Document:

Termination and Waiver of Rights

 EXHIBIT 10.1 
  
 TERMINATION AND WAIVER OF RIGHTS UNDER EMPLOYMENT AGREEMENT 
  
 This Termination and Waiver of Rights Under Employment Agreement is dated as of June 4, 2004, by and between THE FIRST
YEARS, INC., a Massachusetts corporation (the “Company”), and Ronald J. Sidman (the “Employee”). The Company and the Employee are sometimes referred to herein as the “Parties”. 
  
 RECITALS 
  
 A. Pursuant to an Agreement and Plan of Merger dated as of the date hereof, among RC2 Corporation (the
“Purchaser”), RBVD Acquisition Corp. and the Company (the “Merger Agreement”), the Company has agreed to be acquired via merger (the “Merger”) by Purchaser. 
  
 B. The Company and the Employee have entered an Employment Agreement, dated September 30, 1999 (the “Employment
Agreement”). 
  
 C. The Company and the Employee acknowledge
that the Employee will be entitled to receive payments pursuant to the Employment Agreement as the result of the Merger. Subject to the consummation of the Merger, the Company and the Employee desire to enter into this Agreement to set forth the
payments and other benefits to which the Employee will be entitled from the Company following the Merger. 
  
 AGREEMENTS 
  
 In consideration of the recitals and the mutual covenants and agreements set forth in this Agreement, the parties agree as follows: 
  
 1. Subject to the consummation of the Merger, the Employee and the Company agree that the Employee shall be entitled to the following in full
consideration of the waiver of rights pursuant to this Agreement: 
  
 (a) The Employee shall be entitled to a bonus of $1,361,793 (the “Merger Bonus”). The Merger Bonus shall be paid on the date that the Effective Time (as defined in the Merger Agreement) occurs. 
  
 (b) The Employee shall be entitled to continue to participate in the
following benefits for a period of three years from the Effective Time: 

 (i) The Company shall pay the annual premium or premiums on: 
  
 (A) a life insurance policy or policies, the total face amount of which
shall not exceed seven and a half million dollars ($7,500,000); and 
  
 (B) a long-term disability insurance policy with the Paul Revere Life Insurance Company or a similar long-term disability insurance policy with any other insurance carrier providing substantially similar benefits. 
  
 (ii) The Employee shall be eligible to participate in all savings,
retirement, pension, profit-sharing, 401-K, and welfare (including without limitation, group medical, dental, hospitalization, disability, life insurance) plans, and fringe benefit plans, practices, policies and programs (but excluding the medical
reimbursement plan for certain officers of the Company) on a basis no less favorable than that of the Employee at the Effective Time (the “Benefits”). 
  

(iii) The Company shall reimburse the Employee for all reasonable expenses, including those for travel and entertainment, incurred by him in the
performance of his duties hereunder, in accordance with policies established from time to time by the Board of Directors or the Compensation Committee of the Board of Directors of the Company. 
  
 For purposes of the application of all Benefit plans, the Employee shall be
treated as if he had remained in the employ of the Company for such three-year period. In the event the Employee is not permitted to participate in any Benefit plan, including without limitation any pension or 401-K plans, the Company will make
equivalent payments to the Employee on an after-tax basis equal to the payments which would have been made to such plans. 
  
 (c) Notwithstanding the foregoing Paragraph (b), with respect to medical, dental and hospitalization benefits provided to the Employee at the Effective
Time (“Medical Benefits”), the Employee will continue to participate in such Medical Benefits until the Employee is eligible for and entitled to coverage under Medicare; provided, however, that to the extent such Medical Benefits cannot be
provided to the Employee under the terms of any Plan, the Company shall pay to the Employee, on an after-tax basis, an amount necessary for Employee to acquire substantially equivalent Medical Benefits until the Employee is eligible for and entitled
to coverage under Medicare; and provided further that such Medical Benefits shall terminate if the Employee becomes employed by or is otherwise affiliated with another party that provides benefits substantially equivalent to the Medical Benefits;

  

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 (d) With respect to each option to purchase common stock of the Company held by the Employee at the
Effective Time, all such options shall become immediately exercisable in full, and each option may be exercised by the Employee until the earlier of (A) the three (3) year anniversary date of the Effective Time or (B) the expiration date of such
option. Notwithstanding the foregoing, any incentive stock options (“ISO’s”) held by the Employee at the Effective Time may not be exercised more than three (3) months after the Effective Time. 
  
