Document:

CNS-8K-Exhibit 10.3

Exhibit 10.3 

COHEN & STEERS, INC. 
AMENDED AND RESTATED
EMPLOYEE STOCK PURCHASE PLAN
1.Purpose of the Plan
The purpose of the Plan is to give eligible employees of the Company and its Subsidiaries the ability to share in the Company’s future success.  The Company expects that it will benefit from the added interest which such employees will have in the welfare of the Company as a result of their increased equity interest in the Company’s success.
2.    Section 423 of the Code
The Plan is intended to qualify as an “employee stock purchase plan” within the meaning of Section 423 of the Code or any successor section thereto.  Accordingly, all Participants shall have the same rights and privileges under the Plan, subject to any exceptions that are permitted under Section 423(b)(5) of the Code.  Any provision of the Plan that is inconsistent with Section 423 of the Code or any successor provision shall, without further act or amendment, be reformed to comply with the requirements of Section 423.  This Section 2 shall take precedence over all other provisions in the Plan.
3.    Definitions
The following capitalized terms used in the Plan have the respective meanings set forth in this Section:
		
	(a)
	Act:  The Securities Exchange Act of 1934, as amended, or any successor thereto.

		
	(b)
	Beneficial Owner:  A “beneficial owner” as such term is defined in Rule 13d-3 under the Act (or any successor rule thereto).

		
	(c)
	Board:  The Board of Directors of the Company.

		
	(d)
	Change in Control:  The occurrence of any of the following events:

(i)the complete liquidation of the Company or the sale or disposition, in one or a series of related transactions, of all or substantially all, of the assets of the Company to any “person” or “group” (as such terms are defined in Sections 13(d)(3) or 14(d)(2) of the Act), other than the Permitted Holders;
(ii)    any person or group, other than the Permitted Holders, is or becomes the Beneficial Owner (except that a person shall be deemed to have “beneficial ownership” of all shares that any such person has the right to acquire, whether such right is exercisable immediately or only after the passage of time), directly or indirectly, of securities of the Company (or any entity which controls the Company) representing both (x) 20% or more of the combined voting power of the then outstanding securities of the Company (or any entity which controls the Company) and (y) more of the combined voting power of the then outstanding securities of the Company (or any entity which controls the Company) than the Cohen/Steers Holders in the aggregate; 

    1    

(iii)    during any period of twenty-four consecutive months, individuals who at the beginning of such period constituted the Board (together with any new directors (other than a director nominated by any Person (other than the Board) who publicly announces an intention to take or to consider taking actions, including but not limited to, an actual or threatened proxy contest, which if consummated would constitute a Change in Control under clauses (i), (ii) or (iv) of this Section 2(d)) nominated by any Cohen/Steers Holder and/or whose election by such Board or whose nomination for election by the shareholders of the Company was approved by a vote of a majority of the directors of the Company, then still in office, who were either directors at the beginning of such period or whose election or nomination for election was previously so approved) cease for any reason to constitute a majority of the Board, then in office; or
(iv)    the consummation of any transaction or series of transactions resulting in a merger, consolidation or amalgamation, in which the Company is involved, other than a merger, consolidation or amalgamation which would result in the shareholders of the Company immediately prior thereto continuing to own (either by remaining outstanding or by being converted into voting securities of the surviving entity), in the same proportion as immediately prior to the transaction(s), more than 50% of the combined voting power of the voting securities of the Company or such surviving entity outstanding immediately after such merger, consolidation or amalgamation.
		
	(e)
	Code:  The Internal Revenue Code of 1986, as amended, or any successor thereto.

		
	(f)
	Cohen/Steers Holder:  Each member of the Cohen Group, each member of the Steers Group and each Cohen/Steers Entity.

		
	(g)
	Committee:  A committee of the Board that has been designated by the Board to administer the Plan.

		
	(h)
	Company:  Cohen & Steers, Inc., a Delaware corporation.

		
	(i)
	Compensation: Base salary, annual bonuses, commissions, overtime and shift pay, in each case prior to reductions for pre-tax contributions made to a plan or salary reduction contributions to a plan excludable from income under Section 125 of the Code.  Notwithstanding the foregoing, Compensation shall exclude severance pay, sign-on bonuses, stay-on bonuses, long-term bonuses, retirement income, change-in-control payments, contingent payments, income derived from stock options, stock appreciation rights and other equity-based compensation and other forms of special remuneration.

		
	(j)
	Disqualifying Disposition:  As such term is defined in Section 11(f) of the Plan.

		
	(k)
	Eligible Employee:  An individual who is eligible to participate in the Plan pursuant to Section 7 of the Plan.

		
	(l)
	Fair Market Value:  On a given date, (i) if there should be a public market for the Shares on such date, the arithmetic mean of the high and low prices of the Shares as reported on such date on the composite tape of the principal national securities exchange on which such Shares are listed or admitted to trading, or, if the Shares are not listed or admitted on any national securities exchange, the arithmetic mean of the per Share closing bid price and per Share closing asked price on such date as quoted on the National Association of Securities Dealers Automated Quotation System (or such market in which such prices are 

    2    

regularly quoted)(the “NASDAQ”), or, if no sale of Shares shall have been reported on the composite tape of any national securities exchange or quoted on the NASDAQ on such date, then the immediately preceding date on which sales of the Shares have been so reported or quoted shall be used; and (ii) if there should not be a public market for the Shares on such date, the Fair Market Value shall be the value established by the Committee in good faith.
		
