Document:

Unassociated Document

     

    Exhibit
      10.1

     

    EMPLOYMENT
      AGREEMENT

     

     

    Amended
      and Restated AGREEMENT made as of the 10th day of August, 2007, by and between
      Interactive Systems Worldwide Inc., a Delaware corporation (the “Corporation”),
      and Bernard Albanese (“Employee”).

     

    WITNESSETH:

     

    WHEREAS,
      the Corporation is in the business of developing, producing, marketing,
      licensing and servicing computerized sports wagering and related software and
      systems;

     

    WHEREAS,
      the Corporation desires to continue to employ Employee as its Chief Executive
      Officer, President and Employee desires to serve the Corporation in such
      capacity; and

     

    WHEREAS,
      the Corporation desires to provide certain benefits to the Employee upon
      termination of this Agreement, as herein provided; and

     

    WHEREAS,
      the parties entered into an Employment Agreement dated as of June 19, 2007
      and
      desire to amend and restate the terms thereof.

     

    NOW,
      THEREFORE, in consideration of the mutual promises herein contained, the parties
      hereto agree as follows:

     

    1. EMPLOYMENT.
      Subject
      to the terms and conditions herein contained, the Corporation hereby employs
      Employee as its Chief Executive Officer and President and Employee hereby agrees
      to serve the Corporation in such capacity.

     

    2. DUTIES.

     

    2.1. Employee
      agrees, during the “Term” (as hereinafter defined), to devote his full business
      attention and best efforts to the business of the Corporation and to perform
      such duties of an executive and administrative nature as the Board or Board
      of
      Directors of the Corporation, acting reasonably, shall assign or direct (i)
      consistent with his status and position as Chief Executive Officer and President
      including, without limitation, such duties as would typically be performed
      by
      persons holding similar positions in other companies, and (ii) such other duties
      of a managerial nature relating to operations, finance, personnel or
      support.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    2.2. Employee
      shall conduct himself at all times in a manner consistent with his position
      with
      the Corporation.

     

    3. TERM.

     

    3.1. The
      term
      of Employee’s employment (the “Term”) pursuant to this Agreement shall commence
      on July 1, 2007 and terminate on June 30, 2008; provided that this Agreement
      shall be subject to earlier termination only (i) in the event of Employee’s
      death; (ii) at the option of the Corporation, in the event of Employee’s
“disability” (as hereinafter defined) for 90 consecutive working days or an
      aggregate of 120 working days during any consecutive six month period during
      the
      Term; (iii) for cause; (iv) on 60 days prior written notice by either the
      Employee or the Corporation to the other; or (v) as provided in Sections 3.3
      or
      7.

     

    3.2. For
      the
      purpose of this Agreement, “disability” shall mean any injury or any physical or
      mental condition or illness which shall render Employee unable to perform his
      duties in accordance with this Agreement.

     

    3.3. Notwithstanding
      anything to the contrary herein provided, the Employee shall have the right
      to
      retire from his employment with the Corporation by giving the Corporation not
      less than 60 days prior written notice. Upon the effective date of Employee’s
      retirement, Employee shall be entitled to the benefits referred to in Article
      6.

     

    4. COMPENSATION
      AND BENEFITS.
      As
      compensation for all services to be rendered by Employee to the Corporation
      and
      its subsidiaries in all capacities, the Corporation shall pay to Employee during
      the Term, a minimum of the following, payable in accordance with the standard
      payroll practice of the Corporation:

     

    4.1. The
      Employee shall receive a base salary of not less than $240,000 per annum (the
      “Base Salary”).

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

    

    4.2. In
      addition to the Base Salary, during the Term the Employee shall be entitled
      to
      receive incentive compensation as follows: Provided that Employee’s employment
      with the Corporation has not terminated pursuant to Section 3.1(iii), or Section
      7, for each $1 million of revenue realized by the Corporation and its
      subsidiaries on a consolidated basis, as determined in accordance with generally
      accepted accounting principles applied on a consistent basis (“Revenue”), the
      Employee shall be entitled to a bonus of $30,000 up to a maximum bonus of
      $120,000 if the Corporation realized Revenue of $4,000,000 during the
      Term.

     

    Commencing
      with the Corporation’s quarter ending September 30, 2007 and with each of the
      next three quarters through June 30, 2008, the Corporation will determine
      whether the Corporation’s Revenue as of the end of such quarter meets or exceeds
      the Revenue set forth above. If any such Revenue thresholds are met, the
      Employee shall be paid the applicable Bonus promptly after the determination
      that such Revenue threshold has been met.

     

    4.3. In
      addition, Employee shall be entitled to receive (a) such salary increases,
      bonuses or other incentive compensation as may be approved by the Board of
      Directors; (b) four weeks vacation during each year of the Term; (c) health
      insurance and life insurance substantially similar to that provided to Employee
      in the past and not less than those provided by the Corporation to its other
      executive employees; (d) such other fringe benefits as the Corporation may
      provide to its employees; and (e) at the Corporation’s expense, the use of a
      leased automobile plus payment of all expenses of operating such automobile,
      including but not limited to insurance and maintenance costs.