 (e) The Company shall also pay to the Employee all reasonable legal fees and
expenses incurred by the Employee, in seeking in good faith to obtain or enforce any benefit or right provided by this Agreement, or in connection with any tax audit or proceeding to the extent attributable to the application of Section 4999 of the
Internal Revenue Code (the “Code”) to any payment or benefit provided hereunder. Such payments shall be made within ten (10) business days after delivery of the Employee’s written requests for payment accompanied with such evidence of
fees and expenses incurred as is reasonable. 
  
 (f) (i) Anything
in this Agreement to the contrary notwithstanding, in the event that any “payments in the nature of compensation” within the meaning of Section 280G of the Code by the Company or the Purchaser to or for the benefit of the Employee (whether
paid or payable or distributed or distributable pursuant to the terms of this Agreement or otherwise, but determined without regard to any additional payments required under this Section (f) (a “Payment”) would be subject to the excise tax
imposed by Section 4999 of the Code or any interest or penalties are incurred by the Employee with respect to such excise tax (the excise tax imposed by Section 4999 of the Code, together with any such interest and penalties, are hereinafter
collectively referred to as the “Excise Tax”), then the Employee shall be entitled to receive an additional payment (a “Gross-up Payment”) in an amount such that after payment by the Employee of all taxes imposed upon the
Gross-up Payment, including without limitation, any income taxes, FICA taxes (and any interest and penalties imposed with respect to income taxes or any other taxes) and Excise Tax, the Employee retains an amount of the Gross-Up Payment equal to the
Excise Tax imposed upon the Payment. 
  
 (ii) Subject to the
provisions of Section (f)(iii) below, all determinations required to be made under this Section (f), including whether and when a Gross-up Payment is required and the amount of such Gross-up Payment, and the assumptions to be utilized in arriving at
such determination, shall be made by the accounting firm representing the Company at such time (the “Accounting Firm”) which shall provide detailed supporting calculations both to the Company 
  

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 and the Employee within 15 business days of the receipt of notice from the Employee that there has been a Payment, or
such earlier time as is requested by the Company. In the event that the Accounting Firm is serving as accountant or auditor for the Purchaser, the Employee shall appoint another nationally recognized accounting firm to make the determinations
required hereunder (which accounting firm shall then be referred to herein as the Accounting Firm hereunder). All fees and expenses of the Accounting Firm shall be paid by the Employee and then reimbursed to him by the Company. Any Gross-up Payment,
as determined pursuant to this Section (f), shall be paid by the Company to the Employee within five days of the receipt of the Accounting Firm’s determination. If the Accounting Firm determines that no Excise Tax is payable, it shall furnish
the Employee with a written opinion that failure to report the Excise Tax on the Employee’s applicable federal income tax return would not result in the imposition of a negligence or similar penalty. Any determination by the Accounting Firm
shall be binding upon the Company and the Employee. As a result of the uncertainty in the application of Section 4999 of the Code at the time of the initial determination by the Accounting Firm hereunder, it is possible that Gross-up Payments-which
will not have been made by the Company should have been made (“Underpayment”), consistent with the calculations required to be made hereunder. In the event that the Company exhausts its remedies pursuant to Section (f)(iii) and the
Employee thereafter is required to make a payment of any Excise Tax, the Accounting Firm shall determine the amount of the Underpayment that has occurred within 15 business days of receipt of notice from the Employee that there has been an
Underpayment, and any such Underpayment shall be promptly paid by the Company to or for the benefit of the Employee. 
  
 (iii) The Employee shall notify the Company in writing of any assertion by the Internal Revenue Service that, if successful, would require the payment by
the Company of such Gross-Up Payment (an “Assertion”). Such notification shall be given as soon as practicable after the Employee is informed in writing of such Assertion, and shall apprise the Company of the nature of such Assertion and
the date on which such Assertion is requested to be paid. The Employee shall not pay such Assertion prior to the expiration of the thirty (30) day period following the date on which it gives such notice to the Company (or such shorter period ending
on the date that any payment of taxes with respect to such Assertion is due). If the Company notifies the Employee in writing prior to the expiration of such period that it desires to contest such Assertion, the Employee shall: 
  
 (A) give the Company any information reasonably requested by the Company
relating to such Assertion; 
  

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 (B) take such action in connection with contesting such Assertion as the Company shall reasonably
request in writing from time to time, including, without limitation, accepting legal representation with respect to such Assertion by an attorney selected by the Company and reasonably acceptable to the Employee; 
  
 (C) cooperate with the Company in good faith in order effectively to contest
such Assertion; and 
  
