<SEC-DOCUMENT>0001144204-14-032683.txt : 20140521
<SEC-HEADER>0001144204-14-032683.hdr.sgml : 20140521
<ACCEPTANCE-DATETIME>20140521081516
ACCESSION NUMBER:		0001144204-14-032683
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		5
CONFORMED PERIOD OF REPORT:	20140520
ITEM INFORMATION:		Entry into a Material Definitive Agreement
ITEM INFORMATION:		Other Events
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20140521
DATE AS OF CHANGE:		20140521

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			SHORE BANCSHARES INC
		CENTRAL INDEX KEY:			0001035092
		STANDARD INDUSTRIAL CLASSIFICATION:	NATIONAL COMMERCIAL BANKS [6021]
		IRS NUMBER:				521974638
		STATE OF INCORPORATION:			MD
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-22345
		FILM NUMBER:		14859632

	BUSINESS ADDRESS:	
		STREET 1:		18 EAST DOVER STREET
		CITY:			EASTON
		STATE:			MD
		ZIP:			21601-3013
		BUSINESS PHONE:		4108221400

	MAIL ADDRESS:	
		STREET 1:		18 EAST DOVER STREET
		CITY:			EASTON
		STATE:			MD
		ZIP:			21601-3013
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>v379335_8k.htm
<DESCRIPTION>FORM 8-K
<TEXT>
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<P STYLE="margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>UNITED STATES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>SECURITIES AND EXCHANGE COMMISSION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>Washington, D.C. 20549</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>FORM 8-K</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>CURRENT REPORT</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>PURSUANT TO SECTION 13 OR 15(d) OF THE
</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>SECURITIES EXCHANGE ACT OF 1934</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">Date of Report (Date of earliest event reported):
May 21, 2014 (May 20, 2014)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B><U>SHORE BANCSHARES, INC.</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Exact name of registrant as specified in
its charter)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 33%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><U>Maryland</U></TD>
    <TD STYLE="width: 34%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><U>0-22345</U></TD>
    <TD STYLE="width: 33%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><U>52-1974638</U></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">(State or other jurisdiction of</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">(Commission file number)</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">(IRS Employer</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">incorporation or organization)</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Identification No.)</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><U>28969 Information Lane, Easton, Maryland
21601</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">(Address of principal executive offices)
(Zip Code)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">Registrant&rsquo;s telephone number, including
area code: <U>(410) 763-7800</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><U>N/A</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">(Former Name or Former Address, if Changed
Since Last Report)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Check the appropriate box below if the Form 8-K filing is intended
to simultaneously satisfy the filing obligations of the registrant under any of the following provisions:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Wingdings 2">&pound;</FONT></TD><TD>Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Wingdings 2">&pound;</FONT></TD><TD>Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Wingdings 2">&pound;</FONT></TD><TD>Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Wingdings 2">&pound;</FONT></TD><TD>Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;<B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Item&nbsp;1.01 Entry Into a Material Definitive Agreement</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 72.55pt">&nbsp;&#9;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 35.3pt">On May 20, 2014, Shore Bancshares, Inc.,
or the Company, and its wholly-owned bank subsidiaries, CNB, a Maryland commercial bank with trust powers, and The Talbot Bank
of Easton, Maryland, a Maryland commercial bank, which collectively are referred to as the Banks, entered into an underwriting
agreement, or the Underwriting Agreement, with Sandler O&rsquo;Neill + Partners, L.P., as underwriter, to issue and sell 3,600,000
shares of the Company&rsquo;s common stock, par value $0.01 per share, or Common Stock, at a public offering price of $8.25 per
share in an underwritten public offering, or the Offering. As part of the Offering, the Company granted the underwriter a 30-day
option to purchase up to an additional 540,000 shares of Common Stock to cover over-allotments, if any. The underwriting discounts
and commissions were $0.495 per share sold in the Offering. The net proceeds of the Offering, after underwriting discounts and
expenses, and without exercise of the underwriter&rsquo;s over-allotment option, will be approximately $27.5 million.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 35.3pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 35.3pt">The Underwriting Agreement contains customary
representations, warranties and covenants among the parties as of the date of entering into such Underwriting Agreement.&nbsp;
These representations, warranties and covenants are not factual information to investors about the Company or the Banks. A copy
of the Underwriting Agreement is filed as Exhibit&nbsp;1.1 to this Current Report on Form&nbsp;8-K and is incorporated herein by
reference. The description of the material terms of the Underwriting Agreement is qualified in its entirety by reference to Exhibit
1.1 to this Current Report on Form 8-K.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 35.3pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 35.3pt">Pursuant to the Underwriting Agreement,
directors and certain executive officers of the Company and the Banks entered into agreements in substantially the form included
as an exhibit to the Underwriting Agreement providing for a 90-day &ldquo;lock-up&rdquo; period with respect to sales of specified
securities, subject to certain exceptions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 35.3pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 35.3pt">The offer and sale of shares of
Common Stock to be sold in the Offering have been registered under the Securities Act of 1933, as amended, pursuant to
a shelf registration statement on Form&nbsp;S-3 (Registration No.&nbsp;333-195527) declared effective by the Securities
and Exchange Commission on May 8, 2014, or the Registration Statement. The offer and sale of the shares of Common Stock in
the Offering are described in the Company&rsquo;s prospectus constituting a part of the Registration Statement, as
supplemented by a final prospectus supplement dated May 20, 2014.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Item 8.01</B> <B>Other Events.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On May 21, 2014, the Company issued a press
release announcing the pricing of the public offering, a copy of which is included as Exhibit&nbsp;99.1 to this Current Report
on Form&nbsp;8-K.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Item</B> <B>9.01 Financial Statements and Exhibits.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(d) Exhibits.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD><U>Number</U></TD>
    <TD><U>Description</U></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 10%">1.1</TD>
    <TD STYLE="width: 90%">Underwriting Agreement</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>5.1</TD>
    <TD>Opinion of Patton Boggs LLP</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>23.1</TD>
    <TD>Consent of Patton Boggs LLP (included in Exhibit 5.1)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>99.1</TD>
    <TD>Press Release, dated May 21, 2014</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>SIGNATURES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD COLSPAN="2">SHORE BANCSHARES, INC.</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; width: 50%">Dated: May 21, 2014</TD>
    <TD STYLE="width: 3%">By:&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 47%">/s/ Lloyd L. Beatty, Jr.</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; border-top: black 1pt solid">Lloyd L. Beatty, Jr.<BR>
President and Chief Executive Officer</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;&nbsp;<B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>EXHIBIT INDEX</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Exhibit</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD><U>Number</U></TD>
    <TD><U>Description</U></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 10%">1.1</TD>
    <TD STYLE="width: 90%">Underwriting Agreement</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>5.1</TD>
    <TD>Opinion of Patton Boggs LLP</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>23.1</TD>
    <TD>Consent of Patton Boggs LLP (included in Exhibit 5.1)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>99.1</TD>
    <TD>Press Release, dated May 21, 2014</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<DOCUMENT>
<TYPE>EX-1.1
<SEQUENCE>2
<FILENAME>v379335_ex1-1.htm
<DESCRIPTION>EXHIBIT 1.1
<TEXT>
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<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>3,600,000 Shares of Common Stock</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SHORE BANCSHARES, INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Common Stock, par value $0.01 per share</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><U>UNDERWRITING AGREEMENT</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">May 20, 2014</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">SANDLER O&rsquo;NEILL &amp; PARTNERS, L.P.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: left">&nbsp;&nbsp;1251 Avenue of the
Americas, 6th Floor</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">New York, New York 10020</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Ladies and Gentlemen:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Shore Bancshares, Inc.,
a Maryland corporation (the &ldquo;Company&rdquo;), confirms its agreement with Sandler O&rsquo;Neill &amp; Partners, L.P. (&ldquo;Sandler&rdquo;)
with respect to (i) the sale by the Company and the purchase by Sandler of an aggregate of 3,600,000 shares of Common Stock, par
value $0.01 per share, of the Company (&ldquo;Common Stock&rdquo;), and (ii) the grant by the Company to Sandler of the option
described in Section&nbsp;2(b) hereof to purchase all or any part of 540,000 additional shares of Common Stock. The aforesaid 3,600,000
shares of Common Stock (the &ldquo;Initial Securities&rdquo;) to be purchased by Sandler and all or any part of the 540,000 shares
of Common Stock subject to the option described in Section 2(b) hereof (the &ldquo;Option Securities&rdquo;) are hereinafter called,
collectively, the &ldquo;Securities&rdquo;.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company understands
that Sandler proposes to make a public offering of the Securities as soon as Sandler deems advisable after this Underwriting Agreement
has been executed and delivered.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company has filed
with the Securities and Exchange Commission (the &ldquo;Commission&rdquo;) a registration statement on Form S-3 (No. 333-195527),
covering the registration of the Securities under the Securities Act of 1933, as amended (the &ldquo;1933 Act&rdquo;). The registration
statement (including the exhibits thereto and schedules thereto, if any) as amended at the time it became effective, or, if a post-effective
amendment has been filed with respect thereto, as amended by such post-effective amendment at the time of its effectiveness (including
in each case the information (if any) deemed to be part of such registration statement at the time of effectiveness pursuant to
Rule 430A under the Act), is hereinafter referred to as the &ldquo;Registration Statement.&rdquo; The term &ldquo;Effective Date&rdquo;
shall mean each date that the Registration Statement and any post-effective amendment or amendments thereto became or become effective.
The term &ldquo;Base Prospectus&rdquo; shall mean the prospectus referred to in Section 1(a)(i) hereof contained in the Registration
Statement at the Effective Date. &ldquo;Preliminary Prospectus&rdquo; means any preliminary prospectus supplement to the Base Prospectus
used prior to the filing of the Prospectus, together with the Base Prospectus; the term &ldquo;Prospectus&rdquo; means the final
prospectus supplement to the Base Prospectus first filed with the Commission pursuant to Rule 424(b) under the Act, together with
the Base Prospectus. Any registration statement filed pursuant to Rule 462(b) under the Act is herein referred to as the &ldquo;Rule
462(b) Registration Statement,&rdquo; and after such filing the term &ldquo;Registration Statement&rdquo; shall include the Rule
462(b) Registration Statement. For purposes of this Underwriting Agreement, all references to the Registration Statement, any Preliminary
Prospectus, the Prospectus or any amendment or supplement to any of the foregoing shall be deemed to include the copy filed with
the Commission pursuant to its Electronic Data Gathering, Analysis and Retrieval system (&ldquo;EDGAR&rdquo;).</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As used in this Underwriting
Agreement:</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&ldquo;<I>Applicable
Time</I>&rdquo; means 6:00 p.m. (Eastern time) on May 20, 2014, or such other time as agreed by the Company and Sandler.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&ldquo;<I>General Disclosure
Package</I>&rdquo; means the Issuer-Represented General Free Writing Prospectus(es) (as defined below) issued at or prior to the
Applicable Time and the Preliminary Prospectus relating to the Securities dated May 14, 2014, all considered together.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&ldquo;<I>Issuer-Represented
Free Writing Prospectus</I>&rdquo; means any &ldquo;issuer free writing prospectus,&rdquo; as defined in Rule 433 of the 1933 Act
Regulations (&ldquo;<I>Rule 433</I>&rdquo;), relating to the Securities that (i) is required to be filed with the Commission by
the Company or (ii) is exempt from filing pursuant to Rule 433(d)(5)(i) because it contains a description of the Securities or
of the offering that does not reflect the final terms, in each case in the form filed or required to be filed with the Commission
or, if not required to be filed, in the form retained in the Company&rsquo;s records pursuant to Rule 433(g).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&ldquo;<I>Issuer-Represented
General Free Writing Prospectus</I>&rdquo; means any Issuer-Represented Free Writing Prospectus that is intended for general distribution
to prospective investors, as evidenced by its being specified in Schedule A hereto.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&ldquo;<I>Issuer-Represented
Limited Use Free Writing Prospectus</I>&rdquo; means any Issuer-Represented Free Writing Prospectus that is not an Issuer-Represented
General Free Writing Prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">All references in this
Underwriting Agreement to financial statements and schedules and other information which is &ldquo;contained,&rdquo; &ldquo;included&rdquo;
or &ldquo;stated&rdquo; in the Registration Statement, any Preliminary Prospectus, the General Disclosure Package or the Prospectus
(or other references of like import) shall be deemed to mean and include all such financial statements and schedules and other
information which is incorporated by reference in the Registration Statement, any Preliminary Prospectus, the General Disclosure
Package or the Prospectus, as the case may be; and all references in this Underwriting Agreement to amendments or supplements to
the Registration Statement, any Preliminary Prospectus, the General Disclosure Package or the Prospectus shall be deemed to mean
and include the filing of any document under the Securities Exchange Act of 1934 (the &ldquo;1934 Act&rdquo;) which is incorporated
by reference in the Registration Statement, such Preliminary Prospectus, the General Disclosure Package or the Prospectus, as the
case may be.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">SECTION 1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Representations
and Warranties and Agreements</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Representations
and Warranties by the Company</I>. The Company represents and warrants to Sandler as of the date hereof, as of the Closing Time
referred to in Section 2(c) hereof, and as of each Date of Delivery (if any) referred to in Section 2(b) hereof, and agrees with
Sandler, as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 2in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Compliance
with Registration Requirements</U>. (A) At the time of filing the Registration Statement, any 462(b) Registration Statement and
any post-effective amendments thereto, and (B) at the date hereof, the Company was not an &ldquo;ineligible issuer&rdquo; as defined
in Rule 405 of the 1933 Act Regulations (&ldquo;Rule 405&rdquo;). The Company satisfies the registrant eligibility requirements
for the use of Form S-3 under the 1933 Act set forth in General Instruction I.A to such form and the transactions contemplated
by this Underwriting Agreement and satisfies the transaction eligibility requirements for the use of Form S-3 as set forth in General
Instruction I.B.1 to such form. The Company has filed with the Commission the Registration Statement on Form S-3, including a Base
Prospectus, for registration under the 1933 Act of the offer and sale of the Securities, and the Company may have filed with the
Commission one or more amendments to such Registration Statement, each in the form previously delivered to Sandler. Such Registration
Statement, as so amended, has been declared effective by the Commission, and the Securities have been registered under the Registration
Statement in compliance with the requirements for the use of Form S-3. The Base Prospectus includes all information required by
the 1933 Act and the rules and regulations of the Commission thereunder to be included therein as of the Effective Date. The Company
has complied to the Commission&rsquo;s satisfaction with all requests of the Commission for additional or supplemental information;
and no stop order suspending the effectiveness of the Registration Statement and any post-effective amendment thereto or any Rule
462(b) Registration Statement has been issued and no proceeding for that purpose has been initiated or, to the knowledge of the
Company, threatened by the Commission.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">After the execution
of this Underwriting Agreement, the Company will file with the Commission pursuant to Rules 415 and 424(b)(2) or (5) a final supplement
to the Base Prospectus included in such Registration Statement relating to the Securities and the offering thereof, with such information
as is required or permitted by the 1933 Act and as has been provided to and approved by Sandler prior to the date hereof or, to
the extent not completed at the date hereof, containing only such specific additional information and other changes (beyond that
contained in the Base Prospectus and any Preliminary Prospectus) as the Company has advised Sandler, prior to the date hereof,
will be included or made therein. If the Company has elected to rely on Rule 462(b) and the Rule 462(b) Registration Statement
is not effective, (A) the Company will file a Rule 462(b) Registration Statement in compliance with, and that is effective upon
filing pursuant to, Rule 462(b) and (B) the Company has given irrevocable instructions for transmission of the applicable filing
fee in connection with the filing of the Rule 462(b) Registration Statement, in compliance with Rule 111 under the 1933 Act, or
the Commission has received payment of such filing fee.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">At the respective times
the Registration Statement, any Rule 462(b) Registration Statement and any post-effective amendments thereto became effective and
at the Closing Time (and, if any Option Securities are purchased, at the Date of Delivery), the Registration Statement, the Rule
462(b) Registration Statement and any amendments and supplements thereto complied and will comply in all material respects with
the requirements of the 1933 Act and the 1933 Act Regulations and did not and will not contain an untrue statement of a material
fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading,
when considered together with any Preliminary Prospectus, and the Prospectus, any Preliminary Prospectus and any supplement thereto,
at their respective times of issuance and at the Closing Time, complied and will comply in all material respects with any applicable
laws or regulations of jurisdictions in which the Prospectus and such Preliminary Prospectus, as amended or supplemented, if applicable,
are distributed in connection with the offer and sale of Securities in such jurisdictions. Neither the General Disclosure Package
as of the Applicable Time, nor the Prospectus nor any amendments or supplements thereto at the time the Prospectus as of its date
or any such amendment or supplement was issued and at the Closing Time (and, if any Option Securities are purchased, at the Date
of Delivery), included or will include an untrue statement of a material fact or omitted or will omit to state a material fact
necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading.
