Document:

EXHIBIT 10.2

 

REGISTRATION RIGHTS AGREEMENT

 

This Registration Rights
Agreement (this “Agreement”) is made and entered into as of September 3, 2014, between Soligenix, Inc., a Delaware
corporation (the “Company”), and Hy BioPharma, Inc., a Delaware corporation (the “Investor”).

 

Recital

 

A.            This Agreement is made
pursuant to the Exclusive Option to Purchase Assets dated as of April 1, 2014 by and between the Company and the Investor (the
“Option Agreement”) and the Asset Purchase Agreement, dated as of the date hereof between the Company and the
Investor (the “Purchase Agreement”).

 

The Company and the Investor
hereby agree as follows:

 

1.             Definitions.
Capitalized terms used and not otherwise defined herein that are defined in the Purchase Agreement shall have the meanings given
such terms in the Purchase Agreement. As used in this Agreement, the following terms shall have the following meanings:

 

“Advice”
shall have the meaning set forth in Section 6(c).

 

“Common Stock”
means the common stock of the Company, par value $.001 per share, and any securities into which such common stock may hereafter
be classified.

 

“Effectiveness
Date” means, (a) with respect to the Registration Statement required to be filed hereunder with respect to the Option
Shares, November 5, 2014, (b) with respect to the initial Registration Statement required to be filed hereunder with respect to
the Shares, the date that is 180 days following the date of issuance of such Registrable Securities, and (c) with respect to any
additional Registration Statement(s) that may be required pursuant to Section 2(b), the earlier of (i) the 30th calendar
day following (x) the first date or time that such Registrable Securities may then be included in a Registration Statement, if
such Registration Statement is required because the Commission shall have notified the Company in writing that certain Registrable
Securities were not eligible for inclusion on a previously filed Registration Statement, or (y) the date on which the Company
first knows, or reasonably should have known, that such additional Registration Statement(s) is required if such Registration
Statement is required for a reason other than as described in (x) above, and (ii) the fifth Trading Day following the date on
which the Company is notified by the Commission that such additional Registration Statement will not be reviewed or is no longer
subject to further review and comments.

 

 Effectiveness
Period” shall have the meaning set forth in Section 2(a).

 

“Holder”
or “Holders” means the holder or holders, as the case may be, from time to time of Registrable Securities.

 

“Indemnified Party”
shall have the meaning set forth in Section 5(c).

 

    	

    	 

    

 

“Indemnifying
Party” shall have the meaning set forth in Section 5(c).

 

“Losses”
shall have the meaning set forth in Section 5(a).

 

“Option Shares”
shall have the meaning set forth in the Option Agreement.

 

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

 

“Prospectus”
means the prospectus included in a Registration Statement (including, without limitation, a prospectus that includes any information
previously omitted from a prospectus filed as part of an effective registration statement in reliance upon Rule 430A promulgated
under the Securities Act), as amended or supplemented by any prospectus supplement, with respect to the terms of the offering of
any portion of the Registrable Securities covered by the Registration Statement, and all other amendments and supplements to the
Prospectus, including post-effective amendments, and all material incorporated by reference or deemed to be incorporated by reference
in such Prospectus.

 

“Registrable Securities”
means all of the Option Shares and the Shares, together with any shares of Common Stock issued or issuable upon any stock split,
dividend or other distribution, recapitalization or similar event with respect to the foregoing.

 

“Registration
Statement” means the registration statement(s) required to be filed hereunder, including (in each case) the Prospectus,
amendments and supplements to such registration statement(s) or Prospectus, including pre- and post-effective amendments, all exhibits
thereto, and all material incorporated by reference or deemed to be incorporated by reference in such registration statement(s).

 

“Rule 415”
means Rule 415 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended 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 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.

 

“Trading Day”
means (i) a day on which the Common Stock is traded in the over-the-counter market, as reported by OTC Markets Group, Inc., or
(ii) if the Common Stock is not quoted by OTC Markets Group, Inc., a day on which the Common Stock is quoted in the over-the-counter
market as reported by the National Quotation Bureau Incorporated (or any similar organization or agency succeeding to its functions
of reporting prices); provided, that in the event that the Common Stock is not listed or quoted as set forth in (i) and (ii) hereof,
then Trading Day shall mean a Business Day.

 

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2.             Registration.

 

(a)            The Company shall as soon as reasonably practicable prepare and file with the Commission a Registration Statement covering
the resale of all of the Registrable Securities for an offering to be made on a continuous basis pursuant to Rule 415. The
Registration Statement required hereunder shall be on Form S-1 (except if the Company is not then eligible to register for
resale the Registrable Securities on Form S-1, in which case the Registration shall be on another appropriate form in
accordance herewith). The Registration Statement required hereunder shall contain (except if otherwise directed by the
Holders) the “Plan of Distribution” attached hereto as Annex A. Subject to the terms of this
Agreement, the Company shall use its best efforts to cause the Registration Statement to be declared effective under the
Securities Act as promptly as possible after the filing thereof, but in any event not later than the Effectiveness Date, and
shall use its best efforts to keep the Registration Statement continuously effective under the Securities Act until the
earlier of: (i) the date when all Registrable Securities covered by the Registration Statement have been sold, (ii) when all
Registrable Securities covered by the Registration Statement may be sold without volume restrictions pursuant to Rule
144(b)(i) promulgated under the Securities Act, and (iii) one year from the date of issuance of the applicable Registrable
Securities (the “Effectiveness Period”).

 

(b)
           If for any reason the Commission does not permit all of the Shares to be included in the Registration Statement filed pursuant
to Section 2(a), then the Registrable Securities that are included in such offering shall be allocated among the Holders
in proportion (as nearly as practicable) to the number of Registrable Securities owned by each Holder, or in such other proportions
as shall mutually be agreed to by all such Holders. To facilitate the allocation of shares in accordance with the above provisions,
the Company may round the number of shares allocated to any Holder to the nearest 100 shares. If for any reason the Commission
does not permit all of the Shares to be included in the Registration Statement filed pursuant to Section 2(a) or for any
other reason any Registrable Securities are not then included in a Registration Statement filed under this Agreement, then the
Company shall prepare and file as soon as possible after the date on which such filing may be made an additional Registration Statement
covering the resale of all Registrable Securities not already covered by an existing and effective Registration Statement for an
offering to be made on a continuous basis pursuant to Rule 415. Each such Registration Statement shall contain (except if otherwise
directed by the Holders) the “Plan of Distribution” attached hereto as Annex A. The Company shall use its best
efforts to cause each such Registration Statement to be declared effective under the Securities Act as soon as possible but, in
any event, no later than its Effectiveness Date, and shall use its best efforts to keep such Registration Statement continuously
effective under the Securities Act during its entire Effectiveness Period.

 

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(c)
            Notwithstanding anything to the contrary contained in this Agreement, in the event the staff of the Commission (the
“Staff”) or the Commission requires any Holder seeking to sell securities under a Registration Statement
filed pursuant to this Agreement to be specifically identified as an “underwriter” in order to permit such
Registration Statement to become effective, and such Holder does not consent to being so named as an underwriter in such
Registration Statement, then in each such case, the Company shall reduce the total number of Registrable Securities to be
registered on behalf of such Holder, until such time as the Staff or the Commission does not require such identification or
until such Holder accepts such identification and the manner thereof. In the event of any reduction pursuant to this Section
2(c), no Holder shall have any claim against the Company as a result of such reduction. In the event of any reduction in
Registrable Securities pursuant to this Section 2(c), an affected Holder shall have the right to require, upon
delivery of a written request to the Company signed by the Holder, the Company to file a registration statement within 30
days of such request (subject to any restrictions imposed by Rule 415 or required by the Staff or the Commission) for re-sale
by such Holder in a manner acceptable to such Holder, and the Company shall following such request cause to be and keep
effective such registration statement in the same manner as otherwise contemplated in this Agreement for
registration statements hereunder, in each case until the earlier of such time as: (i) all Registrable Securities held by
such Holder have been registered pursuant to an effective Registration Statement in a manner acceptable to such Holder or
(ii) the Registrable Securities may be resold by such Holder without restriction (including volume limitations) pursuant to
Rule 144(b)(i) of the Securities Act (taking account of any Staff position with respect to “affiliate” status) or
(iii) one year from the date of issuance of the applicable Registrable Securities or (iv) the Holder agrees to be named as an
underwriter in any such Registration Statement in a manner acceptable to Holder as to all Registrable Securities held by such
Holder and that have not theretofore been included in a Registration Statement under this Agreement (it being understood that
the special demand right under this sentence may be exercised by a Holder multiple times and with respect to limited amounts
of Registrable Securities in order to permit the re-sale thereof by such Holder as contemplated above).

 

(d)
            By 5:30 p.m. on the Trading Day immediately following the Effective Date of each Registration Statement, the Company shall
file with the Commission in accordance with Rule 424 under the Securities Act the final prospectus to be used in connection
with sales pursuant to such Registration Statement.

 

3.             Registration
Procedures

 

In connection with the Company's
registration obligations hereunder, the Company shall:

 

(a)            Not less than three Trading
Days prior to the filing of a Registration Statement or any related Prospectus or any amendment or supplement thereto, the Company
shall furnish to the Holders copies of the “Selling Stockholders” and the “Plan of Distribution” sections
and any risk factor contained in such document that addresses specifically this transaction or the Selling Stockholders, as proposed
to be filed which documents will be subject to the review of such Holders.

 

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(b)            
(i) Prepare and file with the Commission such amendments, including post-effective amendments, to the Registration Statement and
the Prospectus used in connection therewith as may be necessary to keep the Registration Statement continuously effective as to
the applicable Registrable Securities for the Effectiveness Period and prepare and file with the Commission such additional Registration
Statements in order to register for resale under the Securities Act all of the Registrable Securities; (ii) cause the related
Prospectus to be amended or supplemented by any required Prospectus supplement, and as so supplemented or amended to be filed
pursuant to Rule 424; (iii) respond as promptly as reasonably possible to any comments received from the Commission with respect
to the Registration Statement or any amendment thereto and, as promptly as reasonably possible, upon request, provide the Holders
true and complete copies of all correspondence from and to the Commission relating to the Registration Statement; and (iv) comply
in all material respects with the provisions of the Securities Act and the Exchange Act with respect to the disposition of all
Registrable Securities covered by the Registration Statement (to the extent such provisions are applicable to the Company). Notwithstanding
anything else contained herein to the contrary, the Company shall not provide any material, nonpublic information to the Holders.
The Company shall ensure that each Registration Statement (including any amendments or supplements or prospectuses contained therein)
shall not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein, or necessary
to make the statements therein (in the case of prospectuses, in light of the circumstances in which they were made) not misleading.

 

(c)            Notify the Holders of
Registrable Securities as promptly as reasonably possible (and, in the case of (i)(A) below, not less than two Trading Days prior
to such filing) and (if requested by any such Person) confirm such notice in writing promptly following the day (i)(A) when a
Prospectus or any Prospectus supplement or post-effective amendment to the Registration Statement is proposed to be filed; (B)
when the Commission notifies the Company whether there will be a “review” of the Registration Statement and whenever
the Commission comments in writing on the Registration Statement (the Company shall provide copies thereof and all written responses
thereto to each of the Holders to the extent such materials address the Selling Stockholder or Plan of Distribution sections of
the Registration Statement, and to the extent they address risk factors or other disclosures in such Registration Statement particular
to the Holder or the transactions contemplated hereby); and (C) with respect to the Registration Statement or any post-effective
amendment, when the same has become effective; (ii) of any request by the Commission or any other Federal or state governmental
authority during the period of effectiveness of the Registration Statement for amendments or supplements to the Registration Statement
or Prospectus or for additional information; (iii) of the issuance by the Commission or any other federal or state governmental
authority of any stop order suspending the effectiveness of the Registration Statement covering any or all of the Registrable
Securities or the initiation of any Proceedings for that purpose; (iv) of the receipt by the Company of any notification with
respect to the suspension of the qualification or exemption from qualification of any of the Registrable Securities for sale in
any jurisdiction, or the initiation or threatening of any Proceeding for such purpose; and (v) of the occurrence of any event
or passage of time that makes the financial statements included in the Registration Statement ineligible for inclusion therein
or any statement made in the Registration Statement or Prospectus or any document incorporated or deemed to be incorporated therein
by reference untrue in any material respect or that requires any revisions to the Registration Statement, Prospectus or other
documents so that, in the case of the Registration Statement or the Prospectus, as the case may be, it 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, in light of the circumstances under which they were made, not misleading. The Company shall submit a request for acceleration
of the Registration Statement to the Commission, within two (2) Trading Days after the date the Company learns that no review
of a particular Registration Statement will be made by the Staff or Commission or that the Staff has no further comments on a
Registration Statement.

