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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>UNITED
        STATES</strong></font></div>
      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>SECURITIES
        AND EXCHANGE COMMISSION</strong></font></div>
      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Washington,
        D.C. 20549</strong></font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>FORM
        8-K</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>CURRENT
        REPORT</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>PURSUANT
        TO SECTION 13 OR 15(d) OF THE </strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>SECURITIES
        EXCHANGE ACT OF 1934</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Date
        of
        Report (Date of earliest event reported): November 3, 2005</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>SHORE
        BANCSHARES, INC.</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Exact
        name of registrant as specified in its charter)</font></div>
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>0-22345</u></font></div>
              </td>
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>52-1974638</u></font></div>
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(State
                  or other jurisdiction of <font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">incorporation
                  or organization)</font></font></div>
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Commission
                  file number)</font></div>
              </td>
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(IRS
                  Employer <font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Identification
                  No.)</font></font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>18
        East Dover Street, Easton, Maryland 21601</u></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Address
        of principal executive offices) (Zip Code)</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>(410)
        822-1400</u></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Registrant&#8217;s
        telephone number, including area code)</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>N/A</u></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Former
        Name or Former Address, if Changed Since Last Report)</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">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:</font></div>
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                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Written
                  communications pursuant to Rule 425 under the Securities Act (17
                  CFR
                  230.425)</font></div>
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                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Soliciting
                  material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
                  240.14a-12)</font></div>
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                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pre-commencement
                  communications pursuant to Rule 14d-2(b) under the Exchange Act
                  (17 CFR
                  240.14d-2(b))</font></div>
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            <tr valign="top" style="LINE-HEIGHT: 1.25">
              <td align="left" style="WIDTH: 27pt"><font face="Wingdings">o</font></td>
              <td align="left">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pre-commencement
                  communications pursuant to Rule 13e-4(c) under the Exchange Act
                  (17 CFR
                  240.13e-4(c))</font></div>
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      </div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>ITEM
        1.01. Entry into a Material Definitive Agreement.</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Shore
        Bancshares, Inc. (the &#8220;Company&#8221;) and its Delaware bank subsidiary, The Felton
        Bank (&#8220;Felton Bank&#8221;), are party to an employment agreement with Thomas Evans
        dated April 1, 2002 (the &#8220;Agreement&#8221;). A copy of the Agreement was filed as
        Exhibit 10.7 to the Company&#8217;s Annual Report on Form 10-K for the year ended
        December 31, 2004. Under the Agreement, Mr. Evans is to serve as President
        and
        Chief Executive Officer of Felton Bank for which Mr. Evans is to receive
        an
        annual salary of $105,000 (subject to annual review and adjustment),
        discretionary bonuses, fringe benefits and vacation generally available to
        other
        officers of the Company&#8217;s subsidiaries, and participation in the pension, profit
        sharing, retirement, equity and incentive compensation plans generally available
        to other officers of the Company's subsidiaries. The Agreement has an initial
        term of four years, subject to automatic renewal for 12-month terms unless
        one
        of the parties objects, but may be terminated by the Company and Felton Bank
        at
        any time with or without cause (as defined in the Agreement) or by Mr. Evans
        for
        any reason upon 90 days&#8217; written notice. Any termination by the Company or
        Felton Bank without cause entitles Mr. Evan&#8217;s to a lump sum payment of one
        year&#8217;s salary. In addition, during the initial four-year term, Mr. Evans may
        voluntarily terminate his employment upon the occurrence (and for 90 days
        thereafter) within 12 months of a Change in Control (as defined in the
        Agreement) of any of the following events without his consent (the &#8220;Voluntary
        Termination Reasons&#8221;): (i) his base compensation is reduced by the Company
        and/or Felton Bank, (ii) the Company and/or Felton Bank fail to provide him
        with
