Summary of ZAGG INC - Yahoo! Finance

Change in Directors or Principal Officers, Financial Statements and Exhibits

Item 5.02. Departure of Directors or Certain Officers; Election of Directors;
Appointment of Certain Officers; Compensation Arrangements of Certain Officers.

(e) Adoption of New Omnibus Compensation Plan by Board of Directors

On January 15, 2013, the Board of Directors of ZAGG Inc (the "Registrant") adopted a new equity incentive award plan, named the ZAGG Inc 2013 Equity Incentive Award Plan (the "2013 Plan") and directed that it be submitted to shareholders for their approval at the Company's annual meeting in 2013. The new plan is an "omnibus plan" under which stock options, stock appreciation rights, performance share awards, restricted stock, and restricted stock units can be awarded. Nevertheless, the Board of Directors expects that the Company will continue its current practice of awarding restricted (or deferred) stock, plus awarding restricted stock units, which it could not do under the 2007 Stock Incentive Plan (the "2007 Plan"). The 2013 Plan's initial share reservation will be 5,000,000 shares. The term of the plan is for 10 years from the date of its adoption.

In addition, the Company's Board of Directors determined that the Company will cease to issue any additional awards pursuant to the Company's existing equity award plan, the 2007 Plan. All awards that are outstanding under the 2007 Plan will continue to vest, be exercisable, and expire according to their respective terms.

The Company estimates that there are approximately 6,200,000 shares available for new awards under the 2007 Plan, including foreseeable forfeitures of awards previously granted. By reserving 5,000,000 shares under the 2013 Plan, the Company believes that it has reduced potential shareholder dilution by more than 1,000,000 shares.

The foregoing summary of the terms and conditions of the 2013 Plan does not purport to be complete, and is qualified in its entirety by reference to the full text of the 2013 Plan attached as an exhibit hereto.

Additionally, the 2013 Plan will be attached as an appendix to the Company's proxy statement for the 2013 shareholder meeting, where, as noted, the Company will seek shareholder approval of the 2013 Plan.