Archer Capital Group Management LLC

Item 5 – Fees and Compensation

A.      Fee Schedule
The fees and compensation payable to Archer are generally not negotiable, but Archer may, in its sole
discretion, reduce, waive or calculate differently the management fee and carried interest (discussed
below) with respect to any Investor.
        1.     Management Fee
Archer (either directly or via an affiliate) typically receives a quarterly management fee from each
Fund calculated as a percentage of each Investor’s capital commitment. The management fee varies
by Fund (as described in Fund Documents). Generally, the management fee can range up to (i) 2.0%
per year of the Investors’ capital commitment during the investment period, and (ii) after the
investment period ends, the management fee can range up to 2.0% of invested capital per year with
respect to investments that have not been disposed of or completely written off.
The management fee otherwise payable by the Fund for an annual period shall be reduced (but not
below zero) for the following events: cashless contributions made with respect the General Partners
capital commitments; any private placement fees and related expenses; 100% of any consulting,
advisory, directors’, investment banking, monitoring, transaction, closing, break-up or other fees or
payments received by Archer, the General Partners, any managing director, or affiliates; and excess
organizational or other expenses subject to an expense cap.
Archer has, on occasion, appointed a third party, including Venture Partners or Venture Scouts
(“Venture Partners”), to consult or otherwise support portfolio company due diligence and
investments. Venture Partners are typically compensated by Archer or the General Partnership.
However, any other fees earned for such services paid by or on behalf of the relevant portfolio
company are off set against management fees. Such third parties are generally reimbursed by a
portfolio company (or by Archer on behalf of a portfolio company) for the cost of their travel to and
from a portfolio company board meeting or other portfolio company business. None of these
payments, board fees or reimbursements offset the management fee.

                                                                                      Part 2A of ADV:
                                                              Archer Capital Group Management, LLC
                                                                                             Brochure
Co-Investment Funds fees vary based on the specific negotiated terms of each vehicle, but generally
Investors of a current fund do not pay a management fee or carried interest. At times, In lieu of such
management fee, Co-Investment Funds pay an annual administrative fee to administer the vehicle.
Please read the relevant Fund Documents for detailed information on the management fees you will
pay as an Investor in that Fund.
        2.     Carried Interest
The General Partners receive, upon distribution to Investors, a percentage of profits made by each
Fund. The formula for calculating carried interest varies by Fund (as described in the Fund
Documents). Generally, carried interest is calculated as a percentage of proceeds from any
investment, subject to various provisions such as return of Investor’s capital, preferred returns, and
General Partner claw-back provisions among others. Please read the relevant Fund Documents for
detailed information on the carried interest provisions of that Fund. Carried interest is distributed
only in respect of those Investors who are “qualified clients” as defined in Rule 205-3 of the Advisers
Act.

B.      Payment of Fees and Carried Interest
Management fees and carried interest are generally reflected in each Investor’s capital account.
Management fees are typically paid in advance, while carried interest is generally realized and
allocated upon distributions by a Fund to its Investors, in each case as described in the applicable
Fund Documents.
C.      Third-Party Fees and Other Expenses
Each Fund bears, whether directly or through reimbursement to Archer or a General Partner, (i) all
of the organizational costs, fees, and other expenses incurred in connection with the formation and
organization of the Fund and in some instances the General Partner, including, without limitation,
legal and accounting fees, filing, capital raising, printing, travel and expenses incident thereto with
such formation and organization; (ii) all costs and expenses incurred in investigating, holding,
purchase, sale or exchange of investments (whether or not ultimately consummated), including but
not by way of limitation, private placement fees, finder’s fees, interest and fees on money borrowed
by a Fund, Archer on behalf of a Fund, or a General Partner on behalf of a Fund, real property or
personal property taxes on investments, including documentary, recording, stamp and transfer taxes,
brokerage fees or commissions, depository and similar fees or commissions (including any merger
fees payable to third parties), legal fees, expenses incurred in connection with investigation,
prosecution or defense of any claims by or against the Fund, including claims by or against a
governmental authority, audit and accounting fees, fees for outside appraisers and independent asset
valuation services, research (including periodicals, databases or research services), data provider
services (including management systems and software), diligence background checks, legal,
accounting, due diligence review and consulting fees relating to investments or proposed
investments, taxes applicable to a Fund on account of its operations, fees incurred in connection with
the maintenance of bank or custodian accounts, all expenses incurred in connect with the registration
of a Fund’s securities under applicable securities laws or regulations, expenses related to organizing
entities through or in which a Fund’s investment will be made, and reasonable travel expenses
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Item 7 – Types of Clients

As described in Item 4.B., Archer provides investment advice and management to the Funds, which
are privately offered pooled investment vehicles.
Archer restricts the number of Investors in the Funds and offers Interests only through non-public
transactions in order to maintain the Funds’ exclusion from “investment company” status under the
Investment Company Act of 1940. Investors are required to be “accredited investors,” as defined in
Regulation D under the Securities Act of 1933 and meet other eligibility criteria as specified in the
Fund Documents.