investor powerpoint revised 8.27.15

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Welcome & Introductions A Warm Welcome to Our Invited Guests The Q Global Trust Team Larry Hawkins, Managing Partner Ronen Gershon, CEO Q Investments John Leatherman, CPO Q Health Services Adrian Prosser, Director Capital Division

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Page 1: Investor PowerPoint Revised 8.27.15

Welcome & IntroductionsA Warm Welcome to Our Invited Guests• The Q Global Trust Team

Larry Hawkins, Managing Partner Ronen Gershon, CEO Q Investments John Leatherman, CPO Q Health Services Adrian Prosser, Director Capital Division

Page 2: Investor PowerPoint Revised 8.27.15

Who is Q Global Trust

Larry Hawkins, Co-CEO and Board Co-Chair Managing Partner, Q Global Trust Primary Leadership Responsibilities: Strategic Design & Implementation;

Operations; Facility Development & Management; Finance, Accounting, & Budgeting.

Ronen Gershon, Co-CEO and Board Co-Chair CEO, Q Investments Primary Leadership Responsibilities: Sales & Marketing, Client

Engagement; Corporate Security.

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Who Is Q Global Trust?

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Past Projects

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Past Projects

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Past Projects

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Q Global TrustRecent Sales or Purchases• Recent sale of group’s ownership of Telecommunications Company.

$8,803,788• Sale of Real Estate Holdings. $12,600,000 • Sale of Real Estate Holdings. $29,700,000• Sale of Real Estate Holdings. $32,000,000• Purchase of ACLF units in Delray Beach Florida and Naples Florida. $112,000,000

Bank Transactions (as borrower for own account or funding participation of investment)

• Sterling Bank &Trust (Real Estate). $1,200,000• American National Bank (Telecommunications). $1,800,000• Regions Bank (Real Estate). $2,014,000• Stonegate Bank (Telecommunications). $2,400,000• Florida Capital Bank (Real Estate Assembly and Consolidation).

$4,200,000

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• Fidelity Federal (Residential Real Estate). $6,850,000

• Fidelity Federal (Residential Real Estate). $12,400,000

• GMAC/CapMark (Commercial Real Estate). $23,618,000

• GMAC/CapMark (Commercial Real Estate). $27,819,000

• Sun American Bank- participation (Real Estate). $38,000,000

• CapMark – Included 3 pieces, primary, mezz, equity (Commercial Real Estate). $38,500,000

Equity/Investment Loans• Mezzanine Loan (Commercial Real Estate). $400,000

• Risk Capital Seed Investment (Telecommunications). $500,000

• Equity Investment (Telecommunications). $900,000

• Mezzanine Loan (Real Estate). $2,400,000

• 34 individual investment loans ($100k to $200k each). $3,800,000

• Risk Capital Seed Investment (Golf Course). $4,500,000

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Wall Street Investment Loans (as borrower)

• Investment Loan (Golf Course Subdivision). $18,500,000

• Starwood Capital (Commercial Real Estate). $47,500,000

• Starwood Capital (Commercial Real Estate). $64,500,000

Municipal Bond Issues (TIFF)• Municipal Bond Issue (Subdivision Infrastructure and Golf Course).

$4,200,000

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WHY HAS

INVESTED IN

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What is Behavioral Health?Behavioral Health: Broad term describing specialized aspect of psychiatric and psychological care that encompasses multidisciplinary areas of medicine, psychology, psychopathology, and the individual’s ability to function.• Behavioral Health Areas of Focus Include;

Treatment of Psychological Disorders such as mood disorders (e.g. major depression) and anxiety disorders (panic attacks). Most often referred to as Mental Health Treatment.

Treatment of Drug and Alcohol Abuse and Dependence Both legal and illegal substances.

Treatment for Co-occurring Psychological Disorders: Simultaneous mental health and drug and alcohol problems.

Behavioral healthcare encompasses the entire lifespan: From toddlers to the elderly.

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A Vast & Growing Behavioral Healthcare Market

• The 2014 U.S. Behavioral Healthcare Market is $239 billion and growing at a compound rate of 7%.

• The U.S. Behavioral Healthcare market is projected for similar, sustained growth for the next 20 years. Newer niche and emerging markets are expected to grow even more (e.g. behavioral health for older Americans).

