Archer Investment Corporation

Item 5 - Fees and Compensation

Investment Management Fees

The client can determine to engage Archer to provide discretionary or non-discretionary
investment management services on a fee-only basis in accordance with the following schedule:

Market Value      Annual Fee
$0 to $500,000       1.00%
$500,001 to $999,999 0.75%
$1,000,000+          0.50%

Archer’s annual investment management fee is prorated and charged quarterly, in arrears, based
upon the average market value (except as noted below) of the assets of the previous quarter. Fees
will be debited from the account in accordance with the client authorization in the Client
Services Agreement.

Limited Negotiability of Advisory Fees: Although Archer has established the standard advisory
fee schedule mentioned above, Archer retains the discretion to negotiate alternative fees on a
client-by-client basis. Client facts, circumstances, and needs are considered in determining the fee
schedule. These include the complexity of the client’s financial situation, related accounts,
portfolio style, and account composition, among other factors. In addition, under certain
circumstances, Archer reserves the right to waive its advisory fees for a client account’s
investment in the Archer Series Trust, including Employee Retirement Income Security Act
(“ERISA”) accounts, at the discretion of Archer’s principal. The specific annual fee schedule is
identified in the written agreement between Archer and each client.

Archer generally requires a minimum account size of $25,000. However, Archer, at its sole
discretion, reserves the right to reduce its account minimum, and charge lesser or more on each
account up to a 1% investment management fee based upon certain criteria (i.e. anticipated future
earning capacity, related accounts, negotiations, limited scope services, other services, etc.)

Retirement Plan Billing

Archer's investment management fee is charged quarterly at the end of each quarter, except for
some 401k plans. Some 401k providers charge monthly on the average balance, and others charge
a flat fee. Those clients will be notified at the time of account application if they will be billed
monthly on the average balance or a flat fee.

Additional Fees

The advisory fees discussed above include payment for investment advisory advice from Archer
only. The advisory fee does not include mark-ups, markdowns, or payment of brokerage
commissions, other transaction costs, or custodial fees that client will incur, as applicable. The
advisory fee also does not include management or other fees imposed by the investment
companies. Such brokerage commissions, mark-ups or markdowns, and other costs are charged to
the client accounts in addition to the advisory fee. Any accounts that are managed directly at The
Archer Funds or a custodian outside of TradePMR, Inc. (“TradePMR”), American Funds, or any
401(k) will be charged on the total balance at the end of the quarter or average fees for the
quarter. Please refer to item 12 of this brochure for additional information regarding brokerage
fees and other transaction costs.

Either party, without the payment of penalty, may terminate the advisory agreement in
accordance with the written agreement. Upon such termination, any unpaid fees for services
received by the client are due and immediately payable to Archer.

Neither Archer nor any of Archer’s supervised persons accepts compensation for the sale of
securities or other investment products, including asset-based sales charges or service fees from
the sale of mutual funds. Archer’s supervised persons including Investment Advisor
Representatives are compensated by Archer Investment Corporation for the majority of the fees
paid by the client under the investment management fee schedule.

The Archer Funds

Archer also manages The Archer Funds which were established under The Archer Investment
Series Trust. Archer Investment Corporation charges a flat .50% management fee billed on the
daily average balance. From time to time, Archer representatives recommend investment products
to clients, including mutual funds, sponsored by or managed by Archer. Under certain
circumstances, Archer and its representatives also recommend portfolios including proprietary
funds to current and prospective clients. Archer representatives have a financial incentive to
recommend proprietary funds over other funds, programs, or services which may be available.
Archer and its representatives have a conflict of interest when assisting clients in selecting these
investment services and products because the owners of the related companies receive more
aggregated compensation if the client selects products or services managed or offered through
Archer and its affiliates.

Archer Investment Corporation receives servicing fees from investment companies it
recommends in some instances to help offset the costs of servicing clients. These fees do not
increase or decrease the amount a client pays in their total amount paid to Archer Investment
Corporation. Archer and its representatives have a conflict of interest when assisting clients in
selecting these investment services and products because the owners of the related companies
receive more aggregated compensation if the client selects products or services managed or
offered from these companies that pay a servicing fee to Archer Investment Corporation.

To mitigate this conflict, Archer maintains policies and procedures which require that all
investment recommendations are suitable for each client’s portfolio. In addition, clients have the
option to purchase investment products that Archer recommends through other brokers or agents
that are not affiliated with Archer, and clients are under no obligation to invest in The Archer
Funds.

Clients and prospective clients should refer to the Archer Investment Series Trust’s offering
documents for information regarding the fees received by Archer Investment Corporation from
the Trust.
...

Item 7 - Types of Clients

Archer generally provides investment advice to investment companies, trusts, pension plans,
individuals, and corporations.

Archer requires a minimum account size of $25,000 for separately managed accounts. At the sole
discretion of Archer’s management, under certain circumstances, account minimums are waived
due to business considerations or account relationships.