Exhibit 10.i.

                             Business Loan Agreement dated 
                     as of September 5, 1995 by and between Company
               and Wells Fargo Bank, N.A., as amended on August 11, 1997.


                               BUSINESS LOAN AGREEMENT


             Principal           Loan Date        Maturity         Loan No.
            $450,000.00         09-05-1995       09-10-1996       SJ01977671

        Call     Collateral       Account          Officer         Initials
                    824         7732628502           WHH

       References in the shaded area are for Lender's use only and do not limit
          the applicability of this document to any particular loan or item.

     Borrower:  THANKSGIVING COFFEE             Lender:  Wells Fargo Bank,
		COMPANY, INC.                            National Association
		P. O. BOX 1918			         Business Loan Division
		FORT BRAGG, CA  95437-1918               84 W. Santa Clara St.
						         0552-023
							 San Jose, CA  96113
     ___________________________________________________________________________

     THIS BUSINESS LOAN AGREEMENT between THANKSGIVING COFFEE COMPANY, INC.
     ("Borrower") and Wells Fargo Bank, National Association ("Lender") is made
     and executed on the following terms and conditions.  Borrower has received
     prior commercial loans from Lender or has applied to Lender for a
     commercial loan or loans and other financial accommodations, including
     those which may be described on any exhibit or schedule attached to this
     Agreement.  All such loans and financial accommodations, together with all
     future loans and financial accommodations from Lender to Borrower, are
     referred to in this Agreement individually as the "Loan" and collectively
     as the "Loans."  Borrower understands and agrees that:  (a) in granting,
     renewing, or extending any Loan, Lender is relying upon Borrower's
     representations, warranties, and agreements, as set forth in this
     Agreement; (b) the granting, renewing, or extending of any Loan by Lender
     at all times shall be subject to Lender's sole judgment and discretion; and
     (c) all such Loans shall be and shall remain subject to the following terms
     and conditions of this Agreement.

     TERM.  This Agreement shall be effective as of September 5, 1995, and shall
     continue thereafter until all indebtedness of Borrower to Lender has been
     performed in full and the parties terminate this Agreement in writing.

     DEFINITIONS.  The following words shall have the following meanings when
     used in this Agreement.  Terms not otherwise defined in this Agreement
     shall have the meanings attributed to such terms in the Uniform Commercial
     Code.  All references to dollar amounts shall mean amounts in lawful money
     of the United States of America.

          Agreement.  The word "Agreement" means this Business Loan Agreement,
          as this Business Loan Agreement may be amended or modified from time
          to time, together with all exhibits and schedules attached to this
          Business Loan Agreement from time to time.<PAGE>






          Borrower.  The word "Borrower" means THANKSGIVING COFFEE COMPANY,
          INC. The word "Borrower" also includes, as applicable, all
          subsidiaries and affiliates of Borrower as provided below in the
          paragraph titled"Subsidiaries and Affiliates."

          CERCLA.  The word "CERCLA" means the Comprehensive Environmental
          Response, Compensation, and Liability Act of 1980, as amended.

          Collateral.  The word "Collateral" means and includes without
          limitation all property and assets granted as collateral security for
          a Loan, whether real or personal property, whether granted directly or
          indirectly, whether granted now or in the future, and whether granted
          in the form of a security interest, mortgage, deed of trust,
          assignment, pledge, chattel mortgage, chattel trust, factor's lien,
          equipment trust, conditional sale, trust receipt, lien, charge, lien
          or title retention contract, lease or consignment intended as a
          security device, or any other security or lien interest whatsoever,
          whether created by law, contract, or otherwise.

          ERISA.  The word "ERISA" means the Employee Retirement Income Security
          Act of 1974, as amended.

          Event of Default.  The words "Event of Default" mean and include
          without limitation any of the Events of Default set forth below in the
          section titled "EVENTS OF DEFAULT."

          Grantor.  The word "Grantor" means and includes without limitation
          each and all of the persons or entities granting a security interest
          in any Collateral for the indebtedness, including without limitation
          all Borrowers granting such a Security Interest.

          Guarantor.  The word "Guarantor" means and includes without limitation
          each and all of the guarantors, sureties, and accommodation parties in
          connection with any Indebtedness.

          Indebtedness.  The word "Indebtedness" means and includes without
          limitation all Loans, together with all other obligations, debts and
          liabilities of Borrower to Lender, or any one or more of them, as well
          as all claims by Lender against Borrower, or any one of more of them;
          whether now or hereafter existing, voluntary or involuntary, due or
          not due, absolute or contingent, liquidated or unliquidated; whether
          Borrower may be liable individually or jointly with others; whether
          Borrower may be obligated as a guarantor, surety, or otherwise;
          whether recovery upon such Indebtedness may be or hereafter may become
          barred by any statute of limitations; and whether such Indebtedness
          may be or hereafter may become otherwise unenforceable.

