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Proc-Type: 2001,MIC-CLEAR
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<SEC-DOCUMENT>0001019687-05-002860.txt : 20051021
<SEC-HEADER>0001019687-05-002860.hdr.sgml : 20051021
<ACCEPTANCE-DATETIME>20051021170349
ACCESSION NUMBER:		0001019687-05-002860
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20051017
ITEM INFORMATION:		Entry into a Material Definitive Agreement
ITEM INFORMATION:		Termination of a Material Definitive Agreement
ITEM INFORMATION:		Departure of Directors or Principal Officers; Election of Directors; Appointment of Principal Officers
FILED AS OF DATE:		20051021
DATE AS OF CHANGE:		20051021

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			AMERICAN TECHNOLOGY CORP /DE/
		CENTRAL INDEX KEY:			0000924383
		STANDARD INDUSTRIAL CLASSIFICATION:	HOUSEHOLD AUDIO & VIDEO EQUIPMENT [3651]
		IRS NUMBER:				870361799
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			0930

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-24248
		FILM NUMBER:		051150320

	BUSINESS ADDRESS:	
		STREET 1:		13114 EVENING CREEK DRIVE SOUTH
		CITY:			SAN DIEGO
		STATE:			CA
		ZIP:			92128
		BUSINESS PHONE:		6196792114

	MAIL ADDRESS:	
		STREET 1:		13114 EVENING CREEK DRIVE SOUTH
		CITY:			SAN DIEGO
		STATE:			CA
		ZIP:			92128
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
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<DESCRIPTION>AMERICAN TECHNOLOGY CORPORATION
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      American Technology Corporation
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      8-K</strong></font></div>
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      to Section 13 or 15(d) of</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>the
      Securities Exchange Act of 1934</strong></font></div>
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      of
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      21, 2005 (October 17, 2005)</strong></font></div>
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      TECHNOLOGY CORPORATION</strong></font></div>
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      Name of Registrant as Specified in Charter)</font></div>
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                or Other Jurisdiction</font></div>
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                Incorporation)</font></div>
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                File Number)</font></div>
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            <td valign="top" width="27%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(IRS
                Employer</font></div>
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                No.)</font></div>
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                Evening Creek Drive South, San Diego, California</strong></font></div>
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                of Principal Executive Offices)</font></div>
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      Telephone Number, Including Area Code: </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(858)
      679-2114</strong></font></div>
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      the
      appropriate box below if the Form 8-K filing is intended to simultaneously
      satisfy the filing obligation of the registrant under any of the following
      provisions (see General Instruction A.2. below):</font></div>
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      Written
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      230.425)</font></div>
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      Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
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      Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
      October 17, 2005, we entered into a letter agreement with John R. Zavoli,
      pursuant to which Mr. Zavoli will be appointed as our president and chief
      operating officer, commencing November 1, 2005. Mr. Zavoli is presently a
      director of our company, and was a member of the audit and compensation
      committees until he resigned the committee appointments in connection with
      entering into the letter agreement. The letter agreement provides for an annual
      base salary of $250,000 and eligibility for an annual bonus, as recommended
      by
      the compensation committee and approved by the board of directors. In addition,
      the letter agreement contemplates that Mr. Zavoli will receive an option to
      purchase 100,000 shares of our common stock, subject to the prior review and
      approval of such grant by the compensation committee. Mr. Zavoli's employment
      is
      not for a specified period or term of employment and is terminable at-will
      by us
      or by Mr. Zavoli for any reason, with or without notice. Mr. Zavoli will be
      entitled to severance benefits in the form of up to a maximum of six months
      of
      salary and health benefit continuation if we terminate his employment without
      cause or he resigns for good reason.</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">More
      detail about the appointment of Mr. Zavoli as president and chief operating
      officer is set forth in Item 5.02 below.</font></div>
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      October 20, 2005, we entered into a separation and release agreement with Kalani
      Jones. Mr. Jones was formerly our president and chief operating officer, and
      resigned employment at our company on October 17, 2005. The agreement provides
      for our one-time payment of $82,500 to Mr. Jones and our payment of health
      benefit premiums on Mr. Jones's behalf for a period not to extend beyond
      February 28, 2006. We also agreed to extend until February 15, 2006 the period
      of time for which the vested portion of stock options held by Mr. Jones may
      be
      exercised. In addition, the separation and release agreement contains Mr.
      Jones's general release of all claims against the company. More detail about
      Mr.
      Jones's resignation from the company is set forth in Items 1.02 and 5.02
      below.</font></div>
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      1.02 Termination of a Material Definitive Agreement</strong></font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      conjunction with Mr. Jones's resignation from the company on October 17, 2005,
      Mr. Jones's employment arrangement with the company terminated. Mr. Jones was
      employed under the terms of a letter agreement dated as of August 28, 2003,
      as
      amended. Mr. Jones annual base salary at the time of resignation was $220,000,
      and he was entitled to an annual performance bonus of up to 50% of his base
      salary, as determined by the compensation committee. Mr. Jones's employment
      was
      terminable at-will by us or Mr. Jones for any reason, with or without notice.
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
      5.02 Departure of Director and Principal Officer; Appointment of Principal
      Officer</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
      October 17, 2005, Kalani Jones resigned from his positions as our president
      and
      chief operating officer and as a member of our board of directors.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
      October 17, 2005, John R. Zavoli was appointed as our president and chief
      operating officer to succeed Kalani Jones, commencing November 1, 2005. Mr.
      Zavoli previously served as an independent director on our board of directors,
      and as a member of the compensation committee and the audit committee. As a
      result of his appointment, Mr. Zavoli no longer qualifies as an independent
      director under applicable Nasdaq standards. Our board of directors presently
      consists of five directors, three of whom are independent directors under
      applicable Nasdaq standards.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Mr.
      Zavoli, age 46, was appointed to our board of directors on June 14, 2005. Mr.
      Zavoli was the president, chief executive officer and chief financial officer
      of
      Path 1 Network Technologies Inc. (AMEX: PNO), a San Diego-based provider of
      IP
      broadcast video transport and routing systems through September 2005. Mr. Zavoli
      joined Path 1 in October 2002 and was appointed president and chief executive
      officer and elected as a director in March 2004. Before joining Path 1, from
      November 2001 through September 2002, Mr. Zavoli served as chief financial
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      Technologies). From June 1987 through July 1992, he held various senior level
      financial and legal positions with Digital Equipment Corporation (now
      Hewlett-Packard). Mr. Zavoli is a former partner with PricewaterhouseCoopers
      LLP, where he consulted high tech clients in global operations, taxation, fiscal
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      duly authorized.</font></div>
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            <td colspan="2"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">AMERICAN
              TECHNOLOGY CORPORATION</font></td>
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            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;<br>&#160;</font></td>
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            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Date:&#160;October
              21, 2005</font></td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">By:&#160;&#160;</font></td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">/s/&#160;MICHAEL
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            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Michael
              A. Russell<br>Chief Financial
              Officer&#160;</font></td>
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