	(m)
	Maximum Share Amount:  Subject to Section 423 of the Code, the maximum number of Shares that a Participant may purchase on any given Purchase Date, as determined by the Committee in its sole discretion.  Unless otherwise determined by the Committee, the Maximum Share Amount shall be 10,000 Shares.

		
	(n)
	Offering Date:  The first date of an Offering Period.

		
	(o)
	Offering Period:  An offering period described in Section 6 of the Plan.

		
	(p)
	Option:  A stock option granted pursuant to Section 9 of the Plan.

		
	(q)
	Original Plan:  As defined in Section 22 of the Plan.

		
	(r)
	Other Contributions:  As such term is defined in Section 11(c) of the Plan.

		
	(s)
	Participant:  An Eligible Employee who elects to participate in the Plan pursuant to Section 8 of the Plan.

		
	(t)
	Participating Subsidiary:  A Subsidiary of the Company that is selected to participate in the Plan by the Committee in its sole discretion.

		
	(u)
	Payroll Deduction Account:  An account to which payroll deductions of a Participant, or Other Contributions, are credited under Section 11(c) of the Plan.

		
	(v)
	Permitted Holder:  As of the date of determination, any and all of (i) an employee benefit plan (or trust forming a part thereof) maintained by (A) the Company or (B) any corporation or other Person of which a majority of its voting power of its voting equity securities or equity interest is owned, directly or indirectly, by the Company, (ii) any entity owned, directly or indirectly, by the shareholders of the Company in substantially the same proportions as their ownership of shares of the Company, (iii) any of Martin Cohen, his spouse, his siblings and their spouses, and descendants of any of them (whether natural or adopted) (collectively, the “Cohen Group”), (iv) any of Robert Steers, his spouse, his siblings and their spouses, and descendants of any of them (whether natural or adopted) (collectively, the “Steers Group”), and (v) any trust established and maintained primarily for the benefit of any member of the Cohen Group and/or Steers Group or any entity controlled by any member of the Cohen Group and/or Steers Group (a “Cohen/Steers Entity”).

		
	(w)
	Person:  A “person”, as such term is used for purposes of Section 13(d) or 14(d) of the Act (or any successor section thereto).

		
	(x)
	Plan:  The Cohen & Steers, Inc. Employee Stock Purchase Plan, as amended from time to time.

    3    

		
	(y)
	Plan Broker:  A stock brokerage or other financial services firm designated by the Committee in its sole discretion.

		
	(z)
	Purchase Date:  The last date of an Offering Period. 

		
	(aa)
	Purchase Price:  The purchase price per Share, as determined pursuant to Section 10 of the Plan.

		
	(bb)
	Shares:  Shares of common stock, par value $.01 per Share, of the Company.

		
	(cc)
	Subsidiary:  A “subsidiary corporation”, as defined in Section 424(f) of the Code (or any successor section thereto).

4.    Shares Subject to the Plan
Subject to the adjustment provision in Section 14 of the Plan, the total number of Shares which may be issued under the Plan is 600,000 (inclusive of Shares issued under the Original Plan).  The Shares may consist, in whole or in part, of unissued Shares, treasury Shares or Shares purchased on the open market.  The issuance of Shares pursuant to the Plan shall reduce the total number of Shares available under the Plan.
5.    Administration of the Plan
The Plan shall be administered by the Committee, which may delegate its duties and powers in whole or in part to any subcommittee thereof consisting solely of at least two individuals who are each “non-employee directors” within the meaning of Rule 16b-3 under the Act (or any successor rule thereto); provided, however, that the Board may, in its sole discretion, take any action designated to the Committee under this Plan as it may deem necessary.  The Committee is authorized to interpret the Plan, to establish, amend and rescind any rules and regulations relating to the Plan, and to make any other determinations that it deems necessary or desirable for the administration of the Plan.  The Committee may correct any defect or supply any omission or reconcile any inconsistency in the Plan in the manner and to the extent the Committee deems necessary or desirable.  Any decision of the Committee in the interpretation and administration of the Plan, as described herein, shall lie within its sole and absolute discretion and shall be final, conclusive and binding on all parties concerned (including, but not limited to, Participants and their beneficiaries or successors).  Subject to Section 16 of the Act or other applicable law, the Committee may delegate its duties and powers under the Plan to such individuals as it designates in it sole discretion.
6.    Offering Periods
Offering Periods shall generally be of three month's duration and shall commence on a quarterly basis on each of January 1, April 1, July 1 and October 1.  The first Offering Period commenced on the beginning of the effective date of the Registration Statement on Form S-1 for the initial public offering of the Company’s Shares.  The Plan shall continue until terminated in accordance with Section 17 hereof.  Notwithstanding the foregoing, the Committee, in its sole discretion, may change the duration and/or frequency of any Offering Period, subject to the limitations under Section 423 of the Code and all applicable laws.