          Lender.  The word "Lender" means Wells Fargo Bank, National
          Association, its successors and assigns.

          Loan.  The word "Loan" or "Loans" means and includes without
          limitation any and all commercial loans and financial accommodations<PAGE>






          from Lender to Borrower, whether now or hereafter existing, and
          however evidenced, including without limitation those loans and
          financial accommodations described herein or described on any exhibit
          or schedule attached to this Agreement from time to time.

          Note.  The word "Note" means and includes without limitation
          Borrower's promissory note or notes, if any, evidencing Borrower's
          Loan obligations in favor of Lender, as well as any substitute,
          replacement or refinancing note or notes therefore.

          Related Documents.  The words "Related Documents" mean and include
          without limitation all promissory notes, credit agreements, loan
          agreements, environmental agreements, guaranties, security agreements,
          mortgages, deeds of trust, and all other instruments, agreements and
          documents, whether now or hereafter existing, executed in connection
          with the Indebtedness.

          Security Agreement.  The words "Security Agreement" mean and include
          without limitation any agreements, promises, covenants, arrangements,
          understandings or other agreements, whether created by law, contract,
          or otherwise, evidencing, governing, representing, or creating a
          Security Interest.

          Security Interest.  The words "Security Interest" mean and include
          without limitation any type of collateral security, whether in the
          form of a lien, charge, mortgage, dead of trust, assignment, pledge,
          chattel mortgage, chattel trust, factor's lien, equipment trust,
          conditional sale, trust receipt, lien or title retention contract,
          lease or consignment intended as a security device, or any other
          security or lien interest whatsoever, whether created by law,
          contract, or otherwise.

          SARA.  The word "SARA" means the Superfund Amendments and
          Reauthorization Act of 1986 as now or hereafter amended.

     REPRESENTATIONS AND WARRANTIES.  Borrower represents and warrants to Lender
     as of the date of this Agreement and as of the date of each disbursement of
     Loan proceeds:

          Organization.  Borrower is a corporation which is duly organized,
          validly existing, and in good standing under the laws of the State of
          California.  Borrower has the full power and authority to own its
          properties and to transact the businesses in which it is presently
          engaged or presently proposes to engage.  Borrower also is duly
          qualified as a foreign corporation and is in good standing in all
          states in which the failure to so qualify would have a material
          adverse effect on its businesses or financial condition.

          Authorization.  The execution, delivery, and performance of this
          Agreement and all Related Documents by Borrower, to the extent to be
          executed, delivered or performed by Borrower, have been duly
          authorized by all necessary action by Borrower; do not require the<PAGE>






          consent or approval of any other person, regulatory authority or
          governmental body, and do not conflict with, result in a violation of,
          or constitute a default under (a) any provision of its articles of
          incorporation or organization, or bylaws, or any agreement or other
          instrument binding upon Borrower or (b) any law, governmental
          regulation, court decree, or order applicable to Borrower.

          Financial Information.  Each financial statement of Borrower supplied
          to Lender truly and completely disclosed Borrower's financial
          condition as of the date of the statement, and there has been no
          material adverse change in Borrower's financial condition subsequent
          to the date of the most recent financial statement supplied to
          Lender.  Borrower has no material contingent obligations except as
          disclosed in such financial statements.

          Legal Effect.  This Agreement constitutes, and any instrument or
          agreement required hereunder to be given by Borrower when delivered
          will constitute, legal, valid and binding obligations of Borrower
          enforceable against Borrower in accordance with their respective
          terms.

          Properties.  Except as contemplated by this Agreement or as previously
          disclosed in Borrower's financial statements or in writing to Lender
          and as accepted by Lender, and except for property tax liens for taxes
          not presently due and payable, Borrower owns and has good title to all
          of Borrower's properties free and clear of all Security Interests, and
          has not executed any security documents or financing statements
          relating to such properties.  All of Borrower's properties are titled
          in Borrower's legal name, and Borrower has not used, or filed a
          financing statement under, any other name for at least the last five
          (5) years.

          Hazardous Substances.  The terms "hazardous waste," "hazardous
          substance," "disposal," "release," and "threatened release," as used
          in this Agreement, shall have the same meanings as set forth in the
          "CERCLA," "SARA," the Hazardous Materials Transportation Act, 49
          U.S.C. Section 1801, et seq., the Resource Conservation and Recovery
          Act, 49 U.S.C. Section 6901, et seq., Chapters 6.6 through 7.7 of
          Division 20 of the California Health and Safety Code, Section 25100,
          et seq., or other applicable state or Federal laws, rules, or
          regulations adopted pursuant to any of the foregoing.  Except as
          disclosed to and acknowledged by Lender in writing, Borrower
          represents and warrants that:  (a) During the period of Borrower's
          ownership of the properties, there has been no use, generation,
          manufacture, storage, treatment, disposal, release or threatened
          release of any hazardous waste or substance by any person on, under,
          or about any of the properties. (b) Borrower has no knowledge of, or
          reason to believe that there has been (i) any use, generation,
          manufacture, storage, treatment, disposal, release, or threatened
          release of any hazardous waste or substances by any prior owners or
          occupants of any of the properties, or (ii) any actual or threatened
          litigation or claims of any kind by any person relating to such<PAGE>






