Effective August 14, 2015, Spy Inc. entered into a separation and consulting agreement with Mr. Michael Marckx, pursuant to which Mr. Marckx will step down as a director and Chief Executive Officer of the company as of August 14, 2015. To assist in a smooth transition, the agreement provides for Mr. Marckx to continue his employment until December 15, 2015, serving as an advisor to Seth Hamot, the Chairman of the Board of Directors, who will serve as the company's interim Chief Executive Officer effective on the separation date.