 

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(d)            Use reasonable best efforts
to avoid the issuance of, or, if issued, obtain the withdrawal of (i) any order suspending the effectiveness of the Registration
Statement, or (ii) any suspension of the qualification (or exemption from qualification) of any of the Registrable Securities
for sale in any jurisdiction, at the earliest practicable moment.

 

(e)            Deliver to each Holder,
by 5:30 p.m. (Eastern time) on the second day following the Effective Date, without charge, as many copies of the Prospectus or
Prospectuses (including each form of prospectus) and each amendment or supplement thereto as such Persons may reasonably request
in connection with resales by the Holder of Registrable Securities. Subject to the terms of this Agreement, the Company hereby
consents to the use of such Prospectus and each amendment or supplement thereto by each of the selling Holders in connection with
the offering and sale of the Registrable Securities covered by such Prospectus and any amendment or supplement thereto, subject
to notices pursuant to Section 3(c).

 

(f)            Prior to any resale of
Registrable Securities by a Holder, use its commercially reasonable efforts to register or qualify or cooperate with the selling
Holders in connection with the registration or qualification (or exemption from the Registration or qualification) of such Registrable
Securities for the resale by the Holder under the securities or “Blue Sky” laws of such jurisdictions within the United
States as any Holder reasonably requests in writing, to keep the Registration or qualification (or exemption therefrom) effective
during the Effectiveness Period and to do any and all other acts or things reasonably necessary to enable the disposition in such
jurisdictions of the Registrable Securities covered by the Registration Statement; provided, that the Company shall not
be required to qualify generally to do business or file a general consent to service of process in any jurisdiction where it is
not then so qualified.

 

(g)            If requested by the Holders,
cooperate with each Holder to facilitate the timely preparation and delivery of certificates representing Registrable Securities
to be delivered to a transferee pursuant to the Registration Statement, which certificates shall be free, to the extent permitted
by the Purchase Agreement, of all restrictive legends, and to enable such Registrable Securities to be in such denominations and
registered in such names as any such Holders may request.

 

(h)            Upon the occurrence of
any event contemplated by this Section 3, as promptly as commercially reasonably possible under the circumstances taking
into account the good faith determination of the Company’s Board of Directors of adverse consequences to the Company and
its stockholders of the premature disclosure of material non-public information, prepare a supplement or amendment, including
a post-effective amendment, to the Registration Statement or a supplement to the related Prospectus or any document incorporated
or deemed to be incorporated therein by reference, and file any other required document so that, as thereafter delivered, neither
the Registration Statement nor such Prospectus will contain an untrue statement of a material fact or omit to state a material
fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they
were made, not misleading. If the Company notifies the Holders in accordance with clauses (ii) through (v) of Section 3(c)
above to suspend the use of any Prospectus until the requisite changes to such Prospectus have been made, then the Holders
shall suspend use of such Prospectus. The Company will use its best efforts to ensure that the use of the Prospectus may be resumed
as promptly as is commercially practicable. The Company shall be entitled to exercise its right under this Section 3(h)
to suspend the availability of a Registration Statement and Prospectus for a period not to exceed a period of 30 consecutive days
and for no more than an aggregate of 60 days (which need not be consecutive days) in any 12 month period. The Company shall not
be entitled to exercise its right under this Section 3(h) during the first 30 Trading Days after a Registration Statement
is declared effective by the Commission.

 

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(i)            Comply with all applicable
rules and regulations of the Commission.

 

(j)            Each Holder agrees to
furnish to the Company a completed Questionnaire in the form attached to this Agreement as Annex B (a “Selling
Holder Questionnaire”). The Company shall not be required to include the Registrable Securities of a Holder in a Registration
Statement who fails to furnish to the Company a fully completed Selling Holder Questionnaire at least one Trading Day prior to
the filing of a Registration Statement or any related Prospectus or any amendment or supplement thereto (subject to the requirements
set forth in Section 3(a)).

 

(k)            Upon notification
by the Commission that a Registration Statement will not be reviewed or is no longer subject to further review and comments, the
Company shall request acceleration of such Registration Statement such that it becomes effective at 5:00 p.m. (New York City time)
on the second (2nd) Trading Day following receipt of such notification.

 

(l)            If requested by a Holder, the Company shall as soon as practicable after receipt of notice from such Holder, use reasonable
best efforts to (i) incorporate in a prospectus supplement or post-effective amendment such information as a Holder
reasonably requests to be included therein relating to the sale and distribution of Registrable Securities, including,
without limitation, information with respect to the number of Registrable Securities being offered or sold, the purchase
price being paid therefor and any other terms of the offering of the Registrable Securities to be sold in such offering; (ii)
make all required filings of such prospectus supplement or post-effective amendment after being notified of the matters to be
incorporated in such prospectus supplement or post-effective amendment; and (iii) supplement or make amendments to any
Registration Statement if reasonably requested by a Holder holding any Registrable Securities.

 

(m)            The Company shall make generally available to its security holders as soon as practical, but not later than 90 days after the
close of the period covered thereby, an earnings statement (in form complying with, and in the manner provided by, the
provisions of Rule 158 under the 1933 Act) covering a twelve-month period beginning not later than the first day of the
Company’s fiscal quarter next following the Effective Date of the Registration Statement or any additional registration
statement required by the terms of this Agreement.

 

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4.            Registration Expenses.
All fees and expenses incident to the performance of or compliance with this Agreement by the Company shall be borne by the Company
whether or not any Registrable Securities are sold pursuant to the Registration Statement. The fees and expenses referred to in
the foregoing sentence shall include, without limitation, (i) all registration and filing fees (including, without limitation,
fees and expenses in compliance with applicable state securities or Blue Sky laws), (ii) printing expenses (including, without
limitation, expenses of printing certificates for Registrable Securities and of printing prospectuses if the printing of prospectuses
is reasonably requested by the holders of a majority of the Registrable Securities included in the Registration Statement), (iii)
messenger, telephone and delivery expenses, (iv) fees and disbursements of counsel for the Company, (v) Securities Act liability
insurance, if the Company so desires such insurance, and (vi) fees and expenses of all other persons or entities retained by the
Company in connection with the consummation of the transactions contemplated by this Agreement. In addition, the Company shall
be responsible for all of its internal expenses incurred in connection with the consummation of the transactions contemplated
by this Agreement (including, without limitation, all salaries and expenses of its officers and employees performing legal or
accounting duties), the expense of any audit. In no event shall the Company be responsible for any broker or similar commissions
of the Holders.

 

5.             Indemnification

 

(a)            Indemnification by the Company. The Company shall, notwithstanding any termination of this Agreement, indemnify and hold
harmless each Holder, the officers, directors, agents employees, and representatives of each of them, each person or entity who
controls any such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) and the officers,
directors, agents and employees of each such controlling person or entity, to the fullest extent permitted by applicable law,
from and against any and all losses, claims, damages, liabilities, costs (including, without limitation, reasonable attorneys'
fees) and expenses (collectively, “Losses”), as incurred, arising out of or relating to (i) any untrue or alleged
untrue statement of a material fact contained in the Registration Statement, any Prospectus or any form of prospectus or in any
amendment or supplement thereto or in any preliminary prospectus, or arising out of or relating to any omission or alleged omission
of a material fact required to be stated therein or necessary to make the statements therein (in the case of any Prospectus or
form of prospectus or supplement thereto, in light of the circumstances under which they were made) not misleading, except to
the extent, but only to the extent, that (A) such untrue statements or omissions are based solely upon information regarding such
Holder furnished in writing to the Company by such Holder expressly for use therein, or to the extent that such information relates
to such Holder or such Holder's proposed method of distribution of Registrable Securities and was reviewed and expressly approved
in writing by such Holder expressly for use in the Registration Statement, such Prospectus or such form of Prospectus or in any
amendment or supplement thereto (it being understood that the Holder has approved Annex A hereto for this purpose),
(B) in the case of an occurrence of an event of the type specified in Section 3(c)(ii)-(v), the use by such Holder of an
outdated or defective Prospectus after the Company has notified such Holder in writing that the Prospectus is outdated or defective
and prior to the receipt by such Holder of the Advice or an amended or supplemented Prospectus, but only if and to the extent
that following the receipt of the Advice or the amended or supplemented Prospectus the misstatement or omission giving rise to
such Loss would have been corrected and no grounds for such Loss would have existed, or (C) such Holder fails to comply with any
applicable prospectus delivery requirements of the Securities Act applicable to it in connection with sales of Registrable Securities
pursuant to a Registration Statement or (ii) any violation or alleged violation by the Company of the Securities Act, the Exchange
Act, any other law, including, without limitation, any state securities law, or any rule or regulation thereunder relating to
the offer or sale of the Registrable Securities pursuant to a Registration Statement.. The Company shall notify the Holders promptly
of the institution, threat or assertion of any Proceeding of which the Company is aware in connection with the transactions contemplated
by this Agreement. Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of
the Indemnified Party and shall survive the transfer of any of the Registrable Securities by any of the Holders.

 

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(b)            Indemnification
by Holders. Each Holder shall, severally and not jointly, indemnify and hold harmless the Company, its directors,
officers, agents and employees, each person or entity who controls the Company (within the meaning of Section 15 of the
Securities Act and Section 20 of the Exchange Act), and the directors, officers, agents or employees of such controlling
persons or entities, to the fullest extent permitted by applicable law, from and against all Losses, as incurred, arising
solely out of or based solely upon: (x) such Holder's failure to comply with the prospectus delivery requirements of the
Securities Act to the extent that delivery of such Prospectus would have avoided such Loss or (y) any untrue or alleged
untrue statement of a material fact contained in any Registration Statement, any Prospectus, or any form of prospectus, or in
any amendment or supplement thereto or in any preliminary prospectus, or arising solely out of or based solely upon any
omission or alleged omission of a material fact required to be stated therein or necessary to make the statements therein not
misleading to the extent, but only to the extent, that such untrue statements or omissions are based solely upon information
regarding such Holder furnished in writing to the Company by such Holder expressly for use therein. In no event shall the
liability of any selling Holder hereunder be greater in amount than the dollar amount of the net proceeds received by such
Holder upon the sale of the Registrable Securities giving rise to such indemnification obligation. The indemnity agreement
contained in this Section 6(b) and the agreement with respect to contribution contained in Section 6(d) shall not apply to
amounts paid in settlement of any Losses if such settlement is effected without the prior written consent of the applicable
Holder, which consent shall not be unreasonably withheld or delayed.