        the other benefits and compensation contemplated by the Agreement, (iii)
        the
        Company and/or Felton Bank assign him duties and responsibilities that are
        materially different from those normally associated with his position, or
        (iv)
        the Company and/or Felton Bank materially reduce his responsibilities or
        authority. Upon a termination for any of the Voluntary Termination Reasons,
        Mr.
        Evans is entitled to receive a lump sum payment equal to one year&#8217;s salary.
        During the term of the Agreement (whether or not he remains employed during
        that
        term) or, if the Company and Felton Bank terminate the Agreement without
        cause
        or Mr. Evans terminates it upon a Change in Control, for one year after his
        employment terminates, Mr. Evans agrees to not serve any other financial
        institution operating within 50 miles of either the Company or Felton Bank.
        In
        the event Mr. Evans becomes disabled, he is entitled to receive the following
        percentages of his compensation, inclusive of any benefits which may be payable
        to him under any disability insurance then in effect: (i) 100% for the first
        six
        months of disability; (ii) 75% for the next 12 months; and (iii) 50% thereafter
        for the remainder of the initial four-year term or any renewal thereof. If
        Mr.
        Evans returns to work and is employed on a full-time basis for at least 12
        months from the last period of disability, then benefits will restart upon
        a
        subsequent disability. If he returns to work for less than 12 months and
        is
        again disabled, benefits will continue where they stopped at the end of his
        previous disability period.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
        November 3, 2005, the Company, Felton Bank and Mr. Evans agreed to amend
        the
        Agreement so that it contains Change in Control provisions similar to those
        contained in the employment contracts with the Presidents of the Company&#8217;s other
        bank subsidiaries. Specifically, the Agreement was amended so that, in the
        event
        the Company and Felton Bank terminate Mr. Evans&#8217;s employment following a Change
        in Control without his consent and for a reason other than cause, he is to
        receive an amount equal to the difference between (i) the product of 2.99
        times
        his &#8220;base amount&#8221; as defined in Section 280G(b)(3) of the Internal Revenue Code
        and (ii) the sum of any other &#8220;parachute payments&#8221; (as defined under Section
        280G(b)(2) of the Code) that he receives on account of the Change in Control
        (the &#8220;Change in Control Amount&#8221;). Mr. Evans will also be entitled to the Change
        in Control Amount if (i) he terminates his employment for any reason within
        30
        days of a Change in Control or (ii) he terminates his employment for any
        of the
        Voluntary Termination Reasons that occur within 12 months of a Change in
        Control. In addition, the following were added to the list of Voluntary
        Termination Reasons: (i) the Company and Felton Bank require Mr. Evans to
        perform his principal executive functions more than 35 miles from his primary
        office as of the date of the Change in Control; and (ii) Mr. Evans is not
        elected or re-elected to the Board of Directors of each of the Company and
        Felton Bank following the Change in Control (if he was serving on such Boards
        prior to the Change in Control). Finally, the Agreement was amended so that
        Mr.
        Evans may exercise his ability to terminate his employment for any of the
        Voluntary Termination Reasons without regard to whether the Change in Control
        occurs during the initial four-year term of the Agreement. This amended
        Agreement replaces and supersedes the April 1, 2002 version.</font></div>
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        <div>&#160;</div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        form
        of Agreement, as amended on November 3, 2005, is filed herewith as Exhibit
        10.1.
</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
        addition to serving as President and Chief Executive Officer of Felton Bank,
        Mr.
        Evans is also a director of both the Company and Felton Bank. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>ITEM
        2.02. Results of Operation and Financial Condition.</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
        November 8, 2005, the Company issued a press release describing the Company&#8217;s
        financial results for the quarter ended September 30, 2005, a copy of which
        is
        furnished herewith as Exhibit 99.1.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        information contained in this Item 2.02 shall not be deemed &#8220;filed&#8221; for purposes
        of Section 18 of the Securities Exchange Act of 1934, as amended (the &#8220;Exchange
        Act&#8221;), or incorporated by reference in any filing under the Securities Act of
        1933, as amended, or the Exchange Act, except as shall be expressly set forth
        by
        specific reference in such a filing.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>ITEM
        5.03. </strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Amendments
        to Articles of Incorporation or Bylaws; Change in Fiscal
        Year.</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(a)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Amendment
        to Bylaws.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
        November 3, 2005, the Company&#8217;s Board of Directors amended and restated the
        Company&#8217;s Bylaws. The amendments were as follows:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

