Luminus Management LLC

ITEM 7 – TYPES OF CLIENTS

Luminus’ clients are the Funds which are privately offered pooled investment vehicles. The Funds
are structured as limited partnerships, limited liability companies or similar legal entities which
Luminus and its related parties control. Although Luminus is a registered investment adviser, the
Funds rely on rules promulgated under the United States federal securities laws that exempt
privately offered partnerships from registering as investment companies.

Investment in the Funds is limited to investors that meet certain financial sophistication
requirements. Investors in the Funds must be (i) “accredited investors” within the meaning of
Regulation D under the Securities Act of 1933, as amended; and (ii) “qualified purchasers” within
the meaning of the Investment Company Act of 1940, as amended. Due to the active plan of
liquidation, the Funds are not accepting new investments.

Luminus sub-advises the Iris TIME Fund, a privately offered pooled investment vehicle managed
by Iris. Luminus does not currently, nor do they intend to, offer sub-advisory services to additional
funds. However, Luminus may, without notice, elect to sub-advice additional pooled investment
vehicles in future.

Luminus does not currently, nor do they intend to, manage any separate accounts. However,
Luminus may, without notice, elect to manage separate accounts for individual or institutional
clients.

ITEM 8 – METHODS OF ANALYS IS, INVES TMENT STRATEGIES AND RISK OF LOSS

As noted in Item 4- Advisory Business, all Funds are currently working towards a plan of
liquidation. As of the publishing date of this Brochure, the exact timing for full liquidation is
unknown but expected to occur in one to three years. Upon the conversion of all the Funds’ assets
to cash, Lunds will execute the liquidating distribution as soon as reasonable.

The following represents the Fund’s Methods of Analysis, Investment Strategies and Risk of Loss
prior to the plan of liquidation and as currently deployed.

Luminus seeks to achieve positive investment returns for Clients by identifying inefficiencies in
the power, energy, utilities and related industries and sectors. Luminus’ investment professionals
have extensive backgrounds and experience analyzing operating companies specializing in power
generation. Luminus’ investment professionals utilize fundamental as well as technical analysis to
formulate investment decisions.

Luminus’ core strategy focuses on investments across the capital structure of publicly traded
power, energy, utilities and related companies. Luminus also implements opportunistic
investments in the power markets and private investments within the power, energy, utilities and
related industries and sectors.

Client portfolios are concentrated in companies that operate within the power, energy, utilities and
related industries and sectors. Adverse performance of these sectors may negatively impact the
performance of Clients’ portfolios.

Certain derivative instruments utilized in the investment strategy may increase leverage, returns,
risk and possibilities of rapid gains or losses as well as expose Clients to counterparty risk. As with
any investment, an investment in a Fund has the possibility of loss, including the loss of principal.

Clients’ investments may be in securities or investments that are considered illiquid or semi-
illiquid or could become illiquid or semi-illiquid in a difficult market environment. Illiquid
securities may be difficult to price and/or sell in an orderly manner at prices estimated to be fair
market value.

Clients utilize leverage to attempt to enhance returns. The use of leverage may also magnify the
possibility of loss and may cause Luminus to sell positions collateralizing leveraged positions.

Risk Factors

A summary of the risk factors applicable to an investment in the Funds is set forth below. An
investment in the Funds will involve significant risks, including loss of the entire investment.
Investors should have the financial ability and willingness to accept the risk characteristics of the
Funds’ investments. Such risks include, without limitation:

Past Performance of Affiliated Funds

Past performance is no assurance of future returns. Accordingly, an investment in the Funds entails
a high degree of risk. In addition, the past investment performance of any other fund or account
managed by the Management Company, which has or has had an investment program which is
similar to, or different from, the investment program of the Funds is not indicative of the results
that the Funds may achieve. The Funds will have a different investment portfolio and generally
will employ different investment strategies and techniques from such other funds and accounts.
Accordingly, the results of the Funds are likely to be different from and are independent of the
results obtained by such other funds and accounts.

Dependence on the Management Company; Investors Do Not Participate in the Management of
the Funds

The Management Company manages the investment program of the Funds. The success of the
Funds depends upon, among other things, the ability of the Management Company to develop and
successfully implement the investment program of the Funds. No assurance can be given that the
Management Company will be able to do so. Decisions made by the Management Company may
cause the Funds to incur losses or to miss profitable opportunities on which it may otherwise have
capitalized. Investors have no right or power to participate in the day-to-day management or
control of the business of the Funds, nor an opportunity to evaluate the specific strategies used, or
investments made, by the Funds or the terms of any such investment.

Reliance on Key Personnel

All decisions with respect to the investment of the Funds’ assets will be made by the Management
Company, which relies on the services of one or more key members of the investment team. As a
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