Item 2.03    Creation of a Direct Financial Obligation or an Obligation under an
             Off-Balance Sheet Arrangement of a Registrant

On May 11, 2020, Sharps Compliance, Inc. of Texas (a wholly-owned subsidiary of Sharps Compliance Corp., herein referred to as the "Company") executed a commercial lease agreement for a 52,014 square foot manufacturing and distribution facility located in Pittston, Pennsylvania (the "Lease Agreement") to support the Company's growth initiatives including the expansion of the treatment facility in Nesquehoning, Pennsylvania and the need to relocate and expand its existing Pennsylvania distribution facility.

The term of the Lease Agreement is sixty-two (62) months from the commencement date and includes one five (5) year renewal option. The Company estimates the commencement of the Lease Agreement should be approximately 105 days from the execution of the Lease Agreement.

Base rent payments upon commencement of the Lease Agreement are: • $0 for the first two (2) months;

• $24,919.29 per month for months three (3) through twelve (12); and




•      $25,397.67 per month thereafter, subject to a two percent (2%) annual
       escalation.

Should the Company exercise the five (5) year renewal option noted above, the base lease payment will increase at the rate of 2% annually.

In addition to the base rent, the Company is also responsible for its share of operating expenses that are estimated at $3,261.69 per month. The Property qualifies for the Local Economic Revitalization Tax Assistance Act ("LERTA"), which allows a ten (10) year property tax abatement.

There is no material relationship between the Company, or any of its affiliates, and the landlord, or any of its affiliates, other than the contractual relationship under the corresponding lease agreements.

The description of the above noted lease is qualified in its entirety by reference to the agreement filed as Exhibit 10.1 to this Form 8-K.

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