Medical Marijuana Inc (MJNA)

[Art Vandeley]

Alternative Health Group & SYB, Inc. – North American Joint Venture
On May 7, 2014, Kannalife™ entered into a Memorandum of Understanding (the “AHG-SYB
MOU”) with Alternative Health Group, Inc. (“AHG”) and SYB Inc. (“SYB”) for the creation of
a commercial venture for (a) the creation of high quality, standardized phyto-botanical products
from naturally recurring cannabis and hemp taxa; and (b) establish clinical protocols and trials in
Canada using high quality, standardized phyto-botanical products from naturally recurring
cannabis and hemp taxa (the “Botanical Medicaments and Naturopathic Products”). AHG
currently maintains a proprietary, patent-pending system for patient management, administration
and transactional supervision for the deployment of Medical Marijuana (the “MMJ Clinical
Billing System”) and has targeted the opening of twenty (20) alternative health clinics in Canada
by the end of 2014, with an ultimate goal of two hundred (200) across Canada (the “AHG
Customer Base”). AHG intends to conduct and/or assist in conducting clinical studies (the
“Canadian Clinical Studies”) on a case-by-case basis in partnership with the Company’s research
team and the AHG clinic doctors to administer novel therapeutics from naturally recurring
plantae, semi-synthetic sources, and synthetic sources, including but not limited to cannabis taxa
and hemp taxa.
As part of the contemplated joint venture, SYB plans to provide financial support for the
Canadian Clinical Studies to cover the costs of the Company’s joint efforts with AHG regarding
the same.
On all Botanical Medicaments and Naturopathic Products produced and sold in the Territory
under this MOU, and sold to SYB, regarding the same, KLSI and AHG shall split all revenue
associated with this Paragraph on a 50/50 basis after COGS. On the use of the Company’s
standardization solutions, including but not limited to the C-Level and C-Dashboard that which
is incorporated into the MMJ Clinical Billing System, and that which results in third party

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