<SEC-DOCUMENT>0000950123-11-025095.txt : 20110314
<SEC-HEADER>0000950123-11-025095.hdr.sgml : 20110314
<ACCEPTANCE-DATETIME>20110314124942
ACCESSION NUMBER:		0000950123-11-025095
CONFORMED SUBMISSION TYPE:	DEF 14A
PUBLIC DOCUMENT COUNT:		7
CONFORMED PERIOD OF REPORT:	20110426
FILED AS OF DATE:		20110314
DATE AS OF CHANGE:		20110314
EFFECTIVENESS DATE:		20110314

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			DIAMOND HILL INVESTMENT GROUP INC
		CENTRAL INDEX KEY:			0000909108
		STANDARD INDUSTRIAL CLASSIFICATION:	INVESTMENT ADVICE [6282]
		IRS NUMBER:				650190407
		STATE OF INCORPORATION:			OH
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		DEF 14A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-24498
		FILM NUMBER:		11684565

	BUSINESS ADDRESS:	
		STREET 1:		325 JOHN H MCCONNELL BLVD
		STREET 2:		SUITE 200
		CITY:			COLUMBUS
		STATE:			OH
		ZIP:			43215
		BUSINESS PHONE:		6142553333

	MAIL ADDRESS:	
		STREET 1:		325 JOHN H MCCONNELL BLVD
		STREET 2:		SUITE 200
		CITY:			COLUMBUS
		STATE:			OH
		ZIP:			43215

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	BANC STOCK GROUP INC
		DATE OF NAME CHANGE:	19971016

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	HEARTLAND GROUP OF COMPANIES INC
		DATE OF NAME CHANGE:	19940301

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	HEARTLAND FINANCIAL GROUP INC
		DATE OF NAME CHANGE:	19930714
</SEC-HEADER>
<DOCUMENT>
<TYPE>DEF 14A
<SEQUENCE>1
<FILENAME>l42120def14a.htm
<DESCRIPTION>DEF 14A
<TEXT>
<HTML>
<HEAD>
<TITLE>def14a</TITLE>
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<BODY bgcolor="#FFFFFF">
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<H5 align="left" style="page-break-before:always"><A HREF="#L42120tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">






<DIV align="center" style="font-size: 18pt; margin-top: 12pt"><B>SCHEDULE 14A INFORMATION</B>
</DIV>


<DIV align="center" style="font-size: 12pt; margin-top: 0pt"><B>Proxy Statement Pursuant to Section&nbsp;14(a) of the<BR>
Securities Exchange Act of 1934</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Filed by the Registrant <FONT face="Wingdings">&#254;</FONT><BR>
Filed by a Party other than the Registrant <FONT face="Wingdings">&#111;</FONT>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Check the appropriate box:<BR>
<FONT face="Wingdings">&#111;</FONT>&nbsp;&nbsp;&nbsp; Preliminary Proxy Statement<BR>
<FONT face="Wingdings">&#111;</FONT>&nbsp;&nbsp;&nbsp; Confidential, for Use of the Commission Only (as permitted by Rule&nbsp;14a-6(e)(2))<BR>
<FONT face="Wingdings">&#254;</FONT>&nbsp;&nbsp;&nbsp; Definitive Proxy Statement<BR>
<FONT face="Wingdings">&#111;</FONT>&nbsp;&nbsp;&nbsp; Definitive Additional Materials<BR>
<FONT face="Wingdings">&#111;</FONT>&nbsp;&nbsp;&nbsp; Soliciting Material Pursuant to &#167;240.14a-12

</DIV>
<DIV align="center" style="font-size: 14pt; margin-top: 12pt"><B><FONT style="border-bottom: 1px solid #000000">Diamond
Hill Investment Group, Inc.</FONT></B>
</DIV>

<DIV align="center" style="font-size: 10pt">(Name of Registrant as Specified In Its Charter)</DIV>



<DIV align="Center" style="font-size: 10pt; margin-top: 12pt"><DIV style="margin-top: 1px"><FONT style="border-top: 1px solid #000000">(Name of Person(s) Filing Proxy Statement if Other than the Registrant)</FONT></DIV>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Payment of Filing Fee (Check the appropriate box):<BR>
<FONT face="Wingdings">&#254;</FONT>&nbsp;&nbsp;&nbsp; No fee required<BR>
<FONT face="Wingdings">&#111;</FONT>&nbsp;&nbsp;&nbsp; Fee computed on table below per Exchange Act Rules&nbsp;14a-6(i)(4) and 0-11.

</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Title of each class of securities to which transaction applies:</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="width: 100%; border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Aggregate number of securities to which transaction applies:</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="width: 100%; border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Per unit price or other underlying value of transaction computed pursuant to
Exchange Act Rule&nbsp;0-11 (Set forth the amount on which the filing fee is calculated and
state how it was determined:</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="width: 100%; border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">4)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Proposed maximum aggregate value of transaction:</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="width: 100%; border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">5)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Total fee paid:</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="width: 100%; border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV></TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><FONT face="Wingdings">&#111;</FONT>&nbsp;&nbsp;&nbsp; Fee paid previously with preliminary materials

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><FONT face="Wingdings">&#111;</FONT> &nbsp;&nbsp;&nbsp;Check box if any part of the fee is offset as provided by Exchange Act Rule&nbsp;0-11(a)(2) and
identify the filing for which the offsetting fee was paid previously. Identify the previous filing
by registration statement number, or the Form or Schedule and the date of its filing.
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Amount Previously Paid:</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Form, Schedule or Registration Statement No.:</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Filing Party:</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">4)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Date Filed:</TD>
</TR>

</TABLE>
</DIV>






<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <IMG src="l42120l4212000.gif" alt="(DIMOND HILL LOGO)">
</DIV>



<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 14pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Diamond
    Hill Investment Group, Inc.<BR>
    <FONT style="font-size: 10pt">325 John H. McConnell Boulevard,
    Suite&#160;200<BR>
    Columbus, Ohio 43215</FONT></FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="right" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <FONT style="font-family: 'Times New Roman', Times">March&#160;14,
    2011
    </FONT>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Dear Shareholders:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We cordially invite you to attend the 2011 Annual Meeting of
    Shareholders of Diamond Hill Investment Group, Inc. (the
    &#147;Company&#148;), to be held at 325 John H. McConnell Blvd.,
    Columbus, Ohio 43215, on Tuesday April&#160;26, 2011, at
    12:00&#160;p.m. Eastern Daylight Saving Time.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The attached Notice of Annual Meeting and Proxy Statement
    describe the formal business to be transacted at the meeting.
    During the meeting, we will also report on the operations of the
    Company and directors and officers of the Company will be
    present to respond to any appropriate questions you may have.
    <B>On behalf of the Board of Directors, we urge you to sign,
    date and return the enclosed proxy card as soon as possible,
    even if you currently plan to attend the Annual Meeting</B>.
    This will not prevent you from voting in person but will ensure
    that your vote is counted if you are unable to attend the
    meeting. Your vote is important, regardless of the number of
    shares you own.
</DIV>

<DIV style="margin-top: 24pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 49%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Sincerely,
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 49%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <IMG src="l42120l4212001.gif" alt="-s- R. H. Dillon">
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 49%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    R. H. Dillon
</DIV>

<DIV align="left" style="margin-left: 49%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    President and CEO
</DIV>
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<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

</DIV><!-- END PAGE WIDTH -->
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<H5 align="left" style="page-break-before:always"><A HREF="#L42120tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <IMG src="l42120l4212000.gif" alt="(DIMOND HILL LOGO)">
</DIV>



<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 14pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Diamond
    Hill Investment Group, Inc.<BR>
    <FONT style="font-size: 10pt">325 John H. McConnell Boulevard,
    Suite&#160;200,<BR>
    Columbus, Ohio 43215<BR>
    <BR>
    NOTICE OF ANNUAL MEETING OF SHAREHOLDERS</FONT></FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B>TO BE HELD ON APRIL 26, 2011</B>
</DIV>

<DIV style="margin-top: 2pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B>Notice is hereby given </B>that the 2011 Annual Meeting of
    Shareholders (the &#147;Annual Meeting&#148;) of Diamond Hill
    Investment Group, Inc. (the &#147;Company&#148;), will be held
    at 325 John H. McConnell Blvd., Columbus, Ohio 43215, on
    Tuesday, April&#160;26, 2011, at 12:00&#160;p.m. Eastern
    Daylight Saving Time to consider and act upon the following
    matters:
</DIV>

<DIV style="margin-top: 2pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    1)&#160;To elect seven directors to serve on the Company&#146;s
    Board of Directors;
</DIV>

<DIV style="margin-top: 2pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    2)&#160;To ratify the appointment of Plante&#160;&#038; Moran
    PLLC as the Company&#146;s independent registered public
    accounting firm for 2011;
</DIV>

<DIV style="margin-top: 2pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    3)&#160;To approve and adopt the Company&#146;s 2011 Equity and
    Cash Incentive Plan;
</DIV>

<DIV style="margin-top: 2pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    4)&#160;To hold an advisory vote on the compensation of the
    Company&#146;s executive officers;
</DIV>

<DIV style="margin-top: 2pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    5)&#160;To hold an advisory vote on the frequency of advisory
    votes on the compensation of the Company&#146;s executive
    officers;&#160;and
</DIV>

<DIV style="margin-top: 2pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    6)&#160;To transact such other business as may properly come
    before the Annual Meeting or any adjournment thereof.
</DIV>

<DIV style="margin-top: 2pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Action may be taken on the foregoing proposals at the Annual
    Meeting or at any adjournment of the Annual Meeting. The Board
    of Directors has fixed the close of business on March&#160;1,
    2011, as the record date for determination of the shareholders
    entitled to vote at the Annual Meeting and any adjournments
    thereof. You are requested to complete, sign and date the
    enclosed form of proxy, which is solicited by the Company&#146;s
    Board of Directors, and to mail it promptly in the enclosed
    envelope. Alternatively, you may vote by phone by using the
    control number identified on your proxy or electronically over
    the Internet in accordance with the instructions on the enclosed
    proxy. Returning the enclosed proxy card, or transmitting voting
    instructions electronically through the Internet or by
    telephone, does not affect your right to vote in person at the
    Annual Meeting. If you attend the Annual Meeting, you may revoke
    your proxy and vote in person if your shares are registered in
    your name.
</DIV>

<DIV style="margin-top: 2pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B>THE PROMPT RETURN OF YOUR PROXY WILL SAVE THE COMPANY THE
    EXPENSE OF MAKING FURTHER REQUESTS FOR PROXIES IN ORDER TO
    OBTAIN A QUORUM. WHETHER OR NOT YOU PLAN TO ATTEND THE ANNUAL
    MEETING, PLEASE COMPLETE, SIGN, DATE AND RETURN THE ENCLOSED
    PROXY CARD IN THE ENCLOSED POSTAGE-PAID ENVELOPE. ALTERNATIVELY,
    REFER TO THE INSTRUCTIONS&#160;ON THE PROXY CARD TO TRANSMIT
    YOUR VOTING INSTRUCTIONS&#160;VIA THE INTERNET OR BY
    TELEPHONE.</B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 49%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    By order of the Board of Directors
</DIV>

<DIV align="left" style="margin-left: 49%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <IMG src="l42120l4212002.gif" alt="-S- James F. Laird)">
</DIV>

<DIV align="left" style="margin-left: 49%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    James F. Laird
</DIV>

<DIV align="left" style="margin-left: 49%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Secretary
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <FONT style="font-size: 9pt">Columbus, Ohio
    </FONT>
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <FONT style="font-size: 9pt">March&#160;14, 2011
    </FONT>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 2pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B>IMPORTANT NOTICE REGARDING THE AVAILABILITY OF PROXY
    MATERIALS FOR THE<BR>
    ANNUAL MEETING OF SHAREHOLDERS TO BE HELD ON APRIL 26, 2011:</B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B>The Proxy Statement and the Company&#146;s 2010 Annual Report
    to Shareholders are available without</B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B>charge at the following location:</B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><U><FONT style="white-space: nowrap">http://www.diamond-hill.com/pdf/imr/proxy-annual-report-final-print.pdf</FONT></U></B>
</DIV>
</DIV><!-- End box 1 -->

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    <IMG src="l42120l4212000.gif" alt="(DIMOND HILL LOGO)">
</DIV>



<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 14pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Diamond
    Hill Investment Group, Inc.<BR>
    <FONT style="font-size: 10pt">325 John H. McConnell Boulevard,
    Suite&#160;200<BR>
    Columbus, Ohio 43215</FONT></FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 12pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">PROXY
    STATEMENT<BR>
    FOR THE ANNUAL MEETING OF SHAREHOLDERS OF<BR>
    DIAMOND HILL INVESTMENT GROUP, INC.<BR>
    TO BE HELD ON APRIL 26, 2011</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    This Proxy Statement is being furnished to the shareholders of
    Diamond Hill Investment Group, Inc., an Ohio corporation (the
    &#147;Company&#148;), in connection with the solicitation of
    proxies by the Board of Directors (the &#147;Board&#148;) for
    use at the Company&#146;s 2011 Annual Meeting of Shareholders
    (the &#147;Annual Meeting&#148;) to be held on April&#160;26,
    2011, and any adjournment thereof. A copy of the Notice of
    Annual Meeting accompanies this Proxy Statement. This Proxy
    Statement and the enclosed proxy are first being mailed to
    shareholders on or about March&#160;14, 2011. Only shareholders
    of record at the close of business on March&#160;1, 2011, the
    record date for the Annual Meeting, are entitled to notice of,
    and to vote at, the Annual Meeting.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The purposes of this Annual Meeting are:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    1)&#160;To elect seven directors for one-year terms each;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    2)&#160;To ratify the appointment of Plante&#160;&#038; Moran
    PLLC (&#147;Plante&#160;&#038; Moran&#148;) as our independent
    registered public accounting firm for 2011;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    3)&#160;To approve and adopt the Company&#146;s 2011 Equity and
    Cash Incentive Plan (the &#147;2011 Incentive Plan&#148;);
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    4)&#160;To hold an advisory vote on the compensation of the
    Company&#146;s executive officers;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    5)&#160;To hold an advisory vote on the frequency of advisory
    votes on the compensation of the Company&#146;s executive
    officers;&#160;and
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    6)&#160;To transact such other business that may properly come
    before the Annual Meeting or any adjournment thereof.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Those common shares represented by (i)&#160;properly signed
    proxy cards or (ii)&#160;properly authenticated voting
    instructions recorded electronically over the Internet or by
    telephone that are received prior to the Annual Meeting and not
    revoked will be voted at the Annual Meeting as directed by the
    shareholders. If a shareholder submits a valid proxy and does
    not specify how the common shares should be voted, they will be
    voted as recommended by your Board. The proxy holders will use
    their best judgment regarding any other matters that may
    properly come before the Annual Meeting.
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B>IMPORTANT NOTICE REGARDING THE AVAILABILITY OF PROXY
    MATERIALS FOR THE</B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B>ANNUAL MEETING OF SHAREHOLDERS TO BE HELD ON APRIL 26,
    2011:</B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B>The Proxy Statement and the Company&#146;s 2010 Annual Report
    to Shareholders are available without</B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B>charge at the following location:</B>
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><U><FONT style="white-space: nowrap">http://www.diamond-hill.com/pdf/imr/proxy-annual-report-final-print.pdf</FONT></U></B>
</DIV>
</DIV><!-- End box 1 -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>
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<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

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    <B><FONT style="font-family: 'Times New Roman', Times">TABLE OF
    CONTENTS</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>
<DIV align="left">
<!-- TOC -->
</DIV>

<DIV align="left">
<A name="L42120tocpage"></A>
</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="95%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=quadleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=quadright -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Section</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Page</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#L42120101'>Questions and Answers About the Annual Meeting
    and Voting</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#L42120102'>The Annual Meeting</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#L42120103'>Procedural Matters</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#L42120104'>Security Ownership of Certain Beneficial Owners
    and Management</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#L42120105'>Section&#160;16(a) Beneficial Ownership Reporting
    Compliance</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#L42120106'>Proposal&#160;1&#160;&#151; Election of
    Directors</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#L42120107'>Director Independence</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#L42120108'>The Nominees</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#L42120109'>The Board of Directors and Committees</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#L42120110'>Compensation of Directors</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#L42120111'>Nominations and Corporate Governance</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#L42120112'>Executive Officers and Compensation
    Information</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#L42120113'>Compensation Discussion and Analysis</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#L42120114'>Stock Ownership Guidelines</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#L42120115'>Summary Compensation Table</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    21
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#L42120116'>2010 Grants of Plan-Based Awards</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    22
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#L42120117'>Outstanding Equity Awards at December&#160;31,
    2010</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    22
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#L42120118'>2010 Option Exercises and Stock Vested</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    23
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#L42120119'>Report of the Compensation Committee</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    24
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#L42120120'>Proposal&#160;2&#160;&#151; Ratification of the
    Appointment of Independent Registered Public Accounting Firm</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    25
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#L42120121'>Proposal&#160;3&#160;&#151; Approval of 2011
    Equity and Cash Incentive Plan</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    26
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#L42120122'>Proposal&#160;4&#160;&#151; Advisory Vote on the
    Compensation of the Company&#146;s Executive Officers</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    33
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#L42120123'>Proposal&#160;5&#160;&#151; Advisory Vote on the
    Frequency of Advisory Votes on the Compensation of the
    Company&#146;s Executive Officers</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    34
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Additional Information
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#L42120124'>Shareholder Communications with the Board of
    Directors</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    34
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#L42120125'>Shareholder Proposals for the 2012 Annual
    Meeting</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    34
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#L42120126'>Shareholders Sharing the Same Address</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    35
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#L42120127'>Other Business</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    35
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#L42120128'>Appendix&#160;A&#160;&#151; 2011 Equity and Cash
    Incentive Plan</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-1
</TD>
<TD>&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

</DIV>

<DIV align="left">
<!-- /TOC -->
</DIV>
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<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#L42120tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='L42120101'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">QUESTIONS
    AND ANSWERS ABOUT THE ANNUAL MEETING AND VOTING</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR>
    <TD valign="top">
    <B>Q: </B></TD>
    <TD></TD>
    <TD valign="bottom">
    <B>When and where will the Annual Meeting take place?</B></TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    A: </TD>
    <TD></TD>
    <TD valign="bottom">
    The Annual Meeting will be held at 325 John H. McConnell Blvd.,
    Columbus, Ohio 43215, on Tuesday April&#160;26, 2011, at
    12:00&#160;p.m. Eastern Daylight Saving Time. You may also
    listen live to the Annual Meeting via audio conference by
    calling
    <FONT style="white-space: nowrap">800-774-6070</FONT>
    [use confirmation code 9811815# when prompted] and you can view
    presentation materials in the &#147;News and Updates&#148;
    section of the Company&#146;s website,
    <FONT style="white-space: nowrap">http://www.diamond-hill.com.</FONT></TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    <B>Q: </B></TD>
    <TD></TD>
    <TD valign="bottom">
    <B>What may I vote on?</B></TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    A: </TD>
    <TD></TD>
    <TD valign="bottom">
    At the Annual Meeting, you will be asked to consider and vote
    upon the: (i)&#160;election of seven directors to the Board;
    (ii)&#160;ratification of the appointment of Plante&#160;&#038;
    Moran as the Company&#146;s independent registered public
    accounting firm for the fiscal year ending December&#160;31,
    2011; (iii)&#160;approval of the 2011 Incentive Plan;
    (iv)&#160;approval, on an advisory basis, of the compensation of
    the Company&#146;s executive officers; and (v)&#160;selection,
    on an advisory basis, of the frequency of shareholder advisory
    votes on the compensation of the company&#146;s executive
    officers.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    <B>Q: </B></TD>
    <TD></TD>
    <TD valign="bottom">
    <B>What do I need to do now?</B></TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    A: </TD>
    <TD></TD>
    <TD valign="bottom">
    After carefully reading this Proxy Statement, indicate on the
    enclosed proxy card how you want your shares to be voted and
    sign and mail the proxy promptly in the enclosed envelope.
    Alternatively, you may vote by phone by using the control number
    identified on your proxy, or vote electronically over the
    Internet in accordance with the instructions on your proxy. The
    deadline for transmitting voting instructions electronically
    over the Internet or telephonically is 11:59&#160;p.m. Eastern
    Daylight Saving Time on April&#160;25, 2011. If you vote by
    phone or over the Internet you do not need to return a proxy
    card. You should be aware that if you vote over the Internet or
    by phone, you may incur costs associated with electronic access,
    such as usage charges from Internet service providers and
    telephone companies.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    <B>Q: </B></TD>
    <TD></TD>
    <TD valign="bottom">
    <B>What does it mean if I get more than one proxy card?</B></TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    A: </TD>
    <TD></TD>
    <TD valign="bottom">
    If your shares are registered differently and are in more than
    one account, you will receive more than one proxy card. If you
    intend to vote by mail, sign, date and return all proxy cards to
    ensure that all your shares are voted. If you are a record
    holder and intend to vote by telephone or over the Internet, you
    must do so for each individual proxy card you receive.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    <B>Q: </B></TD>
    <TD></TD>
    <TD valign="bottom">
    <B>What is the difference between holding shares as a
    shareholder of record and as a beneficial owner?</B></TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    A: </TD>
    <TD></TD>
    <TD valign="bottom">
    Many shareholders are beneficial owners, meaning they hold their
    shares in &#147;street name&#148; through a stockbroker, bank or
    other nominee. As summarized below, there are some distinctions
    between shares held of record and those owned beneficially.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    <I>Shareholder of Record.</I>&#160;&#160;For shares registered
    directly in your name with the Company&#146;s transfer agent,
    you are considered the shareholder of record and we are sending
    this Proxy Statement and related materials directly to you. As a
    shareholder of record, you have the right to vote in person at
    the Annual Meeting or you may grant your proxy directly to the
    Board&#146;s designees by completing, signing and returning the
    enclosed proxy card, or transmitting your voting instructions
    over the Internet or by phone.</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    <I>Beneficial Owner.</I>&#160;&#160;For shares held in
    &#147;street name,&#148; you are considered the beneficial owner
    and this Proxy Statement and related materials are being
    forwarded to you by your broker or other nominee, who is the
    shareholder of record. As the beneficial owner, you have the
    right to direct your broker or other nominee on how to vote your
    shares. Your broker or nominee will provide you with information
    on the procedures you must follow to instruct them how to vote
    your shares or how to revoke previously given voting
    instructions.</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    <B>Q: </B></TD>
    <TD></TD>
    <TD valign="bottom">
    <B>If my shares are held in &#147;street name&#148; by my
    broker, will my broker vote my shares for me?</B></TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    A: </TD>
    <TD></TD>
    <TD valign="bottom">
    Your broker will vote your shares in the manner you instruct and
    you should follow the voting instructions provided to you by
    your broker. However, if you do not provide voting instructions
    to your broker, it may vote your shares in its discretion on
    certain &#147;routine&#148; matters. The ratification of the
    appointment of Plante&#160;&#038; </TD>
</TR>
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    <BR>
    3
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    Moran as our independent registered public accounting firm for
    the 2011 fiscal year is considered routine, and if you do not
    submit voting instructions, your broker may choose, in its
    discretion, to vote or not vote your shares on the ratification.
    None of the other matters to be voted on at the Annual Meeting
    are routine, and your broker may not vote your shares on those
    matters without your instructions.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    <B>Q: </B></TD>
    <TD></TD>
    <TD valign="bottom">
    <B>May I revoke my proxy or change my vote after I have mailed a
    proxy card or voted electronically over the Internet or by
    telephone?</B></TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    A: </TD>
    <TD></TD>
    <TD valign="bottom">
    Yes. You can change your vote at any time before your proxy is
    voted at the Annual Meeting. If you are the record holder of the
    shares, you can do this in three ways:</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    &#149;&#160;send a written statement to our Secretary stating
    that you would like to revoke your proxy, which must be received
    prior to the Annual Meeting;</DIV>
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    &#149;&#160;send a newly signed and later-dated proxy card,
    which must be received prior to the Annual Meeting, or submit
    later-dated electronic voting instructions over the Internet or
    by telephone no later than 11:59&#160;p.m. Eastern Daylight
    Savings Time on April&#160;25, 2011;&#160;or</DIV>
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    &#149;&#160;attend the Annual Meeting <U>and</U> revoke your
    proxy in person prior to the start of voting at the Annual
    Meeting or vote in person at the Annual Meeting <B>(attending
    the Annual Meeting will not, by itself, revoke your proxy or a
    prior Internet or telephonic vote)</B>.</DIV>
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    If you are a beneficial owner, you may change your vote by
    submitting new voting instructions to your broker or nominee,
    and you should review the instructions provided by your broker
    or nominee to determine the procedures you must follow.</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    <B>Q: </B></TD>
    <TD></TD>
    <TD valign="bottom">
    <B>Can I vote my shares in person at the Annual Meeting?</B></TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    A: </TD>
    <TD></TD>
    <TD valign="bottom">
    You may vote shares held of record in person at the Annual
    Meeting. If you choose to attend, please bring the enclosed
    proxy card and a form of identification. If you are a beneficial
    owner and you wish to attend the Annual Meeting and vote in
    person, you will need a signed proxy from your broker or other
    nominee giving you the right to vote your shares at the Annual
    Meeting and a form of identification.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    <B>Q: </B></TD>
    <TD></TD>
    <TD valign="bottom">
    <B>How will my shares be voted if I submit a proxy without
    voting instructions?</B></TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    A: </TD>
    <TD></TD>
    <TD valign="bottom">
    If you submit a proxy and do not indicate how you want your
    shares voted, your proxy will be voted on the matters presented
    as recommended by your Board. The Board&#146;s recommendations
    are set forth in this Proxy Statement.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    <B>Q: </B></TD>
    <TD></TD>
    <TD valign="bottom">
    <B>Who can answer my questions about how I can submit or revoke
    my proxy or vote by phone or via the Internet?</B></TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    A: </TD>
    <TD></TD>
    <TD valign="bottom">
    If you are a record shareholder and have more questions about
    how to submit your proxy, please call James F. Laird, the
    Company&#146;s Secretary, at
    <FONT style="white-space: nowrap">(614)&#160;255-3353.</FONT>
    If you are a beneficial owner, you should contact your broker or
    other nominee to determine the procedures your must follow.</TD>
</TR>

