# EDGAR Filing Document

**Accession Number:** 0000763907
**File Stem:** 0001104659-26-026453
**Filing Date:** 2026-3
**Character Count:** 32653
**Document Hash:** 37db286c8691a615a69eadeecbaa0a6e
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001104659-26-026453.hdr.sgml**: 20260311

**ACCESSION NUMBER**: 0001104659-26-026453

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 13

**CONFORMED PERIOD OF REPORT**: 20260311

**ITEM INFORMATION**: Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers: Compensatory Arrangements of Certain Officers

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20260311

**DATE AS OF CHANGE**: 20260311

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** FIRST UNITED CORP/MD/
- **CENTRAL INDEX KEY:** 0000763907
- **STANDARD INDUSTRIAL CLASSIFICATION:** NATIONAL COMMERCIAL BANKS [6021]
- **ORGANIZATION NAME:** 02 Finance
- **EIN:** 521380770
- **STATE OF INCORPORATION:** MD
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-14237
- **FILM NUMBER:** 26744349

**BUSINESS ADDRESS:**
- **STREET 1:** 19 S SECOND ST
- **CITY:** OAKLAND
- **STATE:** MD
- **ZIP:** 21550
- **BUSINESS PHONE:** 800-470-4356

**MAIL ADDRESS:**
- **STREET 1:** 19 S SECOND ST
- **CITY:** OAKLAND
- **STATE:** MD
- **ZIP:** 21550

?xml version='1.0' encoding='ASCII'?

**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): March 11, 2026

<u>First United Corporation</u>

(Exact name of registrant as specified in its charter)

<u>Maryland</u> <u>0-14237</u> <u>52-1380770</u> <br> (State or other jurisdiction of (Commission file number) (IRS Employer <br> incorporation or organization) Identification No.)

<u>19 South Second Street, Oakland, Maryland 21550</u>

(Address of principal executive offices) (Zip Code)

<u>(301) 334-9471</u>

(Registrant's telephone number, including area code)

<u>N/A</u>

(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:

◻ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

◻ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

◻ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

◻ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

<u>Title of each class</u> <u>Trading Symbols</u> <u>Name of each exchange on which registered</u> <br> Common Stock FUNC Nasdaq Stock Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).

Emerging growth company ◻

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ◻

**INFORMATION TO BE INCLUDED IN THE REPORT**

---

| | |
|:---|:---|
| **Item 5.02** | **Departure of Directors or Certain Oﬃcers; Election of Directors; Appointment of Certain Oﬃcers; Compensatory Arrangements of Certain Oﬃcers.** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Compensatory <u>Arrangements</u>.

On March 11, 2026, First United Corporation (the "Company") and Jason B. Rush, the President and Chief Executive Officer of the Company and of its bank subsidiary, First United Bank & Trust, entered into a Second Amended and Restated Agreement Under the First United Corporation Change in Control Severance Plan (the "Agreement"). The Agreement was entered into pursuant to, and is subject to the terms and conditions of, the First United Corporation Change in Control Severance Plan (the "Plan"), a copy of which was filed as Exhibit 10.7 to the Company's Annual Report on Form 10-K for the year ended December 31, 2025.

The Agreement was amended to increase the amount of the cash severance benefits to be paid in the event that Mr. Rush incurs a Severance (as defined in the Agreement) following a Change in Control (as defined in the Plan), from 2.0 times his "Final Pay" (as defined in her Agreement) to 2.99 times his Final Pay. A copy of the Agreement is filed as Exhibit 10.1 to this report.

---

| | |
|:---|:---|
| **Item 9.01.** | **Financial Statements and Exhibits.** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Exhibits.

The exhibits filed or furnished with this report are listed in the following Exhibit Index:

---

| | |
|:---|:---|
| <u>Exhibit No.</u> | <u>Description</u> |
| [10.1](tm268593d1_ex10-1.htm) | [Second Amended and Restated Agreement Under the First United Corporation Change in Control Severance Plan, dated as of March 11, 2026, by and between First United Corporation and Jason B. Rush (filed herewith)](tm268593d1_ex10-1.htm) |
| 104 | Cover page interactive data file (embedded within the iXBRL document) |

---

**SIGNATURES**

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.

