Document:

Document

SECOND AMENDMENT TO STANDSTILL AND AMENDMENT AGREEMENT  

THIS SECOND AMENDMENT TO STANDSTILL AND AMENDMENT AGREEMENT (this “Second Amendment”) is made and entered into effective as of April 17, 2020, by and among UNIT CORPORATION, a Delaware corporation (“Unit”), UNIT DRILLING COMPANY, an Oklahoma corporation (“Unit Drilling”), UNIT PETROLEUM COMPANY, an Oklahoma corporation (“Unit Petroleum”) (Unit, Unit Drilling and Unit Petroleum, together with each of their respective successors and permitted assigns, is each, individually, called a “Borrower”, and, collectively, jointly and severally, the “Borrowers”), and BOKF, NA dba Bank of Oklahoma, as administrative agent for the Lenders (the "Administrative Agent"), on behalf of the Required Lenders (as defined in the Existing Credit Agreement (as defined below)) party to the Existing Credit Agreement (each, individually a "Lender" and, collectively, the "Lenders").

R E C I T A L S

A.The Borrowers, the Lenders and the Administrative Agent heretofore entered into: (i) that certain Standstill and Amendment Agreement dated March 11, 2020, as amended by that certain First Amendment to Standstill and Amendment Agreement dated April 15, 2020 (the “Existing Standstill Agreement); and (ii) that certain Senior Credit Agreement dated as of September 13, 2011, as amended by the First Amendment and Consent to Senior Credit Agreement dated as of September 5, 2012, the Second Amendment and Consent to Senior Credit Agreement dated as of April 10, 2015, the Third Amendment to Senior Credit Agreement dated as of April 8, 2016, the Fourth Amendment to Senior Credit Agreement dated as of April 2, 2018, the Fifth Amendment to Senior Credit Agreement dated October 18, 2018, and the Existing Standstill Agreement (and as the same has been further amended, modified or supplemented prior to the date hereof, collectively, the "Existing Credit Agreement"; the Existing Credit Agreement, as amended by this Second Amendment, collectively, the “Credit Agreement”).  

B.The Borrowers, the Required Lenders and the Administrative Agent desire to amend the Existing Standstill Agreement, as and to the extent expressly provided for in this Second Amendment.

C.Each of the Credit Parties will receive substantial and valuable consideration and economic benefits from the agreements being made by Administrative Agent and the Lenders hereunder, upon the terms and conditions set forth in this Second Amendment.

NOW, THEREFORE, in consideration of the foregoing recitals, the promises contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

A G R E E M E N T S

1.Recitals; Capitalized Terms. The recitals set forth above are incorporated herein with the same force and effect as if set forth at length herein below. The term “Standstill Agreement” as used in this Second Amendment (and the term “this Agreement” as set forth within the Existing Standstill Agreement), shall hereafter mean the Existing Standstill Agreement, as amended by this Second Amendment. The term “Credit Agreement” as used in this Second Amendment (and the term “this Agreement” as set forth within the Existing Credit Agreement), shall hereafter mean the Existing Credit Agreement, as amended by this Second Amendment. Unless otherwise expressly defined herein, all capitalized terms used herein shall have the respective meanings ascribed to such terms pursuant to the Existing Credit Agreement, including, without limitation, and as applicable, pursuant to the 
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Existing Standstill Agreement.

2.Certain Amended and Modified Definitions. The following capitalized terms (as heretofore set forth within the Existing Standstill Agreement), for the purposes of both the Standstill Agreement and the Credit Agreement, shall have the following amended and modified meanings, and Section 1.2 of the Existing Standstill Agreement is hereby amended and modified, accordingly as follows:

 “Standstill Agreement” shall mean that certain Standstill and Amendment Agreement dated March 11, 2020 among the Credit Parties, Administrative Agent and the Lenders party thereto, as amended by that certain First Amendment to Standstill and Amendment Agreement dated April 15, 2020 among the Credit Parties and the Administrative Agent on behalf of the Required Lenders, and that certain Second Amendment to Standstill and Amendment Agreement dated April 17, 2020 among the Credit Parties and the Administrative Agent on behalf of the Required Lenders (as the same may be amended, modified, replaced, amended and restated and supplemented form time to time). 

"Standstill Period" shall mean the period commencing on the Standstill Effective Date and continuing until the earlier of: (i) the receipt by any Credit Party from the Administrative Agent of notice of the occurrence of any Termination Event, and (ii) 3:00 p.m. Central time on May 4, 2020.