 (D) permit the Company to participate in
any proceedings relating to such Assertion; provided, however, that the Company shall bear and pay directly all costs and expenses (including additional interest and penalties) incurred in connection with such contest and shall indemnify and hold
the Employee harmless, on an after-tax basis, for any Excise Tax or income tax (including interest and penalties with respect thereto) imposed as a result of such representation and payment of costs and expenses. Without limitation on the foregoing
provisions of this Section (f)(iii), the Company shall control all proceedings taken in connection with such contest and, at its sole option, may pursue or forego any and all administrative appeals, proceedings, hearings and conferences with the
taxing authority in respect of such Assertion and may, at its sole option, either direct the Employee to pay the tax claimed and sue for a refund or contest the Assertion in any permissible manner; and the Employee agrees to prosecute such contest
to a determination before any administrative tribunal in a court of initial jurisdiction and in one or more appellate courts, as the Company shall determine; provided, however, that if the Company directs the Employee to pay such Assertion and sue
for a refund, the Company shall advance the amount of such payment to the Employee, on an interest-free basis, and shall indemnify and hold the Employee harmless, on an after-tax basis, from any Excise Tax or income tax (including interest or
penalties with respect thereto) imposed with respect to such advance or with respect to any imputed income with respect to such advance; and further provided that any extension of the statute of limitations relating to payment of the taxes for the
taxable year of the Employee with respect to which such contested amount is claimed to be due is limited solely to such contested amount. Furthermore, the Company’s control of the contest shall be limited to issues with respect to which a
Gross-up Payment would be payable hereunder, and the Employee shall be entitled to settle or contest, as the case may be, any other issue raised by the Internal Revenue Service or any other taxing authority. 
  
 (iv) If, after the receipt by the Employee of an amount advanced by the
Company pursuant to Section (f)(iii), the Employee becomes entitled to receive any refund with respect to such Assertion, the Employee shall (subject to the Company’s complying with the requirements of Section (f)(iii)) promptly pay to the
Company the amount of such refund (together with any 
  

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 interest paid or credited thereon after taxes applicable thereto). If, after the receipt by the Employee of an amount
advanced by the Company pursuant to Section (f)(iii), a determination is made that the Employee shall not be entitled to any refund with respect to such Assertion, and the Company does not notify the Employee in writing of its intent to contest such
denial of refund prior to the expiration of thirty (30) days after such determination, then such advance shall be forgiven and shall not be required to be repaid and the amount of such advance shall offset, to the extent thereof, the amount of
Gross-up Payment required to be paid. 
  
 (g) The Company shall
pay to the Employee a lump sum amount in cash equal to the sum of the Employee’s base salary through the Effective Time to the extent not theretofore paid, any accrued vacation pay and any other amounts due Employee as of the Effective Time.
Such amount will be paid within ten (10) days after the Effective Date. 
  
 6. Effective at the time the Employee receives payment (the “Time of Payment”) of the “Merger Bonus,” the Employment Agreement, together with any other agreement between the Company and the Employee entered into prior to
this Agreement (other than any stock option agreement relating to any option referred to in Section 1(d)) and the Indemnification Agreement dated February 5, 2004 between the Company and the Employee (collectively, the “Surviving
Agreements”), shall be immediately, automatically and without further action on the part of the Company or the Employee, terminated and of no further force or effect. 
  
 7. Effective at the Time of Payment, the Employee, immediately, automatically and without further action on the part of the
Parties, waives any right to payments under the Employment Agreement and under any other agreement between the Parties entered into prior to the date of this Agreement (other than the Surviving Agreements). 
  
 8. Effective at the Time of Payment, and in addition to the waiver of payment
by the Employee pursuant to section 7 and not in limitation thereof, the Parties, immediately, automatically and without further action on the part of the Parties, release, acquit and discharge one another from all claims, liabilities and
obligations relating to the Employment Agreement and any agreement entered into prior to the date of this Agreement (other than the Surviving Agreements), whether known or unknown, accrued, contingent or otherwise, arising out of any fact,
circumstance or event occurring on or prior to the Time of Payment. 
  
 9. The Parties acknowledge that the provisions of sections 6, 7 and 8 of this Termination and Waiver of Rights Under Employment Agreement shall 
  

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 become effective if and only if the Employee receives payment of the Merger Bonus. Prior to the Employee’s receipt
of payment of the Merger Bonus or in the event the Employee does not receive payment of the Merger Bonus, the Employment Agreement is not terminated hereby, remain in full force and effect and is not otherwise amended or modified hereby. If the
Merger Agreement is terminated in accordance with its terms, then this Agreement will terminate at the same time and be of no further force and effect. 
  
