Exhibit 10.4
[logo.jpg]

July 7, 2006

Mr. Warren Nelson
Shells Seafood Restaurants, Inc.
16313 N. Dale Mabry Highway
Suite 100
Tampa, FL 33618

Re: 
Colonial Bank, N.A. (the “Bank”)    Loan to Shells Seafood Restaurants, Inc.
(“Shells”) 

Dear Mr. Nelson:

This letter will confirm that effective as of June 28, 2006, the Bank has agreed
to extend the maturity date of Loan Number 8035494726 (the “Loan”) and the
repayment of the Promissory Note in the principal amount of $500,000 (the
“Note”) issued thereunder from June 28, 2006 to September 28, 2006. The Bank
acknowledges and agrees that no Event of Default has occurred under the Loan or
the Note from the date it was entered into through the date of hereof. Except as
set forth above, all of the terms and conditions of the Loan and the Note remain
in full force and effect.
 
Please call me at (813) 314-5285 with any questions.
 

  Sincerely,        COLONIAL BANK, N.A.            By:     /s/ David Ogburn  
Name: J. David Ogburn 
 
Title: Sr. Vice President 

 

--------------------------------------------------------------------------------