<PAGE>   1
                                                                  EXHIBIT 10.2.1

                              EXTENSION OF TERM AND
                      FURTHER AMENDMENT TO LEASE AGREEMENT

This document is enter into by and between Paul Katzeff and Joan Katzeff,
husband and wife (hereinafter referred to as "Lessor") and Thanksgiving Coffee
Company, Inc. (hereinafter referred to as "Lessee") who agree as follows:

1. Lessee entered into a written Commercial Lease Agreement dated March 1, 1986
with Lessor's predecessor in title, Sun Terminals, for certain improved premises
located on the waterfront on the southerly side of Noyo Harbor on South Harbor
Drive, Fort Bragg, California (hereinafter referred to as the "Waterfront
Premises"). The terms of the Waterfront Premises Lease was amended in 1987, 1988
and last in May of 1989.

2. Lessee also entered into a written Commercial Lease and Deposit Receipt dated
November 1, 1987 with Lessor for improved premises located at 19100 S. Noyo
Harbor Drive, Fort Bragg, California (hereinafter referred to as the "Main
Facilities"). By reason of the exercise of options and the renegotiation of
terms in connection therewith, said Main Facilities Premises Lease has been
extended to the present.

3. Lessee is currently paying $5,000 per month for the use and occupancy of the
entire Main Facilities Premises and for a specifically designated 25% of the
Waterfront Premises, both on a triple net basis for each entire building.

4. The parties acknowledge that Lessee has paid the rent timely and fully and is
otherwise in full compliance with the terms of both of the Leases described
above through March 31, 1992. The parties acknowledge that the current monthly
rent is $5,000.

5. Lessor has recently acquired certain additional real property improvements
primarily consisting of a building suitable as a shipping facility for Lessee's
use which Lessee desires to lease (hereinafter referred to as the "Shipping
Facility"), while concurrently adjusting Lessee's obligations for its use of the
25% of the Waterfront Premises which it is presently using.

6. Now the parties desire to modify, coordinate set forth their revised and
mutual arrangements for the lease, use and payment of rentals for the Waterfront
Premises, the Main Facilities Premises and the Shipping Facility Premises, as
follows.

A. Effective as of April 1, 1992 Lessee shall have the use of the entire Main
Facilities Premises and the neighboring Shipping Facility Premises and of the
specified 25% of the Waterfront Premises ("The Premises").

B. Lessee shall pay $5,000 each month for the Main Facilities Premises and the
neighboring Shipping Facility Premises and $1,000 for the Waterfront Premises,
for a total of $6,000 for the Premises which shall be due on the first day of
each month, and late on the 10th.

C. In addition, Lessee shall be responsible for and shall pay all taxes,
insurance, maintenance and costs of occupation and use of the Main Facilities
Premises, Shipping Facility Premises and Waterfront Premises so as to achieve a
"triple net lease" specifically including, but not limited to all items on the
secured real property tax bill, all charges for


<PAGE>   2
utilities and other services provided to or used on the Main Facilities
Premises, Shipping Facility Premises and Waterfront Premises, all premiums for
casualty and extended coverage insurance on the improvements located on the Main
Facilities Premises, Shipping Facility Premises and Waterfront Premises, all
costs for maintenance, repairs and supplies required during the term, excepting
those for the roof, foundation, and structural elements of the improvements,
which shall remain and continue as Lessors' responsibility. If Lessee fails to
pay any such item timely, Lessor may pay same and Lessee shall immediately
reimburse Lessor the amount paid, including any penalties, as an additional rent
due hereunder.

7. The parties now agree to extend the term of the Leases for an additional
three years to March 31, 1995 on all of the same terms and conditions as are
presently set forth in the two Lease documents, except as modified hereby.

8. This document constitutes an extension of and an amendment to the existing
Waterfront Premises Lease and Main Facilities Premises Lease between Lessor and
Lessee as previously amended. To the extent that it specifically conflicts with
the provisions of said Leases, the provisions hereof shall control. In all other
respects, the Leases shall continue in full force and effect during the extended
term. This document, when read together with said Leases and all prior
amendments constitutes the entire agreement between Lessor and Lessee. All
modifications hereto must be in writing and signed by the party or parties to be
charged.

Dated: April 1, 1992

              LESSOR:                                       /s/Paul Katzeff
                                                       --------------------
                                                               Paul Katzeff

                                                            /s/Joan Katzeff
                                                       --------------------
                                                               Joan Katzeff

              LESSEE:                          Thanksgiving Coffee Company,
                                             Inc., a California Corporation

                                                        by: /s/Joan Katzeff
                                                       --------------------
                                                    Joan Katzeff, President