Document:

Exhibit
      10.14

    REGISTRATION
      RIGHTS AGREEMENT

     

    This
      Registration Rights Agreement (this “Agreement”)
      is
      made and entered into as of January__________, 2007, among Bio-Bridge Science,
      Inc., a Delaware corporation (the “Company”),
      and
      the purchasers signatory hereto (each such purchaser is a “Purchaser”
and
      all
      such purchasers are, collectively, the “Purchasers”).

     

    This
      Agreement is made pursuant to the Securities Purchase Agreement, dated as of
      the
      date hereof among the Company and the Purchasers (the “Purchase
      Agreement”).

     

    The
      Company and the Purchasers hereby agree as follows:

     

    1.
      Definitions

     

    Capitalized
      terms used and not otherwise defined herein that are defined in the Purchase
      Agreement shall have the meanings given such terms in the Purchase Agreement.
      As
      used in this Agreement, the following terms shall have the following
      meanings:

     

    “Advice”
shall
      have the meaning set forth in Section 6(d).

     

    “Effectiveness
      Date”
means,
      with respect to the initial Registration Statement required to be filed
      hereunder, 120 calendar days after the Filing Date and, with respect to any
      additional Registration Statements which may be required pursuant to Section
      3(c); provided,
      however,
      in the
      event the Company is notified by the Commission that one of the above
      Registration Statements will not be reviewed or is no longer subject to further
      review and comments, the Effectiveness Date as to such Registration Statement
      shall be the seventh Trading Day following the date on which the Company is
      so
      notified if such date precedes the dates required above.

     

    “Effectiveness
      Period”
shall
      have the meaning set forth in Section 2.

     

    “Filing
      Date”
means,
      with respect to the initial Registration Statement required hereunder, the
      60th calendar
      day following the Closing Date and, with respect to any additional Registration
      Statements which may be required pursuant to Section 3(c), the 60th day
      following the date on which the Company first knows, or reasonably should have
      known that such additional Registration Statement is required hereunder.

     

    “Holder”
or
      “Holders”
means
      the holder or holders, as the case may be, from time to time of Registrable
      Securities.

     

    “Indemnified
      Party”
shall
      have the meaning set forth in Section 5(c) hereof.

     

    “Indemnifying
      Party”
shall
      have the meaning set forth in Section 5(c) hereof.

     

    “Losses”
shall
      have the meaning set forth in Section 5(a).

     

    “Proceeding”
means
      an action, claim, suit, investigation or proceeding (including, without
      limitation, an investigation or partial proceeding, such as a deposition),
      whether commenced or threatened.

     

    “Prospectus”
means
      the prospectus included in a Registration Statement (including, without
      limitation, a prospectus that includes any information previously omitted from
      a
      prospectus filed as part of an effective registration statement in reliance
      upon
      Rule 430A promulgated under the Securities Act), as amended or supplemented
      by
      any prospectus supplement, with respect to the terms of the offering of any
      portion of the Registrable Securities covered by a Registration Statement,
      and
      all other amendments and supplements to the Prospectus, including post-effective
      amendments, and all material incorporated by reference or deemed to be
      incorporated by reference in such Prospectus.

     

    “Registrable
      Securities”
means,
      as of the date in question, (i) all of the shares of Common Stock issuable
      upon
      conversion in full of the shares of Preferred Stock, (ii) all Warrant Shares,
      (iii) any securities issued or issuable upon any stock split, dividend or other
      distribution recapitalization or similar event with respect to the foregoing
      and
      (iv) any additional shares issuable in connection with any anti-dilution
      provisions associated with the Preferred Stock and Warrants.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    “Registration
      Statement”
means
      the registration statements required to be filed hereunder and any additional
      registration statements contemplated by Section 3(c), including (in each case)
      the Prospectus, amendments and supplements to such registration statement or
      Prospectus, including pre- and post-effective amendments, all exhibits thereto,
      and all material incorporated by reference or deemed to be incorporated by
      reference in such registration statement.

     

    “Rule
      415”
means
      Rule 415 promulgated by the Commission pursuant to the Securities Act, as such
      Rule may be amended from time to time, or any similar rule or regulation
      hereafter adopted by the Commission having substantially the same purpose and
      effect as such Rule.

