-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, QkWQBUxeaTqvSzeQefPLoQTN6L6KRCqI1yzY1alNCCeLzPCLFUs97u9jWtgxC8Hl QAvgbg9dJzA6ZpP+z0cAkA== 0001079974-09-000714.txt : 20090930 0001079974-09-000714.hdr.sgml : 20090930 20090930154616 ACCESSION NUMBER: 0001079974-09-000714 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 20090930 ITEM INFORMATION: Entry into a Material Definitive Agreement ITEM INFORMATION: Completion of Acquisition or Disposition of Assets ITEM INFORMATION: Unregistered Sales of Equity Securities ITEM INFORMATION: Changes in Control of Registrant ITEM INFORMATION: Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers: Compensatory Arrangements of Certain Officers ITEM INFORMATION: Amendments to Articles of Incorporation or Bylaws; Change in Fiscal Year ITEM INFORMATION: Change in Shell Company Status ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20090930 DATE AS OF CHANGE: 20090930 FILER: COMPANY DATA: COMPANY CONFORMED NAME: WhistlePig Enterprises Inc CENTRAL INDEX KEY: 0001416729 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-MANAGEMENT CONSULTING SERVICES [8742] IRS NUMBER: 000000000 STATE OF INCORPORATION: CO FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-53095 FILM NUMBER: 091095583 BUSINESS ADDRESS: STREET 1: 1777 Whistlepig Ln CITY: Broomfield STATE: CO ZIP: 80020 BUSINESS PHONE: 303-793-0304 MAIL ADDRESS: STREET 1: 1777 Whistlepig Ln CITY: Broomfield STATE: CO ZIP: 80020 8-K 1 whistlepig8k_9302009.htm 8-K whistlepig8k_9302009.htm

 
FORM 8-K

SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

CURRENT REPORT

Pursuant to Section 13 or 15(d)
of the Securities Act of 1934

Date of Report (Date of earliest event reported) September 30, 2009

WHISTLEPIG ENTERPRISES, INC.
 (Exact Name of Small Business Issuer as specified in its charter)


Colorado
000-53095
26-0460511
(State or other jurisdiction of incorporation)
(Commission File Number)
(IRS Employer Identification No.)

7060 B. South Tucson Way, Centennial, Colorado 80112
 (Address of principal executive offices including zip code)

303-617-8919
 (Registrant's telephone number, including area code)

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[  ]
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
   
[  ]
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
   
[  ]
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
   
[  ]
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 
 

 

FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Act of 1934

References in this document to "us," "we," or "Company" refer to WhistlePig Enterprises, Inc.
 
 
TABLE OF CONTENTS


   
Item 1.01 Entry into a Material Definitive Agreement
3
Item 2.01 Completion of Acquisition or Disposition of Assets
  3
   
PART I
 
Item 1. Description of Business
 4
Item 2. Management’s Discussion and Analysis or Plan of Operation
  13
Item 3. Description of Property
  19
Item 4. Security Ownership of Certain Beneficial Owners and Management
  20
Item 5. Directors, Executive Officers, Promoters and Control Persons
 21
Item 6. Executive Compensation
  22
Item 7. Certain Relationships and Related Transactions, and Director Independence
  22
Item 8. Description of Securities.
22
   
PART II
 
Item 1. Market Price of and Dividends on the Registrant’s Common Equity and Other Shareholder Matters
22
Item 2. Legal Proceedings
23
Item 4. Recent Sales of Unregistered Securities
  23
Item 5. Indemnification of Directors and Officers
  23
   
PART III
 
Item 3.02 Unregistered Sales of Equity Securities
23
Item 5.01 Changes in Control of Registrant
  24
Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers
  24
Item 5.03 Amendments to Articles of Incorporation or Bylaws; Change in Fiscal Year
  24
Item 5.06 Change in Shell Company Status
  24
Item 9.01 Financial Statements And Exhibits
  24
   
SIGNATURES
26
   
EXHIBIT INDEX
 



 
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On September 30, 2009, WhistlePig Enterprises, Inc., a Colorado corporation (“WHISTLEPIG”) and CST Oil & Gas Corporation, a Colorado corporation, (“CST”) entered into a Share Exchange agreement (the “Share Exchange Agreement”) whereby the shareholders of  CST exchanged all of their common stock for common shares of WHISTLEPIG(the “Share Exchange”).  In connection with the Share Exchange, the stockholders of CST exchanged all of their CST stock for a total of 8,000,000 shares of common stock of WHISTLEPIG.  Immediately prior to the Share Exchange, certain existing shareholders of WHISTLEPIG tendered a total of 8,000,000 shares of WHISTLEPIG’s common stock to the company for cancellation, leaving 1,696,000 issued and outstanding WHISTLEPIG common shares.  As a result, following the Share Exchange WHISTLEPIG had 9,696,000 shares of its common stock issued and outstanding, of which approximately  84.6% were held by the former shareholders of CST. Following the closing of the Share Exchange, WHISTLEPIG’s name will be changed to CST Holding Corp, or some derivation thereof.


See Item 1.01, Entry into a Material Definitive Agreement.



FORWARD-LOOKING STATEMENTS

                Statements in this current report on Form 8-K may be “forward-looking statements.” Forward-looking statements include, but are not limited to, statements that express our intentions, beliefs, expectations, strategies, predictions or any other statements relating to our future activities or other future events or conditions. These statements are based on current expectations, estimates and projections about our business based, in part, on assumptions made by management. These forward looking statements include, without limitation, those statements contained in this current report regarding our ability to successfully complete development of our product, the capabilities, performance and competitive advantages of our products following completion of development, our ability to compete and successfully sell our product in our target markets, our future hiring of sufficient numbers and types of qualified employees, any competitive advantage or protection that our intellectual property rights will provide to us and the occurrence and timing of the availability of our product, the establishment of reference sites and initial commercial sales of our product. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may, and are likely to, differ materially from what is expressed or forecasted in the forward-looking statements due to numerous factors, including those described above and those risks discussed from time to time in this prospectus, including the risks described under “Risk Factors,” and “Management’s Discussion and Analysis or Plan of Operation” in this current report and in other documents which we file with the Securities and Exchange Commission. In addition, such statements could be affected by risks and uncertainties related to our ability to raise any financing which we may require for our operations, competition, government regulations and requirements, pricing and development difficulties, our ability to make acquisitions and successfully integrate those acquisitions with our business, as well as general industry and market conditions and growth rates, and general economic conditions. Any forward-looking statements speak only as of the date on which they are made, and we do not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this current report.

 
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Item 1. Description of Business.

Business of CST.

CST provides well servicing and roustabout services to the petroleum industry in Kansas. CST’s primary focus is to provide services that help maintain coal bed methane and oil wells operated by small and mid-size independent producers in the southeastern area of the state. Well servicing and roustabout services are required to maintain the gas and\or oil flow from a well. There is an ongoing need to periodically remove and replace damaged or corroded production tubing, retrieve safety valves or malfunctioning submersible pumps or risk  substantial decline and possible complete loss of production.  Roustabout services, which include well servicing and work immediately associated with the well, also includes site maintenance, pipeline installation, road and surface facilities construction. . CST currently owns and operates one workover rig. . CST is evaluating expansion possibilities in this immediate area as the downturn in the industry has eliminated several competitors in southeastern Kansas. The long term plan for . CST is to expand with additional workover rigs into adjacent areas as commodity prices recover and drilling activity escalates.

Although there are numerous competitors that provide substantially similar services as CST, its ability to provide multiple well and roustabout services at competitive rates with high quality personnel affords us a reasonable advantage. . CST strives to maintain an excellent work and safety record and consistently beat the competition in terms of quality work provided. At times, with limited available workover rigs and servicing equipment operating in the area, demand for such equipment exceeds supply. Since CST maintains personnel and equipment in the Kansas area it has the ability to promptly relocate in response to changing market conditions.

 
Background of Transaction.
 
CST Oil & Gas Corporation, a Colorado corporation (“CST”) was formed on May 8, 1985 to engage in the oil and gas business. CST has been a private company since its formation and has carried on active operations in the oil and gas business. Currently, its focus is to provide well servicing and roustabout services to the petroleum industry in Kansas

On September 30, 2009, WhistlePig Enterprises, Inc., a Colorado corporation (“WHISTLEPIG”) and CST Oil & Gas Corporation, a Colorado corporation, (“CST”) entered into a Share Exchange agreement (the “Share Exchange Agreement”) whereby the shareholders of  CST exchanged all of their common stock for common shares of WHISTLEPIG(the “Share Exchange”).  In connection with the Share Exchange, the stockholders of CST exchanged all of their CST stock for a total of 8,000,000 shares of common stock of WHISTLEPIG.  Immediately prior to the Share Exchange, certain existing shareholders of WHISTLEPIG tendered a total of 8,000,000 shares of WHISTLEPIG’s common stock to the company for cancellation, leaving 1,696,000 issued and outstanding WHISTLEPIG common shares.  As a result, following the Share Exchange WHISTLEPIG had 9,696,000 shares of its common stock issued and outstanding, of which approximately  84.6% were held by the former shareholders of CST. Following the closing of the Share Exchange, WHISTLEPIG’s name will be changed to CST Holding Corp, or some derivation thereof.  Upon completion of the Share Exchange, we adopted CST’s business plan.
 
   RISK FACTORS
 
 
        An investment in our common stock involves a number of risks. You should carefully read and consider the following risks as well as the other information contained in this prospectus, including the financial statements and the notes to those financial statements, before making an investment decision. The realization of any of the risks described below could have a material adverse affect on our business, financial condition, results of operations, cash flows and/or future prospects. The trading price of our common stock could decline due to any of these risks, and you could lose part or all of your investment. The order of these risk factors does not reflect their relative importance or likelihood of occurrence.
 

 
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Risks Relating to the Oil and Natural Gas Industry
 
We derive all our revenues from the oil and natural gas exploration and production industry, a historically cyclical industry with levels of activity that are significantly affected by the levels and volatility of oil and natural gas prices.
 
Worldwide political, economic and military events have contributed to oil and natural gas price volatility and are likely to continue to do so in the future. Depending on the market prices of oil and natural gas, oil and natural gas exploration and production companies may cancel or curtail their drilling programs, thereby reducing demand for our services. Oil and natural gas prices have been volatile historically and, we believe, will continue to be so in the future. Many factors beyond our control affect oil and natural gas prices, including:
 
 
l
the cost of exploring for, producing and delivering oil and natural gas;
     
 
l
the discovery rate of new oil and natural gas reserves;
     
 
l
the rate of decline of existing and new oil and natural gas reserves;
     
 
l
available pipeline and other oil and natural gas transportation capacity;
     
 
l
the ability of oil and natural gas companies to raise capital;
     
 
l
actions by OPEC, the Organization of Petroleum Exporting Countries;
     
 
l
political instability in the Middle East and other major oil and natural gas producing regions;
     
 
l
economic conditions in the United States and elsewhere;
     
 
l
governmental regulations, both domestic and foreign;
     
 
l
domestic and foreign tax policy;
     
 
l
weather conditions in the United States and elsewhere;
     
 
l
the pace adopted by foreign governments for the exploration, development and production of their national reserves;
     
 
l
the price of foreign imports of oil and natural gas; and
     
 
l
the overall supply and demand for oil and natural gas.
     
    Any prolonged reduction in the overall level of exploration and development activities, whether resulting from changes in oil and natural gas prices or otherwise, can adversely impact us in many ways by negatively affecting: 
 
 
l
our revenues, cash flows and profitability;
     
 
l
our ability to maintain or increase our borrowing capacity;
     
 
l
our ability to obtain additional capital to finance our business and make acquisitions, and the cost of that capital;
     
 
l
our ability to retain skilled rig personnel whom we would need in the event of an upturn in the demand for our services; and
     
 
l
the fair market value of our rig fleet.


 

 
- 5 -

 
Risks Relating to Our Business
 
Increases in the supply of rigs could decrease dayrates and utilization rates.
 
    An increase in the supply of land rigs, whether through new construction or refurbishment, could decrease dayrates and utilization rates, which would adversely affect our revenues and profitability. In addition, such adverse affect on our revenue and profitability caused by such increased competition and lower dayrates and utilization rates could be further aggravated by any downturn in oil and natural gas prices. There has been a substantial increase in the supply of land rigs in the United States over the past two years which has led to a broad decline in dayrates and utilization industry wide.

A material reduction in the levels of exploration and development activities in Kansas  or an increase in the number of rigs mobilized to Kansas could negatively impact our dayrates and utilization rates.

We currently conduct all of our operations in Kansas. A material reduction in the levels of exploration and development activities in Kansas due to a variety of oil and natural gas industry risks described above or an increase in the number of rigs mobilized to Kansas could negatively impact our dayrates and utilization rates, which could adversely affect our revenues and profitability.

We operate in a highly competitive, fragmented industry in which price competition could reduce our profitability.
 
The fact that workover rigs are mobile and can be moved from one market to another in response to market conditions heightens the competition in the industry.
 
The well service contracts we compete for are usually awarded on the basis of competitive bids or direct negotiations with customers. We believe pricing and quality of equipment are the primary factors our potential customers consider in determining which contractor to select. In addition, we believe the following factors are also important:
 
 
l
the type and condition of each of the competing workover rigs;
 
 
l
the mobility and efficiency of the rigs;
 
 
l
the quality of service and experience of the rig crews;
 
 
l
the offering of ancillary services; and
 
 
l
the ability to provide equipment adaptable to, and personnel familiar with, new technologies and techniques.
 
    While we must be competitive in our pricing, our competitive strategy generally emphasizes the quality of our equipment and experience of our rig crews to differentiate us from our competitors. This strategy is less effective as lower demand for drilling services or an oversupply of rigs usually results in increased price competition and makes it more difficult for us to compete on the basis of factors other than price. In all of the markets in which we compete, an oversupply of rigs can cause greater price competition which can, in turn, reduce our profitability.
 
Contract well service companies compete primarily on a regional basis, and the intensity of competition may vary significantly from region to region at any particular time. If demand for drilling services improves in a region where we operate, our competitors might respond by moving in suitable rigs from other regions. An influx of rigs from other regions could rapidly intensify competition and reduce profitability.
 

 
- 6 -

 

We face competition from competitors with greater resources that may make it more difficult for us to compete, which can reduce our dayrates and utilization rates.
 
Some of our competitors have greater financial, technical and other resources than we do that may make it more difficult for us to compete, which can reduce our dayrates and utilization rates. Their greater capabilities in these areas may enable them to:
 
 
l
better withstand industry downturns;
 
 
l
compete more effectively on the basis of price and technology;
 
 
l
retain skilled rig personnel; and
 
 
l
build new rigs or acquire and refurbish existing rigs so as to be able to place rigs into service more quickly than us in periods of high drilling demand.

Our operations involve operating hazards, which if not insured or indemnified against, could adversely affect our results of operations and financial condition.
 
Our operations are subject to the many hazards inherent in the contract well servicing business, including the risks of:
 
 
l
blowouts;
     
 
l
fires and explosions;
     
 
l
loss of well control;
     
 
l
collapse of the borehole;
     
 
l
lost or stuck drill strings; and
     
 
l
damage or loss from natural disasters.
 
Any of these hazards can result in substantial liabilities or losses to us from, among other things:
 
 
l
suspension of service operations;
 
       
 
l
damage to, or destruction of, our property and equipment and that of others;
 
       
 
l
personal injury and loss of life;
 
     
 
l
damage to producing or potentially productive oil and natural gas formations through which we service; and
       
 
l
environmental damage.
 
 
We seek to protect ourselves from some but not all operating hazards through insurance coverage. However, some risks are either not insurable or insurance is available only at rates that we consider uneconomical. Depending on competitive conditions and other factors, we attempt to obtain contractual protection against uninsured operating risks from our customers. However, customers who provide contractual indemnification protection may not in all cases maintain adequate insurance to support their indemnification obligations. Our insurance or indemnification arrangements may not adequately protect us against liability or loss from all the hazards of our operations. The occurrence of a significant event that we have not fully insured or indemnified against or the failure of a customer to meet its indemnification obligations to us could materially and adversely affect our results of operations and financial condition. Furthermore, we may be unable to maintain adequate insurance in the future at rates we consider reasonable.

 
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We face increased exposure to operating difficulties because we have a substantial  focus on drilling for natural gas.
 
    A substantial number of our well service contracts are with exploration and production companies in search of natural gas, particularly in coal bed methane. Drilling on land for natural gas generally occurs at deeper drilling depths than drilling for oil. Although deep-depth drilling exposes us to risks similar to risks encountered in shallow-depth drilling, the magnitude of the risk for deep-depth drilling is greater because of the higher costs and greater complexities involved in drilling deep wells. We generally enter into International Association of Drilling Contractors contracts that contain “daywork” indemnification language that transfers responsibility for down hole exposures such as blowout and fire to the operator, leaving us responsible only for damage to our rig and our personnel. If we do not adequately insure the risk from blowouts or if our contractual indemnification rights are insufficient or unfulfilled, our profitability and other results of operation and our financial condition could be adversely affected in the event we encounter blowouts or other significant operating difficulties while drilling at deeper depths.
 
Our operations are subject to various laws and governmental regulations that could restrict our future operations and increase our operating costs.
 
Many aspects of our operations are subject to various federal, state and local laws and governmental regulations, including laws and regulations governing:
 
 
l
environmental quality;
 
 
l
pollution control;
 
 
l
remediation of contamination;
 
 
l
preservation of natural resources; and
 
 
l
worker safety.
 
Our operations are subject to stringent federal, state and local laws and regulations governing the protection of the environment and human health and safety. Several such laws and regulations relate to the disposal of hazardous oilfield waste and restrict the types, quantities and concentrations of such regulated substances that can be released into the environment. Several such laws also require removal and remedial action and other cleanup under certain circumstances, commonly regardless of fault. Planning, implementation and maintenance of protective measures are required to prevent accidental discharges. Spills of oil, natural gas liquids, drilling fluids and other substances may subject us to penalties and cleanup requirements. Handling, storage and disposal of both hazardous and non-hazardous wastes are also subject to these regulatory requirements. In addition, our operations are often conducted in or near ecologically sensitive areas, which are subject to special protective measures and that may expose us to additional operating costs and liabilities for accidental discharges of oil, natural gas, drilling fluids, contaminated water or other substances or for noncompliance with other aspects of applicable laws and regulations. Historically, we have not been required to obtain environmental or other permits prior to drilling a well. Instead, the operator of the oil and gas property has been obligated to obtain the necessary permits at its own expense.
 

 
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The federal Clean Water Act, as amended by the Oil Pollution Act, the federal Clean Air Act, the federal Resource Conservation and Recovery Act, the federal Comprehensive Environmental Response, Compensation, and Liability Act, or CERCLA, the Safe Drinking Water Act, the Occupational Safety and Health Act, or OSHA, and their state counterparts and similar statutes are the primary vehicles for imposition of such requirements and for civil, criminal and administrative penalties and other sanctions for violation of their requirements. The OSHA hazard communication standard, the Environmental Protection Agency “community right-to-know” regulations under Title III of the federal Superfund Amendment and Reauthorization Act and comparable state statutes require us to organize and report information about the hazardous materials we use in our operations to employees, state and local government authorities and local citizens. In addition, CERCLA, also known as the “Superfund” law, and similar state statutes impose strict liability, without regard to fault or the legality of the original conduct, on certain classes of persons who are considered responsible for the release or threatened release of hazardous substances into the environment. These persons include the current owner or operator of a facility where a release has occurred, the owner or operator of a facility at the time a release occurred, and companies that disposed of or arranged for the disposal of hazardous substances found at a particular site. This liability may be joint and several. Such liability, which may be imposed for the conduct of others and for conditions others have caused, includes the cost of removal and remedial action as well as damages to natural resources. Few defenses exist to the liability imposed by environmental laws and regulations. It is also not uncommon for third parties to file claims for personal injury and property damage caused by substances released into the environment.
 
Environmental laws and regulations are complex and subject to frequent changes. Failure to comply with governmental requirements or inadequate cooperation with governmental authorities could subject a responsible party to administrative, civil or criminal action. We may also be exposed to environmental or other liabilities originating from businesses and assets that we acquired from others. We are in substantial compliance with applicable environmental laws and regulations and, to date, such compliance has not materially affected our capital expenditures, earnings or competitive position. We do not expect to incur material capital expenditures in our next fiscal year in order to comply with current or reasonably anticipated environment control requirements. However, our compliance with amended, new or more stringent requirements, stricter interpretations of existing requirements or the future discovery of regulatory noncompliance or contamination may require us to make material expenditures or subject us to liabilities that we currently do not anticipate.
 
In addition, our business depends on the demand for land drilling services from the oil and natural gas industry and, therefore, is affected by tax, environmental and other laws relating to the oil and natural gas industry generally, by changes in those laws and by changes in related administrative regulations. It is possible that these laws and regulations may in the future add significantly to our operating costs or those of our customers or otherwise directly or indirectly affect our operations.
 
We rely on a few key employees whose absence or loss could disrupt our operations resulting in a loss of revenues.
 
          Many key responsibilities within our business have been assigned to a small number of employees. The loss of their services, particularly the loss of Christine Tedesco, our Chief Executive and Financial Officer, could disrupt our operations resulting in a loss of revenues. We have no employment agreements our employees.  In addition, we do not maintain “key person” life insurance policies on any of our employees. As a result, we are not insured against any losses resulting from the death of our key employees.
 
