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Unassociated Document

    Exhibit
      10.4

    FIRST
      UNITED
      BANK&
      TRUST

    AMENDEDAND
      RESTATED
      SUPPLEMENTAL
      EXECUTIVE
      RETIREMENT
      PLAN

    

    RECITALS:

    

    WHEREAS,
      the First United Bank and Trust (the “Employer”) established a Supplemental
      Executive Retirement Plan (the “Original Plan”) on November 1, 2001;

    

    WHEREAS,
      the Plan was intended to qualify as a “top hat” plan maintained primarily for
      purposes of providing benefits for a select group of management and highly
      compensated employees within the meaning of Sections 201(2), 301(a)(3) and
      401(a)(1) of the Employee Retirement Income Security Act of 1974, as amended;
      and

    

    WHEREAS,
      the Employer desires to amend and restate the Original Plan to make certain
      clarifying and other changes and to ensure that it complies with Section 409A
      of
      the Internal Revenue Code.

    

    NOW
      THEREFORE, the Original Plan is hereby amended and restated, effective January
      1, 2005, as follows (the Original Plan, as amended and restated herein, is
      referred to as the “Plan”):

    

    ARTICLE
      I

    GENERAL

    

    
      	
              1.1
                

            	
              Purpose
                of the Plan.
                The purpose of this Plan is to reward certain management and highly
                compensated employees of the Employer who have contributed to the
                Employer’s success and are expected to continue to contribute to such
                success in the future.

            

    

    

    
      	
              1.2

            	
              Plan
                Benefits Generally.
                Pursuant to the Plan, the Employer may provide to each Participant
                SERP
                Benefits on the terms and conditions contained in the Participant’s
                Participation Agreement.

            

    

    

    
      	
              1.3

            	
              Effective
                Date.
                The effective date of the Original Plan is November 1,
                2001.

            

    

    

    
      	
              1.4

            	
              Section
                409A.
                The provisions of this Plan shall apply to all SERP Benefits, including
                those accrued before January 1, 2005. Accordingly, no SERP Benefits
                are
                “grandfathered” for purposes of Section 409A of the
                Code.

            

    

    

    ARTICLE
      II

    DEFINITIONS

    

    
      	
              2.1

            	
              Administrator.
                The term “Administrator” shall mean the Compensation Committee of the
                Employer’s Board, as appointed from time to time by the
                Board.

            

    

    

    
      	
              2.2

            	
              Affiliate.
                The term “Affiliate” means
                any
                “parent corporation” and any “subsidiary corporation” of the Company, as
                such terms are defined in Section 424 of the
                Code.

            

    

    

    
      	
              2.3

            	
              Beneficiary.
                The term “Beneficiary” shall mean the person or persons designated by a
                Participant pursuant to Section 7 of a Participation Agreement as
                his or
                her beneficiary for the receipt of the SERP Benefit payable pursuant
                to
                this Plan and the Participant’s Participation
                Agreement.

            

    

    

    
      	2.4	
              Board.
                The term “Board” means the Board of Directors of the
                Employer.

            

    

    

    
      	2.5	
              Change
                of Control.
                The term “Change of Control” means the occurrence
                of any of the following events:

            

    

    

    
      	 	
              (a)

            	
              Any
                “person” (as such term is used in Sections 13(d) and 14(d) of the
                Securities Exchange Act of 1934, as amended) becomes, within the
                12-month
                period ending on the date of such person’s most recent acquisition, a
                “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act),
                directly or indirectly, of securities of the Employer’s parent
                corporation, First United Corporation, representing more than 20%
                of the
                voting power of the then outstanding securities of First United
                Corporation; provided that a Change of Control shall not be deemed
                to
                occur as a result of a transaction in which the Employer becomes
                a
                subsidiary of another corporation and in which the stockholders of
                First
                United Corporation, immediately prior to the transaction, will
                beneficially own, immediately after the transaction, shares entitling
                such
                stockholders to more than 50% of all votes to which all stockholders
                of
                the other corporation would be entitled in the election of directors
                (without consideration of the rights of any class of stock to elect
                directors by a separate class vote); and provided further that
                ownership
                or control of the Employer’s voting securities, individually or
                collectively, by any Affiliate that is a bank or any benefit plan
                sponsored by the Employer or any Affiliate shall not constitute a
                Change
                of Control;

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (b)

            	
              The
                consummation of (1) a merger, consolidation, or similar extraordinary
                event involving the Employer or its parent corporation and another
                entity
                after the effective date of the Plan where the stockholders of the
                Employer or First United Corporation, as the case may be, immediately
                prior to the merger, consolidation or similar extraordinary event,
                will
                not beneficially own, immediately after the merger, consolidation
                or
                similar extraordinary event, securities entitling such stockholders
                to
                more than 50% of all votes to which all stockholders of the surviving
                corporation would be entitled in the election of directors (without
                consideration of the rights of any class of stock to elect directors
                by a
                separate class vote), or (2) a sale or other disposition of all or
                substantially all of the assets of the Employer or its parent
                corporation;
                or

            

    

    

    
      	 	
              (c)

            	
              During
                any 24-month period, individuals
                who at the beginning of any such period constitute the Board cease
                for any
                reason to constitute at least a majority thereof, unless the election,
                or
                the nomination for election by the Employer’s stockholders, of each
                director of the Employer first elected during such period was approved
                by
                a vote of at least two-thirds of the directors of the Employer then
                still
                in office who were directors of the Employer at the beginning of
                any such
                period.

            

    

    

    
      	
              2.6

            	
              Code.
                The
                term “Code” means the Internal Revenue Code of 1986, as amended.
                

            

    

    

    
      	
              2.7

            	
              Employer.
                The term “Employer” means First United Bank & Trust, a Maryland
                commercial bank, and any successor
                entity.

            

    

    

    
      	
              2.8

            	
              Executive.
                The term “Executive” means a management or highly compensated employee of
                the Employer that is designated as such by the Administrator as eligible
                to participate in the Plan.

