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Exhibit 10.2    
  

      Agreement  

    This agreement was entered into effective December 31, 1999 between David W. Case and Schmitt Industries, Inc. 

    As
David Case was issued 192,500 common stock shares of Schmitt Industries Common Stock on January 5, 1999 by way of an exercise of an existing Non-qualified Stock
Option and, 

    David
W. Case provided to Schmitt Industries, Inc. at that time a note for $282,975 due January 5, 2001 and, 

    The
note received from David W. Case was secured by the shares issued as a result of the exercise of the Non-qualified Stock Options and, 

    Schmitt
Industries, Inc. holds the certificate evidencing those shares until the note agreement is paid in full. 

    Now
the parties wish to terminate the transaction, Case wishes to return the shares to Schmitt and Schmitt will cancel and return the note to Case upon receipt of the Shares. 

    The
Company will cancel the shares and it is agreed the option rights of Case have lapsed. 

	

	
 	

	
 	

 	
 	

	 	 	David W. Case	 	 	 	Robert C. Thompson, CFO/Treasurer

Schmitt Industries, Inc.

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Exhibit 10.3    
  

      Agreement  

    This agreement was entered into effective December 1, 2000 between Wayne A. Case and Schmitt Industries, Inc. 

    As
Wayne Case was issued 293,250 common stock shares of Schmitt Industries Common Stock on December 16, 1998 by way of an exercise of an existing Non-qualified
Stock Option and, 

    Wayne
A. Case provided to Schmitt Industries, Inc. at that time a note for $586,500 due December 16, 2000 and, 

    The
note received from Wayne A. Case was secured by the shares issued as a result of the exercise of the Non-qualified Stock Options and, 

    Schmitt
Industries, Inc. holds the certificate evidencing those shares until the note agreement is paid in full. 

    Now
the parties wish to terminate the transaction, Case wishes to return the shares to Schmitt and Schmitt will cancel and return the note to Case upon receipt of the Shares. 

    The
Company will cancel the shares and it is agreed the option rights of Case have lapsed. 

	

	
 	

	
 	

 	
 	

	 	 	Wayne A. Case	 	 	 	Robert C. Thompson, CFO/Treasurer

Schmitt Industries, Inc.

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Exhibit 10.3Prepared by MERRILL CORPORATION www.edgaradvantage.com

   Exhibit 10.4

STOCK PURCHASE AGREEMENT  

    THIS STOCK PURCHASE AGREEMENT (the "Agreement") dated December 31, 2000, is by and between Schmitt Industries, Inc. ("Buyer") and Hortex Anstalt
("Seller"). 

    Seller
owns beneficially and of record 400,000 shares of Common Stock of the Buyer (the "Shares"). Seller desires to sell the Shares to Buyer on the terms and subject to the
conditions set forth herein, and Buyer desires to purchase the Shares on such terms and conditions. 

SECTION 1. PURCHASE OF SHARES  

    1.1 Purchase of Shares. Subject to the terms and conditions set forth herein, at the Closing (as defined below) Seller
will sell all of the Shares to Buyer and Buyer will purchase all of the Shares from Seller. 

    1.2 Purchase Price. Buyer will pay to Seller for the Shares a total of $472,000 (the "Purchase Price") based on a price
of $1.18 per share (the average closing price of a share of Buyer's Common Stock as quoted on Nasdaq-National Market for the last five trading days of December 2000). 

    1.3 Payment of Purchase Price. The Purchase Price will be paid to Seller as follows: 

    (1) A
cash amount of $94,400 shall be paid by Buyer to Seller at Closing; and 

    (2) A
promissory note in the form of Exhibit A shall be delivered by Buyer to Seller at Closing (the "Note"). 

SECTION 2. REPRESENTATIONS AND WARRANTIES OF SELLER  

    As a material inducement to Buyer to enter into this Agreement and purchase the Shares, Seller represents and warrants that: 

    2.1 Title. Seller has, and upon purchase thereof by Buyer pursuant to the terms of this Agreement Buyer will have, good
and marketable title to the Shares, free and clear of all security interests, liens, encumbrances, or other restrictions or claims, subject only to restrictions as to marketability imposed by
securities laws. 

