FIRST AMENDMENT TO SECOND TERM NOTE Loan No. 600804665-56

                                                                   Exhibit 10.17


                       FIRST AMENDMENT TO SECOND TERM NOTE
                              Loan No. 600804665-56


         The undersigned,  CTI Industries  Corporation,  a Delaware  corporation
(the  "Borrower"),  hereby agrees with First American Bank, an Illinois  banking
corporation (the "Bank"),  that the Second Term Note dated August 22, 1996, made
by the  Borrower  payable  to the  order of the Bank in the  original  principal
amount of $2,200,000.00 (the "Note"), shall be and hereby is amended as follows:

         Notwithstanding any contrary provision of the Note:

                  1. Commencing May 1, 1998 until maturity, the rate of interest
         on  the  Note  shall  be  amended  from  a  rate  equal  to  eight  and
         three-quarters  percent  (8.75%) per annum to a rate equal to eight and
         one-quarter percent (8.25%) per annum.

         All references in the Note to this "Note" or the like,  shall be deemed
to be references to the Note as amended by this Amendment.

         The Borrower  hereby  authorizes  the Lender to affix this Amendment to
the Note. Except as herein amended, the Note is ratified and confirmed and shall
remain in full force and effect in accordance with its terms.

         IN WITNESS WHEREOF,  the undersigned has executed this Amendment to the
Note this 1st day of May, 1998.

                                               CTI INDUSTRIES CORPORATION


                                               By:_______________________  
                                                  Xxxxxxx X. Xxxxxxx,
                                                  Chief Executive Officer

Agreed to as of this 1st day of May, 1998.

First American Bank


By:_______________________                           
   Xxxxxx X. Xxxxxxx,
   Exec. Vice President