Document:

EXHIBIT 10.2

 

	
        Payment of the indebtedness evidenced by
        this instrument or document and the rights of the holder hereof are subordinated and subject to the rights of BMO Harris Bank N.A.
        to the extent provided in a Subordination Agreement dated as of September 30, 2016, from the payee to said lender.

         

        Payment of the indebtedness evidenced by
        this instrument or document and the rights of the holder hereof are subordinated and subject to the rights of BMO Private
        Equity (U.S.), Inc., to the extent provided in a Subordination Agreement dated as of September 30, 2016, from the payee to
        said lender.

 

PROMISSORY NOTE

 

FOR VALUE RECEIVED, and subject to the
terms and conditions set forth herein, CTI Industries Corporation, an Illinois corporation (the "Maker"), hereby
unconditionally promises to pay to the order of John H. Schwan or his assigns (the "Noteholder", and together
with the Maker, the "Parties"), the principal amount of Five Hundred Thirty Thousand Dollars ($530,000) (the "Loan"),
together with all accrued interest thereon, as provided in this Promissory Note (the "Note", as the same may be
amended, restated, supplemented or otherwise modified from time to time in accordance with its terms).

 

1.    Definitions.
Capitalized terms used herein shall have the meanings set forth in this Section 1.

 

"Applicable Rate" means
the rate equal to Six percent (6%) per annum.

 

"Business Day" means
a day other than a Saturday, Sunday or other day on which commercial banks in Chicago, Illinois are authorized or required by law
to close.

 

"Default" means any
of the events specified in Section 6 which constitutes an Event of Default or which, upon the giving of notice, the
lapse of time, or both pursuant to Section 6 would, unless cured or waived, become an Event of Default.

 

"Default Rate" means,
at any time, the Applicable Rate plus 2%.

 

"Event of Default" has
the meaning set forth in Section 6.

 

"Governmental Authority" means
the government of any nation or any political subdivision thereof, whether at the national, state, territorial, provincial, municipal
or any other level, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising
executive, legislative, judicial, taxing, regulatory or administrative powers or functions of, or pertaining to, government (including
any supranational bodies such as the European Union or the European Central Bank).

 

     

     

    

 

"Law" as to any Person,
means any law (including common law), statute, ordinance, treaty, rule, regulation, policy or requirement of any Governmental Authority
and authoritative interpretations thereon, whether now or hereafter in effect, in each case, applicable to or binding on such Person
or any of its properties or to which such Person or any of its properties is subject.

 

"Loan" has the meaning
set forth in the introductory paragraph.

 

"Maker" has the meaning
set forth in the introductory paragraph.

 

"Maturity Date" means
the earlier of (a) the date that is six months after the latest maturity date for any indebtedness owing by the Maker under
(i) a Credit Agreement dated as of April 29, 2010, between the Maker and BMO Harris Bank N.A. (as the same
may be amended, restated, supplemented or otherwise modified from time to time in accordance with its terms) or (ii) a Note
and Warrant Purchase Agreement dated as of July 17, 2012, between the Maker and BMO Private Equity (U.S.), Inc. (as the
same may be amended, restated, supplemented or otherwise modified from time to time in accordance with its terms), and (b) the
date on which all amounts under this Note shall become due and payable pursuant to Section 7.

 

"Note" has the meaning
set forth in the introductory paragraph.

 

"Noteholder" has
the meaning set forth in the introductory paragraph.

 

"Order" as to any
Person, means any order, decree, judgment, writ, injunction, settlement agreement, requirement or determination of an arbitrator
or a court or other Governmental Authority, in each case, applicable to or binding on such Person or any of its properties or to
which such Person or any of its properties is subject.

 

"Parties" has the
meaning set forth in the introductory paragraph.

 

"Person" means any
individual, corporation, limited liability company, trust, joint venture, association, company, limited or general partnership,
unincorporated organization, Governmental Authority or other entity.

 

2.    Final
Payment Date; Optional Prepayments.

 

2.1       Final
Payment Date. The aggregate unpaid principal amount of the Loan, all accrued and unpaid interest and all other amounts payable
under this Note shall be due and payable on the Maturity Date.

