HBE Wealth Management LLC

Item 5 – Fees and Compensation

Fees and account minimums may be negotiable under certain circumstances, including certain individual client
circumstances such as clients age, complexity of the client’s situation, total size of financial assets, propensity
to add funds to accounts, and total client relationship, including with an affiliated entity.

HBE has contracted with FPAS for services including trade processing, collection of management fees, record
maintenance, report preparation, marketing assistance, and research. HBE has also contracted with FPAS for
sub-advisory services with respect to clients’ fixed income accounts. HBE pays a fee for FPAS’s services based
on management fees paid to HBE on accounts which use FPAS. Advisory fees are paid to HBE and the fee paid
by HBE to FPAS consists of a portion of the fee paid by clients to HBE and varies based on the total client
assets participating in FPAS through HBE. These fees are not separately charged to advisory clients. The fees
disclosed below are the total fees paid by a client and includes all sub-advisory fees charged by FPAS.

The specific manner in which fees are charged by HBE is established in a client’s written agreement with HBE.
HBE will request authority from Investment Management clients to receive quarterly payments directly from
the client's account held by an independent qualified custodian. Clients provide written limited authorization to
HBE, which is delegated to FPAS, to withdraw fees from the account through custodial paperwork.

Investment Management will be invoiced in advance at the beginning of each calendar quarter based upon the
value of the client’s account at the end of the previous quarter. New accounts are charged a prorated fee for the
remainder of the quarter in which the account is incepted (date of first trade). Market value will be based on
independent third-party sources or fair market value in the absence of market value. Client account balances on
which HBE calculates fees may vary from account custodial statements based on independent valuations and
other accounting variances, including mechanisms for including accrued interest in account statements. Clients
will receive custodial statements showing the advisory fees debited from their account(s). Certain third-party
administrators will calculate and debit HBE’s fee and remit such fee to HBE.

A client agreement may be canceled at any time by mutual agreement of both the client and HBE, or by either
party providing 30 days’ written notice to the other party specifying the date of termination. Upon termination
of any account, any prepaid, unearned fees will be promptly refunded.

HBE’s fees are exclusive of brokerage commissions, transaction fees, and other related costs and expenses
which shall be incurred by the client. Clients may incur certain charges imposed by custodians, brokers, third-
party investment and other third parties such as fees charged by fixed income subadvisors, custodial fees, odd-
lot differentials, transfer taxes, wire transfer and electronic fund fees, and other fees and taxes on brokerage
accounts and securities transactions. Mutual funds and exchange traded funds also charge internal management
fees, which are disclosed in a fund’s prospectus. These fees will generally include a management fee and other
fund expenses. All fees paid to HBE for investment advisory services are separate and distinct from the fees and
expenses charged by mutual funds and ETFs to their shareholders.

Such charges, fees and commissions are exclusive of and in addition to HBE’s fee, and HBE shall not receive
any portion of these commissions, fees, and costs.

Advisory Fees

Investment Management Services:

The annual fee for investment management services will be charged as a percentage of assets under
management, according to the schedule below:

                         Assets Under Management                             Annual Fee (%)
           For the next amount from 0 to $500,000                                1.25%
           For the next amount from $500,000 to $1,000,000                       0.90%
           For the next amount from $1,000,000 to $2,500,000                     0.70%
           For the next amount from $2,500,000 to $5,000,000                     0.50%
           For the next amount from $5,000,000 to $10,000,000                    0.40%
           For the next amount from $10,000 and above                            0.35%

Our minimum annual fee is $4,000.00.

All accounts for members of the client’s family (husband, wife and dependent children) or related businesses
may be assessed fees based on the total balance of all accounts.

We no longer provide advisory services to employer‑sponsored retirement plans, and therefore we do not
maintain a separate fee schedule for those services in this brochure.

Item 7 – Types of Clients

HBE provides services to individuals, including high net worth individuals, trusts, charitable organizations, and
businesses. As stated above in Item 5, investment management services clients are subject to a minimum annual
fee of $4,000.