**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**WASHINGTON,      D.C. 20549**

**FORM      10-K/A**

| **(Mark                One)** |                                                                                                                                      |
|-------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------|
| [X]                           | **Annual                Report Pursuant to Section 13 of 15(d) of the Securities Exchange                Act of                1934**     |
|                          | For                the fiscal year ended: **December                31, 2006**                                                            |
|                          | Or                                                                                                                                        |
| [                 ]      | **Transition                Report Pursuant to Section 13 or 15(d) of the Securities Exchange                Act of                1934** |
|                          | For                the transition period from ______ to                ______                                                             |

**SHELLS      SEAFOOD RESTAURANTS, INC.**

| **DELAWARE**                                                                                   |   | **65-0427966**                     |
|------------------------------------------------------------------------------------------------|--------|------------------------------------|
| (State                or other jurisdiction of                                                 |   | (I.R.S.                Employer    |
| incorporation                or organization)                                                  |   | Identification                No.) |
|                                                                                           |   |                               |
| **16313                North Dale Mabry Highway, Suite 100,****Tampa,                Florida** |   |  **33618**                    |
| (Address                of principal executive offices)                                        |   | (Zip                Code)          |

**(813)      961-0944**

|   | Title                of each class                     |   | Name                of each exchange on which registered |   |
|--------|--------------------------------------------------------|--------|----------------------------------------------------------|--------|
|   | Common                Stock, $0.01 par value per share |   | OTC                Bulletin Board                        |   |

**X**

**X**

**X**

** **

----

| Large                Accelerated Filer [ ] | Accelerated                Filer [ ] | Non-accelerated                filer [ **X**                ] |
|--------------------------------------------|--------------------------------------|---------------------------------------------------------------|

**X**

| Class                                                  |   | Outstanding                at March 27, 2007 |
|--------------------------------------------------------|--------|----------------------------------------------|
| Common                Stock, $0.01 par value per share |   | 18,613,968                shares             |

**DOCUMENTS      INCORPORATED BY REFERENCE**

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**EXPLANATORY      NOTE**

**PART      III**

**ITEM      10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE**

**Executive      Officers**

**Directors**

| **Director**                      | **Age** | **Director                Since** | **Principal                Occupation During the Past Five Years**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|-----------------------------------|---------|-----------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Philip                R. Chapman  | 45      | 1997                              | Mr.                Chapman has served on the Board of Directors since May 1997 and as                Chairman since April 2002. Since 1993, Mr. Chapman has been President                of                Adler & Company, a corporation which provides administrative services                for financial and venture capital investing, including certain entities                controlled by Frederick R. Adler, a greater than 10% stockholder.                Mr.                Chapman is a director of Regeneration Technologies, Inc., a company                which                produces allografts for surgical use, and various private companies.                He is                also a managing partner of Alpha Beta Capital Management LLC, a private                hedge fund. Mr. Chapman is the son-in-law of Fredrick R.                Adler.                                                                                                                                                                                                                                                                                                                                         |
|                              |    |                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| Leslie                J. Christon | 52      | 2004                              | Mrs.                Christon has served as our President and Chief Executive Officer                since                joining our company in July 2003. From 2002 to 2003, Mrs. Christon                was                self-employed as a management consultant in the restaurant industry.                From                2000 to 2002, Mrs. Christon was employed by Sutton Place Gourmet,                Inc. as                its President and Chief Operating Officer. From 1996 to 2000, Mrs.                Christon was employed                by Brinker International, On the Border Restaurants, as its                President.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|                              |    |                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| Michael                R. Golding | 73      | 2002                              | Dr.                Golding has served as a Board Member since 2002 and is currently                a member                of the Audit Committee. Dr. Golding has been a professor of surgery                at the                State University of New York Health Science Center in Brooklyn, New                York                since 1963, where he is currently an Emeritus Clinical Professor                of                Surgery. From 1977 to 1989, Dr. Golding served as Director of Surgery                at                Lutheran Medical Center in Brooklyn, New York. From 1984 to 1989,                Dr.                Golding was President of the Tri-Boro Association of Directors of                Surgery.                Dr. Golding is a Fellow of the American College of Surgeons, a Fellow                of                the American College of Chest Physicians, and a Fellow of the American                College of Angelology. Dr. Golding is a Member of the Board of Directors                of the United Hospital Fund. Dr. Golding also serves on the boards                of                numerous professional entities and private                companies. |

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| Gary                L. Herman        | 42     | 2004   | Mr.                Herman has been a member of Galloway Capital Management, LLC, an                affiliate                of a greater than 10% stockholder, since 2002. Mr. Herman has been                the                Chairman and Secretary of Digital Creative Development Corporation,                an                investment holding company, since 2001. He has been the Secretary                and a                member of the Board of Directors of DataMetrics Corporation, a military                defense company, since 2000, and Chairman since 2005. From 1997 to                2002,                Mr. Herman was an Associate Managing Director of Burnham Securities,                Inc.                                                                                                                                                                                                                                                                   |
|--------------------------------------|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                 |   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| Christopher                D. Illick | 68     | 1998   | Mr.                Illick has been the President of iQ Venture Partners, Inc., an investment                bank, since 2001 and was formerly a General Partner of Illick Brothers,                a                real estate and management concern, since 1965. From 1997 to 2001,                Mr.                Illick was a senior officer of the investment bank of Brean Murray&                Co., Inc.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|                                 |   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| Jay                A. Wolf           | 34     | 2004   | Since                2004, Mr. Wolf has served as a Managing Director of Trinad Capital,                L.P.,                an activist hedge fund. From 1999 to 2003, Mr. Wolf served as Vice                President of Corporate Development for Wolf Group Integrated                Communications Ltd., a marketing communications firm, where he was                responsible for the company’s acquisition program. From 1996 to 1999, Mr.                Wolf was employed by Canadian Corporate Funding, Ltd., a Toronto-based                merchant bank in the senior debt department and, subsequently by                Trillium                Growth Capital, the firm’s venture capital fund. Mr. Wolf currently sits                on the Board of ProLink Holdings Corp, a public company providing                electronic GPS services to the golf industry, and US Wireless Data,                Inc.,                a public development stage company. |

**Section      16(a) Beneficial Ownership Reporting Compliance**

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**Code      of Ethics**

**Audit      Committee Financial Expert**

**ITEM      11. EXECUTIVE COMPENSATION**

**Compensation      Discussion and Analysis**

| · | compensation                  should encourage increased stockholder value;                                                                                                                     |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| · | compensation                  programs should reflect and promote our values and reward individuals                  for                  outstanding contributions towards business goals; and |
| · | compensation                  programs should enable us to attract and retain highly qualified                  professionals                                                                   |

| · | analyzed                  the compensation levels of comparable executive officers within                  the                  restaurant industry peer group;                                                                                                                                  |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| · | determined                  a mix of base salary and bonus opportunity, along with an equity                  position                  to align our executive officers’ compensation with our                  performance;                                                               |
| · | assessed                  our executive officers’ performance; and                                                                                                                                                                                                                         |
| · | assessed                  our financial and business results compared to other companies                  within the                  restaurant industry and our financial performance relative to our                  past                  performance and financial                  goals. |