</TABLE>

<A name='L42120102'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">THE
    ANNUAL MEETING</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Annual Meeting will be held at 325 John H. McConnell Blvd.,
    Columbus, Ohio 43215, on Tuesday, April&#160;26, 2011, at
    12:00&#160;p.m. Eastern Daylight Saving Time. The purposes of
    the Annual Meeting are (i)&#160;to elect seven directors to
    serve for one-year terms; (ii)&#160;to ratify the appointment of
    Plante&#160;&#038; Moran as the Company&#146;s independent
    registered public accounting firm; (iii)&#160;to approve and
    adopt the Company&#146;s 2011 Equity and Cash Incentive Plan,
    (iv)&#160;to approve, on a non-binding advisory basis, the
    Company&#146;s Named Executive Officer compensation, and
    (v)&#160;to approve, on a non-binding advisory basis, the
    frequency of shareholder advisory votes on the Company&#146;s
    Named Executive Officer compensation. The Company is currently
    not aware of any other matters that will come before the Annual
    Meeting.
</DIV>
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    <BR>
    4
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<A name='L42120103'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">PROCEDURAL
    MATTERS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Record
    Date</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Only shareholders of record at the close of business on
    March&#160;1, 2011, the record date for the Annual Meeting, will
    be entitled to vote at the Annual Meeting. As of the record
    date, there were 2,902,253 of common shares outstanding and
    entitled to vote at the Annual Meeting.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Proxy</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Your shares will be voted at the Annual Meeting as you direct on
    your signed proxy card or in your telephonic or Internet voting
    instructions. If you submit a proxy without voting instructions,
    it will be voted as recommended by your Board. These
    recommendations are set forth in this Proxy Statement. The duly
    appointed proxy holders will vote in their discretion on any
    other matters that may properly come before the Annual Meeting.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Voting</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Each outstanding share may cast one vote on each separate matter
    of business properly brought before the Annual Meeting. If you
    hold shares in street name, the Board encourages you to instruct
    your broker or other nominee as to how to vote your shares.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    A shareholder voting in the election of directors may cumulate
    such shareholder&#146;s votes and give one candidate a number of
    votes equal to (i)&#160;the number of directors to be elected
    (seven), multiplied by (ii)&#160;the number of shares held by
    the shareholder, or may distribute such shareholder&#146;s total
    votes among as many candidates as the shareholder may select.
    However, no shareholder will be entitled to cumulate votes
    unless the candidate&#146;s name has been placed in nomination
    prior to voting and a shareholder has given us notice at least
    48&#160;hours prior to the Annual Meeting of the intention to
    cumulate votes. The proxies the Board is soliciting include the
    discretionary authority to cumulate votes. If cumulative voting
    occurs at the Annual Meeting, the proxies intend to vote the
    shares represented by proxy in a manner to elect as many of the
    seven director nominees as possible. Cumulative voting only
    applies to the election of directors. On any other matter each
    share has one vote.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><I>Director elections.</I></B>&#160;&#160;The affirmative
    vote of the holders of a plurality of the shares represented at
    the Annual Meeting, in person or by proxy, and entitled to vote
    is required for the election of directors, and the seven
    nominees receiving the most votes will be elected.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><I>Ratification of selection of independent registered public
    accounting firm.</I></B>&#160;&#160;The affirmative vote of a
    majority of the shares represented at the Annual Meeting, in
    person or by proxy, and entitled to vote on the proposal is
    required to ratify the selection of Plante&#160;&#038; Moran as
    the Company&#146;s independent registered public accounting firm
    for fiscal 2011.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><I>Approval of the Company&#146;s 2011 Equity and Cash
    Incentive Plan.</I></B>&#160;&#160;The affirmative vote of
    holders of a majority of the shares represented at the Annual
    Meeting, in person or by proxy, and entitled to vote on the
    proposal is required to approve the 2011 Equity and Cash
    Incentive Plan.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><I>Advisory approval of named executive officer
    compensation.</I></B>&#160;&#160;The affirmative vote of a
    majority of the shares represented at the Annual Meeting, in
    person or by proxy, and entitled to vote on the proposal is
    required for shareholder advisory approval of the compensation
    of the Company&#146;s named executive officers.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><I>Recommendation of frequency of shareholder votes on named
    executive officer compensation.</I></B>&#160;&#160;Shareholders
    may vote in favor of holding the vote on named executive officer
    compensation every year, every two years or every three years,
    or they may abstain. Although the frequency receiving the
    affirmative vote of the holders of a plurality of the shares
    present, in person or by proxy, and entitled to vote would be
    deemed the shareholder recommendation, the Board will take the
    results of the voting into account in determining how frequently
    to hold shareholder advisory votes on named executive officer
    compensation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><I>Effect of broker non-votes and
    abstentions.</I></B>&#160;&#160;Brokers who hold common shares
    in street name may, under the applicable regulations of the
    Securities and Exchange Commission (the &#147;SEC&#148;) and the
    rules of exchanges and other self-regulatory organizations of
    which the brokers are members, sign and submit proxies for
    common shares
</DIV>
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    <BR>
    5
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    of the Company and may vote such common shares on certain
    &#147;routine&#148; matters. The ratification of
    Plante&#160;&#038; Moran is considered to be routine. Brokers
    may not vote common shares on other matters without specific
    instruction from the customer who owns the shares. Proxies that
    are signed and submitted by brokers that have not been voted on
    certain matters are referred to as &#147;broker non-votes.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Under applicable stock exchange rules, brokers are not permitted
    to vote without instruction in the election of directors or on
    the approval of the 2011 Equity and Cash Incentive Plan. In
    addition, SEC regulations prohibit brokers from voting without
    customer instruction on the approval of named executive officer
    compensation and on the frequency of shareholder votes on named
    executive officer compensation. Neither broker non-votes nor
    abstentions will have any effect on the election of directors or
    the recommendation of a frequency for the advisory vote on
    executive compensation. Abstentions will have the same effect as
    a vote against the ratification of the selection of independent
    registered public accounting firm, the 2011 Equity and Cash
    Incentive Plan and the advisory approval of named executive
    officer compensation; however, broker non-votes will have no
    effect on those proposals.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Quorum</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Company can conduct business at the Annual Meeting only if a
    quorum, consisting of at least the holders of a majority of our
    outstanding shares entitled to vote, is present, either in
    person or by proxy. Abstentions and broker non-votes will be
    counted toward establishing a quorum. In the event that a quorum
    is not present at the time the Annual Meeting is convened, a
    majority of the shares represented in person or by proxy may
    adjourn the Annual Meeting to a later date and time, without
    notice other than announcement at the Annual Meeting. At any
    such adjournment of the Annual Meeting at which a quorum is
    present, any business may be transacted which might have been
    transacted at the Annual Meeting as originally called.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Solicitation;
    Expenses</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Company will pay all expenses of the Board&#146;s
    solicitation of the proxies for the Annual Meeting, including
    the cost of preparing, assembling and mailing the Notice, form
    of proxy and Proxy Statement, postage for return envelopes, the
    handling and expenses for tabulation of proxies received, and
    charges of brokerage houses and other institutions, nominees or
    fiduciaries for forwarding such documents to beneficial owners.
    The Company will not pay any electronic access charges
    associated with Internet or telephonic voting incurred by a
    shareholder. We may solicit proxies in person or by telephone,
    facsimile or
    <FONT style="white-space: nowrap">e-mail.</FONT>
    Company officers, directors and employees may also assist with
    solicitation and will receive no additional compensation for
    their services.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    No person is authorized to give any information or to make any
    representation not contained in this Proxy Statement, and you
    should not rely on any such information or representation. This
    Proxy Statement does not constitute the solicitation of a proxy
    in any jurisdiction from any person to whom it is unlawful to
    make such proxy solicitation in such jurisdiction. The delivery
    of this Proxy Statement shall not, under any circumstances,
    imply that there has not been any change in the information set
    forth herein since the date of this Proxy Statement.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Requests
    for Proxy Statement and Annual Report on
    <FONT style="white-space: nowrap">Form&#160;10-K;</FONT>
    Internet Availability</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Company&#146;s Annual Report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    for the year ended December&#160;31, 2010, including audited
    consolidated financial statements, accompanies this Proxy
    Statement but is not a part of the proxy solicitation material.
    The Company is delivering a single copy of this Proxy Statement
    and the
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    to multiple shareholders sharing an address unless the Company
    has received instructions from one or more of the shareholders
    to the contrary. The Company will promptly deliver a separate
    copy of the Proxy Statement
    <FONT style="white-space: nowrap">and/or</FONT>
    <FONT style="white-space: nowrap">Form&#160;10-K,</FONT>
    at no charge, upon receipt of a written or oral request by a
    record shareholder at a shared address to which a single copy of
    the documents was delivered. Written or oral requests for a
    separate copy of the documents, or to provide instructions for
    delivery of documents in the future, may be directed to James F.
    Laird, Secretary of the Company, at 325 John H. McConnell
    Boulevard, Suite&#160;200, Columbus, Ohio 43215 or by phone at
    <FONT style="white-space: nowrap">(614)&#160;255-3333.</FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Additionally, this Proxy Statement and our Annual Report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    are available on the internet free of charge at:
    <U><FONT style="white-space: nowrap">http://www.diamond-hill.com/pdf/imr.proxy-annual-report-final-print.pdf</FONT></U>.
</DIV>
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<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    6
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#L42120tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='L42120104'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">SECURITY
    OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The following table sets forth beneficial ownership of our
    common shares as of the record date, March&#160;1, 2011, by
    (a)&#160;all persons known by the Company to own beneficially
    five percent or more of the outstanding shares, (b)&#160;each
    director and director nominee, (c)&#160;the Chief Executive
    Officer and Chief Financial Officer (each, a &#147;Named
    Executive Officer&#148;), and (d)&#160;all executive officers
    and directors as a group. Although not required, the Company has
    also decided to voluntarily disclose all common shares
    beneficially owned by all other employees of the Company
    excluding the Named Executive Officers. Unless otherwise
    indicated, the named persons exercise sole voting and
    dispositive power over the shares listed. None of the named
    persons have any outstanding options.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="73%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="13%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Amount and Nature<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>of Beneficial<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Percent of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Name of Beneficial Owner</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Ownership</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Class(1)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Lawrence E. Baumgartner
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    1,964
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    *
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    R. H. Dillon
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    205,994
</TD>
<TD nowrap align="left" valign="top">
    (2)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    7.1
</TD>
<TD nowrap align="left" valign="top">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    James F. Laird
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    72,474
</TD>
<TD nowrap align="left" valign="top">
    (2)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    2.5
</TD>
<TD nowrap align="left" valign="top">
    %
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    David P. Lauer
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    5,985
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    *
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    David R. Meuse
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    31,505
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    1.1
</TD>
<TD nowrap align="left" valign="top">
    %
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Peter J. Moran
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    6,800
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    *
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Diane D. Reynolds
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    3,215
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    *
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Donald B. Shackelford
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    7,505
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    *
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Frances A. Skinner
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    735
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    *
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Directors, nominees, and executive officers as a group
    (9&#160;persons)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    336,177
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    11.6
</TD>
<TD nowrap align="left" valign="top">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    All other employees of the Company (74&#160;persons)(3)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    549,066
</TD>
<TD nowrap align="left" valign="top">
    (4)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    18.9
</TD>
<TD nowrap align="left" valign="top">
    %
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>5% Beneficial Owners</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Wells Fargo&#160;&#038; Company(5)<BR>
    One North Jefferson Avenue<BR>
    St.&#160;Louis, MO 63103
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    218,117
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    7.5
</TD>
<TD nowrap align="left" valign="top">
    %
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    BlackRock, Inc.(6)<BR>
    40 East 52nd Street<BR>
    New York, NY 10022
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    154,027
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    5.3
</TD>
<TD nowrap align="left" valign="top">
    %
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    (1) </TD>
    <TD></TD>
    <TD valign="bottom">
    Beneficial ownership of less than one percent is represented by
    an asterisk (*). The percent of class is based upon (a)&#160;the
    number of shares beneficially owned by the named person, divided
    by (b)&#160;the total number of shares which are issued and
    outstanding as of March&#160;1, 2011 (2,902,253&#160;shares).</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (2) </TD>
    <TD></TD>
    <TD valign="bottom">
    Includes 1,798&#160;shares for Mr.&#160;Dillon and
    2,479&#160;shares for Mr.&#160;Laird, which are held in the
    Company&#146;s 401(k) plan, over which the Trustees of the
    401(k) Plan possess the voting power and which are subject to
    restrictions on the power to dispose of these shares.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (3) </TD>
    <TD></TD>
    <TD valign="bottom">
    Includes all employees of Diamond Hill Investment Group, Inc.
    and its subsidiaries as of March&#160;1, 2011, excluding the
    executive officers named in the table above. Each employee has
    sole voting power. Certain shares are subject to restrictions on
    the power to dispose of the shares. The employees do not
    constitute a Group as defined by
    <FONT style="white-space: nowrap">Rule&#160;13d-1</FONT>
    of the Exchange Act.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (4) </TD>
    <TD></TD>
    <TD valign="bottom">
    Includes 58,152&#160;shares held in the Company&#146;s 401(k)
    plan, over which the Trustees of the 401(k) Plan possess the
    voting power and which are subject to restrictions on the power
    to dispose of these shares.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (5) </TD>
    <TD></TD>
    <TD valign="bottom">
    Based on information contained in a Schedule&#160;13G/A filed
    with the Securities and Exchange Commission (&#147;SEC&#148;) on
    January&#160;20, 2011, by Wells Fargo&#160;&#038; Company. In
    this Schedule 13G/A, Wells Fargo&#160;&#038; Company reported
    sole voting power and sole dispositive power over
    218,117&#160;shares, and Wells Fargo Advisors Financial Network,
    LLC reported sole voting power and sole dispositive power over
    212,852&#160;shares.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (6) </TD>
    <TD></TD>
    <TD valign="bottom">
    Based on information contained in a Schedule&#160;13G filed with
    the SEC on February&#160;4, 2011, by BlackRock, Inc. In this
    Schedule&#160;13G, BlackRock, Inc. reported sole voting power
    and sole dispositive power over 154,027&#160;shares on behalf of
    the following subsidiaries: BlackRock Institutional
    Trust&#160;Company, N.A., BlackRock Fund&#160;Advisors,
    BlackRock Advisors, LLC, and BlackRock Investment Management,
    LLC.</TD>
</TR>

</TABLE>
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    <BR>
    7
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    <B><FONT style="font-family: 'Times New Roman', Times">SECTION&#160;16(a)
    BENEFICIAL OWNERSHIP REPORTING COMPLIANCE</FONT></B>
</DIV>
</A>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Section&#160;16(a) of the Exchange Act requires executive
    officers and directors, and persons who beneficially own more
    than ten percent of the Company&#146;s shares, to file with the
    Securities and Exchange Commission (&#147;SEC&#148;) initial
    reports of ownership on Form&#160;3 and reports of changes in
    ownership on Form&#160;4 and Form&#160;5. Executive officers,
    directors and persons who beneficially own more than ten percent
    of the Company&#146;s securities are required by SEC regulations
    to furnish to the Company copies of all Section&#160;16(a)
    reports they file with the SEC. Based solely upon a review of
    the Forms&#160;3, 4 and 5 furnished to the Company by these
    persons and statements made by these persons that no other
    Section&#160;16(a) reports were required to be filed by them,
    each director, other than Mr.&#160;Dillon, filed one late
    Form&#160;4. All of the late filings related to a stock grant
    received by the non-employee directors on March&#160;15, 2010,
    and each of the non-employee directors disclosed the grant on a
    Form&#160;5 filed on January&#160;5, 2011. To the Company&#146;s
    knowledge, there were no other late or unfiled reports during
    the year ended December&#160;31, 2010.
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    <B><FONT style="font-family: 'Times New Roman', Times">PROPOSAL&#160;1&#160;&#151;
    ELECTION OF DIRECTORS</FONT></B>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Board guides the strategic direction of the Company and
    oversees its management. All of the Company&#146;s directors are
    elected annually. Pursuant to the recommendation of the
    Nominating and Governance Committee, the Board has nominated the
    seven nominees listed below, five of whom are incumbents. All
    have been nominated by the Board to hold office until the next
    annual meeting of shareholders and until their respective
    successors are elected and qualified.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    David R. Meuse and Diane D. Reynolds, who have served as
    directors of the Company since 2000 and 2001, respectively, will
    be retiring from the Board at the Annual Meeting and will not
    stand for reelection. The Board, upon recommendation of the
    Nominating and Governance Committee, has nominated
    Mr.&#160;James F. Laird and Mr.&#160;Peter J. Moran for election
    to the seats being vacated by Mr.&#160;Meuse and
    Ms.&#160;Reynolds. The Board would like to thank Mr.&#160;Meuse
    and Ms.&#160;Reynolds for their dedicated service to the
    Company. Mr.&#160;Laird has been CFO of the Company since 2001
    was recommended for nomination by the CEO and the Chairman.
    Mr.&#160;Moran was recommended for nomination by the CEO and CFO
    who have known Mr.&#160;Moran for approximately six years and
    were impressed with his experience and knowledge of the
    investment management industry.
</DIV>

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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    If any nominee becomes unable or unwilling to serve between the
    date of this proxy statement and the Meeting, proxies will be
    voted <B>FOR </B>the election of a replacement recommended by
    the Nominating and Governance Committee and approved by the
    Board.
</DIV>

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    <B><FONT style="font-family: 'Times New Roman', Times">Director
    Independence</FONT></B>
</DIV>
</A>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Board has determined that, with the exception of
    Mr.&#160;Dillon and director nominee Mr.&#160;Laird, all of the
    current directors and director nominee Mr.&#160;Moran are
    independent under the rules and independence standards of The
    NASDAQ Stock Market (&#147;NASDAQ&#148;), as well as applicable
    SEC requirements. There are no family relationships among the
    directors and executive officers of the Company.
</DIV>

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    <B><FONT style="font-family: 'Times New Roman', Times">The
    Nominees</FONT></B>
</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Board has determined that all of our director nominees are
    qualified to serve as directors of the company. In addition to
    the specific business experience listed below, each of our
    director nominees has the tangible and intangible skills and
    attributes which we believe are required to be an effective
    director of the Company, including experience at senior levels
    in areas of expertise helpful to the company, a willingness and
    commitment to assume the responsibilities required of a director
    of the Company, and the character and integrity we expect of our
    directors. The specific qualifications of each individual
    nominee are set forth under his or her name below.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B>Lawrence E. Baumgartner, CFA</B>, age&#160;52, has been an
    independent director of the Company since 2008, and serves on
    the Compensation Committee and Nominating and Governance
    Committee. Mr.&#160;Baumgartner has been a private investor
    since 2004. He was employed by Banc One Investment Advisors from
    1999 to 2004 most recently serving as Chief Investment Officer
    of equity securities from 2003 to 2004, where he was responsible
    for overseeing the management of over $37&#160;billion in
    assets. He has over 25&#160;years of investment management
    experience.
</DIV>
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    <BR>
    8
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Mr.&#160;Baumgartner also serves on the Investment Committee of
    the Columbus Foundation and the Columbus Zoo and Aquarium
    Endowment.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Mr.&#160;Baumgartner received his BS in Business Administration
    from The Ohio State University and his MBA from Ohio University.
    Mr.&#160;Baumgartner also holds the Chartered Financial Analyst
    designation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Board believes that Mr.&#160;Baumgartner&#146;s
    qualifications to serve on the Board include his substantial
    experience in investment management, including his experience as
    a chief investment officer of a large investment management firm.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B>R.&#160;H. Dillon, CFA</B>, age&#160;54, has been a director
    of the Company since 2001, and the President, CEO, and Chief
    Investment Officer of the Company since 2000. Prior to joining
    the firm in 2000, Mr.&#160;Dillon had been employed as a
    portfolio manager by Loomis, Sayles&#160;&#038; Company since
    1997. Mr.&#160;Dillon has over 30&#160;years of experience in
    the investment management industry.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Mr.&#160;Dillon received his BS and MA from The Ohio State
    University and his MBA from University of Dayton.
    Mr.&#160;Dillon also holds the Chartered Financial Analyst
    designation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Board believes that Mr.&#160;Dillon&#146;s qualifications to
    serve on the Board include his 10&#160;years of experience as
    CEO and Chief Investment Officer with the Company, his in depth
    knowledge and involvement in the Company&#146;s operations and
    his more than 30&#160;years of experience as an investment
    professional.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B>James F. Laird, CPA</B>, age&#160;54, is a nominee for
    election as a director of the Company and has been the Chief
    Financial Officer of the Company and President of Diamond Hill
    Funds since 2001. Prior to joining the firm in 2001,
    Mr.&#160;Laird had been employed as a Senior Vice President for
    Villanova Capital since 1999 and Vice President and General
    Manager for Nationwide Advisory Services, Inc. from 1995 to
    1999. Mr.&#160;Laird has over 24&#160;years of experience in the
    investment management industry.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Mr.&#160;Laird also serves on the board of Ohio Dominican
    University and is chairman of the Audit Committee.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Mr.&#160;Laird received his BS in Accounting from The Ohio State
    University, is a Certified Public Accountant, and holds the
    following FINRA securities licenses: Series&#160;7, 24, and 63.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Board believes that Mr.&#160;Laird&#146;s qualifications to
    serve on the Board include his 10&#160;years of experience as
    CFO with the Company, his in depth knowledge and involvement in
    the Company&#146;s operations and his more than 24&#160;years of
    experience in the financial, operational, administrative, and
    distribution aspects of the investment management industry.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B>David P. Lauer, CPA</B>, age&#160;68, has been an independent
    director of the Company since 2002, and is the chairman of the
    Audit Committee. Mr.&#160;Lauer retired from Bank One, Columbus
    in 2001, where he had served as President and Chief Operating
    Officer from 1997 to 2001. Mr.&#160;Lauer is also a retired
    partner of Deloitte&#160;&#038; Touche LLP, an international
    accounting and consulting firm, where he was Managing Partner of
    the Columbus Ohio office from 1989 to 1997. Mr.&#160;Lauer has
    over 40&#160;years of experience in accounting and financial
    matters.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Mr.&#160;Lauer is a director of Huntington Bancshares, a
    multi-state diversified financial holding company, and serves as
    chairman of the Audit Committee and member of the Capital
    Planning Committee. He is also a director of R.G. Barry
    Corporation, a retail developer and marketer of accessory
    footwear, where he serves on the Audit, Compensation, and
    Nominating and Governance Committees. Mr.&#160;Lauer also serves
    on the board of W. W. Williams Company, Evans Corporation, and
    On-Line Computer Library Center, Inc, all of which are private
    or
    <FONT style="white-space: nowrap">non-for-profit</FONT>
    organizations. Mr.&#160;Lauer also served as a director of
    Wendy&#146;s International from 2000 to 2008 and Tim
    Horton&#146;s Inc. from 2006 to 2007.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Mr.&#160;Lauer has an undergraduate degree from Capital
    University and a masters in accountancy from Ohio University.
    Mr.&#160;Lauer is also a Certified Public Accountant.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Board believes that Mr.&#160;Lauer&#146;s qualifications to
    serve on the Board include his substantial experience in
    accounting and financial matters, including his significant
    experience as a certified public accountant, his prior role as
    President and Chief Operating Officer of Bank One-Columbus, and
    his experience as a director of other public companies.
</DIV>
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    <BR>
    9
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B>Peter J. Moran</B>, age&#160;50, is a nominee for election as
    an independent director of the Company. Mr.&#160;Moran has been
    a managing partner with DundeeWealth US, LP, an institutional
    investment management firm, and President of DundeeWealth Funds,
    since 2008. Prior to joining DundeeWealth US, LP, he was a
    founder and managing partner with BHR Fund&#160;Advisors, LP
    from 2006 until its acquisition by DundeeWealth in 2008. From
    2005 to 2006 he was President of Constellation Funds Group, LP.
    Prior to Constellation, he was employed at Turner Investment
    Partners as Managing Director of mutual fund, investment-only
    defined contribution and
    <FONT style="white-space: nowrap">sub-advisory</FONT>
    distribution. He has held several senior positions with leading
    investment management firms including J.P.&#160;Morgan
    Investment Management, Montgomery Asset Management and
    PIMCO/Pacific Life. Mr.&#160;Moran has over 25&#160;years of
    experience in the investment management industry.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Mr.&#160;Moran received his BA in Economics from University of
    Richmond. Mr.&#160;Moran also holds the Chartered Financial
    Consultant and Chartered Life Underwriter designations and is a
    member of the Executive Committee of the Mutual
    Fund&#160;Education Alliance.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Board believes that Mr.&#160;Moran&#146;s qualifications to
    serve on the Board include his significant experience in the
    global investment management industry, including specific
    experience in the sales and distribution of investment
    management products.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B>Donald B. Shackelford</B>, age&#160;78, has been an
    independent director of the Company since 2005, is the chairman
    of the Compensation Committee, and serves on the Nominating and
    Governance Committee. Mr.&#160;Shackelford retired from Fifth
    Third Bank, Central Ohio (successor to State Savings Bank) in
    2008, where he had served as Chairman from 1998 to 2008. Prior
    to joining Fifth Third Bank, Mr.&#160;Shackelford served as
    Chairman and CEO of State Savings Bank for 25&#160;years, until
    its acquisition by Fifth Third Bank in 1998.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Mr.&#160;Shackelford served as a director of The Progressive
    Corporation, a national property and casualty insurance company
    from 1976 to 2010. Mr.&#160;Shackelford also serves on the board
    of Heads&#160;&#038; Threads International, LLC, and Lowell
    Group, all of which are private or
    <FONT style="white-space: nowrap">non-for-profit</FONT>
    organizations. Mr.&#160;Shackelford also served as a director of
    Limited Brands, Inc. from 1976 to 2005.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Mr.&#160;Shackelford received his BA from Denison University and
    his MBA from Harvard Business School.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Board believes that Mr.&#160;Shackelford&#146;s
    qualifications to serve on the Board include his substantial
    experience in banking and financial services and his experience
    as a director of another public company.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B>Frances A. Skinner, CFA, CPA</B>, age&#160;46, has been an
    independent director of the Company since 2010, and serves on
    the Audit Committee and Compensation Committee. Ms.&#160;Skinner
    has been a partner with AUM Partners, LLC, a management
    consulting firm specializing in the investment management
    industry, since 2009. Prior to joining AUM Partners, she was a
    principal with Focus Consulting Group, Inc. from 2003 to 2009.
    Ms.&#160;Skinner also spent 16&#160;years at Allstate
    Investments, LLC, where she worked on developing compensation
    and incentive programs for investment professionals.
    Ms.&#160;Skinner has over 24&#160;years of experience in the
    areas of investment management, finance and consulting. She is a
    co-author of the book <I>High Performing Investment Teams
    </I>(Wiley, 2006).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Ms.&#160;Skinner received her BA from St. Xavier University and
    her MBA from the University of Illinois &#151;&#160;Chicago.
    Ms.&#160;Skinner also holds the Chartered Financial Analyst
    designation and is a Certified Public Accountant.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Board believes that Ms.&#160;Skinner&#146;s qualifications
    to serve on the Board include her significant experience in the
    global investment management industry and experience in
    developing and consulting on matters of leadership, teamwork,
    performance evaluation, and compensation practices.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B>THE BOARD UNANIMOUSLY RECOMMENDS THAT YOU VOTE FOR THE
    ELECTION OF LAWRENCE E. BAUMGARTNER, R. H. DILLON, JAMES F.
    LAIRD, DAVID P. LAUER, PETER J. MORAN, DONALD B. SHACKELFORD,
    AND FRANCES A. SKINNER AS DIRECTORS OF THE COMPANY.</B>
</DIV>
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    <BR>
    10
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<A name='L42120109'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">THE BOARD
    OF DIRECTORS AND COMMITTEES</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Board held a total of five meetings during the year ended
    December&#160;31, 2010. Each director attended 100% of the
    combined total number of meetings of the Board and Board
    committees of which he or she was a member. Consistent with the
    Company&#146;s Corporate Governance Guidelines, the independent
    directors met in executive session at all five of the Board
    meetings in 2010. Our Corporate Governance Guidelines provide
    that all directors are expected to attend each annual meeting of
    shareholders. All of our then incumbent directors attended our
    2010 Annual Meeting of Shareholders.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Corporate
    Governance</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Board has three standing committees: the Audit Committee,
    the Compensation Committee, and the Nominating and Governance
    Committee. The Board has adopted a written charter for each
    Committee. Current copies of each committee charter and our
    Corporate Governance Guidelines are available at our Web site,
    <U>www.diamond-hill.com</U>, by clicking the
    &#147;Investor&#160;&#038; Media Relations&#148; tab followed by
    the &#147;Investor Relations&#148; tab.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Pursuant to rules promulgated under the Sarbanes-Oxley Act, the
    Board has adopted a Code of Ethics for Principal Executive and
    Senior Financial Officers. This code is intended to deter
    wrongdoing and promote honest and ethical conduct, full, timely
    and accurate reporting, compliance with laws, and accountability
    for adherence to the code, including internal reporting of code
    violations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Company also has a Code of Business Conduct and Ethics that
    is applicable to all of our employees and directors, a copy of
    which is filed as an exhibit to our
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    filed with the SEC. It is the Company&#146;s policy to require
    all employees to participate annually in continuing education
    and training relating to the Code of Business Conduct and Ethics.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Audit
    Committee</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Mr.&#160;Lauer, Ms.&#160;Reynolds and Ms.&#160;Skinner serve on
    the Audit Committee, which met four times during 2010. The Board
    has determined that each Committee member meets the independence
    and financial literacy rules and standards of the SEC and
    NASDAQ. The Board also has concluded that Mr.&#160;Lauer, the
    Chairman of the Audit Committee, and Ms.&#160;Skinner meet the
    criteria for an audit committee financial expert as established
    by the SEC.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The primary purpose of the Audit Committee is to assist the
    Board in fulfilling its oversight responsibilities with respect
    to (1)&#160;the retention of our independent registered public
    accounting firm, including appointing and overseeing the terms
    of its engagement and its performance, qualifications and
    independence, and (2)&#160;the integrity of our financial
    statements, other financial information provided to
    shareholders, and our internal control structure. The Audit
    Committee also reviews all related person transactions for
    potential conflicts of interest situations on an ongoing basis
    and all such transactions must be approved by the Audit
    Committee. Additional information on the approval of related
    person transactions is available under the heading &#147;Certain
    Relationships and Related Person Transactions&#148; below. The
    report of the Audit Committee appears below the heading
    &#147;REPORT OF THE AUDIT COMMITTEE.&#148;
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Compensation
    Committee</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Mr.&#160;Baumgartner, Mr.&#160;Shackelford and Ms.&#160;Skinner
    serve on the Compensation Committee, which met four times during
    2010. Mr.&#160;Shackelford serves as the Chairman of the
    Compensation Committee. The Board of Directors has determined
    that each of these members meets the independence criteria of
    NASDAQ. No member of the Compensation Committee is or has been
    an officer or employee of the Company or has had any
    relationship requiring disclosure by us under Item&#160;404 of
    SEC
    <FONT style="white-space: nowrap">Regulation&#160;S-K.</FONT>
    In addition, no member of the Compensation Committee or Board is
    employed by a company whose board of directors includes a member
    of our management.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The primary purpose of the Compensation Committee is to review
    and approve the Company&#146;s executive compensation policies,
    evaluate the performance of the Company&#146;s executive
    officers in light of corporate goals and objectives approved by
    the Compensation Committee, approve the annual salary, bonus,
    stock grants and other benefits, direct and indirect, of our
    executive officers and other senior employees, make
    recommendations to the full Board with respect to
    incentive-compensation plans and equity-based plans and
    determine director and committee
</DIV>
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    <BR>
    11
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#L42120tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    member/chair compensation for non-employee directors. The
    Compensation Committee also administers the Company&#146;s
    equity and other incentive plans. A description of the
    Company&#146;s processes and procedures for the consideration
    and determination of executive officer compensation are
    discussed under the heading &#147;Compensation Discussion and
    Analysis&#148; below.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Nominating
    and Governance Committee</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Messrs.&#160;Baumgartner, Meuse and Shackelford serve on the
    Nominating and Governance Committee, which met four times during
    2010. Mr.&#160;Meuse serves as the chairman. The Board has
    determined that all committee members meet the independence
    criteria of NASDAQ.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The primary purpose of the Nominating and Governance Committee
    is to maintain and cultivate the effectiveness of the Board and
    oversee the Company&#146;s governance policies. Among the
    committee&#146;s responsibilities are Board and committee
    composition, director qualifications, orientation and education,
    and Board evaluations. Members identify, evaluate, and nominate
    Board candidates; review compliance with director stock
    ownership guidelines; and oversee procedures regarding
    shareholder nominations and other communications to the Board.
    In addition, they are responsible for monitoring compliance with
    and recommending any changes to the company&#146;s Corporate
    Governance Guidelines. Additional information regarding the
    committee&#146;s activities appears under the heading
    &#147;Nominations and Corporate Governance.&#148;
</DIV>

