Glossary

For the sake of clarity we have used the following definitions:

Producer

The party that mines the oil or gas or refines it.

Supplier

The party that owns the commodity.

Buyer

The party that will either use, distribute or sell on the Commodity in their own right.

Seller

The party that has the right to sell the Commodity.

Commodity

A crude or processed hydrocarbon based Commodity.

Trader

One who buys and sells securities for his/her personal account, not on behalf of clients. Trading activity consists of trying to capture short-term price swings. Many traders have little interest in the long-term prospects of the assets they trade. Traders seek their profits in the market’s zigs and zags. frequent, regular and continuous

Broker

An individual or firm which acts as an intermediary between a buyer and seller, usually charging a commission.

Agent

One who transacts business for another; an agent employed to effect bargains and contracts, as a middleman or negotiator, between other persons, for a compensation commonly called brokerage. He takes no possession, as broker, of the subject matter of the negotiation. He generally contracts in the names of those who employ him, and not in his own. One who acts for, or in the place of, another, by authority from him; one entrusted with the business of another; a substitute; a deputy; a factor. An agent undertakes to actively and continuously promote business within the territory or towards a group of customers for which he is responsible, the occasional intermediary has in principle no such obligation.

Intermediary

A third party who facilitates a deal between two other parties. In general, an intermediary is a person or service that is involved as a third party between two or more end points in a communication or transaction. The intermediary promotes the conclusion of contracts between a principal and a third party (while the distributor acts in his own name and for his own account as buyer-reseller). An intermediary may agree to promote a specific business or to inform the counterpart about business which may come to his notice, without any continuing obligation to develop the market. Moreover, the activity of an occasional intermediary may be limited to the simple supply of information about a possible business (names of potential customers, indication of a particular deal, etc.), while the commercial agent’s activity comprises necessarily the negotiation of contracts on behalf of the principal.

Investor

Typically investment activity is designed to benefit from long-term appreciation in securities, or to produce a significant amount of dividend or interest income. Investors are likely to be interested in a company’s balance sheet, longer term commodity value, market share, industry trends and other indicators of long-term viability. They have typically ignored short-term price fluctuations. However with the rapid fluctuations in the price of hydrocarbon derived Commodities, large investors are involved in relatively short term plays or contract financing.

Associate

A person through a written contractual relationship with Alchemie Energy is involved in the sourcing or sale of a Commodity

Proof of Product documentation includes

Ownership/title;

Seller’s/owner’s rights to sell to Buyer;

Storage tank receipt(s);

Quantity certificate issued by SGS or equivalent;

Quality certificate issued by SGS or equivalent;

Certificate of origin;

Custom’s declaration;

Copy of export license;

Seller’s commercial invoice;

Insurance declaration for the Commodity up to point of sale

Tax Evasion

Tax avoidance is the legal utilization of the tax regime to one’s own advantage, in order to reduce the amount of tax that is payable by means that are within the law. By contrast tax evasion is the general term for efforts by individuals, firms, trusts and other entities to evade taxes by illegal means. Tax evasion usually entails taxpayers deliberately misrepresenting or concealing the true state of their affairs to the tax authorities to reduce their tax liability, and includes, in particular, dishonest tax reporting (such as declaring less income, profits or gains than actually earned; or overstating deductions).

Transfer Pricing

Fiscal authorities worry that multi-national entities may set transfer prices on cross-border transactions to reduce taxable profits in their jurisdiction. This has led to the rise of transfer pricing regulations and enforcement, making transfer pricing a major tax compliance issue for multi-national companies. Most countries enforce tax laws based on the arm’s length principle as defined in the Organisation for Economic Co-operation and Development (OECD) Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations, limiting how transfer prices can be set and ensuring that that country gets to tax its “fair” share. In the past offshore intermediaries have been used to evade tax by taking the profit associated with a trade that should have been taxed in either the buyers or sellers country of domicile into a low tax domicile. Alchemie Energy undertakes a level of due diligence to ensure that this is not the case in any trade that it is associated with.

Bribery

Bribery is the offering, promising, giving or accepting of any undue pecuniary or other advantage to or by:

• a public official, at national, local or international level;
• a political party, party official or candidate; and
• a director, officer, employee or agent of a private enterprise

in order to obtain or retain a business or other improper advantage, e.g., in connection with regulatory permits, taxation, customs, judicial and legislative proceedings.