Vendor Reserve. Means, as of the date of any determination, (A) if Excess Availability is less than $2,500,000 (provided, however, that solely for the purposes of determining whether Excess Availability is less than $2,500,000 in this definition, the amount of the Vendor Reserve shall not be included in the "availability reserves" referenced in subsection (a) of the definition of Excess Availability), an amount equal to the sum of: (i) the result of (a) the amount of accounts payable or Indebtedness owed by
... Borrower to a creditor pursuant to the terms of a License Agreement or other product purchase or acquisition arrangement, where such creditor holds a lien or other security interest in the Eligible Accounts of Borrower (a "Lien Creditor"), minus (b) the undrawn amount available to be drawn under one or more letters of credit obtained by Borrower, if any, for the benefit of such Lien Creditor with respect to the repayment of sums due and owing under such License Agreement or other product purchase or acquisition arrangement included in clause (A)(i)(a) of this definition minus fifty percent (50%) of the value of Borrower's DVD Inventory composed of a Lien Creditor's products that would otherwise be Eligible Inventory if it were not Exclusive DVD Inventory or encumbered by a Lien or other security interest in favor of such Lien Creditor (a) above; plus (ii) the amount of royalties and accounts payable owed by Borrower to creditors under License Agreements or other product 2 purchase or acquisition arrangements that are not Lien Creditors but then only to the extent that such accounts payable are outstanding more than sixty (60) days from their due date; or (B) if Excess Availability is equal to or greater than $2,500,000 (provided, however, that solely for the purposes of determining whether Excess Availability is equal to or greater than $2,500,000 in this definition, the amount of the Vendor Reserve shall not be included in the "availability reserves" referenced in subsection (a) of the definition of Excess Availability), Vendor Reserve shall mean, as of any date of determination, an amount equal to the sum of: (i) the result of (a) the amount of accounts payable or Indebtedness owed by Borrower to a Lien Creditor pursuant to the terms of a License Agreement or other product purchase or acquisition arrangement, where such Lien Creditor holds a lien or other security interest in the Eligible Accounts of Borrower, minus (b) the undrawn amount available to be drawn under one or more letters of credit obtained by Borrower, if any, for the benefit of such Lien Creditor with respect to the repayment of sums due and owing under such License Agreement or other product purchase or acquisition arrangement included in clause (B)(i)(a) of this definition minus fifty percent (50%) of the value of Borrower's DVD Inventory composed of a Lien Creditor's products that would otherwise be Eligible Inventory if it were not Exclusive DVD Inventory or encumbered by a lien or other security interest in favor of such Lien Creditor; plus (ii) the amount of royalties and accounts payable owed by Borrower to creditors under License Agreements or other product purchase or acquisition arrangements that are not Lien Creditors but then only to the extent that (x) such accounts payable are outstanding more than sixty (60) days from their due date, and (y) the aggregate amount of such accounts is greater than $500,000.
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