EXHIBIT 10.21.1


                                  July 30, 2007


Talon International
(f/k/a Tag-It Pacific, Inc.)
21900 Burbank Blvd., Suite 270
Woodland Hills, CA 91367
Attention: Lonnie D. Schnell, CFO

         Re:      AMENDMENT NO. 1 TO LOAN AGREEMENT

Dear Sirs:

         Reference is made to the Revolving Credit and Term Loan Agreement dated
June 27, 2007 (the "LOAN  AGREEMENT") by and between Bluefin  Capital,  LLC (the
"LENDER")  and Talon  International,  Inc.  (f/k/a  Tag-It  Pacific,  Inc.) (the
"BORROWER").  All  capitalized  terms used herein  without  definition  have the
respective meanings ascribed to them in the Loan Agreement.

         This will confirm the  agreement of the Lender and the Borrower to make
the following correction to the Loan Agreement as follows:

         1.       CORRECTED COVENANT.  Section 6.17 the Loan Agreement is hereby
amended, effective as of June 29, 2007, so as to read in full as follows:

                           SECTION 6.17. COVERAGE TEST. Permit, as of the end of
                  the  quarter  of  any  Fiscal  Year,  principal  and  interest
                  payments by the Borrower and its Subsidiaries for the four (4)
                  consecutive  quarters then ended  (excluding  principal of the
                  Convertible  Debentures  and  principal  payments  made from a
                  matched source where such matched source makes the payment) to
                  exceed  EBITDA  for  such  four  (4)  fiscal  quarter  period;
                  provided,  however,  that the Lender shall not  accelerate the
                  Obligations by reason of any non-compliance  with this Section
                  6.17 unless and until non-compliance herewith occurs as of the
                  end of two (2) consecutive fiscal quarters.

         2.       ONGOING  FORCE  AND  EFFECT.  Except  as  expressly  set forth
herein,  all of the terms and conditions of the Loan Agreement  remain unchanged
and in full force and effect.  From and after June 29, 2007,  all  references to
the Loan Agreement in any other Loan Documents  shall mean and refer to the Loan
Agreement as amended by this Amendment No. 1.

         3.       GOVERNING  LAW.  This  amendment  shall  be  governed  by  and
construed in accordance  with the laws of the State of New York,  without giving
effect to conflicts of laws principles.





         Kindly  confirm your  agreement to the  foregoing by  countersigning  a
counterpart copy of this Amendment No. 1 in the space provided below.



                                     Very truly yours,


                                     BLUEFIN CAPITAL, LLC

                                     By:  /S/ LARRY E. LENIG, JR.
                                         ---------------------------------------
                                              Larry E. Lenig, Jr., Vice Chairman

Acknowledge, Confirmed and Agreed To:

TALON INTERNATIONAL, INC.
(f/k/a Tag-It Pacific, Inc.)


By:  /S/ LONNIE D. SCHNELL
    -----------------------------------------------
         Lonnie D. Schnell, Chief Financial Officer