    4    

7.    Eligibility
(a) Any individual who is an employee of the Company or a Participating Subsidiary is eligible to participate in the Plan, except that one or more of the following categories of employees may, in the discretion of the Committee, be excluded from participating in the Plan:
		
	(1)
	employees who have been employed by the Company or a Participating Subsidiary for less than two years;

		
	(2)
	employees whose customary employment is 20 hours or less per week;

		
	(3)
	employees whose customary employment is for not more than five months in any calendar year; and

		
	(4)
	highly compensated employees (within the meaning Section 414(q) of the Code);

(b) In no event shall an employee be granted an Option under the Plan if, immediately after the grant, such employee would own stock possessing 5% or more of the total combined voting power or value of all classes of stock of the Company or of its parent or Subsidiary.  For purposes of this Section 7(b), the rules of Section 424(d) of the Code shall apply in determining the stock ownership of an individual, and stock which the employee may purchase under outstanding options shall be treated as stock owned by the employee.
8.    Participation in the Plan
The Committee shall set forth procedures pursuant to which Eligible Employees may elect to participate in a given Offering Period under the Plan.  Once an Eligible Employee elects to participate in an Offering Period, such Eligible Employee shall automatically participate in all subsequent Offering Periods, unless the Eligible Employee (a) makes a new election or (b) withdraws from an Offering Period or from the Plan pursuant to Section 12 of the Plan.
9.    Grant of Option on Enrollment
With respect to an Offering Period, each Participant shall be granted (as of the Offering Date) an Option to purchase (as of the Purchase Date) a number of Shares equal to the lesser of (i) the Maximum Share Amount or (ii) the number determined by dividing the amount accumulated in the Participant’s Payroll Deduction Account during such Offering Period by the Purchase Price.
10.    Purchase Price
The Purchase Price at which a Share will be sold for a given Offering Period shall be established by the Committee, but shall in no event be less than eighty-five percent (85%) of the Fair Market Value of a Share on the Purchase Date.
11.    Payment of Purchase Price; Changes in Payroll Deductions; Issuance of Shares
Subject to Sections 12 and 13 of the Plan:
(a)    Unless otherwise determined by the Committee, payroll deductions shall be made on each day that a Participant is paid during an Offering Period.  The payroll deductions shall be made as 

    5    

a percentage of the Participant’s Compensation in 1% increments, from 1% to 10% of such Participant’s Compensation, as elected by the Participant; provided, however, that no Participant shall be permitted to purchase Shares under this Plan (or under any other “employee stock purchase plan” within the meaning of Section 423(b) of the Code, of the Company or any of its Subsidiaries) with an aggregate Fair Market Value (as determined as of each Offering Date) in excess of $25,000 for any one calendar year within the meaning of Section 423(b)(8) of the Code.  Unless otherwise determined by the Committee, for a given Offering Period, payroll deductions shall commence on the Offering Date and shall end on the related Purchase Date, unless sooner altered or terminated as provided in the Plan.
(b)    Except as otherwise provided by the Committee, a Participant shall not change the rate of payroll deductions once an Offering Period has commenced.  The Committee shall specify procedures by which a Participant may increase or decrease the rate of payroll deductions for subsequent Offering Periods.
(c)    All payroll deductions made with respect to a Participant (and other contributions made by a Participant to the extent provided by the Committee (the “Other Contributions”)) shall be credited to the Participant’s Payroll Deduction Account under the Plan and shall be deposited with the general funds of the Company, and no interest shall accrue on the amounts credited to such Payroll Deduction Account.  All payroll deductions and Other Contributions received or held by the Company may be used by the Company for any corporate purpose, and the Company shall not be obligated to segregate such payroll deductions or Other Contributions.  Except to the extent provided by the Committee, a Participant may not make any separate cash payments into the Participant’s Payroll Deduction Account, and payment for Shares purchased under the Plan may not be made in any form other than by payroll deduction.
(d)    On each Purchase Date, the Company shall apply all funds then in the Participant’s Payroll Deduction Account to purchase Shares (in whole and/or fractional Shares, as the case may be) pursuant to the Option granted on the Offering Date.  In the event that the number of Shares to be purchased by all Participants in one Offering Period exceeds the number of Shares then available for issuance under the Plan, (i) the Company shall make a pro rata allocation of the remaining Shares in as uniform a manner as shall be practicable and as the Committee shall determine to be equitable and (ii) all funds not used to purchase Shares on the Purchase Date shall be returned, without interest, to the Participants.
(e)    As soon as practicable following the end of each Offering Period, the number of Shares purchased by each Participant shall be deposited into an account established in the Participant’s name with the Plan Broker to be held by such Plan Broker during the period set forth in Section 423(a)(1) of the Code.  Unless otherwise permitted by the Committee in its sole discretion, dividends that are declared on the Shares held in such account shall be reinvested in whole or fractional Shares.  Notwithstanding anything in the Plan to the contrary, a Participant may not dispose of Shares acquired pursuant to the Plan for at least three months following the applicable Purchase Date.
(f)    Once the holding period set forth in Section 423(a)(1) of the Code has been satisfied with respect to a Participant’s Shares, the Participant may (i) transfer the Participant’s Shares to another brokerage account of the Participant’s choosing or (ii) request in writing that a stock certificate be issued to the Participant with respect to the whole Shares in the Participant’s account with the Plan Broker and that any fractional Shares remaining in such account be paid in cash to the Participant.  The Committee may require, in its sole discretion, that the Participant bear the cost of transferring such Shares or issuing certificates for such Shares.  Any Participant who engages in a “Disqualifying Disposition” of 

