Document:

First Amendment to Agreement and Plan of Merger, dated as of December 8, 2008

 Exhibit 10.2 
 FIRST AMENDMENT TO 
 AGREEMENT AND PLAN OF MERGER 
 This First Amendment to Agreement and Plan of Merger (the “Amendment”), made and entered into as of December 8, 2008, amends
that certain Agreement and Plan of Merger by and among Plains Capital Corporation, a Texas corporation, PlainsCapital Bank, a Texas banking association (the “Bank”), First Southwest Holdings, Inc., a Delaware corporation (the
“Company”), and Hill A. Feinberg, as Stockholders’ Representative, dated as of November 7, 2008 (the “Merger Agreement”). Any terms used but not defined where first used shall have the
meanings set forth in the Merger Agreement. 
 RECITALS 
 A. The parties hereto have entered into the Merger Agreement governing the merger of the Company with and into FSWH Acquisition LLC, a Delaware limited liability company that will be formed as a wholly-owned direct
subsidiary of the Bank (“Merger Sub”). 
 B. The parties hereto desire to amend the Merger Agreement to, among other
things, (1) delete the requirement in subsection (ii) of Sections 5.22 and 7.8 of the Merger Agreement, pursuant to which the Company is required to fulfill in full its obligation to offer to repurchase at par from its
customers and former customers the “Eligible ARS” and any other auction rate securities that FSC or its Affiliates are required to offer to repurchase pursuant to the FINRA Settlement, as such requirement is more specifically set forth in
Sections 5.22 and 7.8 of the Merger Agreement, (2) make certain other clarifying changes as such changes relate to the repurchase of such “Eligible ARS,” and (3) clarify the Parent’s obligations under
Section 5.7 as it relates to the continuation of certain insurance. 
 AGREEMENT 
 In consideration of the mutual covenants, representations, warranties and agreements contained in this Amendment and the Merger Agreement, and other good
and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound hereby, the parties hereto agree as follows: 
 1. In Section 1.1 of the Merger Agreement, the definition of “Repurchased FINRA Settlement ARS” is deleted in its entirety and replaced with the following: 
 ““Repurchased FINRA Settlement ARS” means the auction rate securities to be repurchased pursuant to an offer
by FSC or any of its Affiliates as required by the FINRA Settlement.” 
 2. The following definition is hereby added to
Section 1.1 of the Merger Agreement in alphabetical order: 
 ““Closing ARS
Valuation” means, with respect to the ARS portfolio owned by FSC and its Affiliates as of the Closing Date and the Repurchased FINRA Settlement ARS, the lesser of: (i) 90% of the face value of such ARS or (ii) the lower end of
the range of the aggregate estimated “fair value” of the ARS portfolio in the Duff & Phelps Opinion.” 

 3. Section 3.30 of the Merger Agreement is hereby deleted in its entirety and replaced with
the following: 
 “Section 3.30 ARS. 
  

	 	(a)	The Company has good and valid title to the ARS, except for any portion of the Repurchased FINRA Settlement ARS that is not repurchased pursuant to the FINRA Settlement prior to
Closing, free and clear of all Encumbrances. 

  

	 	(b)	All of the ARS are auction rate bonds issued by and payable from trusts that are fully collateralized by student loans originated under the Federal Family Education Loan Program and
that carry a guarantee by the U.S. Department of Education of not less than 97% of the principal amount of such auction rate bonds.” 

 4. The following Section 3.32 is hereby added to the Merger Agreement: 
 “Section 3.32 Repurchased FINRA Settlement ARS. The Repurchased FINRA Settlement ARS includes no more than $41.6 million of auction rate securities held by FSC’s customers or former customers.” 
 5. Section 5.3(a) of the Merger Agreement is hereby deleted in its entirety and replaced with the following: 
 “(a) The Company shall as promptly as practicable prepare and mail to its stockholders at its own expense a notice of meeting,
combined private placement memorandum/proxy statement and form of proxy in accordance with applicable Law, including all applicable provisions of the DGCL and Regulation D promulgated under the Securities Act (the “Proxy
Statement”). The Company shall provide Parent with the opportunity to review and comment on the Proxy Statement and shall not mail the Proxy Statement without Parent’s prior written consent (such consent not to be unreasonably
withheld or delayed). The Proxy Statement shall include the Company Board Recommendation, except to the extent the Company’s Board of Directors shall have withheld, withdrawn, amended or modified the Company Board Recommendation as permitted by
Section 5.3(d). Parent shall provide the Company with all information relating to Parent which is required to be disclosed in the Proxy Statement pursuant to this Agreement and applicable Law.” 
  

