AMERICAN TECHNOLOGY CORPORATION
INDUCEMENT STOCK OPTION GRANT NOTICE
AMERICAN TECHNOLOGY CORPORATION (the “Company”) hereby grants to the Optionee named below, an employee
of the Company, as an inducement material to the Optionee’s entering into employment with the Company, a stock option to
purchase the number of shares of the Company’s common stock set forth below. This option is subject to all of the terms and
conditions as set forth herein and the Stock Option Agreement (attached hereto), which is incorporated herein in its entirety.
ADDITIONAL TERMS/ACKNOWLEDGMENTS: The undersigned Optionee acknowledges receipt of, and represents that the
Optionee has read, understands, accepts and agrees to the terms of this Grant Notice and the Stock Option Agreement.
Optionee hereby accepts the Option subject to all of its terms and conditions and further acknowledges that as of the Date of
Grant, this Grant Notice and the Stock Option Agreement set forth the entire understanding between Optionee and the
Company regarding the acquisition of stock in the Company and supersede all prior oral and written agreements pertaining to
this particular option.
NOTE: THE OPTIONEE IS SOLELY RESPONSIBLE FOR ANY ELECTION TO EXERCISE THE OPTION, AND THE
COMPANY SHALL HAVE NO OBLIGATION WHATSOEVER TO PROVIDE NOTICE TO THE OPTIONEE OF ANY
MATTER, INCLUDING, BUT NOT LIMITED TO, THE DATE THE OPTION TERMINATES.
Date of Grant:
Shares Subject to Option:
Exercise Price Per Share:
Intended to be Incentive Stock Option:
Vesting Start Date
Subject to continuing Service (as defined in the Stock Option Agreement) this option becomes
exercisable with respect to 1/4 th of the Shares Subject to Option on the one-year anniversary of
the Vesting Start Date, which is defined as the date on which the option is granted. Thereafter,