EXHIBIT 10.20
                                    GUARANTY

TO:  Banco Popular North America
     4801 W. Fullerton Avenue
     Chicago, IL 60639

     To induce you to extend credit to CTI INDUSTRIES CORPORATION (hereinafter
called "Client") and in consideration of advances to be made to Client and of
any loans, advances or financial accommodation heretofore or hereafter granted
by you to or for the account of the Client, the undersigned Guarantor guarantees
the payment to you of all sums which may be presently due and owing and of all
sums which shall in the future become due and owing to you from the Client under
any Note, Real Estate Mortgage or Assignment of Rents and Leases executed by the
Client to you.

     This Guaranty shall not be impaired by any modification, supplement,
extension or amendment of any contract or agreement to which the parties thereto
may hereafter agree, nor by any modification, release or other alteration of any
of the obligations hereby guaranteed or of any security therefor, nor by any
agreements or arrangements whatever with the Client or any one else. In
addition, Guarantor shall be liable to you for reasonable attorneys' fees, if
any claim hereunder or under any other instrument or guaranty is referred to an
attorney for collection. The liability of Guarantor hereunder is direct and
unconditional and may be enforced without requiring you first to resort to any
other right, remedy or security. Guarantor shall not have any right of
subrogation, reimbursement or indemnity whatsoever, nor any right of recourse to
security for the debts and obligations of the Client to you. If there is more
than one Guarantor, the liability of the Guarantors shall be joint and several.
If the Client or any Guarantor should at any time be adjudicated insolvent or
admits in writing of their inability to pay their debts as they become due, or
make a general assignment, or if a petition in bankruptcy or any insolvency or
reorganization proceedings shall be filed or commenced by, against or in respect
of the Client or any Guarantors which is not vacated within thirty (30) days,
any and all obligations of each Guarantor shall at your option, forthwith become
due and payable without notice. Your records showing the account between you and
the Client shall be admissible in any action or proceeding, shall be binding
upon each Guarantor for the purpose of establishing the items therein set forth
and shall constitute prima facie proof thereof. This Guaranty is, as to
Guarantor, a continuing Guaranty which shall remain effective until expressly
terminated and nothing shall discharge or satisfy the liability of any Guarantor
hereunder except the full payment and performance of all of the Client's debts
and obligations to you with interest.


<PAGE>

     Guarantor waives notice of acceptance hereof, presentment and protest of
any instrument and any other notice to which the Guarantor may otherwise be
entitled.

     This Guaranty, all acts and transactions hereunder, and the rights and
obligations of the parties hereto shall be governed, construed and interpreted
according to the laws of the State of Illinois, shall be binding upon the heirs,
executors, administrators, successors and assigns of Guarantor and shall inure
to the benefit of your successors and assigns. The words "you" and "your" as
used herein shall mean and include and this Guaranty shall apply in favor of and
be jointly and severally enforceable against each of the Guarantors by the
addressee above named. This Guaranty is a key element in the extension of credit
to Client and the undersigned directly benefit therefrom.

Dated: January 12, 2001.



                                                /s/ Stephen M. Merrick
                                                ------------------------------
                                                STEPHEN MERRICK


                                                ------------------------------
                                                Address

                                                ------------------------------


                                      - 2 -
<PAGE>

                                  EXHIBIT 10.20
                                    GUARANTY

TO:  Banco Popular North America
     4801 W. Fullerton Avenue
     Chicago, IL 60639

     To induce you to extend credit to CTI INDUSTRIES CORPORATION (hereinafter
called "Client") and in consideration of advances to be made to Client and of
any loans, advances or financial accommodation heretofore or hereafter granted
by you to or for the account of the Client, the undersigned Guarantor guarantees
the payment to you of all sums which may be presently due and owing and of all
sums which shall in the future become due and owing to you from the Client under
any Note, Real Estate Mortgage or Assignment of Rents and Leases executed by the
Client to you.

     This Guaranty shall not be impaired by any modification, supplement,
extension or amendment of any contract or agreement to which the parties thereto
may hereafter agree, nor by any modification, release or other alteration of any
of the obligations hereby guaranteed or of any security therefor, nor by any
agreements or arrangements whatever with the Client or any one else. In
addition, Guarantor shall be liable to you for reasonable attorneys' fees, if
any claim hereunder or under any other instrument or guaranty is referred to an
attorney for collection. The liability of Guarantor hereunder is direct and
unconditional and may be enforced without requiring you first to resort to any
other right, remedy or security. Guarantor shall not have any right of
subrogation, reimbursement or indemnity whatsoever, nor any right of recourse to
security for the debts and obligations of the Client to you. If there is more
than one Guarantor, the liability of the Guarantors shall be joint and several.
If the Client or any Guarantor should at any time be adjudicated insolvent or
admits in writing of their inability to pay their debts as they become due, or
make a general assignment, or if a petition in bankruptcy or any insolvency or
reorganization proceedings shall be filed or commenced by, against or in respect
of the Client or any Guarantors which is not vacated within thirty (30) days,
any and all obligations of each Guarantor shall at your option, forthwith become
due and payable without notice. Your records showing the account between you and
the Client shall be admissible in any action or proceeding, shall be binding
upon each Guarantor for the purpose of establishing the items therein set forth
and shall constitute prima facie proof thereof. This Guaranty is, as to
Guarantor, a continuing Guaranty which shall remain effective until expressly
terminated and nothing shall discharge or satisfy the liability of any Guarantor
hereunder except the full payment and performance of all of the Client's debts
and obligations to you with interest.