     

    4.4. In
      the
      event that during the Term, the Employee’s employment is terminated as provided
      in Section 3.1(i) (ii), (iv), or in Section 7, the Corporation shall (i)
      continue to pay to the Employee of all benefits described in Sections 4.3 and
      9
      until the end of the Term; and (ii) pay to the Employee the Severance
      Benefits described in Section 6. In addition, in the event that during the
      Term,
      the Employee’s employment is terminated in accordance with Section 3.1(i), (ii)
      or (iv) (but in the case of Section 3(iv) only if such employment is terminated
      by the Corporation), or Section 7, the bonus to which the Employee shall be
      entitled as provided in Section 4.2, shall be prorated in the following manner.
      The revenue realized by the Corporation and its subsidiaries on a consolidated
      basis from July 1, 2007 through the last day of the calendar month immediately
      following the termination date of Employee’s employment with the Corporation
      shall be annualized (“Annualized Revenue”). To the extent that the Annualized
      Revenue realized by the Corporation exceeds $1 million, the Employee shall
      be
      paid a bonus equal to $30,000 for each $1 million of Annualized Revenue. For
      example if the Employee’s employment was terminated on December 15, 2007, and
      for the period from July 1, 2007 through December 31, 2007 revenue realized
      by
      the Corporation was $600,000, the Annualized Revenue would be $1,200,000 and
      the
      Employee’s bonus would be $30,000. The maximum bonus to which the Employee shall
      be entitled shall be as provided in Section 4.2.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    5. INTENTIONALLY
      OMITTED.

     

    6. SEVERANCE
      BENEFITS.

     

    6.1. Upon
      (a)
      expiration or termination of the Term of this Agreement as provided in Section
      3.1, other than for cause, (b) voluntary termination of Employee’s employment by
      the Employee, or retirement of the Employee as provided in Section 3.3, or
      (c)
      if a new agreement is not entered into by Employee and the Corporation on the
      terms and conditions described in Section 7.1, the Corporation shall pay to
      the
      Employee (or the Employee’s personal representative if the Agreement is
      terminated as a result of the Employee’s death), the following severance
      benefits (collectively the “Severance Benefits”) for a period of one year after
      such termination:

     

    (a) An
      amount
      equal to $300,000, payable in a lump sum on the date of such expiration,
      retirement or termination; and

     

    (b) Continuation
      of the benefits provided in Section 4.3(c), (d), and Section 9, for a period
      of
      one year after the date of such expiration, retirement or
      termination.

     

    6.2. In
      addition, the Corporation shall continue to provide the Employee with the
      benefits described in Section 4.3(e) for the remainder of the term of the lease
      of the leased automobile that was provided to the Employee on the date of
      termination of his Agreement.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    7. NON-RENEWAL
      OF EMPLOYMENT AGREEMENT; DEATH OR DISABILITY.

     

    7.1. In
      the
      event that at the end of the Term of this Agreement, a new employment agreement
      is not entered into on terms and conditions at least as beneficial to the
      Employee as each of the terms and conditions contained in the Agreement dated
      as
      of June 19, 2007 prior to this Amendment and Restatement, and the Employee’s
      employment with the Corporation is terminated by the Corporation, other than
      for
      cause, or by the Employee, in his discretion, the Corporation shall pay to
      the
      Employee the Severance Benefits described in Section 6.

     

    7.2. In
      the
      event this Agreement is terminated as a result of the death or disability of
      the
      Employee during the Term or, after the end of the Term while the Employee is
      still employed by the Corporation on an at-will basis, the Employee or his
      personal representative, as the case may be, shall be paid the Severance
      Benefits described in Section 6.

     

    8. INTENTIONALLY
      OMITTED.

     

    9. REIMBURSEMENT
      OF EXPENSES.
      The
      Corporation shall reimburse the Employee for all reasonable business expenses
      paid or incurred by him on behalf of the Corporation, including, but not limited
      to, travel and entertainment expenses, that he shall incur during the Term
      in
      connection with the performance of his duties hereunder, provided that he
      submits, in a timely manner, receipts or other expense records in such detail
      as
      may be required by the Corporation.

     

    10. TERMINATION/STOCK
      OPTIONS.
      In the
      event that Employee’s employment with the Corporation terminates for any reason
      whatsoever, including death or disability of the Employee, other than by the
      Corporation for cause, all stock options theretofore granted to the Employee
      which have not vested and become exercisable on the date of such termination
      shall automatically vest and become exercisable and remain exercisable in
      accordance with the terms of the Corporation’s 1995, 1996 and 2006 Stock Option
      Plans and the stock option agreements thereunder.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    11. NO
      CONFLICTING COMMITMENTS.
      Employee represents and warrants that he has no commitments or obligations
      of
      any kind whatsoever inconsistent with this Agreement which would impair,
      infringe upon or limit his ability to enter into this Agreement or to perform
      the services required of him hereunder.

     

    12. PROPRIETARY
      INFORMATION; NON-COMPETITION.

     

    12.1. Prior
      to
      the execution of this Employment Agreement, Employee signed a Proprietary
      Information Agreement the terms of which shall continue in full force and
      effect.

     

    12.2. During
      the Term of this Agreement and until one year following the termination or
      nonrenewal of this Agreement (except in the case of the Company entering into
      any form of bankruptcy, insolvency or similar reorganization), the Employee
      shall not in any way compete with the business of the Corporation. In
      furtherance thereof (and subject to the exception referred to above), during
      the
      period described in the preceding sentence, the Employee shall not become a
      stockholder, director, employee, consultant, agent or representative of any
      person, firm or entity whose business is competitive with the business of the
      Corporation; provided that the foregoing shall not preclude the Employee from
      owning less than 5% of the stock or other securities of any person, firm or
      entity whose business is competitive with the business of the Corporation.
      The
      provisions of this Section 12.2 supersede any provision in any other agreement
      between the Company and the Employee that is inconsistent with this
      provision.