          matters.  (c) Neither Borrower nor any tenant, contractor, agent or
          other authorized user of any of the properties shall use, generate,
          manufacture, store, treat, dispose of, or release any hazardous waste
          or substance on, under, or about any of the properties; and any such
          activity shall be conducted in compliance with all applicable federal,
          state, and local laws, regulations, and ordinances, including without
          limitation those laws, regulations and ordinances described above. 
          Borrower authorizes Lender and its agents to enter upon the properties
          to make such inspections and tests as Lender may deem appropriate to
          determine compliance of the properties with this section of the
          Agreement.  Any inspections or tests made by Lender shall be at
          Borrower's expense and for Lender's purposes only and shall not be
          construed to create any responsibility or liability on the part of
          Lender to Borrower or to any other persons.  The representations and
          warranties contained herein are based on Borrower's due diligence in
          investigating the properties for hazardous waste.  Borrower hereby
          (a) releases and waives any future claims against Lender for indemnity
          or contribution in the event Borrower becomes liable for cleanup or
          other costs under any such laws, and (b) agrees to indemnify and hold
          harmless Lender against any and all claims, losses, liabilities,
          damages, penalties, and expenses which Lender may directly or
          indirectly sustain or suffer resulting from a breach of this section
          of the Agreement or as a consequence of any use, generation,
          manufacture, storage, disposal, release or threatened release
          occurring prior to Borrower's ownership or interest in the properties,
          whether or not the same was or should have been known to Borrower. 
          The provisions of this section of the Agreement, including the
          obligation to indemnify, shall survive the payment of the Indebtedness
          and the termination or expiration of this Agreement and shall not be
          affected by Lender's acquisition of any interest in any of the
          properties, whether by foreclosure or otherwise.

          Litigation and Claims.  No litigation, claim, investigation,
          administrative proceeding or similar action (including those for
          unpaid taxes) against Borrower is pending or threatened, and no other
          event has occurred which may materially adversely effect Borrower's
          financial condition or properties, other than litigation, claims, or
          other events, if any, that have been disclosed to and acknowledged by
          Lender in writing.

          Taxes.  To the best of Borrower's knowledge, all tax returns and
          reports of Borrower that are or were required to be filed, have been
          filed, and all taxes, assessments and other governmental charges have
          been paid in full, except those presently being or to be contested by
          Borrower in good faith in the ordinary course of business and for
          which adequate reserves have been provided.

          Lien Priority.  Unless otherwise previously disclosed to Lender in
          writing, Borrower has not entered into or granted any Security
          Agreements, or permitted the filing or attachment of any Security
          Interests on or affecting any of the Collateral directly or indirectly
          securing repayment of Borrower's Loan and Note, that would be prior or
<PAGE>






          that may in any way be superior to Lender's Security Interests and
          rights in and to such Collateral.

          Binding Effect.  This Agreement, the Note and all Security Agreements
          directly or indirectly securing repayment of Borrower's Loan and Note
          are binding upon Borrower as well as upon Borrower's successors,
          representatives and assigns, and are legally enforceable in accordance
          with their respective terms.

          Commercial Purposes.  Borrower intends to use the Loan proceeds solely
          for business or commercial related purposes.

          Employee Benefit Plans.  Each employee benefit plan as to which
          Borrower may have any liability complies in all material respects with
          all applicable requirements of law and regulations, and (i) no
          Reportable Event nor Prohibited Transaction (as defined in ERISA) has
          occurred with respect to any such plan, (ii) Borrower has not
          withdrawn from any said plan or initiated steps to do so, and (iii) no
          steps have been taken to terminate any such plan.

          Location of Borrower's Offices and Records.  The chief place of
          business of Borrower and the office or offices where Borrower keeps
          its records concerning the Collateral is located at P.0. BOX 1918,
          FORT BRAGG, CA  95437-1918.

          Information.  All information heretofore or contemporaneously herewith
          furnished by Borrower to Lender for the purposes of or in connection
          with this Agreement or any transaction contemplated hereby is, and all
          information hereafter furnished by or on behalf of Borrower to Lender
          will be, true and accurate in every material respect on the date as of
          which such information is dated or certified; and none of such
          information is or will be incomplete by omitting to state any material
          fact necessary to make such information not misleading.

