$3,500,000 Chicago, Illinois December 31, 2003
FOR VALUE RECEIVED, the undersigned, CTI INDUSTRIES CORPORATION, an Illinois corporation, and
CTI HELIUM, INC., an Illinois corporation (collectively, the "Borrowers" and, individually, each a "Borrower"),
jointly and severally, each promise to pay to the order of COLE TAYLOR BANK (hereinafter, together with
any holder hereof, called "Lender"), at the principal office of the Lender, the principal sum of THREE MILLION
FIVE HUNDRED THOUSAND DOLLARS ($3,500,000). Each Borrower, jointly and severally, further
promise to pay interest on the outstanding principal amount hereof on the dates and at the rates provided in the
Loan Agreement (as hereinafter defined) from the date hereof until payment in full hereof.
This Note was delivered pursuant to that certain Loan and Security Agreement dated as of the date hereof, as it
may be amended from time to time, together with all exhibits thereto, between Lender and the Borrowers (the
"Loan Agreement"). All terms which are capitalized and used herein (which are not otherwise defined herein) shall
have the meaning ascribed to such term in the Loan Agreement. This Note is secured by the personal property
described in and pursuant to the Loan Agreement and various Loan Documents referred to therein, and reference
is made thereto for a statement of terms and provisions of such Collateral security, a description of Collateral and
the rights of Lender in respect thereof.
Principal hereunder shall be payable pursuant to the terms of the Loan Agreement. Upon the occurrence of an
Event of Default, the unpaid balance of the principal amount of this Note, together with all accrued and unpaid
interest thereon, may become, or may be declared to be, due and payable in the manner, upon the conditions and
with the effect provided in the Loan Agreement.
Each Borrower hereby authorizes the Lender to charge any account of such Borrower for all sums due
hereunder. If payment hereunder becomes due an