Circuit demonstrates how a binary combination is convered to a HEX number. The switch to the left position is a binary 0, and the switch to the right position is a binary 1. For example if all the switches are to the left then binary 0000 would be 0 in HEX. If all the switches were to the right then binary 1111 would be F in HEX. If the most left switch were to the left and the others to the right then binary 0111 would be 7 in HEX.