What you are proposing is not a secret sharing, it's a DIY encryption, which is always a bad idea. Secret sharing schemes create equal shares, and they allow
n of
m configurations, but in your example one of your "shares" is a key and the other is cyphertext.
I see your key is 128 bit long, but what is the length of your plaintext? If it's bigger than 128 bits and you just use the same key to encrypt all of it, then it's essentially a Vigenere cipher, which can be broken very easily. If your plaintext is exactly 128 bits, then it's more safe, but still it's worse than real encryption. If you are super paranoid about crypto algorithms for some reason, at least use one-time pad generated with strong RNG.
Also, your scheme is not secure against attacks involving pre-computed hashes, if someone would to get your SHARE 1.
3) Is that scheme already used in "notably safe applications"? If that is the case, which ones?
"Notably safe applications" don't use some homebrew crypto algorithms, they use the standard ones.