Aztec Oil, Inc. has been doing business for more than 15 years with an Argentine Oil Company that has been nationalized by Argentine government during the last month. The new company is now called Petro Argentina. Aztec sells equipment used for drilling. Aztec also provides the maintenance for a fee on all Petro's heavy machinery at its factory. The government has indicated that it will continue to do business with Aztec and would like to set up a series of meetings in Geneva Switzerland. Petro's new director request that you transport Petro's new board of directors to at Aztec's expense Switzerland to meet with the president of Aztec and its key salespeople for 10 days. Aztec does not have offices or operations in Switzerland. Aztec's corporate offices are in New York and its plan and manufacturing facilities are located in New Jersey. The new director of Petro is requesting a daily stipend of $500. This is in addition to the hotel and lodging that Aztec will pay. Petro has mandated that general manager's brother-in-law be appointed as exclusive representative of Aztec Oil in Argentina. His compensation will be 6% of the gross sales based upon the price structure established by Petro. The new arrangement has been in effect for 6 months. However, the CEO of Aztec is feeling uneasy about this new arrangement. The CEO did not contact you prior to entering into this agreement, however he is now asking you for your advice on how to manage this relationship because he read in the newspaper that another service provider for Petro has been fined by the SEC (Securities and Exchange Commission). He also read that the Department of Justice may indict the CEO and top advisers of the other service provider. The CEO is asking for your advice. Discuss what if any laws have been violated. If there are violations should he report them? How would you suggest restructuring the business relationship with Petro? Aztec already has binding contracts with Petro. He is also concerned because Petro is 25 percent of the Aztec's total revenue. He is also asking for suggestions on what policies and procedures the company should establish to be in compliance with the FCPS.