Note 12 - Related Party Transactions

12 Months Ended

Dec. 31, 2017

12 .	Related Party Transactions

Stephen M. Merrick

Chief Executive Officer of the Company,

is of counsel to a law firm from which the Company received legal services during the year. Mr. Merrick is both a director and a shareholder of the Company. Legal fees paid to this firm were

$154,000

and

$188,000

for the years ended

December 31, 2017

and

2016,

respectively.

John H. Schwan,

Chairman of the Board, is the brother of Gary Schwan,

one

of the owners of Schwan Incorporated, which provides building maintenance and remodeling services to the Company. The Company made payments to Schwan Incorporated of approximately

$19,000

and

$15,000

during the years ended

December 31, 2017

and

2016,

respectively.

During the period from

January 2003

to the present, John H. Schwan,

Chairman of the Board, has made loans to the Company which have outstanding balances, for the Company of

$1,507,000

and

$1,416,000

as of

December 31, 2017

and

2016,

respectively. During

2017

and

2016,

interest expense on these outstanding loans was

$94,000

and

$93,000,

respectively.

During

2010,

Schwan Leasing and Merrick Company, owned by John H. Schwan and Stephen M. Merrick, provided financing for the acquisition and construction of latex balloon production and related equipment (see Note

Items identified as Notes Payable Affiliates in the Company's Consolidated Balan

ce Sheet as of

December 31, 2017

and

2016

include loans by shareholders to Flexo Universal totaling

$41,000

and

$47,000,

respectively, as well as a loan to CTI Europe totaling

$32,000

and

$27,000,

respectively.