---

| | | |
|:---|:---|:---|
|  | FIRST UNITED CORPORATION | FIRST UNITED CORPORATION |
| Dated: March 11, 2026 | By: | /s/ Tonya K. Sturm |
|  | Name: | Tonya K. Sturm |
|  | Title: | Executive Vice President and CFO |

---

## Exhibit 10.1

**Exhibit 10.1**

**SECOND AMENDED AND RESTATED AGREEMENT UNDER THE**

**FIRST UNITED CORPORATION CHANGE IN CONTROL SEVERANCE PLAN**

THIS SECOND AMENDED AND RESTATED AGREEMENT UNDER THE FIRST UNITED CORPORATION CHANGE IN CONTROL SEVERANCE PLAN (the "<u>Agreement</u>") is entered into this 11th day of March 2026 by and between First United Corporation, a Maryland corporation (the "<u>Company</u>"), and Jason B. Rush, an executive officer of the Company and of First United Bank & Trust, a subsidiary of the Company (the "<u>Eligible Employee</u>").

**RECITALS:**

WHEREAS, the Company adopted the First United Corporation Change in Control Severance Plan effective as of February 14, 2007, as amended and supplemented from time to time, a copy of which is attached hereto as <u>Exhibit A</u> (the "<u>Plan</u>"); and

WHEREAS, the Eligible Employee has been designated as a participant in the Plan;

WHEREAS, the Company and the Eligible Employee entered into that certain Agreement Under the First United Corporation Change in Control Severance Plan, dated as of February 14, 2007, that sets forth the benefits to which the Eligible Employee is entitled under the Plan, which was amended and restated on January 7, 2021 (as amended and restated, the "<u>Original Agreement</u>"), the current term of which commenced on February 14, 2026 (the "<u>Effective Date</u>"); and

WHEREAS, the Company and the Eligible Employee desire to amend and restate the Original Agreement to revise the benefits to which the Eligible Employee is entitled under the Plan and to update the Original Agreement.

NOW, THEREFORE, in consideration of the foregoing, the agreements and covenants set forth herein, and other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree to enter into this Agreement, as follows:

1. <u>Definitions</u>. Except as defined in the Recitals and below, capitalized terms in this Agreement shall have the meanings given those terms in the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) " <u>Base Amount</u> " means the Eligible Employee's "annualized includible compensation
for the base period," within the meaning of Sections 280G(d)(1) and (d)(2) of the Code and the Treasury Regulations thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) " <u>Cause</u> " means one of the following reasons for which the Eligible Employee's
employment with the Employer is terminated: (1) willful or grossly negligent misconduct that is materially injurious to the Employer;
(2) embezzlement or misappropriation of funds or property of the Employer; (3) conviction of a felony or the entrance of a plea of guilty
or nolo contendere to a felony; (4) conviction of any crime involving fraud, dishonesty, moral turpitude or breach of trust or the entrance
of a plea of guilty or nolo contendere to such a crime; (5) failure or refusal by the Eligible Employee to devote full business time and
attention to the performance of his or her duties and responsibilities if such breach has not been cured within 15 days after notice is
given to the Eligible Employee; or (6) issuance of a final non-appealable order or other direction by a Federal or state regulatory agency
prohibiting the Eligible Employee's employment in the business of banking.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) " <u>Change in Control Severance Benefits</u> " means the benefits payable pursuant to *Section 3* of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) " <u>Change in Control Protection Period</u> " means the period commencing on the later of (1)
the date that is 90 days before the date a Change in Control occurs and (2) the Effective Date and ending on the first anniversary of
the date on which the Change in Control occurs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) " <u>Contingent Payments</u> " means payments in the "nature of compensation"
to (or for the benefit) of an Eligible Employee if such payment is "contingent on a change in the ownership or effective control
of the corporation or in the ownership of a substantial portion of the assets of the corporation," as such terms are defined in
Section 280G of the Code and the Treasury Regulations thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) " <u>Disability</u> " shall have the meaning given that term under the First United Bank &
Trust Long Term Disability Plan, as in effect at the time a determination of Disability is to be made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) " <u>Effective Date</u> " has the meaning given such term in the Recitals to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) " <u>Employer</u> " means the Company or an Affiliate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) " <u>Equity Plan</u> " means each equity compensation plan adopted by the Company's Board
of Directors, including the First United Corporation 2018 Equity Compensation Plan, and each sub-plan thereunder or thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) " <u>Final Pay</u> " means the sum of (1) the Eligible Employee's annual salary for the
year in which employment terminates, regardless of whether all such salary has been paid at the time of termination of employment and
(2) the greater of (A) the Eligible Employee's targeted cash bonus for the year in which employment terminates or (B) the actual
cash bonus earned by the Eligible Employee for the year immediately prior to the year in which employment terminates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) " <u>Good Reason</u> " means, without the specific written consent of the Eligible Employee,
any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) A material and adverse change in the Eligible Employee's status or position(s) as an officer or management employee of the Employer as in effect immediately prior to the Change in Control, including, without limitation, any adverse change in his or her status or position as an employee of the Employer as a result of a material diminution in his or her duties or responsibilities (other than, if applicable, any such change directly attributable to the fact that the Employer is no longer publicly owned) or the assignment to him or her of any duties or responsibilities which are materially inconsistent with such status or position(s) (other than any isolated and inadvertent failure by the Employer that is cured promptly upon his or her giving notice), or any removal of the Eligible Employee from or any failure to reappoint or reelect him or her to such position(s) (except in connection with the Eligible Employee's Severance other than for Good Reason).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) A 10% or greater reduction in the Eligible Employee's base salary and targeted bonus from the base salary and targeted bonus that was in effective immediately prior to the occurrence of a Change of Control, but disregarding any reduction in bonus which occurs in accordance with the terms of any written bonus program as it reads immediately prior to the occurrence of a Change of Control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) The failure by the Employer or any successor to continue in effect any employee benefit plan (excluding any equity compensation plan) in which the Eligible Employee is participating at the time of the Change in Control (or plans providing the Eligible Employee with at least substantially similar benefits in the aggregate) other than as a result of the normal expiration of any such plan in accordance with its terms as in effect at the time of the Change in Control; or the taking of any action, or the failure to act, by the Employer or any successor which would adversely affect the Eligible Employee's continued participation in any of such plans on at least as favorable a basis to him or her as is the case on the date of the Change in Control or which would materially reduce his or her benefits under any of such plans.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) The Employer's requiring the Eligible Employee to be based at an office that is both more than 50 miles from where his or her office is located immediately prior to the Change in Control and further from his or her then current residence, except for required travel on the Employer's business to an extent substantially consistent with the business travel obligations which the Eligible Employee undertook on behalf of the Employer prior to the Change in Control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) The failure by the Company to obtain assumption of the Plan by a successor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) " <u>Key Employee</u> " means, for the 12-month period beginning on a particular April 1, an
Eligible Employee described in Section 416(i) of the Code (applied in accordance with the Section 416 regulations and disregarding Section
416(i)(5) of the Code) at any time during the 12-month period ending on the preceding December 31.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) " <u>Severance</u> " means (1) the involuntary termination of the Eligible Employee's
employment by the Employer, other than for Cause, death or Disability or (2) a termination of the Eligible Employee's employment
by the Eligible Employee for Good Reason, in each case, during the Change in Control Protection Period; provided, however, that in each
case the termination constitutes a "separation from service" within the meaning of Section 409A(a)(2)(A)(i) of the Code and
Treasury Regulations thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) " <u>Severance Date</u> " means the date on which the Eligible Employee incurs a Severance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) " <u>Welfare Benefit Continuation Period</u> " means the period that commences on the first
day of the month that immediately follows the month in which the Eligible Employee's Severance Date occurs and ends on the last
day of the month in which the second anniversary of such Severance Date occurs.