    6    

the Participant’s Shares within the meaning of Section 421(b) of the Code shall notify the Company of such Disqualifying Disposition in accordance with Section 20 of the Plan.
(g)    A Participant shall have no interest or voting right in the Shares covered by the Participant’s Option until such Option is exercised.
12.    Withdrawal
Each Participant may withdraw from an Offering Period or from the Plan under such terms and conditions as are established by the Committee in its sole discretion.  Upon a Participant’s withdrawal from participation in respect of an Offering Period or from the Plan, all accumulated payroll deductions and Other Contributions in the Payroll Deduction Account shall be returned, without interest, to such Participant, and such Participant shall not be entitled to any Shares on the Purchase Date or thereafter with respect to the Offering Period in effect at the time of such withdrawal.  Such Participant shall be permitted to participate in subsequent Offering Periods pursuant to such terms and conditions established by the Committee in its sole discretion.
13.    Termination of Employment
A Participant whose employment is terminated shall cease to participate in the Plan upon his or her termination of employment for any reason.  Upon such termination, all payroll deductions and Other Contributions credited to the former Participant’s Payroll Deduction Account shall be returned, without interest, to such former Participant or to the former Participant’s designated beneficiary, as the case may be, and such former Participant or beneficiary shall have no future rights in any unexercised Options under the Plan.
14.    Adjustments Upon Certain Events
Notwithstanding any other provisions in the Plan to the contrary, the following provisions shall apply to all Options granted under the Plan:
(a)    Generally.  In the event of any change in the outstanding Shares by reason of any Share dividend, split, reverse stock split, reorganization, recapitalization, merger, consolidation, spin-off, combination or exchange of Shares or other corporate exchange, or any distribution to stockholders of Shares other than regular cash dividends or any transaction similar to the foregoing, the Committee, in its sole discretion and without liability to any person, shall make such substitution or adjustment, if any, as it deems to be equitable, as to (i) the number or kind of Shares or other securities issued or reserved for issuance pursuant to the Plan, (ii) the Purchase Price, (iii) the number or kind of Shares or other securities subject to outstanding Options and/or (iv) any other affected terms of such Options.
(b)    Change in Control.  In the event of a Change in Control, the Committee in its sole discretion and without liability to any person may take such actions, if any, as it deems necessary or desirable with respect to any Option or Offering Period as of the date of the consummation of the Change in Control.
15.    Nontransferability 
No Options granted under the Plan shall be transferred, assigned, pledged or otherwise disposed of in any way by the Participant otherwise than by will or by the laws of descent and distribution.  Any such attempted transfer, assignment, pledge or other disposition shall be of no force or 

    7    

effect, except that the Committee may treat such act as an election to withdraw from the Offering Period in accordance with Section 12. 
16.    No Right to Employment
The granting of an Option under the Plan shall impose no obligation on the Company or any Subsidiary to continue the employment of a Participant and shall not lessen or affect the Company’s or Subsidiary’s right to terminate the employment of such Participant.
17.    Amendment or Termination of the Plan
The Plan shall continue until the earliest to occur of the following: (a) termination of the Plan by the Board, (b) issuance of all of the Shares reserved for issuance under the Plan, or (c) failure to satisfy the conditions of Section 22 of the Plan.  The Board may amend, alter or discontinue the Plan, but no amendment, alteration or discontinuation shall be made which (x) without the approval of the stockholders of the Company, would (except as is provided in Section 14 of the Plan), increase the total number of Shares reserved for the purposes of the Plan or (y) except as otherwise provided in Section 14(b), without the consent of a Participant, would impair any of the rights or obligations under any Option theretofore granted to such Participant under the Plan; provided, however, that the Committee may amend the Plan in such manner as it deems necessary to permit the granting of Options meeting the requirements of the Code or other applicable laws. 
18.    Tax Withholding
A Participant’s employer shall have the right to withhold from such Participant such withholding taxes as may be required by federal, state, local or other law, or to otherwise require the Participant to pay such withholding taxes.  Unless the Committee specifies otherwise, a Participant may elect to pay a portion or all of such withholding taxes by (a) delivery of Shares or (b) having Shares withheld by the Company from the Shares otherwise to be received.  The Shares so delivered or withheld shall have an aggregate Fair Market Value equal to the amount of such withholding taxes.
19.    International Participants
With respect to Participants who reside or work outside the United States of America, the Committee may, in its sole discretion, amend the terms of the Plan with respect to such Participants in order to conform such terms with the requirements of local law.
20.    Notices
All notices and other communications hereunder shall be in writing and hand delivered or mailed by registered or certified mail (return receipt requested) or sent by any means of electronic message transmission with delivery confirmed (by voice or otherwise) to the Company at the following address (or at such other address as shall be specified by like notice) and will be deemed given on the date on which such notice is received:
Cohen & Steers, Inc. 
280 Park Avenue 
New York, NY 10017 
Attention:  General Counsel

    8    

21.    Choice of Law
The Plan shall be governed by and construed in accordance with the laws of the State of New York without regard to the conflicts of laws provisions thereof.
22.    Effectiveness of the Plan
The Company’s 2004 Employee Stock Purchase Plan (the “Original Plan”) was originally adopted by the Board prior to the Company’s initial public offering in 2004. The Plan, as amended and restated herein, shall be effective upon the date of its approval by the Company’s shareholders at the Company’s 2013 Annual Meeting of Shareholders.

    9exhibit_101.htm - Generated by SEC Publisher for SEC Filing

  

 

 

 

 

 

	

   
   

   

   

   

   

   

   

    

	

   New York
	

   Chicago
	

   San Diego
	

   São Paulo
	

   Beijing
	

   Shanghai
	

   Hong Kong
	

   Taipei

	

   www.mzgroup.us

   +1-212-301-7130

 

 

Investor Relations Consulting and 
Representation Agreement 

THIS CONSULTING AND SERVICES AGREEMENT (“Agreement”) is made this April 26, 2013 by and between Brazil Minerals, Inc. (OTCBB: BMIX) (hereinafter referred to as the “Company” or “BMIX”) and MZ-HCI, LLC, a New York limited liability company (hereinafter referred to as the “Consultant” or “MZ-HCI”).