The representations and warranties in this paragraph shall not apply to statements in or omissions from the Registration Statement,
any Preliminary Prospectus or the Prospectus made in reliance upon and in conformity with written information furnished to the
Company by Sandler expressly for use therein, it being understood that the only written information that Sandler has furnished
to the Company specifically for inclusion in the Registration Statement, any Preliminary Prospectus and the Prospectus (or any
amendment or supplement thereto) are (i) its name on the front and back covers of the Prospectus and in the table in the section
entitled &ldquo;Underwriting,&rdquo; (ii)&nbsp;the concession and reallowance figures appearing in the Prospectus plus its name
on the front and back cover and in the table in the Underwriting Section, in the section entitled &ldquo;Underwriting,&rdquo; (iii)
the Underwriters&rsquo; reservation of the right to withdraw, cancel or modify the offer contemplated by this Agreement and to
reject orders in whole or in part in the Prospectus under the section entitled &ldquo;Underwriting,&rdquo; and, (iv) the effecting
of stabilization transactions, over-allotment transactions, syndicate covering transactions and, if applicable, penalty bids in
which the Underwriter may engage, as described in the Prospectus in the section entitled &ldquo;Underwriting&rdquo; (such information
being collectively referred to herein as the &ldquo;<U>Underwriter Information</U>&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 2in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Each preliminary prospectus
and the prospectus filed as part of the Registration Statement as originally filed or as part of any amendment thereto, or filed
pursuant to Rule 424 under the 1933 Act, complied when so filed in all material respects with the 1933 Act and the 1933 Act Regulations
and each Preliminary Prospectus and the Prospectus delivered to Sandler for use in connection with this offering was identical
to the electronically transmitted copies thereof filed with the Commission pursuant to EDGAR, except to the extent permitted by
Regulation S-T.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As of the Applicable
Time, neither (x) the General Disclosure Package nor (y) any individual Issuer-Represented Limited Use Free Writing Prospectus,
when considered together with the General Disclosure Package, or any amendment or supplement thereto, included any untrue statement
of a material fact or omitted to state any material fact necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading. The representations and warranties in this paragraph shall not apply
to statements in or omissions from the General Disclosure Package or any Issuer-Represented Limited Use Free Writing Prospectus
made in reliance upon and in conformity with the Underwriter Information.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Issuer-Represented
Free Writing Prospectuses</U>. Each Issuer-Represented Free Writing Prospectus, as of its issue date and at all subsequent times
through the completion of the public offer and sale of the Securities or until any earlier date that the issuer notified or notifies
Sandler, did not, does not and will not include any information that conflicted, conflicts or will conflict with the information
contained in the Registration Statement, the General Disclosure Package or the Prospectus, including any document incorporated
by reference therein and any preliminary or other prospectus deemed to be a part thereof that has not been superseded or modified.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Incorporated
Documents</U>. The documents incorporated or deemed to be incorporated by reference in the Registration Statement, the General
Disclosure Package and the Prospectus, when they became effective or at the time they were or hereafter are filed with the Commission,
complied and will comply in all material respects with the requirements of the 1933 Act and the 1933 Act Regulations or the 1934
Act and the rules and regulations of the Commission thereunder (the &ldquo;1934 Act Regulations&rdquo;), as applicable, and, when
read together with the other information in the Registration Statement, at the time the Registration Statement became effective,
with the Prospectus at the time the Prospectus was issued and at the Closing Time (and, if any Option Securities are purchased,
at the Date of Delivery), and with the General Disclosure Package as of the Applicable Time, did not and will not contain an untrue
statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements
therein not misleading.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(iv)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Independent
Accountants</U>. Stegman &amp; Company, the accounting firm that certified the financial statements and supporting schedules of
the Company included in the Registration Statement, the General Disclosure Package and the Prospectus, is an independent registered
public accounting firm as required by the 1933 Act and the rules and regulations of the Commission thereunder (the &ldquo;1933
Act Regulations&rdquo;). Stegman &amp; Company is a registered public accounting firm, as defined by the Public Company Accounting
Oversight Board, whose registration, to the knowledge of the Company, has not been suspended or revoked and who has not requested
such registration to be withdrawn. With respect to the Company and to the knowledge of the Company, Stegman &amp; Company is not
and has not been in violation of the auditor independence requirements of the Sarbanes-Oxley Act of 2002 (&ldquo;Sarbanes-Oxley
Act&rdquo;) and the related rules and regulations of the Commission.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(v)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Financial
Statements</U>. The financial statements included in the Registration Statement, the General Disclosure Package and the Prospectus,
together with the related schedules and notes, present fairly the financial position of the Company and its consolidated subsidiaries
at the dates indicated and the statement of operations, stockholders&rsquo; equity and cash flows of the Company and its consolidated
subsidiaries for the periods specified; said financial statements have been prepared in conformity with generally accepted accounting
principles (&ldquo;GAAP&rdquo;) applied on a consistent basis throughout the periods involved. The supporting schedules, if any,
included in the Registration Statement, the General Disclosure Package and the Prospectus present fairly in accordance with GAAP
the information required to be stated therein. The selected financial data and the summary financial information included in the
Registration Statement, the General Disclosure Package and the Prospectus present fairly the information shown therein and have
been compiled on a basis consistent with that of the audited financial statements included in the Registration Statement, the General
Disclosure Package and the Prospectus and the books and records of the Company. No other financial statements or schedules are
required to be included in the Registration Statement, the General Disclosure Package or the Prospectus. To the extent applicable,
all disclosures contained in the Registration Statement, the General Disclosure Package, any Issuer-Represented Free Writing Prospectus
or the Prospectus regarding &ldquo;non-GAAP financial measures&rdquo; (as such term is defined by the rules and regulations of
the Commission) comply with Regulation G of the 1934 Act, the 1934 Act Regulations and Item 10 of the Commission&rsquo;s Regulation
S-K, as applicable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(vi)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>No
Material Change in Business</U>. Since the respective dates as of which information is given in the Registration Statement, the
General Disclosure Package and the Prospectus, except as otherwise stated therein, (A)&nbsp;there has been no material adverse
change in the condition, financial or otherwise, or in the earnings, business affairs or business prospects of the Company and
its subsidiaries considered as one enterprise, whether or not arising in the ordinary course of business (a &ldquo;Material Adverse
Effect&rdquo;), (B)&nbsp;there have been no transactions entered into by the Company or any of its subsidiaries, other than those
in the ordinary course of business, which are material with respect to the Company and its subsidiaries considered as one enterprise,
and (C) except for regular quarterly dividends on the Common Stock in amounts per share that are consistent with past practice,
there has been no dividend or distribution of any kind declared, paid or made by the Company on any class of its capital stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(vii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Good
Standing of the Company</U>. The Company has been duly organized and is validly existing as a corporation in good standing under
the laws of the state of Maryland and has corporate power and authority to own, lease and operate its properties and to conduct
its business as described in the Registration Statement, the General Disclosure Package and the Prospectus and to enter into and
perform its obligations under this Underwriting Agreement; and the Company is duly qualified as a foreign corporation to transact
business and is in good standing in each other jurisdiction in which such qualification is required, whether by reason of the ownership
or leasing of property or the conduct of business, except where the failure so to qualify or to be in good standing would not result
in a Material Adverse Effect.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(viii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Good
Standing of Subsidiaries</U>. Each of the Company&rsquo;s subsidiaries (for purposes of this Underwriting Agreement, as defined
in Rule 405 under the Securities Act) has been duly organized and is validly existing as a corporation in good standing under the
laws of the jurisdiction of its incorporation, has corporate power and authority to own, lease and operate its properties and to
conduct its business as described in the Registration Statement, the General Disclosure Package and the Prospectus and is duly
qualified as a foreign corporation to transact business and is in good standing in each jurisdiction in which such qualification
is required, whether by reason of the ownership or leasing of property or the conduct of business, except where the failure so
to qualify or to be in good standing would not result in a Material Adverse Effect. The only subsidiaries of the Company are the
subsidiaries listed on Schedule B hereto.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(ix)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Capitalization</U>.
The authorized, issued and outstanding capital stock of the Company is as set forth in the Registration Statement, the General
Disclosure Package and the Prospectus in the column entitled &ldquo;Actual&rdquo; under the caption &ldquo;Capitalization&rdquo;
(except for subsequent issuances, if any, pursuant to this Underwriting Agreement, pursuant to reservations, agreements or employee
benefit plans referred to in the Registration Statement, the General Disclosure Package and the Prospectus or pursuant to the exercise
of convertible securities or options disclosed in the Registration Statement, the General Disclosure Package and the Prospectus).
The shares of issued and outstanding capital stock have been duly authorized and validly issued and are fully paid and non-assessable;
none of the outstanding shares of capital stock was issued in violation of the preemptive or other similar rights of any securityholder
of the Company. All of the issued and outstanding capital stock of each subsidiary has been duly authorized and validly issued,
is fully paid and non-assessable and is owned by the Company, directly or through subsidiaries, free and clear of any security
interest, mortgage, pledge, lien, encumbrance, claim or equity; none of the outstanding shares of capital stock of any subsidiary
was issued in violation of any preemptive or similar right of any securityholder of such subsidiary.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(x)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Authorization
of Agreement</U>. This Underwriting Agreement has been duly authorized, executed and delivered by the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(xi)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Authorization
and Description of Securities</U>. The Securities to be purchased by Sandler from the Company have been duly authorized for issuance
and sale to Sandler pursuant to this Underwriting Agreement and, when issued and delivered by the Company pursuant to this Underwriting
Agreement against payment of the consideration set forth herein, will be validly issued and fully paid and non-assessable; the
Common Stock conforms to all statements relating thereto contained in the Registration Statement, the General Disclosure Package
and the Prospectus and such description conforms to the rights set forth in the instruments defining the same; no holder of the
Securities will be subject to personal liability for the debts of the Company by reason of being such a holder; and the issuance
of the Securities is not subject to the preemptive or other similar rights of any securityholder of the Company.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(xii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Absence
of Defaults and Conflicts</U>. Neither the Company nor any of its subsidiaries is (A) in violation of its charter or by-laws or
(B) in default in the performance or observance of any obligation, agreement, covenant or condition contained in any contract,
indenture, mortgage, deed of trust, loan or credit agreement, note, lease or other agreement or instrument to which the Company
or any of its subsidiaries is a party or by which it or any of them may be bound, or to which any of the property or assets of
the Company or any subsidiary is subject (collectively, &ldquo;Agreements and Instruments&rdquo;) except for such defaults that
would not, individually or in the aggregate, result in a Material Adverse Effect; and the execution, delivery and performance of
this Underwriting Agreement by the Company and its banking subsidiaries, CNB and The Talbot Bank of Easton, Maryland (the &ldquo;Banks&rdquo;)
and the consummation of the transactions contemplated herein and in the Registration Statement, the General Disclosure Package
and the Prospectus (including the issuance and sale of the Securities and the use of the proceeds from the sale of the Securities
as described in the Registration Statement, the General Disclosure Package and the Prospectus under the caption &ldquo;Use of Proceeds&rdquo;)
and compliance by the Company and the Banks with their obligations hereunder have been duly authorized by all necessary corporate
action and do not and will not, whether with or without the giving of notice or passage of time or both, conflict with or constitute
a breach of, or default or Repayment Event (as defined below) under, or result in the creation or imposition of any lien, charge
or encumbrance upon any property or assets of the Company or any subsidiary pursuant to, the Agreements and Instruments (except
for such conflicts, breaches or defaults or liens, charges or encumbrances that would not result in a Material Adverse Effect),
nor will such action result in any violation of the provisions of the charter or by-laws of the Company or any subsidiary or any
applicable law, statute, rule, regulation, judgment, order, writ or decree of any government, government instrumentality or court,
domestic or foreign, having jurisdiction over the Company or any subsidiary or any of their assets, properties or operations. As
used herein, a &ldquo;Repayment Event&rdquo; means any event or condition which gives the holder of any note, debenture or other
evidence of indebtedness or obligation of the Company or any of its subsidiaries (or any person acting on such holder&rsquo;s behalf)
the right to require the repurchase, redemption or repayment of all or a portion of such note, debenture or other evidence of indebtedness
or obligation by the Company or any subsidiary.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(xiii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Absence
of Labor Dispute</U>. No labor dispute with the employees of the Company or any subsidiary exists or, to the knowledge of the Company,
is imminent, and the Company is not aware of any existing or imminent labor disturbance by the employees of any of its or any subsidiary&rsquo;s
principal suppliers, manufacturers, customers or contractors, which, in either case, may reasonably be expected to result in a
Material Adverse Effect.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(xiv)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Absence
of Proceedings</U>. There is no action, suit, proceeding, inquiry or investigation before or brought by any court or governmental
agency or body, domestic or foreign, now pending, or, to the knowledge of the Company, threatened, against or affecting the Company
or any subsidiary, which is required to be disclosed in the Registration Statement, the General Disclosure Package and the Prospectus
(other than as disclosed therein), or which might reasonably be expected to result in a Material Adverse Effect, or which might
reasonably be expected to materially and adversely affect the properties or assets thereof or the consummation of the transactions
contemplated in this Underwriting Agreement or the performance by the Company of its obligations hereunder; the aggregate of all
pending legal or governmental proceedings to which the Company or any subsidiary is a party or of which any of their respective
property or assets is the subject which are not described in the Registration Statement, the General Disclosure Package and the
Prospectus, including ordinary routine litigation incidental to the business, could not reasonably be expected to result in a Material
Adverse Effect.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(xv)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Accuracy
of Exhibits</U>. There are no contracts or documents which are required to be described in the Registration Statement, the General
Disclosure Package, the Prospectus or the documents incorporated by reference therein or to be filed as exhibits thereto which
have not been so described and filed as required.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(xvi)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Possession
