This excerpt taken from the DHIL 8-K filed May 16, 2006.
Section 7 Regulation FD
Item 7.01 Regulation FD Disclosure.
On March 10, 2006, the Corporation entered into a letter agreement with its President and CEO, R. H. Dillon, to reduce the required prior notice of non-renewal under Mr. Dillons Employment Agreement dated May 11, 2000 (the Current Agreement) from 60 days to 15 days. On April 26, 2006, the Corporation and Mr. Dillon signed a letter agreement to further reduce the required prior notice of non-renewal from 15 days to one day, with any notice of non-renewal required to be given by May 10, 2006. No notice of non-renewal was given by either party and, per the terms of the Current Agreement, it renewed on May 11, 2006 for a term of one year. The Corporation and Mr. Dillon are still negotiating the terms and conditions of a new employment agreement and, when any such agreement is finalized, it will supersede and replace the Current Agreement.
This excerpt taken from the DHIL ARS filed Apr 7, 2006.
DHCM is registered with the Securities and Exchange Commission (the SEC) under the Investment Advisers Act of 1940 (the Advisors Act) and operates in a highly regulated environment. The Advisers Act imposes numerous obligations on registered investment advisers, including fiduciary duties, recordkeeping requirements, operational requirements and disclosure obligations. All Diamond Hill funds are registered with
the SEC under the Investment Company Act of 1940, as amended. Each fund is also required to make notice filings with all states where it is offered for sale. Virtually all aspects of the Companys investment management business are subject to various federal and state laws and regulations. Generally, these laws and regulations are primarily intended to benefit shareholders of the funds and separate account investment clients and generally grant supervisory agencies and bodies broad administrative powers, including the power to limit or restrict the Company from carrying on its investment management business in the event that it fails to comply with such laws and regulations. In such event, possible sanctions which may be imposed include the suspension of individual employees, business limitations on DHCM engaging in the investment management business for specified periods of time, the revocation of DHCMs registration as an investment adviser, and other censures or fines.