 

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2.2       Optional
Prepayment. The Maker may prepay the Loan in whole or in part at any time or from time to time without penalty or premium by
paying the principal amount to be prepaid together with accrued interest thereon to the date of prepayment. No prepaid amount may
be reborrowed.

 

3.    Interest.

 

3.1       Interest
Rate. Except as otherwise provided herein, the outstanding principal amount of the Loan made hereunder shall bear interest
at the Applicable Rate from the date the Loan was made until the Loan is paid in full, whether at maturity, upon acceleration,
by prepayment or otherwise.

 

3.2       Interest
Payment Dates. In accordance with Section 2.1, all accrued and unpaid interest shall be due and payable on the Maturity
Date.

 

3.3       Default
Interest. If any amount payable hereunder is not paid when due (without regard to any applicable grace periods), whether at
stated maturity, by acceleration or otherwise, such overdue amount shall bear interest at the Default Rate from the date of such
non-payment until such amount is paid in full.

 

3.4       Computation
of Interest. All computations of interest shall be made on the basis of a year of 365 days, and the actual number of days elapsed.
Interest shall accrue on the Loan on the day on which such Loan is made, and shall not accrue on the Loan on the day on which it
is paid. Interest shall not accrue on accrued and unpaid interest.

 

4.    Payment
Mechanics.

 

4.1       Manner
of Payment. All payments of interest and principal shall be made in lawful money of the United States of America no later than
[12:00] PM on the date on which such payment is due by wire transfer of immediately available funds to the Noteholder's account
at a bank specified by the Noteholder in writing to the Maker from time to time.

 

4.2       Application
of Payments. All payments made hereunder shall be applied first, to the payment of any fees or charges outstanding hereunder,
second, to accrued interest and third, to the payment of the principal amount outstanding under the Note.

 

4.3       Business
Day Convention. Whenever any payment to be made hereunder shall be due on a day that is not a Business Day, such payment shall
be made on the next succeeding Business Day and such extension will be taken into account in calculating the amount of interest
payable under this Note.

 

5.      
Representations and Warranties. The Maker hereby represents and warrants to the Noteholder on the date hereof as follows:

 

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5.1       Existence.
The Maker is a corporation duly incorporated, validly existing and in good standing under the laws of the state of its jurisdiction
of organization.

 

5.2       Power
and Authority. The Maker has the power and authority, and the legal right, to execute and deliver this Note and to perform
its obligations hereunder.

 

5.3       Authorization;
Execution and Delivery. The execution and delivery of this Note by the Maker and the performance of its obligations hereunder
have been duly authorized by all necessary corporate action in accordance with all applicable Laws. The Maker has duly executed
and delivered this Note.

 

5.4       No
Approvals. Other than consent by BMO Harris N.A. and BMO Private Equity (US) Inc., which consent has been given, no consent
or authorization of, filing with, notice to or other act by, or in respect of, any Governmental Authority or any other Person is
required in order for the Maker to execute, deliver, or perform any of its obligations under this Note.

 

5.5       No
Violations. The execution and delivery of this Note and the consummation by the Maker of the transactions contemplated hereby
do not and will not (a) violate any provision of the Maker's organizational documents; (b) violate any Law or Order applicable
to the Maker or by which any of its properties or assets may be bound; or (c) constitute a default under any material agreement
or contract by which the Maker may be bound.

 

5.6       Enforceability.
The Note is a valid, legal and binding obligation of the Maker, enforceable against the Maker in accordance with its terms except
as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the
enforcement of creditors' rights generally and by general equitable principles.

 

6.    Events
of Default. The occurrence of any of the following shall constitute an Event of Default hereunder:

 

6.1       Failure
to Pay. The Maker fails to pay (a) any principal amount of the Loan when due; or (b) interest or any other amount when due
and such failure continues for [5] days.

 

6.2       Breach
of Representations and Warranties. Any representation or warranty made or deemed made by the Maker to the Noteholder herein
is incorrect in any material respect on the date as of which such representation or warranty was made or deemed made.

 

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6.3       Bankruptcy.
 