 

EXPLANATORY STATEMENT       

 

The Consultant affirms that it has successfully demonstrated financial and public relations consulting expertise, and possesses valuable knowledge, and experience in the areas of business finance and corporate investor/public relations. The Company believes that the Consultant’s knowledge, expertise and experience would benefit the Company, and the Company desires to retain the Consultant to perform consulting services for the Company subject to the terms and conditions of this Agreement.

 

NOW, THEREFORE, in consideration of their mutual agreements and covenants contained herein, and for other valuable consideration, the receipt and sufficiency of which is hereby acknowledged, and in further consideration of the affixation by the parties of their respective signatures below, the parties agree as follows:

 

Consulting Services               

 

1.1          MZ-HCI agrees that for a period of twelve (12) months commencing April 26, 2013, the Consultant will reasonably be available during regular business hours to advise, counsel and inform designated officers and employees of the Company with regard to financial markets and exchanges, competitors, business acquisitions and other aspects of or concerning the Company’s business about which MZ-HCI has knowledge or expertise.

 

1.2          MZ-HCI shall render services to the Company as an independent contractor, and not as an employee.   All services rendered by MZ-HCI  on behalf of the Company shall be performed to the best of MZ-HCI’s ability in concert with the overall business plan of the Company and the goals and objectives of the Company’s management and Board of Directors, including articulating BMIX’s investment story and highlights; building and maintaining relationships with supporters of the Company’s stock, including institutional investors and sell-side analysts; increasing the Company’s participation in investment conferences focused on small-cap companies; achieving a fair market value for the Company’s  stock; and significantly increasing the Company’ s exposure in the financial markets.  

 

 
Page 1 of 10                                                  MZHCI initials: ________                        Company initials:________

 

  

  

 

I.                    Scope of Services, Programs and Deliverables                

 

MZ-HCI will develop, implement, and maintain an ongoing stock market support system for BMIX with the general objective of expanding awareness of BMIX among stockbrokers, analysts, micro and small-cap portfolio/fund managers, market makers, and the appropriate financial & trade publications. 

1.            INVESTMENT COMMUNITY AWARENESS  

 

A.                  MZ-HCI will make introductions of the Company to professionals worldwide at select firms, with a focus on members of the financial community in various geographic regions. The targeted group of professionals, which would be drawn from our proprietary database of contacts, will be the following:

1.       High Net Worth investors

2.       Equity Brokers

3.       Analysts  

4.       Small-Cap Portfolio/Hedge Fund Managers

 

B.                  MZ-HCI will arrange Institutional/Broker conference calls/meetings in select cities (and at compatible times) with top management of BMIX.  Other interested parties can be introduced via conference calls. 

 

C.                  MZ-HCI will assist the Company’s management in hosting “Virtual Road Shows” - live investor presentations that will be webcasted from management’s locale. These will be by invitation only and participants will include current and prospective shareholders, institutional and retail investors, and buy/sell side analysts. 

 

D.                  MZ-HCI will provide Road Show assistance and will facilitate key meetings and road shows. These will be for large investors and will also be part of Institutional Brokerage Firm scheduled trips. 

 

E.                   MZ-HCI will continually update all interested parties of BMIX’s progress via phone conversations and through its fax/e-mail list for news releases. 

 

F.                   MZ-HCI will screen all investment firms for upcoming financial conferences, which would be appropriate for BMIX. MZ-HCI will work through the proper channels with the goal of receiving invitations for management to present at those relevant conferences.

 

2.            SHAREHOLDER COMMUNICATIONS      

 

A.                  MZ-HCI will understand the Company’s financials and all operating metrics in detail.  MZ-HCI will assist Company management with reviewing, editing and completing the Company’s MD&A for each 10-K, 10-Q and quarterly earnings release. 

 

B.                  MZ-HCI will handle investor requests for timely information via the telephone and e-mail, including both a hard copy and e-mail version of the investor package. MZ-HCI will 

have a knowledgeable team member available during market hours to field and respond to all investor inquiries and update the shareholder database accordingly. This helps shareholder retention by showing that the Company is shareholder friendly and proactive in its communication efforts.

Page 2 of 10                                                   MZHCI initials: ________                        Company initials:________

 

 

  

  

 

 

C.                  MZ-HCI will contact shareholders on a quarterly basis and gather perception feedback on their views of how the business is evolving and management’s execution relative to expectations. 

 

D.                  At the Company’s option, MZ-HCI will assist the Company in hosting Quarterly Conference Calls to accompany the Company’s earnings release. MZ-HCI will assist with scripting these calls and will monitor continuity to ensure a smooth roll-out for investors. 

       

3.                   THE FINANCIAL PRESS    

 

MZ-HCI will assist the Company’s management to draft and complete press releases on all material events as deemed by the Company and consistent with market standards. The Company’s management and corporate counsel will approve all releases before they are sent to the newswire.  MZ-HCI will disseminate news releases electronically to its established database of financial professionals, including: special situation analysts, brokers, fund managers, individual investors, money managers, and current or prospective individual shareholders who are already invested or have expressed an interest in BMIX.

 

4.                   PUBLIC MARKET INSIGHT   

 

MZ-HCI will counsel and educate the Company’s management on the life cycle of the financial markets and most importantly how the Company is impacted directly and indirectly by different macro and micro-economic variables. MZ-HCI will help the Company set and manage expectations as well as help them to understand the valuation metrics, perceptions, and methodologies utilized by investment professionals. This consulting aspect of MZ-HCI’s business is extremely valuable for management to optimize key opportunities and to avoid pitfalls, which periodically have long-term significant implications. 