 

(c)           Conduct of Indemnification Proceedings. If any Proceeding shall be brought or asserted against any person or entity entitled
to indemnity hereunder (an “Indemnified Party”), such Indemnified Party shall promptly notify the person or
entity from whom indemnity is sought (the “Indemnifying Party”) in writing, and the Indemnifying Party shall
have the right to assume the defense thereof, including the employment of counsel reasonably satisfactory to the Indemnified Party
and the payment of all fees and expenses incurred in connection with defense thereof; provided, that the failure of any Indemnified
Party to give such notice shall not relieve the Indemnifying Party of its obligations or liabilities pursuant to this Agreement,
except (and only) to the extent that it shall be finally determined by a court of competent jurisdiction (which determination
is not subject to appeal or further review) that such failure shall have proximately and materially prejudiced the Indemnifying
Party.

 

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An Indemnified Party shall
have the right to employ separate counsel in any such Proceeding and to participate in the defense thereof, but the fees and expenses
of such counsel shall be at the expense of such Indemnified Party or Parties unless: (1) the Indemnifying Party has agreed in writing
to pay such fees and expenses; (2) the Indemnifying Party shall have failed promptly to assume the defense of such Proceeding and
to employ counsel reasonably satisfactory to such Indemnified Party in any such Proceeding; or (3) the named parties to any such
Proceeding (including any impleaded parties) include both such Indemnified Party and the Indemnifying Party, and such Indemnified
Party shall have been advised by counsel that a conflict of interest is likely to exist if the same counsel were to represent such
Indemnified Party and the Indemnifying Party (in which case, if such Indemnified Party notifies the Indemnifying Party in writing
that it elects to employ separate counsel at the expense of the Indemnifying Party, the Indemnifying Party shall not have the right
to assume the defense thereof and the reasonable fees and expenses of such separate counsel shall be at the expense of the Indemnifying
Party). The Indemnifying Party shall not be liable for any settlement of any such Proceeding effected without its written consent,
which consent shall not be unreasonably withheld. No Indemnifying Party shall, without the prior written consent of the Indemnified
Party, which consent shall not be unreasonably withheld, effect any settlement of any pending Proceeding in respect of which any
Indemnified Party is a party, unless such settlement includes an unconditional release of such Indemnified Party from all liability
on claims that are the subject matter of such Proceeding.

 

Subject to the terms of
this Agreement, all reasonable fees and expenses of the Indemnified Party (including reasonable fees and expenses to the extent
incurred in connection with investigating or preparing to defend such Proceeding in a manner not inconsistent with this Section)
shall be paid to the Indemnified Party, as incurred, within ten Trading Days of written notice thereof to the Indemnifying Party
(regardless of whether it is ultimately determined that an Indemnified Party is not entitled to indemnification hereunder; provided,
that such Indemnified Party shall promptly reimburse the Indemnifying Party all such fees and expenses to the extent it is finally
judicially determined that such Indemnified Party is not entitled to indemnification hereunder).

 

(d)            Contribution.
If a claim for indemnification under Section 5(a) or 5(b) is unavailable to an Indemnified Party (by reason of public policy
or otherwise), then each Indemnifying Party, in lieu of indemnifying such Indemnified Party, shall contribute to the amount paid
or payable by such Indemnified Party as a result of such Losses, in such proportion as is appropriate to reflect the relative
fault of the Indemnifying Party and Indemnified Party in connection with the actions, statements or omissions that resulted in
such Losses as well as any other relevant equitable considerations. The relative fault of such Indemnifying Party and Indemnified
Party shall be determined by reference to, among other things, whether any action in question, including any untrue or alleged
untrue statement of a material fact or omission or alleged omission of a material fact, has been taken or made by, or relates
to information supplied by, such Indemnifying Party or Indemnified Party, and the parties' relative intent, knowledge, access
to information and opportunity to correct or prevent such action, statement or omission. The amount paid or payable by a party
as a result of any Losses shall be deemed to include, subject to the limitations set forth in this Section 5, any reasonable
attorneys’ or other reasonable fees or expenses incurred by such party in connection with any Proceeding to the extent such
party would have been indemnified for such fees or expenses if the indemnification provided for in this Section was available
to such party in accordance with its terms.

 

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 The parties hereto agree that it would not
be just and equitable if contribution pursuant to this Section 5(d) were determined by pro rata allocation or by any other
method of allocation that does not take into account the equitable considerations referred to in the immediately preceding paragraph.
Notwithstanding the provisions of this Section 5(d), (i) no Holder shall be required to contribute, in the aggregate, any
amount in excess of the amount by which the net proceeds actually received by such Holder from the sale of the Registrable Securities
subject to the Proceeding exceeds the amount of any damages that such Holder has otherwise been required to pay, or would otherwise
be required to pay under Section 5(b), by reason of such untrue or alleged untrue statement or omission or alleged omission;
(ii) no contribution shall be made under circumstances where the maker would not have been liable for indemnification under the
fault standards set forth in this Section 5 and (iii) no Person involved in the sale of Registrable Securities which Person
is guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) in connection with such sale
shall be entitled to contribution from any Person involved in such sale of Registrable Securities who was not guilty of fraudulent
misrepresentation.

 

The indemnity and contribution
agreements contained in this Section are in addition to any liability that the Indemnifying Parties may have to the Indemnified
Parties.

 

6.             Reports Under
the Exchange Act. With a view to making available to the Holders the benefits of Rule 144 promulgated under the Securities
Act or any other similar rule or regulation of the Commission that may at any time permit the Holders to sell securities of the
Company to the public without registration, the Company agrees to use reasonable best efforts to:

 

(a)          make and keep public information available, as those terms are understood and defined in Rule 144;

 

(b)          file with the Commission in a timely manner all reports and other documents required of the Company under the Securities Act
and the Exchange Act so long as the Company remains subject to such requirements (it being understood that nothing herein
shall limit the Company’s obligations under the Purchase Agreement) and the filing of such reports and other documents
is required for the applicable provisions of Rule 144;

 

(c)          furnish to each Holder so long as such Holder owns Registrable Securities, promptly upon request, (i) a written statement by
the Company, if true, that it has complied with the reporting requirements of Rule 144, the Securities Act and the Exchange
Act, (ii) a copy of the most recent annual or quarterly report of the Company and such other reports and documents so filed
by the Company if such reports are not publicly available via EDGAR, and (iii) such other information as may be reasonably
requested to permit the Holders to sell such securities pursuant to Rule 144 without registration; and

 

(d)          procure the removal of the restrictive legend on the Registrable Securities held by a Holder as soon as reasonably
practicable following the receipt by the Company of a request for such removal; provided that the request is received at
least six month’s following the date that such Shares are issued pursuant to this Agreement.

    	11

    	 

    

 

 7.            Miscellaneous

 

(a)          Remedies.
In the event of a breach by the Company or by a Holder, of any of their obligations under this Agreement, each Holder or the
Company, as the case may be, in addition to being entitled to exercise all rights granted by law and under this Agreement,
including recovery of damages, will be entitled to specific performance of its rights under this Agreement. The Company and
each Holder agree that monetary damages would not provide adequate compensation for any losses incurred by reason of a breach
by it of any of the provisions of this Agreement and hereby further agrees that, in the event of any action for specific
performance in respect of such breach, it shall waive the defense that a remedy at law would be adequate.

 

(b)            Compliance.
Each Holder covenants and agrees that it will comply with the prospectus delivery requirements of the Securities Act as
applicable to it in connection with sales of Registrable Securities pursuant to the Registration Statement.

 

(c)            Discontinued
Disposition. Each Holder agrees by its acquisition of such Registrable Securities that, upon receipt of a notice from
the Company of the occurrence of any event of the kind described in Section 3(c), such Holder will forthwith
discontinue further sales of such Registrable Securities under the Registration Statement until such Holder's receipt of the
copies of the supplemented Prospectus and/or amended Registration Statement or until it is advised in writing (the
“Advice”) by the Company that the use of the applicable Prospectus may be resumed, and, in either case,
has received copies of any additional or supplemental filings that are incorporated or deemed to be incorporated by reference
in such Prospectus or Registration Statement. The Company will use its best efforts to ensure that the use of the Prospectus
may be resumed as promptly as is commercially practicable.

 

(d)           
Piggy-Back Registrations.

 

(i)  If
at any time during the Effectiveness Period there is not an effective Registration Statement covering all of the Registrable Securities
and the Company shall determine to prepare and file with the Commission a registration statement relating to an offering for its
own account or the account of others under the Securities Act of any of its equity securities, other than on Form S-4 or Form
S-8 (each as promulgated under the Securities Act) or their then equivalents relating to equity securities to be issued solely
in connection with any acquisition of any entity or business or equity securities issuable in connection with the stock option
or other employee benefit plans, then the Company shall send to each Holder a written notice of such determination and, if within
fifteen (15) days after the date of such notice, any such Holder shall so request in writing, the Company shall include in such
registration statement all or any part of such Registrable Securities such Holder requests to be registered, subject to customary
underwriter cutbacks applicable to all holders of registration rights.

 

(ii)   Except
as set forth on Schedule 7(d) attached hereto, neither the Company nor any of its security holders (other than the Holders in
such capacity pursuant hereto) may include securities of the Company in a Registration Statement required to be filed hereunder
other than the Registrable Securities, provided that no securities set forth on Schedule 7(d) may be included in a Registration
Statement if including any such securities would adversely affect any of the Holders. The Company shall not after the date hereof
until the initial Effective Date enter into any agreement providing any such right to any of its security holders.

 

    	12

    	 

    

 

(e)           Amendments
and Waivers. No provision of this Agreement may be waived or amended except in a written instrument signed by the Company
and the Holders holding a majority of the Registrable Securities. 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
either party to exercise any right hereunder in any manner impair the exercise of any such right.

 

(f)            Notices. Any
and all notices or other communications or deliveries required or permitted to be provided hereunder shall be made in
accordance with the provisions of the Purchase Agreement.

 

(g)            Successors and
Assigns. This Agreement shall inure to the benefit of and be binding upon the successors and permitted assigns of each of
the parties and shall inure to the benefit of each Holder. A Holder may assign any or all of its rights under this Agreement
to any person or entity to whom such Holder assigns or transfers any Registrable Securities, provided such transferee agrees
in writing to be bound, with respect to the transferred securities, by the provisions hereof that apply to a
“Holder.” The Company may not assign its rights or obligations hereunder.

 

(h)            Execution and
Counterparts. This Agreement may be executed in any number of counterparts, each of which when so executed shall be
deemed to be an original and, all of which taken together shall constitute one and the same Agreement. In the event that any
signature is delivered by facsimile or email transmission, such signature shall create a valid binding obligation of the
party executing (or on whose behalf such signature is executed) the same with the same force and effect as if such signature
were the original thereof.

 

(i)            Governing
Law. All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be
determined in accordance with the provisions of the Purchase Agreement.

 

(j)            Cumulative
Remedies. The remedies provided herein are cumulative and not exclusive of any remedies provided by law.

 

(k)            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 reasonable best 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.

 

    	13

    	 

    

 

 

(l)            Headings.
The headings in this Agreement are for convenience of reference only and shall not limit or otherwise affect the meaning
hereof.

 

(m)          Independent
Nature of Holders’ Obligations and Rights. The obligations of each Holder under this Agreement are several and not
joint with the obligations of any other Holder, and no Holder shall be responsible in any way for the performance of the
obligations of any other Holder under this Agreement. Nothing contained herein and no action taken by any Holder pursuant
hereto or thereto, shall be deemed to constitute the Holders as a partnership, an association, a joint venture or any other
kind of group or entity, or create a presumption that the Holders are in any way acting in concert or as a group or entity
and the Company acknowledges that the Holders are not acting in concert or as a group. Each Holder shall be entitled to
independently protect and enforce its rights, including, without limitation, the rights arising out of this Agreement, and it
shall not be necessary for any other Holder to be joined as an additional party in any proceeding for such purpose. The use
of a single agreement with respect to the obligations of the Company contained herein was solely in the control of the
Company, not the action or decision of any Holder, and was done solely for the convenience of the Company and not because it
was required or requested to do so by any Holder.

