**ZAGG      INCORPORATED **

**2007      STOCK INCENTIVE PLAN **

**ARTICLE        1 **

**IDENTIFICATION        OF THE PLAN **

| 1.1. | TITLE.                  The plan described herein shall be known as the ZAGG INCORPORATED                  2007                  Stock Incentive Plan (the "Plan"). |
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| 1.2. | PURPOSE.                  The purpose of this Plan is to promote long-term growth and profitability                  of ZAGG INCORPORATED (the "Company") and its Subsidiaries by (i)                  compensating certain directors, officers, employees of and certain                  other                  persons who perform services for the Company and its Subsidiaries                  for                  services rendered by such persons after the date of adoption of                  this Plan                  to the Company or any Subsidiary; (ii) providing certain directors,                  officers and employees of the Company and its Subsidiaries with                  significant additional incentive to promote the financial success                  of the                  Company; and (iii) providing an incentive which may be used to                  induce able                  persons to serve or remain on the Board of Directors of the Company                  or to                  enter into or remain in the employment of the Company or any Subsidiary.                  Grants of Incentive or Non-qualified Stock Options, Restricted                  Stock or a                  combination of the foregoing may be made under the Plan. |
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| 1.3. | EFFECTIVE                  DATE. The Plan became effective upon its approval by the Board                  of                  Directors and the stockholders of the Company (the "Effective Date"). |
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| 1.4. | DEFINED                  TERMS. Certain capitalized terms used herein have the meanings                  as set                  forth in Section 12.1 of the Plan. |
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**ARTICLE        2 **

**ADMINISTRATION        OF THE PLAN **

| 2.1. | INITIAL                  ADMINISTRATION. This Plan shall initially be administered by the                  Board of                  Directors. The Board of Directors shall delegate the administration                  of the                  Plan to a Compensation Committee (the "Committee") in the event                  that such                  a committee is established by the Board of Directors and is comprised                  of                  persons appointed by the Board of Directors of the Company in accordance                  with the provisions of Section 2.3. The Board shall exercise full                  power                  and authority regarding the administration of the Plan until such                  administration is delegated to the Committee. Unless the context                  otherwise                  requires, references herein to the Committee shall be deemed to                  refer to                  the Board of Directors until the administration of the Plan has                  been                  delegated to the Committee. |
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| 2.2. | COMMITTEE'S                  POWERS. The Committee shall have full power and authority to prescribe,                  amend and rescind rules and procedures governing administration                  of this                  Plan. The Committee shall have full power and authority (i) to                  interpret                  the terms of this Plan, the terms of the Grants and the rules and                  procedures established by the Committee and (ii) to determine the                  meaning                  of or requirements imposed by or rights of any person under this                  Plan, any                  Grant or any rule or procedure established by the Committee. Each                  action                  of the Committee which is within the scope of the authority delegated                  to                  the Committee by this Plan or by the Board shall be binding on                  all                  persons. |
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| 2.3. | COMMITTEE                  MEMBERSHIP. The Committee shall be composed of one or more members                  of the                  Board. The Board shall have the power to determine the number of                  members                  which the Committee shall have and to change the                  number of membership positions on the Committee from time to time.                  The                  Board shall appoint all members of the Committee. The Board may                  from time                  to time appoint members to the Committee in substitution for, or                  in                  addition to, members previously appointed and may fill vacancies,                  however                  caused, on the Committee. Any member of the Committee may be removed                  from                  the Committee by the Board at any time with or without cause. |
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**ZAGG          INCORPORATED **

**2007          STOCK INCENTIVE PLAN **

| 2.4. | COMMITTEE                  PROCEDURES. The Committee shall hold its meetings at such times                  and places                  as it may determine. The Committee may make such rules and regulations                  for                  the conduct of its business as it shall deem advisable. Unless                  the Board                  or the Committee expressly decides to the contrary, a majority                  of the                  members of the Committee shall constitute a quorum and any action                  taken by                  a majority of the Committee members in attendance at a meeting                  at which a                  quorum of Committee members are present shall be deemed an act                  of the                  Committee. |
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| 2.5. | INDEMNIFICATION.                  No member of the Committee shall be liable, in the absence of bad                  faith,                  for any act or omission with respect to his or her service on the                  Committee under this Plan. Service on the Committee shall constitute                  service as a director of the Company so that the members of the                  Committee                  shall be entitled to indemnification and reimbursement as directors                  of the                  Company for any action or any failure to act in connection with                  service on                  the Committee to the full extent provided for at any time in the                  Company's                  Certificate of Incorporation and By Laws, or in any insurance policy                  or                  other agreement intended for the benefit of the Company's directors. |
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**ARTICLE        3 **

