the Company’s
stockholders.

 

(h)            
SEC Reports; Financial Statements. The Company has filed all reports, schedules, forms, statements and other documents
required to be filed by the Company under the Securities Act and the Exchange Act, including pursuant to Section 13(a) or 15(d)
thereof, for the two years preceding the date hereof (or such shorter period as the Company was required by law or regulation
to file such material) (the foregoing materials, including the exhibits thereto and documents incorporated by reference therein,
together with the Prospectus and the Prospectus Supplement, being collectively referred to herein as the “SEC Reports”)
on a timely basis or has received a valid extension of such time of filing and has filed any such SEC Reports prior to the expiration
of any such extension. As of their respective dates, the SEC Reports complied in all material respects with the requirements of
the Securities Act and the Exchange Act, as applicable, and none of the SEC Reports, when filed, contained any untrue statement
of a material fact or omitted to state a material fact required to be stated therein or necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not misleading. The Company has never been an issuer subject
to Rule 144(i) under the Securities Act. The financial statements of the Company included in the SEC Reports comply in all material
respects with applicable accounting requirements and the rules and regulations of the Commission with respect thereto as in effect
at the time of filing. Such financial statements have been prepared in accordance with United States generally accepted accounting
principles applied on a consistent basis during the periods involved (“GAAP”), except as may be otherwise specified
in such financial statements or the notes thereto and except that unaudited financial statements may not contain all footnotes
required by GAAP, and fairly present in all material respects the financial position of the Company and its consolidated Subsidiaries
as of and for the dates thereof and the results of operations and cash flows for the periods then ended, subject, in the case
of unaudited statements, to normal, immaterial, year-end audit adjustments.

 

(i)             
Material Changes; Undisclosed Events, Liabilities or Developments. Since the date of the latest audited financial
statements included within the SEC Reports, except as set forth in
the SEC Reports, (i) there has been no event, occurrence or development that has had or that could reasonably be expected to result
in a Material Adverse Effect, (ii) the Company has not incurred any liabilities (contingent or otherwise) other than (A) trade
payables and accrued expenses incurred in the ordinary course of business consistent with past practice and (B) liabilities not
required to be reflected in the Company’s financial statements pursuant to GAAP or disclosed in filings made with the Commission,
(iii) the Company has not altered its method of accounting, (iv) the Company has not declared or made any dividend or distribution
of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of
its capital stock and (v) the Company has not issued any equity securities to any officer, director or Affiliate, except pursuant
to existing Company stock option plans. The Company does not have pending before the Commission any request for confidential treatment
of information. Except for the issuance of the Securities contemplated by this Agreement or as set forth in the SEC Reports, no
event, liability, fact, circumstance, occurrence or development has occurred or exists or is reasonably expected to occur or exist
with respect to the Company or its Subsidiaries or their respective businesses, prospects, properties, operations, assets or financial
condition that would be required to be disclosed by the Company under applicable securities laws at the time this representation
is made or deemed made that has not been publicly disclosed at least 1 Trading Day prior to the date that this representation
is made.

 

 

 

    	 	8	 

     

    

 

(j)             
Litigation. There is no action, suit, inquiry, notice of violation, proceeding or investigation pending or, to the
knowledge of the Company, threatened against or affecting the Company, any Subsidiary or any of their respective properties before
or by any court, arbitrator, governmental or administrative agency or regulatory authority (federal, state, county, local or foreign)
(collectively, an “Action”) which (i) adversely affects or challenges the legality, validity or enforceability
of any of the Transaction Documents or the Securities or (ii) could, if there were an unfavorable decision, have or reasonably
be expected to result in a Material Adverse Effect. Neither the Company nor any Subsidiary, nor any director or officer thereof,
is or has been the subject of any Action involving a claim of violation of or liability under federal or state securities laws
or a claim of breach of fiduciary duty. There has not been, and to the knowledge of the Company, there is not pending or contemplated,
any investigation by the Commission involving the Company or any current or former director or officer of the Company. The Commission
has not issued any stop order or other order suspending the effectiveness of any registration statement filed by the Company or
any Subsidiary under the Exchange Act or the Securities Act.

 

(k)            
Labor Relations. No labor dispute exists or, to the knowledge of the Company, is imminent with respect to any of
the employees of the Company, which could reasonably be expected to result in a Material Adverse Effect. None of the Company’s
or its Subsidiaries’ employees is a member of a union that relates to such employee’s relationship with the Company
or such Subsidiary, and neither the Company nor any of its Subsidiaries is a party to a collective bargaining agreement, and the
Company and its Subsidiaries believe that their relationships with their employees are good. To the knowledge of the Company,
no executive officer of the Company or any Subsidiary, is, or is now expected to be, in violation of any material term of any
employment contract, confidentiality, disclosure or proprietary information agreement or non-competition agreement, or any other
contract or agreement or any restrictive covenant in favor of any third party, and the continued employment of each such executive
officer does not subject the Company or any of its Subsidiaries to any liability with respect to any of the foregoing matters.
The Company and its Subsidiaries are in compliance with all U.S. federal, state, local and foreign laws and regulations relating
to employment and employment practices, terms and conditions of employment and wages and hours, except where the failure to be
in compliance could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

 

(l)             
Compliance. Neither the Company nor any Subsidiary: (i) is in default under or in violation of (and no event has
occurred that has not been waived that, with notice or lapse of time or both, would result in a default by the Company or any
Subsidiary under), nor has the Company or any Subsidiary received notice of a claim that it is in default under or that it is
in violation of, any indenture, loan or credit agreement or any other agreement or instrument to which it is a party or by which
it or any of its properties is bound (whether or not such default or violation has been waived), (ii) is in violation of any judgment,
decree or order of any court, arbitrator or other governmental authority or (iii) is or has been in violation of any statute,
rule, ordinance or regulation of any governmental authority, including without limitation all foreign, federal, state and local
laws relating to taxes, environmental protection, occupational health and safety, product quality and safety and employment and
labor matters, except in each case as could not have or reasonably be expected to result in a Material Adverse Effect.

 

(m)          
Environmental Laws.The Company and its Subsidiaries (i) are in compliance with all federal, state, local and
foreign laws relating to pollution or protection of human health or the environment (including ambient air, surface water, groundwater,
land surface or subsurface strata), including laws relating to emissions, discharges, releases or threatened releases of chemicals,
pollutants, contaminants, or toxic or hazardous substances or wastes (collectively, “Hazardous Materials”)
into the environment, or otherwise relating to the manufacture, processing, distribution, use, treatment, storage, disposal, transport
or handling of Hazardous Materials, as well as all authorizations, codes, decrees, demands, or demand letters, injunctions, judgments,
licenses, notices or notice letters, orders, permits, plans or regulations, issued, entered, promulgated or approved thereunder
(“Environmental Laws”); (ii) have received all permits licenses or other approvals required of them under applicable
Environmental Laws to conduct their respective businesses; and (iii) are in compliance with all terms and conditions of any such
permit, license or approval where in each clause (i), (ii) and (iii), the failure to so comply could be reasonably expected to
have, individually or in the aggregate, a Material Adverse Effect.

 

(n)            
Regulatory Permits. The Company and the Subsidiaries possess all certificates, authorizations and permits issued
by the appropriate federal, state, local or foreign regulatory authorities necessary to conduct their respective businesses as
described in the SEC Reports, except where the failure to possess such permits could not reasonably be expected to result in a
Material Adverse Effect (“Material Permits”), and neither the Company nor any Subsidiary has received any notice
of proceedings relating to the revocation or modification of any Material Permit.

 

 

 

    	 	9	 

     

    

 

(o)            
Title to Assets. The Company and the Subsidiaries have good and marketable title in fee simple to all real property
owned by them and good and marketable title in all personal property owned by them that is material to the business of the Company
and the Subsidiaries, in each case free and clear of all Liens, except for (i) Liens as do not materially affect the value of
such property and do not materially interfere with the use made and proposed to be made of such property by the Company and the
Subsidiaries and (ii) Liens for the payment of federal, state or other taxes, for which appropriate reserves have been made therefor
in accordance with GAAP and, the payment of which is neither delinquent nor subject to penalties. Any real property and facilities
held under lease by the Company and the Subsidiaries are held by them under valid, subsisting and enforceable leases with which
the Company and the Subsidiaries are in compliance.

 

(p)            
Intellectual Property. The Company and the Subsidiaries have, or have rights to use, all patents, patent applications,
trademarks, trademark applications, service marks, trade names, trade secrets, inventions, copyrights, licenses and other intellectual
property rights and similar rights necessary or required for use in connection with their respective businesses as described in
the SEC Reports and which the failure to so have could have a Material Adverse Effect (collectively, the “Intellectual
Property Rights”). None of, and neither the Company nor any Subsidiary has received a notice (written or otherwise)
that any of, the Intellectual Property Rights has expired, terminated or been abandoned, or is expected to expire or terminate
or be abandoned, within two (2) years from the date of this Agreement. Neither the Company nor any Subsidiary has received, since
the date of the latest audited financial statements included within the SEC Reports, a written notice of a claim or otherwise
has any knowledge that the Intellectual Property Rights violate or infringe upon the rights of any Person, except as could not
have or reasonably be expected to not have a Material Adverse Effect. To the knowledge of the Company, all such Intellectual Property
Rights are enforceable and there is no existing infringement by another Person of any of the Intellectual Property Rights. The
Company and its Subsidiaries have taken reasonable security measures to protect the secrecy, confidentiality and value of all
of their intellectual properties, except where failure to do so could not, individually or in the aggregate, reasonably be expected
to have a Material Adverse Effect.

 

(q)            
Insurance. The Company and the Subsidiaries are insured by insurers of recognized financial responsibility against
such losses and risks and in such amounts as are prudent and customary in the businesses in which the Company and the Subsidiaries
are engaged, including, but not limited to, directors and officers insurance coverage at least equal to the aggregate Subscription
Amount. Neither the Company nor any Subsidiary has any reason to believe that it will not be able to renew its existing insurance
coverage as and when such coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue
its business without a significant increase in cost.

 

(r)             
Transactions With Affiliates and Employees. Except as set forth in the SEC Reports, none of the officers or directors
of the Company or any Subsidiary and, to the knowledge of the Company, none of the employees of the Company or any Subsidiary
is presently a party to any transaction with the Company or any Subsidiary (other than for services as employees, officers and
directors), including any contract, agreement or other arrangement providing for the furnishing of services to or by, providing
for rental of real or personal property to or from, providing for the borrowing of money from or lending of money to or otherwise
requiring payments to or from any officer, director or such employee or, to the knowledge of the Company, any entity in which
any officer, director, or any such employee has a substantial interest or is an officer, director, trustee, stockholder, member
or partner, in each case in excess of $120,000 other than for (i) payment of salary or consulting fees for services rendered,
(ii) reimbursement for expenses incurred on behalf of the Company and (iii) other employee benefits, including stock option agreements
under any stock option plan of the Company.

 

 

 

 

    	 	10	 

     

    

 

(s)            
Sarbanes-Oxley; Internal Accounting Controls. The Company and the Subsidiaries are in compliance with any and all
applicable requirements of the Sarbanes-Oxley Act of 2002 that are effective as of the date hereof, and any and all applicable
rules and regulations promulgated by the Commission thereunder that are effective as of the date hereof and as of the Closing
Date. The Company and the Subsidiaries maintain a system of internal accounting controls sufficient to provide reasonable assurance
that: (i) transactions are executed in accordance with management’s general or specific authorizations, (ii) transactions
are recorded as necessary to permit preparation of financial statements in conformity with GAAP and to maintain asset accountability,
(iii) access to assets is permitted only in accordance with management’s general or specific authorization, and (iv) the
recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is taken
with respect to any differences. The Company and the Subsidiaries have established disclosure controls and procedures (as defined
in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the Company and the Subsidiaries and designed such disclosure controls and
procedures to ensure that information required to be disclosed by the Company in the reports it files or submits under the Exchange
Act is recorded, processed, summarized and reported, within the time periods specified in the Commission’s rules and forms.
The Company’s certifying officers have evaluated the effectiveness of the disclosure controls and procedures of the Company
and the Subsidiaries as of the end of the period covered by the most recently filed periodic report under the Exchange Act (such
date, the “Evaluation Date”). The Company presented in its most recently filed periodic report under the Exchange
Act the conclusions of the certifying officers about the effectiveness of the disclosure controls and procedures based on their
evaluations as of the Evaluation Date. Since the Evaluation Date, there have been no changes in the internal control over financial
reporting (as such term is defined in the Exchange Act) of the Company and its Subsidiaries that have materially affected, or
is reasonably likely to materially affect, the internal control over financial reporting of the Company and its Subsidiaries.

 

(t)             
Certain Fees. Except as set forth in the Prospectus, no brokerage or finder’s fees or commissions are or will
be payable by the Company or any Subsidiary to any broker, financial advisor or consultant, finder, placement agent, investment
banker, bank or other Person with respect to the transactions contemplated by the Transaction Documents. The Purchasers shall
have no obligation with respect to any fees or with respect to any claims made by or on behalf of other Persons for fees of a
type contemplated in this Section that may be due in connection with the transactions contemplated by the Transaction Documents.

 

(u)            
Investment Company. The Company is not, and is not an Affiliate of, and immediately after receipt of payment for
the Securities, will not be or be an Affiliate of, an “investment company” within the meaning of the Investment Company
Act of 1940, as amended. The Company shall conduct its business in a manner so that it will not become an “investment company”
subject to registration under the Investment Company Act of 1940, as amended.

 

(v)            
Registration Rights. No Person has any right to cause the Company or any Subsidiary to effect the registration under
the Securities Act of any securities of the Company or any Subsidiary.

 

(w)          
Listing and Maintenance Requirements. The Common Stock is registered pursuant to Section 12(b) or 12(g) of the Exchange
Act, and the Company has taken no action designed to, or which to its knowledge is likely to have the effect of, terminating the
registration of the Common Stock under the Exchange Act nor has the Company received any notification that the Commission is contemplating
terminating such registration. Except as set forth in
the SEC Reports, the Company has not, in the 12 months preceding the date hereof, received notice from any Trading Market on which
the Common Stock is or has been listed or quoted to the effect that the Company is not in compliance with the listing or maintenance
requirements of such Trading Market. The Common Stock is currently eligible for electronic transfer through the Depository Trust
Company or another established clearing corporation and the Company is current in payment of the fees to the Depository Trust
Company (or such other established clearing corporation) in connection with such electronic transfer.

 

(x)            
Application of Takeover Protections. The Company and the Board of Directors have taken all necessary action, if
any, in order to render inapplicable any control share acquisition, business combination, poison pill (including any distribution
under a rights agreement) or other similar anti-takeover provision under the Company’s certificate of incorporation (or
similar charter documents) or the laws of its state of incorporation that is or could become applicable to the Purchasers as a
result of the Purchasers and the Company fulfilling their obligations or exercising their rights under the Transaction Documents,
including without limitation as a result of the Company’s issuance of the Securities and the Purchasers’ ownership
of the Securities.

 

 

 

    	 	11	 

     

    

 

(y)            
Disclosure. Except with respect to the material terms and conditions of the transactions contemplated by the Transaction
Documents, the Company confirms that neither it nor any other Person acting on its behalf has provided any of the Purchasers or
their agents or counsel with any information that it believes constitutes or might constitute material, non-public information
which is not otherwise disclosed in the Prospectus. The Company understands and confirms that the Purchasers will rely on the
foregoing representation in effecting transactions in securities of the Company. All of the disclosure furnished by or on behalf
of the Company to the Purchasers regarding the Company and its Subsidiaries, their respective businesses and the transactions
contemplated hereby, including the Disclosure Schedules to this Agreement, is true and correct and does not contain any untrue
statement of a material fact or omit to state any material fact necessary in order to make the statements made therein, in the
light of the circumstances under which they were made, not misleading. The press releases disseminated by the Company during the
twelve months preceding the date of this Agreement taken as a whole do not contain any untrue statement of a material fact or
omit to state a material fact required to be stated therein or necessary in order to make the statements therein, in the light
of the circumstances under which they were made and when made, not misleading. The Company acknowledges and agrees that no Purchaser
makes or has made any representations or warranties with respect to the transactions contemplated hereby other than those specifically
set forth in Section 3.2 hereof.

 

(z)            
No Integrated Offering. Assuming the accuracy of the Purchasers’ representations and warranties set forth
in Section 3.2, neither the Company, nor any of its Affiliates, nor any Person acting on its or their behalf has, directly or
indirectly, made any offers or sales of any security or solicited any offers to buy any security, under circumstances that would
cause this offering of the Securities to be integrated with prior offerings by the Company for purposes of any applicable shareholder
approval provisions of any Trading Market on which any of the securities of the Company are listed or designated.

 

(aa)         
Solvency. Based on the consolidated financial condition of the Company as of the Closing Date, after giving
effect to the receipt by the Company of the proceeds from the sale of the Securities hereunder, (i) the fair saleable value of
the Company’s assets exceeds the amount that will be required to be paid on or in respect of the Company’s existing
debts and other liabilities (including known contingent liabilities) as they mature, (ii) the Company’s assets do not constitute
unreasonably small capital to carry on its business as now conducted and as proposed to be conducted including its capital needs
taking into account the particular capital requirements of the business conducted by the Company, consolidated and projected capital
requirements and capital availability thereof, and (iii) the current cash flow of the Company, together with the proceeds the
Company would receive, were it to liquidate all of its assets, after taking into account all anticipated uses of the cash, would
be sufficient to pay all amounts on or in respect of its liabilities when such amounts are required to be paid. The Company does
not intend to incur debts beyond its ability to pay such debts as they mature (taking into account the timing and amounts of cash
to be payable on or in respect of its debt). The Company has no knowledge of any facts or circumstances which lead it to believe
that it will file for reorganization or liquidation under the bankruptcy or reorganization laws of any jurisdiction within one
year from the Closing Date. The SEC Reports sets forth
as of the date hereof all outstanding secured and unsecured Indebtedness of the Company or any Subsidiary, or for which the Company
or any Subsidiary has commitments. For the purposes of this Agreement, “Indebtedness” means (x) any liabilities
for borrowed money or amounts owed in excess of $50,000 (other than trade accounts payable incurred in the ordinary course of
business), (y) all guaranties, endorsements and other contingent obligations in respect of indebtedness of others, whether or
not the same are or should be reflected in the Company’s consolidated balance sheet (or the notes thereto), except guaranties
by endorsement of negotiable instruments for deposit or collection or similar transactions in the ordinary course of business;
and (z) the present value of any lease payments in excess of $50,000 due under leases required to be capitalized in accordance
with GAAP. Neither the Company nor any Subsidiary is in default with respect to any Indebtedness.

 

(bb)        
Tax Status. Except for matters that would not, individually or in the aggregate, have or reasonably be expected
to result in a Material Adverse Effect, the Company and its Subsidiaries each (i) has made or filed all United States federal,
state and local income and all foreign income and franchise tax returns, reports and declarations required by any jurisdiction
to which it is subject, (ii) has paid all taxes and other governmental assessments and charges that are material in amount, shown
or determined to be due on such returns, reports and declarations and (iii) has set aside on its books provision reasonably adequate
for the payment of all material taxes for periods subsequent to the periods to which such returns, reports or declarations apply.
There are no unpaid taxes in any material amount claimed to be due by the taxing authority of any jurisdiction, and the officers
of the Company or of any Subsidiary know of no basis for any such claim.

 

 

 

 

    	 	12	 

     

    

 

(cc)         
Foreign Corrupt Practices. Neither the Company nor any Subsidiary, nor to the knowledge of the Company or any Subsidiary,
any agent or other person acting on behalf of the Company or any Subsidiary, has (i) directly or indirectly, used any funds for
unlawful contributions, gifts, entertainment or other unlawful expenses related to foreign or domestic political activity, (ii)
made any unlawful payment to foreign or domestic government officials or employees or to any foreign or domestic political parties
or campaigns from corporate funds, (iii) failed to disclose fully any contribution made by the Company or any Subsidiary (or made
by any person acting on its behalf of which the Company is aware) which is in violation of law, or (iv) violated in any material
respect any provision of FCPA.

 

(dd)        
Accountants. The Company’s accounting firm is _________________.
To the knowledge and belief of the Company, such accounting firm (i) is a registered public accounting firm as required by the
Exchange Act and (ii) shall express its opinion with respect to the financial statements to be included in the Company’s
Annual Report for the fiscal year ending March 31, 2018.

 

(ee)         
 Acknowledgment Regarding Purchasers’ Purchase of Securities. The Company acknowledges and agrees that each
of the Purchasers is acting solely in the capacity of an arm’s length purchaser with respect to the Transaction Documents
and the transactions contemplated thereby. The Company further acknowledges that no Purchaser is acting as a financial advisor
or fiduciary of the Company (or in any similar capacity) with respect to the Transaction Documents and the transactions contemplated
thereby and any advice given by any Purchaser or any of their respective representatives or agents in connection with the Transaction
Documents and the transactions contemplated thereby is merely incidental to the Purchasers’ purchase of the Securities.
The Company further represents to each Purchaser that the Company’s decision to enter into this Agreement and the other
Transaction Documents has been based solely on the independent evaluation of the transactions contemplated hereby by the Company
and its representatives.

 

(ff)           
Acknowledgment Regarding Purchaser’s Trading Activity. Anything in this Agreement
or elsewhere herein to the contrary notwithstanding (except for Sections 3.2(f) and 4.14 hereof), it is understood and acknowledged
by the Company that: (i) none of the Purchasers has been asked by the Company to agree, nor has any Purchaser agreed, to desist
from purchasing or selling, long and/or short, securities of the Company, or “derivative” securities based on securities
issued by the Company or to hold the Securities for any specified term; (ii) past or future open market or other transactions
by any Purchaser, specifically including, without limitation, Short Sales or “derivative” transactions, before or
after the closing of this or future private placement transactions, may negatively impact the market price of the Company’s
publicly-traded securities; (iii) any Purchaser, and counter-parties in “derivative” transactions to which any such
Purchaser is a party, directly or indirectly, presently may have a “short” position in the Common Stock, and (iv)
each Purchaser shall not be deemed to have any affiliation with or control over any arm’s length counter-party in any “derivative”
transaction. The Company further understands and acknowledges that (y) one or more Purchasers may engage in hedging activities
at various times during the period that the Securities are outstanding, including, without limitation, during the periods that
the value of the Warrant Shares deliverable with respect to Securities are being determined, and (z) such hedging activities (if
any) could reduce the value of the existing stockholders' equity interests in the Company at and after the time that the hedging
activities are being conducted.  The Company acknowledges that such aforementioned hedging activities do not constitute a
breach of any of the Transaction Documents.

 

(gg)        
Regulation M Compliance. The Company has not, and to its knowledge no one acting on its behalf has, (i) taken, directly
or indirectly, any action designed to cause or to result in the stabilization or manipulation of the price of any security of
the Company to facilitate the sale or resale of any of the Securities, (ii) sold, bid for, purchased, or, paid any compensation
for soliciting purchases of, any of the Securities, or (iii) paid or agreed to pay to any Person any compensation for soliciting
another to purchase any other securities of the Company, other than, in the case of clauses (ii) and (iii), compensation paid
to the Company’s placement agent in connection with the placement of the Securities.

 

 

 

 

    	 	13	 

     

    

 

(hh)        
FDA. As to each product subject to the jurisdiction of the U.S. Food and Drug Administration (“FDA”)
under the Federal Food, Drug and Cosmetic Act, as amended, and the regulations thereunder (“FDCA”) that is
manufactured, packaged, labeled, tested, distributed, sold, and/or marketed by the Company or any of its Subsidiaries (each such
product, a “Pharmaceutical Product”), such Pharmaceutical Product is being manufactured, packaged, labeled,
tested, distributed, sold and/or marketed by the Company in compliance with all applicable requirements under FDCA and similar
laws, rules and regulations relating to registration, investigational use, premarket clearance, licensure, or application approval,
good manufacturing practices, good laboratory practices, good clinical practices, product listing, quotas, labeling, advertising,
record keeping and filing of reports, except where the failure to be in compliance would not have a Material Adverse Effect. There
is no pending, completed or, to the Company's knowledge, threatened, action (including any lawsuit, arbitration, or legal or administrative
or regulatory proceeding, charge, complaint, or investigation) against the Company or any of its Subsidiaries, and none of the
Company or any of its Subsidiaries has received any notice, warning letter or other communication from the FDA or any other governmental
entity, which (i) contests the premarket clearance, licensure, registration, or approval of, the uses of, the distribution of,
the manufacturing or packaging of, the testing of, the sale of, or the labeling and promotion of any Pharmaceutical Product, (ii)
withdraws its approval of, requests the recall, suspension, or seizure of, or withdraws or orders the withdrawal of advertising
or sales promotional materials relating to, any Pharmaceutical Product, (iii) imposes a clinical hold on any clinical investigation
by the Company or any of its Subsidiaries, (iv) enjoins production at any facility of the Company or any of its Subsidiaries,
(v) enters or proposes to enter into a consent decree of permanent injunction with the Company or any of its Subsidiaries, or
(vi) otherwise alleges any violation of any laws, rules or regulations by the Company or any of its Subsidiaries, and which, either
individually or in the aggregate, would have a Material Adverse Effect. The properties, business and operations of the Company
have been and are being conducted in all material respects in accordance with all applicable laws, rules and regulations of the
FDA. The Company has not been informed by the FDA that the FDA will prohibit the marketing, sale, license or use in the United
States of any product proposed to be developed, produced or marketed by the Company nor has the FDA expressed any concern as to
approving or clearing for marketing any product being developed or proposed to be developed by the Company.

 

(ii)           
Stock Option Plans. Each stock option granted by the Company under the Company’s stock option plan was granted
(i) in accordance with the terms of the Company’s stock option plan and (ii) with an exercise price at least equal to the
fair market value of the Common Stock on the date such stock option would be considered granted under GAAP and applicable law.
No stock option granted under the Company’s stock option plan has been backdated. The Company has not knowingly granted,
and there is no and has been no Company policy or practice to knowingly grant, stock options prior to, or otherwise knowingly
coordinate the grant of stock options with, the release or other public announcement of material information regarding the Company
or its Subsidiaries or their financial results or prospects.

 

(jj)           
Office of Foreign Assets Control. Neither the Company nor any Subsidiary nor, to the Company's knowledge, any director,
officer, agent, employee or affiliate of the Company or any Subsidiary is currently subject to any U.S. sanctions administered
by the Office of Foreign Assets Control of the U.S. Treasury Department (“OFAC”).

 

(kk)        
U.S. Real Property Holding Corporation. The Company is not and has never been a U.S. real property holding corporation
within the meaning of Section 897 of the Internal Revenue Code of 1986, as amended, and the Company shall so certify upon Purchaser’s
request.

 

(ll)           
Bank Holding Company Act. Neither the Company nor any of its Subsidiaries or Affiliates is subject to the Bank Holding
Company Act of 1956, as amended (the “BHCA”) and to regulation by the Board of Governors of the Federal Reserve
System (the “Federal Reserve”). Neither the Company nor any of its Subsidiaries or Affiliates owns or controls,
directly or indirectly, five percent (5%) or more of the outstanding shares of any class of voting securities or twenty-five percent
or more of the total equity of a bank or any entity that is subject to the BHCA and to regulation by the Federal Reserve. Neither
the Company nor any of its Subsidiaries or Affiliates exercises a controlling influence over the management or policies of a bank
or any entity that is subject to the BHCA and to regulation by the Federal Reserve.

 

(mm)     
Money Laundering. The operations of the Company and its Subsidiaries are and have been conducted at all times in
compliance with applicable financial record-keeping and reporting requirements of the Currency and Foreign Transactions Reporting
Act of 1970, as amended, applicable money laundering statutes and applicable rules and regulations thereunder (collectively, the
“Money Laundering Laws”), and no Action or Proceeding by or before any court or governmental agency, authority
or body or any arbitrator involving the Company or any Subsidiary with respect to the Money Laundering Laws is pending or, to
the knowledge of the Company or any Subsidiary, threatened.

 

 

 

 

    	 	14	 

     

    

 

3.2           
Representations and Warranties of the Purchasers. Each Purchaser, for itself and for no other Purchaser, hereby
represents and warrants as of the date hereof and as of the Closing Date to the Company as follows (unless as of a specific date
therein, in which case they shall be accurate as of such date):

 

(a)            
Organization; Authority. Such Purchaser is either an individual or an entity duly incorporated or formed, validly
existing and in good standing under the laws of the jurisdiction of its incorporation or formation with full right, corporate,
partnership, limited liability company or similar power and authority to enter into and to consummate the transactions contemplated
by the Transaction Documents and otherwise to carry out its obligations hereunder and thereunder. The execution and delivery of
the Transaction Documents and performance by such Purchaser of the transactions contemplated by the Transaction Documents have
been duly authorized by all necessary corporate, partnership, limited liability company or similar action, as applicable, on the
part of such Purchaser. Each Transaction Document to which it is a party has been duly executed by such Purchaser, and when delivered
by such Purchaser in accordance with the terms hereof, will constitute the valid and legally binding obligation of such Purchaser,
enforceable against it in accordance with its terms, except: (i) as limited by general equitable principles and applicable bankruptcy,
insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights
generally, (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable
remedies and (iii) insofar as indemnification and contribution provisions may be limited by applicable law.

 

(b)            
Understandings or Arrangements. Such Purchaser is acquiring the Securities as principal for its own account and
has no direct or indirect arrangement or understandings with any other persons to distribute or regarding the distribution of
such Securities (this representation and warranty not limiting such Purchaser’s right to sell the Securities pursuant to
the Registration Statement or otherwise in compliance with applicable federal and state securities laws). Such Purchaser is acquiring
the Securities hereunder in the ordinary course of its business.

 

(c)            
Purchaser Status. At the time such Purchaser was offered the Securities, it was, and as of the date hereof it is,
and on each date on which it exercises any Warrants, it will be an “accredited investor” as defined in Rule 501(a)(1),
(a)(2), (a)(3), (a)(7) or (a)(8) under the Securities Act.

 

(d)            
Experience of Such Purchaser. Such Purchaser, either alone or together with its representatives, has such knowledge,
sophistication and experience in business and financial matters so as to be capable of evaluating the merits and risks of the
prospective investment in the Securities, and has so evaluated the merits and risks of such investment. Such Purchaser is able
to bear the economic risk of an investment in the Securities and, at the present time, is able to afford a complete loss of such
investment.

 

(e)            
Access to Information. Such Purchaser acknowledges that it has had the opportunity to review the Transaction Documents
(including all exhibits and schedules thereto) and the SEC Reports and has been afforded, (i) the opportunity to ask such questions
as it has deemed necessary of, and to receive answers from, representatives of the Company concerning the terms and conditions
of the offering of the Securities and the merits and risks of investing in the Securities; (ii) access to information about the
Company and its financial condition, results of operations, business, properties, management and prospects sufficient to enable
it to evaluate its investment; and (iii) the opportunity to obtain such additional information that the Company possesses or can
acquire without unreasonable effort or expense that is necessary to make an informed investment decision with respect to the investment. 
Such Purchaser acknowledges and agrees that neither the Placement Agent nor any Affiliate of the Placement Agent has provided
such Purchaser with any information or advice with respect to the Securities nor is such information or advice necessary or desired. 
Neither the Placement Agent nor any Affiliate has made or makes any representation as to the Company or the quality of the Securities
and the Placement Agent and any Affiliate may have acquired non-public information with respect to the Company which such Purchaser
agrees need not be provided to it.  In connection with the issuance of the Securities to such Purchaser, neither the Placement
Agent nor any of its Affiliates has acted as a financial advisor or fiduciary to such Purchaser.

 

 

 

    	 	15	 

     

    

 

(f)             
Certain Transactions and Confidentiality. Other than consummating the transactions contemplated hereunder, such
Purchaser has not, nor has any Person acting on behalf of or pursuant to any understanding with such Purchaser, directly or indirectly
executed any purchases or sales, including Short Sales, of the securities of the Company during the period commencing as
of the time that such Purchaser first received a term sheet (written or oral) from the Company or any other Person representing
the Company setting forth the material terms of the transactions contemplated hereunder and ending immediately prior to the execution
hereof. Notwithstanding the foregoing, in the case of a Purchaser that is a multi-managed investment vehicle whereby separate
portfolio managers manage separate portions of such Purchaser’s assets and the portfolio managers have no direct knowledge
of the investment decisions made by the portfolio managers managing other portions of such Purchaser’s assets, the representation
set forth above shall only apply with respect to the portion of assets managed by the portfolio manager that made the investment
decision to purchase the Securities covered by this Agreement. Other than to other Persons party to this Agreement or to such
Purchaser’s representatives, including, without limitation, its officers, directors, partners, legal and other advisors,
employees, agents and Affiliates, such Purchaser has maintained the confidentiality of all disclosures made to it in connection
with this transaction (including the existence and terms of this transaction). Notwithstanding the foregoing, for the avoidance
of doubt, nothing contained herein shall constitute a representation or warranty, or preclude any actions, with respect to locating
or borrowing shares in order to effect Short Sales or similar transactions in the future.

 

The Company acknowledges
and agrees that the representations contained in this Section 3.2 shall not modify, amend or affect such Purchaser’s right
to rely on the Company’s representations and warranties contained in this Agreement or any representations and warranties
contained in any other Transaction Document or any other document or instrument executed and/or delivered in connection with this
Agreement or the consummation of the transactions contemplated hereby. Notwithstanding the foregoing, for the avoidance of doubt,
nothing contained herein shall constitute a representation or warranty, or preclude any actions, with respect to locating or borrowing
shares in order to effect Short Sales or similar transactions in the future.

 

ARTICLE IV.

 

OTHER AGREEMENTS OF THE PARTIES

 

4.1           
Warrant Shares. If all or any portion of a Warrant is exercised at a time when there is an effective registration
statement to cover the issuance or resale of the Warrant Shares or if the Warrant is exercised via cashless exercise, the Warrant
Shares issued pursuant to any such exercise shall be issued free of all legends. If at any time following the date hereof the
Registration Statement (or any subsequent registration statement registering the sale or resale of the Warrant Shares) is not
effective or is not otherwise available for the sale or resale of the Warrant Shares, the Company shall immediately notify the
holders of the Warrants in writing that such registration statement is not then effective and thereafter shall promptly notify
such holders when the registration statement is effective again and available for the sale or resale of the Warrant Shares (it
being understood and agreed that the foregoing shall not limit the ability of the Company to issue, or any Purchaser to sell,
any of the Warrant Shares in compliance with applicable federal and state securities laws). The Company shall use best efforts
to keep a registration statement (including the Registration Statement) registering the issuance or resale of the Warrant Shares
effective during the term of the Warrants.

 

4.2           
Furnishing of Information. Until the earliest of the time that (i) no Purchaser owns Securities or (ii) the Warrants
have expired, the Company covenants to timely file (or obtain extensions in respect thereof and file within the applicable grace
period) all reports required to be filed by the Company after the date hereof pursuant to the Exchange Act even if the Company
is not then subject to the reporting requirements of the Exchange Act.

 

4.3           
Integration. The Company shall not sell, offer for sale or solicit offers to buy or otherwise negotiate in respect
of any security (as defined in Section 2 of the Securities Act) that would be integrated with the offer or sale of the Securities
for purposes of the rules and regulations of any Trading Market such that it would require shareholder approval prior to the closing
of such other transaction unless shareholder approval is obtained before the closing of such subsequent transaction.

 

 

 

    	 	16	 

     

    

 

4.4           
Securities Laws Disclosure; Publicity. The Company shall (a) by 9:00 a.m. (New York City time) on the Trading Day
immediately following the date hereof, issue a press release disclosing the material terms of the transactions contemplated hereby,
and (b) file a Current Report on Form 8-K, including the Transaction Documents as exhibits thereto, with the Commission within
the time required by the Exchange Act. From and after the issuance of such press release, the Company represents to the Purchasers
that it shall have publicly disclosed all material, non-public information delivered to any of the Purchasers by the Company or
any of its Subsidiaries, or any of their respective officers, directors, employees or agents in connection with the transactions
contemplated by the Transaction Documents. In addition, effective upon the issuance of such press release, the Company acknowledges
and agrees that any and all confidentiality or similar obligations under any agreement, whether written or oral, between the Company,
any of its Subsidiaries or any of their respective officers, directors, agents, employees or Affiliates on the one hand, and any
of the Purchasers or any of their Affiliates on the other hand, shall terminate. The Company and each Purchaser shall consult
with each other in issuing any other press releases with respect to the transactions contemplated hereby, and neither the Company
nor any Purchaser shall issue any such press release nor otherwise make any such public statement without the prior consent of
the Company, with respect to any press release of any Purchaser, or without the prior consent of each Purchaser, with respect
to any press release of the Company, which consent shall not unreasonably be withheld or delayed, except if such disclosure is
required by law, in which case the disclosing party shall promptly provide the other party with prior notice of such public statement
or communication. Notwithstanding the foregoing, the Company shall not publicly disclose the name of any Purchaser, or include
the name of any Purchaser in any filing with the Commission or any regulatory agency or Trading Market, without the prior written
consent of such Purchaser, except (a) as required by federal securities law in connection with the filing of final Transaction
Documents with the Commission and (b) to the extent such disclosure is required by law or Trading Market regulations, in which
case the Company shall provide the Purchasers with prior notice of such disclosure permitted under this clause (b).

 

4.5           
Shareholder Rights Plan. No claim will be made or enforced by the Company or, with the consent of the Company, any
other Person, that any Purchaser is an “Acquiring Person” under any control share acquisition, business combination,
poison pill (including any distribution under a rights agreement) or similar anti-takeover plan or arrangement in effect or hereafter
adopted by the Company, or that any Purchaser could be deemed to trigger the provisions of any such plan or arrangement, by virtue
of receiving Securities under the Transaction Documents or under any other agreement between the Company and the Purchasers.

 

4.6           
Non-Public Information. Except with respect to the material terms and conditions of the transactions contemplated
by the Transaction Documents, which shall be disclosed pursuant to Section 4.4, the Company covenants and agrees that neither
it, nor any other Person acting on its behalf will provide any Purchaser or its agents or counsel with any information that constitutes,
or the Company reasonably believes constitutes, material non-public information, unless prior thereto such Purchaser shall have
consented to the receipt of such information and agreed with the Company to keep such information confidential. The Company understands
and confirms that each Purchaser shall be relying on the foregoing covenant in effecting transactions in securities of the Company.
To the extent that the Company delivers any material, non-public information to a Purchaser without such Purchaser’s consent,
the Company hereby covenants and agrees that such Purchaser shall not have any duty of confidentiality to the Company, any of
its Subsidiaries, or any of their respective officers, directors, agents, employees or Affiliates, or a duty to the Company, any
of its Subsidiaries or any of their respective officers, directors, agents, employees or Affiliates not to trade on the basis
of, such material, non-public information, provided that the Purchaser shall remain subject to applicable law. To the extent that
any notice provided pursuant to any Transaction Document constitutes, or contains, material, non-public information regarding
the Company or any Subsidiaries, the Company shall simultaneously file such notice with the Commission pursuant to a Current Report
on Form 8-K. The Company understands and confirms that each Purchaser shall be relying on the foregoing covenant in effecting
transactions in securities of the Company.

 

4.7           
Use of Proceeds. The use of proceeds is set forth in the Prospectus.

 

 

 

 

    	 	17	 

     

    

 

4.8           
Indemnification of Purchasers. Subject to the provisions of this Section 4.8, the Company will indemnify and hold
each Purchaser and its directors, officers, shareholders, members, partners, employees and agents (and any other Persons with
a functionally equivalent role of a Person holding such titles notwithstanding a lack of such title or any other title), each
Person who controls such Purchaser (within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act),
and the directors, officers, shareholders, agents, members, partners or employees (and any other Persons with a functionally equivalent
role of a Person holding such titles notwithstanding a lack of such title or any other title) of such controlling persons (each,
a “Purchaser Party”) harmless from any and all losses, liabilities, obligations, claims, contingencies, damages,
costs and expenses, including all judgments, amounts paid in settlements, court costs and reasonable attorneys’ fees and
costs of investigation that any such Purchaser Party may suffer or incur as a result of or relating to (a) any breach of any of
the representations, warranties, covenants or agreements made by the Company in this Agreement or in the other Transaction Documents
or (b) any action instituted against the Purchaser Parties in any capacity, or any of them or their respective Affiliates, by
any stockholder of the Company who is not an Affiliate of such Purchaser Party, with respect to any of the transactions contemplated
by the Transaction Documents (unless such action is solely based upon a material breach of such Purchaser Party’s representations,
warranties or covenants under the Transaction Documents or any agreements or understandings such Purchaser Party may have with
any such stockholder or any violations by such Purchaser Party of state or federal securities laws or any conduct by such Purchaser
Party which is finally judicially determined to constitute fraud, gross negligence or willful misconduct). If any action shall
be brought against any Purchaser Party in respect of which indemnity may be sought pursuant to this Agreement, such Purchaser
Party shall promptly notify the Company in writing, and the Company shall have the right to assume the defense thereof with counsel
of its own choosing reasonably acceptable to the Purchaser Party. Any Purchaser Party shall have the right to employ separate
counsel in any such action and participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense
of such Purchaser Party except to the extent that (i) the employment thereof has been specifically authorized by the Company in
writing, (ii) the Company has failed after a reasonable period of time to assume such defense and to employ counsel or (iii) in
such action there is, in the reasonable opinion of counsel, a material conflict on any material issue between the position of
the Company and the position of such Purchaser Party, in which case the Company shall be responsible for the reasonable fees and
expenses of no more than one such separate counsel. The Company will not be liable to any Purchaser Party under this Agreement
(y) for any settlement by a Purchaser Party effected without the Company’s prior written consent, which shall not be unreasonably
withheld or delayed; or (z) to the extent, but only to the extent that a loss, claim, damage or liability is attributable to any
Purchaser Party’s breach of any of the representations, warranties, covenants or agreements made by such Purchaser Party
in this Agreement or in the other Transaction Documents. The indemnification required by this Section 4.8 shall be made by periodic
payments of the amount thereof during the course of the investigation or defense, as and when bills are received or are incurred.
The indemnity agreements contained herein shall be in addition to any cause of action or similar right of any Purchaser Party
against the Company or others and any liabilities the Company may be subject to pursuant to law.

 

4.9           
Reservation of Common Stock. As of the date hereof, the Company has reserved and the Company shall continue to reserve
and keep available at all times, free of preemptive rights, a sufficient number of shares of Common Stock for the purpose of enabling
the Company to issue Shares pursuant to this Agreement and Warrant Shares pursuant to any exercise of the Warrants.

 

4.10        
Listing of Common Stock. The Company hereby agrees to use best efforts to maintain the listing or quotation of the
Common Stock on the Trading Market on which it is currently listed, and concurrently with the Closing, the Company shall apply
to list or quote all of the Shares and Warrant Shares on such Trading Market and promptly secure the listing of all of the Shares
and Warrant Shares on such Trading Market. The Company further agrees, if the Company applies to have the Common Stock traded
on any other Trading Market, it will then include in such application all of the Shares and Warrant Shares, and will take such
other action as is necessary to cause all of the Shares and Warrant Shares to be listed or quoted on such other Trading Market
as promptly as possible. The Company will then take all action reasonably necessary to continue the listing and trading of its
Common Stock on a Trading Market and will comply in all respects with the Company’s reporting, filing and other obligations
under the bylaws or rules of the Trading Market. The Company agrees to maintain the eligibility of the Common Stock for electronic
transfer through the Depository Trust Company or another established clearing corporation, including, without limitation, by timely
payment of fees to the Depository Trust Company or such other established clearing corporation in connection with such electronic
transfer.

 

 

 

    	 	18	 

     

    

 

4.11        
[Reserved]

 

4.12        
Subsequent Equity Sales.

 

(a)            
From the date hereof until 90 days after the Closing Date, neither the Company nor any Subsidiary shall issue, enter into
any agreement to issue or announce the issuance or proposed issuance of any shares of Common Stock or Common Stock Equivalents.

 

(b)            
From the date hereof until such time as no Purchaser holds any of the Warrants, the Company shall be prohibited from effecting
or entering into an agreement to effect any issuance by the Company or any of its Subsidiaries of Common Stock or Common Stock
Equivalents (or a combination of units thereof) involving a Variable Rate Transaction. “Variable Rate Transaction”
means a transaction in which the Company (i) issues or sells any debt or equity securities that are convertible into, exchangeable
or exercisable for, or include the right to receive additional shares of Common Stock either (A) at a conversion price, exercise
price or exchange rate or other price that is based upon and/or varies with the trading prices of or quotations for the shares
of Common Stock at any time after the initial issuance of such debt or equity securities, or (B) with a conversion, exercise or
exchange price that is subject to being reset at some future date after the initial issuance of such debt or equity security or
upon the occurrence of specified or contingent events directly or indirectly related to the business of the Company or the market
for the Common Stock or (ii) enters into, or effects a transaction under, any agreement, including, but not limited to, an equity
line of credit, whereby the Company may issue securities at a future determined price; provided, however, upon the
completion of the restrictive period set forth in Section 4.12(a), the Company may draw down on its Common Stock Sales Agreement
with the Placement Agent, dated June 28, 2016. Any Purchaser shall be entitled to obtain injunctive relief against the Company
to preclude any such issuance, which remedy shall be in addition to any right to collect damages.

 

(c)            
Notwithstanding the foregoing, this Section 4.12 shall not apply in respect of an Exempt Issuance, except that no Variable
Rate Transaction shall be an Exempt Issuance.

 

4.13        
Equal Treatment of Purchasers. No consideration (including any modification of any Transaction Document) shall be
offered or paid to any Person to amend or consent to a waiver or modification of any provision of the Transaction Documents unless
the same consideration is also offered to all of the parties to the Transaction Documents. For clarification purposes, this provision
constitutes a separate right granted to each Purchaser by the Company and negotiated separately by each Purchaser, and is intended
for the Company to treat the Purchasers as a class and shall not in any way be construed as the Purchasers acting in concert or
as a group with respect to the purchase, disposition or voting of Securities or otherwise.

 

4.14        
Certain Transactions and Confidentiality. Each Purchaser, severally and not jointly with the other Purchasers, covenants
that neither it nor any Affiliate acting on its behalf or pursuant to any understanding with it will execute any purchases or
sales, including Short Sales of any of the Company’s securities during the period commencing with the execution of this
Agreement and ending at such time that the transactions contemplated by this Agreement are first publicly announced pursuant to
the initial press release as described in Section 4.4.  Each Purchaser, severally
and not jointly with the other Purchasers, covenants that until such time as the transactions contemplated by this Agreement are
publicly disclosed by the Company pursuant to the initial press release as described in Section 4.4, such Purchaser will maintain
the confidentiality of the existence and terms of this transaction.  Notwithstanding the
foregoing and notwithstanding anything contained in this Agreement to the contrary, the Company expressly acknowledges and agrees
that (i) no Purchaser makes any representation, warranty or covenant hereby that it will not engage in effecting transactions
in any securities of the Company after the time that the transactions contemplated by this Agreement are first publicly announced
pursuant to the initial press release as described in Section 4.4, (ii) no Purchaser shall be restricted or prohibited from effecting
any transactions in any securities of the Company in accordance with applicable securities laws from and after the time that the
transactions contemplated by this Agreement are first publicly announced pursuant to the initial press release as described in
Section 4.4 and (iii) no Purchaser shall have any duty of confidentiality or duty not to trade in the securities of the Company
to the Company or its Subsidiaries after the issuance of the initial press release as described in Section 4.4.  Notwithstanding
the foregoing, in the case of a Purchaser that is a multi-managed investment vehicle whereby separate portfolio managers manage
separate portions of such Purchaser’s assets and the portfolio managers have no direct knowledge of the investment decisions
made by the portfolio managers managing other portions of such Purchaser’s assets, the covenant set forth above shall only
apply with respect to the portion of assets managed by the portfolio manager that made the investment decision to purchase the
Securities covered by this Agreement.

 

 

 

    	 	19	 

     

    

 

4.15        
Capital Changes. Until the one year anniversary of the Closing Date, the Company shall not undertake a reverse or
forward stock split or reclassification of the Common Stock without the prior written consent of the Purchasers holding a majority
in interest of the Shares.

 

4.16        
Exercise Procedures. The form of Notice of Exercise included in the Warrants set
forth the totality of the procedures required of the Purchasers in order to exercise the Warrants. No additional legal opinion,
other information or instructions shall be required of the Purchasers to exercise their Warrants. Without limiting the preceding
sentences, no ink-original Notice of Exercise shall be required, nor shall any medallion guarantee (or other type of guarantee
or notarization) of any Notice of Exercise form be required in order to exercise the Warrants. The Company shall honor exercises
of the Warrants and shall deliver Warrant Shares in accordance with the terms, conditions and time periods set forth in the Transaction
Documents.

 

ARTICLE V.