 

(n)            Further
Assurances. Each party shall do and perform, or cause to be done and performed, all such further acts and things, and
shall execute and deliver all such other agreements, certificates, instruments and documents as any other party may
reasonably request in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the
transactions contemplated hereby.

 

{signature page follows}

 

    	14

    	 

    

 

IN WITNESS WHEREOF, the parties have executed
this Registration Rights Agreement as of the date first written above.

 

	 	SOLIGENIX, INC.
	 	 	 
	 	By: 	/s/ Christopher J. Schaber
	 	Name:	Christopher J. Schaber, Ph.D.
	 	Title: 	President & CEO
	 	 
	 	HY BIOPHARMA, INC.
	 	 	 
	 	By: 	/s/ Robert J. Capetola
	 	Name:	Robert J. Capetola, Ph.D.
	 	Title:	CEO

 

    	15

    	 

    

  

SCHEDULE 7(d)

 

Pursuant to the engagement agreement dated February
6, 2014 (the “Engagement Agreement”) the Company granted Vista Partners LLC rights to include the shares issued thereunder
in a Company or investor initiated registration statement.

 

    	16

    	 

    

ANNEX A

 

Plan of Distribution

 

The selling stockholders
and any of their pledgees, donees, transferees, assignees and successors-in-interest may, from time to time, sell any or all of
their shares of common stock on any stock exchange, market or trading facility on which the shares are traded or in private transactions.
These sales may be at fixed or negotiated prices. The selling stockholders may use any one or more of the following methods when
selling shares:

 

		●	ordinary brokerage transactions and transactions in which the broker-dealer solicits investors;

		●	block trades in which the broker-dealer will attempt to sell the shares as agent but may position and resell a portion of the
block as principal to facilitate the transaction;

		●	purchases by a broker-dealer as principal and resale by the broker-dealer for its account;

		●	an exchange distribution in accordance with the rules of the applicable exchange;

		●	privately negotiated transactions;

		●	broker-dealers may agree with the selling stockholders to sell a specified number of such shares at a stipulated price per
share;

		●	a combination of any such methods of sale; and

		●	any other method permitted pursuant to applicable law.

The selling stockholders may also sell shares
under Rule 144 under the Securities Act, if available, rather than under this prospectus.

 

Broker-dealers engaged
by the selling stockholders may arrange for other brokers-dealers to participate in sales. Broker-dealers may receive commissions
or discounts from the selling stockholders (or, if any broker-dealer acts as agent for the investor of shares, from the purchaser)
in amounts to be negotiated. The selling stockholders do not expect these commissions and discounts to exceed what is customary
in the types of transactions involved.

 

The selling stockholders
may from time to time pledge or grant a security interest in some or all of the shares owned by them and, if they default in the
performance of their secured obligations, the pledgees or secured parties may offer and sell shares of common stock from time to
time under this prospectus, or under an amendment to this prospectus under Rule 424(b)(3) or other applicable provision of the
Securities Act amending the list of selling stockholders to include the pledgee, transferee or other successors in interest as
selling stockholders under this prospectus.

 

The selling stockholders
also may transfer the shares of common stock in other circumstances, in which case the transferees, pledgees or other successors
in interest will be the selling beneficial owners for purposes of this prospectus.

 

    	A-1

    	 

    

 

 

The selling stockholders
and any broker-dealers or agents that are involved in selling the shares may be deemed to be “underwriters” within
the meaning of the Securities Act in connection with such sales. In such event, any commissions received by such broker-dealers
or agents and any profit on the resale of the shares purchased by them may be deemed to be underwriting commissions or discounts
under the Securities Act. Discounts, concessions, commissions and similar selling expenses, if any, that can be attributed to the
sale of securities will be paid by the selling stockholders and/or the purchasers of the securities.

 

Each selling stockholder
that is affiliated with a registered broker-dealer has confirmed to us that, at the time it acquired the securities subject to
the registration statement of which this prospectus is a part, it did not have any agreement or understanding, directly or indirectly,
with any person to distribute any of such securities.

 

We are required to pay
certain fees and expenses incident to the registration of the shares. We have agreed to indemnify the selling stockholders against
certain losses, claims, damages and liabilities, including liabilities under the Securities Act. We agreed to keep this prospectus
effective until the earlier of (i) such time as all of the shares have been publicly sold and (ii) May 5, 2014.

 

    	A-2

    	 

    

 

ANNEX B

 

SOLIGENIX, INC.

 

Selling Securityholder Questionnaire

 

The undersigned beneficial owner of shares
of Common Stock (the “Registrable Securities”) of Soligenix, Inc. (the “Company”) understands
that the Company has filed or intends to file with the Securities and Exchange Commission a registration statement (the “Registration
Statement”) for the registration and resale under the Securities Act of 1933, as amended (the “Securities Act”),
of the Registrable Securities. This Questionnaire is delivered pursuant to the terms of the Registration Rights Agreement dated
as of September 3, 2014 (the “Registration Rights Agreement”), among the Company and the Investor named therein.
A copy of the Registration Rights Agreement is available from the Company upon request at the address set forth below. All capitalized
terms not otherwise defined herein shall have the meanings ascribed thereto in the Registration Rights Agreement.

 

Certain legal consequences arise from being
named as a selling securityholder in the Registration Statement and the related prospectus. Accordingly, holders and beneficial
owners of Registrable Securities are advised to consult their own securities law counsel regarding the consequences of being named
or not being named as a selling securityholder in the Registration Statement and the related prospectus.

 

The undersigned beneficial owner (the “Selling
Securityholder”) of Registrable Securities hereby elects to include the Registrable Securities owned by it and listed
below in Item 3 (unless otherwise specified under such Item 3) in the Registration Statement.

 

The undersigned hereby provides the following
information to the Company and represents and warrants that such information is accurate:

 

	1.	Name.	  
	 	 	 
	  	(a)	Full Legal Name of Selling Securityholder:
	  	  	  
	  	  	  
	  	(b)	Full Legal Name of Registered Holder (if not the same as (a) above) through which Registrable Securities Listed in Item 3 below are held:
	  	  	  
	  	  	  
	  	(c)	Full Legal Name of each Control Person (which means a natural person that directly or indirectly has power to vote or dispose of the securities covered by this Questionnaire):
	  	  	  
	  	  	  

 

    	B-1

    	 

    

  

	2.	Address for Notices to Selling Securityholder:

 

	  
	 
	  
	 
	Telephone:_____________________________________________________________________
	Fax:__________________________________________________________________________
	Contact Person:_________________________________________________________________

 

 

	3.	Beneficial Ownership of Registrable Securities:

 

	  	(a)	Type and Principal Amount of Registrable Securities beneficially owned:

 

	 	  
	 	 
	 	  

 

	4.	 Broker-Dealer Status:

 

	  	(a)	Are you a broker-dealer?

Yes □
No □

 

	  	Note:	If yes, the Commission’s staff has indicated that you should be identified as an underwriter in the Registration Statement.

 

	  	(b)	Are you an affiliate of a broker-dealer?

Yes □
No □

 

	  	(c)	If you are an affiliate of a broker-dealer, do you certify that you bought the Registrable Securities in the ordinary course of business, and at the time of the purchase of the Registrable Securities to be resold, you had no agreements or understandings, directly or indirectly, with any person to distribute the Registrable Securities?

Yes □
No □

 

	  	Note:	If no, the Commission’s staff has indicated that you should be identified as an underwriter in the Registration Statement.

 

    	B-2

    	 

    

 

	5.	Beneficial Ownership of Other Securities of the Company Owned by the Selling Securityholder.

 

Except as set forth below in this Item 5,
the undersigned is not the beneficial or registered owner of any securities of the Company other than the Registrable Securities
listed above in Item 3.

 

	  	 	Type and Amount of other Company securities beneficially owned by the Selling Securityholder:

 

	 	 	  
	 	 	 

 

	6. 	 Relationships with the Company:

 

Except as set forth below, neither the undersigned
nor any of its affiliates, officers, directors or principal equity holders (owners of 5% of more of the equity securities of the
undersigned) has held any position or office or has had any other material relationship with the Company (or its predecessors or
affiliates) during the past three years.

 

	  	 	State any exceptions here:

 

	 	 	  
	 	 	 
	 	 	 
	7.	 	 Claims against the Company:

 

Except as set forth below, to the actual
knowledge of the undersigned or the officers and directors or persons performing similar functions for the undersigned, neither
the undersigned nor any of its Affiliates, officers, directors or principal equity holders (owners of 5% or more of the equity
securities of the undersigned) has any claims against the Company, its directors, officers, agents and employees, and each person
or entity who controls the Company (within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act)
relating to the Company’s sale of Registrable Securities to the undersigned.

 

		 	State any exceptions here:

 

	 	 	 
	 	 	 
	 	 	 

 

The undersigned agrees to promptly notify the
Company of any inaccuracies or changes in the information provided herein (other than changes in beneficial ownership of Common
Stock after the effectiveness of the Registration Statement) that may occur subsequent to the date hereof at any time prior to
the effectiveness of the Registration Statement or while the Registration Statement remains effective.

 

    	B-3

    	 

    

 

 

By signing below, the undersigned consents
to the disclosure of the information contained in its answers hereto and the inclusion of such information in the Registration
Statement and the related prospectus and any amendments or supplements thereto. The undersigned understands that such information
will be relied upon by the Company in connection with the preparation or amendment of the Registration Statement and the related
prospectus.

 

IN WITNESS WHEREOF the undersigned, by authority
duly given, has caused this Questionnaire to be executed and delivered either in person or by its duly authorized agent.

 

	{individual}	 	{entity}
	 	 	 
	 	 	 
	Name of Selling Securityholder 	 	Name of Selling Securityholder
	 	 	 
	 	 	 
	Signature of Selling Securityholder	 	By
	 	 	 
	 	 	 
	
        Name of Selling Securityholder

        (if held jointly)
	 	Name
	 	 	 
	 	 	 
	Signature of Selling Securityholder (if held jointly)	 	Title

  

PLEASE FAX A COPY OF THE COMPLETED AND EXECUTED QUESTIONNAIRE,
AND RETURN THE ORIGINAL BY OVERNIGHT MAIL, TO:

 

Leslie J. Croland

Duane Morris LLP

200 South Biscayne Boulevard, Suite 3400

Miami, FL 33131-2318

Facsimile: (305) 397-1882

 

B-4Exhibit 10.17

		

			Exhibit 10.17

		

		
			SWS GROUP, INC.
		

		
			2012 RESTRICTED STOCK PLAN
		

		
			The SWS Group, Inc. 2012 Restricted Stock Plan (the “Plan”) was adopted by the Board of Directors of SWS Group, Inc., a Delaware corporation (the “Company”), effective as of August 29, 2012, and amended August 20, 2014.
		

			
	
			
				Article 1
			 

		
			PURPOSE
		

		
			The purpose of the Plan is to attract and retain the services of key Employees, key Contractors, and Outside Directors of the Company and its Subsidiaries and to provide such persons with a proprietary interest in the Company through the granting of Restricted Stock, that will:
		

			
	
			
				 (a)
			increase the interest of such persons in the Company’s welfare;

			
	
			
				 (b)
			furnish an incentive to such persons to continue their services for the Company or its Subsidiaries; and

			
	
			
				 (c)
			provide a means through which the Company may attract able persons as Employees, Contractors, and Outside Directors.

		
			With respect to Reporting Participants, the Plan and all transactions under the Plan are intended to comply with all applicable conditions of Rule 16b-3 promulgated under the Exchange Act.  To the extent any provision of the Plan or action by the Committee fails to so comply, such provision or action shall be deemed null and void ab initio, to the extent permitted by law and deemed advisable by the Committee.
		