     

    “Rule
      424”
means
      Rule 424 promulgated by the Commission pursuant to the Securities Act, as such
      Rule may be amended from time to time, or any similar rule or regulation
      hereafter adopted by the Commission having substantially the same purpose and
      effect as such Rule.

     

    2.
      Shelf
      Registration

     

    On
      or
      prior to each Filing Date, the Company shall prepare and file with the
      Commission a “Shelf” Registration Statement covering the resale of the
      Registrable Securities on such Filing Date for an offering to be made on a
      continuous basis pursuant to Rule 415. The Registration Statement shall be
      on Form S-B2 (except if the Company is not then eligible to register for resale
      the Registrable Securities on Form SB-2, in which case such registration shall
      be on another appropriate form in accordance herewith).  Subject to the
      terms of this Agreement, the Company shall use its commercially reasonable
      efforts to cause the Registration Statement to be declared effective under
      the
      Securities Act as promptly as possible after the filing thereof, and shall
      use
      its commercially reasonable efforts to keep such Registration Statement
      continuously effective under the Securities Act until the earliest of (i) the
      date that is two (2) years after the last day of the calendar month following
      the month in which the relevant Effective Date occurs, (ii) the date when the
      Holder may sell all Registrable Securities under Rule 144 without volume or
      other restrictions or limits or (iii) the date the Holders no longer own any
      of
      the Registrable Securities (the “Effectiveness
      Period”). 
      The Company shall immediately notify the Holders via facsimile or e-mail of
      the
      effectiveness of the Registration Statement within three calendar days that
      the
      Company receives notification of the effectiveness from the
      Commission.

     

    3.
      Registration
      Procedures

     

    In
      connection with the Company’s registration obligations hereunder, the Company
      shall:

     

    (a)
      (i)
      Prepare and file with the Commission such amendments, including post-effective
      amendments, to a Registration Statement and the Prospectus used in connection
      therewith as may be necessary to keep a Registration Statement continuously
      effective as to the applicable Registrable Securities for the Effectiveness
      Period and prepare and file with the Commission such additional Registration
      Statements in order to register for resale under the Securities Act all of
      the
      Registrable Securities; (ii) cause the related Prospectus to be amended or
      supplemented by any required Prospectus supplement (subject to the terms of
      this
      Agreement), and as so supplemented or amended to be filed pursuant to Rule
      424;
      (iii) respond as promptly as reasonably possible to any comments received from
      the Commission with respect to a Registration Statement or any amendment
      thereto; and (iv) comply in all material respects with the provisions of the
      Securities Act and the Exchange Act with respect to the disposition of all
      Registrable Securities covered by a Registration Statement during the applicable
      period in accordance (subject to the terms of this Agreement) with the intended
      methods of disposition by the Holders thereof set forth in such Registration
      Statement as so amended or in such Prospectus as so supplemented.

     

    (b)
      If
      during the Effectiveness Period, the number of Registrable Securities at any
      time exceeds the number of shares of Common Stock then registered in a
      Registration Statement, then the Company shall file as soon as reasonably
      practicable but in any case prior to the applicable Filing Date, an additional
      Registration Statement covering the resale by the Holders of such additional
      Registrable Securities.

     

    (c)
      Use
      its commercially reasonable efforts to avoid the issuance of, or, if issued,
      obtain the withdrawal of (i) any order suspending the effectiveness of a
      Registration Statement, or (ii) any suspension of the qualification (or
      exemption from qualification) of any of the Registrable Securities for sale
      in
      any jurisdiction, at the earliest practicable moment.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

     (d)
      Promptly deliver to each Holder, without charge, some copies of the Prospectus
      or Prospectuses (including each form of prospectus) and each amendment or
      supplement thereto as such Persons may reasonably request in connection with
      resales by the Holder of Registrable Securities.  Subject to the terms of
      this Agreement, the Company hereby consents to the use of such Prospectus and
      each amendment or supplement thereto by each of the selling Holders in
      connection with the offering and sale of the Registrable Securities covered
      by
      such Prospectus and any amendment or supplement thereto, 

     

    (e)
      Prior
      to any resale of Registrable Securities by a Holder, use its commercially
      reasonable efforts to register or qualify or cooperate with the selling Holders
      in connection with the registration or qualification (or exemption from the
      Registration or qualification) of such Registrable Securities for the resale
      by
      the Holder under the securities or Blue Sky laws of such jurisdictions within
      the United States as any Holder reasonably requests in writing, to keep each
      registration or qualification (or exemption therefrom) effective during the
      Effectiveness Period and to do any and all other acts or things reasonably
      necessary to enable the disposition in such jurisdictions of the Registrable
      Securities covered by each Registration Statement; provided, that the Company
      shall not be required to qualify generally to do business in any jurisdiction
      where it is not then so qualified, subject the Company to any material tax
      in
      any such jurisdiction where it is not then so subject or file a general consent
      to service of process in any such jurisdiction.