3.General Release. IN CONSIDERATION OF, INTER ALIA, THE ADMINISTRATIVE AGENT’S AND THE LENDERS’ AGREEMENTS AND CONSIDERATION AS SET FORTH IN THE STANDSTILL AGREEMENT (AS AMENDED HEREBY), INCLUDING, WITHOUT LIMITATION, ADMINISTRATIVE AGENT’S AND THE LENDERS’ AGREEMENTS TO MODIFY THE CREDIT AGREEMENT (AS AMENDED HEREBY) AS DESCRIBED IN THE STANDSTILL AGREEMENT (AS AMENDED HEREBY), EACH CREDIT PARTY HEREBY, FOR ITSELF AND ITS SUCCESSORS AND ASSIGNS, FULLY AND WITHOUT RESERVE, RELEASES AND FOREVER DISCHARGES EACH OF THE ADMINISTRATIVE AGENT, THE LENDERS, CO-SYNDICATION AGENTS, LC ISSUER, AND EACH OF THEIR RESPECTIVE SUCCESSORS AND ASSIGNS, OFFICERS, DIRECTORS, EMPLOYEES, REPRESENTATIVES, TRUSTEES, ATTORNEYS, AGENTS, ADVISORS (INCLUDING ATTORNEYS, ACCOUNTANTS AND EXPERTS) AND AFFILIATES (COLLECTIVELY THE “RELEASED PARTIES” AND INDIVIDUALLY A “RELEASED PARTY”) FROM ANY AND ALL ACTIONS, CLAIMS, DEMANDS, CAUSES OF ACTION, JUDGMENTS, EXECUTIONS, SUITS, DEBTS, LIABILITIES, COSTS, DAMAGES, EXPENSES OR OTHER OBLIGATIONS OF ANY KIND AND NATURE WHATSOEVER, KNOWN OR UNKNOWN, DIRECT AND/OR INDIRECT, AT LAW OR IN EQUITY, WHETHER NOW EXISTING OR HEREAFTER ASSERTED (INCLUDING, WITHOUT LIMITATION, ANY OFFSETS, REDUCTIONS, REBATEMENT, CLAIMS OF USURY OR CLAIMS WITH RESPECT TO THE NEGLIGENCE OF ANY RELEASED PARTY), FOR OR BECAUSE OF ANY MATTERS OR THINGS OCCURRING, EXISTING OR ACTIONS DONE, OMITTED TO BE DONE, OR SUFFERED TO BE DONE BY ANY OF THE RELEASED PARTIES, IN EACH CASE, ON OR PRIOR TO THE EFFECTIVE DATE OF THIS SECOND AMENDMENT, AND ARE IN ANY WAY DIRECTLY OR INDIRECTLY ARISING OUT OF OR IN ANY WAY CONNECTED TO ANY OF THE STANDSTILL AGREEMENT (AS AMENDED HEREBY), THE CREDIT AGREEMENT (AS AMENDED HEREBY), ANY OTHER LOAN DOCUMENT OR ANY OF THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (COLLECTIVELY, THE “RELEASED MATTERS”). THE BORROWERS, BY EXECUTION HEREOF, ON BEHALF OF THEMSELVES AND ON BEHALF OF EACH OTHER CREDIT 
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PARTY, EACH HEREBY ACKNOWLEDGES AND AGREES THAT THE AGREEMENTS IN THIS SECTION 3 ARE INTENDED TO COVER AND BE IN FULL SATISFACTION FOR ALL OR ANY ALLEGED INJURIES OR DAMAGES ARISING IN CONNECTION WITH THE RELEASED MATTERS. THE PROVISIONS OF THIS SECTION 3 SHALL SURVIVE THE TERMINATION OF THE STANDSTILL AGREEMENT (AS AMENDED HEREBY), THE CREDIT AGREEMENT (AS AMENDED HEREBY), AND THE OTHER LOAN DOCUMENTS.

4.Miscellaneous:  

A.No Waiver. Notwithstanding any of the foregoing, the standstill granted by the Administrative Agent and the Lenders pursuant to the Standstill Agreement (as amended hereby) shall not constitute and shall not be deemed to constitute a waiver or release of (x) any Default, Event of Default, or occurrence of any Material Adverse Event, or (y) any other fact, event or occurrence under the Credit Agreement or any other Loan Document (whether now or hereafter existing, and whether or not now or hereafter known by Administrative Agent or any Lender to be existing). Administrative Agent and the Lenders hereby expressly reserve and preserve all of their respective rights and remedies (whether pursuant to the Credit Agreement or any other Loan Document, the UCC, at law, in equity or otherwise) respecting any and/or all such Defaults, Events of Default and/or other facts, events, occurrences and other matters, subject only to the applicable terms and conditions of the Standstill Agreement (as amended hereby).