of Intellectual Property</U>. The Company and its subsidiaries own or possess, or can acquire on reasonable terms, adequate patents,
patent rights, licenses, inventions, copyrights, know-how (including trade secrets and other unpatented and/or unpatentable proprietary
or confidential information, systems or procedures and excluding generally commercially available &ldquo;off the shelf&rdquo; software
programs licensed pursuant to shrink wrap or &ldquo;click and accept&rdquo; licenses), trademarks, service marks, trade names or
other intellectual property (collectively, &ldquo;Intellectual Property&rdquo;) necessary to carry on the business now operated
by them, and neither the Company nor any of its subsidiaries has received any notice or is otherwise aware of any infringement
of or conflict with asserted rights of others with respect to any Intellectual Property or of any facts or circumstances which
would render any Intellectual Property invalid or inadequate to protect the interest of the Company or any of its subsidiaries
therein, and which infringement or conflict (if the subject of any unfavorable decision, ruling or finding) or invalidity or inadequacy,
singly or in the aggregate, would result in a Material Adverse Effect.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(xvii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Absence
of Further Requirements</U>. No filing with, or authorization, approval, consent, license, order, registration, qualification or
decree of, any court or governmental authority or agency is necessary or required for the performance by the Company of its obligations
hereunder, in connection with the offer, issuance or sale of the Securities hereunder or the consummation of the transactions contemplated
by this Underwriting Agreement, except such as have been already obtained or as may be required under the 1933 Act or the 1933
Act Regulations or state securities laws.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(xviii)&nbsp;&nbsp;&nbsp;&nbsp;<U>Possession
of Licenses and Permits</U>. The Company and its subsidiaries possess such permits, licenses, approvals, consents and other authorizations
(collectively, &ldquo;Governmental Licenses&rdquo;) issued by the appropriate federal, state, local or foreign regulatory agencies
or bodies necessary to conduct the business now operated by them; the Company and its subsidiaries are in compliance with the terms
and conditions of all such Governmental Licenses, except where the failure so to comply would not, singly or in the aggregate,
have a Material Adverse Effect; all of the Governmental Licenses are valid and in full force and effect, except where the invalidity
of such Governmental Licenses or the failure of such Governmental Licenses to be in full force and effect would not have a Material
Adverse Effect; and neither the Company nor any of its subsidiaries has received any notice of proceedings relating to the revocation
or modification of any such Governmental Licenses which, singly or in the aggregate, if the subject of an unfavorable decision,
ruling or finding, would result in a Material Adverse Effect. Neither the Company nor any of its subsidiaries has failed to file
with applicable regulatory authorities any statement, report, information or form required by any applicable law, regulation or
order, except where the failure to be so in compliance would not, individually or in the aggregate, have a Material Adverse Effect,
all such filings were in material compliance with applicable laws when filed and no material deficiencies have been asserted by
any regulatory commission, agency or authority with respect to any such filings or submissions.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(xix)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Title
to Property</U>. The Company and its subsidiaries have good and marketable title to all real property owned by the Company and
its subsidiaries and good title to all other properties owned by them, in each case, free and clear of all mortgages, pledges,
liens, security interests, claims, restrictions or encumbrances of any kind except such as (a) are described in the Registration
Statement, the General Disclosure Package and the Prospectus or (b) do not, singly or in the aggregate, materially affect the value
of such property and do not interfere with the use made and proposed to be made of such property by the Company or any of its subsidiaries;
and all of the leases and subleases material to the business of the Company and its subsidiaries, considered as one enterprise,
and under which the Company or any of its subsidiaries holds properties described in the Registration Statement, the General Disclosure
Package and the Prospectus, are in full force and effect, and neither the Company nor any subsidiary has any notice of any material
claim of any sort that has been asserted by anyone adverse to the rights of the Company or any subsidiary under any of the leases
or subleases mentioned above, or affecting or questioning the rights of the Company or such subsidiary to the continued possession
of the leased or subleased premises under any such lease or sublease.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(xx)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Investment
Company Act.</U> The Company is not, and upon the issuance and sale of the Securities as herein contemplated and the application
of the net proceeds therefrom as described in the Registration Statement, the General Disclosure Package and the Prospectus will
not be, an &ldquo;investment company&rdquo; or an entity &ldquo;controlled&rdquo; by an &ldquo;investment company&rdquo; as such
terms are defined in the Investment Company Act of 1940, as amended (the &ldquo;1940 Act&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(xxi)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Environmental
Laws</U>. Except as described in the Registration Statement, the General Disclosure Package and the Prospectus and except as would
not, singly or in the aggregate, result in a Material Adverse Effect, (A) neither the Company nor any of its subsidiaries is in
violation of any federal, state, local or foreign statute, law, rule, regulation, ordinance, code, policy or rule of common law
or any judicial or administrative interpretation thereof, including any judicial or administrative order, consent, decree or judgment,
relating to pollution or protection of human health, the environment (including, without limitation, ambient air, surface water,
groundwater, land surface or subsurface strata) or wildlife, including, without limitation, laws and regulations relating to the
release or threatened release of chemicals, pollutants, contaminants, wastes, toxic substances, hazardous substances, petroleum
or petroleum products, asbestos-containing materials or mold (collectively, &ldquo;Hazardous Materials&rdquo;) or to the manufacture,
processing, distribution, use, treatment, storage, disposal, transport or handling of Hazardous Materials (collectively, &ldquo;Environmental
Laws&rdquo;), (B) the Company and its subsidiaries have all permits, authorizations and approvals required under any applicable
Environmental Laws and are each in compliance with their requirements, (C) there are no pending or, to the knowledge of the Company,
threatened administrative, regulatory or judicial actions, suits, demands, demand letters, claims, liens, notices of noncompliance
or violation, investigation or proceedings relating to any Environmental Law against the Company or any of its subsidiaries and
(D) there are no events or circumstances that might reasonably be expected to form the basis of an order for clean-up or remediation,
or an action, suit or proceeding by any private party or governmental body or agency, against or affecting the Company or any of
its subsidiaries relating to Hazardous Materials or any Environmental Laws.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(xxii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Taxes</U>.
The Company and each of the subsidiaries has (a) timely filed all material foreign, United States federal, state and local tax
returns, information returns, and similar reports that are required to be filed (taking into account valid extensions), and all
tax returns are true, correct and complete, (b) paid in full all taxes required to be paid by it and any other assessment, fine
or penalty levied against it, except for any such tax assessment, fine or penalty that is currently being contested in good faith
or as would not have, individually or in the aggregate, a Material Adverse Effect, and (c) established on the most recent balance
sheet reserves that are adequate for the payment of all taxes not yet due and payable.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(xxiii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Insurance</U>.
The Company and its subsidiaries carry, or are covered by, insurance in such amounts and covering such risks as the Company reasonably
believes are adequate for the conduct of the business of the Company and its subsidiaries and the value of their properties and
as are customary in the business in which the Company and its subsidiaries are engaged; neither the Company nor any of its subsidiaries
has been refused any insurance coverage sought or applied for; and the Company has no reason to believe that they will not be able
to renew their existing insurance coverage as and when such coverage expires or to obtain similar coverage from similar insurers
as may be necessary to continue its business at a cost that would not have a Material Adverse Effect.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(xxiv)&nbsp;&nbsp;&nbsp;&nbsp;<U>Statistical
and Market Data</U>. The statistical and market related data contained in the Registration Statement, the General Disclosure Package
and the Prospectus are based on or derived from sources which the Company believes, after reasonable inquiry, are reliable and
accurate and such data agree with the sources from which they are derived. To the extent required, the Company has obtained written
consent to the use of such data from the relevant third party sources.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(xxv)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Relationship</U>.
No relationship, direct or indirect, exists between or among the Company or any of its subsidiaries, on the one hand, and the directors,
officers, stockholders, customers or suppliers of the Company or any of its subsidiaries, on the other, that is required by the
1933 Act, the 1933 Act Regulations, the 1934 Act or the 1934 Act Regulations to be described in the Registration Statement, the
General Disclosure Package and the Prospectus and that is not so described.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(xxvi)&nbsp;&nbsp;&nbsp;&nbsp;<U>Internal
Control Over Financial Reporting</U>. The Company maintains a system of internal control over financial reporting, as defined in
Rule 13a-15 under the 1934 Act, that complies with the requirements of the 1934 Act to provide reasonable assurance that: (A) transactions
are executed in accordance with management&rsquo;s general or specific authorizations; (B) transactions are recorded as necessary
to permit preparation of financial statements in conformity with generally accepted accounting principles and to maintain asset
accountability; (C) access to assets is permitted only in accordance with management&rsquo;s general or specific authorization;
and (D) the recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate action
is taken with respect to any differences. Except as described in the Registration Statement, General Disclosure Package and Prospectus,
since the end of the Company&rsquo;s most recent audited fiscal year, there has been (A) no material weakness in the Company&rsquo;s
internal control over financial reporting (whether or not remediated) and (B) no change in the Company&rsquo;s internal control
over financial reporting that has materially affected, or is reasonably likely to materially affect, the Company&rsquo;s internal
control over financial reporting. Further, based on its most recent evaluation of the internal control over financial reporting,
as required by Rule 13a-15 under the 1934 Act, the Company is not aware of (A) any significant deficiency in the design or operation
of the internal control over financial reporting which could adversely affect the Company&rsquo;s ability to record, process, summarize
and report financial data or any material weaknesses in the internal control over financial reporting or (B) any fraud, whether
or not material, that involves management or other employees who have a significant role in the Company&rsquo;s internal control
over financial reporting.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(xxvii)&nbsp;&nbsp;&nbsp;<U>Disclosure
Controls and Procedures</U>. The Company and its subsidiaries maintain disclosure controls and procedures (as such term is defined
in Rule 13a-15 under the 1934 Act), which (A) are designed to ensure that information required to be disclosed by the Company in
the reports that it files or submits under the 1934 Act is recorded, processed, summarized and reported within the time periods
specified in the Commission&rsquo;s rules and forms and that material information relating to the Company and its subsidiaries
is made known to the Company&rsquo;s principal executive officer and principal financial officer by others within the Company and
its subsidiaries to allow timely decisions regarding disclosure, and (B) are effective in all material respects to perform the
functions for which they were established.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(xxviii)&nbsp;&nbsp;<U>Compliance
with the Sarbanes-Oxley Act</U>. There is and has been no failure on the part of the Company or any of the Company&rsquo;s directors
or officers, in their capacities as such, to comply in all material respects with any provision of the Sarbanes-Oxley Act of 2002
and the rules and regulations promulgated in connection therewith (the &ldquo;Sarbanes-Oxley Act&rdquo;), including Section 402
related to loans and Sections 302 and 906 related to certifications.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(xxix)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Pending
Procedures and Examinations</U>. The Registration Statement is not the subject of a pending proceeding or examination under Section
8(d) or 8(e) of the 1933 Act, and the Company is not the subject of a pending proceeding under Section 8A of the 1933 Act in connection
with the offering of the Securities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(xxx)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Unlawful
Payments</U>. Neither the Company nor any of its subsidiaries nor, to the knowledge of the Company, any director, officer, agent,
employee or other person associated with or acting on behalf of the Company or any of its subsidiaries has: (A) used any corporate
funds for any unlawful contribution, gift, entertainment or other unlawful expense relating to political activity; (B) made any
direct or indirect unlawful payment to any foreign or domestic government official or employee from corporate funds; (C) violated
or is in violation of any provision of the Foreign Corrupt Practices Act of 1977; or (D) made any bribe, rebate, payoff, influence
payment, kickback or other unlawful payment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(xxxi)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>No
Registration Rights</U>. No person has the right to require the Company or any of its subsidiaries to register any securities for
sale under the 1933 Act by reason of the filing of the Registration Statement with the Commission or the issuance and sale of the
Securities to be sold by the Company hereunder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(xxxii)&nbsp;&nbsp;&nbsp;&nbsp;<U>No
Preemptive Rights</U>. There are no authorized or outstanding preemptive rights, rights of first refusal or other similar rights
to purchase, or equity or debt securities convertible into or exchangeable or exercisable for, any capital stock of the Company
or any of its subsidiaries except for such rights as have been duly waived and are described in the Registration Statement, General
Disclosure Package and Prospectus. All such waivers are in full force and effect on the date hereof.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(xxxiii)&nbsp;&nbsp;&nbsp;<U>No
Stabilization or Manipulation</U>. Neither the Company nor any of its subsidiaries, nor, to the knowledge of the Company, any affiliates
of the Company or its subsidiaries, have taken, directly or indirectly, any action designed to or that could reasonably be expected
to cause or result in any stabilization or manipulation of the price of the Securities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(xxxiv)&nbsp;&nbsp;&nbsp;<U>No
Unauthorized Use of Prospectus</U>. The Company has not distributed and, prior to the later to occur of (i) the Closing Time and
(ii) completion of the distribution of the Securities, will not distribute any prospectus (as such term is defined in the 1933
Act and the 1933 Act Regulations) in connection with the offer and sale of the Securities other than the Registration Statement,
any Preliminary Prospectus, the Prospectus or other materials, if any, permitted by the 1933 Act or by the 1933 Act Regulations
and approved by Sandler.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(xxxv)&nbsp;&nbsp;&nbsp;&nbsp;<U>Forward-Looking
Statements</U>. No forward-looking statement (within the meaning of Section 27A of the 1933 Act and Section 21E of the 1934 Act)
contained in the Registration Statement, the General Disclosure Package and the Prospectus has been made or reaffirmed without
a reasonable basis or has been disclosed other than in good faith.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(xxxvi)&nbsp;&nbsp;&nbsp;<U>Lock-up
Agreements</U>. Each of the Company&rsquo;s executive officers and directors and 5% or greater stockholders, in each case as listed
on Schedule C hereto, has executed and delivered lock-up agreements as contemplated by Section 5(i) hereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(xxxvii)&nbsp;&nbsp;<U>Fees</U>.
Other than as contemplated by this Underwriting Agreement, there is no broker, finder or other party that is entitled to receive
from the Company or any subsidiary any brokerage or finder&rsquo;s fee or any other fee, commission or payment as a result of the
transactions contemplated by this Underwriting Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(xxxviii)&nbsp;&nbsp;<U>ERISA</U>.
