Document:

Exhibit 10.1

 

EMPLOYMENT
AGREEMENT

 

THIS
EMPLOYMENT AGREEMENT (this “Agreement”) is made on October __, 2018 by and between Bespoke Extracts,
Inc., a Nevada corporation (the “Company”) and Niquana Noel (the
“Executive”).

 

WHEREAS,
the Company wishes to employ the Executive pursuant to the terms and conditions of this Agreement and Executive wishes to be employed
by the Company pursuant to the terms and conditions of this Agreement.

 

NOW,
THEREFORE, in consideration of the mutual covenants contained herein and other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

1. Employment.
The Company will continue to employ Executive, and Executive accepts employment with the Company, upon the terms and conditions
set forth in this Agreement, for the period as of the date of this Agreement and ending as provided in Section 5 (the “Employment
Period”).

 

2. Position
and Duties. During the Employment Period, Executive will serve as the Chief Executive Officer and President of the Company
and its Subsidiaries. Executive shall render such managerial, supervisory and other executive services to the Company and its
Subsidiaries, as are from time to time necessary in connection with the management and affairs of the Company and its Subsidiaries,
in each case subject to the authority of the Board of Directors of the Company (the “Board”). Executive will
devote his best efforts and all of his business time and attention (except for permitted vacation periods and reasonable periods
of illness or other incapacity) to the business and affairs of the Company and its Subsidiaries. Executive will report directly
to the Board of the Company. Executive will perform his duties and responsibilities to the best of his abilities in a trustworthy
and businesslike manner.

 

3. Compensation
and Benefits.

 

(a) Compensation.
Upon execution of this Agreement, the Company will issue the Executive a warrant to purchase up to 20,000,000 shares at a price
per share of $0.0001 of restricted Company common stock. The Company shall pay Executive an annual salary (“Salary”)
at the gross salary of $96,000. Such salary shall be payable in accordance with the Company’s standard payroll procedures.
employees. 

 

(b) Reimbursement
of Expenses. During the Employment Period, the Company will reimburse Executive for all reasonable out-of-pocket expenses
necessarily incurred by him in the course of performing his duties under this Agreement which are consistent with the Company’s
policies in effect from time to time with respect to travel, entertainment and other business expenses. Reimbursement by the Company
for the expenses set forth in above will be subject to the Company’s requirements with respect to reporting and documentation
of such expenses.

 

4. Performance
Bonuses. During the Employment Period and on an annual basis, Company shall, in the sole discretion of the Board and consistent
with the best interests of the Company, the shareholders and corporate governance best practices, pay Executive an annual year-end
performance bonus as deemed appropriate by the Board (the “Bonus”).

 

5. Termination.
The Employment Period will commence as of the date of this Agreement and will continue until the earlier of: (i) the fourth anniversary
of the date hereof; (ii) Executive’s resignation, death or disability or other incapacity (as reasonably determined by the
Board in good faith); or (iii) the giving of notice of termination by the Company or a majority of the members of the Board (A)
for Cause or (B) for any other reason or for no reason (a termination described in this clause (iii) (B) being a termination by
the Company without Cause). For the purposes of this Agreement, “Cause” shall mean (a) conviction of, or a
plea of guilty or no-contest or similar plea with respect to, a felony or the commission of any act or omission involving actual
fraud or embezzlement with respect to the Company or any of its Subsidiaries, (b) willful misconduct or breach of fiduciary duty
with respect to the Company or any of its Subsidiaries or (c) material breach of Section 2 of this Agreement (provided, that to
the extent a material breach of Section 2 of this Agreement may be cured, Executive shall have 15 business days to cure such breach
from the date on which the Board delivers written notice to Executive reasonably identifying such breach).

 

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6. Confidential
Information. Executive acknowledges that the information, observations and data that have been or may be obtained by him during
his employment relationship with, or through his involvement as a shareholder or director of, the Company or any Subsidiary or
predecessor thereof (each of the Company, any Subsidiary or Affiliate or any such Affiliate predecessor being a “Company
and its Subsidiaries”), prior to and after the date of this Agreement concerning the business or affairs of the Company
and any of its Subsidiaries (collectively, “Confidential Information”) are and will be the property of the
Company and its Subsidiaries. Therefore, Executive agrees that he will not disclose to any unauthorized Person or use for the
account of himself or any other Person any Confidential Information without the prior written consent of the Company (by the action
of the Board), unless and to the extent that such Confidential Information has become generally known to and available for use
by the public other than as a result of Executive’s improper acts or omissions to act, or is required to be disclosed by
law. Executive will deliver or cause to be delivered to the Company at the termination of the Employment Period, or at any other
time the Company or any of its predecessors or Subsidiaries may request, all memoranda, notes, plans, records, reports, computer
tapes and software and other documents and data (and copies thereof) containing or relating to Confidential Information or the
business of any Company and its Subsidiaries which he may then possess or have under his control.

 

7. Enforcement.
The Company and Executive agree that if, at the time of enforcement of Section 6, a court holds that any restriction stated in
any such Section is unreasonable under circumstances then existing, then the maximum period, scope or geographical area reasonable
under such circumstances will be substituted for the stated period, scope or area. Because Executive’s services are unique
and because Executive has access to information of the type described in Section 6, the Company and Executive agree that money
damages would be an inadequate remedy for any breach of Section 6. Therefore, in the event of a breach of Section 6, Company and
its Subsidiaries may, in addition to other rights and remedies existing in their favor, apply to any court of competent jurisdiction
for specific performance and/or injunctive or other relief in order to enforce, or prevent any violations of, the provisions of
Section 6. The provisions of Section 6 are intended to be for the benefit of each Company and its Subsidiaries and their respective
successors and assigns, each of which may enforce such provisions and each of which (other than the Company) is an express third-party
beneficiary of such provisions and this Agreement generally. Section 6 will survive and continue in full force in accordance
with their terms notwithstanding any termination of the Employment Period.