            

    

    

    
      	
              2.9

            	
              Normal
                Retirement Age.
                The term “Normal Retirement Age” means the normal retirement age set forth
                in the Participation Agreement. 

            

    

    

    
      	
              2.10

            	
              Participant.
                The term “Participant” means any Executive who elects to participate in
                the Plan by entering into a Participation Agreement in accordance
                herewith. The Administrator may from time to time, in its sole discretion
                with or without cause, revoke a Participant’s participation in the Plan
                upon ninety (90) days’ written notice; provided, however, that such
                revocation shall not reduce any benefits to which the Participant
                may have
                already become entitled at the time of such
                revocation.

            

    

    

    
      	
              2.11

            	
              Participation
                Agreement.
                The term “Participation Agreement” means a written agreement between the
                Employer and a Participant, pursuant to which the Employer agrees
                to
                provide SERP Benefits to the Participant in accordance with the Plan.
                Each
                Participation Agreement shall contain such information, terms and
                conditions as the Administrator in its discretion may specify, including
                without limitation, the following:

            

    

    

    
      	 	
              (a)

            	
              the
                effective date of the Participant’s participation in the
                Plan;

            

    

    

    
      	
            	(b)	
              the
                Participant's Normal Retirement
                Age;

            

    

     

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (c)

            	
              the
                SERP Benefits to which the Participant is entitled under the Plan
                and the
                time(s) at which such SERP Benefits are to be paid;
                and

            

    

    

    
      	 	
              (d)

            	
              any
                other provisions which supplement the terms and conditions contained
                in
                the Plan.

            

    

    

    
      	
              2.12

            	
              Plan.
                The term “Plan” means this Amended and Restated First United Bank &
                Trust Supplemental Executive Retirement Plan, as the same may be
                further
                amended, modified or supplemented.

            

    

    

    
      	
              2.13

            	
              Plan
                Year.
                The term “Plan Year” means calendar year; January 1 through December 31,
                provided that the initial plan year shall be November 1, 2001 to
                December
                31, 2001.

            

    

    

    
      	
              2.14

            	
              SERP
                Benefits.
                The term “SERP Benefits” means, with respect to each Participant, the
                benefits payable pursuant the Participant’s Participation
                Agreement.

            

    

    

    ARTICLE
      III

    ELIGIBILITY
      AND PARTICIPATION

    

    
      	
              3.1

            	
              Eligibility.
                The Administrator, in its sole discretion, shall from time to time
                determine those Executive(s) who shall be eligible to participate
                in the
                Plan.

            

    

    

    
      	
              3.2

            	
              Participation.
                Each Executive who is eligible to participate in the Plan shall enroll
                in
                the Plan by entering into a Participation Agreement and completing
                such
                other forms and furnishing such other information as the Administrator
                may
                request. An Executive’s participation in the Plan shall commence as of the
                date specified in the Participation
                Agreement.

            

    

    

    ARTICLE
      IV

    BENEFITS

    

    
      	
              4.1

            	
              SERP
                Benefits.
                Each Participant, subject to the terms and conditions of his or her
                Participation Agreement, shall become entitled to receive SERP Benefits
                as
                set forth in his or her executed Participation
                Agreement.

            

    

    

    
      	
              4.2

            	
              Vesting.
                A
                Participant's ownership rights in his or her SERP Benefits shall
                vest on
                the terms and conditions provided in his or her Participation
                Agreement.

            

    

    

    ARTICLE
      V

    BENEFICIARIES

    

    
      	
              5.1
                

            	
              Beneficiaries.
                A
                Participant's executed Participation Agreement shall dictate the
                Participant's rights and responsibilities regarding the Participant's
                Beneficiary(s).

            

    

    

    ARTICLE
      VI

    PLAN
      ADMINISTRATION

    

    
      	
              6.1
                

            	
              Administration.
                

            

    

    

    
      	 	
              (a)

            	
              General.
                The Plan shall be administered by the Administrator. Except as the
                Board
                dictates otherwise in a resolution or unanimous consent thereof,
                the
                Administrator shall have sole and absolute discretion to interpret
                where
                necessary all provisions of the Plan (including, without limitation,
                by
                supplying omissions from, correcting deficiencies in, or resolving
                inconsistencies or ambiguities in, the language of the Plan), to
                determine
                the rights and status under the Plan of Participants or other persons,
                to
                resolve questions or disputes arising under the Plan, to
                request any information from the Employer it deems necessary to determine
                whether the Employer would be considered insolvent or subject to
                a
                proceeding in bankruptcy, to make
                any determinations with respect to the SERP Benefits payable under
                the
                Plan and the persons entitled thereto, and to take
                all other actions that it deems necessary or proper to fulfill its
                duties
                as Administrator.
                The Administrator's determinations hereunder shall be final and binding
                on
                all persons, subject only to the claims procedures outlined in Article
                7
                hereof.

            

    

     

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (b)

            	
              Consultants.
                The Administrator is expressly empowered to employ actuaries, accountants,
                counsel, and other persons that it deems necessary in connection
                with the
                administration of the Plan.

            

    

    

    
      	 	
              (c)

            	
              Liability
                of Administrator.
                The Administrator shall not be liable for any actions by it hereunder
                unless due to its own gross negligence or willful misconduct, and
                it shall
                be indemnified and saved harmless by the Employer from and against
                all
                personal liability to which it may be subject by reason of any act
                done or
                omitted to be done in its official capacity as Administrator in good
                faith
                in the administration of the Plan, including all expenses reasonably
                incurred in its defense in the event the Employer fails to provide
                such
                defense upon the request of the Administrator. Except as provided
                in the
                foregoing sentence and except in connection with any breach of duty
                to the
                Participants or Beneficiaries, the Administrator shall be relieved
                of all
                responsibility in connection with its duties hereunder to the fullest
                extent permitted by law.