<PAGE>

     Guarantor waives notice of acceptance hereof, presentment and protest of
any instrument and any other notice to which the Guarantor may otherwise be
entitled.

     This Guaranty, all acts and transactions hereunder, and the rights and
obligations of the parties hereto shall be governed, construed and interpreted
according to the laws of the State of Illinois, shall be binding upon the heirs,
executors, administrators, successors and assigns of Guarantor and shall inure
to the benefit of your successors and assigns. The words "you" and "your" as
used herein shall mean and include and this Guaranty shall apply in favor of and
be jointly and severally enforceable against each of the Guarantors by the
addressee above named. This Guaranty is a key element in the extension of credit
to Client and the undersigned directly benefit therefrom.

Dated: January 12, 2001.



                                                /s/ Howard Schwan
                                                ------------------------------
                                                HOWARD SCHWAN

                                                ------------------------------
                                                Address

                                                ------------------------------


                                      - 2 -
<PAGE>

                                  EXHIBIT 10.20
                                    GUARANTY

TO:  Banco Popular North America
     4801 W. Fullerton Avenue
     Chicago, IL 60639

     To induce you to extend credit to CTI INDUSTRIES CORPORATION (hereinafter
called "Client") and in consideration of advances to be made to Client and of
any loans, advances or financial accommodation heretofore or hereafter granted
by you to or for the account of the Client, the undersigned Guarantor guarantees
the payment to you of all sums which may be presently due and owing and of all
sums which shall in the future become due and owing to you from the Client under
any Note, Real Estate Mortgage or Assignment of Rents and Leases executed by the
Client to you.

     This Guaranty shall not be impaired by any modification, supplement,
extension or amendment of any contract or agreement to which the parties thereto
may hereafter agree, nor by any modification, release or other alteration of any
of the obligations hereby guaranteed or of any security therefor, nor by any
agreements or arrangements whatever with the Client or any one else. In
addition, Guarantor shall be liable to you for reasonable attorneys' fees, if
any claim hereunder or under any other instrument or guaranty is referred to an
attorney for collection. The liability of Guarantor hereunder is direct and
unconditional and may be enforced without requiring you first to resort to any
other right, remedy or security. Guarantor shall not have any right of
subrogation, reimbursement or indemnity whatsoever, nor any right of recourse to
security for the debts and obligations of the Client to you. If there is more
than one Guarantor, the liability of the Guarantors shall be joint and several.
If the Client or any Guarantor should at any time be adjudicated insolvent or
admits in writing of their inability to pay their debts as they become due, or
make a general assignment, or if a petition in bankruptcy or any insolvency or
reorganization proceedings shall be filed or commenced by, against or in respect
of the Client or any Guarantors which is not vacated within thirty (30) days,
any and all obligations of each Guarantor shall at your option, forthwith become
due and payable without notice. Your records showing the account between you and
the Client shall be admissible in any action or proceeding, shall be binding
upon each Guarantor for the purpose of establishing the items therein set forth
and shall constitute prima facie proof thereof. This Guaranty is, as to
Guarantor, a continuing Guaranty which shall remain effective until expressly
terminated and nothing shall discharge or satisfy the liability of any Guarantor
hereunder except the full payment and performance of all of the Client's debts
and obligations to you with interest.


<PAGE>

     Guarantor waives notice of acceptance hereof, presentment and protest of
any instrument and any other notice to which the Guarantor may otherwise be
entitled.

     This Guaranty, all acts and transactions hereunder, and the rights and
obligations of the parties hereto shall be governed, construed and interpreted
according to the laws of the State of Illinois, shall be binding upon the heirs,
executors, administrators, successors and assigns of Guarantor and shall inure
to the benefit of your successors and assigns. The words "you" and "your" as
used herein shall mean and include and this Guaranty shall apply in favor of and
be jointly and severally enforceable against each of the Guarantors by the
addressee above named. This Guaranty is a key element in the extension of credit
to Client and the undersigned directly benefit therefrom.

Dated: January 12, 2001.



                                                 /s/ John Schwan
                                                 ------------------------------
                                                 JOHN SCHWAN

                                                 ------------------------------
                                                 Address

                                                 ------------------------------


                                      - 2 -