 

8. Incentive
Compensation Plans. Executive shall be entitled to participate in any and all incentive compensation plans.

 

9. Other
Representations and Warranties of Executive. Executive represents and warrants to the Company and its Subsidiaries as follows:

 

(a) Other
Agreements. Executive is not a party to or bound by any employment, non-compete, non-solicitation, nondisclosure, confidentiality
or similar agreement with any other Person which would materially affect his performance under this Agreement.

 

(b) Authorization.
This Agreement when executed and delivered shall constitute a valid and legally binding obligation of Executive, enforceable against
Executive in accordance with its terms.

 

10. Survival
of Representations and Warranties. All representations and warranties contained herein shall survive the execution and delivery
of this Agreement.

 

11. Certain
Definitions. When used herein, the following terms shall have the following meanings:

 

“Affiliate”
means, with respect to any Person, any other Person that, directly or indirectly through one or more of its intermediaries, controls,
is controlled by or is under common control with such Person.

 

“Business”
means (i) any business into which any Company and its Subsidiaries is presently engaged or enters during the Employment Period
pursuant to any acquisition, joint venture, other strategic partnership or otherwise; and (ii) any other business in which the
Company or its Subsidiaries engage as of the date on which Executive ceases to be employed by the Company or its Subsidiaries.

 

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“Good
Reason Event” means, during the Employment Period, (i) a substantial diminution in Executive’s professional responsibilities,
(ii) the Company’s failure to timely pay any amounts due to Executive hereunder or a significant reduction in the Salary
or in the aggregate of the services, perquisites, and amenities which Executive was theretofore receiving, (iii) a change in Executive’s
work location that increases the regular one-way commute distance between Executive’s residence and work location prior
to such change by more than 50 miles, (iv) any action or inaction that constitutes a material breach of this Agreement by the
Company.

 

“Person”
means an individual, a partnership, a corporation, an association, a limited liability company, a joint stock company, a trust,
a joint venture, an unincorporated organization or any other entity (including any governmental entity or any department, agency
or political subdivision thereof).

 

“Subsidiaries”
means, with respect to any Person, any corporation, limited liability company, partnership, association or other business entity
of which (i) if a corporation, a majority of the total voting power of shares of stock entitled (without regard to the occurrence
of any contingency) to vote in the election of directors, managers or trustees thereof is at the time owned or controlled, directly
or indirectly, by such Person or one or more of the other Subsidiaries of such Person or a combination thereof, or (ii) if a limited
liability company, partnership, association or other business entity, a majority of the partnership or other similar ownership
interest thereof is at the time owned or controlled, directly or indirectly, by any Person or one or more Subsidiaries of such
Person or entity or a combination thereof. For purposes hereof, a Person or Persons shall be deemed to have a majority ownership
interest in a limited liability company, partnership, association or other business entity if such Person or Persons shall be
allocated a majority of limited liability company, partnership, association or other business entity gains or losses or shall
be or control any managing director, managing member, or general partner of such limited liability company, partnership, association
or other business entity. Unless stated to the contrary, as used in this Agreement the term Subsidiary means a Subsidiary of the
Company.

 

12. Key-Man
Life Insurance. At the request of the Company, Executive agrees to submit to any physical examination in connection with the
Company’s or any Subsidiary’s purchase of a “key-man” insurance policy. Executive agrees that, to the
extent that he qualifies as overtime exempt, to cooperate fully in connection with the underwriting, purchase and/or retention
of a key-man insurance policy by the Company or any of its Subsidiaries.

 

13. Miscellaneous.

 

(a) Notices.
All communications or notices required or permitted by this Agreement shall be in writing and shall be deemed to have been given
(a) on the date of personal delivery to the recipient or an officer of the recipient, or (b) when sent by telecopy or facsimile
machine to the number shown below on the date of such confirmed facsimile or telecopy transmission (provided that a confirming
copy is sent via overnight mail), or (c) when properly deposited for delivery by a nationally recognized commercial overnight
delivery service, prepaid, or by deposit in the United States mail, certified or registered mail, postage prepaid, return receipt
requested on the date set forth in the records of such delivery service or on the third day after so deposited in the United States
mail.

 

(b) Amendment
and Waiver. No modification, amendment or waiver of any provision of this Agreement will be effective unless such modification,
amendment or waiver is executed by the Company (with the approval of the Board) and Executive. The failure of any party to enforce
any of the provisions of this Agreement will in no way be construed as a waiver of such provisions and will not affect the right
of such party thereafter to enforce each and every provision of this Agreement in accordance with its terms.

 

(c) Severability.
Without limiting the relevant terms of this Agreement, whenever possible, each provision of this Agreement will be interpreted
in such a manner as to be effective and valid under applicable law, but if any provision of this Agreement is held to be invalid,
illegal or unenforceable in any respect under any applicable law or rule in any jurisdiction, such invalidity, illegality or unenforceability
will not affect the validity, legality or enforceability of any other provision of this Agreement in such jurisdiction or affect
the validity, legality or enforceability of any provision in any other jurisdiction, but this Agreement will be reformed, construed
and enforced in that jurisdiction as if such invalid, illegal or unenforceable provision had never been contained in this Agreement.