We may be unable to attract and retain qualified, skilled employees necessary to operate our business.
 
Our success depends in large part on our ability to attract and retain skilled and qualified personnel. Our inability to hire, train and retain a sufficient number of qualified employees could impair our ability to manage and maintain our business. We require skilled employees who can perform physically demanding work. Shortages of qualified personnel are occurring in our industry. As a result of the volatility of the oil and natural gas industry and the demanding nature of the work, potential employees may choose to pursue employment in fields that offer a more desirable work environment at wage rates that are competitive with ours. If we should suffer any material loss of personnel to competitors or be unable to employ additional or replacement personnel with the requisite level of training and experience to adequately operate our equipment, our operations could be materially and adversely affected. With a reduced pool of workers, it is possible that we will have to raise wage rates to attract workers from other fields and to retain our current employees. If we are not able to increase our service rates to our customers to compensate for wage-rate increases, our profitability and other results of operations may be adversely affected.

 
- 9 -

 

 
Shortages in equipment and supplies could limit our operations and jeopardize our relations with customers.
 
The materials and supplies we use in our operations include fuels to operate our  equipment,  pipe,  and collars, t. Shortages in  equipment and supplies could limit our  workover operations and jeopardize our relations with customers. We do not rely on a single source of supply for any of these items. From time to time there have been shortages of equipment and supplies during periods of high demand which we believe could reoccur. Shortages could result in increased prices for  equipment or supplies that we may be unable to pass on to customers. In addition, during periods of shortages, the delivery times for equipment and supplies can be substantially longer. Any significant delays in our obtaining  equipment or supplies could limit our operations and jeopardize our relations with customers. In addition, shortages of  equipment or supplies could delay and adversely affect our ability to obtain new contracts for our  workover rigs, which could negatively impact our revenues and profitability.
 
Risks Related to Ownership of Our Common Stock

We have incurred and will continue to incur increased costs as a result of being a public company.
 
As a result of becoming a public company, we have incurred and will continue to incur significant legal, accounting and other expenses that we did not incur as a private company. We have incurred and will continue to incur costs associated with our public company reporting requirements and costs associated with recently adopted corporate governance requirements, including requirements under the Sarbanes-Oxley Act of 2002, as well as new rules implemented by the SEC and the NASD.  These rules and regulations could increase our legal and financial compliance costs and could make some activities more time-consuming and costly. These new rules and regulations could make it more difficult and more expensive for us to obtain director and officer liability insurance and we may be required to accept reduced policy limits and coverage or incur substantially higher costs to obtain the same or similar coverage. As a result, it may be more difficult for us to attract and retain qualified individuals to serve on our board of directors or as executive officers.
 
The price of our common stock may be extremely volatile.
 
        In some future periods, our results of operations may be below the expectations of public market investors, which could negatively affect the market price of our common stock. Furthermore, the stock market in general has experienced extreme price and volume fluctuations in recent years. We believe that, in the future, the market price of our common stock could fluctuate widely due to variations in our performance and operating results or because of any of the following factors:
 
l
announcements of new services, products, technological innovations, acquisitions or strategic relationships by us or our competitors;
l
trends or conditions in the software, business process outsourcing and Internet markets;
l
changes in market valuations of our competitors; and
l
general political, economic and market conditions.
 
 In addition, the market prices of securities of well service companies, including our own, have been volatile and have experienced fluctuations that have often been unrelated or disproportionate to a specific company's operating performance. As a result, investors may not be able to sell shares of our common stock at or above the price at which an investor purchase paid. In the past, following periods of volatility in the market price of a company's securities, securities class action litigation has often been instituted against that company. If any securities litigation is initiated against us, we could incur substantial costs and our management's attention could be diverted from our business.
 
Quarterly and annual operating results may fluctuate, which could cause our stock price to be volatile.
 
        Our quarterly and annual operating results may fluctuate significantly in the future due to a variety of factors that could affect our revenues or our expenses in any particular period. You should not rely on our results of operations during any particular period as an indication of our results for any other period. Factors that may adversely affect our periodic results may include the loss of a significant account or accounts.
 

 
- 10 -

 

 
        Our operating expenses are based in part on our expectations of our future revenues and are partially fixed in the short term. We may be unable to adjust spending quickly enough to offset any unexpected revenue shortfall.
 
The significant concentration of ownership of our common stock will limit an investor's ability to influence corporate actions.
 
        The concentration of ownership of our common stock may limit an investor's ability to influence our corporate actions and have the effect of delaying or deterring a change in control of our company, could deprive our stockholders of an opportunity to receive a premium for their common stock as part of a sale of our company, and may affect the market price of our common stock. Certain major stockholders, if they act together, are able to substantially influence all matters requiring stockholder approval, including the election of all directors and approval of significant corporate transactions and amendments to our articles of incorporation. These stockholders may use their ownership position to approve or take actions that are adverse to interests of other investors or prevent the taking of actions that are inconsistent with their respective interests.
 
We are subject to compliance with securities law, which exposes us to potential liabilities, including potential rescission rights.
 
We have offered and sold our common stock to investors pursuant to certain exemptions from the registration requirements of the Securities Act of 1933, as well as those of various state securities laws. The basis for relying on such exemptions is factual; that is, the applicability of such exemptions depends upon our conduct and that of those persons contacting prospective investors and making the offering. We have not received a legal opinion to the effect that any of our prior offerings were exempt from registration under any federal or state law. Instead, we have relied upon the operative facts as the basis for such exemptions, including information provided by investors themselves.
 
If any prior offering did not qualify for such exemption, an investor would have the right to rescind its purchase of the securities if it so desired. It is possible that if an investor should seek rescission, such investor would succeed. A similar situation prevails under state law in those states where the securities may be offered without registration in reliance on the partial preemption from the registration or qualification provisions of such state statutes under the National Securities Markets Improvement Act of 1996. If investors were successful in seeking rescission, we would face severe financial demands that could adversely affect our business and operations. Additionally, if we did not in fact qualify for the exemptions upon which it has relied, we may become subject to significant fines and penalties imposed by the SEC and state securities agencies.
 
The availability of a large number of authorized but unissued shares of common stock may, upon their issuance, lead to dilution of existing stockholders.
 
We are authorized to issue 50,000,000 shares of common stock, $0.001 par value per share, of which, as of September 30, 2009, 9,696,000 shares of common stock were issued and outstanding. These shares may be issued by our board of directors without further stockholder approval. The issuance of large numbers of shares, possibly at below market prices, is likely to result in substantial dilution to the interests of other stockholders. In addition, issuances of large numbers of shares may adversely affect the market price of our common stock.
 
Further, our Articles of  Incorporation authorizes 1,000,000 shares of preferred stock, $0.01 par value per share. The board of directors is authorized to provide for the issuance of these unissued shares of preferred stock in one or more series, and to fix the number of shares and to determine the rights, preferences and privileges thereof. Accordingly, the board of directors may issue preferred stock which convert into large numbers of shares of common stock and consequently lead to further dilution of other shareholders.
 
We do not intend to pay cash dividends in the foreseeable future
 
We currently intend to retain all future earnings for use in the operation and expansion of our business. We do not intend to pay any cash dividends in the foreseeable future but will review this policy as circumstances dictate.

 
 
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There is currently no trading market for our securities and there can be no assurance that any  liquid market will ever develop.
 
There is currently no trading market for our common. There can be no assurance as to whether an orderly market will develop, (if ever) in our common stock.  As a result, we expect that the price at which our stock trades is likely to fluctuate significantly. Prices for our common stock will be determined in the marketplace and may be influenced by many factors, including the depth and liquidity of the market for shares of our common stock, developments affecting our business, including the impact of the factors referred to elsewhere in these Risk Factors, investor perception of us and general economic and market conditions. No assurances can be given that an orderly or liquid market will ever develop for the shares of our common stock. Owing to the anticipated low price of the securities, many brokerage firms may not be willing to effect transactions in the securities. See “Broker-dealers may be discouraged from effecting transactions in our common stock because they are considered a penny stock and are subject to the penny stock rules.”
 
Our common stock is subject to the Penny Stock Regulations
 
Our common stock and will likely be subject to the SEC's “penny stock” rules to the extent that the price remains less than $5.00. Those rules, which require delivery of a schedule explaining the penny stock market and the associated risks before any sale, may further limit your ability to sell your shares.
 
The SEC has adopted regulations which generally define “penny stock” to be an equity security that has a market price of less than $5.00 per share. Our common stock, when and if a trading market develops, may fall within the definition of penny stock and subject to rules that impose additional sales practice requirements on broker-dealers who sell such securities to persons other than established customers and accredited investors (generally those with assets in excess of $1,000,000, or annual incomes exceeding $200,000 or $300,000, together with their spouse).
 
For transactions covered by these rules, the broker-dealer must make a special suitability determination for the purchase of such securities and have received the purchaser's prior written consent to the transaction. Additionally, for any transaction, other than exempt transactions, involving a penny stock, the rules require the delivery, prior to the transaction, of a risk disclosure document mandated by the Commission relating to the penny stock market. The broker-dealer also must disclose the commissions payable to both the broker-dealer and the registered representative, current quotations for the securities and, if the broker-dealer is the sole market-maker, the broker-dealer must disclose this fact and the broker-dealer's presumed control over the market. Finally, monthly statements must be sent disclosing recent price information for the penny stock held in the account and information on the limited market in penny stocks. Consequently, the `penny stock` rules may restrict the ability of broker-dealers to sell our common stock and may affect the ability of investors to sell their common stock in the secondary market.
 
Our common stock is illiquid and subject to price volatility unrelated to our operations
 
The market price of our common stock could fluctuate substantially due to a variety of factors, including market perception of our ability to achieve our planned growth, quarterly operating results of other companies in the same industry, trading volume in our common stock, changes in general conditions in the economy and the financial markets or other developments affecting our competitors or us. In addition, the stock market is subject to extreme price and volume fluctuations. This volatility has had a significant effect on the market price of securities issued by many companies for reasons unrelated to their operating performance and could have the same effect on our common stock.
 
Sales of substantial amounts of common stock, or the perception that such sales could occur, and the existence of convertible securities to purchase shares of common stock at prices that may be below the then current market price of the common stock, could adversely affect the market price of our common stock and could impair our ability to raise capital through the sale of our equity securities.


 
- 12 -

 

Item 2. Management’s Discussion and Analysis or Plan of Operation.

     The following discussion and analysis should be read in conjunction with the financial statements and the notes to those statements included in this 8-K and other previous SEC filings. This discussion contains, in addition to historical information, forward-looking statements that involve risks and uncertainties. Our actual results could differ materially. Factors that could cause or contribute to such differences include, but are not limited to those discussed below, as well as those discussed elsewhere in this 8-K, including those factors discussed under the heading “Risk Factors.” See “Forward Looking Statements”.

Business of CST.

We provide contract land drilling and workover services to oil and natural gas exploration and production companies. As of August 1, 2009, we owned one workover rig, which was in full operation.

We commenced operations in 1988.  We have made selective acquisitions of drilling and ancillary equipment. Our management team has significant experience not only with acquiring rigs, but also with refurbishing and deploying rigs.
 
We currently operate our workover rig Kansas. The wells we have serviced for our customers have been drilled in search of oil and natural gas reserves, particularly coal bed methane deposits. Natural gas is often found in deep and complex geologic formations that generally require higher horsepower, premium rigs and experienced crews to reach targeted depths. We believe our premium rig, inventory and experienced crews position us to benefit from the natural gas drilling activity in our core operating areas.
 
Background of Transaction.

On September 30, 2009, WhistlePig Enterprises, Inc., a Colorado corporation (“WHISTLEPIG”) and CST Oil & Gas Corporation, a Colorado corporation, (“CST”) entered into a Share Exchange agreement (the “Share Exchange Agreement”) whereby the shareholders of  CST exchanged all of their common stock for common shares of WHISTLEPIG(the “Share Exchange”).  In connection with the Share Exchange, the stockholders of CST exchanged all of their CST stock for a total of 8,000,000 shares of common stock of WHISTLEPIG.  Immediately prior to the Share Exchange, certain existing shareholders of WHISTLEPIG tendered a total of 8,000,000 shares of WHISTLEPIG’s common stock to the company for cancellation, leaving 1,696,000 issued and outstanding WHISTLEPIG common shares.  As a result, following the Share Exchange WHISTLEPIG had 9,696,000 shares of its common stock issued and outstanding, of which approximately  84.6% were held by the former shareholders of CST. Following the closing of the Share Exchange, WHISTLEPIG’s name will be changed to CST Holding Corp, or some derivation thereof.  Upon completion of the Share Exchange, we adopted CST’s business plan.

Summary Overview

Drilling Equipment
 
General

Our Drilling Rig
 
As of August 1, 2009, our drilling rig fleet consisted of one workover rig, which we market on a continuous basis. At the present time, this workover rig operates on a term contract of one year.   We currently have no workover rigs held in inventory.

Other Equipment
 
As of August 1, 2009, we owned a fleet of one  truck and related transportation equipment that we use to transport our men and equipment to and from drilling sites. By owning our own trucks, we reduce the cost of equipment moves, downtime between workover rig moves and general wear and tear on our rig.
 

 
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We believe that our operating workover rig and other related equipment are in good operating condition. Our employees perform periodic maintenance and minor repair work on our workover rig. Historically, we have relied on various oilfield service companies for major repair work and overhaul of our equipment. In the event of major breakdowns or mechanical problems, our rig could be subject to significant idle time and a resulting loss of revenue if the necessary repair services are not immediately available.
 
Drilling Contracts
 
As a provider of contract well services, our business and the profitability of our operations depend on the level of drilling activity by oil and natural gas exploration and production companies operating in the geographic markets where we operate. Our business has generally not been affected by seasonal fluctuations. The oil and natural gas exploration and production industry is a historically cyclical industry characterized by significant changes in the levels of exploration and development activities. During periods of lower levels of drilling activity, price competition tends to increase and results in decreases in the profitability of daywork contracts. In this lower level drilling activity and competitive price environment, we may be more inclined to enter into footage contracts that expose us to greater risk of loss without commensurate increases in potential contract profitability.
 
We obtain our contracts for servicing oil and natural gas wells either through competitive bidding or through direct negotiations with customers. Our contracts generally provide for compensation on either a daywork or footage basis. The contract terms we offer generally depend on the complexity and risk of operations, the on-site drilling conditions, the type of equipment used and the anticipated duration of the work to be performed. Generally, our contracts provide for the workover of a single well and typically permit the customer to terminate on short notice, usually on payment of an agreed fee.
 
    Daywork Contracts. Under daywork drilling contracts, we provide a workover rig with required personnel to our customer who supervises the servicing of the well. We are paid based on a negotiated fixed rate per day while the rig is used. Daywork contracts specify the equipment to be used, the size of the hole and the depth of the well. Under a daywork contract, the customer bears a large portion of the out-of-pocket service costs and we generally bear no part of the usual risks associated with drilling, such as time delays and unanticipated costs.
 
Footage Contracts. Under footage contracts, we are paid a fixed amount for each foot drilled, regardless of the time required or the problems encountered in drilling the well. We typically pay more of the out-of-pocket costs associated with footage contracts as compared to daywork contracts. The risks to us on a footage contract are greater because we assume most of the risks associated with drilling operations generally assumed by the operator in a daywork contract, including the risk of blowout, loss of hole, stuck drill pipe, machinery breakdowns, abnormal drilling conditions and risks associated with subcontractors’ services, supplies, cost escalation and personnel. We manage this additional risk through the use of engineering expertise and bid the footage contracts accordingly, and we maintain insurance coverage against some, but not all, drilling hazards. However, the occurrence of uninsured or under-insured losses or operating cost overruns on our footage jobs could have a negative impact on our profitability.
 
Turnkey Contracts. Turnkey contracts typically provide for a drilling company to drill a well for a customer to a specified depth and under specified conditions for a fixed price, regardless of the time required or the problems encountered in drilling the well. The drilling company would provide technical expertise and engineering services, as well as most of the equipment and drilling supplies required to drill the well. The drilling company may subcontract for related services, such as the provision of casing crews, cementing and well logging. Under typical turnkey drilling arrangements, a drilling company would not receive progress payments and would be paid by its customer only after it had performed the terms of the drilling contract in full.

Although we have not historically entered into any turnkey contracts, we may decide to enter into such arrangements in the future. The risks to a drilling company under a turnkey contract are substantially greater than on a well drilled on a daywork basis. This is primarily because under a turnkey contract the drilling company assumes most of the risks associated with drilling operations generally assumed by the operator in a daywork contract, including the risk of blowout, loss of hole, stuck drill pipe, machinery breakdowns, abnormal drilling conditions and risks associated with subcontractors’ services, supplies, cost escalations and personnel.


 
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Customers and Marketing

    We market our rig to a number of customers. In 2008, we serviced wells for 4  different customers, compared to  no  customers in 2007.

We primarily market our  workover rigs through employee marketing representatives. These marketing representatives use personal contacts and industry periodicals and publications to determine which operators are planning to drill oil and natural gas wells in the near future in our market areas. Once we have been placed on the “bid list” for an operator, we will typically be given the opportunity to bid on most future well servicing needs for that operator in the areas in which we operate. Our workover rigs are typically contracted on a well-by-well basis.
 
From time to time we also enter into informal, nonbinding commitments with our customers to provide workover rigs for future periods at specified rates plus fuel and mobilization charges, if applicable, and escalation provisions. This practice is customary in the well services business during times of tightening rig supply.
 
Competition
 
We encounter substantial competition from other well service contractors. Our primary market area is highly fragmented and competitive. The fact that workover rigs are mobile and can be moved from one market to another in response to market conditions heightens the competition in the industry.
 
The well service contracts we compete for are usually awarded on the basis of competitive bids. Our principal competitors are Jackman Oilfield Services, Splane Pulling and Roustabout Services, Hurricane Oil Field Services, Gateway Titan Oilfield Services, and DJR Well Serving. We believe pricing and rig availability are the primary factors our potential customers consider in determining which drilling contractor to select. In addition, we believe the following factors are also important:
 
 
l
the type and condition of each of the competing workover rigs;
 
 
l
the mobility and efficiency of the rigs;
 
 
l
the quality of service and experience of the rig crews;
 
 
l
the offering of ancillary services; and
 
 
l
the ability to provide well servicing  equipment adaptable to, and personnel familiar with, new technologies and techniques.
 
While we must be competitive in our pricing, our competitive strategy generally emphasizes the quality of our equipment and the experience of our crews to differentiate us from our competitors. This strategy is less effective as lower demand for workover services or an oversupply of rigs usually results in increased price competition and makes it more difficult for us to compete on the basis of factors other than price. In all of the markets in which we compete, an oversupply of rigs can cause greater price competition.
 
Contract well service companies compete primarily on a regional basis, and the intensity of competition may vary significantly from region to region at any particular time. If demand for workover services improves in a region where we operate, our competitors might respond by moving in suitable rigs from other regions. An influx of workover rigs from other regions could rapidly intensify competition and reduce profitability.
 

 
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Many of our competitors have greater financial, technical and other resources than we do. Their greater capabilities in these areas may enable them to:
 
 
l
better withstand industry downturns;
 
 
l
compete more effectively on the basis of price and technology;
 
 
l
better retain skilled rig personnel; and
 
 
l
build new rigs or acquire and refurbish existing rigs so as to be able to place rigs into service more quickly than us in periods of high demand.
 
Raw Materials
 
The materials and supplies we use in our operations include fuels to operate our  equipment,  pipe and collars. We do not rely on a single source of supply for any of these items. While we are not currently experiencing any shortages, from time to time there have been shortages of equipment and supplies during periods of high demand.
 
Shortages could result in increased prices for  equipment or supplies that we may be unable to pass on to customers. In addition, during periods of shortages, the delivery times for equipment and supplies can be substantially longer. Any significant delays in our obtaining  equipment or supplies could limit operations and jeopardize our relations with customers. In addition, shortages of  equipment or supplies could delay and adversely affect our ability to obtain new contracts for our rigs, which could have a material adverse effect on our financial condition and results of operations.
 
Operating Risks and Insurance
 
Our operations are subject to the many hazards inherent in the contract well servicing business, including the risks of:
 
 
l
blowouts;
 
 
l
fires and explosions;
 
 
l
loss of well control;
 
 
l
collapse of the borehole;
 
 
l
lost or stuck drill strings; and
 
 
l
damage or loss from natural disasters.
 
Any of these hazards can result in substantial liabilities or losses to us from, among other things:
 
 
l
suspension of drilling operations;
 
 
l
damage to, or destruction of, our property and equipment and that of others;
 
 
l
personal injury and loss of life;
 
 
l
damage to producing or potentially productive oil and natural gas formations through which we drill; and
 
 
l
environmental damage.
 