			
	
			
				Article 2
			 

		
			DEFINITIONS
		

		
			For the purpose of the Plan, unless the context requires otherwise, the following terms shall have the meanings indicated:
		

			
	
			
				 2.1
			“Applicable Law” means all legal requirements relating to the administration of equity incentive plans and the issuance and distribution of shares of Common Stock, if any, under applicable corporate laws, applicable securities laws, the rules of any exchange or inter-dealer quotation system upon which the Company’s securities are listed or quoted, and any other applicable law, rule or restriction.

			
	
			
				 2.2
			“Award” means the grant of any Restricted Stock or Performance Award.

			
	
			
				 2.3
			“Award Agreement” means a written agreement between a Participant and the Company which sets out the terms of the grant of an Award.

			
	
			
				 2.4
			“Board” means the board of directors of the Company.

			
	
			
				 2.5
			“Change of Control”  means any of the following: (i) any consolidation, merger or share exchange of the Company in which the Company is not the continuing or surviving corporation or pursuant to which shares of the Company's Common Stock would be converted into cash, securities or 
		

		 

		

			 

		

		

			 

		

 

			other property, other than a consolidation, merger or share exchange of the Company in which the holders of the Company's Common Stock immediately prior to such transaction have the same proportionate ownership of Common Stock of the surviving corporation immediately after such transaction; (ii) any sale, lease, exchange or other transfer (excluding transfer by way of pledge or hypothecation) in one transaction or a series of related transactions, of all or substantially all of the assets of the Company; (iii) the stockholders of the Company approve any plan or proposal for the liquidation or dissolution of the Company; (iv) the cessation of control (by virtue of their not constituting a majority of directors) of the Board by the individuals (the “Continuing Directors”) who (A) at the date of this Plan were directors or (B) become directors after the date of this Plan and whose election or nomination for election by the Company's stockholders, was approved by a vote of at least two-thirds of the directors then in office who were directors at the date of this Plan or whose election or nomination for election was previously so approved; (v) the acquisition of beneficial ownership (within the meaning of Rule 13d‐3 under the Exchange Act) of an aggregate of 20% of the voting power of the Company's outstanding voting securities by any person or group (as such term is used in Rule 13d-5 under the Exchange Act) who beneficially owned less than 15% of the voting power of the Company's outstanding voting securities on the date of this Plan, or the acquisition of beneficial ownership of an additional 5% of the voting power of the Company's outstanding voting securities by any person or group who beneficially owned at least 15% of the voting power of the Company's outstanding voting securities on the date of this Plan, provided,  however, that notwithstanding the foregoing, an acquisition shall not constitute a Change of Control hereunder if the acquiror is (A) a trustee or other fiduciary holding securities under an employee benefit plan of the Company and acting in such capacity, (B) a Subsidiary of the Company or a corporation owned, directly or indirectly, by the stockholders of the Company in substantially the same proportions as their ownership of voting securities of the Company or (C) any other person whose acquisition of shares of voting securities is approved in advance by a majority of the Continuing Directors; or (vi) in a Title 11 bankruptcy proceeding, the appointment of a trustee or the conversion of a case involving the Company to a case under Chapter 7.

		
			Notwithstanding the foregoing provisions of this Section 2.5, in the event an Award issued under the Plan is subject to Section 409A of the Code, then, in lieu of the foregoing definition and to the extent necessary to comply with the requirements of Section 409A of the Code, the definition of “Change of Control” for purposes of such Award shall be the definition provided for under Section 409A of the Code and the treasury regulations or other guidance issued thereunder.
		

			
	
			
				 2.6
			“Code” means the United States Internal Revenue Code of 1986, as amended.

			
	
			
				 2.7
			“Committee” means the committee appointed or designated by the Board to administer the Plan in accordance with Article 3 of this Plan.

			
	
			
				 2.8
			“Common Stock” means the common stock of the Company, par value $0.10 per share, which the Company is currently authorized to issue or may in the future be authorized to issue, or any securities into which or for which the common stock of the Company may be converted or exchanged, as the case may be, pursuant to the terms of this Plan.

			
	
			
				 2.9
			“Company” means SWS Group, Inc., a Delaware corporation, and any successor entity.

			
	
			
				 2.10
			“Contractor” means any natural person, who is not an Employee, rendering bona fide services to the Company or a Subsidiary, with compensation, pursuant to a written independent contractor agreement between such person (or any entity employing such person) and the Company or a Subsidiary, provided that such services are not rendered in connection with the offer or sale of securities in a capital raising transaction and do not directly or indirectly promote or maintain a market for the Company’s securities.

		 

		

			-  2  -

		

 

			
	
			
				 2.11
			“Date of Grant” means the effective date on which an Award is made to a Participant as set forth in the applicable Award Agreement; provided, however, that solely for purposes of Section 16 of the Exchange Act and the rules and regulations promulgated thereunder, the Date of Grant of an Award shall be the date of stockholder approval of the Plan if such date is later than the effective date of such Award as set forth in the Award Agreement.

			
	
			
				 2.12
			“Employee” means common law employee (as defined in accordance with the Regulations and Revenue Rulings then applicable under Section 3401(c) of the Code) of the Company or any Subsidiary of the Company.

			
	
			
				 2.13
			“Exchange Act” means the United States Securities Exchange Act of 1934, as amended.

			
	
			
				 2.14
			“Fair Market Value”  means, as of a particular date, (a) if the shares of Common Stock are listed on any established national securities exchange, the mean of the highest and lowest prices per share of Common Stock on the consolidated transaction reporting system for the principal securities exchange for the Common Stock on that date, or, if there shall have been no such sale so reported on that date, on the last preceding date on which such a sale was so reported; (b) if the shares of Common Stock are not so listed, but are quoted on an automated quotation system, the mean of the highest and lowest prices per share of Common Stock reported on the automated quotation system on that date, or, if there shall have been no such sale so reported on that date, on the last preceding date on which such a sale was so reported; (c) if the Common Stock is not so listed or quoted, the mean between the closing bid and asked price on that date, or, if there are no quotations available for such date, on the last preceding date on which such quotations shall be available, as reported by the OTC Bulletin Board, OTC Markets Group, Inc. or any successor thereof; or (d) if none of the above is applicable, such amount as may be determined by the Board (acting on the advice of an Independent Third Party, should the Board elect in its sole discretion to utilize an Independent Third Party for this purpose), in good faith, to be the fair market value per share of Common Stock.  The determination of Fair Market Value shall, where applicable, be in compliance with Section 409A of the Code.

			
	
			
				 2.15
			“Independent Third Party” means an individual or entity independent of the Company having experience in providing investment banking or similar appraisal or valuation services and with expertise generally in the valuation of securities or other property for purposes of this Plan.  The Board may utilize one or more Independent Third Parties.

			
	
			
				 2.16
			“Outside Director” means a director of the Company who is not an Employee or a Contractor.

			
	
			
				 2.17
			“Participant” means an Employee, Contractor or Outside Director of the Company or a Subsidiary to whom an Award is granted under this Plan.

			
	
			
				 2.18
			“Performance Award” means an Award hereunder of cash or shares of Common Stock pursuant to Section 6.3 hereof.

			
	
			
				 2.19
			“Performance Goal” means any of the goals set forth in Section 6.4 hereof.

			
	
			
				 2.20
			“Plan” means this SWS Group, Inc. 2012 Restricted Stock Plan, as amended from time to time.

			
	
			
				 2.21
			“Reporting Participant” means a Participant who is subject to the reporting requirements of Section 16 of the Exchange Act.

		 

		

			-  3  -

		

 

			
	
			
				 2.22
			“Restricted Stock” means shares of Common Stock issued or transferred to a Participant pursuant to Section 6.2 of this Plan which are subject to restrictions or limitations set forth in this Plan and in the related Award Agreement.

			
	
			
				 2.23
			“Subsidiary” means (i) any corporation in an unbroken chain of corporations beginning with the Company, if each of the corporations other than the last corporation in the unbroken chain owns stock possessing a majority of the total combined voting power of all classes of stock in one of the other corporations in the chain, (ii) any limited partnership, if the Company or any corporation described in item (i) above owns a majority of the general partnership interest and a majority of the limited partnership interests entitled to vote on the removal and replacement of the general partner, and (iii) any partnership or limited liability company, if the partners or members thereof are composed only of the Company, any corporation listed in item (i) above or any limited partnership listed in item (ii) above.  “Subsidiaries” means more than one of any such corporations, limited partnerships, partnerships or limited liability companies.

			
	
			
				 2.24
			“Termination of Service” occurs when a Participant who is (i) an Employee of the Company or any Subsidiary ceases to serve as an Employee of the Company and its Subsidiaries, for any reason; (ii) an Outside Director of the Company or a Subsidiary ceases to serve as a director of the Company and its Subsidiaries for any reason; or (iii) a Contractor of the Company or a Subsidiary ceases to serve as a Contractor of the Company and its Subsidiaries for any reason.  Except as may be necessary or desirable to comply with applicable federal or state law, a “Termination of Service” shall not be deemed to have occurred when a Participant who is an Employee becomes an Outside Director or Contractor or vice versa.  Notwithstanding the foregoing provisions of this Section 2.24, in the event an Award issued under the Plan is subject to Section 409A of the Code, then, in lieu of the foregoing definition and to the extent necessary to comply with the requirements of Section 409A of the Code, the definition of “Termination of Service” for purposes of such Award shall be the definition of “separation from service” provided for under Section 409A of the Code and the regulations or other guidance issued thereunder.

			
	
			
				 2.25
			“Total and Permanent Disability” means a Participant is qualified for long-term disability benefits under the Company’s or Subsidiary’s disability plan or insurance policy; or, if no such plan or policy is then in existence or if the Participant is not eligible to participate in such plan or policy, that the Participant, because of a physical or mental condition resulting from bodily injury, disease, or mental disorder, is unable to perform his or her duties of employment for a period of six (6) continuous months, as determined in good faith by the Committee, based upon medical reports or other evidence satisfactory to the Committee.  Notwithstanding the foregoing provisions of this Section 2.25, in the event an Award issued under the Plan is subject to Section 409A of the Code, then, in lieu of the foregoing definition and to the extent necessary to comply with the requirements of Section 409A of the Code, the definition of “Total and Permanent Disability” for purposes of such Award shall be the definition of “disability” provided for under Section 409A of the Code and the regulations or other guidance issued thereunder.

			
	
			
				Article 3
			 

		
			ADMINISTRATION
		

		
			Subject to the terms of this Article 3, the Plan shall be administered by the Board or such committee of the Board as is designated by the Board to administer the Plan (the “Committee”).  The Committee shall consist of not fewer than two persons.  Any member of the Committee may be removed at any time, with or without cause, by resolution of the Board.  Any vacancy occurring in the membership 
		

		 

		

			-  4  -

		

 

		of the Committee may be filled by appointment by the Board.  At any time there is no Committee to administer the Plan, any references in this Plan to the Committee shall be deemed to refer to the Board.
		

		
			If necessary to satisfy the requirements of Section 162(m) of the Code and/or Rule 16b-3 promulgated under the Exchange Act, membership on the Committee shall be limited to those members of the Board who are “outside directors” under Section 162(m) of the Code and/or “non-employee directors” as defined in Rule 16b‐3 promulgated under the Exchange Act.  The Committee shall select one of its members to act as its Chairman.  A majority of the Committee shall constitute a quorum, and the act of a majority of the members of the Committee present at a meeting at which a quorum is present shall be the act of the Committee.
		

		
			The Committee shall determine and designate from time to time the eligible persons to whom Awards will be granted and shall set forth in each related Award Agreement, where applicable, the Date of Grant, and such other terms, provisions, limitations, and performance requirements, as are approved by the Committee, but not inconsistent with the Plan.  Although the members of the Committee shall be eligible to receive Awards, all decisions with respect to any Award, and the terms and conditions thereof, to be granted under the Plan to any member of the Committee shall be made solely and exclusively by the other members of the Committee, or if such member is the only member of the Committee, by the Board.
		