 

(a)      the
Maker commences any case, proceeding or other action (i) under any existing or future law relating to bankruptcy, insolvency, reorganization,
or other relief of debtors, seeking to have an order for relief entered with respect to it, or seeking to adjudicate it as bankrupt
or insolvent, or seeking reorganization, arrangement, adjustment, winding-up, liquidation, dissolution, composition or other relief
with respect to it or its debts, or (ii) seeking appointment of a receiver, trustee, custodian, conservator or other similar official
for it or for all or any substantial part of its assets, or the Maker makes a general assignment for the benefit of its creditors;

 

(b)      there
is commenced against the Maker any case, proceeding or other action of a nature referred to in clause (a) above which (i) results
in the entry of an order for relief or any such adjudication or appointment or (ii) remains undismissed, undischarged or unbonded
for a period of 60 days;

 

(c)      there
is commenced against the Maker any case, proceeding or other action seeking issuance of a warrant of attachment, execution or similar
process against all or any substantial part of its assets which results in the entry of an order for any such relief which has
not been vacated, discharged, or stayed or bonded pending appeal within 30 days from the entry thereof;

 

(d)      the
Maker takes any action in furtherance of, or indicating its consent to, approval of, or acquiescence in, any of the acts set forth
in clause (a), (b) or (c) above; or

 

(e)      the
Maker is generally not, or is unable to, or admits in writing its inability to, pay its debts as they become due.

 

6.4       Judgments.
A judgment or decree is entered against the Maker and such judgment or decree has not been vacated, discharged, stayed or bonded
pending appeal within 15 days from the entry thereof.

 

6.5       Default.
The Maker shall be in default under, or shall have received notice of default with respect to, any note, agreement, or instrument
to which Maker shall be a party and such notice of default shall not have been rescinded or waived within five days from the date
given.

 

7.    Remedies.
Upon the occurrence of an Event of Default and at any time thereafter during the continuance of such Event of Default, the Noteholder
may at its option, by written notice to the Maker (a) declare the entire principal amount of this Note, together with all accrued
interest thereon and all other amounts payable hereunder, immediately due and payable and/or (b) exercise any or all of its rights,
powers or remedies under applicable law; provided, however that, if an Event of Default described in Section 6.3(a)
or 6.3(b) shall occur, the principal of and accrued interest on the Loan shall become immediately due and payable without any notice,
declaration or other act on the part of the Noteholder.

 

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8.    Miscellaneous.

 

8.1       Notices.
 

 

(a)      All
notices, requests or other communications required or permitted to be delivered hereunder shall be delivered in writing to such
address as a Party may from time to time specify in writing.

 

(b)      Notices
if (i) mailed by certified or registered mail or sent by hand or overnight courier service shall be deemed to have been given when
received, (ii) sent by facsimile during the recipient's normal business hours shall be deemed to have been given when sent (and
if sent after normal business hours shall be deemed to have been given at the opening of the recipient's business on the next business
day) and (iii) sent by e-mail shall be deemed received upon the sender's receipt of an acknowledgment from the intended recipient
(such as by the "return receipt requested" function, as available, return e-mail or other written acknowledgment).

 

8.2       Expenses.
The Maker shall reimburse the Noteholder on demand for all reasonable out-of-pocket costs, expenses and fees (including reasonable
expenses and fees of its counsel) incurred by the Noteholder in connection with the transactions contemplated hereby including
the negotiation, documentation and execution of this Note and the enforcement of the Noteholder's rights hereunder.

 

8.3       Governing
Law. This Note and any claim, controversy, dispute or cause of action (whether in contract or tort or otherwise) based upon,
arising out of or relating to this Note and the transactions contemplated hereby shall be governed by the laws of the State of
Illinois.

 

8.4       Submission
to Jurisdiction.  

 

(a)      The
Maker hereby irrevocably and unconditionally (i) agrees that any legal action, suit or proceeding arising out of or relating to
this Note may be brought in the courts of the State of Illinois or of the United States of America for the Northern District of
Illinois and (ii) submits to the exclusive jurisdiction of any such court in any such action, suit or proceeding. Final judgment
against the Maker in any action, suit or proceeding shall be conclusive and may be enforced in any other jurisdiction by suit on
the judgment.