 

MISCELLANEOUS

 

5.1           
Termination.  This Agreement may be terminated by any Purchaser, as to such Purchaser’s obligations hereunder
only and without any effect whatsoever on the obligations between the Company and the other Purchasers, by written notice to the
other parties, if the Closing has not been consummated on or before _________ ___, 2017; provided, however, that
no such termination will affect the right of any party to sue for any breach by any other party (or parties).

 

5.2           
Fees and Expenses. Except as expressly set forth in the Transaction Documents to the contrary, each party shall
pay the fees and expenses of its advisers, counsel, accountants and other experts, if any, and all other expenses incurred by
such party incident to the negotiation, preparation, execution, delivery and performance of this Agreement. The Company shall
pay all Transfer Agent fees (including, without limitation, any fees required for same-day processing of any instruction letter
delivered by the Company and any exercise notice delivered by a Purchaser), stamp taxes and other taxes and duties levied in connection
with the delivery of any Securities to the Purchasers.

 

5.3           
Entire Agreement. The Transaction Documents, together with the exhibits and schedules thereto, the Prospectus and
the Prospectus Supplement, contain the entire understanding of the parties with respect to the subject matter hereof and thereof
and supersede all prior agreements and understandings, oral or written, with respect to such matters, which the parties acknowledge
have been merged into such documents, exhibits and schedules.

 

5.4           
Notices. Any and all notices or other communications or deliveries required or permitted to be provided hereunder
shall be in writing and shall be deemed given and effective on the earliest of: (a) the date of transmission, if such notice or
communication is delivered via facsimile at the facsimile number or email attachment at the email address as set forth on the
signature pages attached hereto at or prior to 5:30 p.m. (New York City time) on a Trading Day, (b) the next Trading Day after
the date of transmission, if such notice or communication is delivered via facsimile at the facsimile number or email attachment
at the email address as set forth on the signature pages attached hereto on a day that is not a Trading Day or later than 5:30
p.m. (New York City time) on any Trading Day, (c) the second (2nd) Trading Day following the date of mailing, if sent
by U.S. nationally recognized overnight courier service or (d) upon actual receipt by the party to whom such notice is required
to be given. The address for such notices and communications shall be as set forth on the signature pages attached hereto. To
the extent that any notice provided pursuant to any Transaction Document constitutes, or contains, material, non-public information
regarding the Company or any Subsidiaries, the Company shall simultaneously file such notice with the Commission pursuant to a
Current Report on Form 8-K.

 

5.5           
Amendments; Waivers. No provision of this Agreement may be waived, modified, supplemented or amended except in a
written instrument signed, in the case of an amendment, by the Company and Purchasers which purchased at least 50.1% in interest
of the Shares based on the initial Subscription Amounts hereunder or, in the case of a waiver, by the party against whom enforcement
of any such waived provision is sought, provided that if any amendment, modification or waiver disproportionately and adversely
impacts a Purchaser (or group of Purchasers), the consent of such disproportionately impacted Purchaser (or group of Purchasers)
shall also be required. No waiver of any default with respect to any provision, condition or requirement of this Agreement shall
be deemed to be a continuing waiver in the future or a waiver of any subsequent default or a waiver of any other provision, condition
or requirement hereof, nor shall any delay or omission of any party to exercise any right hereunder in any manner impair the exercise
of any such right. Any proposed amendment or waiver that disproportionately, materially and adversely affects the rights and obligations
of any Purchaser relative to the comparable rights and obligations of the other Purchasers shall require the prior written consent
of such adversely affected Purchaser. Any amendment effected in accordance with this Section 5.5 shall be binding upon each Purchaser
and holder of Securities and the Company.

 

 

 

    	 	20	 

     

    

 

5.6           
Headings. The headings herein are for convenience only, do not constitute a part of this Agreement and shall not
be deemed to limit or affect any of the provisions hereof.

 

5.7           
Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their successors
and permitted assigns. The Company may not assign this Agreement or any rights or obligations hereunder without the prior written
consent of each Purchaser (other than by merger). Any Purchaser may assign any or all of its rights under this Agreement to any
Person to whom such Purchaser assigns or transfers any Securities, provided that such transferee agrees in writing to be bound,
with respect to the transferred Securities, by the provisions of the Transaction Documents that apply to the “Purchasers.”

 

5.8           
No Third-Party Beneficiaries. The Placement Agent shall be the third party beneficiary of the representations and
warranties of the Company in Section 3.1 and the representations and warranties of the Purchasers in Section 3.2. This Agreement
is intended for the benefit of the parties hereto and their respective successors and permitted assigns and is not for the benefit
of, nor may any provision hereof be enforced by, any other Person, except as otherwise set forth in Section 4.8 and this Section
5.8.

 

5.9           
Governing Law. All questions concerning the construction, validity, enforcement and interpretation of the Transaction
Documents shall be governed by and construed and enforced in accordance with the internal laws of the State of New York, without
regard to the principles of conflicts of law thereof. Each party agrees that all legal Proceedings concerning the interpretations,
enforcement and defense of the transactions contemplated by this Agreement and any other Transaction Documents (whether brought
against a party hereto or its respective affiliates, directors, officers, shareholders, partners, members, employees or agents)
shall be commenced exclusively in the state and federal courts sitting in the City of New York. Each party hereby irrevocably
submits to the exclusive jurisdiction of the state and federal courts sitting in the City of New York, Borough of Manhattan for
the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein
(including with respect to the enforcement of any of the Transaction Documents), and hereby irrevocably waives, and agrees not
to assert in any Action or Proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that
such Action or Proceeding is improper or is an inconvenient venue for such Proceeding. Each party hereby irrevocably waives personal
service of process and consents to process being served in any such Action or Proceeding by mailing a copy thereof via registered
or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under
this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing
contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted by law.

 

5.10        
Survival. The representations and warranties contained herein shall survive the Closing and the delivery of the
Securities.

 

5.11        
Execution. This Agreement may be executed in two or more counterparts, all of which when taken together shall be
considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered
to each other party, it being understood that the parties need not sign the same counterpart. In the event that any signature
is delivered by facsimile transmission or by e-mail delivery of a “.pdf” format data file, such signature shall create
a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and
effect as if such facsimile or “.pdf” signature page were an original thereof.

 

5.12        
Severability. If any term, provision, covenant or restriction of this Agreement is held by a court of competent
jurisdiction to be invalid, illegal, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions
set forth herein shall remain in full force and effect and shall in no way be affected, impaired or invalidated, and the parties
hereto shall use their commercially reasonable efforts to find and employ an alternative means to achieve the same or substantially
the same result as that contemplated by such term, provision, covenant or restriction. It is hereby stipulated and declared to
be the intention of the parties that they would have executed the remaining terms, provisions, covenants and restrictions without
including any of such that may be hereafter declared invalid, illegal, void or unenforceable.

 

 

 

    	 	21	 

     

    

 

5.13        
Rescission and Withdrawal Right. Notwithstanding anything to the contrary contained in (and without limiting any
similar provisions of) any of the other Transaction Documents, whenever any Purchaser exercises a right, election, demand or option
under a Transaction Document and the Company does not timely perform its related obligations within the periods therein provided,
then such Purchaser may rescind or withdraw, in its sole discretion from time to time upon written notice to the Company, any
relevant notice, demand or election in whole or in part without prejudice to its future actions and rights; provided, however,
that, in the case of a rescission of an exercise of a Warrant, the applicable Purchaser shall be required to return any shares
of Common Stock subject to any such rescinded exercise notice concurrently with the return to such Purchaser of the aggregate
exercise price paid to the Company for such shares and the restoration of such Purchaser’s right to acquire such shares
pursuant to such Purchaser’s Warrant (including, issuance of a replacement warrant certificate evidencing such restored
right).

 

5.14        
Replacement of Securities. If any certificate or instrument evidencing any Securities is mutilated, lost, stolen
or destroyed, the Company shall issue or cause to be issued in exchange and substitution for and upon cancellation thereof (in
the case of mutilation), or in lieu of and substitution therefor, a new certificate or instrument, but only upon receipt of evidence
reasonably satisfactory to the Company of such loss, theft or destruction. The applicant for a new certificate or instrument under
such circumstances shall also pay any reasonable third-party costs (including customary indemnity) associated with the issuance
of such replacement Securities.

 

5.15        
Remedies. In addition to being entitled to exercise all rights provided herein or granted by law, including recovery
of damages, each of the Purchasers and the Company will be entitled to specific performance under the Transaction Documents. The
parties agree that monetary damages may not be adequate compensation for any loss incurred by reason of any breach of obligations
contained in the Transaction Documents and hereby agree to waive and not to assert in any Action for specific performance of any
such obligation the defense that a remedy at law would be adequate.

 

5.16        
Payment Set Aside. To the extent that the Company makes a payment or payments to any Purchaser pursuant to any Transaction
Document or a Purchaser enforces or exercises its rights thereunder, and such payment or payments or the proceeds of such enforcement
or exercise or any part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside, recovered
from, disgorged by or are required to be refunded, repaid or otherwise restored to the Company, a trustee, receiver or any other
Person under any law (including, without limitation, any bankruptcy law, state or federal law, common law or equitable cause of
action), then to the extent of any such restoration the obligation or part thereof originally intended to be satisfied shall be
revived and continued in full force and effect as if such payment had not been made or such enforcement or setoff had not occurred.

 

5.17        
Independent Nature of Purchasers’ Obligations and Rights. The obligations of each Purchaser under any Transaction
Document are several and not joint with the obligations of any other Purchaser, and no Purchaser shall be responsible in any way
for the performance or non-performance of the obligations of any other Purchaser under any Transaction Document. Nothing contained
herein or in any other Transaction Document, and no action taken by any Purchaser pursuant hereto or thereto, shall be deemed
to constitute the Purchasers as a partnership, an association, a joint venture or any other kind of entity, or create a presumption
that the Purchasers are in any way acting in concert or as a group with respect to such obligations or the transactions contemplated
by the Transaction Documents. Each Purchaser shall be entitled to independently protect and enforce its rights including, without
limitation, the rights arising out of this Agreement or out of the other Transaction Documents, and it shall not be necessary
for any other Purchaser to be joined as an additional party in any Proceeding for such purpose. Each Purchaser has been represented
by its own separate legal counsel in its review and negotiation of the Transaction Documents. For reasons of administrative convenience
only, each Purchaser and its respective counsel have chosen to communicate with the Company through EGS. EGS does not represent
any of the Purchasers and only represents the Placement Agent. The Company has elected to provide all Purchasers with the same
terms and Transaction Documents for the convenience of the Company and not because it was required or requested to do so by any
of the Purchasers. It is expressly understood and agreed that each provision contained in this Agreement and in each other Transaction
Document is between the Company and a Purchaser, solely, and not between the Company and the Purchasers collectively and not between
and among the Purchasers.

 

 

 

    	 	22	 

     

    

 

5.18        
Liquidated Damages. The Company’s obligations to pay any partial liquidated damages or other amounts owing
under the Transaction Documents is a continuing obligation of the Company and shall not terminate until all unpaid partial liquidated
damages and other amounts have been paid notwithstanding the fact that the instrument or security pursuant to which such partial
liquidated damages or other amounts are due and payable shall have been canceled.

 

5.19        
Saturdays, Sundays, Holidays, etc. If the last or appointed day for the taking of any action or the expiration of
any right required or granted herein shall not be a Business Day, then such action may be taken or such right may be exercised
on the next succeeding Business Day.

 

5.20        
Construction. The parties agree that each of them and/or their respective counsel have reviewed and had an opportunity
to revise the Transaction Documents and, therefore, the normal rule of construction to the effect that any ambiguities are to
be resolved against the drafting party shall not be employed in the interpretation of the Transaction Documents or any amendments
thereto. In addition, each and every reference to share prices and shares of Common Stock in any Transaction Document shall be
subject to adjustment for reverse and forward stock splits, stock dividends, stock combinations and other similar transactions
of the Common Stock that occur after the date of this Agreement.

 

5.21        
WAIVER OF JURY TRIAL. IN ANY ACTION, SUIT, OR PROCEEDING IN ANY JURISDICTION BROUGHT BY ANY PARTY AGAINST
ANY OTHER PARTY, THE PARTIES EACH KNOWINGLY AND INTENTIONALLY, TO THE GREATEST EXTENT PERMITTED BY APPLICABLE LAW, HEREBY ABSOLUTELY,
UNCONDITIONALLY, IRREVOCABLY AND EXPRESSLY WAIVES FOREVER TRIAL BY JURY. 

 

 

 

(Signature Pages Follow)

 

 

 

    	 	23	 

     

    

 

IN WITNESS WHEREOF,
the parties hereto have caused this Securities Purchase Agreement to be duly executed by their respective authorized signatories
as of the date first indicated above.

 

	Aethlon
                           Medical, inc.
	Address for Notice:
	 	 
	 	 
	 	 
	By:__________________________________________

        Name:

        Title:

        With a copy to (which shall not constitute notice):
	E-Mail:

        Fax:

		 

 

 

 

 

 

 

 

 

 

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK

SIGNATURE PAGE FOR PURCHASER FOLLOWS]

 

 

 

 

 

 

 

 

 

    	 	24	 

     

    

 

[PURCHASER SIGNATURE PAGES TO AEMD
SECURITIES PURCHASE AGREEMENT]

 

IN WITNESS WHEREOF,
the undersigned have caused this Securities Purchase Agreement to be duly executed by their respective authorized signatories
as of the date first indicated above.

 

Name of Purchaser: ________________________________________________________

 

Signature of Authorized Signatory of
Purchaser: _________________________________

 

Name of Authorized Signatory: _______________________________________________

 

Title of Authorized Signatory: ________________________________________________

 

Email Address of Authorized Signatory:_________________________________________

 

Facsimile Number of Authorized Signatory: __________________________________________

 

Address for Notice to Purchaser:

 

 

Address for Delivery of Securities to Purchaser (if not same
as address for notice):

 

 

Subscription Amount: $_________________

 

Beneficial Ownership Limit (Circle One): 4.99% 9.99% 19.99%

 

Shares: _________________

 

Class A Warrant Shares: __________________

 

Class B Warrant Shares: __________________

 

EIN Number: _______________________

 

o
Notwithstanding anything contained in this Agreement to the contrary, by checking this box (i) the obligations of the above-signed
to purchase the securities set forth in this Agreement to be purchased from the Company by the above-signed, and the obligations
of the Company to sell such securities to the above-signed, shall be unconditional and all conditions to Closing shall be disregarded,
(ii) the Closing shall occur by the second (2nd) Trading Day following the date of this Agreement, and (iii) any condition
to Closing contemplated by this Agreement (but prior to being disregarded by clause (i) above) that required delivery by the Company
or the above-signed of any agreement, instrument, certificate or the like or purchase price (as applicable) shall no longer be
a condition and shall instead be an unconditional obligation of the Company or the above-signed (as applicable) to deliver such
agreement, instrument, certificate or the like or purchase price (as applicable) to such other party on the Closing Date.

 

[SIGNATURE PAGES CONTINUE]

 

 

 

 

 

 

 

 

 

    	 	25	 

     

    

 

EXHIBIT A

 

 

COMMON STOCK PURCHASE WARRANT

 

aethlon
medical, inc.

 

	Warrant Shares: _______	Initial Exercise Date: _______, 2017

 

THIS COMMON STOCK PURCHASE
WARRANT (the “Warrant”) certifies that, for value received, _____________ or its assigns (the “Holder”)
is entitled, upon the terms and subject to the limitations on exercise and the conditions hereinafter set forth, at any time on
or after the date hereof (the “Initial Exercise Date”) and on or prior to 5:00 p.m. (New York City time) on
______________[1] (the “Termination
Date”) but not thereafter, to subscribe for and purchase from Aethlon Medical, Inc., a Nevada corporation (the “Company”),
up to ______ shares (as subject to adjustment hereunder, the “Warrant Shares”) of Common Stock. The purchase
price of one share of Common Stock under this Warrant shall be equal to the Exercise Price, as defined in Section 2(b).

 

Section 1.                
Definitions. In addition to the terms defined elsewhere in this Agreement, the following terms have the meanings
indicated in this Section 1:

 

“Affiliate”
means any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common
control with a Person, as such terms are used in and construed under Rule 405 under the Securities Act.

 

“Bid
Price” means, for any date, the price determined by the first of the following clauses that applies: (a) if the Common
Stock is then listed or quoted on a Trading Market, the bid price of the Common Stock for the time in question (or the nearest
preceding date) on the Trading Market on which the Common Stock is then listed or quoted as reported by Bloomberg L.P. (based
on a Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)), (b)  if OTCQB or OTCQX is not a
Trading Market, the volume weighted average price of the Common Stock for such date (or the nearest preceding date) on OTCQB or
OTCQX as applicable, (c) if the Common Stock is not then listed or quoted for trading on OTCQB or OTCQX and if prices for the
Common Stock are then reported in the “Pink Sheets” published by OTC Markets Group, Inc. (or a similar organization
or agency succeeding to its functions of reporting prices), the most recent bid price per share of the Common Stock so reported,
or (d) in all other cases, the fair market value of a share of Common Stock as determined by an independent appraiser selected
in good faith by the Purchasers of a majority in interest of the Securities then outstanding and reasonably acceptable to the
Company, the fees and expenses of which shall be paid by the Company.

 

“Business
Day” means any day except any Saturday, any Sunday, any day which is a federal legal holiday in the United States or
any day on which banking institutions in the State of New York are authorized or required by law or other governmental action
to close.

 

“Commission”
means the United States Securities and Exchange Commission.

 

“Exchange
Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

 

“Person”
means an individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability
company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind.

 

“Securities
Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

 

 

____________________

 

[1]
The date that is the _____ year anniversary of the Initial Exercise Date, provided that, if such date is not a Trading
Day, insert the immediately following Trading Day.

 

 

 

    	 	A-1	 

     

    

 

“Trading
Day” means a day on which the Common Stock is traded on a Trading Market.

 

“Trading
Market” means any of the following markets or exchanges on which the Common Stock is listed or quoted for trading on
the date in question: the NYSE American, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market,
the New York Stock Exchange or the OTC Bulletin Board (or any successors to any of the foregoing.

 

“Transfer
Agent” means Computershare Investor Services, the current transfer agent of the Company, with a mailing address of 350
Indiana Street, Suite 800, Golden, Colorado 80401 and a facsimile number of _______________, and any successor transfer agent
of the Company.

 

“VWAP”
means, for any date, the price determined by the first of the following clauses that applies: (a) if the Common Stock is then
listed or quoted on a Trading Market, the daily volume weighted average price of the Common Stock for such date (or the nearest
preceding date) on the Trading Market on which the Common Stock is then listed or quoted as reported by Bloomberg L.P. (based
on a Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)), (b)  if OTCQB or OTCQX is not a
Trading Market, the volume weighted average price of the Common Stock for such date (or the nearest preceding date) on OTCQB or
OTCQX as applicable, (c) if the Common Stock is not then listed or quoted for trading on OTCQB or OTCQX and if prices for the
Common Stock are then reported in the “Pink Sheets” published by OTC Markets Group, Inc. (or a similar organization
or agency succeeding to its functions of reporting prices), the most recent bid price per share of the Common Stock so reported,
or (d) in all other cases, the fair market value of a share of Common Stock as determined by an independent appraiser selected
in good faith by the Purchasers of a majority in interest of the Securities then outstanding and reasonably acceptable to the
Company, the fees and expenses of which shall be paid by the Company.

 

Section 2.                
Exercise.

 

a)              
Exercise of Warrant. Exercise of the purchase rights represented by this Warrant may be made, in whole or in part,
at any time or times on or after the Initial Exercise Date and on or before the Termination Date by delivery to the Company of
a duly executed facsimile copy (or e-mail attachment) of the Notice of Exercise in the form annexed hereto (the “Notice
of Exercise”). By the Standard Settlement Period Delivery Date (as defined in Section 2(d)(i) herein) following the
date of exercise as aforesaid, the Holder shall deliver the aggregate Exercise Price for the shares specified in the applicable
Notice of Exercise by wire transfer or cashier’s check drawn on a United States bank unless the cashless exercise procedure
specified in Section 2(c) below is specified in the applicable Notice of Exercise. No ink-original Notice of Exercise shall be
required, nor shall any medallion guarantee (or other type of guarantee or notarization) of any Notice of Exercise be required.
Notwithstanding anything herein to the contrary, the Holder shall not be required to physically surrender this Warrant to the
Company until the Holder has purchased all of the Warrant Shares available hereunder and the Warrant has been exercised in full,
in which case, the Holder shall surrender this Warrant to the Company for cancellation within three (3) Trading Days of the date
on which the final Notice of Exercise is delivered to the Company. Partial exercises of this Warrant resulting in purchases of
a portion of the total number of Warrant Shares available hereunder shall have the effect of lowering the outstanding number of
Warrant Shares purchasable hereunder in an amount equal to the applicable number of Warrant Shares purchased. The Holder and the
Company shall maintain records showing the number of Warrant Shares purchased and the date of such purchases. The Company shall
deliver any objection to any Notice of Exercise within one (1) Business Day of receipt of such notice. The Holder and any assignee,
by acceptance of this Warrant, acknowledge and agree that, by reason of the provisions of this paragraph, following the purchase
of a portion of the Warrant Shares hereunder, the number of Warrant Shares available for purchase hereunder at any given time
may be less than the amount stated on the face hereof.

 

b)              
Exercise Price. The exercise price per share of Common Stock under this Warrant shall be $_____, subject
to adjustment hereunder (the “Exercise Price”).

 

 

 

    	 	A-2	 

     

    

 

c)              
Cashless Exercise. If at the time of exercise hereof there is no effective registration statement registering, or
the prospectus contained therein is not available for the issuance of the Warrant Shares to the Holder, then this Warrant may
also be exercised, in whole or in part, at such time by means of a “cashless exercise” in which the Holder shall be
entitled to receive a number of Warrant Shares equal to the quotient obtained by dividing [(A-B) (X)] by (A), where:

 

(A)
= as applicable: (i) the VWAP on the Trading Day immediately preceding the date of the applicable Notice of Exercise if such Notice
of Exercise is (1) both executed and delivered pursuant to Section 2(a) hereof on a day that is not a Trading Day or (2) both
executed and delivered pursuant to Section 2(a) hereof on a Trading Day prior to the opening of “regular trading hours”
(as defined in Rule 600(b)(64) of Regulation NMS promulgated under the federal securities laws) on such Trading Day, (ii) at the
option of the Holder, either (y) the VWAP on the Trading Day immediately preceding the date of the applicable Notice of Exercise
or (z) the Bid Price of the Common Stock on the principal Trading Market as reported by Bloomberg L.P. as of the time of the Holder’s
execution of the applicable Notice of Exercise if such Notice of Exercise is executed during “regular trading hours”
on a Trading Day and is delivered within two (2) hours thereafter pursuant to Section 2(a) hereof or (iii) the VWAP on the date
of the applicable Notice of Exercise if the date of such Notice of Exercise is a Trading Day and such Notice of Exercise is both
executed and delivered pursuant to Section 2(a) hereof after the close of “regular trading hours” on such Trading
Day;

 

(B) = the
Exercise Price of this Warrant, as adjusted hereunder; and

 

(X)
= the number of Warrant Shares that would be issuable upon exercise of this Warrant in accordance with the terms of this Warrant
if such exercise were by means of a cash exercise rather than a cashless exercise.

 

If
Warrant Shares are issued in such a cashless exercise, the parties acknowledge and agree that in accordance with Section 3(a)(9)
of the Securities Act, the Warrant Shares shall take on the registered characteristics of the Warrants being exercised.  The
Company agrees not to take any position contrary to this Section 2(c).

 

Notwithstanding
anything herein to the contrary, on the Termination Date, this Warrant shall be automatically exercised via cashless exercise
pursuant to this Section 2(c).

 

d)              
Mechanics of Exercise.

 

i.         
Delivery of Warrant Shares Upon Exercise. The Company shall cause the Warrant Shares purchased hereunder to be transmitted
by the Transfer Agent to the Holder by crediting the account of the Holder’s or its designee’s balance account with
The Depository Trust Company through its Deposit or Withdrawal at Custodian system (“DWAC”) if the Company
is then a participant in such system and either (A) there is an effective registration statement permitting the issuance of the
Warrant Shares to or resale of the Warrant Shares by Holder or (B) this Warrant is being exercised via cashless exercise, and
otherwise by physical delivery of a certificate, registered in the Company’s share register in the name of the Holder or
its designee, for the number of Warrant Shares to which the Holder is entitled pursuant to such exercise to the address specified
by the Holder in the Notice of Exercise by the date that is the earlier of (A) the Standard Settlement Period Delivery Date after
the delivery to the Company of the Notice of Exercise and (B) one (1) Trading Day after delivery of the aggregate Exercise Price
to the Company (such date, the “Warrant Share Delivery Date”). Upon delivery of the Notice of Exercise, the
Holder shall be deemed for all corporate purposes to have become the holder of record of the Warrant Shares with respect to which
this Warrant has been exercised, irrespective of the date of delivery of the Warrant Shares, provided that payment of the aggregate
Exercise Price (other than in the case of a cashless exercise) is received by the Standard Settlement Period Delivery Date following
delivery of the Notice of Exercise. If the Company fails for any reason to deliver to the Holder the Warrant Shares subject to
a Notice of Exercise by the Warrant Share Delivery Date, the Company shall pay to the Holder, in cash, as liquidated damages and
not as a penalty, for each $1,000 of Warrant Shares subject to such exercise (based on the VWAP of the Common Stock on the date
of the applicable Notice of Exercise), $10 per Trading Day (increasing to $20 per Trading Day on the fifth Trading Day after such
liquidated damages begin to accrue) for each Trading Day after such Warrant Share Delivery Date until such Warrant Shares are
delivered or Holder rescinds such exercise. The Company agrees to maintain a transfer agent that is a participant in the FAST
program so long as this Warrant remains outstanding and exercisable. As used herein, “Standard Settlement Period”
means the standard settlement period, expressed in a number of Trading Days, on the Company’s primary Trading Market with
respect to the Common Stock as in effect on the date of delivery of the Notice of Exercise and “Standard Settlement Period
Delivery Date” means the Trading Day for delivery of Warrant Shares in compliance with the Standard Settlement Period.

 

 

 

    	 	A-3	 

     

    

 

ii.         
Delivery of New Warrants Upon Exercise. If this Warrant shall have been exercised in part, the Company shall, at
the request of a Holder and upon surrender of this Warrant certificate, at the time of delivery of the Warrant Shares, deliver
to the Holder a new Warrant evidencing the rights of the Holder to purchase the unpurchased Warrant Shares called for by this
Warrant, which new Warrant shall in all other respects be identical with this Warrant.

 

iii.         
Rescission Rights. If the Company fails to cause the Transfer Agent to transmit to the Holder the Warrant Shares
pursuant to Section 2(d)(i) by the Warrant Share Delivery Date, then the Holder will have the right to rescind such exercise.

 

iv.         
Compensation for Buy-In on Failure to Timely Deliver Warrant Shares Upon Exercise. In addition to any other rights
available to the Holder, if the Company fails to cause the Transfer Agent to transmit to the Holder the Warrant Shares in accordance
with the provisions of Section 2(d)(i) above pursuant to an exercise on or before the Warrant Share Delivery Date, and if after
such date the Holder is required by its broker to purchase (in an open market transaction or otherwise) or the Holder’s
brokerage firm otherwise purchases, shares of Common Stock to deliver in satisfaction of a sale by the Holder of the Warrant Shares
which the Holder anticipated receiving upon such exercise (a “Buy-In”), then the Company shall (A) pay in cash
to the Holder the amount, if any, by which (x) the Holder’s total purchase price (including brokerage commissions, if any)
for the shares of Common Stock so purchased exceeds (y) the amount obtained by multiplying (1) the number of Warrant Shares that
the Company was required to deliver to the Holder in connection with the exercise at issue times (2) the price at which the sell
order giving rise to such purchase obligation was executed, and (B) at the option of the Holder, either reinstate the portion
of the Warrant and equivalent number of Warrant Shares for which such exercise was not honored (in which case such exercise shall
be deemed rescinded) or deliver to the Holder the number of shares of Common Stock that would have been issued had the Company
timely complied with its exercise and delivery obligations hereunder. For example, if the Holder purchases Common Stock having
a total purchase price of $11,000 to cover a Buy-In with respect to an attempted exercise of shares of Common Stock with an aggregate
sale price giving rise to such purchase obligation of $10,000, under clause (A) of the immediately preceding sentence the Company
shall be required to pay the Holder $1,000. The Holder shall provide the Company written notice indicating the amounts payable
to the Holder in respect of the Buy-In and, upon request of the Company, evidence of the amount of such loss. Nothing herein shall
limit a Holder’s right to pursue any other remedies available to it hereunder, at law or in equity including, without limitation,
a decree of specific performance and/or injunctive relief with respect to the Company’s failure to timely deliver shares
of Common Stock upon exercise of the Warrant as required pursuant to the terms hereof.

 

v.         
No Fractional Shares or Scrip. No fractional shares or scrip representing fractional shares shall be issued upon
the exercise of this Warrant. As to any fraction of a share which the Holder would otherwise be entitled to purchase upon such
exercise, the Company shall, at its election, either pay a cash adjustment in respect of such final fraction in an amount equal
to such fraction multiplied by the Exercise Price or round up to the next whole share.

 

vi.         
Charges, Taxes and Expenses. Issuance of Warrant Shares shall be made without charge to the Holder for any issue
or transfer tax or other incidental expense in respect of the issuance of such Warrant Shares, all of which taxes and expenses
shall be paid by the Company, and such Warrant Shares shall be issued in the name of the Holder or in such name or names as may
be directed by the Holder; provided, however, that in the event that Warrant Shares are to be issued in a name other
than the name of the Holder, this Warrant when surrendered for exercise shall be accompanied by the Assignment Form attached hereto
duly executed by the Holder and the Company may require, as a condition thereto, the payment of a sum sufficient to reimburse
it for any transfer tax incidental thereto. The Company shall pay all Transfer Agent fees required for same-day processing of
any Notice of Exercise and all fees to the Depository Trust Company (or another established clearing corporation performing similar
functions) required for same-day electronic delivery of the Warrant Shares.

 

vii.         
Closing of Books. The Company will not close its stockholder books or records in any manner which prevents the timely
exercise of this Warrant, pursuant to the terms hereof.

 

 

 

    	 	A-4	 

     

    

 

e)              
Holder’s Exercise Limitations. The Company shall not effect any exercise of this Warrant, and a Holder shall
not have the right to exercise any portion of this Warrant, pursuant to Section 2 or otherwise, to the extent that after giving
effect to such issuance after exercise as set forth on the applicable Notice of Exercise, the Holder (together with the Holder’s
Affiliates, and any other Persons acting as a group together with the Holder or any of the Holder’s Affiliates (such Persons,
“Attribution Parties”)), would beneficially own in excess of the Beneficial Ownership Limitation (as defined
below).  For purposes of the foregoing sentence, the number of shares of Common Stock beneficially owned by the Holder and
its Affiliates and Attribution Parties shall include the number of shares of Common Stock issuable upon exercise of this Warrant
with respect to which such determination is being made, but shall exclude the number of shares of Common Stock which would be
issuable upon (i) exercise of the remaining, nonexercised portion of this Warrant beneficially owned by the Holder or any of its
Affiliates or Attribution Parties and (ii) exercise or conversion of the unexercised or nonconverted portion of any other securities
of the Company (including, without limitation, any other Common Stock Equivalents) subject to a limitation on conversion or exercise
analogous to the limitation contained herein beneficially owned by the Holder or any of its Affiliates or Attribution Parties. 
Except as set forth in the preceding sentence, for purposes of this Section 2(e), beneficial ownership shall be calculated in
accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder, it being acknowledged
by the Holder that the Company is not representing to the Holder that such calculation is in compliance with Section 13(d) of
the Exchange Act and the Holder is solely responsible for any schedules required to be filed in accordance therewith. To the extent
that the limitation contained in this Section 2(e) applies, the determination of whether this Warrant is exercisable (in relation
to other securities owned by the Holder together with any Affiliates and Attribution Parties) and of which portion of this Warrant
is exercisable shall be in the sole discretion of the Holder, and the submission of a Notice of Exercise shall be deemed to be
the Holder’s determination of whether this Warrant is exercisable (in relation to other securities owned by the Holder together
with any Affiliates and Attribution Parties) and of which portion of this Warrant is exercisable, in each case subject to the
Beneficial Ownership Limitation, and the Company shall have no obligation to verify or confirm the accuracy of such determination.
In addition, a determination as to any group status as contemplated above shall be determined in accordance with Section 13(d)
of the Exchange Act and the rules and regulations promulgated thereunder. For purposes of this Section 2(e), in determining the
number of outstanding shares of Common Stock, a Holder may rely on the number of outstanding shares of Common Stock as reflected
in (A) the Company’s most recent periodic or annual report filed with the Commission, as the case may be, (B) a more recent
public announcement by the Company or (C) a more recent written notice by the Company or the Transfer Agent setting forth the
number of shares of Common Stock outstanding.  Upon the written or oral request of a Holder, the Company shall within two
Trading Days confirm orally and in writing to the Holder the number of shares of Common Stock then outstanding.  In any case,
the number of outstanding shares of Common Stock shall be determined after giving effect to the conversion or exercise of securities
of the Company, including this Warrant, by the Holder or its Affiliates or Attribution Parties since the date as of which such
number of outstanding shares of Common Stock was reported. The “Beneficial Ownership Limitation” shall be 4.99%/9.99%
of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock
issuable upon exercise of this Warrant. The Holder, upon notice to the Company, may increase or decrease the Beneficial Ownership
Limitation provisions of this Section 2(e), provided that the Beneficial Ownership Limitation in no event exceeds 9.99% of the
number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock upon
exercise of this Warrant held by the Holder and the provisions of this Section 2(e) shall continue to apply. Any increase in the
Beneficial Ownership Limitation will not be effective until the 61st day after such notice is delivered to the Company.
The provisions of this paragraph shall be construed and implemented in a manner otherwise than in strict conformity with the terms
of this Section 2(e) to correct this paragraph (or any portion hereof) which may be defective or inconsistent with the intended
Beneficial Ownership Limitation herein contained or to make changes or supplements necessary or desirable to properly give effect
to such limitation. The limitations contained in this paragraph shall apply to a successor holder of this Warrant.

 

 

 

    	 	A-5	 

     

    

 

Section 3.                
Certain Adjustments.

 

a)              
Stock Dividends and Splits. If the Company, at any time while this Warrant is outstanding: (i) pays a stock dividend
or otherwise makes a distribution or distributions on shares of its Common Stock or any other equity or equity equivalent securities
payable in shares of Common Stock (which, for avoidance of doubt, shall not include any shares of Common Stock issued by the Company
upon exercise of this Warrant), (ii) subdivides outstanding shares of Common Stock into a larger number of shares, (iii) combines
(including by way of reverse stock split) outstanding shares of Common Stock into a smaller number of shares, or (iv) issues by
reclassification of shares of the Common Stock any shares of capital stock of the Company, then in each case the Exercise Price
shall be multiplied by a fraction of which the numerator shall be the number of shares of Common Stock (excluding treasury shares,
if any) outstanding immediately before such event and of which the denominator shall be the number of shares of Common Stock outstanding
immediately after such event, and the number of shares issuable upon exercise of this Warrant shall be proportionately adjusted
such that the aggregate Exercise Price of this Warrant shall remain unchanged. Any adjustment made pursuant to this Section 3(a)
shall become effective immediately after the record date for the determination of stockholders entitled to receive such dividend
or distribution and shall become effective immediately after the effective date in the case of a subdivision, combination or re-classification.

 

b)              
[Reserved]

 

c)              
Subsequent Rights Offerings. In addition to any adjustments pursuant to Section 3(a) above, if at any time the Company
grants, issues or sells any Common Stock Equivalents or rights to purchase stock, warrants, securities or other property pro rata
to the record holders of any class of shares of Common Stock (the “Purchase Rights”), then the Holder will
be entitled to acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights which the Holder could
have acquired if the Holder had held the number of shares of Common Stock acquirable upon complete exercise of this Warrant (without
regard to any limitations on exercise hereof, including without limitation, the Beneficial Ownership Limitation) immediately before
the date on which a record is taken for the grant, issuance or sale of such Purchase Rights, or, if no such record is taken, the
date as of which the record holders of shares of Common Stock are to be determined for the grant, issue or sale of such Purchase
Rights (provided, however, to the extent that the Holder’s right to participate in any such Purchase Right would result
in the Holder exceeding the Beneficial Ownership Limitation, then the Holder shall not be entitled to participate in such Purchase
Right to such extent (or beneficial ownership of such shares of Common Stock as a result of such Purchase Right to such extent)
and such Purchase Right to such extent shall be held in abeyance for the Holder until such time, if ever, as its right thereto
would not result in the Holder exceeding the Beneficial Ownership Limitation).

 

d)              
Pro Rata Distributions. During such time as this Warrant is outstanding, if the Company shall declare or make any
dividend or other distribution of its assets (or rights to acquire its assets) to holders of shares of Common Stock, by way of
return of capital or otherwise (including, without limitation, any distribution of cash, stock or other securities, property or
options by way of a dividend, spin off, reclassification, corporate rearrangement, scheme of arrangement or other similar transaction)
(a “Distribution”), at any time after the issuance of this Warrant, then, in each such case, the Holder shall
be entitled to participate in such Distribution to the same extent that the Holder would have participated therein if the Holder
had held the number of shares of Common Stock acquirable upon complete exercise of this Warrant (without regard to any limitations
on exercise hereof, including without limitation, the Beneficial Ownership Limitation) immediately before the date of which a
record is taken for such Distribution, or, if no such record is taken, the date as of which the record holders of shares of Common
Stock are to be determined for the participation in such Distribution (provided, however, to the extent that the
Holder's right to participate in any such Distribution would result in the Holder exceeding the Beneficial Ownership Limitation,
then the Holder shall not be entitled to participate in such Distribution to such extent (or in the beneficial ownership of any
shares of Common Stock as a result of such Distribution to such extent) and the portion of such Distribution shall be held in
abeyance for the benefit of the Holder until such time, if ever, as its right thereto would not result in the Holder exceeding
the Beneficial Ownership Limitation).

 

 

 

    	 	A-6	 

     

    

 

e)              
Fundamental Transaction. If, at any time while this Warrant is outstanding, (i) the Company, directly or indirectly,
in one or more related transactions effects any merger or consolidation of the Company with or into another Person, (ii) the Company,
directly or indirectly, effects any sale, lease, license, assignment, transfer, conveyance or other disposition of all or substantially
all of its assets in one or a series of related transactions, (iii) any, direct or indirect, purchase offer, tender offer or exchange
offer (whether by the Company or another Person) is completed pursuant to which holders of Common Stock are permitted to sell,
tender or exchange their shares for other securities, cash or property and has been accepted by the holders of 50% or more of
the outstanding Common Stock, (iv) the Company, directly or indirectly, in one or more related transactions effects any reclassification,
reorganization or recapitalization of the Common Stock or any compulsory share exchange pursuant to which the Common Stock is
effectively converted into or exchanged for other securities, cash or property, or (v) the Company, directly or indirectly, in
one or more related transactions consummates a stock or share purchase agreement or other business combination (including, without
limitation, a reorganization, recapitalization, spin-off or scheme of arrangement) with another Person or group of Persons whereby
such other Person or group acquires more than 50% of the outstanding shares of Common Stock (not including any shares of Common
Stock held by the other Person or other Persons making or party to, or associated or affiliated with the other Persons making
or party to, such stock or share purchase agreement or other business combination) (each a “Fundamental Transaction”),
then, upon any subsequent exercise of this Warrant, the Holder shall have the right to receive, for each Warrant Share that would
have been issuable upon such exercise immediately prior to the occurrence of such Fundamental Transaction, at the option of the
Holder (without regard to any limitation in Section 2(e) on the exercise of this Warrant), the number of shares of Common Stock
of the successor or acquiring corporation or of the Company, if it is the surviving corporation, and any additional consideration
(the “Alternate Consideration”) receivable as a result of such Fundamental Transaction by a holder of the number
of shares of Common Stock for which this Warrant is exercisable immediately prior to such Fundamental Transaction (without regard
to any limitation in Section 2(e) on the exercise of this Warrant). For purposes of any such exercise, the determination of the
Exercise Price shall be appropriately adjusted to apply to such Alternate Consideration based on the amount of Alternate Consideration
issuable in respect of one share of Common Stock in such Fundamental Transaction, and the Company shall apportion the Exercise
Price among the Alternate Consideration in a reasonable manner reflecting the relative value of any different components of the
Alternate Consideration. If holders of Common Stock are given any choice as to the securities, cash or property to be received
in a Fundamental Transaction, then the Holder shall be given the same choice as to the Alternate Consideration it receives upon
any exercise of this Warrant following such Fundamental Transaction. The Company shall cause any successor entity in a Fundamental
Transaction in which the Company is not the survivor (the “Successor Entity”) to assume in writing all of the
obligations of the Company under this Warrant and the other Transaction Documents in accordance with the provisions of this Section
3(e) pursuant to written agreements in form and substance reasonably satisfactory to the Holder and approved by the Holder (without
unreasonable delay) prior to such Fundamental Transaction and shall, at the option of the Holder, deliver to the Holder in exchange
for this Warrant a security of the Successor Entity evidenced by a written instrument substantially similar in form and substance
to this Warrant which is exercisable for a corresponding number of shares of capital stock of such Successor Entity (or its parent
entity) equivalent to the shares of Common Stock acquirable and receivable upon exercise of this Warrant (without regard to any
limitations on the exercise of this Warrant) prior to such Fundamental Transaction, and with an exercise price which applies the
exercise price hereunder to such shares of capital stock (but taking into account the relative value of the shares of Common Stock
pursuant to such Fundamental Transaction and the value of such shares of capital stock, such number of shares of capital stock
and such exercise price being for the purpose of protecting the economic value of this Warrant immediately prior to the consummation
of such Fundamental Transaction), and which is reasonably satisfactory in form and substance to the Holder. Upon the occurrence
of any such Fundamental Transaction, the Successor Entity shall succeed to, and be substituted for (so that from and after the
date of such Fundamental Transaction, the provisions of this Warrant and the other Transaction Documents referring to the “Company”
shall refer instead to the Successor Entity), and may exercise every right and power of the Company and shall assume all of the
obligations of the Company under this Warrant and the other Transaction Documents with the same effect as if such Successor Entity
had been named as the Company herein.

 

f)               
Calculations. All calculations under this Section 3 shall be made to the nearest cent or the nearest 1/100th of
a share, as the case may be. For purposes of this Section 3, the number of shares of Common Stock deemed to be issued and outstanding
as of a given date shall be the sum of the number of shares of Common Stock (excluding treasury shares, if any) issued and outstanding.

 

 

 

    	 	A-7	 

     

    

 

g)              
Notice to Holder.

 

i.         
Adjustment to Exercise Price. Whenever the Exercise Price is adjusted pursuant to any provision of this Section
3, the Company shall promptly deliver to the Holder by facsimile or email a notice setting forth the Exercise Price after such
adjustment and any resulting adjustment to the number of Warrant Shares and setting forth a brief statement of the facts requiring
such adjustment.

 

ii.         
Notice to Allow Exercise by Holder. If (A) the Company shall declare a dividend (or any other distribution in whatever
form) on the Common Stock, (B) the Company shall declare a special nonrecurring cash dividend on or a redemption of the Common
Stock, (C) the Company shall authorize the granting to all holders of the Common Stock rights or warrants to subscribe for or
purchase any shares of capital stock of any class or of any rights, (D) the approval of any stockholders of the Company shall
be required in connection with any reclassification of the Common Stock, any consolidation or merger to which the Company is a
party, any sale or transfer of all or substantially all of the assets of the Company, or any compulsory share exchange whereby
the Common Stock is converted into other securities, cash or property, or (E) the Company shall authorize the voluntary or involuntary
dissolution, liquidation or winding up of the affairs of the Company, then, in each case, the Company shall cause to be delivered
by facsimile or email to the Holder at its last facsimile number or email address as it shall appear upon the Warrant Register
of the Company, at least 20 calendar days prior to the applicable record or effective date hereinafter specified, a notice stating
(x) the date on which a record is to be taken for the purpose of such dividend, distribution, redemption, rights or warrants,
or if a record is not to be taken, the date as of which the holders of the Common Stock of record to be entitled to such dividend,
distributions, redemption, rights or warrants are to be determined or (y) the date on which such reclassification, consolidation,
merger, sale, transfer or share exchange is expected to become effective or close, and the date as of which it is expected that
holders of the Common Stock of record shall be entitled to exchange their shares of the Common Stock for securities, cash or other
property deliverable upon such reclassification, consolidation, merger, sale, transfer or share exchange; provided that the failure
to deliver such notice or any defect therein or in the delivery thereof shall not affect the validity of the corporate action
required to be specified in such notice. To the extent that any notice provided in this Warrant constitutes, or contains, material,
non-public information regarding the Company or any of the Subsidiaries, the Company shall simultaneously file such notice with
the Commission pursuant to a Current Report on Form 8-K. The Holder shall remain entitled to exercise this Warrant during the
period commencing on the date of such notice to the effective date of the event triggering such notice except as may otherwise
be expressly set forth herein.

 

Section 4.                
Transfer of Warrant.

 

a)              
Transferability. This Warrant and all rights hereunder (including, without limitation, any registration rights)
are transferable, in whole or in part, upon surrender of this Warrant at the principal office of the Company or its designated
agent, together with a written assignment of this Warrant substantially in the form attached hereto duly executed by the Holder
or its agent or attorney and funds sufficient to pay any transfer taxes payable upon the making of such transfer. Upon such surrender
and, if required, such payment, the Company shall execute and deliver a new Warrant or Warrants in the name of the assignee or
assignees, as applicable, and in the denomination or denominations specified in such instrument of assignment, and shall issue
to the assignor a new Warrant evidencing the portion of this Warrant not so assigned, and this Warrant shall promptly be cancelled.
Notwithstanding anything herein to the contrary, the Holder shall not be required to physically surrender this Warrant to the
Company unless the Holder has assigned this Warrant in full, in which case, the Holder shall surrender this Warrant to the Company
within three (3) Trading Days of the date on which the Holder delivers an assignment form to the Company assigning this Warrant
in full. The Warrant, if properly assigned in accordance herewith, may be exercised by a new holder for the purchase of Warrant
Shares without having a new Warrant issued.

 

b)              
New Warrants. This Warrant may be divided or combined with other Warrants upon presentation hereof at the aforesaid
office of the Company, together with a written notice specifying the names and denominations in which new Warrants are to be issued,
signed by the Holder or its agent or attorney. Subject to compliance with Section 4(a), as to any transfer which may be involved
in such division or combination, the Company shall execute and deliver a new Warrant or Warrants in exchange for the Warrant or
Warrants to be divided or combined in accordance with such notice. All Warrants issued on transfers or exchanges shall be dated
the initial issuance date of this Warrant and shall be identical with this Warrant except as to the number of Warrant Shares issuable
pursuant thereto.

 

c)              
Warrant Register. The Company shall register this Warrant, upon records to be maintained by the Company for that
purpose (the “Warrant Register”), in the name of the record Holder hereof from time to time. The Company may
deem and treat the registered Holder of this Warrant as the absolute owner hereof for the purpose of any exercise hereof or any
distribution to the Holder, and for all other purposes, absent actual notice to the contrary.

 

 

 

    	 	A-8	 

     

    

 

Section 5.                
Miscellaneous.

 

a)              
No Rights as Stockholder Until Exercise. This Warrant does not entitle the Holder to any voting rights, dividends
or other rights as a stockholder of the Company prior to the exercise hereof as set forth in Section 2(d)(i), except as expressly
set forth in Section 3.

 

b)              
Loss, Theft, Destruction or Mutilation of Warrant. The Company covenants that upon receipt by the Company of evidence
reasonably satisfactory to it of the loss, theft, destruction or mutilation of this Warrant or any stock certificate relating
to the Warrant Shares, and in case of loss, theft or destruction, of indemnity or security reasonably satisfactory to it (which,
in the case of the Warrant, shall not include the posting of any bond), and upon surrender and cancellation of such Warrant or
stock certificate, if mutilated, the Company will make and deliver a new Warrant or stock certificate of like tenor and dated
as of such cancellation, in lieu of such Warrant or stock certificate.

 

c)              
Saturdays, Sundays, Holidays, etc. If the last or appointed day for the taking of any action or the expiration of
any right required or granted herein shall not be a Business Day, then, such action may be taken or such right may be exercised
on the next succeeding Business Day.

 

d)              
Authorized Shares.