     

    13. DIRECTORS’
      AND OFFICERS’ LIABILITY INSURANCE.
      During
      the Term and for at least two years after (i) the end of the Term or
      (ii) earlier termination or expiration of the Agreement or retirement of
      the Employee, whichever of (i) or (ii) last occurs, the Company shall, at its
      sole cost and expense, procure for the benefit of the Employee, directors’ and
      officers’ liability in an amount of at least $5 million and with terms and
      conditions substantially similar to the terms of such insurance in effect on
      the
      date hereof.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    14. ENTIRE
      AGREEMENT.
      This
      Agreement embodies the entire understanding and agreement of the parties hereto
      in relation to the subject matter hereof, and no promise, condition,
      representation or warranty, express or implied, not herein set forth shall
      bind
      any party hereto. None of the terms or conditions of this Agreement may be
      changed, modified, waived or cancelled orally or otherwise except in a writing
      signed by both the parties hereto, specifying such change, modification, waiver
      or cancellation. A waiver at any time of compliance with any of the terms and
      conditions of this Agreement shall not be considered a modification,
      cancellation or waiver of such terms and conditions of any preceding or
      succeeding breach thereof unless expressly so stated. The Employment Agreement
      dated as of June 27, 2006, as amended, and the Employment Agreement dated as
      of
      June 19, 2007 is terminated effective as of the commencement of the term of
      this
      Agreement.

     

    15. BINDING
      EFFECT.
      This
      Agreement shall be binding upon and inure to the benefit of the parties hereto
      and their respective legal representatives, successors and assigns.

     

    16. GOVERNING
      LAW; FEES.
      This
      Agreement shall be governed by the internal laws of the State of New Jersey
      without regard to principles of conflicts of law. In the event of any litigation
      relating to the terms of this Agreement, the prevailing party shall be awarded
      all of its fees and expenses in pursuing or defending such litigation, including
      all reasonable legal fees and expenses.

     

    17. NOTICES.
      Any
      notice or other communication required or desired to be given shall be in
      writing and shall be sent by registered or certified mail return receipt
      requested or by express mail. Each such notice shall be deemed given at the
      time
      it is mailed in any post office maintained by the United States to the following
      respective addresses, which either party may change as to such party upon ten
      (10) days’ notice to the other.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    To
      the
      Corporation:

    

    Interactive
      Systems Worldwide Inc.

    2
      Andrews
      Drive, 2nd Floor

    West
      Paterson, NJ 07424

    
        
Attn:
        Chief Financial Officer

    

     

    With
      a
      copy to:

     

    Richard
      M. Hoffman, Esq.

    Friedman
      Kaplan Seiler & Adelman LLP

    1633
      Broadway (46th Floor)

    New
      York,
      NY 10019

     

    To
      Employee:

     

    Mr.
      Bernard Albanese

    18
      Doremus Drive

    Towaco,
      NJ 07082

     

    18. EXTRAORDINARY
      RELIEF.
      Employee acknowledges and agrees that irreparable damage will result to the
      Corporation in the event of a breach of the Proprietary Information Agreement
      or
      Section 12 of this Agreement. Accordingly, Employee agrees that the Corporation
      shall be entitled to enforce its rights under said Proprietary Information
      Agreement and Section 12 of this Agreement, in the event of a breach or
      threatened breach thereof, in the court of equity, and shall be entitled to
      a
      decree of specific performance or appropriate injunctive relief. Such remedies
      shall be cumulative and not exclusive and shall be in addition to any other
      rights or remedies available to the Corporation.

     

    19. INVALIDITY.
      Any
      provision of this Agreement found to be prohibited by law shall be ineffective
      as written without invalidating the remainder of this Agreement and shall be
      deemed amended to the fullest extent allowable by applicable law to effectuate
      the purposes of said provision.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

        
        

      

    

     

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

     

    
      
        	 	
                INTERACTIVE
                  SYSTEMS WORLDWIDE INC.

              
	 	 	 
	 	 	 
	 	 	 
	 	
                By:

              	
                /s/
                  Bruce Feldman

              
	 	 	
                Bruce
                  Feldman, Director

              
	 	 	 
	 	 	 
	 	 	
                /s/
                  Bernard Albanese

              
	 	 	
                Bernard
                  AlbaneseEXECUTION
      COPY

     

    AMENDED
      AND RESTATED

    EMPLOYMENT
      AGREEMENT

     

    Agreement,
      dated as of July 1, 2007 (the “Agreement”), by and between Shells Seafood
      Restaurants, Inc., a Delaware corporation with its principal office at 16313
      N.
      Dale Mabry Highway, Suite 100, Tampa, Florida 33618 (the "Company"), and Leslie
      Christon (the "Executive"), currently residing at 6211 Emmons Lane, Tampa,
      Florida 33647.

     

    WHEREAS,
      the parties desire to enter into this Agreement in order to assure the Company
      of the services of the Executive and to set forth the duties and compensation
      of
      the Executive, all upon the terms and conditions hereinafter set forth;
      and

     

    WHEREAS,
      the Executive and the Company are parties to an Employment Agreement dated
      July
      1, 2005, which agreement has been replaced and superseded in its entirety by
      this Agreement.

     

    NOW,
      THEREFORE, in consideration of the foregoing and of the mutual promises,
      representations and covenants contained herein, the parties hereto agree as
      follows:

     

    1.    Duties.
      The
      Company shall employ the Executive, and the Executive shall serve as the Chief
      Executive Officer and President of the Company, during the Employment Term
      (as
      hereinafter defined). During the Employment Term, the Executive shall perform
      such duties and functions as the Company's Board of Directors shall from time
      to
      time determine and the Executive shall comply in the performance of her duties
      with the policies, and be subject to the direction, of the Board of Directors
      of
      the Company. Except as may be expressly otherwise consented to in writing by
      the
      Board of Directors, the Executive covenants and agrees to and shall devote
      her
      full working time, attention and efforts toward the performance of her duties
      and responsibilities hereunder. The Executive shall not, directly or indirectly,
      without the prior written consent of the Company's Board of Directors, as owner,
      partner, joint venturer, stockholder, employee, consultant, corporate officer
      or
      director, engage or become financially interested in any other duties or
      pursuits which interfere with the performance of her duties hereunder, or which
      even if non-interfering, may be inimical or contrary to the best interests
      of
      the Company. During the Employment Term, the Executive shall reside, on a full
      time basis, in either Hillsborough, Pinellas or Pasco County,
      Florida.

