Alaethes Wealth LLC

Item 5: Fees and Compensation
Method of Compensation and Fee Schedule
 ASSET MANAGEMENT
 Alaethes offers direct asset management services to advisory Clients. Alaethes charges an
 annual investment advisory fee based on the total assets under management as follows:
         Assets Under Management                 Annual Fee             Quarterly Fee
             Up to $10,000,000                     0.75%                  0.1875%
        $10,000,0001 to $20,000,000                0.50%                   0.125%
             Over $20,000,001                      0.25%                  0.0625%

The annual fee may be negotiable 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.). Fees are billed quarterly in advance based on the amount of
assets managed as of the close of business on the last business day of the previous quarter.
Lower fees for comparable services may be available from other sources. Clients may
terminate their account within five (5) business days of signing the Investment Advisory
Agreement with no obligation and without penalty. Clients may terminate advisory
services with three (3) business days written notice. For accounts opened or closed mid-
billing period, fees will be prorated based on the days services are provided during the
given period. All unearned fees will be refunded to the Client. Client shall be given thirty
(30) days prior written notice of any increase in fees. Any increase in fees will be
acknowledged in writing by both parties before any increase in said fees occurs.
ASSETS HELD AWAY
Fees for these services will be based on a percentage of Assets Under Management. The
annual fee will be:
      Assets Under Management                  Annual Fee              Quarterly Fee
          Up to $10,000,000                      0.75%                   0.1875%
     $10,000,0001 to $20,000,000                 0.50%                    0.125%
          Over $20,000,001                       0.25%                   0.0625%
Fees will be paid in advance every quarter. Client will be provided an invoice at the
commencement of services payable within ten (10) days of receipt. Clients may choose to
pay Alaethes directly or have the amount deducted from another account managed by
Alaethes. Clients may terminate their services within five (5) business days of signing the
Investment Advisory Agreement with no obligation and without penalty. If the Client
cancels after five (5) business days, any unearned fees will be refunded to the Client, or any
unpaid earned fees will be due to Alaethes.
FINANCIAL PLANNING AND CONSULTING
Alaethes does not charge additional fees for Financial Planning and Consulting Services.
SEMINARS AND WORKSHOPS
Alaethes offers these seminars for a fee of $125 for the cost of books and materials
presented.
ERISA PLAN SERVICES
The annual fees are based on the market value of the Included Assets and will not exceed
0.75%. The annual fee is negotiable and will be charged as a percentage of the Included
Assets. Fees may be charged quarterly or monthly in arrears or in advance based on the
assets as calculated by the custodian or record keeper of the Included Assets (without
adjustments for anticipated withdrawals by Plan participants or other anticipated or
scheduled transfers or distribution of assets). If the services to be provided start any time
other than the first day of a quarter or month, the fee will be prorated based on the number
of days remaining in the quarter or month. If this Agreement is terminated prior to the end
of the billing cycle, Alaethes shall be entitled to a prorated fee based on the number of days
during the fee period services were provided or Client will be due a prorated refund of fees
for days services were not provided in the billing cycle.

 The fee schedule, which includes compensation of Alaethes for the services is described in
 detail in Schedule A of the ERISA Plan Agreement. The Plan is obligated to pay the fees,
 however the Plan Sponsor may elect to pay the fees. Client may elect to be billed directly or
 have fees deducted from Plan Assets. Alaethes does not reasonably expect to receive any
 additional compensation, directly or indirectly, for its services under this Agreement. If
 additional compensation is received, Alaethes will disclose this compensation, the services
 rendered, and the payer of compensation. Alaethes will offset the compensation against the
 fees agreed upon under the Agreement.
Client Payment of Fees
 Fees for asset management services are:
    •   Deducted from a designated Client account. The Client must consent in advance to
        direct debiting of their investment account.
    •   Check – to be remitted by Client to Alaethes
 Fees for assets held away services are:
    •   Check – to be remitted by Client to Alaethes
    •   Deducted from a non-qualified account managed by Alaethes
 Fees for ERISA services will either be deducted from Plan assets or paid directly to
 Alaethes. The Client must consent in advance to direct debiting of their investment account.
Additional Client Fees Charged
 Custodians may charge transaction fees on purchases or sales of certain mutual funds,
 equities, and exchange-traded funds. These charges may include mutual fund transaction
 fees, postage and handling and miscellaneous fees.
 For more details on the brokerage practices, see Item 12 of this brochure.
Prepayment of Client Fees
 Alaethes does not require any prepayment of fees of more than $1200 per Client and six
 months or more in advance.
 Fees for financial plans are billed 50% in advance with the balance due upon plan delivery
 Investment management fees are billed quarterly in advance.
 Fees for ERISA 3(21) and/or 3(38) services may be billed in advance.
...

Item 7: Types of Clients
Description
 Alaethes generally provides investment advice to individuals, high net worth individuals, or
 business entities.
 Client relationships vary in scope and length of service.
Account Minimums
 Alaethes requires a minimum of $3,000,000 to open an account. In certain instances, the
 minimum account size may be lowered or waived.