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*Base      Salaries*

*Non-Equity      Incentive Awards (Bonuses)*

*Long-Term      Equity Incentive Awards*

----

*Stock      Options*

*Restricted      Stock and Restricted Stock Units*

----

*Other      Equity-Based Awards*

*Severance      Arrangements. *

** **

*Fringe      Benefits and Perquisites*
** **

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**STOCK      OPTION AND COMPENSATION COMMITTEE REPORT**

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**Summary      Compensation Table**

| **NAME                AND PRINCIPAL POSITION**                                |   | **YEAR** |   | **SALARY                (1)** |   | **OPTION****AWARDS(2)** |   | **NON-EQUITY****INCENTIVE****PLAN****COMPENSATION(1)(3)** |   | **ALL****OTHER                      COMPENSATION** |   | **TOTAL** |   |
|-------------------------------------------------------------------------------|--------|----------|--------|-------------------------------|--------|-------------------------|--------|-----------------------------------------------------------|--------|----------------------------------------------------|--------|-----------|--------|
| Leslie                J. Christon                                             |   |     | 2006   |                          | $      | 300,000                 |   | $                                                         | -      |                                               | $      | 21,155    |   | $ | 12,530 |   | $ | 333,685 |   |
| Chief                Executive Officer and President                          |   |     |   |                          |   |                    |   |                                                      |   |                                               |   |      |   |   |   |   |   |   |   |
| (Principal                Executive Officer) (4)                              |   |     |   |                          |   |                    |   |                                                      |   |                                               |   |      |   |   |   |   |   |   |   |
|                                                                          |   |     |   |                          |   |                    |   |                                                      |   |                                               |   |      |   |   |   |   |   |   |   |
| Warren                R. Nelson                                               |   |     | 2006   |                          |   | 166,904                 |   |                                                      | 11,596 |                                               |   | 9,484     |   |   | 868 |   |   | 188,852 |   |
| Executive                Vice President of Finance,                           |   |     |   |                          |   |                    |   |                                                      |   |                                               |   |      |   |   |   |   |   |   |   |
| Chief                Financial Officer, Secretaryand                Treasurer |   |     |   |                          |   |                    |   |                                                      |   |                                               |   |      |
| (Principal                Financial Officer) (5)                              |   |     |   |                          |   |                    |   |                                                      |   |                                               |   |      |   |   |   |   |   |   |   |
|                                                                          |   |     |   |                          |   |                    |   |                                                      |   |                                               |   |      |   |   |   |   |   |   |   |
| Guy                C. Kathman                                                 |   |     | 2006   |                          |   | 144,634                 |   |                                                      | 3,517  |                                               |   | 8,348     |   |   | 516 |   |   | 157,015 |   |
| Vice                President of Operations (6)                               |   |     |   |                          |   |                    |   |                                                      |   |                                               |   |      |   |   |   |   |   |   |   |
|                                                                          |   |     |   |                          |   |                    |   |                                                      |   |                                               |   |      |   |   |   |   |   |   |   |
| Christopher                R. Ward, Sr.                                       |   |     | 2006   |                          |   | 127,927                 |   |                                                      | 3,227  |                                               |   | 7,539     |   |   | - |   |   | 138,693 |   |
| Vice                President of Purchasing                                   |   |     |   |                          |   |                    |   |                                                      |   |                                               |   |      |   |   |   |   |   |   |   |

| (1) |   | All                of the salaries and non-equity incentive plan compensation for the                named                executive officers in 2006 were paid in cash.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|-----|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) |   | Option                awards consist of compensation cost recognized in our financial statements                with respect to awards granted in previous fiscal years and the subject                fiscal year. Option awards are expensed on a straight-line basis                over the                vesting period of the award. The option awards are valued at fair                value                using the Black-Scholes option pricing model. Effective                January 1, 2006, we adopted the fair value based method of accounting                for                stock-based employee compensation as required by SFAS No. 123R,                “Share-Based Payment.”  The fair value based method requires us to                expense all stock-based employee compensation.  See Note 1 and Note                14 to our audited financial statements for the 2006 fiscal year,                contained                in Part I Item 8 “Financial Statements”, to this Annual Report on Form                10-K, for the methodology used and assumptions made in the valuation                of                our options. |
| (3) |   | All                non-equity incentive plan compensation earned by our named executive                officers for the 2006 fiscal year under the 2006 Management Compensation                Plan was paid during such period as disclosed in the column above.                See                Compensation Discussion and Analysis for a discussion of the 2006                Management Compensation Plan.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| (4) |   | Other                compensation for Mrs. Christon includes an automobile allowance of                $12,000                and life insurance premiums paid by Shells of $530.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| (5) |   | Other                compensation for Mr. Nelson consists of life insurance premiums paid                by                Shells of $868, in aggregate, for policy years covering 2005 and                2006.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| (6) |   | Other                compensation for Mr. Kathman consists of life insurance premiums                paid by                Shells of $516.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |

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**Narrative      Discussion of Summary Compensation Table Information**

*Cash      Compensation (Base Salaries and Bonuses)*

*Long-Term      Equity Incentive Awards*

----

*Fringe      Benefits and Perquisites*

*Employment      Agreement*

*Cash      Compensation (Base Salaries and Bonuses). *

*Long-Term      Equity Incentive Awards*

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*Fringe      Benefits and Perquisites*