 

(b)      Nothing
in this Section 8.4 shall affect the right of the Noteholder to (i) commence legal proceedings or otherwise sue the
Maker in any other court having jurisdiction over the Maker or (ii) serve process upon the Maker in any manner authorized by the
laws of any such jurisdiction.

 

8.5       Venue.
The Maker irrevocably and unconditionally waives, to the fullest extent permitted by applicable law, any objection that it may
now or hereafter have to the laying of venue of any action or proceeding arising out of or relating to this Note in any court referred
to in Section 8.4(a) and the defense of an inconvenient forum to the maintenance of such action or proceeding in
any such court.

 

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8.6       Waiver
of Jury Trial. THE MAKER HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE
TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY RELATING TO THIS NOTE OR THE TRANSACTIONS CONTEMPLATED HEREBY
WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY.

 

8.7       Counterparts;
Integration; Effectiveness. This Note and any amendments, waivers, consents or supplements hereto may be executed in counterparts,
each of which shall constitute an original, but all taken together shall constitute a single contract. This Note constitutes the
entire contract between the Parties with respect to the subject matter hereof and supersede all previous agreements and understandings,
oral or written, with respect thereto. Delivery of an executed counterpart of a signature page to this Note by facsimile or in
electronic (i.e., "pdf" or "tif") format shall be effective as delivery of a manually executed counterpart
of this Note.

 

8.8       Successors
and Assigns. This Note may be assigned, transferred or negotiated by the Noteholder to any Person at any time without notice
to or the consent of the Maker. The Maker may not assign or transfer this Note or any of its rights hereunder without the prior
written consent of the Noteholder. This Note shall inure to the benefit of and be binding upon the parties hereto and their permitted
assigns.

 

8.9       Waiver
of Notice. The Maker hereby waives presentment, demand for payment, protest, notice of dishonor, notice of protest or nonpayment,
notice of acceleration of maturity and diligence in connection with the enforcement of this Note or the taking of any action to
collect sums owing hereunder.

 

8.10     Amendments
and Waivers. No term of this Note may be waived, modified or amended except by an instrument in writing signed by both of the
parties hereto. Any waiver of the terms hereof shall be effective only in the specific instance and for the specific purpose given.

 

8.11     Headings.
The headings of the various Sections and subsections herein are for reference only and shall not define, modify, expand or limit
any of the terms or provisions hereof.

 

8.12     No
Waiver; Cumulative Remedies. No failure to exercise and no delay in exercising on the part of the Noteholder, of any right,
remedy, power or privilege hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any right,
remedy, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, remedy,
power or privilege. The rights, remedies, powers and privileges herein provided are cumulative and not exclusive of any rights,
remedies, powers and privileges provided by law.

 

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8.13     Severability.
If any term or provision of this Note is invalid, illegal or unenforceable in any jurisdiction, such invalidity, illegality or
unenforceability shall not affect any other term or provision of this Note or invalidate or render unenforceable such term or provision
in any other jurisdiction.

 

IN WITNESS WHEREOF, the Maker has executed this Note as of September
30, 2016.

 

	 	CTI INDUSTRIES CORPORATION
	 	 	 
	 	By:	/s/ Timothy Patterson
	 	 	Authorized Officer
	 	 
	 	Name: Timothy Patterson
	 	 
	 	Title: Chief Financial Officer

 

    	 	8EXHIBIT
10.3

 

Amendment
No. 9 

to Credit Agreement

 

This Amendment No. 9 to Credit Agreement
is dated as of October 12, 2016, but effective as of September 30, 2016, and is between CTI
Industries Corporation, an Illinois corporation (the “Borrower”); CTI Supply, Inc.,
an Illinois corporation f/k/a CTI Helium, Inc., and a Wholly-Owned Subsidiary of the Borrower, in its capacity as a guarantor
(the “Subsidiary Guarantor”); and BMO Harris Bank N.A.,
a national banking association, successor to Harris N.A. (the “Bank”).