 
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We seek to protect ourselves from some but not all operating hazards through insurance coverage. However, some risks are either not insurable or insurance is available only at rates that we consider uneconomical.  Depending on competitive conditions and other factors, we attempt to obtain contractual protection against uninsured operating risks from our customers. However, customers who provide contractual indemnification protection may not in all cases have sufficient financial resources or maintain adequate insurance to support their indemnification obligations. We can offer no assurance that our insurance or indemnification arrangements will adequately protect us against liability or loss from all the hazards of our operations. The occurrence of a significant event that we have not fully insured or indemnified against or the failure of a customer to meet its indemnification obligations to us could materially and adversely affect our results of operations and financial condition. Furthermore, we may not be able to maintain adequate insurance in the future at rates we consider reasonable.
 
Our insurance coverage includes property insurance on our rigs, drilling equipment and real property. Our insurance coverage for property damage to our rigs and to our drilling equipment is based on a third party estimate of the appraised value of the rigs and drilling equipment. The policy provides for a deductible on rigs of $1.0 million per occurrence. Our umbrella liability insurance coverage is $25.0 million per occurrence and in the aggregate, with a deductible of $10,000 per occurrence. We believe that we are adequately insured for public liability and property damage to others with respect to our operations. However, such insurance may not be sufficient to protect us against liability for all consequences of well disasters, extensive fire damage or damage to the environment.
 
Employees
 
   As of August 1, 2009, we had five employees. All  of these employees are salaried administrative or supervisory employees. The rest of our employees are hourly employees, the majority of whom operate or maintain our drilling rig, workover rigs and rig-hauling trucks. The number of hourly employees fluctuates depending on the number of drilling projects we are engaged in at any particular time. None of our employees are subject to collective bargaining arrangements.
 
Our operations require the services of employees having the technical training and experience necessary to obtain the proper operational results. As a result, our operations depend, to a considerable extent, on the continuing availability of such personnel. Although we have not encountered material difficulty in hiring and retaining qualified rig crews, shortages of qualified personnel are occurring in our industry. If we should suffer any material loss of personnel to competitors or be unable to employ additional or replacement personnel with the requisite level of training and experience to adequately operate our equipment, our operations could be materially and adversely affected. While we believe our wage rates are competitive and our relationships with our employees are satisfactory, a significant increase in the wages paid by other employers could result in a reduction in our workforce, increases in wage rates, or both. The occurrence of either of these events for a significant period of time could have a material and adverse effect on our financial condition and results of operations.
 
Governmental Regulation
 
Our operations are subject to stringent federal, state and local laws and regulations governing the protection of the environment and human health and safety. Several such laws and regulations relate to the handling, storage and disposal of oilfield waste and restrict the types, quantities and concentrations of such regulated substances that can be released into the environment. Several such laws also require removal and remedial action and other cleanup under certain circumstances, commonly regardless of fault. Planning, implementation and maintenance of protective measures are required to prevent accidental discharges. Spills of oil, natural gas liquids, drilling fluids and other substances may subject us to penalties and cleanup requirements. In addition, our operations are sometimes conducted in or near ecologically sensitive areas, which are subject to special protective measures and which may expose us to additional operating costs and liabilities related to restricted operations, for accidental discharges of oil, natural gas, drilling fluids, contaminated water or other substances or for noncompliance with other aspects of applicable laws and regulations. Historically, we have not been required to obtain environmental or other permits prior to drilling a well. Instead, the operator of the oil and gas property has been obligated to obtain the necessary permits at its own expense.
 

 
- 17 -

 


The federal Clean Water Act, as amended by the Oil Pollution Act, the federal Clean Air Act, the Resource Conservation and Recovery Act, the Comprehensive Environmental Response, Compensation and Liability Act, or CERCLA, the Safe Drinking Water Act, the Occupational Safety and Health Act, or OSHA, and their state counterparts and similar statutes and related regulations are the primary vehicles for imposition of such requirements and for civil, criminal and administrative penalties and other sanctions for violation of their requirements. The OSHA hazard communication standard and related regulations, the Environmental Protection Agency “community right-to-know” regulations under Title III of the federal Superfund Amendment and Reauthorization Act and comparable state statutes require us to organize and report information about the hazardous materials we use in our operations to employees, state and local government authorities and local citizens. In addition, CERCLA, also known as the “Superfund” law, and similar state statutes impose strict liability, without regard to fault or the legality of the original conduct, on certain classes of persons who are considered responsible for the release or threatened release of hazardous substances into the environment. These persons include the current owner or operator of a facility where a release has occurred, the owner or operator of a facility at the time a release occurred and companies that disposed of or arranged for the disposal of hazardous substances found at a particular site. This liability may be joint and several. Such liability, which may be imposed for the conduct of others and for conditions others have caused, includes the cost of removal and remedial action as well as damages to natural resources. Few defenses exist to the liability imposed by environmental laws and regulations. It is also not uncommon for third parties to file claims for personal injury and property damage caused by substances released into the environment.
 
Environmental laws and regulations are complex and subject to frequent changes. Failure to comply with governmental requirements or inadequate cooperation with governmental authorities could subject a responsible party to administrative, civil or criminal action. We may also be exposed to environmental or other liabilities originating from businesses and assets that we acquired from others. We believe we are in substantial compliance with applicable environmental laws and regulations and, to date, such compliance has not materially affected our capital expenditures, earnings or competitive position. We do not expect to incur material capital expenditures in our next fiscal year in order to comply with current or reasonably anticipated environment control requirements. However, our compliance with amended, new or more stringent requirements, stricter interpretations of existing requirements or the future discovery of regulatory noncompliance or contamination may require us to make material expenditures or subject us to liabilities that we currently do not anticipate.
 
In addition, our business depends on the demand for land drilling services from the oil and natural gas industry and, therefore, is affected by tax, environmental and other laws relating to the oil and natural gas industry generally, by changes in those laws and by changes in related administrative regulations. It is possible that these laws and regulations may in the future add significantly to our operating costs or those of our customers or otherwise directly or indirectly affect our operations.
 
Raising Additional Capital
 
    We do not plan to raise any additional capital at this time.

     Critical Accounting Policies and Estimates

    The discussion and analysis of our financial condition and results of operations is based upon our financial statements which have been prepared in accordance with accounting principles generally accepted in the United States. The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets and liabilities. Currently, our only estimate is that of depreciation expense. We base our estimates on historical experience and on other assumptions that we believes to be reasonable under the circumstances, the results of which form our basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.

     Going Concern
 
    As of December 31, 2008, our accountants have expressed doubt about WHISTLEPIG’S ability to continue as a going concern as a result of our operating losses from inception. The accountant’s opinion with regard to CST contained no such qualification. Our future operations will be those of CST, so that we do not anticipate that the going concern issue will be a factor going forward.

 
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Item 2. Management’s Discussion and Analysis or Plan of Operation
 
    The following discussion relates to CST's operations through June 30, 2009.  For information related to the Company's operations prior to the exchange transaction, please see the Company's Annual Report on Form 10-K for the year ended December 31, 2008.

Plan of Operation
   
    As of June 30, 2009, CST provides contract land drilling and workover services to oil and natural gas exploration and production companies.

Results of Operations
     
    The following discussion involves CST’s results of operations for the six months ending June 30, 2009 and for the fiscal year ending December 31, 2008. This compares to the six months ending June 30, 2008 and for the fiscal year ending December 31, 2007.
 
    Comparing CST’s operations, it had sales (net of returns) of $201,762 for the six months ended June 30, 2009 and  $-0-  for the six months ending June 30, 2008. CST had sales(net of returns)  of $109,061 for fiscal year ending December 31, 2008 and $-0- for the fiscal year ending December 31, 2007.
   
    Cost of goods sold for the six months ending June 30, 2009 was $26,123, compared to $-0- for the six months ending June 30, 2008. Cost of goods sold for the fiscal year ending December 31, 2008 was $14,114 Compared to $-0- for the fiscal year ending December 31, 2007.
 
    Operating expenses, which include depreciation and general and administrative expenses for the six months ended June 30, 2009 were $125,416, compared to $10 for the six months ending June 30, 2008. We had operating expenses of $69,600 for the fiscal year ending December 31, 2008 and $10 for the fiscal year ending December 31, 2007.
 
    The major components of operating expenses include general and administrative, professional fees, and telephone expenses.
 
    We believe that operating expenses in current operations should remain fairly constant as our revenues develop. Each additional sale or service and correspondingly the gross profit of such sale have minimal offsetting operating expenses. Thus, additional sales could become profit at a higher return on sales rate as a result of not needing to expand operating expenses at the same pace.
 
    We had a net profit of $50,223 for the six months ended June 30, 2009, compared to a net loss of $10 for the six months ending June 30, 2008. We had a net profit of $25,347 for the fiscal year ended June 30, 2009 and a net loss $10 for the fiscal year ending June 30, 2008.
 
    Our principal source of liquidity is our revenues. We expect variation in revenues to account for the difference between a profit and a loss. Also business activity is closely tied to the U.S. petroleum business.. Our ability to achieve and maintain profitability and positive cash flow is dependent upon our ability to successfully develop our business and our ability to generate revenues.
 
    In any case, we try to operate with minimal overhead. Our primary activity will be to seek to develop clients for our services and, consequently, our sales. If we succeed in developing clients for our services and generating sufficient sales, we will become profitable. We cannot guarantee that this will ever occur. Our plan is to build our company in any manner which will be successful.

Liquidity and Capital Resources
 
    As of June 30, 2009, we had cash or cash equivalents of $71,785.

 
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    Net cash provided by operating activities was $53,077 for the six months ended June 30, 2009, compared to net cash used or provided for operating activities of $-0- for the six months ended June 30, 2008. We anticipate that overhead costs in current operations will remain fairly constant as revenues develop.
 
    Cash flows used or provided by investing activities was $-0- for all relevant periods.
 
    Cash flows used for financing activities was $20,000 for the six months ended June 30, 2009, compared to cash provided by financing activities of $40,000 for the six months ended June 30, 2008.
 
    Over the next twelve months we do not expect any material capital costs to develop operations.  We believe that we have sufficient capital in the short term for our current level of operations. This is because we believe that we can attract sufficient sales within our present organizational structure and resources to remain profitable in our operations. We do not anticipate needing to raise additional capital resources in the next twelve months In the event that we need additional capital,

Item 3. Description of Property.

    We currently utilize a small office space provided by our majority shareholder in Centennial., Colorado on a rent-free basis. Our rig is located in Bourbon County, Kansas Our operating equipment is stored in Kansas on property owned by our majority shareholders                        .

Item 4. Security Ownership of Certain Beneficial Owners and Management.

    The following table sets forth certain information with respect to beneficial ownership of our common stock, as of September 30, 2009 and after giving effect to the Share Exchange by:

 
 
l
 
each beneficial owner of 5% or more of the currently outstanding shares of our common stock;
       
 
l
 
each of our directors;
       
 
l
 
each of our executive officers; and
       
 
l
 
all of our directors and executive officers as a group.
 
    In computing the number of shares beneficially owned by a person and the percentage ownership of that person, shares of our common stock subject to options or warrants held by that person that are currently exercisable or exercisable within 60 days  September 30, 2009 are deemed outstanding, but are not deemed outstanding for computing the percentage ownership of any other person. To our knowledge, except as set forth in the footnotes to this table and subject to applicable community property laws, each person named in the table has sole voting and investment power with respect to the shares set forth opposite such person’s name. Except as otherwise indicated, the address of each of the persons in this table is 7060 B South Tucson Way, Centennial, Colorado 80112.

 
- 20 -

 


    Each stockholder’s percentage ownership is based on 9,696,000 shares of our common stock outstanding as of  September 30, 2009.
       
 
   
   
Amount and Nature
of Beneficial
Ownership
 
Notes Convertible
and Options and
Warrants
Exercisable Within
   
Name of Beneficial Owner
 
Shares
 
60 Days
 
Percent of Class
             
             
Directors and Executive Officers
           
Christine Tedesco(1)
 
8,200,000
 
 0
 
84.60%
             
Michael Thomsen
 
0
 
0
 
0
             
Steven A. Tedesco(1)
 
8,200,000
 
0
 
84.60%
             
All executive officers and directors as a group (2 persons)
 
8,200,000 
 
0
 
84.60%

 
(1)
Includes 4,050,000 shares owned of record by Christine Tedesco and 4,050,000 shares owned of record by Steven A. Tedesco. In addition, Steven A. Tedesco owns 100,000 shares of record. Christine and Steven Tedesco.are husband and wife. A total of 8,000,000 shares were acquired in the Share Exchange transaction. A total of 100,000 shares have been privately purchased from existing shareholders.

Item 5. Directors, Executive Officers, Promoters and Control Persons.

     Our senior management is composed of experienced individuals with significant management experience. As of  September 30, 2009, our executive officers, and directors were:
       Name
Age
 
                                     Position
       
Christine Tedesco
57
 
President, Chief Executive and Financial Officer, Treasurer and Director
Michael Thomsen
56
 
Executive Vice President, Secretary, and Director

The biographies of each of our executive officers and directors are as follows:

    Christine Tedesco is the co-founder and Chief Operating Officer of CST and has held this position since its founding in 1985. Since 1994, she has also been a Vice President and Director of Atoka Coal Bed Methane Laboratories, a provider of surface geochemical technologies for natural gas exploration companies. In 2000, she co-founded Running Foxes Petroleum, a petroleum and natural gas exploration and production company. She continues with these companies in these capacities to the present.  Ms. Tedesco obtained a BA Degree in Marketing from Kent State University in 1974.

 
- 21 -

 

    Michael Thomsen has over 30 years experience in the natural resources industry and has worked in over 40 countries in exploration and project acquisitions.  He is the former Chairman of Oil Quest Resources plc, a British oil and gas exploration company which merged into the North Sea oil explorer, Encore Oil plc in 2006.  His work with US energy producer Freeport-McMoRan Inc. from 1977 to 1987 included exploration in the Gulf of Mexico, the Permian Basin of west Texas, the Sinai-Sea region of Egypt, the Sergipe Basin offshore Brazil and the Neuquen Basin of western Argentina.  His US experience with Freeport was primarily directed at the Permian Basin of west Texas and his international work involved basin evaluation in Egypt, Brazil and Argentina.  From 1988 to 2002 he was a director of exploration for Gold Fields and Newmont, two major international natural resources groups.  He is currently Chairman of Nighthawk Energy plc, a London listed company with oil and gas assets in the US.  Mr. Thomsen obtained a Bachelors Degree from the University of Wisconsin majoring in Geology graduating with honors.

    The Board of Directors currently does not have any committees. Following the completion of the Share Exchange, we intend to establish audit and compensation committees and such other committees as determined advisable by our Board.

Item 6. Executive Compensation

    As of June 30, 2009, the Company has paid no compensation to any executive or director of the Company

 Item 7. Certain Relationships and Related Transactions, and Director Independence.

    We currently occupy approximately  450 square feet of office space which we rent from our President and largest shareholder on a month-to-month basis, currently without charge.

     In 2008 and the six months ended June 30, 2009 CST paid a company related by common control approximately $4,500 and $14,500 for general and administrative expenses. At December 31, 2008 and June 30, 2009 CST owed $40,000 to an officer for due on demand, non-interest bearing working capital advances.

Item 8. Description of Securities.

    We currently have authorized capital of 51,000,000 shares, of which 50,000,000 are designated as common stock, par value $0.001 per share (the “Common Stock”), and 1,000,000 shares are preferred stock, par value $0.01 per share (the “Preferred Stock”), none of which is currently designated. Following completion of the Share Exchange, the Company has outstanding 9,696,000 shares of Common Stock and no shares of Preferred Stock,

Common Stock

    Holders of shares of our Common Stock shall be entitled to cast one vote for each share held at all stockholders’ meetings for all purposes, including the election of directors. Our Common Stock does not have cumulative voting rights. No holder of shares of stock of any class shall be entitled as a matter of right to subscribe for or purchase or receive any part of any new or additional issue of shares of stock of any class, or of securities convertible into shares of stock of any class, whether now hereafter authorized or whether issued for money, for consideration other than money, or by way of dividend.

Preferred Stock
     
    None designated or issued.

PART II

Item 1. Market Price of and Dividends on the Registrant’s Common Equity and Other Shareholder Matters

Holders

    As of  September 30, 2009, there were approximately 40 record holders of our common stock and there were 9,696,000 shares of our common stock outstanding


 
- 22 -

 

Market Information

    No public market currently exists for shares of our common stock. We intend to apply to have our common stock listed for quotation on the Over-the-Counter Bulletin Board

Dividends

   We have never declared or paid any dividends nor do we have any intent to do so in the foreseeable future.

Item 2. Legal Proceedings.

    We are not currently a party to any legal proceedings. From time to time, we may be involved in legal proceedings and claims arising out of the ordinary course of business.

Item 4. Recent Sales of Unregistered Securities.

    In connection with the Share Exchange transaction,  on September 30, 2009, we issued the following shares of our common stock to the former shareholders of CST: Christine Tedesco-4,000,000 shares; Steven Tedesco-4,000,000 shares

Item 5. Indemnification of Directors and Officers.

    Our Articles of Incorporation, as amended, and by-laws provide that we shall, to the fullest extent permitted by applicable Colorado law, as amended from time to time, indemnify all persons whom it may indemnify pursuant thereto.

    Colorado law authorizes a corporation to provide indemnification to a director, officer, employee or agent of the corporation, including attorneys’ fees, judgments, fines and amounts paid in settlement, actually and reasonably incurred by him in connection with such action, suit or proceeding, if such party acted in good faith and in a manner he reasonably believed to be in or not opposed to the best interests of the corporation, and, with respect to any criminal action or proceeding, had no reasonable cause to believe his conduct was unlawful as determined in accordance with the statute, and except that with respect to any action which results in a judgment against the person and in favor of the corporation the corporation may not indemnify unless a court determines that the person is fairly and reasonably entitled to the indemnification.

    Insofar as indemnification for liabilities arising under the Securities Act of 1933, as amended (the “Securities Act”) may be permitted to our directors, officers and controlling persons pursuant to the foregoing provision, or otherwise, we have been advised that in the opinion of the SEC such indemnification is against public policy as expressed in the Securities Act and is, therefore, unenforceable. If a claim for indemnification against such liabilities (other than the payment by us of expenses incurred or paid by a director, officer or controlling person of the Company in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered) we will, unless in the opinion of our counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by us is against public policy as expressed in the Securities Act and will be governed by the final adjudication of such issue.

PART F/S

    Reference is made to the filings by WhistlePig Enterprises, Inc.., for its financial statements. The financial statements of CST Oil & Gas Corporation are in Item 9.01.

PART III

Item 3.02 Unregistered Sales of Equity Securities

    In connection with the Share Exchange transaction,   on September 30, 2009, we issued the following shares of our common stock to the former shareholders of CST: Christine Tedesco-4,000,000 shares; Steven Tedesco-4,000,000 shares.

 
- 23 -

 



Item 5.01 Changes in Control of Registrant

    The disclosures set forth in “Item 1.01 Entry into a Material Definitive Agreement” and “Item 2.01 Completion of Acquisition of Disposition of Assets” above are hereby incorporated by reference into this Item 5.01.

Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers
 
    Effective the closing date of the Share Exchange, Jeanie Clifford resigned all officer and director positions of the Company and a new board of directors comprising Christine Tedesco and Michael Thomsen took office, subject only to the notice requirements under Rule 14f-1.  At the same time, the following officer appointments were made and confirmed:

Name
Age
 
Position
Christine Tedesco
57
 
President, Chief Executive and Financial Officer, Treasurer and Director
Michael Thomsen
56
 
Executive Vice President, Secretary, and Director

    See Item 5 of Item 2.01 of this Form 8-K for information concerning the background of the officers and directors.

Item 5.03 Amendments to Articles of Incorporation or Bylaws; Change in Fiscal Year

               
    The Company intends to file Articles of Amendment to the Articles of Incorporation with the Secretary of State of the State of Colorado pursuant to which WhistlePig Enterprises, Inc. will change its corporate name to “CST Holding Corp,” or some derivation thereof. The fiscal year of WHISTLEPIG will remain the same.

Item 5.06 Change in Shell Company Status

   As described in Item 2.01 of this report, on  September 30, 2009 WHISTLEPIG completed the acquisition of CST. As a result of this transaction, WHISTLEPIG is no longer a shell company as defined in Rule 12b-2 of the Securities Exchange Act of 1934, as amended.

Item 9.01 Financial Statements and Exhibits.

(a) Financial statements of businesses acquired.
Page No.
   
   
Report of Independent Registered Public Accounting Firm
F-1
   
Balance Sheets at December 31, 200, 2007 and June 30, 2009
 F-2
   
Statements of Operations for the years ended December 31,
 
 2008 and 2007 and the six months ended June 30, 2009
 F-3
   
Statement of Changes in Shareholders' Equity                                                                           
F-4
   
Statements of Cash Flows, for the years ended December 31,
 
 2008 and 2007, and for the six months ended June 30, 2009
F-5
   
Notes to Financial Statements
F-6
   
 (b) Pro forma financial information.
F-7



 
- 24 -

 

(c) Exhibits

     The exhibits identified below are filed as part of this report:

EXHIBIT
DESCRIPTION
 
     
2.1
Share Exchange Agreement dated September 30, 2009
 
 
   
3.1 *
Articles of Incorporation
 
 
   
3.2 *
Bylaws
 
     
10.1
Drilling Rig Contract
 
     
23.1
Consent of  Ron Chadwick, PC, independent registered public accountant.
 
     

* Previously filed with Form SB-2 Registration Statement, January 24, 2008.


