Document:

Amendment to 8% Senior Secured Promissory Note

 
Exhibit 4.6

 
AMERICAN TECHNOLOGY CORPORATION

 
AMENDMENT TO 8% SENIOR SECURED PROMISSORY
NOTE 
 
This Amendment to 8% Senior Secured
Promissory Note (the “Amendment”) is made as of February 26, 2003, among AMERICAN TECHNOLOGY CORPORATION (the “Company”) and the holders of 8% Senior Secured Promissory Notes (the “Notes”) listed on Exhibit A
attached hereto (“Holders”, and individually, a “Holder”). 
 
WHEREAS, the Notes may be amended, waived or modified upon the written consent of the Company and the holders of at least a majority of the face amount of all then outstanding Notes; and 
 
WHEREAS, the Company and the holders of at least a majority of
the face amount of all the outstanding Notes desire to amend the Notes. 
 
The Company and Holders therefore agree as follows: 
 
1.    Voluntary Conversion.    Notwithstanding anything to the contrary contained in the Notes, any Holder may request to convert all or any portion of
the principal balance of its Note (“Voluntary Conversion”) into Equity Securities (as defined in Section 6.2 of the Notes). Upon acceptance of such request by the Company in its sole discretion, such request shall be deemed an optional
redemption by the Company pursuant to Section 6.1 of the Note, except that the second sentence of Section 6.1 shall not apply. The price of the redemption for the portion of principal to be converted shall be calculated pursuant to Section 6.3.1 of
the Notes, using the closing date for the purchase of the Equity Securities as the Redemption Date. Such redemption price shall be applied to the purchase price for the Equity Securities; provided however, that the Company may, in its sole
discretion, pay all or a portion of the accrued but unpaid interest on the Redemption Principal and the Early Retirement Premium (each as defined in Section 6.3.1) in cash to the converting Holder instead of applying such amounts to the purchase
price for the Equity Securities (notwithstanding the second sentence of Section 6.1). 
 
2.    Mandatory Redemption.    Section 6.2 of the Notes is amended to clarify that amounts applied to the purchase price for Equity Securities by virtue
of Voluntary Conversions are not to be deemed gross proceeds received by the Company from sale of Equity Securities for purposes of determining when a Qualified Financing has occurred. 
 
3.    Due Date.    The due date for the Notes is
extended from December 31, 2003 to December 31, 2004, by replacing the date “December 31, 2003” with “December 31, 2004” in each place it appears in the Notes. 
 
4.    Confirmation of Notes.    All other terms and provisions
of the Notes not amended remain in full force and effect. 
 
5.    No Waiver.    Except as specifically provided in this Amendment, the holders of the Notes have no obligation, nor have such holders made any commitment or representation, to any
other amendment or modification of the Notes. 
 

6.    No Novation.    This Amendment does
not constitute a novation or a renewal of the Notes, but rather a modification of the Notes. 
 
7.    General.    This Amendment is governed by and construed under the laws of the State of California, excluding that body of law relating to conflicts
of law. This Amendment, the Notes and the related Security Agreement represent the entire agreement between the parties and neither party shall be bound by any prior discussions, proposals or oral agreements. 
 
8.    Waiver and
Amendment.    Any provision of the Amendment may be amended, waived or modified upon the written consent of the Company and the holders of at least a majority of the face amount of all then outstanding Notes. 
 
9.    Counterparts.    This Amendment may be executed in counterparts, each of which shall be deemed an original and all of which together shall constitute one document. 
 
COMPANY: 
 
AMERICAN TECHNOLOGY CORPORATION, 
a Delaware corporation 
 
 
By: /s/ Elwood G. Norris 
Name: Elwood
G. Norris 
Title: Chairman of the Board 
 
HOLDERS: 
 
 
 
By:
                                        
                                        
                         
Name:
                                        
                                        
                   
Title:
                                        
                                        
                     
Address:
                                        
                                         
             
                                     
                                        
                     
                                     
                                        
                     
 
 
 

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                                                                   EXHIBIT 10.16

                               OMEGA PROTEIN, INC.

                         EXECUTIVE MEDICAL PLAN SUMMARY

                                   August 1993

A. Purpose

     1.   100% reimbursement of the portion of the eligible expenses not fully
          reimbursed by the Group Health and Dental Care Plans.

     2.   100% reimbursement of certain medical, dental, and optical expenses
          not considered eligible expenses under the Group Health and Dental
          Care Plans.

B. Eligibility

     Employees who are recommended for coverage by Omega Protein Executive
     Management and approved by the Chairman and Chief Executive Officer of
     Omega Protein, Inc. are eligible for participation provided they are
     enrolled in both the Group Health and Dental Care Plans.