     

    2.    Term;
      Severance.

     

    a.    Term.
      The
      term of this Agreement and the term of employment (the "Employment Term") of
      the
      Executive shall commence as of July 1, 2007 and continue until June 30, 2008
      (the "Termination Date") unless sooner terminated in accordance with the terms
      hereof; provided, however, that the Termination Date (and, consequently, the
      Employment Term) shall be extended automatically for successive one year periods
      (unless sooner terminated in accordance with the terms hereof) unless either
      party hereto gives the other such party written notice of its or her intention
      not to extend this Agreement, ninety (90) days prior to the Termination Date
      (or, if applicable, any anniversary of the Termination Date).

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    b.    Severance.
      Except
      as provided in Section 5(b) hereof, in the event (x) the Company terminates
      the
      Executive's employment for any reason other than cause (as defined in Section
      5
      hereof), the permanent disability (as defined in Section 6 hereof) of the
      Executive, or the death of the Executive, or (y) the Company does not renew
      this
      Agreement at the end of the Employment Term (if not previously terminated)
      as
      provided in Section 2(a) hereof, the parties agree that, provided Executive
      executes a general release of all claims against the Company, its officers,
      directors and affiliates, and abides by all restrictive covenants of this
      Agreement including, without limitation, the provisions relating to
      non-competition, non-solicitation and confidentiality, Executive shall be
      entitled to receive: (1) as severance pay the then effective base salary of
      the
      Executive, for a period commencing on any such date of termination or
      non-renewal and ending on the earlier of (i) the six-month anniversary of such
      date or (ii) the date upon which Executive commenced to be employed by another
      entity or person (the “Severance Period”), in all such instances, payable in
      equal installments in accordance with the Company's normal salary payment
      policies, and (2) payment of the Executive’s and Executive’s eligible
      dependents’ COBRA continuation health coverage premiums for the six month period
      following the date of termination or, if earlier, until the Executive and
      Executive’s dependents cease to be eligible for such coverage or until the
      Executive commences employment with another entity or person. Any amounts so
      paid to the Executive pursuant to the provisions of this Section 2(b) shall
      be
      in lieu of any and all other payments due and owing to the Executive under
      the
      terms of this Agreement or otherwise. It is agreed that subsequent to any such
      termination or non-renewal for which severance is owed, the Executive shall
      in
      good faith reasonably assist during the Severance Period in the transition
      to
      another person or persons selected to perform the duties of the CEO/President
      of
      the Company; provided, however, that the Executive shall not be required to
      devote any specified minimum amount of time toward such transition activities.
      In the event that the Company terminates Executive's employment for "cause"
      (as
      defined in Section 5 hereof), or due to the "permanent disability" of the
      Executive ( as defined in Section 6 hereof) or the death of the Executive,
      the
      Executive shall not be entitled to receive any further payment hereunder other
      than for accrued but unpaid compensation and except as may be specifically
      otherwise provided in this Section 2(b) or pursuant to any stock option granted
      to Executive by the Company.

     

    3.    Compensation.

     

    a.    Salary.
      In the
      year of the Employment Term, the Executive shall receive a base salary at the
      rate of $275,000 per annum (“Base Salary”), subject to any increases approved by
      the Board of Directors or an appropriate committee thereof. The Executive's
      Base
      Salary shall be payable in installments in accordance with the Company's normal
      salary payment policies, and shall be subject to such payroll deductions as
      are
      required by law or applicable employee benefit programs.

     

    
      
         

      

      
        -2-

        
          

        

      

      
         

      

    

     

    b.    Bonus.
      Executive shall be eligible for a bonus of up to one hundred percent (100%)
      of
      her Base Salary on an annual basis, contingent upon the Executive achieving
      agreed upon milestones to be determined by the Company’s Board of Directors or
      an appropriate committee thereof. All bonuses, if any, will be paid within
      fifteen (15) days of the date that the Company receives its annual audited
      financial statements from its independent certified public accountants for
      the
      then applicable year.

     

    c.    Expenses.
      In
      addition to the Base Salary provided for in Section 3(a) hereof, the Company
      shall reimburse the Executive, upon presentation by the Executive of suitable
      documented expense accounts, for any reasonable travel or other out-of-pocket
      business expenses incurred by the Executive in rendering the services hereunder
      on behalf of the Company and which are incurred pursuant to the Company's
      expense reimbursement policies. The Executive shall comply with restrictions
      and
      shall keep records in compliance with the Company's policy and procedures
      related to travel and entertainment expenses, and as may be otherwise required
      for tax or accounting purposes.

     

    d.    Stock
      Option Awards.
      At its
      discretion, the board of directors reserves the right to grant the Executive
      employee stock options during the employment of the Executive.

     

    e.    Vacations.
      The
      Executive shall be entitled to up to four weeks of paid vacation in each
      calendar year. The Executive shall also be entitled to the same standard paid
      holidays given by the Company to senior executives generally, all as determined
      from time to time by the Board of Directors of the Company or an appropriate
      committee thereof. No more than one week of vacation time shall cumulate from
      year to year.