 

III.     Timeline   

 

FIRST 30 DAYS  

 

A.      MZ-HCI will spend significant time with management to understand the business plan, financial forecasts, capital expenditure and cash flow projections. 

 

B.      MZ-HCI will create a two-page Corporate Profile, which clearly articulates BMIX’s current business and financial position, as well as its strategy for future growth. This is an important marketing piece for investors to quickly learn about the company. 

 

C.      MZ-HCI will review and update PowerPoint presentation utilizing MZ-HCI’s preferred format. MZ-HCI will utilize proprietary research and feedback from conversations and meetings to 

incorporate and improve the Investor PowerPoint and message delivery. The Investor PowerPoint shall be UPDATED AT LEAST ONE TIME PER QUARTER.

Page 3 of 10                                                   MZHCI initials: ________                        Company initials:________

 

 

  

  

 

 

D.      MZ-HCI will assist and provide input for all corporate press releases including both creation and ongoing revisions.  MZ-HCI will assist by providing additional fact finding and other market research which will help the context and delivery of the message. THIS WILL BE AN ONGOING INITIATIVE AND OBJECTIVE.

 

E.       MZ-HCI will create a formal investor package and promptly update it as necessary.  MZ-HCI will e-mail the current investor package directly upon investor request. Generally, this will include a two page corporate profile, PowerPoint and recent quarterly/annual press releases. Often times MZ-HCI will send investor packages electronically, but upon request MZ-HCI will also send printed material professionally presented in an IR folder.

 

F.       MZ-HCI will include BMIX in a new client feature plus include BMIX in future editions of the next MZ-HCI Client Newsletter.   

 

G.     Sponsored Road Show assistance – MZ-HCI will facilitate key meetings and road shows at BMIX facilities.  This will be for large investors and will also be part of Institutional Brokerage Firm scheduled trips.  THIS WILL BE ONGOING and MZ-CI represents that it currently has received several requests for visits to BMIX during the next few months. 

 

H.     MZ-HCI staff counsels management on all aspects of the capital markets and most importantly how BMIX is impacted directly and indirectly by different macro and micro-economic variables. MZ-HCI staff shall conduct a proprietary training program “Success in the Capital Markets” for the BMIX team. The goal is to enable management to optimize key opportunities and to avoid pitfalls, both which have long-term positive implications.  THIS WILL BE ONGOING.

 

DAYS 30-60    

 

A.      MZ-HCI will formalize a Press Release calendar (queue) for the months of April through June, 2013. MZ-HCI will create and release such press releases to the market and simultaneously to current and prospective investors’ inboxes.

 

B.      MZ-HCI will discuss with BMIX management any goals for obtaining new independent board members if necessary while being attentive to what qualities the optimal candidate would possess. 

  

C.      MZ-HCI will develop an initial target list and begin making introductions of BMIX to investment professionals and investors while scheduling and confirming meetings for upcoming Road Shows.  MZ-HCI will practice and refine presentations with BMIX’s management team.  MZ-HCI will initiate Road Shows and target brokers, micro-cap fund managers, Buy and Sell Side Analysts, and high net worth investors which follow companies with a similar profile to BMIX.

 

D.      A detailed description of each contact will be provided to the Company prior to the meeting. During the meetings and/or conference calls a member of MZ-HCI will be available in person 

to facilitate the correspondence and assist with due diligence. MZ-HCI will provide BMIX management with a summary of feedback, including MZ-HCI’s suggestions for improvements on both the context and delivery of the Company’s story.

Page 4 of 10                                                   MZHCI initials: ________                        Company initials:________

 

 

  

  

 

 

E.       MZ-HCI will include BMIX where applicable in interviews with all financial online sites.

 

F.       MZ-HCI will include BMIX in all presentations where MZ-HCI representatives will speak on BMIX’s specific industry.  

 

DAYS 60-90   

 

A.      MZ-HCI will target brokerage firms who hold conferences which would be applicable for BMIX. MZ-HCI will establish a goal of having management present in at least 1-3 new conferences during the period from April 2013 to April 2014. These would be non-paid for and have high institutional attendance, in addition to high net worth investors. MZ-HCI will also seek to have the Company included on “sell-side” sponsored investor tours. Additionally, MZ-HCI will seek opportunities to present the Company’s story to brokers directly at firms for both teach-ins and hosting small affairs in the city just after work. 

 

B.      A detailed description of each contact will be provided prior to the meeting. During the meetings and/or conference MZ-HCI will be available in person, as requested by BMIX, to facilitate the correspondence and assist with due diligence. BMIX management will be provided with a summary of feedback including MZ-HCI’s suggestions for improvements on both the context and delivery of the Company’s story.

 

C.      MZ-HCI will formalize and continually update the database to ensure that all press releases are faxed and/or e-mailed to all interested professionals. 

 

D.      MZ-HCI will target newsletter editors and publishers for a “Buy Recommendation.”  MZ-HCI will focus on Business Publications for appropriate stories on BMIX  products, key competitive advantages and value propositions to investors and industry players. MZ-HCI will follow-up as necessary with all interest parties with a goal of receiving a new piece of coverage for the Company at least every 45 days. 

 

E.       MZ-HCI will host Virtual Road Shows for management with goal of having at least 10-20 new investment professionals joining during each event. MZ-HCI shall attempt to alternate schedules between these events and traditional Road Shows to continue growing a pipeline of new and interested investors for BMIX.  

