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<SEC-DOCUMENT>0001144204-10-023983.txt : 20100503
<SEC-HEADER>0001144204-10-023983.hdr.sgml : 20100503
<ACCEPTANCE-DATETIME>20100503163441
ACCESSION NUMBER:		0001144204-10-023983
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20100429
ITEM INFORMATION:		Entry into a Material Definitive Agreement
FILED AS OF DATE:		20100503
DATE AS OF CHANGE:		20100503

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			CTI INDUSTRIES CORP
		CENTRAL INDEX KEY:			0001042187
		STANDARD INDUSTRIAL CLASSIFICATION:	FABRICATED RUBBER PRODUCTS, NEC [3060]
		IRS NUMBER:				362848943
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-23115
		FILM NUMBER:		10793402

	BUSINESS ADDRESS:	
		STREET 1:		22160 N PEPPER RD
		CITY:			BARRINGTON
		STATE:			IL
		ZIP:			60010

	MAIL ADDRESS:	
		STREET 1:		22160 N PEPPER RD
		CITY:			BARRINGTON
		STATE:			IL
		ZIP:			60010
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
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<FILENAME>v183171_8k.htm
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STATES</font></div>
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AND EXCHANGE COMMISSION</font></div>
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D.C.&#160;&#160;20549</font></div>
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8-K</font></div>
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REPORT</font></div>
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to Section 13 or 15(d) of the Securities Exchange Act of 1934</font></div>
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Report (Date of earliest event reported): <font style="DISPLAY: inline; TEXT-DECORATION: underline">April 29,
2010&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
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CORPORATION</font></font></div>
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name of registrant as specified in its charter)</font></div><br></div>
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telephone number, including area code (<font style="DISPLAY: inline; TEXT-DECORATION: underline">847)
382-1000</font></font></div>
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appropriate box below if the Form 8-K is intended to simultaneously satisfy the
filing obligation of the registrant under any of the following
provisions:</font></div>
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communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)</font></div>
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material pursuant to Rule 14a-12 under the Exchange Act (17CFR
240.14a-12)</font></div>
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communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))</font></div>
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communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))</font></div>
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a Material Definitive Agreement</font></font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>On April 29, 2010, Registrant entered
into a Credit Agreement and associated documents with Harris N.A. (&#8220;Harris&#8221;)
under which Harris agreed to extend to Registrant a credit facility in the
aggregate amount of $14,417,000.&#160;&#160;The facility includes (i) a
Revolving Credit providing for maximum advances to Registrant, and letters of
credit,&#160;&#160;based upon the level of availability measured by the levels
of eligible receivables and inventory of Registrant of&#160;$9,000,000, (ii) an
Equipment Loan of up to $2,500,000 providing for loans for the purchase of
equipment, (iii) a Mortgage Loan of $2,333,350 and (iv) a Term Loan in the
amount of $583,333.&#160;&#160;The maturity date of the loans is April 29,
2013.</font></div>
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30, 2010, the loan transaction was closed and loan advances were made by Harris
in the aggregate amount of $11,964,739 to pay off all balances due under loan
and lease obligations of Registrant with Charter One Bank, N.A. and RBS Asset
Finance, Inc.</font></div>
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Credit Agreement includes various representations, warranties and covenants of
Registrant, including financial covenants covering the senior leverage ratio,
fixed charge coverage ratio and tangible net worth.</font></div>
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connection with the Credit Agreement, Registrant executed and delivered to
Harris, a Term Loan Note, a Mortgage Loan Note, an Equipment Note and a
Revolving Note, as well as a form of Mortgage, Security Agreement, Pledge
Agreement (pursuant to which shares of capital stock of the Registrant&#8217;s Mexico
subsidiary were pledged as security for the loans), Patent Security Agreement
and Trademark Security Agreement.&#160;&#160;Two officers and principal
shareholders of Registrant, John H. Schwan and Stephen M. Merrick (&#8220;Guarantors&#8221;)
each executed Limited Guaranties of the loans and also executed Subordination
Agreements with respect to obligations of Registrant to them.</font></div>
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Securities Exchange Act of 1934, the Registrant has duly caused this report to
be signed on its behalf by the undersigned hereunto duly
authorized.</font></div>
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              <td valign="top" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
              <td align="left" valign="top" width="35%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
              <td valign="top" width="12%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
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              <td align="left" valign="top" width="50%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
              <td valign="top" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
              <td align="left" valign="top" width="35%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
              <td valign="top" width="12%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Date:&#160;
      May 3,
      2010&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
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      Stephen M. Merrick</font></div>
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              </td>
              <td valign="top" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
              <td align="left" valign="top" width="35%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Stephen
      M. Merrick</font></div>
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              </td>
              <td valign="top" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
              <td align="justify" valign="top" width="35%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Chief
      Financial Officer</font></div>
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              <td valign="top" width="12%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
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