*Severance      Agreement*

*Cash      Compensation (Base Salaries and Bonuses)*

*Long-Term      Equity Incentive Awards*

----

*Fringe      Benefits and Perquisites*

*Severance      Agreement*

*Cash      Compensation (Base Salaries and Bonuses)*

*Long-Term      Equity Incentive Awards.*
** **

*Fringe      Benefits and Perquisites*

----

*Severance      Agreement*

**Grant      of Plan Based Awards**

** **

**Outstanding      Equity Awards at Fiscal Year-End **

|                                    |   | **NUMBER                OF SECURITIES**           |    | **OPTION**                           |   |                           |   |
|-----------------------------------------|--------|---------------------------------------------------|---------|--------------------------------------|--------|--------------------------------|--------|
|                                    |   | **UNDERLYING                UNEXERCISED OPTIONS** |    | **EXERCISE**                         |   |                           |   |
|                                         |   | **(NUMBER                OF SHARES)(#)**          |    | **PRICE**                            |   | ****OPTION****                 |   |
| **NAME**                                |   | **EXERCISABLE**                                   |    | **UNEXERCISABLE                (1)** |   | **PER                  SHARE** |   | **EXPIRATION                DATE** |   |
| Leslie                J. Christon       |   |                                              | 297,374 |                                 |   | -                              |   | $ | 0.62 |   |   | 7/6/2013 |   |
|                                    |   |                                              | 150,000 |                                 |   | 300,000                (2      | )      |   | 1.10 |   |   | 3/21/2015 |   |
|                                    |   |                                              | 150,000 |                                 |   | 300,000                (3      | )      |   | 0.76 |   |   | 6/12/2013 |   |
|                                    |   |                                              | 353,844 |                                 |   | 707,691                (4      | )      |   | 0.85 |   |   | 7/1/2012 |   |
|                                    |   |                                              |    |                                 |   |                           |   |   |   |   |   |   |   |
| Warren                R. Nelson         |   |                                              | 5,000   |                                 |   | -                              |   |   | 5.13 |   |   | 1/10/2009 |   |
|                                    |   |                                              | 10,000  |                                 |   | -                              |   |   | 2.00 |   |   | 2/6/2010 |   |
|                                    |   |                                              | 20,000  |                                 |   | -                              |   |   | 0.45 |   |   | 4/18/2011 |   |
|                                    |   |                                              | 152,771 |                                 |   | 5,213                (5        | )      |   | 0.42 |   |   | 2/28/2012 |   |
|                                    |   |                                              | 41,666  |                                 |   | 83,334                (6       | )      |   | 1.10 |   |   | 3/21/2015 |   |
|                                    |   |                                              | 41,666  |                                 |   | 83,334                (7       | )      |   | 0.76 |   |   | 6/13/2012 |   |
|                                    |   |                                              |    |                                 |   |                           |   |   |   |   |   |   |   |
| Guy                C. Kathman           |   |                                              | 50,000  |                                 |   | -                              |   |   | 0.64 |   |   | 9/23/2013 |   |
|                                    |   |                                              | 41,666  |                                 |   | 83,334                (6       | )      |   | 1.10 |   |   | 3/21/2015 |   |
|                                    |   |                                              | 41,666  |                                 |   | 83,334                (7       | )      |   | 0.76 |   |   | 6/13/2012 |   |
|                                    |   |                                              |    |                                 |   |                           |   |   |   |   |   |   |   |
| Christopher                R. Ward, Sr. |   |                                              | 26,667  |                                 |   | 13,333                (8       | )      |   | 0.71 |   |   | 9/7/2014 |   |
|                                    |   |                                              | 15,000  |                                 |   | 30,000                (9       | )      |   | 1.10 |   |   | 3/21/2015 |   |
|                                    |   |                                              | 15,000  |                                 |   | 30,000(10                      | )      |   | 0.76 |   |   | 6/13/2012 |   |

| (1) |   | See                Termination of Employment and Change in Control Arrangements, following                this table, for additional information regarding                vesting.                                                        |
|-----|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) |   | These                options vested and became exercisable as to 150,000 shares on March                21,                2007 and will vest and become exercisable as to an additional 150,000                shares on March 21, 2008. |
| (3) |   | These                options vest and become exercisable as to 150,000 shares on each                of June                13, 2007 and June 13, 2008.                                                                                   |

----

| (4)  |   | These                options vest and become exercisable as to 353,845 shares on July                1, 2007                and as to 353,846 shares on July 1, 2008.                                                                   |
|------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (5)  |   | These                options vest and become exercisable ratably each month through February                2007.                                                                                                                       |
| (6)  |   | These                options vested and became exercisable as to 41,667 shares on March                21,                2007 and will vest and become exercisable as to an additional 41,666                shares on March 21, 2008. |
| (7)  |   | These                options vest and become exercisable as to 41,667 shares on June 13,                2007                and as to 41,666 shares on June 13, 2008.                                                                   |
| (8)  |   | These                options vest and become exercisable on September 7,                2007.                                                                                                                                           |
| (9)  |   | These                options vested and became exercisable as to 15,000 shares on March                21,                2007 and will vest and become exercisable as to an additional 15,000                shares on March 21, 2008. |
| (10) |   | These                options vest and become exercisable as to 15,000 shares on each of                June                13, 2007 and June 13, 2008.                                                                                  |

**Option      Exercises and Stock Vested**

**Termination      of Employment and Change in Control Arrangements**

*Termination      Without Cause*

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*Termination      for Cause; Permanent Disability; Death*

*Termination      following a Change in Control*

**Effect      on the Stock Options**

*Termination      Without Cause*

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*Termination      for Cause, Death or Disability*

*Change      in Control*

|                                      |                                           |   |   |                               |   |                      |   |   |                                               |   |                               |   |         |   |                                   |   |                               |   |   |                      |   |
|-------------------------------------------|------------------------------------------------|--------|--------|------------------------------------|--------|---------------------------|--------|--------|----------------------------------------------------|--------|------------------------------------|--------|--------------|--------|----------------------------------------|--------|------------------------------------|--------|--------|---------------------------|--------|
|                                      |                                           |   |   |                               |   |                      |   |   | **TERMINATION                  FOR CAUSE,**        |   |                               |   |         |   |                                   |   |                               |   |   |                      |   |
|                                      | **TERMINATION                  WITHOUT CAUSE** |   |   |                               |   |                      |   |   | **PERMANENT                  DISABILITY OR DEATH** |   |                               |   |         |   | **CHANGE                  IN CONTROL** |   |                               |   |   |                      |   |
|                                      |                                           |   |   | **STOCK**                          |   |                      |   |   |                                               |   | **STOCK**                          |   |         |   |                                   |   | **STOCK**                          |   |   |                      |   |
|                                      | **SEVERANCE**                                  |   |   | **OPTIONS**                        |   | **MEDICAL**               |   |   | **SEVERANCE**                                      |   | **OPTIONS**                        |   | **MEDICAL**  |   | **SEVERANCE**                          |   | **OPTIONS**                        |   |   | **MEDICAL**               |   |
|                                      | **PAYMENT**                                    |   |   | **(#                  OF SHARES)** |   | **BENEFITS**              |   |   | **PAYMENT**                                        |   | **(#                  OF SHARES)** |   | **BENEFITS** |   | **PAYMENT**                            |   | **(#                  OF SHARES)** |   |   | **BENEFITS**              |   |
| Leslie                  J. Christon       | $                  300,000                     | (1)    |   | 951,218                            |   | $                  11,930 | (2)    |   | N/A                                                |   | 951,218                            |   | N/A          |   | $                  300,000             |   | 1,307,691                          | (3)    |   | $                  11,930 | (4)    |
| Warren                  R. Nelson         | 167,000                                        | (1)    |   | 271,103                            |   | N/A                       |   |   | N/A                                                |   | 271,103                            |   | N/A          |   | 167,000                                |   | 171,881                            | (3)    |   | 11,930                    | (4)    |
| Guy                  C. Kathman           | N/A                                            |   |   | 133,332                            |   | N/A                       |   |   | N/A                                                |   | 133,332                            |   | N/A          |   | 108,150                                |   | 166,668                            | (3)    |   | 8,947                     | (4)    |
| Christopher                  R. Ward, Sr. | N/A                                            |   |   | 56,667                             |   | N/A                       |   |   | N/A                                                |   | 56,667                             |   | N/A          |   | 96,000                                 |   | 73,333                             | (3)    |   | 8,947                     | (4)    |

| (1) |   | Mrs.                Christon severance payment will be the base salary for a period of                one                year from the date of termination; provided that she is not employed                by                another entity for such period. Mr. Nelson’s severance payment will be                based on the then annual salary as of the date of                termination. |
|-----|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) |   | Mrs.                Christon will receive payment of COBRA continuation health coverage                premiums for the one-year period from the date of termination; provided                that she is not employed by another entity for such                period.                                                                                                                                 |