• Behavioral health providers report gross operating profits between 18-30%.

• The market is experiencing increasing private equity and investor interest because of robust organic growth,

strong stock performance, and increasing mergers and acquisitions (See Appendix A: Bain & Company’s Global Healthcare Private Equity Report 2014).

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The Changing Behavioral Health Landscape

• For several decades, behavioral health was largely comprised of many small “mom-and-pop” providers.

• The sector has often produced limitedclient outcomes due to undifferentiated service offerings. Many providers have been slow or unable to deliver best-practice, research-based treatment.

• Government agencies, insurancecompanies, and accrediting bodies are drivingchange and demanding greater provider accountability.

• Mom-and-pop providers are being driven out. They have neither the business savvy nor the clinical expertise to keep up.

• Currently, the sector has only a few large corporate players. The four (4) largest organizations still have less than 2% of the $239 billion market.

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Recent Landmark Legislative Changes

• The Mental Health Parity and Addiction Equity Act of 2008 (MHPAEA) removed barriers and arbitrary restrictions on behavioral health treatment. Previously, insurance companies often placed limits (for example,

20 outpatient sessions) on behavioral health treatment. Parity Act ensures that insurance companies’ financial requirements (such as co-pays, deductibles)

and treatment limitations (such as visit limits) applicable to behavioral healthcare are no more restrictive than requirements or limitations applied to medical/surgical benefits.

Act went into full effect in 2010. Wide-spread implications to entire sector.

• The Affordable Care Act resulted in 10 million more additional insured Americans in 2014 and likely another 10 million in 2015. Law is still subject to further congressional changes. Strong showing for Americans aged 18-34. Important

demographic for behavioral healthcare as that it is a prime age for age of onset of many disorders.

• The market is primed for major change.

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Enter Q HealthHOPE. WELLNESS. RECOVERY.

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Our Senior Management TeamQ Health is pleased to announce that senior management leaders have already been retained. We are experts at hiring and retaining the best of the best. We are securing seasoned leaders with a demonstrated track record of leading profitable, growing organizations with subject matter expertise.

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Our Senior Management Team

John Leatherman, Chief Program Officer (CPO) Primary Leadership Responsibilities: All Aspects of Client

Treatment & Services; Seamless Coordination & Integrationof Service Delivery, Billing, & Client Engagement & Retention.

Robert C. Foster, CPA and Interim CFO Florida CPA with 18 years experience Projects executed include: obtaining increased bank financing, acquisition

of an industrial park, implementing budgeting processes and financial reporting for businesses that range from startups to $150 million in revenue.

Chief Operating Officer 22 years of executive management experience working within the addiction

treatment and behavioral health sectors. Areas of expertise: Finance, Information Technology, Strategic Planning, Human

Resources, Environment of Care and Facility Expansion, Education, Quality Assurance, Risk Management, and Health Information Management.

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Our Senior Management Team

Emilio J. Duboy MD, Chief Medical Officer/ Medical Director Florida licensed and DEA licensed physician with 32 yrs experience Provided medical leadership to inpatient and outpatient substance abuse and

behavioral health problems and disorders. Has a robust private practice and is affiliated with Lawnwood Regional Medical

Center & Heart Institute, Martin Memorial Medical Center and West Palm HospitalMichael Watt, Executive Director

Successfully owned and operated service and real estate investment businesses in PB County for over 15 years. Experienced Business Owner and Operator in Substance Abuse Treatment Experienced in 3rd party billing

Lindi Wadlinton, ARNP, Director of Nursing Services Florida licensed advanced practice nurse practitioner with 31 years experience in treating children, adolescents, and adults with mental health and substance abuse problems Collaborative Multidisciplinary practice approaches and patient care

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Our Senior Management Team

Elaine Wells, MA, MLS, AHIP (D), Senior Clinical Researcher & Sector Analyst Highly specialized in locating, analyzing, and utilizing evidence-based clinical practice Conducts and facilitates research in health and medicine for leading scholars, faculty

members, practitioners and students across medical and healthcare disciplines.

