SUBSCRIPTION AGREEMENT
                                       FOR
                                  COMMON SHARES
                                       OF
                       DIAMOND HILL INVESTMENT GROUP, INC.


Diamond Hill Investment Group, Inc.
375 N. Front Street
Suite 300
Columbus, OH  43215

Ladies/Gentlemen:

     The undersigned subscriber (the "Subscriber") offers and agrees to purchase
from Diamond Hill Investment  Group,  Inc. (the "Company") that number of common
shares,  no par value,  of the Company (the "Shares") set forth on the Signature
Page of this Agreement at a purchase price of $_____ per Share, and on the terms
and conditions described in this Agreement.

     The Subscriber,  by executing the Signature Page of this Agreement,  hereby
acknowledges,  understands and agrees with, and hereby certifies, represents and
warrants to the Company as follows:

     SECTION 1 - ACCESS TO INFORMATION.  The Subscriber has been given access to
all books of account, records and other documents concerning the Company and the
Shares,  including,  without limitation,  the Company's Form 10-KSB for the year
ended  December  31, 2002 and the  Company's  Form 10-QSB for the quarter  ended
March 31, 2003.  In addition,  the  Subscriber  has had the  opportunity  to ask
questions and receive  answers from the officers of the Company  concerning  the
Company and the Shares and any additional  information  deemed  necessary by the
Subscriber to make an informed  decision  regarding  purchasing the Shares.  All
questions have been answered to the full satisfaction of the Subscriber.

     SECTION 2 - INVESTMENT  RISKS. The Subscriber  understands and acknowledges
that the Shares are speculative securities and involve a high degree of risk and
that no federal or state agency has made any finding or  determination as to the
fairness  for  public  or  private  investment  in,  nor any  recommendation  or
endorsement  of, the Shares as an investment.  The Subscriber has such knowledge
and experience in business and financial  matters that the Subscriber is capable
of  evaluating  the  merits  and  risks of an  investment  in the  Company.  The
Subscriber's  financial  situation  is such  that the  Subscriber  can  afford a
complete loss of the Subscriber's investment in the Company.

     SECTION 3 - INVESTMENT INTENT REPRESENTATIONS; RESTRICTIONS ON TRANSFER.
     -----------------------------------------------------------------------
     (a)  The  Subscriber is  subscribing  for and purchasing the Shares for the
Subscriber's  own account,  for investment  purposes only and not with a present
intention  of  entering  into  or  making  any  subsequent   sale,   assignment,
conveyance, pledge, hypothecation or other transfer thereof.

     (b)  The  Subscriber  has no need  for  liquidity  in this  investment  and
understands  that  there  are  restrictions  on the  subsequent  resale or other
transfer of the Shares.

<PAGE>

     (c)  The Subscriber  understands and acknowledges  that the Shares have not
been  registered  under the Securities  Act of 1933, as amended (the "Act"),  or
under the securities laws of any state,  but have been offered and sold pursuant
to and in reliance upon exemptions from registration thereunder.

     (d)  The Subscriber  understands and acknowledges that, as a consequence of
the restrictions on subsequent transfer imposed by the foregoing exemptions, the
Shares may not subsequently be sold, assigned,  conveyed, pledged,  hypothecated
or otherwise transferred by a holder thereof except pursuant to (i) an effective
registration statement registering the Shares under the Act and under applicable
state  securities  laws, or (ii) an opinion of counsel (which is satisfactory to
the Company)  obtained by such holder that such  registration  under the Act and
under  applicable  state  securities  laws is not  required  for such  holder to
lawfully  effect  such  subsequent   sale,   assignment,   conveyance,   pledge,
hypothecation or other transfer.

     (e)  The Company  reserves  and shall have the right to refuse to accept or
register the  assignment or other transfer of any of the Shares unless and until
the conditions to such assignment or other transfer  specified in this Agreement
have been satisfied.

     SECTION 4 - ACCREDITED INVESTOR REPRESENTATION.
     -----------------------------------------------

     The  Subscriber  is an  "accredited  investor"  within the  meaning of Rule
501(a) of Regulation D promulgated  under the Act because the  Subscriber  meets
the  description  in one or more of the following  categories  (PLEASE CHECK ALL
APPLICABLE CATEGORIES):

          [ ]  a natural person whose  individual net worth,  or joint net worth
               with his or her spouse, exceeds $1,000,000.
          [ ]  a  natural  person  who had an  individual  income  in  excess of
               $200,000 in each of the two most recent  years or a joint  income
               with his or her  spouse in excess  of  $300,000  in each of those
               years,  and has a  reasonable  expectation  of reaching  the same
               income level in the current year.
          [ ]  a trust,  with total assets in excess of  $5,000,000,  not formed
               for the specific purpose of acquiring the Shares,  whose purchase
               is directed by a person who has such  knowledge and experience in
               financial  and  business  matters  that such person is capable of
               evaluating the merits and risks of acquiring the Shares.

     SECTION  5 -  INDEMNIFICATION.  The  Subscriber  shall  indemnify  and save
harmless the Company, its officers, directors and employees against and from any
and all liabilities,  damages,  losses, costs and expenses (including reasonable
attorneys' fees) arising under the Act or under applicable state securities laws
as a result of any  misrepresentation  by the  Subscriber  contained  in, or any
failure by the Subscriber to comply with the provisions of, this Agreement.

     SECTION 6 - NO TERMINATION OR TRANSFER OF THE SUBSCRIPTION.  The Subscriber
shall not have the right to terminate,  cancel,  revoke, assign or transfer this
Agreement  and the  subscription  represented  hereby  without the prior written
consent of the Company,  which consent may, in the complete and sole  discretion
of the Company, be withheld for any reason.