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 6. Section 5.3(c) of the Merger Agreement is hereby deleted in its entirety and replaced with
the following: 
 “(c) The Company shall call and hold the Company Stockholders Meeting as promptly as reasonably
practicable, but in any event within 20 calendar days after the Proxy Statement is first sent or mailed to its stockholders and no later than December 29, 2008, for the purpose of obtaining the Company Stockholders Approval. In connection with
the Company Stockholders Meeting, the Company shall (i) subject to applicable Laws, take all steps reasonably necessary or desirable (including postponing or adjourning the Company Stockholders Meeting to obtain a quorum in accordance with the
terms of this Section 5.3(c)) to obtain the Company Stockholders Approval and (ii) otherwise comply with all Laws applicable to the Company Stockholders Meeting.” 
 7. Section 5.7 of the Merger Agreement is hereby deleted in its entirety and replaced with the following: 
 “Section 5.7 Directors and Officers’ Insurance; Claims Made Policies. 
  

	 	(a)	From and after the Closing Date and until the six (6) year anniversary of the Closing Date, Parent shall maintain in effect directors’ and officers’ liability
insurance with the insurance provider of the Parent’s choice (or, at Parent’s option, a “tail” insurance policy) covering those Persons covered by the directors’ and officers’ liability insurance maintained by the
Company as of the date hereof for any actions taken by them or omissions by them on or before the Closing Date with the same directors’ and officers’ liability insurance coverage as may be provided from time to time by Parent to its then
existing directors and officers; provided, that in no event will Parent be required to expend in the aggregate amounts in any year in excess of 110% of the amount of the last annual premium for such insurance to cover its then existing
directors and officers (in which event, Parent shall purchase the greatest coverage available for such amount). 

  

	 	(b)	From and after the Closing Date and until the six (6) year anniversary of the Closing Date, Parent shall cause the Surviving LLC to maintain in effect claims made liability
insurance policies set forth on Schedule 5.7 of the Company Disclosure Schedules with the insurance provider of the Surviving LLC’s choice (or, at the Surviving LLC’s option, a “tail” insurance policy) covering
those Persons covered by such claims made liability insurance policies maintained by the Company as of the date hereof for any actions taken by them or omissions by them on or before the Closing Date with the same coverage maintained by the Company
as of the date hereof; provided, that in no event will Surviving LLC be required to expend in the aggregate amounts in any year in excess of 110% of the amount of the last annual premium for such claims made liability insurance policies (in
which event, Parent shall purchase the greatest coverage available for such amount).” 

  