 
- 25 -

 

SIGNATURES

     Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
             
   
WhistlePig Enterprises, Inc.
   
             
Dated: September 30, 2009  
 
By:  
Name:
 
/s/ Christine Tedesco
Christine Tedesco
   
   
Title:
 
and Director (Principal Executive, Accounting and Financial Officer)
   
 

 

 

 
- 26 -

 





 



CST OIL AND GAS CORPORATION

FINANCIAL STATEMENTS

December 31, 2007 and 2008,
& June 30, 2009 (Unaudited)








 
 

 



CST OIL AND GAS CORPORATION
Financial Statements



TABLE OF CONTENTS


 
Page
   
REPORT OF INDEPENDENT REGISTERED
 
    PUBLIC ACCOUNTING FIRM
F-1
   
   
FINANCIAL STATEMENTS
 
   
Balance sheets
F-2
Statements of operations
F-3
Statements of stockholders’ equity
F-4
Statements of cash flows
F-5
Notes to financial statements
F-7
F-

 
 

 

RONALD R. CHADWICK, P.C.
Certified Public Accountant
2851 South Parker Road, Suite 720
Aurora, Colorado  80014
Telephone (303)306-1967
Fax (303)306-1944




REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM


Board of Directors
CST Oil and Gas Corporation
Centennial, Colorado

I have audited the accompanying balance sheets of CST Oil and Gas Corporation as of December 31, 2007 and 2008, and the related statements of operations, stockholders' equity and cash flows for the years then ended. These financial statements are the responsibility of the Company's management. My responsibility is to express an opinion on these financial statements based on my audit.

I conducted my audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that I plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.  I believe that my audit provides a reasonable basis for my opinion.

In my opinion, the financial statements referred to above present fairly, in all material  respects, the financial position of CST Oil and Gas Corporation as of December 31, 2007 and 2008, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

Aurora, Colorado
/s/ Ronald R. Chadwick, P.C.
September 17, 2009
RONALD R. CHADWICK, P.C.





 
F - 1

 


CST OIL AND GAS CORPORATION
 
BALANCE SHEETS
 
   
                   
               
June 30, 2009
 
   
Dec. 31, 2007
   
Dec. 31, 2008
   
(Unaudited)
 
                   
ASSETS
                 
                   
Current assets
                 
      Cash
  $ -     $ 63,150     $ 71,785  
      Prepaid expenses
            2,197          
             Total current assets
    -       65,347       71,785  
                         
      Fixed assets
                    24,442  
          Accumulated depreciation
                    (657 )
 
    -       -       23,785  
                         
Total Assets
  $ -     $ 65,347     $ 95,570  
                         
                         
LIABILITIES & STOCKHOLDERS' EQUITY
                       
                         
Current liabilities
                       
      Related party payable
  $ -     $ 40,000     $ 40,000  
             Total current liabilties
    -       40,000       40,000  
                         
Total Liabilities
    -       40,000       40,000  
                         
Stockholders' Equity
                       
      Common stock, no par value;
                       
          100,000 shares authorized;
                       
          100,000 shares issued and outstanding
    100,000       100,000       100,000  
      Additional paid in capital
    141       141       141  
      Accumulated deficit
    (100,141 )     (74,794 )     (44,571 )
                         
Total Stockholders' Equity
    -       25,347       55,570  
                         
Total Liabilities and Stockholders' Equity
  $ -     $ 65,347     $ 95,570  

The accompanying notes are an integral part of the financial statements.

 
F - 2

 



CST OIL AND GAS CORPORATION
 
STATEMENTS OF OPERATIONS
 
                         
                         
               
Six Months
   
Six Months
 
               
Ended
   
Ended
 
   
Year Ended
   
Year Ended
   
June 30, 2008
   
June 30, 2009
 
   
Dec. 31, 2007
   
Dec. 31, 2008
   
(Unaudited)
   
(Unaudited)
 
                         
                         
Sales (net of returns) - related party
  $ -     $ 109,061     $ -     $ 201,762  
Cost of goods sold
            14,114               26,123  
                                 
Gross profit
    -       94,947       -       175,639  
                                 
Operating expenses:
                               
     Depreciation
                            657  
     General and administrative
    10       69,600       10       124,759  
      10       69,600       10       125,416  
                                 
Income (loss) from operations
    (10 )     25,347       (10 )     50,223  
                                 
Other income (expense):
                               
      -       -       -       -  
                                 
Income (loss) before
                               
     provision for income taxes
    (10 )     25,347       (10 )     50,223  
                                 
Provision for income tax
    -       -       -       -  
                                 
Net income (loss)
  $ (10 )   $ 25,347     $ (10 )   $ 50,223  
                                 
Net income (loss) per share
                               
(Basic and fully diluted)
  $ (0.00 )   $ 0.25     $ (0.00 )   $ 0.50  
                                 
Weighted average number of
                               
common shares outstanding
    100,000       100,000       100,000       100,000  

The accompanying notes are an integral part of the financial statements.


 
F - 3

 



                               
CST OIL AND GAS CORPORATION
 
STATEMENTS OF STOCKHOLDERS' EQUITY
 
                               
                               
   
Common Stock
               
Stock-
 
         
Amount
   
Paid in
   
Accumulated
   
holders'
 
   
Shares
   
No Par
   
Capital
   
Deficit
   
Equity
 
                               
Balances at December 31, 2006
    100,000     $ 100,000     $ 131     $ (100,131 )   $ -  
                                         
Net income (loss) for the year
                    10       (10 )     -  
                                         
Balances at December 31, 2007
    100,000     $ 100,000     $ 141     $ (100,141 )   $ -  
                                         
Net income (loss) for the year
                            25,347       25,347  
                                         
Balances at December 31, 2008
    100,000     $ 100,000     $ 141     $ (74,794 )   $ 25,347  
                                         
Distributions
                            (20,000 )     (20,000 )
                                         
Net income (loss) for the period
                            50,223       50,223  
                                         
Balances at
                                       
June 30, 2009 - unaudited
    100,000     $ 100,000     $ 141     $ (44,571 )   $ 55,570  

The accompanying notes are an integral part of the financial statements.

 
F - 4

 



CST OIL AND GAS CORPORATION
 
STATEMENTS OF CASH FLOWS
 
                         
                         
               
Six Months
   
Six Months
 
               
Ended
   
Ended
 
   
Year Ended
   
Year Ended
   
June 30, 2008
   
June 30, 2009
 
   
Dec. 31, 2007
   
Dec. 31, 2008
   
(Unaudited)
   
(Unaudited)
 
                         
Cash Flows From Operating Activities:
                       
     Net income (loss)
  $ (10 )   $ 25,347     $ (10 )   $ 50,223  
 
                               
     Adjustments to reconcile net loss to
                               
     net cash provided by (used for)
                               
     operating activities:
                               
          Depreciation
                            657  
          Prepaid expenses
            (2,197 )             2,197  
          Accrued payables
                    10          
               Net cash provided by (used for)
                               
               operating activities
    (10 )     23,150       -       53,077  
                                 
                                 
Cash Flows From Investing Activities:
                               
     Fixed assets
    -       -       -       (24,442 )
               Net cash provided by (used for)
                               
               investing activities
    -       -       -       (24,442 )
                                 
 
 

(Continued On Following Page)
 
The accompanying notes are an integral part of the financial statements.


 
F - 5

 


CST OIL AND GAS CORPORATION
 
STATEMENTS OF CASH FLOWS
 
                         
                         
(Continued From Previous Page)
 
                         
                         
               
Six Months
   
Six Months
 
               
Ended
   
Ended
 
   
Year Ended
   
Year Ended
   
June 30, 2008
   
June 30, 2009
 
   
Dec. 31, 2007
   
Dec. 31, 2008
   
(Unaudited)
   
(Unaudited)
 
                         
Cash Flows From Financing Activities:
                       
     Related party payable - borrowings
          40,000              
     Paid in capital
    10                      
     Distributions
    -                     (20,000 )
               Net cash provided by (used for)
                             
               financing activities
    10       40,000       -       (20,000 )
                                 
Net Increase (Decrease) In Cash
    -       63,150       -       8,635  
                                 
Cash At The Beginning Of The Period
    -       -       -       63,150  
                                 
Cash At The End Of The Period
  $ -     $ 63,150     $ -     $ 71,785  
                                 
                                 
Schedule Of Non-Cash Investing And Financing Activities
                               
                                 
None
                               
                                 
                                 
Supplemental Disclosure
                               
                                 
Cash paid for interest
  $ -     $ -     $ -     $ -  
Cash paid for income taxes
  $ -     $ -     $ -     $ -  

The accompanying notes are an integral part of the financial statements.


 
F - 6

 

CST OIL AND GAS CORPORATION
NOTES TO FINANCIAL STATEMENTS
December 31, 2007 and 2008, & June 30, 2009 (Unaudited)


NOTE 1. ORGANIZATION, OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

CST Oil and Gas Corporation (the “Company”), was incorporated in the State of Colorado on May 8, 1985. The Company sells oil and gas field workover services.

Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Cash and cash equivalents

The Company considers all highly liquid investments with an original maturity of three months or less as cash equivalents.

Accounts receivable

The Company reviews accounts receivable periodically for collectability and establishes an allowance for doubtful accounts and records bad debt expense when deemed necessary. At December 31, 2007 and 2008, and June 30, 2009 the Company had no balance in its allowance for doubtful accounts.

Property and equipment

Property and equipment are recorded at cost and depreciated under accelerated or straight line methods over each item's estimated useful life.

Revenue recognition

Revenue is recognized on an accrual basis as earned under contract terms. Specifically, revenue from product sales is recognized subsequent to a customer ordering a product at an agreed upon price, delivery has occurred, and collectibility is reasonably assured.

Advertising costs

Advertising costs are expensed as incurred. The Company had no advertising costs in 2007 or 2008, or for the six months ended June 30, 2009.


 
F - 7

 

CST OIL AND GAS CORPORATION
NOTES TO FINANCIAL STATEMENTS
December 31, 2007 and 2008, & June 30, 2009 (Unaudited)

NOTE 1. ORGANIZATION, OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES  (Continued):

Income tax

The Company accounts for income taxes under Statement of Financial Accounting Standards No. 109 (“SFAS 109”). Under SFAS 109 deferred taxes are provided on a liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss carryforwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.

Because the Company through June 2009 has operated as an S-corporation, the Company is a pass-through entity for federal income tax purposes and pays no income tax at the corporate level.
 

Net income (loss) per share

The net income (loss) per share is computed by dividing the net income (loss) by the weighted average number of shares of common outstanding. Warrants, stock options, and common stock issuable upon the conversion of the Company's preferred stock (if any), are not included in the computation if the effect would be anti-dilutive and would increase the earnings or decrease loss per share.

Financial Instruments

The carrying value of the Company’s financial instruments, as reported in the accompanying balance sheets, approximates fair value.

Long-Lived Assets

In accordance with Statement of Financial Accounting Standard 144 “Accounting for the Impairment or Disposal of Long-Lived Assets”, the Company regularly reviews the carrying value of intangible and other long-lived assets for the existence of facts or circumstances, both internally and externally, that December suggest impairment. If impairment testing indicates a lack of recoverability, an impairment loss is recognized by the Company if the carrying amount of a long-lived asset exceeds its fair value.


 
F - 8

 

CST OIL AND GAS CORPORATION
NOTES TO FINANCIAL STATEMENTS
December 31, 2007 and 2008, & June 30, 2009 (Unaudited)


NOTE 1. ORGANIZATION, OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES  (Continued):

Products and services, geographic areas and major customers

The Company earns revenue from the sale of oil and gas field workover services, but does not separate different services into operating segments. All sales each year were to domestic companies under common control of the Company’s officers.


NOTE 2. RELATED PARTY TRANSACTIONS

In 2008 and the six months ended June 30, 2009 the Company paid a company related by
common control approximately $4,500 and $14,500 for general and administrative expenses. At December 31, 2008 and June 30, 2009 the Company owed $40,000 to an officer for due on demand, non-interest bearing working capital advances.


 
F - 9

 


 

 

WHISTLEPIG ENTERPRISES, INC.
(A Development Stage Company)


PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS


December 31, 2008
 
 
 




 
F - 10

 


WHISTLEPIG ENTERPRISES, INC. AND CST OIL AND GAS CORPORATION
 
PRO FORMA CONSOLIDATED BALANCE SHEET
 
December 31, 2008
 
                         
                         
                         
               
Adjustments
   
Consolidated
 
   
WHISTLEPIG
   
CST
   
(See Notes)
   
Balance
 
ASSETS
                       
                         
Current assets
                       
      Cash
  $ 347     $ 63,150     $ -     $ 63,497  
      Prepaid expenses
            2,197               2,197  
             Total current assets
    347       65,347       -       65,694  
                                 
Total Assets
  $ 347     $ 65,347     $ -     $ 65,694  
                                 
LIABILITIES
                               
  & STOCKHOLDERS' EQUITY
                               
                                 
Current liabilities
                               
      Related party payables
  $ -     $ 40,000     $ -     $ 40,000  
          Total current liabilties
    -       40,000       -       40,000  
                                 
Total Liabilities
    -       40,000       -       40,000  
                                 
Stockholders' Equity
                               
      Preferred stock, $.10 par value;
                               
          1,000,000 shares authorized;
                               
           none issued and outstanding
    -       -       -       -  
      Common stock, $.001 par value;
                               
          50,000,000 shares authorized;
                               
          9,596,000 shares issued and
                               
          outstanding
    9,596       100,000       (100,000 )  A   9,596  
      Additional paid in capital
    23,904       141       100,000    A   124,045  
      Accumulated deficit
    (33,153 )     (74,794 )             (107,947 )
                                 
Total Stockholders' Equity
    347       25,347       -       25,694  
                                 
Total Liabilities and Stockholders' Equity
  $ 347     $ 65,347     $ -     $ 65,694  

The accompanying notes are an integral part of the Pro Forma financial statements.

 
F - 11

 


WHISTELPIG ENTERPRISES, INC. AND CST OIL AND GAS CORPORATION
 
PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS
 
                     
                         
                         
   
WHISTLEPIG
   
CST
             
   
Year Ended
   
Year Ended
   
Adjustments
   
Consolidated
 
   
Dec. 31, 2008
   
Dec. 31, 2008
   
(See Notes)
   
Balance
 
                         
                         
Sales
  $ 5,280     $ -     $ -     $ 5,280  
Sales -related party
            109,061               109,061  
Cost of goods sold
            14,114               14,114  
                                 
Gross profit
    5,280       94,947       -       100,227  
                                 
Operating expenses:
                               
     General and administrative
    24,526       69,600               94,126  
      24,526       69,600       -       94,126  
                                 
Income (loss) from operations
    (19,246 )     25,347       -       6,101  
                                 
Other income (expense):
    50       -       -       50  
                                 
Income (loss) before provision
                               
   for income taxes
    (19,196 )     25,347       -       6,151  
                                 
Provision for income tax
    -       -       -       -  
                                 
Net income (loss)
  $ (19,196 )   $ 25,347     $ -     $ 6,151  
                                 
Net income (loss) per share
                               
(Basic and fully diluted)
  $ (0 )   $ 0.25                  
                                 
Weighted average number of
                               
common shares outstanding
    9,596,000       100,000                  



The accompanying notes are an integral part of the Pro Forma financial statements.



 
F - 12

 


WHISTLEPIG ENTERPRISES, INC.
 (A Development Stage Company)
NOTES TO PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2008


Basis of Presentation

The following pro forma consolidated balance sheet as of December 31, 2008 and pro forma consolidated statement of operations for the year then ended between Whistlepig Enterprises, Inc. and CST Oil and Gas Corporation are presented to show what effects the reverse acquisition of Whistlepig Enterprises, Inc. by CST Oil and Gas Corporation, Inc. might have had on historical financial information had the transaction taken place on an earlier date. The pro forma consolidated financial statements are derived from the historical financial statements of Whistlepig Enterprises, Inc. and CST Oil and Gas Corporation and assume that for balance sheet purposes the transaction took place on December 31, 2008, and for statement of operations purposes on January 1, 2008 with resulting effects through December 31, 2008. The pro forma consolidated financial statements should be read in conjunction with the historical financial information. The pro forma consolidated financial statements are not necessarily indicative of the result that would have been attained had the transaction actually taken place earlier.

Pro Forma Adjustments

Pro forma adjustments from the pro forma consolidated financial statements are referenced below.

(A) Adjustment to restate common stock to that of Whistlepig Enterprises, Inc.

F - 13
 
 


 
 
 
EX-2.1 2 whistlepig8kx21_9302009.htm EXHIBIT 2.1 whistlepig8kx21_9302009.htm
 
 
Exhibit 2.1
 
 

 
SHARE EXCHANGE AGREEMENT

BY AND AMONG

WHISTLEPIG ENTERPRISES, INC.,

CST OIL & GAS CORPORATION,

AND

THE SHAREHOLDERS OF CST OIL & GAS CORPORATION


THIS SHARE EXCHANGE AGREEMENT (the "Agreement") is made and entered into as of September 30, 2009, by and among WHISTLEPIG ENTERPRISES, INC., a Colorado corporation ("WPIG"), CST OIL & GAS CORPORATION (CST hereinafter jointly referred to as the “CST”), and the Shareholders of the CST (the “Shareholders”), who hereby agree as follows.

RECITALS

WHEREAS, Shareholders own all of the issued and outstanding Shares (as defined in Section 1.1) of CST; and

WHEREAS, WPIG desires to acquire all of the Shares from the Shareholders and the Shareholders desire to transfer their Shares to WPIG on the terms and conditions hereinafter set forth.

NOW, THEREFORE, in consideration of the covenants, promises and representations set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:


ARTICLE I

EXCHANGE OF SHARES

1.1           Exchange.  At the Closing (as defined herein below) and subject to and upon the terms and conditions of this Agreement, the Shareholders agree to convey to WPIG, and WPIG agrees to acquire from the Shareholders, all of their Shares of CST owned by them.  As of Closing, the Shares will constitute 100% of the issued and outstanding common Shares (the “Shares”) of CST in the aggregate.  The conveyance of the Shares contemplated hereunder shall be referred to herein as the "Transaction."

 
Exhibit 2.1 - Page 1

 



1.2           Effective Time/Closing.  Unless this Agreement shall have been terminated pursuant to Article VIII hereof, the closing of the Transaction (the “Effective Time” or the “Closing”) shall take place at the offices of WPIG stated above after the satisfaction or waiver of the conditions set forth in Article VI, or at such other time, date and location as the parties hereto agree in writing (the "Effective Date").

1.3           Consideration.  The aggregate consideration ("Consideration") for the Shares shall be Eight Million (8,000,000) shares of common stock of WPIG (the "WPIG Shares"). On the Effective Date, the WPIG Shares to be issued to the Shareholders shall be issued to each respective Shareholder in proportion to their respective ownership of CST as described in Schedule 1.3.

1.4           Delivery of Certificates Representing the Shares.  At Closing, the Shareholders shall deliver the certificate(s) representing CST Shares, duly endorsed to WPIG or accompanied by stock powers or other assignments or documents to effectuate transfer of the Shares duly endorsed to WPIG, with (i) all such other documents as may be required to vest in WPIG good and marketable title to the Shares free and clear of any and all Liens (as defined in Section 2.3 hereof), and (ii) all necessary transfer and any other required documentary stamps.  The Shareholders shall cause the respective CST to recognize and record the transfers described in this Section 1.4 on its transfer books.

1.5           Issuance of Certificates Representing the WPIG Shares.  On the Effective Date, or as soon thereafter as practical, WPIG shall cause the WPIG Shares to be issued to the Shareholders as provided in Section 1.3 above.  The WPIG Shares, when issued, shall be “restricted” shares (as that term is defined under the Securities Act of 1933, as amended (the “Act”)) and may not be sold, transferred or otherwise disposed of by a Shareholder without registration under the Act or an available exemption from registration under the Act.  The certificates representing the WPIG Shares will contain the appropriate restrictive legends.  WPIG shall cause its Transfer Agent to recognize and record the transfers described in this Section 1.5 on its transfer books, and WPIG shall issue appropriate stop-transfer instructions to the Transfer Agent with respect to the WPIG Shares.

1.6           Taking of Necessary Action; Further Action.  If, at any time after the Closing, any further action is necessary or desirable to carry out the purposes of this Agreement and to vest WPIG with full right, title and possession to the Shares, the Shareholders will take all such lawful and necessary action.

1.7           Tax Consequences.  It is intended by the parties hereto that the Transaction shall constitute a “reorganization” within the meaning of Section 368 of the Code.  The parties hereto adopt this Agreement as a “plan of reorganization” within the meaning of Sections 1.368-2(g) and 1.368-3(a) of the United States Income Tax Regulations.

1.8           Name Change.  Simultaneous with the Closing, WPIG shall take all action necessary to amend its Articles of Incorporation in order to effectuate a change in the name of WPIG to “CST Holding Corp,” or some derivation thereof.