 

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(d) Entire
Agreement. Except as otherwise expressly set forth herein, this Agreement embodies the complete agreement and understanding
among the parties hereto with respect to the subject matter hereof and supersedes and preempts any prior understandings, agreements
or representations by or among the parties, written or oral, which may have related to the subject matter hereof.

 

(e) Successors
and Assigns. This Agreement will bind and inure to the benefit of and be enforceable by the Company, Executive and their respective
assigns; provided that Executive may not assign his rights or delegate his duties under this Agreement without the prior written
consent of the Company.

 

(f) Counterparts.
This Agreement may be executed simultaneously in two or more counterparts each of which may be an electronically transmitted copy
which shall be deemed an original, any one of which need not contain the signatures of more than one party, but all such counterparts
taken together will constitute one and the same Agreement.

 

(g) Descriptive
Headings; Interpretation; No Strict Construction. The descriptive headings of this Agreement are inserted for convenience
only and do not constitute a substantive part of this Agreement. Whenever required by the context, any pronoun used in this Agreement
shall include the corresponding masculine, feminine or neuter forms, and the singular forms of nouns, pronouns, and verbs shall
include the plural and vice versa. Reference to any agreement, document, or instrument means such agreement, document, or instrument
as amended or otherwise modified from time to time in accordance with the terms thereof, and if applicable hereof. The use of
the words “include” or “including” in this Agreement shall be by way of example rather than by limitation.
The use of the words “or,” “either” or “any” shall not be exclusive. The parties hereto have
participated jointly in the negotiation and drafting of this Agreement. In the event an ambiguity or question of intent or interpretation
arises, this Agreement shall be construed as if drafted jointly by the parties hereto, and no presumption or burden of proof shall
arise favoring or disfavoring any party by virtue of the authorship of any of the provisions of this Agreement. The parties agree
that prior drafts of this Agreement shall be deemed not to provide any evidence as to the meaning of any provision hereof or the
intent of the parties hereto with respect hereto.

 

(h) GOVERNING
LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED SOLELY AND EXCLUSIVELY IN ACCORDANCE WITH THE INTERNAL LAWS OF THE
STATE OF NEW YORK WITHOUT REGARD TO THE CONFLICTS OF LAWS PRINCIPLES THEREOF. THE PARTIES HERETO HEREBY EXPRESSLY AND IRREVOCABLY
AGREE THAT ANY SUIT OR PROCEEDING ARISING DIRECTLY AND/OR INDIRECTLY PURSUANT TO OR UNDER THIS AGREEMENT SHALL BE BROUGHT SOLELY
IN A FEDERAL OR STATE COURT LOCATED IN THE CITY, COUNTY AND STATE OF NEW YORK. BY ITS EXECUTION HEREOF, THE PARTIES HEREBY COVENANT
AND IRREVOCABLY SUBMIT TO THE IN PERSONAM JURISDICTION OF THE FEDERAL AND STATE COURTS LOCATED IN THE CITY, COUNTY AND STATE OF
NEW YORK AND AGREE THAT ANY PROCESS IN ANY SUCH ACTION MAY BE SERVED UPON ANY OF THEM PERSONALLY, OR BY CERTIFIED MAIL OR REGISTERED
MAIL UPON THEM OR THEIR AGENT, RETURN RECEIPT REQUESTED, WITH THE SAME FULL FORCE AND EFFECT AS IF PERSONALLY SERVED UPON THEM
IN NEW YORK CITY. THE PARTIES HERETO EXPRESSLY AND IRREVOCABLY WAIVE ANY CLAIM THAT ANY SUCH JURISDICTION IS NOT A CONVENIENT
FORUM FOR ANY SUCH SUIT OR PROCEEDING AND ANY DEFENSE OR LACK OF IN PERSONAM JURISDICTION WITH RESPECT THERETO. IN THE EVENT OF
ANY SUCH ACTION OR PROCEEDING, THE PARTY PREVAILING THEREIN SHALL BE ENTITLED TO PAYMENT FROM THE OTHER PARTY HERETO OF ALL OF
ITS REASONABLE COUNSEL FEES AND DISBURSEMENTS.

 

(i) WAIVER
OF JURY TRIAL. EACH PARTY TO THIS AGREEMENT HEREBY WAIVES, TO THE EXTENT PERMITTED BY APPLICABLE LAW, TRIAL BY JURY IN ANY
LITIGATION IN ANY COURT WITH RESPECT TO, IN CONNECTION WITH, OR ARISING OUT OF THIS AGREEMENT OR ANY ANCILLARY AGREEMENT OR THE
VALIDITY, PROTECTION, INTERPRETATION, COLLECTION OR ENFORCEMENT THEREOF.

 

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(j) Actions
by the Company. Any action, election or determination by the Board or any committee of the Board pursuant to or relating to
this Agreement will be effective if, and only if, it is taken or made by (or with the prior approval of) a majority of the members
of the Board who are not at the time employees of the Company or any of the Company’s Subsidiaries.

 

(k) Section
409A. The Company and Executive intend for this Agreement either to satisfy the requirements of Section 409A of the Code and
all applicable guidance promulgated thereunder (“Section 409A”) or to be exempt from the application of Section
409A, and this Agreement shall be construed and interpreted accordingly. If this Agreement either fails to satisfy the requirements
of Section 409A or is not exempt from the application of Section 409A, then the Company and Executive hereby agree to amend or
to clarify this Agreement in a timely manner so that this Agreement either satisfies the requirements of Section 409A or is exempt
from the application of Section 409A while best preserving the intention of the parties as evidenced by the terms set forth herein.