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 7. Section 5.22 of the Merger Agreement is hereby deleted in its entirety and replaced with
the following: 
 “Section 5.22 FINRA Settlement Finalized. The Company shall use its commercially reasonable
efforts to cause FSC to, as soon as reasonably possible and in any event prior to the Closing Date, enter into a FINRA Settlement with FINRA that resolves the auction rate securities investigation by FINRA of FSC pursuant to the submission (which
FINRA shall have formally accepted in writing) of a Letter of Acceptance Waiver and Consent with terms that are reasonably satisfactory to Parent.” 
 8. Section 7.8 of the Merger Agreement is hereby deleted in its entirety and replaced with the following: 
 “Section 7.8 FINRA Settlement Finalized. The Company shall have entered into a FINRA Settlement with FINRA that resolves the auction rate securities investigation by FINRA of FSC pursuant to the submission
(which FINRA shall have formally accepted in writing) of a Letter of Acceptance Waiver and Consent with terms that are reasonably satisfactory to Parent.” 
 9. Section 7.13 of the Merger Agreement is hereby deleted in its entirety and replaced with the following: 
 “Section 7.13 ARS Portfolio Classification and Valuation. Parent shall have received assurance to its reasonable satisfaction that, upon transfer following the Merger of the ARS portfolio currently held by
FSC and its Affiliates as well as the Repurchased FINRA Settlement ARS to Bank or its Affiliates, such ARS would be properly classified as securities “held to maturity.” As of Closing, FSC and any Affiliate that owns ARS shall have
recorded on its financial books and records: (i) an aggregate value of the ARS portfolio held by FSC or such Affiliate as of the Closing Date equal to the Closing ARS Valuation and (ii) a loss equal to the difference between the face value
of the Repurchased FINRA Settlement ARS and the Closing ARS Valuation.” 
 10. Except as modified by this Amendment, the Merger
Agreement shall remain unmodified and is confirmed as being in full force and effect. 
 11. This Amendment may be executed in multiple
counterparts, each of which shall be deemed to be an original by the parties executing such counterpart, but all of which shall be considered one and the same instrument. 
 12. This Amendment shall be governed by, and construed in accordance with the laws of the State of Texas, regardless of the laws that might otherwise govern under applicable principles of conflicts of laws.

 13. This Amendment shall bind and inure to the benefit of the parties hereto and their respective successors and assigns. 
 [Signature Page Follows] 
  

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 IN WITNESS WHEREOF, this Amendment has been duly executed by each of the parties hereto as of the
date first written above. 
  

			
	FIRST SOUTHWEST HOLDINGS, INC.
		
	By:	 	/s/ Hill A. Feinberg
		 	Hill A. Feinberg
		 	Chairman and Chief Executive Officer
	
	PLAINS CAPITAL CORPORATION
		
	By:	 	/s/ Alan B. White
		 	Alan B. White
		 	Chairman and Chief Executive Officer
	
	PLAINSCAPITAL BANK
		
	By:	 	/s/ Alan B. White
		 	Alan B. White
		 	Chairman and Chief Executive Officer

  

	
	 HILL A. FEINBERG,
 as Stockholders’
Representative

	
	/s/ Hill A. Feinberg
	Hill A. Feinberg

 Signature Page to 
 First Amendment to Agreement and Plan of MergerSecond Amendment to Agreement and Plan of Merger, dated as of December 8, 2008

 Exhibit 10.3 
 SECOND AMENDMENT TO 
 AGREEMENT AND PLAN OF MERGER 
 This Second Amendment to Agreement and Plan of Merger (the “Amendment”), made and entered into as of December 29, 2008,
amends that certain Agreement and Plan of Merger by and among Plains Capital Corporation, a Texas corporation (“Parent”), PlainsCapital Bank, a Texas banking association (the “Bank”), First Southwest
Holdings, Inc., a Delaware corporation (the “Company”), and Hill A. Feinberg, as Stockholders’ Representative, dated as of November 7, 2008, as amended by that certain First Amendment to Agreement and Plan of Merger
(collectively, the “Merger Agreement”). Any terms used but not defined where first used shall have the meanings set forth in the Merger Agreement. 
 RECITALS 
 A. The parties hereto have entered into the Merger Agreement governing the merger of the
Company with and into FSWH Acquisition LLC, a Delaware limited liability company and a wholly-owned direct subsidiary of the Bank (“Merger Sub”). 
 B. The parties hereto desire to amend the Merger Agreement to, among other things: (i) amend the definition of “Aggregate ARS Face Value” found in Section 2.8(b) of the Merger
Agreement because FSC and its Affiliates tendered a portion of the ARS for purchase and no longer own $236 million of ARS; (ii) amend Section 2.8(d) of the Merger Agreement so that the Stockholders’ Representative may be
reimbursed for his reasonable and necessary expenses in such capacity out of the Escrowed Dividends otherwise payable to the Company Stockholders on the Earnout Distribution Date; (iii) amend Section 4.2 of the Merger Agreement to
add the Merger Sub to the representation regarding authority; (iv) amend Section 5.11 of the Merger Agreement, pursuant to which Parent is currently required to increase the size of its Board of Directors by three (3) members
and appoint or elect Hill A. Feinberg, David Medanich, and Michael Bartolotta to the Parent’s Board of Directors; (v) amend Section 5.20 of the Merger Agreement to reflect that the Merger Sub has been formed; (vi) amend
Section 7.6(c) of the Merger Agreement to reflect that the Registration Rights Agreement will be signed by the Stockholders’ Representative on behalf of the Company Stockholders; and (vii) join the Merger Sub as a party to the
Merger Agreement. 
 AGREEMENT 
 In consideration of the mutual covenants, representations, warranties and agreements contained in this Amendment and the Merger Agreement, and other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, and intending to be legally bound hereby, the parties hereto agree as follows: 
 1. Section 2.8(b) of the Merger
Agreement is hereby deleted in its entirety and replaced with the following: 
 “(b) Subject to Section 2.8
hereof, upon the last day of the forty-ninth (49th) month following the Closing Date (the “Earnout Distribution Date”), each Company Stockholder (other than Company Stockholders who properly exercised appraisal rights