 10. The Company’s obligation to make the payments provided for in this Agreement and otherwise to perform its obligations hereunder shall not be
subject to any set-off, counterclaim, recoupment, defense or other Assertion, right or action which the Company may have against the Employee or others. In no event shall the Employee be obligated to seek other employment or take any other action by
way of mitigation of the amounts (including amounts for damages for breach) payable to the Employee under any of the provisions of this Agreement and such amounts shall not be reduced whether or not the Employee obtains other employment. 

 
 11. (a) This Agreement is personal to the Employee and, without the prior
written consent of the Company, shall not be assignable by the Employee otherwise than by will or the laws of descent and distribution. This Agreement shall inure to the benefit of and be enforceable by the Employee’s legal representatives.

  
 (b) This Agreement shall inure to the benefit of and be
binding upon the Company and its respective successors and assigns. 
  
 (c) The Company shall require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or assets thereof to expressly assume and agree to perform this
Agreement in the same manner and to the same extent that the Company would be required to perform this Agreement if no succession had taken place. 
  
 12. (a) This Agreement shall be governed by and construed in accordance with the laws of the Commonwealth of Massachusetts, without reference to its
principles of conflict of laws. This Agreement may not be amended, modified, repealed, waived, extended or discharged except by an agreement in writing signed by the party against whom enforcement of such amendment, modification, repeal, waiver,
extension or discharge is sought. No person, other than pursuant to a resolution of the Board of Directors of the Company, shall have authority on behalf of the Company to agree to amend, modify, repeal, waive, extend or discharge any provision of
this Agreement or take any other action in respect thereto. 
  

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 (b) All notices and other communications hereunder shall be in writing and shall be given by hand
delivery to the other party or by registered or certified mail, return receipt requested, postage prepaid, addressed to the Company’s headquarters and, in the case of the Employee, to the address on the signature page of this Agreement or, in
either case, to such other address as any party shall have subsequently furnished to the other parties in writing. Notice and communications shall be effective when actually received by the addressee. 
  
 (c) The invalidity or unenforceability of any provision of this Agreement
shall not affect the validity or enforceability of any other provision of this Agreement. 
  
 (d) The Company may withhold from any amounts due and payable under this Agreement such federal, state or local taxes as shall be required to be withheld pursuant to any applicable law or regulation. 
  
 (e) Any party’s failure to insist upon strict compliance with any
provision hereof or the failure to assert any right such party may have hereunder shall not be deemed to be a waiver of such provision or right or any other provision or right of this Agreement. 
  
 (f) This Agreement entered into as of the date hereof between the Company and
the Employee contains the entire agreement of the Employee and the Company with respect to the subject matter of the Agreement, and all promises, representations, understandings, arrangements and prior agreements, including without limitation the
Employment Agreement but excluding the Surviving Agreements, are merged into, and superseded by, this Agreement. 
  
 [Signature Page to follow] 
  

 8 

 Dated as of the 4th day of June, 2004. 
  

	
	THE FIRST YEARS, INC.  

	 BY: /s/ John R.
Beals                        
 Its: Chief Financial Officer
  

	 /s/ Ronald J.
Sidman                                
 Ronald J. Sidman, Employee

	 Employee’s Address:
  
 376 Wheeler Road
 Marstons Mills, MA 02468

  

 9Warrant dated 09/26/02 between Horizon Medical Products and Epoch Fnl Group

 EXHIBIT 4.7 
  

THIS WARRANT AND ANY SECURITIES ACQUIRED UPON THE EXERCISE OF THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY APPLICABLE
STATE SECURITIES LAWS AND MAY NOT BE OFFERED, SOLD, OR OTHERWISE TRANSFERRED, PLEDGED, OR HYPOTHECATED UNLESS AND UNTIL SUCH SECURITIES ARE REGISTERED UNDER SUCH ACT AND APPLICABLE STATE SECURITIES LAWS OR AN OPINION, SATISFACTORY TO THE COMPANY, OF
COUNSEL IS OBTAINED TO THE EFFECT THAT SUCH REGISTRATION IS NOT REQUIRED. 
  
 VOID AFTER 5:00 P.M. EASTERN TIME, JULY 11, 2011 
  
 WARRANT 
  
 FOR THE PURCHASE OF

  
 25,000 SHARES OF COMMON STOCK 
  
 OF 
  
 HORIZON MEDICAL PRODUCTS, INC. 
  

