Document:

AMENDMENT
      NO. 3 TO LOAN AND SECURITY AGREEMENT

     

    This
      Amendment No. 3 (“Amendment
      No. 3”)
      to
      that certain Loan and Security Agreement dated as of March 9, 2005, as amended
      by Amendment No. 1, dated May 23, 2005 and Amendment No. 2, dated as of March
      30, 2007 (as amended, the “Agreement”)
      is
      made as of May 20, 2008, 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, 2008 (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, 2009;
      and

     

    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.

     

    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,
      2009 (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). 

     

    
      
         

      

      
        Page
          1 of
          6

        
          

        

      

      
         

      

    

     

    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. 3 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. 3, 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. 

    
       

      
        
           

        

        
          Page
            2 of
            6

          
            

          

        

        
           

        

      

    

    (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. 3, 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. 3 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. 3
      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 Master Fund, Ltd. 

    (f/k/a
      Trinad Capital, LP)

    

    

    By: ____________________________

    Name:

    Title: 

    

     

    
      
         

      

      
        Page 3
          of 6

        
          

        

      

      
         

    

    Bruce
      Galloway, IRA, R/O

    

    By: ____________________________

    Name:

    Title: 

     

    
      
         

      

      
        Page 4
          of 6

        
          

        

      

      
         

    

    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
                Floor

              New
                York, NY 10019

            	
               

              11%

            	
               

              $160,000

            

    

    

    
       

      
        
           

        

        
          Page 5
            of 6

          
            

          

        

        
           

      

    

    EXHIBIT
      B

     

    
      	
              Lender

            	
              Number
                of Shares

            
	
              Fredrick
                R. Adler

              c/o
                Adler & Co.

              750
                Lexington Avenue

              New
                York, NY 10022

            	
              430,769

            
	 	 
	
              Trinad
                Capital, LP

              2121
                Avenue of the Stars, Suite 2550

              Los
                Angeles, CA 90067

            	
              258,462

            
	 	 
	
              Bruce
                Galloway, IRA R/O

              c/o
                Galloway Capital Management, LLC

              720
                Fifth Avenue, 10th
                Floor

              New
                York, NY 10019

            	
              86,154

            

    

    

    
       

      
        
           

        

        
          Page 6
            of 6Exhibit
      10.1

    

      Wits
        Basin Precious Minerals Inc.

      900
        IDS Center

      80
        South 8th Street

      Minneapolis
        MN 55402-8773

      

      May
        20,
        2008

      China
        Gold, LLC

      Attn:
        C.
        Andrew Martin

      7300
        College Blvd., Suite 303

      Overland
        Park, KS 66210 

       

      
        	 	
                Re:

              	
                Extension
                  of Maturity Dates relating to Notes issued pursuant to that certain
                  Convertible Notes Purchase Agreement dated April 10, 2007 by and
                  between
                  Wits Basin Precious Minerals Inc. (“Wits Basin”) and China Gold, LLC
                  (“China Gold”), as amended by (i) that certain Amendment to Convertible
                  Notes Purchase Agreement dated June 19, 2007 and (ii) by that certain
                  Letter Agreement dated October 31, 2007 (as amended, the “Purchase
                  Agreement”) 

              

      

       

      Dear
        Andrew:

       

      With
        respect to (i) that certain Convertible Note of Wits Basin dated April 10,
        2007
        issued in favor of China Gold in the principal amount of $3,000,000 (“Note 1”),
        (ii) that certain Convertible Note of Wits Basin dated May 7, 2007 issued
        in
        favor of China Gold in the principal amount of $2,000,000 (“Note 2”), (iii) that
        certain Convertible Note of Wits Basin dated July 19, 2007 issued in favor
        of
        China Gold in the principal amount of $4,000,000 (“Note 3”), and (iv) that
        certain Convertible Note of Wits Basin dated July 7, 2007 issued in favor
        of
        China Gold in the principal amount of $800,000 (“Note 4”; collectively with Note
        1, Note 2 and Note 3, the “Notes”), this letter is to confirm the agreement of
        Wits Basin and China Gold to further extend the Maturity Date (as defined
        in
        each Note, respectively) applicable to each Note from May 31, 2008 to July
        14,
        2008. 

       

      In
        consideration of China Gold’s agreement to extend such Maturity Dates, Wits
        Basin has agreed to (i) increase the Interest Rate (as defined in each Note,
        respectively) applicable to each of the Notes from the date hereof from 8.25%
        to
        12.25% and (ii) reduce the purchase price applicable to China Gold’s Purchase
        Right (as defined in the Purchase Agreement, Note 3 and Note 4, as applicable)
        to each Note from $0.25 to $0.18 per share.

       

      Except
        with respect to the specific amendments referenced herein, the terms of the
        Notes shall continue to be in full force and effect as set forth in the
        respective Notes. By execution of this letter, China Gold represents that
        it has
        not sold or otherwise transferred its rights under the Notes to any third
        party,
        and further acknowledges that it is required to obtain the prior written
        consent
        of Wits Basin to transfer such rights. 

       

      If
        the
        terms of this letter are consistent with your understanding, please execute
        this
        letter on behalf of China Gold where provided below to confirm your agreement,
        and return it to Wits Basin at 900 IDS Center, 80 South 8th Street, Minneapolis
        Minnesota 55402-8773, Attention: Mark Dacko. 

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      China
        Gold, LLC

      Attn:
        Andrew Martin

      Page
        2

      May
        20,
        2008

       

       

       

      If
        you
        have any questions, please feel free to contact me at (678) 222-0291. Thank
        you.

       

      
        	 	 	
                Sincerely,

              
	 	 	    

	 	 	
                /s/
                  Stephen D. King

              
	 	 	    

	 	 	
                Stephen
                  D. King

              
	 	 	
                Chief
                  Executive Officer

              
	 	 	    

	
                Agreed
                  of the 20th day of May, 2008:

              	 	 
	 	 	 
	
                CHINA
                  GOLD, LLC

              	 	 
	
                By:
                  Pioneer Holdings, LLC

              	 	 
	
                Its:
                  Manager

              	 	 
	    
	 	 
	    
	 	 
	
                /s/
                  C. Andrew Martin

              	 	 
	
                C.
                  Andrew Martin, Manager

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00142-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00142-of-00352.parquet"}]]