SPY Inc. announced that the employment of Gregory Hagerman, executive vice president, sales and operations, terminated effective August 31, 2012. In connection therewith, Mr. Hagerman became entitled to: severance pay equal to his current base salary of $225,000 payable over the next 12 months, and accelerated vesting of stock options exercisable into 117,500 shares of common stock underlying the unvested stock option previously granted him on December 5, 2011.