 

F.       MZ-HCI will update and conduct perception studies with current and future shareholders of BMIX to better understand current and future expectations. This information will be utilized in upcoming conference calls to ensure the Company is proactive and prudent in setting the correct bar for investors to measure performance. In addition, this information can be utilized to improve the presentation materials while defining key investment metrics.

 

G.     MZ-HCI will conduct and host quarterly and annual earnings call.   This will include full script creation, Q&A/FAQ compilation and practice.  MZ-HCI will incorporate feedback and key concepts into prepared remarks.  MZ-HCI will schedule the call, including webcast and 

generate a press release to notify shareholders of conference call (it should be released at least 7 days prior to call date). MZ-HCI will make call outs to maximize attendance and gather feedback to improve ongoing public correspondence.

Page 5 of 10                                                   MZHCI initials: ________                        Company initials:________

 

 

  

  

 

 

ONGOING – These services will be provided ongoing with a summary included in each quarterly update

 

A.      MZ-HCI will respond to all investor requests and calls in a timely manner to facilitate the distribution of corporate information. MZ-HCI will focus on educating shareholders, with the premise that an informed investor will become a longer term investor.

 

B.      MZ-HCI will formalize and continually update the database to ensure that all press releases are faxed and/or e-mailed to all interested professionals. This includes the input of notes to keep track of all investor correspondence and reminder calls to all investor prior to earnings conference calls.

 

C.      MZ-HCI will provide valuable consulting services to BMIX - This relates to educating management on how various actions could be both perceived and impact the public market. If necessary, MZ-HCI will be helpful in analyzing perspective acquisitions and financing needs and make key introductions where necessary.

 

D.      MZ-HCI will provide progress reports to senior management and evaluate achievements with a detailed report every quarter.

 

Many of the above items will occur simultaneously, but certain items will have chronological priority over others. As BMIX grows, MZ-HCI will recommend changes to the agenda that complements BMIX’s growth.  As the Company continues to execute its strategic plan by winning new customers and expanding its base of business MZ-HCI will target an expanded universe of institutional investors. At each stage of growth, the appropriate approach to the market will be incorporated into the agenda for optimal results.  

 

Assuming that management’s efforts are leading ultimately to success and greater profitability, the end results of this financial communication and awareness campaign should be:

 

A.      Increased disclosure and transparency in BMIX’s communication protocols with shareholders.

  

B.      An increase in the number of financial professionals well educated and knowledgeable about BMIX: including senior management, the Company’s products, and its current financial condition & growth opportunities.

 

C.      An increase in the liquidity of the Company’s common stock and a diversification of the Company’s shareholder base.

 

D.      Suitable and better access to the capital markets, which will facilitate future acquisitions and working capital needs. 

 

Page 6 of 10                                                   MZHCI initials: ________                        Company initials:________

 

 

  

  

 

Add-On Investor Relations Technology Services

 

1.        MZ Conference calls and Webcasts based on need

2.        IrNavigatorTM investor CRM

3.        XBRL and Edgar filings based on need

 

IV.       Term      

This Agreement becomes effective upon execution, and shall remain effective for a period of twelve (12) months from that date. Either party may terminate this Agreement on October 26, 2013 and at the end of any calendar month occurring thereafter, for any reason or no reason.   After the initial 1-year term, this Agreement shall automatically renew for a period of an additional twelve (12) months unless either party delivers to the other written notice of termination at least sixty (60) days prior to the end of the then current term.

 

Notwithstanding the foregoing, either party may terminate this Agreement in the event that the other party breaches any material term of this Agreement and fails to remedy such breach within ten (10) business days after receipt of a written notice of any such breach. A breach of any of the tasks set forth in Article III would constitute material breach. 

 

V.        Compensation    

 

	

Cash 

    
	

   Monthly consulting and services fee of $6,000 USD per month payable on the first business day of each month.

   Monthly fee of $750.00  per multi seat use of IrNavigatorTM

   Per use billing of Edgar and XBRL filings and Webcast and MZCast Conference Calls

    

	

Equity
	

   The Company will issue to MZ-HCI the equivalent of $9,000 USD in shares of common stock of BMIX (based on the average closing price of the common stock for the 30 trading days ended at the end of the quarter) each quarter for the first three full calendar quarters ending during the term of the contract (the quarters ending September 30, 2013, December 31, 2013 and March 31, 2014). Shares will be issued within 10 days of the start of the next calendar quarter. The issuance of the shares will not be registered under the U.S. securities laws and therefore are subject to restrictions on resale.

    

   In addition, on or before May 7, 2013, the Company will issue to MZ-HCI 162,000 shares of restricted common stock of BMIX. Such restricted stock shall be subject to forfeiture by MZ-HCI if prior to October 25, 2013, MZ-HCI or the Company terminate this Agreement  .  Such restricted stock may be subject to other restrictions applicable to restricted shares, including that the Company or its transfer agent may maintain custody of the certificate evidencing such shares until all restrictions on such shares lapse. 

    

	

Expense Reimbursement 

    
	

   In addition, only reasonable expenses that would ordinarily be incurred by the Company will be billed back on a monthly basis. Applicable reimbursements would include: creation, printing and postage for investor packages, fees for news wire services, and fees for fax-broadcasting news releases. Any extraordinary items, such as broker lunch presentations, air travel, hotel, ground transportation or media campaigns, etc. shall be paid by the Company, only with client authorization prior to incurring any expenses. 

    

 

Page 7 of 10                                                   MZHCI initials: ________                        Company initials:________

 

 

  

  

 

VI.     Prior Restriction     

 

MZ-HCI represents to the Company that it is not subject to, or bound by, any agreement which sets forth or contains any provision, the existence or enforcement of which would in any way restrict or hinder MZ-HCI from performing the services on behalf of the Company that MZ-HCI is herein agreeing to perform.