**PERSONS        ELIGIBLE TO RECEIVE GRANTS **

**ARTICLE        4 **

**GRANT        OF COMMON STOCK **

| 4.1. | POWER                  TO GRANT COMMON STOCK. The Committee shall have the right and the                  power to                  grant at any time to any Grantee Options, Restricted Stock or a                  combination thereof (each a "Grant"), in such quantity, at such                  price, on                  such terms and subject to such conditions consistent with the provisions                  of this Plan as may be established by the Committee on or prior                  to the                  Granting Date for such Grant. In addition, the Board may approve                  a total                  amount of Shares for grant and then specifically authorize the                  Committee                  or senior management of the Company to make grants of the approved                  Shares                  to Grantees. |
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| 4.2. | GRANTING                  DATE. A Grant shall be deemed to have been made under this Plan                  on the                  date (the "Granting Date") which the Committee designates as the                  Granting                  Date at the time it approves such Grant, provided that the Committee                  may                  not designate a Granting Date with respect to any Grant which is                  earlier                  than the date on which the granting of such Grant is approved by                  the                  Committee. |
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**ZAGG          INCORPORATED **

**2007          STOCK INCENTIVE PLAN **

**ARTICLE        5 **

**INCENTIVE        AND NON-QUALIFIED OPTIONS **

| 5.1. | OPTION                  TERMS WHICH THE COMMITTEE MAY DETERMINE. The Committee shall have                  the                  power to determine the Grantee to whom Options are granted, the                  number of                  Shares subject                  to each Option, the number of Options granted to each Grantee and                  the time                  at which each Option is granted. Except as otherwise expressly                  provided in                  this Plan, the Committee shall also have the power to determine,                  at the                  time of the grant of each Option, all terms and conditions governing                  the                  rights and obligations of the Grantee with respect to such Option.                  With                  respect to any Option, the Committee shall have the power to determine:                  (a) the purchase price per Share or the method by which the purchase                  price                  per Share will be determined; (b) the length of the period during                  which                  the Option may be exercised and any limitations on the number of                  Shares                  purchasable with the Option at any given time during such period;                  (c) the                  times at which the Option may be exercised; (d) any conditions                  precedent                  to be satisfied before the Option may be exercised, such as vesting                  period; (e) any restrictions on resale of any Shares purchased                  upon                  exercise of the Option; (f) the extent to which the Option may                  be                  transferable; and (g) whether the Option will constitute an Incentive                  Stock Option. |
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| 5.2 | INCENTIVE                  STOCK OPTIONS. It is the Company's intent that Non-qualified Stock                  Options                  granted under the Plan not be classified as Incentive Stock Options,                  that                  Incentive Stock Options be consistent with and contain or be deemed                  to                  contain all provisions required under Section 422 of the Code and                  any                  successor thereto, and that any ambiguities in construction be                  interpreted                  in order to effectuate such intent. If an Incentive Stock Option                  granted                  under the Plan does not qualify as such for any reason, then to                  the extent                  of such non-qualification, the stock option represented thereby                  shall be                  regarded as a Non-qualified Stock Option duly granted under the                  Plan,                  provided that such stock option otherwise meets the Plan's requirements                  for Non-qualified Stock Options. |
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| 5.3. | TERM                  LIMITATION. No Incentive Stock Option may be granted under this                  Plan which                  is exercisable more than ten years after its Granting Date. This                  Section                  5.3 shall not be deemed to limit the term which the Committee may                  specify                  for any Non-qualified Options granted under the Plan. |
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| 5.4. | $200,000                  PER YEAR LIMIT ON INCENTIVE STOCK OPTIONS. No Grantee may be granted                  Incentive Stock Options if the value of the Shares subject to those                  options which first become exercisable in any given calendar year                  (and the                  value of the Shares subject to any other Incentive Stock Options                  issued to                  the Grantee under the Plan or any other plan of the Company or                  its                  Subsidiaries which first become exercisable in such year) exceeds                  $200,000. For this purpose, the value of Shares shall be determined                  on the                  Granting Date. Any Incentive Stock Options issued in excess of                  the                  $200,000 limit shall be treated as Non-qualified Options. Incentive                  Stock                  Options shall be taken into account in the order in which they                  were                  granted. |
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**ZAGG          INCORPORATED **