 
pursuant to Section 262 in connection with the Merger, which such Company Stockholders shall have the rights as provided in Section 2.7(g))
shall receive from Parent that number of shares of Parent Common Stock equal to the difference between: (i) the product of multiplying (x) the Escrowed Earnout Shares by (y) such holder’s Pro Rata Percentage by (z) the
applicable “Distribution Percentage of Escrowed Earnout Shares” set forth in the far right column of the table set forth in Exhibit B attached hereto (the “Earnout Calculation Table”)
less (ii) the product of multiplying (y) the ARS Loss Share Equivalent by (z) such holder’s Pro Rata Percentage less (iii) the product of multiplying (y) the Municipal Derivative Litigation Liabilities
Share Equivalent by (z) such holder’s Pro Rata Percentage less (iv) the product of multiplying (y) the Excess Dividend Share Equivalent by (z) such holder’s Pro Rata Percentage. The applicable Distribution
Percentage of Escrowed Earnout Shares shall be the percentage that the Aggregate ARS Market Value (as defined below), represents of the Aggregate ARS Face Value (as defined below). For purposes of this Agreement, “Aggregate ARS Market
Value” shall mean the aggregate value (following deduction of reasonable expenses associated with the consummation of the transactions contemplated by the following (A) and (B)) of the ARS as follows: (A) if all or a portion
of the ARS are sold prior to the last day of the forty-eighth (48th) month immediately following the Closing Date (the “Earnout Calculation Date”), the sum of: (i) the aggregate actual sales price of any ARS sold
between the date of signing this Agreement and the Earnout Calculation Date, net of any commissions related to such sale, and (ii) the aggregate value of the ARS not so sold when marked-to-market in accordance with GAAP as of the Earnout
Calculation Date utilizing the same valuation standards and principles used in the Duff & Phelps Opinion, or (B) if none of the ARS are sold between the date of signing this Agreement and the Earnout Calculation Date, the aggregate
value of the ARS when marked-to-market in accordance with GAAP as of the Earnout Calculation Date utilizing the same valuation standards and principles used in the Duff & Phelps Opinion. For purposes of this Agreement, “Aggregate
ARS Face Value” shall mean the sum of: (i) the face amount of the ARS owned by FSC and its Affiliates as of Closing and (ii) the face amount of the Repurchased FINRA Settlement ARS. Any Escrowed Earnout Shares that are not
distributed on the Earnout Distribution Date pursuant to this Section 2.8 shall no longer be outstanding and shall be cancelled (“Cancelled Escrowed Earnout Shares”). Any dividends declared with respect to such
Cancelled Escrowed Earnout Shares, including any interest earned thereon, shall be repaid by the Escrow Agent to Parent on the Earnout Distribution Date as the Excess Dividend Amount as provided in this Section 2.8(b) and
Section 2.8(d).” 
 2. Section 2.8(d) of the Merger Agreement is hereby deleted in its entirety and replaced
with the following: 
 “(d) The Company Stockholders shall be treated during the term of the Escrow Agreement as the
owner of the Escrowed Earnout Shares for Tax purposes. The Company Stockholders shall be responsible for any Taxes related to the Escrowed Earnout Shares and the income and earnings thereon. Subject to Section 2.8(b), during the period
beginning on the day immediately after the Closing Date and ending on the Earnout Distribution Date, each Company Stockholder shall, as record holder of the Escrowed Earnout Shares, have the right to vote such shares and the right to receive forty

