Lobnek Wealth Management Inc

5.     Fees and Compensation

       A.      Fees

Lobnek's remuneration is defined according to the services it provides.

For its Asset Management Services, both, discretionary and non-discretionary, Lobnek charges a percentage
per annum of the total assets being managed. The applicable annual rate is a single flat rate applied to the
client’s total assets under management. The rate agreed upon for each client is determined within the range
set out in the schedule below, based on the total value of assets managed and the overall scope and nature
of the client’s relationship with the Firm. Clients engaged exclusively for Asset Management Services will
generally be charged a rate toward the higher end of the applicable range. Clients who also engage the Firm
for Financial Reporting, Wealth Planning, or other services may be charged a rate toward the lower end of the
applicable range, reflecting the breadth of the overall relationship. The agreed rate is set out in the client’s
asset management agreement. The following is the schedule of Lobnek’s standard fee ranges:

         Total Assets Managed              Annual Fee per annum, as a
                                           Percentage     of   Assets
                                           Managed
         Below $5 million                  0.95% to 1.35%
         $5 million to 10 million          0.85% to 1.25%
         $10 million to $25 million        0.75% to 1.15%
         $25 million to $50 million        0.65% to 1.05%
         $50 million to $100 million       0.55% to 0.95%
         Above $100 million                0.45% to 0.85%

In the case of Private Equity, instead, Lobnek proposes a performance-linked remuneration model allowing
the alignment of the Firm’s interests with those of the client. In this case, Lobnek’s fees will be defined as a
share of the capital appreciation of a given Private Equity investment. See Item 6 for a description of certain
conflicts of interest that may arise from such performance-based fees.

1SEC instructions require Lobnek to disclose the amount (rounded to the nearest $100k) of discretionary and non-
discretionary assets managed as of a date no more than 90 days before the date of this update.

For its Financial Reporting Services, Lobnek charges a flat remuneration per account and per year. This
amount is determined on the basis of the complexity of the account and its components, the frequency of
trading activity, and the ability of the custodian to provide information on the account in a workable format,
preferably electronically. It may be subject to review when material changes occur affecting the account's
complexity.

Example:

A client hires Lobnek to manage his Core Asset Class assets, totalling $37 million. On top of this, the client
asks Lobnek to provide consolidated reporting for 4 different items: Satellite A, an account consisting of
biotech equity stocks, Satellite B, an account consisting of emerging market stocks, his condo apartment in
Miami, and an art collection. Finally, the client asks Lobnek to provide Cost Control and Risk Control reporting
for Satellites A and B. His annual fees are calculated as follows:

           Item           Value              Service                   Annual Fee
           Core           $37,000,000        Asset Management          (0.85%) $314,500
           Satellite A    $13,000,000        Consolidation             $6,000
           Satellite A                       Cost Control              $5,000
           Satellite A                       Risk Control              $4,000
           Satellite B    $3,400,000         Consolidation             $12,000
           Satellite B                       Cost Control              $10,000
           Satellite B                       Risk Control              $8,000
           Condo          $8,300,000         Consolidation             $1,000
           Art            $2,700,000         Consolidation             $3,500
           Total          $64,400,000                                  $364,000

In this example, the asset management fee of 0.85% — toward the lower end of the $25 million to $50 million
bracket — reflects that the client has engaged the Firm for a broad range of services beyond asset
management, including consolidation, cost control, and risk control reporting across multiple accounts. A client
engaging the Firm solely for asset management of a $37 million portfolio would generally be charged a rate
toward the higher end of that bracket. Because in this example Satellite A is a buy-and-hold account with
relatively low activity, and because the account is deposited at a custodian that is able to provide Lobnek with
automatic electronic data transfer, Lobnek is able to provide its consolidation reporting at a very low price of
$6,000 per annum. Additional services such as Cost Control and Risk Control reporting are then discounted
for this account as a marketing courtesy. Satellite B is more complex to analyze due to high frequency of
trades and data being provided to Lobnek in a less user-friendly way. As a consequence, the price of
consolidation reporting for Satellite B, $12,000 per annum, is higher, in spite of the value of the account being
lower than that of Satellite A. Additional services such as Cost Control and Risk Control reporting are
discounted for this account as a marketing favor for the client. The client instructed Lobnek to include his
condo apartment in Miami in the consolidation reporting, and to assume a depreciation in value of 3% per
annum. Lobnek determines the value of the condo by applying the 3% depreciation to the initial value provided
by the client. Finally, the client instructed Lobnek to also include his art collection in the consolidation reporting,
and to apply an annual appreciation value of 5%, unless otherwise instructed when the client has his collection
professionally appraised.
...

7.     Types of Clients

Lobnek provides services to individuals and families alike, their trusts and estates, as well as pension and
profit-sharing plans, charitable organizations, foundations, endowments and companies.

Minimum account size is generally $1 million, or its equivalent, consistent with the first full fee bracket in the
Firm’s fee schedule. This minimum may be negotiated or waived depending on the individual circumstances
of the client relationship. The Firm may also serve clients with assets below $1 million where this serves a
legitimate business purpose, such as existing client relationships or clients expected to grow into the minimum
over time.

Lobnek reserves the right to waive or reduce certain fees based on unique individual circumstances, special
arrangements, or pre-existing relationships. Lobnek also reserves the right to decline services to any prospec-
tive client for any non-discriminatory reason.