2. <u>Term of Agreement</u>. The term of this Agreement shall commence on the Effective Date and shall terminate on the first anniversary of the Effective Date; *provided, however*, that (a) the Agreement shall automatically extend for additional one-year terms unless the Company provides written notice to the Eligible Employee not less than 6 months before the end of the then-current term; and (b) the Agreement shall automatically extend until the end of the Change in Control Protection Period if a Change in Control occurs during the term of the Agreement.

3. <u>Change in Control Severance Benefits</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Generally</u>. Subject to *Section 3(h), Section 3(i)*, and *Section 4* below, the
Eligible Employee shall be entitled to the Change in Control Severance Benefits provided in this *Section 3* if he or she incurs
a Severance during the Change in Control Protection Period. Except for any benefits to which the Eligible Employee may be entitled to
receive pursuant to the First United Bank & Trust Supplemental Executive Retirement Plan (as amended or supplemented from time to
time), the Change in Control Severance Benefits provided in this *Section 3* shall be the sole severance payments and benefits to
which the Eligible Employee shall be entitled during the Change in Control Protection Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Payment of Accrued Obligations</u>. If the Eligible Employee incurs a Severance during the Change
in Control Protection Period, the Company shall pay to him or her a lump sum payment in cash, no later than 10 days after the Severance
Date, equal to the sum of (1) the Eligible Employee's accrued annual base salary and any accrued vacation pay through the Severance
Date, and (2) the Eligible Employee's annual bonus earned for the fiscal year immediately preceding the fiscal year in which the
Severance Date occurs if such bonus has not been paid as of the Severance Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Payment of Severance</u>. Subject to *Section 3(h), Section 3(i)*, and *Section 4* below,
if the Eligible Employee incurs a Severance during a Change in Control Protection Period, the Company shall pay to him or her a lump sum
cash payment on the 60<sup>th</sup> day after the Severance Date, equal to 2.99 times the Eligible Employee's Final Pay.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) [Intentionally Omitted].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Immediate Vesting of Equity-Based Compensation Awards upon a Change in Control</u>. Subject to *Section 3(h), Section 3(i)*, and *Section 4* below, if the Eligible Employee incurs a Severance during the Change in Control
Protection Period, (1) the unexercised portions of all stock options and stock appreciation rights granted to the Eligible Employee under
the Equity Plan that have not expired or been forfeited pursuant to their terms shall automatically accelerate and become fully exercisable,
(2) the restrictions and conditions on all outstanding stock awards granted to the Eligible Employee under the Equity Plan that have not
expired or been forfeited pursuant to their terms shall immediately lapse, (3) all unpaid dividend equivalents granted to the Eligible
Employee under the Equity Plan that have not expired or been forfeited pursuant to their terms shall become fully payable in amounts determined
by the Committee, (4) the restrictions and conditions on all outstanding stock-based awards not described in *clauses (1)* through *(3)* of this *Section 3(e)* granted to the Eligible Employee that vest based solely on the passage of time and that have not
expired or been forfeited pursuant to their terms shall immediately lapse, (5) all outstanding stock-based awards not described in *clauses (1)* through *(3)* of this *Section 3(e)* granted to the Eligible Employee that vest based, in whole or in part, on the satisfaction
of one or more performance criteria and that have not expired or been forfeited pursuant to their terms shall become payable in an amount
not less than their target amounts, as determined by the Committee; *provided, however*, that, where a Severance precedes the Change
in Control and the terms of any award granted to the Eligible Employee under the Equity Plan would otherwise call for the forfeiture of
such award upon the termination of the Eligible Employee's employment with the Company, such award shall not be deemed to be forfeited
on account of the Eligible Employee's Severance and shall remain outstanding (subject to the other terms of the award, including
its original term) as if the Change in Control preceded the Severance; and *provided further* that if there is an inconsistency between
this *Section 3(e)* and any term or condition of an award agreement relating to any of the foregoing equity awards, then this *Section 3(e)* shall control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Benefit Continuation</u>. Subject to *Section 3(h)*, *Section 3(i)*, and *Section 4* below, if the Eligible Employee incurs a Severance during the Change in Control Protection Period, then, for each month that is
included in the Welfare Benefit Continuation Period, the Company shall make a cash payment to the Eligible Employee in an amount equal
to the amount that the Employer would have paid to cover the Eligible Employee under the Employer's medical and dental plan(s) had
the Eligible Employee remained an active employee of the Company and covered under such plan(s) during such month (with the same type
and level of coverages that she maintained as of his or her Severance Date), after giving effect to any amounts that the Eligible Employee
would have paid for such coverages had she remained an active employee of the Company during such month. The Company shall not be obligated
to "gross up" or otherwise compensate the Eligible Employee for any taxes due on amounts paid pursuant to the preceding sentence.

