COVENANT NOT TO SUE
THIS AGREEMENT is made this 19th day of September, 2001 between Thomas J. Shaw (“Shaw”), in his individual
capacity, and Retractable Technologies, Inc. (“RTI”), a Texas corporation located at 511 Lobo Lane, Little Elm, Texas.
WHEREAS, Shaw is a licensor of certain retractable needle technology at issue in the suit entitled, RTI v. Becton
Dickinson & Co., et al. , Cause No. 5:01CV036, pending in the United States District Court for the Eastern District of Texas,
Texarkana Division (“the Lawsuit “);
AND WHEREAS RTI is prosecuting claims for damages in the Lawsuit that are the same or similar to claims that Shaw
could raise in his own capacity as a plaintiff or intervener in the Lawsuit;
AND WHEREAS RTI’s counsel in the Lawsuit has advised that it would be the best litigation strategy for RTI for Shaw to
forgo his individual opportunity to pursue claims in his own capacity as a plaintiff or intervener in the Lawsuit;
IT IS THEREFORE AGREED that RTI will make its best efforts to fully prosecute its claims for lost revenues in the Lawsuit.
Upon payment of a settlement or judgment obtained in the Lawsuit, RTI will pay to Shaw an amount equal to five percent (5%)
of the recovery obtained by RTI after payment of the court costs, litigation expenses and attorney’s fees. Shaw’s percentage
herein will be calculated in the same manner as the contingent attorney’s fees are calculated in the Contingent Fee Contract
between RTI and John O’Quinn, P.C. In consideration of RTI’s payment herein, and the conditions set forth below, Shaw agrees
not to join the Lawsuit as a plaintiff or intervener. Shaw further agrees not to institute or commence any action in law or equity
for lost revenue or royalties as a consequence of the transaction or occurrence described in the Lawsuit.
IT IS FURTHER AGREED that if RTI should drop or lose the Lawsuit, this Covenant will be null and void, and Shaw will
have the right to pursue any claims against the parties in