            

    

    

    
      	
              6.2
                

            	
              Regulations.
                The Administrator may promulgate any rules and regulations it deems
                necessary in order to carry out the purposes of the Plan or to interpret
                the provisions of the Plan; provided, however, that no rule, regulation
                or
                interpretation shall be contrary to the provisions of the Plan. The
                rules,
                regulations and interpretations made by the Administrator shall,
                subject
                only to the claims procedure outlined in Article 7 hereof, be final
                and
                binding on all persons.

            

    

    

    
      	
              6.3
                

            	
              Revocability
                of Administrator/Employer Action.
                Any action taken by the Administrator with respect to the rights
                or
                benefits under the Plan of any employee or former employee shall
                be
                revocable by the Administrator or the Employer as to payments not
                yet made
                to such person. Acceptance of any benefits under the Plan constitutes
                acceptance of, and agreement to, the Administrator's or the Employer’s
                making any appropriate adjustments in future payments to such person
                of
                (or to recover from such person) any excess payment or underpayment
                previously made to such person. 

            

    

    

    
      	
              6.4
                

            	
              Amendment.
                Except
                as prohibited by applicable law, the Employer, in its sole discretion,
                may
                modify or amend this Plan and any Participation Agreement; provided,
                however, that no modification or amendment shall reduce any vested
                SERP
                Benefit to which a Participant has already become entitled at the
                time of
                the modification or amendment, including, without limitation, SERP
                Benefits to which a Participant became entitled due to a Change of
                Control, unless each affected Participant consents in writing to
                such
                modification or amendment. Any
                such modification or amendment shall be expressed in the form of
                a written
                instrument executed by an officer of the Employer pursuant to a resolution
                adopted by the Board and
                shall be delivered to each
                Participant.

            

    

    

    
      	
              6.5

            	
              Termination.
                

            

    

    

    
      	 	
              (a)

            	
              General
                Right to Terminate.
                The Employer, in its sole discretion, may terminate this Plan at
                any time
                and for any reason whatsoever, except that no termination may reduce
                the
                amount of a Participant’s vested benefit as of the date of such
                termination, including benefits to which the Participant became entitled
                due to a Change of Control, without the prior written consent of
                the
                Participant. Any such termination shall be expressed in the form
                of a
                written instrument executed by an officer of the Employer pursuant
                to a
                resolution adopted by the Board. Such termination shall become effective
                as of the date specified in such instrument or, if no such date is
                specified, on the date of its execution. Written notice of any termination
                shall be given to the Participants as soon as practicable after the
                instrument is executed.

            

    

    

    
      	 	
              (b)

            	
              Acceleration
                of SERP Benefits Upon Termination.
                Upon a termination of this Plan, the Employer may accelerate the
                distribution of any SERP Benefits accrued through the date of the
                termination provided that each of the following conditions is
                satisfied:

            

    

     

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (i)

            	
              The
                Employer also terminates all other non-account balance non-qualified
                deferred compensation plans of the
                Employer.

            

    

    

    
      	 	
              (ii)
                

            	
              For
                12 months after the date of termination, any annuity payments that
                would
                otherwise continue or commence to be paid under the Plan (if it had
                not
                terminated) will be paid. Between the first and second anniversary
                of the
                date of termination, and in accordance with the direction of the
                Administrator, the Employer will pay in a lump sum (A) the actuarial
                equivalent value of the remaining annuity payments and (B) for all
                other
                Participants, the actuarial equivalent of the Participant’s vested SERP
                Benefit.

            

    

    

    
      	 	
              (iii)

            	
              For
                a period of five (5) years following the termination of the Plan,
                the
                Employer may not adopt another non-account balance non-qualified
                deferred
                compensation plan that covers any Participant
                hereunder.

            

    

    

    
      	
              6.6

            	
              Withholding.
                The
                Employer shall have the right to deduct from any distributions hereunder
                any taxes or other amounts required by law to be withheld
                therefrom.
                

            

    

    

    
      	
              6.7

            	
              Distributions
                in the Event of Taxation.
                

            

    

    

    
      	 	
              (a)

            	
              Section
                409A.
                If any portion of a Participant’s SERP Benefit becomes taxable to the
                Participant prior to the time it would otherwise be payable due to
                failure
                of the Plan to satisfy Section 409A of the Code, then a Participant
                may
                apply to the Administrator for a distribution of that portion of
                his or
                her SERP Benefit that has become taxable. Within 90 days after the
                Administrator determines that a portion of the Participant’s SERP Benefit
                has become taxable, the Employer will make a lump sum distribution
                to the
                Participant in an amount equal to the taxable portion of his or her
                SERP
                Benefit (which amount will not exceed the Participant’s unpaid vested SERP
                Benefit).

            

    

    

    
      	 	
              (b)

            	
              FICA
                Tax.
                If any portion of a Participant’s SERP Benefit becomes subject to FICA tax
                before it is paid to the Participant, then notwithstanding the timing
                and
                method of distribution of such SERP Benefit otherwise in effect for
                the
                Participant, the Administrator may direct that future SERP Benefit
                payments be accelerated so as to pay the Participant’s share of applicable
                FICA tax. Payments may also be accelerated so as to pay any income
                tax
                withholding obligation that arises due to acceleration for FICA
                purposes.

            

    

    

    
      	 	
              (c)

            	
              Reduction
                of SERP Benefit.
                Any distributions or payments under paragraphs
                (a)
                or
                (b)
                of
                this Section
                6.7
                will reduce the remaining SERP Benefit to be paid under this
                Plan.

            

    

    

    ARTICLE
      VII

    CLAIMS
      ADMINISTRATION

    

    
      	
              7.1

            	
              General.
                If
                a Participant, Beneficiary, or Participant's representative is denied
                all
                or a portion of an expected Plan benefit for any reason and the
                Participant, Beneficiary, or Participant's representative desires
                to
                dispute the decision of the Administrator, he must file a written
                notification of his or her claim with the
                Administrator.

