NOTE 6: Restricted Stock Plan

In March 2010, shareholders approved the Panhandle Oil and Gas Inc. 2010 Restricted Stock Plan (2010 Stock Plan), which made available 200,000 shares of common stock to provide a long-term component to the Company’s total compensation package for its officers and to further align the interest of its officers with those of its shareholders. In March 2014, shareholders approved an amendment to increase the number of shares of common stock reserved for issuance under the 2010 Stock Plan from 200,000 shares to 500,000 shares and to allow the grant of shares of restricted stock to our directors. The 2010 Stock Plan, as amended, is designed to provide as much flexibility as possible for future grants of restricted stock so that the Company can respond as necessary to provide competitive compensation in order to retain, attract and motivate directors and officers of the Company and to align their interests with those of the Company’s shareholders.

Effective in May 2014, the board of directors approved for management, at their discretion, to purchase the Company’s common stock, from time to time, up to an amount equal to the aggregate number of shares of common stock awarded pursuant to the Company’s 2010 Restricted Stock Plan, contributed by the Company to its ESOP and credited to the accounts of directors pursuant to the Deferred Compensation Plan for Non-Employee Directors.

The following table summarizes the Company’s pre-tax compensation expense for the three months ended December 31, 2014 and 2013, related to the Company’s performance based and non-performance based restricted stock.



	Three Months Ended
	December 31,
	2014		2013
Performance based, restricted stock	$	64,174	$	72,695
Non-performance based, restricted stock		100,937		55,281
Total compensation expense	$	165,111	$	127,976

A summary of the Company’s unrecognized compensation cost for its unvested performance based and non-performance based restricted stock and the weighted-average periods over which the compensation cost is expected to be recognized are shown in the following table.



	As of December 31, 2014
	Unrecognized Compensation Cost		Weighted Average Period (in years)
Performance based, restricted stock	$	205,374	1.41
Non-performance based, restricted stock		151,862	1.33
Total	$	357,236

Upon vesting, shares are expected to be issued out of shares held in treasury.