Fruth Investment Management

Item 5        Fees and Compensation

Investment Management Fees

Fruth Investment Management charges client fees based on a percentage of the client’s assets under
management. The annual percentage rates are as follows:

1.25% on assets up to $500,000
1.00% on assets from $500,000 to $5,000,000
.75% on assets from $5,000,000 to $10,000,000
.50% on assets more than $10,000,000

There is a minimum account size of $500,000. However, the minimum account size may be negotiable,
especially when the client has multiple accounts under management. Certain clients may pay less than
the advertised fee schedule based on client specific circumstances. Clients that have an existing
relationship with Fruth Investment Management on or before 2022 will continue to be on the same fee
schedule as their investment advisor agreement states.

Fees are charged quarterly, in advance, at one-fourth of the applicable annual rate. To calculate the fee
for each upcoming quarter, we take the value of each account on the last day of the preceding quarter
and multiply it by one fourth of the applicable annual rate.

Fees are deducted directly from the client’s account.

In addition to the management fee paid to Fruth Investment Management, clients may be charged
commission fees directly from the broker (Charles Schwab) for executing certain types of trades. Clients
should inquire with Fruth Investment Management for the latest trade commission rates. The
broker/custodian may also charge fees for other services such as margin expense, insufficient funds,
wiring fees, etc.

Financial Planning Fees & Other Fees

Fruth Investment Management’s primary focus is investment management. However, in limited
situations we may provide ad-hoc financial planning services or financial administrative assistance to
clients. A financial planning fee may or may not be included as part of the investment management fee,
depending on the account size, complexity, and the client fee schedule. Should there be an additional
financial planning fee, the financial planning fee will be a fixed price that is agreed upon upfront and paid
for before work commences. We do not require or solicit payment of fees of more than $1,200 per client
more than six months in advance of services rendered.

Refunds Upon Termination

The client may terminate his or her contract with Fruth Investment Management at any time through
written notification. Fruth Investment Management may also terminate the contract in this manner.

At the time of termination, any pre-paid, unearned fees will be refunded to the client on a pro-rated basis.
The amount of the refund is calculated as follows: The number of days remaining in the quarter after the
termination will be divided by the total number of days in the quarter to obtain the percentage of days to
be refunded. The prepaid quarterly fee is multiplied by this percentage to obtain the amount of the refund
for each account. These fees may be credited directly into the account or refunded by check.

Our Compensation

The only compensation Fruth Investment Management receives for our services comes directly from the
client through the investment management fees described above. Fruth Investment Management does
not receive any form of sales commission on any of the assets purchased or sold in clients’ accounts. All
investment decisions are made exclusively in the interest of the client.

Item 7         Types of Clients

Clients

Fruth Investment Management currently manages accounts for approximately 173 clients.

Accounts

Account types generally fall into one of the following categories: Individual/Joint, IRA, Foundations,
Corporate, and Trusts.

Minimum Investment

The minimum account size is $500,000. Alternatively, the client may have multiple accounts which total
$500,000. This minimum account size is negotiable and/or Fruth Investment Management may choose
to waive the minimum in limited situations.