Item 5.02 Departure of Directors or Principal Officers; Election of Directors;
Appointment of Principal Officers; Compensatory Arrangements of Certain Officers.

Management of Schmitt Industries, Inc. announced that it will implement a temporary pay reduction program for its executive management, beginning March 1, 2009. Each of our executive officers' salaries will be reduced by approximately 19%. We anticipate this pay cut will remain in effect until the company improves its operating performance.

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