          Survival of Representation and Warranties.  Borrower understands and
          agrees that Lender is relying upon the above representations and
          warranties in extending Loan Advances to Borrower.  Borrower further
          agrees that the foregoing representations and warranties shall be
          continuing in nature and shall remain in full force and affect until
          such time as Borrower's Loan and Note shall be paid in full, or until
          this Agreement shall be terminated in the manner provided above,
          whichever is the last to occur.

     AFFIRMATIVE COVENANTS.  Borrower covenants and agrees with Lender that,
     while this Agreement is in effect, Borrower will:

          Litigation.  Promptly inform Lender in writing of (a) all material
          adverse changes in Borrower's financial condition, and (b) all
          litigation and claims and all threatened litigation and claims
          affecting Borrower or any Guarantor which could materially affect the
          financial condition of Borrower or the financial condition of any
          Guarantor.<PAGE>






          Financial Records.  Maintain its books and records in accordance with
          generally accepted accounting principles, applied on a consistent
          basis, and permit Lender to examine and audit Borrower's books and
          records at all reasonable times.

          Additional Information.  Furnish such additional information and
          statements, lists of assets and liabilities, agings of receivables and
          payables, inventory schedules, budgets, forecasts, tax returns, and
          other reports with, respect to Borrower's financial condition and
          business operations as Lender may request from time to time.

          Insurance.  Maintain fire and other risk insurance, public liability
          insurance, and such other insurance as Lender may require with respect
          to Borrower's properties and operations, in form, amounts, coverages
          and with insurance companies reasonably acceptable to Lender. 
          Borrower, upon request of Lender, will deliver to Lender from time to
          time the policies or certificates of insurance in form satisfactory to
          Lender, including stipulations that coverages will not be cancelled or
          diminished without at least ten (10) days' prior written notice to
          Lender.  Each insurance policy also shall include an endorsement
          providing that coverage in favor of Lender will not be impaired in any
          way by any act, omission or default of Borrower or any other person. 
          In connection with all policies covering assets in which Lender holds
          or is offered a security interest for the Loans, Borrower will provide
          Lender with such loss payable or other endorsements as Lender may
          require.

          Insurance Reports.  Furnish to Lender, upon request of Lender, reports
          on each existing insurance policy showing such information as Lender
          may reasonably request, including without limitation the following: 
          (a) the name of the insurer; (b) the risks insured; (c) the amount of
          the policy; (d) the properties insured; (e) the then current property
          values on the basis of which insurance has been obtained, and the
          manner of determining those values; and (f) the expiration date of the
          policy.  In addition, upon request of Lender (however not more often
          than annually), Borrower will have an independent appraiser
          satisfactory to Lender determine, as applicable, the actual cash value
          or replacement cost of any Collateral.

          Guaranties.  Prior to disbursement of any Loan proceeds, furnish
          executed guaranties of the Loans in favor of Lender, on Lenders forms,
          and in the amounts and by the guarantors named below:

                    Guarantors                              Amounts

                    JOAN KATZEFF                       $649,999.96
                    PAUL KATZEFF                       $649,999.96


          Other Agreements.  Comply with all terms and conditions of all other
          agreements, whether now or hereafter existing, between Borrower and<PAGE>






          any other party and notify Lender immediately in writing of any
          default in connection with any other such agreements.

          Loan Proceeds.  Use all Loan proceeds solely for Borrower's business
          operations, unless specifically consented to the contrary by Lender in
          writing.

          Taxes, Charges and Liens.  Pay and discharge when due all of its
          Indebtedness and obligations, including without limitation all
          assessments, taxes, governmental charges, levies and liens, of every
          kind and nature, imposed upon Borrower or its properties, income, or
          profits, prior to the date on which penalties would attach, and all
          lawful claims that, if unpaid, might become a lien or charge upon any
          of Borrower's properties, income, or profits.  Provided however,
          Borrower will not be required to pay and discharge any such
          assessment, tax, charge, levy, lien or claim so long as (a) the
          legality of the same shall be contested in good faith by appropriate
          proceedings, and (b) Borrower shall have established on its books
          adequate reserves with respect to such contested assessment, tax,
          charge, levy, lien, or claim in accordance with generally accepted
          accounting practices.  Borrower, upon demand of Lender, will furnish
          to Lender evidence of payment of the assessments, taxes, charges,
          levies, liens and claims and will authorize the appropriate
          governmental official to deliver to Lender at any time a written
          statement of any assessments, taxes, charges, levies, liens and claims
          against Borrower's properties, income, or profits.

          Performance.  Perform and comply with all terms, conditions, and
          provisions set forth in this Agreement and in all other instruments
          and agreements between Borrower and Lender in a timely manner, and
          promptly notify Lender if Borrower learns of the occurrence of any
          event which constitutes an Event of Default under this Agreement.