 

The Company
covenants that, during the period the Warrant is outstanding, it will reserve from its authorized and unissued Common Stock a
sufficient number of shares to provide for the issuance of the Warrant Shares upon the exercise of any purchase rights under this
Warrant. The Company further covenants that its issuance of this Warrant shall constitute full authority to its officers who are
charged with the duty of issuing the necessary Warrant Shares upon the exercise of the purchase rights under this Warrant. The
Company will take all such reasonable action as may be necessary to assure that such Warrant Shares may be issued as provided
herein without violation of any applicable law or regulation, or of any requirements of the Trading Market upon which the Common
Stock may be listed. The Company covenants that all Warrant Shares which may be issued upon the exercise of the purchase rights
represented by this Warrant will, upon exercise of the purchase rights represented by this Warrant and payment for such Warrant
Shares in accordance herewith, be duly authorized, validly issued, fully paid and nonassessable and free from all taxes, liens
and charges created by the Company in respect of the issue thereof (other than taxes in respect of any transfer occurring contemporaneously
with such issue).

 

Except and
to the extent as waived or consented to by the Holder, the Company shall not by any action, including, without limitation, amending
its certificate of incorporation or through any reorganization, transfer of assets, consolidation, merger, dissolution, issue
or sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms
of this Warrant, but will at all times in good faith assist in the carrying out of all such terms and in the taking of all such
actions as may be necessary or appropriate to protect the rights of Holder as set forth in this Warrant against impairment. Without
limiting the generality of the foregoing, the Company will (i) not increase the par value of any Warrant Shares above the amount
payable therefor upon such exercise immediately prior to such increase in par value, (ii) take all such action as may be necessary
or appropriate in order that the Company may validly and legally issue fully paid and nonassessable Warrant Shares upon the exercise
of this Warrant and (iii) use commercially reasonable efforts to obtain all such authorizations, exemptions or consents from any
public regulatory body having jurisdiction thereof, as may be, necessary to enable the Company to perform its obligations under
this Warrant.

 

Before taking
any action which would result in an adjustment in the number of Warrant Shares for which this Warrant is exercisable or in the
Exercise Price, the Company shall obtain all such authorizations or exemptions thereof, or consents thereto, as may be necessary
from any public regulatory body or bodies having jurisdiction thereof.

 

e)              
Jurisdiction. All questions concerning the construction, validity, enforcement and interpretation of this Warrant
shall be determined in accordance with the provisions of the Purchase Agreement.

 

 

 

    	 	A-9	 

     

    

 

f)               
Restrictions. The Holder acknowledges that the Warrant Shares acquired upon the exercise of this Warrant, if not
registered, and the Holder does not utilize cashless exercise, will have restrictions upon resale imposed by state and federal
securities laws.

 

g)              
Nonwaiver and Expenses. No course of dealing or any delay or failure to exercise any right hereunder on the part
of Holder shall operate as a waiver of such right or otherwise prejudice the Holder’s rights, powers or remedies. Without
limiting any other provision of this Warrant or the Purchase Agreement, if the Company willfully and knowingly fails to comply
with any provision of this Warrant, which results in any material damages to the Holder, the Company shall pay to the Holder such
amounts as shall be sufficient to cover any costs and expenses including, but not limited to, reasonable attorneys’ fees,
including those of appellate proceedings, incurred by the Holder in collecting any amounts due pursuant hereto or in otherwise
enforcing any of its rights, powers or remedies hereunder.

 

h)              
Notices. Any notice, request or other document required or permitted to be given or delivered to the Holder by the
Company shall be delivered in accordance with the notice provisions of the Purchase Agreement.

 

i)               
Limitation of Liability. No provision hereof, in the absence of any affirmative action by the Holder to exercise
this Warrant to purchase Warrant Shares, and no enumeration herein of the rights or privileges of the Holder, shall give rise
to any liability of the Holder for the purchase price of any Common Stock or as a stockholder of the Company, whether such liability
is asserted by the Company or by creditors of the Company.

 

j)               
Remedies. The Holder, in addition to being entitled to exercise all rights granted by law, including recovery of
damages, will be entitled to specific performance of its rights under this Warrant. The Company agrees that monetary damages would
not be adequate compensation for any loss incurred by reason of a breach by it of the provisions of this Warrant and hereby agrees
to waive and not to assert the defense in any action for specific performance that a remedy at law would be adequate.

 

k)              
Successors and Assigns. Subject to applicable securities laws, this Warrant and the rights and obligations evidenced
hereby shall inure to the benefit of and be binding upon the successors and permitted assigns of the Company and the successors
and permitted assigns of Holder. The provisions of this Warrant are intended to be for the benefit of any Holder from time to
time of this Warrant and shall be enforceable by the Holder or holder of Warrant Shares.

 

l)               
Amendment. This Warrant may be modified or amended or the provisions hereof waived with the written consent of the
Company and the Holder.

 

m)            
Severability. Wherever possible, each provision of this Warrant shall be interpreted in such manner as to be effective
and valid under applicable law, but if any provision of this Warrant shall be prohibited by or invalid under applicable law, such
provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provisions
or the remaining provisions of this Warrant.

 

n)              
Headings. The headings used in this Warrant are for the convenience of reference only and shall not, for any purpose,
be deemed a part of this Warrant.

 

********************

 

(Signature Page Follows)

 

 

 

    	 	A-10	 

     

    

 

IN WITNESS WHEREOF,
the Company has caused this Warrant to be executed by its officer thereunto duly authorized as of the date first above indicated.

 

	 	aethlon
                           medical, inc.

	 	By:__________________________________________

        Name:

        Title:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	A-11	 

     

    

 

NOTICE OF EXERCISE

 

To:      aethlon
medical, inc.

 

(1)  
The undersigned hereby elects to purchase ________ Warrant Shares of the Company pursuant to the terms of the attached
Warrant (only if exercised in full), and tenders herewith payment of the exercise price in full, together with all applicable
transfer taxes, if any.

 

(2)  
Payment shall take the form of (check applicable box):

 

[_] in lawful
money of the United States; or

 

[_] if permitted
the cancellation of such number of Warrant Shares as is necessary, in accordance with the formula set forth in subsection 2(c),
to exercise this Warrant with respect to the maximum number of Warrant Shares purchasable pursuant to the cashless exercise procedure
set forth in subsection 2(c).

 

(3)  
Please issue said Warrant Shares in the name of the undersigned or in such other name as is specified below:

 

 

_______________________________

 

 

The Warrant Shares shall be delivered
to the following DWAC Account Number:

 

 

_______________________________

 

 

_______________________________

 

 

_______________________________

 

 

[SIGNATURE
OF HOLDER]

 

 

Name of Investing Entity: ________________________________________________________________________

Signature of Authorized Signatory of
Investing Entity: _________________________________________________

Name of Authorized Signatory: ___________________________________________________________________

Title of Authorized Signatory: ____________________________________________________________________

Date: ________________________________________________________________________________________

 

 

 

 

    	 	A-12	 

     

    

 

EXHIBIT B

 

ASSIGNMENT
FORM

 

(To assign the
foregoing Warrant, execute this form and supply required information. Do not use this form to purchase shares.)

 

FOR VALUE RECEIVED,
the foregoing Warrant and all rights evidenced thereby are hereby assigned to

 

	Name:	 
	 	(Please Print)
	 	 
	Address:	 
	 	(Please Print)
	 	 
	Phone Number:

        
	 

        

	 	 
	Email Address:	 
	 	 
	Dated: _______________ __, ______	 
	 	 
	Holder’s Signature:                                                          	 
	 	 
	Holder’s Address:                                                          	 

 

 

 

 

 

    	 	A-13	 

     

    

 

EXHIBIT B

 

 

PRE-FUNDED COMMON STOCK PURCHASE WARRANT

 

aethlon
medical, inc.

 

	Warrant Shares: _______	Initial Exercise Date: _______, 2017

 

THIS PRE-FUNDED COMMON
STOCK PURCHASE WARRANT (the “Warrant”) certifies that, for value received, _____________ or its assigns (the
“Holder”) is entitled, upon the terms and subject to the limitations on exercise and the conditions hereinafter
set forth, at any time on or after the date hereof (the “Initial Exercise Date”) until this Warrant is exercised
in full (the “Termination Date”) but not thereafter, to subscribe for and purchase from Aethlon Medical, Inc.,
a Nevada corporation (the “Company”), up to ______ shares (as subject to adjustment hereunder, the “Warrant
Shares”) of Common Stock. The purchase price of one share of Common Stock under this Warrant shall be equal to the Exercise
Price, as defined in Section 2(b).

 

Section 1.                
Definitions. Capitalized terms used and not otherwise defined herein shall have the meanings set forth in that certain
Securities Purchase Agreement (the “Purchase Agreement”), dated __________, 2017, among the Company and the
purchasers signatory thereto.

 

Section 2.                
Exercise.

 

a)              
Exercise of Warrant. Exercise of the purchase rights represented by this Warrant may be made, in whole or in part,
at any time or times on or after the Initial Exercise Date and on or before the Termination Date by delivery to the Company of
a duly executed facsimile copy (or e-mail attachment) of the Notice of Exercise in the form annexed hereto (the “Notice
of Exercise”). By the Standard Settlement Period Delivery Date (as defined in Section 2(d)(i) herein) following the
date of exercise as aforesaid, the Holder shall deliver the aggregate Exercise Price for the shares specified in the applicable
Notice of Exercise by wire transfer or cashier’s check drawn on a United States bank unless the cashless exercise procedure
specified in Section 2(c) below is specified in the applicable Notice of Exercise. No ink-original Notice of Exercise shall be
required, nor shall any medallion guarantee (or other type of guarantee or notarization) of any Notice of Exercise be required.
Notwithstanding anything herein to the contrary, the Holder shall not be required to physically surrender this Warrant to the
Company until the Holder has purchased all of the Warrant Shares available hereunder and the Warrant has been exercised in full,
in which case, the Holder shall surrender this Warrant to the Company for cancellation within three (3) Trading Days of the date
on which the final Notice of Exercise is delivered to the Company. Partial exercises of this Warrant resulting in purchases of
a portion of the total number of Warrant Shares available hereunder shall have the effect of lowering the outstanding number of
Warrant Shares purchasable hereunder in an amount equal to the applicable number of Warrant Shares purchased. The Holder and the
Company shall maintain records showing the number of Warrant Shares purchased and the date of such purchases. The Company shall
deliver any objection to any Notice of Exercise within one (1) Business Day of receipt of such notice. The Holder and any assignee,
by acceptance of this Warrant, acknowledge and agree that, by reason of the provisions of this paragraph, following the purchase
of a portion of the Warrant Shares hereunder, the number of Warrant Shares available for purchase hereunder at any given time
may be less than the amount stated on the face hereof.

 

b)              
Exercise Price. The aggregate exercise price of this Warrant, except for a nominal exercise price of $0.01 per Warrant
Share, was pre-funded to the Company on or prior to the Initial Exercise Date and, consequently, no additional consideration (other
than the nominal exercise price of $0.01 per Warrant Share) shall be required to be paid by the Holder to any Person to effect
any exercise of this Warrant. The Holder shall not be entitled to the return or refund of all, or any portion, of such pre-paid
aggregate exercise price under any circumstance or for any reason whatsoever, including in the event this Warrant shall not have
been exercised prior to the Termination Date. The remaining unpaid exercise price per share of Common Stock under this Warrant
shall be $0.01, subject to adjustment hereunder (the “Exercise Price”).

 

 

 

    	 	B-1	 

     

    

 

c)              
Cashless Exercise. If at the time of exercise hereof there is no effective registration statement registering, or
the prospectus contained therein is not available for the issuance of the Warrant Shares to the Holder, then this Warrant may
also be exercised, in whole or in part, at such time by means of a “cashless exercise” in which the Holder shall be
entitled to receive a number of Warrant Shares equal to the quotient obtained by dividing [(A-B) (X)] by (A), where:

 

(A)
= as applicable: (i) the VWAP on the Trading Day immediately preceding the date of the applicable Notice of Exercise if such Notice
of Exercise is (1) both executed and delivered pursuant to Section 2(a) hereof on a day that is not a Trading Day or (2) both
executed and delivered pursuant to Section 2(a) hereof on a Trading Day prior to the opening of “regular trading hours”
(as defined in Rule 600(b)(64) of Regulation NMS promulgated under the federal securities laws) on such Trading Day, (ii) at the
option of the Holder, either (y) the VWAP on the Trading Day immediately preceding the date of the applicable Notice of Exercise
or (z) the Bid Price of the Common Stock on the principal Trading Market as reported by Bloomberg L.P. as of the time of the Holder’s
execution of the applicable Notice of Exercise if such Notice of Exercise is executed during “regular trading hours”
on a Trading Day and is delivered within two (2) hours thereafter pursuant to Section 2(a) hereof or (iii) the VWAP on the date
of the applicable Notice of Exercise if the date of such Notice of Exercise is a Trading Day and such Notice of Exercise is both
executed and delivered pursuant to Section 2(a) hereof after the close of “regular trading hours” on such Trading
Day;

 

(B) = the
Exercise Price of this Warrant, as adjusted hereunder; and

 

(X)
= the number of Warrant Shares that would be issuable upon exercise of this Warrant in accordance with the terms of this Warrant
if such exercise were by means of a cash exercise rather than a cashless exercise.

 

If
Warrant Shares are issued in such a cashless exercise, the parties acknowledge and agree that in accordance with Section 3(a)(9)
of the Securities Act, the Warrant Shares shall take on the registered characteristics of the Warrants being exercised.  The
Company agrees not to take any position contrary to this Section 2(c).

 

“Bid
Price” means, for any date, the price determined by the first of the following clauses that applies: (a) if the Common
Stock is then listed or quoted on a Trading Market, the bid price of the Common Stock for the time in question (or the nearest
preceding date) on the Trading Market on which the Common Stock is then listed or quoted as reported by Bloomberg L.P. (based
on a Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)), (b)  if OTCQB or OTCQX is not a
Trading Market, the volume weighted average price of the Common Stock for such date (or the nearest preceding date) on OTCQB or
OTCQX as applicable, (c) if the Common Stock is not then listed or quoted for trading on OTCQB or OTCQX and if prices for the
Common Stock are then reported in the “Pink Sheets” published by OTC Markets Group, Inc. (or a similar organization
or agency succeeding to its functions of reporting prices), the most recent bid price per share of the Common Stock so reported,
or (d) in all other cases, the fair market value of a share of Common Stock as determined by an independent appraiser selected
in good faith by the Purchasers of a majority in interest of the Securities then outstanding and reasonably acceptable to the
Company, the fees and expenses of which shall be paid by the Company.

 

“VWAP”
means, for any date, the price determined by the first of the following clauses that applies: (a) if the Common Stock is then
listed or quoted on a Trading Market, the daily volume weighted average price of the Common Stock for such date (or the nearest
preceding date) on the Trading Market on which the Common Stock is then listed or quoted as reported by Bloomberg L.P. (based
on a Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)), (b)  if OTCQB or OTCQX is not a
Trading Market, the volume weighted average price of the Common Stock for such date (or the nearest preceding date) on OTCQB or
OTCQX as applicable, (c) if the Common Stock is not then listed or quoted for trading on OTCQB or OTCQX and if prices for the
Common Stock are then reported in the “Pink Sheets” published by OTC Markets Group, Inc. (or a similar organization
or agency succeeding to its functions of reporting prices), the most recent bid price per share of the Common Stock so reported,
or (d) in all other cases, the fair market value of a share of Common Stock as determined by an independent appraiser selected
in good faith by the Purchasers of a majority in interest of the Securities then outstanding and reasonably acceptable to the
Company, the fees and expenses of which shall be paid by the Company.

 

 

 

    	 	B-2	 

     

    

 

Notwithstanding
anything herein to the contrary, on the Termination Date, this Warrant shall be automatically exercised via cashless exercise
pursuant to this Section 2(c).

 

d)              
Mechanics of Exercise.

 

i.         
Delivery of Warrant Shares Upon Exercise. The Company shall cause the Warrant Shares purchased hereunder to be transmitted
by the Transfer Agent to the Holder by crediting the account of the Holder’s or its designee’s balance account with
The Depository Trust Company through its Deposit or Withdrawal at Custodian system (“DWAC”) if the Company
is then a participant in such system and either (A) there is an effective registration statement permitting the issuance of the
Warrant Shares to or resale of the Warrant Shares by Holder or (B) this Warrant is being exercised via cashless exercise, and
otherwise by physical delivery of a certificate, registered in the Company’s share register in the name of the Holder or
its designee, for the number of Warrant Shares to which the Holder is entitled pursuant to such exercise to the address specified
by the Holder in the Notice of Exercise by the date that is the earlier of (A) the Standard Settlement Period Delivery Date after
the delivery to the Company of the Notice of Exercise and (B) one (1) Trading Day after delivery of the aggregate Exercise Price
to the Company (such date, the “Warrant Share Delivery Date”). Upon delivery of the Notice of Exercise, the
Holder shall be deemed for all corporate purposes to have become the holder of record of the Warrant Shares with respect to which
this Warrant has been exercised, irrespective of the date of delivery of the Warrant Shares, provided that payment of the aggregate
Exercise Price (other than in the case of a cashless exercise) is received by the Standard Settlement Period Delivery Date following
delivery of the Notice of Exercise. If the Company fails for any reason to deliver to the Holder the Warrant Shares subject to
a Notice of Exercise by the Warrant Share Delivery Date, the Company shall pay to the Holder, in cash, as liquidated damages and
not as a penalty, for each $1,000 of Warrant Shares subject to such exercise (based on the VWAP of the Common Stock on the date
of the applicable Notice of Exercise), $10 per Trading Day (increasing to $20 per Trading Day on the fifth Trading Day after such
liquidated damages begin to accrue) for each Trading Day after such Warrant Share Delivery Date until such Warrant Shares are
delivered or Holder rescinds such exercise. The Company agrees to maintain a transfer agent that is a participant in the FAST
program so long as this Warrant remains outstanding and exercisable. As used herein, “Standard Settlement Period”
means the standard settlement period, expressed in a number of Trading Days, on the Company’s primary Trading Market with
respect to the Common Stock as in effect on the date of delivery of the Notice of Exercise and “Standard Settlement Period
Delivery Date” means the Trading Day for delivery of Warrant Shares in compliance with the Standard Settlement Period.
Notwithstanding the foregoing, with respect to any Notice(s) of Exercise delivered on or prior to 12:00 p.m. (New York City time)
on the Initial Exercise Date, which may be delivered at any time after the time of execution of the Purchase Agreement, the Company
agrees to deliver the Warrant Shares subject to such notice(s) by 4:00 p.m. (New York City time) on the Initial Exercise Date.

 

ii.         
Delivery of New Warrants Upon Exercise. If this Warrant shall have been exercised in part, the Company shall, at
the request of a Holder and upon surrender of this Warrant certificate, at the time of delivery of the Warrant Shares, deliver
to the Holder a new Warrant evidencing the rights of the Holder to purchase the unpurchased Warrant Shares called for by this
Warrant, which new Warrant shall in all other respects be identical with this Warrant.

 

iii.         
Rescission Rights. If the Company fails to cause the Transfer Agent to transmit to the Holder the Warrant Shares
pursuant to Section 2(d)(i) by the Warrant Share Delivery Date, then the Holder will have the right to rescind such exercise.

 

 

 

    	 	B-3	 

     

    

 

iv.         
Compensation for Buy-In on Failure to Timely Deliver Warrant Shares Upon Exercise. In addition to any other rights
available to the Holder, if the Company fails to cause the Transfer Agent to transmit to the Holder the Warrant Shares in accordance
with the provisions of Section 2(d)(i) above pursuant to an exercise on or before the Warrant Share Delivery Date, and if after
such date the Holder is required by its broker to purchase (in an open market transaction or otherwise) or the Holder’s
brokerage firm otherwise purchases, shares of Common Stock to deliver in satisfaction of a sale by the Holder of the Warrant Shares
which the Holder anticipated receiving upon such exercise (a “Buy-In”), then the Company shall (A) pay in cash
to the Holder the amount, if any, by which (x) the Holder’s total purchase price (including brokerage commissions, if any)
for the shares of Common Stock so purchased exceeds (y) the amount obtained by multiplying (1) the number of Warrant Shares that
the Company was required to deliver to the Holder in connection with the exercise at issue times (2) the price at which the sell
order giving rise to such purchase obligation was executed, and (B) at the option of the Holder, either reinstate the portion
of the Warrant and equivalent number of Warrant Shares for which such exercise was not honored (in which case such exercise shall
be deemed rescinded) or deliver to the Holder the number of shares of Common Stock that would have been issued had the Company
timely complied with its exercise and delivery obligations hereunder. For example, if the Holder purchases Common Stock having
a total purchase price of $11,000 to cover a Buy-In with respect to an attempted exercise of shares of Common Stock with an aggregate
sale price giving rise to such purchase obligation of $10,000, under clause (A) of the immediately preceding sentence the Company
shall be required to pay the Holder $1,000. The Holder shall provide the Company written notice indicating the amounts payable
to the Holder in respect of the Buy-In and, upon request of the Company, evidence of the amount of such loss. Nothing herein shall
limit a Holder’s right to pursue any other remedies available to it hereunder, at law or in equity including, without limitation,
a decree of specific performance and/or injunctive relief with respect to the Company’s failure to timely deliver shares
of Common Stock upon exercise of the Warrant as required pursuant to the terms hereof.

 

v.         
No Fractional Shares or Scrip. No fractional shares or scrip representing fractional shares shall be issued upon
the exercise of this Warrant. As to any fraction of a share which the Holder would otherwise be entitled to purchase upon such
exercise, the Company shall, at its election, either pay a cash adjustment in respect of such final fraction in an amount equal
to such fraction multiplied by the Exercise Price or round up to the next whole share.

 

vi.         
Charges, Taxes and Expenses. Issuance of Warrant Shares shall be made without charge to the Holder for any issue
or transfer tax or other incidental expense in respect of the issuance of such Warrant Shares, all of which taxes and expenses
shall be paid by the Company, and such Warrant Shares shall be issued in the name of the Holder or in such name or names as may
be directed by the Holder; provided, however, that in the event that Warrant Shares are to be issued in a name other
than the name of the Holder, this Warrant when surrendered for exercise shall be accompanied by the Assignment Form attached hereto
duly executed by the Holder and the Company may require, as a condition thereto, the payment of a sum sufficient to reimburse
it for any transfer tax incidental thereto. The Company shall pay all Transfer Agent fees required for same-day processing of
any Notice of Exercise and all fees to the Depository Trust Company (or another established clearing corporation performing similar
functions) required for same-day electronic delivery of the Warrant Shares.

 

vii.         
Closing of Books. The Company will not close its stockholder books or records in any manner which prevents the timely
exercise of this Warrant, pursuant to the terms hereof.

 

 

 

    	 	B-4	 

     

    

 

e)              
Holder’s Exercise Limitations. The Company shall not effect any exercise of this Warrant, and a Holder shall
not have the right to exercise any portion of this Warrant, pursuant to Section 2 or otherwise, to the extent that after giving
effect to such issuance after exercise as set forth on the applicable Notice of Exercise, the Holder (together with the Holder’s
Affiliates, and any other Persons acting as a group together with the Holder or any of the Holder’s Affiliates (such Persons,
“Attribution Parties”)), would beneficially own in excess of the Beneficial Ownership Limitation (as defined
below).  For purposes of the foregoing sentence, the number of shares of Common Stock beneficially owned by the Holder and
its Affiliates and Attribution Parties shall include the number of shares of Common Stock issuable upon exercise of this Warrant
with respect to which such determination is being made, but shall exclude the number of shares of Common Stock which would be
issuable upon (i) exercise of the remaining, nonexercised portion of this Warrant beneficially owned by the Holder or any of its
Affiliates or Attribution Parties and (ii) exercise or conversion of the unexercised or nonconverted portion of any other securities
of the Company (including, without limitation, any other Common Stock Equivalents) subject to a limitation on conversion or exercise
analogous to the limitation contained herein beneficially owned by the Holder or any of its Affiliates or Attribution Parties. 
Except as set forth in the preceding sentence, for purposes of this Section 2(e), beneficial ownership shall be calculated in
accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder, it being acknowledged
by the Holder that the Company is not representing to the Holder that such calculation is in compliance with Section 13(d) of
the Exchange Act and the Holder is solely responsible for any schedules required to be filed in accordance therewith. To the extent
that the limitation contained in this Section 2(e) applies, the determination of whether this Warrant is exercisable (in relation
to other securities owned by the Holder together with any Affiliates and Attribution Parties) and of which portion of this Warrant
is exercisable shall be in the sole discretion of the Holder, and the submission of a Notice of Exercise shall be deemed to be
the Holder’s determination of whether this Warrant is exercisable (in relation to other securities owned by the Holder together
with any Affiliates and Attribution Parties) and of which portion of this Warrant is exercisable, in each case subject to the
Beneficial Ownership Limitation, and the Company shall have no obligation to verify or confirm the accuracy of such determination.
In addition, a determination as to any group status as contemplated above shall be determined in accordance with Section 13(d)
of the Exchange Act and the rules and regulations promulgated thereunder. For purposes of this Section 2(e), in determining the
number of outstanding shares of Common Stock, a Holder may rely on the number of outstanding shares of Common Stock as reflected
in (A) the Company’s most recent periodic or annual report filed with the Commission, as the case may be, (B) a more recent
public announcement by the Company or (C) a more recent written notice by the Company or the Transfer Agent setting forth the
number of shares of Common Stock outstanding.  Upon the written or oral request of a Holder, the Company shall within two
Trading Days confirm orally and in writing to the Holder the number of shares of Common Stock then outstanding.  In any case,
the number of outstanding shares of Common Stock shall be determined after giving effect to the conversion or exercise of securities
of the Company, including this Warrant, by the Holder or its Affiliates or Attribution Parties since the date as of which such
number of outstanding shares of Common Stock was reported. The “Beneficial Ownership Limitation” shall be 4.99%/9.99%
of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock
issuable upon exercise of this Warrant. The Holder, upon notice to the Company, may increase or decrease the Beneficial Ownership
Limitation provisions of this Section 2(e), provided that the Beneficial Ownership Limitation in no event exceeds 9.99% of the
number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock upon
exercise of this Warrant held by the Holder and the provisions of this Section 2(e) shall continue to apply. Any increase in the
Beneficial Ownership Limitation will not be effective until the 61st day after such notice is delivered to the Company.
The provisions of this paragraph shall be construed and implemented in a manner otherwise than in strict conformity with the terms
of this Section 2(e) to correct this paragraph (or any portion hereof) which may be defective or inconsistent with the intended
Beneficial Ownership Limitation herein contained or to make changes or supplements necessary or desirable to properly give effect
to such limitation. The limitations contained in this paragraph shall apply to a successor holder of this Warrant.

 

 

 

    	 	B-5	 

     

    

 

Section 3.                Certain
Adjustments.

 

a)              
Stock Dividends and Splits. If the Company, at any time while this Warrant is outstanding: (i) pays a stock dividend
or otherwise makes a distribution or distributions on shares of its Common Stock or any other equity or equity equivalent securities
payable in shares of Common Stock (which, for avoidance of doubt, shall not include any shares of Common Stock issued by the Company
upon exercise of this Warrant), (ii) subdivides outstanding shares of Common Stock into a larger number of shares, (iii) combines
(including by way of reverse stock split) outstanding shares of Common Stock into a smaller number of shares, or (iv) issues by
reclassification of shares of the Common Stock any shares of capital stock of the Company, then in each case the Exercise Price
shall be multiplied by a fraction of which the numerator shall be the number of shares of Common Stock (excluding treasury shares,
if any) outstanding immediately before such event and of which the denominator shall be the number of shares of Common Stock outstanding
immediately after such event, and the number of shares issuable upon exercise of this Warrant shall be proportionately adjusted
such that the aggregate Exercise Price of this Warrant shall remain unchanged. Any adjustment made pursuant to this Section 3(a)
shall become effective immediately after the record date for the determination of stockholders entitled to receive such dividend
or distribution and shall become effective immediately after the effective date in the case of a subdivision, combination or re-classification.

 

b)              
[Reserved]

 

c)              
Subsequent Rights Offerings. In addition to any adjustments pursuant to Section 3(a) above, if at any time the Company
grants, issues or sells any Common Stock Equivalents or rights to purchase stock, warrants, securities or other property pro rata
to the record holders of any class of shares of Common Stock (the “Purchase Rights”), then the Holder will
be entitled to acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights which the Holder could
have acquired if the Holder had held the number of shares of Common Stock acquirable upon complete exercise of this Warrant (without
regard to any limitations on exercise hereof, including without limitation, the Beneficial Ownership Limitation) immediately before
the date on which a record is taken for the grant, issuance or sale of such Purchase Rights, or, if no such record is taken, the
date as of which the record holders of shares of Common Stock are to be determined for the grant, issue or sale of such Purchase
Rights (provided, however, to the extent that the Holder’s right to participate in any such Purchase Right would result
in the Holder exceeding the Beneficial Ownership Limitation, then the Holder shall not be entitled to participate in such Purchase
Right to such extent (or beneficial ownership of such shares of Common Stock as a result of such Purchase Right to such extent)
and such Purchase Right to such extent shall be held in abeyance for the Holder until such time, if ever, as its right thereto
would not result in the Holder exceeding the Beneficial Ownership Limitation).

 

d)              
Pro Rata Distributions. During such time as this Warrant is outstanding, if the Company shall declare or make any
dividend or other distribution of its assets (or rights to acquire its assets) to holders of shares of Common Stock, by way of
return of capital or otherwise (including, without limitation, any distribution of cash, stock or other securities, property or
options by way of a dividend, spin off, reclassification, corporate rearrangement, scheme of arrangement or other similar transaction)
(a “Distribution”), at any time after the issuance of this Warrant, then, in each such case, the Holder shall
be entitled to participate in such Distribution to the same extent that the Holder would have participated therein if the Holder
had held the number of shares of Common Stock acquirable upon complete exercise of this Warrant (without regard to any limitations
on exercise hereof, including without limitation, the Beneficial Ownership Limitation) immediately before the date of which a
record is taken for such Distribution, or, if no such record is taken, the date as of which the record holders of shares of Common
Stock are to be determined for the participation in such Distribution (provided, however, to the extent that the
Holder's right to participate in any such Distribution would result in the Holder exceeding the Beneficial Ownership Limitation,
then the Holder shall not be entitled to participate in such Distribution to such extent (or in the beneficial ownership of any
shares of Common Stock as a result of such Distribution to such extent) and the portion of such Distribution shall be held in
abeyance for the benefit of the Holder until such time, if ever, as its right thereto would not result in the Holder exceeding
the Beneficial Ownership Limitation).

 

 

 

    	 	B-6	 

     

    

 

e)              
Fundamental Transaction. If, at any time while this Warrant is outstanding, (i) the Company, directly or indirectly,
in one or more related transactions effects any merger or consolidation of the Company with or into another Person, (ii) the Company,
directly or indirectly, effects any sale, lease, license, assignment, transfer, conveyance or other disposition of all or substantially
all of its assets in one or a series of related transactions, (iii) any, direct or indirect, purchase offer, tender offer or exchange
offer (whether by the Company or another Person) is completed pursuant to which holders of Common Stock are permitted to sell,
tender or exchange their shares for other securities, cash or property and has been accepted by the holders of 50% or more of
the outstanding Common Stock, (iv) the Company, directly or indirectly, in one or more related transactions effects any reclassification,
reorganization or recapitalization of the Common Stock or any compulsory share exchange pursuant to which the Common Stock is
effectively converted into or exchanged for other securities, cash or property, or (v) the Company, directly or indirectly, in
one or more related transactions consummates a stock or share purchase agreement or other business combination (including, without
limitation, a reorganization, recapitalization, spin-off or scheme of arrangement) with another Person or group of Persons whereby
such other Person or group acquires more than 50% of the outstanding shares of Common Stock (not including any shares of Common
Stock held by the other Person or other Persons making or party to, or associated or affiliated with the other Persons making
or party to, such stock or share purchase agreement or other business combination) (each a “Fundamental Transaction”),
then, upon any subsequent exercise of this Warrant, the Holder shall have the right to receive, for each Warrant Share that would
have been issuable upon such exercise immediately prior to the occurrence of such Fundamental Transaction, at the option of the
Holder (without regard to any limitation in Section 2(e) on the exercise of this Warrant), the number of shares of Common Stock
of the successor or acquiring corporation or of the Company, if it is the surviving corporation, and any additional consideration
(the “Alternate Consideration”) receivable as a result of such Fundamental Transaction by a holder of the number
of shares of Common Stock for which this Warrant is exercisable immediately prior to such Fundamental Transaction (without regard
to any limitation in Section 2(e) on the exercise of this Warrant). For purposes of any such exercise, the determination of the
Exercise Price shall be appropriately adjusted to apply to such Alternate Consideration based on the amount of Alternate Consideration
issuable in respect of one share of Common Stock in such Fundamental Transaction, and the Company shall apportion the Exercise
Price among the Alternate Consideration in a reasonable manner reflecting the relative value of any different components of the
Alternate Consideration. If holders of Common Stock are given any choice as to the securities, cash or property to be received
in a Fundamental Transaction, then the Holder shall be given the same choice as to the Alternate Consideration it receives upon
any exercise of this Warrant following such Fundamental Transaction. The Company shall cause any successor entity in a Fundamental
Transaction in which the Company is not the survivor (the “Successor Entity”) to assume in writing all of the
obligations of the Company under this Warrant and the other Transaction Documents in accordance with the provisions of this Section
3(e) pursuant to written agreements in form and substance reasonably satisfactory to the Holder and approved by the Holder (without
unreasonable delay) prior to such Fundamental Transaction and shall, at the option of the Holder, deliver to the Holder in exchange
for this Warrant a security of the Successor Entity evidenced by a written instrument substantially similar in form and substance
to this Warrant which is exercisable for a corresponding number of shares of capital stock of such Successor Entity (or its parent
entity) equivalent to the shares of Common Stock acquirable and receivable upon exercise of this Warrant (without regard to any
limitations on the exercise of this Warrant) prior to such Fundamental Transaction, and with an exercise price which applies the
exercise price hereunder to such shares of capital stock (but taking into account the relative value of the shares of Common Stock
pursuant to such Fundamental Transaction and the value of such shares of capital stock, such number of shares of capital stock
and such exercise price being for the purpose of protecting the economic value of this Warrant immediately prior to the consummation
of such Fundamental Transaction), and which is reasonably satisfactory in form and substance to the Holder. Upon the occurrence
of any such Fundamental Transaction, the Successor Entity shall succeed to, and be substituted for (so that from and after the
date of such Fundamental Transaction, the provisions of this Warrant and the other Transaction Documents referring to the “Company”
shall refer instead to the Successor Entity), and may exercise every right and power of the Company and shall assume all of the
obligations of the Company under this Warrant and the other Transaction Documents with the same effect as if such Successor Entity
had been named as the Company herein.

 

f)               
Calculations. All calculations under this Section 3 shall be made to the nearest cent or the nearest 1/100th of
a share, as the case may be. For purposes of this Section 3, the number of shares of Common Stock deemed to be issued and outstanding
as of a given date shall be the sum of the number of shares of Common Stock (excluding treasury shares, if any) issued and outstanding.

 

 

 

    	 	B-7	 

     

    

 

g)              
Notice to Holder.

 

i.         
Adjustment to Exercise Price. Whenever the Exercise Price is adjusted pursuant to any provision of this Section
3, the Company shall promptly deliver to the Holder by facsimile or email a notice setting forth the Exercise Price after such
adjustment and any resulting adjustment to the number of Warrant Shares and setting forth a brief statement of the facts requiring
such adjustment.

 

ii.         
Notice to Allow Exercise by Holder. If (A) the Company shall declare a dividend (or any other distribution in whatever
form) on the Common Stock, (B) the Company shall declare a special nonrecurring cash dividend on or a redemption of the Common
Stock, (C) the Company shall authorize the granting to all holders of the Common Stock rights or warrants to subscribe for or
purchase any shares of capital stock of any class or of any rights, (D) the approval of any stockholders of the Company shall
be required in connection with any reclassification of the Common Stock, any consolidation or merger to which the Company is a
party, any sale or transfer of all or substantially all of the assets of the Company, or any compulsory share exchange whereby
the Common Stock is converted into other securities, cash or property, or (E) the Company shall authorize the voluntary or involuntary
dissolution, liquidation or winding up of the affairs of the Company, then, in each case, the Company shall cause to be delivered
by facsimile or email to the Holder at its last facsimile number or email address as it shall appear upon the Warrant Register
of the Company, at least 20 calendar days prior to the applicable record or effective date hereinafter specified, a notice stating
(x) the date on which a record is to be taken for the purpose of such dividend, distribution, redemption, rights or warrants,
or if a record is not to be taken, the date as of which the holders of the Common Stock of record to be entitled to such dividend,
distributions, redemption, rights or warrants are to be determined or (y) the date on which such reclassification, consolidation,
merger, sale, transfer or share exchange is expected to become effective or close, and the date as of which it is expected that
holders of the Common Stock of record shall be entitled to exchange their shares of the Common Stock for securities, cash or other
property deliverable upon such reclassification, consolidation, merger, sale, transfer or share exchange; provided that the failure
to deliver such notice or any defect therein or in the delivery thereof shall not affect the validity of the corporate action
required to be specified in such notice. To the extent that any notice provided in this Warrant constitutes, or contains, material,
non-public information regarding the Company or any of the Subsidiaries, the Company shall simultaneously file such notice with
the Commission pursuant to a Current Report on Form 8-K. The Holder shall remain entitled to exercise this Warrant during the
period commencing on the date of such notice to the effective date of the event triggering such notice except as may otherwise
be expressly set forth herein.

 

Section 4.                
Transfer of Warrant.

 

a)              
Transferability. This Warrant and all rights hereunder (including, without limitation, any registration rights)
are transferable, in whole or in part, upon surrender of this Warrant at the principal office of the Company or its designated
agent, together with a written assignment of this Warrant substantially in the form attached hereto duly executed by the Holder
or its agent or attorney and funds sufficient to pay any transfer taxes payable upon the making of such transfer. Upon such surrender
and, if required, such payment, the Company shall execute and deliver a new Warrant or Warrants in the name of the assignee or
assignees, as applicable, and in the denomination or denominations specified in such instrument of assignment, and shall issue
to the assignor a new Warrant evidencing the portion of this Warrant not so assigned, and this Warrant shall promptly be cancelled.
Notwithstanding anything herein to the contrary, the Holder shall not be required to physically surrender this Warrant to the
Company unless the Holder has assigned this Warrant in full, in which case, the Holder shall surrender this Warrant to the Company
within three (3) Trading Days of the date on which the Holder delivers an assignment form to the Company assigning this Warrant
in full. The Warrant, if properly assigned in accordance herewith, may be exercised by a new holder for the purchase of Warrant
Shares without having a new Warrant issued.

 

 

 

    	 	B-8	 

     

    

 

b)              
New Warrants. This Warrant may be divided or combined with other Warrants upon presentation hereof at the aforesaid
office of the Company, together with a written notice specifying the names and denominations in which new Warrants are to be issued,
signed by the Holder or its agent or attorney. Subject to compliance with Section 4(a), as to any transfer which may be involved
in such division or combination, the Company shall execute and deliver a new Warrant or Warrants in exchange for the Warrant or
Warrants to be divided or combined in accordance with such notice. All Warrants issued on transfers or exchanges shall be dated
the initial issuance date of this Warrant and shall be identical with this Warrant except as to the number of Warrant Shares issuable
pursuant thereto.

 

c)              
Warrant Register. The Company shall register this Warrant, upon records to be maintained by the Company for that
purpose (the “Warrant Register”), in the name of the record Holder hereof from time to time. The Company may
deem and treat the registered Holder of this Warrant as the absolute owner hereof for the purpose of any exercise hereof or any
distribution to the Holder, and for all other purposes, absent actual notice to the contrary.

 

Section 5.                
Miscellaneous.

 

a)              
No Rights as Stockholder Until Exercise. This Warrant does not entitle the Holder to any voting rights, dividends
or other rights as a stockholder of the Company prior to the exercise hereof as set forth in Section 2(d)(i), except as expressly
set forth in Section 3.

 

b)              
Loss, Theft, Destruction or Mutilation of Warrant. The Company covenants that upon receipt by the Company of evidence
reasonably satisfactory to it of the loss, theft, destruction or mutilation of this Warrant or any stock certificate relating
to the Warrant Shares, and in case of loss, theft or destruction, of indemnity or security reasonably satisfactory to it (which,
in the case of the Warrant, shall not include the posting of any bond), and upon surrender and cancellation of such Warrant or
stock certificate, if mutilated, the Company will make and deliver a new Warrant or stock certificate of like tenor and dated
as of such cancellation, in lieu of such Warrant or stock certificate.

 

c)              
Saturdays, Sundays, Holidays, etc. If the last or appointed day for the taking of any action or the expiration of
any right required or granted herein shall not be a Business Day, then, such action may be taken or such right may be exercised
on the next succeeding Business Day.

 

d)              
Authorized Shares.

 

The Company
covenants that, during the period the Warrant is outstanding, it will reserve from its authorized and unissued Common Stock a
sufficient number of shares to provide for the issuance of the Warrant Shares upon the exercise of any purchase rights under this
Warrant. The Company further covenants that its issuance of this Warrant shall constitute full authority to its officers who are
charged with the duty of issuing the necessary Warrant Shares upon the exercise of the purchase rights under this Warrant. The
Company will take all such reasonable action as may be necessary to assure that such Warrant Shares may be issued as provided
herein without violation of any applicable law or regulation, or of any requirements of the Trading Market upon which the Common
Stock may be listed. The Company covenants that all Warrant Shares which may be issued upon the exercise of the purchase rights
represented by this Warrant will, upon exercise of the purchase rights represented by this Warrant and payment for such Warrant
Shares in accordance herewith, be duly authorized, validly issued, fully paid and nonassessable and free from all taxes, liens
and charges created by the Company in respect of the issue thereof (other than taxes in respect of any transfer occurring contemporaneously
with such issue).

 

Except and
to the extent as waived or consented to by the Holder, the Company shall not by any action, including, without limitation, amending
its certificate of incorporation or through any reorganization, transfer of assets, consolidation, merger, dissolution, issue
or sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms
of this Warrant, but will at all times in good faith assist in the carrying out of all such terms and in the taking of all such
actions as may be necessary or appropriate to protect the rights of Holder as set forth in this Warrant against impairment. Without
limiting the generality of the foregoing, the Company will (i) not increase the par value of any Warrant Shares above the amount
payable therefor upon such exercise immediately prior to such increase in par value, (ii) take all such action as may be necessary
or appropriate in order that the Company may validly and legally issue fully paid and nonassessable Warrant Shares upon the exercise
of this Warrant and (iii) use commercially reasonable efforts to obtain all such authorizations, exemptions or consents from any
public regulatory body having jurisdiction thereof, as may be, necessary to enable the Company to perform its obligations under
this Warrant.

 

Before taking
any action which would result in an adjustment in the number of Warrant Shares for which this Warrant is exercisable or in the
Exercise Price, the Company shall obtain all such authorizations or exemptions thereof, or consents thereto, as may be necessary
from any public regulatory body or bodies having jurisdiction thereof.

 

 

 

    	 	B-9	 

     

    

 

e)              
Jurisdiction. All questions concerning the construction, validity, enforcement and interpretation of this Warrant
shall be determined in accordance with the provisions of the Purchase Agreement.

 

f)               
Restrictions. The Holder acknowledges that the Warrant Shares acquired upon the exercise of this Warrant, if not
registered, and the Holder does not utilize cashless exercise, will have restrictions upon resale imposed by state and federal
securities laws.

 

g)              
Nonwaiver and Expenses. No course of dealing or any delay or failure to exercise any right hereunder on the part
of Holder shall operate as a waiver of such right or otherwise prejudice the Holder’s rights, powers or remedies. Without
limiting any other provision of this Warrant or the Purchase Agreement, if the Company willfully and knowingly fails to comply
with any provision of this Warrant, which results in any material damages to the Holder, the Company shall pay to the Holder such
amounts as shall be sufficient to cover any costs and expenses including, but not limited to, reasonable attorneys’ fees,
including those of appellate proceedings, incurred by the Holder in collecting any amounts due pursuant hereto or in otherwise
enforcing any of its rights, powers or remedies hereunder.

 

h)              
Notices. Any notice, request or other document required or permitted to be given or delivered to the Holder by the
Company shall be delivered in accordance with the notice provisions of the Purchase Agreement.

 

i)               
Limitation of Liability. No provision hereof, in the absence of any affirmative action by the Holder to exercise
this Warrant to purchase Warrant Shares, and no enumeration herein of the rights or privileges of the Holder, shall give rise
to any liability of the Holder for the purchase price of any Common Stock or as a stockholder of the Company, whether such liability
is asserted by the Company or by creditors of the Company.

 

j)               
Remedies. The Holder, in addition to being entitled to exercise all rights granted by law, including recovery of
damages, will be entitled to specific performance of its rights under this Warrant. The Company agrees that monetary damages would
not be adequate compensation for any loss incurred by reason of a breach by it of the provisions of this Warrant and hereby agrees
to waive and not to assert the defense in any action for specific performance that a remedy at law would be adequate.

 

k)              
Successors and Assigns. Subject to applicable securities laws, this Warrant and the rights and obligations evidenced
hereby shall inure to the benefit of and be binding upon the successors and permitted assigns of the Company and the successors
and permitted assigns of Holder. The provisions of this Warrant are intended to be for the benefit of any Holder from time to
time of this Warrant and shall be enforceable by the Holder or holder of Warrant Shares.

 

l)               
Amendment. This Warrant may be modified or amended or the provisions hereof waived with the written consent of the
Company and the Holder.

 

m)            
Severability. Wherever possible, each provision of this Warrant shall be interpreted in such manner as to be effective
and valid under applicable law, but if any provision of this Warrant shall be prohibited by or invalid under applicable law, such
provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provisions
or the remaining provisions of this Warrant.

 

n)              
Headings. The headings used in this Warrant are for the convenience of reference only and shall not, for any purpose,
be deemed a part of this Warrant.

 

********************

 

(Signature Page Follows)

 

 

 

    	 	B-10	 

     

    

 

IN WITNESS WHEREOF,
the Company has caused this Warrant to be executed by its officer thereunto duly authorized as of the date first above indicated.

 

	 	aethlon
                           medical, inc.

	 	By:__________________________________________

        Name:

        Title:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	B-11	 

     

    

 

NOTICE OF EXERCISE

 

To:     aethlon
medical, inc.

 

(1)  
The undersigned hereby elects to purchase ________ Warrant Shares of the Company pursuant to the terms of the attached
Warrant (only if exercised in full), and tenders herewith payment of the exercise price in full, together with all applicable
transfer taxes, if any.

 

(2)  
Payment shall take the form of (check applicable box):

 

[_] in lawful
money of the United States; or

 

[_] if permitted
the cancellation of such number of Warrant Shares as is necessary, in accordance with the formula set forth in subsection 2(c),
to exercise this Warrant with respect to the maximum number of Warrant Shares purchasable pursuant to the cashless exercise procedure
set forth in subsection 2(c).

 

(3)  
Please issue said Warrant Shares in the name of the undersigned or in such other name as is specified below:

 

 

_______________________________

 

 

The Warrant Shares shall be delivered
to the following DWAC Account Number:

 

_______________________________

 

_______________________________

 

_______________________________

 

 

[SIGNATURE
OF HOLDER]

 

Name of Investing Entity: ________________________________________________________________________

Signature of Authorized Signatory of
Investing Entity: _________________________________________________

Name of Authorized Signatory: ___________________________________________________________________

Title of Authorized Signatory: ____________________________________________________________________

Date: ________________________________________________________________________________________

 

 

 

 

    	 	B-12	 

     

    

 

EXHIBIT B

 

ASSIGNMENT
FORM

 

(To assign the
foregoing Warrant, execute this form and supply required information. Do not use this form to purchase shares.)