    2.2 Authorization. The execution, delivery, and performance by Seller of this Agreement and the Blank Stock Power (as
defined below) have been duly authorized by Seller. 

SECTION 3. REPRESENTATIONS AND WARRANTIES OF BUYER  

    As a material inducement to Seller to enter into this Agreement and sell the Shares, Buyer hereby represents and warrants to Seller as follows: 

    3.1 Authorization. The execution, delivery, and performance by Buyer of this Agreement and the Note have been duly and
validly authorized by Buyer. 

SECTION 4. CLOSING  

    4.1 Time and Manner of Closing. The closing (the "Closing") of this transaction will be held on December 31,
2000. At the Closing, Seller shall deliver to Buyer the certificate(s) evidencing the Shares, together with a duly executed Blank Stock Power in the form of Exhibit B, and Buyer shall deliver
to
Seller the cash amount referred to in Section 1.3, in a manner to be agreed upon by the parties, and the duly executed Note. 

Page 1

 

SECTION 5. MISCELLANEOUS PROVISIONS  

    5.1 Amendment and Modification. This Agreement may be amended, modified, or supplemented only by a written agreement
signed by Buyer and Seller. 

    5.2 Governing Law. All matters with respect to this Agreement, including but not limited to matters of validity,
construction, effect, and performance, will be governed by the laws of the state of Oregon. 

    5.3 Counterparts. This Agreement may be executed in two or more fully or partially executed counterparts, each of which
will be deemed an original binding the signer thereof against the other signing parties, but all counterparts together will constitute one and the same instrument. 

    5.4 Entire Agreement. This Agreement and any other document to be furnished pursuant to the provisions hereof embody the
entire agreement and understanding of the parties hereto as to the subject matter contained herein. 

    IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of the day and year first above written. 

	 	 	HORTEX ANSTALT
	

 	
 	

By:	
 	

	

 	
 	
SCHMITT INDUSTRIES, INC.
	

 	
 	

By:	
 	

 Wayne A. Case, President

Page 2

 
EXHIBIT A

PROMISSORY NOTE  

	$377,600	 	Portland, Oregon
	 	 	December 31, 2000

    FOR
VALUE RECEIVED, the undersigned promises to pay in lawful money of the United States to the order of Hortex Anstalt the principal sum of $377,600 (three hundred seventy-seven
thousand six hundred dollars) to be paid on or before December 31, 2002. The unpaid balance of the principal amount shall bear interest at the rate of 9% per annum from the date of this note
until fully paid. Accrued interest on the unpaid principal shall be paid on or before March 31, June 30, September 30 and December 31, 2001 and March 31,
June 30, September 30 and December 31, 2002. Principal in the amount of $25,000 shall also be paid on each such date except December 31, 2002 at which time all unpaid
principal shall be paid. 

    This
note may be prepaid, in whole or in part, without penalty. 

    If
any payment due pursuant to this note is not made when due, then at the option of the holder of this note the entire indebtedness represented by this note, upon 10 days'
written notice to the undersigned, shall immediately become due and payable and thereafter shall bear interest at the rate of 9% per annum. Failure or delay of the holder to exercise this option shall
not constitute a waiver of the right to exercise the option in the event of subsequent default or in the event of continuance of any existing default after demand for the performance of the terms of
this note. 

    The
undersigned shall pay upon demand any and all expenses, including reasonable attorney fees, incurred or paid by the holder of this note without suit or action in attempting to
collect funds due under this note. If an action is instituted for the collection of this note, the prevailing party shall be entitled to recover, at trial or on appeal, such sums as the court may
adjudge reasonable as attorney fees, in addition to costs and necessary disbursements. 