            

    

    

    
      	
              7.2

            	
              Claim
                Review.
                Upon receipt of any written claim for benefits, the Administrator
                shall be
                notified and shall give due consideration to the claim presented.
                If the
                claim is denied to any extent by the Administrator, the Administrator
                shall furnish the claimant with a written notice within 90 days after
                receipt of the claim (which period may be extended for 90 days for
                special
                circumstances) setting forth: 

            

    

    

    
      	 	
              (a)

            	
              the
                specific reason or reasons for denial of the
                claim;

            

    

    

    
      	 	
              (b)

            	
              a
                specific reference to the Plan provisions on which the denial is
                based;

            

    

    

    
      	 	
              (c)

            	
              a
                description of any additional material or information necessary for
                the
                claimant to perfect the claim and an explanation of why such material
                or
                information is necessary;

            

    

    
      	 	 	 

    

    
    

     

    
      
        
        

      

      
        -5-

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (d)

            	
              an
                explanation of the steps to be taken if the Participant or Beneficiary
                wishes to submit his or her claim for review;
                and

            

    

    

    
      	 	
              (e)

            	
              a
                statement of the claimant’s right to bring a civil action under Section
                502(a) of ERISA following denial of an
                appeal.

            

    

    

    
      	 	
              If
                an extension of time is required, the Administrator shall furnish
                the
                claimant with a written notice of the extension, indicating the special
                circumstances requiring the extension and the date by which the
                Administrator expects to render a decision, before the end of the
                original
                90-day period.

            

    

    

    
      	
              7.3

            	
              Right
                of Appeal.
                A
                claimant who has a claim denied under Section
                7.2
                hereof may appeal to the Administrator for reconsideration of that
                claim.
                A request for reconsideration under this Section
                must be filed by written notice within sixty (60) days after receipt
                by
                the claimant of the notice of denial. A claimant or his or her duly
                authorized representative may (i) request a review upon written
                application to the Plan, (ii) upon request and free of charge, review
                pertinent documents, and (iii) submit issues and comments in
                writing.

            

    

    

    
      	
              7.4

            	
              Review
                of Appeal.
                Upon receipt of an appeal, the Administrator shall promptly take
                action to
                give due consideration to the appeal. Such consideration may include
                a
                hearing of the parties involved, if the Administrator believes such
                a
                hearing is necessary. After consideration of the merits of the appeal
                the
                Administrator shall issue a written decision, which shall be binding
                on
                all parties subject to Section
                7.6
                hereof. The decision shall take into account all comments, documents,
                records and other information submitted by the claimant, without
                regard to
                whether such information was submitted or considered in the initial
                claim
                determination. The decision shall be written in a manner calculated
                to be
                understood by the claimant and shall include the items described
                in
                paragraphs
                (a), (b) and
                (e)
                of
                Section
                7.2 hereof
                and a statement that the claimant is entitled to receive, upon request
                and
                free of charge, reasonable access to, and copies of, all documents,
                records and other information relevant to the claim. The Administrator’s
                decision shall be issued within sixty (60) days after the appeal
                is filed,
                which period may be extended for 60 days for special circumstances,
                such
                as the need to hold a hearing. If an extension of time is required,
                the
                Administrator shall furnish the claimaint with a written notice of
                the
                extension, indicating the special circumstances requiring the extension
                and the date by which the Administrator expects to render a decision,
                before the end of the original 60-day
                period.

            

    

    

    
      	
              7.5

            	
              Designation.
                The Administrator may designate any other person of its choosing
                to make
                any determination otherwise required under this
                Article.

            

    

    

    ARTICLE
      VIII

    MISCELLANEOUS

    

    
      	
              8.1

            	
              No
                Liability of Employees.
                No
                liability shall attach to or be incurred by any employee of the Employer
                or Administrator individually under or by reason of the terms, conditions,
                and provisions contained in this Plan, or for the acts or decisions
                taken
                or made hereunder or in connection therewith; and, as a condition
                precedent to the establishment of this Plan or the receipt of benefits
                hereunder, or both, such liability, if any, is expressly waived and
                released by each Participant and by any and all persons claiming
                under or
                through any Participant or any other person. Such waiver and release
                shall
                be conclusively evidenced by any act or participation in or the acceptance
                of benefits or the making of any election under this
                Plan.

            

    

    

    
      	
              8.2

            	
              Expenses.
                Except as otherwise provided in this Plan, all
                expenses incurred in the administration of this Plan, whether incurred
                by
                the Employer or the Administrator, shall be paid by the
                Employer.

            

    

    

    
      	
              8.3

            	
              Compliance
                with Law.
                Notwithstanding any other provision of this Plan or any Participation
                Agreement to the contrary, the Employer may amend, modify or terminate
                this Plan and/or any Participation Agreement, without the consent
                of any
                Participant, as the Employer deems necessary or appropriate to ensure
                compliance with any law, rule, regulation or other regulatory
                pronouncement applicable to the Plan, including, without limitation,
                Section 409A of the Code and any related regulations or other guidance
                promulgated with respect to Section 409A of the
                Code.

            

    

    

    
      	
              8.4

            	
              Governing
                Law.
                To
                the extent not preempted by federal law, this Plan shall be governed
                by,
                construed and administered under, the laws of the State of Maryland,
                exclusive of the conflict of laws principles of that
                State.

            

    

     

    
      
        
        

      

      
        -6-

        
          

        

      

      
        
        

      

    

     

    
      	
              8.5

            	
              Severability.
                Should any provision of this Plan or any regulations adopted hereunder
                be
                deemed or held to be unlawful or invalid for any reason, such fact
                shall
                not adversely affect the other provisions or regulations unless such
                invalidity shall render impossible or impractical the functioning
                of the
                Plan and, in such case, the appropriate parties shall immediately
                adopt a
                new provision or regulation to take the place of the one held illegal
                or
                invalid.

            

    

    

    
      	
              8.6

            	
              Headings.
                The headings contained in this Plan are inserted only as a matter
                of
                convenience and for reference and in no way define, limit, enlarge,
                or
                describe the scope or intent of this Plan nor in any way shall they
                affect
                this Plan or the construction of any provision
                thereof.