          Operations.  Substantially maintain its present executive and
          management personnel; conduct its business affairs in a reasonable and
          prudent manner and in compliance with all applicable federal, state
          and municipal laws, ordinances, rules and regulations respecting its
          properties, charters, businesses and operations, including without
          limitation, compliance with the Americans With Disabilities Act and
          with all minimum funding standards and other requirements of ERISA and
          other laws applicable to Borrower's employee benefit plans.

          Inspection.  Permit employees or agents of Lender at any reasonable
          time to inspect any and all Collateral for the Loan or Loans and
          Borrower's other properties and to examine or audit Borrower's books,
          accounts, and records and to make copies and memoranda of Borrower's
          books, accounts, and records.  If Borrower now or at any time
          hereafter maintains any records (including without limitation computer
          generated records and computer software programs for the generation of
          such records) in the possession of a third party, Borrower, upon
          request of Lender, shall notify such party to permit Lender free<PAGE>






          access to such records at all reasonable times and to provide Lender
          with copies of any records it may request, all at Borrower's expense.

          Environmental Compliance and Reports.  Borrower shall comply in all
          respects with all environmental protection federal, state and local
          laws, statutes, regulations and ordinances; not cause or permit to
          exist, as a result of an intentional or unintentional action or
          omission on its part or on the part of any third party, on property
          owned and/or occupied by Borrower, any environmental activity where
          damage may result to the environment, unless such environmental
          activity is pursuant to and in compliance with the conditions of a
          permit issued by the appropriate federal, state or local governmental
          authorities; shall furnish to Lender promptly and in any event within
          thirty (30) days after receipt thereof a copy of any notice, summons,
          lien, citation, directive, letter or other communication from any
          governmental agency or instrumentality concerning any intentional or
          unintentional action or omission on Borrower's part in connection with
          any environmental activity whether or not there is damage to the
          environment and/or other natural resources.

          Additional Assurances.  Make, execute and deliver to Lender such
          promissory notes, mortgages, deeds of trust, security agreements,
          financing statements, instruments, documents and other agreements as
          Lender or its attorneys may reasonably request to evidence and secure
          the Loans and to perfect all Security Interests.

     NEGATIVE COVENANTS.  Borrower covenants and agrees with Lender that while
     this Agreement is in effect, Borrower shall not, without the prior written
     consent of Lender:

          Indebtedness and Liens.  (a) Except for trade debt incurred in the
          normal course of business and indebtedness to Lender contemplated by
          this Agreement, create, incur or assume indebtedness for borrowed
          money, including capital leases, (b) sell, transfer, mortgage, assign,
          pledge, lease, grant a security interest in, or encumber any of
          Borrower's assets, or (c) sell with recourse any of Borrower's
          accounts, except to Lender.

          Continuity of Operations.  (a) Engage in any business activities
          substantially different than those in which Borrower is presently
          engaged, (b) cease operations, liquidate, merge, transfer, acquire or
          consolidate with any other entity, change ownership, dissolve or
          transfer or sell Collateral out of the ordinary course of business,
          (c) pay any dividends on Borrower's stock (other than dividends
          payable in its stock), provided, however that notwithstanding the
          foregoing, but only so long as no Event of Default has occurred and is
          continuing or would result from the payment of dividends, if Borrower
          is a "Subchapter S Corporation" (as defined in the Internal Revenue
          Code of 1986, as amended), Borrower may pay cash dividends on its
          stock to its shareholders from time to time in amounts necessary to
          enable the shareholders to pay income taxes and make estimated income
          tax payments to satisfy their liabilities under federal and state law<PAGE>






          which arise solely from their status as Shareholders of a Subchapter S
          Corporation because of their ownership of shares of stock of Borrower,
          or (d) purchase or retire any of Borrower's outstanding shares of
          alter or amend Borrower's capital structure.

          Loans, Acquisitions and Guaranties.  (a) Loan, invest in or advance
          money or assets, (b) purchase, create or acquire any interest in any
          other enterprise or entity, or (c) incur any obligation as surely or
          guarantor other than in the ordinary course of business.

     CESSATION OF ADVANCES.  If Lender has made any commitment to make any Loan
     to Borrower, whether under this Agreement or under any other agreement,
     Lender shall have no obligation to make Loan Advances or to disburse Loan
     proceeds if:  (a) Borrower or any Guarantor is in default under the terms
     of this Agreement or any of the Related Documents or any other agreement
     that Borrower or any Guarantor has with Lender; (b) Borrower becomes
     insolvent, files a petition in bankruptcy or similar proceedings, or is
     adjudged a bankrupt; (c) there occurs a material adverse change in
     Borrower's financial condition, in the financial condition of any
     Guarantor, or in the value of any Collateral securing any Loan; (d) any
     Guarantor seeks, claims of otherwise attempts to limit, modify or revoke
     such Guarantor's guaranty of the Loan or any other loan with Lender; or
     (e) Lender in good faith deems itself insecure, even though no Event of
     Default shall have occurred.