          <tr valign="top" style="LINE-HEIGHT: 1.25">
            <td align="right" style="WIDTH: 72pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(i)&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Added
                a provision to Section 3 of Article II to set a maximum age limit
                for
                non-employee directors. As a result of the amendment, no person who
                is not
                an employee of the Company or one of its subsidiaries may stand for
                election to the Board of Directors after reaching the age of
                72.</font></div>
            </td>
          </tr>

      </table>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="LINE-HEIGHT: 1.25">
            <td align="right" style="WIDTH: 72pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(ii)&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Deleted
                the expired requirement in Section 12 of Article II that, until September
                30, 2005, an equal number of directors serving on each of the Audit,
                Compensation and Nominating Committees of the Board represent The
                Talbot
                Bank of Easton, Maryland (&#8220;Talbot Bank&#8221;) and The Centreville National Bank
                of Maryland (&#8220;Centreville National
                Bank&#8221;).</font></div>
            </td>
          </tr>

      </table>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="left">&#160;</div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-3-</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right">&#160;</div>
        </div>
        <div>&#160;</div>
      </div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="LINE-HEIGHT: 1.25">
            <td align="right" style="WIDTH: 72pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(iii)&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Deleted
                as expired the requirement in Section 1 of Article III that, until
                September 30, 2005, the Board have a Chairman. Now, the appointment
                of a
                Chairman is optional. </font></div>
            </td>
          </tr>

      </table>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="LINE-HEIGHT: 1.25">
            <td align="right" style="WIDTH: 72pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(iv)&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Deleted
                the expired requirement in Section 2 of Article III that, until September
                30, 2005, the Chairman of the Board be a non-employee director of
                Centreville National Bank.</font></div>
            </td>
          </tr>

      </table>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="LINE-HEIGHT: 1.25">
            <td align="right" style="WIDTH: 72pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(v)&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Deleted
                the expired requirement in Section 3 of Article III that, until September
                30, 2005, the President of Talbot Bank be the President of the Company
                unless two-thirds of the entire Board determines otherwise.
                </font></div>
            </td>
          </tr>

      </table>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="LINE-HEIGHT: 1.25">
            <td align="right" style="WIDTH: 72pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(vi)&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Deleted
                the expired requirement in Section 4 of Article III that, until September
                30, 2005, the President of Centreville National Bank be an Executive
                Vice
                President and the Chief Operating Officer of the Company unless two-thirds
                of the entire Board determines otherwise.</font></div>
            </td>
          </tr>

      </table>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="LINE-HEIGHT: 1.25">
            <td align="right" style="WIDTH: 72pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(vii)&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
                Section 2 of Article VI, deleted the designation of the general post
                office in Centreville, Maryland as the default mailing address for
                any
                director, officer or stockholder who is entitled to receive notice
                required by the Bylaws.</font></div>
            </td>
          </tr>

      </table>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="LINE-HEIGHT: 1.25">
            <td align="right" style="WIDTH: 72pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(viii)&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Deleted
                as expired the requirement in Section 3 of Article VI that, until
                September 30, 2005, any person who votes the stock of a banking
                organization registered in the name of the Company in the election
                or
                removal of directors of such institution must cast votes in favor
                of the
                election or against removal of directors of such institution, unless
                directed otherwise by two-thirds of the entire
                Board.</font></div>
            </td>
          </tr>

      </table>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">A
        copy of
        the current Bylaws, as amended and restated, is attached hereto as Exhibit
        3.2.
</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>ITEM
        9.01. Financial Statements and Exhibits.</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

