Item 1.02 Termination of a Material Definitive Agreement.

Effective October 1, 2009, Timothy J. Hamick voluntarily resigned from any and all officer positions at SWS Group, Inc. and any subsidiaries of SWS (collectively, "SWS"), including, without limitation, the positions of Executive Vice President of SWS Group, Inc. and Executive Vice President of Southwest Securities, Inc., to pursue other opportunities. Contemporaneously with Mr. Hamick's resignation, the Executive Employment Agreement dated as of July 17, 2007, by and between Mr. Hamick and Southwest Securities, Inc., terminated, except for the confidentiality provisions in Section 11 which have no specific term beyond the termination date and the client non-solicitation provisions of Section 12 thereof which have been amended to reflect a six month term and will continue in full force and effect until April 1, 2010.

In connection with Mr. Hamick's resignation, SWS has entered into a Separation Agreement and Mutual Release with Mr. Hamick (the "Separation Agreement"). Pursuant to the Separation Agreement, SWS will pay Mr. Hamick $418,360.00 and will immediately vest all unvested restricted stock previously awarded to Mr. Hamick. All other benefits, stock options, restricted stock rights, compensation, perquisites and other rights of Mr. Hamick with respect to compensation from SWS ceased effective October 1, 2009. In exchange for such payments, Mr. Hamick agreed to certain non-solicitation and nondisclosure provisions, to return certain property to SWS and to maintain the confidentiality of proprietary information of SWS. The Separation Agreement also contains a mutual release of claims.

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