**2007          STOCK INCENTIVE PLAN **

**ARTICLE        6 **

**RESTRICTED        STOCK **

| 6.1 | RESTRICTED                  STOCK TERMS WHICH THE COMMITTEE MAY DETERMINE. The Committee may                  at any                  time and from time to time grant Shares of Restricted Stock under                  the Plan                  to such Grantees and in such amounts as it determines. Each grant                  of                  Restricted Stock shall specify the applicable restrictions on such                  Shares                  (including, for example, time, performance, price and milestone                  based                  vesting restrictions), the duration of such restrictions and the                  time or                  times at which such restrictions shall lapse with respect to all                  or a                  specified number of Shares that are part of the grant. |
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| 6.2 | REQUIRED                  PAYMENT UPON GRANT. The Grantee will be required to pay the Company                  the                  aggregate par value of any Shares of Restricted Stock within ten                  days of                  the date of grant, unless such Shares of Restricted Stock are treasury                  shares. |
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| 6.3 | ESCROW                  OF RESTRICTED STOCK AND STOCKHOLDER RIGHTS. Unless otherwise determined                  by                  the Committee, certificates representing Shares of Restricted Stock                  granted under the Plan                  will be held in escrow by the Company on the Grantee's behalf during                  any                  period of restriction thereon and will bear an appropriate legend                  specifying the applicable restrictions thereon, and the Grantee                  will be                  required to execute a blank stock power therefore. Except as otherwise                  provided by the Committee, during such period of restriction the                  Grantee                  shall have all of the rights of a holder of Common Stock, including                  but                  not limited to the rights to receive dividends and to vote, and                  any stock                  or other securities received as a distribution with respect to                  such                  Grantee's Restricted Stock shall be subject to the same restrictions                  as                  then in effect for the Restricted Stock. |
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| 6.4 | FORFEITURE.                  Except as otherwise provided by the Committee, at such time as                  a Grantee                  ceases to be a director, officer or employee of, or otherwise performing                  services for, the Company or its Subsidiaries for any other reason,                  all                  Shares of Restricted Stock granted to such participant on which                  the                  restrictions have not lapsed shall be immediately forfeited to                  the                  Company. |
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**ARTICLE        7 **

**GRANT        TERMS **

| 7.1. | AGREEMENT.                  No Grantee shall have any rights under any Grant unless and until                  the                  Company and the Grantee have executed and delivered an agreement                  expressly                  making the Grant to such Grantee and containing provisions setting                  forth                  the terms of the Grant (either an "Option Agreement" or a "Restricted                  Stock Agreement", as the case may be). Unless otherwise provided                  by the                  Committee, the form of Stock Option Agreement, attached to this                  Plan as                  Exhibit A, or the form of Restricted Stock Agreement, attached                  to this                  Plan as Exhibit B, shall be used by the Committee in making Grants                  under                  the Plan. |
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| 7.2. | LIMITATION                  ON SHARES ISSUABLE TO ANY GRANTEE. The aggregate number of Shares                  that may                  relate to Options made to a Grantee during any calendar year (including                  those Options already exercised by the Grantee) shall not exceed                  300,000                  shares, as adjusted pursuant to Article 10 of this Plan. |
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| 7.3. | PLAN                  PROVISIONS CONTROL TERMS. The terms of this Plan shall govern all                  Grants.                  In the event any provision of any Option Agreement or Restricted                  Stock                  Agreement conflicts with any term in this Plan as constituted on                  the                  Granting Date of such Grant, the term in this Plan as constituted                  on the                  Granting Date of the Grant shall control. Except as provided in                  Article                  10, the terms of any Grant may not be changed after the Granting                  Date of                  such Grant without the express approval of the Company and the                  Grantee. |
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**ZAGG          INCORPORATED **

**2007          STOCK INCENTIVE PLAN **

| 7.4. | TRANSFER                  OF GRANTS. A Grant made pursuant to this Plan may be transferable                  as                  provided in the Option Agreement or Restricted Stock Agreement,                  as                  applicable. It shall be a condition precedent to any transfer of                  any Grant                  that the transferee executes and delivers an agreement acknowledging                  that                  such Grant has been acquired for investment and not for distribution                  and                  is and shall remain subject to this Plan and the applicable Option                  Agreement or Restricted Stock Agreement. The "Grantee" of any Grant                  shall                  mean (i) the initial grantee of such Grant or (ii) any permitted                  transferee. |
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| 7.5. | NO                  RIGHT TO EMPLOYMENT CONFERRED. Nothing in this Plan or (in the                  absence of                  an express provision to the contrary) in any Option Agreement or                  Restricted Stock Agreement (i) confers any right or obligation                  on any                  person to continue in the employ of the Company or any Subsidiary                  or (ii)                  affects or shall affect in any way any person's right or the right                  of the                  Company or any Subsidiary to terminate such person's employment                  with the                  Company or any Subsidiary at any time, for any reason, with or                  without                  cause. |
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**ARTICLE        8 **

**REGULATORY        COMPLIANCE **

| 8.1. | TAXES.                  The Company or any Subsidiary shall be entitled, if the Committee                  deems it                  necessary or desirable, to withhold from a Grantee's salary or                  other                  compensation (or to secure payment from the Grantee in lieu of                  withholding) all or any portion of any withholding or other tax                  due from                  the Company or any Subsidiary with respect to any Shares deliverable                  under                  such Grantee's Grant. |
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**ZAGG          INCORPORATED **