 

*****

 

(REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK)

 

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

 

	 	COMPANY:
	 	 
	 	BESPOKE EXTRACTS, INC.
	 	 
	 	/s/
Marc Yahr   
	 	Name:
    Marc Yahr
	 	Title: President
	 	 
	 	EXECUTIVE:
	 	 
	 	/s/
Niquana Noel     
	 	Niquana Noel 

 

 

6Exhibit 10.1

 

CHANGE IN CONTROL AGREEMENT

 

 

THIS CHANGE IN CONTROL
AGREEMENT (this “Agreement”), dated November 1, 2018 (the “Effective Date”), is entered
into by and between Shore Bancshares, Inc., a corporation organized under the laws of Maryland (the “Corporation”),
and Lloyd L. Beatty, Jr. (the “Executive”).

 

WHEREAS, the
Executive is employed by the Corporation as President and Chief Executive Officer;

 

WHEREAS, the
Corporation desires to be ensured of the Executive’s continued active participation in the business of the Corporation; and

 

WHEREAS, in
order to induce the Executive to remain in the employ of the Corporation and in consideration of the Executive’s agreeing
to remain in the employ of the Corporation, the parties desire to specify the change in control payment which shall be due to Executive
in the event that the Executive’s employment with the Corporation is terminated in the specified circumstances covered by
this Agreement;

 

NOW THEREFORE,
in consideration of the mutual covenants and agreements of the parties contained herein, and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the Executive and the Corporation agree as follows:

 

1.                 
Term.

 

(a)              
The Corporation agrees to employ the Executive as an at-will employee, and the Executive agrees to be employed by the Corporation
as an at-will employee, subject to the terms and conditions of this Agreement.

 

(b)              
The initial term of this Agreement shall be for 12 months commencing on the Effective Date (the “Initial Term”).
Upon the expiration of the Initial Term, this Agreement shall automatically renew for successive terms of 12 months each (each
such renewal term, together with the Initial Term, a “Term”) without further action by the parties, unless either
party shall have served written notice on the other party at least 60 days prior to the commencement of a new Term of such party’s
decision not to renew this Agreement. At least 120 days prior to the commencement of a new Term, the Board of Directors of the
Corporation (“Board”) or a committee thereof will conduct a comprehensive performance evaluation and review
of Executive to determine whether to give notice of non-renewal as provided herein. The evaluation and review shall be documented
in the minutes of the Board or the committee thereof. For purposes of clarity, in the event the Board decides not to renew this
Agreement and provides proper notice as set forth above, the Executive shall remain an at-will employee of the Corporation following
the termination of this Agreement unless the Executive’s employment is sooner terminated.

 

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(c)              
While employed by the Corporation, the Executive shall (i) perform such services for the Corporation as may be consistent with
the Executive’s title and such services which are from time to time assigned to the Executive by the Corporation’s
Board and (ii) devote the Executive’s entire business time, attention, skill and energy exclusively to the business of the
Corporation. While employed by the Corporation, the Executive shall not engage or prepare to engage in any other business activity,
whether or not such business activity is pursued for gain, profit or other economic or financial advantage; provided, however,
that the Executive may engage in appropriate civic, charitable or religious activities and devote a reasonable amount of time to
private investments or boards or other activities provided that such activities do not interfere or conflict with the Executive’s
responsibilities. 

 

2.                 
Change in Control Payment.

 

(a)              
If within 12 months after any Change in Control (as hereinafter defined) of the Corporation, the Executive’s employment with
the Corporation is terminated by the Corporation without Cause (as hereinafter defined) or Executive terminates his employment
for Good Reason (as hereinafter defined), the Executive shall be paid an amount equal to 2.99 times the Executive’s base
salary and bonus (not to include the exercise of any stock options) paid or scheduled to be paid under the Corporation’s
or a subsidiary’s annual incentive plan in the calendar year of the Change in Control. Subject to Section 2(h), said sum
shall be paid to the Executive in one lump sum on the 60th day following the Executive’s termination, provided
that the Executive has executed and submitted a release of claims and the statutory period during which Executive is entitled to
revoke the release of claims has expired on or before that 60th day. In addition, all unexercised or unvested equity
awards, or portions thereof, held by the Executive as of the date of termination shall vest or terminate and be exercisable in
accordance with their terms. The termination of the Executive’s employment hereunder shall not impair any rights of the Executive
under any employee benefit or fringe benefit plans that have vested as of the date of termination, which said rights shall be administered
after termination of employment in accordance with the terms of such plans.