<A name='L42120110'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Compensation
    of Directors</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Compensation Committee is responsible for periodically
    reviewing and recommending to the Board the compensation of
    independent directors. The following table sets forth
    information regarding the compensation earned by, or paid to,
    directors who served on our Board in 2010. Mr.&#160;Dillon, who
    is also President and CEO, does not receive separate
    directors&#146; fees for his service and has been omitted from
    this table.
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">2010&#160;Director
    Compensation(1)</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="69%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="4%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="3%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="3%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Fees Earned<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>or Paid<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Stock<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Name</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>in Cash</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Awards(2)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Total</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Lawrence E. Baumgartner
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    17,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    30,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    47,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    David P. Lauer
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    19,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    30,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    49,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    David R. Meuse
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    29,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    30,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    59,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Diane D. Reynolds
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    16,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    30,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    46,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Donald B. Shackelford
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    22,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    30,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    52,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Frances A. Skinner(3)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    9,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    15,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    24,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Dr.&#160;James Mathias(4)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    6,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    15,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    21,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    (1) </TD>
    <TD></TD>
    <TD valign="bottom">
    Includes only those columns relating to compensation awarded to,
    earned by, or paid to non-employee directors for their services
    in 2010. All other columns have been omitted.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (2) </TD>
    <TD></TD>
    <TD valign="bottom">
    Represents the full grant-date fair value computed by
    multiplying the total shares granted by the closing price of the
    shares on the grant date. All shares were fully vested on the
    grant date, and therefore, this amount also reflects the expense
    incurred and recognized in the Company&#146;s financial
    statements. On March&#160;15, 2010, each director received a
    grant of 428&#160;shares for service as a non-employee director,
    which had a value of $30,000 based on the market price of the
    shares on that date. These shares were granted under the 2005
    Employee and Director Equity Incentive Plan. For information on
    the expensing of these awards, please see note&#160;5 to the
    consolidated financial statements contained in the
    Company&#146;s
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    for the year ended December&#160;31, 2010.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (3) </TD>
    <TD></TD>
    <TD valign="bottom">
    Ms.&#160;Skinner was elected to the Board at the Annual Meeting
    on May&#160;4, 2010. Her compensation represents service after
    her election to the Board.</TD>
</TR>

</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    12
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#L42120tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    (4) </TD>
    <TD></TD>
    <TD valign="bottom">
    Dr.&#160;James Mathias did not stand for re-election to the
    Board at the Annual Shareholder meeting on May&#160;4, 2010. His
    compensation represents his service prior to the 2010 Annual
    Meeting.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Fees and
    Other Compensation</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Non-employee directors receive the following:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    An annual retainer of $30,000, paid in Company shares;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    An annual retainer of $10,000 for the chairman of the Board
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    An annual retainer of $5,000 for the chairs of each Committee;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    A fee of $2,000 for each board meeting attended;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    A fee of $1,000 for each committee meeting attended;&#160;and
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Ownership
    and Retention Guidelines</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Effective February&#160;25, 2010, each non-employee director is
    required to hold and retain 100% of the shares of our common
    stock, granted to them for as compensation, for his or her
    entire term of service on the Board. They may not sell any of
    the shares granted to them until they conclude their service as
    a director.
</DIV>

<A name='L42120111'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">NOMINATIONS
    AND CORPORATE GOVERNANCE</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Nominating and Governance Committee has general oversight
    responsibility for assessment and recruitment of new director
    candidates, as well as evaluation of director and board
    performance and oversight of governance matters for the Company.
    The Committee adopted Corporate Governance Guidelines on
    February&#160;25, 2010.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Board
    Leadership and Composition</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We believe separating the roles of Chairman and CEO provides for
    a strong governance and oversight structure. David Meuse has
    served as independent non-executive chairman since 2001 and R.
    H. Dillon has served as CEO since joining the firm in 2000. The
    Chairman approves Board agendas and schedules, chairs all
    executive sessions of the independent directors, acts as liaison
    between the independent directors and management, oversees the
    information distributed in advance of Board meetings, is
    available to the Secretary to discuss and, as necessary, respond
    to shareholder communications to the Board, and calls meetings
    of the independent directors.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Currently six of the seven members of the Board are independent
    under NASDAQ standards. If Mr.&#160;Laird is elected, the Board
    will have five independent directors. In addition, the
    Nominating and Governance Committee, the Audit Committee, and
    the Compensation Committee are all comprised entirely of
    independent directors. Overall, the Company believes that the
    Board structure is designed to foster critical oversight, good
    governance practices, and the interests of the Company and its
    shareholders.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Board&#146;s
    Role in Risk Oversight</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Board&#146;s role in the Company&#146;s risk oversight
    process includes receiving regular reports from members of
    senior management on areas of material risk to the Company,
    including client investment performance, operational, financial,
    legal and regulatory, and strategic risks. The Audit Committee
    is responsible for overseeing risks relating to the
    Company&#146;s accounting matters, financial reporting and legal
    and regulatory compliance. To satisfy these oversight
    responsibilities, the Audit Committee meets regularly with
    management and Plante&#160;&#038; Moran. The Compensation
    Committee is responsible for overseeing risks relating to
    employment policies and the Company&#146;s compensation and
    benefits programs. To satisfy these oversight responsibilities,
    the Compensation Committee meets regularly with management to
    understand the implications of compensation decisions,
    particularly the risks that the Company&#146;s compensation
    policies pose to the Company&#146;s finances and its
    relationship with employees.
</DIV>
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    <BR>
    13
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Planning
    Group</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    During 2009 the Company formed the Planning Group, which is
    comprised of seven associates representing all functional areas
    of the organization. The Planning Group was formed to provide
    additional depth and expertise. The Planning Group collaborates
    and recommends action on various company initiatives and the
    overall direction of the firm. The Planning Group is comprised
    of the following individuals: Chris Bingaman&#160;&#151;
    portfolio management, Chris Welch&#160;&#151; portfolio
    management, Bill Zox&#160;&#151; portfolio management, Rick
    Snowdon&#160;&#151; investment research, Laurie
    Riebel&#160;&#151; client management, James Bishop&#160;&#151;
    business development, and Gary Young&#160;&#151; business
    management. Ric Dillon and Jim Laird intend to continue as CEO
    and CFO, respectively, for the next five years. During that time
    it is likely that their duties will be shared among the members
    of the Planning Group. The Company believes that the Planning
    Group in conjunction with the CEO and CFO is an appropriate and
    effective organizational structure for Diamond Hill.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Director
    Orientation and Continuing Education and Development</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    When a new independent director joins the Board, the Company
    provides a formal orientation program for the purpose of
    providing the new director with an understanding of the
    operations and the financial condition of the Company. In
    addition, each director is expected to maintain the necessary
    level of expertise to perform his or her responsibilities as a
    director. To assist the directors in maintaining such level of
    expertise, the Company may, from time to time, offer continuing
    education programs in addition to briefings during Board
    meetings relating to the competitive and industry environment
    and the Company&#146;s goals and strategies.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Director
    Qualifications and the Nominations Process</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Nominating and Governance Committee believes that the
    nominees presented in this proxy statement would constitute a
    Board with an appropriate level and diversity of experience,
    education, skills, and independence. The Nominating and
    Governance Committee routinely considers the current composition
    of the Board, and whether changes should be made or additional
    directors should be added to the Board.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Nominating and Governance Committee supervises the
    nomination process for directors. It considers the performance,
    independence, diversity, and other characteristics of our
    incumbent directors, including their willingness to serve, and
    any change in their employment or other circumstances in
    considering their renomination each year. In considering
    diversity, the Nominating and Corporate Governance Committee
    considers diversity of background and experience as well as
    gender and other forms of diversity. The Company does not,
    however, have any formal policy regarding diversity in
    identifying nominees for a directorship, but rather it considers
    it among the various factors relevant to any particular nominee.
    In the event that a vacancy exists or it decides to increase the
    size of the Board, the Nominating and Corporate Governance
    Committee identifies, interviews and examines, and make
    recommendations to the Board regarding, appropriate candidates.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Nominating and Governance Committee identifies potential
    candidates principally through suggestions from the
    Company&#146;s directors and senior management. The CEO and
    Board members may also seek candidates through informal
    discussions with third parties. The Company has not historically
    retained search firms to help identify director candidates and
    did not do so in indentifying the nominees this year.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    In evaluating potential candidates, the Nominating and
    Governance Committee considers, among other factors,
    independence from management, experience, expertise, commitment,
    diversity, number of other public company board and related
    committee seats held, potential conflicts of interest, and the
    composition of the Board at the time of the assessment. All
    candidates for nomination must:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    demonstrate strong character and integrity;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    have sufficient time to carry out their duties;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    have experience at senior levels in areas of expertise helpful
    to the Company and consistent with the objective of having a
    diverse and well-rounded Board;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    have the willingness and commitment to assume the
    responsibilities required of a director of the Company.
</TD>
</TR>

</TABLE>
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    <BR>
    14
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    In addition, candidates expected to serve on the Audit Committee
    must meet independence and financial literacy qualifications
    imposed by NASDAQ and by the SEC and other applicable law.
    Candidates expected to serve on the Nominating and Governance
    Committee or the Compensation Committee must meet independence
    qualifications set out by NASDAQ, and members of the
    Compensation Committee may also be required to meet additional
    independence tests. The evaluation process of potential
    candidates also includes personal interviews, and discussions
    with appropriate references. Once the Nominating and Governance
    Committee has selected a candidate, it recommends the candidate
    to the full Board for election if a vacancy occurs or is created
    by an increase in the size of the Board during the course of the
    year, or for nomination if the director is to be first elected
    by shareholders. All directors serve for one-year terms and must
    stand for re-election annually.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Board does not currently have any specific policies
    regarding the consideration of director candidates recommended
    by shareholders and will consider shareholder recommendations
    for directors using the process and criteria set forth above.
    The Nominating and Governance Committee will direct the
    Company&#146;s director nomination process. Further, the
    Nominating and Governance Committee may, in its discretion,
    adopt policies in the future regarding the consideration of
    director candidates recommended by shareholders. Shareholder
    recommendations for Board candidates must be directed in writing
    to the Company at 325 John H. McConnell Boulevard,
    Suite&#160;200, Columbus, Ohio 43215, Attention: Secretary, and
    must include the candidate&#146;s name, home and business
    contact information, detailed biographical data and
    qualifications, information regarding any relationships between
    the candidate and us within the last three years, and evidence
    of the recommending person&#146;s ownership of our common shares.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Certain
    Relationships and Related Person Transactions</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Board recognizes that related person transactions present a
    heightened risk of conflicts of interest. The Company currently
    has no related person transactions reportable pursuant to
    Item&#160;404(a) of SEC
    <FONT style="white-space: nowrap">Regulation&#160;S-K,</FONT>
    and has not had any such transactions in the recent past. As
    such, the Company does not believe it is necessary to have a
    written policy specifically dealing with related person
    transactions. The Audit Committee will review any potential
    related person transactions as they arise and are reported to
    the Board or the Audit Committee, regardless of whether the
    transactions are reportable pursuant to Item&#160;404. No such
    transactions arose or were reviewed by the Audit Committee in
    2010. For any related person transaction to be consummated or to
    continue, the Audit Committee must approve or ratify the
    transaction.
</DIV>

<A name='L42120112'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">EXECUTIVE
    OFFICERS AND COMPENSATION INFORMATION</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    R.&#160;H. Dillon and James F. Laird are the Company&#146;s only
    Named Executive Officers. Their experience is described above
    under the heading &#147;PROPOSAL&#160;1&#160;&#151; ELECTION OF
    DIRECTORS.&#148; The Company has no executive officers other
    than our Named Executive Officers. Each Named Executive Officer
    devotes his full time and effort to the affairs of the Company.
</DIV>

<A name='L42120113'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Compensation
    Discussion and Analysis</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Background</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Company is in the investment management industry. Human
    capital is the most important resource in this industry. A
    balancing of the economics between owners and employees is
    always important, especially in an industry that is not capital
    intensive. The Company is heavily dependent on talented
    individuals, which are the Company&#146;s most important
    resource. Attracting and retaining people can be more difficult,
    given the high percentage of a firm&#146;s value-proposition
    which is attributable to key people.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The balancing effort is particularly challenging because the
    Company was essentially a
    <FONT style="white-space: nowrap">start-up</FONT> in
    May 2000, but yet had the unusual legacy of being a publicly
    owned company, in contrast to the industry norm of
    partnership-like structures for investment management firms of a
    similar size. The Company has been able to attract and retain
    quality people due to:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    An investment-centric culture,
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Ownership in the business,
</TD>
</TR>