Maritsa Yzaguirre-Kelley, PhD, LMHC, CAP, CMPH, CAMSII, NCC, BCPC, Program consultant

Masters level licensed psychotherapist, who developed substance abuse/mental health facilities throughout Florida Expertise in establishing and implementing behavioral health operations, protocols, and practices

Adrian Prosser, Director of Investor Relations Areas of Expertise: Sourcing capital across sectors for innovative emerging organizations; Establishing and maintaining high-value investor relations Served for 10 years as CEO and General Mgr of ICC, a $200MM telecommunications firm

David Caruso, Director of Acquisitions/Broker Associate Areas of Expertise: Expert negotiator and consensus builder; Operations

management 15 years experience in commercial and retail banking and commercial and residential real estate sales

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The Q Health Mission & VisionQ Health is in the business of building healthy, satisfying, productive lives.

To our clients we commit to providing innovative, expert care.

To our community partners we commit to building mutually rewarding, professional relationships.

To our employees we commit to providing a professional learning environment withmeaningful work.

To our investors we commit to being excellentstewards of resources.

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Q Health Services & Continuum of Care

• The Q Health Service Delivery Team Provides Expert, Specialized Treatment and Services . Commitment to Best-Practices and Research-Informed Treatment. Tailored Treatment to Address Each Person’s Unique Problems & Circumstances. Attractive to Clients, Insurance Companies, Government Agencies, & Accrediting and Licensing

Bodies.• Q Health Services Across the Continuum of Care

Medically Managed Drug and Alcohol Detoxification (Inpatient and Outpatient Detox).

Partial Hospital Program (PHP) Intensive Outpatient (IOP) & Outpatient (OP) Ancillary Wellness Support Services Residential Services

• We’re Able to Place Clients at the Right Level of Care and Retain them in the Q Health Care Delivery System. Valuable to Clients, Families, and Insurance Companies. Important for Revenue Optimization.

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The Q Health Wellness ModelCulturally relevant, particularly to younger and more health conscious adolescents and adults.

The Q Wellness Model® addresses a breadth of behavioral problems and is designed from inception to be transformative. In addition to addressing the symptoms and behavioral health problems, it offers multiple pathways to develop and realize human potential.

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Q Health Core Business Objectives• Establish and operate a multi-site behavioral health organization initially

operating in Florida and positioned to enter additional U.S. markets as a full spectrum behavioral health provider.

• Open and operate first facility in South Florida by mid-2015.

• Achieve an active, inpatient census of a minimum of 1,000 in 48 months with net annual revenue of $77,000/bed. 

• Achieve an active outpatient census of 750 in 48 months with net annual revenues of $15,000,000.

• Reach $70,000,000 in annual net revenues within 48 months

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Q Health Core Business Objectives• Provide a full spectrum of behavioral healthcare

treatments and services to adolescents, adults, and older adults.

• Provide clients a dramatically enhanced and positive experience of behavioral healthcare services.

• Leverage the research-based Q Health Wellness Model to engage clients and satisfy funders. Empowering to clients. Desirable to insurance companies and government agencies. Differentiates us from the competition. Demonstrate RESULTS

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Our Keys to Success1. Q Health knows business and the business of behavioral health.

2. Q Health is poised for rapid response in a diverse and dynamic market with new opportunities.

3. Q Health has identified and can leverage multiple revenue streams.

4. Q Health has a seasoned leadership team coupled to a robust corporate structure strategically designed to achieve goals.

5. Q Health has an entrepreneurial spirit and the competitive determination to succeed.

6. Q Health has an exceptional service delivery platform based in research and that is culturally relevant.

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The QHS Three-Tier Marketing & Revenue Stream CompositeQHS Business Essentials: We Know All Our Customers • Tier 1: Our Clients are our Customers.

Our clients are our valued end-users and our reason for being.

• Tier 2: Our Payers are our Customers. Not only do insurance companies pay for services, they are also a prime referral

source. Our objective is to achieve In-Network status for 50% of our clients. Every out-of-network client presents a marketing opportunity.

• Tier 3: Our Community Partners are our Customers. Community partners, such as primary care physicians, hospital emergency

departments, and social service agencies are also our customers.

Relationships matter. We are in the business of building great relationships with every customer.

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Q Health Market Segment Strategy

Provide Clients and Families a Simple, User-Friendly Engagement Experience with Fast

Access to Treatment.