 

The Corporation
and the Executive intend that all benefits payable to the Executive as the result of a Change in Control, or for Good Reason whether
payable under this Agreement or under any other benefit, compensation, or incentive plan or arrangement with the Executive or the
Corporation, shall not be subject to the excise tax under Sections 280G and 4999 of the Internal Revenue Code of 1986 (the “Code”)
and shall be deductible by the Corporation. If all or any portion of the benefits payable to the Executive under this Agreement,
either alone or together with other benefits to which the Executive is entitled, constitute excess parachute payments within the
meaning of Section 280G of the Code and are therefore subject to the excise tax imposed by Section 4999 of the Code or loss of
the compensation deduction as the result of Section 280G of the Code, the Corporation and the Executive agree that benefits payable
under this Agreement shall be reduced as necessary for the purpose of avoiding application of Sections 280G and 4999 of the Code.
Any such reduction shall be made by the Corporation in its sole discretion consistent with the requirements of Section 409A of
the Code. If, notwithstanding the initial application of this Section 2, the Internal Revenue Service determines that any covered
payment constitutes an excess parachute payment (as defined by Section 280G(b) of the Code), this Section 2 will be reapplied based
on the Internal Revenue Service's determination, and the Executive will be required to promptly repay the portion of the covered
payments required to avoid imposition of an excise tax. Any determination required under this Section 2, including whether any
payments or benefits are parachute payments, shall be made by the Corporation in its sole discretion.

 

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(b)              
Cause. For purposes of this Agreement, the term “Cause” means: (i) the Executive’s “Disability”
(as hereinafter defined); (ii) an action or failure to act by the Executive constituting fraud, misappropriation or damage to the
property or business of the Corporation; (iii) conduct by Executive that amounts to fraud, personal dishonesty or breach of fiduciary
duty; (iv) Executive’s conviction (from which no appeal may be, or is, timely taken) of a felony or willful violation of
any law, rule or regulation (other than traffic violations or similar offenses); (v) the Executive’s breach of any of his
obligations hereunder; (vi) the unauthorized use, misappropriation or disclosure by the Executive of any Confidential Information
(as hereinafter defined) of the Corporation or of any confidential information of any other party to whom the Executive owes an
obligation of nondisclosure as a result of his relationship with the Corporation; (vii) the willful violation of any final cease
and desist or consent order; (viii) a knowing violation by Executive of federal and state banking laws or regulations which is
likely to have a material adverse effect on the Corporation, as determined by the Board; (ix) the determination by the Board, in
the exercise of its reasonable judgment and in good faith, that Executive’s job performance is substantially unsatisfactory
and that he has failed to cure such performance within a reasonable period (but in no event more than thirty (30) days) after written
notice specifying in reasonable detail the nature of the unsatisfactory performance; (x) Executive’s material breach of any
of the Corporation’s written policies; or (xi) the issuance of any order by the Maryland Commissioner of Financial Regulation,
the Federal Deposit Insurance Corporation, the Board of Governors of the Federal Reserve System, or any other supervisory agency
with jurisdiction over the Corporation permanently prohibiting the continued service of the Executive with the Corporation. No
act or failure to act on the part of the Executive shall be considered “willful” unless it is done, or omitted to be
done, by the Executive in bad faith or without reasonable belief that the Executive’s action or omission was in the best
interests of the Corporation. Any act or failure to act that is based upon authority given pursuant to a resolution duly adopted
by the Board, or upon the advice of legal counsel for the Corporation, shall be conclusively presumed to be done, or omitted to
be done, by the Executive in good faith and in the best interest of the Corporation.

 

(c)              
Disability. For purposes of this Agreement, the term “Disability” shall have the meaning given to such
term in the long-term disability policy available to Executives of the Corporation, as amended or replaced from time to time. 

 

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(d)              
Change in Control. For purposes of this Agreement, a “Change in Control” shall be deemed to have occurred
if the conditions set forth in any one of the following paragraphs shall have been satisfied:

 

(i)                       
any one person, or more than one person acting as a group, acquires ownership of securities of the Corporation that, together with
securities held by such person or group, constitutes more than 50 percent (50%) of the total fair market value or total voting
power of the securities of the Corporation;

 

(ii)                       
either (A) any one person, or more than one person acting as a group, acquires (or has acquired during the 12-month period ending
on the date of the most recent acquisition by such person or persons) ownership of securities of the Corporation possessing 35
percent (35%) or more of the total voting power of the securities of the Corporation; or (B) a majority of members of the Board
of the Corporation is replaced during any 12-month period by directors whose appointment or election is not endorsed by a majority
of the members of the Board of Directors of the Corporation, as the case may be, prior to the date of the appointment or election;
or

 

(iii)                       
any one person, or more than one person acting as a group, acquires (or has acquired during the 12-month period ending on the date
of the most recent acquisition by such person or persons) assets from the Corporation that have a total gross fair market value
equal to or more than 40 percent (40%) of the total gross fair market value of all of the assets of the Corporation, as the case
may be, immediately prior to such acquisition or acquisitions. For this purpose, gross fair market value means the value of the
assets of the Corporation, as the case may be, or the value of the assets being disposed of, determined without regard to any liabilities
associated with such assets.

 

Notwithstanding the foregoing,
the acquisition of ownership or control of voting stock of the Corporation, individually or collectively, by the Corporation or
one of its affiliates or any benefit plan sponsored by the Corporation or any of its affiliates shall not constitute a Change in
Control.

 

(e)              
Good Reason. For purposes of this Agreement, the term “Good Reason” shall mean termination by the Executive
within 12 months following a Change in Control based on:

 

(i)                       
Without the Executive’s express written consent, a material adverse change made by the Corporation which would reduce the
Executive’s functions, duties or responsibilities as President of the Corporation.

 

(ii)                       
Without the Executive’s express written consent, a 5% or greater reduction by the Corporation in the Executive’s Base
Salary as the same may be increased from time to time; or

 

(iii)                       
Without the Executive’s express written consent, the Corporation requires the Executive to be based at a location more than
50 miles from Easton, Maryland (which requirement shall be deemed to be a material change in the geographic location at which the
Executive must perform services for the Corporation), except for required travel on business of the Corporation to an extent substantially
consistent with the Executive’s present business travel obligations.