	1.	Warrant. 

  
 THIS CERTIFIES THAT, in consideration of $10.00 and other good and valuable consideration, duly paid by or on behalf of Epoch Financial Group, Inc. ("Holder"), as registered owner of this Warrant, to Horizon Medical
Products, Inc. ("Company"), Holder is entitled, at any time or from time to time on or after July 11, 2001 ("Commencement Date"), and at or before 5:00 p.m., Eastern Time July 11, 2011 ("Expiration Date"), but not thereafter, to subscribe for,
purchase and receive, in whole or in part, up to twenty-five thousand (25,000) shares of Common Stock of the Company, $0.001 par value ("Common Stock"). If the Expiration Date is a day on which banking institutions are authorized by law to close,
then this Warrant may be exercised on the next succeeding day which is not such a day in accordance with the terms herein. During the period ending on the Expiration Date, the Company agrees not to take any action that would terminate the Warrant.
This Warrant is initially exercisable at $1.22 per share of Common Stock purchased; provided, however, that upon the occurrence of any of the events specified in Section 6 hereof, the rights granted by this Warrant, including the exercise price and
the number of shares of Common Stock to be received upon such exercise, shall be adjusted as therein specified. The term "Exercise Price" shall mean the initial exercise price or the adjusted exercise price, depending on the context, of a share of
Common Stock. The term "Securities" shall mean the shares of Common Stock issuable upon exercise of this Warrant. 
  

	2.	Exercise. 

  
 2.1 Exercise Form. In order to exercise this Warrant, the exercise form attached hereto must be duly executed and completed and delivered to the Company, together with this Warrant and payment of the Exercise Price
for the Securities being purchased. If the subscription rights represented hereby shall not be exercised at or before 5:00 p.m., Eastern time, on the Expiration Date, this Warrant shall become and be void without further force or effect, and all
rights represented hereby shall cease and expire. 

 2.2 Legend. Each certificate for Securities purchased under this Warrant shall bear a legend as follows,
unless such Securities have been registered under the Securities Act of 1933, as amended ("Act"): 
  
 THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED OR ANY APPLICABLE STATE SECURITIES
LAWS AND MAY NOT BE OFFERED, SOLD, OR OTHERWISE TRANSFERRED, PLEDGED, OR HYPOTHECATED UNLESS AND UNTIL SUCH SECURITIES ARE REGISTERED UNDER SUCH ACT AND APPLICABLE STATE SECURITIES LAWS OR AN OPINION, SATISFACTORY TO THE COMPANY, OF COUNSEL IS
OBTAINED TO THE EFFECT THAT SUCH REGISTRATION IS NOT REQUIRED. 
  
 2.3 Conversion Right. 
  
 2.3.1 Determination of Amount.
In lieu of the payment of the Exercise Price in cash, the Holder shall have the right (but not the obligation) to convert this Warrant, in whole or in part, into Common Stock ("Conversion Right"), as follows: upon exercise of the Conversion Right,
the Company shall deliver to the Holder (without payment by the Holder of any of the Exercise Price) that number of shares of Common Stock equal to the quotient obtained by dividing (x) the "Value" (as defined below) of the portion of the Warrant
being converted at the time the Conversion Right is exercised by (y) the Market Price on the date of conversion. The "Value" of the portion of the Warrant being converted shall equal the remainder derived from subtracting (a) the Exercise Price
multiplied by the number of shares of Common Stock being converted from (b) the Market Price of the Common Stock on the date of conversion multiplied by the number of shares of Common Stock being converted. As used herein, the term "Market Price" at
any date shall be deemed to be the last reported sale price of the Common Stock on such date, or, in case no such reported sale takes place on such day, the average of the last reported sales prices for the immediately preceding three trading days,
in either case as officially reported by the principal securities exchange on which the Common Stock is listed or admitted to trading, or, if the Common Stock is not listed or admitted to trading on any national securities exchange or if any such
exchange on which the Common Stock is listed is not its principal trading market, the last reported sale price as furnished by the National Association of Securities Dealers, Inc. ("NASD") through the NASDAQ National Market or SmallCap Market, or,
if applicable, the OTC Bulletin Board, or if the Common Stock is not listed or admitted to trading on any of the foregoing markets, or similar organization, as determined in good faith by resolution of the Board of Directors of the Company, based on
the best information available to it. 
  
 2.3.2 Exercise of
Conversion Right. The Conversion Right may be exercised by the Holder on any business day on or after the Commencement Date and not later than the Expiration Date by delivering the Warrant with a duly executed exercise form attached hereto with the
conversion section completed to the Company, exercising the Conversion Right and specifying the total number of shares of Common Stock the Holder will purchase pursuant to such conversion. 
  

	3.	Transfer. 

  
 3.1 Transferability. Subject to the provisions of this Section 3, this Warrant and all rights hereunder are transferable, in whole or in part, upon surrender of this Warrant with a properly executed assignment (in the
form attached hereto) at the principal office of the Company. 
  