</TABLE>
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    <BR>
    15
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Its central Ohio location,&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Nationally competitive compensation.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Compensation, which is a critical element in a business so
    dependent on talented employees, is often directly related to
    firm profitability levels. This requires a balancing of the
    economics of the business between increasing shareholder value
    and retaining and rewarding the employees who generate the
    profits and are dedicated to producing client investment
    results. Industry norms are helpful benchmarks for evaluating
    the balancing effort. Additionally, the Company attempts to
    enact a thoughtful alignment of incentives that may pertain more
    so to the Company than others in the industry, because of the
    ownership structure. As of February&#160;28, 2011, on a fully
    diluted basis, employees and directors owned approximately 30%
    of the Company. In contrast, many competitor firms are owned
    entirely by their employees.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Compensation
    Program Objectives</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Company seeks to attract and retain people with integrity,
    intelligence and energy. All employees are paid a competitive
    base salary, provided with competitive benefits and participate
    in an annual cash and equity incentive compensation program. The
    amount of individual incentive awards is based on an assessment
    of individual performance, while the amount of the overall
    available incentive pool is based on (i)&#160;overall firm
    investment and operating performance, (ii)&#160;market
    compensation data and (iii)&#160;the profitability of the firm
    compared to other investment management firms.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    In addition to their annual incentive compensation, upon
    commencing employment with the Company certain individuals were
    awarded options, warrants, restricted stock or a combination as
    an incentive to their continued employment. Generally these
    awards vest over five years to promote employee retention and
    long-term employee ownership. All options and warrants
    previously granted to these individuals have been fully
    exercised. The Company&#146;s current practice for equity awards
    is to grant restricted stock that vests over five years. The
    Company also seeks to increase the ownership percentage of all
    employees because it feels that will encourage all employees to
    act and think like owners. While compensation amounts differ
    depending upon position, responsibilities, performance and
    competitive data, the Company seeks to reward all employees with
    similar compensation components based on these same objectives.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Rewards
    Based on Performance</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Company&#146;s primary business objective is to meet its
    fiduciary duty to clients. Specifically, the focus is on
    long-term, five-year investment returns, with goals defined as
    rolling five-year periods in which client returns are
    sufficiently above relevant passive benchmarks, rank in the top
    quartile of similar investment strategies and absolute returns
    are sufficient for the risk associated with the asset class. As
    it relates to the Company&#146;s investment professionals, the
    compensation program is designed to reward performance that
    supports these objectives. For those employees who are not a
    part of the Company&#146;s investment team, the compensation
    program varies but is based on rewarding individual performance
    that helps the Company meet its fiduciary duty to clients. The
    Company&#146;s second objective is to fulfill its fiduciary duty
    to shareholders by managing the firm and its assets to increase
    shareholder value over time. To support that objective, the
    Named Executive Officers are incented based on achieving
    operating profit margins that the Compensation Committee
    believes are fair and competitive.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Compensation
    Setting Process</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <I><FONT style="font-family: 'Times New Roman', Times">Role of
    the Compensation Committee</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Compensation Committee of the Board (the
    &#147;Committee&#148;) has overall responsibility for evaluating
    and approving the structure, operation and effectiveness of the
    Company&#146;s compensation plans, policies and programs for all
    employees. The Committee consists of Lawrence E. Baumgartner,
    Donald B. Shackelford, and Frances A. Skinner.
    Mr.&#160;Shackelford serves as Chairman. Each member of the
    Committee is an &#147;outside director&#148; for purposes
</DIV>
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    16
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    of Section&#160;162(m) of the Internal Revenue Code and a
    &#147;non-employee director&#148; for purposes of
    Section&#160;16(b) of the Securities Exchange Act of 1934. The
    Committee is specifically charged with the following:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    To review and approve the corporate goals and objectives
    relevant to the compensation of the CEO, to evaluate the
    CEO&#146;s performance in light of these goals and objectives,
    and, based on this evaluation, make recommendations to the Board
    for the independent directors to approve the CEO&#146;s
    compensation level (including any long-term incentive or other
    compensation under any incentive-based or equity-based
    compensation plan);
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    To review management&#146;s recommendations and make
    recommendations to the Board with respect to director and other
    non-CEO executive officer compensation provided; however, that
    the Committee has full decision-making powers with respect to
    compensation intended to be performance-based compensation
    within the meaning of Section&#160;162(m) of the Internal
    Revenue Code;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    To retain compensation consultants as necessary to assist in its
    evaluation of director, CEO or other senior executive
    compensation programs or arrangements. The Committee also has
    the authority to obtain advice and assistance from internal or
    external legal, accounting or other advisors;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    To review management&#146;s recommendations and make
    recommendations to the Board with respect to incentive-based
    compensation and equity-based compensation plans and programs
    that are subject to Board approval, and that may be applicable
    to all or any portion of the employees of the company
    <FONT style="white-space: nowrap">and/or</FONT> its
    subsidiaries;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    To exercise all power and authority of the Board in the
    administration of equity-based incentive compensation plans.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Committee considers the sum of all pay elements when
    reviewing annual compensation recommendations for the
    Company&#146;s Named Executive Officers. Although the framework
    for compensation decision-making is tied to the Company&#146;s
    overall financial performance and the creation of long-term
    shareholder value, the Committee retains discretion to make
    recommendations to the Board for the independent directors to
    approve individual compensation based on other performance
    factors such as demonstrated management and leadership
    capabilities and the achievement of certain investment
    performance results and other strategic operating results.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <I><FONT style="font-family: 'Times New Roman', Times">Role of
    Management</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Company&#146;s CEO evaluates the CFO as part of the annual
    review process and makes recommendations to the Committee
    regarding all elements of executive compensation paid to him.
    Changes in executive compensation proposed by the Company&#146;s
    CEO are based on the individual executive&#146;s performance,
    the compensation of individuals with comparable responsibilities
    in competing or similar organizations, and the profitability of
    the Company. At the Committee&#146;s request, the Company&#146;s
    CEO and CFO attend Committee meetings to provide compensation
    and other information to the Committee, including information
    regarding the design, implementation and administration of the
    Company&#146;s compensation plans. The Committee also meets in
    executive sessions without the presence of any executive officer
    whose compensation the Committee is scheduled to discuss.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <I><FONT style="font-family: 'Times New Roman', Times">Use of
    Compensation Consultants and Surveys in Determining Executive
    Compensation</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Committee&#146;s written charter provides the Committee the
    authority to retain an independent outside executive
    compensation consulting firm to assist in evaluating policies
    and practices regarding executive compensation and provide
    objective advice regarding the competitive landscape. However,
    historically the Committee has not engaged compensation
    consultants and did not do so in 2010.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Each year the Company obtains and summarizes an asset management
    industry pay analysis prepared by McLagan Partners, a
    compensation specialist focusing on the asset management
    industry. The companies in the McLagan Partners&#146; analysis
    include over 100 public and private asset management companies
    with which the Company competes. This analysis provides the
    Committee with a general overview of compensation trends in the
    asset management industry. The Committee does not define a
    specific peer group, but rather takes on a broad view of the
    analysis. The Committee does not set any compensation elements
    or levels based on targeting a certain
</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    percentile from the survey, but rather sets compensation that it
    believes to be competitive and based on the executive&#146;s
    value to the Company. The survey is just one of many factors
    that the Committee considers when determining executive
    compensation. Management and the Committee believe this broad
    view of the analysis is appropriate because the Company competes
    with both public and private asset management firms regardless
    of their size and scope of operations.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Elements
    of Compensation</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The compensation for the Company&#146;s Named Executive Officers
    is comprised of the following elements:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Base salary;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Annual performance-based incentive awards;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Retirement plan benefits;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Other benefits and perquisites made available to all Company
    employees.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <I><FONT style="font-family: 'Times New Roman', Times">Base
    Salary</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Base salaries for the Company&#146;s Named Executive Officers
    are intended to provide a fixed level of cash compensation that
    is appropriate given the executive&#146;s role in the
    organization. Generally, base salaries are determined by
    1)&#160;scope of responsibility and complexity of position,
    2)&#160;performance history, 3)&#160;tenure of service,
    4)&#160;internal equity within the Company&#146;s salary
    structure, and 5)&#160;relative salaries of persons holding
    similar positions at companies within the investment management
    industry and are designed to reward knowledge and experience. In
    December 2009, the Compensation Committee made the determination
    not to increase the base salaries of the Named Executive
    Officers for fiscal year 2010. Consistent with the
    Company&#146;s desire to have the majority of total compensation
    paid to Named Executive Officers at risk in the form of
    incentive compensation, only 15&#160;percent of the total Named
    Executive Officers&#146; compensation in fiscal 2010 (as shown
    in the Summary Compensation table) was paid in the form of base
    salaries.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <I><FONT style="font-family: 'Times New Roman', Times">Annual
    Performance-based Incentive Awards</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Company&#146;s annual performance-based compensation awards
    for the Named Executive Officers are designed to advance the
    interests of the Company and its shareholders by linking the
    compensation of the Named Executive Officers to Company
    performance and the achievement of financial goals in the
    current fiscal year. A substantial portion of the Named
    Executive Officers&#146; total compensation is in the form of
    annual performance-based compensation, and a substantial portion
    of that compensation is in the form of equity grants that are
    restricted from sale for a period of time.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Company maintains two plans under which incentive awards are
    made. The 2006 Performance-Based Compensation Plan (the
    &#147;2006 Plan&#148;) is an incentive compensation plan
    designed to satisfy the requirements of Section&#160;162(m) of
    the Internal Revenue Code. This plan was approved by the
    Company&#146;s shareholders at its 2006 annual meeting. The cash
    portion of any award is governed by the 2006 Plan and the
    applicable award agreement with the participant under that plan.
    Additionally, the 2006 Plan provides that portions of incentive
    awards under the 2006 Plan may be paid in Company stock. Stock
    earned pursuant to incentive awards under the 2006 Plan is paid
    in the form of &#147;stock grants&#148; made under the
    Company&#146;s 2005 Employee and Director Equity Incentive Plan
    (the &#147;2005 Plan&#148;), which is an equity compensation
    plan that was approved by the Company&#146;s shareholders at its
    2005 annual meeting.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Company establishes an &#147;annual incentive plan&#148;
    each year in which it establishes a performance-based incentive
    pool (the &#147;Bonus Pool&#148;) for all eligible employees.
    This annual incentive plan comprises the framework and sets the
    specific goals under which awards will be made for that year
    under the 2006 Plan and the 2005 Plan. The Bonus Pool is
    calculated each year based on revenue multiplied by the target
    operating profit margin less operating expenses (excluding the
    expense related to such incentive awards). In setting the target
    operating profit margin, the Committee attempts to balance the
    economics of the business between increasing shareholder value
    and the retaining and rewarding the employees who generate the
    profits and are dedicated to producing client investment
</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    results. In doing so, the Committee reviews data on public and
    private asset management company profit margin trends, the
    expected growth of the Company, and staffing levels. The target
    operating profit margin, excluding the results of Beacon Hill
    Fund&#160;Services (the &#147;adjusted profit margin&#148;) for
    2010 ranged from 30.3% at $45&#160;million in revenues to 33.3%
    at $65&#160;million in revenues. The results of Beacon Hill
    Fund&#160;Services were excluded from the target operating
    profit margin in 2008, 2009, and 2010 because it is a
    <FONT style="white-space: nowrap">start-up</FONT>
    subsidiary of the Company.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Annual performance-based incentive awards paid to the Named
    Executive Officers under the 2006 Plan are based upon the
    achievement of a specific performance target for the Company.
    The performance target is determined at the beginning of each
    performance period, taking into the consideration the
    performance target from the prior year, forecasted revenue, and
    the requirements of Section&#160;162(m) of the Internal Revenue
    Code. Once it is determined that the performance target has been
    meet, the calculation of the individual awards under the plan
    are determined. The Committee is responsible for determining
    eligibility for participation in the 2006 Plan. The Committee is
    also responsible for determining the maximum award potential for
    each participant, the objective performance goal(s) against
    which performance will be measured, certifying whether the
    performance goals have been met, and, ultimately, the award to
    be paid to each participant upon goal achievement. The maximum
    award potential for each participant is generally set as a
    percentage of the Bonus Pool as explained above. Awards made
    under the 2006 Plan are capped at $5&#160;million for each 2006
    Plan participant on an annual basis.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Under the terms of Mr.&#160;Dillon&#146;s employment agreement
    with the Company, if, without Mr.&#160;Dillon&#146;s consent,
    the percentage assigned to Mr.&#160;Dillon of any Bonus Pool
    created by the Company for its employees is less than 20%,
    Mr.&#160;Dillon may resign and terminate his employment with the
    Company for good reason. In 2008, 2009, and 2010, in order to
    permit other employees to receive a larger bonus opportunity,
    Mr.&#160;Dillon consented to receiving less than 20% of the
    Bonus Pool.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    In March 2010, the Committee established the following
    performance criteria for the year ended December&#160;31, 2010,
    and the related potential award amounts that the Named Executive
    Officers would be eligible to earn upon achievement of that
    performance criterion:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    If adjusted profit margin was at or above 32.2% then
    Mr.&#160;Dillon and Mr.&#160;Laird would be eligible to earn
    20%and 5%, respectively, of the Bonus Pool;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    If adjusted profit margin was between 16 and 32.2% then
    Mr.&#160;Dillon and Mr.&#160;Laird would be eligible to earn
    between 0% and 20% and 0% and 5%, respectively, of the Bonus
    Pool determined on a sliding scale with 0% as the floor if
    adjusted profit margin is 16% or less and 20% as the ceiling if
    adjusted profit margin is equal to 32.2%;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    If the adjusted profit margin was below 16%, then
    Mr.&#160;Dillon and Mr.&#160;Laird would not be eligible for any
    award.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    A 32.2% adjusted profit margin, as detailed in the performance
    criteria above, would have resulted in an $18.1&#160;million
    Bonus Pool. The Company actually recorded adjusted profit margin
    of 34.7% which resulted in a Bonus Pool of $16.1&#160;million
    for the year ended December&#160;31, 2010. Management provided
    the Board with a report related to the meeting of the
    pre-established performance target. Based upon that report, the
    Board certified that the pre-established performance target was
    met for the purpose of the plan and that the Named Executive
    Officers were eligible for the maximum potential award related
    to the achievement of the respective adjusted profit margin. The
    Committee then granted Mr.&#160;Dillon $2.4&#160;million or
    14.9% of the performance based incentive pool and granted
    Mr.&#160;Laird $700,000 or 4.3% of the performance based
    incentive pool. Of these total performance-based incentive
    awards, approximately 85% of Mr.&#160;Dillon&#146;s award and
    79% of Mr.&#160;Laird&#146;s award were made in the form of
    restricted stock grants that were immediately vested but were
    restricted from sale. The remainder of the awards was made in
    cash. In determining the percentage of the awards that should be
    in cash versus equity the Committee considered management&#146;s
    recommendation and the Company&#146;s overall desire to
    continually increase employee ownership to further align
    employees and shareholders.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Company has no formal policy to adjust prior incentive
    awards to reflect restatement or adjustment of financial
    results. The Company believes that, due to the nature of its
    business, material restatements or prior period adjustments to
    operating results are highly unlikely. Individual awards made
    under the annual incentive plan are based on the factors
    discussed above and may increase or decrease materially from
    year to year consistent with
</DIV>
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<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    19
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#L42120tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    similar changes in the relevant factors such as profitability
    and individual performance. The Company gives no weight to the
    economic impact of prior awards in making awards for the current
    year.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <I><FONT style="font-family: 'Times New Roman', Times">Retirement
    Plan Benefits</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Company provides retirement benefits through the Diamond
    Hill Investment Group 401k Plan. The Named Executive Officers
    are entitled to participate in this plan on the same terms and
    conditions as all other employees. The plan does not involve any
    guaranteed minimum or above-market returns, as plan returns
    depend on actual investment results.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <I><FONT style="font-family: 'Times New Roman', Times">Other
    Benefits and Perquisites</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Company does not provide supplemental retirement plan
    benefits or non-qualified compensation plans to the Named
    Executive Officers. As a general rule, the Company does not
    provide any perquisites or other personal benefits to its Named
    Executive Officers that are not offered on an equal basis to all
    employees. The Company&#146;s Named Executive Officers are
    entitled to participate in benefit programs that entitle them to
    medical, dental, short-term, and long-term disability insurance
    coverage that are available to all employees.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Post
    Employment Payments</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Only the CEO has an employment contract which provides for
    payments upon termination of employment. The maximum payment
    that Mr.&#160;Dillon could receive in the event of his
    termination without cause is one year&#146;s salary, one
    year&#146;s incentive bonus (based on the prior year&#146;s
    bonus) and a prorated incentive bonus for the year of
    termination. More information on the employment agreement with
    our CEO and termination payments thereunder is set forth under
    the heading &#147;Employment Agreements and Change in Control
    Benefits.&#148;
</DIV>

<A name='L42120114'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Stock
    Ownership Guidelines</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    In February 2010, the Board adopted a stock ownership guideline
    for our executive officers to further align executive&#146;s
    interest with those of shareholders. This policy provides that
    our Named Executive Officers are expected to reach levels of
    ownership determined as a stated multiple of an executive&#146;s
    base salary within five years after the adoption of the
    guidelines or, if later, within five years from the date when
    the executive assumed his or her position. The below table
    provides the target ownership level and actual shares owned as
    of December&#160;31, 2010.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="40%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="20%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="3%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="3%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="3%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="4%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Target<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Target<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Number of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Ownership<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Number of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Shares<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Ownership<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Name</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Title</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Level</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Shares(a)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Owned</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Guideline Met</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    R. H. Dillon
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    President and CEO
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    5x Salary
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    24,882
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    188,824
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    Yes
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    James F. Laird
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    Chief Financial Officer
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    3x Salary
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    8,294
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    68,296
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    Yes
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    (a) </TD>
    <TD></TD>
    <TD valign="bottom">
    Based on a per share price of $72.34, which was the closing
    price of our common shares on December&#160;31, 2010, and the
    respective salaries of our Named Executive Officers as of that
    date.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Risks
    Related to Compensation Policies and Practices</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    As part of its oversight of the Company&#146;s executive and
    non-executive compensation programs, the Compensation Committee
    considers how current compensation programs, including the
    incentives created by compensation awards, affect the
    Company&#146;s risk profile. In addition, the Company reviews
    its compensation policies, particularly the incentives that they
    create, to determine whether they encourage an appropriate level
    of risk-taking and do not present a significant risk to the
    Company. The Compensation Committee also considered the
    following risk mitigating factors:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Current compensation programs reward portfolio managers and
    research analysts on trailing five year investment performance
    in client accounts;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    A majority of incentive compensation is in the form of
    equity-based awards;
</TD>
</TR>

</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    20
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#L42120tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Sale restriction periods for equity-based compensation awards
    encourage executives and other employees to focus on the
    long-term performance of the Company;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    The Committee&#146;s discretionary authority to adjust annual
    incentive awards, which helps mitigate business risks associated
    with such awards;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    The Company&#146;s internal control over financial reporting and
    other financial, operational and compliance policies and
    practices currently in place;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Base salaries consistent with executives&#146; responsibilities
    so that they are not motivated to take excessive risks to
    achieve a reasonable level of financial security.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Based on this review, the Company has concluded that its
    compensation policies and procedures are not reasonably likely
    to have a material adverse effect on the Company.
</DIV>

<A name='L42120115'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Summary
    Compensation Table for 2010</FONT></I></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The following table sets forth the compensation paid to or
    earned by Mr.&#160;Dillon and Mr.&#160;Laird during 2010, 2009
    and 2008. The Company has no other executive officers.
    Additional information on the elements of compensation included
    in the table below, including a discussion of the amounts of
    certain components of compensation in relation to others, is
    available under the heading &#147;Compensation Discussion and
    Analysis&#148; above.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 7pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="55%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="2%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="3%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="4%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="4%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=07 type=gutter -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=07 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=07 type=body -->
    <TD width="2%" align="left">&nbsp;</TD>	<!-- colindex=07 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Non-Equity<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
    <B>Name and<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Incentive Plan<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>All Other<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
    <B>Principal<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Stock Awards<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Compensation<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Compensation<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Position</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Year</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Salary</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>(1)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>(2)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>(3)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Total</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 7pt">
    R. H. Dillon
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    2010
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    $
</TD>
<TD nowrap align="right" valign="top">
    360,000
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    $
</TD>
<TD nowrap align="right" valign="top">
    2,050,000
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    $
</TD>
<TD nowrap align="right" valign="top">
    350,000
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    $
</TD>
<TD nowrap align="right" valign="top">
    34,200
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    $
</TD>
<TD nowrap align="right" valign="top">
    2,794,200
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: 0pt; margin-left: 7pt">
    President and CEO
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    2009
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    $
</TD>
<TD nowrap align="right" valign="top">
    360,000
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    $
</TD>
<TD nowrap align="right" valign="top">
    1,500,000
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    $
</TD>
<TD nowrap align="right" valign="top">
    500,000
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    $
</TD>
<TD nowrap align="right" valign="top">
    34,200
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    $
</TD>
<TD nowrap align="right" valign="top">
    2,394,200
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    2008
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    $
</TD>
<TD nowrap align="right" valign="top">
    360,000
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    $
</TD>
<TD nowrap align="right" valign="top">
    929,750
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    $
</TD>
<TD nowrap align="right" valign="top">
    1,150,250
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    $
</TD>
<TD nowrap align="right" valign="top">
    32,400
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    $
</TD>
<TD nowrap align="right" valign="top">
    2,472,400
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 7pt">
    James F. Laird
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    2010
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    $
</TD>
<TD nowrap align="right" valign="top">
    200,000
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    $
</TD>
<TD nowrap align="right" valign="top">
    550,000
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    $
</TD>
<TD nowrap align="right" valign="top">
    150,000
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    $
</TD>
<TD nowrap align="right" valign="top">
    26,400
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    $
</TD>
<TD nowrap align="right" valign="top">
    926,400
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: 0pt; margin-left: 7pt">
    Secretary, Treasurer and Chief
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    2009
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    $
</TD>
<TD nowrap align="right" valign="top">
    200,000
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    $
</TD>
<TD nowrap align="right" valign="top">
    395,000
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    $
</TD>
<TD nowrap align="right" valign="top">
    170,000
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    $
</TD>
<TD nowrap align="right" valign="top">
    26,400
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    $
</TD>
<TD nowrap align="right" valign="top">
    791,400
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: 0pt; margin-left: 7pt">
    Financial Officer
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    2008
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    $
</TD>
<TD nowrap align="right" valign="top">
    200,000
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    $
</TD>
<TD nowrap align="right" valign="top">
    350,000
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    $
</TD>
<TD nowrap align="right" valign="top">
    170,000
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    $
</TD>
<TD nowrap align="right" valign="top">
    26,400
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    $
</TD>
<TD nowrap align="right" valign="top">
    746,400
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    (1) </TD>
    <TD></TD>
    <TD valign="bottom">
    Represents the full grant date fair value computed by
    multiplying the total number of shares granted by the closing
    price of the shares on the grant date. These shares were awarded
    to Messrs.&#160;Dillon and Laird under the 2005 Plan as partial
    payment for amounts earned under our 2010, 2009 and 2008 annual
    incentive plans. All shares were fully vested on the grant date
    but were restricted from sale for a period of time. The below
    table shows the details of the specific number of shares granted
    for each annual incentive plan year:</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="29%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="23%">&nbsp;</TD>	<!-- colindex=04 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="23%">&nbsp;</TD>	<!-- colindex=05 type=maindata -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Incentive<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Shares<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Sale Restriction<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Name</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Plan Year</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Granted</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Grant Date</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Period</B>
</DIV>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    R. H. Dillon
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2010
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,054
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    February 24, 2011
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    One Year
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2010
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    23,645
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    February 24, 2011
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    Five Years
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2009
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    21,502
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    February 17, 2010
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    One Year
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2009
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,801
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    February 17, 2010
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    Five Years
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2008
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    25,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    February 23, 2009
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    One Year
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    James F. Laird
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2010
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,054
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    February 24, 2011
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    One Year
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2010
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,378
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    February 24, 2011
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    Five Years
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2009
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,999
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    February 17, 2010
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    One Year
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2009
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,401
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    February 17, 2010
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    Five Years
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2008
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,411
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    February 23, 2009
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    One Year
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    (2) </TD>
    <TD></TD>
    <TD valign="bottom">
    Represents cash awards paid to Messrs.&#160;Dillon and Laird as
    partial payment for amounts earned under our 2010, 2009 and 2008
    annual incentive plans. For more information on our annual
    incentive plan, please see the information above under the
    heading &#147;Compensation Discussion and Analysis.&#148;</TD>
</TR>

</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    21
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#L42120tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    (3) </TD>
    <TD></TD>
    <TD valign="bottom">
    The following types of compensation are included in the all
    other compensation column:</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="43%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="8%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="8%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="9%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="9%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="3%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Contributions to<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Contributions to Health<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Retirement Program<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Savings Account<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Name</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Year</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>(a)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>(a)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Total</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    R. H. Dillon
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2010
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    29,400
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    4,800
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    34,200
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2009
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    29,400
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    4,800
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    34,200
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2008
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    27,600
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    4,800
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    32,400
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    James F. Laird
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2010
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    24,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,400
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    26,400
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2009
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    24,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,400
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    26,400
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2008
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    24,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,400
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    26,400
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR>
    <TD valign="top">
    (a) </TD>
    <TD></TD>
    <TD valign="bottom">
    Company contributions to Retirement Program and employee Health
    Savings Accounts are offered to all employees of the Company and
    its affiliates.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

    <A name='L42120116'><B><I>Grants of Plan Based Awards for
    2010.</A></I></B>&#160;&#160;The following table sets forth
    information regarding annual incentive plan awards to each of
    the Named Executive Officers for the year ended
    December&#160;31, 2010.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="32%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="2%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="2%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="3%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="2%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=07 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=07 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=07 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=07 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=08 type=gutter -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=08 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=08 type=body -->
    <TD width="3%" align="left">&nbsp;</TD>	<!-- colindex=08 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=09 type=gutter -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=09 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=09 type=body -->
    <TD width="2%" align="left">&nbsp;</TD>	<!-- colindex=09 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=10 type=gutter -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=10 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=10 type=body -->
    <TD width="2%" align="left">&nbsp;</TD>	<!-- colindex=10 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=11 type=gutter -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=11 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=11 type=body -->
    <TD width="2%" align="left">&nbsp;</TD>	<!-- colindex=11 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=12 type=gutter -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=12 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=12 type=body -->
    <TD width="2%" align="left">&nbsp;</TD>	<!-- colindex=12 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 6pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>All<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 6pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Other<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>All Other<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 6pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Stock<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Option<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Grant<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 6pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Awards:<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Awards:<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Exercise<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Date Fair<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 6pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="11" nowrap align="center" valign="bottom">
    <B>Estimated Possible Payouts<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="11" nowrap align="center" valign="bottom">
    <B>Estimated Possible Payouts<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Number of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Number of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Or Base<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Value of<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 6pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="11" nowrap align="center" valign="bottom">
    <B>Under Non-Equity Incentive Plan<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="11" nowrap align="center" valign="bottom">
    <B>Under Equity Incentive<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Shares of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Securities<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Price of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Stock and<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 6pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Grant<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="11" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Awards(2)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="11" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Plan Awards(2)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Stock or<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Underlying<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Option<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Option<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 6pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Name</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Date(1)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Threshold</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Target</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Maximum</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Threshold</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Target</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Maximum</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Units</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Options</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Awards</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Awards</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Mr. Dillon
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3/29/10
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1
</TD>
<TD nowrap align="left" valign="bottom">
    (3)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3,222,250
</TD>
<TD nowrap align="left" valign="bottom">
    (3)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3/29/10
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1
</TD>
<TD nowrap align="left" valign="bottom">
    (4)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3,222,250
</TD>
<TD nowrap align="left" valign="bottom">
    (4)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Mr. Laird
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3/29/10
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1
</TD>
<TD nowrap align="left" valign="bottom">
    (3)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    805,563
</TD>
<TD nowrap align="left" valign="bottom">
    (3)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3/29/10
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1
</TD>
<TD nowrap align="left" valign="bottom">
    (4)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    805,563
</TD>
<TD nowrap align="left" valign="bottom">
    (4)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    (1) </TD>
    <TD></TD>
    <TD valign="bottom">
    On March&#160;29, 2010, the Company entered into participation
    agreements with Messrs.&#160;Dillon and Laird under the 2006
    Performance-Based Compensation Plan. The performance period for
    these awards was the 2010 fiscal year. These awards were granted
    in accordance with Section&#160;162(m) of the Internal Revenue
    Code so that amounts paid are deductible by the Company as
    performance-based compensation. The performance conditions
    applicable to these awards are discussed in the
    &#147;Compensation Discussion and Analysis&#148; above. Although
    amounts awarded under the 2006 Performance-Based Compensation
    Plan are denominated in dollars, once such amounts are earned,
    they are paid, at the discretion of the Compensation Committee,
    in both cash and in share awards made under the 2005 Plan.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (2) </TD>
    <TD></TD>
    <TD valign="bottom">
    Because the amount of the award ultimately earned is based on
    the satisfaction of performance criteria, partial satisfaction
    could result in a payment ranging from $1 to the maximum,
    depending on the extent to which the performance goals are met;
    provided, however, that the aggregate value of the cash and
    shares awarded may not exceed the specified maximum, which was
    $3,222,250 and $805,563 for Mr.&#160;Dillon and Mr.&#160;Laird,
    respectively, in fiscal 2010. The maximum is the largest amount
    that could have been earned for fiscal 2010 upon the
    satisfaction of all of the performance goals specified in the
    participation agreement. Because the amount of the award varies
    based upon the extent of satisfaction of the performance goals,
    there is no specified target amount. Both Mr.&#160;Dillon and
    Mr.&#160;Laird earned less than the maximum amount available
    under the annual incentive plan for 2010.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (3) </TD>
    <TD></TD>
    <TD valign="bottom">
    The cash portion of the award earned by Messrs.&#160;Dillon and
    Laird under the annual incentive plan for 2010 is identified in
    the &#147;Summary Compensation Table&#148; and in the above
    table in the &#147;Non-Equity Incentive Plan Compensation&#148;
    column.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (4) </TD>
    <TD></TD>
    <TD valign="bottom">
    The value of shares awarded under the annual incentive plan for
    2010 is determined based on the closing price of the shares on
    the day of payment. The shares awarded to Messrs.&#160;Dillon
    and Laird were awarded under the 2005 Plan. The stock portion of
    the award earned by Messrs.&#160;Dillon and Laird under the
    annual incentive plan for 2010 is identified in the
    &#147;Summary Compensation Table&#148; in the &#147;Stock
    Awards&#148; column.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

    <A name='L42120117'><B><I>Outstanding Equity Awards at
    December&#160;31, 2010.</A></I></B>&#160;&#160;Neither
    Mr.&#160;Dillon nor Mr.&#160;Laird had any outstanding equity
    awards at December&#160;31, 2010.
</DIV>
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    <BR>
    22
</DIV><!-- END PAGE WIDTH -->
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<H5 align="left" style="page-break-before:always"><A HREF="#L42120tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

