SEPARATION AGREEMENT

Exhibit 10.5

SEPARATION AGREEMENT

This Separation Agreement (“Agreement”) is made and entered into as of November 4, 2009 by and between Daniel Kelly, an individual (“Kelly”), and HealthSport, Inc., a Delaware corporation (“HealthSport”), with respect to the following facts:

A. Kelly has served as an independent consultant for HealthSport pursuant to an independent consultant agreement with HealthSport (the “Consultant Agreement”). Kelly has served as a director of the HealthSport, and in the past, also served as the HealthSport’s chief executive officer. Kelly is not an officer of HealthSport as of the date of this Agreement.

B. Kelly now desires to terminate the Consultant Agreement and Kelly’s position of independent consultant with the HealthSport.

C. Kelly and HealthSport now desire to release one another from certain claims that they may have against one another arising out of Kelly’s Consultant Agreement with HealthSport, with Kelly’s past employment with HealthSport and otherwise prior to the date of this Agreement.

NOW, THEREFORE, in consideration of the mutual covenants contained in this Agreement, and intending to be legally bound, HealthSport and Kelly agree as follows:

Section 1. Resignation. Kelly hereby resigns as an independent consultant of HealthSport effective as of the date of this Agreement. Kelly shall remain a director of the HealthSport. The Consultant Agreement is terminated as of the date of this Agreement. Kelly shall not be an employee of HealthSport. Kelly will return to HealthSport all property owned by HealthSport, including all originals and copies of the following, whether in Kelly’s possession or previously removed by Kelly from the HealthSport’s premises and still existing, and whether recorded on paper, computer disk, other computer readable-form, or any other medium: all computers, office equipment, company assets, lists, correspondence, books, letters, records, financial data, product information, formulas, sales information and other materials and other materials and writing owned by HealthSport or used by it in connection with the conduct of its business.

Section 2. Separation Payment. As separation compensation, HealthSport shall, subject to Kelly’s satisfaction of any withholding or other taxes that may be due:

(i) Pay to Kelly the sum of $45,000 on or before December 1, 2009 and $10,000 on the first day of each of the next nine (9) months beginning January 1, 2010 for an aggregate payment of $135,000; and

(ii) Issue 100,000 unregistered shares of common stock of HealthSport to Kelly on or before December 1, 2009.

Kelly shall be solely responsible for payment of any and all applicable taxes associated with this Agreement.

Section 3. Section 409A Compliance. This Agreement is intended to comply with the requirements of section 409A of the Internal Revenue Code (“409A”). In the event this Agreement or any benefit paid to Kelly hereunder is deemed to be subject to 409A, Kelly hereby consents to the Company adopting such conforming amendments as the Company deems necessary, in its reasonable discretion, to comply with 409A. If upon Kelly’s “separation from service” within the meaning of 409A, he is then a “specified employee” (as defined in 409A), then solely to the extent necessary to comply with 409A and avoid the imposition of taxes under 409A, the Company shall defer payment of “nonqualified deferred compensation” subject to 409A payable as a result of and within six (6) months following such separation from service until the earlier of (i) the first business day of the seventh month following Kelly’s separation from service, or (ii) ten (10) days after the Company receives written notification of Kelly’s death. Any such delayed payments shall be made without interest. In addition, to the extent required by 409A, any expense reimbursement payments to Kelly must be made by no later than the end of Kelly’s taxable year following the taxable year in which the expense is incurred. Such reimbursement or in-kind benefit rights may not be subject to liquidation or exchange for another benefit. The Company (nor any of its directors, employees or agents) shall not be liable to Kelly or other persons as to any unexpected or adverse tax consequence realized by Kelly or other person as a result of this Agreement or any payment or benefit provided under this Agreement.

Section 4. Indemnification Claims Not Released. Kelly retains, and does not release in this Agreement any rights to indemnification in accordance with the terms of HealthSport’s articles of incorporation or bylaws. In addition, the Company shall indemnify and hold harmless Kelly from any damages, actions or liability arising from any claims made by Toshiba Copier against Kelly or the Company related to the rental of its copiers to the Company.

