Evans Investment Advisors LLC

Fees and Compensation
     Description
Investment advisory fees are billed to clients on a quarterly basis, in arrears, based on
the average account value during the quarter. The maximum annual investment
management fee is based on the following schedule:

      Average Assets Under Management               % Fee
      For the first $250,000                        1.25%
      For the next $750,000                         1.00%
      For the next $1,000,000                       0.80%
      For the next $1,000,000                       0.60%
      For the next $2,000,000                       0.50%
      For amounts over $5,000,000                   0.45%

Fees are negotiable at the discretion of management. All fees paid to advisor for
investment advisory services are separate and distinct from the fees and expenses
charged by mutual funds (described in each fund's prospectus) to their shareholders.
These fees will generally include a management fee and other expenses. If the fund
also imposes a sales charge, a client could pay an initial or deferred sales charge. Fees
paid to advisor are exclusive of all custodial and transaction costs paid to account
custodians or brokerage firms. The client should review all fees charged by mutual
funds, the advisor and others to fully understand the total amount of fees to be paid by
the client.
The initial fee is pro-rated for the first partial quarter, if any. Advisor will not have the
authority to withdraw funds or take custody of client’s funds or securities other than
where the client has authorized the deduction of investment advisory fee via a qualified
custodian. Fees are never based upon the performance of the account.
Some Retainer Agreements may be priced based on the complexity of work, especially
when asset management is not the most significant part of the relationship.
Financial plans are priced according to the degree of complexity associated with the
client’s situation.

       Fee Billing
Investment management fees are billed quarterly, in arrears, meaning that we invoice
you after the three-month billing period has ended. Payment in full is expected upon
invoice presentation. Fees are usually deducted from a designated client account to
facilitate billing. The client must consent in advance to direct debiting of their
investment account.

                                Evans Investment Advisors, LLC

      Other Fees
Custodians may charge transaction fees on purchases or sales of certain mutual funds
and exchange-traded funds. These transaction charges are usually small and incidental
to the purchase or sale of a security. The selection of the security is more important
than the nominal fee that the custodian charges to buy or sell the security.
EIA, in its sole discretion, may waive its minimum fee and/or charge a lesser investment
advisory fee based upon certain criteria (e.g., historical relationship, type of assets,
anticipated future earning capacity, anticipated future additional assets, dollar amounts
of assets to be managed, related accounts, account composition, negotiations with
clients, etc.).

      Expense Ratios
Mutual funds generally charge a management fee for their services as investment
managers. The management fee is called an expense ratio. For example, an expense
ratio of 0.50 means that the mutual fund company charges 0.5% for their services.
These fees are in addition to the fees paid by you to EIA.
Performance figures quoted by mutual fund companies in various publications are after
their fees have been deducted.

     Past Due Accounts and Termination of Agreement
EIA reserves the right to stop work on any account that is more than 30 days overdue.
In addition, EIA reserves the right to terminate any financial planning engagement
where a client has willfully concealed or has refused to provide pertinent information
about financial situations when necessary and appropriate, in EIA’s judgment, to
providing proper financial advice. Any unused portion of fees collected in advance will
be refunded within 30 days.

Types of Clients
     Description
EIA generally provides investment advice to individuals, pension and profit sharing
plans, trusts, estates, or charitable organizations, corporations or business entities.

                                Evans Investment Advisors, LLC

Client relationships vary in scope and length of service.

     Account Minimums
EIA does not set specific account minimums.

Methods of Analysis, Investment Strategies and Risk of Loss