The Company and each of the subsidiaries or their &ldquo;ERISA Affiliates&rdquo; (as defined below) are in compliance in all material
respects with all presently applicable provisions of the Employee Retirement Income Security Act of 1974, as amended, including
the regulations and published interpretations thereunder (&ldquo;ERISA&rdquo;); no &ldquo;reportable event&rdquo; (as defined in
ERISA) has occurred with respect to any &ldquo;employee benefit plan&rdquo; (as defined in ERISA) for which the Company or any
of the subsidiaries or ERISA Affiliates would have any liability; the Company and each of the subsidiaries or their ERISA Affiliates
have not incurred and do not expect to incur liability under (A) Title IV of ERISA with respect to termination of, or withdrawal
from, any &ldquo;employee benefit plan&rdquo; or (B) Sections 412, 4971, 4975 or 4980B of the United States Internal Revenue Code
of 1986, as amended, and the regulations and published interpretations thereunder (collectively the &ldquo;Code&rdquo;); and each
&ldquo;employee benefit plan&rdquo; for which the Company and each of its subsidiaries or any of their ERISA Affiliates would have
any liability that is intended to be qualified under Section 401(a) of the Code is so qualified in all material respects and nothing
as occurred, whether by action or by failure to act, which would cause the loss of such qualification. &ldquo;ERISA Affiliate&rdquo;
means, with respect to the Company or a subsidiary, any member of any group of organizations described in Sections 414(b), (c),
(m) or (o) of the Code or Section 400(b) of ERISA of which the Company or such subsidiary is a member.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(xxxix)&nbsp;&nbsp;&nbsp;&nbsp;<U>Bank
Holding Company Act; Banking Regulation</U>. The Company is duly registered as a financial holding company under the Bank Holding
Company Act of 1956, as amended. The Company&rsquo;s subsidiary, CNB, holds the requisite authority to do business as a trust company
with banking powers under the laws of the state of Maryland. The Company&rsquo;s subsidiary, The Talbot Bank of Easton, Maryland
(&ldquo;Talbot Bank&rdquo;), holds the requisite authority to do business as a state-chartered bank under the laws of the state
of Maryland.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(xl)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>No
Regulatory Proceedings</U>. Except as disclosed in the Registration Statement, the General Disclosure Package and the Prospectus,
(A) neither the Company nor any of its subsidiaries is a party to or subject to any order, decree, agreement, memorandum of understanding
or similar agreement with, or a commitment letter, supervisory letter or similar submission to, any federal, state or local court
or governmental entity (each a &ldquo;Governmental Entity&rdquo;) charged with the supervision or regulation of depository institutions
or engaged in the insurance of deposits (including the Federal Deposit Insurance Corporation (&ldquo;FDIC&rdquo;)) or the supervision
or regulation of the Company or any of its subsidiaries; (B) neither the Company nor any of its subsidiaries has been advised by
any such Governmental Entity that such Governmental Entity is contemplating issuing or requesting (or is considering the appropriateness
of issuing or requesting) any such order, decree, agreement, memorandum of understanding, commitment letter, supervisory letter
or similar submission; and (C) there is no unresolved violation, criticism or exception by any such Governmental Entity with respect
to any report or statement relating to any examinations of the Company or any of its subsidiaries which, in the reasonable judgment
of the Company, currently results in or is expected to result in a Material Adverse Effect.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(xli)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Compliance
with Applicable Laws</U>. Except as disclosed in the Registration Statement, the General Disclosure Package and the Prospectus,
or where the failure to be in compliance would not result in a Material Adverse Effect, the Company and its subsidiaries conduct
their respective businesses in compliance with all federal, state, local and foreign statutes, laws, rules, regulations, decisions,
directives and orders applicable to them (including, without limitation, all applicable regulations and orders of, or agreements
with, the Board of Governors of the Federal Reserve System, the FDIC, the Maryland Commissioner of Financial Regulation, and the
Equal Credit Opportunity Act, the Fair Housing Act, the Community Reinvestment Act, the Home Mortgage Disclosure Act, all other
applicable fair lending laws or other laws relating to discrimination, the Bank Secrecy Act, Title III of the USA Patriot Act,
the Currency and Foreign Transaction Reporting Act of 1970, as amended, and the money laundering statutes of all jurisdictions,
the rules and regulations thereunder and any related or similar rules, regulations or guidelines, issued, administered or enforced
by any Governmental Entity). Neither the Company nor its subsidiaries has received any communication from any Governmental Entity
asserting that the Company or any subsidiary is not in compliance with any statute, law, rule, regulation, decision, directive
or order, except where the asserted failure to comply would not result in a Material Adverse Effect.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(xlii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Deposit
Insurance</U>. The deposit accounts of each of the Banks are insured by the FDIC up to the legal maximum, each of the Banks has
paid all premiums and assessments required by the FDIC and the regulations thereunder and no proceeding for the termination or
revocation of such insurance is pending or, to the knowledge of the Company, threatened.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(xliii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>OFAC</U>.
Neither the Company nor any of its subsidiaries, nor, to the Company&rsquo;s knowledge, any director, officer, agent, employee,
affiliate or person acting on behalf of the Company or any of its subsidiaries, is currently subject to any U.S. sanctions administered
by the Office of Foreign Assets Control of the U.S. Treasury Department (&ldquo;OFAC&rdquo;); and the Company will not, and will
cause all of its subsidiaries not to, knowingly directly or indirectly use the proceeds of the sale of the Securities, or lend,
contribute or otherwise make available such proceeds to any subsidiaries, joint venture partner or other person or entity, towards
any sales or operations in any country sanctioned by OFAC or for the purpose of financing the activities of any person currently
subject to any U.S. sanctions administered by OFAC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(xliv)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Insurance
Subsidiaries</U>. Each subsidiary of the Company and the Banks that is engaged in the business of acting as an insurance agency
or premium finance company (an &ldquo;Insurance subsidiary&rdquo;) is duly licensed or registered with any applicable regulatory
authorities in each jurisdiction where it is required to be so licensed or registered to conduct its business, except where the
failure to be so licensed or registered would not have a Material Adverse Effect; each Insurance subsidiary has all other necessary
approvals of and from all applicable regulatory authorities, to conduct its businesses, except where the failure to have such approvals
would not have a Material Adverse Effect; no Insurance subsidiary has received any notification from any applicable regulatory
authority to the effect that any additional approvals from such regulatory authority are needed to be obtained by such subsidiary
and have not been obtained, in any case where it could be reasonably expected that the Insurance subsidiary will be unable to obtain
such additional approvals and the failure to obtain any such additional approvals would require such subsidiary to cease or otherwise
materially limit the conduct of its business; and each Insurance subsidiary is in compliance with the requirements of insurance
laws and regulations of each jurisdiction that are applicable to such subsidiary, and has filed all notices, reports, documents
or other information required to be filed thereunder, with such exceptions as would not have, individually or in the aggregate,
a Material Adverse Effect.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(xlv)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Investment
Securities</U>. Each of the Company and its subsidiaries has good and marketable title to all securities held by it (except securities
sold under repurchase agreements or held in any fiduciary or agency capacity) free and clear of any lien, claim, charge, option,
encumbrance, mortgage, pledge or security interest or other restriction of any kind, except to the extent such securities are pledged
in the ordinary course of business consistent with prudent business practices to secure obligations of the Company or any of its
subsidiaries and except for such defects in title or liens, claims, charges, options, encumbrances, mortgages, pledges or security
interests or other restrictions of any kind that would not be material to the Company and its subsidiaries. Such securities are
valued on the books of the Company and its subsidiaries in accordance with GAAP.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(xlvi)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Derivative
Securities</U>. Except as would not reasonably be expected to result in a Material Adverse Effect, all material swaps, caps, floors,
futures, forward contracts, option agreements (other than employee stock options) and other derivative financial instruments, contracts
or arrangements, whether entered into for the account of the Company or one of its subsidiaries or for the account of a customer
of the Company or one of its subsidiaries, were entered into in the ordinary course of business and in accordance and in all material
respects with applicable laws, rules, regulations and policies of all applicable regulatory agencies and with counterparties believed
to be financially responsible at the time. The Company and each of its subsidiaries have duly performed in all material respects
all of their obligations thereunder to the extent that such obligations to perform have accrued. Neither the Company nor any of
its subsidiaries, nor, to the knowledge of the Company, any other party thereto, is in breach of its material obligations under
any such agreement or arrangement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(xlvii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Subsidiary
Dividend Restrictions</U>. Except as disclosed in each of the Registration Statement, the General Disclosure Package and the Prospectus,
no subsidiary of the Company is currently prohibited, directly or indirectly, under any order of any Governmental Entity (other
than orders applicable to bank holding companies and their subsidiaries generally), under any applicable law, or under any agreement
or other instrument to which it is a party or is subject, from paying any dividends to the Company, from making any other distribution
on such subsidiary&rsquo;s capital stock, from repaying to the Company any loans or advances to such subsidiary from the Company
or from transferring any of such subsidiary&rsquo;s properties or assets to the Company or any other subsidiary of the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Representations
and Warranties by CNB.</I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CNB represents and warrants to Sandler as of the date hereof, as
of the Closing Time referred to in Section 2(c) hereof, and as of each Date of Delivery (if any) referred to in Section 2(b) hereof,
and agrees with Sandler as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CNB
has been duly chartered and is validly existing as a state-chartered trust company with banking powers in good standing under the
laws of the state of Maryland with the corporate power and authority to own, lease and operate its properties and to conduct its
business as described in the Registration Statement, the General Disclosure Package and the Prospectus and to enter into and perform
its obligations under this Underwriting Agreement, and has been duly qualified as a foreign bank for the transaction of business
and is in good standing under the laws of each other jurisdiction in which it owns or leases properties or conducts any business
so as to require such qualification except where the failure so to qualify or to be in good standing would not result in a Material
Adverse Effect.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Neither
CNB nor any of its subsidiaries is in violation of its charter, bylaws or other organizational or governing documents or in default
in the performance or observance of any obligation, agreement, covenant or condition contained in any contract, indenture, mortgage,
deed of trust, loan agreement, note, lease or other agreement or instrument to which CNB or any of its subsidiaries is a party
or by which any of them is bound or to which any of the property or assets of CNB or any of its subsidiaries is subject (collectively,
&ldquo;CNB Instruments&rdquo;) except for such defaults that would not, individually or in the aggregate, result in a Material
Adverse Effect.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CNB
does not have any subsidiaries other than Cedar Commons Business Trust, a Maryland business trust. Cedar Commons Business Trust
was formed for the purpose of holding and managing a single piece of foreclosed real estate and is not material to the business
or operations of CNB or the Company.</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(iv)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
Underwriting Agreement has been duly authorized, executed and delivered by CNB and, when duly executed by Sandler, will constitute
the valid and binding agreement of CNB enforceable against CNB in accordance with its terms, except as enforcement thereof may
be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws relating to or affecting creditors&rsquo;
rights generally or by general equitable principles and except as any indemnification or contribution provisions thereof may be
limited under applicable securities and bank regulatory laws.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(v)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
execution, delivery and performance of this Underwriting Agreement by CNB, compliance by CNB with all of the provisions of this
Underwriting Agreement and the consummation of the transactions herein contemplated do not and will not contravene, conflict with,
or result in a breach or violation of any of the terms or provisions of, or constitute a default under, any CNB Instrument, except
for such contraventions, conflicts, breaches, violations or defaults that would not, individually or in the aggregate, result in
a Material Adverse Effect, nor does or will any such action contravene, conflict with or result in a breach or violation of any
of the terms or provisions of the charter or by-laws of CNB or any statute, order, rule or regulation of any court or Governmental
Entity having jurisdiction over CNB or any of its subsidiaries or any of their properties.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Representations
and Warranties by Talbot Bank.</I> Talbot Bank represents and warrants to Sandler as of the date hereof, as of the Closing Time
referred to in Section 2(c) hereof, and as of each Date of Delivery (if any) referred to in Section 2(b) hereof, and agrees with
Sandler as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Talbot
Bank has been duly chartered and is validly existing as a state-chartered bank in good standing under the laws of the state of
Maryland with the corporate power and authority to own, lease and operate its properties and to conduct its business as described
in the Registration Statement, the General Disclosure Package and the Prospectus and to enter into and perform its obligations
under this Underwriting Agreement, and has been duly qualified as a foreign bank for the transaction of business and is in good
standing under the laws of each other jurisdiction in which it owns or leases properties or conducts any business so as to require
such qualification except where the failure so to qualify or to be in good standing would not result in a Material Adverse Effect.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Neither
Talbot Bank nor any of its subsidiaries is in violation of its charter, bylaws or other organizational or governing documents or
in default in the performance or observance of any obligation, agreement, covenant or condition contained in any contract, indenture,
mortgage, deed of trust, loan agreement, note, lease or other agreement or instrument to which Talbot Bank or any of its subsidiaries
is a party or by which any of them is bound or to which any of the property or assets of Talbot Bank or any of its subsidiaries
is subject (collectively, &ldquo;Talbot Bank of Easton Instruments&rdquo;) except for such defaults that would not, individually
or in the aggregate, result in a Material Adverse Effect.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Talbot
Bank does not have any subsidiaries other than Dover Street Realty, Inc. Talbot Bank&rsquo;s subsidiary has been duly organized
and is validly existing as a corporation in good standing under the laws of the jurisdiction of its incorporation, has corporate
power and authority to own, lease and operate its properties and to conduct its business as described in the Registration Statement,
the General Disclosure Package and the Prospectus and is duly qualified as a foreign corporation to transact business and is in
good standing in each jurisdiction in which such qualification is required, whether by reason of the ownership or leasing of property
or the conduct of business, except where the failure so to qualify or to be in good standing would not result in a Material Adverse
Effect. Except as otherwise disclosed in the Registration Statement, the General Disclosure Package and the Prospectus, all of
the issued and outstanding capital stock of such subsidiary has been duly authorized and validly issued, is fully paid and non-assessable
and is owned by Talbot Bank, directly or through subsidiaries, free and clear of any security interest, mortgage, pledge, lien,
encumbrance, claim or equity; none of the outstanding shares of capital stock of the subsidiary was issued in violation of the
preemptive or similar rights of any securityholder of such subsidiary.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(iv)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
Underwriting Agreement has been duly authorized, executed and delivered by Talbot Bank and, when duly executed by Sandler, will
constitute the valid and binding agreement of Talbot Bank enforceable against Talbot Bank in accordance with its terms, except
as enforcement thereof may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws relating to or
affecting creditors&rsquo; rights generally or by general equitable principles and except as any indemnification or contribution
provisions thereof may be limited under applicable securities and bank regulatory laws.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(v)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
execution, delivery and performance of this Underwriting Agreement by Talbot Bank, compliance by Talbot Bank with all of the provisions
of this Underwriting Agreement and the consummation of the transactions herein contemplated do not and will not contravene, conflict
with, or result in a breach or violation of any of the terms or provisions of, or constitute a default under, any Talbot Bank of
Easton Instrument, except for such contraventions, conflicts, breaches, violations or defaults that would not, individually or
in the aggregate, result in a Material Adverse Effect, nor does or will any such action contravene, conflict with or result in
a breach or violation of any of the terms or provisions of the charter or by-laws of Talbot Bank or any statute, order, rule or
regulation of any court or Governmental Entity having jurisdiction over Talbot Bank or its subsidiary or any of their properties.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">SECTION 2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Sale
and Delivery to Sandler; Closing</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Initial
Securities.</I> On the basis of the representations and warranties herein contained and subject to the terms and conditions herein
set forth, the Company agrees to sell to Sandler, and Sandler agrees to purchase from the Company, at a purchase price per share
of $7.755, the Initial Securities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Option
Securities.</I> In addition, on the basis of the representations and warranties herein contained and subject to the terms
and conditions herein set forth, the Company hereby grants an option to Sandler to purchase up to an additional 540,000
shares of Common Stock at a purchase price per share of $7.755, less an amount per share equal to any dividends or distributions
declared by the Company and payable on the Initial Securities but not payable on the Option Securities. The option hereby
granted will expire 30&nbsp;days after the date hereof and may be exercised in whole or in part from time to time upon notice
