Document:

EXHIBIT 10 (bz)

                              THIRD AMENDMENT TO
                       EXECUTIVE COMPENSATION AGREEMENT

      This Third Amendment  to Executive Compensation  Agreement (the  "Third
 Amendment") is made and entered into  effective as of November 15, 2000,  by
 and between  RAMON  D. PHILLIPS  (the  "Executive") and  HALLMARK  FINANCIAL
 SERVICES, INC. (the "Company").

                                  Recitals:

      WHEREAS, the Executive has previously been  employed by the Company  as
 its President and Chief Executive Officer;

      WHEREAS, the Executive is  now Chairman of the  Board of Directors  and
 has relinquished his other offices;

      WHEREAS, the  Company  and Executive  have  entered into  an  Executive
 Compensation Agreement dated August  24, 1994, which Executive  Compensation
 Agreement has   been  amended by  a First  Executive Compensation  Agreement
 Amendment  dated  August   24,  1995,  a   Second  Amendment  to   Executive
 Compensation Agreement dated November 30, 1995, and  letter agreements dated
 December 29, 1998, and December 14, 1999 (as amended, the "Agreement"); and

      WHEREAS,  the  Company  and  Executive  desire  to  further  amend  the
 Agreement as set forth herein;

      NOW, THEREFORE, for and in consideration of the premises and the mutual
 covenants contained herein, and other  good and valuable consideration,  the
 receipt and sufficiency  of which is  hereby acknowledged,  the Company  and
 Executive hereby agree as follows:

                                  Amendment:

      1.   Amendment of Article  I.   Article I  of the  Agreement is  hereby
 deleted in its entirety and a new Article I substituted therefor which shall
 read as follows:

                                  ARTICLE I

                           DUTIES AND COMPENSATION

                            Chairman of the Board
           1.01 The Executive shall  serve as Chairman  of the Board  of
      Directors of  the  Company,  and  shall  perform  all  duties  and
      functions  reasonably  appurtenant   to  such   position  and   as
      reasonably directed by the Board of Directors of the Company.  The
      Executive will devote his full working time to the performance  of
      his duties as Chairman of the  Company, but need not maintain  any
      specified working hours or days while performing such duties.  The
      Company acknowledges that the Executive may perform a  significant
      portion of his duties as Chairman from his home.
<PAGE>
                                 Base Salary

           1.02 During the  period of  employment  of Executive  by  the
      Company,  the  Board   of  Directors  of   the  Company,  or   the
      Compensation Committee thereof, shall determine the base salary of
      Executive.   Commencing November  15, 2000,  and continuing  until
      immediately following the 2001  Annual Meeting of Shareholders  of
      the Company, the annualized base salary of Executive shall be  not
      less than  $252,495.   Commencing immediately  following the  2001
      Annual Meeting  of Shareholders  of  the Company,  and  continuing
      until  immediately   following   the  2002   Annual   Meeting   of
      Shareholders  of  the  Company,  the  annualized  base  salary  of
      Executive shall be not less than $150,000.

                                   Bonuses

           1.03 In addition  to  his  base salary,  Executive  shall  be
      entitled to  such  cash  bonuses  as  the  Board  or  Compensation
      Committee shall from time to time determine.

                              Expense Allowances

           1.04 In addition to  his base salary  and bonuses,  Executive
      shall be provided an  automobile allowance of  $1,250 per month.
      The Company shall  also reimburse Executive  for all ordinary  and
      necessary business expenses incurred on  behalf of the Company  in
      the course of  Executive's duties.   Such  ordinary and  necessary
      business  expenses   shall   include,  without   limitation,   all
      reasonable expenses  incurred  in  connection  with  equipping  an
      office in Executive's home.

                       Stock Options and Other Benefits

           1.05 Executive shall be entitled to participate in all  stock
      option and other  incentive compensation  plans of  the Company.
      Awards to Executive  pursuant to such  stock option and  incentive
      compensation plans shall be in such  amounts as the Board, or  the
      Stock Option Committee  or Compensation  Committee thereof,  shall
      determine in  its  sole  discretion.    Executive  shall  also  be
      entitled  to  participate  in  all  other  programs  and  benefits
      provided by  the Company  to the  same extent  as other  executive
      officers of the Company.