    The
undersigned and its successors and assigns hereby waive presentment for payment, notice of dishonor, protest, notice of protest, and diligence in collection, and consent that the
time of payment on any part of this note may be extended by the holder without otherwise modifying, altering, releasing, affecting, or limiting their liability. 

	 	 	SCHMITT INDUSTRIES, INC.
	

 	
 	
By:	
 	

 Wayne A. Case,

President

Page 3<PAGE>

                                  EXHIBIT 10.01

                              FORBEARANCE AGREEMENT

                                      23

<PAGE>

                                                           CREDIT ADMINISTRATION
                                                           3800 Howard Hughes
                                                           Parkway
WELLS                                                      54733-034 MAC
FARGO                     FORBEARANCE AGREEMENT            Las Vegas, NV 89109

         This FORBEARANCE AGREEMENT, is entered into as of the __9__ day of
April, 2001, between Paul-Son Gaming Supplies, a Nevada corporation ("Borrower")
and Wells Fargo Bank Nevada, N.A., successor-in-interest to Norwest Bank Nevada,
N.A. (hereinafter collectively referred to as "Lender").

                                   WITNESSETH

         A.       On or about November 14, 1997, Lender extended to Borrower a
loan (Loan No. 5965582834-18) in the original principal amount of One Million
Eight Hundred Thousand and No/100 Dollars ($1,800,000.00) ("Credit Facility 1").
Credit Facility 1 is evidenced by a Promissory Note dated November 14, 1997 in
the original principal amount of One Million Eight Hundred Thousand And No/100
Dollars ($1,800,000.00) ("Note 1"), and is secured, in part, by a Deed of Trust
dated November 14, 1997, and recorded on November 20, 1997 as Instrument No.
00156 in Book 971120 of the official records of the County Recorder of Clark
County, Nevada. Note 1 is also secured, in part, by that certain Continuing
Security Agreement dated November 14, 1997, executed by Borrower in favor of
Bank ("Security Agreement").

         B.       On or about or October 23, 1998, a second loan (Loan No.
5965582834-26) was extended to Borrower in the original principal amount of Five
Hundred Thousand and No/100 Dollars ($500,000.00) ("Credit Facility 2"). Credit
Facility 2 is evidenced by a Promissory Note dated October 23, 1998 in the
original principal amount of Five Hundred Thousand and No/100 Dollars
($500,000.00) ("Note 2"), and is secured, in part, by a Deed of Trust dated
October 23, 1998, and recorded in the Clark County Recorder's office on November
4, 1998 as Instrument No. 103 in Book No. 981104.

         C.       The terms of the loans evidenced by Notes 1 and 2 are further
governed by various documents, including, but not limited to, that certain
Letter Loan Agreement dated November 14, 1997 (the "Loan Agreement"), as amended
and a forebearance agreement dated June 2000. The Notes, the referenced Deeds of
Trusts, the Loan Agreement, and the Continuing Security Agreement, and the other
documents executed in connection therewith are collectively referred to
hereinafter as the "Loan Documents."

         D.       As of April 9, 2001, there was outstanding under Credit
Facility 1 the principal amount of $345,670.68. Interest at the non-default rate
stated in Note 1 has accrued and remains unpaid as of April 9, 2001 in the
amount of $3,071.22.

         E.       As of April 9, 2001, there was outstanding under Credit
Facility 2 the principal amount of $97,222.19. Interest at the non-default rate
stated in Note 2 has accrued and remains unpaid as of April 9, 2001 in the
amount of $433.06.

         F.       As of the end of Borrower's fiscal year on May 31, 2000,
Borrower is in

<PAGE>

default under the terms of the Loan Documents as Borrower is in violation of
certain financial covenants (specifically the "profitability covenant") set
forth in the Loan Agreement.

         G.       Notwithstanding that Borrower is in default under the Loan
Documents, Borrower has requested that Lender forbear from enforcing its rights
under the terms of the Loan Documents for a period of time, and Lender has
agreed to forbear from exercising such rights according to the terms and
conditions of this Agreement.

