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**CHARTER        OF THE NOMINATING COMMITTEE **

**NANO-PROPRIETARY,        INC. **

| **1.** | **PURPOSE:** |
|--------|--------------|

| **2.** | **COMMITTEE                  MEMBERSHIP AND ORGANIZATION:** |
|--------|-------------------------------------------------------------|

| **3.** | **AUTHORITY:** |
|--------|----------------|

| **4.** | **COMMITTEE                  RESPONSIBILITIES:** |
|--------|--------------------------------------------------|

| (1) | Evaluate                    the suitability of potential nominees for membership on the Board,                    taking                    into consideration the Board's current composition, including                    expertise,                    and balance of inside, outside and independent directors, and                    considering                    the general qualifications of the potential nominees.                                                                                                                                                                                                                                                                                |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | Determine                    the desired qualifications, expertise and characteristics for                    potential                    directors and conduct searches for director candidates that have                    corresponding attributes. Evaluate and recommend nominees for                    election to                    the Board, including candidates suggested or nominated by a director                    or                    executive officer of the Company or by a stockholder of the Company                    (if                    the nomination is made in accordance with the Company's charter                    documents                    and applicable law). |

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| (3)  | Review                    the qualifications of incumbent directors to determine whether                    to                    recommend them as nominees for re-election to the Board.                                                                                                                                                                                                            |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (4)  | Evaluate                    the current composition, organization, size and governance of                    the Board                    and its committees; determine future requirements; and make                    recommendations to the Board concerning the appointment of directors                    to                    committees of the Board and chairs of committees of the Board. |
| (5)  | Oversee                    the Board's performance evaluation process, including conducting                    surveys                    of director observations, suggestions and preferences. The Committee                    shall                    also evaluate the performance of individual directors.                                                                                     |
| (6)  | Evaluate                    and recommend termination of service of individual members of                    the Board as                    appropriate, for cause or for other proper reasons.                                                                                                                                                                                                      |
| (7)  | Make                    regular written reports to the Board.                                                                                                                                                                                                                                                                                                                                         |
| (8)  | Review                    and re-examine this Charter at least annually and make recommendations                    to                    the Board with respect to any proposed changes.                                                                                                                                                                                                             |
| (9)  | Annually                    report to the full Board regarding its own performance against                    the                    responsibilities outlined in this Charter and as otherwise established                    by                    the Board.                                                                                                                                       |
| (10) | Obtain                    advice, assistance, reports or opinions from internal or external                    legal,                    accounting or other advisors, including director search firms.                                                                                                                                                                                               |
| (11) | Make                    such recommendations to the Board as the Committee may consider                    appropriate and consistent with its purpose, and take such other                    actions                    and perform such other services as may be referred to it from                    time to time                    by the Board.                                              |

| **5.** | **MEETING                  AND MINUTES:** |
|--------|-------------------------------------------|

| (1) | The                  Committee will meet at least twice annually and will also meet,                  as                  required, in response to the needs of the Board and as necessary                  to                  fulfill their responsibilities. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | The                  Committee will maintain written minutes of its meetings, which                  minutes                  will be filed with the minutes of the meetings of the Board.                                                                      |