      2.   Amendment of Article II.   Article II of  the Agreement is  hereby
 amended by deleting  the  parenthetical phrase immediately following  clause
 (c) in Section  2.03 and substituting  therefor a  new parenthetical  phrase
 reading "(other  than (i)  the Company,  or (ii)  an employee  benefit  plan
 sponsored by the Company)".

      3.   Amendment of Article III.  Article III of the Agreement is  hereby
 amended by deleting Section 3.01 in its entirety and substituting therefor a
 new Section 3.01 which shall read as follows:

                     Window Period; Other than for Cause
<PAGE>

           3.01 If the Company  terminates Executive's employment  other
      than for  Cause  or  Executive terminates  employment  during  the
      Window Period, the Company shall pay to Executive in a lump sum in
      cash within  thirty (30)  days after  the Date  of Termination  an
      amount equal to the sum of (i) the then current annual base salary
      of Executive plus (ii) the highest amount of bonus and other  cash
      compensation  received  by  Executive   during  any  one  of   the
      immediately preceding three (3) fiscal years.

      4.   Amendment of Article IV.   Article IV of  the Agreement is  hereby
 deleted in its  entirety and  a new  Article IV  substituted therefor  which
 shall read as follows:

                                  ARTICLE IV

                      TERM; POST-TERMINATION CONSULTING

                                     Term

           4.01 The term of  this Agreement shall  commence on the  date
      hereof and  shall continue  until immediately  following the  2002
      Annual Meeting of Shareholders of the Company.

                         Post-Termination Consulting

           4.02 Upon termination of this Agreement immediately following
      the 2002  Annual  Meeting  of Shareholders  of  the  Company,  the
      Company shall  retain Executive  as an  independent contractor  to
      perform consulting services for  the Company for  a period of  one
      (1) year.    During such  period,  Executive shall  be  reasonably
      available to consult  with the  Board of  Directors and  executive
      officers of the Company for a maximum  of 20 hours per month.   In
      consideration of such consulting services, Executive shall receive
      an annualized  base retainer  of $89,000,  plus $200.00  per  hour
      devoted to such  consultation in excess  of 20 hours  per month.
      During the  term  of  such consulting  services,  Executive  shall
      continue to be entitled to receive the reimbursement and  benefits
      provided in Sections 1.04 and 1.05 hereof.

      5.   Affirmation of Agreement.  Except as expressly provide herein, all
 terms and  conditions of  the Agreement  shall continue  in full  force  and
 effect.

      EXECUTED to be effective as of the date first set forth above.

 COMPANY:                                EXECUTIVE:

 Hallmark Financial Services, Inc.
                                         _________________________
                                         Ramon D. Phillips
 By:  ______________________

 Name: _____________________

 Title: ____________________EXHIBIT 10 (ca)

                              THIRD AMENDMENT TO
                       EXECUTIVE COMPENSATION AGREEMENT

      This Third Amendment  to Executive Compensation  Agreement (the  "Third
 Amendment") is made and entered into  effective as of November 26, 2000,  by
 and between  LINDA  H.  SLEEPER (the  "Executive")  and  HALLMARK  FINANCIAL
 SERVICES, INC. (the "Company").

                                  Recitals:

      WHEREAS, the Executive has previously been  employed by the Company  as
 its Executive Vice President and Chief Operating Officer;

      WHEREAS, the  Executive  has  been  promoted  to  President  and  Chief
 Executive Officer and has relinquished her other offices;

      WHEREAS, the  Company  and Executive  have  entered into  an  Executive
 Compensation Agreement dated August  24, 1994, which Executive  Compensation
 Agreement has   been  amended by  a First  Executive Compensation  Agreement
 Amendment  dated  August   24,  1995,  a   Second  Amendment  to   Executive
 Compensation Agreement dated November 30, 1995, and  letter agreements dated
 December 29, 1998, and December 14, 1999 (as amended, the "Agreement"); and

      WHEREAS,  the  Company  and  Executive  desire  to  further  amend  the
 Agreement as set forth herein;

      NOW, THEREFORE, for and in consideration of the premises and the mutual
 covenants contained herein, and other  good and valuable consideration,  the
 receipt and sufficiency  of which is  hereby acknowledged,  the Company  and
 Executive hereby agree as follows:

