FOURTH TERM NOTE

 EXHIBIT 10.23

                                FOURTH TERM NOTE

$200,000.00                                          Elk Grove Village, Illinois
                                                                    July 1, 1997
                                                           Loan No. 600804665-60

                  FOR  VALUE   RECEIVED,   the   undersigned,   CTI   Industries
Corporation, a Delaware corporation (the "Borrower"),  hereby promises to pay to
the order of First American Bank, an Illinois banking  corporation (the "Bank"),
the principal sum of Two Hundred  Thousand and No/100 Dollars  ($200,000.00)  on
July 1, 1998 (or earlier as hereinafter provided),  or so much thereof as may be
advanced  by the Bank and  evidenced  by this Note  under the Loan and  Security
Agreement  dated  August 19,  1996,  as it has been  amended  from time to time,
between the Borrower and the Bank (the "Loan Agreement"), together with interest
to  maturity  (whether  by lapse of time,  acceleration,  or  otherwise)  on the
balance of principal  remaining  from time to time  outstanding at a fluctuating
rate per annum equal to one percent (1%) per annum over the Prime Rate announced
from  time to time by the  Bank  (which  may not be the  Bank's  lowest  rate of
interest)  which  shall be  adjusted  daily  when and as the  Bank's  Prime Rate
changes.  Interest shall be calculated on the basis of a 360-day year and actual
days.

                  Unless  accelerated  as  hereinafter  provided or as otherwise
provided in the Loan Agreement,  the principal sum outstanding  shall be payable
in installments of $16,666.67 of principal per month payable on the first day of
each calendar month  commencing with the month of August,  1997 and on the first
day of each succeeding month until this Note is fully paid except that the final
payment of principal,  if not sooner paid, shall be due on July 1, 1998. Accrued
interest  shall be paid on the  first day of the  month  following  the month in
which the  first dis  bursement  evidenced  by this Note is made  under the Loan
Agreement and  thereafter on the first day of each  succeeding  month until this
Note is fully paid,  except that the final  payment of  interest,  if not sooner
paid,  shall be due on July 1, 1998.  If an Event of Default  (as defined in the
Loan Agreement) shall occur, the outstanding principal of and accrued and unpaid
interest on this Note shall  become  immediately  due and payable as provided in
the Loan Agreement without notice.

                  All payments on account of the indebtedness  evidenced by this
Note (other than required  prepayments which shall be applied as provided in the
Loan  Agreement and optional  prepayments  which shall be applied as provided in
this  Note)  shall be  applied  first to accrued  and  unpaid  interest  and the
remainder  to  principal.  Payments on this Note shall be made at the offices of
the Bank or at such other office as the legal holder of this Note may, from time
to time, designate in writing.

                  Notwithstanding anything to the contrary contained herein, the
undersigned  agrees to pay a late charge of five  percent  (5%) of the amount of
any monthly installment received more than 10 days after the installment is due.
Late charges shall be due and payable on the due date of the next installment of
principal or interest, together with the regular installment then due.

                  Upon and  after the  occurrence  of an Event of  Default,  the
undersigned  shall pay interest at the rate (the "Default Rate") of four percent
(4%) per annum  over the  Bank's  Prime  Rate  then in  effect,  which  shall be
adjusted daily when and as the Bank's Prime Rate changes.

                  Except as otherwise provided in the Loan Agreement,  this Note
may be prepaid in whole or in part without premium or penalty at any time at the
option of the  undersigned in accordance  with the Loan  Agreement.  Any partial
prepayment  made at the option of the  undersigned  shall be applied against the
principal  amount  outstanding  and  shall  not  postpone  the  due  date of any
subsequent  monthly  installment or change the amount of such installment unless
the Bank shall otherwise agree in writing.

                                Fourth Term Note
                                    Page Two

                  This  Note  is  secured  by  the  Loan   Agreement  and  other
documents,  agreements,  and instruments executed by the Borrower.  This Note is
made and delivered  pursuant to the Loan Agreement and is subject to the further
terms and  conditions  thereof,  including the right of the holder to accelerate
payment of the  principal  of and accrued  and unpaid  interest on this Note and
other  remedies  upon the  occurrence  of an Event of Default,  all of which are
hereby incorporated and made a part of this Note by reference.

                  Any waiver of any payment due  hereunder or the  acceptance by
the Bank of partial payments hereunder shall not, at any other time, be taken to
be a  waiver  of the  terms  of this  Note or the Loan  Agreement  or any  other
agreement between the Borrower and the Bank.

                  The makers, sureties,  guarantors, and endorsers of this Note,
if any,  jointly and severally hereby waive notice of and consent to any and all
extensions  of this Note or any part  thereof  without  notice,  and each hereby
waives demand,  presentment for payment,  notice of nonpayment,  and protest and
any and all  notice of  whatever  kind or  nature  and the  exhaustion  of legal
remedies  herein,  or any  release  of  liability  or any other  indulgences  or
forbearances whatsoever,  without releasing or in any way affecting the personal
liability of any other party hereunder.

                  This Note  shall be the joint and  several  obligation  of all
makers,  sureties,  guarantors,  and  endorsers  and shall be binding upon them,
their heirs, personal representatives, and assigns.

                  In the event the holder of this Note shall  refer this Note to
an attorney for collection, the undersigned agrees to pay, in addition to unpaid
principal and interest,  all of the costs and expenses incurred in attempting or
effecting collection,  including reasonable attorneys' fees, whether or not suit
is instituted.

                  IN WITNESS WHEREOF,  the undersigned has executed this Note as
of the date first written above.

Attest:                                           CTI Industries Corporation

/s/ Howard W. Schwan                            BY:  /s/ John H. Schwan
- --------------------                                --------------------
    Howard W. Schwan                                     John H. Schwan
     Vice President                                Chief Executive Officer 

Basic Info X:

Name: FOURTH TERM NOTE
Type: Fourth Term Note
Date: July 24, 1997
Company: CTI INDUSTRIES CORP
State: Illinois

Other info:

Date:

  • July 1 , 1997
  • August 19 , 1996
  • August , 1997
  • July 1 , 1998

Organization:

  • Elk Grove Village
  • First American Bank
  • Bank 's Prime Rate
  • CTI Industries Corporation

Location:

  • Illinois
  • Delaware

Money:

  • $ 200,000.00
  • $ 16,666.67

Person:

  • Howard W. Schwan John H. Schwan

Percent:

  • one percent 1 %
  • five percent 5 %
  • four percent
  • 4 %