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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">UNITED
STATES</font></div>
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AND EXCHANGE COMMISSION</font></div>
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DC 20549</font></div>
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8-K</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">CURRENT
REPORT</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
to Section 13 OR 15(d) of the Securities Exchange Act of 1934</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Date of
Report (Date of earliest event reported)&#160; June 16,
2009</font></font></font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman; TEXT-DECORATION: underline"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; TEXT-DECORATION: underline"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SCOUT
EXPLORATION, INC.</font></font></font></font></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Exact
name of registrant as specified in its chapter)</font></div>
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                        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman; TEXT-DECORATION: underline"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman; TEXT-DECORATION: underline"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Nevada</font></font></font></div>
                        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">(State
      or other jurisdiction</font></div>
                        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">of
      incorporation</font></div>
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      Number)</font></div>
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                        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">(IRS
      Employer</font></div>
                        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Identification
      No.)</font></div>
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                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">15707
      Rockfield Blvd., Suite 101</font></div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman; TEXT-DECORATION: underline"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman; TEXT-DECORATION: underline"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Irvine,
      California</font></font></font></div>
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telephone number, including area code</font></div>
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name or former address, if changed since last report)</font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: left" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">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:</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline;" face="Wingdings">o</font>&#160;&#160;&#160;&#160;&#160;Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline;" face="Wingdings">o</font>&#160;&#160;&#160;&#160;&#160;Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline;" face="Wingdings">o</font>&#160;&#160;&#160;&#160;&#160;Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline;" face="Wingdings">o</font>&#160;&#160;&#160;&#160;&#160;Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CRF
240.13e-4(c))</font></div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div>&#160;</div>
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</font></div>
      </div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">ITEM
1.02&#160;&#160;&#160;&#160; TERMINATION OF MATERIAL DEFINITIVE
AGREEMENT</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On June
16, 2009, we entered into a Settlement, Share Sale &amp; Release Agreement with
(i) Brian Mahood (&#8220;Mahood&#8221;); (ii) Kerrisdale Resources Ltd., an Alberta
corporation (&#8220;Kerrisdale Resources&#8221;); and (iii) Kerrisdale Consulting Inc., an
Alberta corporation (&#8220;Kerrisdale Consulting&#8221;) (the &#8220;Release
Agreement&#8221;).&#160;&#160;The purpose of the Release Agreement is to resolve and
settle any and all differences resulting from that certain written (i) Share
Purchase Agreement by and among Mahood, Kerrisdale Resources, and us, which has
an affective date of January 1, 2008 (the &#8220;Share Purchase Agreement&#8221;); (ii)
General Security Agreement by and among Kerrisdale Resources and Mahood, which
has an effective date of January 1, 2008 (the &#8220;Security Agreement&#8221;); (iii)
Management Agreement by and among Kerrisdale Consulting, which has an effective
date of June 1, 2008 (the &#8220;Management Agreement&#8221;); and (iv) Rental Agreement
entered into by and among Kerrisdale Resources and Kerrisdale Consulting dated
June 18, 2008 (the &#8220;Rental Agreement&#8221;).</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On or
about April 15, 2009, we were notified by Mahood that, in the opinion of Mahood,
we were in default of the Purchase Agreement and the Security
Agreement.&#160;&#160;Additionally, on or about April 15, 2009, based upon that
alleged default, Mahood demanded payment from us and Kerrisdale Resources of
$325,000.00 CDN plus (i) interest from and accruing after April 1, 2009, and
(ii) collection and legal fees and expenses, which total $328,062.00
CDN.&#160;&#160;We informed Mr. Mahood that we deny and reject the claims of
default regarding the payment of those funds.&#160;&#160;We have been unable to
perform certain obligations specified by the provisions of the Purchase
Agreement, because the cash from the operations of Kerrisdale Resources is
insufficient to pay the amounts payable to Mahood pursuant to the Purchase
Agreement.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
to the provisions of the Release Agreement, the Purchase Agreement, Security
Agreement, Management Agreement, and Rental Agreement, and each of them, are
terminated.&#160;&#160;Additionally, our obligations and the obligations of
Kerrisdale Resources and Mahood pursuant to the provisions of those agreements
are considered discharged and settled fully, completely, and
absolutely.&#160;&#160;Additionally, pursuant to the provisions of the Release
Agreement, each party thereto releases each of the other parties thereto from
any and all liability and obligations created pursuant to the provisions of
those agreements, and each of them.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We have
incurred no early termination penalties in connection with the termination of
those agreements.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
to the Release Agreement, we agreed to transfer to Mahood those 100 shares of
class A voting shares of Kerrisdale Resources that we purchased pursuant to the