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| (3) |   | Amount                represents unvested options as of December 31, 2006 including                out-of-the-money stock options. If the executive officer is not offered                a                comparable position with Shells, the option immediately becomes vested                and                exercisable in full. If the executive officer is offered a comparable                position with Shells, the option immediately becomes vested and                exercisable with respect to one-half of the shares of common stock                for                which the option is not vested and exercisable and if the executive                officer accepts such comparable position through the first anniversary                of                the change in control, the option, to the extent not already vested                and                exercisable, will become vested and exercisable on such first anniversary,                provided executive is not terminated without cause within six months                of                the change in control or executive terminates his employment with                Shells                as a result of being required to relocate outside the Tampa, Florida                Market. |
|-----|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (4) |   | Mrs.                Christon and Mr. Nelson will continue to receive health coverage                for a                one-year period following termination and Messrs. Kathman and Ward                will                receive such premiums for a nine-month period following termination;                provided that that such executive does not become employed by another                entity during such period.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |

**Non-Competition;      Non-Solicitation; Confidentiality**

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**Director      Compensation**

|                                                                           |   | **DIRECTOR'S** |   |
|--------------------------------------------------------------------------------|--------|----------------|--------|
| **DESCRIPTION**                                                                |   | **FEE**        |   |
| Annual                retainer paid in quarterly installments                  |   | $              | 10,000 |   |
| Audit                Committee Chair annual fee paid in quarterly installments |   | $              | 10,000 |   |
|                                                                           |   |           |   |   |
| Annual                stock option grant (# of shares)                         |   |           | 20,000 |   |
| Annual                stock option grant, Audit Committee Chair (# of shares)  |   |           | 30,000 |   |

|                                 |   | **FEES                EARNED** |   |                              |   |      |   |
|--------------------------------------|--------|--------------------------------|--------|-----------------------------------|--------|-----------|--------|
|                                 |   | **OR                PAID**     |   | **OPTION**                        |   |      |   |
| **NAME**                             |   | **IN                CASH (1)** |   | **AWARDS                (2) (3)** |   | **TOTAL** |   |
| Philip                R. Chapman     |   | $                              | 10,000 |                              | $      | 3,855     |   | $ | 13,855 |   |
| Michael                R. Golding    |   |                           | 10,000 |                              |   | 3,855     |   |   | 13,855 |   |
| Gary                L. Herman        |   |                           | 10,000 |                              |   | 3,855     |   |   | 13,855 |   |
| John                F. Hoffner (4)   |   |                           | 20,000 |                              |   | 16,150    |   |   | 36,150 |   |
| Christopher                D. Illick |   |                           | 10,000 |                              |   | 3,855     |   |   | 13,855 |   |
| Jay                A. Wolf           |   |                           | 10,000 |                              |   | 3,855     |   |   | 13,855 |   |

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| (1) |   | Represents                the annual retainer of $10,000, paid quarterly, along with the fee                for the                chairman of the Audit Committee.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|-----|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) |   | Option                awards consist of compensation cost recognized in our financial statements                with respect to awards granted in previous fiscal years and the subject                fiscal year. Option awards are expensed on a straight-line basis                over the                vesting period of the award. The option awards are valued at fair                value                using the Black-Scholes option pricing model. Effective                January 1, 2006, we adopted the fair value based method of accounting                for                stock-based employee compensation as required by SFAS No. 123R,                “Share-Based Payment.”  The fair value based method requires us to                expense all stock-based employee compensation.  See Note 1 and Note                14 to our audited financial statements for the 2006 fiscal year,                contained                in Part I Item 8 “Financial Statements”, to this Annual Report on Form                10-K, for the methodology used and assumptions made in the valuation                of                our options. |
| (3) |   | We                granted an aggregate of 150,000 options to purchase our common stock                to                non-employee directors in 2006 and the aggregate number of options                awards                outstanding at the fiscal year end was 480,000.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| (4) |   | Mr.                Hoffner resigned from the Board of Directors and as Chair of the                Audit                Committee effective as of January 1,                2007.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |

**Stock      Option and Compensation Committee Interlocks and Insider      Participation**

----

**ITEM      12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED      STOCKHOLDER MATTERS**

| **Name                and Address of Beneficial Owner**                                                                                                                     |   | **Beneficial                Ownership Amount** |      | **Percent                of Class** |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------|-----------|-------------------------------------|--------|
|                                                                                                                                                                        |   |                                           |      |                                |   |
| Philip                R. Chapman400                Madison Avenue, Suite 7CNew                York, NY 10017 (1)                                                            |   |                                           | 4,600,015 |                                |   | 24.27 | % |
|                                                                                                                                                                        |   |                                           |      |                                |   |   |   |
| Leslie                J. Christon (2)                                                                                                                                       |   |                                           | 1,116,219 |                                |   | 5.60 | % |
|                                                                                                                                                                        |   |                                           |      |                                |   |   |   |
| Michael                R. Golding230                Pleasant Valley RoadMorganville,                NJ 07751 (3)                                                            |   |                                           | 90,000    |                                |   | * |   |
|                                                                                                                                                                        |   |                                           |      |                                |   |   |   |
| Gary                L. HermanGalloway                Capital Management, LLC720                Fifth Avenue, 10th                FloorNew                York, NY 10019 (4) |   |                                           | 934,989   |                                |   | 4.94 | % |
|                                                                                                                                                                        |   |                                           |      |                                |   |   |   |
| Christopher                D. Illick735                Iris LaneVero                Beach, FL 32963 (5)                                                                     |   |                                           | 114,000   |                                |   | * |   |
|                                                                                                                                                                        |   |                                           |      |                                |   |   |   |
| Jay                A. Wolfc/o                Trinad Capital, L.P.2121                Avenue of the Stars, Suite 2550Los                Angeles, CA 90067 (6)                |   |                                           | 4,344,315 |                                |   | 22.18 | % |
|                                                                                                                                                                        |   |                                           |      |                                |   |   |   |
| Guy                C. Kathman (7)                                                                                                                                           |   |                                           | 175,001   |                                |   | * |   |
|                                                                                                                                                                        |   |                                           |      |                                |   |   |   |
| Warren                R. Nelson (8)                                                                                                                                         |   |                                           | 383,251   |                                |   | 2.00 | % |

