On February 13, 2014, Spy Optic Inc. entered into the Ninth Modification to Loan and Security Agreement with BFI Business Finance, effective as of January 29, 2014, in order to provide for certain modifications to Spy's credit facility with BFI. The original Loan and Security Agreement with BFI was entered into on February 26, 2007. Among other things, the Modification (1) increased the Maximum Inventory Advance to the lessor of $2.5 million or 50% of eligible accounts receivable; (2) increased the Borrowing Base to 50% of eligible raw materials and finished goods, not to exceed Maximum Inventory Advance; (3) allows for advances against eligible foreign accounts receivable (other than Canadian accounts receivable) of up to $0.4 million; (4) decreases the interest rate on all advances under the Credit Facility to 1.75% in excess of the prime rate, as defined in the Credit Facility; and (6) increased borrowing on eligible dating programs to 70%.