            <tr valign="top" style="LINE-HEIGHT: 1.25">
              <td style="WIDTH: 36pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(c)</font></td>
              <td align="left" valign="bottom" style="WIDTH: 63pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Exhibit
                3.2</font></td>
              <td align="left" valign="bottom">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Bylaws,
                  as amended and restated on November 3, 2005 (filed
                  herewith)</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

            <tr valign="top" style="LINE-HEIGHT: 1.25">
              <td style="WIDTH: 36pt">
              </td>
              <td align="left" valign="bottom" style="WIDTH: 63pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Exhibit
                10.1</font></td>
              <td align="left" valign="bottom">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Form
                  of Employment Agreement with Thomas Evans, as amended on November
                  3, 2005
                  (filed herewith).</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

            <tr valign="top" style="LINE-HEIGHT: 1.25">
              <td style="WIDTH: 36pt">
              </td>
              <td align="left" valign="bottom" style="WIDTH: 63pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Exhibit
                99.2</font></td>
              <td align="left" valign="bottom">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Press
                  Release dated November 8, 2005 (furnished
                  herewith).</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="left">&#160;</div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-4-</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right">&#160;</div>
        </div>
      </div><br>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>SIGNATURES</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
        to the requirements of Section 13 or 15(d) of the Securities Exchange Act
        of
        1934, the registrant has duly caused this report to be signed on its behalf
        by
        the undersigned, thereunto duly authorized.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
        <table align="center" bgcolor="#ffffff" border="0" cellpadding="0" cellspacing="0" width="100%">

            <tr valign="top" bgcolor="#ffffff">
              <td width="50%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td width="49%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            </tr>
            <tr valign="top" bgcolor="#ffffff">
              <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td colspan="2"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SHORE
                BANCSHARES, INC.</font></td>
            </tr>
            <tr valign="top" bgcolor="#ffffff">
              <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;<br>&#160;</font></td>
              <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;<br>&#160;</font></td>
              <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;<br>&#160;</font></td>
            </tr>
            <tr valign="top" bgcolor="#ffffff">
              <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Dated:
                November 9, 2005</font></td>
              <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">By:&#160;&#160;</font></td>
              <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">/s/&#160;W.
                Moorhead Vermilye</font></td>
            </tr>
            <tr valign="top" bgcolor="#ffffff">
              <td colspan="2"><font style="FONT-FAMILY: Times New Roman" size="1">&#160;</font></td>
              <td align="left">
                <hr style="COLOR: #000000" align="left" noshade size="2" width="80%"><font size="2">W.
                Moorhead Vermilye</font></td>
            </tr>
            <tr valign="top" bgcolor="#ffffff">
              <td colspan="2"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">President
                and CEO</font></td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="left">&#160;</div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-5-</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right">&#160;</div>
        </div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>EXHIBIT
        INDEX</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

            <tr valign="top" style="LINE-HEIGHT: 1.25">
              <td align="left" valign="bottom" style="WIDTH: 63pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Exhibit
                <br><u>Number</u></font></td>
              <td align="left" valign="bottom">
                <div align="left">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Description</u></font></div>
                </div>
              </td>
            </tr>

        </table>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">
        <div>
          <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

              <tr valign="top" style="LINE-HEIGHT: 1.25">
                <td align="left" valign="bottom" style="WIDTH: 63pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Exhibit
                  3.2</font></td>
                <td align="left" valign="bottom">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Bylaws,
                    as amended and restated on November 3, 2005 (filed
                    herewith)</font></div>
                </td>
              </tr>

          </table>
        </div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
        <div>
          <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

              <tr valign="top" style="LINE-HEIGHT: 1.25">
                <td align="left" valign="bottom" style="WIDTH: 63pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Exhibit
                  10.1</font></td>
                <td align="left" valign="bottom">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Form
                    of Employment Agreement with Thomas Evans, as amended on November
                    3, 2005
                    (filed herewith).</font></div>
                </td>
              </tr>

          </table>
        </div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
        <div>
          <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