 
Exhibit 2.1 - Page 2

 

ARTICLE II

REPRESENTATIONS AND WARRANTIES OF
CST AND SHAREHOLDERS

CST, for itself only, and each Shareholder, for himself or herself only, and not with respect to any other Shareholder, hereby represent and warrant to, and covenant with WPIG with respect to the following:

2.1           Ownership of Shares.  Each Shareholder is both the record and beneficial owner of the number of Shares set forth beside such Shareholder's name on Schedule 1.3 hereto.  Each Shareholder is not the record or beneficial owner of any other Shares.  The information set forth on Schedule 1.3 with respect to each Shareholder is accurate and complete.

2.2           Authority.  Each Shareholder has full power and authority and is competent to (i) execute, deliver and perform this Agreement, and each ancillary document which each Shareholder has executed or delivered or is to execute or deliver pursuant to this Agreement, and (ii) carry out each Shareholder’s obligations hereunder and thereunder, without the need for any Governmental Action/Filing (as defined herein).  The execution, delivery and performance by each Shareholder to this Agreement and each ancillary document does not and will not conflict with, result in a breach of, or constitute a default or require a consent or action under, any agreement or other instrument to or by which such Shareholder is a party or is bound or to which any of the properties or assets of such Shareholder are subject, or any Legal Requirement (as defined herein) to which such Shareholder is subject, or result in the creation of any Lien (as defined in Section 2.3) on the Shares.  This Agreement, and each Shareholder’s ancillary document to be executed and delivered by such Shareholder at the Closing, have been duly executed and delivered by such Shareholder (and each ancillary document to be executed and delivered by each Shareholder at or after the Closing will be duly executed and delivered by such Shareholder), and this Agreement constitutes, and each ancillary document, when executed and delivered by each Shareholder will constitute such Shareholder's legal, valid and binding obligation, enforceable against that Shareholder in accordance with its terms.  For purposes of this Agreement, the term "Governmental Action/Filing" shall mean any franchise, license, certificate of compliance, authorization, consent, order, permit, approval, consent or other action of, or any filing, registration or qualification with, any federal, state, municipal, foreign or other governmental, administrative or judicial body, agency or authority, and the term "Legal Requirements" means any federal, state, local, municipal, foreign or other law, statute, constitution, principle of common law, resolution, ordinance, code, edict, decree, rule, regulation, ruling or requirement issued, enacted, adopted, promulgated, implemented or otherwise put into effect by or under the authority of any Governmental Entity (as defined in Section 2.9(b)), and all requirements set forth in applicable Contracts (as defined in Section 2.18(a)).

2.3           Title To Shares.  Each Shareholder has and shall transfer to WPIG at the Closing good and marketable title to all of his or her CST Shares as owned of record by such Shareholder on Schedule 1.3 to this Agreement,, free and clear of all liens, claims, charges, encumbrances, pledges, mortgages, security interests, options, rights to acquire, proxies, voting trusts or similar agreements, restrictions on transfer (other than federal and state securities laws restrictions on transfer) or adverse claims of any nature whatsoever ("Liens").  Each Shareholder has not and will not, directly or indirectly, assign or otherwise transfer his right to receive all or any portion of any amount which may become payable pursuant to this Agreement or any ancillary document or any interest therein.

 
Exhibit 2.1 - Page 3

 



2.4           Acquisition of WPIG Shares for Investment.

(a)           Each Shareholder is acquiring the WPIG Shares to be issued to him for investment for Shareholder’s own account and not as a nominee or agent, and not with a view to the resale or distribution of any part thereof, and such Shareholder has no present intention of selling, granting any participation in, or otherwise distributing the same.  The Shareholder further represents that he does not have any contract, undertaking, agreement or arrangement with any person to sell, transfer or grant participation to such person or to any third person, with respect to any of the WPIG Shares.

(b)           Each Shareholder understands that the WPIG Shares are not and will not be registered under the Securities Act, that the sale and the issuance of the WPIG Shares is intended to be exempt from registration under the Act pursuant to Section 4(2) thereof, and that WPIG's reliance on such exemption is predicated on the Shareholder’s representations set forth herein.  Each Shareholder represents and warrants that: (i) he can bear the economic risk of his investment, and (ii) he possesses such knowledge and experience in financial and business matters that he is capable of evaluating the merits and risks of the investment in the WPIG Shares.

(c)           Each Shareholder acknowledges that neither the US Securities and Exchange Commission, nor the securities regulatory body of any state or other nation has received, considered or passed upon the accuracy or adequacy of the information and representations made in this Agreement.

(d)           Each Shareholder acknowledges that he or she has carefully reviewed such information as each deemed necessary to evaluate an investment in the WPIG Shares.  To the full satisfaction each Shareholder, he or she has been furnished all materials requested relating to WPIG and the issuance of the WPIG Shares hereunder, and each Shareholder has been afforded the opportunity to ask questions of WPIG's representatives to obtain any information necessary to verify the accuracy of any representations or information made or given to the Shareholder.  Notwithstanding the foregoing, nothing herein shall derogate from or otherwise modify the representations and warranties of WPIG set forth in this Agreement, on which each Shareholder has relied in making an exchange of his or her Shares for the WPIG Shares.

(e)           Each Shareholder understands that the WPIG Shares may not be sold, transferred, or otherwise disposed of without registration under the Act or an exemption therefrom, and that in the absence of an effective registration statement covering the WPIG Shares or any available exemption from registration under the Act, the WPIG Shares must be held indefinitely.  Each Shareholder further acknowledges that the WPIG Shares may not be sold pursuant to Rule 144 promulgated under the Securities Act unless all of the conditions of Rule 144 are satisfied.

 
Exhibit 2.1 - Page 4

 


2.5           Organization and Qualification of CST.

(a)           CST is Colorado corporation, duly organized, validly existing and in good standing under the laws of Colorado and has the requisite power and authority to own, lease and operate its assets and properties and to carry on its business as it is now being or currently planned by CST to be conducted.  CST is in possession of all franchises, grants, authorizations, licenses, permits, easements, consents, certificates, approvals and orders ("Approvals") necessary to own, lease and operate the properties it purports to own, operate or lease and to carry on its business as it is now being or currently planned by CST to be conducted, except where the failure to have such Approvals could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect (as defined in Section 9.2(b)) on CST.  Complete and correct copies of the Articles of Incorporation, Bylaws, and all minutes of Director and Shareholder meetings (or other comparable governing instruments with different names) (collectively referred to herein as "Charter Documents") of CST, as amended and currently in effect, are attached hereto as Schedule 2.5(a) and (b).  CST is not in violation of any of the provisions of its Charter Documents.

(b)           CST is duly qualified or licensed to do business as a foreign corporation and is in good standing in each jurisdiction where the character of the properties owned, leased or operated by it or the nature of its activities makes such qualification or licensing necessary, except for such failures to be so duly qualified or licensed and in good standing that could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect on CST.

(c)           The minute books of CST contain true, complete and accurate records of all meetings and consents in lieu of meetings of its Directors (and any committees thereof) and Shareholders ("Corporate Records") since the time of  the CST incorporation.  Copies of such Corporate Records of CST have been heretofore delivered to WPIG.

(d)           The transfer records of CST contain true, complete and accurate records of Shareholder transfers involving the Shares ("Shareholder Records") of CST since the time CST incorporation.  Copies of such Shareholder Records of CST have been heretofore delivered to WPIG.

2.6           Subsidiaries.  CST has no subsidiary companies. CST does not own, directly or indirectly, any other ownership, equity, profits or voting interest in any other entity or Person or has any agreement or commitment to purchase any such interest, and CST has not agreed and is not obligated to make nor is bound by any written, oral or other agreement, contract, subcontract, lease, binding understanding, instrument, note, option, warranty, purchase order, license, sublicense, insurance policy, benefit plan, commitment or undertaking of any nature, as of the date hereof or any date hereafter, under which it may be obligated to make any future investment in or capital contribution to any other entity or Person.

For purposes of this Agreement, (i) the term "Subsidiary" shall mean any entity in which CST, directly or indirectly, owns beneficially securities or interests representing 50% or more of (x) the aggregate equity or profit interests, or (y) the combined voting power of voting interests ordinarily entitled to vote for management or otherwise, and (ii) the term "Person" shall mean and include an individual, a corporation, a partnership (general or limited), a joint venture, an association, a trust or any other organization or entity, including a government or political subdivision or an agency or instrumentality thereof.

 
Exhibit 2.1 - Page 5

 



2.7           Capitalization of CST.

The authorized capital stock of CST consists of 100,000 shares of y Common Stock, no par value. CST  has no authority to issue any other capital stock.  There are 100,000 shares of Common Stock issued and outstanding, and such shares are duly authorized, validly issued, fully paid and nonassessable.  CST has no outstanding warrants, stock options, rights or commitments to issue Common Stock or other Equity Securities, and there are no outstanding securities convertible or exercisable into or exchangeable Common Stock or other Equity Securities of CST.
 
2.8           No Conflict; Required Filings and Consents.

(a)           The execution and delivery of this Agreement by the Shareholders does not, and the performance of this Agreement by the Shareholders shall not, (i) conflict with or violate CST Charter Documents, (ii) subject to obtaining the adoption of this Agreement and the Transaction by the Shareholders, conflict with or violate any Legal Requirements, or (iii) result in any breach of or constitute a default (or an event that with notice or lapse of time or both would become a default) under, or materially impair CST rights or alter the rights or obligations of any third party under, or give to others any rights of termination, amendment, acceleration or cancellation of, or result in the creation of a lien or encumbrance on any of the properties or assets of CST pursuant to any Contracts, except, with respect to clauses (ii) or (iii), for any such conflicts, violations, breaches, defaults or other occurrences that would not, individually and in the aggregate, have a Material Adverse Effect on CST.

(b)           The execution and delivery of this Agreement by each Shareholder does not, and the performance of their obligations hereunder will not, require any consent, approval, authorization or permit of, or filing with or notification to, any court, administrative agency, commission, governmental or regulatory authority, self-regulatory organization, domestic or foreign (a "Governmental Entity"), except (i) for applicable requirements, if any, of the Act, the Securities Exchange Act of 1934, as amended (the "Exchange Act"), state securities laws ("Blue Sky Laws"), and the rules and regulations thereunder, and appropriate documents with the relevant authorities of other jurisdictions in which CST is qualified to do business, (ii) consents, approvals, authorizations, permits, filings and notices to be obtained or made prior to Closing, and (iii) where the failure to obtain such consents, approvals, authorizations or permits, or to make such filings or notifications, would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect on CST or, after the Closing, WPIG, or prevent consummation of the Transaction or otherwise prevent the parties hereto from performing their obligations under this Agreement.

 
Exhibit 2.1 - Page 6

 


2.9           Compliance.  To the best of each Shareholder’s knowledge and belief, CST has complied with, is not in violation of, any Legal Requirements with respect to the conduct of its business, or the ownership or operation of its business, except for failures to comply or violations that, individually or in the aggregate, have not had and are not reasonably likely to have a Material Adverse Effect on CST.  To the best of each Shareholder’s knowledge and belief, the businesses and activities of CST have not been and are not being conducted in violation of any Legal Requirements.  CST are not in default or violation of any term, condition or provision of any applicable Charter Documents or Contracts.  Neither CST nor any Shareholder has received any notice of non-compliance with any Legal Requirement (and each Shareholder has no knowledge of any such notice delivered to any other Person).  To the best of each Shareholder’s knowledge and belief, the Shareholders are not in violation of any term of any contract or covenant (either with CST or another entity) relating to employment, patents, proprietary information disclosure, non-competition or non-solicitation.

2.10           Financial Statements of CST.
 
(a)           Both of CST have delivered to WPIG copies of their audited balance sheets and audited statements of income for the fiscal years ended December 31, 2008 and 2007, and their unaudited balance sheets and statements of income for the six month period ended June 30, 2009 and June 30, 2008 (the “CST Financial Statements”).  To the best of each Shareholder’s knowledge and belief, CST Financial Statements present fairly the financial condition and results of operations of CST at the dates and for the periods covered by CST Financial Statements.  CST for itself represent and warrant that there has been no material adverse change in the financial condition of CST from that stated in CST Financial Statements.
 
                      (b)           To the best of each Shareholder’s knowledge and belief, CST Financial Statements and any notes related thereto comply as to form in all material respects with applicable accounting requirements, have been prepared in accordance with United States generally accepted accounting principles (“GAAP”) applied on a consistent basis throughout the periods involved (except as may be indicated in the notes thereto) and fairly present in all material respects (subject, in the case of the unaudited interim financial statements, to normal, recurring year-end adjustments, none of which are or will be material in amount, individually or in the aggregate) the financial position of CST as at the dates thereof and the results of their operations and cash flows for the periods then ended.
 
                      (c)           To the best of each Shareholder’s knowledge and belief, CST has no direct or indirect liabilities that were not fully and adequately reflected or reserved against on the balance sheet or described in the notes to CST financial statements.  CST has no knowledge of any circumstance, condition, event or arrangement that has taken place at any time that may hereafter give rise to any liabilities.
 

 
Exhibit 2.1 - Page 7

 


2.11           No Undisclosed Liabilities. To the best of each Shareholder’s knowledge and belief, and as applicable to their respective ownership in each entity, CST has no liabilities (absolute, accrued, contingent or otherwise) of a nature required to be disclosed on a balance sheet or in the related notes to the financial statements which are, individually or in the aggregate, material to the business, results of operations or financial condition of CST.

2.12           Litigation.  Other than as disclosed in Schedule 2.12 hereto, there are no claims, suits, actions, proceedings pending or, to each Shareholder’s knowledge, threatened against CST, before any court, governmental department, commission, agency, instrumentality or authority, or any arbitrator that seeks to restrain or enjoin the consummation of the transactions contemplated by this Agreement or which could reasonably be expected, either singularly or in the aggregate with all such claims, actions or proceedings, to have a Material Adverse Effect on CST or have a Material Adverse Effect on the ability of the parties hereto to consummate the Transaction.

2.13           Restrictions on Business Activities.  There is no agreement, commitment, judgment, injunction, order or decree binding upon CST or to which CST is a party which has or could reasonably be expected to have the effect of prohibiting or materially impairing any business practice of CST, any acquisition of property by CST or the conduct of business by CST as currently conducted other than such effects, individually or in the aggregate, which have not had and could not reasonably be expected to have a Material Adverse Effect on CST.

2.14           Title to Property.  Other than as described in Schedule 2.14 hereto or in the Financial Statements (as hereinbefore defined) and notes thereto, CST owns no other properties.

2.15           Taxes.

(a)           Definition of Taxes. For the purposes of this Agreement, "Tax" or "Taxes" refers to any and all federal, state, local and foreign taxes, including, without limitation, gross receipts, income, profits, sales, use, occupation, value added, ad valorem, transfer, franchise, withholding, payroll, recapture, employment, excise and property taxes, assessments, governmental charges and duties together with all interest, penalties and additions imposed with respect to any such amounts and any obligations under any agreements or arrangements with any other person with respect to any such amounts and including any liability of a predecessor entity for any such amounts.

(b)           Tax Returns and Audits. Except as set forth in Schedule 2.15 hereto, to the best of each Shareholder’s knowledge and belief:

(i)           CST has timely filed all federal, state, local and foreign returns, estimates and reports relating to Taxes ("Returns") required to be filed by CST with any Tax authority prior to the date hereof, except such Returns which are not material to CST.  All such Returns are true, correct and complete in all material respects.  Both of CST has paid all Taxes shown to be due on such Returns.

(ii)           All Taxes that CST is required by law to withhold or collect have been duly withheld or collected, and have been timely paid over to the proper governmental authorities to the extent due and payable.

 
Exhibit 2.1 - Page 8

 


(iii)           CST has not been delinquent in the payment of any material Tax nor is there any material Tax deficiency outstanding, proposed or assessed against CST, nor has CST executed any unexpired waiver of any statute of limitations on or extending the period for the assessment or collection of any Tax.

(iv)           No audit or other examination of any Return of CST by any Tax authority is presently in progress, nor has CST been notified of any request for such an audit or other examination.

(v)           No adjustment relating to any Returns filed by CST has been proposed in writing, formally or informally, by any Tax authority to CST or any representative thereof.

(vi)           CST have no liability for any material unpaid Taxes which have not been accrued for or reserved on CST balance sheet whether asserted or unasserted, contingent or otherwise, which is material to CST.

(vii)           CST has not taken any action and does not know of any fact, agreement, plan or other circumstance that is reasonably likely to prevent the Transaction from qualifying as a “reorganization” within the meaning of Section 368(a) of the Code.

2.16           Brokers; Third Party Expenses.  The Shareholders have not incurred, nor will they incur, directly or indirectly, any liability for brokerage or finders' fees or agent's commissions or any similar charges in connection with this Agreement or any transaction contemplated hereby.

2.17           Intellectual Property.  For the purposes of this Agreement, the following terms have the following definitions:

"Intellectual Property" shall mean any or all of the following and all worldwide common law and statutory rights in, arising out of, or associated therewith: (i) patents and applications therefor and all reissues, divisions, renewals, extensions, provisionals, continuations and continuations-in-part thereof ("Patents"); (ii) inventions (whether patentable or not), invention disclosures, improvements, trade secrets, proprietary information, know how, technology, technical data and customer lists, and all documentation relating to any of the foregoing; (iii) copyrights, copyrights registrations and applications therefor, and all other rights corresponding thereto throughout the world; (iv) domain names, uniform resource locators ("URLs") and other names and locators associated with the Internet ("Domain Names"); (v) industrial designs and any registrations and applications therefor; (vi) trade names, logos, common law trademarks and service marks, trademark and service mark registrations and applications therefor (collectively, "Trademarks"); (vii) all databases and data collections and all rights therein; (viii) all moral and economic rights of authors and inventors, however denominated, and (ix) any similar or equivalent rights to any of the foregoing (as applicable).

"Company Intellectual Property" shall mean any Intellectual Property that is owned by, or exclusively licensed to, CST or WPIG, as applicable.

 
Exhibit 2.1 - Page 9

 



"Registered Intellectual Property" means all Intellectual Property that is the subject of an application, certificate, filing, registration or other document issued, filed with, or recorded by any private, state, government or other legal authority.

"Company Registered Intellectual Property" means all of the Registered Intellectual Property owned by, or filed in the name of, CST or WPIG, as applicable.

"Company Products" means all current versions of products or service offerings of CST or WPIG, as applicable.

To the best of each Shareholder’s knowledge and belief,

(a)           No Company Intellectual Property or Company Product is subject to any material proceeding or outstanding decree, order, judgment, contract, license, agreement or stipulation restricting in any manner the use, transfer or licensing thereof by CST, or which may affect the validity, use or enforceability of such Company Intellectual Property or Company Product, which in any such case could reasonably be expected to have a Material Adverse Effect on CST.

(b)           Except as disclosed on Schedule 2.17 hereto, CST owns and has good and exclusive title to, each material item of Company Intellectual Property owned by it free and clear of any Liens (excluding non-exclusive licenses and related restrictions granted in the ordinary course); and CST is the exclusive owner of all material Trademarks used in connection with the operation or conduct of their business including the sale of any products or the provision of any services by CST.

(c)           The operation of the business of CST as such business currently is conducted, including (i) the design, development, manufacture, distribution, reproduction, marketing or sale of the products or services of CST (including Products), and (ii) CST use of any product, device or process, to CST knowledge and except as could not reasonably be expected to have a Material Adverse Effect, has not and does not and will not infringe or misappropriate the Intellectual Property of any third party or constitute unfair competition or trade practices under the laws of any jurisdiction.

2.18           Agreements, Contracts and Commitments.

(a)           Schedule 2.18 hereto sets forth a complete and accurate list of all Material Contracts (as hereinafter defined), specifying the parties thereto.  For purposes of this Agreement:

"Contracts" shall mean all contracts, agreements, leases, mortgages, indentures, note, bond, liens, license, permit, franchise, purchase orders, sales orders, arbitration awards, judgments, decrees, orders, documents, instruments, understandings and commitments, or other instrument or obligation (including without limitation outstanding offers or proposals) of any kind, whether written or oral, to which CST is a party or by or to which any of the properties or assets of CST may be bound, subject or affected (including without limitation notes or other instruments payable to CST).

 
Exhibit 2.1 - Page 10

 



"Material Contracts" shall mean (x) each Contract (I) providing for payments (past, present or future) to CST in excess of $50,000 in the aggregate or (II) under which or in respect of which CST presently has any liability or obligation of any nature whatsoever (absolute, contingent or otherwise) in excess of $50,000; (y) each Contract which otherwise is or may be material to the businesses, operations, assets, condition (financial or otherwise) or prospects of CST; and (z) without limitation of subclause (x) or subclause (y), each of the following Contracts:

(i)           any mortgage, indenture, note, installment obligation or other instrument, agreement or arrangement for or relating to any borrowing of money by or from CST, any Director or Shareholder ("Insider") of CST;

(ii)           any guaranty, direct or indirect, by CST or any Insider of CST of any obligation for borrowings, or otherwise, excluding endorsements made for collection in the ordinary course of business;

(iii)           any Contract made other than in the ordinary course of business or (x) providing for the grant to any preferential rights to purchase or lease any asset of CST, or (y) providing for any right (exclusive or non-exclusive) to sell or distribute, or otherwise relating to the sale or distribution of, any product or service of CST;

(iv)           any obligation to make payments, contingent or otherwise, arising out of the prior acquisition of the business, assets or Shares of other Persons;

(v)           any collective bargaining agreement with any labor union;

(vi)           any lease or similar arrangement for the use by CST of Personal Property; and

(viii)           any Contract to which any Insider of CST is a party.