     

    (f)
      If
      requested by the Holders, cooperate with the Holders to facilitate the timely
      preparation and delivery of certificates representing Registrable Securities
      to
      be delivered to a transferee pursuant to a Registration Statement, which
      certificates shall be free, to the extent permitted by the Purchase Agreement,
      of all restrictive legends, and to enable such Registrable Securities to be
      in
      such denominations and registered in such names as any such Holders may
      request.

     

    (g)
      Comply with all applicable rules and regulations of the Commission.

     

    (h)
      The
      Company may require each selling Holder to furnish to the Company a certified
      statement as to the number of shares of Common Stock beneficially owned by
      such
      Holder and, if required by the Commission, the person thereof that has voting
      and dispositive control over the Shares. During any periods that the Company
      is
      unable to meet its obligations hereunder with respect to the registration of
      the
      Registrable Securities solely because any Holder fails to furnish such
      information within five Trading Days of the Company’s request, any liquidated
      damages that are accruing at such time as to such Holder only shall be tolled
      and any Event that may otherwise occur solely because of such delay shall be
      suspended as to such Holder only, until such information is delivered to the
      Company.

     

    4.
      Registration
      Expenses.
      All
      fees and expenses incident to the performance of or compliance with this
      Agreement by the Company shall be borne by the Company whether or not any
      Registrable Securities are sold pursuant to the Registration Statement. The
      fees
      and expenses referred to in the foregoing sentence shall include, without
      limitation, (i) all registration and filing fees (including, without limitation,
      fees and expenses (A) with respect to filings required to be made with the
      Trading Market on which the Common Stock is then listed for trading, and (B)
      in
      compliance with applicable state securities or Blue Sky laws reasonably agreed
      to by the Company in writing (including, without limitation, fees and
      disbursements of counsel for the Company in connection with Blue Sky
      qualifications or exemptions of the Registrable Securities and determination
      of
      the eligibility of the Registrable Securities for investment under the laws
      of
      such jurisdictions as requested by the Holders), (ii) printing expenses
      (including, without limitation, expenses of printing certificates for
      Registrable Securities), (iii)
      fees
      and disbursements of counsel for the Company, (iv)
      Securities Act liability insurance, if the Company so desires such insurance,
      and (v) fees and expenses of all other Persons retained by the Company in
      connection with the consummation of the transactions contemplated by this
      Agreement.  In addition, the Company shall be responsible for all of its
      internal expenses incurred in connection with the consummation of the
      transactions contemplated by this Agreement (including, without limitation,
      all
      salaries and expenses of its officers and employees performing legal or
      accounting duties), the expense of any annual audit and the fees and expenses
      incurred in connection with the listing of the Registrable Securities on any
      securities exchange as required hereunder.  In no event shall the Company
      be responsible for any broker or similar commissions or any legal fees or other
      costs of the Holders.

     

    5.
      Indemnification

     

