AND GENERAL RELEASE OF ALL CLAIMS
On September 12, 2000, through their mutual consent, Cornelius J. Brosnan ("Employee") and American
Technology Corporation (the "Company") (collectively, the "Parties") entered into this Separation Agreement and
General Release of all Claims ("Agreement").
1. Employee has been an employee of the Company. On September 12, 2000 (the "Notice Date"), Company
provided Employee with notice pursuant to Paragraph 5(a)(2) of the Employment Agreement between the parties
dated July 17, 1998 (the "Employment Agreement"). Pursuant to Paragraph 5(a)(2), Employee's employment
under the Employment Agreement will terminate effective October 12, 2000 (thirty
(30) days from the Notice Date) (the "Termination Date"). Without limiting or replacing any other payments due
to Employee hereunder, the Company will pay Employee for all wages and benefits earned through the
Termination Date, including all accrued but unused vacation time, and will continue through the Termination Date
at the Company's expense all existing health and disability insurance coverages and all existing life insurance
coverages payable to Employee's designated beneficiaries.
2. Employee and the Company desire to settle fully and finally any differences between them, including, but in no
way limited to, any differences that have arisen or might arise out of Employee's employment with the Company
or the termination of Employee's employment. Additionally, Employee and the Company desire to resolve any
known or unknown claims as more fully set forth below.
3. Except as otherwise provided in this Agreement, termination of the employment relationship between the
Parties shall be treated pursuant to Paragraph 5(a)(2) of the Employment Agreement. In lieu of the provisions for
severance payments set forth in Paragraph 5(a)(5) of the Employment Agreement, the Company shall pay to
Employee $180,000, representing nine (9) months multiplied by his Base Salary of $20,000 per mont