  

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percent (40%) of any dividends distributed thereon. The remaining sixty percent (60%) of any dividends paid with respect to the Escrowed Earnout
Shares shall be deposited with the Escrow Agent and distributed to Company Stockholders in their Pro Rata Percentage on the Earnout Distribution Date in accordance with Section 2.8(b) hereof less (i) any Excess Dividend
Amount less (ii) any ARS Losses less (iii) any Municipal Derivatives Litigation Liabilities less (iv) any amount distributed to the Stockholders’ Representative as reimbursement for reasonable expenses
incurred by the Stockholders’ Representative in connection with the performance of his duties as such under this Agreement. On the Earnout Distribution Date, any cash balance not distributed to Company Stockholders pursuant to this
Section 2.8(d), including any interest earned on the dividends, shall be paid by the Escrow Agent to Parent to reimburse Parent for any Excess Dividend Amount, ARS Losses, or Municipal Derivatives Litigation Liabilities.”

 3. Section 4.2 of the Merger Agreement is hereby deleted in its entirety and replaced with the following: 
 “Section 4.2 Authority. Both Parent and Merger Sub have all requisite corporate power, authority and legal capacity to execute
and deliver this Agreement and each Related Agreement to which it is a party, to perform its obligations hereunder and thereunder and upon receipt of all Regulatory Approvals to consummate the Contemplated Transactions, including the Merger. The
execution, delivery and performance of this Agreement and each Related Agreement to which Parent or Merger Sub is a party, and the consummation of the transactions contemplated hereby and thereby, have been duly authorized and approved by all
required action on the part of Parent and Merger Sub, as applicable. This Agreement has been, and each Related Agreement to which Parent or Merger Sub is a party will be at or prior to the Closing, duly and validly executed and delivered by Parent
or Merger Sub and (assuming due authorization, execution and delivery by the other parties hereto and thereto), this Agreement constitutes, and each such Related Agreement when so executed and delivered will constitute, legal, valid and binding
obligations of Parent and Merger Sub, enforceable against Parent and Merger Sub in accordance with their respective terms, subject only to the effect, if any, of (i) applicable bankruptcy, insolvency, moratorium or other similar Laws affecting
the rights of creditors generally and (ii) rules of Law governing specific performance, injunctive relief and other equitable remedies 
 4. Section 5.11 of the Merger Agreement is hereby deleted in its entirety and replaced with the following: 
 “Section 5.11 Directors and Managers of Parent and Surviving LLC After Closing. Parent shall take all necessary action so that, as of the Effective Time: (a) the number of directors that shall constitute the full board of
directors of Parent is increased by two (2) from the number of directors serving on the Board of Directors of Parent immediately prior to the Effective Time; (b) Hill A. Feinberg and Michael Bartolotta shall each be elected or appointed to
serve as a member of the Board of Directors of Parent in accordance with the Parent Charter and the Parent Bylaws for three (3) consecutive one-year terms; (c) David Medanich shall be elected or appointed to serve as an advisory member of
the Board of Directors of Parent in accordance with the Parent Charter and the 

  