B.Conflict; Ratification. To the extent of any conflict or inconsistency between the terms and conditions of this Second Amendment, and the terms and conditions of the Existing Standstill Agreement or the terms and conditions of the Existing Credit Agreement, the terms and conditions of this Second Amendment shall govern and control. Except to the extent otherwise expressly modified hereby, the terms and conditions of both the Existing Standstill Agreement and the Existing Credit Agreement shall remain unchanged and of full force and effect and are hereby ratified by the undersigned parties.

C.Counterparts. This Second Amendment may be executed in any number of counterparts; each such counterpart hereof shall be deemed to be an original, but all such counterparts together shall constitute but one agreement.  Signatures to this Second Amendment transmitted by facsimile or by e-mail in .pdf or .tif format shall be valid and effective as an original to bind the party so signing for all intents and purposes hereunder.

D.Interpretation; Governing Law. The section headings set forth in this Second Amendment are for convenience of reference only, and do not define, limit or construe the contents of such sections. THIS SECOND AMENDMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS (BUT NOT THE RULES GOVERNING CONFLICTS OF LAWS) OF THE STATE OF OKLAHOMA AND SHALL BE PERFORMABLE IN TULSA COUNTY, OKLAHOMA. The provisions of (i) Article 17 of the Existing Credit Agreement, and (ii) Article 7 of the Existing Standstill Agreement, respectively, shall apply to this Second Amendment, mutatis mutandis.  

[SIGNATURES FOLLOW ON THE NEXT PAGES]

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IN WITNESS WHEREOF, the parties hereto have caused this Second Amendment to be duly executed by their respective authorized officers as of the day and year first above written.

BORROWERS:

UNIT CORPORATION, a Delaware corporation, 
UNIT PETROLEUM COMPANY, an Oklahoma corporation, 
UNIT DRILLING COMPANY, an Oklahoma corporation,

By:_________________________________
Mark Schell, as Senior Vice President, Secretary & General Counsel of each of  
UNIT CORPORATION,  
UNIT PETROLEUM COMPANY, and  
UNIT DRILLING COMPANY

8200 South Unit Drive 
Tulsa, Oklahoma 74132-5300 
Attention:  Mark Schell 
Telephone: (918) 493-7700 
Facsimile:  (918) 493-7711

Signature Page to Second Amendment to Standstill Agreement

BOKF, NA dba Bank of Oklahoma, as LC Issuer, as Administrative Agent, and as a Lender, on behalf of the Required Lenders

By:__________________________________ 
Matt Chase 
Senior Vice President   

101 East Second Street 
Bank of Oklahoma Tower - 8th floor/Energy Department One Williams Center 
Tulsa, Oklahoma  74172 
Telephone:  (918) 588-6641 
Facsimile:  (918) 588-688
Signature Page to Second Amendment to Standstill AgreementExhibit 10.1

 

U.S. SMALL BUSINESS ADMINISTRATION NOTE

 

	SBA Authorization #	9947677000
	Date Approved	04/09/2020
	Note Date	04/17/2020
	Loan Amount	$1,363,000.00
	Interest Rate	1.00%
	Borrower	RETRACTABLE TECHNOLOGIES, INC.
	 	 
	Lender	Independent Bank
	CIF#	RAA1016
	Loan Number	6088273

*The Loan must close and fund 10 calendar
days from the date above.

 

	1.	PROMISE TO PAY:

 

This Loan is being made by Lender
to Borrower pursuant to the Paycheck Protection Program (as defined below). In return for the Loan, Borrower promises to pay to
the order of Lender the amount of $1,363,000.00 Dollars, interest on the unpaid principal balance, and all other amounts required
by this Note. This Note is unsecured.

 

	2.	DEFINITIONS:

 

		A.	“CARES Act” means Coronavirus Aid, Relief, and Economic Security Act, as well as any
related sections of such statute, and any regulations promulgated thereunder or requirements of the SBA (as defined herein), as
any such may be further amended.

 

		B.	“Default” means any of the events specified in Section 4 that constitutes an Event
of Default or which, upon the giving of notice, the lapse of time, or both, pursuant to Section 4 would, unless cured or waived,
become an Event of Default.