		
			The Committee, in its discretion, shall (i) interpret the Plan and Award Agreements, (ii) prescribe, amend, and rescind any rules and regulations, as necessary or appropriate for the administration of the Plan, (iii) establish performance goals for an Award and certify the extent of their achievement, and (iv) make such other determinations or certifications and take such other action as it deems necessary or advisable in the administration of the Plan.  Any interpretation, determination, or other action made or taken by the Committee shall be final, binding, and conclusive on all interested parties.
		

		
			The Committee may delegate to officers of the Company, pursuant to a written delegation, the authority to perform specified functions under the Plan.  Any actions taken by any officers of the Company pursuant to such written delegation of authority shall be deemed to have been taken by the Committee.  Notwithstanding the foregoing, to the extent necessary to satisfy the requirements of Section 162(m) of the Code and/or Rule 16b-3 promulgated under the Exchange Act, any function relating to a Reporting Participant or a covered employee (as defined in Section 162(m) of the Code) shall be performed solely by the Committee.
		

		
			With respect to restrictions in the Plan that are based on the requirements of Rule 16b-3 promulgated under the Exchange Act, Section 162(m) of the Code, the rules of any exchange or inter-dealer quotation system upon which the Company’s securities are listed or quoted, or any other Applicable Law, to the extent that any such restrictions are no longer required by Applicable Law, the Committee shall have the sole discretion and authority to grant Awards that are not subject to such mandated restrictions and/or to waive any such mandated restrictions with respect to outstanding Awards.
		

		
			Notwithstanding the foregoing, all rights and powers reserved to the Committee under this Article 3 may also be exercised by the Board.
		

			
	
			
				Article 4
			 

		
			ELIGIBILITY
		

		
			Any Employee (including an Employee who is also a director or an officer), Contractor or Outside Director of the Company whose judgment, initiative, and efforts contributed or may be expected to contribute to the successful performance of the Company is eligible to participate in the Plan.  The 
		

		 

		

			-  5  -

		

 

		Committee, upon its own action, may grant, but shall not be required to grant, an Award to any Employee, Contractor or Outside Director of the Company or any Subsidiary.  Awards may be granted by the Committee at any time and from time to time to new Participants, or to then Participants, or to a greater or lesser number of Participants, and may include or exclude previous Participants, as the Committee shall determine.  Except as required by this Plan, Awards granted at different times need not contain similar provisions.  The Committee’s determinations under the Plan (including without limitation determinations of which Employees, Contractors or Outside Directors, if any, are to receive Awards, the form, amount and timing of such Awards, the terms and provisions of such Awards and the agreements evidencing same) need not be uniform and may be made by it selectively among Participants who receive, or are eligible to receive, Awards under the Plan.
		

			
	
			
				Article 5
			 

		
			SHARES SUBJECT TO PLAN
		

			
	
			
				 5.1
			Number Available for Awards.  Subject to adjustment as provided in Articles 10 and 11, the maximum number of shares of Common Stock that may be delivered pursuant to Awards granted under the Plan is two million six hundred thirty thousand  (2,630,000) shares.  Shares to be issued may be made available from authorized but unissued Common Stock, Common Stock held by the Company in its treasury, or Common Stock purchased by the Company on the open market or otherwise.  During the term of this Plan, the Company will at all times reserve and keep available the number of shares of Common Stock that shall be sufficient to satisfy the requirements of this Plan.

			
	
			
				 5.2
			Reuse of Shares.  To the extent that any Award under this Plan shall be forfeited, shall expire or be canceled, in whole or in part, then the number of shares of Common Stock covered by the Award so forfeited, expired or canceled may again be awarded pursuant to the provisions of this Plan.  

			
	
			
				Article 6
			 

		
			GRANT OF AWARDS
		

			
	
			
				 6.1
			In General.

			
	
			
				 (a)
			The grant of an Award shall be authorized by the Committee and shall be evidenced by an Award Agreement setting forth the Award being granted, the total number of shares of Common Stock subject to the Award, the Date of Grant, and such other terms, provisions, limitations, and performance objectives, as are approved by the Committee, but (i) not inconsistent with the Plan, (ii) to the extent an Award issued under the Plan is subject to Section 409A of the Code, in compliance with the applicable requirements of Section 409A of the Code and the regulations or other guidance issued thereunder, and (iii) to the extent the Committee determines that an Award shall comply with the requirements of Section 162(m) of the Code, in compliance with the applicable requirements of Section 162(m) of the Code and the regulations and other guidance issued thereunder.  The Company shall execute an Award Agreement with a Participant after the Committee approves the issuance of an Award.  Each Award Agreement shall be in such form and shall contain such terms and conditions, as the Committee shall deem appropriate. The terms and conditions of such Award Agreements may change from time to time, and the terms and conditions of separate Award Agreements need not be identical, but each such Award Agreement shall be subject to the terms and conditions of this Article 6.  

			
	
			
				 (b)
			Any Award granted pursuant to this Plan must be granted within ten (10) years of the date of adoption of this Plan. The Plan shall be submitted to the Company’s stockholders for 
		

		 

		

			-  6  -

		

 

			approval; however, the Committee may grant Awards under the Plan prior to the time of stockholder approval.  Any such Award granted prior to such stockholder approval shall be made subject to such stockholder approval.  The grant of an Award to a Participant shall not be deemed either to entitle the Participant to, or to disqualify the Participant from, receipt of any other Award under the Plan.  

			
	
			
				 (c)
			If the Committee establishes a purchase price for an Award, the Participant must accept such Award within a period of thirty (30) days (or such shorter period as the Committee may specify) after the Date of Grant by executing the applicable Award Agreement and paying such purchase price.

		
			6.2Restricted Stock.  If Restricted Stock is granted to or received by a Participant, the Committee shall set forth in the related Award Agreement: (i) the number of shares of Common Stock awarded, (ii) the price, if any, to be paid by the Participant for such Restricted Stock and the method of payment of the price, (iii) the time or times within which such Award may be subject to forfeiture, (iv) specified Performance Goals of the Company, a Subsidiary, any division thereof or any group of Employees of the Company, or other criteria, which the Committee determines must be met in order to remove any restrictions (including vesting) on such Award, and (v) all other terms, limitations, restrictions, and conditions of the Restricted Stock, which shall be consistent with this Plan, to the extent applicable and in the event the Committee determines that an Award shall comply with the requirements of Section 162(m) of the Code, in compliance with the requirements of Section 162(m) of the Code and the regulations and other guidance issued thereunder and, to the extent Restricted Stock granted under the Plan is subject to Section 409A of the Code, in compliance with the applicable requirements of Section 409A of the Code and the regulations or other guidance issued thereunder.  The provisions of each Award need not be the same with respect to each Participant.
		

			
	
			
				 (a)
			Legend on Shares.  Each Participant who is awarded or receives Restricted Stock shall be issued a stock certificate or certificates in respect of such shares of Common Stock or registered in the name of the Participant by a book entry account with the Company’s transfer agent.  Such certificate(s) shall be registered in the name of the Participant, and shall bear an appropriate legend referring to the terms, conditions, and restrictions applicable to such Restricted Stock, substantially as provided in Section 14.9 of the Plan.

			
	
			
				 (b)
			Restrictions and Conditions.  Shares of Restricted Stock shall be subject to the following restrictions and conditions:

			
	
			
				 (i)
			Subject to the other provisions of this Plan and the terms of the particular Award Agreements, during such period as may be determined by the Committee commencing on the Date of Grant of an Award (the “Restriction Period”), the Participant shall not be permitted to sell, transfer, pledge or assign shares of Restricted Stock. Except for these limitations, the Committee may in its sole discretion, remove any or all of the restrictions on such Restricted Stock whenever it may determine that, by reason of changes in Applicable Laws or other changes in circumstances arising after the date of the Award, such action is appropriate.

			
	
			
				 (ii)
			Except as provided in sub-paragraph (i) above or in the applicable Award Agreement, the Participant shall have, with respect to his or her Restricted Stock, all of the rights of a stockholder of the Company, including the right to vote the shares, and the right to receive any dividends thereon.  Certificates for shares of Common Stock free of restriction under this Plan shall be delivered to the Participant promptly after, and only after, the Restriction Period shall expire without forfeiture in respect of such shares of 
		

		 

		

			-  7  -

		

 

			Common Stock or after any other restrictions imposed on such shares of Common Stock by the applicable Award Agreement or other agreement have expired.  Certificates for the shares of Common Stock forfeited under the provisions of the Plan and the applicable Award Agreement shall be promptly returned to the Company by the forfeiting Participant.  Each Award Agreement shall require that (x) each Participant, by his or her acceptance of Restricted Stock, shall irrevocably grant to the Company a power of attorney to transfer any shares so forfeited to the Company and agrees to execute any documents requested by the Company in connection with such forfeiture and transfer, and (y) such provisions regarding returns and transfers of stock certificates with respect to forfeited shares of Common Stock shall be specifically performable by the Company in a court of equity or law.

			
	
			
				 (iii)
			The Restriction Period of an Award of Restricted Stock shall commence on the Date of Grant of the Award, as specified in the Award Agreement, and, subject to Article 11 of the Plan, unless otherwise established by the Committee in the Award Agreement setting forth the terms of the Restricted Stock, shall expire upon satisfaction of the conditions set forth in the Award Agreement; such conditions may provide for vesting based on such Performance Goals, as may be determined by the Committee in its sole discretion.

			
	
			
				 (iv)
			Except as otherwise provided in the particular Award Agreement, upon Termination of Service for any reason during the Restriction Period, the nonvested shares of Restricted Stock shall be forfeited by the Participant.  In the event a Participant has paid any consideration to the Company for such forfeited Restricted Stock, the Committee shall specify in the Award Agreement that either (i) the Company shall be obligated to, or (ii) the Company may, in its sole discretion, elect to, pay to the Participant, as soon as practicable after the event causing forfeiture, in cash, an amount equal to the lesser of the total consideration paid by the Participant for such forfeited shares or the Fair Market Value of such forfeited shares as of the date of Termination of Service, as the Committee, in its sole discretion shall select. Upon any forfeiture, all rights of a Participant with respect to the forfeited shares of the Restricted Stock shall cease and terminate, without any further obligation on the part of the Company.

		
			6.3Performance Awards.
		

			
	
			
				 (a)
			The Committee may grant Performance Awards to one or more Participants.  The terms and conditions of Performance Awards shall be specified at the time of the grant and may include provisions establishing the performance period, the Performance Goals to be achieved during a performance period, and the maximum or minimum settlement values, provided that such terms and conditions are (i) not inconsistent with the Plan and (ii) to the extent a Performance Award issued under the Plan is subject to Section 409A of the Code, in compliance with the applicable requirements of Section 409A of the Code and the regulations or other guidance issued thereunder.  If the Performance Award is to be in shares of Common Stock, the Performance Awards may provide for the issuance of the shares of Common Stock at the time of the grant of the Performance Award or at the time of  the certification by the Committee that the Performance Goals for the performance period have been met; provided,  however, if shares of Common Stock are issued at the time of the grant of the Performance Award and if, at the end of the performance period, the Performance Goals are not certified by the Committee to have been fully satisfied, then, notwithstanding any other provisions of this Plan to the contrary, the Common Stock shall be forfeited in accordance with the terms of the grant to the extent the Committee determines that the Performance Goals were not met.  The forfeiture of shares of 
		

		 

		

			-  8  -

		

 

			Common Stock issued at the time of the grant of the Performance Award due to failure to achieve the established Performance Goals shall be separate from and in addition to any other restrictions provided for in this Plan that may be applicable to such shares of Common Stock.  Each Performance Award granted to one or more Participants shall have its own terms and conditions.