C. Eligible Expenses

     Charges actually made to an employee for the following services and
     supplies furnished for or in connection with the diagnosis, care,
     mitigation, treatment or prevention of illness of a covered individual and
     which are ordered by a licensed physician are eligible for reimbursement.

     1.   The remaining eligible expenses of the Group Health and Dental Care
          Plan which are not fully reimbursed.

     2.   Private room accommodations in a hospital.

     3.   Routing periodic physical examinations.

     4.   Immunization.

     5.   Hearing aids.

     6.   Optical treatment, eye glasses, contract lenses, and eye wear
          insurance.

<PAGE>

D. Expenses Not Eligible

     Charges related to the following services and supplies are not eligible for
     reimbursement.

     1.   Treatment or services not directed by a licensed physician.

     2.   Private suite accommodation charges in excess of the average private
          room rate of the hospital.

     3.   Treatment that is essentially cosmetic in nature.

     4.   Nonprescription drugs, vitamins and medicine.

     5.   First aid classes, Lamaze classes, stop smoking classes, weight loss
          programs, or other training classes unless necessary in the treatment
          of a specific medical condition.

     6.   Vaporizers or other appliances unless ordered by a licensed physician.

     7.   The deductible portion required under the Group Health and Dental Care
          Plans.

     8.   Normal hygienic and toiletry supplies.

     9.   Reductions in benefits required under the second opinion and
          pre-certification provisions of the Group Health and Care Plan.

     10.  Claims for dependents who are not covered by the Group Health and
          Dental Care Plans.

E. Mental and Nervous Disorders

     Inpatient care for mental and nervous disorders, including inpatient
     treatment for alcohol or drug abuse, is limited to twenty (20) days per
     year under the Group Health Care Plan. The Executive Medical Plan may
     continue coverage for up to an additional twenty (20) days, but the
     Benefits Committee reserves the right to make this determination after a
     thorough review and may require an independent medical examination of the
     patient. Additional reimbursement beyond the forty (40)-day period requires
     the approval of the Corporation Chairman and Chief Executive Officer.

<PAGE>

F. Deductibles

     The Plan will not reimburse the deductible amounts required by the Group
     Health and Dental Care Plans. However, no deductible is required for the
     eligible Executive Medical Plan expenses which are not considered eligible
     expenses by the Group Health and Dental Care Plans, e.g., immunizations,
     hearing aids, eye glasses, contact lenses, and eye wear insurance.

G. Payment of Expenses

     Reimbursements from the Executive Medical Plan cannot be assigned to a
     provider. Participants are expected to pay all expenses not assigned to a
     provider under the Group Health and Dental Care Plans and submit claims for
     reimbursement. As a general rule, the Plan will not cover expenses for
     treatment not yet rendered. However, if a physician requires payments over
     time for ongoing treatment, the Plan will cover the payments as they are
     made. Two common examples of such treatment are orthodontia and child
     delivery. While the Plan will not pay the entire fee on the front end, it
     will reimburse participants for required periodic payments.

     No expenses will be reimbursed prior to the end of the quarter unless a
     total of $100.00 is accumulated for each claimant.

H. Submitting Claims

     Claims should be submitted to your Human Resources Department. Claims
     covered by the Group Health and Dental Plans must be processed through our
     current insurance provider first. When the claim is returned to Omega
     Protein, the remaining charges will be considered under the Executive
     Medical Plan. Claims which are obviously not covered under the Group Health
     and Dental Plans will be considered directly under the Executive Medical
     Plan.

I. Second Opinion and Pre-Certification Requirements

     The second opinion and pre-certification requirements under the Group
     Health Care Plan must be followed. Reduction in benefits required under the
     Plan will not be eligible for reimbursement.

J. Physical Examination Requirements

     Plan participants are required to complete a comprehensive physical
     examination on a periodic basis. The general requirement is annually for
     participants age 40 or above and bi-annually for those under age 40. The
     Plan will cover examinations on a more frequent basis if recommended by a
     physician.

     Participants will be notified during their birth month when they are due
     for an examination and are required to complete the examination within
     ninety (90) days.

<PAGE>

K. Company Rights Reserved

     This document summarizes the benefits set out in the Executive Medical Plan
     master document and does not contain all of the detailed provisions of the
     Plan. The full provisions of the Plan master document, as they now exist or
     as they may exist in the future, will provide the basis for control or
     adjustment in the case of inconsistency.

     Omega Protein, Inc. intends to maintain the Plan indefinitely and for the
     exclusive benefit of employees, but reserves the right to change or
     terminate the Plan at any time within the limits allowed by Federal
     regulations. Rights to benefits already matured are protected and are
     considered legally enforceable.

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