            

    

    

    
      	
              8.7

            	
              Terms.
                Capitalized terms shall have meanings given herein. Singular nouns
                shall
                be read as plural and masculine pronouns shall be read as feminine,
                and
                vice versa, as appropriate.

            

    

    

    
      	
              8.8

            	
              Ownership
                of Assets; Prohibition Against Funding; Relationship with
                Employer.
                It
                is the express intention of the Employer that this Plan and all
                Participation Agreements shall be unfunded for tax purposes and for
                purposes of Title I of ERISA. Participants
                shall have no right, title or interest whatsoever in or to any assets
                or
                amounts which are used to pay benefits under the Plan. Each
                Participant and Beneficiary shall be required to look to the provisions
                of
                this Plan and to the Employer itself for enforcement of any and all
                benefits due under this Plan, and, to the extent any such person
                acquires
                a right to receive payment under this Plan, such right shall be no
                greater
                than the right of any unsecured general creditor of the Employer.
                Nothing
                contained in the Plan, and no action taken pursuant to its provisions,
                shall create or be construed to create a trust of any kind or a fiduciary
                relationship between the Employer and any Participant or any other
                person.
                Without limiting the foregoing, should
                any investment be acquired in connection with the liabilities assumed
                under this Plan or any Participation Agreement, the Participants
                and
                Beneficiaries shall not have any right with respect to, or claim
                against,
                such assets nor shall any such purchase be construed to create a
                trust of
                any kind or a fiduciary relationship between the Employer and the
                Participants, their Beneficiaries, or any other person. Any such
                assets
                shall be and remain a part of the general, unpledged, unrestricted
                assets
                of the Employer, subject to the claims of its general creditors.
                The
                Employer shall be designated the owner and beneficiary of any investment
                acquired in connection with its obligation under this
                Plan.

            

    

    

    
      	
              8.9

            	
              Deposits
                in Trust. 
                The Employer may, at its sole discretion, establish with a corporate
                trustee a grantor rabbi trust under which all or a portion of the
                assets
                of the Plan are to be held, administered and managed. The trust agreement
                evidencing the trust shall conform with the terms of Revenue Procedure
                92-64 and any applicable subsequent Internal Revenue Service guidance.
                The
                trust may be a springing trust. The Employer in its sole discretion
                may
                make deposits to augment the principal of such
                trust.

            

    

    

    
      	
              8.10

            	
              Entire
                Agreement.
                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.

            

    

    

    THIS
      FIRST UNITED BANK & TRUST AMENDED AND RESTATED SUPPLEMENTAL EXECUTIVE
      RETIREMENT PLAN is executed this 14th
      day of
      February, 2007.

     

    
      	 	 	 
	
              ATTEST:

            	
              FIRST
                UNITED BANK & TRUST

            
	 
 	 
 	 
 
	/s/	By:  	/s/ William
              B.
              Grant                                 
              (SEAL)
	
              

            	
              Name:
                William B. Grant

              Title:
                Chairman and Chief Executive Officer

            
	 	
            

    

     

    
      
        
        

      

      
        -7-Exhibit 10.5

      AMENDED
      AND RESTATED PARTICIPATION AGREEMENT
UNDER
      THE

    FIRST
      UNITED BANK & TRUST SUPPLEMENT EXECUTIVE RETIREMENT
      PLAN

    

    THIS
      AMENDED AND RESTATED PARTICIPATION AGREEMENT (this “Participation Agreement”) is
      entered into this 14th
      day of
      February, 2007 (the “Execution Date”) by and between First
      United Bank & Trust (“Employer”)
      and William B. Grant, an executive officer of the Employer (the
“Participant”).

    

    RECITALS:

    

    WHEREAS,
      the Employer adopted the First United Bank & Trust Supplemental Executive
      Retirement Plan effective as of November 1, 2001 (the “Original Plan”), and the
      Employer and the Participant entered into a Participation Agreement pursuant
      thereto on March 5, 2002, (the “Original Participation Agreement”);

    

    WHEREAS,
      the Employer amended and restated the Original Plan on February 14, 2007 to
      make
      certain clarifying and other changes, a copy of which is attached hereto as
      Exhibit
      A
      (as
      amended and restated, the “Plan”); and

    

    WHEREAS,
      the Employer and Participant desire to amend and restate the Original
      Participation Agreement so that it conforms with the terms and conditions of
      the
      Plan.

    

    NOW,
      THEREFORE, in consideration of the foregoing, the agreements and covenants
      set
      forth herein, and other valuable consideration, the receipt and sufficiency
      of
      which is hereby acknowledged, the parties agree to amend and restate the
      Original Participation Agreement, effective January 1, 2005, as follows:

    

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

    

    
      	 	
              (a)

            	
              “Cause”
                has the meaning given that term in Section
                8(a)
                hereof.

            

    

    

    
      	 	
              (b)

            	
              “Change
                of Control SERP Benefit” means the SERP Benefits payable pursuant to
                Section
                3(b)
                hereof.

            

    

    

    
      	 	
              (c)

            	
              “Competitive
                Employment” means the Participant engages, directly or indirectly, as an
                owner, partner, member, director, officer, employee or agent of any
                sole
                proprietorship or entity, in the business of providing goods or services
                that are substantially similar to those provided by the Employer
                in any
                county in which the Employer has a
                branch.

            

    

    

    
      	 	
              (d)

            	
              “Disability”
                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. 

            

    

    

    
      	 	
              (e)

            	
              “Disability
                SERP Benefit” means the SERP Benefits payable pursuant to Section
                3(c)
                hereof. 

            

    

    

    
      	 	
              (f)

            	
              “Employer”
                means First United Bank & Trust, a Maryland commercial bank, and any
                successor entity.

            

    

    

    
      	 	
              (g)

            	
              “Final
                Pay” means the sum of (i) the Participant’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 (ii) the greater
                of
                (A) the Participant’s targeted cash bonus for the year in which employment
                terminates or (B) the actual cash bonus earned by Participant for
                the year
                immediately prior to the year in which employment
                terminates.