Build a Comprehensive Referral Network with the Community.

Provide Community Referral Sources a Pleasant, Expedited, and Professional Referral

Experience.

Identify Emerging Trends, Innovate, and Act.

Provide Specialized Services that Match Client Needs and Leverage Clinical Competencies.

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Our Competitive Advantage: Business Intelligence and Expert

Care• Many of our competitors are small “mom and pop” providers run

by social workers or ex-addicts who lack both business competencies and clinical expertise.

• A Senior Management Team with an extraordinary track record of success. Deep knowledge and business know-how. Decades of experience launching, building, and operating profitable businesses

across sectors.

• A Synergistic Partnership with Medytox. Medytox brings years of healthcare experience, technology, and resources to the Q Health enterprise.

• A Medical and Clinical Leadership Team with the credentials, experience, and expertise to provide expert, specialized care.

• We launch from a position of strength.

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Startup & Launch

• We have the right senior management teamin place with the know-how, experience, and skills to successfully launch, grow, and operate the enterprise.

• We start at a manageable size to ensure success with on-site management controls and close oversight.

• We start at a manageable size to maintain costs and reduce overhead.• We have strategically designed a scalable enterprise anticipating growth

and expansion from the point-of-entry.• We check and double check every aspect of our systems, operations, and

services in our Proof of Concept period.

New facility is open

New facility is open

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The Investment & Three (3) Phase Plan

• Phase 1: $1.5M to organize corporation and ready for launch of first facility. Phase 1 Investors have 6% Equity Stake. Potential of $55M return or 36 times original investment (Based on Arcadia’s

purchase of CRC in October 2014 for $1.18 billion).• Phase 2: $4.5M to capitalize, open and operate first 3 facilities with

first facility to open in mid-2015. Phase 2 Investors have 9% Equity Stake. Potential of $83M or 18 times original investment (Based on Arcadia’s

purchase of CRC)• Phase 3: $10.5M to capitalize 7 additional facilities.

Phase 3 Investors have 15% Equity Stake. Potential of $166M or 16 times original investment (Based on Arcadia’s

purchaseof CRC).

• Additional growth and expansion are being pursued through QHS purchases and acquisitions of existing behavioral health organizations and facilities.

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Financial Plan• A Conservative Orientation to Revenue, Income Projections,

and Cash Flow Underestimated income of income per census by 30%. Understating client to staff ratios. Overestimating initial startup negative cash flow timeline

and needs (e.g. no projected cash flow for 6 months, while 3-4 months is more likely).

• The QHS Scalable Enterprise Strategy is CostSensitive and Client Responsive Designed from inception for scalability. Proof of Concept period supports scalable growth. Bring on staff when and where they are needed – both to manage expenses

deliver quality service.

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The Metrics Of The Sale• Core Business Objectives:

Establish and operate a multi-site behavioral health organization initially operating in south Florida and positioned to enter additional US markets.

Achieve ACTIVE inpatient census of a minimum of 1000 within 48 months with annual net operating revenues of $77m and an active outpatient census of 750 in 48 months with annual net operating revenues of $15m.

Achieve total annual operating net revenues in 48 months of a minimum of $20m to activate pre-contracted sale with Medytox Solutions, Inc.

Trigger our pre-contracted initial sale when we reach 1000 active inpatient beds on or before 48 months with additional time allowed post initial sale to develop the business further with payment on the same terms of the initial sales.

1,000 BEDS

48 MONTHS

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The Metrics Of The Sale• Using Acadia Healthcare’s purchase of CRC for $1.18b based on 1500

active inpatient beds; current industry healthcare standards, and current revenue and operating conditions, each bed in our active inpatient portfolio is valued at $77,000 per year in net revenues. Therefore, our goal to operate 1000 active, inpatient beds in 48-60 months would generate annual revenues of $77m.

• Using the minimum sales multiplier of 12 times earnings, the projected sale price would total $924m. These projections are consistent with Acadia’s 2014 purchase of CRC for $1.18b based on 1500 inpatient beds generating $115m in annual net revenue or $77,000 per bed per year. Q Health Services team is uniquely qualified to lead this venture.

12X EBITDA