SALUGEN, INC. INFORMED CONSENT AND PRIVACY POLICY

THIS NOTICE DESCRIBES HOW MEDICAL INFORMATION ABOUT YOU MAY BE USED AND DISCLOSED AND HOW YOU CAN GET ACCESS TO THIS INFORMATION. PLEASE REVIEW IT CAREFULLY.

Salugen, Inc. is committed to protecting your privacy. Please read this Policy because it concerns the privacy of your health information. We recommend that you keep a copy of this Policy for future reference.

This Policy explains Salugen, Inc.'s ("Salugen") privacy practices, describes how Salugen may use and disclose health information, and provides information about your privacy rights and how you may exercise those rights.

PRIVACY POLICY

Notice of Privacy Practices Effective As of August 30, 2005

Salugen is dedicated to providing you with custom formulated nutritional products and in order to do so Salugen must obtain and retain your health information. The Health Insurance Portability and Accountability Act ("HIPAA") protects your individually identifiable health information ("protected health information"). HIPAA outlines when Salugen may or may not use or disclose your protected health information. HIPAA requires your written authorization for uses or disclosures of your protected health information not allowed under the law. Salugen can use and disclose any information which is not individually identifiable. Salugen agrees to protect your individually identifiable health information by using and disclosing it only as permitted in this Policy and as directed by state and federal law.

2)    Your pre-identified health conditions;

3)    Your DNA test results;

4)    The formulation of your custom nutritional products; and

5)    Your payment and shipping information.

2)    Utilize your pre-identified conditions and DNA test results to formulate your custom nutritional product;

3)    Retain the formulation of your custom nutritional products in order to send you your monthly nutritional product and to evaluate your treatment;

4)    Use your DNA sample, pre-identified conditions, and DNA test results to research and develop new custom nutritional products for you when available and upon your request.

2)    Retain your shipping information for delivery of your custom nutritional products to you.

2)    Send you information for educational purposes;

3)    Provide customer service;

4)    Operate our website; and

5)    Create data summaries, and analyze data using individually unidentifiable health information which is not protected.

2)    Family members, in certain situations where the family member has specific identifying information about you;

3)    Anyone you have given your Salugen website user ID and password to;

4)    Service vendors who help Salugen run its business efficiently. For example, we will give your DNA sample to a third party laboratory to perform the necessary tests. Or we will give your name, and shipping information to a third party parcel carrier to deliver your custom nutritional products. Also, we may give your payment information to a processing center or bank for Salugen to receive payment for your custom nutritional products;

5)    The Department of Health and Human Services may request your protected health information to investigate complaints and to review Salugen's compliance with HIPAA;

6)    A public health authority required by law to receive your health information. For example, the Food and Drug Administration may request information related to the quality, safety or effectiveness of a Salugen product;

7)    A law enforcement agency required by law to receive your protected health information. For example, a court or administrative agency may subpoena information for purposes of litigation; and

8)    A medical examiner or coroner requiring your protected health information to perform his duties required by law, or to identify or determine a cause of death.

In order for Salugen to use your protected health information for any other use or disclosure than those outlined above, Salugen must obtain your authorization.

2)    The right to request changes to your Salugen record. You must make a written request and provide a reason supporting your request. Additionally, Salugen does not have to honor your request if the information you desire to change is accurate and complete;

3)    The right to request an accounting of any non-routine disclosures of your protected health information made by Salugen. Non-routine disclosures generally do not include disclosures to assist in treatment, or payment; our administrative and business activities; or disclosures to you or your family. For example, a disclosure to the Department of Health and Human Services would be non-routine. You must make a written request indicating the time period for which you desire an accounting of disclosures;

4)    The right to request a copy of this Policy at any time. Salugen reserves the right to revise this Policy in the future. Revised versions of our Policy will be posted on our website www.salugen.com, will be sent to you by mail, e-mail or other means, or can be requested by phone, or mail;

5)    The right to request restrictions on our use and disclosure of your protected health information. For example, you can restrict the disclosure of your protected health information to family members. Salugen is not required to agree to any restriction, but will consider each request; and

6)    The right to request special confidential communications. You can request that Salugen communicate with you in a different manner regarding a particular matter.

In order to exercise any of your Privacy Rights, you must make a written request to:

Salugen, Inc.
4660 La Jolla Village Drive, Suite 500
San Diego, California 92122

Salugen will make every effort to protect your privacy and health information. We train our employees, restrict access to your protected health information, and use technology to prevent unauthorized uses and disclosures.

By agreeing to this Policy, you authorize Salugen to use your DNA sample and DNA test results in studies or in research and development of new products according to the terms and conditions of this Policy. If Salugen uses your DNA sample and DNA test results in any studies or in research and development of new products, your individually identifiable protected health information will be kept confidential. If all individually identifiable protected health information is removed from your health information, then that information may be used or disclosed for other purposes, including in clinical study publications or reports at the discretion of Salugen.

Further by agreeing to this policy, neither you, your successors or assigns will have any financial nor property interest in any products or processes, which may result from research performed with your DNA sample and DNA test results.

Additionally, Salugen will not pay, or charge you for authorizing Salugen to use your DNA sample and DNA test results in studies or in research and development of new products.

This Policy and authorization to use your DNA sample and DNA test results in studies or in research and development of new products continues in perpetuity. In order to revoke the authorization to use your DNA sample in studies or in research and development of new products, you must write to:

Salugen, Inc.
4660 La Jolla Village Drive, Suite 500
San Diego, California 92122

Any of your protected health information obtained before the revocation of your authorization may still be used or disclosed as necessary to maintain the integrity and reliability of any studies or research being conducted. Once your protected health information has been disclosed to parties outside of Salugen, then that information may no longer be protected under this authorization and Policy.

Failure to agree to this Policy, will not affect your treatment, payment or enrollment in Salugen's DNA Custom Formulated Nutritional Products Process.

By agreeing to this Policy, you are not waiving any legal rights. Your agreement indicates you understand the information outlined in this Policy, and you accept the terms and conditions of this Policy.