     FINANCIAL INFORMATION.  So long as the Loan remains available or any
     indebtedness of Borrower to Lender under the Loan remains outstanding,
     Borrower shall provide to Lender each of the following, in form and detail
     satisfactory to Lender:

     (a)  not later than one hundred twenty (120) days after and as of the end
     of each of Borrower's fiscal years, (i) a reviewed or audited financial
     statement of Borrower, prepared by an independent certified public
     accountant, to include balance sheet, income statement and reconciliation
     of net worth, or (ii) if Borrower's annual financial statement is not a
     reviewed or audited financial statement prepared by an independent
     certified public accountant, a financial statement prepared by Borrower or
     other party satisfactory to Lender, to include the same exhibits as
     required in (i), and complete copies of Borrower's filed federal and state
     income tax returns for such fiscal year;

     (b)  not later than one hundred twenty (120) days after and as of the end
     of each fiscal year of each guarantor of the Loan, and if Borrower is a
     partnership, of each general partner a financial statement from each
     guarantor and/or general partner, together with complete copies of each
     such guarantor's and/or general partner's filed federal and state income
     tax returns for such fiscal year; and

     (c)  from time to time such current financial and other information as
     Lender may reasonably request.<PAGE>






     ADDITIONAL EVENTS OF DEFAULT.  In addition to the Events of Default
     described below, it shall be an Event of Default; (a) upon the resignation
     or expulsion of any general partner with an ownership interest of twenty-
     five percent (25%) or more in any Borrower which is a partnership or (b) if
     Borrower or any general partner in Borrower is generally not paying its
     debts as they become due.

     DEPOSIT ACCOUNTS.  Borrower grants to Lender a contractual possessory
     security interest in, and hereby assigns, conveys, delivers, pledges, and
     transfers to Lender all Borrower's right, title and interest in and to,
     Borrower's accounts with Lender (whether checking, savings, or some other
     account), including without limitation all accounts held jointly with
     someone else and all accounts Borrower may open in the future, excluding
     however all IRA, Keogh, and trust accounts.

     EVENTS OF DEFAULT.  Each of the following shall constitute an Event of
     Default under this Agreement:

          Default of Indebtedness.  Failure of Borrower to make any payment when
          due on the Loans.

          Other Defaults.  Failure of Borrower or any Grantor to comply with or
          to perform when due any other term, obligation, covenant or condition
          contained in this Agreement or in any of the Related Documents, or
          failure of Borrower to comply with or to perform any other term,
          obligation, covenant or condition contained in any other agreement
          between Lender and Borrower.

          Default in Favor of Third Parties.  Should Borrower or any Grantor
          default under any loan, extension of credit, security agreement,
          purchase or sales agreement, or any other agreement, in favor of any
          other creditor or person that may materially affect any of Borrower's
          property or Borrower's or any Grantor's ability to repay the Loans or
          perform their respective obligations under this Agreement or any of
          the Related Documents.

          False Statements.  Any warranty, representation or statement made or
          furnished to Lender by or on behalf of Borrower or any Grantor under
          this Agreement or the Related Documents is false or misleading in any
          material respect, either now or at the time made or furnished.

          Defective Collateralization.  This Agreement or any of the Related
          Documents ceases to be in full force and effect (including failure of
          any Security Agreement to create a valid and perfected Security
          Interest) at any time and for any reason.

          Insolvency.  The dissolution or termination of Borrower's existence as
          a going business, the insolvency of Borrower, the appointment of a
          receiver for any part of Borrower's property, any assignment for the
          benefit of creditors, any type of creditor workout, or the
          commencement of any proceeding under any bankruptcy or insolvency laws
          by or against Borrower.<PAGE>






          Creditor or Foreclosure Proceedings.  Commencement of foreclosure or
          forfeiture proceedings, whether by judicial proceeding, self-help,
          repossession or any other method, by any creditor of Borrower, any
          creditor of any Grantor against any collateral securing the
          Indebtedness, or by any governmental agency.  This includes a
          garnishment, attachment, or levy on or of any of Borrower's deposit
          accounts with Lender.

          Events Affecting Guarantor.  Any of the preceding events occurs with
          respect to any Guarantor of any of the Indebtedness or such Guarantor
          dies or becomes incompetent or any Guarantor revokes any guaranty of
          the Indebtedness.

          Change In Ownership.  Any change in ownership of twenty-five percent
          (25%) or more of the common stock of Borrower.

          Insecurity.  Lender, in good faith, deems itself insecure.

     EFFECT OF AN EVENT OF DEFAULT.  If any Event of Default shall occur, all
     commitments and obligations of Lender under this Agreement or the Related
     Documents or any other agreement immediately will terminate (including any
     obligation to make Loan Advances or disbursements), and, at Lender's
     option, all Loans immediately will become due and payable, all without
     notice of any kind to Borrower, except that in the case of an Event of
     Default of the type described in the "Insolvency" subsection above, such
     acceleration shall be automatic and not optional.