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 3.2 Representations of Holder. By accepting this Warrant, the Holder represents and warrants to the
Company as follows: 
  
 (a) The Warrant will be acquired for
investment for the Holder's own account and not with a view to the sale or distribution of any part thereof, and the Holder has no present intention of selling or engaging in any public distribution of the same except pursuant to a registration or
exemption from the Securities Act of 1933, as amended ("Securities Act"). 
  
 (b) The Holder understands and acknowledges (i) that the Securities issuable upon exercise of the Holder's rights contained herein are not registered under the Securities Act or qualified under applicable state
securities laws because the issuance contemplated by this Warrant will be exempt from the registration and qualification requirements thereof, and (ii) that the Company's reliance on such exemption is predicated on the accuracy of the
representations set forth in this Section 3.2. 
  
 (c) The Holder
has such knowledge and experience in financial and business matters as to be capable of evaluating the merits and risks of its investment and has the ability to bear the economic risks of its investment. 
  
 (d) The Holder understands that if the Company's Common Stock ceases to be
registered with the Securities and Exchange Commission pursuant to paragraph 12 of the Securities Exchange Act of 1934 (the "Exchange Act"), or if the Company ceases to file the reports required under the Exchange Act, or if a registration statement
covering the securities under the Securities Act is not in effect when it desires to resell (i) this Warrant or (ii) the Securities issuable upon exercise of this Warrant, it may be required to hold such securities for an indefinite period. The
Holder is aware of the provisions of Rule 144 promulgated under the Securities Act. 
  
 (e) The Holder will not offer, sell, or otherwise dispose of this Warrant or any Securities to be issued upon exercise hereof except under circumstances that will not result in a violation of the Securities Act or any
state securities laws. 
  
 3.3 Securities Law Matters. This
Warrant and the Securities may not be sold or transferred unless either (i) they first shall have been registered under the Securities Act, or (ii) if requested by the Company, the Company first shall have been furnished with an opinion of legal
counsel, reasonably satisfactory to the Company, to the effect that such sale or transfer is exempt from the registration requirements of the Act. Notwithstanding the foregoing, no registration or opinion of counsel shall be required for a sale or
transfer made in accordance with Rule 144 under the Act provided that the Company shall have been furnished with such information as the Company may reasonably request to provide reasonable assurance that the requirements of Rule 144 have been
satisfied. 
  

	4.	New Warrants to be Issued. 

  
 4.1 Partial Exercise or Transfer. Subject to the restrictions in Section 3 hereof, this Warrant may be exercised or assigned in whole or in part. In the
event of the exercise or assignment hereof in part only, upon surrender of this Warrant for cancellation, together with the duly executed exercise or assignment form and funds (or conversion equivalent) sufficient to pay any Exercise Price and/or
transfer tax, the Company shall cause to be delivered to the Holder without charge a new Warrant of like tenor to this Warrant in the name of the Holder evidencing the right of the Holder to purchase the aggregate number of shares of 
  

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 Common Stock and Warrants purchasable hereunder as to which this Warrant has not been exercised or assigned. 

 
 4.2 Lost Certificate. Upon receipt by the Company of evidence satisfactory
to it of the loss, theft, destruction, or mutilation of this Warrant and of reasonably satisfactory indemnification, the Company shall execute and deliver a new Warrant of like tenor and date. Any such new Warrant executed and delivered as a result
of such loss, theft, mutilation, or destruction shall constitute a substitute contractual obligation on the part of the Company. 
  

	5.	Adjustments. 

  
 5.1 Adjustments to Exercise Price and Number of Securities. The Exercise Price and the number of shares of Common Stock underlying this Warrant shall be subject to adjustment from time to time as hereinafter set
forth: 
  
 5.1.1 Stock Dividends - Recapitalization,
Reclassification, Split-Ups. If, after the date hereof, and subject to the provisions of Section 5.2 below, the number of outstanding shares of Common Stock is increased by a stock dividend on the Common Stock payable in shares of Common Stock or by
a split-up, recapitalization, or reclassification of shares of Common Stock or other similar event, then, on the effective date thereof, the number of shares of Common Stock issuable on exercise of this Warrant shall be increased in proportion to
such increase in outstanding shares. 
  
 5.1.2 Aggregation of
Shares. If after the date hereof, and subject to the provisions of Section 5.2, the number of outstanding shares of Common Stock is decreased by a consolidation, combination, or reclassification of shares of Common Stock or other similar event,
then, upon the effective date thereof, the number of shares of Common Stock issuable on exercise of this Warrant shall be decreased in proportion to such decrease in outstanding shares. 
  