 

FOR VALUE RECEIVED,
the foregoing Warrant and all rights evidenced thereby are hereby assigned to

 

 

	Name:	 
	 	(Please Print)
	 	 
	Address:	 
	 	(Please Print)
	 	 
	Phone Number:

        
	 

        

	 	 
	Email Address:	 
	 	 
	Dated: _______________ __, ______	 
	 	 
	Holder’s Signature:                                                          	 
	 	 
	Holder’s Address:                                                            	 

 

 

 

 

 

 

 

 

 

 

 

    	 	B-13Exhibit 10.1

 

EXECUTION VERSION

 

	AMENDED
    AND RESTATED LOAN AND SECURITY AGREEMENT
	 
	Dated
    as of September 27, 2017
	 
	Among
	 
	GWG
    DLP Funding IV, LLC,
	as
    Borrower
	 
	THE
    FINANCIAL INSTITUTIONS PARTY HERETO,
	as
    Lenders
	 
	And
	 
	CLMG
    CORP.,
	 
	as
    Administrative Agent

 

      

     

    

 

TABLE
OF CONTENTS

 

	 	 	Page
	ARTICLE I DEFINITIONS	1
	Section
    1.1	Defined
    Terms	1
	Section
    1.2	Other
    Definitional Provisions	1
	Section
    1.3	Other
    Terms	2
	Section
    1.4	Computation
    of Time Periods	2
	ARTICLE II THE LENDERS’ COMMITMENTS, BORROWING PROCEDURES, SECURITY INTEREST AND LENDER NOTES	2
	Section
    2.1	Lenders’
    Commitments	2
	Section
    2.2	Borrowing
    Procedures	3
	Section
    2.3	Funding	4
	Section
    2.4	Representation
    and Warranty	6
	Section
    2.5	Lender
    Notes	7
	Section
    2.6	Security
    Interest	7
	Section
    2.7	Sale
    of Collateral	9
	Section
    2.8	Permitted
    Purposes	9
	Section
    2.9	Closing
    Fee	10
	ARTICLE III INTEREST; INTEREST PERIODS; FEES, ETC.	10
	Section
    3.1	Interest
    Rates	10
	Section
    3.2	Interest
    Payment Dates	11
	Section
    3.3	Fees	11
	Section
    3.4	Computation
    of Interest and Fees	11
	ARTICLE IV PAYMENTS; PREPAYMENTS	11
	Section
    4.1	Repayments
    and Prepayments	11
	Section
    4.2	Yield
    Maintenance Fee	12
	Section
    4.3	Making
    of Payments	12
	Section
    4.4	Due
    Date Extension	12
	ARTICLE V ACCOUNTS; DISTRIBUTION OF COLLECTIONS	13
	Section
    5.1	Accounts	13
	Section
    5.2	Application
    of Available Amounts	15
	Section
    5.3	Permitted
    Investments	19
	ARTICLE VI INCREASED COSTS, ETC.	19
	Section
    6.1	Increased
    Costs	19

  

    	i

     

    

 

	Section
    6.2	Funding
    Losses	20
	Section
    6.3	Withholding
    Taxes	21
	ARTICLE VII CONDITIONS TO BORROWING	21
	Section
    7.1	Conditions
    Precedent to the Closing and the First Initial Advance	21
	Section
    7.2	Conditions
    Precedent to the Second Initial Advance	25
	Section
    7.3	Conditions
    Precedent to each Ongoing Maintenance Advance	28
	Section
    7.4	Conditions
    Precedent to each Additional Policy Advance	29
	Section
    7.5	Lender
    Valuation	30
	Section
    7.6	Conditions
    Precedent to First Advance Following the Amended and Restated Closing Date	30
	Section
    7.7	Release	35
	Section
    7.8	Additional
    Representations and Warranties (Second Initial Advance)	36
	Section
    7.9	Additional
    Representations and Warranties (First Advance Following the Amended and Restated Closing Date)	36
	ARTICLE VIII REPRESENTATIONS AND WARRANTIES	36
	Section
    8.1	Representations
    and Warranties of the Borrower	36
	ARTICLE IX COVENANTS	42
	Section
    9.1	Affirmative
    Covenants	42
	Section
    9.2	Negative
    Covenants	51
	ARTICLE X EVENTS OF DEFAULT; REMEDIES	54
	Section
    10.1	Events
    of Default	54
	Section
    10.2	Remedies	57
	ARTICLE XI INDEMNIFICATION	59
	Section
    11.1	General
    Indemnity	59
	ARTICLE XII ADMINISTRATIVE AGENT	61
	Section
    12.1	Appointment	61
	Section
    12.2	Delegation
    of Duties	61
	Section
    12.3	Exculpatory
    Provisions	61
	Section
    12.4	Reliance
    by the Administrative Agent	62
	Section
    12.5	Notice
    of Default	62
	Section
    12.6	Non-Reliance
    on the Administrative Agent and Other Lenders	62
	Section
    12.7	Indemnification	63
	Section
    12.8	The
    Administrative Agent in Its Individual Capacity	63
	Section
    12.9	Successor
    Administrative Agent	63

 

    	ii

     

    

 

	ARTICLE XIII MISCELLANEOUS	64
	Section
    13.1	Amendments,
    Etc.	64
	Section
    13.2	Notices,
    Etc.	64
	Section
    13.3	No
    Waiver; Remedies	64
	Section
    13.4	Binding
    Effect; Assignability; Term	65
	Section
    13.5	GOVERNING
    LAW; JURY TRIAL	65
	Section
    13.6	Execution
    in Counterparts	65
	Section
    13.7	Submission
    to Jurisdiction	65
	Section
    13.8	Costs
    and Expenses	66
	Section
    13.9	Severability
    of Provisions	66
	Section
    13.10	ENTIRE
    AGREEMENT	66
	Section
    13.11	Conflicts	66
	Section
    13.12	Confidentiality	66
	Section
    13.13	Limitation
    on Liability	67
	Section
    13.14	Relationship
    of Parties	67

  

	SCHEDULES	 
	 	 
	SCHEDULE
    2.1(a)	Lenders’
    Commitments
	SCHEDULE
    2.8	Payment
    Direction
	SCHEDULE
    8.1(s)	Account
    Information
	SCHEDULE
    8.1(x)	Retained
    Death Benefit Policies
	SCHEDULE
    13.2	Notice
    Addresses
	ELIGIBILITY
    CRITERIA EXCEPTION SCHEDULE	Eligibility
    Criteria Exceptions
	 	 
	EXHIBITS	 
	 	 
	EXHIBIT
    A	Form
    of Borrowing Request
	EXHIBIT
    B	Form
    of Lender Note
	EXHIBIT
    C	Form
    of Assignment and Assumption Agreement
	EXHIBIT
    D	Form
    of Calculation Date Report
	EXHIBIT
    E	Form
    of Annual Budget
	EXHIBIT
    F	Form
    of Borrowing Base Certificate
	 	 
	ANNEXES	 
	 	 
	ANNEX
    I	List
    of Defined Terms

  

    	iii

     

    

 

THIS
AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT (this “Loan Agreement”) is made and entered into as of September
27, 2017, among GWG DLP Funding IV, LLC, a Delaware limited liability company (the “Borrower”), the financial
institutions party hereto as Lenders (the “Lenders”), and CLMG Corp., a Texas corporation, as the administrative
agent for the Lenders (in such capacity, the “Administrative Agent”).

 

W
I T N E S S E T H:

 

WHEREAS,
the Borrower desires that the Lenders agree to extend financing to the Borrower on the terms and conditions set forth herein.

 

WHEREAS,
the Lenders are willing to provide such financing on the terms and conditions set forth in this Loan Agreement.

 

WHEREAS,
the Borrower, the Lenders and the Administrative Agent entered into that certain Loan and Security Agreement, dated as of September
14, 2016 (as amended, restated, supplemented or as otherwise modified, the “Original Loan Agreement”).

 

WHEREAS,
the parties hereto wish to amend and restate the Original Loan Agreement in its entirety.

 

NOW,
THEREFORE, in consideration of the premises and the mutual agreements herein contained, the parties hereto agree as follows:

 

ARTICLE
I

DEFINITIONS

 

Section
1.1 Defined Terms. Capitalized terms used and not otherwise defined in this Loan Agreement shall have the meanings given
to them in the List of Defined Terms attached hereto as Annex I.

 

Section
1.2 Other Definitional Provisions.

 

(a) Unless
otherwise specified therein, all terms defined in this Loan Agreement have the meanings as so defined herein when used in the
Lender Notes or any other Transaction Document, certificate, report or other document made or delivered pursuant hereto.

 

(b) Each
term defined in the singular form in Section 1.1 or elsewhere in this Loan Agreement shall mean the plural thereof when
the plural form of such term is used in this Loan Agreement, the Lender Notes or any other Transaction Document, and each term
defined in the plural form in Section 1.1 or elsewhere in this Loan Agreement shall mean the singular thereof when the
singular form of such term is used herein or therein.

 

(c) The
words “hereof,” “herein,” “hereunder” and similar terms when used in this Loan Agreement shall
refer to this Loan Agreement as a whole and not to any particular provision of this Loan Agreement, and article, section, subsection,
schedule and exhibit references herein are references to articles, sections, subsections, schedules and exhibits to this Loan
Agreement unless otherwise specified.

 

    	GWG DLP Funding IV, LLC Amended and Restated Loan and Security Agreement
Page 1 of 68

     

    

 

Section
1.3 Other Terms. All accounting terms not specifically defined herein shall be construed in accordance with GAAP. All
terms used in Article 9 of the UCC as in effect in the applicable jurisdiction, and not specifically defined herein, are used
herein as defined in such Article 9.

 

Section
1.4 Computation of Time Periods. Unless otherwise stated in this Loan Agreement, in the computation of a period of time
from a specified date to a later specified date, the word “from” means “from and including” and the words
“to” and “until” each means “to but excluding.”

 

ARTICLE
II

THE LENDERS’ COMMITMENTS, BORROWING PROCEDURES,

SECURITY INTEREST AND LENDER NOTES

 

Section
2.1 Lenders’ Commitments. (a) On the terms and subject to the conditions set forth in this Loan Agreement, the
Lenders made an Advance pursuant to the Original Loan Agreement to the Borrower in the amount up to Seventy One Million Two Hundred
Fifty Thousand Dollars ($71,250,000) (the “First Initial Advance”) and a subsequent Advance in the amount of
up to One Hundred One Million Fifty Thousand Dollars ($101,050,000) (the “Second Initial Advance” and together
with the First Initial Advance, the “Initial Advance”), in each case, for the purposes set forth in Section
2.8(a); provided, however that (i) subject to Section 2.1(d) of this Loan Agreement, the aggregate principal
amount of all Advances from time to time outstanding under this Loan Agreement (including any Protective Advances) shall not exceed
the Borrowing Base and (ii) no Lender shall be obligated to make any Advance to the Borrower to the extent that the aggregate
outstanding amount of such Advances made by such Lender hereunder exceeds such Lender’s Commitment as set forth in Schedule
2.1(a), as the same is amended (or deemed amended) from time to time by Assignment and Assumption Agreements executed as provided
in Section 13.4 of this Loan Agreement, nor shall any Lender be obligated to make any Advance required to be made by any
other Lender.

 

(b) So
long as the Borrower has requested the same pursuant to a Borrowing Request delivered to the Administrative Agent as set forth
below, and subject to the conditions set forth in this Loan Agreement, the Lenders shall make Ongoing Maintenance Advances to
the Borrower.

 

(c) So
long as the Borrower has requested the same pursuant to a Borrowing Request delivered to the Administrative Agent as set forth
below and subject to the conditions set forth in this Loan Agreement, the Lenders may make Additional Policy Advances to the Borrower
in amounts determined by the Lenders in their sole and absolute discretion; provided, however, that subject to Section
2.1(d) of this Loan Agreement, the aggregate principal amount of all Advances outstanding under this Loan Agreement (including
any Protective Advances) shall not exceed the Borrowing Base.

 

    	GWG DLP Funding IV, LLC Amended and Restated Loan and Security Agreement
Page 2 of 68

     

    

 

(d) Without
regard to the Borrowing Base and without any Borrowing Request, the Lenders shall be entitled to make Advances on behalf of the
Borrower as the Lenders determine in their sole and absolute discretion are necessary in order to make premium payments and to
pay other costs and expenses to ensure that one or more Pledged Policies selected by the Lenders in their sole and absolute discretion,
other than Policies that are sold as contemplated by Section 2.7 of this Loan Agreement, remain in full force and effect,
as determined by the Lenders in their sole and absolute discretion (such Advances, together with any Advances made from time to
time by the Lenders hereunder to pay any costs and expenses in defending the Collateral against any lawsuits or in any other proceedings
(including attorneys’ fees) and any Advances made from time to time by the Lenders hereunder after and during the continuance
of an Unmatured Event of Default or an Event of Default shall collectively be referred to herein as “Protective Advances”).
Notwithstanding anything herein to the contrary, with respect to any Protective Advance, such Protective Advance may be made by
the Lenders even if such Protective Advance, when taken together with the outstanding balance of all previous Advances, would
cause the aggregate outstanding balance of the Advances to exceed the Borrowing Base as of the date of such Protective Advance.
Furthermore, notwithstanding anything herein to the contrary, it is understood that with respect to the making of each of the
First Initial Advance and the Second Initial Advance, the aggregate principal amount of all Advances outstanding under this Loan
Agreement after the making of such Advance (including any Protective Advances) may have exceeded the Borrowing Base so long as
all other conditions precedent to the making of such Advance were satisfied.

 

Section
2.2 Borrowing Procedures.

 

(a) The
Borrower requested each of the First Initial Advance and the Second Initial Advance hereunder by giving notice to the Administrative
Agent of the proposed borrowing. Such notice (herein called a “Borrowing Request”) was in the form of Exhibit
A and with respect to the Borrowing Request related to the First Initial Advance, was permitted to have been prepared and delivered
by the Borrower up to five (5) Business Days before the date of execution of the Original Loan Agreement such that the related
Proposed First Initial Advance Notice and First Initial Advance Acceptance may have been executed concurrently with the Original
Loan Agreement. The Borrowing Request for each of the First Initial Advance and the Second Initial Advance (i) specified the date
and aggregate amount of the proposed First Initial Advance or Second Initial Advance, as applicable, (ii) identified the Subject
Policies proposed to be pledged hereunder in connection with such Advance and confirmed that the related Collateral Packages had
been uploaded to the FTP Site, (iii) contained a statement of the amount of payments anticipated to be made to the equity holders
of the Borrower with the proceeds of such Advance and the amount of such Advance that was deposited into the Reserve Account and
(iv) attached a Borrowing Base Certificate, signed by an officer of the Borrower.

 

(b) The
Borrower may request an Ongoing Maintenance Advance hereunder by delivering a fully executed and completed Borrowing Request to
the Administrative Agent. Each Borrowing Request for a proposed Ongoing Maintenance Advance shall (i) specify the date and aggregate
amount of the proposed Ongoing Maintenance Advance and (ii) attach a Borrowing Base Certificate, signed by an officer of the Borrower.
The Borrowing Request for the initial Ongoing Maintenance Advance was permitted to have been prepared and delivered by the Borrower
up to five (5) Business Days before the date of execution of the Original Loan Agreement such that the related Subsequent Advance
Acceptance may have been executed concurrently with the Original Loan Agreement.

 

    	GWG DLP Funding IV, LLC Amended and Restated Loan and Security Agreement
Page 3 of 68

     

    

 

(c) In
the event the Borrower desires an Additional Policy Advance, the Borrower shall notify the Administrative Agent of such desire
in writing, which written notice shall identify the Additional Policies proposed to be pledged in connection with the making of
such Additional Policy Advance and be accompanied by full and complete Collateral Packages for such Additional Policies. The Borrower
shall not deliver any Borrowing Request with respect to an Additional Policy Advance unless and until (i) it has wired the related
Expense Deposit to the Administrative Agent’s Account following confirmation of the amount thereof and (ii) it has received
written notice from the Administrative Agent confirming that the Administrative Agent and the Lenders have completed their due
diligence with respect to the Additional Policies proposed to be pledged hereunder in connection with the making of such Additional
Policy Advance, and indicating which Additional Policies, if any, will be accepted as Collateral hereunder and the estimated amounts
that the Lenders will be willing to fund under this Loan Agreement with respect to such Additional Policies. After the Borrower’s
wiring of the related Expense Deposit to the Administrative Agent’s Account and the Borrower’s receipt of such written
notice from the Administrative Agent, the Borrower may request an Additional Policy Advance hereunder with respect to such Additional
Policies by delivering a fully executed and completed Borrowing Request to the Administrative Agent. Each Borrowing Request related
to a proposed Additional Policy Advance shall (i) specify the date and aggregate amount of the proposed Additional Policy Advance,
(ii) identify the Additional Policies proposed to be pledged hereunder in connection with such Additional Policy Advance and confirm
that the related Collateral Packages have been uploaded to the FTP Site, (iii) contain a statement of the amount of payments anticipated
to be made to the equity holders of the Borrower with the proceeds of such Additional Policy Advance and (iv) attach a Borrowing
Base Certificate, signed by an officer of the Borrower. The Lenders shall be under no obligation to make any Additional Policy
Advance. The Lenders may make Additional Policy Advances in their sole and absolute discretion and may require additional documentation
(including opinions of counsel) and the satisfaction of conditions, including the payment of additional fees, all as determined
by the Lenders in their sole and absolute discretion.

 

Section
2.3 Funding. (a) No later than five (5) Business Days following the Administrative Agent’s receipt of the Borrowing
Request for the First Initial Advance, the Lenders, in their sole and absolute discretion and acting unanimously, determined whether
to approve the Subject Policies, and the Administrative Agent notified the Borrower of (i) the determination of the amount, if
any, the Lenders would fund (a “Proposed First Initial Advance”, and such notice of the Proposed First Initial
Advance, a “Proposed First Initial Advance Notice”), (ii) the amount of the Closing Fee and (iii) the amount
of the payments to the equity holders of the Borrower that the Lenders approved with respect to such Proposed First Initial Advance.
Such determination was made in the Lenders’ sole and absolute discretion. As the Lenders were willing to make such Proposed
First Initial Advance and the Borrower determined to accept such Proposed First Initial Advance, on or before the third (3rd)
Business Day after the delivery of the Proposed First Initial Advance Notice by the Administrative Agent, the Borrower notified
the Administrative Agent that the Borrower accepted the Proposed First Initial Advance (a “First Initial Advance Acceptance”).
On the first (1st) Business Day following the Administrative Agent’s receipt of the First Initial Advance Acceptance, and
subject to the complete satisfaction of the conditions precedent set forth in Article VII with respect to the First Initial
Advance and the limitations set forth in Section 2.1, the Lenders distributed funds in the amount set forth in the Proposed
First Initial Advance Notice in accordance with Schedule 2.8.

 

    	GWG DLP Funding IV, LLC Amended and Restated Loan and Security Agreement
Page 4 of 68

     

    

 

(b) No
later than five (5) Business Days following the Administrative Agent’s receipt of the Borrowing Request for the Second Initial
Advance, the Administrative Agent notified the Borrower of the resulting Second Initial Advance to be funded by the Lenders on
the related Advance Date (such notice, the “Second Initial Advance Acceptance”). Subject to the complete satisfaction
of the conditions precedent set forth in Article VII with respect to the Second Initial Advance and the limitations set
forth in Section 2.1, the Lenders distributed funds in the amount set forth in the Second Initial Advance Acceptance in
accordance with Schedule 2.8.

 

(c) No
later than five (5) Business Days following the Administrative Agent’s receipt of a Borrowing Request for an Ongoing Maintenance
Advance, the Administrative Agent shall notify the Borrower of the resulting total Ongoing Maintenance Advance to be funded by
the Lenders on the related Subsequent Advance Date (such notice, the related “Subsequent Advance Acceptance”)
subject to the immediately following sentence. Subject to the complete satisfaction of the conditions precedent set forth in Article
VII with respect to such Ongoing Maintenance Advance and the limitations set forth in Section 2.1, the Lenders shall
distribute funds in the amount set forth in such Subsequent Advance Acceptance to the Payment Account to be disbursed by the Securities
Intermediary in accordance with the terms of the Account Control Agreement.

 

(d) No
later than five (5) Business Days following the Administrative Agent’s receipt of a Borrowing Request for an Additional
Policy Advance, the Lenders shall, in their sole and absolute discretion and acting unanimously, determine whether to approve
the Additional Policies, and the Administrative Agent shall notify the Borrower of the determination of the amount, if any, the
Lenders will fund (a “Proposed Additional Policy Advance”, and such notice of the Proposed Additional Policy
Advance, a “Proposed Additional Policy Advance Notice”); provided that such determination shall be in the Lenders’
sole and absolute discretion. If the Lenders are willing to make such Proposed Additional Policy Advance and the Borrower determines
to accept such Proposed Additional Policy Advance, on or before the third (3rd) Business Day after the delivery of the Proposed
Additional Policy Advance Notice by the Administrative Agent, the Borrower shall notify the Administrative Agent that the Borrower
accepts the Proposed Additional Policy Advance (an “Additional Policy Advance Acceptance”) which notice shall
specify the agreed Additional Policy Advance Amount; for avoidance of doubt, if the Borrower does not deliver an Additional Policy
Advance Acceptance by 5:00 pm, New York time on the third (3rd) Business Day following the delivery of the Proposed Additional
Policy Advance Notice, then the Borrower shall be deemed to have rejected such Proposed Additional Policy Advance. On the third
(3rd) Business Day following the Administrative Agent’s receipt of the Additional Policy Advance Acceptance, and subject
to the complete satisfaction of the conditions precedent set forth in Article VII with respect to such Additional Policy
Advance and the limitations set forth in Section 2.1, the Lenders shall distribute funds in the amount set forth in the
Proposed Additional Policy Advance Notice to the Payment Account to be disbursed by the Securities Intermediary in accordance
with the terms of the Account Control Agreement.

 

    	GWG DLP Funding IV, LLC Amended and Restated Loan and Security Agreement
Page 5 of 68

     

    

 

(e) The
Borrower shall not deliver more than three (3) Borrowing Requests for an Ongoing Maintenance Advance in any calendar month and
shall not deliver more than one (1) Borrowing Request for an Additional Policy Advance in any calendar month. In addition,
the Borrower shall not deliver any Borrowing Request if the Borrower has previously delivered a Borrowing Request to the Administrative
Agent in respect of an Additional Policy Advance and the Administrative Agent has not yet delivered the related Proposed Additional
Policy Advance Notice, the Borrower has not yet delivered the related Additional Policy Advance Acceptance, the Borrower has not
yet rejected the related Proposed Additional Policy Advance or the Borrower has delivered the related Additional Policy Advance
Acceptance and the related Subsequent Advance Date has not yet occurred, in each case, in accordance with Section 2.3(d).
The Borrower shall not deliver a Borrowing Request for an Ongoing Maintenance Advance or an Additional Policy Advance unless such
delivery is made on or prior to the Commitment Termination Date.

 

Section
2.4 Representation and Warranty. Each Borrowing Request pursuant to Section 2.2 and each acceptance of an Advance
by the Borrower shall automatically constitute a representation and warranty by the Borrower to the Administrative Agent and each
Lender that on the date such Borrowing Request is delivered to the Administrative Agent and on the related Advance Date (a) the
representations and warranties contained in Article VIII will be true and correct in all respects as of such Borrowing Request
date and as of such Advance Date as though made on such dates, except to the extent any such representation or warranty relates
to a specific date, in which case, such representation or warranty will be true and correct in all respects as of such date as
though made on such date, (b) all of the conditions precedent to the making of an Advance contained in Article VII have
been satisfied or will have been satisfied as of such Advance Date and (c) no Event of Default or Unmatured Event of Default has
occurred and is continuing or will result from the making of such Advance.

 

    	GWG DLP Funding IV, LLC Amended and Restated Loan and Security Agreement
Page 6 of 68

     

    

 

Section
2.5 Lender Notes. With respect to each Lender, the Advances made by such Lender to the Borrower shall be evidenced by
a single promissory note executed by the Borrower (as the same may be amended, modified, extended or replaced from time to time,
a “Lender Note” and collectively, the “Lender Notes”) substantially in the form of Exhibit
B hereto, with appropriate insertions to reflect Advances (or portion thereof) actually funded by such Lender, the related
applicable interest rates thereof and related repayments and appropriate revisions to reflect assignments effected in accordance
with Section 13.4 of this Loan Agreement, payable to such Lender. For the avoidance of doubt, any Protective Advances made
by a Lender shall not be required to be evidenced in its Lender Note and the Administrative Agent’s records shall constitute
conclusive evidence that such Protective Advances have been made. The Borrower hereby irrevocably authorizes each Lender to make
(or cause to be made) appropriate notations on the grid attached to its Lender Note (or on any continuation of such grid) or at
such Lender’s option, in the records of such Lender, which notations, if made, shall evidence, inter alia, the date of,
the outstanding principal of, and the interest rates and Interest Periods applicable to the Advances made by such Lender and related
repayments and appropriate revisions to reflect assignments effected in accordance with Section 13.4 of this Loan Agreement.
Such notations and records (absent manifest error) shall be conclusive evidence of the subject matter thereof; provided, however,
that the failure to make any such notations or maintain any such records shall not limit or otherwise affect any Obligations of
the Borrower. The Borrower hereby agrees to promptly execute and deliver a new Lender Note upon any assignment to a new Lender
effected in accordance with Section 13.4 of this Loan Agreement, and each Lender making an assignment of all or any portion
of its Lender Note will either (i) if such assignment is an assignment of its entire Lender Note, deliver its Lender Note to the
Borrower for termination and cancellation effective upon Borrower’s execution and delivery of such new Lender Note to the
assignee thereof or (ii) if such assignment is an assignment in part of such Lender Note, deliver its Lender Note to the Borrower
for termination and cancellation effective upon Borrower’s execution and delivery of a new Lender Note to the assignee thereof
and a new Lender Note to such Lender.

 

Section
2.6 Security Interest.

 

(a) To
secure the timely repayment of the principal of, and interest on, the Advances, and all other Obligations of the Borrower to any
Secured Party, and the prompt performance when due of all covenants of the Borrower hereunder and under any other Transaction
Document, whether existing or arising as of the Closing Date or thereafter, due or to become due, direct or indirect, the Borrower
hereby pledges and grants to the Administrative Agent, for the benefit of the Secured Parties, a continuing, first priority security
interest in, and assignment of, all of the Borrower’s rights, titles and interests in, to and under all of the following,
whether owned, existing or arising as of the Closing Date or thereafter: all assets of the Borrower, including but not limited
to all right, title and interest of the Borrower in the Pledged Policies and proceeds thereof; all accounts receivable, notes
receivable, claims receivable and related proceeds including but not limited to, cash, loans, securities, and accounts; contract
rights; the contracts with and the rights to and against the Securities Intermediary, in its capacity as owner of record of the
Pledged Policies, and the Custodian; the Collection Account, the Reserve Account, the Payment Account, the Policy Account and
any other account of the Borrower (excluding only the Borrower Account); reserve accounts; escrow agreements and related books
and records; the rights under any purchase agreements relating to such Policies; all data, documents and instruments contained
in the Collateral Packages; and such other assets, tangible or intangible, real or personal of the Borrower. All of the rights
and assets described in the previous sentence are herein referred to collectively as “Collateral”; provided,
however, that this definition of “Collateral” does not limit any other collateral that may be pledged to secure
the Advances under any other Transaction Document.

 

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(b) The
Borrower shall file such financing statements, and execute and deliver such agreements, certificates and documents, and take such
other actions, as the Administrative Agent requests, in each case, in order to perfect, evidence or protect the security interest
granted pursuant to Section 2.6(a), including without limitation delivering a collateral assignment in respect of each
Pledged Policy subject to this Loan Agreement, naming the Administrative Agent, on behalf of the Lenders, as the collateral assignee,
filed with, and acknowledged to have been filed by, the applicable Issuing Insurance Company; provided, that the foregoing collateral
assignment shall not apply to the portion of the face amount that is retained by a third party under any Retained Death Benefit
Policy. On or prior to each Advance Date, the Borrower shall have delivered or caused to be delivered, or shall deliver or cause
to be delivered, completed but unsigned Change Forms for the Subject Policies to the Securities Intermediary. The Borrower shall
cause the Securities Intermediary to execute all such Change Forms in blank to be held by the Securities Intermediary. If an Issuing
Insurance Company updates its Change Forms, at the request of the Administrative Agent, the Borrower shall deliver or cause to
be delivered completed but unsigned updated Change Forms for the related Pledged Policies within five (5) Business Days of such
request. The Borrower shall cause the Securities Intermediary to execute such Change Forms in blank to be held by the Securities
Intermediary. The Borrower grants to the Administrative Agent, as its irrevocable attorney-in-fact and otherwise, the right, in
the Administrative Agent’s sole and absolute discretion, following the occurrence of an Event of Default, to complete or
direct the Securities Intermediary to complete and send any and all Change Forms previously delivered to it by or on behalf of
the Borrower or otherwise obtained by the Administrative Agent, to the applicable Issuing Insurance Companies. The Borrower hereby
acknowledges that the foregoing grant has been coupled with an interest and is irrevocable. The Borrower hereby authorizes the
Administrative Agent to file such financing statements and other documentation as the Administrative Agent determines are necessary
or advisable to perfect such security interest without the signature of the Borrower, provided however, notwithstanding
any other provision of any Transaction Document, the Administrative Agent shall have no duty or obligation to file such financing
statements, continuation statements or amendments thereto. The Borrower hereby appoints the Administrative Agent as the Borrower’s
irrevocable attorney-in-fact, with full power and authority to take any other action to sign or endorse the Borrower’s name
on any Collateral, and to enforce or collect any of the Collateral, upon the occurrence and during the continuance of an Event
of Default. The Borrower hereby acknowledges that the foregoing appointment of the Administrative Agent as the Borrower’s
irrevocable attorney-in-fact has been coupled with an interest and is irrevocable. The Borrower hereby ratifies and approves all
acts of such attorney-in-fact, and agrees that the Administrative Agent will not be liable for any act or omission with respect
thereto, except to the extent that such act or omission constitutes gross negligence, fraud or willful misconduct on the part
of the Administrative Agent.

 

(c) Upon
the receipt of the related Net Proceeds by the Lenders after the sale of a Pledged Policy pursuant to Section 2.7, the
security interest of the Administrative Agent in such Pledged Policy for the benefit of the Secured Parties shall be released.
Upon the indefeasible repayment in full of all of the Advances then outstanding and all other Obligations and termination of all
Commitments and this Loan Agreement, (i) the security interest of the Administrative Agent in the Collateral for the benefit of
the Secured Parties shall be released and (ii) the Administrative Agent shall file, promptly upon written request, such releases
or assignments, as applicable, and to take such other actions as the Borrower shall reasonably request in writing in order to
evidence any such release.

 

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Section
2.7 Sale of Collateral.

 

Except
as set forth in the second paragraph of this Section 2.7, the Borrower may not sell any Collateral without the prior written consent
of the Required Lenders (such consent shall not be unreasonably withheld or delayed); provided that such sale is made on arms-length
terms, at fair market value for cash (in U.S. dollars) and is not made to an Affiliate of the Borrower (a “Permissible
Sale”). The Borrower shall apply the Net Proceeds from a Permissible Sale to prepay outstanding Advances in accordance
with Section 4.1(b). The Borrower shall provide written notice of any such sale to the Administrative Agent at least seven (7)
Business Days prior to any such sale and shall certify to the Administrative Agent that such sale constitutes a Permissible Sale.
The Borrower agrees that it would not be unreasonable for the Required Lenders to withhold their consent to any such sale if immediately
prior to such sale there exists, or immediately after such sale there would exist, an Event of Default or an Unmatured Event of
Default.

 

Notwithstanding
the immediately preceding paragraph, if the Collateral consists of one-hundred (100) or fewer Pledged Policies insuring the lives
of one-hundred (100) or fewer distinct Insureds, then, without the prior written consent of the Required Lenders, the Borrower
may sell one or more of the Pledged Policies to any Person, including, without limitation, an Affiliate of the Borrower, so long
as the Net Proceeds from any such sale are equal to or greater than the outstanding principal balance of all Advances plus accrued
but unpaid interest thereon, plus the Yield Maintenance Fee applicable thereto, plus all other Obligations owing by the Borrower,
and the Commitments and this Loan Agreement will be terminated after the application of such Net Proceeds. The Borrower shall
apply the Net Proceeds from any such sale in accordance with Section 4.1(b). The Borrower shall provide written notice of any
such sale to the Administrative Agent at least seven (7) Business Days prior to any such sale.

 

Section
2.8 Permitted Purposes. (a) The Borrower has not used and it shall not use the proceeds of any Advance made hereunder
or under the Original Loan Agreement except for the following purposes:

 

(i) with
respect to the First Initial Advance and the Second Initial Advance, (a) to pay the purchase price for the Subject Policies to
the Parent pursuant to the Purchase Agreement, a portion of which funds, with respect to the First Initial Advance, were immediately
used to repay indebtedness outstanding under that certain Second Amended and Restated Credit and Security Agreement dated May
11, 2015, among Parent, GWG DLP Funding II, LLC, GWG Holdings, Inc., Autobahn Funding Company LLC, DZ Bank AG Deutsche Zentral-Genossenschaftsbank;
(b) to pay working capital needs and expenses of the Borrower; (c) to pay any transaction costs related to such Advance
and, with respect to the First Initial Advance, to pay closing fees payable to the Lenders and the Administrative Agent; (d) with
respect to the Second Initial Advance, to make payments to the sole equity holder of the Borrower (which such sole equity holder
may distribute to its equity holders) in an amount that did not exceed $84,800,000, (e) with respect to the Second Initial Advance,
to fund the Reserve Account, (f) with respect to the Second Initial Advance, to pay Ongoing Maintenance Costs and (g) to
make any other payments or distributions, as approved in writing by the Required Lenders in their sole and absolute discretion;
and

 

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(ii) with
respect to an Ongoing Maintenance Advance, (a) to pay Ongoing Maintenance Costs and/or (b) to make any other payments or distributions,
as approved in writing by the Required Lenders in their sole and absolute discretion; and

 

(iii) with
respect to an Additional Policy Advance, to make any payments or distributions, as approved in writing by the Required Lenders
in their sole and absolute discretion.

 

(b) For
the avoidance of doubt, all proceeds of Advances were, prior to the date hereof, deposited, and after the date hereof, shall be
deposited by the Lenders (i) in accordance with Schedule 2.8 in respect of the Initial Advance, as such Schedule 2.8 may be amended
from time to time, (ii) for any Additional Policy Advance, as directed by the Lenders in their sole and absolute discretion and
(iii) for any Ongoing Maintenance Advance, into the Payment Account. The Borrower has caused and shall cause any amounts on deposit
in the Payment Account to be distributed by the Securities Intermediary in accordance with the terms of the Account Control Agreement,
which amounts shall be used for the purposes set forth in Section 2.8(a) and as specified in the related Borrowing Request.

 

Section
2.9 Closing Fee. With respect to the First Initial Advance made hereunder, the Borrower paid to the Administrative Agent
the Closing Fee. The Closing Fee was fully earned and due and payable on the initial Advance Date and may have been paid from
the proceeds of the First Initial Advance. With respect to the first Advance on or following the Amended and Restated Closing
Date, the Borrower shall pay to the Administrative Agent the Additional Closing Fee. The Additional Closing Fee shall be fully
earned and due and payable on the related Advance Date. With respect to any other Additional Policy Advances, if any, the Borrower
shall pay such fees and at such times as the Lenders and the Borrower shall agree. In the event that the Borrower requests an
Advance hereunder such that after giving effect to such Advance, the principal amount of all Advances outstanding under this Loan
Agreement would exceed the Borrowing Base, which request may be granted or withheld in the Lenders' sole and absolute discretion,
and such Advance is made on the related Advance Date, the Borrower shall pay to the Administrative Agent a fee in an amount equal
to the product of (i) such excess and (ii) three percent (3.00%). Each such fee shall be fully earned and due and payable on the
related Advance Date and may be paid from the proceeds of such Advance.

 

ARTICLE
III

INTEREST; INTEREST PERIODS; FEES, ETC.

 

Section
3.1 Interest Rates. The Borrower hereby promises to pay interest on the unpaid principal amount of each Advance for
the period commencing on the date such Advance is made until such Advance is paid in full, at a rate per annum equal to
the sum of (i) LIBOR or, if LIBOR is unavailable, the Base Rate plus (ii) the Applicable Margin; provided however that
if an Event of Default has occurred and is continuing, each Advance shall bear interest at a rate per annum equal to the
Default Rate. The initial date of determination used to calculate LIBOR was the Closing Date and thereafter was and shall be each
Rate Calculation Date, which interest shall be in effect for the period of time commencing on such Rate Calculation Date (or was
the Closing Date with respect to the initial Interest Period) until (but not including) the immediately succeeding Rate Calculation
Date. No provision of this Loan Agreement shall require the payment or permit the collection of interest in excess of the maximum
permitted by Applicable Law.

 

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Section
3.2 Interest Payment Dates. Interest accrued on each Advance shall be due and payable, without duplication:

 

(a) on
each Interest Payment Date;

 

(b) on
the date of any prepayment, in whole or in part, of principal of outstanding Advances;

 

(c) on
Advances accelerated pursuant to Section 10.2, immediately upon such acceleration; and

 

(d) on
the Maturity Date.

 

Section
3.3 Fees. The Borrower shall pay all Fees to the Persons entitled thereto.

 

Section
3.4 Computation of Interest and Fees. All interest and fees shall be computed on the basis of the actual number of days
(including the first day but excluding the last day) occurring during the period for which such interest or fee is payable over
a year comprised of 360 days.

 

ARTICLE
IV

PAYMENTS; PREPAYMENTS

 

Section
4.1 Repayments and Prepayments. The Borrower shall repay in full the unpaid principal amount of each Advance on the Maturity
Date. Prior thereto, the Borrower:

 

(a) may
voluntarily prepay all or any portion of the aggregate outstanding Advances, either in whole or in part, together with the related
Yield Maintenance Fee, from funds available for distribution to the Borrower pursuant to clause “Eleventh”
of Section 5.2(b) and/or from funds available to the Borrower from any capital contribution or other source of funding
obtained by the Borrower that is not expressly prohibited by this Loan Agreement; provided, however, that no such
prepayment shall constitute the payment of Required Amortization;

 

(b) shall
apply the Net Proceeds of any sales made pursuant to Section 2.7 to repay Advances (in the inverse order of maturity) by
depositing such Net Proceeds into the Administrative Agent’s Account; provided, however, that no such prepayment
shall constitute the payment of Required Amortization; provided, further, that such Net Proceeds shall first be
applied to the payment of any applicable Yield Maintenance Fee, then interest accrued on such Advances, and then the repayment
of Advances (in the inverse order of maturity);

 

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(c) shall,
immediately upon any acceleration of the Maturity Date pursuant to Section 10.2, repay all such Advances and all other
Obligations (including, without limitation, the Yield Maintenance Fee) within one (1) Business Day of the Administrative Agent’s
delivery of notice of such acceleration to the Borrower;

 

(d) shall,
within thirty 30 days after (i) the number of Pledged Policies is less than or equal to fifty (50), or (ii) the cumulative face
amount of the Pledged Policies is less than or equal to $125,000,000, repay all the Advances and all other Obligations (including,
without limitation, the Yield Maintenance Fee); and

 

(e) shall,
on each Distribution Date, repay the Advances from Available Amounts in accordance with the Priority of Payments.

 

Section
4.2 Yield Maintenance Fee. If the Borrower prepays or repays an Advance in accordance with Section 4.1 or a Reduction
Action occurs in respect of an Advance, whether before or after (i) the occurrence of an Event of Default or (ii) the occurrence
of any Event of Bankruptcy, and notwithstanding any acceleration (for any reason) of the Obligations, the Borrower shall pay the
Yield Maintenance Fee with respect to such prepayment, repayment or Reduction Action, as applicable, and such Yield Maintenance
Fee shall be due and payable. The Yield Maintenance Fee shall also be payable with respect to any prepayments or distributions
made by the Borrower pursuant to Section 5.2(c). For avoidance of doubt, except as set forth in Section 4.1(a), no Yield
Maintenance Fee shall be payable with respect to any payments or distributions made by or on behalf of the Borrower pursuant to
Section 5.2(b). Notwithstanding anything herein to the contrary, the Yield Maintenance Fee shall be payable notwithstanding
acceleration of the Obligations or the Maturity Date for any reason, including, without limitation, acceleration in accordance
with Section 10.2 (including, without limitation, as a result of the occurrence of an Event of Bankruptcy).

 

Section
4.3 Making of Payments. All payments of principal of, or interest on, the Advances, and all amounts to be deposited
by the Borrower, shall be made by the Borrower no later than 1:00 p.m. (New York City time), on the day when due in Dollars in
same day funds to the account designated in writing by the Administrative Agent to the Borrower (the “Administrative
Agent’s Account”) or, with respect to other amounts payable to any Lender or the Administrative Agent, directly
thereto in accordance with the directions provided by the Lender or the Administrative Agent, as applicable. Funds received by
any Person after 1:00 p.m. (New York City time), on the date when due will be deemed to have been received by such Person on the
next following Business Day.

 

Section
4.4 Due Date Extension. If any payment of principal or interest with respect to any Advance falls due on a day which
is not a Business Day, then such due date shall be extended to the next following Business Day, and additional interest shall
accrue at the applicable interest rate and be payable for the period of such extension.

  

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ARTICLE
V

ACCOUNTS; DISTRIBUTION OF COLLECTIONS

 

Section
5.1 Accounts.

 

(a) Collection
Account. The Borrower has established, continuously maintained and shall continue to maintain, in the name of the Borrower,
an Eligible Account bearing a designation clearly indicating that the funds deposited therein are held for the benefit of the
Administrative Agent, on behalf of the Secured Parties (the “Collection Account”), that at all times shall
be subject to the Account Control Agreement.

 

(b) Reserve
Account. The Borrower has established, continuously maintained and shall continue to maintain, in the name of the Borrower,
an Eligible Account bearing a designation clearly indicating that the funds on deposit therein are held for the benefit of the
Administrative Agent, on behalf of the Secured Parties (the “Reserve Account”), that at all times shall be
subject to the Account Control Agreement. Subject to the terms of the Account Control Agreement, in the event the Calculation
Date Report and the related Payment Instructions with respect to any Calculation Date occurring prior to the Amended and Restated
Closing Date indicated that the then Available Amount with respect to the related Distribution Date was insufficient to make the
payments in clauses “First”, “Third”, “Fourth”, “Fifth”,
“Sixth” and “Seventh” of the Priority of Payments (such deficiency being “Deficiency
Claim Amount”), then on the Business Day immediately prior to such Distribution Date the Administrative Agent instructed
the Securities Intermediary to withdraw from the Reserve Account an amount equal to the lesser of (i) the Deficiency Claim Amount
for such Distribution Date and (ii) the amount on deposit in the Reserve Account, and deposit such amount in the Collection Account.
On or prior to the Closing Date, the Borrower deposited, or caused to be deposited, into the Reserve Account an amount equal to
Eleven Million Two Hundred Fifty Thousand Dollars ($11,250,000). On the Advance Date related to the Second Initial Advance, the
Borrower deposited an amount equal to Sixteen Million Two Hundred Fifty Thousand Dollars ($16,250,000) into the Reserve Account
from the proceeds of such Advance. On the Amended and Restated Closing Date, so long as the related Additional Policy Advance
is made on such date, all amounts on deposit in the Reserve Account on such date shall be transferred by the Securities Intermediary
into the Borrower Account. Within two (2) Business Days after the occurrence of an Event of Default, the Borrower shall deposit,
or cause to be deposited, into the Reserve Account an amount necessary to pay projected Ongoing Maintenance Costs and Debt Service
for the following twelve (12) month period, and the Borrower shall not be entitled to withdraw any such amount unless and until
such Event of Default has been cured (as determined by the Required Lenders in their sole and absolute discretion) or the Administrative
Agent (with the written consent of the Lenders acting in their sole and absolute discretion) has waived such Event of Default
in writing.

 

(c) [Reserved.]

 

(d) Borrower
Account. The Borrower has established, continuously maintained and shall continue to maintain a segregated Eligible Account
with an Eligible Institution in the name of the Borrower (the “Borrower Account”). The Borrower shall be entitled
to cause the withdrawal of amounts on deposit in the Borrower Account for any purpose, including, without limitation, the payment
of Premiums or Expenses.

 

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(e) Payment
Account. The Borrower has established, continuously maintained and shall continue to maintain, in the name of the Borrower,
an Eligible Account bearing a designation clearly indicating that the funds deposited therein are held for the benefit of the
Administrative Agent, on behalf of the Secured Parties (the “Payment Account”), that at all times shall be
subject to the Account Control Agreement. All proceeds of Advances shall be deposited by the Lenders into the Payment Account
or another account as set forth on Schedule 2.8. The Borrower has caused and shall cause any amounts on deposit in the Payment
Account to be distributed by the Securities Intermediary in accordance with the terms of the Account Control Agreement, which
amounts were used and shall be used for the purposes set forth in Section 2.8 and as specified in the related Borrowing
Request. On or prior to the Closing Date, the Borrower deposited an amount equal to $25,018,088.26 into the Payment Account and
an amount equal to $11,250,000 of such deposit was transferred into the Reserve Account prior to the Closing Date (it being understood
that the remainder of such deposit was distributed to the Parent on the Closing Date and immediately used to repay indebtedness
outstanding under that certain Second Amended and Restated Credit and Security Agreement dated May 11, 2015, among Parent, GWG
DLP Funding II, LLC, GWG Holdings, Inc., Autobahn Funding Company LLC, DZ Bank AG Deutsche Zentral-Genossenschaftsbank).

 

(f) Administrative
Agent Action. The Administrative Agent may, at any time after an Event of Default has occurred and is continuing, give written
notice to the Securities Intermediary and to the Borrower, of the occurrence of such event and specifying whether the Administrative
Agent is exercising its rights and remedies in relation thereto in accordance with this Loan Agreement and the Account Control
Agreement, and will do any or all of the following: (i) exercise exclusive dominion and control over the funds deposited in the
Accounts, (ii) have amounts that are sent to the Accounts redirected pursuant to its instructions, and (iii) take any or all other
actions the Administrative Agent is permitted to take under this Loan Agreement and the Account Control Agreement for the benefit
of the Secured Parties. If at any time, any Account shall cease to be an Eligible Account, the Borrower shall as promptly as reasonably
practicable (but in no event more than twenty (20) Business Days) establish a replacement Eligible Account.

 

(g) Collections
Held In Trust. If at any time the Borrower, the Servicer, the Securities Intermediary or any of their Affiliates, as the case
may be, shall receive any Collections or other proceeds of any Collateral other than through payment into the Collection Account,
the Borrower shall or shall cause the Servicer, the Securities Intermediary or such Affiliate to, promptly (but in any event within
two (2) Business Days of receipt thereof) remit or cause to be remitted all such Collections or other proceeds to the Collection
Account, unless such Collections or other proceeds constitute sale proceeds, in which case, such Collections or other proceeds
shall be remitted to the Administrative Agent’s Account pursuant to Section 4.1(b). All Collections received by the
Borrower, the Servicer, the Securities Intermediary or any of their Affiliates, shall be (and the Borrower shall cause them to
be) held by such Person in trust for the exclusive benefit of the Administrative Agent (on behalf of the Secured Parties). The
outstanding principal amount of the Advances shall not be deemed repaid by any amount of the Collections held in trust by any
Person, unless such amount is finally paid to the Administrative Agent in accordance with Section 5.2.

 

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Section
5.2 Application of Available Amounts.

 

(a) If
no Event of Default or Unmatured Event of Default has occurred and is continuing, the Administrative Agent and the Borrower acting
jointly, and otherwise, the Administrative Agent acting alone, shall instruct the Securities Intermediary to distribute Collections
deposited in the Collection Account, and all other amounts deposited in the Collection Account, in accordance with this Section
5.2. On or prior to each Calculation Date, the Borrower shall prepare and deliver or cause to be prepared and delivered to
the Administrative Agent a quarterly calculation report substantially in the form attached hereto as Exhibit D (the “Calculation
Date Report”) with respect to the related Distribution Date, and the Borrower shall simultaneously deliver or cause
to be delivered to the Securities Intermediary the payment instructions necessary to make the payments indicated in such Calculation
Date Report (the “Payment Instructions”). In delivering the instructions required under Section 5.2(b)
and Section 5.2(c), the Administrative Agent shall have the right to rely absolutely upon the information in the Calculation
Date Reports, unless the Administrative Agent or the Required Lenders provide alternative information to the Borrower by notice
in writing (such notice an “Alternative Information Notice”) not more than five (5) Business Days after receipt
of the related Calculation Date Report by the Administrative Agent, in which case, provided that the Borrower shall not have objected
to such Alternative Information Notice in writing within one (1) Business Day of its receipt thereof, the Administrative Agent
shall have the absolute right to act in accordance with such Alternative Information Notice. In the event that the Borrower shall
have objected to such Alternative Information Notice, then the Borrower and the Administrative Agent shall negotiate in good faith
to resolve such objection within five (5) days following the date on which the Borrower objects, the amount subject to such objection
shall be retained in the Collection Account during the pendency of such negotiations and the amount not subject to such objection
shall be distributed in accordance with Section 5.2(b) or Section 5.2(c), as applicable, and in accordance with
such Alternative Information Notice. The amount subject to such objection shall be distributed in accordance with Section 5.2(b)
or Section 5.2(c), as applicable, (i) if such objection is resolved, on the Business Day following the date on which
such objection is resolved, in which case such amounts shall be distributed in accordance with such resolution or (ii) if such
objection is not resolved, on the first Business Day following the day that is five (5) days following the date on which the Borrower
objects to such Alternative Information Notice, in which case such amounts shall be distributed in accordance with the relevant
Alternative Information Notice. Notwithstanding the foregoing, if the Borrower fails to deliver the related Calculation Date Report
or the related Payment Instructions on or prior to the related Calculation Date, then the Administrative Agent acting alone, based
on information in the Administrative Agent’s possession, shall be entitled to prepare such Calculation Date Report and Payment
Instructions and thereby instruct the Securities Intermediary to distribute Collections deposited in the Collection Account, and
all other amounts deposited in the Collection Account, to be distributed in accordance with this Section 5.2, and the Administrative
Agent shall have no liability whatsoever in respect of such instructions (the procedures set forth in this sentence if the Borrower
fails to deliver the related Calculation Date Report or the related Payment Instructions on or prior to the related Calculation
Date, the “Borrower Failure Procedures”).