by Sandler to the Company setting forth the number of Option Securities as to which Sandler is then exercising the option and
the time and date of payment and delivery for such Option Securities. Any such time and date of delivery (a &ldquo;Date of
Delivery&rdquo;) shall be determined by Sandler, but shall not be later than seven full business days after the exercise of
said option, nor in any event prior to the Closing Time, as hereinafter defined.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Payment.</I>
Payment of the purchase price for the Initial Securities shall be made pursuant to Section 2(d) below, delivery of the Initial
Securities shall be made to the Designated Office (as defined below), and the documents to be delivered at the Closing Time (as
defined below) shall be made at the offices of Ober, Kaler, Grimes &amp; Shriver, a Professional Corporation, 100 Light Street,
Baltimore, Maryland 21202, or at such other place as shall be agreed upon by Sandler and the Company, at 9:00&nbsp;A.M. (Eastern
time) on the third (fourth, if the pricing occurs after 4:30 P.M. (Eastern time) on any given day) business day after the date
hereof, or such other time not later than ten business days after such date as shall be agreed upon by Sandler and the Company
(such time and date of payment and delivery being herein called &ldquo;Closing Time&rdquo;).</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In addition, in the
event that any or all of the Option Securities are purchased by Sandler, payment of the purchase price for the Option Securities
shall be made pursuant to Section 2(d) below, delivery of the Option Securities shall be made to the Designated Office, and the
documents to be delivered on the Date of Delivery shall be made at the above-mentioned offices, or at such other place as shall
be agreed upon by Sandler and the Company, on each Date of Delivery as specified in the notice from Sandler to the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Denominations;
Registration.</I> The Securities to be purchased by Sandler hereunder, in definitive form, and in such authorized denominations
and registered in such names as Sandler may request upon at least one full business day prior notice before the Closing Time or
the relevant Date of Delivery, as the case may be, to the Company, shall be delivered by or on behalf of the Company to Sandler,
through the facilities of the Depository Trust Company (&ldquo;DTC&rdquo;), for the account of Sandler, against payment by or on
behalf of Sandler of the purchase price therefor by wire transfer of Federal (same day) funds to the account specified by the Company
to Sandler at least one business day in advance. The certificates for the Initial Securities and the Option Securities, if any,
will be made available for examination and packaging by Sandler in the City of New York at the office of DTC or its designated
custodian (the &ldquo;Designated Office&rdquo;) not later than 10:00&nbsp;A.M. (Eastern time) on the business day prior to the
Closing Time or the relevant Date of Delivery, as the case may be.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">SECTION 3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Covenants
of the Company</U>. The Company covenants with Sandler as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Compliance
with Securities Regulations and Commission Requests.</I> The Company, subject to Section 3(b), will comply with the requirements
of Rule 430A and will notify Sandler immediately, and confirm the notice in writing, (i)&nbsp;when any post-effective amendment
to the Registration Statement shall become effective, or any supplement to the Prospectus or any amended Prospectus shall have
been filed, (ii)&nbsp;of the receipt of any comments from the Commission, (iii)&nbsp;of any request by the Commission for any amendment
to the Registration Statement or any amendment or supplement to the Prospectus or for additional information, (iv)&nbsp;of the
issuance by the Commission of any stop order suspending the effectiveness of the Registration Statement or of any order preventing
or suspending the use of any Preliminary Prospectus, or of the suspension of the qualification of the Securities for offering or
sale in any jurisdiction, or of the initiation or threatening of any proceedings for any of such purposes or of any examination
pursuant to Section 8(e) of the 1933 Act concerning the Registration Statement and (v) if the Company becomes the subject of a
proceeding under Section 8A of the 1933 Act in connection with the offering of the Securities. The Company will promptly effect
the filings necessary pursuant to Rule 424(b) in the manner and within the time period required by Rule 424(b) (without reliance
on Rule 424(b)(8)) and will take such steps as it deems necessary to ascertain promptly whether the form of prospectus transmitted
for filing under Rule 424(b) was received for filing by the Commission and, in the event that it was not, it will promptly file
such prospectus. The Company will make every reasonable effort to prevent the issuance of any stop order and, if any stop order
is issued, to obtain the lifting thereof at the earliest possible moment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Filing
of Amendments.</I> The Company will give Sandler notice of its intention to file or prepare any amendment to the Registration Statement
(including any filing under Rule 462(b)), or any amendment, supplement or revision to either any Preliminary Prospectus (including
the prospectus included in the Registration Statement at the time it became effective) or to the Prospectus, whether pursuant to
the 1933 Act, the 1934 Act or otherwise, will furnish Sandler with copies of any such documents a reasonable amount of time prior
to such proposed filing or use, as the case may be, and will not file or use any such document to which Sandler or Sandler's counsel
shall object.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Delivery
of Registration Statements.</I> The Company has furnished or will deliver to Sandler and Sandler's counsel, without charge, as
many signed copies as Sandler may reasonably request of the Registration Statement as originally filed and of each amendment thereto
(including exhibits filed therewith or incorporated by reference therein and documents incorporated or deemed to be incorporated
by reference therein) and as many signed copies as Sandler may reasonably request of all consents and certificates of experts,
and will also deliver to Sandler, without charge, as many conformed copies as Sandler may reasonably request of the Registration
Statement as originally filed and of each amendment thereto (without exhibits). The copies of the Registration Statement and each
amendment thereto furnished to Sandler will be identical to the electronically transmitted copies thereof filed with the Commission
pursuant to EDGAR, except to the extent permitted by Regulation S-T.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Delivery
of Prospectuses.</I> The Company has delivered to Sandler, without charge, as many copies of each Preliminary Prospectus as Sandler
reasonably requested, and the Company hereby consents to the use of such copies for purposes permitted by the 1933 Act. The Company
will furnish to Sandler, without charge, during the period when the Prospectus is required to be delivered under the 1933 Act or
the 1934 Act, such number of copies of the Prospectus (as amended or supplemented) as Sandler may reasonably request. The Prospectus
and any amendments or supplements thereto furnished to Sandler will be identical to the electronically transmitted copies thereof
filed with the Commission pursuant to EDGAR, except to the extent permitted by Regulation S-T.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Continued
Compliance with Securities Laws.</I> The Company will comply with the 1933 Act and the 1933 Act Regulations and the 1934 Act and
the 1934 Act Regulations so as to permit the completion of the distribution of the Securities as contemplated in this Underwriting
Agreement and in the Registration Statement, the General Disclosure Package and the Prospectus. If at any time when a prospectus
is required by the 1933 Act to be delivered in connection with sales of the Securities, any event shall occur or condition shall
exist as a result of which it is necessary, in the reasonable opinion of counsel for Sandler or for the Company, to amend the Registration
Statement or amend or supplement any Preliminary Prospectus or the Prospectus in order that such Preliminary Prospectus or Prospectus
will not include any untrue statements of a material fact or omit to state a material fact necessary in order to make the statements
therein not misleading in the light of the circumstances existing at the time it is delivered to a purchaser, or if it shall be
necessary, in the reasonable opinion of such counsel, at any such time to amend the Registration Statement or amend or supplement
any Preliminary Prospectus or the Prospectus in order to comply with the requirements of the 1933 Act or the 1933 Act Regulations,
the Company will promptly prepare and file with the Commission, subject to Section 3(b), such amendment or supplement as may be
necessary to correct such statement or omission or to make the Registration Statement or any Preliminary Prospectus or the Prospectus
comply with such requirements, and the Company will furnish to Sandler such number of copies of such amendment or supplement as
Sandler may reasonably request. If at any time following issuance of an Issuer-Represented Free Writing Prospectus there occurred
or occurs an event or development as a result of which such Issuer-Represented Free Writing Prospectus conflicted or would conflict
with the information contained in the Registration Statement or contained or would contain an untrue statement of a material fact
required to be stated therein or necessary to make the statements therein not misleading, the Company has promptly notified or
will promptly notify Sandler and has promptly amended or will promptly amend or supplement, at its own expense, such Issuer-Represented
Free Writing Prospectus to eliminate or correct such conflict, untrue statement or omission. If at any time following issuance
of an Issuer-Represented Free Writing Prospectus there occurred or occurs an event or development as a result of which such Issuer-Represented
Free Writing Prospectus conflicted or would conflict with the information contained in the Prospectus or included or would include
an untrue statement of a material fact or omitted or would omit to state a material fact necessary in order to make the statements
therein, in the light of the circumstances prevailing at that subsequent time, not misleading, the Company has promptly notified
or will promptly notify Sandler and has promptly amended or will promptly amend or supplement, at its own expense, such Issuer-Represented
Free Writing Prospectus to eliminate or correct such conflict, untrue statement or omission.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Blue Sky Qualifications.</I> The Company will use its reasonable best efforts, in
cooperation with Sandler, to qualify the Securities for offering and sale under the applicable securities laws of such states
and other jurisdictions as Sandler may designate and to maintain such qualifications in effect for a period of not less than
one year from the later of the effective date of the Registration Statement and any Rule 462(b) Registration Statement;
provided that the Company shall not be obligated to file any general consent to service of process or to qualify as a foreign
corporation or as a dealer in securities in any jurisdiction in which it is not so qualified or to subject itself to taxation
in respect of doing business in any jurisdiction in which it is not otherwise so subject. In each jurisdiction in which the
Securities have been so qualified, the Company will file such statements and reports as may be required by the laws of such
jurisdiction to continue such qualification in effect for a period of not less than one year from the effective date of the
Registration Statement and any Rule 462(b) Registration Statement. The Company will also supply Sandler with such information
as is necessary for the determination of the legality of the Securities for investment under the laws of such jurisdiction as
Sandler may request.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Rule
158.</I> The Company will timely file such reports pursuant to the 1934 Act as are necessary in order to make generally available
to its securityholders as soon as practicable an earnings statement for the purposes of, and to provide the benefits contemplated
by, the last paragraph of Section 11(a) of the 1933 Act.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Use
of Proceeds.</I> The Company will use the net proceeds received by it from the sale of the Securities in the manner specified in
the Registration Statement, the General Disclosure Package and the Prospectus under &ldquo;Use of Proceeds&rdquo;.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Listing.</I>
The Company will use its best efforts to effect and maintain the listing of the Securities on the Nasdaq Global Select Market and
will file with the Nasdaq Stock Market LLC (&ldquo;NASDAQ&rdquo;) all documents and notices required by NASDAQ of companies that
have securities that are listed on the Nasdaq Global Select Market.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(j)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Restriction
on Sale of Securities.</I> During a period of 90 days from the date of the Prospectus, the Company will not, without the prior
written consent of Sandler, (i) directly or indirectly, offer, pledge, sell, contract to sell, sell any option or contract to purchase,
purchase any option or contract to sell, grant any option, right or warrant to purchase or otherwise transfer or dispose of any
share of Common Stock or any securities convertible into or exercisable or exchangeable for Common Stock or file any registration
statement under the 1933 Act with respect to any of the foregoing or (ii) enter into any swap or any other agreement or any transaction
that transfers, in whole or in part, directly or indirectly, the economic consequence of ownership of the Common Stock, whether
any such swap or transaction described in clause (i) or (ii) above is to be settled by delivery of Common Stock or such other securities,
in cash or otherwise. The foregoing sentence shall not apply to (A) the Securities to be sold hereunder, (B) any shares of Common
Stock issued by the Company upon the exercise of an option or warrant or the conversion of a security outstanding on the date hereof
and disclosed in the Registration Statement, General Disclosure Package and Prospectus, (C) any shares of Common Stock issued or
options to purchase Common Stock granted pursuant to existing employee benefit plans of the Company disclosed in the Registration
Statement, the General Disclosure Package and the Prospectus, provided that such options shall not be vested and exercisable within
the 90-day period referred to above, or (D) any shares of Common Stock issued pursuant to any non-employee director stock plan
or dividend reinvestment plan.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(k)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Reporting
Requirements.</I> The Company, during the period when the Prospectus is required to be delivered under the 1933 Act or the 1934
Act, will file all documents required to be filed with the Commission pursuant to the 1934 Act within the time periods required
by the 1934 Act and the 1934 Act Regulations taking into account the applicable time periods contemplated by Rule 12b-25 of the
Exchange Act.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(l)&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Lock-up Agreements.</I> The Company agrees to enforce its rights under its existing
registration rights agreements and shareholders&rsquo; agreement to the extent applicable to restrict the transfer of
securities within the 90-day period following the Closing Date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(m)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Issuer
Free Writing Prospectus</I>. The Company represents and agrees that, unless it obtains the prior consent of Sandler, it has not
made and will not make any offer relating to the Securities that would constitute an &ldquo;issuer free writing prospectus,&rdquo;
as defined in Rule 433 under the 1933 Act, or that would otherwise constitute a &ldquo;free writing prospectus,&rdquo; as defined
in Rule 405 under the 1933 Act, required to be filed with the Commission. Any such free writing prospectus consented to by Sandler
is hereinafter referred to as an &ldquo;<I>Permitted Free Writing Prospectus</I>&rdquo;. The Company represents that it has treated
or agrees that it will treat each Permitted Free Writing Prospectus as an &ldquo;issuer free writing prospectus,&rdquo; as defined
in Rule 433, and has complied and will comply with the requirements of Rule 433 applicable to any Permitted Free Writing Prospectus,
including timely filing with the Commission where required, legending and record keeping.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(n)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Lock-up
Release</I>.<I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</I>The Company agrees to announce the impending release or
waiver of any lock-up restrictions of any officer or director of the Company by press release through a major news service at least
two business days before the effective date of the release or waiver. Any release or waiver granted by Sandler to any such officer
or director shall only be effective two business days after the publication date of such press release.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(o)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Registration
Rights, Preemptive Rights and Other Rights.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</I>The Company agrees that it
shall not release any party from a waiver of registration rights, or from a waiver of any preemptive rights, rights of first refusal
or other similar rights to purchase, or equity or debt securities convertible into or exchangeable or exercisable for, any capital
stock of the Company or any of its subsidiaries, during the 90-day restricted period referred to in Section 3(j) hereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(p)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>No
Security Interest in Bank Common Stock.</I> During the period beginning on the date hereof and ending on the later of the fifth
anniversary of the Closing Time or the date on which Sandler receives full payment in satisfaction of any claim for indemnification
or contribution to which it may be entitled pursuant to Sections 6 and 7 of this Underwriting Agreement, neither the Company nor
the Banks shall, without the prior written consent of Sandler, take or permit to be taken any action that could result in the Banks&rsquo;
common stock becoming subject to any security interest, mortgage, pledge, lien or encumbrance; provided, however, that this covenant
shall be null and void if the Federal Reserve Board, the FDIC or any federal or state bank regulator or regulatory authority having
jurisdiction over the Banks, by regulation, policy statement or interpretive release or by written order or written advice addressed
to either or both of the Banks and specifically addressing the provisions of Sections 6 and 7 hereof, permits indemnification of
Sandler by the one or both of the Banks as contemplated by such provisions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">SECTION 4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Payment
of Expenses</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Expenses.</I>
The Company will pay or cause to be paid all expenses incident to the performance of its obligations under this Underwriting Agreement,
including (i)&nbsp;the preparation, printing and filing of the Registration Statement (including financial statements and exhibits)
as originally filed and of each amendment thereto, (ii)&nbsp;the preparation, printing and delivery to Sandler of this Underwriting
Agreement, and such other documents as may be required in connection with the offering, purchase, sale, issuance or delivery of
the Securities, (iii)&nbsp;the preparation, issuance and delivery of the certificates for the Securities to Sandler, to the extent
applicable, including any stock or other transfer taxes and any stamp or other duties payable upon the sale, issuance or delivery
of the Securities to Sandler, (iv)&nbsp;the fees and disbursements of the Company&rsquo;s counsel, accountants and other advisors,
(v)&nbsp;the qualification of the Securities under securities laws in accordance with the provisions of Section&nbsp;3(f) hereof,
including filing fees and the reasonable fees and disbursements of counsel for Sandler in connection therewith and in connection
with the preparation of the Blue Sky Survey and any supplement thereto, (vi)&nbsp;the printing and delivery to Sandler of copies
of each Preliminary Prospectus, any Permitted Free Writing Prospectus and the Prospectus and any amendments or supplements thereto
(including any costs associated with electronic delivery of these materials), (vii)&nbsp;the preparation, printing and delivery
to Sandler of copies of the Blue Sky Survey and any supplement thereto, (viii) the fees and expenses of any transfer agent or registrar