    <A name='L42120118'><B><I>Option Exercises and Stock Vested for
    2010.</A></I></B>&#160;&#160;Neither Mr.&#160;Dillon nor
    Mr.&#160;Laird exercised any options during 2010. The table
    below sets forth information regarding the vesting during 2010
    of stock awards made to Mr.&#160;Dillon and Mr.&#160;Laird.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="67%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="14%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="10%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Stock Awards(1)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Number of Shares<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Value Realized<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Name</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Acquired on Vesting</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>on Vesting(2)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Mr. Dillon
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    24,303
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,500,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Mr. Laird
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,400
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    395,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    (1) </TD>
    <TD></TD>
    <TD valign="bottom">
    Reflects stock awards under the 2005 Plan to Messrs.&#160;Dillon
    and Laird as partial payment for amounts earned under the 2009
    annual incentive plan. Although the amounts were earned for
    performance in 2009, the shares were not actually awarded until
    2010. These awards were immediately vested on the date of grant,
    although they were restricted from sale for a period of one year
    or five years. For more information on these awards see the
    &#147;Summary Compensation Table&#148; and the &#147;Grants of
    Plan-Based Awards Table&#148; above.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (2) </TD>
    <TD></TD>
    <TD valign="bottom">
    The value realized is the number of shares vested, multiplied by
    the closing price of the shares on the grant date because they
    were immediately vested.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><I>Pension Plans and Non-Qualified Deferred
    Compensation.</I></B>&#160;&#160;The Company does not maintain
    any pension plans or non-qualified deferred compensation
    programs for executives or employees.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><I>Employment Agreements and Change In Control
    Benefits.</I></B>&#160;&#160;The Company currently has an
    employment agreement with Mr.&#160;Dillon. A description of the
    agreement is set forth below. The Company is not a party to any
    employment agreements with any other employees and is not
    obligated to provide change in control benefits to any employee
    other than Mr.&#160;Dillon.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><I>Employment Agreement with
    Mr.&#160;Dillon.</I></B>&#160;&#160;In August 2006, the Company
    entered into an employment agreement with Mr.&#160;Dillon, the
    Company&#146;s President and CEO. This agreement was amended in
    December 2008 to address newly implemented tax laws relating to
    deferred compensation, although no other changes were made. The
    agreement has a current expiration date of January&#160;1, 2012,
    although it may be extended by mutual agreement with
    Mr.&#160;Dillon. The agreement provides for an annual salary of
    $360,000, which may be increased (but not reduced) by the Board
    annually, plus participation by Mr.&#160;Dillon in the annual
    incentive plan. Mr.&#160;Dillon also receives health insurance,
    six weeks paid vacation annually and participation in other
    benefit programs offered to employees. The agreement also
    restricts Mr.&#160;Dillon from competing with the Company during
    the term of the agreement and for one year following termination
    of his employment and provides that he will at all times
    maintain the confidentiality of Company information.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    If the Company terminates Mr.&#160;Dillon&#146;s employment
    without cause, he is entitled to the following payments, which
    are quantified to reflect the amounts he would have received had
    his employment been terminated at December&#160;31, 2010:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    1.&#160;his accrued and unpaid base salary and vacation and
    unreimbursed business expenses as of the date of termination ($0
    at December&#160;31, 2010);
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    2.&#160;payments, if any, under benefit plans and programs in
    effect at the time (the Company currently has no benefit plans
    that would result in payments upon termination);
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    3.&#160;a single lump sum payment equal to six months base
    salary at his annual salary rate in effect at the date of
    termination ($180,000 at December&#160;31, 2010);
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    4.&#160;beginning in the seventh month after the date of
    termination, six monthly payments of his monthly base salary
    ($180,000 at December&#160;31, 2010);
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    5.&#160;a pro rata portion of any amounts earned under the
    annual incentive plan for the year in which the termination
    occurs ($2,400,000 at December&#160;31, 2010 because the year
    was complete);&#160;and
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    6.&#160;a lump sum payment equal to the amount, if any, he
    received under the annual incentive plan for the preceding year
    ($2,400,000).
</DIV>
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    <BR>
    23
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Mr.&#160;Dillon may terminate his employment for &#147;good
    reason,&#148; which generally includes reduction of his annual
    base salary, a reduction in his maximum potential payment under
    the annual incentive plan to less than 20% of the Bonus Pool
    without his consent, permanent or consistent assignment to him
    of duties inconsistent with his position and authority, no
    longer having him report directly to the Board or a breach by
    the Company of his employment agreement. If he terminates his
    employment for good reason, Mr.&#160;Dillon is entitled to all
    of the payments referenced above, except he will not receive a
    pro rata portion of amounts earned under the annual incentive
    plan for the year in which termination occurs.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    If Mr.&#160;Dillon&#146;s employment terminates due to his death
    or disability, upon the expiration of the employment agreement
    in accordance with its terms or the Company terminates
    Mr.&#160;Dillon for &#147;cause,&#148; he will be entitled to
    receive the payments set forth in numbers 1 and 2 above. In the
    event of his death or disability, he will also receive the
    payments described in number 5 above. Under the employment
    agreement, &#147;cause&#148; generally includes material
    violations of the Company&#146;s employment policies, conviction
    of crime involving moral turpitude, violations of securities or
    investment adviser laws, causing the Company to violate a law
    which may result in penalties exceeding $250,000, materially
    breaching the employment agreement or fraud, willful misconduct
    or gross negligence in carrying out his duties.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Mr.&#160;Dillon will not receive any payments solely due to a
    change in control. However, if within 24&#160;months after the
    occurrence of a change in control Mr.&#160;Dillon&#146;s
    employment is terminated for any reason other than his
    disability or for cause, he will be entitled to the following
    payments from us or our successor:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    his accrued and unpaid base salary and vacation and unreimbursed
    business expenses as of the date of termination ($0 at
    December&#160;31, 2010);
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    payments, if any, under benefit plans and programs in effect at
    the time. The Company currently has no benefit plans that would
    result in payments upon termination;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    a single lump sum payment equal to his annual base salary and
    incentive plan compensation payable to him for the most recently
    completed fiscal year ($2,400,000 at December&#160;31,
    2010);&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    a single lump sum payment equal to 12&#160;months of premium
    payments for coverage for Mr.&#160;Dillon and his family under
    our group health plan ($4,303 at December&#160;31, 2010).
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    If any payments to Mr.&#160;Dillon in connection with a change
    in control would constitute excess parachute payments under
    applicable tax laws, the benefits Mr.&#160;Dillon will receive
    will be reduced to an amount equal to $1 less than the amount
    that would be an excess parachute payment.
</DIV>

<A name='L42120119'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Report of
    the Compensation Committee</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Board&#146;s Compensation Committee has submitted the
    following report for inclusion in this Proxy Statement:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We have reviewed and discussed the Compensation Discussion and
    Analysis contained in this Proxy Statement with management.
    Based on such review and discussion, we recommended that the
    Compensation Discussion and Analysis be included in this Proxy
    Statement and the Company&#146;s Annual Report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    for the year ended December&#160;31, 2010.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B>Submitted by the Compensation Committee of the Board of
    Directors:</B>
</DIV>

<DIV style="margin-top: 24pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 49%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B>Donald B. Shackelford, Chairman</B>
</DIV>

<DIV align="left" style="margin-left: 49%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B>Lawrence E. Baumgartner</B>
</DIV>

<DIV align="left" style="margin-left: 49%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B>Frances A. Skinner</B>
</DIV>
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    <BR>
    24
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<H5 align="left" style="page-break-before:always"><A HREF="#L42120tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='L42120120'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">PROPOSAL&#160;2:<BR>
    RATIFICATION OF THE APPOINTMENT OF PLANTE&#160;&#038; MORAN PLLC
    AS OUR INDEPENDENT<BR>
    REGISTERED PUBLIC ACCOUNTING FIRM FOR 2011</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Audit Committee again retained Plante&#160;&#038; Moran as
    the Company&#146;s independent registered public accounting firm
    for the 2011 fiscal year at its February 2011 meeting, and is
    asking that our shareholders ratify this appointment.
    Plante&#160;&#038; Moran has served as our independent
    registered public accounting firm since November 2005.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Representatives of Plante&#160;&#038; Moran are expected to be
    present at the Annual Meeting to respond to appropriate
    questions from shareholders and to make such statements as they
    may desire.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><I>The Board unanimously recommends that you vote FOR
    Proposal&#160;2, the ratification of the appointment of
    Plante&#160;&#038; Moran as our independent registered public
    accounting firm for 2011.</I></B>&#160;&#160;If Proposal&#160;2
    is not approved, the Audit Committee will reconsider the
    appointment of Plante&#160;&#038; Moran as our independent
    registered public accounting firm for 2011.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Disclosure
    of Fees Charged by the Independent Registered Public Accounting
    Firm</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The following table summarizes the fees charged by
    Plante&#160;&#038; Moran for services rendered to the Company
    and its subsidiaries during 2009 and 2010.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="77%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Year Ended<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Year Ended<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>12/31/2010</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>12/31/2009</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Audit Fees(1)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    75,750
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    65,100
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Audit-Related Fees(2)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    300
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Tax Fees(3)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    26,850
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    36,875
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    All Other Fees(4)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    15,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    4,500
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Total Plante&#160;&#038; Moran Fees
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    117,600
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    106,775
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    (1) </TD>
    <TD></TD>
    <TD valign="bottom">
    Audit fees include professional services rendered for the audit
    of annual financial statements, reviews of quarterly financial
    statements, issuance of consents, and assistance with review of
    other documents filed with the SEC.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (2) </TD>
    <TD></TD>
    <TD valign="bottom">
    Audit-related fees include services related to responding to SEC
    staff correspondence.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (3) </TD>
    <TD></TD>
    <TD valign="bottom">
    Tax fees include services related to tax compliance, tax advice
    and tax planning including the preparation of tax returns and
    assistance with tax audits.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (4) </TD>
    <TD></TD>
    <TD valign="bottom">
    Other fees include services related to assisting management with
    calculating the Company&#146;s &#147;earnings and profits&#148;
    in order to determine the proper tax character of the special
    dividends paid.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Preapproval
    by Audit Committee</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Audit Committee pre-approves the audit and non-audit
    services provided by the independent registered public
    accounting firm to ensure that the provision of the services
    does not impair the firm&#146;s independence. All services
    disclosed above were approved by the Audit Committee.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Report of
    the Audit Committee</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Audit Committee is comprised of three independent directors
    operating under a written charter adopted by the Board.
    Annually, the Audit Committee engages the Company&#146;s
    independent registered public accounting firm.
    Plante&#160;&#038; Moran served as the independent registered
    public accounting firm for the year ended December&#160;31, 2010.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Management is responsible for preparation of the Company&#146;s
    financial statements and for designing and maintaining the
    Company&#146;s systems of internal controls and financial
    reporting processes. The Company&#146;s independent registered
    public accounting firm is responsible for performing an audit of
    the Company&#146;s consolidated financial statements in
    accordance with standards of the Public Company Accounting
    Oversight Board and issuing
</DIV>
<!-- XBRL Paragraph Pagebreak -->
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<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    25
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#L42120tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    reports on the Company&#146;s financial statements and the
    effectiveness of the Company&#146;s internal controls over
    financial reporting. The Audit Committee&#146;s responsibility
    is to provide independent, objective oversight of these
    processes.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Pursuant to this responsibility, the Audit Committee met with
    management and Plante&#160;&#038; Moran throughout the year. The
    Audit Committee reviewed the audit plan and scope with
    Plante&#160;&#038; Moran and discussed with them the matters
    required by Statement on Auditing Standards No.&#160;114 (The
    Auditor&#146;s Communication with Those Charged with
    Governance), as may be amended from time to time. The Audit
    Committee also met with Plante&#160;&#038; Moran without
    management present to discuss the results of their audit work,
    their evaluation of the Company&#146;s system of internal
    controls and the quality of the Company&#146;s financial
    reporting.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Committee also discussed with Plante&#160;&#038; Moran its
    independence from management and the Company, and received its
    written disclosures pursuant to applicable requirements of the
    PCAOB regarding the independent accountant&#146;s communication
    with the audit committee concerning independence.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Management has represented to the Audit Committee that the
    Company&#146;s consolidated financial statements for the year
    ended December&#160;31, 2010, were prepared in accordance with
    generally accepted accounting principles, and the Audit
    Committee reviewed and discussed the audited consolidated
    financial statements with management and Plante&#160;&#038;
    Moran. Based on the Audit Committee&#146;s discussions with
    management and Plante&#160;&#038; Moran and review of
    Plante&#160;&#038; Moran&#146;s report to the Audit Committee,
    the Audit Committee recommended to the Board of Directors (and
    the Board has approved) that the audited consolidated financial
    statements be included in the Company&#146;s Annual Report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    for the year ended December&#160;31, 2010, filed with the SEC.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Submitted by the Audit Committee of the Board of Directors:
</DIV>

<DIV style="margin-top: 24pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 49%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    David P. Lauer, Chairman
</DIV>

<DIV align="left" style="margin-left: 49%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Diane D. Reynolds
</DIV>

<DIV align="left" style="margin-left: 49%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Frances A. Skinner
</DIV>

<A name='L42120121'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">PROPOSAL&#160;3:<BR>
    APPROVAL OF THE COMPANY&#146;S 2011 EQUITY AND CASH INCENTIVE
    PLAN</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Summary
    of 2011 Incentive Plan</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The following is a summary of the material terms of the 2011
    Incentive Plan, which summary is qualified in its entirety by
    reference to the 2011 Incentive Plan, the complete text of which
    is attached to this proxy statement as Appendix&#160;A. We urge
    you to read the 2011 Incentive Plan.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>Purpose.</I>&#160;&#160;The purpose of the Plan is to promote
    the Company&#146;s long-term financial success and increase
    shareholder value by motivating performance through incentive
    compensation. The Plan also is intended to encourage
    participants to acquire ownership interests in the Company,
    attract and retain talented employees and directors and enable
    participants to participate in the Company&#146;s long-term
    growth and financial success.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>Effect on Other Plans.</I>&#160;&#160;The 2011 Incentive Plan
    will replace the Company&#146;s existing equity-based incentive
    plan, the 2005 Plan, as well as the Company&#146;s existing
    annual cash incentive plan, the 2006 Plan. As of March&#160;8,
    2011, under the 2005 Plan, zero shares were subject to
    outstanding stock options; a maximum of 164,332&#160;shares may
    be paid out in respect of outstanding restricted stock and
    288,450&#160;shares remained available for new award grants. If
    the 2011 Incentive Plan is approved, future awards will be made
    under the 2011 Incentive Plan and no additional awards will be
    made under the 2005 Plan or the 2006 Plan.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>Administration.</I>&#160;&#160;The Compensation Committee of
    the Board will administer the 2011 Incentive Plan and will have
    full power and authority to:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    interpret the 2011 Incentive Plan and any award agreement issued
    thereunder;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    establish, amend and rescind any rules and regulations relating
    to the Plan;
</TD>
</TR>

</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    26
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#L42120tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    select participants;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    establish the terms and conditions of any award consistent with
    the terms and conditions of the 2011 Incentive Plan, including
    when the award may vest and, if applicable, exercised, the
    acceleration of any such dates, and the expiration of the
    award;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    make any other determinations that it deems necessary or
    desirable for the administration of the 2011 Incentive Plan.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    To the extent permitted by law, the Compensation Committee may
    delegate any ministerial duties associated with the Plan;
    however, the Compensation Committee may not delegate duties that
    it is required to discharge to comply with Section&#160;162(m)
    of the Code, its authority to grant awards to any participant
    who is subject to Section&#160;16 of the Act, and its authority
    under any equity award granting policy of the Company that may
    be in effect from time to time.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>Eligibility.</I>&#160;&#160;The Compensation Committee may
    select any employees of the Company and its affiliates and any
    non-employee directors to receive awards under the 2011
    Incentive Plan. As of March&#160;14, 2011, there were 6
    non-employee directors of the Company and approximately
    74&#160;employees of the Company and its affiliates who are
    eligible to receive awards under the 2011 Incentive Plan.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Types of
    Awards</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>In General.</I>&#160;&#160;When an award is granted under the
    2011 Incentive Plan, the Compensation Committee will establish
    the terms and conditions of that award. These terms and
    conditions will be contained in an award agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>Stock Options.</I>&#160;&#160;A stock option gives a
    participant the right to acquire a specified number of shares at
    an exercise price determined at the time of grant. Stock options
    may be granted as &#147;incentive stock options&#148; or
    &#147;nonqualified stock options.&#148; The exercise price of a
    stock option must be at least equal to the fair market value of
    a share (<I>i.e.</I>, the closing price of the Company&#146;s
    shares on NASDAQ) on the date stock option is granted. The
    exercise price of a stock option may be paid in any method
    approved by the Compensation Committee, including in cash, by
    tendering previously-acquired shares, by a cashless exercise,
    any combination of the foregoing or any other method approved by
    the Compensation Committee. The Compensation Committee will
    determine the term of the stock option (which may not exceed ten
    years), the vesting conditions and any other terms and
    conditions of the stock option, all of which will be stated in
    the award agreement. Incentive stock options may only be granted
    to employees and must comply with other requirements, including
    those contained in Section&#160;422 of the Code.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>Stock Appreciation Rights.</I>&#160;&#160;A stock
    appreciation right gives the participant a right to receive the
    difference between the fair market value of a share on the date
    of exercise over the exercise price of the stock appreciation
    right. The exercise price of any stock appreciation right will
    be at least equal to the fair market value of a share on the
    date the stock appreciation right is granted. The Compensation
    Committee will determine the term of the stock appreciation
    right (which may not exceed ten years), the vesting conditions
    and any other terms and conditions of the stock appreciation
    right, all of which will be stated in the related award
    agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>Restricted Stock.</I>&#160;&#160;Restricted stock consists of
    a number of shares granted to a participant subject to
    limitations on transferability and a risk of forfeiture if
    certain terms and conditions are not met. These restrictions may
    include time- or performance-based restrictions, as determined
    by the Compensation Committee and stated in the related award
    agreement. Unless otherwise provided in the award agreement, a
    participant who has been granted restricted stock will have the
    right to vote the restricted stock during the restriction period
    and receive dividends (which will be subject to the same
    limitations as the restricted stock).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>Other Stock-Based Awards.</I>&#160;&#160;Other stock-based
    awards are awards valued in whole or in part by reference to, or
    otherwise based on, the fair market value of a share. Other
    stock-based awards may include unrestricted shares and stock
    units, which are notional shares that entitle the participant to
    receive the value of a share if certain terms and conditions are
    satisfied. These terms and conditions (if any) may include time-
    or performance-based terms and conditions, as determined by the
    Compensation Committee and stated in the related award
    agreement. Other stock-based awards may be granted with rights
    to receive dividends paid on the shares to which the award
    relates.
</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>Cash-Based Awards.</I>&#160;&#160;Cash awards represent the
    right to receive a cash payment if certain terms and conditions
    are satisfied. These terms and conditions may include time- or
    performance-based terms and conditions, as determined by the
    Compensation Committee and stated in the related award agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>Performance-Based Awards.</I>&#160;&#160;Awards granted under
    the 2011 Incentive Plan may be granted subject to satisfaction
    or attainment of performance criteria so that the award may
    constitute qualified performance-based compensation under
    Section&#160;162(m) of the Code.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    For employees, other than Covered Employees, the Compensation
    Committee may select any performance criteria is deems
    appropriate. For Covered Employees, the performance criteria are:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    operating profit, including operating profit margins;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    earnings per share;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    net income;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    investment performance of the Company&#146;s investment
    strategies (collectively or a single strategy, individually);
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    operating income;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    calculation of the Company&#146;s intrinsic value;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    return on equity;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    return on sales;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    revenue.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Different performance criteria may be applied to individual
    participants or to groups of participants and may be based on
    the results achieved individually or collectively by the
    Company, any related entity or by any combination of our
    segments, products, divisions, or related entities. In addition,
    performance objectives may be measured on an absolute or
    cumulative basis or measured relative to selected peer companies
    or a market index.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Compensation Committee may issue a performance-based award
    to any participant. However, a performance-based award granted
    to an employee whose compensation may be subject to limited
    deductibility under Section&#160;162(m) of the Internal Revenue
    Code (a &#147;Covered Employee&#148;) is subject to the
    additional requirements discussed below. Generally, our Named
    Executive Officers are our only Covered Employees.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    For performance-based awards granted to Covered Employee, the
    Compensation Committee will establish in writing the applicable
    performance criteria, performance period and formula for
    determining the amount or value of the performance-based award
    by no later than 90&#160;days after the beginning of the
    applicable performance period (or, if earlier, after 25% of the
    applicable performance period has expired). After the end of
    each performance period, the Compensation Committee will certify
    in writing whether the performance goals and other material
    terms imposed on the Performance-Based Award have been
    satisfied. The Compensation Committee may exercise negative
    discretion and reduce (but not increase) the amount of a
    performance-based award to a Covered Employee.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Shares&#160;Available
    for Awards</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>Share Pool.</I>&#160;&#160;Subject to the adjustments
    discussed below, the aggregate number of shares available for
    the grant of awards under the 2011 Incentive Plan will be
    600,000, which is approximately the same number of shares that
    would have become available for issuance during the remaining
    term of our existing equity-based incentive plan, the 2005 Plan.
    Shares issued under the 2011 Incentive Plan may consist of
    treasury shares, authorized but unissued shares, or shares
    purchased on the open market.
</DIV>
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    <I>Share Usage.</I>&#160;&#160;When an award is granted, the
    number of shares available for issuance under the 2011 Incentive
    Plan will be reduced by the number of shares subject to such
    award, although the following shares may be again available for
    issuance as awards:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    shares covered by an award that expires or is forfeited,
    cancelled, surrendered or otherwise terminated without the
    issuance of shares;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    shares covered by an award that is settled in cash or for less
    than the full number of shares subject to the award;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    shares granted through the assumption of, or in substitution
    for, outstanding awards granted by a company to individuals who
    become participants in the 2011 Incentive Plan as the result of
    a merger, consolidation, acquisition or other corporate
    transaction involving such company and the Company or any of its
    affiliates;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    shares from awards exercised for or settled in vested and
    nonforfeitable shares that are later returned to the Company
    pursuant to any compensation recoupment policy, provision or
    agreement;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    shares surrendered upon exercise of an award as payment of the
    applicable exercise price or withheld to satisfy any applicable
    taxes.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>Adjustments.</I>&#160;&#160;In the event of any share
    dividend, share split, recapitalization, merger, reorganization,
    consolidation, combination, spin-off, distribution of assets to
    shareholders, exchange of shares or any other change affecting
    the shares, the Compensation Committee will make such
    substitutions and adjustments as it deems equitable and
    appropriate to the aggregate number of shares that it may issue
    under the 2011 Incentive Plan, any share-based limits imposed
    under the 2011 Incentive Plan and the exercise price, number of
    shares and other terms or limitations applicable to outstanding
    awards.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>Share Price.</I>&#160;&#160;On March&#160;8, 2011, the
    closing price of the Company&#146;s shares on NASDAQ was $75.54.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Effect of
    Termination of Employment or Service</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>Death; Disability or Retirement.</I>&#160;&#160;Except as
    otherwise specified in the related award agreement, in the event
    of a participant&#146;s death, disability or retirement (as such
    terms are defined in the 2011 Incentive Plan): (1)&#160;all
    exercisable awards may be exercised for the remainder of the
    term of such award (provided, however, that any incentive stock
    option that is not exercised within 12&#160;months following the
    participant&#146;s death, disability or retirement will be
    treated as a nonqualified stock option); (2)&#160;a pro rata
    portion of all unvested awards shall vest, as determined by the
    Committee in its sole discretion, based on the amount of time
    elapsed during the vesting period prior to the date of death,
    disability or retirement, or the attainment of the performance
    criteria over the portion of the performance period elapsed as
    of the date of death, disability or retirement; and (3)&#160;all
    awards that do not vest as described in (2), above, shall
    terminate and be forfeited as of the date of death, disability
    or retirement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>Termination for Cause.</I>&#160;&#160;Except as otherwise
    specified in the related award agreement, if a participant is
    terminated for Cause (as such term is defined in the 2011
    Incentive Plan), all awards, whether or not vested
    <FONT style="white-space: nowrap">and/or</FONT>
    exercisable, shall terminate and be forfeited as of the date of
    termination.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>Other Terminations.</I>&#160;&#160;Except as otherwise
    specified in the related award agreement, if a participant
    terminates for any other reason: (1)&#160;all exercisable awards
    may be exercised for the remainder of the term of such award
    (provided, however, that any incentive stock option that is not
    exercised within three months following the participant&#146;s
    termination will be treated as a nonqualified stock option); and
    (2)&#160;all unvested awards shall terminate and be forfeited as
    of the date of termination.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Change in
    Control</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Except as otherwise provided in the related award agreement, in
    the event of a change in control (as such term is defined in the
    2011 Incentive Plan), all outstanding awards shall become
    immediately vested and exercisable, and the Compensation
    Committee may take such actions, if any, as it deems necessary
    or desirable with respect to any such awards, including, without
    limitation, (1)&#160;the payment of a cash amount in exchange
    for the cancellation of an
</DIV>
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    award <FONT style="white-space: nowrap">and/or</FONT>
    (2)&#160;the issuance of substitute awards that substantially
    preserve the value, rights and benefits of any awards affected
    by the change in control.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Other
    Terms and Conditions</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>Transferability.</I>&#160;&#160;Except as otherwise provided
    in a related award agreement, a participant may not sell,
    transfer, pledge or assign an award, except by will or the laws
    of descent and distribution. In no event may it be transferred
    for value. During a participant&#146;s lifetime, only the
    participant or his or her guardian or legal representative may
    exercise an award.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>No Rights as a Shareholder.</I>&#160;&#160;Except as
    otherwise provided in the 2011 Incentive Plan or in a related
    award agreement, a participant will not have any rights as a
    shareholder with respect to shares covered by an award unless
    and until the participant becomes the record holder of such
    shares.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>Repricing.</I>&#160;&#160;Except for adjustments due to
    recapitalization, etc. as discussed above, the 2011 Incentive
    Plan expressly prohibits the Board or Compensation Committee
    from amending the terms of an outstanding award to reduce the
    exercise price of an outstanding stock option or stock
    appreciation right or cancel an outstanding stock option or
    stock appreciation right in exchange for cash or other awards
    (including stock options or stock appreciation rights) having an
    exercise price less than the exercise price of the original
    stock option or stock appreciation right, without shareholder
    approval.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>Effective Date and Term.</I>&#160;&#160;The 2011 Incentive
    Plan will become effective upon its approval by the shareholders
    and, unless earlier terminated, will continue until the tenth
    anniversary of the date of its approval by the shareholders
    (except that the Compensation Committee may not grant any
    incentive stock options after February&#160;17, 2021, the tenth
    anniversary of the date the 2011 Incentive Plan was approved by
    the Board).
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Amendment
    or Termination</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Board or Compensation Committee may amend or terminate the
    2011 Incentive Plan at any time, except that no amendment or
    termination may be made without shareholder approval if the
    amendment materially increases the benefits accruing to
    participants, the amendment materially increases the aggregate
    number of shares authorized for grant under the 2011 Incentive
    Plan (except for adjustments due to recapitalization, etc. as
    discussed above), the amendment materially modifies the
    eligibility requirements for participation or shareholder
    approval is required by any law, regulation or stock exchange
    rule.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">U.S.
    Federal Income Tax Consequences</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The following is a brief summary of the general
    U.S.&#160;federal income tax consequences relating to
    participation in the 2011 Incentive Plan. This summary is based
    on U.S.&#160;federal tax laws and Treasury Regulations in effect
    on the date of this Proxy Statement and does not purport to be a
    complete description of the U.S.&#160;federal income tax laws.
    In addition, this summary does not constitute tax advice or
    describe federal employment, state, local or foreign tax
    consequences. Each participant should consult with his or her
    tax advisor concerning the U.S.&#160;federal income tax and
    other tax consequences of participating in the 2011 Incentive
    Plan.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>Incentive Stock Options.</I>&#160;&#160;Incentive stock
    options are intended to qualify for special treatment available
    under Section&#160;422 of the Code. A participant will not
    recognize taxable income when an incentive stock option is
    granted and the Company will not receive a deduction at that
    time. A participant will not recognize ordinary income upon the
    exercise of an incentive stock option provided that the
    participant was, without a break in service, an employee of the
    Company or an affiliate during the period beginning on the grant
    date of the incentives stock option and ending on the date three
    months prior to the date of exercise (one year prior to the date
    of exercise if the participant&#146;s employment is terminated
    due to Disability).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    If the participant does not sell or otherwise dispose of the
    shares acquired upon the exercise of an incentive stock option
    within two years from the grant date of the incentive stock
    option or within one year after the participant receives the
    shares, then, upon disposition of such shares, any amount
    realized in excess of the exercise price will be taxed to the
    participant as a capital gain, and the Company will not be
    entitled to a corresponding
</DIV>
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    <BR>
    30
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    deduction. The participant generally will recognize a capital
    loss to the extent that the amount realized is less than the
    exercise price.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    If the foregoing holding period requirements are not met, the
    participant generally will recognize ordinary income at the time
    of the disposition of the shares in an amount equal to the
    lesser of (1)&#160;the excess of the fair market value of the
    shares on the date of exercise over the exercise price or
    (2)&#160;the excess, if any, of the amount realized upon
    disposition of the shares over the exercise price, and the
    Company will be entitled to a corresponding deduction. Any
    amount realized in excess of the value of the shares on the date
    of exercise will be capital gain. If the amount realized is less
    than the exercise price, the participant generally will
    recognize a capital loss equal to the excess of the exercise
    price over the amount realized upon the disposition of the
    shares.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The rules that generally apply to incentive stock options do not
    apply when calculating any alternative minimum tax liability.
    The rules affecting the application of the alternative minimum
    tax are complex, and their effect depends on individual
    circumstances, including whether a participant has items of
    adjustment other than those derived from incentive stock options.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>Nonqualified Stock Options.</I>&#160;&#160;A participant will
    not recognize any income when a nonqualified stock option is
    granted, and the Company will not receive a deduction at that
    time. However, when a nonqualified stock option is exercised, a
    participant will recognize ordinary income equal to the excess,
    if any, of the fair market value of the shares that the
    participant purchased on the date of exercise over the exercise
    price. If a participant uses shares or a combination of shares
    and cash to pay the exercise price of a nonqualified stock
    option, the participant will recognize ordinary income equal to
    the value of the excess of the number of shares that the
    participant purchases over the number of shares that the
    participant surrenders, less any cash the participant uses to
    pay the exercise price. When a nonqualified stock option is
    exercised, the Company will be entitled to a deduction equal to
    the ordinary income that the participant recognizes.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>Stock Appreciation Rights.</I>&#160;&#160;A participant will
    not recognize taxable income when a stock appreciation right is
    granted, and the Company will not receive a deduction at that
    time. When a stock appreciation right is exercised, a
    participant will recognize ordinary income equal to the excess
    of the cash
    <FONT style="white-space: nowrap">and/or</FONT> the
    fair market value of the shares the participant receives over
    the aggregate exercise price of the stock appreciation right, if
    any, and the Company will be entitled to a corresponding
    deduction.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>Restricted Stock.</I>&#160;&#160;Unless a participant makes
    an election under Section&#160;83(b) of the Code (a
    &#147;Section&#160;83(b) Election&#148;), the participant
    generally will not recognize taxable income when restricted
    stock is granted, and the Company will not receive a deduction
    at that time. Instead, a participant will recognize ordinary
    income when the restricted stock vests (i.e., when the
    underlying shares are either freely transferable or not subject
    to a substantial risk of forfeiture) equal to the fair market
    value of the shares that the participant receives when the
    terms, conditions and restrictions have been met, less any
    consideration paid for the restricted stock, and the Company
    generally will be entitled to a deduction equal to the income
    that the participant recognizes.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    If a participant makes a Section&#160;83(b) Election, the
    participant will recognize ordinary income on the grant date
    equal to the fair market value of the shares subject to the
    restricted stock award on the grant date, and the Company will
    be entitled to a deduction equal to the income that the
    participant recognizes at that time. The participant will not
    recognize income when (and if) the restricted stock vests.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>Other Stock-Based Awards.</I>&#160;&#160;Generally, a
    participant will not recognize taxable income when an other
    stock-based award is granted, and the Company will not receive a
    deduction at that time. However, upon the settlement of an other
    stock-based award, the participant will recognize ordinary
    income equal to the cash
    <FONT style="white-space: nowrap">and/or</FONT> fair
    market value of the shares that the participant receives, less
    the aggregate exercise price of the other stock-based award, if
    any. We generally will be entitled to a deduction equal to the
    income that the participant recognizes.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>Cash Awards.</I>&#160;&#160;A participant will not recognize
    ordinary income at the time a cash award is granted, and the
    Company will not be entitled to a deduction at that time. In
    general, a participant will recognize ordinary income when the
    cash award is settled equal to the amount of the cash received,
    and the Company will be entitled to a corresponding deduction.
</DIV>
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    <BR>
    31
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Miscellaneous
    Tax Consequences</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>Section&#160;162(m) of the Code.</I>&#160;&#160;Awards
    granted under the 2011 Incentive Plan may constitute qualified
    performance-based compensation under Section&#160;162(m) of the
    Code to preserve certain federal income tax deductions by the
    Company for Covered Employees. To so qualify, awards must be
    granted under the 2011 Incentive Plan by a committee consisting
    solely of two or more &#147;outside directors&#148; (as defined
    under applicable tax regulations) and satisfy the 2011
    Plan&#146;s limit on the total number of shares that may be
    awarded to any single participant during any fiscal year. In
    addition, for awards other than stock options and stock
    appreciation rights to constitute qualified performance-based
    compensation, the granting, vesting, exercisability or
    settlement of the award, as the case may be, must be contingent
    upon satisfying one or more of the performance criteria
    described above, as established and certified by a committee
    consisting solely of two or more &#147;outside directors.&#148;
    The Compensation Committee meets the composition requirements of
    Section&#160;162(m) of the Internal Revenue Code.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>Sections&#160;280G and 4999 of the
    Code.</I>&#160;&#160;Sections&#160;280G and 4999 of the Code
    impose penalties on &#147;excess parachute payments.&#148; An
    excess parachute payment occurs when payments are made to a
    &#147;disqualified individual&#148; (as defined under
    Section&#160;280G of the Code) in connection with a change in
    control in an amount equal to or greater than three times the
    disqualified individual&#146;s taxable compensation averaged
    over the five calendar years ending before the change in control
    (or over the entire period of employment if the participant has
    been employed less than five calendar years). This average is
    called the &#147;base amount.&#148; The excess parachute payment
    is the amount by which the payments exceed the
    participant&#146;s base amount.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Excess parachute payments subject to the disqualified individual
    to a 20% excise tax. This tax is in addition to other federal,
    state and local income, wage and employment taxes. The Company
    may not deduct the amount of any excess parachute payment, and
    the $1,000,000 limit on deductible compensation under
    Section&#160;162(m) of the Code is reduced by the amount of the
    excess parachute payment. Generally, any payments under the 2011
    Incentive Plan that may be subject to the loss of deduction or
    excise tax imposed by Sections&#160;280G or 4999 of the Code are
    reduced to the maximum amount that can be paid without resulting
    in a loss of deduction or the imposition of an excise tax.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>Section&#160;409A of the Code.</I>&#160;&#160;In 2004, the
    Internal Revenue Code was amended to add Section&#160;409A,
    which creates new rules for amounts deferred under nonqualified
    deferred compensation plans. Section&#160;409A includes a broad
    definition of nonqualified deferred compensation plans which may
    extend to various types of awards granted under the 2010 Plan.
    The proceeds of any award that is subject to Section&#160;409A
    are subject to a 20% excise tax if those proceeds are
    distributed before the recipient separates from service with us
    or before the occurrence of other specified events, such as
    death, disability or a change in control, all as defined in
    Section&#160;409A. The 2010 Plan has been drafted to comply with
    Section&#160;409A of the Code. The 2011 Incentive Plan is
    intended to comply with the requirements of Section&#160;409A of
    the Code and the Compensation Committee intends to administer
    the 2011 Incentive Plan to minimize the impact of
    Section&#160;409A of the Code.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">New Plan
    Benefits</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The following table sets forth the information regarding the
    only grant of restricted stock that has been authorized by the
    Compensation Committee under the 2011 Incentive Plan to date.
    The grant to Mr.&#160;Dillon is subject to shareholder approval
    of the 2011 Incentive Plan and the filing of a Registration
    Statement on
    <FONT style="white-space: nowrap">Form&#160;S-8</FONT>
    with the SEC. No other benefits or amounts have been granted,
    awarded or received under the 2011 Incentive Plan. Because
</DIV>
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    <BR>
    32
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    awards under the 2011 Incentive Plan are discretionary, except
    for Mr.&#160;Dillon&#146;s grant, no other awards are
    determinable at this time.
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">NEW PLAN
    BENEFITS<BR>
    2011 Equity and Cash Incentive Plan</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="69%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="6%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="6%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Number of<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Shares of<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Name and Title</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Dollar Value&#160;($)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Restricted Stock</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    R. H. Dillon<BR>
    CEO and President
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
    (1)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    100,000
</TD>
<TD nowrap align="left" valign="top">
    (2)
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    James F. Laird<BR>
    Chief Financial Officer
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    -0-
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    -0-
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Executive Group
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
    (1)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    100,000
</TD>
<TD nowrap align="left" valign="top">
    (2)
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Non-Executive Officer Employee Group
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    -0-
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    -0-
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    (1) </TD>
    <TD></TD>
    <TD valign="bottom">
    The fair value of the restricted stock award is not calculable
    until the date of grant.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (2) </TD>
    <TD></TD>
    <TD valign="bottom">
    It is anticipated that the restricted stock will vest on
    January&#160;1, 2016 if Mr.&#160;Dillon is employed by the
    Company on such date and if the cumulative operating profit of
    the Company for the period of January&#160;1, 2011 through
    December&#160;31, 2015 is in excess of $75,000,000. It is
    anticipated that, in the event the cumulative operating profit
    is less than $75,000,000, the grant will vest on a pro rata
    basis.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B>THE BOARD UNANIMOUSLY RECOMMENDS THAT YOU VOTE
    &#147;FOR&#148; THE APPROVAL AND ADOPTION OF THE 2011 INCENTIVE
    PLAN.</B>
</DIV>

