Investment Management Associates Inc

ITEM 5 - FEES AND COMPENSATION
Investment Management Fees and Compensation
Our Firm charges an advisory fee as compensation for providing Investment Management
services on client accounts. These services include advisory services, investment
supervision, and other account-maintenance activities. Your custodian charges custodial
fees, redemption fees, retirement plan and administrative fees or commissions. See
Additional Fees and Expenses below for additional details. Our account fees are as
follows:

     Investment Management Associates, Inc.– 5690 DTC Blvd., Suite 140W, Greenwood Village, CO 80111

                                         FORM ADV 2A Brochure

             INITIAL
             Aggregate
                               $0.5 - $1mm          $1 - $2mm         $2 - $6mm       $6mm & up
             Account
             Balance

                                1.5% on the        1.25% on the
                                 first $1mm         first $1mm
             Account                                                      1%             Fees
                                  1% on the portion above                              Negotiable
             Fees
                                          $1mm

Our maximum investment advisory fees as a percentage of assets under management is
1.5%. The specific advisory fees are set forth in your Investment Advisory Agreement.
Asset-based fees are billed quarterly in advance and calculated on the last business day
of the prior quarter. There may be a possibility for price or account value discrepancies
due to quarter-end transactions in an account. Dividends or trade date settlements may
occur, and our third-party billing software may report a slight difference in account
valuation at quarter end compared to what is reported on your Statement from the
Custodian. Our firm has the ability to produce billing summaries, which can be provided
upon request.

Clients may make additions to and withdrawals from their account at any time. Additions
may be in cash or securities, provided that IMA reserves the right to liquidate any
transferred securities or decline to accept particular securities into a client’s account.
Clients may withdraw account assets, subject to the usual and customary securities
settlement procedures.

We may negotiate a lower advisory fee or have the right to waive the minimum fee. Fees
may vary based on the size of the account, complexity of the portfolio, extent of activity
in the account or other reasons agreed upon by us and the client. Additionally, we provide
consulting services for an annual fee based on a percentage of the market value of Assets
Under Advisement (AUA) in certain client accounts. This fee is negotiated on a case-by-
case basis but will range from 1% to 1.5%.

Unless otherwise instructed by the Client, we will aggregate related client accounts for
the purposes of determining the account size and annualized fee. The common practice
is often referred to as “householding” portfolios for fee purposes and may result in lower
fees than if fees were calculated on portfolios separately. Our method of householding
accounts for fee purposes looks at the overall family dynamic and relationship. When
applicable and noted in the Investment Management Agreement, concentrated stock
positions may also be excluded from the fee calculation.

     Investment Management Associates, Inc.– 5690 DTC Blvd., Suite 140W, Greenwood Village, CO 80111

                                         FORM ADV 2A Brochure

We instruct your independent qualified custodian holding your funds and securities to
debit your account directly for our advisory fee and pay that fee to us. You provide written
authorization permitting this direct fee deduction in your Investment Advisory Agreement
with us, and in your custodial account-opening paperwork. Further, your custodian agrees
to deliver an account statement to you on at least a quarterly basis indicating all the
amounts deducted from the account, including our advisory fees.

Either IMA or the Client may terminate the Agreement at any time upon providing written
notice to the other party. Upon receipt of a client’s notice of termination, we are no longer
responsible for monitoring the securities in the client’s account, and we will have no
further obligation to act or advise the client with respect to those assets. Notice given by
the client shall be effective upon actual receipt by IMA at the address specified on the
Investment Advisory Agreement or the then current address. The management fee will
be pro-rated to the date of termination, for the quarter in which the cancellation notice
was given and the unearned fee refunded to the client’s account.

Additional Fees and Expenses
In addition to the advisory fees paid to our Firm, clients also incur certain charges imposed
by other third parties, such as broker-dealers, custodians, trust companies, banks and
other financial institutions (collectively “Financial Institutions”). These additional charges
include custodial fees, charges imposed by a mutual fund or ETF in a client’s account, as
disclosed in the fund’s prospectus (e.g., fund management fees and other fund expenses),
deferred sales charges, odd-lot differentials, transfer taxes, wire transfer and electronic
fund fees, and other fees and taxes on brokerage accounts and securities transactions.
Our brokerage practices are described at length in Item 12, below. Neither our Firm nor
its supervised persons accept compensation for the sale of securities or other investment
products. Further, our firm does not share in any of these additional fees and expenses
outlined above.

ITEM 7 - TYPES OF CLIENTS
We provide investment advice to individuals, high net worth individuals, foundations,
pension and profit-sharing Plans, trusts, charitable organizations, and corporations and
     Investment Management Associates, Inc.– 5690 DTC Blvd., Suite 140W, Greenwood Village, CO 80111

                                         FORM ADV 2A Brochure

other businesses. The minimum initial account value for opening an account with our firm
is $500,000 of investable assets, which can be separated into multiple accounts of at least
$250,000 each. We reserve the right to make exceptions, at our discretion, on a case-by-
case basis.