**2007          STOCK INCENTIVE PLAN **

| 8.2. | SECURITIES                  LAW COMPLIANCE. Each Grant shall be subject to the condition that                  an                  Option may not be exercised and the restrictions on Shares Restricted                  Stock may not lapse if and to the extent the Committee determines                  that the                  sale of securities upon exercise of the Option or lapse of the                  restrictions may violate the Securities Act or any other law or                  requirement of any governmental authority. The Company shall not                  be deemed                  by any reason of the making of any Grant to have any obligation                  to                  register the Shares subject to such Grant under the Securities                  Act or to                  maintain in effect any registration of such Shares which may be                  made at                  any time under the Securities Act. An Option shall not be exercisable                  and                  the restrictions shall not lapse if the Committee or the Board                  determines                  there is non-public information material to the decision of the                  Grantee to                  exercise such Option or trade such Restricted Stock which the Company                  cannot for any reason communicate to such Grantee. |
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**ARTICLE        9 **

**SHARES        SUBJECT TO THE PLAN **

        without        par value, the shares resulting from any such change shall be deemed to be        the        Shares within the meaning of the Plan. 

**ARTICLE        10 **

**ADJUSTMENTS        TO REFLECT ORGANIC CHANGES **

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**ZAGG          INCORPORATED **

**2007          STOCK INCENTIVE PLAN **

**ARTICLE        11 **

**AMENDMENT        AND TERMINATION OF THE PLAN **

| 11.1. | AMENDMENT.                  Except as provided in the following two sentences, the Board shall                  have                  complete power and authority to amend this Plan at any time, and                  no                  approval by the Company's stockholders or by any other person,                  committee                  or other entity of any kind shall be required to make any amendment                  approved by the Board effective. The Board shall not, without the                  affirmative approval of the Company's stockholders, amend the Plan                  in any                  manner which would cause any outstanding Incentive Stock Options                  to no                  longer qualify as Incentive Stock Options. No termination or amendment                  of                  this Plan may, without the consent of the Grantee prior to termination                  or                  the adoption of such amendment, materially and adversely affect                  the rights                  of such Grantee under such Grant. |
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| 11.2. | TERMINATION.                  The Board shall have the right and the power to terminate this                  Plan at any                  time, provided that no Incentive Stock Options may be granted after                  the                  tenth anniversary of the adoption of this Plan. No Grant shall                  be made                  under this Plan after the termination of this Plan, but the termination                  of                  this Plan shall not have any other effect. Any Option outstanding                  at the                  time of the termination of this Plan may be exercised, and the                  restrictions on any Restricted Stock may lapse, after termination                  of this                  Plan at any time prior to the Expiration Date of such Grant to                  the same                  extent such                  Option would have been exercisable and such restriction would have                  lapsed                  had this Plan not terminated. |
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**ARTICLE        12 **

**DEFINITIONS        AND OTHER PROVISIONS OF THE PLAN **

| 12.1. | DEFINITIONS.                  Each term defined in this Section 12.1 has the meaning indicated                  in this                  Section 12.1 whenever such term is used in this Plan: |
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**ZAGG          INCORPORATED **

**2007          STOCK INCENTIVE PLAN **

        the        Committee; provided, that as long as the Shares are traded on a national        securities exchange or national automated quotation system (such as the OTCBB),        the Per Share Market Value shall be the reported closing price of the Shares        on        such date. 

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**ZAGG          INCORPORATED **

**2007          STOCK INCENTIVE PLAN **

| 12.2. | HEADINGS.                  Section headings used in this Plan are for convenience only, do                  not                  constitute a part of this Plan and shall not be deemed to limit,                  characterize or affect in any way any provisions of this Plan.                  All                  provisions in this Plan shall be construed as if no headings had                  been used                  in this Plan. |
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afforded        by the Code to Options which do constitute Incentive Stock Options under        Code        Section 422, then all such terms shall be deemed implicit in the intention        to        afford such treatment to such Option and such Option shall be deemed to have        been granted subject to all such terms. 

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**ZAGG          INCORPORATED **

**2007          STOCK INCENTIVE PLAN **

| 12.4. | NO                  STRICT CONSTRUCTION. No rule of strict construction shall be applied                  against the Company, the Committee or any other person in the                  interpretation of any of the terms of this Plan, any Grant or any                  rule or                  procedure established by the Committee. |
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| 12.5. | CHOICE                  OF LAW. This Plan and all documents contemplated hereby, and all                  remedies                  in connection therewith and all questions or transactions relating                  thereto, shall be construed in accordance with and governed by                  the                  internal laws of the State of Nevada. |
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| 12.6. | TAX                  CONSEQUENCES. Tax consequences from the purchase and sale of Shares                  may                  differ among Grantees under the Plan. Each Grantee should discuss                  specific                  tax questions regarding participation in the Plan with his or her                  own tax                  advisor. |
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