<A name='L42120122'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">PROPOSAL&#160;4:<BR>
    ADVISORY VOTE ON THE COMPENSATION<BR>
    OF THE COMPANY&#146;S EXECUTIVE OFFICERS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Dodd-Frank Wall Street Reform and Consumer Protection Act,
    enacted in July 2010, requires that we provide our shareholders
    with the opportunity to vote to approve, on a non-binding,
    advisory basis, the compensation of our Company&#146;s executive
    officers as disclosed in this Proxy Statement in accordance with
    the SEC&#146;s rules.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    As described in detail in the section entitled, &#147;EXECUTIVE
    OFFICERS AND COMPENSATION INFORMATION&#148;, we believe that
    executive compensation should be linked with the Company&#146;s
    performance and significantly aligned with the interests of the
    Company&#146;s shareholders. In addition, our executive
    compensation is designed to allow the Company to retain and
    recognize the contributions of employees who play a significant
    role in the Company&#146;s current and future success. We urge
    you to read the Compensation Discussion and Analysis, the 2010
    Summary Compensation Table and the other related tables and
    disclosure for a detailed description of the fiscal year 2010
    compensation of our executive officers.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The vote on this resolution is not intended to address any
    specific element of compensation; rather, the advisory vote
    relates to the overall compensation of our executive officers.
    This vote is advisory and therefore not binding on the Company.
    However, the Board and the Compensation Committee will review
    the voting results and will take into account the outcome of the
    vote when determining future compensation for the Company&#146;s
    executive officers.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Accordingly, we ask our shareholders to vote on the following
    resolution:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    &#147;RESOLVED, that the Company&#146;s shareholders approve, on
    an advisory basis, the compensation of the executive officers,
    as disclosed in the Company&#146;s Proxy Statement for the 2011
    Annual Meeting of Shareholders pursuant to the compensation
    disclosure rules of the Securities and Exchange Commission,
    including the Compensation Discussion and Analysis, the 2010
    Summary Compensation Table and the other related tables and
    disclosure.&#148;
</DIV>
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    <BR>
    33
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B>THE BOARD UNANIMOUSLY RECOMMENDS THAT YOU VOTE
    &#147;FOR&#148; THE APPROVAL OF THE COMPENSATION OF OUR
    EXECUTIVE OFFICERS AS DISCLOSED IN THIS PROXY STATEMENT PURSUANT
    TO THE COMPENSATION DISCLOSURE RULES&#160;OF THE SEC.</B>
</DIV>

<A name='L42120123'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">PROPOSAL&#160;5:<BR>
    ADVISORY VOTE ON THE FREQUENCY WITH WHICH TO HOLD AN ADVISORY
    VOTE<BR>
    ON THE COMPENSATION OF THE COMPANY&#146;S EXECUTIVE
    OFFICERS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Dodd-Frank Wall Street Reform and Consumer Protection Act
    also provides that shareholders must be given the opportunity to
    indicate their preference, on a non-binding, advisory basis, at
    least once every six years, as to how frequently the Company
    should seek an advisory vote on executive compensation. By
    voting on this Proposal&#160;No.&#160;5, you may indicate
    whether you would prefer that the Company seek future executive
    compensation advisory votes once every one, two or three years.
    You may also, if you wish, abstain from casting a vote on this
    proposal.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Board has determined that an annual advisory vote on
    executive compensation is currently the most appropriate
    alternative for the Company. Therefore our Board recommends that
    you vote for an annual advisory vote on executive compensation.
    In determining to recommend that the shareholders select a
    frequency of once a year, the Board considered that compensation
    decisions are currently made on an annual basis and therefore an
    annual
    <FONT style="white-space: nowrap">&#147;say-on-pay&#148;</FONT>
    voting aligns shareholder feedback with management decision
    making.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Shareholders may vote on their preferred voting frequency by
    selecting the option of One Year, Two Years, Three Years or
    Abstain on the proxy card when voting on this
    Proposal&#160;No.&#160;5. Please note that when casting a vote
    on this proposal, you will not be voting to approve or
    disapprove the Board&#146;s recommendation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The option of one year, two years or three years that receives
    the highest number of votes cast by shareholders will be the
    shareholder-approved frequency selection for the advisory vote
    on executive compensation. However, because this vote is
    advisory and not binding on the Board or the Company, the Board
    may decide that it is in the best interests of our shareholders
    and the Company to hold an advisory vote on executive
    compensation more or less frequently than the option receiving
    the most votes cast by our shareholders.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B>THE BOARD UNANIMOUSLY RECOMMENDS THAT YOU VOTE
    &#147;FOR&#148; AN ANNUAL ADVISORY VOTE ON THE COMPENSATION OF
    THE COMPANY&#146;S EXECUTIVE OFFICERS.</B>
</DIV>

<A name='L42120124'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">SHAREHOLDER
    COMMUNICATIONS WITH THE BOARD OF DIRECTORS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Given the Company&#146;s relatively small size, the relatively
    small number of record shareholders, and the Board&#146;s
    consistent practice of being open to receiving direct
    communications from shareholders, the Board believes that it is
    not necessary to implement, and the Company does not have, a
    formal process for shareholders to send communications to the
    Board. The Company&#146;s practice is to forward any
    communication addressed to the full Board to the Chairman, to a
    group of directors to a member of the group, or to an individual
    director, to that person.
</DIV>

<A name='L42120125'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">SHAREHOLDER
    PROPOSALS&#160;FOR 2012 ANNUAL MEETING</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Shareholders are entitled to submit proposals on matters
    appropriate for shareholder action consistent with SEC rules and
    our Code of Regulations. Should a shareholder wish to have a
    proposal appear in the Proxy Statement for next year&#146;s
    annual meeting, under applicable SEC rules, the proposal must be
    received by the Company&#146;s Secretary on or before
    November&#160;11, 2011, and must otherwise comply with the
    requirements of
    <FONT style="white-space: nowrap">Rule&#160;14a-8</FONT>
    of the Exchange Act. If a shareholder intends to present a
    proposal at next year&#146;s annual meeting but does not intend
    to seek the inclusion of such proposal in our Proxy Statement,
    such proposal must be received by the Company prior to
    January&#160;25, 2012, or management proxies will be entitled to
    use discretionary voting authority should such proposal be
    raised without any discussion of the matter in the Proxy
    Statement. The Company&#146;s address is 325 John H. McConnell
    Boulevard, Suite&#160;200, Columbus, Ohio 43215.
</DIV>
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    <BR>
    34
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<A name='L42120126'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">SHAREHOLDERS
    SHARING THE SAME ADDRESS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The SEC has implemented rules regarding the delivery of proxy
    materials (i.e., annual reports, proxy statements, proxy
    statements combined with a prospectus or any information
    statements provided to shareholders) to households. This method
    of delivery, often referred to as &#147;householding,&#148;
    would generally permit the Company to send a single annual
    report and a single proxy statement to any household at which
    two or more different shareholders reside if the Company
    believes such shareholders share the same address, unless the
    shareholder(s) have opted out of the householding process. Each
    shareholder would continue to receive a separate notice of any
    meeting of shareholders and proxy card. The householding
    procedure reduces the volume of duplicate information you
    receive and reduces expenses. The Company has instituted
    householding. If (i)&#160;you wish to receive separate annual
    reports or proxy statements, either this year or in the future,
    or (ii)&#160;members of your household receive multiple copies
    of the annual report and proxy statement and you wish to request
    householding, you may contact the Company&#146;s transfer agent,
    Continental Stock Transfer&#160;&#038; Trust&#160;Company at 17
    Battery Place, New York, New York 10004, or write to
    Mr.&#160;James Laird at 325 John H. McConnell Boulevard,
    Suite&#160;200, Columbus, Ohio 43215.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    In addition, many brokerage firms and other holders of record
    have instituted householding. If your family has one or more
    &#147;street name&#148; accounts under which our shares are
    beneficially owned, you may have received householding
    information from your broker, financial institution or other
    nominee in the past. Please contact the holder of record
    directly if you have questions, require additional copies of
    this Proxy Statement or Annual Report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    or wish to revoke your decision to household and thereby receive
    multiple copies. You should also contact the holder of record if
    you wish to institute householding. These options are available
    to you at any time.
</DIV>

<A name='L42120127'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">OTHER
    BUSINESS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Board knows of no other business to be acted upon at the
    Annual Meeting. However, if any other business properly comes
    before the Annual Meeting, it is the intention of the persons
    named in the enclosed Proxy to vote on such matters in
    accordance with their best judgment.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The prompt completion, execution, and delivery of your proxy
    card or your submission of voting instructions electronically
    over the Internet or by telephone will be appreciated. Whether
    or not you expect to attend the Annual Meeting, please complete
    and sign the Proxy and return it in the enclosed envelope, or
    vote your proxy electronically via the Internet or
    telephonically.
</DIV>

<DIV style="margin-top: 24pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 49%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    By Order of the Board of Directors
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 49%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <IMG src="l42120l4212002.gif" alt="-s- James F. Laird">
</DIV>

<DIV align="left" style="margin-left: 49%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    James F. Laird
</DIV>

<DIV align="left" style="margin-left: 49%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Secretary
</DIV>
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    <BR>
    35
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<A name='L42120128'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="right" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Appendix&#160;A</FONT></B>
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