         NOW, THEREFORE, in consideration of the foregoing, and for other good
and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the parties agree as follows:

         1.       The parties agree and acknowledge that under the terms of the
Loan Documents governing Credit Facility 1 that there is presently due and owing
the outstanding principal amount of $345,670.68, plus accrued and unpaid
interest at the non-default rate stated in the Note as of April 9, 2001 in the
amount of $3,071.22. The parties further agree that there are no offsets or
defenses to the terms of the Note 1 or the other Loan Documents with respect to
the foregoing amounts owing under Credit Facility 1.

         2.       The parties agree and acknowledge that under the terms of the
Loan Documents governing Credit Facility 2 that there is presently due and owing
the outstanding principal amount of $97,222.19, plus accrued and unpaid interest
at the non-default rate stated in the Note as of April 9, 2001 in the amount of
$433.06. The parties further agree that there are no offsets or defenses to the
terms of the Note 2 or the other Loan Documents with respect to the foregoing
amounts owing under Credit Facility 2.

         3.       IN ADDITION TO THE AMOUNTS REQUIRED TO BE PAID TO LENDER UNDER
THE TERMS OF NOTES 1 AND 2 (AND THE REMAINING LOAN DOCUMENTS), beginning on
April 15, 2001 and continuing on or before the fifteenth (15th) day of each
succeeding month Borrower shall pay to Lender the amount of Fifty Thousand and
No/100 Dollars ($50,000) to be applied to reduce the outstanding principal
balance of Credit Facility 1 until the earlier of the "Maturity Date" of Note 1
or the date that all amounts owing under Note 1 have been paid in full.

         4.       Provided that Borrower makes all payments set forth in No. 3
above, and performs all of the remaining obligations set forth in the Loan
Documents, Lender will forbear through the "Maturity Date(s)" of Notes 1 and 2
from enforcing its rights under the terms of the Loan Documents relating to all
the financial covenants. In the event that all of the obligations set forth
herein (and in the Loan Documents, unless limited hereby) are not timely
performed by Borrower, Lender may immediately enforce all of its rights and
remedies under the Loan Documents. Borrower and Lender agree that time is of the
essence with respect to all of the obligations of Borrower arising hereunder and
under the Loan Documents.

         5.       Borrower does fully release, acquit and forever discharge
Lender, its parent and affiliated corporations, and all of its officers,
directors, shareholders, agents,

<PAGE>

employees, insurers, successors, and assigns (all of the foregoing being
hereinafter included within the term "Lender"), of and from all known and
unknown claims, actions, causes of action and suits for damages, at law or in
equity, including loss of compensation, or ANY other claims of any kind or
nature relating to the Notes 1 and 2, the Loan Agreement or any of the other
Loan Documents and accruing in favor of Borrower (if any) prior to the date of
the execution of this Agreement.

         6.       Borrower and Lender hereby confirm and agree that present or
future rights, remedies, benefits or powers belonging to Lender, whether arising
under Notes 1 or 2, the Loan Agreement or under any other Loan Document, shall
not be affected, prejudiced or restricted by this Agreement, unless specifically
set forth herein.

         7.       The provisions hereof shall be binding upon and inure to the
benefit of the parties hereto and their respective heirs, executors,
administrators, successors and assigns.

         8.       The laws of the State of Nevada shall govern the validity,
construction, performance and effect of this Agreement.

         9.       This Agreement may be executed in counterparts, all of which
when considered together shall constitute an original document.

         IN WITNESS WHEREOF, the parties have signed this Agreement as of the
date first above written.

BORROWER:                              LENDER:

Paul-Son Gaming Supplies,              Wells Fargo Bank Nevada, N.A.
a Nevada corporation

By:  /s/ Eric P. Endy                  By:  /s/ Daron Thom
     ---------------------------            -----------------------------------
     Eric P. Endy                           Daron Thom
Its: President                         Its: Assistant Vice President

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