 5.1.3 Adjustments in Exercise Price. Whenever the number of shares of Common Stock purchasable upon the exercise of this
Warrant is adjusted, as provided in this Section 5.1, the Exercise Price shall be adjusted (to the nearest cent) by multiplying such Exercise Price immediately prior to such adjustment by a fraction (x), the numerator of which shall be the number of
shares of Common Stock purchasable upon the exercise of this Warrant immediately prior to such adjustment, and (y) the denominator of which shall be the number of shares of Common Stock so purchasable immediately thereafter. 
  
 5.1.4 Replacement of Securities Upon Reorganization, etc. In case of any
reclassification or reorganization of the outstanding shares of Common Stock other than a change covered by Section 5.1.1 hereof or which solely affects the par value of such shares of Common Stock, or in the case of any merger or consolidation of
the Company with or into another corporation (other than a consolidation or merger in which the Company is the continuing corporation and which does not result in any reclassification or reorganization of the outstanding shares of Common Stock), or
in the case of any sale or conveyance to another corporation or entity of the property of the Company as an entirely or substantially as an entirety in connection with which the Company is dissolved, the Holder of this Warrant shall have the right
thereafter (until the expiration of the right of exercise of this Warrant) to receive upon the exercise hereof, for the same aggregate Exercise Price payable hereunder immediately prior to such event, the kind and amount of shares of stock or other
securities or property (including cash) receivable upon such reclassification, reorganization, merger, or consolidation, or upon a dissolution following any such sale or other transfer, by a Holder of the number of 
  

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 shares of Common Stock of the Company obtainable upon exercise of this Warrant immediately prior to such event; and if
any reclassification also results in a change in shares of Common Stock covered by Section 5.1.1 or 5.1.2, then such adjustment shall be made pursuant to Sections 5.1.1, 5.1.2, 5.1.3, and this Section 5.1.4. The provisions of this Section 5.1.4
shall similarly apply to successive reclassifications, reorganizations, mergers or consolidations, sales, or other transfers. 
  
 5.1.5 Changes in Form of Warrant. This form of Warrant need not be changed because of any change pursuant to this Section, and Warrants issued after such
change may state the same Exercise Price and the same number of shares of Common Stock and Warrants as are stated in the Warrants initially issued pursuant to this Agreement. The acceptance by any Holder of the issuance of new Warrants reflecting a
required or permissive change shall not be deemed to waive any rights to a prior adjustment or the computation thereof. 
  
 5.2 Elimination of Fractional Interests. The Company shall not be required to issue certificates representing fractions of shares of Common Stock upon the
exercise of this Warrant, nor shall it be required to issue scrip or pay cash in lieu of any fractional interests, it being the intent of the parties that all fractional interests shall be eliminated by rounding any fraction up to the nearest whole
number of shares of Common Stock or other securities, properties, or rights. 
  
 6. Reservation and Listing. The Company shall at all times reserve and keep available out of its authorized shares of Common Stock, solely for the purpose of issuance upon exercise of this Warrant, such number of shares of Common Stock or
other securities, properties, or rights as shall be issuable upon the exercise thereof. The Company covenants and agrees that, upon exercise of the Warrants and payment of the Exercise Price therefor, all shares of Common Stock and other securities
issuable upon such exercise shall be duly and validly issued, fully paid, and non-assessable and not subject to preemptive rights of any stockholder. As long as the Warrants shall be outstanding, the Company shall use its best efforts to cause all
shares of Common Stock issuable upon exercise of the Warrants to be listed (subject to official notice of issuance) on all securities exchanges (or, if applicable on NASDAQ) on which the Common Stock is then listed and/or quoted. 
  

	7.	Certain Notice Requirements. 

  
 7.1 Holder's Right to Receive Notice. Nothing herein shall be construed as conferring upon the Holder the right to vote or consent or to receive notice as
a stockholder for the election of directors or any other matter, or as having any rights whatsoever as a stockholder of the Company. If, however, at any time prior to the expiration of the Warrants and their exercise, any of the events described in
Section 7.2 shall occur, then, in one or more of said events, the Company shall give written notice of such event at least fifteen days prior to the date fixed as a record date or the date of closing the transfer books for the determination of the
stockholders entitled to such dividend, distribution, conversion, or exchange of securities or subscription rights, or entitled to vote on such proposed dissolution, liquidation, winding up, or sale. Such notice shall specify such record date or the
date of the closing of the transfer books, as the case may be. 
  
