THE SECURITIES REPRESENTED BY THIS CERTIFICATE MAY NOT BE OFFERED FOR SALE,
SOLD, OR OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT MADE UNDER THE SECURITIES ACT OF 1933 (THE "ACT"), OR PURSUANT TO AN
EXEMPTION FROM REGISTRATION UNDER THE ACT.
Void after 5:00 p.m., Dallas Time, on March 15, 2002
75,000 Warrants to Purchase 7,500 Shares of Series IV Class B Preferred Stock
WARRANT TO PURCHASE PREFERRED STOCK
RETRACTABLE TECHNOLOGIES, INC.
This Is To Certify That, FOR VALUE RECEIVED,
SOUTHWEST MERCHANT GROUP
or registered assignee ("Holder"), is entitled to purchase, subject to the provisions of this Warrant, from
RETRACTABLE TECHNOLOGIES, INC., a Texas corporation ("Company"), at any time on or after March
15, 2000, and not later than 5:00 p.m., Dallas Time, on March 15, 2002, Seven thousand five hundred (7,500)
shares of Series IV Class B Preferred Stock of the Company ("Preferred Stock") at a purchase price per share
of Ten Dollars ($10.00) (the "Exercise Price") plus 10 warrants for each share of stock purchased. The number
of shares of Preferred Stock to be received upon the exercise of this Warrant and the price to be paid for a share
of Preferred Stock may be adjusted from time to time as hereinafter set forth. This Warrant is for the purchase in
the aggregate of Seven thousand five hundred (7,500) shares of Preferred Stock of the Company, and the terms
"Warrant" or "Warrants" as used herein means this Warrant and any new Warrant(s) to be issued herein.
(a) Exercise of Warrant. Subject to the provisions hereof, this Warrant may be exercised in whole or in part at
any time or from time to time on or after March 15, 2000, but not later than 5:00 p.m., Dallas Time, on March
15, 2002, by presentation and surrender hereof to the Company or at the office of its stock transfer-agent, if any,
with the Purchase Form annexed hereto, duly executed, and accompanied by payment of the Exercise Price for
the number of shares specified