 

VII.      Assignment      

 

This Agreement is personal to MZ-HCI and may not be assigned in any way by MZ-HCI without the prior written consent of the Company.  Subject to the foregoing, the rights and obligations under this Agreement shall inure to the benefit of, and shall be binding upon, the successors and permitted assigns of MZ-HCI and upon the successors and assigns of the Company. 

 

VIII.    Confidentiality     

 

Except as required by law or court order, MZ-HCI will keep confidential any trade secrets or confidential or proprietary information of the Company which are now known to MZ-HCI or which hereinafter may become known to MZ-HCI and MZ-HCI shall not at any time directly or indirectly disclose or permit to be disclosed any such information to any person, firm, or corporation or other entity, or use the same in any way other than in connection with the business of the Company and in any case only with prior written permission of BMIX. For purposes of this Agreement, “trade secrets or confidential or proprietary information” includes information unique to or about the Company, including, but not limited to, its business which is not known or generally available to the public. BMIX and MZ-HCI hereby agree to execute a more comprehensive NDA. 

 

IX.       Default    

 

	Except for a claim or controversy arising under Section VIII of this Agreement and any claim under Section 2 of this Article IX, any claim or controversy arising under any of the provisions of this Agreement shall, at the election of either party hereto, be determined by arbitration in New York in accordance with the rules of the American Arbitration Association.  The decision of the Arbitrator shall be binding and conclusive upon the parties.  Each party shall pay its own costs and expenses in any such arbitration.  The prevailing party shall be entitled to reimbursement of all fees incurred, including attorney, filing, travel and anything associated with the arbitration. 

 

	In the event that MZ-HCI commits any material breach  of any  provision  of this Agreement, as determined by the Company in good faith, the Company may, by injunctive action, compel MZ-HCI to comply with, or restrain MZ-HCI from violating, such provision, and, in addition, and not in the alternative, the Company shall be entitled to declare MZ-HCI in default hereunder and to terminate this Agreement and any further payments hereunder. 

 

	(a) Since MZ-HCI must at all times rely upon the accuracy and completeness of information supplied to it by the Company’s officers, directors, agents, and employees, the Company agrees to indemnify, hold harmless, and defend MZ-HCI, its officers, agents, and employees at the Company’s expense, against  any proceeding or suit which may arise out of and/or be due to any material misrepresentation in such information  supplied by the Company to MZ-HCI (or any material omission by the Company that caused such supplied information to be materially misleading). 

Page 8 of 10                                                   MZHCI initials: ________                        Company initials:________

 

 

  

  

 

 

	 (b) MZ-HCI agrees to indemnify, hold harmless, and defend the Company, its officers, agents, and employees at MZ-HCI’s expense, against  any proceeding or suit which may arise out of and/or be due to any material misrepresentations concerning the Company made by MZ-HCI to the extent that (a) such misrepresentations or omissions were made or not made by MZ-HCI and were not based on information furnished in writing to MZ-HCI by the Company and (b) MZ-HCI knew, or in the exercise of reasonable diligence should have known at the time of disclosure, that such misrepresentations were incorrect or, in the case of material omissions, that the failure of MZ-HCI to disclose information about the Company, would cause the information disclosed by MZ-HCI about the Company to be materially misleading under the circumstances. 

 

X.         Severability and Reformation    

 

If any provision of this Agreement is held to be illegal, invalid, or unenforceable under present or future law, such provision shall be fully severable, and this Agreement shall be construed and enforced as if such illegal, invalid or unenforceable provision were never a part hereof, and the remaining provisions shall remain in full force and shall not be affected by the illegal, invalid, or unenforceable provision, or by its severance; but in any such event this Agreement shall be construed to give effect to the severed provision to the extent legally permissible.

 

XI.       Notices     

 

Any notices required by this Agreement shall (i) be made in writing and delivered to the party to whom it is addressed by hand delivery, by certified mail, return receipt requested, with adequate postage prepaid, or by courier delivery service (including major overnight delivery companies such as Federal Express and Airborne), (ii) be deemed given when received, and (iii) in the case of the Company, be mailed to its principal office at 324 South Beverly Drive, Suite 118 Beverly Hills, CA 90212 and in the case of MZ-HCI, be mailed to MZ-HCI, LLC at 61 Broadway, Suite 3035, New York, NY  10006

 

XII.       Miscellaneous     

 

	This Agreement may not be amended, except by a written instrument signed and delivered by each of the parties hereto. 

 

	This Agreement constitutes the entire understanding between the parties hereto with respect to the subject matter hereof, and all other agreements relating to the subject matter hereof are hereby superseded. 

 

	This Agreement shall be governed by, and construed in accordance with, the laws of the State of New York. 

Page 9 of 10                                                   MZHCI initials: ________                        Company initials:________

 

 

  

  

 

 

In Witness Whereof, the parties have executed this Consulting Agreement as of the day and year first above written.

 

AGREED:  

 

MZ-HCI, LLC                                                                                                       Brazil Minerals, Inc.

                                                                                       

 

By: _/s/ Ted Haberfield__________                                      By: _/s/ Marc Fogassa________  

      Ted Haberfield, President                                                        Marc Fogassa, CEO and Chairman

 

 

Date: __4/29/2013______________                                     Date: __4/29/2013___________              

 
Page 10 of 10                                                  MZHCI initials: ________                        Company initials:________

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00217-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00217-of-00352.parquet"}]]