ITEM 1.01. ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT

On November 17, 2008, Sutron Corporation entered into a 10 year lease agreement with the FP Sterling Park II, LLC (the "FP Sterling Park Lease"), a Virginia Limited Liability Company, for 27,817 square feet of office/warehouse space located at 22400 Davis Drive, Sterling, Virginia 20164. Base rent during year one of the initial term is $361,621 per annum and is subject to annual escalations up to a base rent of $452,026.25 during the final year of the 10-year term. The total base rent payments over the 10-year period of $4,052,658.73 are exclusive of our share of operating expenses and real estate taxes under the triple-net lease. The lease will expire at 11:59 p.m. on May 31, 2019. We anticipate moving into the new space in May 2009.

We currently lease space at two other locations in Sterling, Virginia that total 23,744 square feet. The leases for these spaces expire March 31, 2009. However, we anticipate leasing our current space on a month-to-month basis until the move is completed.

The foregoing description of the FP Sterling Park Lease does not purport to be complete and is qualified in its entirety by reference to the FP Sterling Park Lease that is included as Exhibit 10.1 to this Current Report on Form 8-K and incorporated herein by reference.

ITEM 2.03. CREATION OF A DIRECT FINANCIAL OBLIGATION OR AN OBLIGATION UNDER AN OFF-BALANCE SHEET ARRANGEMENT OF A REGISTRANT.

See Item 1.01 for a description of the FP Sterling Park Lease.

ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS.

(c) Exhibits

Exhibit 10.1 - Lease Agreement between FP Sterling Park II, LLC, as Landlord, and Sutron Corporation, as Tenant