for the Securities, (ix)&nbsp;the costs and expenses of the Company relating to any &ldquo;road show&rdquo; undertaken in connection
with the marketing of the Securities, including without limitation, expenses associated with the production of road show slides
and graphics, fees and expenses of any consultants engaged in connection with the road show, travel and lodging expenses of the
representatives and officers of the Company and any such consultants, and the cost of aircraft and other transportation chartered
in connection with the road show, (x) the reasonable costs, fees and expenses incurred by Sandler in connection with determining
their compliance with the rules and regulations of FINRA related to Sandler&rsquo;s participation in the offering and distribution
of the Securities, including any related filing fees and the reasonable legal fees of, and disbursements by, counsel to Sandler,
and (xi) the fees and expenses incurred in connection with the inclusion of the Securities in the Nasdaq Global Select Market.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Termination
of Agreement.</I> If this Underwriting Agreement is terminated by Sandler in accordance with the provisions of Section&nbsp;5 or
Section&nbsp;9(a) hereof, the Company shall reimburse Sandler for all of their reasonable out-of-pocket expenses, including the
reasonable fees and disbursements of counsel for Sandler.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">SECTION 5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Conditions
of Sandler&rsquo;s Obligations</U>. The obligations of Sandler hereunder are subject to the accuracy of the representations and
warranties of the Company and the Banks contained in Section 1 hereof or in certificates of any officer of the Company or any subsidiary
of the Company delivered pursuant to the provisions hereof, to the performance by the Company of its covenants and other obligations
hereunder, and to the following further conditions:</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;<I>Effectiveness of Registration Statement.</I> The Registration Statement, including any Rule 462(b)
Registration Statement, has become effective and at Closing Time no stop order suspending the effectiveness of the
Registration Statement shall have been issued under the 1933 Act or proceedings therefor initiated or threatened by the
Commission, and any request on the part of the Commission for additional information shall have been complied with to the
reasonable satisfaction of counsel to Sandler. A Prospectus containing the information that was omitted from the Registration
Statement at the time it became effective pursuant to Rule 430A under the 1933 Act but that is deemed to be part of the
Registration Statement (the &ldquo;Rule 430A Information&rdquo;) shall have been filed with the Commission in the manner and
within the time period required by Rule 424(b) (without reliance on Rule 424(b)(8)) (or a post-effective amendment providing
such information shall have been filed and declared effective in accordance with the requirements of Rule 430A).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Opinion
of Counsel for Company.</I> At Closing Time, Sandler shall have received the favorable opinion, dated as of Closing Time, of Patton
Boggs, LLP, counsel for the Company, in form and substance satisfactory to counsel for Sandler to the effect set forth in Exhibit
A hereto and to such further effect as counsel to Sandler may reasonably request, each in form and substance satisfactory to counsel
for Sandler.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Opinion of Counsel for Sandler.</I> At Closing Time, Sandler shall have received the
opinion, dated as of Closing Time, of Ober, Kaler, Grimes &amp; Shriver, a Professional Corporation, counsel for Sandler, in
form and substance satisfactory to Sandler.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;<I>Officers&rsquo; Certificate.</I> At Closing Time, there shall not have been, since the date hereof
or since the respective dates as of which information is given in the Registration Statement, the General Disclosure Package
or the Prospectus as of the execution of this Underwriting Agreement or the Applicable Time, any material adverse change in
the condition, financial or otherwise, or in the earnings, business affairs or business prospects of the Company and its
subsidiaries considered as one enterprise, whether or not arising in the ordinary course of business, and Sandler shall have
received a certificate of the President or a Vice President of the Company and of the chief financial or chief accounting
officer of the Company, dated as of Closing Time, to the effect that (i)&nbsp;there has been no such material adverse change,
(ii)&nbsp;the representations and warranties in Section&nbsp;1(a) hereof are true and correct with the same force and effect
as though expressly made at and as of Closing Time, (iii)&nbsp;the Company has complied with all agreements and satisfied all
conditions on its part to be performed or satisfied at or prior to Closing Time, and (iv)&nbsp;no stop order suspending the
effectiveness of the Registration Statement has been issued and no proceedings for that purpose have been instituted or are
pending or are contemplated by the Commission.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Accountant&rsquo;s
Comfort Letter.</I> At the time of the execution of this Underwriting Agreement, Sandler shall have received from Stegman &amp;
Company a letter dated the date hereof, in form and substance satisfactory to Sandler, containing statements and information of
the type ordinarily included in accountants&rsquo; &ldquo;comfort letters&rdquo; to underwriters with respect to the financial
statements and certain financial information contained in the Registration Statement and General Disclosure Package.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(f)&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Bring-down Comfort Letter.</I> At Closing Time, Sandler shall have received from
Stegman &amp; Company a letter, dated as of Closing Time, to the effect that they reaffirm the statements made in the letter
furnished pursuant to subsection&nbsp;(e) of this Section, except that the specified date referred to shall be a date not
more than three business days prior to Closing Time with respect to the financial statements and certain financial
information contained in the Prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Listing
of Common Stock.</I> The Common Stock (including the Securities) is registered pursuant to Section 12(b) of the Exchange Act and
is listed on the Nasdaq Global Select Market, and the Company has taken no action designed to, or likely to have the effect of,
terminating the registration of the Common Stock under the Exchange Act or delisting the Common Stock from the NASDAQ, nor has
the Company received any notification that the Commission or the NASDAQ is contemplating terminating such registration or listing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>No
Objection.</I> FINRA shall have confirmed that it has not raised any objection with respect to the fairness and reasonableness
of the underwriting terms and arrangements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;<I>Lock-up Agreements.</I> At the date of this Underwriting Agreement, Sandler shall have received an
agreement substantially in the form of Exhibit&nbsp;B hereto signed by the persons listed on Schedule C hereto.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(j)&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Delivery of Prospectus.</I> The Company shall have complied with the provisions
hereof with respect to the furnishing of prospectuses, in electronic or printed format, on the New York business day next
succeeding the date of this Underwriting Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(k)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>No Termination Event.</I> On or after the date hereof, there shall not have occurred any of
the events, circumstances or occurrences set forth in Section 9(a).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(l)&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Rule 462(b) Registration Statement</I>. In the event that a Rule 462(b) Registration
Statement is filed in connection with the offering contemplated by this Underwriting Agreement, such Rule 462(b) Registration
Statement shall have been filed with the Commission, in compliance with Rule 462(b), on the date of this Underwriting
Agreement and shall have become effective automatically upon such filing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(m)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Conditions
to Purchase of Option Securities.</I> In the event that Sandler exercise its option provided in Section&nbsp;2(b) hereof to purchase
all or any portion of the Option Securities, the representations and warranties of the Company contained herein and the statements
in any certificates furnished by the Company and any subsidiary of the Company hereunder shall be true and correct as of each Date
of Delivery and, at the relevant Date of Delivery, Sandler shall have received:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Officers&rsquo;
Certificate</U>. A certificate, dated such Date of Delivery, of the President or a Vice President of the Company and of the chief
financial or chief accounting officer of the Company confirming that the certificate delivered at the Closing Time pursuant to
Section&nbsp;5(d) hereof remains true and correct as of such Date of Delivery.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Opinion
of Counsel for Company</U>. The favorable opinion of Patton Boggs LLP, counsel for the Company, in form and substance satisfactory
to counsel for Sandler, dated such Date of Delivery, relating to the Option Securities to be purchased on such Date of Delivery
and otherwise to the same effect as the opinion required by Section&nbsp;5(b) hereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Opinion
of Counsel for Sandler</U>. The favorable opinion of Ober, Kaler, Grimes &amp; Shriver, a Professional Corporation, counsel for
Sandler, dated such Date of Delivery, relating to the Option Securities to be purchased on such Date of Delivery and otherwise
to the same effect as the opinion required by Section&nbsp;5(c) hereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(iv)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Bring-down
Comfort Letter</U>. A letter from Stegman &amp; Company, in form and substance satisfactory to Sandler and dated such Date of Delivery,
substantially in the same form and substance as the letter furnished to Sandler pursuant to Section 5(f) hereof, except that the
&ldquo;specified date&rdquo; in the letter furnished pursuant to this paragraph shall be a date not more than five days prior to
such Date of Delivery.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(v)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>No
Termination Event</U>. There shall not have occurred prior to the Date of Delivery any of the events, circumstances or occurrences
set forth in Section 9(a).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(n)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Additional
Documents.</I> At Closing Time and at each Date of Delivery counsel for Sandler shall have been furnished with such documents and
opinions as they may reasonably require for the purpose of enabling them to pass upon the issuance and sale of the Securities as
herein contemplated, or in order to evidence the accuracy of any of the representations or warranties, or the fulfillment of any
of the conditions, herein contained, or other such documents, certificates and opinions as may reasonably be requested; and all
proceedings taken by the Company in connection with the issuance and sale of the Securities as herein contemplated shall be satisfactory
in form and substance to Sandler and counsel for Sandler.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(o)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Termination
of Agreement.</I> If any condition specified in this Section shall not have been fulfilled when and as required to be fulfilled,
this Underwriting Agreement, or, in the case of any condition to the purchase of Option Securities on a Date of Delivery which
is after the Closing Time, the obligations of Sandler to purchase the relevant Option Securities, may be terminated by Sandler
by notice to the Company at any time at or prior to Closing Time or such Date of Delivery, as the case may be, and such termination
shall be without liability of any party to any other party except as provided in Section 4 and except that Sections 1, 6, 7 and
8 shall survive any such termination and remain in full force and effect.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">SECTION 6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Indemnification</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(a)&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Indemnification of Sandler.</I> (1) The Company and the Banks, jointly and
severally, agree to indemnify and hold harmless Sandler, its affiliates (as such term is defined in Rule 501(b) under the
1933 Act) (&ldquo;Affiliates&rdquo;), its and its Affiliates&rsquo; respective selling agents, partners, directors, officers
and employees and each person, if any, who controls Sandler within the meaning of Section&nbsp;15 of the 1933 Act or Section
20 of the 1934 Act to the extent and in the manner set forth in clauses (i), (ii), (iii) and (iv) below as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;against
any and all loss, liability, claim, damage and reasonable expense whatsoever, as incurred, arising out of any untrue statement
or alleged untrue statement of a material fact contained in the Registration Statement (or any amendment thereto), including the
Rule 430A Information or the omission or alleged omission therefrom of a material fact required to be stated therein or necessary
to make the statements therein not misleading or arising out of any untrue statement or alleged untrue statement of a material
fact included in any Preliminary Prospectus, any Issuer-Represented Free Writing Prospectus, the Prospectus (or any amendment or
supplement thereto), the General Disclosure Package, or any amendment or supplement thereto, or the omission or alleged omission
therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they
were made, not misleading;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;against
any and all loss, liability, claim, damage and reasonable expense whatsoever, as incurred, to the extent of the aggregate amount
paid in settlement of any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened,
or of any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission;
provided that (subject to Section 6(d) below) any such settlement is effected with the written consent of the Company; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;against
any and all reasonable expense whatsoever (including the reasonable fees and disbursements of counsel chosen by Sandler), incurred
in investigating, preparing or defending against any litigation, or any investigation or proceeding by or before any governmental
agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue statement or omission, or any such
alleged untrue statement or omission, to the extent that any such expense is not paid under (i) or (ii) above;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Provided, however, that this indemnity
agreement shall not apply to and neither the Company nor either Bank shall be liable for any loss, liability, claim, damage or
expense to the extent arising out of any untrue statement or omission or alleged untrue statement or omission made in reliance
upon and in conformity with the Underwriter Information. Notwithstanding the foregoing, the indemnification provided for in this
Section and the contribution provided for in Section 7 below shall not apply to the Banks to the extent that such indemnification
or contribution, as the case may be, by the Banks is found in a final judgment by a court of competent jurisdiction to constitute
an impermissible covered transaction under Section 23A of the Federal Reserve Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The obligations of
the Company and the Banks under this Section and Section 7 below shall be in addition to any liability which the Company or the
Banks may otherwise have; and the obligations of Sandler under this Section and Section 7 below shall be in addition to any liability
which Sandler may otherwise have and shall extend, upon the same terms and conditions, to each director of the Company (including
any person who, with his or her consent, is named in the Registration Statement as about to become a director of the Company),
each officer of the Company who signs the Registration Statement and to each person, if any, who controls the Company or the Banks,
as the case may be, within the meaning of the 1933 Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Indemnification
of Company, Directors and Officers.</I> Sandler agrees to indemnify and hold harmless the Company, its directors, each of its officers
who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the
1933 Act or Section 20 of the 1934 Act, against any and all loss, liability, claim, damage and reasonable expense described in
the indemnity contained in subsection&nbsp;(a) of this Section, as incurred, but only with respect to untrue statements or omissions,
or alleged untrue statements or omissions, made in the Registration Statement (or any amendment thereto), including the Rule 430A
Information, any Preliminary Prospectus, any Issuer-Represented Free Writing Prospectus or the Prospectus (or any amendment or
supplement thereto) in reliance upon and in conformity with the Underwriter Information.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Actions
against Parties; Notification.</I> Each indemnified party shall give notice as promptly as reasonably practicable to each indemnifying
party of any action commenced against it in respect of which indemnity may be sought hereunder, but failure to so notify an indemnifying
party shall not relieve such indemnifying party from any liability hereunder to the extent it is not materially prejudiced as a
result thereof and in any event shall not relieve it from any liability which it may have otherwise than on account of this indemnity
agreement. In the case of parties indemnified pursuant to Section 6(a) above, counsel to the indemnified parties shall be selected
by Sandler, and, in the case of parties indemnified pursuant to Section 6(b) above, counsel to the indemnified parties shall be
selected by the Company. In case any such action shall be brought against any indemnified party and it shall notify the indemnifying
party of the commencement thereof, the indemnifying party shall be entitled to participate therein and, upon the indemnified party's
consent, which consent shall not be unreasonably withheld, may, jointly with any other indemnifying party similarly notified, assume
the defense thereof, with counsel satisfactory to such indemnified party (who shall not, except with the consent of the indemnified
party, be counsel to the indemnifying party), and, after notice from the indemnifying party to such indemnified party of its election
so to assume the defense thereof, the indemnifying party shall not be liable to such indemnified party under such subsection for
any legal expenses of other counsel or any other expenses, in each case subsequently incurred by such indemnified party, in connection
with the defense thereof other than reasonable costs of investigation. In no event shall the indemnifying parties be liable for
fees and expenses of more than one counsel (in addition to any local counsel) separate from their own counsel for all indemnified
parties in connection with any one action or separate but similar or related actions in the same jurisdiction arising out of the
same general allegations or circumstances. No indemnifying party shall, without the prior written consent of the indemnified parties,
settle or compromise or consent to the entry of any judgment with respect to any litigation, or any investigation or proceeding
by or before any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification
or contribution could be sought under this Section 6 or Section 7 hereof (whether or not the indemnified parties are actual or
potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified
party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement
as to or an admission of fault, culpability or a failure to act by or on behalf of any indemnified party.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Settlement
Without Consent if Failure to Reimburse.</I> If at any time an indemnified party shall have requested an indemnifying party to
reimburse the indemnified party for fees and expenses of counsel, such indemnifying party agrees that it shall be liable for any
settlement of the nature contemplated by Section 6(a)(ii) effected without its written consent if (i) such settlement is entered
into more than 45 days after receipt by such indemnifying party of the aforesaid request, (ii) such indemnifying party shall have
received notice of the terms of such settlement at least 30 days prior to such settlement being entered into and (iii) such indemnifying
party shall not have reimbursed such indemnified party in accordance with such request prior to the date of such settlement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">SECTION 7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Contribution</U>.