     

    f.    Automobile.
      During
      the Employment Term, the Executive shall be entitled to an automobile allowance
      of $1,200 per month, plus maintenance, reimbursement for the cost of gasoline
      used for daily commutation to work and for business travel (all in accordance
      with Section 3(c) hereof), and automobile insurance. 

     

    g.    Life,
      Health and Disability Insurance.
      Executive shall be entitled to participate in the Company's health benefit
      program and entitled to the same health and disability insurance paid for by
      the
      Company to senior executives generally, all as determined from time to time
      by
      the Board of Directors of the Company or an appropriate committee thereof.
      The
      Company shall use its good faith efforts to obtain and pay the premiums on
      a
      $500,000 term life insurance policy on the Executive during the term of this
      Agreement provided that the Executive can be insured and provided further that
      the premium for such policy shall not exceed $1,000 per year. The life insurance
      policy shall be owned by the Company and the beneficiary shall be designated
      by
      the Executive. 

     

    4.    Place
      of Performance.
      In
      connection with her employment by the Company, and except for travel required
      for Company business, the Executive shall be based at the principal executive
      offices of the Company, presently located in the Tampa, Florida area or, from
      time to time, at the discretion of the Company, at other locations utilized
      by
      the Company which are located within 100 miles of the Company's present
      executive offices.

     

    
      
         

      

      
        -3-

        
          

        

      

      
         

      

    

     

    5.    Termination
      by the Company or by Executive.

     

    (a)    Termination
      by the Company.
      The
      Company may terminate Executive's employment at any time, upon notice by the
      Company to the Executive, for cause or for any other reason which would not
      constitute cause. Termination by the Company for "cause" shall mean termination
      because of: (a) Executive's refusal to perform, or continual neglect of, her
      duties or obligations hereunder (other than breaches of the covenants set forth
      in Sections 1, 7 and 8 hereof which events are governed by clause (e) below),
      in
      any such instance which is materially and demonstrably injurious to the Company
      and which neglect or failure to act is not remedied within thirty (30) days
      after written notice thereof to the Executive by the Company; (b) Executive's
      conviction (which, through lapse of time or otherwise, is not subject to appeal)
      of any crime or offense involving money or other property of the Company or
      any
      of its subsidiaries or which constitutes a felony in the jurisdiction involved,
      (c) Executive's performance of any act or her failure to act, for which if
      Executive were prosecuted and convicted, would constitute a crime or offense
      involving money or property of the Company or any of its subsidiaries, or which
      would constitute a felony in the jurisdiction involved, (d) any attempt by
      Executive to secure improperly any personal profit in connection with the
      business of the Company or any of its subsidiaries, which individually or in
      the
      aggregate is materially and demonstrably injurious to the Company and which,
      to
      the extent such material and demonstrable injury is capable of being cured,
      is
      not remedied within thirty (30) days after written notice thereof to the
      Executive by the Company, (e) any breach by Executive of any of the terms of
      Section 1, 7 or 8 of this Agreement, in any such instance which is materially
      and demonstrably injurious to the Company and which breach is not remedied
      within thirty (30) days after written notice thereof to the Executive by the
      Company.

     

    (b)    Change
      in Control.
      In the
      event that, within six months of a Change in Control of the Company (as later
      defined), (i) Executive is terminated without cause or (ii) Executive terminates
      her employment with the Company due to (w) a significant diminution in
      Executive’s job responsibilities or title or compensation or (x) the Executive
      being required to relocate outside of the Tampa, Florida market (which shall
      mean to a location which is more than 50 miles outside of the city borders
      of
      Tampa) (and, in any such instance, provided the Executive executes a general
      release of all claims against the Company, its officers, directors and
      affiliates and abides by the provisions of Sections 7 and 8(a) (iii) and (iv)
      hereof, then (y) all the Executive’s unvested stock options will vest
      immediately, and (z) Executive shall be entitled to receive (1) a severance
      payment equal to nine months’ then effective base salary, payable in equal
      installments commencing from the date of the Change in Control, in accordance
      with the Company’s then general salary payment policies, and (2) payment of the
      Executive’s and Executive’s eligible dependents’ COBRA continuation health
      coverage premiums for the nine month period following the date of termination
      or, if earlier, until the Executive and Executive’s dependents cease to be
      eligible for such coverage or until the Executive commences employment with
      another entity or person. Such payments, if any, shall be in lieu of any amount
      provided for in Section 2(b) hereof. 

     

    
      
         

      

      
        -4-

        
          

        

      

      
         

      

    

    
For
      purposes of this Agreement, a “Change in Control” shall be deemed to have
      occurred if (i) there shall be consummated (x) any consolidation or merger
      of
      the Company in which the Company is not the continuing or surviving corporation
      or pursuant to which shares of the Company’s Common Stock, would be converted
      into cash, securities or other property, other than a merger of the Company
      in
      which the holders of the Common Stock immediately prior to the merger have
      not
      less than 50.1% of the ownership of common stock of the surviving corporation
      immediately after the merger, or (y) any sale, lease, exchange or other transfer
      (in one transaction or a series of related transactions) of all, or
      substantially all, of the assets of the Company, or (ii) the stockholders of
      the
      Company shall approve any plan or proposal for liquidation or dissolution of
      the
      Company, or (iii) any person (as such term is used in Section 13(d) and 14(d)(2)
      of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) who, at
      the time of the execution of this Agreement, does not own 5% or more of the
      Company’s outstanding Common Stock, shall become the beneficial owner (within
      the meaning of Rule 13d-3 under the Exchange Act) of 35% or more of the
      outstanding Common Stock other than pursuant to a plan or arrangement entered
      into by such person and the Company, or (iv) during any period of two
      consecutive years commencing on the date hereof, individuals who at the
      beginning of such period constitute the entire Board of Directors shall cease
      for any reason to constitute a majority thereof, unless the election, or the
      nomination for election by the Company’s stockholders, of a majority of the new
      directors was approved by a vote of at least two-thirds of the directors then
      still in office who were directors at the beginning of the period. 