 

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Good Reason shall, for all purposes under
this Agreement, be construed and administered in manner consistent with the definition of “good reason” under Treasury
Regulation §1.409A-1(n).

 

(f)               
Full Compensation. The payments made pursuant to this Section 2 shall be considered full compensation in payment for all
claims under this Agreement, and the Executive shall not be entitled to any other compensation. 

 

(g)              
Deduction for Amounts Due Corporation. Upon termination of the Executive’s employment with the Corporation, subject
to any restrictions imposed by applicable law, the Corporation shall have the right to deduct from the amount due the Executive
any amounts which the Executive owes the Corporation. Such right shall apply only to debts that were incurred in the ordinary course
of the employment relationship and in no event shall the Corporation have the right to deduct an amount in excess of $5,000 in
any year from any payment that would be considered deferred compensation under Section 409A of the Code. In no event shall the
Corporation have the discretion to deduct any amount pursuant to this Section 2(g) to the extent such deduction would be considered
a prohibited acceleration under Section 409A of the Code. Any offset under this Section 2(g) shall comply with Section 1.409A –
2(j)(4)(xiii) of the Treasury Regulations.

 

(h)              
Compliance with Section 409A of the Code. This Agreement is intended to comply with Section 409A of the Code and its corresponding
regulations, or an exemption, and payments may only be made in a manner permitted by Section 409A of the Code, to the extent applicable.
Severance benefits under the Agreement are intended to be exempt from Section 409A to the maximum extent possible under the "separation
pay exception, the “short-term deferral exception,” or another exception under Section 409A of the Code. For purposes
of Section 409A of the Code, the right to a series of installment payments under this Agreement shall be treated as a right to
a series of separate payments. In no event may the Executive, directly or indirectly, designate the calendar year of a payment.
If a payment obligation under this Agreement arises on account of the termination of Executive’s employment hereunder while
the Executive is a “specified employee” (as defined under Section 409A of the Code, and determined in good faith by
the Corporation), any payment of “deferred compensation” (as defined in Treasury Regulation Section 1.409A-1(b)(1),
after giving effect to the exemptions in Treasury Regulation Sections 1.409A-1(b)(3) through (b)(12)) that is scheduled to be paid
within six (6) months after such termination of employment shall be paid, with interest, in a lump sum, within 15 days after the
end of the six-month period beginning on the date of such termination or, if earlier, within 15 days after the appointment of the
personal representative or executor of the Executive’s estate following his death. 

 

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3.                 
Non-Solicitation.

 

(a)              
Restrictive Covenants. During the Executive’s employment with the Corporation and for 12 months after the Executive
ceases, for any reason, to be an employee of the Corporation, the Executive shall not, directly or indirectly, as owner, partner,
director, officer, employee, agent, consultant, advisor, contractor or otherwise, whether for consideration or without consideration,
for the benefit of any individual, group, corporation, partnership, trust, association, joint venture, pool, syndicate, sole proprietorship,
unincorporated organization or any other form of entity not specifically listed herein (a “Person”) other than
for the Corporation and/or any of its affiliates (the “Employer Group”), take any of the following actions:

 

(i)                       
solicit any Business Relation (as hereinafter defined) to purchase, or sell or otherwise provide to any Business Relation, any
products or services which are comparable to, or which are intended to substitute for, products or services offered by the Corporation
and/or any of its affiliates (the “Non-Compete Group”) during the Executive’s employment with the Corporation;

 

(ii)                       
employ, engage or solicit for employment or for engagement as an independent contractor or consultant, any Person who was employed
by, or any Person who was engaged as an independent contractor by, any member of the Non-Compete Group during the preceding 24
months;

 

(iii)                       
employ, engage or solicit for employment any employee of the Corporation, whether or not such employee is a full-time employee
or a temporary employee of the Corporation and whether or not such employment is pursuant to written agreement and whether or not
such employment is for a determined period or is at will; or

 

(iv)                       
encourage any Person to reduce its business with any member of the Non-Compete Group or to reduce its employment with or provision
of services to any member of the Non-Compete Group.

 

Provided, however,
that nothing in this Section 3(a) shall be deemed to prevent or limit the right of the Executive to own up to a five percent (5%)
interest in the securities of a Person that are registered under Section 12 of the Securities Exchange Act of 1934, as amended.

 

(b)              
Business Relation Defined. For purposes of this Agreement, the term “Business Relation” means any Person
who, at any time during the Executive’s employment with the Corporation, was a Person (i) that is or was a customer of any
member of the Non-Compete Group, (ii) that had entered into any contract or other arrangement with any member of the Non-Compete
Group for the provision of services or the sale of products, (iii) to whom any member of the Non-Compete Group furnished or planned
to furnish a proposal for the performance of services or the sale of products, or (iv) with whom any member of the Non-Compete
Group entered or agreed to enter into any other business relationship such as a joint venture, collaborative agreement, joint development
agreement, teaming arrangement or agreement, or similar arrangement or understanding for the provision of services or sale of products.

 

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4.                 
Confidential Information.

 

(a)              
Covenant. The Executive acknowledges that his relationship with the Corporation shall of necessity provide him with
specialized knowledge concerning the Employer Group, which, if used for the benefit of others or disclosed to others, could cause
serious harm to the Employer Group. Accordingly, the Executive covenants that he shall not at any time, directly or indirectly,
use, appropriate or disclose to others, or permit the use of or appropriation by or disclosure to others of, any Confidential Information
(as hereinafter defined) except as expressly provided herein.