     MISCELLANEOUS PROVISIONS.  The following miscellaneous provisions are a
     part of this Agreement:

          Amendments. This Agreement, together with any Related Documents,
          constitutes the entire understanding and agreement of the parties as
          to the matters set forth in this Agreement.  No alteration of or
          amendment to this Agreement shall be effective unless given in writing
          and signed by the party or parties sought to be charged or bound by
          the alteration or amendment.

          Applicable Law.  This Agreement has been delivered to Lender and
          accepted by Lender in the State of California.  It there is a lawsuit,
          Borrower agrees upon Lender's request to submit to the jurisdiction of
          the courts of any County, the State of California.  This Agreement
          shall be governed by and construed in accordance with the laws of the
          State of California.

          Caption Headings.  Caption headings in this Agreement are for
          convenience purposes only and are not to be used to interpret or
          define the provisions of this Agreement.

          Multiple Parties; Corporate Authority.  All obligations of Borrower
          under this Agreement shall be joint and several, and all references to
          Borrower shall mean each and every Borrower.  This means that each of<PAGE>






          the persons signing below is responsible for all obligations in this
          Agreement.

          Consent to Loan Participation.  Borrower agrees and consents to
          Lender's sale or transfer, whether now or later, of one or more
          participation interests in the Loans to one of more purchasers,
          whether related or unrelated to Lender.  Lender may provide, without
          any limitation whatsoever, to any one or more purchasers, or potential
          purchasers, any information or knowledge Lender may have about
          Borrower or about any other matter relating to the Loan, and Borrower
          hereby waives any rights to privacy it may have with respect to such
          matters.  Borrower additionally waives any and all notices of sale of
          participation interests, as well as all notices of any repurchase of
          such participation interests.  Borrower also agrees that the
          purchasers of any such participation interests will be considered as
          the absolute owners of such interests in the Loans and will have all
          the rights granted under the participation agreement or agreements
          governing the sale of such participation interests.  Borrower further
          waives all rights of offset or counterclaim that it may have now or
          later against Lender or against any purchaser of such a participation
          interest and unconditionally agrees that either Lender or such
          purchaser may enforce Borrower's obligation under the Loans
          irrespective of the failure or insolvency of any holder of any
          interest in the Loans.  Borrower further agrees that the purchaser of
          any such participation interests may enforce its interests
          irrespective of any personal claims or defenses that Borrower may have
          against Lender.

          Alternative Dispute Resolution.  It is understood that, upon request
          of any party to this Agreement, any dispute, claim, or controversy of
          any kind, whether in contract or in tort, statutory or common law,
          legal or equitable now existing or hereafter arising between the
          parties, in any way arising out of, pertaining to or in connection
          with this Agreement, or any related agreements, documents, or
          instruments shall be resolved through a two-step dispute resolution
          process administered by Judicial Arbitration and Mediation Services,
          Inc. (JAMS) involving first, mediation before a retired judge from the
          JAMS panel followed, if necessary, by final and binding arbitration
          (conducted at a location determined by the arbitrator in a city
          located within 150 miles of the Borrower's business address)
          administered by and in accordance with the then existing JAMS' Rules
          or Practice and Procedure.  Judgment upon any award rendered by the
          arbitrator(s) may be entered by any state or federal court having
          jurisdiction thereof.  Borrower understands that by signing this
          Agreement, Borrower is giving up any rights Borrower might possess to
          have any dispute, claim, or controversy litigated in a court or jury
          trial.

          As soon as practicable after selection of the arbitrator, the
          arbitrator or his (her) designated representatives shall determine a
          reasonable estimate of anticipated fees and costs of the arbitrator,
          and render a statement to each party setting forth that party's pro-<PAGE>






          rata share of said fees and costs.  Thereafter, each party shall,
          within ten (1O) days of receipt of said statement, deposit said sum
          with the arbitrator.  Failure of any party to make such a deposit
          shall result in a forfeiture by the non-depositing party of the right
          to prosecute or defend the claim which is the subject of the
          arbitration, but shall not otherwise serve to abate, stay or suspend
          the arbitration proceedings.

          The arbitrator shall determine which is the prevailing party and shall
          include in the award that party's reasonable attorney fees and costs.

          If for any reason JAMS is not able to provide, or is legally precluded
          from providing, a judge in accordance with any of the provisions
          above, or if the parties stipulate, the mediation or the arbitration
          will be conducted by a mediator or arbitrator selected by the American
          Arbitration Association, and in accordance with its procedures.  All
          of the above provisions not in conflict with the procedures of AAA
          would remain in effect to the extent allowed by law in any such
          proceedings.

          This section applies only to disputes involving $250,000 or more in
          value, including claim(s) asserted on behalf of others or a class of
          $250,000 or
          more in value when aggregated.