</DIV>
</A>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 14pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">DIAMOND
    HILL INVESTMENT GROUP, INC.<BR>
    <FONT style="font-size: 12pt">2011 EQUITY AND CASH INCENTIVE
    PLAN</FONT></FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The purpose of the Plan is to promote the Company&#146;s
    long-term financial success and increase shareholder value by
    motivating performance through incentive compensation. The Plan
    also is intended to encourage Participants to acquire ownership
    interests in the Company, attract and retain talented employees
    and directors and enable Participants to participate in the
    Company&#146;s long-term growth and financial success.
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">ARTICLE&#160;I<BR>
    DEFINITIONS</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    When used in the Plan, the following capitalized words, terms
    and phrases shall have the meanings set forth in this
    Article&#160;I. For purposes of the Plan, the form of any word,
    term or phrase shall include any and all of its other forms.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    1.1&#160;<I>&#147;Act&#148;</I> shall mean the Securities
    Exchange Act of 1934, as amended from time to time, or any
    successor thereto.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    1.2&#160;<I>&#147;Affiliate&#148; </I>shall mean any entity with
    whom the Company would be considered a single employer under
    Section&#160;414(b) or (c)&#160;of the Code, but modified as
    permitted under any Code section relevant to the purpose for
    which the definition is applied.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    1.3&#160;<I>&#147;Award&#148; </I>shall mean any Nonqualified
    Stock Option, Incentive Stock Option, Stock Appreciation Right,
    Restricted Stock, Other Stock-Based Award or Cash-Based Award
    granted pursuant to the Plan.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    1.4&#160;<I>&#147;Award Agreement&#148; </I>shall mean any
    written or electronic agreement between the Company and a
    Participant that describes the terms and conditions of an Award.
    If there is a conflict between the terms of the Plan and the
    terms of an Award Agreement, the terms of the Plan shall govern.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    1.5&#160;<I>&#147;Board&#148; </I>shall mean the Board of
    Directors of the Company.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    1.6&#160;<I>&#147;Cash-Based Award&#148; </I>shall mean a cash
    Award granted pursuant to Article&#160;IX of the Plan.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    1.7&#160;<I>&#147;Cause&#148; </I>shall mean, unless otherwise
    provided in the related Award Agreement or in any employment
    agreement between the Participant and the Company or any
    Affiliate or in any other agreement between the Participant and
    the Company or any Affiliate, a Participant&#146;s:
    (a)&#160;willful and continued failure to substantially perform
    the Participant&#146;s assigned duties; (b)&#160;gross
    misconduct; (c)&#160;breach of any term of any agreement with
    the Company or any Affiliate, including the Plan and any Award
    Agreement; (d)&#160;conviction of (or plea of no contest or nolo
    contendere to) (i)&#160;a felony or a misdemeanor that
    originally was charged as a felony but which was subsequently
    reduced to a misdemeanor through negotiation with the charging
    entity or (ii)&#160;a crime other than a felony, which involves
    a breach of trust or fiduciary duty owed to the Company, any
    Affiliate or any client of the Company or any Affiliate; or
    (e)&#160;violation of the Company&#146;s code of conduct, Code
    of Ethics, Insider Trading Policy or any other policy of the
    Company or any Affiliate that applies to the Participant.
    Notwithstanding the foregoing, Cause will not arise solely
    because the Participant is absent from active employment during
    periods of vacation, consistent with the Company&#146;s
    applicable vacation policy, or other period of absence approved
    by the Company.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    1.8&#160;<I>&#147;Change in Control&#148; </I>shall mean, unless
    otherwise provided in any employment agreement between the
    Participant and the Company or any Affiliate or in any other
    agreement between the Participant and the Company or any
    Affiliate, the occurrence of any of the following:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    (i)&#160;Any &#147;person&#148; (as such term is used in
    Sections&#160;13(d) and 14(d) of the Act) becomes the
    &#147;beneficial owner&#148; (as defined in
    <FONT style="white-space: nowrap">Rule&#160;13d-3</FONT>
    of the Act), directly or indirectly, of securities of the
    Company representing 50% or more of the total voting power
    represented by the Company&#146;s then outstanding voting
    securities;
</DIV>
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    <BR>
    A-1
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    (ii)&#160;The consummation of the sale or disposition by the
    Company of all or substantially all of the Company&#146;s assets;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    (iii)&#160;A change in the composition of the Board occurring
    within a two-year period, as a result of which fewer than a
    majority of the directors are Incumbent Directors;&#160;or
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    (iv)&#160;The consummation of a merger or consolidation of the
    Company with any other corporation, other than a merger or
    consolidation which would result in the voting securities of the
    Company outstanding immediately prior thereto continuing to
    represent (either by remaining outstanding or by being converted
    into voting securities of the surviving entity or its parent) at
    least 50% of the total voting power represented by the voting
    securities of the Company or such surviving entity or its parent
    outstanding immediately after such merger or consolidation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Notwithstanding the foregoing, with respect to the payment,
    exercise or settlement of any Award that is subject to
    Section&#160;409A of the Code (and for which no exception
    applies), a Change in Control must also constitute a
    &#147;change in control event&#148; within the meaning of
    Section&#160;409A of the Code.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    1.9&#160;<I>&#147;Code&#148; </I>shall mean the Internal Revenue
    Code of 1986, as amended from time to time, or any successor
    thereto. Where appropriate, a reference to the Code shall also
    include the applicable Treasury Regulations and other official
    guidance promulgated thereunder.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    1.10&#160;<I>&#147;Committee&#148; </I>shall mean the
    Compensation Committee of the Board, which will be comprised of
    at least two directors, each of whom is an &#147;outside
    director,&#148; within the meaning of Section&#160;162(m) of the
    Code, a &#147;non-employee&#148; director within the meaning of
    <FONT style="white-space: nowrap">Rule&#160;16b-3</FONT>
    under the Act, and an &#147;independent director&#148; under the
    rules of the exchange on which the Shares are listed.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    1.11&#160;<I>&#147;Company&#148; </I>shall mean Diamond Hill
    Investment Group, Inc., an Ohio corporation, and any successor
    thereto.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    1.12&#160;<I>&#147;Covered Employee&#148; </I>shall mean a
    &#147;covered employee&#148; within the meaning of
    Section&#160;162(m) of the Code.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    1.13&#160;<I>&#147;Director&#148; </I>shall mean a person who is
    a member of the Board, excluding any member who is an Employee.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    1.14&#160;<I>&#147;Disability&#148; </I>shall mean, with respect
    to:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    (a)&#160;An Incentive Stock Option, &#147;disability&#148; as
    defined in Section&#160;22(e)(3) of the Code;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    (b)&#160;The payment, exercise or settlement of any Award that
    is (or becomes) subject to Section&#160;409A of the Code (and
    for which no exception applies): (i)&#160;the Participant is
    unable to engage in any substantial gainful activity by reason
    of any medically determinable physical or mental impairment that
    can be expected to result in death or can be expected to last
    for a continuous period of not less than 12&#160;months;
    (ii)&#160;the Participant is, by reason of any medically
    determinable physical or mental impairment that can be expected
    to result in death or can be expected to last for a continuous
    period of not less than 12&#160;months, receiving income
    replacement benefits for a period of not less than three months
    under an accident and health plan covering Employees of the
    Participant&#146;s employer; or (iii)&#160;the Participant is
    determined to be totally disabled by the Social Security
    Administration;&#160;and
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    (c)&#160;A Participant&#146;s right to exercise or receive
    settlement of any Award or with respect to the payment, exercise
    or settlement of any Award not described in subsection&#160;(a)
    or (b)&#160;of this definition, a Participant&#146;s inability
    (established by an independent physician selected by the
    Committee) due to illness, accident or otherwise to perform his
    or her duties, which is expected to be permanent or for an
    indefinite duration longer than 12&#160;months.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    1.15&#160;<I>&#147;Employee&#148; </I>shall mean any person who
    is a common law employee of the Company or any Affiliate. A
    person who is classified as other than a common law employee but
    who is subsequently reclassified as a common law employee of the
    Company or any Affiliate for any reason and on any basis shall
    be treated as a common law employee only from the date that
    reclassification occurs and shall not retroactively be
    reclassified as an Employee for any purpose under the Plan.
</DIV>
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    <BR>
    A-2
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    1.16&#160;<I>&#147;Fair Market Value&#148; </I>shall mean the
    value of one Share on any relevant date, determined under the
    following rules:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    (a)&#160;If the Shares are traded on an exchange, the reported
    &#147;closing price&#148; on the relevant date if it is a
    trading day, otherwise on the next trading day;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    (b)&#160;If the Shares are traded
    <FONT style="white-space: nowrap">over-the-counter</FONT>
    with no reported closing price, the mean between the lowest bid
    and the highest asked prices on that quotation system on the
    relevant date if it is a trading day, and if the relevant date
    is not a trading day, then on the next trading day;&#160;or
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    (c)&#160;If neither (a)&#160;nor (b)&#160;applies, (i)&#160;with
    respect to Options, Stock Appreciation Rights and any Award that
    is subject to Section&#160;409A of the Code, the value as
    determined by the Committee through the reasonable application
    of a reasonable valuation method, taking into account all
    information material to the value of the Company, within the
    meaning of Section&#160;409A of the Code, and (ii)&#160;with
    respect to all other Awards, the fair market value as determined
    by the Committee in good faith.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    1.17&#160;<I>&#147;Incentive Stock Option&#148; </I>shall mean
    an Option that is intended to meet the requirements of
    Section&#160;422 of the Code.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    1.18&#160;<I>&#147;Nonqualified Stock Option&#148; </I>shall
    mean an Option that is not intended to be an Incentive Stock
    Option.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    1.19&#160;<I>&#147;Option&#148; </I>shall mean an option to
    purchase Shares which is granted pursuant to Article&#160;V of
    the Plan. An Option may be either an Incentive Stock Option or a
    Nonqualified Stock Option.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    1.20&#160;<I>&#147;Other Stock-Based Award&#148; </I>shall mean
    an Award granted pursuant to Article&#160;VIII of the Plan.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    1.21&#160;<I>&#147;Participant&#148; </I>shall mean an Employee
    or Director who is granted an Award under the Plan.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    1.22&#160;<I>&#147;Performance-Based Award&#148; </I>shall mean
    an Award described in Article&#160;X of the Plan.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    1.23&#160;<I>&#147;Performance Criteria&#148; </I>shall mean:
    (a)&#160;with respect to a Participant who is or is likely to be
    a Covered Employee, the performance criteria described in
    Section&#160;10.2(a) of the Plan; and (b)&#160;with respect to
    any other Participant, any performance criteria determined by
    the Committee in its sole discretion.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    1.24&#160;<I>&#147;Plan&#148; </I>shall mean the Diamond Hill
    Investment Group, Inc. 2011 Equity and Cash Incentive Plan, as
    set forth herein and as may be amended from time to time.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    1.25&#160;<I>&#147;Preexisting Plan&#148; </I>shall mean the
    Diamond Hill Investment Group, Inc. Amended and Restated 2005
    Employee and Director Equity Incentive Plan. Upon approval by
    the Plan by the Company&#146;s shareholders, no further awards
    will be issued under the Preexisting Plan, although the
    Preexisting Plan will remain in effect after the Company&#146;s
    shareholders approve the Plan for purposes of determining any
    grantee&#146;s right to awards issued under the Preexisting Plan
    before that date.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    1.26&#160;<I>&#147;Restricted Stock&#148; </I>shall mean an
    Award granted pursuant to Article&#160;VII of the Plan under
    which a Participant is issued Shares which are subject to
    specified restrictions on vesting and transferability.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    1.27&#160;<I>&#147;Retirement&#148; </I>shall mean, unless
    otherwise provided in the related Award Agreement or in any
    employment agreement between the Participant and the Company or
    any Affiliate or in any other agreement between the Participant
    and the Company or any Affiliate, a Participant&#146;s voluntary
    termination of employment or that is determined to constitute a
    &#147;retirement&#148; by the Board.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    1.28&#160;<I>&#147;Shares&#148; </I>shall mean the common
    shares, without par value, of the Company or any security of the
    Company issued in satisfaction, exchange or in place of these
    shares.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    1.29&#160;<I>&#147;Stock Appreciation Right&#148; </I>shall mean
    an Award granted pursuant to Article&#160;VI of the Plan.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    1.30&#160;<I>&#147;Subsidiary&#148; </I>shall mean with respect
    to an Incentive Stock Option, a &#147;subsidiary
    corporation&#148; as defined under Section&#160;424(f) of the
    Code.
</DIV>
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    <BR>
    A-3
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    <B><FONT style="font-family: 'Times New Roman', Times">ARTICLE&#160;II<BR>
    SHARES&#160;SUBJECT TO THE PLAN</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    2.1&#160;<I>Number of Shares&#160;Available for
    Awards.</I>&#160;&#160;Subject to this Article&#160;II, the
    aggregate number of Shares with respect to which Awards may be
    granted under the Plan shall be 600,000, all of which may be
    granted with respect to Incentive Stock Options. The Shares may
    consist, in whole or in part, of treasury Shares, authorized but
    unissued Shares not reserved for any other purpose or Shares
    purchased by the Company or an independent agent in either a
    private transaction or in the open market. Subject to this
    Article&#160;II, upon the grant of an Award, the number of
    Shares available for issuance under the Plan shall be reduced by
    an amount equal to the number of Shares subject to such Award,
    and any Shares underlying such an Award that become available
    for future grant under the Plan pursuant to Section&#160;2.2
    shall be added back to the Plan in an amount equal to the number
    of Shares subject to such an Award that become available for
    future grant under the Plan pursuant to Section&#160;2.2.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    2.2&#160;<I>Share Usage.</I>&#160;&#160;In addition to the
    number of Shares provided for in Section&#160;2.1, the following
    Shares shall be available for Awards under the Plan:
    (a)&#160;Shares covered by an Award that expires or is
    forfeited, canceled, surrendered or otherwise terminated without
    the issuance of such Shares; (b)&#160;Shares covered by an Award
    that is settled only in cash or for less than the full number of
    Shares subject to the Award; (c)&#160;Shares granted through the
    assumption of, or in substitution for, outstanding awards
    granted by a company to individuals who become Employees or
    Directors as the result of a merger, consolidation, acquisition
    or other corporate transaction involving such company and the
    Company or any of its Affiliates; (d)&#160;any Shares from
    awards exercised for or settled in vested and nonforfeitable
    Shares that are later returned to the Company pursuant to any
    compensation recoupment policy, provision or agreement; and
    (e)&#160;any Shares surrendered upon exercise of an Award as
    payment of the applicable exercise price or withheld to satisfy
    any applicable taxes.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    2.3&#160;<I>Fiscal Year Limits.</I>&#160;&#160;Subject to
    Section&#160;2.4 and unless and until the Committee determines
    that an Award to a Covered Employee shall not be designated as
    &#147;qualified performance-based compensation&#148; under
    Section&#160;162(m) of the Code, during any fiscal year of the
    Company, the Committee may not grant to any Participant:
    (a)&#160;Options covering more than 100,000&#160;Shares;
    (b)&#160;Stock Appreciation Rights covering more than
    100,000&#160;Shares; (c)&#160;more than 100,000&#160;Shares of
    Restricted Stock; (d)&#160;Other Stock-Based Awards covering
    more than 100,000&#160;Shares; (e)&#160;Cash-Based Awards with a
    value in excess of $5,000,000; (f)&#160;Performance-Based Awards
    that are to be settled in Shares covering more than
    100,000&#160;Shares; and (g)&#160;Performance-Based Awards that
    are to be settled in cash in excess of $5,000,000.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    2.4&#160;<I>Adjustments.</I>&#160;&#160;In the event of any
    Share dividend, Share split, recapitalization (including payment
    of an extraordinary dividend), merger, reorganization,
    consolidation, combination, spin-off, distribution of assets to
    shareholders, exchange of Shares or any other change affecting
    the Shares, the Committee shall make such substitutions and
    adjustments, if any, as it deems equitable and appropriate to:
    (a)&#160;the aggregate number of Shares that may be issued under
    the Plan; (b)&#160;any Share-based limits imposed under the
    Plan; and (c)&#160;the exercise price, number of Shares and
    other terms or limitations applicable to outstanding Awards.
    Notwithstanding the foregoing, an adjustment pursuant to this
    Section&#160;2.4 shall be made only to the extent such
    adjustment complies, to the extent applicable, with
    Section&#160;409A of the Code.
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">ARTICLE&#160;III<BR>
    ADMINISTRATION</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    3.1&#160;<I>In General.</I>&#160;&#160;The Plan shall be
    administered by the Committee. The Committee shall have full
    power and authority to: (a)&#160;interpret the Plan and any
    Award Agreement; (b)&#160;establish, amend and rescind any rules
    and regulations relating to the Plan; (c)&#160;select
    Participants; (d)&#160;establish the terms and conditions of any
    Award consistent with the terms and conditions of the Plan,
    including when the Award may vest and, if applicable, be
    exercised, the acceleration of any such dates and the expiration
    of the Award; and (e)&#160;make any other determinations that it
    deems necessary or desirable for the administration of the Plan.
    The Committee may correct any defect, supply any omission or
    reconcile any inconsistency in the Plan or in any Award
    Agreement in the manner and to the extent the Committee deems
    necessary or desirable. Any decision of the Committee in the
    interpretation and administration of the Plan shall be made in
    the Committee&#146;s sole and absolute discretion and shall be
    final, conclusive and binding on all persons.
</DIV>
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    <BR>
    A-4
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    3.2&#160;<I>Delegation of Duties.</I>&#160;&#160;In its sole
    discretion, the Committee may delegate any ministerial duties
    associated with the Plan to any person (including Employees) it
    deems appropriate; provided, however, that the Committee may not
    delegate (a)&#160;any duties that it is required to discharge to
    comply with Section&#160;162(m) of the Code or any other
    applicable law; (b)&#160;its authority to grant Awards to any
    Participant who is subject to Section&#160;16 of the Act; and
    (c)&#160;its authority under any equity award granting policy of
    the Company that may be in effect from time to time.
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">ARTICLE&#160;IV<BR>
    ELIGIBILITY</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Any Employee or Director selected by the Committee shall be
    eligible to be a Participant in the Plan; provided, however,
    that Incentive Stock Options shall only be granted to Employees
    who are employed by the Company or a Subsidiary.
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">ARTICLE&#160;V<BR>
    OPTIONS</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    5.1&#160;<I>Grant of Options.</I>&#160;&#160;Subject to the
    terms and conditions of the Plan, Options may be granted to
    Participants in such number, and upon such terms and conditions,
    as shall be determined by the Committee in its sole discretion.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    5.2&#160;<I>Award Agreement.</I>&#160;&#160;Each Option shall be
    evidenced by an Award Agreement that shall specify the exercise
    price, the term of the Option, the number of Shares covered by
    the Option, the conditions upon which the Option shall become
    vested and exercisable and such other terms and conditions as
    the Committee shall determine and which are not inconsistent
    with the terms and conditions of the Plan. The Award Agreement
    also shall specify whether the Option is intended to be an
    Incentive Stock Option or a Nonqualified Stock Option.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    5.3&#160;<I>Exercise Price.</I>&#160;&#160;The exercise price
    per Share of an Option shall be determined by the Committee at
    the time the Option is granted; provided, however, that in no
    event shall the exercise price per Share of any Option be less
    than 100% of the Fair Market Value of a Share on the date of
    grant.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    5.4&#160;<I>Term.</I>&#160;&#160;The term of an Option shall be
    determined by the Committee; provided, however, that in no event
    shall the term of any Option exceed ten years from its date of
    grant.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    5.5&#160;<I>Exercisability.</I>&#160;&#160;Options shall become
    exercisable at such times and upon such terms and conditions as
    shall be determined by the Committee. Such terms and conditions
    may include, without limitation, the satisfaction of
    (a)&#160;performance goals based on one or more Performance
    Criteria; and (b)&#160;time-based vesting requirements.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    5.6&#160;<I>Exercise of Options.</I>&#160;&#160;Except as
    otherwise provided in the Plan or in a related Award Agreement,
    an Option may be exercised for all or any portion of the Shares
    for which it is then exercisable. An Option shall be exercised
    by the delivery of a notice of exercise to the Company or its
    designee in a form specified by the Committee which sets forth
    the number of Shares with respect to which the Option is to be
    exercised and full payment of the exercise price for such
    Shares. The exercise price of an Option may be paid: (a)&#160;in
    cash or its equivalent; (b)&#160;by tendering (either by actual
    delivery or attestation) previously acquired Shares having an
    aggregate Fair Market Value at the time of exercise equal to the
    aggregate exercise price; provided that such Shares had been
    held for at least six months or such other period required to
    obtain favorable accounting treatment and to comply with the
    requirements of Section&#160;16 of the Act; (c)&#160;by a
    cashless exercise (including by withholding Shares deliverable
    upon exercise and through a broker-assisted arrangement to the
    extent permitted by applicable law); (d)&#160;by a combination
    of the methods described in clauses (a), (b)&#160;and/or (c); or
    (e)&#160;though any other method approved by the Committee in
    its sole discretion. As soon as practicable after receipt of the
    notification of exercise and full payment of the exercise price,
    the Company shall cause the appropriate number of Shares to be
    issued to the Participant.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    5.7&#160;<I>Special Rules&#160;Applicable to Incentive Stock
    Options.</I>&#160;&#160;Notwithstanding any other provision in
    the Plan to the contrary:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    (a)&#160;The terms and conditions of Incentive Stock Options
    shall be subject to and comply with the requirements of
    Section&#160;422 of the Code.
</DIV>
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    <BR>
    A-5
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    (b)&#160;The aggregate Fair Market Value of the Shares
    (determined as of the date of grant) with respect to which
    Incentive Stock Options are exercisable for the first time by
    any Participant during any calendar year (under all plans of the
    Company and its Subsidiaries) may not be greater than $100,000
    (or such other amount specified in Section&#160;422 of the
    Code), as calculated under Section&#160;422 of the Code.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    (c)&#160;No Incentive Stock Option shall be granted to any
    Participant who, at the time the Incentive Stock Option is
    granted, owns shares possessing more than 10% of the total
    combined voting power of all classes of stock of the Company or
    of any Subsidiary, unless (i)&#160;the exercise price of such
    Incentive Stock Option is at least 110% of the Fair Market Value
    of a Share on the date the Incentive Stock Option is granted and
    (ii)&#160;the date on which such Incentive Stock Option will
    expire is not later than five years from the date the Incentive
    Stock Option is granted.
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">ARTICLE&#160;VI<BR>
    STOCK APPRECIATION RIGHTS</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    6.1&#160;<I>Grant of Stock Appreciation
    Rights.</I>&#160;&#160;Subject to the terms and conditions of
    the Plan, Stock Appreciation Rights may be granted to
    Participants in such number, and upon such terms and conditions,
    as shall be determined by the Committee in its sole discretion.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    6.2&#160;<I>Award Agreement.</I>&#160;&#160;Each Stock
    Appreciation Right shall be evidenced by an Award Agreement that
    shall specify the exercise price, the term of the Stock
    Appreciation Right, the number of Shares covered by the Stock
    Appreciation Right, the conditions upon which the Stock
    Appreciation Right shall become vested and exercisable and such
    other terms and conditions as the Committee shall determine and
    which are not inconsistent with the terms and conditions of the
    Plan.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    6.3&#160;<I>Exercise Price.</I>&#160;&#160;The exercise price
    per Share of a Stock Appreciation Right shall be determined by
    the Committee at the time the Stock Appreciation Right is
    granted; provided, however, that in no event shall the exercise
    price per Share of any Stock Appreciation Right be less than
    100% of the Fair Market Value of a Share on the date of grant.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    6.4&#160;<I>Term.</I>&#160;&#160;The term of a Stock
    Appreciation Right shall be determined by the Committee;
    provided however, that in no event shall the term of any Stock
    Appreciation Right exceed ten years from its date of grant.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    6.5&#160;<I>Exercisability of Stock Appreciation
    Rights.</I>&#160;&#160;A Stock Appreciation Right shall become
    exercisable at such times and upon such terms and conditions as
    may be determined by the Committee. Such terms and conditions
    may include, without limitation, the satisfaction of
    (a)&#160;performance goals based on one or more Performance
    Criteria; and (b)&#160;time-based vesting requirements.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    6.6&#160;<I>Exercise of Stock Appreciation
    Rights.</I>&#160;&#160;Except as otherwise provided in the Plan
    or in a related Award Agreement, a Stock Appreciation Right may
    be exercised for all or any portion of the Shares for which it
    is then exercisable. A Stock Appreciation Right shall be
    exercised by the delivery of a notice of exercise to the Company
    or its designee in a form specified by the Committee which sets
    forth the number of Shares with respect to which the Stock
    Appreciation Right is to be exercised. Upon exercise, a Stock
    Appreciation Right shall entitle a Participant to an amount
    equal to (a)&#160;the excess of (i)&#160;the Fair Market Value
    of a Share on the exercise date over (ii)&#160;the exercise
    price per Share, multiplied by (b)&#160;the number of Shares
    with respect to which the Stock Appreciation Right is exercised.
    A Stock Appreciation Right may be settled in full Shares, cash
    or a combination thereof, as specified by the Committee in the
    related Award Agreement.
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">ARTICLE&#160;VII<BR>
    RESTRICTED STOCK</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    7.1&#160;<I>Grant of Restricted Stock.</I>&#160;&#160;Subject to
    the terms and conditions of the Plan, Shares of Restricted Stock
    may be granted to Participants in such number, and upon such
    terms and conditions, as shall be determined by the Committee in
    its sole discretion.
</DIV>
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    <BR>
    A-6
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    7.2&#160;<I>Award Agreement.</I>&#160;&#160;Each Restricted
    Stock Award shall be evidenced by an Award Agreement that shall
    specify the number of Shares of Restricted Stock, the restricted
    period(s) applicable to the Shares of Restricted Stock, the
    conditions upon which the restrictions on the Shares of
    Restricted Stock will lapse and such other terms and conditions
    as the Committee shall determine and which are not inconsistent
    with the terms and conditions of the Plan.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    7.3&#160;<I>Terms, Conditions and Restrictions</I>.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    (a)&#160;The Committee shall impose such other terms, conditions
    <FONT style="white-space: nowrap">and/or</FONT>
    restrictions on any Shares of Restricted Stock as it may deem
    advisable, including, without limitation, a requirement that the
    Participant pay a purchase price for each Share of Restricted
    Stock, restrictions based on the achievement of specific
    performance goals (which may be based on one or more Performance
    Criteria), time-based restrictions, holding requirements or sale
    restrictions placed on the Shares by the Company upon vesting of
    such Restricted Stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    (b)&#160;To the extent deemed appropriate by the Committee, the
    Company may retain the certificates representing Shares of
    Restricted Stock in the Company&#146;s possession until such
    time as all terms, conditions
    <FONT style="white-space: nowrap">and/or</FONT>
    restrictions applicable to such Shares have been satisfied or
    lapse.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    (c)&#160;Unless otherwise provided in the related Award
    Agreement or required by applicable law or as determined by the
    Committee, the restrictions imposed on Shares of Restricted
    Stock shall lapse upon the expiration or termination of the
    applicable restricted period and the satisfaction of any other
    applicable terms and conditions.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    7.4&#160;<I>Rights Associated with Restricted Stock during
    Restricted Period.</I>&#160;&#160;During any restricted period
    applicable to Shares of Restricted Stock:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    (a)&#160;Such Shares of Restricted Stock may not be sold,
    transferred, pledged, assigned or otherwise alienated or
    hypothecated.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    (b)&#160;Unless otherwise provided in the related Award
    Agreement: (i)&#160;the Participant shall be entitled to
    exercise full voting rights associated with such Shares of
    Restricted Stock; and (ii)&#160;the Participant shall be
    entitled to all dividends and other distributions paid with
    respect to such Shares of Restricted Stock during the restricted
    period; provided, however, that receipt of any such dividends or
    other distributions will be subject to the same terms and
    conditions as the Shares of Restricted Stock with respect to
    which they are paid.
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">ARTICLE&#160;VIII<BR>
    OTHER STOCK-BASED AWARDS</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    8.1&#160;<I>Grant of Other Stock-Based
    Awards.</I>&#160;&#160;Subject to the terms and conditions of
    the Plan, Other Stock-Based Awards may be granted to
    Participants in such number, and upon such terms and conditions,
    as shall be determined by the Committee in its sole discretion.
    Other Stock-Based Awards are Awards that are valued in whole or
    in part by reference to, or otherwise based on the Fair Market
    Value of, the Shares, and shall be in such form as the Committee
    shall determine, including without limitation,
    (a)&#160;unrestricted Shares or (b)&#160;time-based or
    performance-based restricted stock units that are settled in
    Shares
    <FONT style="white-space: nowrap">and/or</FONT> cash.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    8.2&#160;<I>Award Agreement.</I>&#160;&#160;Each Other
    Stock-Based Award shall be evidenced by an Award Agreement that
    shall specify the terms and conditions upon which the Other
    Stock-Based Award shall become vested, if applicable, the time
    and method of settlement, the form of settlement and such other
    terms and conditions as the Committee shall determine and which
    are not inconsistent with the terms and conditions of the Plan.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    8.3&#160;<I>Form of Settlement.</I>&#160;&#160;An Other
    Stock-Based Award may be settled in full Shares, cash or a
    combination thereof, as specified by the Committee in the
    related Award Agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    8.4&#160;<I>Dividend Equivalents.</I>&#160;&#160;Awards of Other
    Stock-Based Awards may provide the Participant with dividend
    equivalents, as determined by the Committee in its sole
    discretion and set forth in the related Award Agreement.
</DIV>
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    <BR>
    A-7
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">ARTICLE&#160;IX<BR>
    CASH-BASED AWARDS</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Subject to the terms and conditions of the Plan, Cash-Based
    Awards may be granted to Participants in such amounts and upon
    such other terms and conditions as shall be determined by the
    Committee in its sole discretion. Each Cash-Based Award shall be
    evidenced by an Award Agreement that shall specify the payment
    amount or payment range, the time and method of settlement and
    the other terms and conditions, as applicable, of such Award
    which may include, without limitation, performance objectives.
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">ARTICLE&#160;X<BR>
    PERFORMANCE-BASED AWARDS</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    10.1&#160;<I>In General.</I>&#160;&#160;Awards may be granted as
    Performance-Based Awards that are deductible by the Company
    under Section&#160;162(m) of the Code. As determined by the
    Committee in its sole discretion, the grant, vesting,
    exercisability
    <FONT style="white-space: nowrap">and/or</FONT>
    settlement of any Performance-Based Award shall be conditioned
    on the attainment of performance goals based upon one or more
    Performance Criteria during a performance period established by
    the Committee. Any such Award must meet the requirements of this
    Article&#160;X.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    10.2&#160;<I>Performance Criteria</I>.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    (a)&#160;For purposes of the Plan, the &#147;Performance
    Criteria&#148; for Participants who are or are likely to be
    Covered Employees are as follows:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    (i)&#160;Operating profit, including operating profit margins;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    (ii)&#160;Earnings per share (i.e., net income divided by a
    weighted average number of shares of Stock outstanding and
    dilutive common equivalent shares deemed outstanding);
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    (iii)&#160;Net income;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    (iv)&#160;Investment performance of the Company&#146;s
    investment strategies (collectively or single strategy,
    individually);
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    (v)&#160;Operating income (i.e., income from operations
    excluding unusual items);
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    (vi)&#160;Calculation of the Company&#146;s intrinsic value;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    (vii)&#160;Return on equity (i.e., net income divided by average
    shareholders&#146; equity);
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    (viii)&#160;Return on sales (i.e., operating income before
    incentive compensation divided by revenue);&#160;and
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    (ix)&#160;Revenue (i.e., net sales).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    (b)&#160;Performance Criteria may relate to the individual
    Participant, the Company, one or more of its Affiliates or one
    or more of their respective divisions or business units, or any
    combination of the foregoing, and may be applied on an absolute
    basis <FONT style="white-space: nowrap">and/or</FONT>
    be relative to one or more peer group companies or indices, or
    any combination thereof, in each case, as determined by the
    Committee in its sole discretion.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    10.3&#160;<I>Establishment of Performance
    Goals.</I>&#160;&#160;With respect to Performance-Based Awards
    for Participants who are or are likely to be Covered Employees,
    the Committee shall establish: (a)&#160;the applicable
    performance goals and performance period and (b)&#160;the
    formula for computing the Performance-Based Award. Such terms
    and conditions shall be established in writing while the outcome
    of the applicable performance period is substantially uncertain,
    but in no event later than the earlier of: (i)&#160;90&#160;days
    after the beginning of the applicable performance period; or
    (ii)&#160;the expiration of 25% of the applicable performance
    period.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    10.4&#160;<I>Certification of Performance.</I>&#160;&#160;With
    respect to Performance-Based Awards for Participants who are or
    are likely to be Covered Employees, the Committee shall certify
    in writing whether the applicable performance goals and other
    material terms imposed on such Performance-Based Awards have
    been satisfied, and, if they have, ascertain the amount of the
    applicable Performance-Based Award. No such Performance-Based
    Award shall vest, become exercisable
    <FONT style="white-space: nowrap">and/or</FONT> be
    settled, as the case may be, until the Committee makes this
    certification.
</DIV>
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    <BR>
    A-8
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    10.5&#160;<I>Modifying Performance-Based
    Awards.</I>&#160;&#160;To the extent consistent with
    Section&#160;162(m) of the Code, performance goals relating to
    such Performance-Based Awards may be calculated without regard
    to extraordinary items or adjusted, as the Committee deems
    equitable, in recognition of unusual or non-recurring events
    affecting the Company
    <FONT style="white-space: nowrap">and/or</FONT> its
    Affiliates or changes in applicable tax laws or accounting
    principles.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    10.6&#160;<I>Negative Discretion.</I>&#160;&#160;In the
    Committee&#146;s sole discretion, the amount of a
    Performance-Based Award actually paid to a Participant may be
    less than the amount determined by the applicable performance
    goal formula.
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">ARTICLE&#160;XI<BR>
    TERMINATION OF EMPLOYMENT OR SERVICE</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    11.1&#160;<I>Effect of Termination of Employment or
    Service.&#160;&#160;</I>With respect to each Award granted under
    the Plan, the Committee shall, subject to the terms and
    conditions of the Plan, determine the extent to which the Award
    shall vest and the extent to which the Participant shall have
    the right to exercise
    <FONT style="white-space: nowrap">and/or</FONT>
    receive settlement of the Award on or following the
    Participant&#146;s termination of employment or services with
    the Company
    <FONT style="white-space: nowrap">and/or</FONT> any
    Affiliate. Such provisions shall be determined in the sole
    discretion of the Committee at any time prior to or after such
    termination, shall be included in the related Award Agreement or
    an amendment thereto, need not be uniform among all Awards
    granted under the Plan and may reflect distinctions based on the
    reasons for termination.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    11.2&#160;<I>Default Provisions.&#160;&#160;</I>If the Award
    Agreement does not specify the effect of a Participant&#146;s
    termination of employment or services with the Company
    <FONT style="white-space: nowrap">and/or</FONT> any
    Affiliate on the vesting, exercisability
    <FONT style="white-space: nowrap">and/or</FONT>
    settlement of Awards, the following provisions shall apply:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    (a)&#160;<I>Death, Disability or Retirement.</I>&#160;&#160;In
    the event of a Participant&#146;s death, Disability or
    Retirement: (i)&#160;all exercisable Awards may be exercised for
    the remainder of the term of such Award (provided, however, that
    any Incentive Stock Option that is not exercised within
    12&#160;months following the Participant&#146;s death ,
    Disability or Retirement will be treated as a Nonqualified Stock
    Option); (ii)&#160;a pro rata portion of all unvested Awards
    shall vest, as determined by the Committee in its sole
    discretion, based on the amount of time elapsed during the
    vesting period prior to the date of death, Disability or
    Retirement, or the attainment of the performance objectives or
    Performance Goals, as applicable, over the portion of the
    Performance Period elapsed as of the date of death, Disability
    or Retirement; and (iii)&#160;all unvested Awards that do not
    vest pursuant to Section&#160;12.2(a) shall terminate and be
    forfeited as of the date of death, Disability or Retirement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    (b)&#160;<I>Termination for Cause.</I>&#160;&#160;If a
    Participant is terminated for Cause, all Awards, whether or not
    vested
    <FONT style="white-space: nowrap">and/or</FONT>
    exercisable, shall terminate and be forfeited as of the date of
    termination.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    (c)&#160;<I>Other Termination.</I>&#160;&#160;If a Participant
    terminates for any other reason: (i)&#160;all exercisable Awards
    may be exercised for the remainder of the term of such Award
    (provided, however, that any Incentive Stock Option that is not
    exercised within three months following the Participant&#146;s
    termination will be treated as a Nonqualified Stock Option); and
    (ii)&#160;all unvested Awards shall terminate and be forfeited
    as of the date of termination.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Notwithstanding the foregoing, in no event shall any
    Performance-Based Award granted to a Covered Employee that is
    intended to qualify as &#147;performance-based
    compensation&#148; under Section&#160;162(m) of the Code, be
    settled or become exercisable in full, upon the termination of
    employment of the Covered Employee without regard to the
    satisfaction of the related Performance Criteria.
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">ARTICLE&#160;XII<BR>
    CHANGE IN CONTROL</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    12.1&#160;<I>In General.&#160;&#160;</I>Except as otherwise
    provided in the related Award Agreement, in the event of a
    Change in Control, all outstanding Awards shall become
    immediately vested and exercisable and the Committee, in its
    sole discretion, may take such actions, if any, as it deems
    necessary or desirable with respect to any such Awards,
    including, without limitation: (a)&#160;by providing for a cash
    payment in exchange for the cancellation of an Award; or
    (b)&#160;the issuance of substitute Awards that substantially
    preserve the value, rights and benefits of any affected
</DIV>
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    <BR>
    A-9
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Awards. Any action relating to an Award that is subject to
    Section&#160;409A of the Code shall be consistent with the
    requirements thereof.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    12.2.&#160;<I>Effect of Section&#160;280G of the
    Code.&#160;&#160;</I>Unless specified otherwise in the
    associated Award Agreement or in another written agreement
    between the Participant and the Company or any Affiliate, if the
    Company concludes that any payment or benefit due to a
    Participant under the Plan, when combined with any other payment
    or benefit due to the Participant from the Company or any other
    entity (collectively, the &#147;Payor&#148;), would be
    considered a &#147;parachute payment&#148; within the meaning of
    Section&#160;280G of the Code, the Payor will reduce the
    payments and benefits due to the Participant under the Plan to
    $1.00 less than the amount that would otherwise be considered a
    &#147;parachute payment&#148; within the meaning of
    Section&#160;280G of the Code. Any reduction pursuant to this
    Section&#160;12.2 shall be made in accordance with
    Section&#160;409A of the Code and the Treasury Regulations
    promulgated thereunder.
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">ARTICLE&#160;XIII<BR>
    AMENDMENT OR TERMINATION OF THE PLAN</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    13.1&#160;<I>In General.</I>&#160;&#160;The Board or the
    Committee may amend or terminate the Plan at any time; provided,
    however, that no amendment or termination shall be made without
    the approval of the Company&#146;s shareholders to the extent
    that (a)&#160;the amendment materially increases the benefits
    accruing to Participants under the Plan, (b)&#160;the amendment
    materially increases the aggregate number of Shares authorized
    for grant under the Plan (excluding an increase in the number of
    Shares that may be issued under the Plan as a result of
    Section&#160;2.4), (c)&#160;the amendment materially modifies
    the requirements as to eligibility for participation in the
    Plan, or (d)&#160;such approval is required by any law,
    regulation or stock exchange rule.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    13.2&#160;<I>Repricing.</I>&#160;&#160;Except for adjustments
    made pursuant to Section&#160;2.4 of the Plan, in no event may
    the Board or the Committee amend the terms of an outstanding
    Award to reduce the exercise price of an outstanding Option or
    Stock Appreciation Right or cancel an outstanding Option or
    Stock Appreciation Right in exchange for cash, other Awards or
    Options or Stock Appreciation Rights with an exercise price that
    is less than the exercise price of the original Option or Stock
    Appreciation Right without shareholder approval.
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">ARTICLE&#160;XIV<BR>
    TRANSFERABILITY</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    14.1&#160;<I>Non-Transferability.&#160;&#160;</I>Except as
    described in Section&#160;14.2 or as provided in a related Award
    Agreement, an Award may not be sold, transferred, pledged,
    assigned or otherwise alienated or hypothecated, except by will
    or the laws of descent and distribution and, during a
    Participant&#146;s lifetime, may be exercised only by the
    Participant or the Participant&#146;s guardian or legal
    representative. Notwithstanding any provision contained in this
    Article&#160;XIV, no Award may be transferred by a Participant
    for value or consideration.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    14.2&#160;<I>Beneficiary.&#160;&#160;</I>Unless otherwise
    specifically designated by the Participant in writing, a
    Participant&#146;s beneficiary under the Plan shall be the
    Participant&#146;s spouse or, if no spouse survives the
    Participant, the Participant&#146;s estate.
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">ARTICLE&#160;XV<BR>
    MISCELLANEOUS</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    15.1&#160;<I>No Right to Continued Service or to
    Awards.</I>&#160;&#160;The granting of an Award under the Plan
    shall impose no obligation on the Company or any Affiliate to
    continue the employment or services of a Participant or
    interfere with or limit the right of the Company or any
    Affiliate to terminate the services of any Employee, Director or
    Consultant at any time. In addition, no Employee, Director or
    Consultant shall have any right to be granted any Award, and
    there is no obligation for uniformity of treatment of
    Participants. The terms and conditions of Awards and the
    Committee&#146;s interpretations and determinations with respect
    thereto need not be the same with respect to each Participant.
</DIV>
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    <BR>
    A-10
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    15.2&#160;<I>Tax Withholding</I>.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    (a)&#160;The Company or an Affiliate, as applicable, shall have
    the power and the right to deduct, withhold or collect any
    amount required by law or regulation to be withheld with respect
    to any taxable event arising with respect to an Award granted
    under the Plan. This amount may, as determined by the Committee
    in its sole discretion, be (i)&#160;withheld from other amounts
    due to the Participant, (ii)&#160;withheld from the value of any
    Award being settled or any Shares being transferred in
    connection with the exercise or settlement of an Award,
    (iii)&#160;withheld from the vested portion of any Award
    (including the Shares transferable thereunder), whether or not
    being exercised or settled at the time the taxable event arises,
    (iv)&#160;collected directly from the Participant, or
    (v)&#160;satisfied through any combination of the methods
    described above.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    (b)&#160;Subject to the approval of the Committee, a Participant
    may elect to satisfy the withholding requirement, in whole or in
    part, by having the Company or an Affiliate, as applicable,
    withhold Shares having a Fair Market Value on the date the tax
    is to be determined equal to the minimum statutory total tax
    that could be imposed on the transaction; provided that such
    Shares would otherwise be distributable to the Participant at
    the time of the withholding and if such Shares are not otherwise
    distributable at the time of the withholding, provided that the
    Participant has a vested right to distribution of such Shares at
    such time. All such elections shall be irrevocable and made in
    writing and shall be subject to any terms and conditions that
    the Committee, in its sole discretion, deems appropriate.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    15.3&#160;<I>Requirements of Law.</I>&#160;&#160;The grant of
    Awards and the issuance of Shares shall be subject to all
    applicable laws, rules and regulations (including applicable
    federal and state securities laws) and to all required approvals
    of any governmental agencies or national securities exchange,
    market or other quotation system. Without limiting the
    foregoing, the Company shall have no obligation to issue Shares
    under the Plan prior to: (a)&#160;receipt of any approvals from
    any governmental agencies or national securities exchange,
    market or quotation system that the Committee deems necessary;
    and (b)&#160;completion of registration or other qualification
    of the Shares under any applicable federal or state law or
    ruling of any governmental agency that the Committee deems
    necessary.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    15.4&#160;<I>Legends.</I>&#160;&#160;Certificates for Shares
    delivered under the Plan may be subject to such share transfer
    orders and other restrictions that the Committee deems advisable
    under the rules, regulations and other requirements of the
    Securities and Exchange Commission, any stock exchange or other
    recognized market or quotation system upon which the Shares are
    then listed or traded, or any other applicable federal or state
    securities law. The Committee may cause a legend or legends to
    be placed on any certificates issued or stop orders imposed on
    Shares under the Plan to make appropriate reference to
    restrictions within the scope of this Section&#160;15.4.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    15.5&#160;<I>Uncertificated Shares.</I>&#160;&#160;To the extent
    that the Plan provides for the issuance of certificates to
    reflect the transfer of Shares, the transfer of Shares may be
    effected on a noncertificated basis, to the extent not
    prohibited by applicable law or the applicable rules of any
    stock exchange.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    15.6&#160;<I>Governing Law.</I>&#160;&#160;The Plan and all
    Award Agreements shall be governed by and construed in
    accordance with the laws of (other than laws governing conflicts
    of laws) the State of Ohio.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    15.7&#160;<I>No Impact on Benefits.</I>&#160;&#160;Awards are
    not compensation for purposes of calculating a
    Participant&#146;s rights under any employee benefit plan that
    does not specifically require the inclusion of Awards in
    calculating benefits.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    15.8&#160;<I>Rights as a Shareholder.</I>&#160;&#160;Except as
    otherwise provided in the Plan or in a related Award Agreement,
    a Participant shall have none of the rights of a shareholder
    with respect to Shares covered by an Award unless and until the
    Participant becomes the record holder of such Shares.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    15.9&#160;<I>Successors and Assigns.</I>&#160;&#160;The Plan
    shall be binding on all successors and assigns of the Company
    and each Participant, including without limitation, the estate
    of such Participant and the executor, administrator or trustee
    of such estate, or any receiver or trustee in bankruptcy or
    representative of the Participant&#146;s creditors.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    15.10&#160;<I>Section&#160;409A of the Code</I>.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    (a)&#160;Awards granted pursuant to the Plan that are subject to
    Section&#160;409A of the Code, or that are subject to
    Section&#160;409A but for which an exception from
    Section&#160;409A of the Code applies, are intended to comply
    with or be exempt from Section&#160;409A of the Code, and the
    Plan shall be interpreted, administered and operated accordingly.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    A-11
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#L42120tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    (b)&#160;If a Participant is determined to be a &#147;specified
    employee&#148; (within the meaning of Section&#160;409A of the
    Code and as determined under the Company&#146;s policy for
    determining specified employees), the Participant shall not be
    entitled to payment or to distribution of any portion of an
    Award that is subject to Section&#160;409A of the Code (and for
    which no exception applies) and is payable or distributable on
    account of the Participant&#146;s &#147;separation from
    service&#148; (within the meaning of Section&#160;409A of the
    Code) until the expiration of six months from the date of such
    separation from service (or, if earlier, the Participant&#146;s
    death). Such Award, or portion thereof, shall be paid or
    distributed on the first business day of the seventh month
    following such separation from service.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    (c)&#160;Nothing in the Plan shall be construed as an
    entitlement to or guarantee of any particular tax treatment to a
    Participant, and none of the Company, its Affiliates, the Board
    or the Committee shall have any liability with respect to any
    failure to comply with the requirements of Section&#160;409A of
    the Code.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    15.11&#160;<I>Savings Clause.</I>&#160;&#160;In the event that
    any provision of the Plan shall be held illegal or invalid for
    any reason, the illegality or invalidity shall not affect the
    remaining provisions of the Plan, and the Plan shall be
    construed and enforced as if the illegal or invalid provision
    had not been included.
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">ARTICLE&#160;XVI<BR>
    EFFECTIVE DATE AND TERM OF THE PLAN</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The effective date of the Plan shall be the date on which the
    Plan is approved by the Company&#146;s shareholders and the Plan
    shall terminate and no Awards may be granted after the tenth
    anniversary of this date. Notwithstanding the foregoing, no
    Incentive Stock Options shall be granted more than ten years
    after the date the Plan is approved by the Board. The
    termination of the Plan shall not preclude the Company from
    complying with the terms of Awards outstanding on the date the
    Plan terminates.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    A-12
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#L42120tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 18pt; margin-top: 10pt"><B>Diamond Hill Investment Group, Inc.</B></DIV>
<DIV ALIGN="CENTER">
<P>
<DIV style="width: 70%; border: 1px solid black; padding: 2px;">