 

The Borrower and the Bank entered into a
Credit Agreement dated as of April 29, 2010 (as amended, modified, or supplemented before the effective date of this agreement,
the “Credit Agreement”), under which the Bank has extended certain credit facilities to the Borrower.

 

In connection with the Credit Agreement,
the Subsidiary Guarantor entered into a Guaranty dated as of April 29, 2010 (the “Subsidiary Guaranty”),
under which, among other things, the Subsidiary Guarantor guarantees the prompt and complete payment and performance of the Obligations.

 

The parties now desire to amend the Credit
Agreement in certain respects.

 

The parties therefore agree as follows:

 

1.          Definitions.
Defined terms used but not defined in this agreement are as defined in the Credit Agreement.

 

2.          Amendments
to Credit Agreement. (a) The definition of “CTI Helium” in section 5.1 of the Credit Agreement is
hereby amended to read in its entirety as follows:

 

“            “CTI Helium” means CTI Supply, Inc.,
an Illinois corporation and a Wholly-Owned Subsidiary f/k/a CTI Helium, Inc.”

 

(b)          The
definition of “Fixed Charges” in section 5.1 of the Credit Agreement is hereby amended to read in its entirety
as follows:

 

“            “Fixed Charges” means,
with reference to any period, the sum of (a) the aggregate amount of payments made or required to be made by the Borrower and its
Subsidiaries, on a consolidated basis, during such period in respect of principal on all Indebtedness for Borrowed Money (whether
at maturity, as a result of mandatory sinking fund redemption, scheduled payments or otherwise) other than (i) Revolving Loans,
(ii) Intercompany Debt, and (iii) in the case of Subordinated Debt, principal reductions caused by the exercise of warrants by
the holders of such debt and principal reductions made prior to the date of this Agreement, plus (b) total cash interest
expense (including interest on Subordinated Debt but excluding interest on Intercompany Debt) for such period.”

 

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(c)          The
definition of “Total Funded Debt” in section 5.1 of the Credit Agreement is hereby amended to read in its entirety
as follows:

 

“            “Total Funded Debt”
means, at any time the same is to be determined, the aggregate of all Indebtedness for Borrowed Money of the Borrower and its Subsidiaries,
on a consolidated basis, at such time, plus all Indebtedness for Borrowed Money of any other person or entity which is directly
or indirectly guaranteed by the Borrower or any of its Subsidiaries or which the Borrower or any of its Subsidiaries has agreed
(contingently or otherwise) to purchase or otherwise acquire or in respect of which the Borrower or any of its Subsidiaries has
otherwise assured a creditor against loss. For purposes of this Agreement, “Total Funded Debt” includes the 2016 CTI–Merrick
Debt and the 2016 CTI–Schwan Debt, but “Total Funded Debt” does not include any Excluded VIE Debt or the
Subordinated Debt owing to John H. Schwan and Stephen M. Merrick described in Section 8.7(f).”

 

(d)          Section 5.1
of the Credit Agreement is hereby further amended by inserting each of the following new definitions in the appropriate alphabetical
order:

 

“            “2016 CTI–Merrick Debt”
means the Indebtedness for Borrowed Money of the Borrower owing to Stephen M. Merrick evidenced by a Promissory Note dated
September 30, 2016, in the original principal amount of $370,000 made by the Borrower and payable to Stephen M. Merrick.

 

“2016 CTI–Schwan
Debt” means the Indebtedness for Borrowed Money of the Borrower owing to John H. Schwan evidenced by a Promissory Note
dated September 30, 2016, in the original principal amount of $530,000 made by the Borrower and payable to John H. Schwan.

 

“2016 Walmart Promotional
Program” means a program and arrangement pursuant to which the Borrower will provide and sell to Walmart in November 2016
approximately 4,000 half-pallets of vacuum-sealing machines and rolls of film for sale at Walmart stores.

 

“Amendment No. 9 Effective
Date” means September 30, 2016, which is the effective date of an Amendment No. 9 to Credit Agreement dated
as of October 12, 2016, but effective as of September 30, 2016, between the Borrower, CTI Helium, and the Bank.”