            

    

    

    
      	 	
              (h)

            	
              “Guaranteed
                Payment Lifetime Annuity” means the distribution method described in
                Section
                3(a)(ii)(C)
                hereof.

            

    

    

    
      	 	
              (i)

            	
              “Key
                Employee” means, for the 12-month period beginning on a particular April
                1, a Participant described in Section 416(i) of the Code (applied
                in
                accordance with 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.

            

    

    
      
        
        

      

      
        
        

        
          

        

      

       

    

    

    
      	 	
              (j)

            	
              “Normal
                Retirement” means Participant’s Separation from Service with the Employer
                for any reason other than Cause after such Participant has both (i)
                completed ten (10) Years of Service and (ii) attained his Normal
                Retirement Age.

            

    

    

    
      	 	
              (k)

            	
              “Normal
                Retirement Age” means sixty (60) years of
                age.

            

    

    

    
      	 	
              (l)

            	
              “Normal
                Retirement SERP Benefit” means the SERP Benefit spayable pursuant to
                Section
                3(a)(i)
                hereof.

            

    

    

    
      	 	
              (m)

            	
              “Post-Retirement
                Survivor Benefit” means the SERP Benefits payable pursuant to Section
                3(f)
                hereof.

            

    

    

    
      	 	
              (n)

            	
              “Pre-Retirement
                Death Benefit” means the SERP Benefits payable pursuant to Section
                3(e)
                hereof.

            

    

    

    
      	 	
              (o)

            	
              “Pre-Retirement
                Termination SERP Benefit” means the SERP Benefits payable pursuant to
                Section
                3(d)
                hereof.

            

    

    

    
      	 	
              (p)

            	
              “Separation
                from Service” means a termination of the Participant’s employment with the
                Employer in accordance with Section 409A(a)(2)(A)(i) of the Code
                and any
                related regulations or other guidance promulgated with respect to
                Section
                409A of the Code (and any successor section or
                regulations).

            

    

    

    
      	 	
              (q)

            	
              “Total
                Pay” for any given year means the Participant’s salary and targeted cash
                bonus for such year.

            

    

    

    
      	 	
              (r)

            	
              “Triggering
                Event” means the occurrence of any one of the following events subsequent
                to a Change of Control:

            

    

    

    
      	 	
              (i)

            	
              Participant's
                receipt of a letter of intent to dismiss without Cause, as defined
                in the
                Plan; or

            

    

    

    
      	 	
              (ii)
                

            	
              termination
                of the Plan; or

            

    

    

    
      	 	
              (iii)
                

            	
              relocation
                of Participant's employment to a location more than 50 miles from
                the
                Participant’s place of employment at the time of the Change of Control;
                or

            

    

    

    
      	 	
              (iv)

            	
              a
                10% or greater reduction
                in Participant’s Total Pay for the year in which the Triggering Event
                occurs from the prior year’s Total Pay, but disregarding any reduction in
                bonus or incentive compensation payments which occurs in accordance
                with
                the terms of any written bonus or incentive compensation program
                as it
                reads before the occurrence of a Change of Control;
                or

            

    

    

    
      	 	
              (v)

            	
              a
                change to Participant’s position that results in Participant not being
                deemed an executive officer of
                Employer.

            

    

    

    
      	 	
              (s)

            	
              “Pre-Retirement
                Termination” has the meaning given that term in Section
                3(d)
                hereof.

            

    

    

    
      	 	
              (t)

            	
              “Pre-Retirement
                Termination SERP Benefit” has the meaning given that term in Section
                3(d)
                hereof.

            

    

    

    
      	 	
              (u)

            	
              “Year
                of Service” means each twelve (12) consecutive month period of full time
                employment with the Employer. No credit will be received for a partial
                Year of Service. 

            

    

    

    2. Effective
      Date of Participation.
      The
      effective date of the Participant’s participation in the Plan shall be November
      1, 2001. 

    
      
        
        

      

      
        2

        
          

        

      

       

    

    3. SERP
      Benefits.
      

    

    
      	 	
              (a)

            	
              Normal
                Retirement SERP Benefit.
                

            

    

    

    
      	 	
              (i)

            	
              Subject
                to Section
                3(g) hereof,
                upon Normal Retirement, the Participant shall be entitled to a normal
                retirement SERP benefit, expressed as a monthly lifetime annuity
                under
                Section
                4(a)(ii)
                hereof,
                equal to one-twelfth (1/12) of the sum of (A) two and one-half percent
                (2.5%) of Final Pay for each completed Year of Service, up to a maximum
                of
                twenty-four (24) Years of Service (or sixty percent (60%) of Final
                Pay),
                and (B) one percent (1%) of Final Pay for each Year of Service beyond
                twenty-four (24) Years of Service that is completed after the Participant
                attains Normal Retirement Age, up to a maximum of five (5) Years
                of
                Service (or five percent (5%) of Final Pay) (collectively, the “Normal
                Retirement SERP Benefit”). To avoid any doubt with respect to the
                foregoing sentence, the sum of items (A) and (B) above shall not
                exceed
                sixty-five percent (65%) of the Participant’s Final
                Pay.

            

    

    

    
      	 	
              (ii)

            	
              Notwithstanding
                anything to the contrary contained in subparagraph
                (i)
                of
                this paragraph
                (a),
                for purposes of calculating the Participant’s Normal Retirement SERP
                Benefit, the Participant shall be deemed to have twenty-four (24)
                Years of
                Service as of the Execution Date; provided,
                however, that,
                if the Participant voluntarily terminates his employment with the
                Employer
                for any reason other than because of (A) the relocation by the Employer
                of
                his employment to a location more than 50 miles from the Participant’s
                place of employment immediately prior to the relocation, (B) a 10%
                or
                greater reduction
                by the Employer in the Participant’s Total Pay for any year from the prior
                year’s Total Pay, but disregarding any reduction in bonus or incentive
                compensation payments which occurs in accordance with the terms of
                any
                written bonus or incentive compensation program, or (C) a
                change by the Employer to the Participant’s position that results in the
                Participant not being deemed an executive officer of the Employer,
                then
                this subparagraph
                (ii)
                shall be of no force or effect and the Participant’s Normal Retirement
                SERP Benefit shall be calculated based on actual Years of Service.
                