     

    (c)    Termination
      by the Executive.
      The
      Executive may terminate her employment with the Company at any time, upon notice
      by the Executive to the Company.

     

    6.    Death;
      Disability.
      If the
      Executive shall die or become "permanently disabled" during the term of this
      Agreement, this Agreement and all benefits hereunder shall terminate, except
      that such termination shall not affect any vested rights which the Executive
      may
      have at the time of her death pursuant to any insurance or other death benefit
      plans or arrangements of the Company, which rights shall continue to be governed
      by the provisions of such plans and agreements. For the purposes of this
      Agreement, the Executive shall be deemed to be "permanently disabled" if, during
      the term hereof, because of ill health, physical or mental disability, or for
      other causes beyond the Executive's control, the Executive shall have been
      unable, or unwilling, to perform the essential functions of her job hereunder
      for ninety (90) consecutive days or for a total period of one hundred twenty
      (120) days in any twelve month period during the term of this Agreement, whether
      consecutive or not. Notwithstanding anything to the contrary contained herein,
      during any period that the Executive fails to perform the essential functions
      of
      her job hereunder as a result of her disability (but prior to the termination
      of
      this Agreement as a result of such disability), (i) the Executive shall continue
      to receive her full salary at the rate then in effect and all benefits provided
      herein, provided that payments made to the Executive pursuant to this Section
      6
      shall be reduced by the sum of the amounts, if any, payable to the Executive
      at
      or prior to the time of any such payment under any disability benefit insurance,
      plan or program of, or provided by, the Company and (ii) the Company shall
      have
      the right to hire any other individual or individuals to perform such duties
      and
      functions as the Company shall desire, including those duties heretofore
      performed by the Executive.

     

    
      
         

      

      
        -5-

        
          

        

      

      
         

      

    

     

    7.    Protection
      of Confidential Information.

     

    a.    Confidential
      Information.
      The
      Executive acknowledges that her employment by the Company will, throughout
      the
      term of this Agreement, bring her in contact with many confidential affairs
      of
      the Company not readily available to the public, and plans for future
      developments. In recognition of the foregoing, the Executive covenants and
      agrees that she will not, directly or indirectly, use or intentionally disclose
      or permit to be known to anyone outside of the Company any confidential matters
      of the Company, except with the Company's prior written consent or as required
      by court order, law or subpoena, or other legal compulsion to disclose, with
      appropriate confidentiality obligations, or when reasonably necessary during
      Executive’s employment by the Company for the Executive to perform her job
      duties hereunder. In the event that Executive shall be required by legal process
      to disclose any confidential matter, Executive shall give the Company ten days
      (or, if not reasonably possible, such lesser number of days as is reasonably
      possible) prior written notice prior to such disclosure.

     

    b.    Company
      Property.
      All
      information and documents relating to the Company shall be the exclusive
      property of the Company and the Executive shall use commercially reasonable
      best
      efforts to prevent any publication or disclosure thereof. Upon termination
      of
      the Executive's employment with the Company, all documents, records, reports,
      writings and other similar documents containing confidential information,
      including copies thereof, and any other Company property then in the Executive's
      possession or control shall be returned and left with the Company.

     

    c.    Company
      Policy.
      The
      Executive will execute the Company’s Annual Questionnaire Relating to Conflicts
      of Interest, Insider Trading, Questionable Payments, Political Contributions,
      Violations of Law and Confidentiality, all the terms and provisions of which
      are
      incorporated herein as if fully set forth herein.

     

    8.    Covenant
      Not To Compete; Non-Solicitation.

     

    a.    Covenant
      Not to Compete.
      The
      Executive agrees that during her employment by the Company (which shall be
      deemed to include the period during which the Executive is receiving any
      severance payments, as set forth in Section 2 hereof), the Executive shall
      not
      either directly or indirectly, (i) whether by establishing a new business or
      by
      joining an existing one, and whether as a principal, employee, stockholder,
      officer, director, broker, agent, consultant, corporate officer, licensor or
      in
      any other capacity, compete with the Company or any of its affiliates in the
      seafood segment of the restaurant business or become associated with a business
      enterprise which competes with any business operation of the Company or its
      affiliates in the seafood segment of the restaurant business, or any business
      operation of the Company or its affiliates in the seafood segment of the
      restaurant business planned and known by the Executive prior to the Executive's
      termination of employment, in the State of Florida and any other geographical
      areas in which the Company then has market presence; provided, however, that
      if
      the Company terminates Executive's employment without cause (as defined in
      Section 5 hereof), Executive shall not be subject to the provisions of this
      Section 8; (ii) divert business from the Company or its affiliates or solicit,
      accept or procure business from, divert the business of, or attempt to convert
      to other methods of using the same or similar services or products as are
      provided by the Company or its affiliates , any customer of the Company or
      its
      affiliates; (iii) interfere, in any manner, with the Company's or its
      affiliates’ customer and vendor/supplier relationships; or (iv) solicit for
      employment, employ or otherwise engage the services of, any employee or agent
      of
      the Company or its affiliates, or any person who was an employee or agent of
      the
      Company or its affiliates within the six months immediately preceding the
      cessation of Executive's employment with the Company. A restaurant shall be
      deemed to be in the seafood segment of the restaurant business if it holds
      itself out as primarily a purveyor of seafood by means of the use of the term
      “seafood", "fish" or other term traditionally associated with a food source
      which comes from the ocean waters (or any variation on any of the foregoing)
      in
      its name or in its advertising.

