UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549

FORM 8-K

CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934

Date of report (Date of earliest event reported): July 29, 2008 
    
HALLMARK FINANCIAL SERVICES, INC.
(Exact Name of Registrant as Specified in Its Charter)

Nevada
(State or Other Jurisdiction of Incorporation)

 
87-0447375
(Commission File Number)
  
(IRS Employer Identification No.)
     
 
76102
(Address of Principal Executive Offices)
  
(Zip Code)

817-348-1600
(Registrant’s Telephone Number, Including Area Code)

Not Applicable
(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))


Item 1.01 Entry into a Material Definitive Agreement

On July 29, 2008, Hallmark Financial Services, Inc. (“HFS”) entered into a lease agreement for its Phoenix Operating Unit with Legacy Tech IV Associates, Limited Partnership. The lease is for 16,814 square feet of office space in a building located at 6500 Pinecrest, Plano, Texas. The term of the lease is for 86 months commencing on December 1, 2008 and ending on January 31, 2016. The average monthly base rent will be $19,557.68 for the term of the lease. The foregoing description of the lease agreement is qualified in its entirety by reference to the lease agreement filed as an exhibit to this Current Report on Form 8-K and incorporated herein by this reference.

Item 9.01 Financial Statements and Exhibits

(c)          Exhibits.

 
99.1
Lease Agreement among Hallmark Financial Services, Inc. and Legacy Tech IV Associates, Limited Partnership dated July 22, 2008.
 
SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned duly authorized.

     
HALLMARK FINANCIAL SERVICES, INC.
         
Date:
July 29, 2008
By:
/s/ Jeffrey R. Passmore
     
Jeffrey R. Passmore, Chief Accounting Officer