            

    

    

    
      	 	
              (iii)

            	
              The
                Normal Retirement SERP Benefit shall be distributed in accordance
                with the
                election made by the Participant pursuant to Section
                4
                hereof and shall be made or begin not later than the 15th
                day of the third (3rd)
                calendar month following Normal
                Retirement.

            

    

    

    
      	 	
              (b)

            	
              Change
                of Control SERP Benefit. 

            

    

    

    
      	 	
              (i)

            	
              Subject
                to Section
                3(g) hereof,
                in the event the Participant has a Separation from service following
                a
                Change of Control and a subsequent Triggering Event, the Participant
                shall
                be entitled to a change of control SERP benefit, expressed as a monthly
                lifetime annuity under Section
                4(a)(ii) hereof,
                equal to one-twelfth (1/12) of the greater of (A) 60% of Final Pay
                or (B)
                his Normal Retirement SERP Benefit earned under Section 3(a) hereof
                as of
                the date of the Separation of Service (the “Change of Control SERP
                Benefit”). All rights and liabilities associated with the Participant's
                SERP Benefit shall not be adversely affected, limited or reduced
                in any
                way due to a Change of Control and Triggering
                Event.

            

    

    

    
      	 	
              (ii)

            	
              The
                Change of Control SERP Benefit shall be distributed in accordance
                with the
                election made by the Participant pursuant to Section
                4
                hereof and shall be made or begin not later than the 15th
                day of the third (3rd)
                calendar month following the later of (A) the Participant’s Separation
                from Service or (B) the date the Participant attains Normal Retirement
                Age.

            

    

    

    
      	 	
              (c)

            	
              Disability
                SERP Benefit.
                

            

    

    

    
      	(i)  	
              Subject
                to Section
                3(g)
                hereof, if the Participant has a Separation from Service due to the
                Participant's Disability, then the Participant will be entitled to
                receive
                a lump sum equal to the actuarial equivalent of his Normal Retirement
                SERP
                Benefit earned under Section
                3(a)
                hereof as of the date of the Separation from Service, less all payments
                received under any disability insurance benefit provided by the Employer
                regardless of whether the Participant is taxed on premium payments
                made by
                the Employer with respect to such insurance policy (“Disability SERP
                Benefit”). 

            

    

    
      
        
        

      

      
        3

        
          

        

      

       

    

    

    
      	(ii)  	
              The
                Disability SERP Benefit shall be paid not later than the 15th
                day of the third (3rd)
                calendar month following the Participant’s Separation from
                Service.

            

    

    

    
      	 	
              (d)

            	
              Pre-Retirement
                Termination SERP Benefit.
                

            

    

    

    
      	 	
              (i)

            	
              Subject
                to Section
                3(g)
                hereof, in the event the Participant has a Separation from Service
                for any
                reason other than due to Normal Retirement, after a Change of Control
                and
                subsequent Triggering Event, or due to death, Disability, or Cause
                (a
                “Pre-Retirement Termination”), and provided the Participant is vested
                pursuant to Section
                5(d)
                hereof, the Participant shall be entitled to receive his Normal Retirement
                SERP Benefit earned under Section
                3(a)
                hereof as of the date of the Separation from Service (the “Pre-Retirement
                Termination SERP Benefit”). 

            

    

    

    
      	 	
              (ii)

            	
              The
                Pre-Retirement Termination SERP Benefit shall be distributed in accordance
                with the election made by the Participant pursuant to Section
                4
                hereof and shall be made or begin not later than the 15th
                day of the third (3rd)
                calendar month following the Participant’s attainment of Normal Retirement
                Age.

            

    

    

    
      	(e)  	
              Pre-Retirement
                Death Benefit.
                

            

    

    

    
      	 	
              (i)

            	
              Subject
                to Section
                3(g)
                hereof, if the Participant dies before the commencement of distribution
                of
                his Normal Retirement SERP Benefit, Change of Control SERP Benefit,
                or
                Pre-Retirement Termination SERP Benefit (as the case may be), then
                the
                Participant’s Beneficiary will be entitled to receive a lump sum equal to
                the actuarial equivalent of the Participant’s SERP Benefit earned as of
                the date of death, less any
                death benefits payable to the beneficiary(ies) designated by the
                Participant for purposes of any Employer owned life insurance covering
                the
                life of the Participant (but disregarding any group term life insurance)
                (the “Pre-Retirement Death Benefit”).
                

            

    

    

    
      	 	
              (ii)

            	
              The
                Pre-Retirement Death Benefit shall be
                paid not later than the 15th
                day of the third (3rd)
                calendar month following the Participant’s
                death.

            

    

    

    
      	 	
              (f)

            	
              Post-Retirement
                Survivor Benefit.
                If the Participant dies after the commencement of distribution of
                his
                Normal Retirement SERP Benefit, Change of Control SERP Benefit, or
                Pre-Retirement Termination SERP Benefit (as the case may be), then
                distribution of such benefits shall continue after the Participant's
                death
                only if the Participant elected one of the following forms of distribution
                methods, as provided in Section
                4
                hereof (“Post-Retirement Survivor
                Benefit”):

            

    

    

    
      	 	
              (i)

            	
              50%
                joint and survivor annuity; or

            

    

    

    
      	 	
              (ii)

            	
              75%
                joint and survivor annuity; or

            

    

    

    
      	 	
              (iii)

            	
              100%
                joint and survivor annuity; or

            

    

    

    
      	 	
              (iv)

            	
              Guaranteed
                Payment Lifetime Annuity, but only until the guaranteed 120 months
                of
                payments have been made.