  

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(b) If
no Event of Default or Unmatured Event of Default has occurred and is continuing, on each Distribution Date, the Borrower and
the Administrative Agent shall jointly instruct the Securities Intermediary to distribute from the Available Amount then on deposit
in the Collection Account, in accordance with the Payment Instructions related to the Calculation Date Report for such Distribution
Date, subject to the delivery of an Alternative Information Notice, and the procedures set forth in Section 5.2(a) for
the resolution of any objections of the Borrower in respect of such Alternative Information Notice, or if the Borrower has failed
to deliver the related Calculation Date Report or the related Payment Instructions on or prior to the related Calculation Date,
the Administrative Agent acting alone shall instruct the Securities Intermediary to distribute from the Available Amount then
on deposit in the Collection Account, in accordance with the Borrower Failure Procedures, and in either case, the following amounts
in the following order of priority unless otherwise agreed in writing by the parties hereto (and, with respect to any payment
to the Securities Intermediary or the Custodian, as consented to by such Person in writing):

 

		First,	to
                                         the Custodian and the Securities Intermediary, as applicable, the fees, and expenses
                                         due and payable thereto in accordance with the Account Control Agreement, including,
                                         but not limited to, any Claims of any Indemnified Bank Person due and payable in accordance
                                         with the Account Control Agreement; provided that the aggregate amount of Claims payable
                                         under this clause “First” shall not exceed $25,000 on any Distribution
                                         Date; provided further, that any legal fees incurred by the Custodian and the Securities
                                         Intermediary on or prior to the date hereof in connection with the negotiation and drafting
                                         of this Agreement and the Account Control Agreement shall not count against such maximum
                                         amounts payable on any Distribution Date;

 

		Second,	to
                                         the applicable Issuing Insurance Company, the payment of scheduled Premiums which are
                                         due and payable prior to the following Distribution Date as set forth in the related
                                         Premium Payment Schedule;

 

		Third,	to
                                         the Servicer, to the extent due and payable, the Servicing Fee;

 

		Fourth,	to
                                         the Borrower or the Parent, for the payment or reimbursement of any reasonable administrative
                                         expenses and documented third-party expenses related to (i) the audit of the financial
                                         statements of the Borrower and the Parent pursuant to Section 9.1(d)(i) in an
                                         amount not to exceed $30,000 during the prior twelve (12) month period, (ii) Collateral
                                         Audits pursuant to Section 9.1(i) in an amount not to exceed $2,200 for each Pledged
                                         Policy during the prior twelve (12) month period (unless such Pledged Policy is a Small
                                         Face Policy and payments of Premiums in respect of such Pledged Policy are made on an
                                         annual basis, in which case, $500 per such Pledged Policy during the prior twelve (12)
                                         month period), and (iii) any other expenses of the Borrower and the Parent in an amount
                                         not to exceed $5,000 per month;

 

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		Fifth,	if
                                         the Distribution Date is the last Distribution Date of the calendar year, to the Administrative
                                         Agent for the account of the Lenders, the Loan Administration Fee for the following calendar
                                         year;

 

		Sixth,	to
                                         the Administrative Agent for the account of the Lenders, any accrued interest on the
                                         Advances then due and payable on such date;

 

		Seventh,	to
                                         the Administrative Agent for the account of the Lenders, the Required Amortization;

 

		Eighth,	Reserved;

 

		Ninth,	(a)
                                         on any Distribution Date occurring prior to September 27, 2027, (i) the Collateral consists
                                         of more than seventy-five (75) Pledged Policies insuring the lives of more than seventy-five
                                         (75) distinct Insureds, and (A) the LTV is equal to or greater than sixty percent (60.0%),
                                         all remaining Available Amounts to the Administrative Agent, for the account of the Lenders,
                                         on a pro rata basis, to repay the outstanding principal amount of all Advances, (B) the
                                         LTV is less than sixty percent (60.0%) but greater than or equal to thirty percent (30.0%),
                                         sixty-five percent (65.0%) of the remaining Available Amounts to the Administrative Agent,
                                         for the account of the Lenders, on a pro rata basis to repay the outstanding principal
                                         amount of all Advances, or (C) the LTV is less than thirty (30.0%), thirty-five percent
                                         (35.0%) of the remaining Available Amounts to the Administrative Agent, for the account
                                         of the Lenders on a pro rata basis to repay the outstanding principal amount of all Advances,
                                         or (ii) the Collateral consists of seventy-five (75) or fewer Pledged Policies insuring
                                         the lives of seventy-five (75) or fewer distinct Insureds, one-hundred percent (100.0%)
                                         of the remaining Available Amounts to the Administrative Agent, for the account of the
                                         Lenders, on a pro rata basis to repay the outstanding principal amount of all Advances
                                         and (b) on any Distribution Date occurring on or after September 27, 2027, one-hundred
                                         percent (100.0%) of the remaining Available Amounts to the Administrative Agent, for
                                         the account of the Lenders, on a pro rata basis to repay the outstanding principal amount
                                         of all Advances (any such amount under this clause “Ninth”, the “Cash
                                         Sweep”);

 

		Tenth,	to
                                         the Custodian and the Securities Intermediary, as applicable, any fees and expenses due
                                         and payable thereto that remain unpaid (including such fees and expenses not paid pursuant
                                         to clause “First” of this Section 5.2(b)); and

 

		Eleventh,	to
                                         the Borrower, any remaining Available Amounts by deposit to the Borrower Account.

 

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(c) If
an Event of Default or an Unmatured Event of Default has occurred and is continuing, the Administrative Agent acting alone shall
instruct the Securities Intermediary to distribute from the Available Amount then on deposit in the Collection Account, in accordance
with the Payment Instructions related to the Calculation Date Report for such Distribution Date, subject to the delivery of an
Alternative Information Notice, and the procedures set forth in Section 5.2(a) for the resolution of any objections of
the Borrower in respect of such Alternative Information Notice, or if the Borrower has failed to deliver the related Calculation
Date Report or the related Payment Instructions on or prior to the related Calculation Date, the Administrative Agent acting alone
shall instruct the Securities Intermediary to distribute from the Available Amount then on deposit in the Collection Account,
in accordance with the Borrower Failure Procedures, and in either case, the following amounts in the following order of priority
unless otherwise agreed in writing by the parties hereto (and, with respect to any payments to the Securities Intermediary or
the Custodian as consented to by such Person in writing):

 

		First,	to
                                         the Custodian and the Securities Intermediary, as applicable, the fees, and expenses
                                         due and payable thereto in accordance with the Account Control Agreement, including,
                                         but not limited to, any Claims of any Indemnified Bank Person due and payable in accordance
                                         with the Account Control Agreement;

 

		Second,	to
                                         the applicable Issuing Insurance Company, the payment of scheduled Premiums which are
                                         due and payable prior to the following Distribution Date as set forth in the related
                                         Premium Payment Schedule;

 

		Third,	to
                                         the Servicer, to the extent due and payable, the Servicing Fee;

 

		Fourth,	if
                                         the Distribution Date is the last Distribution Date of the calendar year, to the Administrative
                                         Agent for the account of the Lenders, the Loan Administration Fee for the following calendar
                                         year;

 

		Fifth,	to
                                         the Administrative Agent for the account of the Lenders, any accrued interest on the
                                         Advances then due and payable on such date;

 

		Sixth,	to
                                         the Administrative Agent for the account of the Lenders, all outstanding principal and
                                         any other amounts with respect to the Advances and all other Obligations;

 

		Seventh,	to
                                         the Custodian and the Securities Intermediary, as applicable, any fees and expenses due
                                         and payable thereto that remain unpaid (including such fees and expenses not paid pursuant
                                         to clause “First” of this Section 5.2(c)); and

 

		Eighth,	to
                                         the Borrower, any remaining Available Amount by deposit to the Borrower Account.

 

(d) Notwithstanding
anything herein to the contrary, prior to the applicable Calculation Date, the Administrative Agent, acting at the direction of
the Required Lenders in their sole and absolute discretion, may provide written notice to the Borrower that the percentages used
to calculate the amount of the Cash Sweep in sub-clauses (a)(i)(A), (a)(i)(B) and (a)(i)(C) of Clause “Ninth”
of Section 5.2(b) shall be lowered to the percentages set forth in such notice with respect to the related Distribution
Date.

 

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(e) For
the avoidance of doubt, no payment that is made pursuant to Clause “Ninth” of Section 5.2(b) shall constitute
the payment of Required Amortization.

 

Section
5.3 Permitted Investments.

 

(a) Funds
at any time held in the Collection Account and the Reserve Account may be invested and reinvested at the direction of the Borrower
(unless an Event of Default shall have occurred and be continuing, in which case at the written direction of the Administrative
Agent) in one or more Permitted Investments in a manner provided in Section 5.3(c). In the absence of any such direction,
funds held in the Collection Account or the Reserve Account shall not be invested. Funds at any time held in the Payment Account
shall not be invested.

 

(b) Each
investment made pursuant to this Section 5.3 on any date with respect to the Collection Account or the Reserve Account
shall mature or be available not later than the Business Day preceding the Distribution Date after the day on which such investment
is made, except that any investment made on the day preceding a Distribution Date shall mature on such Distribution Date.

 

(c) Any
investment of funds in the Reserve Account or the Collection Account shall be made in Permitted Investments in which the Administrative
Agent has (or will have upon acquisition) a first priority, perfected Lien.

 

(d) The
Administrative Agent shall not be liable in any manner by reason of any insufficiency in the Collection Account or the Reserve
Account resulting from any loss on any Permitted Investment included therein.

 

ARTICLE
VI

INCREASED COSTS, ETC.

 

Section
6.1 Increased Costs. If any change in Regulation D of the Board of Governors of the Federal Reserve System, or any Regulatory
Change, in each case occurring after the Closing Date:

 

(A) shall
subject any Affected Party to any Tax, duty or other charge with respect to any Advance made or funded by it, or shall change
the basis of the imposition of any Tax on payments to such Affected Party of the principal of or interest on any Advance owed
to or funded by it or any other amounts due under this Loan Agreement in respect of any Advance made or funded by it (except for
changes in the rate of Tax on the overall net income of such Affected Party imposed by any applicable jurisdiction in which such
Affected Party has an office);

 

(B) shall
impose, modify or deem applicable any reserve (including, without limitation, any reserve imposed by the Board of Governors of
the Federal Reserve System, but excluding any reserve included in the determination of interest rates pursuant to Section 3.1),
special deposit or similar requirement against assets of, deposits with or for the account of, or credit extended by, any Affected
Party;

 

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(C) shall
change the amount of capital maintained or required or requested or directed to be maintained by any Affected Party; or

 

(D) shall
impose on any Affected Party any other condition affecting any Advance made or funded by any Affected Party;

 

and
the result of any of the foregoing is or would be to (i) increase the cost to or impose a cost on an Affected Party funding or
making or maintaining any Advance (including any commitment of such Affected Party with respect to any of the foregoing), (ii)
to reduce the amount of any sum received or receivable by an Affected Party under this Loan Agreement or the Lender Notes, or
(iii) in the good faith determination of such Affected Party, to reduce the rate of return on the capital of an Affected Party
as a consequence of its obligations hereunder or arising in connection herewith to a level below that which such Affected Party
could otherwise have achieved, and, in each case, unless any of the foregoing was imposed upon such Affected Party by a regulatory
authority, such Affected Party determines that any of the foregoing also has a similar effect on any other credit facilities or
other financing arrangements that are secured by life insurance policies (or interests therein) to which such Affected Party is
a party to as a lender, administrative agent or other similar capacity, then after demand by such Affected Party to the Borrower
(which demand shall be accompanied by a written statement setting forth the basis of such demand), the Borrower shall pay such
Affected Party such additional amount or amounts as will (in the reasonable determination of such Affected Party) compensate such
Affected Party for such increased cost or such reduction. Such written statement (which shall include calculations in reasonable
detail) shall, in the absence of manifest error, be rebuttable presumptive evidence of the subject matter thereof.

 

Section
6.2 Funding Losses. The Borrower hereby agrees that upon demand by any Affected Party (which demand shall be accompanied
by a statement setting forth the basis for the calculations of the amount being claimed) the Borrower will indemnify such Affected
Party against any net loss or actual expense which such Affected Party actually sustains or incurs (including, without limitation,
any net loss or expense actually incurred by reason of the liquidation or reemployment of deposits or other funds acquired by
such Affected Party to fund or maintain any Advance made by any Lender to the Borrower), as reasonably determined by such Affected
Party, as a result of (a) any payment or prepayment (including any mandatory prepayment) of any Advance on a date other than a
Distribution Date, or (b) any failure of the Borrower to borrow any Advance on the date specified therefor in a First Initial
Advance Acceptance, a Second Initial Advance Acceptance, a Subsequent Advance Acceptance or an Additional Policy Advance Acceptance.
Such written statement shall, in the absence of manifest error, be rebuttable presumptive evidence of the subject matter thereof.

 

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Section
6.3 Withholding Taxes.

 

(a) All
payments made by the Borrower hereunder shall be made free and clear of, and without reduction or withholding for or on account
of, any present or future Covered Taxes. If any Covered Taxes are required to be withheld from any amounts payable to the Administrative
Agent or any Lender, the amounts so payable to the Administrative Agent or such Lender shall be increased to the extent necessary
to yield to the Administrative Agent or such Lender (after payment of all Taxes) all such amounts payable hereunder at the rates
or in the amounts specified herein. Whenever any Covered Taxes are payable by the Borrower, as promptly as possible thereafter,
the Borrower shall send to the Administrative Agent for its own account or for the account of the related Lender, as the case
may be, a certified copy or an original official receipt received by the Borrower showing payment thereof. If the Borrower fails
to pay any Covered Taxes when due to the appropriate taxing authority or fails to remit to the Administrative Agent the required
documentary evidence, the Borrower shall indemnify the Administrative Agent and each Lender for such Covered Taxes and any incremental
Taxes that may become payable by the Administrative Agent or any Lender as a result of any such failure.

 

(b) At
least five (5) Business Days prior to the first date on which any payments, including discount or Fees, are payable hereunder
for the account of any Lender, if such Lender is not organized under the laws of the United States, such Lender agrees to deliver
to each of the Borrower, the Securities Intermediary and the Administrative Agent two (2) duly completed copies of (i) United
States Internal Revenue Service Form W-8BEN or W-8ECI (or successor applicable form) certifying that such Lender is entitled to
receive payments hereunder without deduction or withholding, or at a reduced rate of withholding, of any United States federal
income taxes, provided such Lender is legally able to provide such forms or (ii) United States Internal Revenue Service Form W-9
or substitute W-9 (or successor applicable form) to establish an exemption from United States backup withholding tax. Each Lender
shall replace or update such forms as is necessary or appropriate to maintain any applicable exemption or as is requested by the
Administrative Agent, the Securities Intermediary or the Borrower.

 

ARTICLE
VII

CONDITIONS TO BORROWING

 

The
making of the Advances hereunder is subject to the following conditions precedent:

 

Section
7.1 Conditions Precedent to the Closing and the First Initial Advance. The Administrative Agent and the Lenders had no
obligation to consummate the transactions contemplated by the Original Loan Agreement and make the First Initial Advance unless:

 

(a) Representations
and Covenants. On and as of the date of the First Initial Advance: (i) the representations of each of the Borrower, the Parent,
the Custodian, the Securities Intermediary and the Servicer set forth in the Transaction Documents were true and correct with
the same effect as if made on such date, and (ii) each of the Borrower, the Parent, the Custodian, the Securities Intermediary
and the Servicer were in compliance with the covenants set forth in the Transaction Documents to which it is a party.

 

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(b) Closing
Documents. The Administrative Agent received all of the following, each duly executed and dated as of the Closing Date, in
form and substance satisfactory to the Required Lenders:

 

(i) Transaction
Documents. Duly executed and delivered counterparts of the Original Loan Agreement and each other Transaction Document (as
defined in the Original Loan Agreement), which agreements were in full force and effect.

 

(ii) Resolutions;
Organizational Documentation. Certified copies of resolutions for the Borrower and the Parent authorizing or ratifying the
execution, delivery and performance of each Transaction Document (as defined in the Original Loan Agreement) to which it was,
or would be, a party, together with certified copies of the Borrower Organizational Documents and in the case of the Parent, a
certified copy of its certificate of formation and limited liability company agreement.

 

(iii) Consents,
etc. Certified copies of all documents evidencing any necessary waivers, consents and approvals required by the Borrower,
the Parent and the Servicer with respect to each Transaction Document (as defined in the Original Loan Agreement) to which it
was, or would be, a party (including, without limitation, any and all approvals required for the Borrower or the Servicer to service
the Collateral).

 

(iv) Incumbency
and Signatures. A certificate of each of the Borrower, the Parent and the Servicer, certifying the names of its or its trustee’s
or members, managers, directors or officers authorized to sign each Transaction Document (as defined in the Original Loan Agreement)
to which it is, or will be, a party.

 

(v) Good
Standing Certificates. Good standing certificates for each of the Borrower, the Parent and the Servicer issued as of a recent
date acceptable to the Administrative Agent by: (i) the Secretary of State (or similar governmental authority) of the jurisdiction
of such Person’s formation, and (ii) the Secretary of State (or similar governmental authority) of the jurisdiction where
such Person’s chief executive office and principal place of business are located.

 

(vi) Financing
Statements. Copies of UCC-1 financing statements, in form and substance satisfactory to Administrative Agent, to be filed
on or before the Closing Date, naming each of the Borrower and the Parent as debtor, and Administrative Agent, for the benefit
of the Secured Parties, as secured party, and other documents necessary or reasonably requested by Administrative Agent, to evidence
the perfection of the Administrative Agent’s security interest in the Collateral.

 

(vii) Lien
Search Report. Results of completed UCC and tax and judgment lien searches and court searches for the jurisdictions of formation
and chief executive office of the Borrower and Parent dated within two (2) weeks before the Closing Date that named the Borrower
and Parent as debtor (none of which showed any of the Collateral subject to any Liens other than those created pursuant to the
Transaction Documents (as defined in the Original Loan Agreement)).

 

(viii) Payment
of Fees. Evidence (which may be in the form of one or more wire instructions and/or confirmations) that all Fees payable under
the Original Loan Agreement or under any other Transaction Document (as defined in the Original Loan Agreement) and all costs
and expenses then due and payable had been paid or were paid out of the proceeds of the First Initial Advance.

 

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(ix) Opinions
of Counsel. Opinions of counsel to the Borrower, the Parent, the Custodian, the Securities Intermediary and the Servicer,
in form and substance satisfactory to the Administrative Agent.

 

(x) Accounts.
Evidence that the Accounts, the Policy Account and the Borrower Account had been established in accordance with the Transaction
Documents (as defined in the Original Loan Agreement) and on the Closing Date, the amount on deposit in the Reserve Account was
equal to $11,250,000 and the amount on deposit in the Payment Account was equal to $13,768,088.26.

 

(xi) Collateral
Package. Copies of the complete Collateral Packages for the Subject Policies satisfactory to the Administrative Agent as of
the Closing Date.

 

(xii) Consent
and Estoppel Agreements. Executed consent and estoppel agreements in form and substance satisfactory to the Administrative
Agent from certain contractual counterparties previously designated in writing by the Administrative Agent (including, without
limitation, the Servicer, the Custodian and the Securities Intermediary).

 

(xiii) Insurance
Consultant. Reports produced by the Insurance Consultant, in form and substance satisfactory to the Administrative Agent.

 

(xiv) Material
Contracts. Certified copies of all material contracts and other agreements of the Borrower or relating to the Collateral.

 

(xv) Operational
Plan and Annual Budget. The Operational Plan and Annual Budget, with respect to the Subject Policies as of the Closing Date,
in form and substance reasonably acceptable to the Administrative Agent and the Insurance Consultant.

 

(xvi) Solvency
Certificate. A certificate of solvency executed by an officer or director of the Parent, certifying that each of the Borrower
and the Parent was and would be Solvent and able to pay its debts as they come due, and would have adequate capital to conduct
its business.

 

(xvii) Others.
Such other documents as the Administrative Agent may have reasonably requested.

 

(c) LTV.
After giving effect to the First Initial Advance, the LTV did not exceed sixty percent (60.0%), as determined by the Required
Lenders in their sole and absolute discretion.

 

(d) Reserved.

 

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(e) Eligible
Policies. Each of the Subject Policies as of the Closing Date was an Eligible Policy, as determined by the Required Lenders
in their sole and absolute discretion, it being understood that such determination shall not operate as a waiver by the Administrative
Agent or any Lender of any right or remedy hereunder or under any other Transaction Document if it is subsequently discovered
that any such Subject Policy was not an Eligible Policy as of the Closing Date.

 

(f) Delivery
of Policies to Custodian. The originals of all Subject Policies (or, if not available, certified copies thereof), and all
other documents comprising the related Custodial Packages (including all originals thereof, to the extent required or, if not
required, to the extent available) were delivered to were held by the Custodian, including evidence that all Premiums required
to be funded prior to the Closing Date in order to keep the Subject Policies in force and not in grace or lapse status through
at least forty-five (45) days thereafter had been paid, and the Custodian verified to the Administrative Agent in writing its
receipt of all documents required to be contained in the related Custodial Package by having delivered the required certification
pursuant to the terms of the Account Control Agreement.

 

(g) Satisfactory
Tax Review. The Required Lenders were satisfied with their review of all tax matters relating to the Borrower.

 

(h) Security
Interest. The Required Lenders were satisfied that the Liens and security interests created under and granted by the Transaction
Documents (as defined in the Original Loan Agreement) were first priority perfected exclusive Liens and would not be subject to
any other senior or pari passu Liens, security interests or any other Adverse Claims prior to or after the Closing Date as determined
in the Required Lenders’ sole and absolute discretion.

 

(i) No
Material Change in Laws. Since January 1, 2015, no material adverse change in any Applicable Law or any tax treatment of life
insurance death benefits or proceeds had occurred or reasonably could have been expected to occur.

 

(j) Collateral
Assignment. The Securities Intermediary or the Insurance Consultant had delivered to the related Issuing Insurance Companies
a fully completed and executed collateral assignment in respect of each Subject Policy on the Closing Date, naming the Administrative
Agent, on behalf of the Lenders, as the collateral assignee and the Administrative Agent received verbal confirmation on a recorded
line from each of the related Issuing Insurance Companies that all such collateral assignments had been received by such Issuing
Insurance Companies and no other collateral assignments were on file with such Issuing Insurance Companies.

 

(k) Acknowledgements.
The Securities Intermediary delivered written confirmation to the Administrative Agent that it had received an Acknowledgement
for each Subject Policy and had credited each Subject Policy to the Policy Account and the Securities Intermediary delivered copies
of each such Acknowledgement to the Administrative Agent.

 

(l) Change
Forms. The Securities Intermediary confirmed to the Administrative Agent in writing that it was holding completed Change Forms
with respect to the Subject Policies executed by the Securities Intermediary in blank and the Administrative Agent received copies
of such Change Forms.

  

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(m)
No Event of Default or Unmatured Event of Default. No Event of Default or Unmatured Event of Default had occurred
and was continuing or resulted from the making of the First Initial Advance.

 

(n)
Borrowing Request; etc. The Administrative Agent received a Borrowing Request (including (i) a confirmation that
the Collateral Packages for the Subject Policies had been uploaded to the FTP Site and (ii) a Borrowing Base Certificate) for the
First Initial Advance (which may have been an electronic or facsimile transmission).

 

(o)
Third Party Releases. The Borrower and the Parent had executed and delivered all necessary third party releases with
respect to the Subject Policies, as determined by the Administrative Agent in its sole and absolute discretion.

 

(p)
Insurance Consultant. The Borrower executed and delivered or caused all necessary third parties to execute and deliver
all documentation and authorizations necessary for the Insurance Consultant to communicate and receive verifications of coverage
and obtain other information from the Issuing Insurance Companies related to the Subject Policies, as determined by the Administrative
Agent in its sole and absolute discretion.

 

(q)
Collateral Packages. The Borrower uploaded the Collateral Packages for the Subject Policies to the FTP Site.

 

(r)
Lender Notes. Each Lender received an executed original of its Lender Note.

 

Section 7.2 Conditions
Precedent to the Second Initial Advance. The Administrative Agent and the Lenders
had no obligation to make the Second Initial Advance unless:

 

(a)
Representations and Covenants. On and as of the date of the Second Initial Advance: (i) the representations of each
of the Borrower, the Parent, the Custodian, the Securities Intermediary and the Servicer set forth in the Transaction Documents
were true and correct with the same effect as if made on such date, and (ii) each of the Borrower, the Parent, the Custodian, the
Securities Intermediary and the Servicer were in compliance with the covenants set forth in the Transaction Documents to which
it is a party.

 

(b)
Closing Documents. The Administrative Agent received all of the following, each duly executed and dated as of the
date of the Second Initial Advance, in form and substance satisfactory to the Required Lenders:

 

(i)
Good Standing Certificates. Good standing certificates for each of the Borrower, the Parent and the Servicer issued
as of a recent date acceptable to the Administrative Agent by: (i) the Secretary of State (or similar governmental authority) of
the jurisdiction of such Person's formation, and (ii) the Secretary of State (or similar governmental authority) of the jurisdiction
where such Person's chief executive office and principal place of business are located.

 

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(ii)
Lien Search Report. Results of completed UCC and tax and judgment lien searches and court searches for the jurisdictions
of formation and chief executive office of the Borrower and Parent dated within two (2) weeks before the date of the Second Initial
Advance that named the Borrower and Parent as debtor (none of which showed any of the Collateral subject to any Liens other than
those created pursuant to the Transaction Documents (as defined in the Original Loan Agreement)).

 

(iii)
Payment of Fees. Evidence (which may be in the form of one or more wire instructions and/or confirmations) that all
Fees payable hereunder or under any other Transaction Document (as defined in the Original Loan Agreement) and all costs and expenses
then due and payable had been paid or were paid out of the proceeds of the Second Initial Advance.

 

(iv)
Collateral Package. Copies of the complete Collateral Packages for the Subject Policies satisfactory to the Administrative
Agent as of the date of the Second Initial Advance.

 

(v)
Insurance Consultant. Reports produced by the Insurance Consultant, in form and substance satisfactory to the Administrative
Agent.

 

(vi)
Operational Plan and Annual Budget. The Operational Plan and Annual Budget, with respect to the Subject Policies
as of the date of the Second Initial Advance, in form and substance reasonably acceptable to the Administrative Agent and the Insurance
Consultant.

 

(vii)
Solvency Certificate. A certificate of solvency executed by an officer or director of the Parent, certifying that
each of the Borrower and the Parent was and would be Solvent and able to pay its debts as they come due, and would have adequate
capital to conduct its business.

 

(viii)
Others. Such other documents as the Administrative Agent may have reasonably requested.

 

(c)
LTV. After giving effect to the Second Initial Advance, the LTV did not exceed sixty percent (60.0%), as determined
by the Required Lenders in their sole and absolute discretion.

 

(d)
Reserved.

 

(e)
Eligible Policies. Each of the Subject Policies as of the date of the Second Initial Advance was an Eligible Policy,
as determined by the Required Lenders in their sole and absolute discretion, it being understood that such determination shall
not operate as a waiver by the Administrative Agent or any Lender of any right or remedy hereunder or under any other Transaction
Document if it is subsequently discovered that any such Subject Policy was not an Eligible Policy as of the date of the Second
Initial Advance.

 

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(f)
Delivery of Policies to Custodian. The originals of all Subject Policies (or, if not available, certified copies
thereof), and all other documents comprising the related Custodial Packages (including all originals thereof, to the extent required
or, if not required, to the extent available) were delivered to and are held by the Custodian, including evidence that all Premiums
required to be funded prior to the date of Second Initial Advance in order to keep the Subject Policies in force and not in grace
or lapse status through at least forty-five (45) days thereafter had been paid, and the Custodian verified to the Administrative
Agent in writing its receipt of all documents required to be contained in the related Custodial Package by having delivered the
required certification pursuant to the terms of the Account Control Agreement.

 

(g)
Security Interest. The Required Lenders were satisfied that the Liens and security interests created under and granted
by the Transaction Documents (as defined in the Original Loan Agreement) were first priority perfected exclusive Liens and would
not be subject to any other senior or pari passu Liens, security interests or any other Adverse Claims prior to or after the date
of the Second Initial Advance as determined in the Required Lenders' sole and absolute discretion.

 

(h)
No Material Change in Laws. Since January 1, 2015, no material adverse change in any Applicable Law or any tax treatment
of life insurance death benefits or proceeds had occurred or reasonably could have been expected to occur.

 

(i)
Collateral Assignment. The Securities Intermediary or the Insurance Consultant had delivered to the related Issuing
Insurance Companies a fully completed and executed collateral assignment in respect of each Subject Policy on or prior to the date
of the Second Initial Advance, naming the Administrative Agent, on behalf of the Lenders, as the collateral assignee and the Administrative
Agent received verbal confirmation on a recorded line from each of the related Issuing Insurance Companies that all such collateral
assignments had been received by such Issuing Insurance Companies and no other collateral assignments were on file with such Issuing
Insurance Companies.

 

(j)
Acknowledgements. The Securities Intermediary delivered written confirmation to the Administrative Agent that it
had received an Acknowledgement for each Subject Policy and had credited each Subject Policy to the Policy Account and the Securities
Intermediary delivered copies of each such Acknowledgement to the Administrative Agent.

 

(k)
Change Forms. The Securities Intermediary confirmed to the Administrative Agent in writing that was holding completed
Change Forms with respect to the Subject Policies executed by the Securities Intermediary in blank and the Administrative Agent
received copies of such Change Forms.

 

(l)
No Event of Default or Unmatured Event of Default. No Event of Default or Unmatured Event of Default had occurred
was continuing or resulted from the making of the Second Initial Advance.

 

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(m)
Borrowing Request; etc. The Administrative Agent received a Borrowing Request (including (i) a confirmation that
the Collateral Packages for the Subject Policies had been uploaded to the FTP Site and (ii) a Borrowing Base Certificate) for the
Second Initial Advance (which may have been an electronic or facsimile transmission).

 

(n)
Third Party Releases. The Borrower and the Parent had executed and delivered all necessary third party releases with
respect to the Subject Policies, as determined by the Administrative Agent in its sole and absolute discretion.

 

(o)
Insurance Consultant. The Borrower executed and delivered or caused all necessary third parties to execute and deliver
all documentation and authorizations necessary for the Insurance Consultant to communicate and receive verifications of coverage
and obtain other information from the Issuing Insurance Companies related to the Subject Policies, as determined by the Administrative
Agent in its sole and absolute discretion.

 

(p)
Collateral Packages. The Borrower uploaded the Collateral Packages for the Subject Policies to the FTP Site.

 

(q)
Transaction Documents. Each of the Transaction Documents (as defined in the Original Loan Agreement) was in full
force and effect.

 

(r)
Commitments. The Lenders' Commitments had not been terminated.

 

(s)
Material Adverse Effect. No event occurred that could reasonably have been expected to have a Material Adverse Effect.

 

Section 7.3 Conditions
Precedent to each Ongoing Maintenance Advance. The Administrative Agent and the
Lenders shall have no obligation to make an Ongoing Maintenance Advance unless:

 

(a)
Representations and Covenants. On and as of the date of such Ongoing Maintenance Advance: (i) the representations
of each of the Borrower, the Parent, the Custodian, the Securities Intermediary and the Servicer set forth in the Transaction Documents
shall be true and correct with the same effect as if made on such date, and (ii) each of the Borrower, the Parent, the Custodian,
the Securities Intermediary and the Servicer shall be in compliance with the covenants set forth in the Transaction Documents to
which it is a party.

 

(b)
Fees. All Fees due and payable shall have been paid.

 

(c)
LTV. After giving effect to such Ongoing Maintenance Advance, the LTV shall not exceed sixty percent (60.0%), as
determined by the Required Lenders in their sole and absolute discretion.

 

(d)
Borrowing Base. Such Ongoing Maintenance Advance shall not exceed an amount such that such Ongoing Maintenance Advance,
when taken together with the outstanding balance of all previous Advances (including any Protective Advances), would cause the
aggregate outstanding balance of the Advances to exceed the Borrowing Base as of the date of such Ongoing Maintenance Advance.

 

    	GWG DLP Funding IV, LLC Amended and Restated Loan and Security Agreement
Page 28 of 68

     

    

 

(e)
No Liens; First Priority Security Interest. There shall be no encumbrance or Lien on any of the Collateral other
than Liens or encumbrances created or expressly permitted under the Transaction Documents.

 

(f)
No Material Change in Laws. Since January 1, 2015, no material adverse change in any Applicable Law or any tax treatment
of life insurance death benefits or proceeds shall have occurred or reasonably could be expected to occur.

 

(g)
No Event of Default or Unmatured Event of Default. No Event of Default or Unmatured Event of Default shall have occurred
and be continuing or will result from the making of such Ongoing Maintenance Advance.

 

(h)
Borrowing Request; etc. The Administrative Agent shall have received a Borrowing Request (including a Borrowing Base
Certificate) for such Ongoing Maintenance Advance (which may be an electronic or facsimile transmission).

 

(i)
Transaction Documents. Each of the Transaction Documents shall be in full force and effect.

 

(j)
Commitments. The Lenders' Commitments shall have not been terminated.

 

(k)
Material Adverse Effect. No event shall have occurred during the shorter of (i) the three (3) year period preceding
the date of such Ongoing Maintenance Advance and (ii) the period of time commencing on the Closing Date and ending on the date
of such Ongoing Maintenance Advance, that could reasonably be expected to have a Material Adverse Effect.

 

(l)
Other Ongoing Maintenance Advances. The Lenders shall not have made more than two (2) other Ongoing Maintenance Advances
in the calendar month of the proposed Advance Date for such Ongoing Maintenance Advance.

 

(m)
Advance Date. The proposed Advance Date for such Ongoing Maintenance Advance is on or after March 14, 2017 and on
or prior to the Commitment Termination Date.

 

Section 7.4 Conditions
Precedent to each Additional Policy Advance. The making of each Additional Policy Advance is
subject to conditions precedent to be determined by the Lenders in their sole and absolute discretion.

 

    	GWG DLP Funding IV, LLC Amended and Restated Loan and Security Agreement
Page 29 of 68

     

    

 

Section 7.5 Lender
Valuation.  

 

(a)
Lender Valuation. With respect to each Distribution Date occurring prior to September 27, 2027, the Administrative
Agent shall, within three (3) Business Days prior to the related Calculation Date, provide the Borrower with the Lender Valuation
of the Pledged Policies (including the amount of the Lender Valuation allocated to each individual Pledged Policy) as of such Calculation
Date, along with the calculation of the Borrowing Base. In addition, prior to September 27, 2027, with respect to each calendar
month in which a Distribution Date does not occur, the Administrative Agent shall, within ten (10) Business Days after the last
day of the immediately preceding calendar month, provide the Borrower with the Lender Valuation of the Pledged Policies (including
the amount of the Lender Valuation allocated to each individual Pledged Policy) as of the last day of the immediately preceding
calendar month. The Borrower and Required Lenders hereby acknowledge that the methodology and metrics utilized by the Required
Lenders in determining the Lender Valuation may be different than the methodology and metrics utilized by the Borrower and its
Affiliates in determining the value of the Pledged Policies in connection with preparing the financial statements of the Borrower
and its Affiliates.

 

(b)
Lender Valuation Dispute. Subject to the third to last sentence of this Section 7.5(b), if the Borrower disagrees
with a Lender Valuation relating to a determination of the LTV, it may dispute such Lender Valuation (a “Valuation Dispute”).
The Borrower shall obtain a valuation of the Collateral from a third-party acceptable to the Required Lenders in their commercially
reasonable judgment who is experienced in valuing Policies (a “Borrower Valuation”). In the event the Borrower
Valuation (A) is more than ten percent (10%) higher than the Lender Valuation of the Pledged Policies and (B) results in an LTV
of less than fifty percent (50%), then, at the Administrative Agent’s option, (i) on the first Distribution Date occurring
after the Borrower obtains such Borrower Valuation, such Borrower Valuation will be used for the determination of the LTV and the
Cash Sweep shall be based on such determination (and for each subsequent Distribution Date, the Lender Valuation, as determined
by the Administrative Agent from time to time, will be used for all subsequent determinations of the LTV, subject to the Borrower
initiating any future Valuation Disputes in accordance with the terms hereof) or (ii) the Administrative Agent may request in writing
that the Borrower repay all the Advances outstanding plus accrued interest and expenses in respect thereof (a “Payoff
Notice”). If the Borrower does not repay such amount in full within one hundred eighty (180) days of the Payoff Notice,
the Borrower will no longer have the right to initiate a Valuation Dispute and the Lender Valuation, as determined by the Administrative
Agent from time to time, will be used for all subsequent determinations of the LTV. During such one hundred eighty (180) day period,
the LTV and the related Lender Valuation shall equal the amounts as initially calculated by the Required Lenders and the Cash Sweep
shall be based on such initial calculation. No Yield Maintenance Fee shall be payable in connection with the repayment of Advances
by the Borrower pursuant to this Section 7.5(b).

 

Section 7.6 Conditions
Precedent to First Advance Following the Amended and Restated Closing Date. In
addition to the conditions precedent set forth in Section 7.3 and Section 7.4, as applicable, the making of the
first Advance on or following the Amended and Restated Closing Date is subject to the following further conditions precedent:

 

(a)
Representations and Covenants. On and as of the date of the making of such Advance: (i) the representations of each
of the Borrower, the Parent, the Custodian, the Securities Intermediary and the Servicer set forth in the Transaction Documents
shall be true and correct with the same effect as if made on such date, and (ii) each of the Borrower, the Parent, the Custodian,
the Securities Intermediary and the Servicer shall be in compliance with the covenants set forth in the Transaction Documents to
which it is a party.

 

    	GWG DLP Funding IV, LLC Amended and Restated Loan and Security Agreement
Page 30 of 68

     

    

 

(b)
Closing Documents. The Administrative Agent shall have received all of the following, each duly executed and dated
as of the Amended and Restated Closing Date, in form and substance satisfactory to the Required Lenders:

 

(i)
Transaction Documents. Duly executed and delivered counterparts of this Loan Agreement and each other Transaction
Document, which agreements shall be in full force and effect.

 

(ii)
Resolutions; Organizational Documentation. Certified copies of resolutions for the Borrower and the Parent authorizing
or ratifying the execution, delivery and performance of each Transaction Document to which it is, or will be, a party, together
with certified copies of the Borrower Organizational Documents and in the case of the Parent, a certified copy of its certificate
of formation and limited liability company agreement.

 

(iii)
Consents, etc. Certified copies of all documents evidencing any necessary waivers, consents and approvals required
by the Borrower, the Parent and the Servicer with respect to each Transaction Document to which it is a party (including, without
limitation, any and all approvals required for the Borrower or the Servicer to service the Collateral).

 

(iv)
Incumbency and Signatures. A certificate of each of the Borrower, the Parent and the Servicer, certifying the names
of its or its trustee’s or members, managers, directors or officers authorized to sign each Transaction Document to which
it is, or will be, a party.

 

(v)
Good Standing Certificates. Good standing certificates for each of the Borrower, the Parent and the Servicer issued
as of a recent date acceptable to the Administrative Agent by: (i) the Secretary of State (or similar governmental authority) of
the jurisdiction of such Person’s formation, and (ii) the Secretary of State (or similar governmental authority) of the jurisdiction
where such Person’s chief executive office and principal place of business are located.

 

(vi)
Financing Statements. Copies of UCC-1 financing statements, in form and substance satisfactory to Administrative
Agent, to be filed on or before the Amended and Restated Closing Date, naming each of the Borrower and the Parent as debtor, and
Administrative Agent, for the benefit of the Secured Parties, as secured party, and other documents necessary or reasonably requested
by Administrative Agent, to evidence the perfection of the Administrative Agent’s security interest in the Collateral.

 

    	GWG DLP Funding IV, LLC Amended and Restated Loan and Security Agreement
Page 31 of 68

     

    

 

(vii)
Lien Search Report. Results of completed UCC and tax and judgment lien searches and court searches for the jurisdictions
of formation and chief executive office of the Borrower and Parent dated within two (2) weeks before the Amended and Restated Closing
Date that name the Borrower and Parent as debtor (none of which shall show any of the Collateral subject to any Liens other than
those created pursuant to the Transaction Documents).

 

(viii)
Payment of Fees. Evidence (which may be in the form of one or more wire instructions and/or confirmations) that all
Fees payable hereunder or under any other Transaction Document and all costs and expenses then due and payable have been paid or
will be paid out of the proceeds of the first Advance on or following the Amended and Restated Closing Date.

 

(ix)
Opinions of Counsel. Opinions of counsel to the Borrower, the Parent, the Custodian, the Securities Intermediary
and the Servicer, in form and substance satisfactory to the Administrative Agent.

 

(x)
Accounts. Evidence that the Accounts, the Policy Account and the Borrower Account have been established in accordance
with the Transaction Documents.

 

(xi)
Collateral Package. Copies of the complete Collateral Packages for the Subject Policies satisfactory to the Administrative
Agent as of the date of the making of such Advance.

 

(xii)
Consent and Estoppel Agreements. Executed consent and estoppel agreements in form and substance satisfactory to the
Administrative Agent from certain contractual counterparties previously designated in writing by the Administrative Agent (including,
without limitation, the Servicer, the Custodian and the Securities Intermediary).

 

(xiii)
Insurance Consultant. Reports produced by the Insurance Consultant, in form and substance satisfactory to the Administrative
Agent.

 

(xiv)
Material Contracts. Certified copies of all material contracts and other agreements of the Borrower or relating to
the Collateral.

 

(xv)
Operational Plan and Annual Budget. The Operational Plan and Annual Budget, with respect to the Subject Policies
as of the Amended and Restated Closing Date, in form and substance reasonably acceptable to the Administrative Agent and the Insurance
Consultant.

 

(xvi)
Solvency Certificate. A certificate of solvency executed by an officer or director of the Parent, certifying that
each of the Borrower and the Parent is and will be Solvent and able to pay its debts as they come due, and will have adequate capital
to conduct its business.

 

(xvii)
Others. Such other documents as the Administrative Agent may reasonably request.

 

    	GWG DLP Funding IV, LLC Amended and Restated Loan and Security Agreement
Page 32 of 68

     

    

 

(c)
LTV. After giving effect to the first Advance on or following the Amended and Restated Closing Date, the LTV shall
not exceed sixty percent (60.0%), as determined by the Required Lenders in their sole and absolute discretion.

 

(d)
Eligible Policies. Each of the Subject Policies as of the date of the making of such Advance shall be an Eligible
Policy, as determined by the Required Lenders in their sole and absolute discretion.

 

(e)
Delivery of Policies to Custodian. The originals of all Subject Policies (or, if not available, certified copies
thereof), and all other documents comprising the related Custodial Packages (including all originals thereof, to the extent required
or, if not required, to the extent available) shall have been delivered to and are held by the Custodian, including evidence that
all Premiums required to be funded prior to the date of the making of such advance in order to keep the Subject Policies in force
and not in grace or lapse status through at least forty-five (45) days thereafter have been paid, and the Custodian shall have
verified to the Administrative Agent in writing its receipt of all documents required to be contained in the related Custodial
Package by delivering the required certification pursuant to the terms of the Account Control Agreement.

 

(f)
Satisfactory Tax Review. The Required Lenders shall be satisfied with their review of all tax matters relating to
the Borrower.

 

(g)
Security Interest. The Required Lenders shall be satisfied that the Liens and security interests created under and
granted by the Transaction Documents are first priority perfected exclusive Liens and will not be subject to any other senior or
pari passu Liens, security interests or any other Adverse Claims prior to or after the Amended and Restated Closing Date as determined
in the Required Lenders’ sole and absolute discretion.

 

(h)
No Material Change in Laws. Since January 1, 2015, no material adverse change in any Applicable Law or any tax treatment
of life insurance death benefits or proceeds shall have occurred or reasonably could be expected to occur.

 

(i)
Collateral Assignment. The Securities Intermediary or the Insurance Consultant shall have delivered to the related
Issuing Insurance Companies a fully completed and executed collateral assignment in respect of each Subject Policy on the date
of the making of such Advance, naming the Administrative Agent, on behalf of the Lenders, as the collateral assignee and the Administrative
Agent shall have received verbal confirmation on a recorded line from each of the related Issuing Insurance Companies that all
such collateral assignments have been received by such Issuing Insurance Companies and no other collateral assignments are on file
with such Issuing Insurance Companies.

 

(j)
Acknowledgements. The Securities Intermediary shall have delivered written confirmation to the Administrative Agent
that it has received an Acknowledgement for each Subject Policy and has credited each Subject Policy to the Policy Account and
the Securities Intermediary shall have delivered copies of each such Acknowledgement to the Administrative Agent.

 

    	GWG DLP Funding IV, LLC Amended and Restated Loan and Security Agreement
Page 33 of 68

     

    

 

(k)
Change Forms. The Securities Intermediary shall have confirmed to the Administrative Agent in writing that it is
holding completed Change Forms with respect to the Subject Policies executed by the Securities Intermediary in blank and the Administrative
Agent shall have received copies of such Change Forms.

 

(l)
No Event of Default or Unmatured Event of Default. No Event of Default or Unmatured Event of Default shall have occurred
and be continuing or will result from the making of the first Advance on or following the Amended and Restated Closing Date.

 

(m)
Borrowing Request; etc. The Administrative Agent shall have received a Borrowing Request (including (i) a confirmation
that the Collateral Packages for the Subject Policies have been uploaded to the FTP Site and (ii) a Borrowing Base Certificate)
for the first Advance on or following the Amended and Restated Closing Date (which may be an electronic or facsimile transmission).

 

(n)
Third Party Releases. The Borrower and the Parent shall have executed and delivered all necessary third party releases
with respect to the Subject Policies, as determined by the Administrative Agent in its sole and absolute discretion.

 

(o)
Insurance Consultant. The Borrower shall have executed and delivered or caused all necessary third parties to execute
and deliver all documentation and authorizations necessary for the Insurance Consultant to communicate and receive verifications
of coverage and obtain other information from the Issuing Insurance Companies related to the Subject Policies, as determined by
the Administrative Agent in its sole and absolute discretion.

 

(p)
Collateral Packages. The Borrower shall have uploaded the Collateral Packages for the Subject Policies to the FTP
Site.

 

(q)
Lender Notes. Each Lender shall have received an executed original of its Lender Note.

 

(r)
Advance Date. The proposed Advance Date is on or prior to the Commitment Termination Date.

 

(s)
Transaction Documents. Each of the Transaction Documents is in full force and effect.

 

(t)
Commitments. The Lenders' Commitments have not been terminated.

 

(u)
Material Adverse Effect. No event has occurred that could reasonably be expected to have a Material Adverse Effect.

