A wholly owned subsidiary of Orange 21, Orange 21 North America (O21NA) entered into a $3 million promissory note with one of the parent company's shareholders, Costa Brava Partnership III, effective March 23. The note is subordinated to O21NA's loan and security agreement with BFI Business Finance, pursuant to the terms of a debt subordination agreement between Costa Brava and BFI. The proceeds from the note are expected to be used to prepay the whole balance of O21NA's revolving line of credit balance with BFI; if there is any money left over, it will go toward working capital. However, O21NA may continue to re-borrow from BFI under the loan and security agreement after such prepayment is made. The promissory note matures on July 29, 2011.