 

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(e)          Section 8.5(a)
of the Credit Agreement is hereby amended to read in its entirety as follows:

 

“            (a)          (i) from
and after the Amendment No. 9 Effective date through and including the earlier of (A) the date as of which all Receivables
from the 2016 Walmart Promotional Program have been paid to the Borrower (as determined by the Bank in its sole and absolute
discretion based, in part, on delivery to the Bank of invoice documentation and proof of payment remittance from Walmart) and (B) February 28,
2017, as soon as available, and in any event by the first Business Day of each week, a Borrowing Base certificate in the form attached
hereto as Exhibit F showing the computation of the Borrowing Base in reasonable detail as of the close of business on the
last day of the immediately preceding week, together with an accounts receivable and accounts payable aging and an inventory report
supporting the computation of the Borrowing Base, prepared by the Borrower and certified to by its chief financial officer or such
other officer acceptable to the Bank; and (ii) thereafter, as soon as available, and in any event within fifteen (15) days
after the last day of each calendar month, a Borrowing Base certificate in the form attached hereto as Exhibit F showing
the computation of the Borrowing Base in reasonable detail as of the close of business on the last day of such month, together
with an accounts receivable and accounts payable aging and an inventory report supporting the computation of the Borrowing Base,
prepared by the Borrower and certified to by its chief financial officer or such other officer acceptable to the Bank;”

 

(f)          Section 8.7
of the Credit Agreement is hereby amended as follows: (1) by deleting “and” from the end of section 8.7(h);
(2) by renumbering existing section 8.7(i) as a new section 8.7(k); and (3) by inserting the following as new
sections 8.7(i) and 8.7(j):

 

“             (i)          the
2016 CTI–Merrick Debt existing on the Amendment No. 9 Effective Date in an aggregate principal amount not to exceed
$370,000 as of the Amendment No. 9 Effective Date, as reduced by permitted payments or permitted deemed payments thereon,
and provided that (A) the maturity date for the 2016 CTI–Merrick Debt shall be not earlier than the date that is
six months after the latest of the Equipment Loan Final Maturity Date, the Mortgage Loan Final Maturity Date, and the Revolving
Credit Termination Date, (B) the 2016 CTI–Merrick Debt shall be unsecured, (C) the 2016 CTI–Merrick
Debt shall be Subordinated Debt, and (D) the first $900,000 of Receivables from the 2016 Walmart Promotional Program
paid to the Borrower shall, subject to Section 8.21, be used by the Borrower to make one or more prepayments
or deemed prepayments of all of the outstanding principal amount of the 2016 CTI–Merrick Debt and the 2016 CTI–Schwan
Debt;

 

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(j)          the
2016 CTI–Schwan Debt existing on the Amendment No. 9 Effective Date in an aggregate principal amount not to exceed
$530,000 as of the Amendment No. 9 Effective Date, as reduced by permitted payments or permitted deemed payments thereon,
and provided that (A) the maturity date for the 2016 CTI–Schwan Debt shall be not earlier than the date that is
six months after the latest of the Equipment Loan Final Maturity Date, the Mortgage Loan Final Maturity Date, and the Revolving
Credit Termination Date, (B) the 2016 CTI–Schwan Debt shall be unsecured, (C) the 2016 CTI–Schwan
Debt shall be Subordinated Debt, and (D) the first $900,000 of Receivables from the 2016 Walmart Promotional Program
paid to the Borrower shall, subject to Section 8.21w, be used by the Borrower to make one or more prepayments
or deemed prepayments of all of the outstanding principal amount of the 2016 CTI–Merrick Debt and the 2016 CTI–Schwan
Debt; and”

 

(g)          Clause (b)
of Section 8.21 of the Credit Agreement is hereby amended to read in its entirety as follows:

 

“(b) make any voluntary prepayment of Subordinated
Debt or effect any voluntary redemption thereof, other than voluntary prepayments (or deemed voluntary prepayments) of the 2016 CTI–Merrick
Debt and the 2016 CTI–Schwan Debt that are not prohibited under the terms of any instrument or agreement subordinating
the same to the Obligations, or”

 

3.            Reaffirmation
of Subsidiary Guaranty. The Subsidiary Guarantor hereby expressly does each of the following:

 

		(1)	consents to the execution by the Borrower and the Bank
of this agreement;

 

		(2)	acknowledges that the “Indebtedness” (as defined
in the Subsidiary Guaranty) includes all of the “Obligations” under and as defined in the Credit Agreement, as amended
from time to time (including as amended by this agreement);

 

		(3)	acknowledges that the Subsidiary Guarantor does not have
any set-off, defense, or counterclaim to the payment or performance of any of the obligations of the Borrower under the Credit
Agreement or the Subsidiary Guarantor under the Subsidiary Guaranty;

 

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		(4)	reaffirms, assumes, and binds itself in all respects to
all of the obligations, liabilities, duties, covenants, terms, and conditions contained in the Subsidiary Guaranty;

 

		(5)	agrees that all such obligations and liabilities under
the Subsidiary Guaranty continue in full force and that the execution and delivery of this agreement to, and its acceptance by,
the Bank will not in any manner whatsoever do any of the following:

 

		(A)	impair or affect the liability of the Subsidiary Guarantor
to the Bank under the Subsidiary Guaranty;

 

		(B)	prejudice, waive, or be construed to impair, affect, prejudice,
or waive the rights and abilities of the Bank at law, in equity, or by statute against the Subsidiary Guarantor pursuant to the
Subsidiary Guaranty; or

 

		(C)	release or discharge, or be construed to release or discharge,
any of the obligations and liabilities owing to the Bank by the Subsidiary Guarantor under the Subsidiary Guaranty; and

 

		(6)	represents and warrants that each of the representations
and warranties made by the Subsidiary Guarantor in any of the documents executed in connection with the Loans remain true and
correct as of the date of this agreement.

 

4.            Representations
and Warranties. To induce the Bank to enter into this agreement, the Borrower hereby represents to the Bank as follows:

 

		(1)	that the Borrower is duly authorized to execute and deliver
this agreement and is and will continue to be duly authorized to borrow monies under the Credit Agreement, as amended by this
agreement, and to perform its obligations under the Credit Agreement, as amended by this agreement;

 

		(2)	that the execution and delivery of this agreement and the
performance by the Borrower of its obligations under the Credit Agreement, as amended by this agreement, do not and will not conflict
with any provision of law or of the articles of organization or operating agreement of the Borrower or of any agreement binding
upon the Borrower;

 

		(3)	that the Credit Agreement, as amended by this agreement,
is a legal, valid, and binding obligation of the Borrower, enforceable against the Borrower in accordance with its terms, except
as enforceability might be limited by bankruptcy, insolvency, or other similar laws of general application affecting the enforcement
of creditors’ rights or by general principles of equity limiting the availability of equitable remedies;

 

		(4)	that the representation and warranties set forth in section 6
of the Credit Agreement, as amended by this agreement, are true and correct with the same effect as if those representations and
warranties had been made on the date hereof, except that all references to the financial statements mean the financial statements
most recently delivered to the Bank and except for changes specifically permitted under the Credit Agreement, as amended by this
agreement;

 

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		(5)	that the Borrower has complied with and is in compliance
with all of the covenants set forth in the Credit Agreement, as amended by this agreement, including the covenants stated in section 8
of the Credit Agreement; and

 

		(6)	that as of the date of this agreement no Default and no
Event of Default under section 10 of the Credit Agreement, as amended by this agreement, has occurred or is continuing.

 

5.            Conditions.
The effectiveness of this agreement is subject to satisfaction of the following conditions:

 

		(1)	that the Bank has received the following:

 

		(A)	a copy of this agreement, duly executed by the parties;

 

		(B)	one or more subordination agreements with respect to the
2016 CTI–Merrick Debt and the 2016 CTI–Schwan Debt (each as defined in the Credit Agreement as in effect
immediately after giving effect to this agreement), each in form and substance satisfactory to the Bank and duly executed by all
applicable Persons;

 

		(C)	a copy of an amendment to the BMO Mezzanine NWPA and
each of the other documents required to be delivered in accordance with that amendment, each in form and substance satisfactory
to the Bank and duly executed by all applicable Persons; and

 

		(D)	all other documents, certificates, resolutions, and opinions
of counsel as the Bank requests; and

 

		(2)	that all legal matters incident to the execution and delivery
of this agreement are satisfactory to the Bank and its counsel.