 

    	GWG DLP Funding IV, LLC Amended and Restated Loan and Security Agreement
Page 34 of 68

     

    

 

Section 7.7 Release.
AS AN ADDITIONAL MATERIAL INDUCEMENT TO THE ADMINISTRATIVE AGENT AND THE LENDERS TO MAKE THE FIRST ADVANCE ON OR FOLLOWING THE
AMENDED AND RESTATED CLOSING DATE, UPON THE MAKING OF THE FIRST ADVANCE ON OR FOLLOWING THE AMENDED AND RESTATED CLOSING DATE,
THE BORROWER, ON BEHALF OF ITSELF AND ITS SUCCESSORS, ASSIGNS, LEGAL REPRESENTATIVES AND CONSTITUENTS (WHETHER OR NOT A PARTY
HERETO) (BORROWER AND SUCH SUCCESSORS, ASSIGNS, LEGAL REPRESENTATIVES AND CONSTITUENTS BEING REFERRED TO HEREIN COLLECTIVELY AND
INDIVIDUALLY, AS “OBLIGORS, ET AL.”), FULLY, FINALLY AND COMPLETELY RELEASES AND FOREVER DISCHARGES THE LENDERS, THE
ADMINISTRATIVE AGENT AND THEIR RESPECTIVE OWNERS, SUCCESSORS, ASSIGNS, AFFILIATES, SUBSIDIARIES, PARENTS, OFFICERS, SHAREHOLDERS,
DIRECTORS, EMPLOYEES, ATTORNEYS AND AGENTS, PAST, PRESENT AND FUTURE, AND THEIR RESPECTIVE HEIRS, PREDECESSORS, SUCCESSORS AND
ASSIGNS (COLLECTIVELY AND INDIVIDUALLY, “LENDER, ET AL.”) OF AND FROM ANY AND ALL CLAIMS, CONTROVERSIES, DISPUTES,
LIABILITIES, OBLIGATIONS, DEMANDS, DAMAGES, EXPENSES (INCLUDING, WITHOUT LIMITATION, REASONABLE ATTORNEYS’ FEES), DEBTS,
LIENS, ACTIONS AND CAUSES OF ACTION OF ANY AND EVERY NATURE WHATSOEVER, INCLUDING, WITHOUT LIMITATION, ANY THEREOF RELATING TO
THE ADVANCES, AND WAIVES AND RELEASES ANY DEFENSE, RIGHT OF COUNTERCLAIM, RIGHT OF SET-OFF OR DEDUCTION TO THE PAYMENT OF THE
INDEBTEDNESS EVIDENCED BY THE LENDER NOTES AND/OR ANY OTHER TRANSACTION DOCUMENT WHICH OBLIGORS, ET AL. MAY HAVE OR MAY CLAIM
TO HAVE AGAINST LENDER, ET AL., OR ANY THEREOF, ARISING OUT OF, CONNECTED WITH OR RELATING TO ANY AND ALL ACTS, OMISSIONS OR EVENTS
OCCURRING PRIOR TO THE DATE OF THE MAKING OF THE FIRST ADVANCE ON OR FOLLOWING THE AMENDED AND RESTATED CLOSING DATE. THE BORROWER
HEREBY ACKNOWLEDGES, REPRESENTS AND WARRANTS TO THE LENDERS AND THE ADMINISTRATIVE AGENT THAT IT AGREES TO ASSUME THE RISK OF
ANY AND ALL UNKNOWN, UNANTICIPATED OR MISUNDERSTOOD DEFENSES AND CLAIMS WHICH ARE RELEASED BY THE PROVISIONS HEREOF IN FAVOR OF
LENDER, ET AL., AND WAIVES AND RELEASES ALL RIGHTS AND BENEFITS WHICH IT MIGHT OTHERWISE HAVE UNDER ANY FEDERAL, STATE OR LOCAL
LAW OR STATUTE WITH REGARD TO THE RELEASE OF SUCH UNKNOWN, UNANTICIPATED OR MISUNDERSTOOD DEFENSES OR CLAIMS. THE BORROWER ACKNOWLEDGES
THAT IT HAS READ AND UNDERSTANDS EACH OF THE PROVISIONS OF THIS RELEASE. THE BORROWER FULLY UNDERSTANDS THAT THIS RELEASE CONSTITUTES
A GENERAL RELEASE, AND THAT IT HAS IMPORTANT LEGAL CONSEQUENCES. THE BORROWER CONFIRMS THAT IT WILL HEREBY RELEASE ANY AND ALL
RELEASED CLAIMS THAT IT MAY INDIVIDUALLY HAVE AS OF THE DATE OF THE MAKING OF THE FIRST ADVANCE ON OR FOLLOWING THE AMENDED AND
RESTATED CLOSING DATE. THE BORROWER HEREBY ACKNOWLEDGES THAT IT HAS HAD A FULL AND FAIR OPPORTUNITY TO OBTAIN A LAWYER’S
ADVICE CONCERNING THE LEGAL CONSEQUENCES OF THIS RELEASE AND WAIVER.

 

    	GWG DLP Funding IV, LLC Amended and Restated Loan and Security Agreement
Page 35 of 68

     

    

 

Section 7.8 Additional
Representations and Warranties (Second Initial Advance). As an additional material inducement
to the Administrative Agent and the Lenders to make the Second Initial Advance, Borrower represented and warranted to, and agreed
with, the Lenders and the Administrative Agent that, as of the date of the making of the Second Initial Advance, the Borrower
had no defense, counterclaim or offset to the payment or performance of any of the Borrower's obligations in regard to the Advances
or any of the Transaction Documents (as defined in the Original Loan Agreement) and the Liens created and granted by the Transaction
Documents (as defined in the Original Loan Agreement) continued unimpaired and of first priority and secured all existing and
future obligations owed to the Lenders and/or the Administrative Agent in regard to the Advances.

 

Section 7.9 Additional
Representations and Warranties (First Advance Following the Amended and Restated Closing Date).
As an additional material inducement to the Administrative Agent and the Lenders to make the first Advance following the Amended
and Restated Closing Date, Borrower hereby represents and warrants to, and agrees with, the Lenders and the Administrative Agent
that, as of the date of the making of the first Advance on or following the Amended and Restated Closing Date, the Borrower has
no defense, counterclaim or offset to the payment or performance of any of the Borrower's obligations in regard to the Advances
or any of the Transaction Documents and the Liens created and granted by the Transaction Documents continue unimpaired and of
first priority and secure all existing and future obligations owed to the Lenders and/or the Administrative Agent in regard to
the Advances.

 

ARTICLE
VIII

REPRESENTATIONS AND WARRANTIES

 

Section 8.1 Representations
and Warranties of the Borrower. The Borrower makes the following representations
and warranties to the Administrative Agent and each Lender:

 

(a)
Organization, etc. The Borrower has been duly organized and is validly existing and in good standing under the laws
of the State of Delaware (and is not organized under the laws of any other jurisdiction or Governmental Authority) with the requisite
power and authority to own its properties and to conduct its business as such properties are presently owned and such business
is presently conducted. The Borrower is duly licensed or qualified to do business as a foreign entity in good standing in each
jurisdiction in which the failure to be so licensed or qualified would be reasonably likely to have a Material Adverse Effect.

 

(b)
Power and Authority; Due Authorization. The Borrower has (a) all necessary power, authority and legal right to (i)
execute, deliver and perform its obligations under this Loan Agreement and each of the other Transaction Documents to which it
is a party, and (ii) to borrow money on the terms and subject to the conditions herein provided, and (b) duly authorized, by all
necessary action, the execution, delivery and performance of this Loan Agreement and the other Transaction Documents to which it
is a party, the borrowing hereunder on the terms and conditions of this Loan Agreement and the granting of security therefor on
the terms and conditions provided herein.

 

    	GWG DLP Funding IV, LLC Amended and Restated Loan and Security Agreement
Page 36 of 68

     

    

 

(c)
No Violation. The consummation of the transactions contemplated by this Loan Agreement and the other Transaction
Documents and the fulfillment of the terms hereof and thereof will not and do not (a) conflict with, result in any breach of any
of the terms and provisions of, or constitute (with or without notice or lapse of time or both) a default under, (i) the Borrower
Organizational Documents, or (ii) any indenture, loan agreement, pooling and servicing agreement, sale agreement, purchase agreement,
mortgage, deed of trust, or other agreement or instrument to which the Borrower is a party or by which the Borrower or any of its
properties is bound, (b) result in or require the creation or imposition of any Adverse Claim upon any of its properties pursuant
to the terms of any such indenture, loan agreement, pooling and servicing agreement, sale agreement, purchase agreement, mortgage,
deed of trust, or other agreement or instrument, other than pursuant to the terms of the Transaction Documents or (c) violate any
law or any order, rule, or regulation applicable to the Borrower or of any court or of any federal, state or foreign regulatory
body, administrative agency, or other governmental instrumentality having jurisdiction over the Borrower or any of its properties.

 

(d)
Validity and Binding Nature. This Loan Agreement is, and the other Transaction Documents to which it is a party when
duly executed and delivered by the Borrower and the other parties thereto will be, the legal, valid and binding obligation of the
Borrower, enforceable in accordance with their respective terms, except as enforceability may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium or similar law affecting creditors’ rights generally and by general principles of
equity.

 

(e)
Government Approvals. No authorization or approval or other action by, and no notice to or filing with, any Governmental
Authority or regulatory body required for the due execution, delivery or performance by the Borrower of any Transaction Document
to which it is a party, remains unobtained or unfiled.

 

(f)
Solvency. As of each Advance Date, after giving effect to each Advance made on such Advance Date, the Borrower was,
is and will be Solvent and able to pay its debts as they come due, and had and will have adequate capital to conduct its business.

 

(g)
Margin Regulations. The Borrower is not engaged in the business of extending credit for the purpose of purchasing
or carrying margin stock, and no proceeds of any Advances, directly or indirectly, will be used for a purpose that violates, or
would be inconsistent with, Regulations T, U and X promulgated by the Federal Reserve Board from time to time.

 

(h)
Quality of Title. As of each Advance Date, the Collateral, including, without limitation, the Pledged Policies (which,
for the avoidance of doubt, includes any Subject Policies), was and is owned by the Borrower (directly or through the Securities
Intermediary) free and clear of any Adverse Claim.

 

(i)
No Rescission. As of each Advance Date, no prior seller of any Pledged Policy or Subject Policy or any other Person
which had an interest in any Pledged Policy or Subject Policy had or has exercised or, to the knowledge of the Borrower, the Parent
or any Affiliate of any of them, attempted to exercise the right to rescind the sale of any Pledged Policy or Subject Policy.

 

    	GWG DLP Funding IV, LLC Amended and Restated Loan and Security Agreement
Page 37 of 68

     

    

 

(j)
Perfection. This Loan Agreement, the Account Control Agreement, the collateral assignments filed in respect of the
Pledged Policies and the financing statements filed in connection with this Loan Agreement create a valid first priority security
interest in favor of the Administrative Agent (for the benefit of the Secured Parties) in the Collateral, which security interest
has been perfected (free and clear of any Adverse Claim) as security for the Obligations. As of the Closing Date and the date of
the Second Initial Advance, no effective financing statement or other instrument similar in effect covering any of the Collateral
(including, without limitation, any Pledged Policies) or any interest therein owned by the Borrower (directly or through the Securities
Intermediary) was on file in any recording office except for financing statements in favor of the Administrative Agent (for the
benefit of the Secured Parties) in accordance with the Original Loan Agreement and the other Transaction Documents (as defined
in the Original Loan Agreement). As of the Amended and Restated Closing Date and the date of any Advance following the Amended
and Restated Closing Date, no effective financing statement or other instrument similar in effect covering any of the Collateral
(including, without limitation, any Pledged Policies) or any interest therein owned by the Borrower (directly or through the Securities
Intermediary) is on file in any recording office except for financing statements in favor of the Administrative Agent (for the
benefit of the Secured Parties) in accordance with this Loan Agreement and the other Transaction Documents.

 

(k)
Offices. The principal place of business and chief executive office of the Parent and of the Borrower is located
at the address set forth on Schedule 13.2 (or at such other locations, notified to the Administrative Agent in jurisdictions where
all action required hereby has been taken and completed).

 

(l)
Compliance with Applicable Laws; Licenses, etc.

 

(i)
The Borrower is in compliance with the requirements of all Applicable Laws, a breach of any of which, individually or in
the aggregate, could reasonably be expected to have an adverse effect on any of the Pledged Policies, the business, assets, financial
condition or operations of the Borrower or any of the rights or interests of the Administrative Agent or any of the Lenders hereunder
or under any other Transaction Document.

 

(ii)
The Borrower has not failed to obtain any licenses, permits, franchises or other governmental authorizations necessary to
the ownership of its properties or to the conduct of its business, which violation or failure to obtain could reasonably be expected
to have an adverse effect on any of the Pledged Policies, any other Collateral, the business, assets, financial condition or operations
of the Borrower or any of the rights or interests of the Administrative Agent or any of the Lenders hereunder or under any other
Transaction Document.

 

(iii)
The Borrower has complied with all licensure requirements in each state in which it is required to be specifically registered
or licensed as a purchaser, owner or servicer of life insurance policies.

 

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(iv)
There has been no event or circumstance that could reasonably be expected to result in the revocation of any license, permit,
franchise or other governmental authorization of the Borrower necessary to the ownership of its properties or to the conduct of
its business.

 

(m)
No Proceedings. There is no order, judgment, decree, injunction, stipulation or consent order of or with any Governmental
Authority to which the Borrower is subject, and there is no action, suit, arbitration, regulatory proceeding or investigation pending,
or, to the actual knowledge of the Borrower, threatened, before or by any court, regulatory body, administrative agency or other
tribunal or governmental instrumentality, against the Borrower that, individually or in the aggregate, could reasonably be expected
to have a Material Adverse Effect; and there is no action, suit, proceeding, arbitration, regulatory or governmental investigation,
pending or, to the actual knowledge of the Borrower, threatened, before or by any court, regulatory body, administrative agency,
or other tribunal or governmental instrumentality (A) asserting the invalidity of this Loan Agreement, the Lender Notes or any
other Transaction Document, (B) seeking to prevent the issuance of the Lender Notes or the consummation of any of the other transactions
contemplated by this Loan Agreement or any other Transaction Document, (C) seeking to adversely affect the federal income tax attributes
of the Borrower or (D) asserting that any Pledged Policy or Policy to become a Pledged Policy is invalid, void or otherwise unenforceable
for any reason.

 

(n)
Investment Company Act, Etc. The Borrower is not an “investment company” or a company “controlled”
by an “investment company” within the meaning of the Investment Company Act of 1940, as amended, by virtue of an exemption
other than pursuant to Section 3(c)(1) or Section 3(c)(7) thereof. The Borrower is not a “covered fund” under Section
13 of the Bank Holding Company Act of 1956, as amended.

 

(o)
Eligible Policies. As of the Closing Date, (i) each Pledged Policy was an Eligible Policy and no Pledged Policy was
subject to any Applicable Law that made unlawful the sale, transfer or assignment of such Pledged Policy and (ii) with respect
to each Pledged Policy, the Borrower was not aware of any agreements, documents, assignments or instruments related to such Policy
except for those documents, assignments, and instruments that constitute and were included in the related Collateral Package that
was delivered to the Administrative Agent and such Collateral Package contained, at the very least, the documents set forth in
Exhibit M to the Account Control Agreement. As of the date of the Borrowing Request relating to the Second Initial Advance and
the date of the Second Initial Advance, (i) each Policy that became a Pledged Policy on the relevant Advance Date was an Eligible
Policy and was not subject to any Applicable Law that makes unlawful the sale, transfer or assignment of such Policy and (ii) with
respect to each Policy that became a Pledged Policy on the relevant Advance Date, the Borrower was not aware of any agreements,
documents, assignments or instruments related to such Policy except for those documents, assignments, and instruments that constituted
and were included in the related Collateral Package that was delivered to the Administrative Agent and such Collateral Package
contained, at the very least, the documents set forth in Exhibit M to the Account Control Agreement. As of the date of any Borrowing
Request relating to an Additional Policy Advance and the date of such Additional Policy Advance, (i) each Additional Policy that
will become a Pledged Policy on the relevant Advance Date is or will be an Eligible Policy and is not subject to any Applicable
Law that makes unlawful the sale, transfer or assignment of such Additional Policy and (ii) with respect to each Additional Policy
that will become a Pledged Policy on the relevant Advance Date, the Borrower is not aware of any agreements, documents, assignments
or instruments related to such Policy except for those documents, assignments, and instruments that constitute and were included
in the related Collateral Package that was delivered to the Administrative Agent and such Collateral Package contains, at the very
least, the documents set forth in Exhibit M to the Account Control Agreement.

 

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(p)
Accuracy of Information. To the best of the Borrower’s knowledge and belief, after due inquiry, and in reliance
on information provided by third parties, all information furnished by, or on behalf of, the Borrower to the Administrative Agent
or any other Secured Party in connection with any Transaction Document, or any transaction contemplated thereby, is or was as of
the date it was furnished (if such information was furnished on an earlier date) true and accurate in every material respect (without
omission of any information necessary to prevent such information from being materially misleading).

 

(q)
No Material Adverse Change. Since the Borrower’s formation, there has been no material adverse change in (A)
the Borrower’s (i) financial condition, business or operations or (ii) ability to perform its obligations under any Transaction
Document to which the Borrower is a party or (B) any of the Collateral.

 

(r)
Trade Names and Subsidiaries. The Borrower has not used any other names, trade names or assumed names for the five
year period preceding the date of this Loan Agreement. The Borrower has no Subsidiaries nor owns or holds, directly or indirectly,
any equity interest in any Person.

 

(s)
Accounts. Set forth in Schedule 8.1(s) is a complete and accurate description, as of the Amended and Restated Closing
Date, of the existing Accounts, the Policy Account and the Borrower Account. The Accounts and the Policy Account have each been
validly and effectively assigned to the Administrative Agent, for the benefit of the Secured Parties, and shall be encumbered by
the Lien created pursuant to this Loan Agreement and the Account Control Agreement. The Account Control Agreement is the legal,
valid and binding obligation of the parties thereto, enforceable against such parties in accordance with its terms (except as enforceability
may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar law affecting creditors’ rights
generally and by general principles of equity). Neither the Borrower nor the Servicer has granted any interest in any of the Accounts
or the Policy Account to any Person other than the Administrative Agent and the Administrative Agent has “control”
of the Accounts and the Policy Account within the meaning of the applicable UCC.

 

(t)
Financial Statements. The financial statements required to be delivered pursuant to Section 9.1(d): (i) were,
as of the date and for the periods referred to therein, complete and correct in all material respects, (ii) presented fairly the
financial condition and results of operations of the related Person as at such time and (iii) were prepared in accordance with
GAAP, consistently applied, except as noted therein (subject as to interim statements to normal year-end adjustments).

 

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(u)
No Event of Default. No Event of Default or Unmatured Event of Default has occurred or is continuing, or, in relation
to any Borrowing Request, will result from the funding of the Advance and use of funds specified therein.

 

(v)
Foreign Assets Control Regulations, Etc.

 

(i)
Neither the Borrower nor the Servicer nor any Affiliate of any of them is (A) a person whose name appears on the list of
Specially Designated Nationals and Blocked Persons published by the Office of Foreign Assets Control, U.S. Department of Treasury
(“OFAC”) (an “OFAC Listed Person”) or (B) a department, agency or instrumentality of, or
is otherwise controlled by or acting on behalf of, directly or indirectly, (x) any OFAC Listed Person or (y) any person, entity,
organization, foreign country or regime that is subject to any OFAC Sanctions Program (each OFAC Listed Person and each other person,
entity, organization and government of a country described in clause (B), a “Blocked Person”).

 

(ii)
No part of the proceeds from the Advances issued hereunder or under the Original Loan Agreement constituted or constitutes
or will constitute funds obtained on behalf of any Blocked Person or was used or will otherwise be used, directly by the Borrower
or indirectly by the Borrower, the Servicer, the Parent or any Affiliate of any of them in connection with any investment in, or,
to the Borrower’s actual knowledge, any transactions or dealings with, any Blocked Person.

 

(iii)
To the Borrower’s actual knowledge, none of the Borrower, the Parent, the Servicer or any Affiliate of any of them
(A) is under investigation by any Governmental Authority for, or has been charged with, or convicted of, money laundering, drug
trafficking, terrorist-related activities or other money laundering predicate crimes under any Applicable Law (collectively, “Anti-Money
Laundering Laws”), (B) has been assessed civil penalties under any Anti-Money Laundering Laws or (C) has had any of its
funds seized or forfeited in an action under any Anti-Money Laundering Laws. The Borrower has taken reasonable measures appropriate
to the circumstances, to the extent, if any, required by Applicable Law, to ensure that the Borrower and each Affiliate thereof
is and will continue to be in compliance with all applicable current and future Anti-Money Laundering Laws.

 

(iv)
No part of the proceeds from Advances funded hereunder will be used, directly or indirectly, for any improper payments to
any governmental official or employee, political party, official of a political party, candidate for political office, official
of any public international organization or anyone else acting in an official capacity, in order to obtain, retain or direct business
or obtain any improper advantage. The Borrower has taken reasonable measures appropriate to the circumstances, to the extent, if
any, required by Applicable Law, to ensure that the Borrower and each Affiliate thereof is and will continue to be in compliance
with all applicable current and future anti-corruption laws and regulations.

 

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(w)
Transaction Documents. The Borrower has not entered into any agreements or instruments other than the Transaction
Documents. Since the date of its formation, the Borrower has not engaged in any activities except as those expressly permitted
by the LLC Agreement and the other Transaction Documents.

 

(x)
Retained Death Benefit Policies.  As of each Advance Date, all Pledged Policies that constitute Retained Death
Benefit Policies are listed on Schedule 8.1(x) and, except as set forth on Schedule 8.1(x), the portion of the Net
Death Benefit payable to any Person other than the Securities Intermediary does not exceed fifteen percent (15%) of the Net Death
Benefit of any such Retained Death Benefit Policy. 

 

ARTICLE
IX

COVENANTS

 

Section 9.1 Affirmative
Covenants. Until the first day following the date on which all of the Obligations
are performed and paid in full and this Loan Agreement is terminated, the Borrower hereby covenants and agrees as follows:

 

(a)
Compliance with Laws, Etc. The Borrower shall comply in all material respects with all Applicable Laws.

 

(b)
Preservation of Existence. The Borrower shall preserve and maintain its existence, rights, franchises and privileges,
and sole jurisdiction of formation, and qualify and remain qualified in good standing as a foreign entity in each jurisdiction
where the failure to preserve and maintain such existence, rights, franchises, privileges and qualifications could have an adverse
effect on any of the Pledged Policies, any other Collateral, the business, assets, financial condition or operations of the Borrower
or any of the rights or interests of the Administrative Agent or any of the Lenders hereunder or under any other Transaction Document.

 

(c)
Performance and Compliance with the Transaction Documents and Pledged Policies. The Borrower shall timely and fully
perform and comply in all material respects with all provisions, obligations, covenants and other promises required to be observed
by it under the Transaction Documents and otherwise with respect to the Pledged Policies.

 

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(d)
Reporting Requirements. During the term of this Loan Agreement, the Borrower shall furnish or cause to be furnished
to the Administrative Agent and each Lender:

 

(i)
 (x) as soon as available and in any event within forty-five (45) days after the end of each of the first three fiscal quarters
of each fiscal year of the Borrower, a copy of the unaudited financial statements of the Borrower or the Parent (so long as such
unaudited financial statements are on a consolidated basis and include the Borrower), as of the end of such fiscal quarter, certified
by an officer or director of the Borrower, the Parent or their investment manager (which certification shall state that the related
balance sheets and statements fairly present the financial condition and results of operations for such fiscal quarter), delivery
of which financial statements shall be accompanied by a certificate of such officer or director to the effect that no Event of
Default or Unmatured Event of Default has occurred and is continuing or, if an Event of Default or Unmatured Event of Default has
occurred and is continuing, specifying the details thereof and any action taken or proposed to be taken with respect thereto and
(y) as soon as available, and in any event within ninety (90) days after the end of each fiscal year of the Borrower (commencing
with the fiscal year ending in 2016), a copy of the audited annual balance sheet for such fiscal year of the Borrower or the Parent
(so long as such audited annual balance sheet is on a consolidated basis and includes the Borrower), as at the end of such fiscal
year, together with the related audited statements of earnings, stockholders’ equity and cash flows for such fiscal year,
certified by an officer or director of the Borrower or the Parent (which certification shall state that the related balance sheets
and statements fairly present the financial condition and results of operations for such fiscal year, subject to year-end audit
adjustments), delivery of which balance sheets and statements shall be accompanied by a certificate of such officer or Director
to the effect that no Event of Default or Unmatured Event of Default has occurred and is continuing;

 

(ii)
as soon as possible and in any event within three (3) Business Days after any officer of the Borrower or the Parent has
actual knowledge of (A) the occurrence of an Event of Default or an Unmatured Event of Default, an officer’s certificate
of the Borrower setting forth details of such event and the action that the Borrower proposes to take with respect thereto and
(B) the downgrade, withdrawal or suspension of the financial strength rating of any Issuing Insurance Company, notice to the Administrative
Agent thereof;

 

(iii)
a copy of the Servicer Report on each Servicer Report Date;

 

(iv)
promptly, from time to time, such other information, documents, records or reports respecting the Collateral, the Subject
Policies or the condition or operations, financial or otherwise, of the Borrower as the Administrative Agent may from time to time
reasonably request in order to protect the interests of the Administrative Agent or any Lender under or as contemplated by this
Loan Agreement and the other Transaction Documents, including but not limited to, upon each sale of a Pledged Policy, a report
that shall include such information as the Administrative Agent shall reasonably request, calculated as of before such sale and
after such sale, taking into account the application of the proceeds of such sale;

 

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(v)
as soon as possible upon learning of the death of any Insured, an email notification to the Administrative Agent of (A)
the identity of such Insured, (B) the cost basis of the Pledged Policy relating to such Insured (purchase price paid by the first
person that purchased such Pledged Policy that was an Affiliate of the Borrower or the Parent, or, if such Pledged Policy was acquired
by such Affiliate in a foreclosure process, the amount of indebtedness allocated to such Pledged Policy by such Affiliate plus
any additional accrued and unpaid interest thereon as of the date of foreclosure and, in each case, plus premiums paid thereon
after the date of foreclosure or purchase, as applicable, and until the date of the death of such Insured), (C) the Net Death Benefit
of the Pledged Policy relating to such Insured, (D) the two (2) Life Expectancy Reports delivered with respect to such Insured
relating to the applicable Advance and the names of the Pre-Approved Medical Underwriters which provided such Life Expectancy Reports
(unless the related Pledged Policy is a Small Face Policy, in which case, the Life Expectancy Report delivered with respect to
such Insured relating to the applicable Advance and the name of the medical underwriter which provided such Life Expectancy Report,
which medical underwriter shall be AVS, Fasano or another medical underwriter approved by the Required Lenders in their sole and
absolute discretion), (E) the date the Pledged Policy was first acquired by an Affiliate of the Borrower or the Parent relating
to such Insured and (F) the date of birth and date of death of such Insured;

 

(vi)
no later than the Closing Date, and thereafter on December 1 of each calendar year (including the current calendar year),
an annual budget substantially in form of Exhibit E (each, an “Annual Budget”). Within five (5) Business
Days of delivery of the first such Annual Budget, and thereafter within twenty (20) Business Days of delivery of each subsequent
Annual Budget to the Administrative Agent and each Lender, the Required Lenders will specify to the Administrative Agent, and the
Administrative Agent will advise the Borrower the amount they have approved in their sole discretion for funding through Advances
and/or Collections in respect of Expenses and scheduled Premiums on the Pledged Policies for (a) in the case of the first such
Annual Budget, the current calendar year, and (b) in the case of any subsequent Annual Budget the succeeding calendar year; provided
that at any time, in their sole discretion, the Required Lenders may notify the Administrative Agent and Borrower that they approve
increases in such amounts or direct decreases in such amounts; and

 

(vii)
to the extent not prohibited by Applicable Law, within two (2) Business Days after receipt by the Borrower or any Affiliate
thereof, all notices, communications and other information (including medical information) related to a Pledged Policy or a related
Insured.

 

(e)
Use of Advances. The Borrower shall use the proceeds of Advances in accordance with Section 2.8(a).

 

(f)
Separate Legal Entity. The Borrower hereby acknowledges that each Lender and the Administrative Agent are entering
into the transactions contemplated by this Loan Agreement and the other Transaction Documents in reliance upon the Borrower’s
identity as a legal entity separate from the members, shareholders or other equity owners of the Parent or any other Person. Therefore,
from and after the Closing Date, the Borrower shall take all reasonable steps to continue the Borrower’s identity as a separate
legal entity and to make it apparent to third Persons that the Borrower is an entity with assets and liabilities distinct from
those of any other Person, and is not a division of any other Person. Without limiting the generality of the foregoing and in addition
to and consistent with the covenant set forth in Section 9.1(b), the Borrower shall take such actions as shall be required
in order that:

 

(i)
The Borrower will be a limited liability company whose primary activities are restricted in the Borrower Organizational
Documents to acquiring and owning Pledged Policies and financing the acquisition thereof pursuant to this Loan Agreement;

 

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(ii)
At least one director of the Borrower (the “Independent Director”) shall be an individual who (i) is
not a present or former director, manager, officer, employee, supplier, customer or five percent (5%) beneficial owner of the outstanding
common stock of any Person or entity beneficially owning any outstanding shares of common stock or other equity interest of the
Parent or any Affiliate thereof and (ii) has at least three years of employment experience with one or more entities with a national
reputation and presence that provide, in the ordinary course of its business, advisory, management or placement services to issuers
of securitization or structured finance instruments, agreements or securities, and is currently employed by such an entity; provided,
however, that an individual shall not be deemed to be ineligible to be an Independent Director solely because such individual
serves or has served in the capacity of an “independent director” or similar capacity for special purpose entities
formed by the Borrower or any of its Affiliates. The Borrower Organizational Documents shall provide that (i) the board of directors
or the equity owners of the Borrower shall not approve, or take any other action to cause the filing of, a voluntary bankruptcy
petition with respect to the Borrower unless the Independent Director shall approve the taking of such action in writing prior
to the taking of such action, and (ii) such provision cannot be amended without the prior written consent of the Independent Director;

 

(iii)
Any employee, consultant or agent of the Borrower will be compensated from funds of the Borrower, as appropriate, for services
provided to the Borrower;

 

(iv)
The Borrower will allocate and charge fairly and reasonably overhead expenses shared with any other Person. To the extent,
if any, that the Borrower and any other Person share items of expenses such as legal, auditing and other professional services,
such expenses will be allocated to the extent practical on the basis of actual use or the value of services rendered, and otherwise
on a basis reasonably related to the actual use or the value of services rendered;

 

(v)
The Borrower shall hold itself out as a separate entity;

 

(vi)
The Borrower’s operating expenses will not be paid by any other Person except as permitted under the terms of this
Loan Agreement;

 

(vii)
The Borrower’s books and records will be maintained separately from those of any other Person;

 

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(viii)
The Borrower shall pay its own liabilities out of its own funds;

 

(ix)
The Borrower shall not acquire any obligations or securities of its partners or shareholders;

 

(x)
All audited financial statements of any Person that are consolidated to include the Borrower will contain notes clearly
stating that (A) all of the Borrower’s assets are owned by the Borrower, and (B) the Borrower is a separate entity;

 

(xi)
The Borrower’s assets will be maintained in a manner that facilitates their identification and segregation from those
of any other Person;

 

(xii)
The Borrower will strictly observe appropriate formalities in its dealings with all other Persons, and funds or other assets
of the Borrower will not be commingled with those of any other Person, other than temporary commingling in connection with servicing
the Pledged Policies to the extent explicitly permitted by the other Transaction Documents;

 

(xiii)
The Borrower shall not, directly or indirectly, be named or enter into an agreement to be named, as a direct or contingent
beneficiary or loss payee, under any insurance policy with respect to any amounts payable due to occurrences or events related
to any other Person other than, for avoidance of doubt, life insurance policies purchased by the Borrower for investment purposes
and pledged to the Administrative Agent and the Lenders hereunder;

 

(xiv)
The Borrower shall maintain an arm’s length relationship with its Affiliates;

 

(xv)
Any Person that renders or otherwise furnishes services to the Borrower will be compensated thereby at market rates for
such services it renders or otherwise furnishes thereto. The Borrower will not hold itself out to be responsible for the debts
of any other Person; and

 

(xvi)
The Borrower will maintain all policies and procedures or take or continue to take all actions necessary or appropriate
to ensure that all factual assumptions set forth in opinions of counsel of the Borrower or its Affiliates delivered in connection
herewith or the other Transaction Documents remain true and accurate at all times.

 

(g)
Defense. The Borrower shall, in consultation with the Administrative Agent and at the Borrower’s own expense,
defend the Collateral against all lawsuits and statutory claims and Liens of all Persons at any time claiming the same or any interest
therein through the Borrower or any Affiliate thereof adverse to the Administrative Agent or the Secured Parties.

 

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(h)
Perfection. The Borrower shall, at the Borrower’s expense, perform all acts and execute all documents requested
by the Administrative Agent at any time to evidence, perfect, maintain and enforce the title or the security interest of the Administrative
Agent in the Collateral and the priority thereof. The Borrower will, at the reasonable request of the Administrative Agent, deliver
financing statements relating to the Collateral, and, where permitted by law, the Borrower hereby authorizes the Administrative
Agent to file one or more financing statements covering all of the Collateral and other assets of the Borrower. The Borrower shall
cause its primary electronic books and records relating to the Collateral to be marked, with a legend stating that the Pledged
Policies and the other Collateral owned by the Borrower have been pledged to the Administrative Agent, for the benefit of the Secured
Parties.

 

(i)
Audit. The Borrower shall, and shall cause the Servicer, the Custodian and the Parent to, permit each Lender, the
Administrative Agent or their duly authorized representatives, attorneys or auditors during ordinary business hours and upon three
(3) Business Days written notice, to visit the offices thereof and to inspect the Collateral and the Collateral Packages, and the
related accounts, records and computer systems, software and programs used or maintained by the Borrower, the Servicer, the Parent
or the Custodian, as the case may be at such times as such Lender or the Administrative Agent may reasonably request, using auditors
and/or accountants selected by such Lender or the Administrative Agent in its sole and absolute discretion (a “Collateral
Audit”) and the Borrower shall enable the Insurance Consultant to seek and receive from the related Issuing Insurance
Companies any verifications of coverage related to the Pledged Policies as often as the Administrative Agent may request the Insurance
Consultant to do so (though not more frequently than once per month unless an Event of Default or Unmatured Event of Default has
occurred and is continuing). Unless an Event of Default or an Unmatured Event of Default has occurred and is continuing, a Collateral
Audit under this Section 9.1(i) may be conducted not more frequently than once per month. The Borrower shall promptly on
demand reimburse the Administrative Agent and the Lenders for all costs and expenses incurred by or on behalf of the Administrative
Agent and the Lenders in connection with any Collateral Audit and their ongoing review and Insurance Consultant’s ongoing
review of the documents related to the Pledged Policies, including without limitation the documents on the FTP Site; provided,
however, if no Event of Default or Unmatured Event of Default has occurred and is continuing, no more than one Collateral Audit
per year shall be at the expense of the Borrower (all other Collateral Audits in a year being at the expense of the Lenders) and
the total expenses incurred by or on behalf of the Borrower related to a Collateral Audit (including any reimbursements actually
made by the Borrower to the Lenders and the Administrative Agent in connection with such Collateral Audit), a Servicer Collateral
Audit, enabling the Insurance Consultant to receive any verifications of coverage, information requests described in Section
9.1(cc) and audits conducted pursuant to Section 13.8(a)(iv), in each case, excluding any internal and third-party costs
and expenses incurred in the ordinary course by or on behalf of the Borrower, shall be limited to no more than $2,200 for each
Pledged Policy (or if such Pledged Policy is a Small Face Policy and payment of Premiums in respect of such Pledged Policy are
made on an annual basis, $500 for each such Pledged Policy) (as adjusted annually for inflation or such higher amount if such higher
amount is the Insurance Consultant’s reasonably determined prevailing market cost in the industry for such Collateral Audits
or ongoing reviews of the type in question as adjusted for changes in audit standards) during the shorter of (i) the prior twelve
(12) month period and (ii) the period of time commencing on the most recent Advance Date and ending on the date of such Collateral
Audit, verification of coverage, information request or audit, as applicable. Upon instructions from the Administrative Agent,
the Borrower shall, and shall cause the Servicer (and the Administrative Agent may cause the Custodian) to release any document
related to any Collateral to the Administrative Agent. If an Event of Default or Unmatured Event of Default has occurred and is
continuing, the Administrative Agent, at the Borrower’s expense, shall have the right to conduct a Collateral Audit at any
time and as often the Administrative Agent determines is necessary or desirable. For the avoidance of doubt, any review and evaluation
of Additional Policies conducted by the Administrative Agent or the Lenders in connection with a Borrowing Request shall not constitute
a Collateral Audit.

 

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(j)
Additional Assistance. The Borrower shall provide such cooperation, information and assistance, and prepare and supply
the Administrative Agent with such data regarding the performance by the Issuing Insurance Companies of their obligations under
the Pledged Policies and the performance by the Borrower of its obligations under the Transaction Documents, as may be reasonably
requested by the Administrative Agent from time to time.

 

(k)
Accounts. The Borrower shall not maintain any bank accounts other than the Accounts, the Policy Account and the Borrower
Account. The Borrower shall not close any of the Accounts or the Borrower Account unless the Required Lenders shall have consented
thereto in their sole and absolute discretion.

 

(l)
Keeping of Records and Books of Account. The Borrower shall maintain and implement administrative and operating procedures
(including, without limitation, an ability to recreate the documents relating to the Collateral in the event of the destruction
thereof), and keep and maintain all records and other information, reasonably necessary or reasonably advisable for the collection
of proceeds of the Pledged Policies.

 

(m)
Deposit of the Collections. The Borrower shall deposit or cause to be deposited all Collections into the Collection
Account or the Administrative Agent’s Account, as applicable, in each case, in accordance with Section 5.1.

 

(n)
Investment Company Act. The Borrower shall ensure that none of the Borrower or the Parent shall become an “investment
company” or a company “controlled” by an “investment company” within the meaning of the Investment
Company Act of 1940, as amended, by virtue of an exemption other than pursuant to Section 3(c)(1) or Section 3(c)(7) thereof. The
Borrower shall take any and all actions to ensure that it is not a “covered fund” under Section 13 of the Bank Holding
Company Act of 1956, as amended.

 

(o)
Borrower Residence. The Borrower shall at all times maintain its registered office in Delaware and its head office
in Minnesota. The Borrower shall at all times maintain its principal place of business in Minnesota.

 

(p)
Payment of Taxes. The Borrower shall pay and discharge, as they become due, all Taxes lawfully imposed upon it or
incurred by it or its properties and assets, including, without limitation, lawful claims for labor, materials and supplies which,
if unpaid might become a Lien or a charge upon any of the assets of the Borrower, including, without limitation, the Collateral,
provided, however, that the Borrower shall have the right to contest any such taxes, assessments, debts, claims and other charges
in good faith so long as adequate reserves are maintained in accordance with GAAP.

 

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(q)
Errors and Omissions. The Borrower shall maintain, at its own expense, an errors and omissions policy, each with
insurance companies rated A-, VII or higher by A.M. Best on all officers, employees or other Persons where the Borrower has
the right to direct and control such individuals in any capacity with regard to the Pledged Policies to handle documents and papers
related thereto. Each such policy shall insure against losses resulting from the errors, omissions and negligent acts of such officers,
employees and other persons and shall be maintained in an amount of at least $2,000,000 or such lower amount as the Administrative
Agent may designate in writing to the Borrower from time to time, and in a form reasonably acceptable to the Administrative Agent
and naming the Administrative Agent on behalf of the Lenders as an additional loss payee. No provision of this Section 9.1(q) requiring
such errors and omissions policy shall diminish or relieve the Borrower from its duties and obligations as set forth in this Loan
Agreement. Upon the request of the Administrative Agent at any time subsequent to the Closing Date, the Borrower shall cause to
be delivered to the Administrative Agent a certification evidencing the Borrower's coverage under such errors and omissions policy.
Any such insurance policy shall contain a provision or endorsement providing that such policy may not be canceled or modified in
a materially adverse manner without ten (10) days' prior written notice to the Administrative Agent.

 

(r)
Pledged Policies. The Borrower shall maintain the Pledged Policies in full force and effect and if any Pledged Policy
enters a “grace period”, the Borrower shall pay all Premiums due and payable with respect to such Pledged Policy and
shall restore such Pledged Policy to good standing, in each case, within six (6) Business Days after the start of such “grace
period”.

 

(s)
Further Assurances. The Borrower shall procure and deliver to the Administrative Agent and/or execute any security
agreement, financing statement or other writing requested by the Administrative Agent to evidence, preserve, protect or enforce
the Secured Parties’ rights and interests to or in the Collateral or in any other collateral agreed to by the parties.

 

(t)
Litigation. The Borrower shall promptly notify the Administrative Agent of:

 

(i)
any litigation, administrative proceedings, audits, actions, proceedings, claims or investigations pending or threatened
in writing, conducted or to be conducted by any Person or Governmental Authority, actions, proceedings, claims or investigations
pending or threatened in writing against the Borrower or the entry of any judgment against the Borrower, which in each case could
reasonably be expected to involve or create a liability of the Borrower which exceeds $25,000 per incident or $100,000 in the aggregate,
whether or not insured against;

 

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(ii)
the entry of any judgment against the Borrower or the creation of any Lien against any of the Collateral;

 

(iii)
any actual or alleged violation by the Borrower of any Applicable Law which could reasonably be expected to have an adverse
effect on any of the Pledged Policies, the business, assets, financial condition or operations of the Borrower or any of the rights
or interests of the Administrative Agent or any of the Lenders hereunder or under any other Transaction Document; and

 

(iv)
any pending or threatened litigation dispute or similar matter relating to any Pledged Policy or any other Policy owned
by an Affiliate of the Borrower that was originated in a similar manner or under a similar origination or financing program as
a Pledged Policy.

 

(u)
Loan Administration Fee. The Borrower shall pay the Loan Administration Fee for the following calendar year on the
last Distribution Date of each calendar year.

 

(v)
Insured Consent. The Borrower shall use, or shall cause the Servicer to use, commercially reasonable efforts to cause
each Insured with respect to a Pledged Policy to consent to the release and delivery of its current and historical medical information
and death certificate.

 

(w)
Servicer Documents. The Borrower shall cause the Servicer, at the request of the Administrative Agent, to provide
to the Administrative Agent all information and documentation in the possession of the Servicer with respect to the Pledged Policies
and the related Insureds.

 

(x)
Schedule of Premiums. The Borrower shall cause the Servicer to provide a schedule of Premiums due during the following
twelve (12) month period on or prior to the Calculation Date with respect to each Distribution Date.

 

(y)
In-Force Policy Illustrations. With respect to each Pledged Policy, for each calendar year, the Borrower shall use
commercially reasonable efforts to cause the applicable Issuing Insurance Company to deliver to the Administrative Agent an in-force
Policy Illustration in respect of such Pledged Policy no later than sixty (60) calendar days after the anniversary date of such
Pledged Policy.

 

(z)
Cooperation. The Borrower shall assist the Administrative Agent with, and take all actions reasonably requested by
the Administrative Agent in connection with, the engagement of servicers, medical underwriters and tracking agents and the enabling
of such parties to perform the services for which they have been retained by the Administrative Agent relating to the Pledged Policies.

 

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(aa) Collateral Assignment. Prior to the Amended and Restated Closing Date, in relation to each Policy comprising
Collateral as of the Amended and Restated Closing Date, the Borrower has permitted, and prior to each Advance Date related to an
Additional Policy Advance, the Borrower shall permit the Insurance Consultant to submit each collateral assignment in respect of
each Policy pledged on such Advance Date to the applicable Issuing Insurance Company, naming the Administrative Agent, on behalf
of the Lenders, as the collateral assignee. The Borrower shall take any and all actions necessary to ensure that each such Issuing
Insurance Company acknowledges such collateral assignment as soon as practical after such Advance Date.

 

(bb) Other Information. The Borrower shall use commercially reasonable efforts to obtain any other information
reasonably requested by the Administrative Agent with respect to the Pledged Policies and the Insureds.

 

(cc) Transaction
Documents. The Borrower shall duly and timely perform all of its covenants and obligations under all Transaction
Documents, except with the prior written consent of the Administrative Agent.

 

(dd) Purchase
Agreement. The Borrower shall enforce each of the Parent Obligations promptly, but in any event, within three (3)
Business Days of (a) if the applicable provisions of the Purchase Agreement provide for a specified cure period for such
Parent Obligations, the date of the expiration of such specified cure period and (b) if the applicable provisions of
the Purchase Agreement do not provide for a specified cure period for such Parent Obligations, the earlier of (i) the date on
which such Parent Obligations which have not been performed have first become due and (ii) the date on which the
Administrative Agent provides instruction to the Borrower to enforce such Parent Obligations.

 

(ee) Servicing
Agreement. The Borrower shall enforce each of the Servicing Agreement Obligations and the Servicing Agreement Rights
promptly, but in any event, within three (3) Business Days of (a) in the case of any Servicing Agreement Obligations, (i) if
the applicable provisions of the Servicing Agreement provide for a specified cure period for such Servicing Agreement
Obligations, the date of the expiration of such specified cure period and (ii) if the applicable provisions of the Servicing
Agreement do not provide for a specified cure period for such Servicing Agreement Obligations, the earlier of (x) the date on
which such Servicing Agreement Obligations which have not been performed have first become due and (y) the date on which the
Administrative Agent provides instruction to the Borrower to enforce such Servicing Agreement Obligations and (b) in the case
of such Servicing Agreement Rights, the date on which the Borrower becomes aware that such Servicing Agreement Rights are
enforceable.

 

Section 9.2 Negative
Covenants. Until the first day following the date on which all of the Obligations are performed and paid in full and this
Loan Agreement is terminated, the Borrower hereby covenants and agrees that it shall not:

 

(a) Assignment of Pledged Policies, Etc. Except in connection with a Permissible Sale, sell, assign (by operation
of law or otherwise) or otherwise dispose of, or create or suffer to exist, any Adverse Claim upon or with respect to, any of the
Pledged Policies or any other Collateral, including, without limitation, any Adverse Claim arising out of a Policy Loan.

 

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(b) Amendments to Transaction Documents, etc. Amend, otherwise modify or waive any term or condition of (i) any
Transaction Document or any Pledged Policy, except in each case with the prior written consent of the Required Lenders in their
sole and absolute discretion or (ii) the Borrower Organizational Documents or any other material contract other than any Transaction
Document or any Pledged Policy, except in each case with the prior written consent of the Required Lenders, such consent not to
be unreasonably withheld.

 

(c) Deposit
of Non-Collections. Deposit or otherwise credit, or cause or permit to be so deposited or credited, to the Collection
Account any cash proceeds or other assets other than Collections and other amounts allowed or required to be credited to the
Collection Account in accordance with Section 5.2.

 

(d) Indebtedness. Contract, create, incur or assume any indebtedness other than indebtedness incurred pursuant
to this Loan Agreement and the other Transaction Documents.

 

(e) Change
of Accounts. Change or cause to be changed any of the Accounts, the Policy Account, the Borrower Account or amend the
Account Control Agreement without prior written consent of the Required Lenders.

 

(f) Mergers,
Acquisitions, Sales, Subsidiaries, etc.

 

(i) Be
acquired directly or indirectly or be a party to any merger or consolidation, or directly or indirectly purchase or
otherwise acquire all or substantially all of the assets or any stock of any class of, or any partnership or joint venture
interest in, any other Person, except for Permitted Investments or sell, transfer, assign, convey or lease any of its
property and assets (or any interest therein) other than in connection with a Permissible Sale;

 

(ii) make,
incur or suffer to exist an Investment in, equity contribution to, loan or advance to, or payment obligation in respect of
the deferred purchase price of, or payment for, property from, any other Person, except for Permitted Investments, pursuant
to the Transaction Documents;

 

(iii) create any direct or indirect Subsidiary or otherwise acquire direct or indirect ownership of any equity interests
in any other Person other than pursuant to the Transaction Documents; or

 

(iv) enter
into any transaction with any Affiliate of the Borrower, the Servicer or any Affiliate of any of them except for the
transactions contemplated or permitted by the Transaction Documents and other transactions upon fair and reasonable terms
materially no less favorable to the Borrower than would be obtained in a comparable arm’s length transaction with a
Person not an Affiliate of the Borrower or the Servicer.

 

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(g) Change
in Business Policy. Make any change in the character of its business.

 

(h) Chief
Executive Office. Move its chief executive office or jurisdiction of formation or its situs or permit the documents and
books evidencing the Collateral to be moved unless (i) the Borrower shall have given to the Administrative Agent not less
than thirty (30) days’ prior written notice thereof, clearly describing the new location, and (ii) the Borrower shall
have taken such action, satisfactory to the Administrative Agent, to maintain the title or ownership of the Borrower and any
security interest of the Administrative Agent, in the Collateral at all times fully perfected and first priority (subject to
no Adverse Claims) and in full force and effect. The Borrower shall not in any event become or seek to become organized under
the laws of more than one jurisdiction.

 

(i) Business
Restrictions. Engage in any business or transactions, or be a party to any documents, agreements or instruments, other
than the Transaction Documents or those incidental to the purposes thereof, or make any expenditure for the purchase of any
assets if such expenditure is made by the Borrower through a withdrawal of funds from an Account.

 

(j) Sale
of Assets. Sell, transfer or convey any assets, except in connection with a Permissible Sale.

 

(k) Independent
Director. Remove, replace or seek to replace its Independent Director absent due cause and the express consent of the
Administrative Agent and the Required Lenders, provided, however, that no such consent shall be required for the replacement
of an Independent Director in the event that such Independent Director ceases to meet the qualifications set forth in Section
9.1(f)(ii), and such Independent Director is replaced by another employee of the Corporate Services Provider meeting all
of the qualifications set forth in Section 9.1(f)(ii).