Section 5. General Release. Except for the claims set forth in Section 4 above, Kelly for himself, his heirs, executors, administrators, assigns and successors, fully and forever releases and discharges HealthSport and its current, former and future parents, subsidiaries, related entities, employee benefit plans and their fiduciaries, predecessors, successors, officers, directors, shareholders, agents, employees and assigns (collectively, “Releases”), with respect to any and all claims, liabilities and causes of action, of every nature, kind and description, in law, equity or otherwise, which have arisen, occurred or existed at any time prior to the signing of this Agreement, including, without limitation, any and all claims, liabilities and causes of action arising out of or relating to Kelly’s employment relationship with HealthSport prior to the date of this Agreement.

Section 6. Knowing Waiver of Employment-Related Claims. Kelly understands and agrees that, with the exception of potential employment-related claims identified below, he is waiving any and all rights he may have had, now has, or in the future may have, to pursue against any of the Releases any and all remedies available to him under any employment-related causes of action, including without limitation, claims of wrongful discharge, breach of contract, breach of the covenant of good faith and fair dealing, fraud, violation of public policy, defamation, discrimination, personal injury, physical injury, emotional distress, claims under Title VII of the Civil Rights Act of 1964, as amended, the Americans With Disabilities Act, the Federal Rehabilitation Act, the California Fair Employment and Housing Act, the California Family Rights Act, the Equal Pay Act of 1963, the provisions of the California Labor Code and any other federal, state or local laws and regulations relating to employment, conditions of employment (including wage and hour laws), perquisites of employment (including but not limited to claims relating to stock and/or stock options) and/or employment discrimination. Claims not covered by the release provisions of this Agreement are (i) claims for unemployment insurance benefits, (ii) claims under the California Workers’ Compensation Act, and (iii) claims for indemnity under the California Labor Code, (iv) claims arising from HealthSport’s nonperformance under this Agreement and (v) any challenge to the validity of Kelly’s release of claims under the Age Discrimination in Employment Act of 1967, as amended, (“ADEA”) as set forth in Section 6 below. Kelly expressly waives any right to recovery of any type, including damages and reinstatement, in any administrative or court action, whether state or federal, and whether brought by him or on his behalf, related in any way to the matters released herein.

Section 7. Knowing Waiver of ADEA Claims. Kelly acknowledges that he is knowingly and voluntarily waiving and releasing any rights he may have under the federal Age Discrimination in Employment Act of 1967, as amended. He also acknowledges that the consideration given for this waiver and release is in addition to anything of value to which he was already was entitled. Kelly further acknowledges that he has been advised by this writing, as required by law, that: (i) his waiver and release specified in this paragraph do not apply to any rights or claims that may arise after the date he signs this Agreement or to any challenge to the validity of this waiver of ADEA claims; (ii) he has been advised hereby that he has the right to consult with an attorney prior to executing this Agreement; (iii) he has twenty one (21) days to consider this Agreement (although he may choose to voluntarily execute this Agreement earlier); (iv) he has seven (7) days following his execution of this Agreement to revoke the Agreement (in writing); and (v) this Agreement will not be effective until the date upon which the revocation period has expired, which will be the eighth (8th) day after this Agreement is executed by Kelly.

Section 8. Waiver of Civil Code § 1542. Kelly expressly waives any and all rights and benefits conferred upon him by Section 1542 of the Civil Code of the State of California, which states as follows:

“A general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her must have materially affected his or her settlement with the debtor.”

Kelly expressly agrees and understands that the release given by him pursuant to this Agreement applies to all unknown, unsuspected and unanticipated claims, liabilities and causes of action which he may have against any of the other Releases.

Section 9. Severability of Release Provisions. Kelly agrees that if any provision of the release given by him under this Agreement is found to be unenforceable, it will not affect the enforceability of the remaining provisions and the courts may enforce all remaining provisions to the extent permitted by law.