		
			To the extent the Committee determines that a Performance Award shall comply with the requirements of Section 162(m) of the Code and the regulations and other guidance issued thereunder, and if it is determined to be necessary in order to satisfy Section 162(m) of the Code, at the time of the grant of a Performance Award and to the extent permitted under Section 162(m) of the Code and the regulations issued thereunder, the Committee shall provide for the manner in which the Performance Goals shall be reduced to take into account the negative effect on the achievement of specified levels of the Performance Goals which may result from enumerated corporate transactions, extraordinary events, accounting changes and other similar occurrences which were unanticipated at the time the Performance Goal was initially established.  In no event, however, may the Committee increase the amount earned under such a Performance Award, unless the reduction in the Performance Goals would reduce or eliminate the amount to be earned under the Performance Award and the Committee determines not to make such reduction or elimination.
		

		
			With respect to a Performance Award that is not intended to satisfy the requirements of Code Section 162(m), if the Committee determines, in its sole discretion, that the established performance measures or objectives are no longer suitable because of a change in the Company’s business, operations, corporate structure, or for other reasons that the Committee deemed satisfactory, the Committee may modify the performance measures or objectives and/or the performance period.
		

			
	
			
				 (b)
			Performance Awards may be valued by reference to the Fair Market Value of a share of Common Stock or according to any formula or method deemed appropriate by the Committee, in its sole discretion, including, but not limited to, achievement of Performance Goals or other specific financial, production, sales or cost performance objectives that the Committee believes to be relevant to the Company’s business and/or remaining in the employ of the Company for a specified period of time.  Performance Awards may be paid in cash, shares of Common Stock, or other consideration, or any combination thereof.  If payable in shares of Common Stock, the consideration for the issuance of such shares may be the achievement of the performance objective established at the time of the grant of the Performance Award.  Performance Awards may be payable in a single payment or in installments and may be payable at a specified date or dates or upon attaining the performance objective.  The extent to which any applicable performance objective has been achieved shall be conclusively determined by the Committee.

			
	
			
				 (c)
			Notwithstanding the foregoing, in order to comply with the requirements of Section 162(m) of the Code, if applicable, no Participant may receive in any calendar year Performance Awards intended to comply with the requirements of Section 162(m) of the Code which have an aggregate value of more than $1,000,000, and if such Performance Awards involve the issuance of shares of Common Stock, said aggregate value shall be based on the Fair Market Value of such shares on the time of the grant of the Performance Award.  In no event, however, shall any Performance Awards not intended to comply with the requirements of Section 162(m) of the Code be issued contingent upon the failure to attain the Performance Goals applicable to any Performance Awards granted hereunder that the Committee intends to comply with the requirements of Section 162(m) of the Code.

		
			
		

		 

		

			-  9  -

		

 

		6.4Performance Goals.  Awards under the Plan may be made subject to the attainment of Performance Goals relating to one or more business criteria which, where applicable, shall be within the meaning of Section 162(m) of the Code and consist of one or more or any combination of the following criteria:  cash flow; cost; revenues; sales; ratio of debt to debt plus equity; net borrowing, credit quality or debt ratings; profit before tax; economic profit; earnings before interest and taxes; earnings before interest, taxes, depreciation and amortization; gross margin; earnings per share (whether on a pre-tax, after-tax, operational or other basis); operating earnings; capital expenditures; expenses or expense levels; economic value added; ratio of operating earnings to capital spending or any other operating ratios; free cash flow; net profit; net sales; net asset value per share; the accomplishment of mergers, acquisitions, dispositions, public offerings or similar extraordinary business transactions; sales growth; price of the Company’s Common Stock; return on assets, equity or stockholders’ equity; market share; inventory levels, inventory turn or shrinkage; or total return to stockholders (“Performance Criteria”).  Any Performance Criteria may be used to measure the performance of the Company as a whole or any business unit of the Company and may be measured relative to a peer group or index.  Any Performance Criteria may include or exclude (i) extraordinary, unusual and/or non-recurring items of gain or loss, (ii) gains or losses on the disposition of a business, (iii) changes in tax or accounting regulations or laws, (iv) the effect of a merger or acquisition, as identified in the Company’s quarterly and annual earnings releases, or (v) other similar occurrences.  In all other respects, Performance Criteria shall be calculated in accordance with the Company’s financial statements, under generally accepted accounting principles, or under a methodology established by the Committee prior to the issuance of an Award which is consistently applied and identified in the audited financial statements, including footnotes, or the Compensation Discussion and Analysis section of the Company’s annual report.  However, to the extent Section 162(m) of the Code is applicable, the Committee may not in any event increase the amount of compensation payable to an individual upon the attainment of a Performance Goal. 
		

		
			 
		

			
	
			
				Article 7
			 

		
			VESTING
		

		
			Subject to Article 14, the Committee, in its sole discretion, may determine that an Award will be immediately vested in whole or in part, or that all or any portion may not be vested until a date, or dates, subsequent to its Date of Grant, or until the occurrence of one or more specified events, subject in any case to the terms of the Plan.  If the Committee imposes conditions upon vesting, then, subsequent to the Date of Grant, the Committee may, in its sole discretion, accelerate the date on which all or any portion of the Award may be vested.  In the event of a Change of Control, then, notwithstanding any other provision in this Plan to the contrary, all Awards outstanding shall thereupon automatically be vested;  provided that the foregoing shall not apply in the case of the Merger with respect to Awards granted after March 31, 2014.  “Merger” means the consummation of the transactions contemplated by the Agreement and Plan of Merger, dated as of March 31, 2014, as may be amended from time to time, by and among the Company, Hilltop Holdings Inc., a Maryland corporation, and Peruna LLC, a Delaware limited liability company.  The determination of the Committee that any of the foregoing conditions has been met shall be binding and conclusive on all parties.
		

			
	
			
				Article 8
			 

		
			AMENDMENT OR DISCONTINUANCE
		

		
			Subject to the limitations set forth in this Article 8, the Board may at any time and from time to time, without the consent of the Participants, alter, amend, revise, suspend, or discontinue the Plan in whole or in part; provided, however, that no amendment for which stockholder approval is required either (i) by any securities exchange or inter-dealer quotation system on which the Common Stock is listed or 
		

		 

		

			-  10  -

		

 

		traded or (ii) in order for the Plan and Awards under the Plan to continue to comply with Section 162(m) of the Code, including any successor to such Section, or other Applicable Law, shall be effective unless such amendment shall be approved by the requisite vote of the stockholders of the Company entitled to vote thereon.  Any such amendment shall, to the extent deemed necessary or advisable by the Committee, be applicable to any outstanding Awards theretofore granted under the Plan, notwithstanding any contrary provisions contained in any Award Agreement.  In the event of any such amendment to the Plan, the holder of any Award outstanding under the Plan shall, upon request of the Committee and as a condition to the exercisability thereof, execute a conforming amendment in the form prescribed by the Committee to any Award Agreement relating thereto.  Notwithstanding anything contained in this Plan to the contrary, unless required by law, no action contemplated or permitted by this Article 8 shall adversely affect any rights of Participants or obligations of the Company to Participants with respect to any Award theretofore granted under the Plan without the consent of the affected Participant.
		

			
	
			
				Article 9
			 

		
			TERM
		

		
			The Plan shall be effective from the date that this Plan is approved by the Board.  Unless sooner terminated by action of the Board, the Plan will terminate on November 15, 2022, but Awards granted before that date will continue to be effective in accordance with their terms and conditions.
		

			
	
			
				Article 10
			 

		
			CAPITAL ADJUSTMENTS
		

		
			In the event that any dividend or other distribution (whether in the form of cash, Common Stock, other securities, or other property), recapitalization, stock split, reverse stock split, rights offering, reorganization, merger, consolidation, split-up, spin-off, split-off, combination, subdivision, repurchase, or exchange of Common Stock or other securities of the Company, issuance of warrants or other rights to purchase Common Stock or other securities of the Company, or other similar corporate transaction or event affects the fair value of an Award, then the Committee shall adjust any or all of the following so that the fair value of the Award immediately after the transaction or event is equal to the fair value of the Award immediately prior to the transaction or event (i) the number of shares and type of Common Stock (or the securities or property) which thereafter may be made the subject of Awards, (ii) the number of shares and type of Common Stock (or other securities or property) subject to outstanding Awards, and (iii) the amount, if any, the Company pays for forfeited shares of Common Stock in accordance with Section 6.2; provided however, that the number of shares of Common Stock (or other securities or property) subject to any Award shall always be a whole number.  Notwithstanding the foregoing, no such adjustment shall be made or authorized to the extent that such adjustment would cause the Plan to violate Section 409A of the Code.  Such adjustments shall be made in accordance with the rules of any securities exchange, stock market, or stock quotation system to which the Company is subject.
		

		
			Upon the occurrence of any such adjustment, the Company shall provide notice to each affected Participant of its computation of such adjustment which shall be conclusive and shall be binding upon each such Participant.
		

		 

		

			-  11  -

		

 

			
	
			
				Article 11
			 

		
			RECAPITALIZATION, MERGER AND CONSOLIDATION
		

			
	
			
				 11.1
			No Effect on Company’s Authority.  The existence of this Plan and Awards granted hereunder shall not affect in any way the right or power of the Company or its stockholders to make or authorize any or all adjustments, recapitalizations, reorganizations, or other changes in the Company’s capital structure and its business, or any Change of Control, or any merger or consolidation of the Company, or any issuance of bonds, debentures, preferred or preference stocks ranking prior to or otherwise affecting the Common Stock or the rights thereof (or any rights, options, or warrants to purchase same), or the dissolution or liquidation of the Company, or any sale or transfer of all or any part of its assets or business, or any other corporate act or proceeding, whether of a similar character or otherwise.

			
	
			
				 11.2
			Conversion of Awards Where Company Survives.  Subject to any required action by the stockholders and except as otherwise provided by Section 11.4 hereof or as may be required to comply with Section 409A of the Code and the regulations or other guidance issued thereunder, if the Company shall be the surviving or resulting corporation in any merger, consolidation or share exchange, any Award granted hereunder shall pertain to and apply to the securities or rights (including cash, property, or assets) to which a holder of the number of shares of Common Stock subject to the Award would have been entitled.

			
	
			
				 11.3
			Exchange or Cancellation of Awards Where Company Does Not Survive.  Except as otherwise provided by Section 11.4 hereof or as may be required to comply with Section 409A of the Code and the regulations or other guidance issued thereunder, in the event of any merger, consolidation or share exchange pursuant to which the Company is not the surviving or resulting corporation, there shall be substituted for each share of Common Stock subject to the outstanding Awards, that number of shares of each class of stock or other securities or that amount of cash, property, or assets of the surviving, resulting or consolidated company which were distributed or distributable to the stockholders of the Company in respect to each share of Common Stock held by them.

			
	
			
				 11.4
			Cancellation of Awards.  Notwithstanding the provisions of Sections 11.2 and 11.3  hereof, and except as may be required to comply with Section 409A of the Code and the regulations or other guidance issued thereunder, all Awards granted hereunder may be canceled by the Company, in its sole discretion, as of the effective date of any Change of Control, merger, consolidation or share exchange, or any issuance of bonds, debentures, preferred or preference stocks ranking prior to or otherwise affecting the Common Stock or the rights thereof (or any rights, options, or warrants to purchase same), or of any proposed sale of all or substantially all of the assets of the Company, or of any dissolution or liquidation of the Company, by giving notice to each holder thereof or his personal representative of its intention to cancel those Awards, and permitting the purchase during the thirty (30) day period next preceding such effective date of any or all of the shares of Common Stock subject to such outstanding Awards, including in the Board’s discretion some or all of the shares as to which such Awards would not otherwise be vested.  An Award that by its terms would be fully vested upon a Change of Control will be considered vested for purposes of Section 11.4 hereof;  provided that the foregoing shall not apply in the case of the Merger with respect to Awards granted after March 31, 2014.