(b)           Each Contract was entered into at arms' length and in the ordinary course, is in full force and effect and is valid and binding upon and enforceable against each of the parties thereto.  True, correct and complete copies of all Material Contracts (or written summaries in the case of oral Material Contracts) and of all outstanding offers or proposals of CST have been heretofore delivered to WPIG.

(c)           NCST is in breach of or in default under, and no event has occurred which with notice or lapse of time or both would become a breach of or default under, any Contract, and no party to any Contract has given any notice of any claim of any such breach, default or event, which, individually or in the aggregate, are reasonably likely to have a Material Adverse Effect on CST.  Each Contract to which CST is a party or by which it is bound that has not expired by its terms is in full force and effect, except where such failure to be in full force and effect is not reasonably likely to have a Material Adverse Effect on CST.

 
Exhibit 2.1 - Page 11

 


2.19           Interested Party Transactions.  Except as set forth in the Schedule 2.19 hereto, no employee, Director or Shareholder of CST or a Shareholder of his immediate family is indebted to CST, nor is CST indebted (or committed to make loans or extend or guarantee credit) to any of them, other than (i) for payment of salary for services rendered, (ii) reimbursement for reasonable expenses incurred on behalf of CST, and (iii) for other employee benefits made generally available to all employees.  To each Shareholder’s knowledge, none of such individuals has any direct or indirect ownership interest in any Person with whom CST is affiliated or with whom CST has a contractual relationship, or any Person that competes with CST, except that each employee, Shareholder and Director of CST and Shareholders of their respective immediate families may own less than 5% of the outstanding stock in publicly traded companies that may compete with CST.  Except as set forth in Schedule 2.19, to each Shareholder’s knowledge, no Director or Shareholder or any  Shareholders of their immediate families is, directly or indirectly, interested in any material contract with CST (other than such contracts as relate to any such individual ownership of Shares or other securities of CST).

2.20           Representations and Warranties Complete.  The representations and warranties of the Shareholders included in this Agreement and any list, statement, document or information set forth in, or attached to, any Schedule provided pursuant to this Agreement or delivered hereunder, are true and complete in all material respects and do not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements contained therein not misleading, under the circumstance under which they were made.


ARTICLE III

REPRESENTATIONS AND WARRANTIES OF WPIG

Except as set forth on the disclosure schedules, WPIG hereby represents and warrants to CST and their Shareholders as follows:

3.1           Organization and Standing.  WPIG is a corporation duly organized and existing in good standing under the laws of the State of Colorado.  WPIG has heretofore delivered to CST complete and correct copies of its Articles of Incorporation and Bylaws as now in effect.  WPIG has full corporate power and authority to carry on its businesses as they are now being conducted and as now proposed to be conducted and to own or lease its properties and assets.  Except as disclosed in Schedule 3.1 hereto, WPIG has no other subsidiaries or direct or indirect interest (by way of stock ownership or otherwise) in any firm, corporation, limited liability company, partnership, association or business.

           3.2           Corporate Authority.  WPIG has full corporate power and authority to enter into this and the other agreements to be made pursuant to the Transaction and to carry out the transactions contemplated hereby and thereby.  All corporate acts and proceedings required for the authorization, execution, delivery and performance of the Transaction and such other agreements and documents by WPIG have been duly and validly taken or will have been so taken prior to the Closing.  Each of the Transaction Documents constitutes a legal, valid and binding obligation of WPIG, each enforceable against it in accordance with their respective terms, except as such enforcement may be limited by bankruptcy, insolvency, reorganization or other similar laws affecting creditors’ rights generally and by general principles of equity.
 

 
Exhibit 2.1 - Page 12

 


 
           3.3           Broker’s and Finder’s Fees.  No person, firm, corporation or other entity is entitled by reason of any act or omission of WPIG to any broker’s or finder’s fees, commission or other similar compensation with respect to the execution and delivery of this Agreement, or with respect to the consummation of the Transaction contemplated hereby or thereby.  WPIG indemnifies and holds CST harmless from and against any and all loss, claim or liability arising out of any such claim from any other Person who claims he, she or it introduced WPIG to, or assisted them with, the transactions contemplated by or described herein.

           3.4           Capitalization of Parent.  The authorized capital stock of WPIG consists of (a) 50,000,000 shares of Common Stock, par value $.001 per share (the “WPIG Common Stock”), of which not more than 1,696,000 shares will be, prior to the Effective Time, issued and outstanding, and (b) 1,000,000 shares of Preferred Stock, par value $.01 per share, of which no shares are issued or outstanding.  Except as provided in Schedule 3.4, WPIG has no outstanding options, rights or commitments to issue shares of WPIG Common Stock or any other equity security of WPIG and there are no outstanding securities convertible or exercisable into or exchangeable for shares of WPIG Common Stock or any other equity security of WPIG.  There is no voting trust, agreement or arrangement among any of the beneficial holders of WPIG Common Stock affecting the nomination or election of directors or the exercise of the voting rights of WPIG Common Stock.  All outstanding shares of the capital stock of WPIG are validly issued and outstanding, fully paid and nonassessable, and none of such shares have been issued in violation of the preemptive rights of any person.

           3.5           Validity of Shares.  The 8,000,000 shares of WPIG Common Stock to be issued at the Closing pursuant to Section 1.5 hereof, when issued and delivered in accordance with the terms hereof shall be duly and validly issued, fully paid and nonassessable.  Based in part on the representations and warranties of the Shareholders as contemplated by Article II hereof and assuming the accuracy thereof, the issuance of the WPIG Common Stock herein will be exempt from the registration and prospectus delivery requirements of the Securities Act and from the qualification or registration requirements of any applicable state blue sky or securities laws.

           3.6           SEC Reporting and Compliance.
 
(a)WPIG has filed with the Commission all reports required to be filed by companies registered pursuant to Section 12(g) of the Exchange Act.
 
                        (b)      WPIG has delivered to the Company true and complete copies of all annual reports on Form 10-K, quarterly reports on Form 10-Q and other statements reports and filings (collectively, the “WPIG SEC Documents”) filed by WPIG with the Commission.
 
 (c)   Prior to and until the Closing, WPIG will provide to CST copies of any and all amendments or supplements to the WPIG SEC Documents filed with the Commission subsequent to the date hereof and any and all subsequent statements, reports and filings filed by the WPIG with the Commission or delivered to the stockholders of WPIG.
 

 
Exhibit 2.1 - Page 13

 


 
(d)           The shares of WPIG Common Stock are not quoted on any trading exchange.
 
(e)           Between the date hereof and the Effective Time, WPIG shall continue to satisfy the filing requirements of the Exchange Act.
 
           3.7           Financial Statements.  The balance sheets, and statements of operations, statements of changes in shareholders’ equity and statements of cash flows contained in the WPIG SEC Documents (the “WPIG Financial Statements”) (i) have been prepared in accordance with GAAP applied on a basis consistent with prior periods (and, in the case of unaudited financial information, on a basis consistent with year-end audits), (ii) are in accordance with the books and records of WPIG, and (iii) present fairly in all material respects the financial condition of the WPIG at the dates therein specified and the results of its operations and changes in financial position for the periods therein specified.  The financial statements included in the Annual Report on Form 10-K for the fiscal year ended December 31, 2008, are audited by, and include the related report of Ronald R. Chadwick, P.C., of Aurora, Colorado, WPIG’s independent certified public accountants.  The financial information included in the Quarterly Report on Form 10-Q for the quarter ended July 31, 2009 is unaudited, but reflects all adjustments (including normally recurring accounts) that WPIG considers necessary for a fair presentation of such information and have been prepared in accordance with generally accepted accounting principles, consistently applied.

           3.8           Governmental Consents.  All consents, approvals, orders, or authorizations, qualifications, designations, declarations, or filings with any federal or state governmental authority on the part of WPIG required in connection with the consummation of the Transaction shall have been obtained prior to, and be effective as of, the Closing.

           3.9           Compliance with Laws and Instruments.  The execution, delivery and performance by WPIG of this Agreement and the Articles of Share Exchange (the “Share Exchange Documents”) to be made by WPIG pursuant to or in connection with this Agreement or the Articles of Share Exchange and the consummation by WPIG of the Transaction contemplated thereby will not cause WPIG to violate or contravene (i) any provision of law, (ii) any rule or regulation of any agency or government, (iii) any order, judgment or decree of any court, or (v) any provision of its Articles of Incorporation or bylaws as amended and in effect on and as of the Effective Time and will not violate or be in conflict with, result in a breach of or constitute (with or without notice or lapse of time, or both) a default under any indenture, loan or credit agreement, deed of trust, mortgage, security agreement or other agreement or contract to which WPIG is a party or by which WPIG or any of its respective properties is bound.
 
           3.10           No General Solicitation.  In issuing WPIG Common Stock in the Transaction contemplated hereunder, neither WPIG nor anyone acting on its behalf has offered to sell the WPIG Common Stock by any form of general solicitation or advertising.

           3.11           Binding Obligations.  The Share Exchange Documents constitute the legal, valid and binding obligations of the WPIG, and are enforceable against WPIG in accordance with their respective terms, except as such enforcement is limited by bankruptcy, insolvency and other similar laws affecting the enforcement of creditors’ rights generally and by general principles of equity.

 
Exhibit 2.1 - Page 14

 



           3.12           Absence of Undisclosed Liabilities.  WPIG  has no obligation or liability (whether accrued, absolute, contingent, liquidated or otherwise, whether due or to become due), arising out of any transaction entered into at or prior to the Closing, except (a) as disclosed in the WPIG SEC Documents, (b) to the extent set forth on or reserved against in the audited balance sheet of WPIG as of December 31, 2008 (the “WPIG Balance Sheet”) or the notes to the WPIG Financial Statements, (c) current liabilities incurred and obligations under agreements entered into in the usual and ordinary course of business since December 31, 2008 (the “WPIG Balance Sheet Date”), none of which (individually or in the aggregate) materially and adversely affects the condition (financial or otherwise), properties, assets, liabilities, business operations, results of operations or prospects of the WPIG, taken as a whole (the "Condition of WPIG"), and (d) by the specific terms of any written agreement, document or arrangement attached as an exhibit to the WPIG SEC Documents.

           3.13           Changes.  Since the WPIG Balance Sheet Date, except as disclosed in the WPIG SEC Documents, the WPIG has not (a) incurred any debts, obligations or liabilities, absolute, accrued or, to WPIG’s knowledge, contingent, whether due or to become due, except for current liabilities incurred in the usual and ordinary course of business, (b) discharged or satisfied any Liens other than those securing, or paid any obligation or liability other than, current liabilities shown on the WPIG Balance Sheet and current liabilities incurred since the WPIG Balance Sheet Date, in each case in the usual and ordinary course of business, (c) mortgaged, pledged or subjected to Lien any of its assets, tangible or intangible, other than in the usual and ordinary course of business, (d) sold, transferred or leased any of its assets, except in the usual and ordinary course of business, (e) cancelled or compromised any debt or claim, or waived or released any right of material value, (f) suffered any physical damage, destruction or loss (whether or not covered by insurance) which could reasonably be expected to have a material adverse effect on the Condition of WPIG, (g) entered into any transaction other than in the usual and ordinary course of business, (h) encountered any labor union difficulties, (i) made or granted any wage or salary increase or made any increase in the amounts payable under any profit sharing, bonus, deferred compensation, severance pay, insurance, pension, retirement or other employee benefit plan, agreement or arrangement, other than in the ordinary course of business consistent with past practice, or entered into any employment agreement, (j) issued or sold any shares of capital stock, bonds, notes, debentures or other securities or granted any options (including employee stock options), warrants or other rights with respect thereto, (k) declared or paid any dividends on or made any other distributions with respect to, or purchased or redeemed, any of its outstanding capital stock, (l) suffered or experienced any change in, or condition affecting, the financial condition of the WPIG other than changes, events or conditions in the usual and ordinary course of its business, none of which (either by itself or in conjunction with all such other changes, events and conditions) could reasonably be expected to have a material adverse effect on the Condition of WPIG, (m) made any change in the accounting principles, methods or practices followed by it or depreciation or amortization policies or rates theretofore adopted, (n) made or permitted any amendment or termination of any material contract, agreement or license to which it is a party, (o) suffered any material loss not reflected in the WPIG Balance Sheet or its statement of income for the year ended on the WPIG Balance Sheet Date, (p) paid, or made any accrual or arrangement for payment of, bonuses or special compensation of any kind or any severance or termination pay to any present or former officer, director, employee, stockholder or consultant, (q) made or agreed to make any charitable contributions or incurred any non-business expenses in excess of $5,000 in the aggregate, or (r) entered into any agreement, or otherwise obligated itself, to do any of the foregoing.

 
Exhibit 2.1 - Page 15

 


           3.14           Tax Returns and Audits.  All required federal, state and local Tax Returns of the WPIG have been accurately prepared in all material respects and duly and timely filed, and all federal, state and local Taxes required to be paid with respect to the periods covered by such returns have been paid to the extent that the same are material and have become due, except where the failure so to file or pay could not reasonably be expected to have a material adverse effect upon the Condition of WPIG.  WPIG is not and has not been delinquent in the payment of any Tax.  WPIG has not had a Tax deficiency assessed against it.  None of WPIG’s federal income tax returns nor any state or local income or franchise tax returns has been audited by governmental authorities.  The reserves for Taxes reflected on the WPIG Balance Sheet are sufficient for the payment of all unpaid Taxes payable by WPIG with respect to the period ended on the WPIG Balance Sheet Date.  There are no federal, state, local or foreign audits, actions, suits, proceedings, investigations, claims or administrative proceedings relating to Taxes or any Tax Returns of WPIG now pending, and WPIG has not received any notice of any proposed audits, investigations, claims or administrative proceedings relating to Taxes or any Tax Returns.

           3.15           Employee Benefit Plans; ERISA.  There are no “employee benefit plans” (within the meaning of Section 3(3) of ERISA) nor any other employee benefit or fringe benefit arrangements, practices, contracts, policies or programs other than programs merely involving the regular payment of wages, commissions, or bonuses established, maintained or contributed to by WPIG.

           3.16           Litigation.  There is no legal action, suit, arbitration or other legal, administrative or other governmental proceeding pending or, to the knowledge of WPIG, threatened against or affecting WPIG or its properties, assets or business.  To the knowledge of WPIG, WPIG is not in default with respect to any order, writ, judgment, injunction, decree, determination or award of any court or any governmental agency or instrumentality or arbitration authority.

           3.17           Environmental Matters.  (i) WPIG is in compliance in all material respects with applicable environmental laws; (ii) WPIG has all Permits required pursuant to environmental laws and are in compliance in all material respects with the terms thereof; (iii) there are no past or present events, activities, practices, incidents, actions or plans in connection with the operations of WPIG which have given rise to or are reasonably likely to give rise to any liability on the part of WPIG under any environmental law; (iv) WPIG has not generated, used, transported, treated, stored, released or disposed of, or has suffered or permitted anyone else to generate, use, transport, treat, store, release or dispose of any hazardous substance in violation of any environmental laws; and (v) there has not been any generation, use, transportation, treatment, storage, release or disposal of any hazardous substance in connection with the conduct of the business of WPIG or the use of any property or facility by WPIG, or to the knowledge of WPIG, any nearby or adjacent properties, in each case, which has created or might reasonably be expected to create any material liability under any environmental law or which would require reporting to or notification of any Governmental Body.

           3.18           Real Property.  WPIG has not owned any real property or any interest in any real property.
 

 
Exhibit 2.1 - Page 16

 


 
           3.19           Labor Matters.  WPIG is not now, and has not been in the last five years, bound by or party to any collective bargaining agreement and, to the knowledge of WPIG, no application for certification of a collective bargaining agent is pending.  WPIG is in compliance with all applicable laws applicable to WPIG affecting employment practices and terms and conditions of employment.
 
           3.20           Full Disclosure.  This Agreement (including the information contained in the disclosure schedules) and the SEC Reports, do not (i) with respect to WPIG, contain any representation, warranty or information that is false or misleading with respect to any material fact, or (ii) with respect to WPIG, omit to state any material fact necessary in order to make the representations, warranties and information contained herein (including the information contained in the disclosure schedules) and the SEC Reports, in the context in which made or provided, not false or misleading.


ARTICLE IV

CONDUCT PRIOR TO THE EFFECTIVE TIME

4.1           Conduct of Business by CST and WPIG.  During the period from the date of this Agreement and continuing until the earlier of the termination of this Agreement pursuant to its terms or the Effective Time (as herein defined), the Shareholders, on behalf of CST, and WPIG shall, except to the extent that the other party shall otherwise consent in writing, carry on its business in the usual, regular and ordinary course consistent with past practices, in substantially the same manner as heretofore conducted and in compliance with all applicable laws and regulations (except where noncompliance would not have a Material Adverse Effect), pay its debts and taxes when due subject to good faith disputes over such debts or taxes, pay or perform other material obligations when due, and use its commercially reasonable efforts consistent with past practices and policies to (i) preserve substantially intact its present business organization, (ii) keep available the services of its present Directors, officers and employees, and (iii) preserve its relationships with customers, suppliers, distributors, licensors, licensees, and others with which it has significant business dealings.  In addition, except as permitted or required by the terms of this Agreement, without the prior written consent of the other party, during the period from the date of this Agreement and continuing until the earlier of the termination of this Agreement pursuant to its terms or the Closing, CST and WPIG shall not do any of the following:

(a)           Waive any stock repurchase rights, accelerate, amend or (except as specifically provided for herein) change the period of exercisability of options or restricted stock, or reprice options granted under any employee, consultant, director or other stock plans or authorize cash payments in exchange for any options granted under any of such plans;

 
Exhibit 2.1 - Page 17

 


(b)           Grant any severance or termination pay to any officer or employee except pursuant to applicable law, written agreements outstanding, or policies existing on the date hereof and as previously or concurrently disclosed in writing or made available to the other party, or adopt any new severance plan, or amend or modify or alter in any manner any severance plan, agreement or arrangement existing on the date hereof;

(c)           Transfer or license to any person or otherwise extend, amend or modify any material rights to any Intellectual Property of CST or WPIG, or enter into grants to transfer or license to any person future patent rights, other than in the ordinary course of business consistent with past practices provided that in no event shall CST or WPIG license on an exclusive basis or sell any Intellectual Property of CST or WPIG, as applicable;

(d)           Declare, set aside or pay any dividends on or make any other distributions (whether in cash, stock, equity securities or property) in respect of any capital stock or split, combine or reclassify any capital stock or issue or authorize the issuance of any other securities in respect of, in lieu of or in substitution for any capital stock;

(e)           Purchase, redeem or otherwise acquire, directly or indirectly, any Shares of capital stock or Shares of CST and WPIG, as applicable;

(f)           Issue, deliver, sell, authorize, pledge or otherwise encumber, or agree to any of the foregoing with respect to, any shares of capital stock, Shares, or any securities convertible into or exchangeable for shares of capital stock, or Shares, or subscriptions, rights, warrants or options to acquire any shares of capital stock, Shares, or any securities convertible into or exchangeable for shares of capital stock or Shares, or enter into other agreements or commitments of any character obligating it to issue any such shares of capital stock, Shares or convertible or exchangeable securities;

(g)           Except as provided herein or as disclosed to the other party, amend its Charter Documents;

(h)           Acquire or agree to acquire by merging or consolidating with, or by purchasing any equity interest in or a portion of the assets of, or by any other manner, any business or any corporation, partnership, association or other business organization or division thereof, or otherwise acquire or agree to acquire any assets which are material, individually or in the aggregate, to the business of WPIG or CST, as applicable, or enter into any joint ventures, strategic partnerships or alliances or other arrangements that provide for exclusivity of territory or otherwise restrict such party's ability to compete or to offer or sell any products or services;

(i)           Sell, lease, license, encumber or otherwise dispose of any properties or assets, except sales of inventory in the ordinary course of business consistent with past practice and, except for the sale, lease or disposition (other than through licensing) of property or assets which are not material, individually or in the aggregate, to the business of such party;

 
Exhibit 2.1 - Page 18

 


(j)           Incur any indebtedness for borrowed money in excess of $1,000 in the aggregate or guarantee any such indebtedness of another person, issue or sell any debt securities or options, warrants, calls or other rights to acquire any debt securities of WPIG or CST, as applicable, enter into any "keep well" or other agreement to maintain any financial statement condition or enter into any arrangement having the economic effect of any of the foregoing;

(k)           Adopt or amend any employee benefit plan, policy or arrangement, any employee stock purchase or employee stock option plan, or enter into any employment contract or collective bargaining agreement (other than offer letters and letter agreements entered into in the ordinary course of business consistent with past practice with employees who are terminable "at will"), pay any special bonus or special remuneration to any Director, director or employee, or increase the salaries or wage rates or fringe benefits (including rights to severance or indemnification) of its Directors, directors, officers, employees or consultants, except in the ordinary course of business consistent with past practices;

(l)           (i) pay, discharge, settle or satisfy any claims, liabilities or obligations (absolute, accrued, asserted or unasserted, contingent or otherwise), or litigation (whether or not commenced prior to the date of this Agreement) other than the payment, discharge, settlement or satisfaction, in the ordinary course of business consistent with past practices or in accordance with their terms, or liabilities recognized or disclosed in the most recent financial statements (or the notes thereto) of CST or of WPIG, as applicable, or incurred since the date of such financial statements, or (ii) waive the benefits of, agree to modify in any manner, terminate, release any person from or knowingly fail to enforce any confidentiality or similar agreement to which CST is a party or of which CST is a beneficiary or to which WPIG is a party or of which WPIG is a beneficiary, as applicable;

(m)           Except in the ordinary course of business consistent with past practices, modify, amend or terminate any Contract of CST or WPIG, as applicable, or other material contract or material agreement to which CST or WPIG is a party or waive, delay the exercise of, release or assign any material rights or claims thereunder;

(n)           Except as required by U.S. GAAP, revalue any of its assets or make any change in accounting methods, principles or practices;

(o)           Incur or enter into any agreement, contract or commitment requiring such party to pay in excess of $1,000 in any 12 month period;

(p)           Settle any litigation;

(q)           Make or rescind any Tax elections that, individually or in the aggregate, could be reasonably likely to adversely affect in any material respect the Tax liability or Tax attributes of such party, settle or compromise any material income tax liability or, except as required by applicable law, materially change any method of accounting for Tax purposes or prepare or file any Return in a manner inconsistent with past practice;

(r)           Form, establish or acquire any Subsidiary;

 
Exhibit 2.1 - Page 19

 



(s)           Permit any Person to exercise any of its discretionary rights under any Plan to provide for the automatic acceleration of any outstanding options, the termination of any outstanding repurchase rights or the termination of any cancellation rights issued pursuant to such plans; or

(t)           Agree in writing or otherwise agree, commit or resolve to take any of the actions described in Section 4.1 (a) through (s) above.