    (a)
      Indemnification
      by the Company.
      The
      Company shall, notwithstanding any termination of this Agreement, indemnify
      and
      hold harmless each Holder, the officers, directors, agents and employees of
      each
      of them, each Person who controls any such Holder (within the meaning of Section
      15 of the Securities Act or Section 20 of the Exchange Act) and the officers,
      directors, agents and employees of each such controlling Person, to the fullest
      extent permitted by applicable law, from and against any and all losses, claims,
      damages, liabilities, costs (including, without limitation, reasonable
      attorneys’ fees) and expenses (collectively, “Losses”),
      as
      incurred, arising out of or relating to any untrue or alleged untrue statement
      of a material fact contained in a Registration Statement, any Prospectus or
      any
      form of prospectus or in any amendment or supplement thereto , or arising out
      of
      or relating to any omission or alleged omission of a material fact required
      to
      be stated therein or necessary to make the statements therein (in the case
      of
      any Prospectus or form of prospectus or supplement thereto, in light of the
      circumstances under which they were made) not misleading, except to the extent,
      but only to the extent, that such untrue statements or omissions are based
      solely upon information regarding such Holder furnished in writing to the
      Company by such Holder expressly for use therein, or to the extent that such
      information relates to such Holder or such Holder’s proposed method of
      distribution of Registrable Securities and was reviewed and expressly approved
      in writing by such Holder expressly for use in a Registration Statement, such
      Prospectus or such form of Prospectus or in any amendment or supplement
      thereto.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    (b)
      Indemnification
      by Holders.
      Each
      Holder shall, severally and not jointly, indemnify and hold harmless the
      Company, its directors, officers, agents and employees, each Person who controls
      the Company (within the meaning of Section 15 of the Securities Act and Section
      20 of the Exchange Act), and the directors, officers, agents or employees of
      such controlling Persons, to the fullest extent permitted by applicable law,
      from and against all Losses, as incurred, to the extent arising out of or based
      solely upon: (a) such Holder’s failure to comply with the prospectus delivery
      requirements of the Securities Act or (b) any untrue or alleged untrue statement
      of a material fact contained in any Registration Statement, any Prospectus,
      or
      any form of prospectus, or in any amendment or supplement thereto or in any
      preliminary prospectus, or arising out of or relating to any omission or alleged
      omission of a material fact required to be stated therein or necessary to make
      the statements therein not misleading (i) to the extent, but only to the extent,
      that such untrue statement or omission is contained in any information so
      furnished in writing by such Holder to the Company specifically for inclusion
      in
      such Registration Statement or such Prospectus or (ii) to the extent that such
      untrue statements or omissions are based solely upon information regarding
      such
      Holder furnished in writing to the Company by such Holder expressly for use
      therein, or to the extent that such information relates to such Holder or such
      Holder’s proposed method of distribution of Registrable Securities and was
      reviewed by such Holder expressly for use in the Registration Statement , such
      Prospectus or such form of Prospectus or in any amendment or supplement thereto.
      In no event shall the liability of any selling Holder hereunder be greater
      in
      amount than the dollar amount of the net proceeds received by such Holder upon
      the sale of the Registrable Securities giving rise to such indemnification
      obligation.

     

    (c)
      Conduct
      of Indemnification Proceedings.
      If any
      Proceeding shall be brought or asserted against any Person entitled to indemnity
      hereunder (an “Indemnified
      Party”),
      such Indemnified Party shall promptly notify the Person from whom indemnity
      is
      sought (the “Indemnifying
      Party”)
      in
      writing, and the Indemnifying Party shall have the right to assume the defense
      thereof, including the employment of counsel reasonably satisfactory to the
      Indemnified Party and the payment of all fees and expenses incurred in
      connection with defense thereof; provided, that the failure of any Indemnified
      Party to give such notice shall not relieve the Indemnifying Party of its
      obligations or liabilities pursuant to this Agreement, except (and only) to
      the
      extent that it shall be finally determined by a court of competent jurisdiction
      (which determination is not subject to appeal or further review) that such
      failure shall have prejudiced the Indemnifying Party.

     

    An
      Indemnified Party shall have the right to employ separate counsel in any such
      Proceeding and to participate in the defense thereof, but the fees and expenses
      of such counsel shall be at the expense of such Indemnified Party or Parties
      unless:  (1) the Indemnifying Party has agreed in writing to pay such fees
      and expenses; (2) the Indemnifying Party shall have failed promptly to assume
      the defense of such Proceeding and to employ counsel reasonably satisfactory
      to
      such Indemnified Party in any such Proceeding; or (3) the named parties to
      any
      such Proceeding (including any impleaded parties) include both such Indemnified
      Party and the Indemnifying Party, and such Indemnified Party shall reasonably
      believe that a material conflict of interest is likely to exist if the same
      counsel were to represent such Indemnified Party and the Indemnifying Party
      (in
      which case, if such Indemnified Party notifies the Indemnifying Party in writing
      that it elects to employ separate counsel at the expense of the Indemnifying
      Party, the Indemnifying Party shall not have the right to assume the defense
      thereof and the reasonable fees and expenses of one separate counsel shall
      be at
      the expense of the Indemnifying Party).  The Indemnifying Party shall not
      be liable for any settlement of any such Proceeding effected without its written
      consent, which consent shall not be unreasonably withheld.  No Indemnifying
      Party shall, without the prior written consent of the Indemnified Party, effect
      any settlement of any pending Proceeding in respect of which any Indemnified
      Party is a party, unless such settlement includes an unconditional release
      of
      such Indemnified Party from all liability on claims that are the subject matter
      of such Proceeding.

