LEASE

Exhibit 10.1

LEASE

INITIAL 5-YEAR LEASE TERM

The Base Rent will be $18,800/month or $225,600 at $10.74/sq. ft./NN annual during the year 2008 through 2013. NN requires Micronetics to pay both property taxes and utilities.

5-YEAR EXTENDED TERMS

Landlord may elect to increase the rent for each Extended Term by providing written notice thereof at least one hundred twenty (120) days prior to the end of the then-current initial or extended term, as the case may be, provided that the annual rent for the First Extended Term will not

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exceed the amount equal to the annual Base Rent applicable during the initial five year term plus the amount (if any) that Landlord’s actual annual out of pocket maintenance and insurance expenses for the final year of the initial term exceeded $17,000. With respect to each additional option period, the parties will negotiate in good faith to agree on the annual rent for each additional extended term prior to the date by which Tenant must exercise its option to extend the term.

In addition to Base Rent, the Real Estate Tax Expense to be paid by Tenant pursuant to Section 6 of this Lease shall be deemed to be and shall become “Additional Rent”. Landlord shall have the same remedies for failure to pay the same as for a non-payment of Base Rent. (Base Rent and Additional Rent may hereinafter sometimes be collectively referred to as “Rent”). Tenant’s obligation to pay Rent during the Initial Lease Term, as provided hereunder, shall commence on December 1, 2008.

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Tenant is a manufacturing company and will comply with the New Jersey Economic Development Authority financing and cooperate with the Landlord to comply with the loan.

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Notwithstanding the preceding paragraph, Landlord warrants to Tenant that the Property as of the Commencement Date complies with all applicable covenants or restrictions of record and all applicable building codes, regulations and ordinances. To the extent that any building components or other materials not installed by Tenant are subsequently required to be removed or subject to remedial measures under applicable law, regulation or governmental authority, then the same shall be the responsibility of the Landlord. Conversely, to the extent that any building components or other materials installed by Tenant in the building are subsequently required to be moved or subject to remedial measures under applicable law, regulation or governmental authority. Then the same shall be the responsibility of the Tenant.

If the Premises should be totally or substantially destroyed by fire or other casualty, or if the Premises should be damaged so that rebuilding cannot be reasonably completed within ninety (90) working days after the date of written notification by Tenant to Landlord of the destruction, Landlord or Tenant shall have the option to terminate this Lease and the Rent shall be abated for the unexpired portion of the Lease, effective as of the date of the written notification. If the Premises should be partially damaged by fire or other casualty, and rebuilding or repairs can reasonably be completed within ninety (90) working days from the date of written notification by Tenant to Landlord of the destruction, this lease shall not terminate, and Landlord shall proceed with reasonable diligence to rebuild or repair the Building or other improvements so that the Premises are in substantially the same condition as they were immediately preceding the damage. If the Premises are to be rebuilt or repaired and are untenantable in whole or part following the damage, the Rent payable under this Lease during the period for which the Premises are untenantable shall be reduced or abated in the same proportion or percentage as the Premises are untenantable. In the event that Landlord fails to complete the necessary repairs or rebuilding within ninety (90) working days, from the date of written notification by Tenant to Landlord of the destruction, Tenant may at its option terminate this Lease by delivering written notice of termination to Landlord, whereupon all rights and obligations under this Lease shall cease to exist.

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Tenant shall pay to Landlord the real estate taxes assessed by Ewing Township attributable to the Premises (“Real Estate Tax Expense”) at cost in twelve (12) equal monthly installments, as Additional Rent. Landlord represents and warrants to Tenant that the Estimated Real Estate Tax Expense attributable to the Premises for calendar year 2008 is $33,000. The Tenant shall be responsible for a prorata amount during 2008 based upon the start of the lease term and the real estate tax period. Estimated tax amounts are subject to actual bills and Tenant shall be responsible for the actual taxes due; therefore, the amount will be adjusted accordingly. The Landlord shall pay to the taxing authority such real estate taxes during the discount period, if any, but certainly, before the accrual of any penalty or interest for which the Tenant shall not be responsible. If Tenant makes any improvements to the Property, which results in an increase in the amount of real estate taxes, then Tenant shall be liable for such increase resulting therefrom. Any decrease, abatement or moratorium on such taxes shall be passed onto Tenant. Further, Tenant may, at its own cost, oppose any such tax or any reassessment or increase in such taxes, so long as the Property is not liened on account thereof, and Landlord agrees to cooperate in any such proceeding.

Tenant shall pay for all water, gas, heat, light, power and telephone, trash disposal and other utilities and services supplied to the Premises directly.

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If the Premises or any portion thereof are taken under the power of eminent domain or sold under the threat of the exercise of said power (all of which are herein called “condemnation”), this Lease shall terminate as to the part so taken as of the date the condemning authority takes title or possession, whichever first occurs. If more than ten percent (10%) of the floor area of the Premises, or more than twenty-five percent (25%) of the land area not occupied by any building, or a portion of the Land which materially blocks access to the Premises, is taken by condemnation. Tenant may, at Tenant’s option, to be exercised in writing within thirty (30) days after Landlord shall have given Tenant written notice of such taking terminate this Lease as of the date the condemning authority takes such possession. If Tenant does not terminate this Lease in accordance with the foregoing, this Lease shall remain in full force and effect as to the portion of the Premises remaining, except that the Base Rent shall be reduced in the same proportion as the rentable floor area of the Premises taken bears to the total rentable floor area of the building located on the Premises. No reduction of Base Rent shall occur if the only portion of the Premises taken is land on which there is no building. Any award for the taking of all or any part of the Premises under the power of eminent domain or any payment made under threat of the exercise of such power shall be the property of Landlord, whether such award shall be made as compensation for diminution in value of the leasehold or for the taking of the fee, or as severance damages; provided, however, that Tenant shall be entitled to any compensation separately awarded to Tenant for the value of the loss of Tenant’s leasehold hereunder, Tenant’s relocation expenses and/or loss of Tenant’s trade fixtures. In the event that this Lease is not terminated by reason of such condemnation, Landlord shall repair any damage to the Premises caused by such condemnation.

