San Francisco - ZVUE Corporation, a digital entertainment company whose assets include video site eBaum's World and portable media player maker HandHeld Entertainment, announced on Monday that it has reached an agreement with lender YA Global Investments, to which it owes $1.25 million plus interest.

Under the deal, San Francisco-based ZVUE will release $1.5 million now held in an escrow account, while YA will defer payments owed by ZVUE for July, August and September.

YA also agreed to restrictions on its ability to trade ZVUE stock during the term of the "standstill" agreement, and will increase the limit on ZVUE's separate, asset-based financing to $2.5 million from $500,000.

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