ARTICLE V

ADDITIONAL AGREEMENTS

5.1.           Compliance with Laws.  The Shareholders, CST and WPIG shall cooperate with each other and use their respective commercially reasonable efforts to take or cause to be taken all actions, and do or cause to be done all things, necessary, proper or advisable on their part under this Agreement and applicable laws to consummate the Transaction and the other transactions contemplated hereby as soon as practicable, including preparing and filing as soon as practicable of all documentation to effect all necessary notices, reports and other filings and to obtain as soon as practicable all consents, registrations, approvals, permits and authorizations necessary or advisable to be obtained from any third party or any Governmental Entity in order to consummate the Transaction or any of the other transactions contemplated hereby.  Subject to applicable laws relating to the exchange of information and the preservation of any applicable attorney-client privilege, work-product doctrine, self-audit privilege or other similar privilege, each of the Shareholders and WPIG shall have the right to review and comment on in advance, and to the extent practicable each will consult the other on, all the information relating to such party, and any subsidiaries, that appear in any filing made with, or written materials submitted to, any third party and/or any Governmental Entity in connection with the Transaction and the other transactions contemplated hereby.  In exercising the foregoing right, each of the parties hereto shall act reasonably and as promptly as practicable.

5.2           Required Information.  The Shareholders, on behalf of CST, and WPIG each shall, upon request by the other, furnish the other with all information concerning themselves, their respective subsidiaries, Directors, directors, officers and Shareholders and such other matters as may be reasonably necessary or advisable in connection with the Transaction, or any other statement, filing, notice or application made by or on behalf of CST and WPIG to any third party or any Governmental Entity in connection with the Transaction and the other transactions contemplated hereby.  Each party warrants and represents to the other party that all such information shall be true and correct in all material respects and will not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements contained therein, in light of the circumstances under which they were made, not misleading.

 
Exhibit 2.1 - Page 20

 



5.3           Confidentiality; Access to Information.

(a)           Confidentiality. Any confidentiality agreement previously executed by the parties shall be superseded in its entirety by the provisions of this Agreement.  Each party agrees to maintain in confidence any non-public information received from the other party, and to use such non-public information only for purposes of consummating the transactions contemplated by this Agreement.  Such confidentiality obligations will not apply to (i) information which was known to the one party or their respective agents prior to receipt from the other party; (ii) information which is or becomes generally known; (iii) information acquired by a party or their respective agents from a third party who was not bound to an obligation of confidentiality; and (iv) disclosure required by law.  In the event this Agreement is terminated as provided in Article VIII hereof, each party will return or cause to be returned to the other all documents and other material obtained from the other in connection with the Transaction contemplated hereby.

(b)           Access to Information.

(i)           The Shareholders, on behalf of CST, will afford WPIG and its financial advisors, accountants, counsel and other representatives reasonable access during normal business hours, upon reasonable notice, to the properties, books, records and personnel of CST during the period prior to the Closing to obtain all information concerning the business, including the status of product development efforts, properties, results of operations and personnel of CST, as WPIG may reasonably request.  No information or knowledge obtained by WPIG in any investigation pursuant to this Section 5.3 will affect or be deemed to modify any representation or warranty contained herein or the conditions to the obligations of the parties to consummate the Transaction.

(ii)           WPIG will afford the Shareholders and Directors of CST and their financial advisors, underwriters, accountants, counsel and other representatives reasonable access during normal business hours, upon reasonable notice, to the properties, books, records and personnel of WPIG during the period prior to the Closing to obtain all information concerning the business, including the status of product development efforts, properties, results of operations and personnel of WPIG, as they may reasonably request.  No information or knowledge obtained by the Shareholders in any investigation pursuant to this Section 5.3 will affect or be deemed to modify any representation or warranty contained herein or the conditions to the obligations of the parties to consummate the Transaction.

5.4           Public Disclosure.  Except to the extent previously disclosed or to the extent the parties believe that they are required by applicable law or regulation to make disclosure, prior to Closing, no party shall issue any statement or communication to the public regarding the Transaction without the consent of the other party, which consent shall not be unreasonably withheld.  To the extent a party hereto believes it is required by law or regulation to make disclosure regarding the Transaction, it shall, if possible, immediately notify the other party prior to such disclosure.

 
Exhibit 2.1 - Page 21

 


5.5           Reasonable Efforts; Notification.

(a)            Upon the terms and subject to the conditions set forth in this Agreement, each of the parties agrees to use its commercially reasonable efforts to take, or cause to be taken, all actions, and to do, or cause to be done, and to assist and cooperate with the other parties in doing, all things necessary, proper or advisable to consummate and make effective, in the most expeditious manner practicable, the Transaction and the other transactions contemplated by this Agreement, including using commercially reasonable efforts to accomplish the following:  (i) the taking of all reasonable acts necessary to cause the conditions precedent set forth in Article VI to be satisfied, (ii) the obtaining of all necessary actions or non-actions, waivers, consents, approvals, orders and authorizations from Governmental Entities and the making of all necessary registrations, declarations and filings (including registrations, declarations and filings with Governmental Entities, if any) and the taking of all reasonable steps as may be necessary to avoid any suit, claim, action, investigation or proceeding by any Governmental Entity, (iii) the obtaining of all consents, approvals or waivers from third parties required as a result of the transactions contemplated in this Agreement, (iv) the defending of any suits, claims, actions, investigations or proceedings, whether judicial or administrative, challenging this Agreement or the consummation of the transactions contemplated hereby, including seeking to have any stay or temporary restraining order entered by any court or other Governmental Entity vacated or reversed, and (v) the execution or delivery of any additional instruments reasonably necessary to consummate the transactions contemplated by, and to fully carry out the purposes of, this Agreement.  In connection with and without limiting the foregoing, if any takeover statute or similar statute or regulation is or becomes applicable to the Transaction, this Agreement or any of the transactions contemplated by this Agreement, the parties hereto shall use commercially reasonable efforts to enable the Transaction and the other transactions contemplated by this Agreement to be consummated as promptly as practicable on the terms contemplated by this Agreement.  Notwithstanding anything herein to the contrary, nothing in this Agreement shall be deemed to require any of the parties hereto to agree to any divestiture by itself or any of its affiliates of Shares of capital stock, Shares or of any business, assets or property, or the imposition of any material limitation on the ability of any of them to conduct their business or to own or exercise control of such assets, properties and stock.

(b)           The Shareholders shall give prompt notice to WPIG upon becoming aware that any representation or warranty made by them contained in this Agreement has become untrue or inaccurate, or of any failure of the Shareholders to comply with or satisfy in any material respect any covenant, condition or agreement to be complied with or satisfied by them under this Agreement, in each case, such that the conditions set forth in Article VI would not be satisfied; provided, however, that no such notification shall affect the representations, warranties, covenants or agreements of the parties or the conditions to the obligations of the parties under this Agreement.

(c)           WPIG shall give prompt notice to the Shareholders upon becoming aware that any representation or warranty made by it contained in this Agreement has become untrue or inaccurate, or of any failure of WPIG to comply with or satisfy in any material respect any covenant, condition or agreement to be complied with or satisfied by it under this Agreement, in each case, such that the conditions set forth in Article VI would not be satisfied; provided, however, that no such notification shall affect the representations, warranties, covenants or agreements of the parties or the conditions to the obligations of the parties under this Agreement.

 
Exhibit 2.1 - Page 22

 



5.6           Business Records.  At Closing, the Shareholders shall cause to be delivered to WPIG all records and documents relating to CST including, without limitation, books, records, government filings, Returns, Charter Documents, Corporate Records, stock records, consent decrees, orders, and correspondence, Director and Shareholder minutes and resolutions, stock ownership records, financial information and records, electronic files containing any financial information and records, and other documents used in or associated with CST ("Business Records").

5.7           CST Customers.  Nothing in this Agreement gives any right to WPIG or any of its agents, employees, or contractors to contract in any way any customer of CST until after the Transaction closes.  WPIG agrees that if the Transaction does not close, that all CST customer information, customer lists, and related information remains the asset and trade secret of CST.

5.8           Executive Officers and Directors of WPIG.  From and after the Effective Time, until successors are duly elected or appointed and qualified in accordance with applicable law, the current officers and directors of WPIG shall resign their respective positions with WPIG.  Prior thereto, the WPIG Board of Directors shall appoint the following persons to the WPIG Board of Directors: Christine Tedesco and Michael Thomsen.  In addition, the WPIG Board of Directors shall appoint the following persons to the positions indicated:  Christine Tedesco, Chief Executive Officer and President Chief Financial Officer and Treasurer; and Michael Thomsen, Secretary;

ARTICLE VI

CONDITIONS TO THE TRANSACTION

6.1           Conditions to Obligations of Each Party to Effect the Share Exchange.  The respective obligations of each party to this Agreement to effect the Transaction shall be subject to the satisfaction at or prior to the Effective Time of the following conditions:

(a)           No Order.  No Governmental Entity shall have enacted, issued, promulgated, enforced or entered any statute, rule, regulation, executive order, decree, injunction or other order (whether temporary, preliminary or permanent) which is in effect and which has the effect of making the Transaction illegal or otherwise prohibiting consummation of the Transaction, substantially on the terms contemplated by this Agreement.  All waiting periods, if any, in any jurisdiction in which CST or WPIG has material operations relating to the transactions contemplated hereby will have expired or terminated early.

6.2           Additional Conditions to Obligations of Shareholders.  The obligations of the Shareholders to consummate and effect the Transaction shall be subject to the satisfaction at or prior to the Effective Time of each of the following conditions, any of which may be waived, in writing, exclusively by the Shareholders:

(a)           Representations and Warranties.  Each representation and warranty of WPIG contained in this Agreement (i) shall have been true and correct as of the date of this Agreement and (ii) shall be true and correct on and as of the Effective Time with the same force and effect as if made on the Effective Time.

 
Exhibit 2.1 - Page 23

 



 
(b)           Agreements and Covenants.  WPIG shall have performed or complied in all material respects with all agreements and covenants required by this Agreement to be performed or complied with by them on or prior to the Effective Time, except to the extent that any failure to perform or comply (other than a willful failure to perform or comply or failure to perform or comply with an agreement or covenant reasonably within the control of WPIG) does not, or will not, constitute a Material Adverse Effect with respect to WPIG taken as a whole.

(c)           Consents.  WPIG shall have obtained all consents, waivers and approvals required in connection with the consummation of the transactions contemplated hereby, other than consents, waivers and approvals the absence of which, either alone or in the aggregate, could not reasonably be expected to have a Material Adverse Effect on WPIG taken as a whole.

(d)           Material Adverse Effect.  No Material Adverse Effect with respect to WPIG shall have occurred since the date of this Agreement.

(e)           Other Deliveries.  At Closing, or as soon thereafter as practical, WPIG shall have delivered to the Shareholders:  (i) certificates representing the WPIG Shares to Shareholders in accordance with Section 1.5, (ii) copies of resolutions and actions taken by WPIG's Board of Directors in connection with the approval of this Agreement and the transactions contemplated hereunder, and (iii) such other documents or certificates as shall reasonably be required by the Shareholders and their counsel in order to consummate the transactions contemplated hereunder.

6.3           Additional Conditions to the Obligations of WPIG.  The obligations of WPIG to consummate and effect the Transaction shall be subject to the satisfaction at or prior to the Effective Time of each of the following conditions, any of which may be waived, in writing, exclusively by WPIG:

(a)           Representations and Warranties.  Each representation and warranty of the Shareholders contained in this Agreement (i) shall have been true and correct as of the date of this Agreement and (ii) shall be true and correct on and as of the Effective Time with the same force and effect as if made on and as of the Closing.

(b)           Agreements and Covenants.  The Shareholders shall have performed or complied in all material respects with all agreements and covenants required by this Agreement to be performed or complied with by them at or prior to the Effective Time except to the extent that any failure to perform or comply (other than a willful failure to perform or comply or failure to perform or comply with an agreement or covenant reasonably within the control of the Shareholders) does not, or will not, constitute a Material Adverse Effect on CST.

(c)           Consents.  Both CST shall have obtained all consents, waivers and approvals required in connection with the consummation of the transactions contemplated hereby, other than consents, waivers and approvals the absence of which, either alone or in the aggregate, could not reasonably be expected to have a Material Adverse Effect on CST.

(d)           Material Adverse Effect.  No Material Adverse Effect with respect to CST shall have occurred since the date of this Agreement.

 
Exhibit 2.1 - Page 24

 



(e)           Other Deliveries.  At Closing, the Shareholders shall have delivered to WPIG: (i) certificates representing the Shares owned by the Shareholders, together with stock powers or other assignments or documents to effectuate transfer of the Shares in accordance with Section 1.4; and (ii) such other documents or certificates as shall reasonably be required by WPIG and its counsel in order to consummate the transactions contemplated hereunder.

6.4           Additional Conditions to the Obligations of CST and Shareholders.  The obligations of CST and the Shareholders to consummate and effect the Transaction shall be subject to the satisfaction at or prior to the Effective Time of each of the following conditions, any of which may be waived, in writing, exclusively by CST and the Shareholders:

(a)           Representations and Warranties.  Each representation and warranty of WPIG contained in this Agreement (i) shall have been true and correct as of the date of this Agreement and (ii) shall be true and correct on and as of the Effective Time with the same force and effect as if made on and as of the Closing.

(b)           Agreements and Covenants.  WPIG shall have performed or complied in all material respects with all agreements and covenants required by this Agreement to be performed or complied with by it at or prior to the Effective Time except to the extent that any failure to perform or comply (other than a willful failure to perform or comply or failure to perform or comply with an agreement or covenant reasonably within the control of WPIG) does not, or will not, constitute a Material Adverse Effect on WPIG.

(c)           Consents.  WPIG shall have obtained all consents, waivers and approvals required in connection with the consummation of the transactions contemplated hereby, other than consents, waivers and approvals the absence of which, either alone or in the aggregate, could not reasonably be expected to have a Material Adverse Effect on WPIG.

(d)           Material Adverse Effect.  No Material Adverse Effect with respect to WPIG shall have occurred since the date of this Agreement.

(e)           Other Deliveries.  At Closing, WPIG shall have delivered to both CST and the Shareholders: (i) the stock certificate for the Shares, and (ii) such other documents or certificates as shall reasonably be required by CST and its counsel in order to consummate the transactions contemplated hereunder.


ARTICLE VII

SURVIVAL; INDEMNIFICATION

7.1           Survival.  All representations, warranties, agreements and covenants contained in or made pursuant to this Agreement, or any Exhibit or Schedule hereto or thereto or any certificate delivered at the Closing, shall survive (and not be affected by) the Closing, but all claims made by virtue of such representations, warranties, agreements and covenants shall be made under, and subject to the limitations set forth in this Article VII.

 
Exhibit 2.1 - Page 25

 


7.2           Shareholders Indemnification Obligation with Respect to Representations.  The Shareholders hereby indemnify and hold harmless, and agree to indemnify and hold harmless (from and after the Closing) WPIG and its respective directors, officers, shareholders, employees and agents (collectively, the "WPIG Indemnified Parties") against (i) any and all liabilities, obligations, losses, damages, claims, actions, Liens and deficiencies which exist, or which may be imposed on, incurred by or asserted against any one or more of the WPIG Indemnified Parties based upon, resulting from or arising out of, or as to which there was, any breach or inaccuracy of any representation or warranty contained in Article II of this Agreement by the Shareholders, or any statement, agreement or covenant made by the Shareholders in or pursuant to this Agreement, any Exhibit or Schedule hereto or thereto, or any certificate or document delivered by such Shareholders at the Closing, and (ii) any cost or expense (including reasonable attorneys' fees and court costs) incurred by the WPIG Indemnified Parties or any of them in connection with the foregoing (including, without limitation, any cost or expense incurred by the WPIG Indemnified Parties in enforcing their rights pursuant to this Section 7.2) (collectively, the "Damages" for purposes of this Section 7.2).

No WPIG Indemnified Party shall be required to make any claim or demand against any other Person prior to the making of any claim or demand for indemnification or at any other time.  The rights of the WPIG Indemnified Parties under this Section 7.2 are in addition to such other rights and remedies which they may have under this Agreement or otherwise.  The amount of any and all Damages suffered by WPIG Indemnified Parties under this Section 7.2 shall be recovered, and all claims of WPIG Indemnified Parties pursuant to this Section 7.2 shall be brought by WPIG on behalf of such WPIG Indemnified Parties.

Notwithstanding any other provision of this Agreement, except for any Misrepresentation Claim (as defined in this Section 7.2) with respect to which any Shareholder has Knowledge (as defined in this Section 7.2), no demand or claim for indemnification under this Section 7.2 may be made after the date six (6) months following the Effective Time.  No demand or claim for indemnification under this Section 7.2 for any Misrepresentation Claim may be made after the first anniversary of the Effective Time if any Shareholder had Knowledge (as hereinafter defined) with respect to such Misrepresentation Claim.

For purposes of this Agreement, (1) the term "Misrepresentation Claim" means a claim or demand for indemnification based upon, resulting from or arising out of any material breach or inaccuracy of a warranty or representation and such material breach or inaccuracy was the direct and primary cause of the Damages for which indemnification is sought; and (2) the term "Knowledge" means in respect of any Misrepresentation Claim, as of the Effective Time or at any time prior thereto, (a) actual Knowledge of the material breach or inaccuracy upon which such Misrepresentation Claim is based or (b) actual Knowledge of facts which would cause a reasonable person, having Knowledge and a full understanding of the terms of this Agreement, to be aware of or recognize the material breach or inaccuracy upon which the Misrepresentation Claim is based.

 
Exhibit 2.1 - Page 26

 


7.3           Indemnification Obligation with Respect to WPIG Representations.  WPIG hereby indemnifies and hold harmless, and agree to indemnify and hold harmless, the Shareholders, and their respective heirs, representatives and agents (collectively, the “Shareholder Indemnified Parties”) from and after the Closing, against (i) any and all liabilities, obligations, losses, damages, claims, actions, Liens and deficiencies which exist, or which may be imposed on, incurred by or asserted against any one or more of the Shareholder Indemnified Parties, based upon, resulting from or arising out of, or as to which there was, any breach or inaccuracy of any representation or warranty by WPIG contained in this Agreement, or any agreement or covenant made by WPIG in or pursuant to this Agreement, or in any Exhibit or Schedule hereto or thereto, or any certificate or document delivered by WPIG at the Closing hereof, whether caused by the actions or inactions WPIG following Closing), or any claim, cause of action or liability that arises based on acts or omissions that occur after Closing; and (ii) any cost or expense (including reasonable attorneys' fees and court costs) incurred by the Shareholder Indemnified Parties in connection with the foregoing (including, without limitation, any cost or expense incurred by the Shareholder Indemnified Parties in enforcing his rights pursuant to this Section 7.3) (collectively, the "Damages").

The Shareholder Indemnified Parties shall not be required to make any claim or demand against any other Person prior to the making of any claim or demand for indemnification or at any other time.  The rights of the Shareholder Indemnified Parties under this Section 7.3 are in addition to such other rights and remedies which they may have under this Agreement or otherwise.

Notwithstanding any other provision of this Agreement, except for any Misrepresentation Claim with respect to which WPIG had Knowledge or any claim, cause of action or liability that arises based on acts or omissions that occur after Closing, no demand or claim for indemnification under this Section 7.3 may be made after six (6) months following the Effective Time.  No demand or claim for indemnification under this Section 7.3 for any Misrepresentation Claim may be made after the first anniversary of the Effective Time if WPIG had Knowledge with respect to such Misrepresentation Claim.