              <tr valign="top" style="LINE-HEIGHT: 1.25">
                <td align="left" valign="bottom" style="WIDTH: 63pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Exhibit
                  99.1</font></td>
                <td align="left" valign="bottom">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Press
                    Release dated November 8, 2005 (furnished
                    herewith).</font></div>
                </td>
              </tr>

          </table>
        </div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
        <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
          <div id="FTR">
            <div id="GLFTR" style="WIDTH: 100%" align="left">&#160;</div>
          </div>
          <div id="PN">
            <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-6-</font></div>
            <div style="WIDTH: 100%; TEXT-ALIGN: center">
              <hr style="COLOR: black" noshade size="2">
            </div>
          </div>
          <div id="HDR">
            <div id="GLHDR" style="WIDTH: 100%" align="right">&#160;</div>
          </div>
        </div>
      </div>
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{"company-data": {"conformed-name": "SHORE BANCSHARES INC", "cik": "0001035092", "assigned-sic": "6021", "irs-number": "521974638", "state-of-incorporation": "MD", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-22345", "film-number": "051188741"}, "business-address": {"street1": "18 EAST DOVER STREET", "city": "EASTON", "state": "MD", "zip": "21601-3013", "phone": "4108221400"}, "mail-address": {"street1": "18 EAST DOVER STREET", "city": "EASTON", "state": "MD", "zip": "21601-3013"}}
UNITED
        STATES
SECURITIES
        AND EXCHANGE COMMISSION
Washington,
        D.C. 20549
FORM
        8-K
CURRENT
        REPORT
PURSUANT
        TO SECTION 13 OR 15(d) OF THE
SECURITIES
        EXCHANGE ACT OF 1934
Date
        of
        Report (Date of earliest event reported): November 3, 2005
SHORE
        BANCSHARES, INC.
(Exact
        name of registrant as specified in its charter)
Maryland
0-22345
52-1974638
(State
                  or other jurisdiction of
incorporation
                  or organization)
(Commission
                  file number)
(IRS
                  Employer
Identification
                  No.)
18
        East Dover Street, Easton, Maryland 21601
(Address
        of principal executive offices) (Zip Code)
(410)
        822-1400
(Registrant's
        telephone number, including area code)
N/A
(Former
        Name or Former Address, if Changed Since Last Report)
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:
o
Written
                  communications pursuant to Rule 425 under the Securities Act (17
                  CFR
                  230.425)
o
Soliciting
                  material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
                  240.14a-12)
o
Pre-commencement
                  communications pursuant to Rule 14d-2(b) under the Exchange Act
                  (17 CFR
                  240.14d-2(b))
o
Pre-commencement
                  communications pursuant to Rule 13e-4(c) under the Exchange Act
                  (17 CFR
                  240.13e-4(c))
ITEM
        1.01. Entry into a Material Definitive Agreement.
Shore
        Bancshares, Inc. (the "Company") and its Delaware bank subsidiary, The Felton
        Bank ("Felton Bank"), are party to an employment agreement with Thomas Evans
        dated April 1, 2002 (the "Agreement"). A copy of the Agreement was filed as
        Exhibit 10.7 to the Company's Annual Report on Form 10-K for the year ended
        December 31, 2004. Under the Agreement, Mr. Evans is to serve as President
        and
        Chief Executive Officer of Felton Bank for which Mr. Evans is to receive
        an
        annual salary of $105,000 (subject to annual review and adjustment),
        discretionary bonuses, fringe benefits and vacation generally available to
        other
        officers of the Company's subsidiaries, and participation in the pension, profit
        sharing, retirement, equity and incentive compensation plans generally available
        to other officers of the Company's subsidiaries. The Agreement has an initial
        term of four years, subject to automatic renewal for 12-month terms unless
        one
        of the parties objects, but may be terminated by the Company and Felton Bank
        at
        any time with or without cause (as defined in the Agreement) or by Mr. Evans
        for
        any reason upon 90 days' written notice. Any termination by the Company or
        Felton Bank without cause entitles Mr. Evan's to a lump sum payment of one
        year's salary. In addition, during the initial four-year term, Mr. Evans may
        voluntarily terminate his employment upon the occurrence (and for 90 days
        thereafter) within 12 months of a Change in Control (as defined in the
