X0303 4 2010-07-09 0 0000819913 HALLMARK FINANCIAL SERVICES INC HALL 0001208889 SCHWARZ MARK E 200 CRESCENT COURT STE 1400 DALLAS TX 75201 1 1 1 1 Chairman see attached explanation 0000932334 NEWCASTLE PARTNERS L P 200 CRESCENT COURT STE 1400 DALLAS TX 75201 0 0 0 1 see attached explanation 0001251296 NEWCASTLE CAPITAL MANAGEMENT LP 200 CRESCENT COURT STE 1400 DALLAS TX 75201 0 0 0 1 see attached explanation 0001251293 NEWCASTLE CAPITAL GROUP LLC 200 CRESCENT COURT STE 1400 DALLAS TX 75201 0 0 0 1 see attached explanation 0001382543 Newcastle Focus Fund II LP 200 CRESCENT COURT SUITE 1400 DALLAS TX 75201 0 0 0 1 see attached explanation 0001461757 NEWCASTLE SPECIAL OPPORTUNITY FUND I, L.P. 200 CRESCENT COURT SUITE 1400 DALLAS TX 75201 0 0 0 1 see attached explanation 0001461758 NEWCASTLE SPECIAL OPPORTUNITY FUND II, L.P. 200 CRESCENT COURT SUITE 1400 DALLAS TX 75201 0 0 0 1 see attached explanation 0001461220 DETROIT STOKER Co 1510 E. FIRST ST. MONROE MI 48161 0 0 0 1 see attached explanation 0001461218 DSC Services, Inc. 200 CRESCENT COURT SUITE 1400 DALLAS TX 75201 0 0 0 1 see attached explanation Common Stock 2010-07-09 4 J 0 34880 0 A 8061848 I see footnotes Common Stock 2010-07-09 4 J 0 34880 0 D 8061848 I see footnotes Constitutes a distribution of shares to Schwarz in satisfaction of a partial redemption from NP as of June 30, 2010. The Reporting Persons are members of a "group" for purposes of Section 13(d)(3) of the Securities Exchange Act of 1934, as amended and accordingly may be deemed to beneficially own Shares of the Issuer's Common Stock owned in the aggregate by the other members of the Section 13(d) group. The Section 13(d) group consists of Newcastle Partners, L.P. ("NP"), Newcastle Capital Management, L.P. ("NCM"), Newcastle Capital Group, L.L.C. ("NCG"), Newcastle Special Opportunity Fund I, L.P. ("NSOF I"), Newcastle Special Opportunity Fund II, L.P. ("NSOF II"), Newcastle Focus Fund II, L.P. ("NFF"), DSC Services Inc. ("DSC"), Detroit Stoker Company ("Detroit Stoker") and Mark E. Schwarz ("Schwarz"). Each Reporting Person disclaims beneficial ownership of the shares of the Issuer's Common Stock owned by the other members of the Section 13(d) group except to the extent of its pecuniary interest therein. NCM is the general partner of each of NP, NSOFI, NSOFII and NFF. NCG is the general partner of NCM, and Schwarz is the managing member of NCG. Accordingly, each of NCM, NCG and Schwarz may be deemed to beneficially own the shares directly owned by any of NP, NSOFI, NSOFII and NFF. In addition, DSC is the parent company of Detroit Stoker, and Schwarz and NCG together own all of the outstanding shares of DSC. Accordingly, each of Schwarz and DSC may be deemed to beneficially own the shares directly owned by Detroit Stoker. Constitutes a contribution of shares by Schwarz to NFF. /s/ Mark E. Schwarz 2010-07-13 Newcastle Partners, L.P., By: Newcastle Capital Management, L.P., its general partner, By: Newcastle Capital Group, L.L.C. its general partner, By: /s/ Mark E. Schwarz, its managing member 2010-07-13 Newcastle Capital Management, L.P., its general partner, By: Newcastle Capital Group, L.L.C. its general partner, By: /s/ Mark E. Schwarz, its managing member 2010-07-13 Newcastle Capital Group, L.L.C. its general partner, By: /s/ Mark E. Schwarz, its managing member 2010-07-13 Newcastle Special Opportunity Fund I, L.P., By: Newcastle Capital Management, L.P., its general partner, By: Newcastle Capital Group, L.L.C. its general partner, By: /s/ Mark E. Schwarz, its managing member 2010-07-13 Newcastle Special Opportunity Fund II, L.P., By: Newcastle Capital Management, L.P., its general partner, By: Newcastle Capital Group, L.L.C. its general partner, By: /s/ Mark E. Schwarz, its managing member 2010-07-13 Focus Fund II, L.P., By: Newcastle Capital Management, L.P., its general partner, By: Newcastle Capital Group, L.L.C. its general partner, By: /s/ Mark E. Schwarz, its managing member 2010-07-13 Detroit Stoker Co. 2010-07-13 DSC Services, Inc. 2010-07-13