     

    6.
      Reports
      Under Exchange Act. 
      With a view to making available to the Holder the benefits of Rule 144
      promulgated under the Securities Act and any other rule or regulation of the
      SEC
      that may at any time permit a Holder to sell Registrable Shares of the Company
      to the public without registration, the Company agrees to:

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    
      	
            	(a)	
              Make
                and keep public information available, as those terms are used in
                SEC Rule
                144, at all times;

            

    

     

    
      	
            	(b)	
              File
                with the SEC in a timely manner all reports and other documents required
                of the Company under the Securities Act and the Exchange Act;
                and

            

    

     

    
      	
            	(c)	
              Undertake
                any additional actions reasonably necessary to maintain the availability
                of the use of Rule 144.

            

    

     

    7.
      Miscellaneous

     

    (a)
      Remedies. 
      In the event of a breach by the Company or by a Holder, of any of their
      obligations under this Agreement, each other Holder or the Company, as the
      case
      may be, in addition to being entitled to exercise all rights granted by law
      and
      under this Agreement, including recovery of damages, will be entitled to
      specific performance of its rights under this Agreement.  The Company and
      each Holder agree that monetary damages would not provide adequate compensation
      for any losses incurred by reason of a breach by it of any of the provisions
      of
      this Agreement and hereby further agrees that, in the event of any action for
      specific performance in respect of such breach, it shall waive the defense
      that
      a remedy at law would be adequate.

     

    (b)
      Compliance.
      Each
      Holder, severally and not jointly, covenants and agrees that it will comply
      with
      the prospectus delivery requirements of the Securities Act as applicable to
      it
      in connection with sales of Registrable Securities pursuant to the Registration
      Statement.

     

    (c)
      Discontinued
      Disposition.
      Each
      Holder, severally and not jointly, agrees by its acquisition of such Registrable
      Securities that, upon receipt of a notice from the Company of the occurrence
      of
      any event of the kind described in Section 3(c), such Holder will forthwith
      discontinue disposition of such Registrable Securities under a Registration
      Statement until such Holder’s receipt of the copies of the supplemented
      Prospectus and/or amended Registration Statement, or until it is advised in
      writing (the “Advice”)
      by the
      Company that the use of the applicable Prospectus may be resumed, and, in either
      case, has received copies of any additional or supplemental filings that are
      incorporated or deemed to be incorporated by reference in such Prospectus or
      Registration Statement.  The Company will use its commercially reasonable
      efforts to ensure that the use of the Prospectus may be resumed as promptly
      as
      it practicable.  The Company agrees and acknowledges that any periods
      during which the Holder is required to discontinue the disposition of the
      Registrable Securities hereunder shall be subject to the provisions of Section
      2(b).

     

    (d)
      Amendments
      and Waivers.
      The
      provisions of this Agreement may not be amended, modified or supplemented,
      and
      waivers or consents to departures from the provisions hereof may not be given,
      unless the same shall be in writing and signed by the Company and each Holder
      of
      the then outstanding Registrable Securities.  Notwithstanding the
      foregoing, a waiver or consent to depart from the provisions hereof with respect
      to a matter that relates exclusively to the rights of Holders and that does
      not
      directly or indirectly affect the rights of other Holders may be given by
      Holders of all of the Registrable Securities to which such waiver or consent
      relates; provided,
      however,
      that
      the provisions of this sentence may not be amended, modified, or supplemented
      except in accordance with the provisions of the immediately preceding
      sentence.

     

    (e)
      Notices.
      Any and
      all notices or other communications or deliveries required or permitted to
      be
      provided hereunder shall be delivered as set forth in the Purchase
      Agreement.

