SEC Contract Filing

Filing Date: 2017-03-16

Document Content:
<DOCUMENT>
<TYPE>EX-10.21
<SEQUENCE>2
<FILENAME>shbi-20161231xex10_21.htm
<DESCRIPTION>EXHIBIT 10.21
<TEXT>
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 EXHIBIT 1021
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 <font style="display: inline;font-weight:bold;">Employment Agreements</font>
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 <font style="display: inline;">On February 16, 2017, the Company and Mr. Beatty entered into an Amended and Restated Employment Agreement (the &#x201C;Employment Agreement&#x201D;) which provides that he will serve as our CEO and President, and entitles him to receive an annual base salary of $414,000 subject to periodic review and adjustment. In addition, Mr. Beatty is entitled to: (i) participate in our bonus plans; (ii) receive employee benefits of the type offered by the Company and its affiliates to similarly-situated officers, including vacation, sick leave and disability leave; (iii) receive fringe benefits of the type customarily made available by the Company to its officers; and (iv) be reimbursed for employment-related expenses.</font>
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 <font style="display: inline;">The Employment Agreement has a twelve-month term, which will automatically renew for successive twelve-month terms unless a party notifies the other party at least 60 days prior to the end of the then-current term of its or his decision not to renew the Employment Agreement. At least 120 days prior to the commencement of a new term, the Board or a committee thereof will conduct a comprehensive performance evaluation and review of Mr. Beatty to determine whether to give notice of non-renewal. The term of Mr. Beatty&#x2019;s employment under his Employment Agreement may be terminated at any time and for any reason by either the Company or Mr. Beatty (upon 30 days&#x2019; prior written notice), and it will automatically terminate upon Mr. Beatty&#x2019;s death.</font>
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 <font style="display: inline;">Generally, the Company&#x2019;s obligations to Mr. Beatty under his Employment Agreement will be suspended if any regulatory agency with jurisdiction over the Company temporarily prohibits the officer&#x2019;s continued employment. If such regulator&#x2019;s charges are later dismissed, then the Company must reinstate the officer and pay him all compensation that was withheld during the suspension.</font>
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 <font style="display: inline;">Upon the termination of his employment, Mr. Beatty is entitled to receive all unpaid base salary that has accrued through the date of termination, all bonus awards (prorated through the last day of the month in which termination occurs) that he would have received had he remained employed when bonuses are next declared or paid, and reimbursement of all unreimbursed expenses, all of which must be paid no later than the last day of the calendar quarter of the quarter in which the termination occurs. In addition, all unexercised or unvested equity awards, or portions thereof, held by the officer as of the date of termination shall vest or terminate and be exercisable in accordance with their terms.</font>
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 <font style="display: inline;">If Mr. Beatty&#x2019;s employment is terminated without &#x201C;Cause&#x201D; prior to the expiration of the term of his Employment Agreement, then, except in the case of termination following a &#x201C;Change in Control&#x201D; of the Company, he will additionally be entitled to receive severance (&#x201C;Severance&#x201D;) in the form of continued base salary (at the then-current level) for a period of 24 months following the date of termination (the &#x201C;Severance Period&#x201D;). The Employment Agreement provides that the first Severance payment will be made on the first regular payroll date that occurs on or after the 60 </font><font style="display: inline;font-size:8pt;font-size:4pt;vertical-align:super;line-height:100%">th</font><font style="display: inline;"> day following the termination of employment, provided that Mr. Beatty has executed and delivered a release of claims and the statutory period during which he may revoke that release has expired on or before that 60 </font><font style="display: inline;font-size:8pt;font-size:4pt;vertical-align:super;line-height:100%">th</font><font style="display: inline;"> day.</font>
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 <font style="display: inline;">In lieu of Severance, the Employment Agreement provides for the payment of a Change in Control benefit (the &#x201C;CiC Benefit&#x201D;) should the Company terminate Mr. Beatty&#x2019;s employment without Cause within 12 months of a Change in Control of the Company. In this case, Mr. Beatty will be entitled to receive an amount equal to the difference between (i) the produ