 

		C.	“Deferral Period” means the 6 month period beginning on the date of this Note.

 

		D.	“Event of Default” has the meaning set forth in Section 4.

 

		E.	“First Payment Date” means 11/17/2020.

 

		F.	“Interest Rate” shall mean one percent (1%) per annum.

 

		G.	“Loan” means the loan made by Lender to Borrower evidenced by this Note.

 

		H.	“Loan Documents” means, collectively, this Note and any other documents related to
the Loan signed by Borrower, as the same may be amended, restated, supplemented, or otherwise modified from time to time in accordance
with its or their terms.

 

     

     

    

 

		I.	“Maturity date” means 04/17/2022.

 

		J.	“Monthly Payment Date(s)” means the First Payment Date and continuing on the same day
of each month thereafter until and including the Maturity Date.

 

		K.	“Note” means this promissory note.

 

		L.	“Parties” mans Borrower and Lender, and their permitted successor and assigns.

 

		M.	“Paycheck Protection Program” means Sections 1102 and 1106 of the CARES Act, as well
as any related sections of such statute, and any regulations promulgated thereunder or requirements of the SBA, as any such may
be further amended.

 

		N.	“Person” means any individual, corporation, limited liability company, trust, joint
venture, association, company, limited or general partnership, unincorporated organization, governmental authority, or other entity.

 

		O.	“SBA” means the Small Business Administration.

 

		3.	PAYMENT TERMS: Borrower must make all payments at the place Lender designates. The payment
terms of this Note are:

 

Payment of Interest and Principal:

 

		A.	Interest. Except as otherwise provided in this Note, the outstanding Loan Amount shall accrue interest
at an annual rate equal to the Interest Rate from the date of this Note until paid in full, whether at maturity, by prepayment
or otherwise.

 

		B.	Principal and Interest Payments. Commencing one month after the expiration of the Deferral Period,
and continuing on the same day of each month thereafter until the Maturity Date, Borrower shall pay to Lender monthly payments
of principal and interest, each in such equal amount required to fully amortize the principal amount outstanding on the Note on
the last day of the Deferral Period by the Maturity Date.

 

		C.	Final Payment. A final payment in the aggregate amount of the then outstanding and unpaid Loan
Amount, together with all accrued and unpaid interest thereon, shall become immediately due and payable in full on the Maturity
Date.

 

		D.	Interest after Maturity Date. Interest shall continue to accrue at the Interest Rate on all amounts
unpaid at the Maturity Date.

 

		E.	Computation of Interest. All computations of interest shall be made on the basis of the actual
number of days elapsed in a year of 365 days. Interest shall begin to accrue on the Loan Amount on the date of this Note, and shall
not accrue on the Loan Amount on the day on which it is paid.

 

		F.	Permitted Prepayment. Borrower shall have the right to prepay all or any portion of the principal
balance of the Loan then outstanding under this Note, together with all accrued and unpaid interest thereon, at any time without
penalty or fee and without notice to Lender.

 

     

     

    

 

Payment:

 

		A.	Manner of Payment. All payments of interest, principal and all other sums due hereunder shall be
made in lawful money of the United States of America on the date on which such payment is due by check or wire transfer of immediately
available funds to Lender.

 

		B.	Application of Payments. Payments shall be allocated first to pay interest accrued to the date
the Lender receives the payment and then to reduce principal. Notwithstanding, in the event the Loan, or any portion thereof, is
forgiven pursuant to the Paycheck Protection Program under the federal CARES Act, the amount so forgiven shall be applied to principal.

 

		C.	Business Day Convention. Whenever any payment to be made hereunder shall be due on a day that is
not a business day, such payment shall be made on the next succeeding business day and such extension shall not be taken into account
in calculating the amount of interest payable under this Note.

 

Non-Recourse: Lender and
SBA shall have no recourse against any individual shareholder, member or partner of Borrower for non-payment of the loan, except
to the extent that such shareholder, member or partner uses the loan proceeds for an unauthorized purpose.