 

(l) Further
Policy Acquisitions. Acquire at any time any additional Policies without the prior written consent of the Administrative
Agent.

 

(m) Use
of Funds/Proceeds. Without the prior written consent of the Administrative Agent, use the funds in the Reserve Account or
any proceeds arising from a sale under Section 2.7 other than pursuant to this Loan Agreement.

 

(n) Accounting
Changes. Change any accounting practices, policies or treatment without the prior written consent of the Administrative
Agent.

 

(o) Foreign
Assets Control Regulations, Etc. (i) Become or permit any of its Affiliated Entities to become a Blocked Person, (ii)
have or permit any of its Affiliated Entities to have any investments in or engage in any dealings or transactions with any
Blocked Person or (iii) violate or permit any of its Affiliated Entities to violate any Anti-Money Laundering Law.

 

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(p) Amendments
to Certain Documents. Permit any amendment or other modification or waiver to any term or condition set forth in (i) the
GWG Holdings Indenture, (ii) any Collateral Document (as defined in the GWG Holdings Indenture), (iii) the GWG Note Issuance
and Security Agreement or (iv) any other document or agreement pursuant to which the Parent pledges or purports to pledge or
that is secured by the Parent’s membership interests in the Borrower or any of the Collateral, except in each case,
with the prior written consent of the Required Lenders in their sole and absolute discretion.

 

ARTICLE
X

EVENTS OF DEFAULT; REMEDIES

 

Section 10.1 Events of Default. Each of the following shall constitute an “Event of Default” under this Loan Agreement,
unless the Required Lenders in their sole and absolute discretion shall deliver a Cure Notice to the Borrower, in which
case each of the following shall constitute an Event of Default only upon (i) the expiration of the time period set forth in such
Cure Notice or (ii) the earlier revocation of such Cure Notice by the Required Lenders in their sole and absolute discretion:

 

(a) Non-Payment.
(A) The Borrower shall (i) fail to make when due any payment to any Lender or the Administrative Agent or deposit to any of
the Accounts to be made by it under this Loan Agreement or any other Transaction Document when due, which failure shall have
continued for three (3) Business Days or (ii) fail to make when due, any payment to any Person under this Loan Agreement or
any other Transaction Document, including, without limitation, the failure to pay any Premium, which failure shall have
continued for ten (10) Business Days, or (B) any Advance is not paid in full on the Maturity Date. For the avoidance of
doubt, the Lenders making one or more Protective Advances to pay any Premiums due during such ten (10) Business Day period
shall not constitute a cure of the related Event of Default.

 

(b) Breach
of Representations and Warranties. Any representation or warranty made or deemed made by the Borrower or the Parent
under or in connection with any Transaction Document to which it is a party or any information or report delivered by or on
behalf of any such Person to the Administrative Agent or any Lender hereunder or under any other Transaction Document shall
prove to have been incorrect or untrue in any material respect when made or delivered (or when such representation, warranty,
information or report is deemed to have been made or delivered), and such failure remains unremedied for thirty (30)
days.

 

(c) Non-Compliance
with Other Provisions. Except as otherwise provided in this Section 10.1, (i) the Borrower shall fail to perform
or observe any covenant or agreement set forth in Section 9.1(n), Section 9.1(p), Section 9.1(v) or Section
9.2 (other than Section 9.2(c)), (ii) the Borrower shall fail to perform or observe any covenant or agreement in Section
9.1(cc), Section 9.1(d)(vii), Section 9.1(dd) or Section 9.1(ee) and any such failure described in
this clause (ii) shall remain unremedied for three (3) Business Days or (iii) the Borrower or the Parent shall fail to
perform or observe any other term, covenant or agreement contained in any Transaction Document to which it is party on its
part to be performed or observed and any such failure described in this clause (iii) shall remain unremedied for thirty
(30) days (or, with respect to a failure to deliver the Calculation Date Report or a failure to comply with any of Section
2.7, Section 9.1(b), Section 9.1(e), Section 9.1(f), Section 9.1(h), Section 9.1(i), Section
9.1(m) or Section 9.2(c), such failure shall remain unremedied for five (5) Business Days).

 

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(d) Non-Compliance
by Other Parties. Any party to any Transaction Document other than the Borrower, the Parent, the Lenders or the
Administrative Agent shall fail to perform or observe any term, covenant or agreement contained in this Loan Agreement or in
any other Transaction Document on its part to be performed or observed and any such failure shall remain unremedied for
thirty (30) days (or, with respect to a failure by such party to make a payment or cause a payment to be made, such failure
shall be unremedied for (i) if such failure relates to the payment of amounts to any Lender or the Administrative Agent or to
the deposit of any amounts to the Accounts pursuant to this Loan Agreement or any other Transaction Document, one (1)
Business Day or (ii) if such failure relates to the payment of amounts to any other Person, ten (10) Business Days from the
earlier of the (i) the date such Person receives notice of such failure and (ii) the date such Person has actual knowledge
thereof); provided that the Borrower and/or the Parent may remedy such failure by performing or causing to be performed such
action in place of such party prior to the expiration of the applicable cure period.

 

(e) Validity
of Transaction Documents. (i) This Loan Agreement or any other Transaction Document shall (except in accordance with its
terms), in whole or in part, cease to be the legally valid, binding and enforceable obligation of the Borrower or the Parent,
or cease to be in full force and effect, (ii) the Borrower or the Parent, shall directly or indirectly contest in any manner
such effectiveness, validity, binding nature or enforceability of such document, (iii) any other party (other than any of the
Lenders, the Administrative Agent or any other Affected Party) shall directly or indirectly contest such effectiveness,
validity, binding nature or enforceability of such document or (iv) this Loan Agreement together with the Account Control
Agreement shall cease to create a valid Lien in favor of the Administrative Agent in the Collateral, or the Lien of the
Administrative Agent in the Collateral shall cease to be a valid and enforceable first priority perfected Lien, free and
clear of any Adverse Claim.

 

(f) Bankruptcy.
An Event of Bankruptcy shall have occurred with respect to the Borrower or the Parent.

 

(g) Change
in Control. A Change in Control shall have occurred with respect to the Borrower or the Parent.

 

(h) 
Tax Liens; ERISA Liens. The Internal Revenue Service shall file notice of a Lien pursuant to the Code with
regard to any assets of the Borrower or the Parent, or the PBGC shall, or shall indicate its intention to, file notice of a Lien
pursuant to Section 4068 of ERISA with regard to any of the assets of the Borrower or the Parent in excess of $100,000; provided,
however, that in each case the filing of such a notice of Lien shall not be an Event of Default for so long as such filing is being
contested in good faith by appropriate proceedings and with respect to which adequate reserves have been set aside. Notwithstanding
anything provided in the preceding sentence, no Adverse Claim shall be permitted with respect to any Collateral.

 

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(i) Defaults. A default by the Borrower (after giving effect to the applicable grace period) shall have occurred
and be continuing under any instrument, agreement or legal commitment evidencing, securing or providing for indebtedness, following
which the provider or holder of such indebtedness has the right to accelerate the maturity thereof.

 

(j) 
Monetary Judgment. One or more judgments for the payment of money in an aggregate amount in excess of $50,000
shall be rendered against the Borrower, and shall remain unpaid or undischarged, or a stay of execution thereof shall not be obtained,
within thirty (30) days from the date of entry thereof.

 

(k) 
Material Adverse Effect. An event has occurred that has had or could reasonably be expected to have a Material
Adverse Effect.

 

(l) Servicer Termination Events. (i) A Servicer Termination Event shall have occurred and be continuing, but only
if the Servicer has not been replaced by a Successor Servicer in accordance with the terms and conditions of the Servicing Agreement
or if such Servicer Termination Event causes a Material Adverse Effect or (ii) regardless of whether a Servicer Termination Event
shall have occurred or be continuing, the Servicer shall fail to perform or observe any term, covenant or agreement contained in
any Transaction Document to which it is party on its part to be performed or observed or any representation or warranty made or
deemed made by the Servicer under or in connection with any Transaction Document to which it is a party or any information or report
delivered by or on behalf of the Servicer to the Administrative Agent or any Lender under the Servicing Agreement or under any
other Transaction Document shall prove to have been incorrect or untrue in any material respect when made or delivered (or when
such representation, warranty, information or report is deemed to have been made or delivered) and, in each case, such failure
or incorrect or untrue representation, warranty, information or report has a material adverse effect on the validity, enforceability,
collectability, Lender Valuation or Net Death Benefit of one or more Pledged Policies.

 

(m) Investment
Company Act. (i) The Borrower or the Parent shall become an “investment company” or a company
“controlled” by an “investment company” within the meaning of the Investment Company Act of 1940, as
amended, or any of the foregoing is at any time not an “investment company” or a company “controlled”
by an “investment company” within the meaning of the Investment Company Act of 1940, as amended, solely by virtue
of an exception pursuant to Section 3(c)(1) or 3(c)(7) thereof or (ii) the Issuer shall become a “covered fund”
under Section 13 of the Bank Holding Company Act of 1956, as amended.

 

(n) 
Organizational Document Amendments. The Borrower shall make any material amendment to any of the Borrower
Organizational Documents without the prior written consent of the Required Lenders, such consent not to be unreasonably withheld.

 

(o) 
Subject Policy Grace Period. Any Pledged Policy enters a “grace period” and is not restored to
good standing within ten (10) Business Days after the start of such “grace period”; provided, however, that any Pledged
Policy may be permitted to lapse with the prior written consent of the Required Lenders, in their sole and absolute discretion.

 

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(p) 
Second Initial Advance. (i) Within five (5) Business Days after the Closing Date, with respect to each Policy
that became a Pledged Policy upon the making of the Second Initial Advance, (a) the Borrower or the Parent failed to submit completed
Change Forms to the related Issuing Insurance Company, which Change Forms designated the Securities Intermediary as the new owner
and beneficiary of such Policy, or (b) the Borrower failed to deliver a fully executed entitlement order to the Securities Intermediary,
which entitlement order credits such Policy to the Policy Account, (ii) within forty-five (45) days after the Closing Date, the
Second Initial Advance was not made, (iii) the number of Subject Policies related to the Second Initial Advance was less than 140
or such Subject Policies insured the lives of less than 133 distinct Insureds or (iv) within five (5) Business Days after the date
on which any of the Borrower, the Securities Intermediary or the Administrative Agent received an Acknowledgement for each Policy
that become a Pledged Policy upon the making of the Second Initial Advance, the Borrower failed to deliver a Borrowing Request
in respect of the Second Initial Advance to the Administrative Agent pursuant to Section 2.3(b) of the Original Loan Agreement.

 

Section 10.2 Remedies.

 

(a) 
Optional Termination. Upon the occurrence and during the continuance of an Event of Default (other than an
Event of Default described in Section 10.1(f)), the Administrative Agent may, and at the request of the Required Lenders
shall, by notice to the Borrower, declare the Advances and other Obligations to be due and payable and the Lenders’ Commitments
(if not theretofore terminated) to be terminated, whereupon the full unpaid amount of all the Advances and other Obligations (including,
without limitation, any Yield Maintenance Fees payable pursuant to Section 4.2) shall be and become immediately due and
payable (and the Maturity Date shall be deemed to have occurred), without further notice, demand or presentment, and the Lenders’
Commitments shall terminate.

 

(b) 
Automatic Termination. Upon the occurrence of an Event of Default described in Section 10.1(f), the
Lenders’ Commitments shall be deemed to have been terminated automatically and the Commitment Termination Date shall be deemed
to have occurred automatically and all outstanding Advances and other Obligations (including, without limitation, any Yield Maintenance
Fees payable pursuant to Section 4.2) shall become immediately and automatically due and payable (and the Maturity Date
shall be deemed to have occurred for all of the Advances), all without presentment, demand, protest, or notice of any kind.

 

(c)  
[Reserved.]

 

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(d) 
Additional Rights and Remedies. In addition to all rights and remedies under this Loan Agreement or otherwise,
the Lenders and the Administrative Agent shall have all other rights and remedies provided under the relevant UCC and under other
Applicable Laws, which rights shall be cumulative. Without limiting the generality of the foregoing, on and after the occurrence
of an Event of Default, the Administrative Agent (on behalf of the Secured Parties and at the direction of the Required Lenders)
may without being required to give any notice (except as herein provided or as may be required by mandatory provisions of law),
sell the Collateral or any part thereof in any commercially reasonable manner at public or private sale, for cash, upon credit
or for future delivery, as directed by the Required Lenders, and at such price or prices as the Required Lenders, may deem satisfactory.
Any Lender or the Administrative Agent may participate as a bidder in any such sale and the Administrative Agent may credit bid
in such sale. The Borrower will execute and deliver such documents and take such other action as the Administrative Agent reasonably
deems necessary or advisable in order that any such sale may be made in compliance with Applicable Law. Upon any such sale, the
Administrative Agent shall have the right to deliver, assign and transfer to the purchaser thereof the Collateral so sold. Each
purchaser at any such sale shall hold the Collateral so sold to it absolutely and free from any claim or right of whatsoever kind,
including any equity or right of redemption of the Borrower which may be waived, and the Borrower, to the extent permitted by Applicable
Law, hereby specifically waives all rights of redemption, stay or appraisal which it has or may have under any law now existing
or hereafter adopted. The Administrative Agent at the direction of the Required Lenders, instead of exercising the power of sale
herein conferred upon it, may proceed by a suit or suits at law or in equity to foreclose the security interests in the Collateral
and sell the Collateral, or any portion thereof, under a judgment or decree of a court or courts of competent jurisdiction.

 

(e)  
Power of Attorney. In furtherance of the rights, powers and remedies of the Administrative Agent and the Lenders,
on and after the occurrence of an Event of Default, the Borrower hereby irrevocably appoints the Administrative Agent, its true
and lawful attorney, which appointment is coupled with an interest and is irrevocable, with full power of substitution, in the
name of the Borrower, or otherwise, for the sole use and benefit of the Administrative Agent (for the further benefit of the Secured
Parties), but at the Borrower’s expense, to the extent permitted by law and subject to the last sentence of the immediately
preceding subsection, to exercise, at any time and from time to time during the continuance of an Event of Default, all or any
of the following powers with respect to all or any of the Collateral:

 

(i) to demand, sue for, collect, receive and give acquittance for any and all monies due or to become due thereon or
by virtue thereof,

 

(ii) 
to settle, compromise, compound, prosecute or defend any action or proceeding with respect thereto,

 

(iii) to
sell, transfer, assign, seize or otherwise deal in or with the Collateral or the proceeds or avails thereof, as fully and
effectually as if the Administrative Agent was the absolute owner thereof, and

 

(iv) to extend the time of payment of any or all thereof and to make any allowance and other adjustments with reference
thereto;

 

provided that the Administrative Agent
shall give the Borrower at least ten (10) days’ prior written notice of the time and place of any public sale or the time
after which any private sale or other intended disposition of any of the Collateral is to be made. The Borrower agrees that such
notice constitutes “reasonable notification” within the meaning of Section 9-611 (or other section of similar content)
of the relevant UCC.

 

    	GWG DLP Funding IV, LLC Amended and Restated Loan and Security Agreement
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(f) Conflict of Rights. Notwithstanding anything to the contrary contained in this Loan Agreement, if at any time
the rights, powers and privileges of the Required Lenders, or the Administrative Agent following the occurrence of an Event of
Default conflict (or are inconsistent) with the rights and obligations of the Servicer, the rights, powers and privileges of the
Required Lenders, or the Administrative Agent shall supersede the rights and obligations of the Servicer to the extent of such
conflict (or inconsistency), with the express intent of maximizing the rights, powers and privileges of the Required Lenders and
the Administrative Agent following the occurrence of an Event of Default.

 

(g) 
Contract to Extend Financial Accommodations. The parties hereto acknowledge that this Loan Agreement is, and
is intended to be, a contract to extend financial accommodations to the Borrower within the meaning of Section 365(e)(2)(B) of
the Federal Bankruptcy Code (11 U.S.C. § 365(e)(2)(B)) (or any amended or successor provision thereof or any amended or successor
code).

 

(h) 
Cumulative Rights. For the avoidance of doubt, the rights and remedies granted to the Lenders or the Administrative
Agent under this Loan Agreement, any other Transaction Document, the relevant UCC or any other Applicable Law are cumulative and
not exclusive, and the exercise of any such rights and remedies will not be waived or deemed waived by any such Person merely by
the receipt of or acceptance by such Person of amounts on deposit in the Collection Account that are distributed pursuant to Section
5.2(c) of this Loan Agreement.

 

ARTICLE
XI

INDEMNIFICATION

 

Section 11.1 General Indemnity. Without limiting any other rights which any such Person may have hereunder or under Applicable
Law, the Borrower hereby agrees to indemnify each Lender and the Administrative Agent (on their own behalf and on behalf of each
of the Lenders’ and the Administrative Agent’s Affiliates and each of such entities’ respective successors, transferees,
participants and assigns and all officers, directors, shareholders, controlling persons, employees and agents of any of the foregoing)
(each of the foregoing Persons being individually called an “Indemnified Party”), forthwith on demand, from
and against any and all damages, losses, claims, liabilities and related and reasonable costs and expenses actually incurred, including
reasonable attorneys’ fees and disbursements actually incurred (all of the foregoing being collectively called “Indemnified
Amounts”) awarded against or incurred by any of them arising out of or relating to any Transaction Document or the transactions
contemplated thereby, the acceptance and administration of this Loan Agreement by such Person, any commingling of funds related
to the transactions contemplated hereby (whether or not permitted hereunder), or the use of proceeds therefrom by the Borrower,
including (without limitation) in respect of the funding of any Advance or in respect of any Policy; excluding, however, (i) Indemnified
Amounts to the extent determined by a court of competent jurisdiction to have resulted from gross negligence, fraud or willful
misconduct on the part of any Indemnified Party (BUT EXPRESSLY EXCLUDING FROM THIS CLAUSE (i), AND EXPRESSLY INCLUDING IN THE INDEMNITY
SET FORTH IN THIS SECTION 11.1, INDEMNIFIED AMOUNTS ATTRIBUTABLE TO THE ORDINARY, SOLE OR CONTRIBUTORY NEGLIGENCE OF SUCH
INDEMNIFIED PARTY, IT BEING THE INTENT OF THE PARTIES THAT, TO THE EXTENT PROVIDED IN THIS SECTION 11.1, INDEMNIFIED PARTIES
SHALL BE INDEMNIFIED FOR THEIR OWN ORDINARY, SOLE OR CONTRIBUTORY NEGLIGENCE NOT CONSTITUTING GROSS NEGLIGENCE, FRAUD OR WILLFUL
MISCONDUCT), and (ii) any Tax upon or measured by net income (except those described in Section 6.1(a)) on any Indemnified
Party; including (without limitation), however, Indemnified Amounts resulting from or relating to:

 

(i) any representation or warranty made by or on behalf of the Borrower or the Parent in any Transaction Document to
which it is a party, which was incorrect in any respect when made;

 

    	GWG DLP Funding IV, LLC Amended and Restated Loan and Security Agreement
Page 59 of 68

     

    

 

(ii) 
failure by the Borrower or the Parent to comply with any covenant made by it, or perform any obligation to be performed
by it, in any Transaction Document to which it is a party;

 

(iii) except
as expressly set forth in this Loan Agreement, the failure by the Borrower or the Parent to create and maintain in favor of
the Administrative Agent, for the benefit of the Secured Parties a valid perfected first priority security interest in the
Collateral, free and clear of any Adverse Claim;

 

(iv) the Borrower’s use of the proceeds of the Advances;

 

(v) 
the failure by the Borrower to pay when due any Taxes (including sales, excise or personal property taxes) payable
in connection with the purchase and sale of the Collateral;

 

(vi) the commingling of the Collections with other funds of the Borrower;

 

(vii) any
legal action, judgment or garnishment affecting, or with respect to, distributions on any Pledged Policy or the Transaction
Documents; and

 

(viii) any failure to comply with any Applicable Law with respect to any Pledged Policy or any other part of the Collateral.

 

If and to the extent that the foregoing
undertaking may be unenforceable for any reason, the Borrower hereby agrees to make the maximum contribution to the payment of
the amounts indemnified against in this Section 11.1 that is permissible under Applicable Law.

 

    	GWG DLP Funding IV, LLC Amended and Restated Loan and Security Agreement
Page 60 of 68

     

    

 

ARTICLE
XII

ADMINISTRATIVE AGENT

 

Section 12.1 Appointment. Each Lender hereby irrevocably designates and appoints the Administrative Agent as the agent of such
Lender under this Loan Agreement and the other Transaction Documents, and each such Lender irrevocably authorizes the Administrative
Agent, in such capacity, to take such action on its behalf under the provisions of this Loan Agreement and the other Transaction
Documents and to exercise such powers and perform such duties as are expressly delegated to the Administrative Agent by the terms
of this Loan Agreement and the other Transaction Documents, together with such other powers as are reasonably incidental thereto.
Notwithstanding any provision to the contrary elsewhere in this Loan Agreement, the Administrative Agent shall not have any duties
or responsibilities, except those expressly set forth herein, or any fiduciary relationship with any Lender, and no implied covenants,
functions, responsibilities, duties, obligations or liabilities shall be read into this Loan Agreement or any other Transaction
Document or otherwise exist against the Administrative Agent.

 

Section 12.2 Delegation
of Duties. The Administrative Agent may execute any of its duties under this Loan Agreement and the other Transaction
Documents by or through agents or attorneys-in-fact and shall be entitled to advice of counsel concerning all
matters pertaining to such duties. The Administrative Agent shall not be responsible for the negligence or misconduct of any
agents or attorneys-in-fact selected by it with reasonable care.

 

Section 12.3 Exculpatory Provisions. Neither the Administrative Agent nor any of its officers, directors, employees, agents, attorneys-in-fact
or Affiliates shall be (a) liable for any action lawfully taken or omitted to be taken by it or such Person under or in connection
with this Loan Agreement or any other Transaction Document (except for its or such Person’s own gross negligence, fraud or
willful misconduct) or (b) responsible in any manner to any of the Lenders for any recitals, statements, representations or warranties
made by the Borrower, the Parent, the Custodian, the Securities Intermediary or the Servicer or any officer thereof contained in
this Loan Agreement or any other Transaction Document or in any certificate, report, statement or other document referred to or
provided for in, or received by the Administrative Agent under or in connection with, this Loan Agreement or any other Transaction
Document or for the value, validity, effectiveness, genuineness, enforceability or sufficiency of this Loan Agreement or any other
Transaction Document or for any failure of the Borrower, the Parent, the Custodian, the Securities Intermediary or the Servicer
to perform its obligations hereunder or thereunder. The Administrative Agent shall not be under any obligation to any Lender to
ascertain or to inquire as to the observance or performance of any of the agreements contained in, or conditions of, this Loan
Agreement or any other Transaction Document, or to inspect the properties, books or records of the Borrower, the Parent, the Custodian,
the Securities Intermediary or the Servicer. The Administrative Agent shall not be required to take any action that, in its opinion
or the opinion of its counsel, may expose the Administrative Agent to liability or that is contrary to this Loan Agreement, any
other Transaction Document or Applicable Law, including for the avoidance of doubt any action that may be in violation of the automatic
stay under any Debtor Relief Law or that may affect a forfeiture, modification or termination of property of any Lender.

 

    	GWG DLP Funding IV, LLC Amended and Restated Loan and Security Agreement
Page 61 of 68

     

    

 

Section 12.4 Reliance by the Administrative Agent. The Administrative Agent shall be entitled to rely, and shall be fully protected
in relying, upon any note, writing, resolution, notice, consent, certificate, affidavit, letter, telecopy, telex, e-mail or teletype
message, statement, order or other document or conversation believed by it to be genuine and correct and to have been signed, sent
or made by the proper Person or Persons and upon advice and statements of legal counsel (including, without limitation, counsel
to the Borrower or the Servicer), independent accountants and other experts selected by the Administrative Agent. The Administrative
Agent may deem and treat each Lender as the owner of its pro rata share of the Advances for all purposes unless a written notice
of assignment, negotiation or transfer thereof shall have been filed with the Administrative Agent. The Administrative Agent shall
be fully justified in failing or refusing to take any action under this Loan Agreement or any other Transaction Document unless
it shall first receive such advice or concurrence of the Required Lenders as it deems appropriate or it shall first be indemnified
to its satisfaction by the Lenders against any and all liability and expense which may be incurred by it by reason of taking or
continuing to take any such action. Subject to the Transaction Documents, the Administrative Agent shall in all cases be fully
protected in acting, or in refraining from acting, under this Loan Agreement and the other Transaction Documents in accordance
with a request of the Required Lenders, and such request and any action taken or failure to act pursuant thereto shall be binding
upon all the Lenders and all future holders of an interest in any of the Lender Notes.

 

Section 12.5 Notice
of Default. The Administrative Agent shall not be deemed to have knowledge or notice of the occurrence of any Unmatured
Event of Default or Event of Default hereunder unless the Administrative Agent has received written notice from a Lender
referring to this Loan Agreement, describing such Unmatured Event of Default or Event of Default and stating that such
notice is a “notice of default”. In the event that the Administrative Agent receives such a notice, the
Administrative Agent shall give notice thereof to the Lenders. The Administrative Agent shall take such action, subject to
the Transaction Documents with respect to such Unmatured Event of Default or Event of Default as shall be directed by the
Required Lenders.

 

Section 12.6 Non-Reliance
on the Administrative Agent and Other Lenders. Each Lender expressly acknowledges that neither the Administrative Agent
nor any of its officers, directors, employees, agents, attorneys-in-fact or Affiliates has made any representations or
warranties to it and that no act by the Administrative Agent hereinafter taken, including any review of the affairs of the
Borrower or the Servicer, shall be deemed to constitute any representation or warranty by the Administrative Agent to any
Lender. Each Lender represents to the Administrative Agent that it has, independently and without reliance upon the
Administrative Agent or any other Lender, and based on such documents and information as it has deemed appropriate, made its
own appraisal of, and investigation into, the business, operations, property, financial and other condition and
creditworthiness of the Borrower and the Servicer and made its own decision to make its Advances hereunder and enter into
this Loan Agreement. Each Lender also represents that it will, independently and without reliance upon the Administrative
Agent or any other Lender, and based on such documents and information as it shall deem appropriate at the time, continue to
make its own credit analysis, appraisals and decisions in taking or not taking action under this Loan Agreement and the other
Transaction Documents, and to make such investigation as it deems necessary to inform itself as to the business, operations,
property, financial and other condition and creditworthiness of the Borrower and the Servicer. Except for notices, reports
and other documents expressly required to be furnished to the Lenders by the Administrative Agent hereunder, the
Administrative Agent shall not have any duty or responsibility to provide any Lender with any credit or other information
concerning the business, operations, property, condition (financial or otherwise), prospects or creditworthiness of the
Borrower or the Servicer which may come into the possession of the Administrative Agent or any of its officers, directors,
employees, agents, attorneys-in-fact or Affiliates.

 

    	GWG DLP Funding IV, LLC Amended and Restated Loan and Security Agreement
Page 62 of 68

     

    

 

Section 12.7 Indemnification.
The Lenders agree to indemnify the Administrative Agent in its capacity as such (to the extent not reimbursed by the
Borrower and without limiting the obligation of the Borrower to do so), ratably according to their outstanding Advances, from
and against any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or
disbursements of any kind whatsoever which may at any time (including, without limitation, at any time following the payment
of all of the Lender Notes) be imposed on, incurred by or asserted against the Administrative Agent in any way relating to or
arising out of, the Commitments, this Loan Agreement, any of the other Transaction Documents or any documents contemplated by
or referred to herein or therein or the transactions contemplated hereby or thereby or any action taken or omitted by the
Administrative Agent under or in connection with any of the foregoing; provided that no Lender shall be liable for the
payment of any portion of such liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses or disbursements resulting solely from the Administrative Agent’s gross negligence, fraud or willful
misconduct. The agreements in this Section 12.7 shall survive the payment of all of the Lender Notes and all other
amounts payable hereunder and the termination of this Loan Agreement.

 

Section 12.8 The
Administrative Agent in Its Individual Capacity. The Administrative Agent and its Affiliates may make loans to, accept
deposits from and generally engage in any kind of business with the Borrower or the Servicer or any of their Affiliates as
though the Administrative Agent were not the Administrative Agent hereunder and under the other Transaction Documents. With
respect to Advances made or renewed by it, the Administrative Agent shall have the same rights and powers under this Loan
Agreement and the other Transaction Documents as any Lender and may exercise the same as though it were not the
Administrative Agent, and the terms “Lender” and “Lenders” shall include the Administrative Agent in
its individual capacity.

 

Section 12.9 Successor
Administrative Agent. The Administrative Agent may resign as the Administrative Agent upon twenty (20) days’
notice to the Lenders effective upon the appointment of a successor agent. If the Administrative Agent shall resign as the
Administrative Agent under this Loan Agreement and the other Transaction Documents, then the Required Lenders shall appoint a
successor agent for the Lenders, which successor agent shall be the initial Administrative Agent, an Affiliate of either the
outgoing Administrative Agent or the initial Administrative Agent or a commercial bank organized under the laws of the United
States of America or any State thereof or under the laws of another country which is doing business in the United States of
America and, if such successor agent is not the initial Administrative Agent, an Affiliate of either the outgoing
Administrative Agent or the initial Administrative Agent, together with its Affiliates, having a combined capital, surplus
and undivided profits of at least $100,000,000, whereupon such successor agent shall succeed to the rights, powers and duties
of the Administrative Agent, and the term “Administrative Agent” shall mean such successor agent effective upon
such appointment and approval, and the former Administrative Agent’s rights, powers and duties as the Administrative
Agent shall be terminated, without any other or further act or deed on the part of such former Administrative Agent or any of
the parties to this Loan Agreement or any holders of an interest in any of the Lender Notes. After any retiring
Administrative Agent’s resignation as the Administrative Agent, all of the provisions of this Article XII shall inure
to its benefit as to any actions taken or omitted to be taken by it while it was the Administrative Agent under this Loan
Agreement and the other Transaction Documents.

 

    	GWG DLP Funding IV, LLC Amended and Restated Loan and Security Agreement
Page 63 of 68

     

    

 

ARTICLE
XIII

MISCELLANEOUS

 

Section 13.1 Amendments,
Etc. No amendment or waiver of, or consent to the Borrower’s departure from, any provision of this Loan Agreement
shall be effective unless it is in writing and signed by the Borrower and the Administrative Agent, with the written consent
of the Required Lenders (or, in the case of any amendment, waiver or consent that would result in a decrease in the interest
rate on any Advance, the extension of the Commitment Termination Date, a reduction in the principal amount of any Advance, an
extension of time to make any payment of principal or interest on any Advance, or a release of all or any of the Collateral
(other than as expressly contemplated hereunder), by each Affected Party), and then such amendment, waiver or consent shall
be effective only in the specific instance and for the specific purpose for which it was given.

 

Section 13.2 Notices,
Etc. All notices, directions, instructions, demands and other communications provided for hereunder shall, unless
otherwise stated herein, be in writing (including electronic mail communication) and sent to each party entitled thereto, at
its address set forth on Schedule 13.2, or at such other address as shall be designated by such party in a written notice
to the other parties hereto. All such notices, directions, instructions, demands and communications shall be effective: (a)
if sent by overnight courier, on the Business Day after the day sent, (b) if by U.S. mail, three (3) Business Days after
being deposited in the mail, (c) if delivered personally, when delivered, and (d) if sent by electronic mail, when the sender
thereof shall have received electronic confirmation of the transmission thereof (provided that should such day not be a
Business Day, on the next Business Day), except any such notice, direction, demands or other communications to the
Administrative Agent shall only be effective upon actual receipt.

 

Section 13.3 No Waiver; Remedies. No failure on the part of any Lender or the Administrative Agent to exercise, and no delay in
exercising, any right hereunder or under any Transaction Document shall operate as a waiver thereof; nor shall any single or partial
exercise of any right hereunder preclude any other or further exercise thereof or the exercise of any other right. The remedies
herein provided are cumulative and not exclusive of any remedies provided by law. For the avoidance of doubt, the execution by
the Lenders and the Administrative Agent of this Loan Agreement shall not operate as a waiver of any breach by the Borrower of
any of its representations, warranties or obligations under the Original Loan Agreement or the other Transaction Documents.

 

    	GWG DLP Funding IV, LLC Amended and Restated Loan and Security Agreement
Page 64 of 68

     

    

 

Section 13.4 Binding
Effect; Assignability; Term. This Loan Agreement shall be binding upon and inure to the benefit of the Borrower, each
Lender and the Administrative Agent, and their respective successors and assigns, except that no party shall have the
right to assign any of their respective rights, or to delegate any of their respective duties and obligations, hereunder
without the prior written consent of the other parties except as set forth below. Any Lender may assign all or any portion of
its Lender Note, Commitment and Advances hereunder pursuant to an assignment and assumption agreement in substantially the
form attached hereto as Exhibit C (each, an “Assignment and Assumption Agreement”) or sell participation
interests in its Advances and Obligations hereunder. This Loan Agreement shall create and constitute the continuing
obligation of the parties hereto in accordance with its terms, and shall remain in full force and effect until such time as
the Commitments have terminated and all the principal of and interest on the Advances and all other Obligations are paid in
full; provided that rights and remedies of the Lenders and the Administrative Agent, as applicable, under Article XI
and Section 3.1, Section 3.3 and Section 13.8 shall survive any termination of this Loan Agreement. Each
Indemnified Bank Person shall be an express third-party beneficiary of Section 5.2 of this Loan Agreement and shall be
entitled to bring any action necessary to enforce its rights thereunder.

 

Section 13.5 GOVERNING
LAW; JURY TRIAL. (a) THIS LOAN AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE
OF NEW YORK APPLICABLE TO CONTRACTS MADE AND TO BE PERFORMED IN SUCH STATE, EXCLUDING CHOICE OF LAW PRINCIPLES OF THE LAW OF
SUCH STATE THAT WOULD REQUIRE THE APPLICATION OF THE LAWS OF A JURISDICTION OTHER THAN SUCH STATE.

 

(b) 
EACH OF THE PARTIES HERETO HEREBY WAIVES ANY RIGHT TO HAVE A JURY PARTICIPATE IN RESOLVING ANY DISPUTE, WHETHER SOUNDING
IN CONTRACT, TORT OR OTHERWISE ARISING OUT OF, CONNECTED WITH, RELATING TO OR INCIDENTAL TO THE TRANSACTIONS CONTEMPLATED BY THIS
LOAN AGREEMENT OR THE OTHER TRANSACTION DOCUMENTS.

 

Section 13.6 Execution
in Counterparts. This Loan Agreement may be executed in any number of counterparts and by different parties hereto in
separate counterparts, each of which when so executed shall be deemed to be an original and all of which when taken together
shall constitute one and the same agreement. Delivery of an executed counterpart of this Loan Agreement by facsimile or
transmitted electronically in either Tagged Image File Format (“TIFF”) or Portable Document Format
(“PDF”) shall be equally effective as delivery of a manually executed counterpart hereof. Any party delivering an
executed counterpart of this Loan Agreement by facsimile, TIFF or PDF shall also deliver a manually executed counterpart
hereof, but failure to do so shall not affect the validity, enforceability, or binding effect of this Loan Agreement.

 

Section 13.7 Submission to Jurisdiction. Each party hereto hereby submits to the exclusive jurisdiction of the courts of the State
of New York and of any Federal court located in the State of New York (or any appellate court from any thereof) in any action or
proceeding arising out of or relating to this Loan Agreement or the transactions contemplated hereby. Each party hereto hereby
irrevocably waives any objection that it may have to the laying of venue of any such proceeding and any claim that any such proceeding
has been brought in an inconvenient forum.

 

    	GWG DLP Funding IV, LLC Amended and Restated Loan and Security Agreement
Page 65 of 68

     

    

 

Section 13.8 Costs
and Expenses. In addition to its obligations under Section 3.3 and Article XI, the Borrower agrees to pay on
demand:

 

(a) 
all reasonable and actual costs and expenses incurred by the Administrative Agent and each Lender in connection with
(i) the preparation, execution, delivery, administration and enforcement of, or any actual or claimed breach of or any amendments,
waivers or consents under or with respect to, this Loan Agreement, the Lender Notes and the other Transaction Documents (whether
or not such amendment, waiver or consent becomes effective), including, without limitation, the reasonable fees and expenses of
counsel to any of such Persons actually incurred in connection therewith, (ii) the perfection of Administrative Agent’s security
interest in the Collateral, (iii) the maintenance of the Accounts, the Policy Account and the Borrower Account, and (iv) subject
to Section 9.1(i), the audit of the books, records and procedures of the Servicer or the Borrower by the Administrative
Agent’s auditors (which may be employees of the Administrative Agent), and

 

(b) 
all stamp and other Taxes and fees payable or determined to be payable in connection with the execution, delivery,
filing and recording of this Loan Agreement, the Lender Notes or the other Transaction Documents, and agrees to indemnify each
Indemnified Party against any liabilities with respect to or resulting from any delay in paying or omission to pay such Taxes and
fees.

 

Section 13.9 Severability of Provisions. If any one or more provisions of this Loan Agreement shall for any reason be held invalid,
then such provisions shall be deemed severable from the remaining provisions of this Loan Agreement and shall in no way affect
the validity or enforceability of other provisions of this Loan Agreement.

 

Section 13.10 ENTIRE AGREEMENT. THIS LOAN AGREEMENT AND THE OTHER TRANSACTION DOCUMENTS EXECUTED AND DELIVERED HEREWITH REPRESENT
THE FINAL AGREEMENT BETWEEN THE PARTIES HERETO AND THERETO AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR
SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS AMONG THE PARTIES.

 

Section 13.11 Conflicts. With respect to the matters set forth herein, in the event of any conflict between the provisions of this
Loan Agreement and the provisions of any collateral assignment related to a Pledged Policy, the provisions of this Loan Agreement
shall govern and control.

 

    	GWG DLP Funding IV, LLC Amended and Restated Loan and Security Agreement
Page 66 of 68

     

    

 

Section 13.12 Confidentiality.
No party to this Loan Agreement that receives any Confidential Information (the “Receiving Party”) from
any other party (the “Disclosing Party”) under this Loan Agreement or any other Transaction Document shall
disclose any Confidential Information of the Disclosing Party to any Person without the consent of the Disclosing Party,
other than (a) to the Servicer, the Securities Intermediary, the Custodian and the Receiving Party’s Affiliates and its
and their respective officers, directors, employees, trustees, agents and advisors (collectively, its
“Representatives”) and to actual or prospective assignees under Section 13.4, and then only on a
confidential basis, (b) as required by any law, rule or regulation or judicial process, including any requirements to make
disclosures thereof pursuant to applicable securities laws, (c) as requested or required by any state, Federal or foreign
authority or examiner (including the National Association of Insurance Commissioners or any similar organization or
quasi-regulatory authority) regulating the Receiving Party, the Servicer, the Securities Intermediary, the Custodian and/or
their respective Affiliates, (d) to any rating agency when required by it, provided that, prior to any such disclosure, such
rating agency shall undertake to preserve the confidentiality of any Confidential Information relating to the Disclosing
Party received by it from the Receiving Party, (e) in connection with any litigation or proceeding to which the Receiving
Party, the Servicer, the Securities Intermediary, the Custodian and/or their respective Affiliates may be a party, (f) in
connection with the exercise of any right or remedy under this Loan Agreement or any other Transaction Document, and any
related or subsequent sale or other transaction involving any of the Collateral or other collateral or assets
pledged pursuant to any Transaction Document to secure the repayment of the Advances or (g) if any such Confidential
Information becomes publicly available so long as such availability is not caused by the Receiving Party or any of its
Affiliates or any of their respective officers, directors, employees, trustee, agents and advisors. Notwithstanding the
foregoing, it is expressly agreed that following the Closing Date and the date hereof, the Lenders may make or cause to be
made a press release, public announcement or publicity statement (including placing a “tombstone” advertisement)
relating to this Loan Agreement; provided that the parties hereto will consult with each other regarding the content and
timing of any such press release, public announcement or publicity statement.

 

Section 13.13 Limitation
on Liability. TO THE EXTENT PERMITTED BY APPLICABLE LAW, AND NOTWITHSTANDING ANY OTHER PROVISION OF THIS LOAN AGREEMENT
OR THE OTHER TRANSACTION DOCUMENTS, THE ADMINISTRATIVE AGENT, THE LENDERS OR ANY INDEMNIFIED PARTY SHALL NOT BE LIABLE TO ANY
PARTY FOR ANY INDIRECT, SPECIAL, PUNITIVE OR CONSEQUENTIAL DAMAGES IN CONNECTION WITH THEIR RESPECTIVE ACTIVITIES RELATED TO
THIS LOAN AGREEMENT, THE OTHER TRANSACTION DOCUMENTS, THE TRANSACTIONS CONTEMPLATED THEREBY, THE LENDER NOTES, THE ADVANCES
OR OTHERWISE IN CONNECTION WITH THE FOREGOING. WITHOUT LIMITING THE FOREGOING, THE PARTIES AGREE THAT THE ADMINISTRATIVE
AGENT, THE LENDERS OR ANY INDEMNIFIED PARTY SHALL NOT BE SUBJECT TO ANY EQUITABLE REMEDY OR RELIEF, INCLUDING SPECIFIC
PERFORMANCE OR INJUNCTION ARISING OUT OF OR RELATING TO THIS LOAN AGREEMENT, THE OTHER TRANSACTION DOCUMENTS, OR THE
TRANSACTIONS CONTEMPLATED THEREBY. NOTWITHSTANDING ANYTHING HEREIN TO THE CONTRARY, IN NO EVENT SHALL LENDERS’
LIABILITY FOR FAILURE TO FUND ANY ADVANCE EXCEED THE AMOUNT OF SUCH ADVANCE AND ONE MILLION DOLLARS ($1,000,000) IN AGGREGATE
FOR ALL ADVANCES, AND IN FURTHER LIMITATION OF THE LENDERS’ LIABILITY ARISING OUT OF THIS LOAN AGREEMENT, IN NO EVENT
SHALL LENDERS’ LIABILITY ARISING OUT OF THIS LOAN AGREEMENT FOR ANY REASON WHATSOEVER EXCEED ONE MILLION DOLLARS
($1,000,000) IN AGGREGATE FOR ALL SUCH LIABILITIES.

 

Section
13.14 Relationship of Parties.
Notwithstanding that Advances made from time to time hereunder may be used to pay Ongoing Maintenance Costs, the relationship
of each Secured Party and the Borrower is solely one of lender and borrower and this Loan Agreement does not constitute a
partnership, tenancy-in-common, joint tenancy or joint venture between any of the Secured Parties and the Borrower, nor does
this Loan Agreement create an agency or fiduciary relationship between any of the Secured Parties and the Borrower. The
Borrower is not the representative or agent of any of the Secured Parties and no Secured Party is a representative or
agent of the Borrower. The parties hereto intend that the relationship among them shall be solely that of creditor and
debtor. No Secured Party shall in any way be responsible or liable for the debts, losses, obligations or duties of the
Borrower.

 

[REMAINDER OF
PAGE INTENTIONALLY LEFT BLANK]

 

    	GWG DLP Funding IV, LLC Amended and Restated Loan and Security Agreement
Page 67 of 68

     

    

 

IN WITNESS WHEREOF,
the parties have caused this Amended and Restated Loan and Security Agreement to be executed by their respective officers thereunto
duly authorized as of the day and year first above written.

 

	 	GWG DLP FUNDING IV, LLC,
	 	as Borrower
	 	 
	 	By:	/s/ Jon Sabes
	 	Name:	Jon Sabes
	 	Title:	President

 

	 	CLMG CORP., 
	 	as Administrative Agent
	 	 
	 	By:	/s/ James Erwin
	 	Name:	James Erwin
	 	Title:	President

 

	 	LNV CORPORATION, 
	 	as Lender
	 	 
	 	By:	/s/ Jacob Cherner
	 	Name:	Jacob Cherner
	 	Title:	Executive Vice President

  

    	GWG DLP Funding IV, LLC Amended and Restated Loan and Security Agreement
Page 68 of 68

     

    

 

ANNEX I

LIST OF DEFINED TERMS

 

“21st Services”
means 21st Holdings, LLC and its Affiliates and their respective successors.

 

“Account Control
Agreement” means the Securities Intermediary Agreement, dated as of September 14, 2016, among the Borrower, the Administrative
Agent, the Securities Intermediary, the Custodian and the Servicer, specifying the rights of the parties in the Accounts, the Policy
Account and the Borrower Account, as the same may be amended, supplemented or otherwise modified from time to time in accordance
with the Transaction Documents.

 

“Accounts”
means the Collection Account, the Reserve Account and the Payment Account, collectively.

 

“Acknowledgement”
means, with respect to any Policy, a written acknowledgement from the related Issuing Insurance Company confirming that the records
of the Issuing Insurance Company name the Securities Intermediary as the owner and beneficiary of the applicable Policy.

 

“Additional
Closing Fee” means with respect to the first Advance on or following the Amended and Restated Closing Date, a fee in
an amount equal to (i) the amount of the Facility Limit and (ii) one percent (1.00%).

 

“Additional
Policies” means Policies to be acquired by the Borrower with the proceeds of an Additional Policy Advance and/or to be
pledged to the Administrative Agent for the benefit of the Lenders in connection with an Additional Policy Advance.

 

“Additional
Policy Advance” shall mean an Advance other than the Initial Advance pursuant to which Additional Policies are pledged
to the Administrative Agent under the Loan Agreement, including, without limitation, the Advance to be made on the Amended and
Restated Closing Date.

 

“Additional
Policy Advance Amount” with respect to any Additional Policy Advance, shall mean the amount specified in the related
Additional Policy Advance Acceptance.

 

“Additional
Policy Advance Acceptance” has the meaning set forth in Section 2.3(d) of the Loan Agreement.

 

“Administrative
Agent” means CLMG Corp., as Administrative Agent under the Loan Agreement.

 

“Administrative
Agent’s Account” has the meaning set forth in Section 4.3 of the Loan Agreement.

 

“Advance”
means the Initial Advance, an Additional Policy Advance, a Protective Advance or an Ongoing Maintenance Advance, as applicable,
and collectively, the “Advances”.

 

     

     

    

 

“Advance Date”
shall mean any date on which an Advance is funded by the Lenders pursuant to the terms of the Loan Agreement, which may be the
Closing Date, the date of the funding of the Second Initial Advance, any Subsequent Advance Date, including, without limitation,
the Amended and Restated Closing Date, or the date the Lenders fund any Protective Advance in their sole discretion.

 

“Adverse Claim”
means a Lien, security interest, pledge, charge or encumbrance, or similar right or claim of any Person, other than Liens in favor
of (i) the Administrative Agent pursuant to the Transaction Documents or (ii) in the case of a Retained Death Benefit Policy, an
original owner, insured or seller or any family member of any of the foregoing of a Pledged Policy or Subject Policy, but only
to the extent of the portion of the death benefit retained by or in favor of such Person.

 

“Affected Party”
means each Lender, any permitted assignee of any Lender, and any holder of a participation interest in the rights and obligations
of any Lender, the Administrative Agent and any Affiliate of any of the foregoing.

 

“Affiliate”
means, with respect to any Person, any other Person that (i) directly or indirectly controls, is controlled by or is under common
control with such Person or (ii) is an officer or director of such Person. A Person shall be deemed to be “controlled by”
another Person if such other Person possesses, directly or indirectly, power (a) to vote five percent (5%) or more of the securities
(on a fully diluted basis) having ordinary voting power for the election of directors or managing partners of such Person, or (b)
to direct or cause the direction of the management and policies of such Person whether by contract or otherwise. The word “Affiliated”
has a correlative meaning.

 

“Affiliated
Entity” means any Subsidiary of the Borrower and any of its or the Borrower’s Affiliates.

 

“Alternative
Information Notice” has the meaning set forth in Section 5.2(a) of the Loan Agreement.

 

“A.M. Best”
means A.M. Best Company, Inc. and any successor or successors thereto.

 

“Amended and
Restated Closing Date” means September 27, 2017.

 

“Annual Budget”
has the meaning specified in Section 9.1(d)(vi) of the Loan Agreement.

 

“Anti-Money
Laundering Laws” has the meaning set forth in Section 8.1(v)(iii) of the Loan Agreement.

 

“Applicable
Law” means, as to any Person or any matter, any law (statutory or common), treaty, rule or regulation or determination
of an arbitrator or of any nation or government, any state or other political subdivision thereof, any central bank (or similar
monetary or regulatory authority) thereof, any entity exercising executive, legislative, judicial, regulatory or administrative
functions of or pertaining to government, and any corporation or other entity owned or controlled, through stock or capital ownership
or otherwise, by any of the foregoing, in each case applicable to or binding upon such Person (or any of its property) or such
matter, or to which such Person (or any of its property) or such matter is subject, including, without limitation, any laws relating
to assignments of contracts, life settlements, viatical settlements, insurance, consumers and consumer protection, usury, truth-in-lending,
fair credit reporting, equal credit opportunity, federal and state securities or “blue sky” laws, the Federal Trade
Commission Act and ERISA and in the case of Section 6.3 of the Loan Agreement, FATCA.