          This section does not apply to the Lender's exercise of any judicial
          or non-judicial remedies in the event of a default under this
          Agreement or any security agreement, deed of trust or other security
          instrument securing the Agreement.  The Lender's exercise of such a
          remedy shall not be deemed to waive the Lender's right to enforce the
          terms of this section.

          Telephone Transfer.  Borrower authorizes Lender to make transfers, up
          to the available balance or credit limit, between designated accounts
          specified in writing, upon Lender's receipt of instructions from any
          of Borrowers Owners/Principals.  Lender will have no liability for any
          transfer made upon the written or verbal request of any person
          believed by Lender in good faith to be an authorized representative of
          Borrower.  Borrower will indemnify and hold Lender harmless from and
          against any damages, liabilities, costs or expenses (including
          attorney's fees) arising out of any claim by Borrower or any third
          party against Lender in connection with Lender's performance of
          transfers as described above.

          Split Borrowings.  Notwithstanding the negative covenant prohibiting
          other indebtedness and liens contained herein or in any Related
          Documents, Borrower may, without Lender's prior written consent, incur
          indebtedness to others for borrowed money, and mortgage, assign,
          pledge, lease, grant a security interest in, or encumber any of
          Borrower's assets as security for such indebtedness, except that such
          consent shall be required if such other indebtedness is a working<PAGE>






          capital line of credit and Borrower's indebtedness to Lender is not
          fully secured.

          Research and Photocopy Fees.  Except in connection with a billing
          error inquiry, Borrower shall pay to Lender fees for any research or
          photocopies for documents requested or authorized by Borrower with
          respect to the Loan, with such fees determined in accordance with
          Lender's standard fees in effect for such activities at the time any
          such request is made.

          Costs and Expenses.  Borrower agrees to pay upon demand all of
          Lender's out-of-pocket expenses, including without limitation
          attorneys' fees incurred in connection with the preparation,
          execution, enforcement and collection of this Agreement or in
          connection with the Loans made pursuant to this Agreement.  Lender may
          pay someone else to help collect the Loans and to enforce this
          Agreement, and Borrower will pay that amount.  This includes, subject
          to any limits under applicable law, Lender's attorneys' fees and
          Lender's legal expenses, whether or not there is a lawsuit, including
          attorneys' fees for bankruptcy proceedings (including efforts to
          modify or vacate any automatic stay or injunction), appeals, and any
          anticipated post-judgment collection services.  Borrower also will pay
          any court costs, in addition to all other sums provided by law.

          Notices.  All notices required to be given under this Agreement shall
          be given in writing and shall be effective when actually delivered or
          when deposited with a nationally recognized overnight courier or
          deposited in the United States mail, first class, postage prepaid,
          addressed to the party to whom the notice is to be given at the
          address shown above.  Any party may change its address for notices
          under this Agreement by giving formal written notice to the other
          parties, specifying that the purpose of the notice is to change the
          party's address.  To the extent permitted by applicable law, if there
          is more than one Borrower, notice to any Borrower will constitute
          notice to all Borrowers.  For notice purposes, Borrower agrees to keep
          Lender informed at all times of Borrower's current address(es).

          Severability.  If a court of competent jurisdiction finds any
          provision of this Agreement to be invalid or unenforceable as to any
          person or circumstance, such finding shall not render that provision
          invalid or unenforceable as to any other persons or circumstances.  If
          feasible, any such offending provision shall be deemed to be modified
          to be within the limits of enforceability or validity; however, if the
          offending provision cannot be so modified, it shall be stricken and
          all other provisions of this Agreement in all other respects shall
          remain valid and enforceable.<PAGE>






                                     Wells Fargo

                            * * * * Renewal Notice * * * *



     Business Lending Division
     P.O. Box 1060
     San Jose, CA  95108


     August 11, 1997



     Thanksgiving Coffee
     Company, Inc.
     P.O. Box 1918
     Fort Bragg, CA  95437-1918

     Dear Thanksgiving Coffee:

     Wells Fargo Bank is pleased to inform you that your Business PrimeLine
     #7732628502, in the amount of $650,000.00, was renewed on August 11, 1997. 
     The new maturity date is August 10, 1998.

     Your PrimeLine remains subject to all terms and conditions of the Business
     Loan Agreement, as modified by this Renewal Notice.  The interest rate to
     be applied to the unpaid Principal balance of the Note will be at a rate of
     1.oo% over the Index.

     A non-refundable renewal fee of $2,500.00 will be charged to your account
     #0451028112.

     If you have any questions, please do not hesitate to call us at our toll
     free number 1-800-372-8242 press 1, press 3.  We appreciate your business
     and look forward to continuing to serve as your business bank.

     Sincerely,
     Liela Alemania
     Documentation Representative<PAGE>