7.4           Procedure for Indemnification Claims.

(a)           The WPIG Indemnified Parties and the Shareholder Indemnified Parties are referred to collectively herein as "Indemnified Parties", and the Persons from whom indemnification is sought pursuant to this Article VII are referred to herein as "Indemnifying Parties."

(b)           If at any time an Indemnified Party determines to assert a right to indemnification hereunder, the Indemnified Party shall give to the Indemnifying Party written notice describing the matter for which indemnification is sought in reasonable detail.  In the event that a demand or claim for indemnification is made hereunder with respect to a matter the amount or extent of which is not yet known or certain, the notice of demand for indemnification shall so state, and, where practicable, shall include an estimate of the amount of the matter.  The failure of an Indemnified Party to give notice of any matter to the Indemnifying Party shall not relieve the Indemnifying Party of any liability that the Indemnifying Party may have to any Indemnified Party.

 
Exhibit 2.1 - Page 27

 



(c)           Within 15 days after receipt of the notice referred to in clause (b) above, the Indemnifying Party from whom indemnification is sought shall (i) if true, acknowledge in writing his responsibility for all or part of such matter, and shall pay or otherwise satisfy the portion of such matter as to which responsibility is acknowledged or take such other action as is reasonably satisfactory to the Indemnified Party to resolve any such matter that involves anyone not a party hereto, or (ii) give written notice to the Indemnified Party of his intention to dispute or contest all or part of such responsibility.  Upon delivery of such notice of intention to contest, the parties shall negotiate in good faith to resolve as promptly as possible any dispute as to responsibility for, or the amount of, any such matter.  Failure to respond to a notice claiming indemnification shall be deemed a denial of responsibility therefore.

(d)           In the event that the Indemnified Party is required to expend any amount in enforcing his, her or its rights of indemnification hereunder, the Indemnifying Parties will, jointly and severally, promptly upon request, pay such amounts to the Indemnified Party if indemnification is required to be made hereunder.

(e)           Each Indemnifying Party shall have the right to employ separate counsel in any action or claim which is brought against any Indemnified Party in respect of which indemnity may be sought from it, and to participate in the defense of such action or claim, if such Indemnifying Party confirms in writing its responsibility for such action or claim; provided, however, that (i) the Indemnified Party or Parties shall retain control of such action or claim and (ii) the fees and expenses of such separate counsel shall be at the expense of the Indemnifying Party.


ARTICLE VIII

TERMINATION, AMENDMENT AND WAIVER

8.1           Termination.  This Agreement may be terminated at any time prior to the Closing:

(a)           by mutual written agreement of WPIG and the Shareholders;

(b)           by either WPIG or the Shareholders if the Transaction shall not have been consummated by December 31, 2009 (“Closing Deadline”) for any reason; provided, however, that the right to terminate this Agreement under this Section 8.1(b) shall not be available to any party whose action or failure to act has been a principal cause of or resulted in the failure of the Transaction to occur on or before such date and such action or failure to act constitutes a breach of this Agreement, and, provided further, the Closing Deadline shall be further extended by any cure period in effect under Section 8.1(d) or (e) below;

(c)           by either WPIG or the Shareholders if a Governmental Entity shall have issued an order, decree or ruling or taken any other action, in any case having the effect of permanently restraining, enjoining or otherwise prohibiting the Transaction, which order, decree, ruling or other action is final and nonappealable;

 
Exhibit 2.1 - Page 28

 


(d)           by the Shareholders, upon a material breach of any representation, warranty, covenant or agreement on the part of WPIG set forth in this Agreement, or if any representation or warranty of WPIG shall have become materially untrue, in either case such that the conditions set forth in Section 6.2(a) or Section 6.2(b) would not be satisfied as of the time of such breach or as of the time such representation or warranty shall have become untrue, provided, that if such inaccuracy in WPIG's representations and warranties or breach by WPIG is curable by WPIG prior to the Effective Time, then the Shareholders may not terminate this Agreement under this Section 8.1(d) for thirty (30) days after delivery of written notice from Shareholders to WPIG of such breach, provided WPIG continues to exercise commercially reasonable efforts to cure such breach (it being understood that Shareholders may not terminate this Agreement pursuant to this Section 8.1(d) if they shall have also materially breached this Agreement or if such breach by WPIG is cured during such thirty (30)-day period); or

(e)           by WPIG, upon a material breach of any representation, warranty, covenant or agreement on the part of the Shareholders set forth in this Agreement, or if any representation or warranty of the Shareholders shall have become materially untrue, in either case such that the conditions set forth in Section 6.3(a) or Section 6.3(b) would not be satisfied as of the time of such breach or as of the time such representation or warranty shall have become untrue, provided, that if such inaccuracy in the Shareholder's representations and warranties or breach by the Shareholders is curable by the Shareholders prior to the Effective Time, then WPIG may not terminate this Agreement under this Section 8.1(e) for thirty (30) days after delivery of written notice from WPIG to the Shareholders of such breach, provided the Shareholders continue to exercise commercially reasonable efforts to cure such breach (it being understood that WPIG may not terminate this Agreement pursuant to this Section 8.1(e) if it shall have materially breached this Agreement or if such breach by the Shareholders is cured during such thirty (30)-day period).

8.2           Notice of Termination; Effect of Termination.  Any termination of this Agreement under Section 8.1 above will be effective immediately upon (or, if the termination is pursuant to Section 8.1(d) or Section 8.1(e) and the proviso therein is applicable, thirty (30) days after the party in breach fails to cure the breach) the delivery of written notice of the terminating party to the other parties hereto.  In the event of the termination of this Agreement as provided in Section 8.1, this Agreement shall be of no further force or effect and the Transaction shall be abandoned, except (i) as set forth in this Section 8.2, Section 8.3, Section 5.3(a) (Confidentiality) and Article IX (General Provisions), each of which shall survive the termination of this Agreement, and (ii) nothing herein shall relieve any party from liability for any intentional or willful breach of this Agreement.

8.3           Fees and Expenses.  All fees and expenses incurred in connection with this Agreement and the transactions contemplated hereby shall be paid by the party incurring such expenses whether or not the Transaction is consummated.

8.4           Amendment.  This Agreement may be amended by the parties hereto at any time by execution of an instrument in writing signed on behalf of each of WPIG and the Shareholders.

 
Exhibit 2.1 - Page 29

 


8.5           Extension; Waiver.  At any time prior to the Closing, any party hereto may, to the extent legally allowed, (i) extend the time for the performance of any of the obligations or other acts of the other parties hereto, (ii) waive any inaccuracies in the representations and warranties made to such party contained herein or in any document delivered pursuant hereto, and (iii) waive compliance with any of the agreements or conditions for the benefit of such party contained herein.  Any agreement on the part of a party hereto to any such extension or waiver shall be valid only if set forth in an instrument in writing signed on behalf of such party.  Delay in exercising any right under this Agreement shall not constitute a waiver of such right.


ARTICLE IX

GENERAL PROVISIONS

9.1           Notices.  All notices and other communications hereunder shall be in writing and shall be deemed given if delivered personally or by commercial delivery service, or sent via telecopy (receipt confirmed) to the parties at the addresses indicated above herein, or such other address as a party may so designate in the future, in writing.

 
9.2           Interpretation.

(a)           When a reference is made in this Agreement to Exhibits or Schedules, such reference shall be to an Exhibit or Schedule to this Agreement unless otherwise indicated.  When a reference is made in this Agreement to Sections, such reference shall be to a Section of this Agreement.  Unless otherwise indicated the words "include," "includes" and "including" when used herein shall be deemed in each case to be followed by the words "without limitation."  The headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement.

(b)           For purposes of this Agreement, the term "Material Adverse Effect" when used in connection with an entity means any change, event, violation, inaccuracy, circumstance or effect, individually or when aggregated with other changes, events, violations, inaccuracies, circumstances or effects, that is materially adverse to the business, assets (including intangible assets), revenues, financial condition or results of operations of such entity, if any, taken as a whole, it being understood that neither of the following alone or in combination shall be deemed, in and of itself, to constitute a Material Adverse Effect:  (a) changes attributable to the public announcement or pendency of the transactions contemplated hereby, (b) changes in general national or regional economic conditions, or (c) changes affecting the industry generally in which CST or WPIG operate.

(c)           For purposes of this Agreement, the term "Person" shall mean any individual, corporation (including any non-profit corporation), general partnership, limited partnership, limited liability partnership, joint venture, estate, trust, company (including any limited liability company or joint stock company), firm or other enterprise, association, organization, entity or Governmental Entity.

 
Exhibit 2.1 - Page 30

 


9.3           Counterparts Facsimile Execution.  For purposes of this Agreement, a document (or signature page thereto) signed and transmitted by electronic transmission, facsimile machine or telecopier is to be treated as an original document.  The signature of any party thereon, for purposes hereof, is to be considered as an original signature, and the document transmitted is to be considered to have the same binding effect as an original signature on an original document.  At the request of any party, an electronic, facsimile or telecopy document is to be re-executed in original form by the parties who executed the electronic, facsimile or telecopy document.  No party may raise the use of an electronic transmission, facsimile machine or telecopier machine as a defense to the enforcement of the Agreement or any amendment or other document executed in compliance with this Section. This Agreement may be executed in separate counterparts, each of which so executed and delivered shall constitute an original, but all such counterparts shall together constitute one and the same instrument.  Each person signing below represent that he, she or it has read this Agreement in its entirety, understands its terms, and on behalf of the party indicated below by his or her or its name agrees that such party shall be bound by those terms.

9.4           Entire Agreement; Third Party Beneficiaries.  This Agreement and the documents and instruments and other agreements among the parties hereto as contemplated by or referred to herein, including the Schedules hereto constitute the entire agreement among the parties with respect to the subject matter hereof and supersede all prior agreements and understandings, both written and oral, among the parties with respect to the subject matter hereof.

9.5           Severability.  In the event that any provision of this Agreement, or the application thereof, becomes or is declared by a court of competent jurisdiction to be illegal, void or unenforceable, the remainder of this Agreement will continue in full force and effect and the application of such provision to other persons or circumstances will be interpreted so as reasonably to effect the intent of the parties hereto.  The parties further agree to replace such void or unenforceable provision of this Agreement with a valid and enforceable provision that will achieve, to the extent possible, the economic, business and other purposes of such void or unenforceable provision.

9.6           Other Remedies; Specific Performance.  Except as otherwise provided herein, any and all remedies herein expressly conferred upon a party will be deemed cumulative with and not exclusive of any other remedy conferred hereby, or by law or equity upon such party, and the exercise by a party of any one remedy will not preclude the exercise of any other remedy.  The parties hereto agree that irreparable damage would occur in the event that any of the provisions of this Agreement were not performed in accordance with their specific terms or were otherwise breached.  It is accordingly agreed that the parties shall be entitled to seek an injunction or injunctions to prevent breaches of this Agreement and to enforce specifically the terms and provisions hereof in any court of the United States or any state having jurisdiction, this being in addition to any other remedy to which they are entitled at law or in equity.

9.7           Governing Law.  This Agreement shall be governed by and construed in accordance with the laws of the State of Colorado, regardless of the laws that might otherwise govern under applicable principles of conflicts of law thereof.

 
Exhibit 2.1 - Page 31

 


9.8           Rules of Construction.  The parties hereto agree that they have been represented by counsel during the negotiation and execution of this Agreement and, therefore, waive the application of any law, regulation, holding or rule of construction providing that ambiguities in an agreement or other document will be construed against the party drafting such agreement or document.

9.9           Assignment.  No party may assign either this Agreement or any of his, her or its rights, interests, or obligations hereunder without the prior written approval of the other parties. Subject to the first sentence of this Section 9.9, this Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective heirs, successors and permitted assigns.

9.10           Attorneys Fees.  The prevailing party in any litigation, arbitration, insolvency or other proceeding (“Proceeding”) relating to the enforcement or interpretation of this Agreement may recover from the unsuccessful party all costs, expenses, and attorney’s fees (including expert witness and other consultants’ fees and costs) relating to or arising out of (a) the Proceeding (whether or not the Proceeding proceeds to judgment), and (b) any post-judgment or post-award proceeding including, without limitation, one to enforce or collect any judgment or award resulting from the Proceeding.  All such judgments and awards shall contain a specific provision for the recovery of all such subsequently incurred costs, expenses, and attorney’s fees.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the date first written above.

 
WHISTLEPIG ENTERPRISES, INC.
   
   
By:    
/s/ Jeanie Clifford
 
Jeanie Clifford
 
President and Chief Executive Officer
   
   
CST OIL & GAS CORPORATION
   
   
By:
/s/ Christine T. Tedesco
 
Christine T. Tedesco
 
President and Chief Executive Officer
   
   
CST OIL & GAS CORPORATION SHAREHOLDERS:
   
 
/s/ Steven A. Tedesco
 
Steven A. Tedesco
   
 
/s/ Christine T. Tedesco
 
Christine T. Tedesco


 
Exhibit 2.1 - Page 32

 


Schedule 1.3

Steven A. Tedesco      50%
Christine T. Tedesco    50%

Schedule 2.5(a)

None

Schedule 2.5(b)

None

Schedule 2.12

None

Schedule 2.14

None

Schedule 2.15

None

Schedule 2.17

None

Schedule 2.18

Attached hereto

Schedule 2.19

        In 2008 and the six months ended June 30, 2009 CST paid a company related by common control approximately $4,500 and $14,500 for general and administrative expenses. At December 31, 2008 and June 30, 2009 CST owed $40,000 to an officer for due on demand, non-interest bearing working capital advances. See Schedule 2.18 above.

Schedule 3.1

None

Schedule 3.4

None
 
Exhibit 2.1 - Page 33
 
 


 
 
EX-10.1 3 whistlepig8kx101_9302009.htm EXHIBIT 10.1 whistlepig8kx101_9302009.htm
 
Exhibit 10.1
 
 
EQUIPMENT LEASE LONG TERM

LESSOR: NAME AND ADDRESS
LESSEE: NAME AND ADDRESS
Atoka Coal Labs
CST 0il and Gas Corporation
7060 B South Tucson Way
7060 B South Tucson Way
Centennial, Co 80112
Centennial, CC 80112
 

 
    EQUIPMENT LEASED:
     
QUANTITY
MANUPACTURER
MODEL
SERIAL#
1
Smeal
6T
 

EQUIPMENT TO BE LOCATED AT:

Kansas various

Price:

TOTALS                  Perpetual

 
PAYMENTTERMS. 1st- Of Month.         payments of $2,500.00 per month


1.      LEASE. Lessor hereby leases to Lessee and Lessee hereby hires and rents from the Lessor the personal property described above (the “equipment”).
2.      TERM. The initial term of this lease commences upon the delivery of the equipment to the Lessee, and ends upon the expiration of the number of monthly payments. After the initial term, this lease shall be automatically renewed on a month-to..month basis at the renewal rental specified above~ payable in advance unJess the equipment is returned to the Lessor, and the Lessor is so notified of the return.
3.      RENT. Lessee agrres to pay during the initial term of this lease a total rent equal to the amount of each rent payment as specified above multiplied by the number of such payments. The first payment and security deposit are due upon execution of this lease by Lessot Subsequent rental payments shall be made on the first day of each calendar month after the delivery of the equipment All payments shall be made to the Lessor as the address set forth above.
4.      SECURITY DEPOSIT. Lessee shall pay a security deposit in the amount of $ -0- to the Lessor to be held by Lessor. Lessor may, but shall not be obligated to, apply the security deposit securing the default of the Lessee hereunder. If the security deposit is paid to cure default, the Lessee shall promptly restore the security deposit to the full amount specified above. Upon termination of this lease, Lessor shall return to the Lessee any remaining balance of the security deposit, provided the Lessee has fulfilled all of the terms and conditions hereof.
5.      LOCATION.xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
6.     NOTICE OF DEFECTS. Unless the Lessee gives the Lessor written notice of any defect in the equipment within ten (10) days after receipt thereof, it shall be presumed, between Lessor and Lessee, that the item was delivered in good repair; and that Lessee accepts the item described above.
7.      USE AND REPAIR Lessee shall use the equipment in a careful manner; and shall comply with all laws relating to its possession, use and maintenance. Lessee shall keep the equipment in good repair, and furnish all parts required to repair same. Lessee shall not make any alterations or additi~ns to the equjpmeig without the Lessor’s prior written consent. Any additions or improvements shall belong to the Lessor.
8.     SURRENDER.. Upon termination of this lease, Lessee, at the Lessee’s expense, shall return the equipment in good repair, ordinary wear and tear excepted, to the Lessor at the Lessor’s address, or such other place as Lessor may specify within the same metropolitan area as Lessor’s offices.
9.      LOSS OR DAMAGE. Lessee shall bear the entire risk of loss, theft, damage or other destruction to the equipment, and shall insure the same, and no loss to or of the equipment shall relieve the Lessee of the obligation to pay rent hereunder. In the event of damage to any item of equipment, Lessee shall immediately repair the same. If any item is lost, stolen or destroyed, Lessee, at Lessor’s option, shall either replace the same with like equipment in good repair or pay to Lessor the balance of rent for the initial term of the lease.
 
 
 
 

 
 

 
10.             INSURANCE. Lessee shall provide and maintain insurance against all loss, damage or destruction of the equipment in an amount of not less than the total rent payable hereunder; and shall name the Lessor as an additional insured. Lessee shall also provide and maintain a general liability policy naming the Lessor as an additional insured. Each such policy shall expressly provide that the policy may not be cancelled or invalidated without notice to the Lessor. If the Lessee fails to procure or to maintain said insurance, the Lessor shall have the right to do so and to pay the charges therefor, and the Lessee shall repay the amount thereof with the next payment of rent.
11.             LIENS AND TAXES. Lessee shall keep the equipment free and clear of all liens and encumbrances, and shall pay all state and local taxes which may now or hereafter be imposed upon the ownership, the leasing, the rental, or possession of the equipment, excluding any income taxes imposed on the Lessor.
12.             INDEMNITY. Lessee shall indemnity Lessor against and hold the Lessor harmless from all claims, actions, proceedings, expenses, and liabilities arising in connection with the equipment
13.              ASSIGNMENT. Without the Lessor’s prior written consent, Lessee shall not assign, transfer or hypothecate any interest in this lease, nor sublet or lend the equipment to any other person. Lessor may encumber this lease or the equipment, in which case, the lease may be assigned to the mortgagor without the Lessee’s consent Lessee shall recognize the assignment or encumbrance, and shall assert no defense against the encumbmancer which the Lessee may have against the Lesson
14.              LATE CHARGES. In the event the Lessee fails to pay the rent reserved hereunder, and such rent remains unpaid for a period of ten (TO) days after notice. Lessee agrees to pay the Lessor a late charge of five percent (5%) for each month the rent shall be delinquent
15.              DEFAULT. If the Lessee fails to pay the rent herein reserved or to perform any other provisions hereof within ten (10) days after notice, or if any proceeding in bankruptcy or insolvency shall be commenced by or against the Lessee, or if the Lessee makes any assignment for the benefit of its creditors, the Lessor shall have the right, but riot the obligation, to exercise any one or more of the following remedies:
(a)      to sue for and recover all rents and other amounts then due and thereafter accruing under the lease:
(b)      to take possession of the equipment without notice or court order
(c)      to sell all or any part of the equipment at public or private sale for cash or credit and recover from lessee the cost of taking possession, storing, repairing, and selling said equipment:
(d)      to terminate this lease as to any or all items of equipment and to recover from the Lessee the excess of the balance of the rent over the fair marker value of the equipment;
(e)      to pursue any other remedies available to the Lessor.
16.              NOTICE, Any written notice required under the terms of this lease shall be deemed given by mailing itto the party at the address set forth above, certified mail, return receipt requested. Notice or demand so mailed shall be deemed effective when deposited in the United States Mail, duly addressed, and with proper postage.
17.              CHOICE OF LAW. This lease shall be construed in accordance with the laws of the State of Colorado.
I8. ATTORNEY’S FEES. In the event of a dispute between the Lessee and the Lessor arising under the terms of this lease, the prevailing party shall be entitled to the recovery of attorney’s fees.

/s/ Steven A. Tedesco
/s/ Christine Tedesco
LESSOR
LESSE
   
Steven A. Tedesco, Atolca Coal Labs
 
Date:           September 4, 2008
Date:           September 4. 2008

Lessee acknowledges receipt of the equipment on fourth.day of September, 2009

/s/ Christine Tedesco
LESSE

 

 


EX-23.1 4 whistlepig8kx231_9302009.htm EXHIBIT 23.1 whistlepig8kx231_9302009.htm
 
Exhibit 23.1


Ronald R. Chadwick, P.C.
Certified Public Accountant
2851 South Parker Road
Suite 720
Aurora, Colorado  80014
Phone (303)306-1967
Fax (303)306-1944




CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

 

 
I consent to the use in the 8-K filing of Whistlepig Enterprises, Inc. of my Report of Independent Registered Public Accounting Firm, dated September 17, 2009, on the balance sheets of CST Oil and Gas Corporation as at December 31, 2007 and 2008, and the related statements of operations, stockholders' equity, and cash flows for the years then ended.


   
Aurora, Colorado
/s/ RONALD R. CHADWICK, P.C.
September 23, 2009
Ronald R. Chadwick, P.C.
 
 
 

 
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