Exhibit 10.7
 DIAMOND HILL INVESTMENT GROUP, INC.
AMENDED AND RESTATED
2006 PEFORMANCE-BASED COMPENSATION PLAN
 FORM OF
NOTICE OF ELIGIBILITY AND PARTICIPATION AGREEMENT  [YEAR]
 To:
    
    []From:
    
    Diamond Hill Investment Group, Inc. Compensation CommitteeRe:
    
    Diamond Hill Investment Group, Inc. Amended and Restated 2006
Performance-Based Compensation Plan
  [1] [2]
 Note: As a condition of eligibility, you must return a signed copy of this form (see Section 3.00)
to the Companys Compensation Committee at the address shown in Section 3.00 no later than March
31, [YEAR].
 1.00 Your incentive compensation will be paid if certain conditions are met . . .
  
    
    The conditions that must be met if you are to receive incentive compensation under
the Plan (Performance Criteria);
    
    The period over which the Performance Criteria are to be met (Performance Cycle);
and
    
    The amount you may receive if the Performance Criteria are met.




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1.01 Your incentive compensation depends on the extent to which the Company meets certain financial
goals
  [1] A bonus pool will be established . . .
  
  
 [2] If the criteria listed in this section are met, your incentive compensation will be as
large as [ ] percent of the
bonus pool . . .
  
    
    At or above any OPM in the table above you will receive incentive compensation
equal to as much as [ ] percent of the incentive pool based on the Companys revenue
(see Section 1.01 [1]);
    
    At or above [ ] percent but less than any OPM in the table above you will receive
incentive compensation equal to as much as a calculated percent of the entire
incentive pool determined through linear interpolation with 0% as the floor, if OPM is
[ ]% or less, and [ ]% as the ceiling if OPM is equal to the target listed in the
table above based on the Companys revenue. (see Section 1.01 [1]);
    
    At or below [ ]% you will receive no incentive compensation under this plan;
 1.02 There are limits on your incentive compensation . . .
  
    
    You may not receive more than $5,000,000 under the Plan for any Performance Cycle;
    
    Your incentive compensation also will be reduced, if necessary, to comply with any
law or regulatory limitation; and
    
    Although it is not expected to do so, the Compensation Committee reserves the right
to reduce your incentive compensation below the amount produced after applying the
formulae described in this section.




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2.00 There are a few other rules . . .
  
    
    Normally, you will not receive any incentive compensation unless you are actively
employed throughout the Performance Cycle and also are employed on the date the
incentive compensation is to be paid. However, your full incentive compensation will
be paid if you terminate employment because you die, Retire or become Disabled after
the end of the Performance Cycle and before the date the incentive compensation is to
be paid.
    
    If you die or become Disabled during a Performance Cycle, you may receive Plan
incentive compensation but only to the extent the Performance Criteria described in
Section 1.01[2] are met at the end of the Performance Cycle. In this case, you (or
your beneficiary) will receive the amount described in Section 1.00 reduced to reflect
the number of whole months that you worked during the Performance Cycle (e.g., if you
worked only 50 percent of the Performance Cycle, you (or your beneficiary) would
receive 50 percent of the amount described in Section 1.00).
    
    If you terminate employment before the end of the Performance Cycle for any reason
other than death or Disability, you will not receive any incentive compensation for
the Performance Cycle, even if the Performance Criteria described in Section 1.01[2]
are met.
    
    If a Change in Control occurs during a Performance Cycle, you will receive a
portion of the maximum amount that you could have earned during the Performance Cycle
in which the Change in Control occurs, reduced to reflect the number of whole months
between the beginning of the Performance Cycle during which the Change in Control
occurs and the date of the Change in Control and further reduced, if necessary, to
avoid excess parachute penalties. This amount will be paid whether or not the
Performance Criteria established for that Performance Cycle are met.
    
    As of the end of the Performance Cycle, the Compensation Committee will review the
extent to which Performance Criteria have been met and whether (and how much)
incentive compensation is due under the Plan.
    
    Any incentive compensation you earn will be paid in a lump sum no later than the
15thday of the third month beginning after the end of the calendar year or
the Companys fiscal year (whichever is later) during which the Performance Cycle
ends.




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
    
    You may designate a beneficiary to receive any Plan incentive compensation that
becomes due after your death. This can be done by completing the attached beneficiary
designation form. If you do not complete this form, any Plan incentive compensation
due at your death will be paid to your surviving spouse or, if you leave no surviving
spouse, to your estate.
    
    Also, by accepting participation in the Plan, you agree to a noncompetition
covenant under which you agree not to compete with the Company for a period of one
year after you terminate employment. The terms of that agreement are specified in the
Plan which you should read carefully.
    
    If the terms of this Notice and the Plan conflict, the terms of the Plan will
govern.
 3.00 You must sign this form . . .
 Note: You will not receive any Plan incentive compensation unless you return a signed copy of this
Notice to the Compensation Committee, c/o Mr. Donald Shackelford at 325 John H. McConnell
Boulevard, Suite 200, Columbus, Ohio 43215 no later than March 31, [YEAR]
  EMPLOYEE:
 (Name)
    
    (Date)RECEIVED BY:(Name)
    
    (Date)