----

| **Name                  and Address of Beneficial Owner** |   | **Beneficial                  Ownership Amount** |   | **Percent                  of Class** |   |
|-----------------------------------------------------------|--------|--------------------------------------------------|--------|---------------------------------------|--------|
|                                                      |

| Christopher                R. Ward, Sr. (9)                                                                                                                                 |   |   | 71,667    |   |   | *      |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|--------|
|                                                                                                                                                                        |   |   |      |   |   |   |   |
| Frederick                R. Adler1520                South Ocean Blvd.Palm                Beach, FL 33480 (10)                                                              |   |   | 3,793,860 |   |   | 18.69  | %      |
|                                                                                                                                                                        |   |   |      |   |   |   |   |
| James                R. Adler400                Madison Avenue, Suite 7CNew                York, NY 10017 (11)                                                              |   |   | 4,454,015 |   |   | 23.64  | %      |
|                                                                                                                                                                        |   |   |      |   |   |   |   |
| Robert                Ellinc/o                Trinad Capital, L.P.2121                Avenue of the Stars, Suite 2550Los                Angeles, CA 90067 (12)              |   |   | 4,264,315 |   |   | 21.86  | %      |
|                                                                                                                                                                        |   |   |      |   |   |   |   |
| Bruce                GallowayGalloway                Capital Management LLC720                Fifth Avenue, 10th                FloorNew                York, NY 10019 (13) |   |   | 2,957,364 |   |   | 15.58  | %      |
|                                                                                                                                                                        |   |   |      |   |   |   |   |
| Banyon                Investment, LLC400                Madison Avenue, Suite 7CNew                York, NY 10017                                                           |   |   | 4,454,015 |   |   | 23.64  | %      |
|                                                                                                                                                                        |   |   |      |   |   |   |   |
| Drawbridge                Global Macro Fund, L.P.1251                Avenue of the Americas, 16th FloorNew                York, NY 10020 (14)                               |   |   | 1,680,000 |   |   | 8.66   | %      |
|                                                                                                                                                                        |   |   |      |   |   |   |   |
| JMP                Securities, LLC600                Montgomery St., Suite 1100San                Francisco, CA 94111 (15)                                                  |   |   | 1,129,530 |   |   | 5.66   | %      |
|                                                                                                                                                                        |   |   |      |   |   |   |   |
| Lagunitas                Partners, LP50                Osgood Place, PenthouseSan                Francisco, CA 94133 (16)                                                   |   |   | 2,600,010 |   |   | 12.13  | %      |
|                                                                                                                                                                        |   |   |      |   |   |   |   |
| Pequot                Scout Fund, LP500                Nyala Farm RoadWestport,                CT 06880 (17)                                                                |   |   | 2,467,020 |   |   | 11.81  | %      |
|                                                                                                                                                                        |   |   |      |   |   |   |   |
| Pequot                Mariner Onshore Fund, LP500                Nyala Farm RoadWestport,                CT 06880 (18)                                                      |   |   | 1,532,970 |   |   | 7.62   | %      |
|                                                                                                                                                                        |   |   |      |   |   |   |   |
| Pequot                Capital Management, Inc.500                Nyala Farm RoadWestport,                CT 06880 (19)                                                      |   |   | 3,999,990 |   |   | 18.04  | %      |
|                                                                                                                                                                        |   |   |      |   |   |   |   |

----

| **Name                  and Address of Beneficial Owner** |   | **Beneficial                  Ownership Amount** |   | **Percent                  of Class** |   |
|-----------------------------------------------------------|--------|--------------------------------------------------|--------|---------------------------------------|--------|
|                                                      |

| Trinad                Advisors GP, LLC2121                Avenue of the Stars, Suite 2550Los                Angeles, CA 90067 (20)          |   |   | 4,264,315  |   |   | 21.86  | %      |
|---------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|--------|
|                                                                                                                                        |   |   |       |   |   |   |   |
| Trinad                Capital Master Fund, Ltd.2121                Avenue of the Stars, Suite 2550Los                Angeles, CA 90067 (20) |   |   | 4,264,315  |   |   | 21.86  | %      |
|                                                                                                                                        |   |   |       |   |   |   |   |
| All                directors and executive officers as a group (9 persons)                (21)                                              |   |   | 11,829,458 |   |   | 55.78  | %      |
|                                                                                                                                        |   |   |       |   |   |   |   |

| (1) | Includes                (i) 4,454,015 shares of common stock owned by Banyon Investment,                LLC, and                (ii) 116,000 shares of common stock which may be acquired through                the                exercise of options held by Mr. Chapman. Mr. Chapman and Mr. James                Adler                are co-managing members of Banyon Investment, LLC and share voting                and                investment powers.                                                                                                                                                                                                                                                                                                                                                                                                   |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | Includes                1,101,219 shares of common stock which may be acquired through the                exercise of options. Does not include options to purchase 1,157,690                shares                of common stock which are not exercisable within 60 days of March                31,                2007.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| (3) | Consists                of 90,000 shares of common stock which may be acquired through the                exercise of options.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| (4) | Includes                (i) 562,800 shares of common stock owned by Strategic Turnaround                Equity                Partners, L.P. (Cayman) (“STEP”), an investment fund; (ii) 193,751 shares                of common stock owned by Galloway Capital Management, LLC; (iii)                80,000                shares of common stock which may be acquired through the exercise                of                options; and (iv) 4,688 shares of common stock owned by a trust for                the                benefit of Mr. Herman’s children. Mr. Herman is a managing member of                Galloway Capital Management, LLC, a managing member of the general                partner                of STEP, and the trustee of the aforementioned trust.                                                           |
| (5) | Consists                of 114,000 shares of common stock which may be acquired through the                exercise of options.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| (6) | Consists                of (i) 3,521,548 shares of common stock owned by Trinad Capital Master                Fund, Ltd.; (ii) 22,270 shares of Series B Preferred convertible                into                445,400 shares of common stock, owned by Trinad Capital Master Fund,                Ltd.;                (iii) warrants to purchase 222,700 shares of common stock owned by                Trinad                Capital Master Fund, Ltd.; (iv) 80,000 shares of common stock which                may be                acquired through the exercise of options and (v) 74,667 shares of                common                stock owned by Trinad Capital, LP. Mr. Wolf is a managing director                of                Trinad Management, LLC which is the manager of Trinad Capital Master                Fund,                Ltd. |
| (7) | Consists                of 175,001 shares of common stock which may be acquired through the                exercise of options. Does not include options to purchase 199,999                shares                of common stock which are not exercisable within 60 days of March                31,                2007.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| (8) | Includes                317,983 shares of common stock which may be acquired through the                exercise                of options. Does not include options to purchase 283,993 shares of                common                stock which are not exercisable within 60 days of March 31,                2007.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| (9) | Consists                of 71,667 shares of common stock which may be acquired through the                exercise of options. Does not include options to purchase 133,333                shares                of common stock with are not exercisable within 60 days of March                31,                2007.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |

----

| (10) | Includes                (i) 48,833 shares of Series B Preferred stock convertible into 976,660                shares of common stock and (ii) warrants to purchase 488,330 shares                of                common stock. Does not include 4,454,015 shares of common stock owned                by                Banyon Investment, LLC. Mr. Adler’s son, James Adler, is a co-managing                member of Banyon Investment, LLC.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (11) | Consists                of 4,454,015 shares of common stock owned by Banyon Investment, LLC.                Mr.                James Adler and Mr. Chapman are co-managing members of Banyon Investment,                LLC and share voting and investment powers. Does not include any                share                held by Mr. Frederick Adler, the father of Mr. James                Adler.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| (12) | Consists                of (i) 3,521,548 shares of common stock owned by Trinad Capital Master                Fund, Ltd.; (ii) 22,270 shares of Series B Preferred convertible                into                445,400 shares of common stock, owned by Trinad Capital Master Fund,                Ltd.;                (iii) warrants to purchase 222,700 shares of common stock owned by                Trinad                Capital Master Fund, Ltd.; and (iv) 74,667 shares of common stock                owned by                Trinad Capital, LP. Mr. Ellin is a managing director of Trinad                Management, LLC which is the manager of Trinad Capital Master Fund,                Ltd.                                                                                                                                                                                                                                                                                                                         |
| (13) | Consists                of (i) 562,800 shares of common stock owned by Strategic Turnaround                Equity                Partners, L.P. (Cayman) (“STEP”), an investment fund of which Mr. Galloway                is a managing member of Galloway Capital Management, LLC, STEP’s general                partner; (ii) 193,751 shares of common stock owned by Galloway Capital                Management, LLC of which 50% is to the benefit of Mr. Galloway; (iii)                1,955,793 shares of common stock owned by the Bruce Galloway, IRA                R/O;                (iv) warrants to purchase 143,420 shares of common stock owned by                the                Bruce Galloway, IRA R/O; (v) 24,100 shares of common stock owned                by Rexon                Galloway Capital Growth, LLC; and (vi) 77,500 shares of common stock                owned                by Mr. Galloway’s children for which Mr. Galloway has the right to vote                and dispose. |
| (14) | Includes                a warrant to purchase 560,000 shares of common stock.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| (15) | Consists                of a (i) warrant to purchase 37,651 shares of Series B Preferred                Stock                which, if exercised, is convertible into 753,020 shares of common                stock, and (ii) a warrant to purchase 376,510 shares of common stock,                to                be issued if the Series B warrant is exercised.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| (16) | Consists                of (i) 86,667 shares of Series B Preferred Stock convertible into                1,733,340 shares of common stock and (ii) a warrant to purchase 866,670                shares of common stock.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| (17) | Consists                of (i) 61,674 shares of Series B Preferred Stock convertible into                1,233,480 shares of common stock and (ii) a warrant to purchase 822,340                shares of common stock.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| (18) | Includes                (i) 38,324 shares of Series B Preferred Stock convertible into 766,480                shares of common stock and (ii) a warrant to purchase 510,990 shares                of                common stock.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| (19) | Consists                of shares beneficially owned by Pequot Scout Fund, LP and Pequot                Mariner                Offshore Fund, LP, as detailed above. Pequot Capital Management,                Inc. is                the investment adviser of Pequot Scout Fund, LP and Pequot Mariner                Offshore Fund, LP.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| (20) | Consists                of (i) 3,521,548 shares of common stock owned by Trinad Capital Master                Fund, Ltd.; (ii) 22,270 shares of Series B Preferred Stock convertible                into 445,400 shares of common stock owned by Trinad Capital Master                Fund,                Ltd.; (iii) warrants to purchase 222,700 shares of common stock owned                by                Trinad Capital Master Fund, Ltd.; and (iv) 74,667 shares of common                stock                owned by Trinad Capital, LP. Trinad Advisors GP, LLC is the general                partner of Trinad Capital Master Fund, Ltd.                                                                                                                                                                                                                                                                                                                                                                                             |
| (21) | Includes                (i) 9,015,487 shares of common stock, and (ii) 2,145,871 shares of                common                stock which may be acquired through the exercise of options. Does                not                include options to purchase an aggregate of 1,775,014 shares of common                stock which are not exercisable within 60 days of March 31,                2007.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |

*Certain      information in the table and its footnotes is derived from filings made with      the      Securities and Exchange Commission or supplemental information received from      various of the entities named in this table.*

----

**Equity      Compensation Plan Information**

----

**ITEM      13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR      INDEPENDENCE**

----

**Review,      Approval or Ratification of Transactions with Related      Persons**

**Director      Independence**

----

**ITEM      14. PRINCIPAL ACCOUNTING FEES AND SERVICES**

|                              |   | **FISCAL                YEAR**                                                   |    |
|-----------------------------------|--------|----------------------------------------------------------------------------------|---------|
| **CATEGORY**                      |   | **        2006    ** |    | **        2005    ** |   |
| Audit                Fees         |   | $                                                                                | 93,800  |   | $ | 63,500 |   |
| Audit-Related                Fees |   |                                                                             | -       |   |   | - |   |
| Tax                Fees           |   |                                                                             | 16,000  |   |   | 17,000 |   |
| All                Other Fees     |   |                                                                             | 2,425   |   |   | 62,608 |   |
| Total                Fees         |   | $                                                                                | 112,225 |   | $ | 143,108 |   |

----

**ITEM      15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES**

| (a)                        | Financial                Statements                                                                                                                                                                                                                |
|----------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (1)                and (2) | See                "Index to Financial Statements" at Item 8 of this Annual Report on                Form                10-K.                                                                                                                     |
| (3)                        | Exhibits                - Exhibits Nos. 10.1, 10.2, 10.4, 10.5, 10.17, 10.22, 10.23, 10.24,                10.34,                10.35, 10.36, 10.37, 10.38 and 10.39 are management contracts,                compensatory plans or arrangements. |