        Agreement) of any of the following events without his consent (the "Voluntary
        Termination Reasons"): (i) his base compensation is reduced by the Company
        and/or Felton Bank, (ii) the Company and/or Felton Bank fail to provide him
        with
        the other benefits and compensation contemplated by the Agreement, (iii)
        the
        Company and/or Felton Bank assign him duties and responsibilities that are
        materially different from those normally associated with his position, or
        (iv)
        the Company and/or Felton Bank materially reduce his responsibilities or
        authority. Upon a termination for any of the Voluntary Termination Reasons,
        Mr.
        Evans is entitled to receive a lump sum payment equal to one year's salary.
        During the term of the Agreement (whether or not he remains employed during
        that
        term) or, if the Company and Felton Bank terminate the Agreement without
        cause
        or Mr. Evans terminates it upon a Change in Control, for one year after his
        employment terminates, Mr. Evans agrees to not serve any other financial
        institution operating within 50 miles of either the Company or Felton Bank.
        In
        the event Mr. Evans becomes disabled, he is entitled to receive the following
        percentages of his compensation, inclusive of any benefits which may be payable
        to him under any disability insurance then in effect: (i) 100% for the first
        six
        months of disability; (ii) 75% for the next 12 months; and (iii) 50% thereafter
        for the remainder of the initial four-year term or any renewal thereof. If
        Mr.
        Evans returns to work and is employed on a full-time basis for at least 12
        months from the last period of disability, then benefits will restart upon
        a
        subsequent disability. If he returns to work for less than 12 months and
        is
        again disabled, benefits will continue where they stopped at the end of his
        previous disability period.
On
        November 3, 2005, the Company, Felton Bank and Mr. Evans agreed to amend
        the
        Agreement so that it contains Change in Control provisions similar to those
        contained in the employment contracts with the Presidents of the Company's other
        bank subsidiaries. Specifically, the Agreement was amended so that, in the
        event
        the Company and Felton Bank terminate Mr. Evans's employment following a Change
        in Control without his consent and for a reason other than cause, he is to
        receive an amount equal to the difference between (i) the product of 2.99
        times
        his "base amount" as defined in Section 280G(b)(3) of the Internal Revenue Code
        and (ii) the sum of any other "parachute payments" (as defined under Section
        280G(b)(2) of the Code) that he receives on account of the Change in Control
        (the "Change in Control Amount"). Mr. Evans will also be entitled to the Change
        in Control Amount if (i) he terminates his employment for any reason within
        30
        days of a Change in Control or (ii) he terminates his employment for any
        of the
        Voluntary Termination Reasons that occur within 12 months of a Change in
        Control. In addition, the following were added to the list of Voluntary
        Termination Reasons: (i) the Company and Felton Bank require Mr. Evans to
        perform his principal executive functions more than 35 miles from his primary
        office as of the date of the Change in Control; and (ii) Mr. Evans is not
        elected or re-elected to the Board of Directors of each of the Company and
        Felton Bank following the Change in Control (if he was serving on such Boards
        prior to the Change in Control). Finally, the Agreement was amended so that
        Mr.
        Evans may exercise his ability to terminate his employment for any of the
        Voluntary Termination Reasons without regard to whether the Change in Control
        occurs during the initial four-year term of the Agreement. This amended
        Agreement replaces and supersedes the April 1, 2002 version.
-2-
The
        form
        of Agreement, as amended on November 3, 2005, is filed herewith as Exhibit
        10.1.
In
        addition to serving as President and Chief Executive Officer of Felton Bank,
        Mr.
        Evans is also a director of both the Company and Felton Bank.
ITEM
        2.02. Results of Operation and Financial Condition.
On
        November 8, 2005, the Company issued a press release describing the Company's
        financial results for the quarter ended September 30, 2005, a copy of which
        is
        furnished herewith as Exhibit 99.1.
The
        information contained in this Item 2.02 shall not be deemed "filed" for purposes