 

6.            General.
(a) This agreement and the rights and duties of the parties hereto are governed by, and are to be construed in accordance with,
the internal laws of State of Illinois without regard to principles of conflicts of laws. Wherever possible each provision of the
Credit Agreement and this agreement is to be interpreted in such manner as to be effective and valid under applicable law, but
if any provision of the Credit Agreement and this agreement is prohibited by or invalid under any such law, that provision will
be deemed ineffective to the extent of that prohibition or invalidity, without invalidating the remainder of that provision or
the remaining provisions of the Credit Agreement and this agreement.

 

    	 	6	 

     

    

 

(b)          This
agreement is a Loan Document.

 

(c)          This
agreement binds each party and their respective successors and assigns, and this agreement inures to the benefit of each party
and the successors and assigns of the Bank.

 

(d)          Except
as specifically modified or amended by the terms of this agreement, the terms and provisions of the Credit Agreement, the Subsidiary
Guaranty, and the other Loan Documents are incorporated by reference herein and in all respects continue in full force and effect.
The Borrower, by execution of this agreement, hereby reaffirms, assumes, and binds itself to all of the obligations, duties, rights,
covenants, terms, and conditions contained in the Credit Agreement and the other Loan Documents to which it is a party.

 

(e)          Each
reference in the Credit Agreement to “this Agreement,” “hereunder,” “hereof,” or words of like
import, and each reference to the Credit Agreement in any and all instruments or documents delivered in connection therewith, are
deemed to refer to the Credit Agreement, as amended by this agreement.

 

(f)          The
Borrower shall pay all costs and expenses in connection with the preparation of this agreement and other related loan documents,
including, without limitation, reasonable attorneys’ fees and time charges of attorneys who are employees of the Bank or
any affiliate or parent of the Bank. The Borrower shall pay any and all stamp and other taxes, UCC search fees, filing fees, and
other costs and expenses in connection with the execution and delivery of this agreement and the other instruments and documents
to be delivered hereunder, and agrees to save the Bank harmless from and against any and all liabilities with respect to or resulting
from any delay in paying or omission to pay such costs and expenses.

 

(g)          The
Borrower hereby waives and releases any and all current existing claims, counterclaims, defenses, or set-offs of every kind and
nature which it has or might have against the Bank arising out of, pursuant to, or pertaining in any way to the Credit Agreement,
any and all documents and instruments in connection with or relating to the foregoing, or this agreement. The Borrower hereby further
covenants and agrees not to sue the Bank or assert any claims, defenses, demands, actions, or liabilities against the Bank arising
out of, pursuant to, or pertaining in any way to the Credit Agreement, any and all documents and instruments in connection with
or relating to the foregoing, or this agreement.

 

(h)          The
parties may sign this agreement in several counterparts, each of which will be deemed an original but all of which together will
constitute one instrument. Receipt of an executed signature page to this agreement by facsimile or other electronic transmission
will constitute effective delivery of that executed signature page. Electronic records of executed Loan Documents (including this
agreement) maintained by the Bank will be deemed to be originals.

 

[Signature pages follow]

 

    	 	7	 

     

    

 

The parties are signing this Amendment No. 9
to Credit Agreement as of the date stated in the introductory clause.

 

	 	CTI Industries Corporation
	 	 	 
	 	By:	/s/ Stephen Merrick
	 	Name:	Stephen Merrick
	 	Title:	President
	 	 	 
	 	CTI Supply, Inc.
	 	(f/k/a CTI Helium, Inc.)
	 	 	 
	 	By:	/s/ Stephen Merrick
	 	Name:	Stephen Merrick
	 	Title:	President
	 	 	 
	 	BMO Harris BANK N.A.
	 	 	 
	 	By:	Timothy J. Moran
	 	Name:	Timothy J. Moran
	 	Title:	Managing Director

 

Signature page to Amendment No. 9 to Credit Agreement

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