Section 10. Representation Regarding Legal Actions. Kelly represents that, as of the date of this Agreement, he has not filed any lawsuits, charges, complaints, petitions, claims or other accusatory pleadings against the Releases in any court or any with any governmental agency. Except for claims preserved by law or expressly by this Agreement, Kelly promises never to sue any of the Releases, or otherwise institute or participate in any legal or administrative proceedings against any of the Releases, with respect to any claim covered by the release provisions of this Agreement, unless he is compelled by legal process to do so. Kelly promises and agrees that he shall not advocate or incite the institution of, or assist or participate in, any suit, complaint, charge or administrative proceeding by any other person against any of the Releases, unless compelled by legal process to do so.

Section 11. Promise to Maintain Confidentiality of HealthSport’s Confidential Information. Kelly acknowledges that due to the position he has occupied and the responsibilities he has had at HealthSport, he has received confidential information concerning HealthSport’s products, procedures, customers, sales, prices, contracts, and the like. Kelly hereby promises and agrees that, unless compelled by legal process, he will not disclose to others and will keep confidential all information he has received while employed by HealthSport concerning HealthSport’s products and procedures, the confidential purchasing information relating to HealthSport’s customers, HealthSport’s sales, HealthSport’s prices, the terms of any of HealthSport’s contracts with third parties, and the like. Kelly agrees that a violation by him of the foregoing obligation to maintain the confidentiality of HealthSport’s confidential information will constitute a material breach of this Agreement.

Section 12. Entire Agreement. This Agreement constitutes the sole agreement between the parties with respect to its subject matter and supersedes all prior discussions, arrangements or agreements, whether written or oral, with respect to its subject matter.

Section 13. Waiver, Amendment and Modification of Agreement. The parties agree that no waiver, amendment or modification of any of the terms of this Agreement shall be effective unless in writing and signed by all parties affected by the waiver, amendment or modification. No waiver of any term, condition or default of any term of this Agreement shall be construed as a waiver of any other term, condition or default.

Section 14. Representation by Counsel. The parties acknowledge that they have had the opportunity to be represented in negotiations for the preparation of this Agreement by counsel of their own choosing, and that they have entered into this Agreement voluntarily, without coercion. This Agreement shall be construed in accordance with its plain meaning and not strictly for or against either party.

Section 15. California Law. The parties agree that this Agreement and its terms shall be construed under California law, without regard to any choice of law provisions.

Section 16. Counterparts. This Agreement may be signed in multiple counterparts and my be delivered by facsimile or electronic mail in portable document format or other means intended to preserve the original graphical content of a signature. Each such counterparts shall be an original and all of which, taken together, shall constitute one and the same instrument.

Section 17. Period to Consider Terms of Agreement. Kelly acknowledges that this Agreement was presented to him on November 4, 2009 and that he is entitled to have up to twenty-one (21) days’ time in which to consider the terms of this Agreement. Kelly acknowledges that he has obtained the advice and counsel from the legal representative of his choice and executes this Agreement having had sufficient time within which to consider its terms. Kelly represents that if he executes this Agreement before 21 days have elapsed, he does so voluntarily, upon the advice and with the approval of his legal counsel, and that he voluntarily waives any remaining consideration period.

Section 18. Revocation of Agreement. Kelly understands that after executing this Agreement, he has the right to revoke it within seven (7) days after his execution of it. Kelly understands that this Agreement will not become effective and enforceable unless the seven-day revocation period passes and Kelly does not revoke the Agreement in writing. Kelly understands that this Agreement may not be revoked after the seven-day revocation period has passed. Kelly understands that any revocation of this Agreement must be made in writing and delivered to HealthSport’s General Counsel within the seven-day period.

Section 19. Effective Date. This Agreement shall become effective and binding upon the parties eight (8) days after Kelly’s execution thereof, so long as Kelly has not revoked this Agreement within the time period and in the manner specified in Section 18, above.

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