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</LabelSeparator><Level>2</Level><ElementName>us-gaap_CommitmentsDisclosureTextBlock</ElementName><ElementPrefix>us-gaap_</ElementPrefix><IsBaseElement>true</IsBaseElement><BalanceType>na</BalanceType><PeriodType>duration</PeriodType><IsReportTitle>false</IsReportTitle><IsSegmentTitle>false</IsSegmentTitle><IsCalendarTitle>false</IsCalendarTitle><IsEquityPrevioslyReportedAsRow>false</IsEquityPrevioslyReportedAsRow><IsEquityAdjustmentRow>false</IsEquityAdjustmentRow><IsBeginningBalance>false</IsBeginningBalance><IsEndingBalance>false</IsEndingBalance><IsReverseSign>false</IsReverseSign><FootnoteIndexer /><Cells><Cell FlagID="0" ContextID="From2013-01-01to2013-06-30" UnitID=""><Id>1</Id><IsNumeric>false</IsNumeric><IsRatio>false</IsRatio><DisplayZeroAsNone>false</DisplayZeroAsNone><NumericAmount>0</NumericAmount><RoundedNumericAmount>0</RoundedNumericAmount><NonNumbericText>&lt;p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;In April 2013, the U.S. Department of Defense,
Navy and the U.S. Department of Energy Advanced Research Projects Agency-Energy (ARPA-E) approved a grant of up to $800,000 to
Company for the funding of a project to produce and trial a chilling system, that is operated by directly manipulating water vapor
using Company&amp;#146;s selectively permeable membrane made of a nano-structure solid polymer. The grant requires the Company to
contribute $200,000 of the proposed total project cost of $1,000,000. The Company will receive the grant amount in phases upon
the meeting of certain milestones. The grant will advance our Nano Air technologies toward commercialization.&lt;/p&gt;

&lt;p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;On June 11, 2013, effective as of March 11,
2013, the Company entered into an Employment Agreement with Ms. Joyce Conner-Boyd in connection with her appointment as Chief Operating
Officer (the Executive). The term of the Agreement shall initially be for one year until March 11, 2014 but shall be automatically
renewed on each anniversary of the effective date for an additional year unless either the Company or the Executive delivers a
written termination at least 60 days before any anniversary.&lt;/p&gt;

&lt;p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;The Executive shall receive a salary of $120,000
per annum. After the completion of an offering of the Company&amp;#146;s common stock greater than $2 million to an investor who,
at the time of the investment, does not own or control shares in the Company, the Executive&amp;#146;s salary shall be increased to
$160,000 per annum.&lt;/p&gt;

&lt;p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;The Agreement provided that within ninety days
of the effective date, the Company shall grant the Executive, pursuant to the terms and conditions of Company&amp;#146;s 2009 Incentive
Compensation Plan (the &amp;#34;2009 Plan&amp;#34;), an option to purchase up to 1,250,000 shares of Company&amp;#146;s common stock. Such
option was granted on June 11, 2013 at $0.16 per share, the fair market value of Company&amp;#146;s common stock on the date of the
option grant, as determined in accordance with the terms of the 2009 Plan. An option to purchase 312,500 shares of the Company&amp;#146;s
common stock shall vest on the effective date with the remaining options to purchase 937,500 shares of the Company&amp;#146;s common
stock vesting ratably over a three year period on the first, second and third anniversary of the effective date provided the Executive
is employed by Company on each vesting date.&lt;/p&gt;

&lt;p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;If the Executive&amp;#146;s employment is terminated
(i) by the Company, without Cause (as defined in the Agreement) or terminated for other similar reasons described in the Agreement,
or (ii) by the Executive for Good Reason (as defined in the Agreement), the Executive will be entitled to receive 50% of the Executive&amp;#146;s
then-current annual base salary, in equal payments over six months, and immediate vesting of the Executive&amp;#146;s stock options
pursuant to the terms and conditions of the 2009 Plan.&lt;/p&gt;</NonNumbericText><FootnoteIndexer /><CurrencyCode /><CurrencySymbol /><IsIndependantCurrency>false</IsIndependantCurrency><ShowCurrencySymbol>false</ShowCurrencySymbol><DisplayDateInUSFormat>false</DisplayDateInUSFormat></Cell></Cells><ElementDataType>nonnum:textBlockItemType</ElementDataType><SimpleDataType>na</SimpleDataType><ElementDefenition>The entire disclosure for significant arrangements with third parties, which includes operating lease arrangements and arrangements in which the entity has agreed to expend funds to procure goods or services, or has agreed to commit resources to supply goods or services, and operating lease arrangements. Descriptions may include identification of the specific goods and services, period of time covered, minimum quantities and amounts, and cancellation rights.</ElementDefenition><ElementReferences>Reference 1: http://www.xbrl.org/2003/role/presentationRef

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