If the indemnification provided for in Section&nbsp;6 hereof is for any reason unavailable to or insufficient to hold harmless
an indemnified party in respect of any losses, liabilities, claims, damages or expenses referred to therein, then each indemnifying
party shall contribute to the aggregate amount of such losses, liabilities, claims, damages and expenses incurred by such indemnified
party, as incurred, (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one
hand and Sandler on the other hand from the offering of the Securities pursuant to this Underwriting Agreement or (ii) if the allocation
provided by clause (i) is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative
benefits referred to in clause (i) above but also the relative fault of the Company on the one hand and of Sandler on the other
hand in connection with the statements or omissions, which resulted in such losses, liabilities, claims, damages or expenses, as
well as any other relevant equitable considerations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The relative benefits
received by the Company on the one hand and Sandler on the other hand in connection with the offering of the Securities pursuant
to this Underwriting Agreement shall be deemed to be in the same respective proportions as the total net proceeds from the offering
of the Securities pursuant to this Underwriting Agreement (before deducting expenses) received by the Company, on the one hand,
and the total underwriting discount and commissions received by Sandler, on the other hand, in each case as set forth on the cover
of the Prospectus bear to the aggregate public offering price of the Securities as set forth on the cover of the Prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The relative fault
of the Company, on the one hand, and Sandler, on the other hand, shall be determined by reference to, among other things, whether
any such untrue or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates
to information supplied by the Company or by Sandler and the parties&rsquo; relative intent, knowledge, access to information and
opportunity to correct or prevent such statement or omission.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company and Sandler
agree that it would not be just and equitable if contribution pursuant to this Section 7 were determined by pro rata allocation
or by any other method of allocation which does not take account of the equitable considerations referred to above in this Section
7. The aggregate amount of losses, liabilities, claims, damages and expenses incurred by an indemnified party and referred to above
in this Section 7 shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in investigating,
preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced
or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omission.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Notwithstanding the
provisions of this Section 7, Sandler shall not be required to contribute any amount in excess of the amount by which the total
discounts, fees and commissions received by it exceeds the amount of any damages which Sandler has otherwise been required to pay
by reason of any such untrue or alleged untrue statement or omission or alleged omission.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">No person guilty of
fraudulent misrepresentation (within the meaning of Section 11(f) of the 1933 Act) shall be entitled to contribution from any person
who was not guilty of such fraudulent misrepresentation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">For purposes of this
Section 7, each person, if any, who controls Sandler within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934
Act and each of Sandler&rsquo;s Affiliates, its and its Affiliates&rsquo; respective selling agents, partners, directors, officers
and employees shall have the same rights to contribution as Sandler, and each director of the Company, each officer of the Company
who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the
1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company. The obligations of the Company
and the Banks in this Section 7 to contribute are joint and several.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">SECTION 8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Representations,
Warranties and Agreements to Survive Delivery</U>. All representations, warranties and agreements contained in this Underwriting
Agreement or in certificates of officers of the Company or any of its subsidiaries submitted pursuant hereto, shall remain operative
and in full force and effect, regardless of any (i) investigation made by or on behalf of Sandler, its Affiliates, its and its
Affiliates&rsquo; respective selling agents, partners, directors, officers and employees and each person, if any, who controls
Sandler within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act, or by or on behalf of the Company, and
(ii) delivery of and payment for the Securities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">SECTION 9.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Termination
of Underwriting Agreement</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;<I>Termination; General.</I> Sandler may terminate this Underwriting Agreement, by notice to the Company,
at any time at or prior to Closing Time (i)&nbsp;if there has been, since the time of execution of this Underwriting
Agreement or since the respective dates as of which information is given in the Registration Statement, the General
Disclosure Package or the Prospectus, any material adverse change in the condition, financial or otherwise, or in the
earnings, business affairs or business prospects of the Company and its subsidiaries considered as one enterprise, whether or
not arising in the ordinary course of business, (ii)&nbsp;if there has occurred any material adverse change in the financial
markets in the United States, any outbreak of hostilities or escalation thereof or other calamity or crisis or any change or
development involving a prospective change in national or international political, financial or economic conditions,
including without limitation as a result of terrorist activities, in each case the effect of which is such as to make it, in
the judgment of Sandler, impracticable or inadvisable to market the Securities or to enforce contracts for the sale of
the Securities, (iii)&nbsp;if trading in any securities of the Company has been suspended or materially limited by the
Commission or NASDAQ, or if trading generally on the New York Stock Exchange or on NASDAQ has been suspended or materially
limited, or minimum or maximum prices for trading have been fixed, or maximum ranges for prices have been required, by any of
said exchanges or by such system or by order of the Commission, FINRA or any other governmental authority, (iv) a material
disruption has occurred in commercial banking or securities settlement or clearance services in the United States, or (v) if
a banking moratorium has been declared by either Federal or New York authorities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Liabilities.</I>
If this Underwriting Agreement is terminated pursuant to this Section, such termination shall be without liability of any party
to any other party except as provided in Section 4 hereof, and provided further that Sections 1, 6, 7 and 8 shall survive such
termination and remain in full force and effect.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">SECTION 10.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Notices</U>.
All notices and other communications hereunder shall be in writing and shall be deemed to have been duly given if mailed or transmitted
by any standard form of telecommunication. Notices to Sandler shall be directed to Sandler at Sandler O&rsquo;Neill &amp; Partners,
L.P., 1251 Avenue of the Americas, 6<SUP>th</SUP> Floor, New York, New York 10020, attention of the General Counsel; notices to
the Company shall be directed to it at 28969 Information Lane, Easton, MD 21601, attention of the President and Chief Executive
Officer.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">SECTION 11.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Parties</U>.
This Underwriting Agreement shall inure to the benefit of and be binding upon Sandler, the Company, the Banks and their respective
successors. Nothing expressed or mentioned in this Underwriting Agreement is intended or shall be construed to give any person,
firm or corporation, other than Sandler, the Company, the Banks and their respective successors and the controlling persons, officers
and directors and other persons or entities referred to in Sections&nbsp;6 and 7 and their heirs and legal representatives, any
legal or equitable right, remedy or claim under or in respect of this Underwriting Agreement or any provision herein contained.
This Underwriting Agreement and all conditions and provisions hereof are intended to be for the sole and exclusive benefit of Sandler,
the Company, the Banks and their respective successors, and said controlling persons, officers and directors and other persons
or entities and their heirs and legal representatives, and for the benefit of no other person, firm or corporation. No purchaser
of Securities from Sandler shall be deemed to be a successor by reason merely of such purchase.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">SECTION 12.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>No
Fiduciaries</U>. Each of the Company and the Banks, severally and not jointly, acknowledges and agrees that (i) the purchase and
sale of the Securities pursuant to this Underwriting Agreement, including the determination of the public offering price of the
Securities and any related discounts and commissions, is an arm&rsquo;s-length commercial transaction between the Company, on the
one hand, and Sandler, on the other hand, (ii) in connection with the offering contemplated hereby and the process leading to such
transaction Sandler is and has been acting solely as a principal and is not the agent or fiduciary of the Company, the Banks, or
their respective stockholders, creditors, employees or any other third party, (iii) Sandler has not assumed or will not assume
an advisory or fiduciary responsibility in favor of the Company or the Banks with respect to the offering contemplated hereby or
the process leading thereto (irrespective of whether Sandler has advised or is currently advising the Company or the Banks on other
matters) and Sandler has no obligation to the Company or the Banks with respect to the offering contemplated hereby except the
obligations expressly set forth in this Underwriting Agreement, (iv) Sandler and its respective affiliates may be engaged in a
broad range of transactions that involve interests that differ from those of the Company or the Banks, and (v) Sandler has not
provided any legal, accounting, regulatory or tax advice with respect to the offering contemplated hereby and the Company and the
Banks have consulted their own legal, accounting, regulatory and tax advisors to the extent they deemed appropriate.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">SECTION&nbsp;13.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>GOVERNING LAW AND TIME</U>. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF
THE STATE OF NEW YORK. SPECIFIED TIMES OF DAY REFER TO NEW YORK CITY TIME.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">SECTION 14.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>General
Provisions</U>. This Underwriting Agreement constitutes the entire agreement of the parties to this Underwriting Agreement and
supersedes all prior written or oral and all contemporaneous oral agreements, understandings and negotiations with respect to the
subject matter hereof. This Underwriting Agreement may be executed in two or more counterparts, each one of which shall be an original,
but all of which together shall constitute one and the same instrument. The exchange of copies of this Underwriting Agreement and
of signature pages by facsimile or other electronic means shall constitute effective execution and delivery of this Underwriting
Agreement by the parties hereto and may be used in lieu of the original signature pages to this Underwriting Agreement for all
purposes. This Underwriting Agreement may not be amended or modified unless in writing by all of the parties hereto, and no condition
herein (express or implied) may be waived unless waived in writing by each party whom the condition is meant to benefit. The headings
herein are for convenience only and shall not affect the construction hereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If the foregoing is
in accordance with your understanding, please sign and return to us four counterparts hereof, and upon the acceptance hereof by
us, this letter and such acceptance hereof shall constitute a binding agreement among Sandler, the Company and the Banks.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: left">Very truly yours,</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: left">SHORE BANCSHARES, INC.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-left: 0in">By:&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: left; border-bottom: Black 1pt solid">/s/ Lloyd L. Beatty, Jr.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left; width: 55%">&nbsp;</TD>
    <TD STYLE="text-align: left; width: 6%">&nbsp;</TD>
    <TD STYLE="text-align: left; width: 7%">Name:</TD>
    <TD STYLE="text-align: left; width: 32%">Lloyd L. Beatty, Jr.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">Title:</TD>
    <TD STYLE="text-align: left">President and Chief Executive Officer</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: left">CNB</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-left: 0in">By:&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: left; border-bottom: Black 1pt solid">/s/ F. Winfield Trice, Jr.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">Name:</TD>
    <TD STYLE="text-align: left">F. Winfield Trice, Jr.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">Title:</TD>
    <TD STYLE="text-align: left">President and Chief Executive Officer</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: left">THE TALBOT BANK OF EASTON, MARYLAND</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-left: 0in">By:&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: left; border-bottom: Black 1pt solid">/s/ Patrick M. Bilbrough</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">Name:</TD>
    <TD STYLE="text-align: left">Patrick M. Bilbrough</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">Title:</TD>
    <TD STYLE="text-align: left">President and Chief Executive Officer</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD COLSPAN="2" STYLE="text-align: left">CONFIRMED AND ACCEPTED,</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="2" STYLE="padding-left: 9pt; text-align: left">as of the date first above written:</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="2" STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="2" STYLE="text-align: left"><FONT STYLE="text-transform: uppercase">SANDLER O&rsquo;NEILL &amp; PARTNERS, L.P.</FONT></TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="2" STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 7%; text-align: left">By:</TD>
    <TD STYLE="width: 38%; text-align: left">Sandler O&rsquo;Neill &amp; Partners Corp., the sole general partner</TD>
    <TD STYLE="width: 55%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="2" STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left">By:</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">/s/ Christopher S. Hooper</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">Name: &nbsp;Christopher S. Hooper</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">Title: &nbsp;Managing Director </TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">SCHEDULE A</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><U>Issuer-Represented General Free Writing
Prospectus</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">Not applicable</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">&nbsp;</P>


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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">SCHEDULE B</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><U>List of Subsidiaries</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">CNB</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">The Talbot Bank of Easton, Maryland</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">Dover Street Realty, Inc.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">Cedar Commons Business Trust</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">The Avon-Dixon Insurance Agency, LLC</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">Jack Martin &amp; Associates, Inc.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">TSGIA, Inc.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">Tri-State General Insurance Agency, LTD</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">Tri-State General Insurance Agency of New
Jersey, Inc.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">Tri-State General Insurance Agency of Virginia,
Inc.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">Elliott Wilson Insurance, LLC</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">Mubell Finance, LLC</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">&nbsp;</P>


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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">SCHEDULE C</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><U>List of persons and entities subject
to lock-up</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Directors and Executive Officers</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">1.</TD><TD STYLE="text-align: justify">Lloyd L. Beatty, Jr.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">2.</TD><TD STYLE="text-align: justify">David J. Bates</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">3.</TD><TD STYLE="text-align: justify">James A. Judge</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">4.</TD><TD STYLE="text-align: justify">Frank E. Mason, III</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">5.</TD><TD STYLE="text-align: justify">John H. Wilson</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">6.</TD><TD STYLE="text-align: justify">Blenda W. Armistead</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">7.</TD><TD STYLE="text-align: justify">Christopher F. Spurry</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">8.</TD><TD STYLE="text-align: justify">W. Moorhead Vermilye</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">9.</TD><TD STYLE="text-align: justify">David W. Moore</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">10.</TD><TD STYLE="text-align: justify">George S. Rapp</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">11.</TD><TD STYLE="text-align: justify">Patrick M. Bilbrough</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">12.</TD><TD STYLE="text-align: justify">F. Winfield Trice, Jr.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">13.</TD><TD STYLE="text-align: justify">W. David Morse</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">EXHIBIT B</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">FORM OF LOCK-UP FROM DIRECTORS, OFFICERS
OR</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">OTHER STOCKHOLDERS PURSUANT TO SECTION 5(k)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">[Date]</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="text-transform: uppercase">Sandler
O&rsquo;Neill &amp; Partners, L.P.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">1251 Avenue of the Americas, 6th Floor</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">New York, New York 10020</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">Re:</TD><TD STYLE="text-align: justify"><U>Proposed Public Offering by Shore Bancshares, Inc.</U></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Dear Sirs:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The undersigned, a
