Realterm Transportation LLC

Item 5.        Fees and Compensation

Prior to investing, each investor is asked to carefully read and review the particular Funds’
Governing Documents for a complete understanding of the terms related to the Investment Fund,
including the compensation received by the Adviser and its affiliates. The information contained
in this Brochure is only a summary and is qualified in its entirety by each such Investment Funds’
Governing Documents.

Certain of the Funds’ Governing Documents permit the Adviser or its affiliates to reduce fees
applicable to an underlying investor in a Fund at the discretion of the Adviser or its affiliates. In
addition, the Adviser and its affiliates have entered into and will enter into side letters or similar
agreements with certain Fund investors. Such side letters have the effect of providing additional
rights or supplementing certain rights or terms of a particular Fund’s Governing Documents as
they relate to certain investors, including reduced fee arrangements.

Management Fees

Closed-End Funds. Each of the Closed-End Funds will generally pay Realterm an asset
management fee (the “Management Fee”) on an annual basis equal to 1.50% of aggregate investor
capital commitments. Investors participating in a closing after a Closed-End Fund’s initial closing
will bear the Management Fee from such date. Upon the earlier to occur of (i) the date when all
commitments have been invested or otherwise used to pay expenses of the Closed-End Fund, (ii)
the relevant General Partner (or an affiliate thereof) first begins receiving or accruing Management
Fees from another Closed-End Fund meeting certain criteria, and (iii) the term or occurrence of
certain events specified in the Governing Documents (such date, the “Stepdown Date”), the
Management Fee will be reduced and will equal 1.50% of (a) the aggregate funded commitments,
as reduced by (b) investments that have been completely written off for U.S. federal income tax
purposes and distributions constituting returns of capital. 1 The Management Fee will be payable
until proceeds from all portfolio investments are distributed, the term of the Fund ends, or until
Realterm’s relationship with the Closed-End Fund is terminated for other reasons (as described in
the Governing Documents).

The Governing Documents set forth the full list of terms under which Management Fees will be
reduced, offset or otherwise be limited, and consequently investors should expect to bear the full
specified Management Fee rate in the Governing Documents until they are reduced in the
circumstances and on the date(s) specified therein.

Under the Governing Documents, where the fair market value of an investment exceeds the total
amount of investment contributions relating to such investment, post-Stepdown Date Management
Fees will not be calculated based upon such appreciated value, and will instead continue to be
calculated based on the amount of such investment contributions. However, where the fair market
value of such investment is less than the total amount of investment contributions relating to such
investment, the Governing Documents do not require Management Fees after the Stepdown Date
to be reduced. To the extent specified in the Governing Documents, all capital

contributions that are not invested in portfolio investments (excluding capital contributions to pay
any Management Fees) shall be allocated among all of such Closed-End Fund’s portfolio
investments based upon the relative equity investments made in, or reserved for, such portfolio
investments as of the Stepdown Date, with any adjustments thereto as set forth in the Governing
Documents. Following the Stepdown Date, the amount of Management Fees otherwise payable
will be reduced based on the total investment contributions relating to such investment(s). In the
event that only a portion of a portfolio investment is disposed of by a Closed-End Fund, the
invested capital shall be adjusted based on the percentage of such portfolio investment disposed
of and the percentage retained, as determined in the reasonable discretion of the General Partner.

As a result, the amount of Management Fees generally will not correspond with fluctuations in a
Closed-End Fund’s net asset value, including following the investment period, and will not be
reduced in connection with any write-downs, except in the case of investments completely written
off for U.S. federal income tax purposes.

In many circumstances, post-Stepdown Date Management Fees will include capitalized
transaction-specific expenses of unrealized investments. Further, Management Fees generally will
not be reimbursed or refunded under the Governing Documents in the event of realizations,
dispositions or partial write-downs that occur partway through the relevant calculation period.

Open-End Funds. Each of the investors in the Open-End Funds generally will pay Realterm a
Management Fee on an annual basis at a rate that is based upon the aggregate size of such investor’s
investment in such Open-End Fund, generally ranging from 0.85% to 1.25% of such investor’s
share of the relevant Open-End Fund’s net asset value. Investors in RALP will be subject to a
quarterly Management Fee equal to 5.50% of RALP’s cash flow before debt service.

Management Fees Generally. Installments of the Management Fee payable for any period other
than a full quarterly period are adjusted on a pro rata basis according to the actual number of days
in such period. As a general matter, Management Fees will be payable during term extensions
unless otherwise agreed with investors in the relevant Fund.

It is expected that any future Funds will have a similar compensation structure.

Realterm is permitted to exempt certain “affiliated partner” investors in the Funds from payment
of all or a portion of Management Fees, including Realterm and any other person designated by
Realterm, such as “friends and family” of Realterm or its personnel, or other investors meeting
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Item 7.        Types of Clients

Realterm provides investment advice solely to its Fund clients, and references throughout this
Brochure to “clients” and to Realterm’s related duties to and practices on behalf of its clients and/or
investors should be construed accordingly. Realterm does not “look through” the investment
vehicle to each investor in determining its client relationship. Realterm, however, does maintain
investor relations with investors in its Funds, including but not limited to public and corporate
pension plans, insurance companies, sovereign wealth funds, endowments and foundations, and
funds of funds.

The private funds qualify for an exclusion from the definition of “investment company” under
Section 3(c)(1) or 3(c)(7) of the Investment Company Act.

Investors participating in the private funds are required to meet certain suitability and net worth
qualifications, such as being (1) an accredited investor within the meaning of Rule 501 of
Regulation D under the Securities Act of 1933, as amended (“Securities Act”) and (a) a “qualified
purchaser” as defined in Section 2(a)(51) of the Investment Company Act of 1940, as amended
(the “Investment Company Act”) or (b) a “knowledgeable employee” within the meaning of Rule
3c-5 of the Investment Company Act, or (2) a non-U.S. person, depending on the eligibility
requirements of the specific private fund.

The minimum investment in the private funds is stated in the applicable offering and governing
documents. The minimum investment size may be waived for certain investors at the Adviser’s
discretion.