 

(b)              
Permitted Use. While employed with the Corporation, the Executive may use Confidential Information only for the purpose
that is necessary to the carrying out of the Executive’s duties as set forth herein or assigned to him by the Corporation,
and the Executive may not make use of any Confidential Information after he is no longer an employee of the Corporation.

 

(c)              
Confidential Information Defined. For purposes of this Agreement, the term “Confidential Information”
means all information of any member of the Employer Group, whether oral, written, computerized, digitized or otherwise, regarding
the business of the Employer Group, including, without limitation, information regarding the Employer Group’s customers,
referral sources, insurance carriers, sales and marketing information, costs, prices, earnings, business plans, financial information
and forecasts, contracts, business arrangements, methods of operation, business strategies, prospects, and Intellectual Property
(as hereinafter defined), whether or not such information is deemed “trade secrets” under applicable law. Confidential
Information does not include information that (i) becomes generally available to the public other than as a result of disclosure
by the Executive in violation of this Agreement, (ii) was available to the public on a non-confidential basis from a source other
than the Employer Group, (iii) is made available to a third party on a non-confidential basis by the Employer Group, (iv) was already
known to the Executive at the time of disclosure by the Employer Group, or (v) is required to be disclosed by legal process or
applicable law.

 

5.                 
Intellectual Property. The Executive agrees that any and all information, reports, other documents and other works
(whether in an electronic format or otherwise) created by the Executive for or on behalf of the Corporation during the Executive’s
service with the Corporation, whether or not developed on the Corporation’s premises or equipment or during the Corporation’s
normal business hours (the “Intellectual Property”), are and shall remain works made for hire and the sole and
exclusive property of the Corporation. To the extent that such Intellectual Property is not considered work made for hire, the
Executive hereby assigns to the Corporation (or its nominee) any and all interest that the Executive may now or in the future have
in the Intellectual Property. Upon request by the Corporation, the Executive shall execute and deliver to the Corporation any document
or instrument that may be necessary to secure or perfect the Corporation’s title to or interest in any Intellectual Property
so assigned.

 

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6.                 
Return of Property. The Executive agrees that upon termination of his employment with the Corporation, he will:

 

(a)              
promptly return to the Corporation all Confidential Information, all Intellectual Property, and all other property of the
Corporation, including but not limited to all correspondence, manuals, notebooks, lists of customers and suppliers, computer programs,
disks and any documents, materials or property, whether written or stored on computerized medium, and all copies in his possession
or control;

 

(b)              
not take any action to preserve or regain access to such information through any means, including but not limited to access
to the Corporation’s facilities or through a computer or other digital or electronic means; and

 

(c)              
promptly pay all amounts due, owing or otherwise payable by him to the Corporation.

 

The Executive expressly
authorizes the Corporation to withhold any amounts payable to him, including for compensation, reimbursement and otherwise, until
he has complied with this Section 6, subject to the terms of Section 2(g).

 

7.                 
No Disparaging Statements. During the Executive’s employment with the Corporation and for 12 months after the
Executive ceases to be an employee of the Corporation, the Executive will not make any statements or comments of a disparaging
nature to third parties regarding any member of the Employer Group or its officers, directors, personnel or products.

 

8.                 
Executive’s Representations and Warranties.

 

(a)              
No Prior Agreements. The Executive represents and warrants that he is not a party to or otherwise subject to or bound
by the terms of any contract, agreement or understanding which in any manner would limit or otherwise affect his ability to perform
his obligations hereunder, including without limitation any contract, agreement or understanding containing terms and provisions
similar in any manner to those contained in Sections 3, 4, 5 or 7 of this Agreement.

 

(b)              
Confidential Information of Others. The Executive represents, warrants and covenants that he will not disclose to
the Corporation, or otherwise use in the course of his service with the Corporation, any confidential information which he is restricted
from disclosing or using pursuant to any other agreement or duty to any other person.

 

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9.                 
Remedies.

 

(a)              
Arbitration of Disputes. If a dispute arises with respect to the enforcement or interpretation of any provision of this
Agreement (other than a dispute to be resolved under Section 9(b)), then the parties hereto agree to submit the dispute to non-appealable
binding arbitration. Such arbitration shall be conducted before a board of three arbitrators, with one member selected by the Executive,
one member selected by the Employer, and the third member selected by the first two arbitrators. The party responsible for the
payment of the costs of such arbitration (including any legal fees and expenses incurred by the Executive) shall be determined
by the board of arbitrators. The board of arbitrators shall be bound by the rules of the American Arbitration Association in making
its determination. The parties hereto agree that they and their heirs, personal representatives, successors, and assigns shall
be bound by the decision of such board of arbitrators with respect to any controversy properly submitted to it for determination.

 

(b)              
Disputes Arising Under Sections 4 Through 8. The Executive recognizes that a violation by him of any provision of Sections
4 through 8, inclusive, of this Agreement may cause irreparable injury to the Corporation, and that there may be no adequate remedy
at law for such violation. Therefore, the Executive agrees that, in addition to any other remedies for its violation hereof available
to the Corporation, which shall include the recovery of all damages incurred, as well as reasonable attorney’s fees and other
costs, the Corporation shall have the right, in the event of the breach or threatened breach of any provision hereof by the Executive
to obtain an injunction and/or temporary restraining order against such breach or threatened breach or specifically enforce this
Agreement. The Corporation’s rights and remedies specified in this Section 9(b) are in addition to and not in lieu of any
rights available under applicable law and regulations, including, without limitation, those laws and regulations governing trade
secrets and other proprietary information.

