COMPENSATION ARRANGEMENT FOR LLOYD L. BEATTY, JR.

Exhibit 10.1

COMPENSATION ARRANGEMENT FOR XXXXX X. XXXXXX, XX.

Shore Bancshares, Inc. (the “Company”) and Xxxxx X. Xxxxxx, Xx., the Company’s Chief Operating Officer, are not party to a written employment agreement. Xx. Xxxxxx’x employment arrangement provides for an annual salary of $215,000, subject to annual adjustment. Xx. Xxxxxx is also entitled to participate in the Company’s bonus program, profit sharing and 401(k) plan, and group term life insurance program, to the extent the provisions and rules of those plans and programs permit such participation.