 

    	 	I-2	 

     

    

 

“Applicable
Margin” means seven and one half percent (7.50%).

 

“Assignment
and Assumption Agreement” has the meaning set forth in Section 13.4 of the Loan Agreement.

 

“Available
Amount” means, with respect to any Distribution Date, the amount on deposit in the Collection Account.

 

“AVS”
means AVS Underwriting, LLC and its successors.

 

“Base Rate”
means, for any date of determination, the greater of (a) the sum of (i) the Federal Funds Rate on such date plus (ii) one and a
half percent (1.50%), (b) the Prime Rate on such date and (c) one and a half percent (1.50%).

 

“Blocked Person”
has the meaning set forth in Section 8.1(v)(i) of the Loan Agreement.

 

“Borrower”
has the meaning set forth in the recitals to the Loan Agreement.

 

“Borrower Account”
has the meaning set forth in Section 5.1(d) of the Loan Agreement.

 

“Borrower Failure
Procedures” has the meaning set forth in Section 5.2(a) of the Loan Agreement.

 

“Borrower Organizational
Documents” means the certificate of formation filed on May 18, 2016 with the office of the Delaware Secretary of State,
and the LLC Agreement, each as the same may be amended, supplemented or otherwise modified from time to time in accordance with
the Transaction Documents.

 

“Borrower Valuation”
has the meaning set forth in Section 7.5(b) of the Loan Agreement.

 

“Borrowing
Base” means, on any date of determination, the lesser of: (A) the sum of all of the following amounts that have been
funded or are to be funded through the succeeding Distribution Date (i) the Initial Advance and all Additional Policy Advances,
plus (ii) one-hundred percent (100%) of the sum of the Ongoing Maintenance Costs, plus (iii) one-hundred percent (100%) of any
other Fees and Expense Deposits and other fees and expenses funded and to be funded as approved by the Required Lenders in their
sole discretion, less (iv) the aggregate of all amounts previously paid by the Borrower to the Administrative Agent, for the account
of the Lenders, in respect of principal on the Advances and any repayment of principal on the Advances to be paid pursuant to the
Priority of Payments on the immediately succeeding Distribution Date; (B) sixty percent (60%) of the Lender Valuation of the Pledged
Policies; (C) forty-five percent (45%) of the aggregate face amount of the Pledged Policies (other than the Excluded Policies);
and (D) the Facility Limit.

 

    	 	I-3	 

     

    

 

“Borrowing
Base Certificate” means a certificate in the form of Exhibit F to the Loan Agreement.

 

“Borrowing
Request” has the meaning set forth in Section 2.2(a) of the Loan Agreement.

 

“Business Day”
means any day on which commercial banks in any of New York, New York, Wilmington, Delaware, Salt Lake City, Utah or Minneapolis,
Minnesota, are not authorized or are not required to be closed. Notwithstanding the immediately preceding sentence, with respect
to any funding obligations of the Lenders under the Loan Agreement, Business Day shall mean any day on which the Federal Reserve
Bank of New York is open for business.

 

“Calculation
Date” means the tenth (10th) day following March 31, June 30, September 30 or December 31 of each year, as applicable,
beginning on September 30, 2016, or if such day is not a Business Day, the next succeeding Business Day.

 

“Calculation
Date Report” has the meaning set forth in Section 5.2(a) of the Loan Agreement.

 

“Cash Sweep”
has the meaning set forth in Section 5.2(b) of the Loan Agreement.

 

“Change in
Control” means a change or series of changes resulting when (i) the Borrower or the Parent, as applicable, merges or
consolidates with any other Person or permits any other Person to become the successor to its business, and the Borrower or the
Parent, as applicable, is not the surviving entity after such merger, consolidation or succession, other than as expressly permitted
by the Transaction Documents, (ii) the Borrower or the Parent, as applicable, conveys, transfers or leases substantially all
of its assets as an entirety to another Person, other than as expressly permitted by the Transaction Documents or (iii) any Person
shall become the owner, directly or indirectly, beneficially or of record, of equity representing more than fifty percent (50%)
of the aggregate ordinary voting power represented by the issued and outstanding equity of the Borrower or the Parent.

 

“Change Forms”
means, with respect to any Policy, all documents required by the applicable Issuing Insurance Company to be executed by the Borrower
(or the Securities Intermediary, as owner thereof for the benefit of the Borrower or the Administrative Agent as secured party
pursuant to the Account Control Agreement) to effect change of ownership of and designation of a new owner and beneficiary under
such Policy.

 

“Claims”
has the meaning set forth in the Account Control Agreement.

 

“Closing Date”
means September 14, 2016.

 

“Closing Fee”
means, with respect to the First Initial Advance, a fee in an amount equal to the product of (i) $172,300,000 and (ii) two percent
(2.00%).

 

“Code”
means the Internal Revenue Code of 1986, as amended, or any successor statute.

 

    	 	I-4	 

     

    

 

“Collateral”
has the meaning set forth in Section 2.6(a) of the Loan Agreement.

 

“Collateral
Audit” has the meaning set forth in Section 9.1(i) in the Loan Agreement.

 

“Collateral
Package” means all files related to the Policies, including but not limited to, the Sale Documents and all Policy files
related to the purchase or acquisition of each Policy (which shall include the most recent Policy Illustrations, Life Expectancy
estimates, the Physicians Competency Statement and medical records available to the Borrower), all documents set forth on Exhibit
M to the Account Control Agreement and any other documents or data as requested by the Administrative Agent.

 

“Collection
Account” has the meaning set forth in Section 5.1(a) of the Loan Agreement.

 

“Collections”
means, collectively, all payments made by or on behalf of the Issuing Insurance Companies or any other Person in respect of the
Policies, including without limitation, all Liquidation Proceeds, all proceeds of Policy Loans or withdrawals of cash surrender
value and any proceeds of any other Collateral (including any proceeds of a sale pursuant to Section 2.7 of the Loan Agreement,
which proceeds shall be deposited in the Administrative Agent’s Account pursuant to Section 4.1(b) of the Loan Agreement),
whether in the form of cash, checks, wire transfers, electronic transfers or any other form of cash payment.

 

“Commitment”
means, with respect to any Lender, the maximum amount that may be advanced by such Lender under the Loan Agreement as specified
in Schedule 2.1(a) to the Loan Agreement as the same is amended pursuant to any Assignment and Assumption Agreement.

 

“Commitment
Termination Date” means the earliest to occur of: (i) the Scheduled Commitment Termination Date, and (ii) the effective
date on which the Lenders’ Commitment is terminated following the occurrence of an Event of Default not cured within any
applicable cure period, as described in Section 10.2 of the Loan Agreement.

 

“Confidential
Information” means the terms and conditions of the Loan Agreement and the other Transaction Documents and the transactions
contemplated hereby and thereby, including (i) any term sheets, loan applications or other documents related to the Loan Agreement
or the Transaction Documents and (ii) any copies of such documents or any portions thereof.

 

“Corporate
Services Provider” means Lord Securities Corporation.

 

“Covered Taxes”
means Taxes, now or hereafter imposed, levied, collected, withheld or assessed by any Governmental Authority or other taxing authority
excluding, in the case of the Administrative Agent and each Lender, net income taxes imposed on the Administrative Agent or such
Lender by the jurisdiction under the laws of which the Administrative Agent or such Lender is organized or any political subdivision
or taxing authority thereof or therein.

 

“Cure Notice”
means a written notice from the Required Lenders to the Borrower indicating that the Required Lenders are granting the Borrower
a cure period not exceeding ninety (90) days in order to cure an occurrence that would otherwise constitute an Event of Default.

 

    	 	I-5	 

     

    

 

“Custodial
Package” shall mean with respect to a Policy, collectively, the documents set forth on Exhibit M to the Account Control
Agreement.

 

“Custodian”
means Wells Fargo, together with its successors and assigns, solely in its capacity as Custodian under the Account Control Agreement.

 

“Debt Service”
means, for any period, the sum of (i) the Required Amortization and (ii) the interest accrued and that will accrue on the Advances
during such period.

 

“Default Rate”
means, in the event that an Event of Default has occurred and is continuing, the interest rate per annum at which each Loan shall
bear interest, equal to the sum of (i) the greater of (A) LIBOR or, if LIBOR is unavailable, (B) the Base Rate, plus (ii) nine
and one half percent (9.50%).

 

“Deficiency
Claim Amount” has the meaning set forth in Section 5.1(b) of the Loan Agreement.

 

“Disclosing
Party” has the meaning set forth in Section 13.12 of the Loan Agreement.

 

“Distribution
Date” means the fifth day after each Calculation Date, beginning in October 2016, or if such day is not a Business Day,
the next succeeding Business Day.

 

“Dollar”
and the sign “$” shall mean lawful money of the United States of America.

 

“Eligibility
Criteria” with respect to any Policy, means the following criteria, which are to be satisfied as of the Advance Date
as of which such Policy becomes a Pledged Policy:

 

(a) The Securities
Intermediary is designated as the “owner” and “beneficiary” under the Policy by the Issuing Insurance Company.

 

(b) The Policy
is (i) a single life or survivorship policy, (ii) a fixed or variable universal life, whole life, or convertible term (provided
such Policy is converted to a “permanent” life insurance policy prior to becoming a Pledged Policy), (iii) denominated
and payable in U.S. Dollars and (iv) issued by a U.S. domiciled insurance company.

 

(c) Each Insured
is a United States citizen or permanent resident alien currently residing in the United States as of the date the Policy was acquired
by the Borrower, and has documented social security information and photographic identification.

 

(d) Each Insured
shall be an individual seventy (70) years old or older.

 

(e) The Policy
shall be in full force.

 

    	 	I-6	 

     

    

 

(f) The Issuing
Insurance Company shall have (i) a financial strength rating of “A-” or better from A.M. Best or (ii) a financial strength
rating of less than “A-” from A.M. Best that is approved by the Required Lenders in their sole and absolute discretion.

 

(g) Medical
underwriting as to Life Expectancy shall be conducted with respect to each Insured under the Policy by at least two Pre-Approved
Medical Underwriters; in addition:

 

(i) an average
Life Expectancy for each Insured under the Policy shall be calculated, which shall equal the average (arithmetic mean) of the two
(2) Life Expectancies provided by the Pre-Approved Medical Underwriters with respect to such Insured;

 

(ii) (x) LE
Reports must not be dated more than six (6) months prior to the related Advance Date and (y) must be based on medical records obtained
from the Insured that are not older than twelve (12) months as of the related Advance Date; and

 

(iii) for each
Insured, the results reported in the two LE Reports used to calculate the average Life Expectancy in (g)(i) above must not differ
by more than thirty percent (30%) of the longer Life Expectancy or twelve (12) months, whichever is greater.

 

(h) Each Insured
under the Policy must have an average Life Expectancy (determined in accordance with clause (g)(i) above) of no more than one-hundred
eighty (180) months.

 

(i) The Policy
covering the life of an individual Insured shall not have a face amount of less than $70,000 or greater than $10.0 million, except
as otherwise approved in writing by the Required Lenders.

 

(j) The Policy
is beyond all relevant policy or statutory contestability and suicide periods, including from the date of any conversion of such
Policy, if applicable.

 

(k) There must
not be any outstanding Policy Loans or Liens outstanding in respect of the Policy, except for outstanding internal Policy Loans
for the payment of premiums on the Policy, if any, or, if such Policy is a Retained Death Benefit Policy, any Liens identified
in clause (ii) of the definition of “Adverse Claim,” and, in each case, that will be fully reflected in the pricing
analysis and calculation, nor any other pledge or assignment outstanding on the Policy.

 

(l) The life
expectancy reflected in the LE Report used to determine the Lender Valuation with respect to the related Advance is not less than
twenty-four (24) months from the date of such Advance.

 

    	 	I-7	 

     

    

 

(m) The Policy
and the legal and beneficial interests in the death benefit (taking into account the portion of the death benefit payable to a
Person other than the Securities Intermediary who is designated as the “beneficiary” under a Retained Death Benefit
Policy and previously disclosed in writing to, and approved in writing by, the Administrative Agent) shall be capable of being
sold, transferred and conveyed to the Borrower and its successors, assigns and designees, and the seller thereof to the Borrower
shall have the right to do so, and, all related settlement contract documents and any tracking/servicing/custodial rights shall
be fully assignable and transferable to the Borrower and its successors, assigns and designees or as otherwise directed by the
Borrower.

 

(n) Each Insured’s
primary diagnosis leading to the Life Expectancy evaluation(s) must not be HIV or AIDS.

 

(o) The Policy
shall not be purchased from a seller to which applicable state laws prohibiting the purchase or the transfer of ownership from
such seller apply at the time of such purchase or transfer of ownership.

 

(p) The original
owner/beneficiary under the Policy shall have had an insurable interest at the time of the initial issuance of the Policy.

 

(q) The Policy
shall not have a death benefit that, by the terms of the Policy, will decrease over time or from time to time, unless such decrease
is scheduled and can be incorporated and fully reflected in the pricing of the Policy, and where the Policy shall contain no provisions
limiting the future realization of the net death benefit, other than non-payment of premiums or the Insured reaching a certain
age.

 

(r) The sale
of the Policy from the Original Owner thereof and all subsequent transfers of the Policy complied with all Applicable Law.

 

(s) The transfer
of the Policy is not subject to the payment of United States state sales taxes or any other taxes payable by the Borrower.

 

(t) The Lender
Valuation in respect of such Policy does not exceed twelve and a half percent (12.5%) of the value of the Collateral as determined
by the Required Lenders in their sole and absolute discretion.

 

(u) The face
amount of the Policy does not exceed five percent (5%) of the aggregate face amount of all Eligible Policies included in the Collateral.

 

(v) The Policy
was approved at the time of such Advance Date by the Required Lenders.

 

(w) The Rescission
Period with respect to such Policy shall have expired.

 

(x) The Policy
is not subject to any Applicable Law that makes unlawful the sale, transfer or assignment of such Policy.

 

    	 	I-8	 

     

    

 

(y) The documents
and agreements contained in the related Collateral Package and listed on Exhibit M to the Account Control Agreement do not contain
language purporting to limit their assignability, and none of the Borrower, the Parent or any Affiliate of any of them is a party
to any agreement that limits their assignability, and all such documents are fully assignable and transferable to the Borrower
and its successors, assigns and designees or as otherwise directed by the Borrower.

 

(z) With respect
to such Policy, the Borrower is not aware of any agreements, documents, assignments or instruments related to such Policy except
for those agreements, documents, assignments and instruments that constitute and were included in the related Collateral Package
that was delivered to the Administrative Agent.

 

(aa) The related
Collateral Package delivered to the Administrative Agent by or on behalf of the Borrower contain, at the very least, the documents
set forth in Exhibit M to the Account Control Agreement.

 

(bb) Unless
such Policy is a Retained Death Benefit Policy that has been previously disclosed in writing to and approved in writing by the
Administrative Agent, such Policy is not a retained death benefit policy or similar policy in which any Person other than the Borrower
has any direct or indirect interest of any kind in the death benefit payable under such Policy.

 

Notwithstanding any of
the foregoing, if such Policy is a Small Face Policy, the Life Expectancy with respect to each Insured under such Policy may be
based on estimates as determined by the Required Lenders in their sole and absolute discretion.

 

“Eligible Account”
means either (a) a segregated account with an Eligible Institution or (b) a segregated trust account with the corporate trust department
of a depository institution organized under the laws of the United States or any of the states thereof, including the District
of Columbia (or any domestic branch of a foreign bank), and acting as a trustee for funds deposited in such account, so long as
the senior securities of such depository institution shall have a credit rating from each of Moody’s and S&P in one of
its generic credit rating categories no lower than “A-” or “A3”, as the case may be.

 

“Eligible Institution”
means a depositary institution organized under the laws of the United States of America or any one of the states thereof or the
District of Columbia (or any domestic branch of a foreign bank), (a) which has both (x) a long-term unsecured senior debt rating
of not less than “A” by S&P and “A2” by Moody’s, and (y) a short-term unsecured senior debt rating
rated in the highest rating category by S&P and Moody’s and (b) whose deposits are insured by the Federal Deposit
Insurance Corporation.

 

“Eligible Policy”
means a Policy that, as of the Advance Date as of which such Policy first becomes a Pledged Policy, satisfies all of the Eligibility
Criteria (unless with respect to any particular criteria set forth in the Eligibility Criteria, such Policy is identified in the
applicable section of the Eligibility Criteria Exception Schedule attached to the Agreement as not satisfying such particular criteria).

 

“ERISA”
means the U.S. Employee Retirement Income Security Act of 1974, 29 U.S.C. §1001 et seq., as amended from time to time
and the regulations promulgated thereunder.

 

    	 	I-9	 

     

    

 

“Event of Bankruptcy”
shall be deemed to have occurred with respect to a Person if either:

 

(a) a case
or other proceeding shall be commenced, without the application or consent of such Person, in any court, seeking the liquidation,
reorganization, debt arrangement, dissolution, winding up, examinership or composition or readjustment of debts of such Person,
the appointment of a trustee, receiver, custodian, liquidator, examiner, assignee, sequestrator or the like for such Person or
all or substantially all of its assets, or any similar action with respect to such Person under any law relating to bankruptcy,
insolvency, reorganization, winding up, examinership or composition or adjustment of debts and such case or proceeding shall remain
undismissed or unstayed for a period of sixty (60) days; or an order for relief in respect of such Person shall be entered in an
involuntary case under the federal bankruptcy laws or other similar laws now or hereafter in effect; or

 

(b) such Person
shall commence a voluntary case or other proceeding under any applicable bankruptcy, insolvency, reorganization, debt arrangement,
dissolution or other similar law now or hereafter in effect, or shall consent to the appointment of or taking possession by a receiver,
liquidator, assignee, trustee, custodian, sequestrator (or other similar official) for such Person or for any substantial part
of its property, or shall make any general assignment for the benefit of creditors, or shall fail to, or admit in writing its inability
to, pay its debts generally as they become due, or, if a corporation or similar entity, its board of directors shall vote to implement
any of the foregoing.

 

“Event of Default”
has the meaning set forth in Section 10.1 of the Loan Agreement.

 

“Excluded Policy”
means (i) any Policy pledged under the Loan Agreement for which no written acknowledgement of a collateral assignment was received
by the Administrative Agent or the Securities Intermediary from the related Issuing Insurance Company within ninety (90) calendar
days of the Advance Date as of which such Policy became a Pledged Policy and (ii) any Policy pledged under the Loan Agreement in
respect of which the Insurance Consultant is not authorized to, or is not accepted by the related Issuing Insurance Company to,
communicate and receive verifications of coverage and obtain other information from such Issuing Insurance Company. With respect
to any Policy described in clause (i) of the immediately preceding sentence, if such written acknowledgement of a collateral assignment
is received by the Administrative Agent or the Securities Intermediary after such date, such Policy shall cease to be an Excluded
Policy on the date of such receipt. With respect to any Policy described in clause (ii) of the first sentence of this definition,
if the Insurance Consultant becomes authorized to, or becomes accepted by the related Issuing Insurance Company to, communicate
and receive verifications of coverage and obtain other information from such Issuing Insurance Company, such Policy shall cease
to be an Excluded Policy on the date of such authorization or acceptance.

 

“Expense Deposit”
means, with respect to any Additional Policies proposed to be pledged under the Loan Agreement in connection with the making of
an Additional Policy Advance, an amount required to reimburse the Administrative Agent and the Lenders for third-party out-of-pocket
expenses incurred in connection with the review and evaluation of such Additional Policies, as determined by the Administrative
Agent in its reasonable discretion.

 

    	 	I-10	 

     

    

 

“Expenses”
means the sum of (i) the Servicing Fee, (ii) payments to the Custodian or Securities Intermediary, as applicable, related to the
Pledged Policies or accounts of the Borrower and (iii) reasonable administrative expenses and documented third-party expenses payable
pursuant to clause “Fourth” in Section 5.2(b) of the Loan Agreement. The schedules of such Expenses were approved by
the Required Lenders as of the Closing Date. The Expenses to be funded during any succeeding calendar year shall be approved by
the Required Lenders in their sole and absolute discretion upon review of the Annual Budget for such succeeding calendar year as
contemplated by Section 9.1(d)(vi) of the Loan Agreement.

 

“Facility Limit”
means $300,000,000.

 

“Fasano”
means Fasano Associates, Inc. and its successors.

 

“FATCA”
means Sections 1471 through 1474 of the Code, as of the date of the Loan Agreement (or any amended or successor version that is
substantively comparable and not materially more onerous to comply with), any current or future regulations or official interpretations
thereof and any agreements entered into pursuant to Section 1471(b)(1) of the Code.

 

“Fee Letter”
means that certain schedule of fees setting forth the fees of the Securities Intermediary and the Custodian, dated August 1, 2016
and executed by the Borrower in favor of Wells Fargo on August 3, 2016.

 

“Fees”
means, collectively, the fees due and payable pursuant to the Fee Letter, the Closing Fee, the Additional Closing Fee, the Loan
Administration Fee and the Yield Maintenance Fee.

 

“Federal Funds
Rate” means, for any day, the rate per annum equal to the weighted average of the interest rates on overnight federal
funds transactions with members of the Federal Reserve System arranged by federal funds brokers, as published on the next succeeding
Business Day by the Federal Reserve Bank of New York, or, if such rate is not so published for any day which is a Business Day,
the average of the quotations for the day of such transactions received by the Administrative Agent from three federal funds brokers
of recognized standing selected by it.

 

“First Initial
Advance” has the meaning set forth in Section 2.1(a) of the Loan Agreement.

 

“First Initial
Advance Acceptance” has the meaning set forth in Section 2.3(a) of the Loan Agreement.

 

“FTP Site”
shall mean the File Transfer Protocol Site maintained by or on behalf of the Administrative Agent.

 

“GAAP”
means United States generally accepted accounting principles.

 

    	 	I-11	 

     

    

 

“Governmental
Authority” means the government of the United States of America or any other nation, or of any political subdivision
thereof, whether state or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity
exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government.

 

“GWG Holdings
Indenture” means the Indenture, dated as of October 19, 2011, among the Parent, GWG Holdings, Inc. and Bank of Utah,
as trustee, as amended, supplemented, amended and restated, or otherwise modified from time to time in accordance with the Loan
Agreement.

 

“GWG Note Issuance
and Security Agreement” means the Third Amended and Restated Note Issuance and Security Agreement, dated as of October
19, 2011, among the Parent, the noteholders party thereto, Lord Securities Corporation, as trustee, and GWG Lifenotes Trust, as
secured party, as amended, supplemented, amended and restated, or otherwise modified from time to time in accordance with the Loan
Agreement.

 

“Indemnified
Amounts” has the meaning set forth in Section 11.1 of the Loan Agreement.

 

“Indemnified
Bank Person” has the meaning set forth in the Account Control Agreement.

 

“Indemnified
Party” has the meaning set forth in Section 11.1 of the Loan Agreement.

 

“Independent
Director” has the meaning set forth in Section 9.1(f)(ii) of the Loan Agreement.

 

“Initial Advance”
has the meaning set forth in Section 2.1(a) of the Loan Agreement.

 

“Initial Lender”
shall mean LNV Corporation, a Nevada corporation.

 

“Initial Policy
Purchaser” means, with respect to any Policy, any Person who purchased the Policy from the Original Owner.

 

“Insurance
Consultant” means D3G Asset Management, LLC, a Texas limited liability company.

 

“Insured”
means a natural person who is named as the insured on a Policy.

 

“Interest Payment
Date” with respect to any Advance, means the first Distribution Date occurring after the initial funding of such Advance,
and each subsequent Distribution Date occurring thereafter.

 

“Interest Period”
means with respect to any Advance:

 

(a) the period
commencing on the date of the initial funding of such Advance and ending on, and including, the last day of the calendar quarter
in which such initial funding occurs; and

 

    	 	I-12	 

     

    

 

(b) thereafter,
each subsequent calendar quarter;

 

provided,
however, that if any Interest Period for any Advance that commences before the Maturity Date for such Advance would otherwise
end on a date occurring after the Maturity Date, such Interest Period shall end on and include the Maturity Date.

 

“Investment”
means any investment in any Person, whether by means of share purchase, capital contribution, loan, time deposit or otherwise.

 

“Issuing Insurance
Company” means with respect to any Policy, the insurance company that is obligated to pay the related benefit upon the
death of the related Insured (or if such Policy is a Joint Policy, upon the death of the last Insured to die under such Policy)
by the terms of such Policy (or the successor to such obligation).

 

“Joint Policy”
means a Policy with more than one Insured that pays upon the death of the last Insured to die. Unless the context otherwise requires,
joint Insureds of a Joint Policy shall collectively count, as applicable, as a “separate individual,” as a “single
insured” or as an “insured person”.

 

“Lender”
means each of the financial institutions party to the Loan Agreement as lender thereunder.

 

“Lender’s
Commitment” means, with respect to a Lender, the Commitment for such Lender as set forth on Schedule 2.1(a)
of the Loan Agreement or in the Assignment and Assumption Agreement pursuant to which such Lender becomes a party to the Loan Agreement.

 

“Lender Note”
and “Lender Notes” each has the meaning set forth in Section 2.5 of the Loan Agreement.

 

“Lender Valuation”
means, with respect to an Advance, the value of the Subject Policies as determined by the Required Lenders in their sole and absolute
discretion, and with respect to the Collateral, the value of the Pledged Policies (other than the Excluded Policies) as determined
by the Required Lenders in their sole and absolute discretion and giving pro-forma effect to pending sales of one or more Pledged
Policies pursuant to Section 2.7 of the Loan Agreement. The Borrower and Required Lenders hereby acknowledge that the methodology
and metrics utilized by the Required Lenders in determining the Lender Valuation may be different than the methodology and metrics
utilized by the Borrower and its Affiliates in determining the value of the Pledged Policies in connection with preparing the financial
statements of the Borrower and its Affiliates and that such methodology and metrics utilized by the Required Lenders may change
over time.

 

“LIBOR”
means, for any Interest Period, the greater of (i) an interest rate per annum (rounded upwards, if necessary, to the nearest 1/100
of 1%) equal to the British Bankers Association LIBOR Rate or any rate established by a successor organization (“BBA LIBOR”)
by Bloomberg, Reuters or other commercially available source providing quotations of BBA LIBOR, as designated by the Administrative
Agent from time to time, at approximately 11:00 A.M. (London time) on the Rate Calculation Date for such Interest Period, as the
London interbank offered rate for deposits in Dollars for a 12-month period and (ii) one and a half percent (1.50%).

 

    	 	I-13	 

     

    

 

“Lien”
shall mean any mortgage, pledge, assignment, lien, security interest or other charge or encumbrance of any kind, including the
retained security title of a conditional vendor or a lessor.

 

“Life Expectancy”
means with respect to an Insured, the life expectancy, expressed in months, of such Insured as stated in the related LE Report;
provided, that if an LE Report provides the life expectancy under multiple methodologies, the “Life Expectancy” of
the Insured shall be the life expectancy designated as the median (or 50th percentile) life expectancy in such LE Report.

 

“Life Expectancy
Report” or “LE Report” means, with respect to an Insured, an assessment by a Pre-Approved Medical
Underwriter in a written statement as reviewed and approved by the Administrative Agent in its reasonable discretion and dated
within one-hundred eighty (180) days prior to the Advance Date on which the Policy related to such Insured became or is proposed
to become a Pledged Policy, with respect to the life expectancy of such Insured.

 

“Liquidated
Policy” means any Pledged Policy that has been liquidated by the death of the related Insured.

 

“Liquidation
Proceeds” means any and all proceeds realized from Liquidated Policies.

 

“LLC Agreement”
means the limited liability company agreement of the Borrower, dated effective as of May 18, 2016, by and between the Parent, as
member, and Albert Fioravanti, as independent director, as amended, supplemented, amended and restated, or otherwise modified from
time to time in accordance with the Loan Agreement.

 

“Loan Administration
Fee” means, so long as any Advance is outstanding, (i) if no Event of Default or Unmatured Event of Default has occurred
and is continuing, $50,000 per annum or (ii) if an Event of Default or Unmatured Event of Default has occurred and is continuing,
$75,000 per annum, which amount shall be pro-rated for the period the Event of Default or Unmatured Event of Default continues.

 

“Loan Agreement”
means the Amended and Restated Loan and Security Agreement, dated as of the Amended and Restated Closing Date, among the Borrower,
the Lenders party thereto and the Administrative Agent, as may be amended, restated, supplemented or otherwise modified from time
to time.

 

“LTV”
means, on any date of determination, the fraction, expressed as a percentage, the numerator of which is the aggregate outstanding
principal balance of all outstanding Advances, and the denominator of which is the Lender Valuation of the Pledged Policies (other
than any Excluded Policies), as determined by the Required Lenders in their sole and absolute discretion.

 

“Material Adverse
Effect” means, with respect to any event or circumstance, a material adverse effect on:

 

(a) any of
the Collateral or the business, assets, financial condition or operations of the Borrower or the Parent;

 

    	 	I-14	 

     

    

 

(b) the ability
of the Borrower or the Parent to perform its respective obligations under any Transaction Document to which such Person is a party;

 

(c) the validity
or enforceability against the Borrower or the Parent of any Transaction Document to which such Person is a party;

 

(d) the status,
existence, perfection or priority of the Administrative Agent’s (for the benefit of the Secured Parties) security interest
in any of the Collateral;

 

(e) the Lender
Valuation, the Net Death Benefit or the number of Pledged Policies, including without limitation, the validity, enforceability
or collectability of Pledged Policies; or

 

(f) any of
the rights or interests of the Administrative Agent or any of the Lenders under the Loan Agreement or under any other Transaction
Document.

 

“Maturity Date”
means September 27, 2029.

 

“Moody’s”
means Moody’s Investors Service, Inc. and its successors.

 

“Net Death
Benefit” means, with respect to a Policy, the amount projected to be paid by the Issuing Insurance Company to the Borrower
or the Securities Intermediary on its behalf as a result of the death of the related Insured.

 

“Net Proceeds”
shall mean, with respect to a sale pursuant to Section 2.7 of the Loan Agreement, all proceeds of such sale net of the lesser
of (x) the reasonable third-party out-of-pocket expenses incurred by the Borrower which have been approved by the Administrative
Agent in its sole and absolute discretion and (y) the greater of (i) $20,000 and (ii) one percent (1.00%) of the face amount of
the Pledged Policies related to such sale.

 

“Obligations”
means all obligations (monetary or otherwise) of the Borrower to the Lenders or the Administrative Agent and their respective successors,
permitted transferees and assigns arising under or in connection with the Loan Agreement, the Lender Notes and each other Transaction
Document, in each case however created, arising or evidenced, whether direct or indirect, absolute or contingent, now or hereafter
existing, or due or to become due.

 

“OFAC”
has the meaning set forth in Section 8.1(v)(i) of the Loan Agreement.

 

“OFAC Listed
Person” has the meaning set forth in Section 8.1(v)(i) of the Loan Agreement.

 

“OFAC Sanctions
Program” means any economic or trade sanction that OFAC is responsible for administering and enforcing. A list of OFAC
Sanctions Programs may be found at http://www.ustreas.gov/offices/enforcement/ofac/programs/.

 

“Ongoing Maintenance
Advance” shall mean an Advance made after the date of the making of the First Initial Advance, the proceeds of which
are used solely to pay amounts permitted pursuant to Section 2.8(a)(ii) of the Loan Agreement.

 

    	 	I-15	 

     

    

 

“Ongoing Maintenance
Costs” means (i) the scheduled Premiums on the Pledged Policies (other than Excluded Policies) as set forth on the related
Premium Payment Schedule and set forth in the related Annual Budget which has been approved by the Required Lenders pursuant to
Section 9.1(d)(vi) of the Loan Agreement, as adjusted by the Administrative Agent to reflect any maturities or sales of Pledged
Policies and any Advances and (ii) the Expenses of the Borrower.

 

“Operational
Plan” means a cash flow-projection for the Pledged Policies which constitute the Collateral (including any Additional
Policies), through the date on which no further Premiums will be required to keep the Pledged Policies in full force and effect,
assuming that none of such Policies shall mature in such period, reasonably acceptable to the Administrative Agent and the Insurance
Consultant.

 

“Original Loan
Agreement” has the meaning set forth in the recitals to the Loan Agreement.

 

“Original Owner”
means, with respect to a Policy, the Person to which the Policy was initially issued and who was listed as owner on the initial
declarations page of such Policy or the policy application, as applicable.

 

“Parent”
means GWG Life, LLC, a Delaware limited liability company.

 

“Parent Obligations”
shall mean, collectively, the Parent’s obligations under the Purchase Agreement, including, without limitation, the obligation
of the Parent to repurchase Pledged Policies in accordance with the terms thereof, including, without limitation, obtaining the
Administrative Agent’s direction with respect to any such repurchase.

 

“Payment Account”
has the meaning set forth in Section 5.1(e) of the Loan Agreement.

 

“Payment Instructions”
has the meaning set forth in Section 5.2(a) of the Loan Agreement.

 

“Payoff Notice”
has the meaning set forth in Section 7.5(b) of the Loan Agreement.

 

“PBGC”
means the Pension Benefit Guaranty Corporation or any entity succeeding to any or all of its functions under ERISA.

 

“Permissible
Sale” has the meaning set forth in Section 2.7 of the Loan Agreement.

 

“Permitted
Investment” means, at any time:

 

(a) marketable
obligations issued by or the full and timely payment of which is directly and fully guaranteed or insured by the United States
government or any other government with an equivalent rating, or any agency or instrumentality thereof when such marketable obligations
are backed by the full faith and credit of the United States government or such other equivalently rated government, as the case
may be, but excluding any securities which are derivatives of such obligations;

 

    	 	I-16	 

     

    

 

(b) demand
deposits, time deposits, bankers’ acceptances and certificates of deposit of any domestic commercial bank or any United States
branch or agency of a foreign commercial bank which (i) has capital, surplus and undivided profits in excess of $100,000,000 and
which has a commercial paper or certificate of deposit rating in the highest rating category by Moody’s and in one of the
two highest rating categories by S&P or (ii) is set forth in a list (which may be updated from time to time) approved in writing
by the Administrative Agent on behalf of the Required Lenders; and

 

(c) the Securities
Intermediary Funds (as defined in the Account Control Agreement) and any other investment approved in writing by the Administrative
Agent on behalf of the Required Lenders in its sole and absolute discretion.

 

“Person”
means an individual, partnership, corporation (including a business trust), limited liability company, joint stock company, trust,
unincorporated association, joint venture, government or any agency or political subdivision thereof or any other entity.

 

“Physician’s
Competency Statement” means, with respect to an Insured, a letter issued by such Insured’s attending physician
confirming that such Insured is mentally competent as of the date of such letter.

 

“Pledged Policy”
means each Policy pledged to secure Advances under the Loan Agreement.

 

“Policy”
means any life insurance policy.

 

“Policy Account”
has the meaning set forth in the Account Control Agreement.

 

“Policy Illustration”
means, with respect to any Policy, a level premium, policy values and Net Death Benefit projection produced by the Issuing Insurance
Company or an agent of the Issuing Insurance Company, using the Issuing Insurance Company’s current/non-guaranteed values
(with a non-guaranteed interest crediting rate not to exceed two-hundred (200) basis points over the guaranteed rate) sufficient
to carry such Policy to its Policy Maturity Date, which Policy Illustration is not dated more than one-hundred eighty (180) days
prior to the applicable Advance Date.

 

“Policy Loan”
means with respect to a Policy, an outstanding loan secured thereby or that has setoff rights with respect thereto.

 

“Policy Maturity
Date” means, with respect to a Policy, the date specified in the Policy, including any extensions thereto available and
exercised under the terms of the Policy, on which coverage offered under the Policy terminates.

 

“Pre-Approved
Medical Underwriters” means any two (2) of Fasano, AVS or 21st Services.

 

“Premium”
means, with respect to any Pledged Policy, as indicated by the context, any past due premium with respect thereto, or any scheduled
premium.

 

    	 	I-17	 

     

    

 

“Premium Payment
Schedule” has the meaning set forth in the Servicing Agreement.

 

"Prime Rate"
means the rate of interest quoted in The Wall Street Journal, Money Rates Section as the Prime Rate (currently defined as the base
rate on corporate loans posted by at least 75% of the nation's 30 largest banks), as in effect from time to time.

 

“Priority of
Payments” means the priority of payments set forth in Section 5.2 of the Loan Agreement.

 

“Proposed Additional
Policy Advance” has the meaning set forth in Section 2.3(d) of the Loan Agreement.

 

“Proposed Additional
Policy Advance Notice” has the meaning set forth in Section 2.3(d) of the Loan Agreement.

 

“Proposed First
Initial Advance” has the meaning set forth in Section 2.3(a) of the Loan Agreement.

 

“Proposed First
Initial Advance Notice” has the meaning set forth in Section 2.3(a) of the Loan Agreement.

 

“Protective
Advances” has the meaning set forth in Section 2.1(d) of the Loan Agreement.

 

“Purchase Agreement”
means the Portfolio Purchase and Sale Agreement, dated as of September 14, 2016, by and between the Parent and the Borrower, as
the same may be amended, supplemented or otherwise modified from time to time in accordance with the Transaction Documents.

 

“Rate Calculation
Date” means for any Interest Period, the last Business Day of the immediately preceding calendar quarter; provided,
however, that with respect to the initial Interest Period for the First Initial Advance and the Second Initial Advance,
the Rate Calculation Date was the related Advance Date.

 

“Receiving
Party” has the meaning set forth in Section 13.12 of the Loan Agreement.

 

“Reduction
Action” shall mean any action, inaction, transaction, event and/or circumstance, in each case, the result of which reduces
the amount of interest payable by the Borrower under the Loan Agreement (including, without limitation, the replacement or exchange
of one or more Lender Notes), that would otherwise have been payable if no such action, inaction, transaction, event and/or circumstance
had occurred.

 

    	 	I-18	 

     

    

 

“Regulatory
Change” means, relative to any Affected Party:

 

(a) any change
in (or the adoption, implementation, change in the phase-in or commencement of effectiveness of) any: (i) United States Federal
or state law or foreign law applicable to such Affected Party, (ii) regulation, interpretation, directive, requirement or request
(whether or not having the force of law) applicable to such Affected Party of (A) any court or government authority charged with
the interpretation or administration of any law referred to in clause (a)(i), or of (B) any fiscal, monetary or other authority
having jurisdiction over such Affected Party, or (iii) GAAP or regulatory accounting principles applicable to such Affected Party
and affecting the application to such Affected Party of any law, regulation, interpretation, directive, requirement or request
referred to in clause (a)(i) or (a)(ii) above;

 

(b) any change
in the application to such Affected Party of any existing law, regulation, interpretation, directive, requirement, request or accounting
principles referred to in clause (a)(i), (a)(ii) or (a)(iii) above; or

 

(c) the issuance,
publication or release of any regulation, interpretation, directive, requirement or request of a type described in clause (a)(ii)
above to the effect that the obligations of any Lender hereunder are not entitled to be included in the zero percent category of
off-balance sheet assets for purposes of any risk-weighted capital guidelines applicable to such Lender or any related Affected
Party.

 

For the avoidance
of doubt, any interpretation of Accounting Research Bulletin No. 51 by the Financial Accounting Standards Board (including,
without limitation, Interpretation No. 46: Consolidation of Variable Interest Entities) shall constitute a Regulatory Change,
regardless of whether it occurred before or after the date hereof.

 

“Representatives”
has the meaning set forth in Section 13.12 of the Loan Agreement.

 

“Required Amortization”
means, with respect to any Distribution Date, the greater of (A) the product of (i) the principal amount of the Initial Advance
made under the Loan Agreement and (ii) one and one-half percent (1.50%) and (B) the product of (i) the aggregate principal amount
of all Advances outstanding under the Loan Agreement, calculated on the last Business Day of the calendar month immediately preceding
such Distribution Date and (ii) one and one-half percent (1.50%).

 

“Required Lenders”
means Lenders holding more than fifty percent (50%) of the aggregate Commitments.

 

“Rescission
Period” means, with respect to any Policy, the contractual or statutory period during which the related Original Owner
or any other Person can rescind the sale of such Policy to the Initial Policy Purchaser.

 

“Reserve Account”
has the meaning set forth in Section 5.1(b) of the Loan Agreement.

 

“Reserve Account
Required Amount” means, as of each Distribution Date occurring prior to the Amended and Restated Closing Date, the amount
necessary to pay projected Expenses and Debt Service for the following twelve (12) month period, as determined by the Administrative
Agent in its reasonable discretion.

 

    	 	I-19	 

     

    

 

“Retained Death
Benefit Policy” means a Policy in which a Person in addition to the Securities Intermediary is designated as the “beneficiary”
under such Policy by the related Issuing Insurance Company.

 

“S&P”
means Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc. and its successors.

 

“Sale Documents”
mean, with respect to each Policy, all agreements, documents, assignments and instruments executed and/or delivered by the Insured(s)
or any other party in connection with the purchase of the related Policy, or the financing of such Policy and the foreclosure or
surrender of such Policy, including for each Policy: (i) the Policy and application for the Policy, (ii) the life settlement contract
between the Original Owner of the Policy and the Initial Policy Purchaser relating to the sale of a Policy by the Original Owner
to such Initial Policy Purchaser (if applicable) and the surrender, relinquishment or similar documentation (if applicable), (iii)
the life settlement application, (iv) a Policy Illustration obtained no earlier than one-hundred eighty (180) calendar days prior
to the Advance Date on which such Policy became or is proposed to be a Pledged Policy, (v) a HIPAA Authorization for Disclosure
of Protected Health Information (and any similar document) and power of attorney related to health information, (vi) the consent
of the related Insured(s), including the agreement of continued contact, (vii) list of designated contacts, (viii) the life
settlement disclosure and (ix) a copy of a document identifying the related Insured(s) issued by a Governmental Authority which
verifies the age (including date of birth) of such Insured(s) as set forth in the application for the Policy, or their respective
equivalents.

 

“Scheduled
Commitment Termination Date” means (i) with respect to any Ongoing Maintenance Advances, September 27, 2027 and (ii)
with respect to any Additional Policy Advances, September 27, 2022.

 

“Second Initial
Advance” has the meaning set forth in Section 2.1(a) of the Loan Agreement.

 

“Second Initial
Advance Acceptance” has the meaning set forth in Section 2.3(b) of the Loan Agreement.

 

“Secured Parties”
means each Lender, the Administrative Agent and the Affected Parties.

 

“Securities
Intermediary” means Wells Fargo, together with its successors and assigns, solely in its capacity as securities intermediary
under the Account Control Agreement.

 

“Servicer”
means GWG Life, LLC, a Delaware limited liability company, acting as Servicer, or any Successor Servicer.

 

“Servicer Collateral
Audit” means an inspection by a Lender or the Administrative Agent of the Servicer pursuant to Section 5.2 of the
Servicing Agreement.

  

“Servicer Report”
means collectively, the reports required to be delivered by the Servicer under the Servicing Agreement pursuant to Section 3.4
thereof.

 

    	 	I-20	 

     

    

 

“Servicer Report
Date” means the date the Servicer Report is to be delivered pursuant to the terms of the Servicing Agreement.

 

“Servicer Termination
Event” means an event or circumstance with respect to the Servicer which could cause the termination of the Servicing
Agreement in accordance with Article IX thereof.

 

“Servicing
Agreement” means the Servicing Agreement, dated as of September 14, 2016, by and between the Servicer and the Borrower,
as the same may be amended, supplemented or otherwise modified from time to time in accordance with the Transaction Documents.

 

“Servicing
Agreement Obligations” shall mean, collectively, the Servicer’s obligations under the Servicing Agreement.

 

“Servicing
Agreement Rights” shall mean, collectively, the Borrower’s rights under the Servicing Agreement, including, without
limitation, upon the Administrative Agent’s instruction after the occurrence of a Servicer Termination Event, terminating
the Servicing Agreement in accordance with the terms thereof.

 

“Servicing
Fee” has the meaning set forth in the Servicing Agreement.

 

“Small Face
Policy” shall mean a Policy with a face amount of $750,000 or less.

 

“Solvent”
means with respect to any Person that as of the date of determination that both (A)(i) the then fair saleable value of the property
of such Person is (y) greater than the total amount of liabilities (including contingent liabilities) of such Person and (z) not
less than the amount that will be required to pay the probable liabilities on such Person’s then existing debts as they become
absolute and matured considering all financing alternatives and potential asset sales reasonably available to such Person; (ii)
such Person’s capital is not unreasonably small in relation to its business or any contemplated or undertaken transaction;
and (iii) such Person does not intend to incur, or believe (nor should it reasonably believe) that it will incur, debts beyond
its ability to pay such debts as they become due; and (B) such Person is “solvent” within the meaning given that term
and similar terms under Applicable Laws relating to fraudulent transfers and conveyances. For purposes of this definition, the
amount of any contingent liability at any time shall be computed as the amount that, in light of all of the facts and circumstances
existing at such time, represents the amount that can reasonably be expected to become an actual or matured liability.

 

“Subject Policy”
means, with respect to an Advance, an Eligible Policy proposed to be pledged by the Borrower in connection with such Advance.

 

“Subsequent
Advance Acceptance” shall have the meaning specified in Section 2.3(c) of the Loan Agreement.

 

“Subsequent
Advance Date” with respect to an Additional Policy Advance or an Ongoing Maintenance Advance, shall mean the date such
Advance is made pursuant to and in accordance with the terms of the Loan Agreement.

 

    	 	I-21	 

     

    

 

“Subsidiary”
means, with respect to any Person, any corporation or other entity of which securities or other ownership interests having ordinary
voting power (other than securities or other ownership interests having such power only by reason of the happening of a contingency
which has not occurred) to elect a majority of the Board of Directors or other Persons performing similar functions are at the
time directly or indirectly owned by such Person.

 

“Successor
Servicer” means a successor servicer appointed pursuant to and in accordance with the terms of the Servicing Agreement.

 

“Tax”
or “Taxes” means any and all fees (including documentation, recording, license and registration fees), taxes
(including net income, gross income, franchise, value added, ad valorem, sales, use, property (personal and real, tangible and
intangible) and stamp taxes), levies, imposts, duties, charges, assessments or withholdings of any nature whatsoever, general or
special, ordinary or extraordinary, together with any and all penalties, fines, additions to tax and interest thereon, imposed
on a Person or for which a Person is liable either directly or by way of an obligation to reimburse or indemnify. For the avoidance
of doubt, any reference to “Tax” or “Taxes” imposed on the Borrower shall include any tax withholdings
on income allocated to or amounts payable to the Borrower and any tax required to be paid by the Borrower to any taxing authority
or required to be withheld from any payment made by or on behalf of the Borrower, but such reference shall not include any Taxes
imposed upon anyone else unless such Taxes are in whole or in part the legal responsibility or legal obligation of the Borrower
or can otherwise be collected from the assets or income of the Borrower.

 

“Transaction
Documents” means the Loan Agreement, the Servicing Agreement, the Purchase Agreement, the Fee Letter, the Account Control
Agreement, the Lender Notes, that certain Service Agreement, dated as of September 14, 2016, by and between the Borrower and the
Corporate Services Provider, and the UCC financing statements filed in connection with any of the foregoing, and in each case any
other agreements, instruments, certificates or documents delivered or contemplated to be delivered in connection therewith, as
any of the foregoing may be amended, supplemented, amended and restated, or otherwise modified from time to time in accordance
with the Loan Agreement.

 

“UCC”
means the Uniform Commercial Code as from time to time in effect in the applicable jurisdiction or jurisdictions.

 

“Unmatured
Event of Default” shall mean any event that, if it continues uncured, will, with lapse of time or notice or both, constitute
an Event of Default.

 

“Valuation
Dispute” has the meaning set forth in Section 7.5(b) of the Loan Agreement.

 

“Wells Fargo”
means Wells Fargo Bank, N.A.

 

“Yield Maintenance
Fee” means, with respect to the prepayment or repayment of an Advance that is made within one hundred twenty (120) months
after the Amended and Restated Closing Date or a Reduction Action in respect of an Advance that occurs within one hundred twenty
(120) months after the Amended and Restated Closing Date, an amount equal to the Applicable Margin on the amount of such prepayment
or repayment or the amount of the reduction of such Advance as a result of such Reduction Action, as applicable, that would have
accrued from the date of such prepayment, repayment or Reduction Action, as applicable, through the one hundred twenty (120) month
anniversary of the Amended and Restated Closing Date, discounted at the equivalent weighted-average life U.S. Treasury yield as
of the date of such prepayment, repayment or Reduction Action, as applicable, and, if applicable, assuming the earliest Advance
made is repaid first.

 

 

I-22

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