Stock Option Plan

12 Months Ended

Jun. 30, 2016

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

8. Stock Option Plan

In March 2008, our Board of Directors and stockholders adopted the 2008 Incentive Plan (the “Incentive Plan”). The Incentive Plan provides directors, officers, employees and consultants to the Company with opportunities to purchase common stock pursuant to options that may be granted, and receive grants of restricted stock and other stock-based awards granted, from time to time by the Board of Directors or a committee approved by the Board. The Incentive Plan provides for grants of stock options, stock awards and other incentives for up to 6,630,000 shares. There were 5,131,620 Class A shares available for grant pursuant to the Incentive Plan as of June 30, 2016.

In February 2009 and April 2013, PAHC’s Compensation Committee awarded stock options with an exercise price of $11.83 per share, pursuant to the Incentive Plan. In connection with the grants, we obtained third party valuation reports and determined that the exercise price per share was not less than the fair value of the common stock at the grant date. The weighted-average grant-date fair value of stock options was $0.99. The awards granted were non-qualified stock options that vested at various dates through March 2014. The options expire in February 2019. All stock options are exercisable for Class A common stock.

The Company recognized compensation expense for the options over the vesting period in selling, general and administrative expenses. Expense related to stock options for 2016, 2015 and 2014, was $0, $0 and $73, respectively. Stock option activity was:

Options	Shares		Weighted- Average Exercise Price Per Share
Outstanding, June 30, 2015		1,385,540		$	11.83
Exercised		(339,500)		$	11.83
Outstanding, June 30, 2016		1,046,040		$	11.83
Exercisable, June 30, 2016		1,046,040		$	11.83

At June 30, 2016, exercisable options had a weighted-average remaining contractual life of 2.7 years and had a $7,144 aggregate intrinsic value, based on the market price as of that date, less the exercise price.

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

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