provisions of the Purchase Agreement, in exchange for the payment by Mahood of
$1.00.&#160;&#160;Additionally, pursuant to the provisions of the Release
Agreement, Jason Walsh, our secretary, agreed to resign as a director and as the
president, secretary and treasurer of Kerrisdale
Resources.&#160;&#160;Additionally, pursuant to the Release Agreement, any and
all other persons that we caused to become officers or directors of Kerrisdale
Resources have agreed to resign as those officers and directors.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
effective date of the Release Agreement for accounting purposes is April 1,
2009, and the Closing Date of the Release Agreement is June 30,
2009.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">A copy of
the Release Agreement is attached to this Report as Exhibit 10.1.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">ITEM
8.01&#160;&#160;&#160;&#160; OTHER EVENTS</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On June
2, 2009, we entered into a written Letter of Intent with Water Wise
Environmental Solutions Inc., pursuant to which we specify our desire to acquire
all of Water Wise&#8217;s right, title, and interest to the (i) &#8220;peon&#8221; and (ii) &#8220;lawn
caddy&#8221; water recovery and irrigation systems, in exchange for 4,000,000 shares
of our common stock.&#160;&#160;If the transaction contemplated by that letter
of intent occurs, the first 1,000,000 shares of that common stock shall be
issued to Water Wise when we can arrange financing of $250,000.00 CDN, which
shall be used to develop working prototypes of the (i) &#8220;peon&#8221; and the (ii)
&#8220;plant caddy&#8221; products and market those products on a commercial
basis.&#160;&#160;We anticipate that such financing shall occur no later than
September 30, 2009.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Additionally,
if that transaction occurs, the second 1,000,000 shares of that common stock
shall be issued to Water Wise when Water Wise has filed patents regarding the
(i) &#8220;peon&#8221; and (ii) &#8220;plant caddy&#8221; products and created a working prototype of
the &#8220;peon&#8221; product. Additionally, if that transaction occurs, we shall issue
another 1,000,000 shares of that common stock to Water Wise when Water Wise has
produced a working prototype of the &#8220;lawn </font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">caddy&#8221;
product.&#160;&#160;Additionally, if that transaction occurs, the remaining
1,000,000 shares of that common stock shall be issued to Water Wise when Water
Wise commences commercial production and sales of either the &#8220;peon&#8221; or &#8220;lawn
caddy&#8221; product.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">A copy of
that Letter of Intent is attached to this Report marked as Exhibit
99.1.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">ITEM
9.01&#160;&#160;&#160;&#160; FINANCIAL STATEMENTS AND EXHIBITS</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div>
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      </font></font></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman; TEXT-DECORATION: underline"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman; TEXT-DECORATION: underline"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">No.</font></font></font></font></font></td>
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      Agreement effective as of April 22, 2009, by and among Brian Mahood; Scout
      Exploration, Inc.; Kerrisdale Consulting Inc.; and Kerrisdale Resources
      Ltd.</font></td>
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      Water Wise Environmental Solutions
Inc.</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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July 10, 2009</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SCOUT
EXPLORATION, INC.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">By:<font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;&#160;&#160;&#160;/s/
Jason
Walsh&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font></font></div>
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Jason Walsh</font></div>
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Secretary</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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                  </td>
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      Agreement effective as of April 22, 2009, by and among Brian Mahood; Scout
      Exploration, Inc.; Kerrisdale Consulting Inc.; and Kerrisdale Resources
      Ltd.</font></td>
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Inc.</font></font></td>
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scout8k061609.htm
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
DC 20549
FORM
8-K
CURRENT
REPORT
Pursuant
to Section 13 OR 15(d) of the Securities Exchange Act of 1934
Date of
Report (Date of earliest event reported)  June 16,
2009
SCOUT
EXPLORATION, INC.
(Exact
name of registrant as specified in its chapter)
Nevada
(State
      or other jurisdiction
of
      incorporation
0-52280
(Commission
File
      Number)
98-0504670
(IRS
      Employer
Identification
      No.)
15707
      Rockfield Blvd., Suite 101
Irvine,
      California
(Address
      of principal executive offices)
92618
(Zip
      Code)
949.265.7717
Registrant's
telephone number, including area code
N/A
(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:
o
Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
o
Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
o
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
o
Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CRF
240.13e-4(c))
1
ITEM
1.02     TERMINATION OF MATERIAL DEFINITIVE
AGREEMENT
On June
16, 2009, we entered into a Settlement, Share Sale & Release Agreement with
(i) Brian Mahood ("Mahood"); (ii) Kerrisdale Resources Ltd., an Alberta
corporation ("Kerrisdale Resources"); and (iii) Kerrisdale Consulting Inc., an
Alberta corporation ("Kerrisdale Consulting") (the "Release
Agreement").  The purpose of the Release Agreement is to resolve and
settle any and all differences resulting from that certain written (i) Share
Purchase Agreement by and among Mahood, Kerrisdale Resources, and us, which has
an affective date of January 1, 2008 (the "Share Purchase Agreement"); (ii)
General Security Agreement by and among Kerrisdale Resources and Mahood, which
has an effective date of January 1, 2008 (the "Security Agreement"); (iii)
Management Agreement by and among Kerrisdale Consulting, which has an effective
date of June 1, 2008 (the "Management Agreement"); and (iv) Rental Agreement
entered into by and among Kerrisdale Resources and Kerrisdale Consulting dated
June 18, 2008 (the "Rental Agreement").
