MANAGEMENT AGREEMENT



TO:  Diamond Hill Capital Management, Inc.

     375 North Front Street, Suite 300

     Columbus, Ohio 43215



Dear Sirs:



     Diamond Hill Funds (the "Trust") herewith confirms our agreement with you.



     The Trust has been  organized  to engage in the  business of an  investment

company.  The Trust currently offers five series of shares to investors,  one of

which is the Diamond Hill Short Term Fixed Income Fund.



     You have been  selected to act as the  investment  adviser of Diamond  Hill

Short Term Fixed Income Fund and each additional series of the Trust which shall

have approved this  Agreement,  as such series are set forth in Exhibit A hereto

(together,  the "Fund") and to provide certain other services, as more fully set

forth  below,  and you are  willing  to act as such  investment  adviser  and to

perform such  services  under the terms and  conditions  hereinafter  set forth.

Accordingly, the Trust agrees with you as follows effective upon the date of the

execution of this Agreement.



     1.   ADVISORY SERVICES

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



          You will regularly provide the Fund with such investment advice as you

in your  discretion  deem  advisable  and will furnish a  continuous  investment

program  for the Fund  consistent  with the  Fund's  investment  objectives  and

policies.  You will  determine the  securities to be purchased for the Fund, the

portfolio  securities  to be held or sold by the  Fund  and the  portion  of the

Fund's assets to be held  uninvested,  subject  always to the Fund's  investment

objectives, policies and restrictions, as each of the same shall be from time to

time in effect,  and subject  further to such policies and  instructions  as the

Board of Trustees of the Trust  ("Board") may from time to time  establish.  You

will  advise and assist the  officers  of the Trust in taking  such steps as are

necessary  or  appropriate  to carry  out the  decisions  of the  Board  and the

appropriate committees of the Board regarding the conduct of the business of the

Fund.



     2.   ALLOCATION OF CHARGES AND EXPENSES

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



          You will pay the  compensation  and expenses of any persons  rendering

any services to the Fund who are officers, directors,  stockholders or employees

of your  corporation and will make  available,  without expense to the Fund, the

services of such of your  employees as may duly be elected  officers or trustees

of  the  Trust,  subject  to  their  individual  consent  to  serve  and  to any

limitations  imposed by law.  The  compensation  and  expenses of any  officers,

trustees and employees of the Trust who are not officers,  directors,  employees

or stockholders of your corporation or its affiliates will be paid by the Fund.



          The Fund will be responsible for the payment of all operating expenses

of the Fund,  including  the  compensation  and  expenses of all trustees of the

Trust who are not interested persons of the Trust  ("non-interested  trustees"),

as defined in the Investment Company Act of 1940, as amended



{PAGE}



(the "Act") and of any employees of the Fund and of any other persons  rendering

any  services to the Fund;  clerical and  shareholder  service  staff  salaries;

office space and other office expenses;  fees and expenses  incurred by the Fund

in  connection  with  membership  in investment  company  organizations;  legal,

Home        Intelligence        Services        Subscriptions        News        About Us

Contact Us       Terms of Use       Resend Documents       Shopping Cart

Copyright © 2008 The Consus Group LLC