     

    
      
         

      

      
        -6-

        
          

        

      

      
         

      

    

     

    b.    Divisibility.
      The
      Executive and the Company intend that this covenant not to compete shall be
      construed as a series of separate covenants, one for each county and each
      product line. If, in any judicial proceeding, a court shall refuse to enforce
      any one or more of the separate covenants deemed included in subsection (a)
      of
      this Section 8, then such unenforceable covenant shall be deemed severed from
      this Agreement for the purposes of such judicial proceeding to the extent
      necessary to permit the remaining separate covenants to be
      enforced.

     

    c.    Reasonableness.
      The
      Executive acknowledges that the territorial and time limitations set forth
      in
      this Section 8 are reasonable and properly required for the adequate protection
      of the business of the Company and its subsidiaries and affiliates. In the
      event
      any such territorial or time limitation is deemed to be unreasonable by a court
      of competent jurisdiction, the Executive agrees to the reduction of the
      territorial or time limitation to the area or period which such court deems
      reasonable.

     

    d.    Independent
      Obligation.
      The
      existence of any claim or cause of action by the Executive against the Company
      shall not constitute a defense to the enforcement by the Company of the
      foregoing restrictive covenants, but such claim or cause of action shall be
      litigated separately.

     

    9.    Successors;
      Binding Agreement.
      This
      Agreement and all rights of the Executive hereunder shall inure to the benefit
      of, and shall be enforceable by, the Executive's personal or legal
      representatives, executors, administrators, successors, heirs, distributees,
      devisees and legatees. If the Executive should die while any amount would still
      be payable to her hereunder if she had continued to live, all such amounts,
      unless otherwise provided herein, shall be paid in accordance with the terms
      of
      this Agreement to the Executive's devisee, legatee or other designee or, if
      there be no such designee, to the Executive's estate. This Agreement shall
      bind
      any successors, purchasers, subsidiaries, affiliates and assigns of the
      Company.

     

    
      
         

      

      
        -7-

        
          

        

      

      
         

      

    

     

    10.    Notice.
      For the
      purposes of this Agreement, notices, demands and all other communications
      provided for in the Agreement shall be in writing and shall be deemed to have
      been duly given when delivered against receipt therefore or three days after
      being mailed by United States certified mail, return receipt requested, postage
      prepaid, addressed as follows:

     

    
      	
            	If
              to the Executive:	
              Leslie
                Christon

            

    

    6211
      Emmons Lane

    Tampa,
      FL
      33647

    

    
      	
            	With
              a copy to:	
              Robert
                F. McKee

            

    

    Kelly
      & McKee, P.A.

    1718
      E.
      Seventh Avenue

    Suite
      301

    Tampa,
      FL
      33605

    

    
      	
            	If
              to the Company:	
              Shells
                Seafood Restaurant, Inc.

            

    

    16313
      N.
      Dale Mabry Highway, Suite 100

    Tampa,
      Florida 33618

    

    
      	
            	With
              a copy to:	
              Sheldon
                G. Nussbaum, Esq.

            

    

    Fulbright
      & Jaworski L.L.P.

    666
      Fifth
      Avenue

    New
      York,
      New York 10103

     

    or
      to
      such other address as either party may have furnished to the other in writing
      in
      accordance herewith, except that notice of change of address shall be effective
      only upon receipt.

     

    11.    Miscellaneous.
      No
      provisions of this Agreement may be modified, waived or discharged unless such
      waiver, modification or discharge is agreed to in writing and signed by the
      Executive and such officers of the Company as may be specifically designated
      by
      its Board of Directors. No waiver by either party hereto at any time of any
      breach by the other party hereto of, or compliance with, any condition or
      provision of this Agreement to be performed by such other party shall be deemed
      a waiver of similar or dissimilar provisions or conditions at the same or at
      any
      prior or subsequent time.

     

    12.    Validity.
      The
      invalidity or unenforceability of any provision or provisions of this Agreement
      shall not affect the validity or enforceability of any other provision of this
      Agreement, which shall remain in full force and effect.

     

    
      
         

      

      
        -8-

        
          

        

      

      
         

      

    

     

    13.    Entire
      Agreement.
      With
      the exception of the terms and conditions of the benefit and compensation plans
      applicable to the Executive, this Agreement sets forth the entire agreement
      and
      understanding of the parties hereto in respect of the subject matter contained
      herein, and supersedes all prior agreements, promises, covenants, arrangements,
      communications, representations or warranties, whether oral or written, by
      any
      officer, employee or representative of any party hereto or any predecessor
      of
      any party hereto.

     

    14.    Non-Assignability.
      This
      Agreement is entered into in consideration of the personal qualities of the
      Executive and may not be, nor may any right or interest hereunder be, assigned
      by her without the prior written consent of Company. It is expressly understood
      and agreed that this Agreement, and the rights accruing and obligations owed
      to
      the Company hereunder, and the obligations to be performed by the Company
      hereunder, may be assigned by the Company to any of its successors or
      assigns.

     

    15.    Equitable
      Relief.
      The
      Executive recognizes that the services to be rendered by her hereunder are
      of a
      special, unique, extraordinary and intellectual character involving skill of
      the
      highest order and giving them peculiar value, the loss of which cannot be
      adequately compensated for in damages. In the event of a breach of this
      Agreement by the Executive, the Company shall be entitled to injunctive relief
      or any other legal or equitable remedies. The remedies provided in this
      Agreement shall be deemed cumulative and the exercise of one shall not preclude
      the exercise of any other remedy at law or in equity for the same event or
      any
      other event.