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Either Party may, by written notice to the other, specify a different address for notice purposes.

No waiver by Landlord of the Default or Breach of any term, covenant or condition hereof by Tenant, shall be deemed a waiver of any other term, covenant or condition hereof, or of any subsequent Default or Breach by Tenant of the same or of any other term, covenant or condition hereof.

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Landlord and Landlord’s agents shall have the right to enter the Premises at any time, in the case of an emergency, and otherwise at reasonable times upon reasonable notice for the purpose of performing its obligations hereunder.

Tenant may, with Landlord’s prior written consent, which consent shall not be unreasonably withheld or delayed, install such signs as are reasonably required to advertise Tenant’s own business.

Except as otherwise provided herein, wherever in this Lease the consent of a Party is required to an act by or for the other Party, such consent shall not be unreasonably withheld or delayed.

In the event that Tenant shall hold over at the expiration or other termination of the Lease Term set forth in this Lease, or any Extended Term, then this Lease shall continue as a month-to-month lease subject to termination by either party upon ninety (90) days prior written notice to the other, which notice may be given prior to the expiration of the Lease Term then in effect. Such month-to-month tenancy shall be subject to all of the terms and conditions of this Lease, including the Base Rent, in effect during the final month of this Lease Term, or applicable Extended Term. However, after ninety (90) days prior written notice to Tenant, Tenant shall be liable for a Base Rent of the amount to be negotiated by both parties; together with all other Additional Rent and other charges provided for in the Lease. Tenant acknowledges

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that the rental value of the Leased Premises in the future is difficult to estimate and that the Base Rent needs to be reset after the 90 day period.

All rights and liabilities herein given to or imposed upon the respective Parties shall extend to and bind the several respective heirs, executors, administrators, successors and assigns of said Parties.

Landlord represents and warrants to Tenant that it has the right to lease the Premises on the terms and conditions herein set forth; and that Tenant may hold and enjoy the Premises for the term of this Lease so long as Tenant shall faithfully observe and perform all the covenants, terms and conditions imposed upon the Tenant hereunder.

This Lease and any exhibits attached hereto and forming a part hereof, set forth all of the covenants, promises, agreements, conditions and understandings between Landlord and Tenant concerning the Premises and there are no agreements or understandings, either oral or written, between them other than as herein set out. This Lease may not be amended or modified in any way without a written agreement signed by the Parties.

This Lease and the rights and obligations of the parties hereunder shall be construed in accordance with the internal laws of the State of New Jersey applicable to leases and to be performed in accordance with the internal laws in the State of New Jersey without regard to principles of conflict of law. Any action shall be brought in the Superior Court of New Jersey in Mercer County.

[Remainder of page intentionally left blank; Signature page follows.]

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Intending to be legally bound hereby, the Parties hereto have executed this Lease as of the date set forth above.

Final draft xx/xx/xxxx

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DESCRIPTION OF PREMISES

Exhibit A

BEGINNING at a point in the southwesterly line of Whitehead Road Extension (80 foot right of), said point being distant 863.23 feet measured southeastwardly from the southeasterly terminus of an arc having a radius of 150 feet and connecting the southeasterly line of Ewingville Road (70 foot right-of-way) and the aforesaid southwesterly line of Whitehead Road Extension and running, thence (1) southeasterly on an arc of having a radius of 3.235.86 feet and curving to the left a distance of 277.00 feet, said arc being connected by a chord 276.92 feet, bearing S 46º 44’ 41” E, along the aforesaid southwesterly line of Whitehead Road Extension to a point, thence (2) S 40º 48’ 10” W, on the aforesaid filed map to a point in the northeasterly line of lands now or formerly of David Lavine, et ux, thence, (3) N 55º 27’ W, 318.75 feet along the same and beyond, along the northeasterly line of lands now or formerly of Helen A. Haggerty and beyond along the northeasterly line of land now or formerly of William L. Hofmann, et ux and beyond, along the lands now or formerly of John J. Brown, Jr., et ux and beyond, along the northeasterly line of lands now or formerly of Arthur W. Hall, Sr., et ux to a point, thence (4) N 45º 42’ 27” E, 470.05 feet along the southeasterly line of lands now or formerly of Ewing Industrial Park Corp., to the point and place of BEGINNING.

BEING Lot 5 as shown on the plan of Section Three, Ewing Industrial Park, filed in the Mercer County Clerk’s Office on June 30, 1969 as Map No. 1995, 75 feet set back as shown on the filed plan.

BEING part of the same Premises, which were conveyed to Armored Motor Service Corporation by a deed, dated September 25, 1937 in Book 1950, page 72 in the Mercer County Clerk’s Office.

Said Premises are also known as Tax Map Section 105, Lot 33, page 12, Ewing Township, Mercer County, New Jersey.

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