 7.2 Events Requiring Notice. The Company shall be required to give the notice described in this Section 7 upon one or more of the following events: (i) if the Company shall take a record of the holders of its shares of Common Stock for the
purpose of entitling them to receive a dividend or distribution, or (ii) the Company shall offer to all the holders of its Common Stock any additional shares of capital stock of the Company or securities convertible into or exchangeable for shares
of capital stock of the Company, or any 
  

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 option, right, or warrant to subscribe therefor, or (iii) a merger or reorganization in which the Company is not the
surviving party, or (iv) a dissolution, liquidation, or winding up of the Company (other than in connection with a consolidation or merger) or a sale of all or substantially all of its property, assets, and business shall be proposed. 
  
 7.3 Notice of Change in Exercise Price. The Company shall, promptly after an
event requiring a change in the Exercise Price pursuant to Section 5 hereof, send notice to the Holder of such event and change ("Price Notice"). The Price Notice shall describe the event causing the change and the method of calculating same and
shall be certified as being true and accurate by the Company's President and Chief Financial Officer. 
  
 7.4 Transmittal of Notices. All notices, requests, consents, and other communications under this Warrant shall be in writing and shall be deemed to have
been duly made on the date of delivery if delivered personally or sent by overnight courier, with acknowledgement of receipt by the party to which notice is given, or the fifth day after mailing if mailed to the party to whom notice is to be given,
by registered or certified mail, return receipt requested, postage prepaid, and properly addressed as follows: (i) if to the registered Holder of this Warrant, to the address of such Holder as shown on the books of the Company, or (ii) if to the
Company, to its principal office. 
  

	8.	Miscellaneous. 

  
 8.1 Headings. The headings contained herein are for the sole purpose of convenience of reference, and shall not in any way limit or affect the meaning or
interpretation of any of the terms or provisions of this Warrant. 
  
 8.2 Entire Agreement. This Warrant (together with the other agreements and documents being delivered pursuant to or in connection with this Warrant) constitutes the entire agreement of the parties hereto with respect to the subject matter
hereof, and supersedes all prior agreements and understandings of the parties, oral and written, with respect to the subject matter hereof. 
  
 8.3 Binding Effect. This Warrant shall inure solely to the benefit of and shall be binding upon, the Holder and the Company and their respective
successors, legal representatives, and assigns, and no other person shall have or be construed to have any legal or equitable right, remedy, or claim under or in respect of or by virtue of this Warrant or any provisions herein contained. 

 
 8.4 Governing Law; Submission to Jurisdiction. This Warrant shall be
governed by and construed and enforced in accordance with the laws of the State of Georgia, without giving effect to conflict of laws. The Company hereby agrees that any action, proceeding, or claim against it arising out of, or relating in any way
to this Warrant shall be brought and enforced in the courts of the State of Georgia or of the United States of America in a district court located in the State of Georgia, and irrevocably submits to such jurisdiction, which jurisdiction shall be
exclusive. The Company hereby waives any objection to such exclusive jurisdiction and that such courts represent an inconvenient forum. Any process or summons to be served upon the Company may be served by transmitting a copy thereof by registered
or certified mail, return receipt requested, postage prepaid, addressed to it at the address set forth in Section 7 hereof. Such mailing shall be deemed personal service and shall be legal and binding upon the Company in any action, proceeding, or
claim. 
  

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 8.5 Waiver, etc. The failure of the Company or the Holder to at any time enforce any of the provisions of
this Warrant shall not be deemed or construed to be a waiver of any such provision, nor to in any way affect the validity of this Warrant or any provision hereof or the right of the Company or any Holder to thereafter enforce each and every
provision of this Warrant. No waiver of any breach, non-compliance, or non-fulfillment of any of the provisions of this Warrant shall be effective unless set forth in a written instrument executed by the party or parties against whom or which
enforcement of such waiver is sought; and no waiver of any such breach, non-compliance, or non-fulfillment shall be construed or deemed to be a waiver of any other or subsequent breach, non-compliance, or non-fulfillment. 
  
 8.6 Exchange Agreement. As a condition of the Holder's receipt and acceptance
of this Warrant, the Holder agrees that, at any time prior to the complete exercise of this Warrant by the Holder, if the Company and Epoch Financial Group, Inc. enter into an agreement ("Exchange Agreement") pursuant to which they agree that all
outstanding Warrants will be exchanged for securities or cash or a combination of both, then the Holder shall agree to such exchange and become a party to the Exchange Agreement. 
  
 IN WITNESS WHEREOF, the Company has caused this Warrant to be signed by its duly authorized officer as of the 26 day of
September, 2002. 
  

			
	 HORIZON MEDICAL PRODUCTS, INC.

		
	 By:
	 	 /s/ William E. Peterson, Jr.

	 	 	 William E. Peterson, Jr., President

  

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