stockholder and an executive officer and/or director of Shore Bancshares, Inc., a Maryland corporation (the &ldquo;<U>Company</U>&rdquo;),
understands that Sandler O&rsquo;Neill &amp; Partners, L.P. (&ldquo;<U>Sandler</U>&rdquo;), proposes to enter into an Underwriting
Agreement (the &ldquo;<U>Underwriting Agreement</U>&rdquo;) with the Company providing for the public offering (the &ldquo;<U>Offering</U>&rdquo;)
of shares (the &ldquo;<U>Securities</U>&rdquo;) of the Company&rsquo;s common stock, $0.01 par value per share (the &ldquo;<U>Common
Stock</U>&rdquo;). In recognition of the benefit that such an offering will confer upon the undersigned as a stockholder and an
executive officer and/or director of the Company, and for other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the undersigned agrees with Sandler that, during a period beginning on the date hereof and ending
at the close of business on the date that is 90 days from the date of the Underwriting Agreement, the undersigned will not, without
the prior written consent of Sandler, directly or indirectly, (i) offer, pledge, sell, contract to sell, sell any option or contract
to purchase, purchase any option or contract to sell, grant any option, right or warrant for the sale of, or otherwise dispose
of or transfer any shares of the Company&rsquo;s Common Stock or any securities convertible into or exchangeable or exercisable
for Common Stock, whether now owned or hereafter acquired by the undersigned or with respect to which the undersigned has or hereafter
acquires the power of disposition, or file any registration statement under the Securities Act of 1933, as amended, with respect
to any of the foregoing or (ii) enter into any swap or any other agreement or any transaction that transfers, in whole or in part,
directly or indirectly, the economic consequence of ownership of the Common Stock, whether any such swap or transaction is to be
settled by delivery of Common Stock or other securities, in cash or otherwise. In the event that either (i) during the period that
begins on the date that is 15 calendar days plus three (3) business days before the last day of the 90-day restricted period and
ends on the last day of the 90-day restricted period, the Company issues an earnings release or material news or a material event
relating to the Company occurs, or (ii) prior to the expiration of the 90-day restricted period, the Company announces that it
will release earnings results during the 16-day period beginning on the last day of the 90-day restricted period, the restrictions
set forth herein will continue to apply until the expiration of the date that is 15 calendar days plus three (3) business days
after the date on which the earnings release is issued or the material news or event related to the Company occurs. The Company
shall promptly notify Sandler of any earnings releases, news or events that may give rise to an extension of the initial restricted
period.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Notwithstanding the foregoing, the undersigned
may transfer the undersigned&rsquo;s shares of Common Stock (i) as a <I>bona fide</I> gift or gifts, provided that the donee or
donees agree to be bound in writing by the restrictions set forth herein, (ii) to any trust or family limited partnership for the
direct or indirect benefit of the undersigned or the immediate family of the undersigned, provided that the trustee of the trust
or general partner of the family limited partnership, as the case may be, agrees to be bound by the restrictions set forth herein,
and provided further that any such transfer shall not involve a disposition for value, (iii) pursuant to the exercise by the undersigned
of stock options that have been granted by the Company prior to, and are outstanding as of, the date of the Underwriting Agreement,
where the Common Stock received upon any such exercise is held by the undersigned, individually or as fiduciary, in accordance
with the terms of this Lock-Up Agreement, or (v) with the prior written consent of Sandler. For purposes of this Lock-Up Agreement,
&ldquo;immediate family&rdquo; shall mean any relationship by blood, marriage or adoption, not more remote than first cousin.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The undersigned now has and, except as
contemplated by clauses (i) through (v) above, for the duration of the Lock-Up Agreement will have good and marketable title to
the undersigned&rsquo;s shares of Common Stock, free and clear of all liens, encumbrances, and claims whatsoever, except with respect
to any liens, encumbrances and claims that were in existence on the date hereof. The undersigned also agrees and consents to the
entry of stop transfer instructions with the Company&rsquo;s transfer agent and registrar against the transfer of the undersigned&rsquo;s
common stock, except in compliance with this Lock-Up Agreement. In furtherance of the foregoing, the Company and its transfer agent
are hereby authorized to decline to make any transfer of securities if such transfer would constitute a violation or breach of
this Lock-Up Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">With respect to the Offering only, the
undersigned waives any registration rights relating to registration under the Securities Act of 1933 of the offer and sale of any
Common Stock and/or any securities convertible into or exchangeable or exercisable for Common Stock, owned either of record or
beneficially by the undersigned, including any rights to receive notice of the Offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The undersigned represents and warrants
that the undersigned has full power and authority to enter into this Lock-Up Agreement. The undersigned agrees that the provisions
of this Lock-Up Agreement shall be binding also upon the successors, assigns, heirs and personal representatives of the undersigned.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The undersigned understands that, if the
Underwriting Agreement does not become effective, or if the Underwriting Agreement (other than the provisions thereof which survive
termination) shall terminate or be terminated prior to payment for and delivery of the Common Stock to be sold thereunder, the
undersigned shall be released from all obligations under this Lock-up Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">This Lock-up Agreement shall be governed
by and construed in accordance with the laws of the State of New York.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: left"><FONT STYLE="font-size: 10pt">Very truly yours,</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 13%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 22%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 15%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">Signature:</FONT></TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">Print Name:</FONT></TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">&nbsp;</P>


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<FILENAME>v379335_ex5-1.htm
<DESCRIPTION>EXHIBIT 5.1
<TEXT>
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<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">Exhibit 5.1</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">May 21, 2014</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Board of Directors<BR>
Shore Bancshares, Inc.<BR>
28969 Information Lane<BR>
Easton, Maryland 21601</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Re: <U>Registration Statement on Form S-3
of Shore Bancshares, Inc. (No. 333-195527)</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><U STYLE="text-decoration: none">&nbsp;</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Dear Ladies and Gentlemen:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">This opinion is furnished to you in connection
with the above-referenced registration statement (the &ldquo;<B>Registration Statement</B>&rdquo;), the base prospectus dated May
8, 2014 (the &ldquo;<B>Base Prospectus</B>&rdquo;) and the prospectus supplement dated May 20, 2014 (together with the Base Prospectus,
the &ldquo;<B>Prospectus</B>&rdquo;). The Prospectus relates to the offering by Shore Bancshares,&nbsp;Inc. (the &ldquo;<B>Company</B>&rdquo;)
of 3,600,000<B>&nbsp;</B>shares (the &ldquo;<B>Shares</B>&rdquo;) of the Company&rsquo;s common stock, par value $0.01 per share
(the &ldquo;<B>Common Stock</B>&rdquo;), which Shares are covered by the Registration Statement. We understand that the Shares
are to be offered and sold in the manner described in the Prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We have acted as counsel for the Company
in connection with its registered offering of the Shares. This opinion is being furnished in accordance with the requirements of
Item 601(b)(5)&nbsp;of Regulation S-K under the Securities Act of 1933, as amended (the &ldquo;<B>Securities Act</B>&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In connection with the issuance of this
opinion letter, we have examined originals or copies, certified or otherwise identified to our satisfaction, of:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">(i) the Registration Statement, including
the Prospectus, and all exhibits thereto;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">(ii) a specimen certificate representing
the Shares;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">(iii) the Amended and Restated Articles
of Incorporation of the Company, as supplemented by the Articles Supplementary filed for record on January 7, 2009 and June 16,
2009, as presently in effect;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">(iv) the Amended and Restated Bylaws of
the Company, as amended, as presently in effect; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">(v) certain resolutions adopted by the Board
of Directors of the Company with respect to the issuance of the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">May 21, 2014</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Page 2</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We have also examined originals or copies,
certified or otherwise identified to our satisfaction, of such records of the Company and such agreements, certificates of public
officials, certificates of officers or other representatives of the Company and others, and such other documents, certificates
and records, as we have deemed necessary or appropriate as a basis for the opinion set forth herein.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In our examination, we have assumed and
have not verified (i)&nbsp;the legal capacity of all natural persons, (ii)&nbsp;the genuineness of all signatures (other than persons
signing on behalf of the Company), (iii)&nbsp;the authenticity of all documents submitted to us as originals, (iv)&nbsp;the conformity
with the originals of all documents supplied to us as copies, (v)&nbsp;the accuracy and completeness of all corporate records and
documents made available to us by the Company, and (vi)&nbsp;that the foregoing documents, in the form submitted to us for our
review, have not been altered or amended in any respect material to our opinion stated herein.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The opinion letter which we render herein
is limited to those matters governed by the laws of the State of Maryland as of the date hereof.&nbsp; Our opinion expressed herein
is as of the date hereof, and we assume no obligation to revise or supplement the opinion rendered herein should the above-referenced
laws be changed by legislative or regulatory action, judicial decision or otherwise. We express no opinion as to whether, or the
extent to which, the laws of any particular jurisdiction apply to the subject matter hereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Based upon and subject to the foregoing,
we are of the opinion that the Shares have been duly authorized and, when sold as described in the Prospectus, will be validly
issued, fully paid and non-assessable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">This opinion letter is provided for use
solely in connection with the offer and sale of the Shares while the Registration Statement remains effective, and may not be used,
circulated, quoted or otherwise relied upon for any other purpose without our express written consent. No opinion may be implied
or inferred beyond the opinion expressly stated above.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We hereby consent to your filing of this
opinion with the U.S. Securities and Exchange Commission (the &ldquo;<B>SEC</B>&rdquo;) as an exhibit to a Current Report on Form&nbsp;8-K
to be incorporated by reference in the Registration Statement and to the use of our name under the caption &ldquo;Legal Matters&rdquo;
in the Prospectus contained therein.&nbsp;&nbsp;&nbsp;In giving this consent, we do not admit that we come within the category
of persons whose consent is required under Section&nbsp;7 of the Securities Act or the rules&nbsp;and regulations of the SEC adopted
under the Securities Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3in"></P>

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<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%">&nbsp;</TD>
    <TD STYLE="width: 50%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Sincerely,</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>/s/ <FONT STYLE="font: 10pt Times New Roman, Times, Serif">Patton Boggs LLP</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Patton Boggs LLP</FONT></TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3in"></P>

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<TYPE>EX-99.1
<SEQUENCE>4
<FILENAME>v379335_ex99-1.htm
<DESCRIPTION>EXHIBIT 99.1
<TEXT>
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<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><IMG SRC="image_001.jpg" ALT="" STYLE="height: 35px; width: 384px"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>28969 Information Lane</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>Easton, Maryland 21601</B></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">Phone 410-763-7800</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">PRESS RELEASE</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><BR>
<U>Shore Bancshares Announces Pricing of Public Offering of Common Stock</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Easton, Maryland (05/21/2014) - Shore Bancshares, Inc. (NASDAQ
- SHBI), or the Company, announced today that on May 20, 2014 it priced a public offering of 3,600,000 shares of common stock at
$8.25 per share for gross proceeds of $29.7 million. The Company expects to close the sale of the shares of common stock on or
about May 27, 2014, subject to customary closing conditions. Sandler O&rsquo;Neill + Partners, L.P. is the sole underwriter for
the offering. The underwriter will have a 30-day option to purchase up to an additional 540,000 shares of common stock from the
Company at the offering price to cover over-allotments, if any.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Company intends to use the net proceeds of the offering
for general corporate purposes, including but not limited to the contribution of capital to The Talbot Bank of Easton, Maryland,
a bank subsidiary of the Company, to satisfy regulatory capital requirements, and to support organic growth, de novo branching,
branch acquisitions, loan production offices and opportunistic acquisitions, if any. Lloyd &ldquo;Scott&rdquo; Beatty, Jr., President
and Chief Executive Officer, stated, &ldquo;I am extremely pleased with the success of this offering and I welcome our new stockholders.
This offering will help ensure that we have the capital strength and flexibility to support our franchise and drive value creation
for our stockholders.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt"><I>This announcement is for informational
purposes only and is not an offer to sell or the solicitation of an offer to buy any securities of the Company, which is made only
by means of a prospectus supplement and related base prospectus, nor will there be any sale of these securities in any state in
which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any
such state or jurisdiction.&nbsp; The Company has filed a shelf registration statement (including a prospectus) (File No. 333-195527)
and a prospectus supplement with the Securities and Exchange Commission, or the SEC, for the offering to which this communication
relates.&nbsp; The sale of shares of common stock in the underwritten offering will be made pursuant to a prospectus supplement
to the base prospectus dated May 8, 2014.</I></FONT> <FONT STYLE="font-size: 10pt"><I>Before you invest, you should read the prospectus
in the registration statement, the prospectus supplement, and other documents the Company has filed with the SEC for
more complete information about the Company and this offering. You may get these documents for free by visiting EDGAR on the SEC
website at www.sec.gov or by visiting the Company&rsquo;s website at <U>www.shorebancshares.com</U>. Alternatively, copies of the
prospectus supplement and the prospectus relating to the offering may be obtained by contacting Sandler O&rsquo;Neill + Partners,
L.P., 1251 Avenue of the Americas, 6<SUP>th</SUP> Floor, New York, New York 10020, or by phone at 1-866-805-4128. </I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">Page 2 of 2</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Shore Bancshares, Inc. Information</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Company is a financial holding company headquartered in
Easton, Maryland and is the largest independent bank holding company headquartered on Maryland&rsquo;s Eastern Shore. It is the
parent company of two banks, The Talbot Bank of Easton, Maryland, and CNB; three insurance producer firms,</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Avon-Dixon Agency, LLC, Elliott Wilson Insurance, LLC and
Jack Martin and Associates, Inc; a wholesale insurance company, TSGIA, Inc; and an insurance premium finance company, Mubell Finance,
LLC. The Company engages in the trust services business through the trust department at CNB under the name &ldquo;Wye Financial
&amp; Trust&rdquo;. Additional information is available at <U>www.shorebancshares.com</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Forward-Looking Statements</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The statements contained herein that are not historical facts
are forward-looking statements (as defined by the Private Securities Litigation Reform Act of 1995) and are based on management's
current expectations and beliefs concerning future developments and their potential effects on the Company. Such statements involve
inherent risks and uncertainties, many of which are difficult to predict and are generally beyond the control of the Company. There
can be no assurance that future developments affecting the Company will be the same as those anticipated by management. These statements
are evidenced by terms such as &ldquo;anticipate,&rdquo; &ldquo;estimate,&rdquo; &ldquo;should,&rdquo; &ldquo;expect,&rdquo; &ldquo;believe,&rdquo;
&ldquo;intend,&rdquo; and similar expressions. Although these statements reflect management&rsquo;s good faith beliefs and projections,
they are not guarantees of future performance and they may not prove true. These projections involve risks and uncertainties that
could cause actual results to differ materially from those addressed in the forward-looking statements. For a discussion of these
risks and uncertainties, see the section of the periodic reports filed by Shore Bancshares, Inc. with the SEC entitled &ldquo;Risk
Factors&rdquo;.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Company specifically disclaims any obligation to update
any factors or to publicly announce the result of revisions to any of the forward-looking statements included herein to reflect
future events or developments.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>For further information contact: George Rapp, Chief Financial
Officer, 410-763-7800</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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