Notwithstanding any other provision of this *Section 3(f)*, the Company's obligation to make the payments contemplated by the preceding paragraph shall terminate on the date on which the Eligible Employee becomes covered under one or more plans sponsored by a new employer (other than a successor to the Company) that, in the sole discretion of the Plan Administrator, are determined to provide coverages that are at least equivalent in the aggregate to the coverages that the Eligible Employee would have had if she had remained an active employee of the Company and covered under the Employer's plan(s) during the Welfare Benefit Continuation Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Outplacement Services</u>. Subject to *Section 3(i)* and *Section 4* below, if the
Eligible Employee incurs a Severance during the Change in Control Protection Period, the Company shall provide him or her with reasonable
outplacement services for up to 12 months following the Severance Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Release</u>. The Company will provide the Eligible Employee with a written release and agreement within
five (5) days of his Severance during a Change in Control Protection Period. The Eligible Employee shall not be eligible to receive any
Change in Control Severance Benefits provided in this *Section 3* (other than payments under *Section 3(b)* above) and such
Change in Control Severance Benefits shall be forfeited unless he or she has executed and submitted the written release and agreement
provided by the Company and the applicable period during which the Eligible Employee may revoke such release and agreement has expired
on or before the 60<sup>th</sup> day after the date provided in *Section 3(c)* above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Restriction on Timing of Distribution for Key Employees</u>. Notwithstanding any provision of this
Agreement to the contrary and to the extent required by Section 409A of the Code and the Treasury Regulations thereunder, if the Eligible
Employee is a Key Employee and any class of securities of the Company (or of any person with whom the Company would be considered a single
employer under Section 414(b) and (c) of the Code) is publicly traded as of the Eligible Employee's Severance Date, no distribution
may be made to the Eligible Employee on account of such Severance before the date that is six (6) months after the Severance Date (or,
if earlier, the date of the Key Employee's death).

4. <u>Reduction of Change in Control Severance Benefits</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Reduction</u>. If it is determined that the aggregate present value of (1) such portion of the
Eligible Employee's Change in Control Severance Benefits that are considered Contingent Payments, and (2) all other Contingent
Payments payable to the Eligible Employee exceeds 2.99 times the Eligible Employee's Base Amount such that the excise tax under
Section 4999 of the Code would otherwise be triggered, then the Change in Control Severance Benefits provided in *Section 3(c)* shall
be reduced to the extent necessary so that the aggregate present value of all Contingent Payments payable following such reduction does
not exceed 2.99 times the Eligible Employee's Base Amount.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Determination</u>. The determination that the aggregate present value of the Eligible Employee's
Contingent Payments exceed 2.99 times his or her Base Amount, and the calculation of the amount of any reduction, shall be made, at the
Company's discretion, by the Company's outside auditing firm or by a nationally-recognized accounting or benefits consulting
firm designated by the Company prior to a Change in Control. The firm's expenses shall be paid by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Payment of Remaining Benefits</u>. If the determination is made that an Eligible Employee's Change
in Control Severance Benefits must be reduced in accordance with *Section 4(b)* above, then the amount of such Benefits that are
actually paid to the Eligible Employee pursuant to *Section 3(c)* above will be the amount determined under *Section 4(a)* above
(the "Remaining Benefits") and such Remaining Benefits will be paid at the same time and in the same form otherwise specified
in *Section 3(c)* above.