On or
about April 15, 2009, we were notified by Mahood that, in the opinion of Mahood,
we were in default of the Purchase Agreement and the Security
Agreement.  Additionally, on or about April 15, 2009, based upon that
alleged default, Mahood demanded payment from us and Kerrisdale Resources of
$325,000.00 CDN plus (i) interest from and accruing after April 1, 2009, and
(ii) collection and legal fees and expenses, which total $328,062.00
CDN.  We informed Mr. Mahood that we deny and reject the claims of
default regarding the payment of those funds.  We have been unable to
perform certain obligations specified by the provisions of the Purchase
Agreement, because the cash from the operations of Kerrisdale Resources is
insufficient to pay the amounts payable to Mahood pursuant to the Purchase
Agreement.
Pursuant
to the provisions of the Release Agreement, the Purchase Agreement, Security
Agreement, Management Agreement, and Rental Agreement, and each of them, are
terminated.  Additionally, our obligations and the obligations of
Kerrisdale Resources and Mahood pursuant to the provisions of those agreements
are considered discharged and settled fully, completely, and
absolutely.  Additionally, pursuant to the provisions of the Release
Agreement, each party thereto releases each of the other parties thereto from
any and all liability and obligations created pursuant to the provisions of
those agreements, and each of them.
We have
incurred no early termination penalties in connection with the termination of
those agreements.
Pursuant
to the Release Agreement, we agreed to transfer to Mahood those 100 shares of
class A voting shares of Kerrisdale Resources that we purchased pursuant to the
provisions of the Purchase Agreement, in exchange for the payment by Mahood of
$1.00.  Additionally, pursuant to the provisions of the Release
Agreement, Jason Walsh, our secretary, agreed to resign as a director and as the
president, secretary and treasurer of Kerrisdale
Resources.  Additionally, pursuant to the Release Agreement, any and
all other persons that we caused to become officers or directors of Kerrisdale
Resources have agreed to resign as those officers and directors.
The
effective date of the Release Agreement for accounting purposes is April 1,
2009, and the Closing Date of the Release Agreement is June 30,
2009.
A copy of
the Release Agreement is attached to this Report as Exhibit 10.1.
ITEM
8.01     OTHER EVENTS
On June
2, 2009, we entered into a written Letter of Intent with Water Wise
Environmental Solutions Inc., pursuant to which we specify our desire to acquire
all of Water Wise's right, title, and interest to the (i) "peon" and (ii) "lawn
caddy" water recovery and irrigation systems, in exchange for 4,000,000 shares
of our common stock.  If the transaction contemplated by that letter
of intent occurs, the first 1,000,000 shares of that common stock shall be
issued to Water Wise when we can arrange financing of $250,000.00 CDN, which
shall be used to develop working prototypes of the (i) "peon" and the (ii)
"plant caddy" products and market those products on a commercial
basis.  We anticipate that such financing shall occur no later than
September 30, 2009.
Additionally,
if that transaction occurs, the second 1,000,000 shares of that common stock
shall be issued to Water Wise when Water Wise has filed patents regarding the
(i) "peon" and (ii) "plant caddy" products and created a working prototype of
the "peon" product. Additionally, if that transaction occurs, we shall issue
another 1,000,000 shares of that common stock to Water Wise when Water Wise has
produced a working prototype of the "lawn
2
caddy"
product.  Additionally, if that transaction occurs, the remaining
1,000,000 shares of that common stock shall be issued to Water Wise when Water
Wise commences commercial production and sales of either the "peon" or "lawn
caddy" product.
A copy of
that Letter of Intent is attached to this Report marked as Exhibit
99.1.
ITEM
9.01     FINANCIAL STATEMENTS AND EXHIBITS
Exhibit
No.
Description
Exhibit
      10.1
Release
      Agreement effective as of April 22, 2009, by and among Brian Mahood; Scout
      Exploration, Inc.; Kerrisdale Consulting Inc.; and Kerrisdale Resources
      Ltd.
Exhibit
99.1
Letter
      of Intent dated June 2, 2009, by and among Scout Exploration, Inc. and
      Water Wise Environmental Solutions
Inc.
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
Dated: 
July 10, 2009
SCOUT
EXPLORATION, INC.
By:
/s/
Jason
Walsh
Name:
Jason Walsh
Title:  
Secretary
3
EXHIBIT
INDEX
Number
Exhibit
Exhibit
      10.1
Release
      Agreement effective as of April 22, 2009, by and among Brian Mahood; Scout
      Exploration, Inc.; Kerrisdale Consulting Inc.; and Kerrisdale Resources
      Ltd.
Exhibit
99.1
Letter
      of Intent dated June 2, 2009, by and among Scout Exploration, Inc. and
      Water Wise Environmental Solutions
Inc.
4