 

Forgiveness: The loan
evidenced by this Note is being made to Borrower under the Paycheck Protection Program administered by the SBA. Under the Paycheck
Protection Program, Borrower may apply to Lender for forgiveness of the amount due on this loan in an amount equal to the sum of
the following costs incurred by Borrower during the 8-week period beginning on the date of first disbursement on this loan: (a)
payroll costs, (b) any payment of interest on a covered obligation (which shall not include any prepayment of or payment of principal
on a covered mortgage obligation), (c) any payment on a covered rent obligation, and (d) any covered utility payment. The amount
of loan forgiveness shall be calculated (and may be reduced) in accordance with the requirements of the Paycheck Protection Program,
including the provisions of Section 1106 of the CARES Act. Not more than 25% of the amount forgiven can be attributable to non-payroll
costs. However, Borrower will remain liable for the full and punctual payment and satisfaction of the remaining outstanding principal
balance of the loan plus accrued but unpaid interest, except with respect to any such portion of the Note that has been forgiven.
Borrower acknowledges that Lender makes no representation or warranty as to: (i) Borrower's ability to receive forgiveness for
any portion of the Note under applicable law or the Paycheck Protection Program, or the amount of any such forgiveness; (ii) the
documentation required for any forgiveness; or (iii) the tax consequences, federal, state or otherwise, if any, associated with
the forgiveness of any portion of the Note. Lender will have no liability to Borrower with respect to any determination made by
Lender or SBA with respect to the amount of loan forgiveness, if any, to which Borrower may be entitled under the Paycheck Protection
Program. The amount of loan forgiveness, if any, will be applied in the same manner as all other payments under this Note, and
Lender will recalculate the fixed payments due under this Note after loan forgiveness, if any, based on a new amortization schedule
and provide Borrower with notice of such revised payment amount.

 

	4.	DEFAULT:

 

Borrower is in default under
this Note if Borrower does not make a payment when due under this Note, or if Borrower or Operating Company:

 

     

     

    

 

		A.	Fails to do anything required by this Note and other Loan Documents;

 

		B.	Defaults on any other loan with Lender;

 

		C.	Does not disclose, or anyone acting on their behalf does not disclose, any material fact to Lender
or SBA;

 

		D.	Makes, or anyone acting on their behalf makes, a materially false or misleading representation
to Lender or SBA;

 

		E.	Defaults on any loan or agreement with another creditor, if Lender believes the default may materially
affect Borrower's ability to pay this Note;

 

		F.	Fails to pay any taxes when due;

 

		G.	Becomes the subject of proceeding under any bankruptcy or insolvency law;

 

		H.	Has a receiver or liquidator appointed for any part of their business or property;

 

		I.	Makes an assignment for the benefit of creditors;

 

		J.	Has any adverse change in financial condition or business operation that Lender believes may materially
affect Borrower's ability to pay this Note;

 

		K.	Reorganizes, merges, consolidates, or otherwise changes ownership or business structure without
Lender's prior written consent;

 

		L.	Becomes the subject of a civil or criminal action that Lender believes may materially affect Borrower's
ability to pay this Note; or

 

		M.	Is determined, for any reason, by either Lender or SBA, not to be eligible to obtain this Loan
under the Paycheck Protection Program or if Borrower otherwise violates any term or requirement of the Paycheck Protection Program.

 

	5.	LENDER’S RIGHTS IF THERE IS A DEFAULT:

 

Without notice or demand and
without giving up any of its rights, Lender may:

 

		A.	Require immediate payment of all amounts under this Note;

 

		B.	Collect all amounts owing from any Borrower; or

 

		C.	File suit and obtain judgment.

 

		6.	LENDER’S GENERAL POWERS: Without notice and without Borrower’s consent, Lender
may:

 

		A.	Incur
                                         expenses to collect amounts due under this Note or to enforce the terms of this Note
                                         or any other Loan Document. Among other things, the expenses may include reasonable attorney’s
                                         fees and costs. If Lender incurs such expenses, it may demand immediate repayment from
                                         Borrower or add the expenses to the principal balance;

 

     

     

    

 

		B.	Release anyone obligated to pay this Note; and

 

		C.	Take any action necessary to collect amounts owing on this Note.

 

	7.	GOVERNING LAW; WHEN FEDERAL LAW APPLIES:

 

This Note and any claim, controversy,
dispute or cause of action (whether in contract, equity, tort, or otherwise) based upon, arising out of or relating to this Note
and the transactions contemplated hereby shall be governed by the laws of the State of Texas. Notwithstanding the foregoing, when
SBA is the holder, this Note will be interpreted and enforced under federal law, including SBA regulations. Lender or SBA may use
state or local procedures for filing papers, recording documents, giving notices, foreclosing liens, and other purposes. By using
such procedures, SBA does not waive any federal immunity form state or local control, penalty, tax, or liability. As to this Note,
Borrower may not claim or assert against SBA any local or state law to deny any obligation, defeat any claim of SBA, or preempt
federal law.