     

    16.    Indemnification;
      Litigation Expenses.

     

    (a)    Indemnification.
      In
      addition to any indemnification obligations the Company has or may have toward
      the Executive under applicable law, the Company shall indemnify the Executive
      for any and all costs, expenses, awards, claims, judgments, attorneys' fees
      or
      any other damage or injury to the Executive for the Executive's actual or
      alleged actions or failure to act during her employment with the Company, in
      all
      instances in a manner consistent with this Agreement and as permitted by
      applicable law, including the Executive's employment or serving at the request
      of the Company as an officer or director of a subsidiary or affiliate of the
      Company.

     

    (b)    Litigation
      Expenses.
      In the
      event of litigation in connection with or concerning the interpretation, breach
      of enforcement of this Agreement, the prevailing party shall be entitled to
      recover all costs and expenses incurred by such party in connection therewith,
      including reasonable attorneys fees.

     

    17.    Choice
      of Law.
      

     

    (a)    This
      Agreement is to be governed by and interpreted under the laws of the State
      of
      Florida without regard to its conflict of laws principles. 

     

    
      
         

      

      
        -9-

        
          

        

      

      
         

      

    

     

    (b)    Any
      controversy or claim arising out of or relating to this Agreement or the breach
      thereof or otherwise arising out of the Executive's employment or the
      termination of that employment (including, without limitation, any claims of
      unlawful employment discrimination whether based on age or otherwise) shall,
      to
      the fullest extent permitted by law, be settled by arbitration in any forum
      and
      form agreed upon by the parties or, in the absence of such an agreement, under
      the auspices of the American Arbitration Association ("AAA") in Tampa, Florida,
      in accordance with the Employment Dispute Resolution Rules of the AAA,
      including, but not limited to, the rules and procedures applicable to the
      selection of arbitrators.  Judgment upon the award rendered by the
      arbitrator may be entered in any court having jurisdiction thereof.  This
      Section 17 (b) shall be specifically enforceable.  Notwithstanding the
      foregoing, this Section 17 (b) shall not preclude either party from pursuing
      a
      court action for the sole purpose of obtaining a temporary restraining order
      or
      a preliminary injunction in circumstances in which such relief is appropriate;
      provided that any other relief shall be pursued through an arbitration
      proceeding pursuant to this Section 17 (b).

     

    18.    Representations
      And Agreements of the Executive.
      The
      Executive represents and warrants that she is free to enter into this Agreement
      and to perform the duties required hereunder, and that there are no employment
      contracts or understandings, restrictive covenants or other restrictions,
      whether written or oral, preventing the performance of her duties hereunder.
      The
      Executive agrees to submit to a medical examination and to cooperate and supply
      such other information and documents as may be required by any insurance company
      in connection with the Executive's inclusion in any insurance or fringe benefit
      plan or program as the Company shall be required hereunder or shall determine
      from time to time to obtain, or in connection with, in the Company's sole
      discretion, the Company's obtaining life insurance for its benefit on the life
      of the Executive.

     

    19.    Survival.
      The
      termination of the Executive's employment hereunder shall not affect the
      enforceability of Sections 2, 3, 5, 7, 8, 9, 15, 16, 17 and 18
      hereof.

     

    20.    Section
      409A.
      Notwithstanding anything herein to the contrary, to the extent that amounts
      payable pursuant to Section 2(b) or 5(b) of this Agreement would be subject
      to
      the additional 20% tax imposed under Section 409A of the Internal Revenue Code
      of 1986, as amended (the “409 Affected Amount”), the Company shall pay to the
      Executive that portion of the 409A Affected Amount otherwise due after the
      latest date that it could be paid and still qualify for the “short term
      deferral” exception under IRS Notice 2005-1 (or any successor thereto) in a
      single lump sum no later than the latest possible date permitted under the
      “short term deferral” exception that would avoid such additional 20%
      tax.

     

    21.    Counterparts.
      This
      Agreement may be executed in one or more counterparts, each of which shall
      be
      deemed to be an original but all of which together shall constitute one and
      the
      same instrument.

     

    22.    Headings.
      The
      Section headings appearing in this Agreement are for the purposes of easy
      reference and shall not be considered a part of this Agreement or in any way
      modify, demand or affect its provisions.

     

    23.    Amendment
      and Restatement.
      This
      Agreement amends, supersedes and replaces in its entirety the existing
      employment agreement dated July 1, 2003 between the Company and the Executive,
      which prior agreement shall be null and void from and after the execution of
      this Agreement.

     

    [SIGNATURE
      PAGE TO FOLLOW]

     

    
      
         

      

      
        -10-

        
          

        

      

      
         

      

    

    

    IN
      WITNESS WHEREOF, the parties hereto have executed this Agreement as of the
      day
      and year first written above.

     

    
      	 	 	 
	 	SHELLS
              SEAFOOD RESTAURANTS, INC.
	 
 	 
 	 
 
	 	By:  	/s/ Philip
              R. Chapman
	 	
              
Name:
              Philip R. Chapman
	 	Title:
              Chairman of the Board of Directors
	 	 
	 	 
	 	
              /s/ Leslie Christon

              
                
Leslie
                Christon 

            

    

    

    [SIGNATURE
      PAGE TO THE SHELLS-CHRISTON EMPLOYMENT AGREEMENT]

     

    
      
         

      

      
        -11-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00128-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00128-of-00352.parquet"}]]