     

    (f)
      Successors
      and Assigns.
      This
      Agreement shall inure to the benefit of and be binding upon the successors
      and
      permitted assigns of each of the parties and shall inure to the benefit of
      each
      Holder. The Company may not assign its rights or obligations hereunder without
      the prior written consent of all of the Holders of the then-outstanding
      Registrable Securities. Each Holder may assign their respective rights hereunder
      in the manner and to the Persons as permitted under the Purchase
      Agreement.

     

    (g)
      No
      Inconsistent Agreements.
      Neither
      the Company nor any of its subsidiaries has entered, as of the date hereof,
      nor
      shall the Company or any of its subsidiaries, on or after the date of this
      Agreement, enter into any agreement with respect to its securities, that would
      have the effect of impairing the rights granted to the Holders in this Agreement
      or otherwise conflicts with the provisions hereof.  

     

    (h)
      Execution
      and Counterparts.
      This
      Agreement may be executed in any number of counterparts, each of which when
      so
      executed shall be deemed to be an original and, all of which taken together
      shall constitute one and the same Agreement. In the event that any signature
      is
      delivered by facsimile transmission, such signature shall create a valid binding
      obligation of the party executing (or on whose behalf such signature is executed
      the same with the same force and effect as if such facsimile signature were
      the
      original thereof).

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    (i)
      Governing
      Law. 
      All questions concerning the construction, validity, enforcement and
      interpretation of this Agreement shall be determined with the provisions of
      the
      Purchase Agreement.

     

    (j)
      Cumulative
      Remedies.
      The
      remedies provided herein are cumulative and not exclusive of any remedies
      provided by law.

     

    (k)
      Severability.
      If any
      term, provision, covenant or restriction of this Agreement is held by a court
      of
      competent jurisdiction to be invalid, illegal, void or unenforceable, the
      remainder of the terms, provisions, covenants and restrictions set forth herein
      shall remain in full force and effect and shall in no way be affected, impaired
      or invalidated, and the parties hereto shall use their commercially reasonable
      efforts to find and employ an alternative means to achieve the same or
      substantially the same result as that contemplated by such term, provision,
      covenant or restriction. It is hereby stipulated and declared to be the
      intention of the parties that they would have executed the remaining terms,
      provisions, covenants and restrictions without including any of such that may
      be
      hereafter declared invalid, illegal, void or unenforceable.

     

    (l)
      Headings.
      The
      headings in this Agreement are for convenience of reference only and shall
      not
      limit or otherwise affect the meaning hereof.

     

    (m)
      Independent
      Nature of Holders’ Obligations and Rights.
      The
      obligations of each Holder hereunder are several and not joint with the
      obligations of any other Holder hereunder, and no Holder shall be responsible
      in
      any way for the performance of the obligations of any other Holder hereunder.
      Nothing contained herein or in any other agreement or document delivered at
      any
      closing, and no action taken by any Holder pursuant hereto or thereto, shall
      be
      deemed to constitute the Holders as a partnership, an association, a joint
      venture or any other kind of entity, or create a presumption that the Holders
      are in any way acting in concert with respect to such obligations or the
      transactions contemplated by this Agreement. Each Holder shall be entitled
      to
      protect and enforce its rights, including without limitation the rights arising
      out of this Agreement, and it shall not be necessary for any other Holder to
      be
      joined as an additional party in any proceeding for such purpose.

     

    
      
        
        

      

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

     

     

    
      	 	
              BIO-BRIDGE
                SCIENCE, INC.

            
	
               

            	
               

            
	
               

            	
               

            
	
               

            	
              By:

            	
               

            
	
               

            	
               

            	
              Name:
                Liang Qiao, MD

            
	
               

            	
               

            	
              Title:
                Chairman & Chief Executive
                Officer

            

    

     

     

    [SIGNATURE
      PAGE OF HOLDERS FOLLOWS]

     

    
      
        
        

      

      
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    [PURCHASER’S
      SIGNATURE PAGE]

     

     

    
      
        
          	
                  Name
                    of Investing Entity:

                	 
	
                  Signature
                    of Authorized Signatory of Investing Entity:

                	 
	
                  Name
                    of Authorized Signatory:

                	 
	
                  Title
                    of Authorized Signatory:

                	 

        

      

       

    

     

    [SIGNATURE
      PAGES CONTINUE]

     

    
      
        
        

      

      
        8Unassociated Document

     

    AMENDMENT
      NO. 2 TO LOAN AND SECURITY AGREEMENT

     

    This
      Amendment No. 2 (“Amendment
      No. 2”)
      to
      that certain Loan and Security Agreement dated as of March 9, 2005, as amended
      by Amendment No. 1, dated May 23, 2005 (as amended, the “Agreement”)
      is
      made as of March 30, 2007, by and among Shells Seafood Restaurants, Inc., a
      Delaware corporation (the “Company”),
      and
      the Lenders (as defined in the Agreement) parties thereto. Capitalized terms
      not
      herein defined shall have the meaning given to them in the
      Agreement.

