The Karras Company Inc

ITEM 5          FEES AND COMPENSATION
Fees for Wealth Planning and/or Investment Consulting Services
Wealth planning and investment consulting fees are negotiable between the client and the IARs of Karras. Fees charged
for these services will be dependent upon the anticipated time to provide the services and complexity of the plan and/or
your financial situation. The fees are determined in advance and mutually agreed upon between the client and the IARs
of Karras and will be disclosed within the appropriate agreement prior to being charged. The client-advisor engagement
begins at the time you sign, and we accept the agreement.

ADV Part 2A: Firm Brochure                                                                                   February 2026

                                                 The Karras Company
Fees for wealth planning and investment consulting services can be structured as an hourly rate, fixed dollar fee, as a
percentage of assets being advised upon or as a combination of fee structures. If charged as a percentage, the Fee is not
to exceed 1.00% of the value of assets on which services are being provided. For hourly arrangements, our standard rate
is $250 per hour.
Advisory fees generated in the implementation of a financial plan may be used to offset financial planning and/or
investment consulting fees, at the discretion of Karras. It is possible that you may pay more or less for similar services
which may be available through another firm. In addition, fees for planning and/or consulting services may be offered to
our employees, family members and friends at a reduced rate.
It is important to note that we may provide investment product or securities recommendations as part of financial
planning services or hourly consulting services. This presents a conflict to the extent that Karras receives compensation
from implementation of such recommendations. Also, compensation to Karras may vary depending on the product or
service Karras recommends.
We have a fiduciary duty to act in your best interest and as a result, we supervise the activities of our financial advisors to
ensure that the provision of investment advice to you is appropriate. In addition, we monitor the appropriateness of
existing advisory accounts on an ongoing basis by conducting various reviews, such as account concentration and
household transaction activity.
Asset Based Fees
For service agreements that are to be based on a percentage of assets managed, Fees are payable in accordance with the
following schedule and will be deducted from your advisory account on a quarterly basis.
                                            Fee Based Relationship
                                                                           Fee
                                                    Value
                                                    Up to $1 Million      1.00%
                                             $1 Million to $5 Million     0.85%
                                           $5 Million to $10 Million      0.75%
                                                    Over $10 Million Negotiable

Fees for Accounts Utilizing Separately Managed Accounts (SMAs)

Clients who select an investment strategy that includes Separately Managed Accounts (SMAs) through the Freedom
UMA or Raymond James Consulting Services programs will see a total management fee in their advisory agreement that
includes both The Karras Company’s advisory fee and an additional SMA fee. Unlike mutual funds or ETFs, where
management expenses are embedded in the product, SMA fees are charged separately and incorporated into the total
advisory fee.

The SMA fee is determined by Raymond James based on their fee schedules and is not retained by The Karras Company.
These fees generally range from 0.25% to 0.35%, depending on the selected strategy. As a result, the total fee in the
client’s advisory agreement may be higher than the base advisory fee schedule outlined in this document.

For example, if a client’s account would otherwise be subject to a 0.85% advisory fee under the standard schedule, but
the selected SMA strategy includes a 0.35% additional fee from Raymond James, the total fee listed in the client
agreement will be 1.2%. Clients should review their advisory agreement for the specific total fee applicable to their
account and contact us with any questions.

ADV Part 2A: Firm Brochure                                                                                     February 2026

                                                   The Karras Company

Other Service Fees
For service arrangements not based on a percentage of assets, Fees can be remitted via check, debited from an account
custodied with RJA (non-retirement accounts only), or via any other manner agreed upon by the firm and client and
outlined in the executed advisory or consulting agreement.

Advisory Account Programs
Karras may be compensated for services through fees from advisory programs (IMPAC, Freedom, Ambassador, Passport,
etc.). In certain circumstances, additional costs or fees, account minimums and payment terms may be applicable.
                                        Summary of Advisory Account Programs
        Program1         Investment
                                               Authority             Minimums                 Investment Products
                           Advisor
    IMPAC2                  Karras          Discretionary /          Negotiable                       All
                                                 Non-
                                             Discretionary
    Ambassador              Karras          Discretionary /          Negotiable                       All
                                                 Non-
                                             Discretionary
    Passport                Karras          Discretionary /          Negotiable                       All
...

ITEM 7          TYPES OF CLIENTS
Karras generally provides investment advice to individuals, pension and profit-sharing plans, trusts, estates, charitable
organizations, institutions, corporations and business entities.
Karras generally requires new clients to have a minimum of $250,000 in assets under management; however, Karras may
also accept smaller accounts related to a current client relationship already established and IARs of Karras reserve the
right to waive minimums based upon the specific circumstances of an account or a relationship.
Clients must also be at age of majority to open an account with Karras.

ITEM 8          METHOD OF ANALYSIS, INVESTMENT STRATEGIES AND RISK OF LOSS
General
Karras provides an investment strategy and its implementation for clients, and clients of Karras receive the benefit of
Karras’ developed investment philosophies and strategies, research and due diligence, account monitoring and personal
financial planning recommendations.
The investment programs and strategies recommended for you are based upon your investment objectives, financial
situation and tolerance for risk as identified during consultations with your IAR. It is important for you to review
investment objectives, risk tolerance, time horizon, tax objectives and liquidity needs with your IAR prior to selecting an
investment product, program or strategy. All investments carry a certain degree of risk and no one particular security,
investment product, investment style or portfolio manager is suitable for all types of investors.