<DIV align="center" style="font-size: 12pt; margin-top: 0pt"><font style="font-family: Helvetica,Arial,sans-serif"><B>VOTE BY INTERNET OR TELEPHONE</B></font></DIV>
<DIV align="center" style="font-size: 11pt; margin-top: 0pt"><font style="font-family: Helvetica,Arial,sans-serif"><B>QUICK &#42; &#42; &#42; EASY &#42; &#42; &#42; IMMEDIATE</B></font></DIV></DIV></DIV>

<DIV align="JUSTIFY" style="font-size: 10pt; margin-top: 10pt">As a stockholder of Diamond Hill Investment Group, Inc., you have the option of
voting your shares electronically through the Internet or on the telephone, eliminating the need to
return the proxy card. Your electronic vote authorizes the named proxies to vote your shares in the
same manner as if you marked, signed, dated and returned the proxy card. Votes submitted
electronically over the Internet or by telephone must be received by 11:59 p.m., Eastern Time, on April 25, 2011.
</DIV>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<TR valign="bottom">
    <TD width="33%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="27%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" ALIGN="CENTER"><DIV style="margin-left:0px; text-indent:-0px"><IMG src="l42120l4212006.gif" alt="(INTERNET LOGO)"></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><IMG src="l42120l4212007.gif" alt="(TELEPHONE LOGO)"></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><IMG src="l42120l4212008.gif" alt="(MAIL LOGO)"></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top" style="border: 1px solid #000000"><DIV style="margin-left:0px; text-indent:-0px" align="center"><B><I><u>Vote Your Proxy on the Internet:</u></I></B></DIV><br>
<DIV style="margin-left:15px; margin-right:15px; text-indent:-0px" align="justify"><B>Go to www.cstproxyvote.com</B><BR>

Have your proxy card available when you access the above website. Follow the prompts to vote your shares.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="middle"><font style="font-family: Helvetica,Arial,sans-serif"><B>OR</B></font></TD>
    <TD>&nbsp;</TD>
    <TD valign="top" style="border: 1px solid #000000"><DIV style="margin-left:0px; text-indent:-0px" align="center"><B><I><u>Vote Your Proxy by Phone:</u></I></B><br>
<B>Call 1 (866)&nbsp;894-0537</B></div>
<DIV style="margin-left:15px; margin-right:15px; text-indent:-0px" align="justify">

Use any touch-tone telephone to vote your proxy. Have your proxy card available when you call. Follow the voting instructions to vote your shares.</div></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="middle"><font style="font-family: Helvetica,Arial,sans-serif"><B>OR</B></font></TD>
    <TD>&nbsp;</TD>
    <TD valign="top" style="border: 1px solid #000000"><DIV style="margin-left:0px; text-indent:-0px" align="center"><B><I><u>Vote Your Proxy by mail:</u></I></B></div><br>
<DIV style="margin-left:15px; margin-right:15px; text-indent:-0px" align="justify">

Mark, sign, and date your proxy card, then detach it, and return it in the postage-paid envelope provided.</div></TD>
</TR>
<!-- End Table Body -->
</TABLE></DIV>
<DIV align="center">
<DIV align="center" style="font-size: 12pt; margin-top: 12pt">&nbsp;</div>

<DIV style="width: 70%; border: 1px solid black; padding: 11px;">



<DIV align="center" style="font-size: 12pt; margin-top: 6pt"><B>PLEASE DO NOT RETURN THE PROXY CARD IF YOU ARE<BR>
VOTING ELECTRONICALLY OR BY PHONE</B></DIV></DIV></DIV>


<DIV align="center" style="font-size: 8pt; margin-top: 18pt">&nbsp;</DIV>

<DIV align="center">
<TABLE style="font-size: 8pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="84%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center"><FONT style="font-size:10pt">&#9660;</FONT><B>FOLD AND DETACH HERE AND READ THE REVERSE SIDE</B><FONT style="font-size:10pt">&#9660;</FONT><BR><BR style="font-size:6pt"><B>PROXY</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><font style="font-size: 5pt">Please mark<br>
your votes<br>
like this<BR></font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT face="Wingdings" style="font-size: 24pt">&#120;</FONT></TD>
</TR>
</TABLE></DIV>

<DIV align="left" style="font-size: 8pt; margin-top: 10pt"><font style="font-family: Helvetica,Arial,sans-serif"><B>
THIS PROXY WILL BE VOTED AS DIRECTED, OR IF NO DIRECTION IS INDICATED, WILL BE
VOTED &#147;FOR&#148; PROPOSALS 1, 2, 3, AND 4, AND WILL BE VOTED &#147;FOR&#148; &#147;1 YEAR&#148; UNDER PROPOSAL 5.</B></font></DIV>

<DIV align="center" style="font-family: Helvetica,Arial,sans-serif">
<TABLE style="font-size: 8pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="33%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="25%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">1.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Proposal to elect the nominees named below as
directors
for a one year term.</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>For</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>Withhold</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" nowrap><B>For</B> all (except<br>
Nominee(s)<br>
written below):</TD>
    <TD>&nbsp;</TD>

    <TD valign="top" align="right"><br>2.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" colspan="2"><div align="justify"><br>Ratification of the appointment of Plante &#038; Moran PLLC as our independent registered public accounting firm for 2011.
</div></TD>
    <TD align="center" valign="top" rowspan="1"><B>For</B><br><font style="font-size: 20pt" face="wingdings">&#111;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" rowspan="1"><B>Against</B><br><font style="font-size: 20pt" face="wingdings">&#111;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" nowrap rowspan="1"><B>Abstain</B><br><font style="font-size: 20pt" face="wingdings">&#111;</font></TD>

</TR>
<TR valign="bottom" style="line-height: 2pt"><!-- Blank Space -->
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" rowspan="2"><U>Nominees</U>: (01)&nbsp;Lawrence E. Baumgartner,<br>
(02) R.H. Dillon, (03) James F. Laird,<br>
(04) David P. Lauer, (05) Peter J. Moran,<br>
(06) Donald B. Shackelford, <BR>
(07) Frances A. Skinner.<br><br>
NOMINEES&#146; NAME(S) HERE:
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" style="font-size: 20pt"><font face="wingdings">&#111;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" style="font-size: 20pt"><font face="wingdings">&#111;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" style="font-size: 20pt"><font face="wingdings">&#111;</font></TD>
    <TD>&nbsp;</TD>
    <TD valign="top" align="right"><br>3.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" colspan="2"><div align="justify"><br>Approval of the Company&#146;s 2011 Equity and Cash Incentive Plan.
</div></TD>
    <TD align="center" valign="top" rowspan="1"><B>For</B><br><font style="font-size: 20pt" face="wingdings">&#111;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" rowspan="1"><B>Against</B><br><font style="font-size: 20pt" face="wingdings">&#111;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" nowrap rowspan="1"><B>Abstain</B><br><font style="font-size: 20pt" face="wingdings">&#111;</font></TD>

</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top" align="right"><br>4.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" colspan="2">
<div align="justify"><br>Approval, on an advisory basis, the compensation of the Company&#146;s executive officers.
</div></TD>
    <TD align="center" valign="top" rowspan="1"><B>For</B><br><font style="font-size: 20pt" face="wingdings">&#111;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" rowspan="1"><B>Against</B><br><font style="font-size: 20pt" face="wingdings">&#111;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" nowrap rowspan="1"><B>Abstain</B><br><font style="font-size: 20pt" face="wingdings">&#111;</font></TD>

</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" valign="top" align="left"><br><DIV style="width: 100%; border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD valign="top" align="right"><br>5.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" rowspan="1">
<div align="justify"><br>Advisory vote on the frequency of advisory votes on the compensation of the Company&#146;s executive officers.
</div></TD>
    <TD align="center" valign="top" rowspan="1" nowrap><B>&nbsp;&nbsp;1 YEAR&nbsp;&nbsp;</B><br><font style="font-size: 20pt" face="wingdings">&#111;</font></TD>
    <TD align="center" valign="top" rowspan="1" nowrap><B>2 YEARS</B><br><font style="font-size: 20pt" face="wingdings">&#111;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" rowspan="1" nowrap><B>3 YEARS</B><br><font style="font-size: 20pt" face="wingdings">&#111;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" nowrap rowspan="1"><B>ABSTAIN</B><br><font style="font-size: 20pt" face="wingdings">&#111;</font></TD>

</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" valign="top" align="left"><DIV style="width: 100%; border-bottom: 0px solid #000000; font-size: 1px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>

    <TD align="center" valign="top" colspan="7" nowrap><div style="border: 1px solid #000000"><B>If you wish to vote electronically, please read the<br>instructions above.</B></div></TD>
</TR>

<!-- End Table Body -->
</TABLE></DIV>


<DIV align="center" style="font-size: 9pt; margin-top: 40pt; margin-left: 70%"><B>COMPANY ID:</B></DIV>

<DIV align="center" style="font-size: 9pt; margin-top: 20pt; margin-left: 70%"><B>PROXY NUMBER:</B></DIV>

<DIV align="center" style="font-size: 9pt; margin-top: 20pt; margin-left: 70%"><B>ACCOUNT NUMBER:</B></DIV>



<DIV align="center">
<TABLE style="font-size: 8pt; margin-top: 12pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->

<TR valign="bottom">

<TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><font style="font-size: 8pt"><B>Signature</B></font></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font style="font-size: 8pt"><B>Signature</B></font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font style="font-size: 8pt"><B>Date</B></font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top" nowrap>&nbsp;<b>,&nbsp;&nbsp;2011.</b></TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 2px solid #000000">&nbsp;</TD>
</TR>


<!-- End Table Body -->
</TABLE></DIV>



<DIV align="left" style="font-size: 7pt; margin-top: 0pt"><font style="font-family: Helvetica,Arial,sans-serif">
Please sign exactly as your name or names appear hereon. Joint owners should each sign.
Executors, administrators, trustees, guardians and others should give their full title.
Corporations and partnerships should sign in their full name by their president or another authorized person.
</font></DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio --></DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#L42120tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 8pt; margin-top: 10pt"><FONT style="font-size:10pt">&#9660;</FONT><B>FOLD AND DETACH HERE AND READ THE REVERSE SIDE</B><FONT style="font-size:10pt">&#9660;</FONT></DIV></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 1pt"><DIV style="width: 100%; border-bottom: 0px dashed #000000; FONT-size: 1px">&nbsp;</DIV>
</DIV>

<DIV style="font-family: Helvetica,Arial,sans-serif">
<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>PROXY</B></DIV>

<DIV align="Center" style="font-size: 12pt; margin-top: 4pt"><B>Diamond Hill Investment Group, Inc.</b></DIV>
<DIV align="Center" style="font-size: 10pt; margin-top: 0pt"><B>325 John H. McConnell Blvd., Suite&nbsp;200<BR>
Columbus, Ohio 43215</B></DIV>

<DIV align="justify" style="font-size: 9pt; margin-top: 10pt"><B>This Proxy is solicited on behalf of the Board of Directors for the Annual Meeting of Shareholders, April 26, 2011</B></DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The undersigned hereby appoints James F. Laird and
Gary R. Young and each of them, as proxies of the undersigned, with full power
of substitution, to attend the Annual Meeting of Shareholders of Diamond Hill
Investment Group, Inc. (the &#147;Company&#148;) to be held on April 26, 2011, or any
adjournment thereof, and to vote all shares of common stock, without par value, of the
Company (the &#147;Shares&#148;) which the undersigned is entitled to vote at such Annual Meeting
or at any adjournment thereof as set forth on the reverse side.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board of Directors recommends a
vote FOR each of the listed proposals and a vote for ONE YEAR for proposal 5.
<B>THIS PROXY WILL BE VOTED AS DIRECTED OR IF NO SPECIFICATION IS MADE AND THIS PROXY IS RETURNED,
THIS PROXY WILL BE VOTED IN FAVOR OF THE ELECTION OF THE NOMINEES LISTED UNDER PROPOSAL 1 AND IN FAVOR OF
PROPOSALS 2, 3, AND 4, AND WILL BE VOTED &#147;FOR&#148; &#147;1 YEAR&#148; UNDER PROPOSAL 5.</B>
If any other matters are properly brought before the Annual Meeting or any adjournment thereof, the Shares
represented by this Proxy will be voted in the discretion of the proxies on such other matters as the directors may recommend.</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The undersigned hereby acknowledges receipt of
the Notice of the Annual Meeting of Shareholders dated March 14, 2011, the Proxy Statement furnished therewith, and the Company&#146;s
Form 10-K for the year ended December 31, 2010. Any proxy heretofore given to vote the Shares which the undersigned is entitled to
vote at the Annual Meeting of Shareholders is hereby revoked.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Please mark, sign, date and return the
Proxy card promptly in the enclosed envelope, unless voting electronically.
</B></DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<TR valign="bottom">
    <TD width="47%"></TD>
    <TD width="5%"></TD>
    <TD width="47%"></TD>
</TR>
<TR valign="bottom" style="line-height: 6pt"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top"><B>See Reverse side</B></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top"><B>See Reverse side</B></TD>
</TR>
</TABLE></DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio --></DIV>
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