On May 8, 2013, Spy, Inc. (the "Company") entered into a Third Amended and Restated Promissory Note ("Third Amendment") and a Fourth Amended and Restated Promissory Note ("Fourth Amendment") with Costa Brava Partnership III, L.P. ("Costa Brava"), pursuant to which the maturity date of all amounts due Costa Brava thereunder was extended to April 1, 2015 from April 1, 2014, and, in the case of the Fourth Amendment, the total commitment thereunder was decreased from $10.0 million to $9.0 million, of which $8.5 million was outstanding on March 31, 2013. The amounts outstanding on March 31, 2013 due Costa Brava, including the commitment amount, exclude accrued but unpaid interest, which is added to principal rather than paid in cash.

In addition, on May 8, 2013, the Company entered into an Amendment to Promissory Note and Promissory Note No. 2 with Harlingwood (Alpha), LLC ("Harlingwood") (the "Harlingwood Amendments"), pursuant to which the Company similarly extended the maturity date of certain promissory notes issued to Harlingwood in the aggregate principal amount of $1.5 million from April 1, 2014 to April 1, 2015, which amount excludes accrued but unpaid interest, which is added to principal rather than paid in cash.

A copy of the Third Amendment, Fourth Amendment and the Harlingwood Amendments is attached to this Current Report on Form 8-K as Exhibit 10.1, 10.2 and 10.3, respectively.

See Exhibit Index.

The foregoing descriptions of Third Amendment, the Fourth Amendment and the Harlingwood Amendments do not purport to be complete, and are qualified in their entirety by reference to the full text of the Third Amendment, the Fourth Amendment and the Harlingwood Amendments attached hereto as Exhibits 10.1, 10.2 and 10.3, and are incorporated herein by reference.