			
	
			
				Article 12
			 

		
			LIQUIDATION OR DISSOLUTION
		

		
			In case the Company shall, at any time while any Award under this Plan shall be in force and remain unexpired, (i) sell all or substantially all of its property, or (ii) dissolve, liquidate, or wind up its 
		

		 

		

			-  12  -

		

 

		affairs, then each Participant shall be entitled to receive, in lieu of each share of Common Stock of the Company which such Participant would have been entitled to receive under the Award, the same kind and amount of any securities or assets as may be issuable, distributable, or payable upon any such sale, dissolution, liquidation, or winding up with respect to each share of Common Stock of the Company.  If the Company shall, at any time prior to the expiration of any Award, make any partial distribution of its assets, in the nature of a partial liquidation, whether payable in cash or in kind (but excluding the distribution of a cash dividend payable out of earned surplus and designated as such) and an adjustment is determined by the Committee to be appropriate to prevent the dilution of the benefits or potential benefits intended to be made available under the Plan, then the Committee shall, in such manner as it may deem equitable, make such adjustment in accordance with the provisions of Article 10 hereof.
		

			
	
			
				Article 13
			 

		
			MISCELLANEOUS PROVISIONS
		

			
	
			
				 13.1
			Securities Law and Exchange Restrictions.  In no event may shares of Common Stock be issued pursuant to an Award if a necessary listing or quotation of the shares of Common Stock on a stock exchange or inter-dealer quotation system or any registration under state or federal securities laws required under the circumstances has not been accomplished.

			
	
			
				 13.2
			Investment Intent.  The Company may require that there be presented to and filed with it by any Participant under the Plan, such evidence as it may deem necessary to establish that the Awards granted or the shares of Common Stock to be purchased or transferred are being acquired for investment and not with a view to their distribution.

			
	
			
				 13.3
			No Right to Continued Employment.  Neither the Plan nor any Award granted under the Plan shall confer upon any Participant any right with respect to continuance of employment by the Company or any Subsidiary.

			
	
			
				 13.4
			Indemnification of Board and Committee.  No member of the Board or the Committee, nor any officer or Employee of the Company acting on behalf of the Board or the Committee, shall be personally liable for any action, determination, or interpretation taken or made in good faith with respect to the Plan, and all members of the Board and the Committee, each officer of the Company, and each Employee of the Company acting on behalf of the Board or the Committee shall, to the extent permitted by law, be fully indemnified and protected by the Company in respect of any such action, determination, or interpretation.

			
	
			
				 13.5
			Effect of the Plan.  Neither the adoption of this Plan nor any action of the Board or the Committee shall be deemed to give any person any right to be granted an Award or any other rights except as may be evidenced by an Award Agreement, or any amendment thereto, duly authorized by the Committee and executed on behalf of the Company, and then only to the extent and upon the terms and conditions expressly set forth therein.

			
	
			
				 13.6
			Severability And Reformation. The Company intends all provisions of the Plan to be enforced to the fullest extent permitted by law.  Accordingly, should a court of competent jurisdiction determine that the scope of any provision of the Plan is too broad to be enforced as written, the court 
		

		 

		

			-  13  -

		

 

			should reform the provision to such narrower scope as it determines to be enforceable.  If, however, any provision of the Plan is held to be wholly illegal, invalid, or unenforceable under present or future law, such provision shall be fully severable and severed, and the Plan shall be construed and enforced as if such illegal, invalid, or unenforceable provision were never a part hereof, and the remaining provisions of the Plan shall remain in full force and effect and shall not be affected by the illegal, invalid, or unenforceable provision or by its severance.

			
	
			
				 13.7
			Governing Law.  The Plan shall be construed and interpreted in accordance with the laws of the State of Texas.

			
	
			
				 13.8
			Compliance With Other Laws and Regulations.  Notwithstanding anything contained herein to the contrary, the Company shall not be required to sell or issue shares of Common Stock under any Award if the issuance thereof would constitute a violation by the Participant or the Company of any provisions of any law or regulation of any governmental authority or any national securities exchange or inter-dealer quotation system or other forum in which shares of Common Stock are quoted or traded (including without limitation Section 16 of the Exchange Act and Section 162(m) of the Code); and, as a condition of any sale or issuance of shares of Common Stock under an Award, the Committee may require such agreements or undertakings, if any, as the Committee may deem necessary or advisable to assure compliance with any such law or regulation.  The Plan, the grant of Awards hereunder, and the obligation of the Company to sell and deliver shares of Common Stock, shall be subject to all applicable federal and state laws, rules and regulations and to such approvals by any government or regulatory agency as may be required. 

			
	
			
				 13.9
			Foreign Participation.  To assure the viability of Awards granted to Participants employed in foreign countries, the Committee may provide for such special terms as it may consider necessary or appropriate to accommodate differences in local law, tax policy or custom.  Moreover, the Committee may approve such supplements to, or amendments, restatements or alternative versions of, this Plan as it determines is necessary or appropriate for such purposes.  Any such amendment, restatement or alternative versions that the Committee approves for purposes of using this Plan in a foreign country will not affect the terms of this Plan for any other country.

			
	
			
				 13.10
			Tax Requirements.  The Company or, if applicable, any Subsidiary (for purposes of this Section 13.10, the term “Company” shall be deemed to include any applicable Subsidiary), shall have the right to deduct from all amounts paid in cash or other form in connection with the Plan, any Federal, state, local, or other taxes required by law to be withheld in connection with an Award granted under this Plan.  The Company may, in its sole discretion, also require the Participant receiving shares of Common Stock issued under the Plan to pay the Company the amount of any taxes that the Company is required to withhold in connection with the Participant’s income arising with respect to the Award.  Such payments shall be required to be made when requested by Company and may be required to be made prior to the delivery of any certificate representing shares of Common Stock.  Such payment may be made (i) by the delivery of cash to the Company in an amount that equals or exceeds (to avoid the issuance of fractional shares under (iii) below) the required tax withholding obligations of the Company; (ii) if the Company, in its sole discretion, so consents in writing, the actual delivery by the Participant to the Company of shares of Common Stock owned by the Participant, which shares so delivered have an aggregate Fair Market Value that equals or exceeds (to avoid the issuance of fractional shares under (iii) below) the required tax withholding payment; or (iii) any combination of (i) or (ii).  The Company may, in its sole discretion, withhold any such taxes from any other cash remuneration otherwise paid by the Company to the 
		

		 

		

			-  14  -

		

 

			Participant.  The Committee may in the Award Agreement impose any additional tax requirements or provisions that the Committee deems necessary or desirable. 

			
	
			
				 13.11
			Use of Proceeds.  Proceeds from the sale of shares of Common Stock pursuant to Awards granted under this Plan shall constitute general funds of the Company.

			
	
			
				 13.12
			Legend.  Each certificate representing shares of Restricted Stock issued to a Participant shall bear the following legend, or a similar legend deemed by the Company to constitute an appropriate notice of the provisions hereof (any such certificate not having such legend shall be surrendered upon demand by the Company and so endorsed):

		
			On the face of the certificate:
		

		
			“Transfer of this stock is restricted in accordance with conditions printed on the reverse of this certificate.”
		

		
			On the reverse:
		

		
			“The shares of stock evidenced by this certificate are subject to and transferable only in accordance with that certain SWS Group, Inc. 2012 Restricted Stock Plan, a copy of which is on file at the principal office of the Company in Dallas, Texas, and that certain Restricted Stock Award Agreement dated as of ______________, 20___, by and between the Company and _______________.  No transfer or pledge of the shares evidenced hereby may be made except in accordance with and subject to the provisions of said Plan and Award Agreement.  By acceptance of this certificate, any holder, transferee or pledgee hereof agrees to be bound by all of the provisions of said Plan and Award Agreement.”
		

		
			The following legend shall be inserted on a certificate evidencing Common Stock issued under the Plan if the shares were not issued in a transaction registered under the applicable federal and state securities laws:
		

		
			“Shares of stock represented by this certificate have been acquired by the holder for investment and not for resale, transfer or distribution, have been issued pursuant to exemptions from the registration requirements of applicable state and federal securities laws, and may not be offered for sale, sold or transferred other than pursuant to effective registration under such laws, or in transactions otherwise in compliance with such laws, and upon evidence satisfactory to the Company of compliance with such laws, as to which the Company may rely upon an opinion of counsel satisfactory to the Company.”
		

		

		

		 

		

			-  15  -

		

 

		13.13Clawback.     All Awards under the Plan shall be subject to any clawback, recoupment or forfeiture provisions required by law and applicable to the Company or its Subsidiaries or Affiliates as in effect from time to time.
		

			
	
			
				Article 14
			 

		
			ACCELERATION OF AWARD VESTING
		

			
	
			
				 14.1
			Application.  The provisions of this Article 14 shall apply notwithstanding any provisions of this Plan to the contrary.

			
	
			
				 14.2
			Definitions.

			
	
			
				 (a)
			“Exempt Shares” means shares of Common Stock designated as “Exempt Shares” pursuant to Section 14.3.

			
	
			
				 (b)
			“Full Value Award” means any Award with a net benefit to the Participant, without regard to any restrictions such as those described in Section 6.2(b), equal to the aggregate Fair Market Value of the total shares of Common Stock subject to the Award.  Full Value Awards include Restricted Stock.

			
	
			
				 (c)
			“Tenure Award” means an Award hereunder of cash, shares of Common Stock, units or rights based upon, payable in, or otherwise related to, Common Stock that vests over time based upon the Participant’s continued employment with or service to the Company or its Subsidiaries.

		
			14.3Number of Shares Available for Awards.  No more than ten percent (10%) of the shares of Common Stock that may be delivered pursuant to Awards under Section 5.1 may be shares designated as “Exempt Shares.” 
		

		
			14.4Full Value Award Vesting.  Except as otherwise provided herein, the Committee must grant all Full Value Awards in accordance with the following provisions: 
		

			
	
			
				 (a)
			All Full Value Awards granted by the Committee that constitute Performance Awards must vest no earlier than one (1) year after the Date of Grant.

			
	
			
				 (b)
			All Full Value Awards granted by the Committee that constitute Tenure Awards must vest no earlier than over the three (3) year period commencing on the Date of Grant on a pro rata basis.

			
	
			
				 (c)
			The Committee may not accelerate the date on which all or any portion of a Full Value Award may be vested or waive the Restriction Period on a Full Value Award except upon the Participant's death, Total and Permanent Disability or the occurrence of a Change in Control.

		
			Notwithstanding the foregoing, the Committee may, in its sole discretion, grant Full Value Awards with more favorable vesting provisions than set forth in this Section 14.4 or accelerate the vesting or waive the Restriction Period for Full Value Awards at any time, provided that the shares of Common Stock subject to such Awards shall be Exempt Shares.  
		

		
			A copy of this Plan shall be kept on file in the principal office of the Company in Dallas, Texas.
		

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

		

		

		 

		

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		IN WITNESS WHEREOF, the Company has caused this instrument to be executed as of August 29, 2012, by its Chief Executive Officer and Secretary pursuant to prior action taken by the Board.
		

		
			 
		

		
			SWS GROUP, INC.
		

		
			By:                                                                
		

		
			Name:James H. Ross
		

		
			Title:Chief Executive Officer
		

		
			 
		

		
			 
		

		
			Attest:
		

		
			 
		

		
			 
		

		
			By:                                                                
		

		
			Name:Allen R. Tubb
		

		
			Title:Secretary
		

		
			 
		

		 

		

			-  17  -

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