        of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange
        Act"), or incorporated by reference in any filing under the Securities Act of
        1933, as amended, or the Exchange Act, except as shall be expressly set forth
        by
        specific reference in such a filing.
ITEM
        5.03.
Amendments
        to Articles of Incorporation or Bylaws; Change in Fiscal
        Year.
(a)
Amendment
        to Bylaws.
On
        November 3, 2005, the Company's Board of Directors amended and restated the
        Company's Bylaws. The amendments were as follows:
(i)
Added
                a provision to Section 3 of Article II to set a maximum age limit
                for
                non-employee directors. As a result of the amendment, no person who
                is not
                an employee of the Company or one of its subsidiaries may stand for
                election to the Board of Directors after reaching the age of
                72.
(ii)
Deleted
                the expired requirement in Section 12 of Article II that, until September
                30, 2005, an equal number of directors serving on each of the Audit,
                Compensation and Nominating Committees of the Board represent The
                Talbot
                Bank of Easton, Maryland ("Talbot Bank") and The Centreville National Bank
                of Maryland ("Centreville National
                Bank").
-3-
(iii)
Deleted
                as expired the requirement in Section 1 of Article III that, until
                September 30, 2005, the Board have a Chairman. Now, the appointment
                of a
                Chairman is optional.
(iv)
Deleted
                the expired requirement in Section 2 of Article III that, until September
                30, 2005, the Chairman of the Board be a non-employee director of
                Centreville National Bank.
(v)
Deleted
                the expired requirement in Section 3 of Article III that, until September
                30, 2005, the President of Talbot Bank be the President of the Company
                unless two-thirds of the entire Board determines otherwise.
(vi)
Deleted
                the expired requirement in Section 4 of Article III that, until September
                30, 2005, the President of Centreville National Bank be an Executive
                Vice
                President and the Chief Operating Officer of the Company unless two-thirds
                of the entire Board determines otherwise.
(vii)
In
                Section 2 of Article VI, deleted the designation of the general post
                office in Centreville, Maryland as the default mailing address for
                any
                director, officer or stockholder who is entitled to receive notice
                required by the Bylaws.
(viii)
Deleted
                as expired the requirement in Section 3 of Article VI that, until
                September 30, 2005, any person who votes the stock of a banking
                organization registered in the name of the Company in the election
                or
                removal of directors of such institution must cast votes in favor
                of the
                election or against removal of directors of such institution, unless
                directed otherwise by two-thirds of the entire
                Board.
A
        copy of
        the current Bylaws, as amended and restated, is attached hereto as Exhibit
        3.2.
ITEM
        9.01. Financial Statements and Exhibits.
(c)
Exhibit
                3.2
Bylaws,
                  as amended and restated on November 3, 2005 (filed
                  herewith)
Exhibit
                10.1
Form
                  of Employment Agreement with Thomas Evans, as amended on November
                  3, 2005
                  (filed herewith).
Exhibit
                99.2
Press
                  Release dated November 8, 2005 (furnished
                  herewith).
-4-
SIGNATURES
Pursuant
        to the requirements of Section 13 or 15(d) of the Securities Exchange Act
        of
        1934, the registrant has duly caused this report to be signed on its behalf
        by
        the undersigned, thereunto duly authorized.
SHORE
                BANCSHARES, INC.
Dated:
                November 9, 2005
By:
/s/ W.
                Moorhead Vermilye
W.
                Moorhead Vermilye
President
                and CEO
-5-
EXHIBIT
        INDEX
Exhibit
Number
Description
Exhibit
                  3.2
Bylaws,
                    as amended and restated on November 3, 2005 (filed
                    herewith)
Exhibit
                  10.1
Form
                    of Employment Agreement with Thomas Evans, as amended on November
                    3, 2005
                    (filed herewith).
Exhibit
                  99.1
Press
                    Release dated November 8, 2005 (furnished
                    herewith).
-6-