 

	8.	SUCCESSORS AND ASSIGNS: Under this Note, Borrower and Operating Company include the successors
of each, and Lender includes its successors and assigns.

 

	9.	GENERAL PROVISIONS:

 

		A.	All individuals and entities signing this Note are jointly and severally liable.

 

		B.	Borrower waives all suretyship defenses.

 

		C.	Borrower must sign all documents necessary at any time to comply with the Loan.

 

		D.	Lender may exercise any of its rights separately or together, as many times and in any order it
chooses. Lender may delay or forego enforcing any of its rights without giving up any of them.

 

		E.	Borrower may not use an oral statement of Lender or SBA to contradict or alter the written terms
of this Note.

 

		F.	In any part of this Note is unenforceable, all other parts remain in effect.

 

		G.	To the extent allowed by law, Borrower waives all demands and notices in connection with this Note,
including presentment, demand, protest, and notice of dishonor.

 

		H.	Borrower agrees to fully cooperate in the correction, if necessary, in the reasonable discretion
of Lender, of any and all loan closing documents so that all documents accurately describe the Loan. Borrower further agrees to
execute any additional documents that Lender may from time to time deem to be required by the SBA or the regulations implementing
the CARES Act, including, without limitation, any note or similar instrument required to substitute and replace this Note. To the
extent that any provision of this Note is in contravention of the CARES Act, this Note will be modified without further action
by Lender or Borrower such that it complies with the CARES Act.

 

     

     

    

 

		I.	The words “execution,” “signed,” “signature,” and words of
similar import in the Note will be deemed to include electronic or digital signatures or the keeping of records in electronic form,
each of which will be of the same effect, validity and enforceability as manually executed signatures or a paper-based record-keeping
system, as the case may be, to the extent and as provided for under applicable law, including the Electronic Signatures in Global
and National Commerce Act of 2000 (15 U.S.C.A. § 7001 et seq.).

 

		J.	If Borrower is an entity, Borrower is currently existing, in good standing and duly organized under
the laws of the state of its organization, and has the power to own its property and to carry on its business in each jurisdiction
in which it operates.

 

		K.	Borrower has full power and authority to enter into this Note, to execute and deliver this Note
and to incur the obligations provided for herein. No consent or approval of shareholders, members, or partners, or of any public
authority, is required as a condition to the validity of this Note.

 

		L.	This Note constitutes the valid and legally binding obligation of the Borrower, enforceable in
accordance with its stated terms.

 

		M.	Since the date of Borrower's application (SBA Form 2483), there has been no change in the ownership
of Borrower. Borrower hereby reaffirms the CARES Act certifications made in Borrower's application.

 

		N.	Borrower has provided to Lender all corporate documents of Borrower, including all organizational
documents and all required resolutions and other documents authorizing the Loan.

 

		O.	Any tax documents provided to Lender are identical to those submitted to the Internal Revenue Service.

 

		P.	Borrower has not and is not using an “agent” that would be entitled to fees in accordance
with the CARES Act.

 

	10.	STATE SPECIFIC PROVISIONS:

 

The following notice is provided
pursuant to Section 26.02 of the Texas Business and Commerce Code, which provides that certain “loan agreements” must
be in writing to be enforceable. As used in this notice, the term “Loan Agreement” means the Loan Documents and any
other promises, promissory notes, agreements, undertakings, or other documents, commitments, or any combination of these actions
or documents, executed in connection with the Loan to Borrower from Lender.

 

NOTICE

 

THIS WRITTEN LOAN AGREEMENT
REPRESENTS THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT
ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN OR ORAL AGREEMENTS BETWEEN THE PARTIES.

 

     

     

    

 

This notice shall be deemed to
be a part of each document which is executed by any Borrower and which comprises a part of this Note. The Borrower acknowledges
receipt of a copy of this notice and agrees that all documents comprising the Loan Agreement are subject to the provisions of Section
26.02 of the Texas Business and Commerce Code.

 

	11.	BORROWER’S NAME(S) AND SIGNATURE(S):

 

By signing below, each individual
or entity becomes obligated under this Note as Borrower. Borrower has executed this Note as of the date set forth on the first
page of this Note and acknowledges that prior to signing the Borrower has read and understood all the provisions of this Note and
agrees to be bound by its terms. The Borrower also acknowledges receipt of a complete copy of this Note.

 

	 	BORROWER:
	 	 
	 	RETRACTABLE TECHNOLOGIES, INC.
	 	 
	 	By:	/s/ Thomas J. Shaw
	 	 	Thomas J. Shaw
	 	 	CEO/President

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