                                  Amendment:

      1.   Amendment of Article  I.   Article I  of the  Agreement is  hereby
 deleted in its entirety and a new Article I substituted therefor which shall
 read as follows:

                                  ARTICLE I

                                 COMPENSATION

                                 Base Salary

           1.01 During the  period of  employment  of Executive  by  the
      Company,  the  Board   of  Directors  of   the  Company,  or   the
      Compensation Committee thereof, shall determine the base salary of
      Executive.  Commencing November  26, 2000, and continuing  through
      fiscal year 2001, the annualized base salary of Executive shall be
      not less  than $200,000.   For  each fiscal  year thereafter,  the
      annual base salary of Executive shall be not less than 105% of the
      base salary for the preceding fiscal year.
<PAGE>
                                   Bonuses

           1.02 In addition  to  her  base salary,  Executive  shall  be
      entitled to  such  cash  bonuses  as  the  Board  or  Compensation
      Committee shall from time to time determine.

                            Expense Reimbursement

           1.03 In addition to  her base salary  and bonuses,  Executive
      shall be provided an automobile allowance of $500 per month.   The
      Company shall  also  reimburse  Executive  for  all  ordinary  and
      necessary business expenses incurred on  behalf of the Company  in
      the course of Executive's duties.

                       Stock Options and Other Benefits

           1.04 Executive shall be entitled to participate in all  stock
      option and other  incentive compensation  plans of  the Company.
      Awards to Executive  pursuant to such  stock option and  incentive
      compensation plans shall be in such  amounts as the Board, or  the
      Stock Option Committee  or Compensation  Committee thereof,  shall
      determine in  its  sole  discretion.    Executive  shall  also  be
      entitled  to  participate  in  all  other  programs  and  benefits
      provided by  the Company  to the  same extent  as other  executive
      officers of the Company.

      2.   Amendment of Article II.   Article II of  the Agreement is  hereby
 amended by deleting  the  parenthetical phrase immediately following  clause
 (c) in Section  2.03 and substituting  therefor a  new parenthetical  phrase
 reading "(other  than (i)  the Company,  or (ii)  an employee  benefit  plan
 sponsored by the Company)".

      3.   Amendment of Article III.  Article III of the Agreement is  hereby
 amended by deleting Section 3.01 in its entirety and substituting therefor a
 new Section 3.01 which shall read as follows:

                     Window Period; Other than for Cause

           3.01 If the Company  terminates Executive's employment  other
      than for  Cause  or  Executive terminates  employment  during  the
      Window Period, the Company  shall (a) pay to  Executive in a  lump
      sum in cash within thirty (30) days after the Date of  Termination
      an amount equal  to the sum  of (i) the  then current annual  base
      salary of  Executive plus  (ii) the  highest amount  of bonus  and
      other cash compensation  received by Executive  during any one  of
      the immediately preceding three  (3) fiscal years,  and (b) for  a
      period of one (1) year, maintain health insurance coverage for the
      Executive and her family (if applicable) substantially  comparable
      to that  available  to  the Executive  immediately  prior  to  the
      commencement of the Window Period.

      4.   Amendment of Article IV.   Article IV of  the Agreement is  hereby
 deleted in its  entirety and  a new  Article IV  substituted therefor  which
 shall read as follows:
<PAGE>

                                  ARTICLE IV

                                     TERM

                                 Primary Term

           4.01 The term of  this Agreement shall  commence on the  date
      hereof and shall continue until December 31, 2002.

                                   Renewal

           4.02 On  or  before  the  expiration  of  the  term  of  this
      Agreement, the Board of Directors of the Company may, in its  sole
      discretion, extend the term of this  Agreement through the end  of
      the next fiscal year of the Company.

      5.   Affirmation of Agreement.  Except as expressly provide herein, all
 terms and  conditions of  the Agreement  shall continue  in full  force  and
 effect.

      EXECUTED to be effective as of the date first set forth above.

 COMPANY:                                EXECUTIVE:

 Hallmark Financial Services, Inc.
                                         _________________________
                                         Linda H. Sleeper
 By:  ______________________

 Name: _____________________

 Title: ____________________

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