| **Number** |   | **Description** |
|------------|--------|-----------------|

| 3.1    | Certificate                of Incorporation. (1)                                                                                                                                                                                                                                                                                          |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3.2    | Agreement                and Plan of Merger, dated March 31, 1996, by and between Shells Seafood                Restaurants, Inc., a Delaware Corporation, and Shells Seafood Restaurant,                Inc., a Florida Corporation. (1)                                                                                                 |
| 3.3    | By-laws.                (1)                                                                                                                                                                                                                                                                                                               |
| 3.4    | Certificate                of Designations of Series A Convertible Preferred Stock.                (2)                                                                                                                                                                                                                                    |
| 3.5    | Certificate                of Designations of Series B Convertible Preferred Stock.                (6)                                                                                                                                                                                                                                    |
| 3.6    | Certificate                of Amendment, dated March 17, 2005. (8)                                                                                                                                                                                                                                                                        |
| 3.7    | Certificate                of Amendment, dated July 7, 2005. (8)                                                                                                                                                                                                                                                                          |
| 4.1    | Specimen                common stock certificate. (1)                                                                                                                                                                                                                                                                                     |
| 4.2    | Specimen                Series B Convertible Preferred stock certificate. (8)                                                                                                                                                                                                                                                             |
|   |                                                                                                                                                                                                                                                                                                                                      |
| 10.1   | 1996                Employee Stock Option Plan. (1)                                                                                                                                                                                                                                                                                       |
| 10.2   | 1995                Employee Stock Option Plan. (1)                                                                                                                                                                                                                                                                                       |
| 10.3   | Agreement                for Purchase and Sale of Assets, dated May 14, 1993, between Shells                Seafood Restaurants, Inc. and Shells, Inc. (1)                                                                                                                                                                                |
| 10.4   | 1996                Stock Option Plan for Non-Employee Directors. (2)                                                                                                                                                                                                                                                                     |
| 10.5   | 2002                Equity Incentive Plan, as amended. (7)                                                                                                                                                                                                                                                                                |
| 10.6   | First                Amendment of Agreement and Plan of Merger, dated December 13, 1995,                by and                among Shells Seafood Restaurants, Inc., Shells Seafood Acquisition,                Inc.                and Shells, Inc. (1)                                                                                 |
| 10.7   | Joint                Venture Agreement, dated March 1, 1994, between Shells of Melbourne,                Inc.                and WLH Investments, Inc. (1)                                                                                                                                                                                |
| 10.8   | First                Amendment to Joint Venture Agreement, effective as of March 31, 1995                between Shells of Melbourne, Inc. and WLH Investments, Inc.                (1)                                                                                                                                                   |
| 10.9   | Management                and License Agreement, dated March 1, 1994, between Shells of Melbourne                Joint Venture and Shells Seafood Restaurants, Inc (1)                                                                                                                                                                    |
| 10.10  | Management                and License Agreement, dated July 28, 1993, between Shells of North                Tampa,                Inc. and Shells Seafood Restaurants, Inc., as amended.                (1)                                                                                                                              |
| 10.11  | Management                and License Agreement, dated July 29, 1993, between Shells of Sarasota                South, Inc. and Shells Seafood Restaurants, Inc., as amended.                (1)                                                                                                                                          |
| 10.12  | Amended                Option Agreement, dated August 11, 1995 between Shells Seafood                Restaurants, Inc. and Shells of North Tampa, Inc. (1)                                                                                                                                                                                |
| 10.13  | Amended                Option Agreement, dated August 16, 1995 by and between Shells Seafood                Restaurants, Inc. and Shells of Sarasota South, Inc.                (1)                                                                                                                                                       |
| 10.14  | Agreement                for Consulting and Management Services and Licensing of Service Marks,                dated October 4, 1989 by and between Ursula Collaud and Shells of                Daytona                Beach, Inc., as amended by the Stipulation of Settlement dated December                2,                1994. (1) |
| 10.15  | Form                of Directors Indemnification Agreement.                (1)                                                                                                                                                                                                                                                            |

----

| **Number** |   | **Description** |
|------------|--------|-----------------|

| 10.16 | Agreement                for the purchase and sale of leases, leasehold improvements, restaurant                assets, assigned contracts and restaurant licenses by Shells Seafood                Restaurants, Inc. for the benefit of Islands Florida LP.                (2)       |
|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.17 | Letter                from board of directors, dated January 19, 2000, clarifying severance                arrangement for Warren R. Nelson. (2)                                                                                                                                      |
| 10.18 | Second                Amendment to Management and License Agreement, dated October 4, 2001,                between Shells Seafood Restaurants, Inc. and Shells of Sarasota South,                Inc. (2)                                                                             |
| 10.19 | Second                Amendment to Management and License Agreement, dated October 4, 2001,                between Shells Seafood Restaurants, Inc. and Shells of North Tampa,                Inc.                (2)                                                                 |
| 10.20 | Loan                agreement, dated October 25, 2002, between Shells of Melbourne, Joint                Venture and Colonial Bank (previously known as Manufacturers Bank                of                Florida), in the renewal principal amount of $635,506.                (2) |
| 10.21 | Distribution                Agreement, dated October 20, 2005, between Shells Seafood Restaurants,                Inc. and Performance Food Group, LLC. (3)                                                                                                                           |
| 10.22 | Amendment                to the Non-Employee Director Stock Option Plan, as approved October                23,                2001. (2)                                                                                                                                              |
| 10.23 | Amendment                to the 1995 Employee Stock Option Plan, as approved October 23, 2001.                (2)                                                                                                                                                                     |
| 10.24 | Employment                Agreement, dated July 1, 2003, between Leslie J. Christon and Shells                Seafood Restaurants, Inc. (4)                                                                                                                                           |
| 10.25 | Form                of Stock Purchase Warrant, dated December 7, 2004, in the aggregate                of                1,971,250 warrants to purchase shares of common stock.                (5)                                                                                    |
| 10.26 | Form                of Securities Purchase Agreement dated May 24, 2005, by and among                Shells                Seafood Restaurants, Inc. and the investor parties thereto.                (6)                                                                             |
| 10.27 | Form                of Stock Purchase Warrant, issued in connection with May 24, 2005                financing. (6)                                                                                                                                                                   |
| 10.28 | Form                of Placement Agent Warrant issued to JMP Securities LLC.                (6)                                                                                                                                                                                       |
| 10.29 | Amendment                No. 1 to Loan and Security Agreement, dated as of May 23, 2005.                (6)                                                                                                                                                                           |
| 10.30 | Form                of Stock Option Agreement for Non-Employee Directors Pursuant to                the                Shells Seafood Restaurants, Inc. 2002 Equity Incentive Plan.                (7)                                                                                |
| 10.31 | Form                of Stock Option Agreement for Employees Pursuant to the Shells Seafood                Restaurants, Inc. 2002 Equity Incentive Plan. (7)                                                                                                                           |
| 10.32 | Agreement,                dated August 5, 2005, by and between Shells Seafood Restaurants,                Inc. and                Deborah Christen Corporation regarding the Carrollwood trade area.                (9)                                                               |
| 10.33 | Amendment                No. 1, dated December 20, 2006, by and between Shells Seafood Restaurants,                Inc. and Deborah Christen Corporation. (14)                                                                                                                        |
| 10.34 | Amended                and Restated Employment Agreement, effective as of July 1, 2005,                by and                between Shells Seafood Restaurants, Inc. and Leslie J. Christon.                (10)                                                                     |
| 10.35 | Stock                Option Agreement, dated November 14, 2005, by and between Shells                Seafood                Restaurants, Inc. and Leslie J. Christon. (10)                                                                                                            |
| 10.36 | Amendment                to the 2002 Equity Incentive Plan, dated November 14, 2005.                (10)                                                                                                                                                                              |
| 10.37 | Agreement,                dated March 13, 2006, by and between Shells Seafood Restaurants and                Warrant Nelson. (11)                                                                                                                                                     |
| 10.38 | Agreement,                dated March 13, 2006, by and between Shells Seafood Restaurants and                Guy                Kathman. (11)                                                                                                                                         |

