RESTRICTED STOCK

Equity Incentive Award Plans

In 2007, the Company’s board of directors adopted and in 2008 the Company’s shareholders approved the ZAGG Incorporated 2007 Stock Incentive Plan (the “2007 Plan”). On January 15, 2013, the Company’s board of directors adopted and in June 2013, the Company’s shareholders approved the ZAGG Inc 2013 Equity Incentive Award Plan (the “2013 Plan”), a new equity incentive plan intended to replace the 2007 Plan. Upon adoption of the 2013 Plan in January 2013, the Company ceased to grant awards pursuant to the 2007 Plan, though 6,239 shares remained available to grant under the 2007 Plan. All subsequent awards were, and all future awards will be, granted under the 2013 Plan. All awards that are outstanding under the 2007 Plan will continue to vest, be exercisable, and expire according to their respective terms.

In April 2017, the compensation committee of the Company’s board of directors adopted, and in June 2017, the Company’s shareholders approved an amendment and restatement of the 2013 Plan (the “Amended Plan”). The Amended Plan is an “omnibus plan” under which stock options, stock appreciation rights, performance share awards, restricted stock, and restricted stock units can be awarded. The Amended Plan’s initial share reservation is 5,000 shares. The term of the plan is for 10 years from the date of original adoption of the Amended Plan. As of December 31, 2017, there were 2,498 shares available for grant under the Amended Plan.

Restricted Stock

Restricted stock awards are granted with a fair value equal to the ending stock price on the date of grant. A summary of the status of the Company’s restricted stock as of December 31, 2017, and changes during the year ended December 31, 2017, is presented below:



	Restricted Stock (In thousands)		Weighted-Average Grant Date Fair Value (Per share)
Outstanding at December 31, 2016	766		$	7.89
Granted	604		8.26
Vested	(270	)	7.13
Forfeited	(66	)	7.98
Outstanding at December 31, 2017	1,034		$	8.29

As of December 31, 2017, there was $5,072 of total unrecognized compensation cost related to nonvested restricted stock awards granted under the stock incentive plans. That cost is expected to be recognized over a weighted-average period of approximately 1.2 years.

The estimated fair value of the restricted stock awards is recognized on a straight-line basis over the requisite service period of the award, which is generally the vesting term of the award. The Company recognizes compensation expense on a straight-line basis for those performance-based awards that management estimates the performance criteria are probable to be achieved. During the years ended December 31, 2017, 2016, and 2015, the Company recorded equity-based compensation expense of $3,602, $3,830, and $3,893, respectively, which is included as a component of selling, general and administrative expense. The tax benefit recognized on equity-based compensation expense for the years ended December 31, 2017, 2016, and 2015, was $1,378, $1,465, and $1,489, respectively. The tax benefit realized from vested restricted stock for the years ended December 31, 2017, 2016, and 2015, was $962, $2,119, and $1,014, respectively.

During the years ended December 31, 2017, 2016, and 2015, certain ZAGG employees elected to receive a net amount of shares upon the vesting of restricted stock grants in exchange for the Company incurring the tax liability for the fair value of the award on the vest date. This resulted in the Company recording $268, $630, and $724, respectively, as a reduction to additional paid-in capital.