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

On April 20, 2009 WSI Industries, Inc. (the "Company") amended its loan agreement (the "Amendment") with the City of Monticello Economic Development Authority (the "EDA") under which the Company extended the term of its original loan agreement for two years. Under the Amendment, the term of the original loan agreement will be extended until May 3, 2011 at which time the loan will be due in full. The Company will continue to make monthly payments to the EDA at an interest rate of 2% with a 25 year amortization schedule. The EDA's loan to the Company under the Amendment is evidenced by an Amended Promissory Note dated April 20, 2009, which is attached hereto as Exhibit 10.2 (the "Note"). The Company's obligations under the Note and the Amendment are secured by a security interest in favor of the EDA in the Company's property located at 213 Chelsea Road, Monticello, Minnesota as described in the Amendment dated April 20, 2009.

The summaries of the Amendment and the Note do not purport to be complete and are subject to and qualified in their entirety by reference to each such document, which are included as Exhibits 10.1 through 10.2 of Item 9.01 to this Form 8-K and are incorporated by reference into these Items 1.01 and 2.03.

Item 9.01 Financial Statements And Exhibits.

Exhibit No. Description 10.1 First Amendment to Loan Agreement dated April 20, 2009 by and between WSI Industries, Inc. and the City of Monticello Economic Development Authority. 10.2 Amended Promissory Note dated April 20, 2009 issued by WSI Industries, Inc. to the City of Monticello Economic Development Authority in the maximum principal amount of $350,000.

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