SEC Contract Filing

Filing Date: 2017-12-19

Document Content:
<DOCUMENT>
<TYPE>EX-10.3
<SEQUENCE>4
<FILENAME>tv481630_ex10-3.htm
<DESCRIPTION>EXHIBIT 10.3
<TEXT>
<HTML>
<HEAD>
 <TITLE></TITLE>
</HEAD>
<BODY STYLE="font: 10pt Times New Roman, Times, Serif">

<P STYLE="margin: 0"></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">EXHIBIT 10.3</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">TERM NOTE</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
 <TD STYLE="width: 50%; font-size: 10pt">$<B>6,000,000</B></TD>
 <TD STYLE="width: 50%; text-align: right; font-size: 10pt">Date: December 14, 2017</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">This Term Note (this
&quot;<U>Note</U>&quot;) is executed and delivered under and pursuant to the terms of that certain Revolving Credit, Term Loan
and Security Agreement dated as of the date hereof (as amended, restated, modified or otherwise supplemented from time to time,
the &quot;<U>Credit Agreement</U>&quot;) by and among CTI INDUSTRIES CORPORATION, an Illinois corporation (&quot;<U>Company</U>&quot;;
together with each Person joined to the Credit Agreement as a borrower from time to time, collectively the &quot;<U>Borrowers</U>&quot;
and each individually, a &quot;<U>Borrower</U>&quot;), each other Credit Party party thereto from time to time, the financial institutions
which are now or which hereafter become a party thereto (collectively, the &quot;<U>Lenders</U>&quot;) and PNC BANK, NATIONAL ASSOCIATION
(&quot;<U>PNC</U>&quot;), as agent for the Lenders (in such capacity, the &quot;<U>Agent</U>&quot;). Capitalized terms not otherwise
defined herein shall have the meanings provided in the Credit Agreement</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">FOR VALUE RECEIVED,
Borrowers hereby, jointly and severally, promise to pay to PNC BANK, NATIONAL ASSOCIATION (&quot;<U>Holder</U>&quot;), at the office
of Agent located at PNC Bank Center, Two Tower Center, 8th Floor, East Brunswick, New Jersey 08816 or at such other place as Agent
may from time to time designate to Borrowers in writing:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the
principal sum of <B>[Six Million]</B> and 00/100 Dollars ($[<B>6,000,000</B>]), payable in accordance with the provisions of the
Credit Agreement, subject to acceleration upon the occurrence of an Event of Default under the Credit Agreement and during the
continuation thereof, or earlier termination of the Credit Agreement pursuant to the terms thereof; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;interest
on the unpaid principal amount of this Note from time to time outstanding until such principal amount is paid in full at the applicable
Term Loan Rate in accordance with the provisions of the Credit Agreement. In no event, however, shall interest exceed the maximum
interest rate permitted by law. Upon and after the occurrence of an Event of Default, and during the continuation thereof, at the
option of Agent and at the direction of Required Lenders (or, in the case of any Event of Default under Section&nbsp;10.7, immediately
and automatically upon the occurrence of any such Event of Default without the requirement of any affirmative action by any party),
interest shall be payable at the Default Rate.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">This Note is a Term
Note referred to in the Credit Agreement and is secured, <U>inter</U> <U>alia</U>, by the liens granted pursuant to the Credit
Agreement and the Other Documents, is entitled to the benefits of the Credit Agreement and the Other Documents and is subject
to all of the agreements, terms and conditions therein contained.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">This Note is subject
to mandatory prepayment and may be voluntarily prepaid, in whole or in part, on the terms and conditions set forth in the Credit
Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<!-- Field: Page; Sequence: 1 -->
 <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
 <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
 <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"