     

    WHEREAS,
      the Agreement expires, subject to certain exceptions set forth therein, on
      May
      23, 2007 (the “Maturity
      Date”);
      

     

    WHEREAS,
      the parties to the Agreement desire to provide for the extension of the
      Agreement for an additional one (1) year such that it expires on May 23, 2008;
      

     

    WHEREAS,
      as consideration for the extension the Agreement the Company desires to pay
      the
      Lenders an aggregate $100,800 in shares of the Company’s unregistered common
      stock based upon the fair market value of the Shares on the date hereof;
      and

     

    WHEREAS,
      the parties have renegotiated the commitment amount of Bruce Galloway, IRA
      R/O
      to reduce such amount from $320,000 to $160,000 and desire to amend the
      Agreement to reflect such renegotiation. 

     

    NOW,
      THEREFORE, in consideration of the premises and other good and valuable
      consideration, the parties hereby agree as follows:

     

    1.  Amendment
      to Section 1.
      Section
      1 of the Agreement is hereby amended and restated in its entirety as
      follows:

     

    1.
      AMOUNT.
      The
      Lenders agree, on the terms and conditions of this Agreement, to make loans
      (hereinafter called individually a “Loan” and, collectively, “the Loans”) to the
      Company in an aggregate principal amount at any one time outstanding up to
      but
      not exceeding One Million Four Hundred Forty Thousand Dollars ($1,440,000);
      provided, however that each Loan request by the Company to the Lenders, in
      the
      aggregate, shall be in increments of $200,000, and each individual Lender is
      committing to make Loans only up to the aggregate principal amount set forth
      opposite such Lenders’ name on Exhibit A hereto. The obligation of a Lender to
      make loans up to but not exceeding such aggregate principal amount at any one
      time outstanding is hereinafter called its “commitment.” Within such limits, the
      Company may borrow, repay, and reborrow funds under this revolving credit line,
      at any time or from time to time from the date hereof to and including May
      23,
      2008 (the “Maturity Date”), subject to earlier termination of the commitment of
      the Lenders in accordance herewith. All Loans shall be made by, and repayments
      (if any) made to, each of the Lenders, in proportion to the percentage interest
      set forth opposite such Lenders’ name on Exhibit A hereto; and shall be repaid,
      to the extent then still outstanding, on the Maturity Date (subject to earlier
      repayment as provided
      in Section 4 below). 

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    2.  Consideration.
      On the
      date hereof the Company shall, as consideration for the extension of the
      Agreement, pay the Lenders an aggregate of $100,800 in shares of the Company’s
      unregistered common stock (the “Shares”)
      based
      upon the fair market value of the Shares on the date hereof. Each Lender shall
      receive that number of Shares as is set forth opposite such Lenders’ name on
      Exhibit B hereto.

     

    3.  Lender
      Representations.
      Each
      Lender hereby represents and warrants to the Company, severally and not jointly,
      that:

     

    (i) The
      Lender is an accredited investor as defined in Rule 501(a) of Regulation D
      promulgated under the Securities Act of 1933, as amended (the “Securities
      Act”).

     

    (ii) The
      Lender understands that the Shares have not been, and will not be, registered
      under the Securities Act, and are being offered by reason of a specific
      exemption from the registration provisions of the Securities Act which depends
      upon, among other things, the bona fide nature of the investment intent and
      the
      accuracy of the Lender’s representations as expressed herein. The Lender
      understands that the Shares are “restricted securities” under applicable U.S.
      federal and state securities laws and that, pursuant to these laws, the Lender
      must hold the Shares
      indefinitely unless they are registered with the SEC and qualified by state
      authorities, or an exemption from such registration and qualification
      requirements is available. Each Lender is aware of the provisions of Rule 144
      promulgated under the Securities Act which permits limited resale of securities
      purchased in a private placement subject to the satisfaction of certain
      conditions including, among other things, the availability of certain current
      public information about the Company and compliance with applicable requirements
      regarding the holding period, the amount of securities to be sold and the manner
      of sale. The Lender acknowledges that the Company has no obligation to register
      or qualify the Shares for resale. 