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Parent Bylaws until the next annual meeting of the shareholders of the Parent; (d) Hill A. Feinberg shall be elected or appointed to serve as a member
of the Executive Committee of the Board of Managers of the Surviving LLC in accordance with the certificate of formation and limited liability company agreement of the Surviving LLC; (e) Alan B. White, De Pierce and Jerry Schaffner shall each
be elected or appointed to serve as a member of the Board of Managers of the Surviving LLC in accordance with the certificate of formation and limited liability company agreement of the Surviving LLC; and (f) Alan B. White shall be elected or
appointed to serve as a member of the Executive Committee of the Board of Managers of the Surviving LLC in accordance with the certificate of formation and limited liability company agreement of the Surviving LLC. Parent shall take all necessary
action so that, as of the next annual meeting of the shareholders of the Parent: (a) the number of directors that shall constitute the full board of directors of Parent is increased by one (1) from the number of directors serving on the
Board of Directors of Parent immediately following the Effective Time and (b) David Medanich shall be elected or appointed to serve as a member of the Board of Directors of Parent in accordance with the Parent Charter and the Parent Bylaws for
three (3) consecutive one-year terms.” 
 5. Section 5.20 of the Merger Agreement is hereby deleted in its entirety and
replaced with the following: 
 “Section 5.20 Formation of Merger Sub. The Bank has caused Merger Sub to be duly
organized as a wholly-owned direct Subsidiary of the Bank pursuant to the Certificate of Formation and the Limited Liability Company Agreement attached hereto as Exhibit D and Exhibit E, and has caused Merger Sub a party to
become a party to the Agreement and assume all of the Bank’s rights and obligations under the Agreement. In addition, prior to the Closing Date, the Bank shall cause the Board of Managers and the sole member of Merger Sub to approve the Merger
and the consummation of the transactions described in this Agreement and shall cause the Contemplated Transactions to be authorized and approved by all necessary action on the part of Merger Sub.” 
 6. Section 7.6(c) of the Merger Agreement is hereby deleted in its entirety and replaced with the following: 
 “(c) A registration rights agreement, in form and substance reasonably acceptable to Parent (the “Registration Rights
Agreement”), duly executed by the Stockholders’ Representative on behalf of each of the Company Stockholders;” 
 7.
Merger Sub hereby agrees that upon execution of this Amendment it shall become a party to the Merger Agreement and shall assume and be fully bound by, and subject to, all of the rights and obligations, but not the representations and warranties,
except as otherwise provided in this paragraph, of the Bank under the Merger Agreement and shall be deemed to be a party to the Merger Agreement for all purposes thereof. Notwithstanding anything herein to the contrary, Merger Sub shall be deemed a
Parent Company for purposes of Sections 4.1(b) and 4.6 of the Merger Agreement. 
  

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 8. Except as modified by this Amendment, the Merger Agreement shall remain unmodified and is confirmed as
being in full force and effect. 
 9. This Amendment may be executed in multiple counterparts, each of which shall be deemed to be an
original by the parties executing such counterpart, but all of which shall be considered one and the same instrument. 
 10. This Amendment
shall be governed by, and construed in accordance with the laws of the State of Texas, regardless of the laws that might otherwise govern under applicable principles of conflicts of laws. 
 11. This Amendment shall bind and inure to the benefit of the parties hereto and their respective successors and assigns. 
 [Signature Page Follows] 
  

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 IN WITNESS WHEREOF, this Amendment has been duly executed by each of the parties hereto as of the
date first written above. 
  

			
	FIRST SOUTHWEST HOLDINGS, INC.
		
	By:	 	/s/ Hill A. Feinberg
		 	Hill A. Feinberg
		 	Chairman and Chief Executive Officer
	
	PLAINS CAPITAL CORPORATION
		
	By:	 	/s/ Alan B. White
		 	Alan B. White
		 	Chairman and Chief Executive Officer
	
	PLAINSCAPITAL BANK
		
	By:	 	/s/ Alan B. White
		 	Alan B. White
		 	Chairman and Chief Executive Officer
	
	FSWH ACQUISITION LLC
		
	By:	 	/s/ Alan B. White
		 	Alan B. White
		 	Manager

 Signature Page to 
 Second Amendment to Agreement and Plan of Merger 

	
	 HILL A. FEINBERG,
 as Stockholders’
Representative

	
	/s/ Hill A. Feinberg
	Hill A. Feinberg

 Signature Page to 
 Second Amendment to Agreement and Plan of Merger

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