5. <u>Taxes; Withholding</u>. The Eligible Employee shall be responsible for the payment of all applicable local, state and federal taxes associated with the Eligible Employee's participation in the Plan and the receipt of Change in Control Severance Benefits hereunder, and the Company shall have the right to deduct from any distributions hereunder any such taxes or other amounts required by law to be withheld therefrom.

6. <u>General Provisions</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Amendment and Termination</u>. This Agreement may not be terminated prior to the end of its then-current
term without the written consent of the Eligible Employee. This Agreement may be amended by the Board at any time; *provided, however*,
that this Agreement may not be amended without the written consent of the Eligible Employee if such amendment would in any manner adversely
affect the interests of the Eligible Employee. Any action taken by the Company or the Plan Administrator to cause the Eligible Employee
to no longer be designated as an Eligible Employee or any action taken by the Company or the Plan Administrator to decrease the benefits
for which the Eligible Employee is eligible shall be treated as an amendment to the Agreement which adversely affects the interests of the
Eligible Employee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Compliance with Law</u>. Notwithstanding *Section 6(a)* above or any other provision of this Agreement
to the contrary, the Company may amend, modify or terminate this Agreement, without the consent of the Eligible Employee, as the Company
deems necessary or appropriate to ensure compliance with any law, rule, regulation or other regulatory pronouncement applicable to the
Plan or this Agreement, including, without limitation, Section 409A of the Code and any Treasury Regulations or other guidance thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Governing Law</u>. This Agreement shall be construed and enforced according to the laws of the State
of Maryland to the extent not preempted by federal law, without regard to any conflict of laws principles that would apply the law of
another jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Severability</u>. If any provision of this Agreement shall be held invalid or unenforceable, such invalidity
or unenforceability shall not affect any other provisions hereof, and this Agreement shall be construed and enforced as if such provisions
had not been included.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Headings and Terms</u>. The headings and captions herein are provided for reference and convenience
only, shall not be considered part of the Agreement, and shall not be employed in the construction of the Agreement. Capitalized terms
shall have the meanings given herein. Singular nouns shall be read as plural and masculine pronouns shall be read as feminine, and vice
versa, as appropriate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Successors</u>. This Agreement shall be binding upon each of the parties and shall also be binding
upon their respective successors or assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Application of the Plan; Entire Agreement</u>. The Eligible Employee acknowledges, by executing this
Agreement, that (1) this Agreement is subject in all respects to the provisions of the Plan, as amended from time to time, the terms of
which are incorporated herein by reference and made a part hereof, (2) that a copy of the Plan and all amendments thereto through the
date hereof were provided to the Eligible Employee on the date hereof, and (3) he or she understands and accepts of all of the terms and
conditions of the Plan. This Agreement sets forth the entire agreement of the parties with respect to the subject matter hereof. Any and
all prior agreements or understandings with respect to such matters are hereby superseded.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Counterparts</u>. This Agreement may be executed in counterparts, each of which shall be deemed an
original, and all of which together shall constitute one and the same instrument. The exchange of copies of this Agreement and of signature
pages by facsimile or PDF transmission shall constitute effective execution and delivery of this Agreement as to the parties hereto and
may be used in lieu of an original of this Agreement for all purposes. Signatures of the parties hereto transmitted electronically (*e.g.*,
by Docusign, facsimile, PDF, etc.) shall be deemed to be their original signatures for all purposes.

[*Signatures Appear on Next Page*]

[*Signature Page*]

IN WITNESS WHEREOF, each of the parties has caused this Agreement to be executed as of the date first written above.

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| | |
|:---|:---|
| FIRST UNITED CORPORATION | FIRST UNITED CORPORATION |
| By: | /s/ Jason B. Rush |
| Name: | Jason B. Rush |
| Title: | President and CEO |
| ELIGIBLE EMPLOYEE | ELIGIBLE EMPLOYEE |
|  | /s/ Jason B. Rush |
| Name: | Jason B. Rush |

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