     

    (iii) The
      Lender understands that the Shares and any securities issued in respect of
      or
      exchange for the Shares, shall bear the following legend:

     

    “THE
      SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
      SECURITIES ACT OF 1933, AND HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH
      A
      VIEW TO, OR IN CONNECTION WITH, THE SALE OR DISTRIBUTION THEREOF. NO SUCH
      TRANSFER MAY BE EFFECTED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT RELATED
      THERETO OR AN OPINION OF COUNSEL IN A FORM SATISFACTORY TO THE COMPANY THAT
      SUCH
      REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT OF 1933.”

     

    (iv) This
      Amendment No. 2 is made with the Lender in reliance upon the Lender’s
      representation to the Company, which by the Lender’s execution of this Amendment
      No. 2, the Lender hereby confirms, that the Shares to be acquired by the Lender
      will be acquired for investment for the Lender’s own account, not as a nominee
      or agent, and not with a view to the resale or distribution of any part thereof,
      and that the Lender has no present intention of selling, granting any
      participation in, or otherwise distributing the same. 

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (v) Neither
      the Lender, nor any of its officers, directors, employees, agents, stockholders
      or partners has either directly or indirectly, including through a broker or
      finder (a) engaged in any general solicitation, or (b) published any
      advertisement in connection with the offer and sale of the Shares. 

     

    4.  Entire
      Agreement.
      This
      Amendment No. 2, together with the provisions of the Agreement not amended
      hereby, constitute the entire agreement between the parties hereto with respect
      to the subject matter hereof and supersede all other prior agreements, whether
      written or oral, between the parties hereto.

     

    5.  Counterparts.
      This
      Amendment No. 2 may be executed in one or more counterparts, each of which
      shall
      be deemed an original and all of which together shall constitute one and the
      same document.

     

    

     

    IN
      WITNESS WHEREOF, each of the parties hereto has caused this Amendment No. 2
      to
      be executed as of the date first above written.

    

    

    SHELLS
      SEAFOOD RESTAURANTS, INC.

    

    By: ____________________________

    Name: Warren
      R.
      Nelson

    Title: Chief
      Financial Officer

    

    

    Frederick
      R. Adler

    

    By: _____________________________

    Frederick
      R. Adler

    

    Trinad
      Capital, LP

    

    By: _____________________________

    Name:

    Title: 

    

    Bruce
      Galloway, IRA, R/O

    

    By: _____________________________

    Name:

    Title: 

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    EXHIBIT
      A

    

     

    
      	
              Lender

               

            	
              %
                Interest of Loans Made

               

            	
              Aggregate
                $ Commitment

               

            
	
              Fredrick
                R. Adler

              c/o
                Adler & Co.

              750
                Lexington Avenue

              New
                York, NY 10022

            	
               

               

              56%

               

            	
               

               

              $800,000

               

            
	
              Trinad
                Capital, LP

              2121
                Avenue of the Stars Suite 2550

              Los
                Angeles, CA 90067

               

            	
              33%

               

            	
              $480,000

               

            
	
              Bruce
                Galloway, IRA R/O

              c/o
                Galloway Capital Management, LLC

              720
                Fifth Avenue, 10th
                Fl

              New
                York, NY 10019

               

            	
              11%

               

            	
              $160,000

               

            

    

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    EXHIBIT
      B

     

    
      	
              Lender

               

            	
              Number
                of Shares

               

            
	
              Fredrick
                R. Adler

              c/o
                Adler & Co.

              750
                Lexington Avenue

              New
                York, NY 10022

            	
               

               

              124,444

               

            
	
              Trinad
                Capital, LP

              2121
                Avenue of the Stars, St. 2550

              Los
                Angeles, CA 90067

               

            	
               

               

              74,667

               

            
	
              Bruce
                Galloway, IRA R/O

              c/o
                Galloway Capital Management, LLC

              720
                Fifth Avenue, 10th
                floor

              New
                York, NY 10019

               

            	
               

               

              24,889

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