----

| **Number** |   | **Description** |
|------------|--------|-----------------|

| 10.39 | Agreement,                dated March 13, 2006, by and between Shells Seafood Restaurants and                Chris                Ward. (11)                                                                |
|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.40 | Purchase                and Sale Agreement, dated April 17, 2006, between the Shells Seafood                Restaurants and FRI Fish, LLC for the Ocala, Florida location.                (12)              |
| 10.41 | Land                and Building Lease, dated April 17, 2006, between the Shells Seafood                Restaurants and FRI Fish, LLC for the Ocala, Florida location.                (12)                  |
| 10.42 | Purchase                and Sale Agreement, dated October 27, 2006, between the Shells Seafood                Restaurants and FRI Fish, LLC for the New Smyrna Beach, Florida location.                (13) |
| 10.43 | Land                and Building Lease, dated October 27, 2006, between the Shells Seafood                Restaurants and FRI Fish, LLC for the New Smyrna Beach, Florida location.                (13)     |

| 10.45 | Renewal Letter                  on Credit Facility, dated September 28, 2006.                  (15)                                                |
|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.46 | Promissory                  Note, dated December 28, 2005, between Shells Seafood Restaurants,                  Inc.                  and Colonial Bank, N.A (16) |
| 10.47 | Business                  Loan Agreement, dated December 28, 2005, between Shells Seafood                  Restaurants, Inc. and Colonial Bank, N.A (16)          |
| 10.48 | Commercial                  Security Agreement, dated December 28, 2005, between Shells Seafood                  Restaurants, Inc. and Colonial Bank, N.A (16)    |
| 10.49 | Extension                  Letter, dated July 7, 2006, between Shells Seafood Restaurants, Inc.                  and Colonial Bank, N.A (16)                 |
| 10.50 | Amendment                  No. 2 to the Loan and Security Agreement, dated March 30, 2007.                  (17)                                                  |

| 14   | Code                of Business Conduct and Ethics. (2)                             |
|------|-------------------------------------------------------------------------------------|
| 21.1 | Subsidiaries                of the Registrant. (8)                                  |
| 99.1 | Insider                Trading Compliance Policy, adopted February 5, 2007(*)       |
| 99.2 | Audit                Committee Charter, adopted December 22,                2006(*) |

| (*)    | Previously                filed on April 2, 2007 with our Annual Report on Form 10-K.                                                                                                                            |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                             |
| (1)    | Included                as an exhibit to our Registration Statement on Form S-1 and incorporated                herein by reference (File No. 333-1600).                                                         |
| (2)    | Included                as an exhibit to our Annual Report on Form 10-K or 10-K/A for the                fiscal                year ended December 28, 2003 and incorporated herein by                reference. |
| (3)    | Included                as an exhibit to our Annual Report on Form 10-K or 10-K/A for the                fiscal                year ended January 1, 2006 and incorporated herein by                reference.   |
| (4)    | Included                as an exhibit to our Quarterly Report on Form 10-Q for the quarter                ended                June 29, 2003 and incorporated herein by reference.                               |
| (5)    | Included                as an exhibit to our Current Report on Form 8-K dated December 9,                2004 and                incorporated herein by reference.                                               |
| (6)    | Included                as an exhibit to our Current Report on Form 8-K dated May 23, 2005                and                incorporated herein by reference.                                                   |
| (7)    | Included                as an exhibit to our Current Report on Form 8-K dated May 28, 2005                and                incorporated herein by reference.                                                   |
| (8)    | Included                as an exhibit to our Registration Statement on Form S-1 dated July                8, 2005                and incorporated herein by reference.                                           |
| (9)    | Included                as an exhibit to our Current Report on Form 8-K dated August 9, 2005                and                incorporated herein by reference.                                                 |
| (10)   | Included                as an exhibit to our Current Report on Form 8-K dated November 14,                2005                and incorporated herein by reference.                                              |
| (11)   | Included                as an exhibit to our Current Report on Form 8-K dated March 13, 2006                and                incorporated herein by reference.                                                 |
| (12)   | Included                as an exhibit to our Current Report on Form 8-K dated April 21, 2006                and                incorporated herein by reference.                                                 |
| (13)   | Included                as an exhibit to our Current Report on Form 8-K dated November 2,                2006 and                incorporated herein by reference.                                               |
| (14)   | Included                as an exhibit to our Current Report on Form 8-K dated December 21,                2006                and incorporated herein by                reference.                               |

| (15) | Included                  as an exhibit to our Current Report on Form 8-K dated September                  28, 2006                  and incorporated herein by reference.             |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (16) | Included                  as an exhibit to our Current Report on Form 8-K dated July 7, 2006                  and                  incorporated herein by reference.                   |
| (17) | Included                  as an exhibit to our Current Report on Form 8-K dated April 2,                  2007 and                  incorporated herein by                  reference. |

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| (b)    | Exhibits                (currently being filed)                                                   |
|--------|---------------------------------------------------------------------------------------------------|
|   |                                                                                              |
|   | 31.1                                                                                              | Certification                of Chief Executive Officer under Rule 13a-14(a) |
|   | 31.2                                                                                              | Certification                of Chief Financial Officer under Rule 13a-14(a) |
|   | 32                                                                                                | Certification                of Chief Executive Officer and Chief Financial Officer under Section                906 |
|   |                                                                                              |   |
| (c)    | Financial                statement schedules (pursuant to Regulation S-X                14a-3(b)) |

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**SIGNATURES**

| Date:                April 30, 2007                                                                                                                                                                                                                                |  SHELLS                SEAFOOD RESTAURANTS, INC.                                                                                                                                               |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                             |                                                                                                                                                                                           |
|                                                                                                                                                                                                                                                               | By:                /s/ Warren R. Nelson                                                                                                                                         |
|                                                                                                                                                                                                                                                               | Warren                R. NelsonExecutive                Vice President of Finance,Chief                Financial Officer, Treasurer and Secretary (Principal                Financial Officer) |

| **Signature**                                              |   | **Title**                                                                                                                                                       |                          | **Date** |
|------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------|----------|
|                                                       |   |                                                                                                                                                            |                          |
| /s/                Leslie                J. Christon       |   | President,                Chief Executive Officer and Director                 (Principal Executive Officer)                                               | April                30, 2007 |
| Leslie                J. Christon                          |   |
|                                                       |   |
| /s/                Warren                R. Nelson         |   | Executive                Vice President of Finance,Chief                Financial Officer, Treasurer and Secretary (Principal Financial                Officer) | April                30, 2007 |
| Warren                R. Nelson                            |   |
|                                                       |   |
| /s/                 Philip                R. Chapman  |   | Chairman                of the Board                                                                                                                            | April                30, 2007 |
| Philip                R. Chapman                           |   |
|                                                       |   |
| /s/                 Michael                R. Golding |   | Director                                                                                                                                                        | April                30, 2007 |
| Michael                R. Golding                          |   |
|                                                       |   |
| /s/                Gary                L. Herman           |   | Director                                                                                                                                                        | April                30, 2007 |
| Gary                L. Herman                              |   |
|                                                       |   |
| /s/                Christopher                D. Illick    |   | Director                                                                                                                                                        | April                30, 2007 |
| Christopher                D. Illick                       |   |
|                                                       |   |
| /s/                Jay                A. Wolf              |   | Director                                                                                                                                                        | April                30, 2007 |
| Jay                A. Wolf                                 |   |
|                                                       |   |

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