 

10.             
Miscellaneous.

 

(a)              
Withholding of Taxes. All compensation and benefits payable pursuant to this Agreement shall be subject to all applicable
tax withholding requirements.

 

(b)              
Compliance with Banking Laws. Any payments made to the Executive pursuant to this Agreement, or otherwise, are subject to,
and conditioned upon their compliance with 12 U.S.C. Section 1828(k) and any regulations promulgated thereunder.

 

(c)              
Suspension of Employment by Regulators. In the event the Executive is temporarily prohibited from participating in the conduct
of the affairs of the Corporation pursuant to notice served by a regulatory agency having jurisdiction over the Corporation, unless
stayed by appropriate proceedings, then the Corporation’s obligations under this Agreement shall be suspended and the Executive
shall have no right to any payment of compensation, as of the date such notice is served on the Corporation. If the charges specified
in any such notice shall be dismissed, then the Corporation shall (i) pay the Executive any compensation withheld from the Executive
pursuant to the suspension of the Corporation’s obligations as required by this Section 10(c) as soon as practicable following
the completion of continued employment for 30 days following such dismissal and (ii) reinstate the obligations so suspended.

 

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(d)              
Entire Agreement; Amendment. This Agreement supersedes all prior agreements, written and oral, between the parties with
respect to its subject matter, is intended as a complete and exclusive statement of the terms of the agreement between the parties
with respect thereto, and may be amended only by a writing signed by both parties hereto. The Corporation and the Executive agree
to execute any and all amendments to this Agreement permitted under applicable law that the Corporation’s legal counsel determines
to be necessary to ensure compliance with the distribution provisions of Section 409A of the Code or to otherwise ensure that this
Agreement complies with Section 409A of the Code.

 

(e)              
Nonwaiver. The failure of either party to insist upon strict adherence to any term of this Agreement on any occasion will
not operate as a waiver or deprive that party of the right thereafter to insist upon strict adherence to that term or any other
term of this Agreement. Any waiver must be in a writing signed by the party to be charged therewith.

 

(f)               
Assignment. The Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their successors
and assigns and their representatives. This Agreement may not be assigned by either party without the consent of the other party,
except that the Corporation may assign all of its rights and delegate performance of all of its obligations hereunder in connection
with a Change in Control. 

 

(g)              
Counterparts. This Agreement may be executed in two or more counterparts, each of which will be an original, but all of
which together will constitute the same instrument.

 

(h)              
Headings. The headings in this Agreement are for convenience of reference only and should not be given any effect in the
interpretation of this Agreement.

 

(i)                
Governing Law. This Agreement shall be governed in all respects whether as to validity, construction, capacity, performance
or otherwise, by the laws of the State of Maryland, without regard to any provision that would result in the application of the
laws of any other state or jurisdiction, except to the extent that Federal law shall be deemed to apply. 

 

(j)                
Interpretation. This Agreement is intended to comply with, or otherwise be exempt from, Section 409A of the Code and any
regulations and Treasury guidance promulgated thereunder. If the Corporation determines in good faith that any provision of this
Agreement would cause the Executive to incur an additional tax, penalty, or interest under Section 409A of the Code, then the Corporation
and the Executive shall use reasonable efforts to reform such provision, if possible, in a mutually agreeable fashion to maintain
to the maximum extent practicable the original intent of the applicable provision without violating the provisions of Section 409A
of the Code or causing the imposition of such additional tax, penalty, or interest under Section 409A of the Code. As used in this
Agreement, the terms “termination of employment”, “resignation” and words of similar import mean, for purposes
of any payments under this Agreement that are payments of deferred compensation subject to Section 409A of the Code, the Executive’s
 “separation from service” as defined in Section 409A of the Code.

 

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(k)              
Severability. The provisions of this Agreement shall be deemed severable and the invalidity or unenforceability of any provision
shall not affect the validity and enforceability of the other provisions hereof.

 

(l)                
Employer Policies, Plans and Programs. Except as expressly provided otherwise in this Agreement, whenever any rights under
this Agreement depend on the terms of a policy, plan, or program established or maintained by the Employer Group, any determination
of such rights will be made on the basis of the policy, plan, or program in effect at the time as of which such determination is
made. No reference in this Agreement to any policy, plan, or program established or maintained by the Employer Group precludes
any member of the Employer Group from prospectively or retroactively changing or amending or terminating that policy, plan, or
program or adopting a new policy, plan, or program in lieu of the then existing policy, plan, or program.

 

(m)            
Survival of Terms. The provisions of Sections 2 through 7, inclusive, and Sections 9 and 10 of this Agreement shall survive
the termination of the Executive’s employment hereunder.

 

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

 

 

	ATTEST:	 	 
	 	 	 
	 	 	SHORE BANCSHARES, INC.
	 	 	 
	 	 	 
	/s/ W. David Morse	 	By: /s/ Donna J. Stevens
	W. David Morse, Secretary	 	Name: Donna J. Stevens
	 	 	Title:    SVP/COO
	 	 	 
	WITNESS:	 	EXECUTIVE:
	 	 	 
	 	 	 
	 /s/ W. David Morse	 	/s/ Lloyd L. Beatty, Jr
	W. David Morse, Secretary	 	Lloyd L. Beatty, Jr.
	 	 	 

 

 

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