     SECTION 7 - REJECTION OR ACCEPTANCE OF THE SUBSCRIPTION.  The Company shall
have the  unconditional  right, in its complete and sole  discretion,  to reject
this Agreement and the subscription represented thereby at any time prior to its
acceptance  thereof;  and if the  Company  should do so,  then the  subscription
proceeds of the Subscriber delivered to the Company in connection herewith shall
be promptly returned to the Subscriber without interest.

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<PAGE>

     SECTION 8 - GOVERNING LAW; CONSENT TO JURISDICTION. This Agreement shall be
governed,  construed  and enforced in  accordance  with the laws of the State of
Ohio.  Any action,  suit or  proceeding  in respect of or arising from or out of
this  Agreement may be prosecuted as to any one or more of the parties hereto at
Franklin  County,  Ohio.  Each party to this  Agreement  jointly  and  severally
consents to the  exercise  of  jurisdiction  over his,  her or its person by any
court situated at Franklin County, Ohio and having jurisdiction over the subject
matter of any action, suit or proceeding arising from or out of or in respect of
this Agreement.  Adequate  notice of any such action,  suit or proceeding in any
such court shall conclusively be deemed to have been given to any one or more of
the parties hereto  against whom the same is instituted,  if given to such party
by any manner  consistent  with the Ohio Rules of Civil  Procedure  or any other
manner consistent with due process of law.

     SECTION 9 - RESIDENCE.  The Subscriber  hereby represents and warrants that
the  Subscriber  is a resident of the State of Ohio,  or is organized  under the
laws of the State of Ohio and domiciled in Ohio.

                          [NEXT PAGE IS SIGNATURE PAGE]

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<PAGE>

                                SIGNATURE PAGE OF
                             SUBSCRIPTION AGREEMENT
                              FOR COMMON SHARES OF
                       DIAMOND HILL INVESTMENT GROUP, INC.

     The  Subscriber  hereby  offers and agrees to purchase  ________  Shares at
$_____ per Share for a total purchase price of $_____________. By the completion
and  execution of this  Signature  Page,  the  Subscriber  makes and affirms the
certifications, representations and warranties contained in the forepart of this
Agreement.

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                            SUBSCRIPTION INSTRUCTIONS
     The Subscriber  should complete and execute this Signature Page and deliver
it, together with a check made payable to "Diamond Hill Investment Group,  Inc."
in an amount  equal to the total  purchase  price of the Shares  proposed  to be
purchased by the  Subscriber,  to Diamond Hill  Investment  Group,  Inc., 375 N.
Front Street, Suite 300, Columbus, OH 43215, Attention: R.H. Dillon, Jr.

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            THIS SECTION TO BE COMPLETED BY INDIVIDUAL SUBSCRIBER(S):

Date:                                        Address of Principal Residence:
     ------------------------------

-----------------------------------          -----------------------------------
Name of Subscriber
                                             -----------------------------------

-----------------------------------          -----------------------------------
Signature of Subscriber

-----------------------------------
Social Security Number



-----------------------------------          -----------------------------------
Printed Name of Subscriber
                                             -----------------------------------
-----------------------------------
Signature of Subscriber                      -----------------------------------

-----------------------------------
Social Security Number

          Please  check  the  appropriate   form  of  ownership  of  the  Shares
          subscribed to above:

               [ ]  Individual
               [ ]  Joint Tenant with Right of Survivorship
               [ ]  Tenants in Common
               [ ]  Custodian under Ohio Uniform Transfers to Minor's Act

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                                       4
<PAGE>

     THIS SECTION TO BE COMPLETED BY A SUBSCRIBER WHICH IS AN ORGANIZATION:

Date:
     --------------------------------        -----------------------------------
                                             Type of Organization
-------------------------------------
Print Name of Organization
                                             -----------------------------------
                                             Taxpayer Identification Number

By:----------------------------------
Signature of Authorized Representative       Address of Principal Office:

Title:
      -----------------------------          -----------------------------------

                                             -----------------------------------

                                             -----------------------------------

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THE SHARES HAVE NOT BEEN AND WILL NOT BE  REGISTERED  UNDER THE ACT OR UNDER THE
SECURITIES  LAWS OF ANY  STATE AND SHALL  NOT  SUBSEQUENTLY  BE SOLD,  ASSIGNED,
CONVEYED,  PLEDGED,  HYPOTHECATED  OR OTHERWISE  TRANSFERRED BY A HOLDER THEREOF
EXCEPT  PURSUANT TO (1) AN  EFFECTIVE  REGISTRATION  STATEMENT  REGISTERING  THE
SHARES  UNDER THE ACT AND UNDER  APPLICABLE  STATE  SECURITIES  LAWS,  OR (2) AN
OPINION OF COUNSEL  (WHICH IS  SATISFACTORY  TO THE  COMPANY)  OBTAINED  BY SUCH
HOLDER  THAT  SUCH  REGISTRATION  UNDER  THE  ACT  AND  UNDER  APPLICABLE  STATE
SECURITIES  LAWS IS NOT  REQUIRED  FOR  SUCH  HOLDER  TO  LAWFULLY  EFFECT  SUCH
SUBSEQUENT  SALE,  ASSIGNMENT,   CONVEYANCE,   PLEDGE,  HYPOTHECATION  OR  OTHER
TRANSFER.

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                                   ACCEPTANCE


The foregoing Subscription Agreement is accepted by the Company this ____ day of
_______________, 2003.

                              Diamond Hill Investment Group, Inc.

                              By:
                                 --------------------------------

                              Title: President

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