            

    

    

    
      	 	
              (g)

            	
              Offset
                of SERP Benefits.
                The SERP Benefits paid hereunder shall be offset, dollar-for-dollar,
                by an
                amount equal to fifty-percent (50%) of the Participant's Social Security
                benefits received (or deemed to have been received) by the Participant
                and
                one hundred-percent (100%) of the First United Bank & Trust Pension
                Plan benefits received by the Participant. For purposes of this Plan
                and
                offset calculation (including the calculation of a lump sum payment
                under Section
                4(a)(i)
                hereof paid before the earliest time allowed by law for receipt of
                Social Security benefits), Participant shall be deemed to have begun
                receiving Social Security benefits at the earliest time allowed by
                law. In
                no event shall military service certified to Participant as credited
                service under the First United Bank & Trust Pension Plan cause an
                increase to any offset amount under this Participation Agreement
                and
                Plan.

            

    

    
      
        
        

      

      
        4

        
          

        

      

       

    

    

    
      	 	
              (h)

            	
              Restriction
                on Timing of Distribution for Key Employees.
                Notwithstanding any provision of this Participation Agreement to
                the
                contrary, if the Participant is a Key Employee and any class of securities
                of the Employer (or of any person with whom the Employer would be
                considered a single employer under Section 414(b) and (c) of the
                Code) is
                publicly traded as of the date of the Participant’s Separation from
                Service, no distribution may be made to the Participant on account
                of such
                Separation from Service before the date that is six (6) months after
                the
                date of Separation from Service (or, if earlier, the date of the
                Key
                Employee’s death). Any lump sum payment delayed pursuant to this paragraph
                will be paid, and any annuity payments delayed pursuant to this paragraph
                will be accumulated and paid, during the seventh month following
                the month
                in which the Separation from Service
                occurs.

            

    

    

    
      	 	
              (i)

            	
              Exclusivity
                of SERP Benefits.
                This Section
                3
                is
                not intended to, and does not, confer on the Participant the right
                to
                receive more than one of the SERP Benefits described in paragraphs
                (a) through
                (e)
                of
                this Section
                3.

            

    

    

    4. Method
      of Distribution of SERP Benefits.
      

    

    
      	 	
              (a)

            	
              Initial
                Election.
                Concurrently
                with the execution of this Participation Agreement (or at such later
                time
                as is permitted under Section 409A of the Code and applicable Internal
                Revenue Service guidance adopted thereunder), the Participant shall
                elect
                any one of the following distribution methods, which, subject to
                paragraph
                (b) of
                this Section
                4,
                shall be irrevocable:

            

    

    

    
      	 	
              (i)

            	
              lump
                sum payment; or 

            

    

    

    
      	 	
              (ii)

            	
              lifetime
                annuity; or

            

    

    

    
      	 	
              (iii)

            	
              lifetime
                annuity with 120 months of guaranteed payments;
                or

            

    

    

    
      	 	
              (iv)

            	
              50%
                joint and survivor annuity; or

            

    

    

    
      	 	
              (v)

            	
              75%
                joint and survivor annuity; or

            

    

    

    
      	 	
              (vi)

            	
              100%
                joint and survivor annuity.

            

    

    

    
      	 	 	
              In
                the event the Participant fails to elect any of the above forms of
                distribution methods as required herein, the Participant shall be
                deemed
                to have chosen the lifetime annuity described in Section
                4(a)(ii).
                Except for a lump sum distribution, all distributions shall be made
                on a
                monthly basis. 

            

    

    

    
      	 	 	
              If
                the Participant elects a lump sum payment method of distribution,
                the
                Participant acknowledges and accepts that the lump sum payment actually
                received shall be the actuarial equivalent of the lifetime annuity
                described in Section
                4(a)(ii).
                If the Participant elects any joint and survivor annuity method of
                distribution or a Guaranteed Payment Lifetime Annuity method of
                distribution, the Participant acknowledges and accepts the reduction
                of
                his monthly distribution to actuarially accommodate such distribution
                election. 

            

    

    

    
      	 	 	
              If
                the Participant elects a distribution method other than a lifetime
                annuity
                described in Section
                4(a)(ii),
                the actuarial equivalent will be determined using the same actuarial
                equivalent assumptions contained in the First
                United Bank & Trust Pension Plan (or any successor or replacement
                plan) in effect as of the date that distributions of SERP Benefits
                commence hereunder.

            

    

    
      
        
        

      

      
        5

        
          

        

      

       

    

    

    
      	 	
              (b)

            	
              Changes
                to Distribution Method.
                The Participant may make one or more subsequent elections with respect
                to
                the manner in which his SERP Benefit is to be distributed pursuant
                to a
                written election in such form as is acceptable to the Administrator.
                A
                subsequent election may be made at any time prior to the commencement
                of
                SERP Benefits; provided, however, that a subsequent election changing
                the
                form of distribution to or from a lump sum payment must (i) be made
                at
                least 12 months prior to the date originally scheduled for distribution
                of
                the SERP Benefit; (ii) provide for an effective date at least 12
                months
                following the subsequent election, and (iii) postpone the commencement
                of
                distribution for a period of not less than five (5) years from the
                previous distribution date.

            

    

    

    5. Vesting.
      Subject
      to Section
      8
      hereof,
      a Participant shall become 100% vested in his SERP Benefit upon the following
      events:

    

    
      	 	
              (a)

            	
              upon
                the Participant’s Normal
                Retirement;

            

    

    

    
      	 	
              (b)

            	
              upon
                the Participant’s Separation from Service following a Change of Control
                and subsequent Triggering
                Event;

            

    

    

    
      	 	
              (c)

            	
              upon
                a Separation from Service due to a Disability;

            

    

    

    
      	 	
              (d)

            	
              upon
                completion of ten (10) Years of Service; or

            

    

    

    
      	 	
              (e)

            	
              upon
                the Participant’s death. 

            

    

    

    There
      shall be no partial vesting of SERP Benefits.

    

    6. Taxes;
      Withholding.
      The
      Participant shall be responsible for the payment of all applicable local, state
      and federal taxes associated with the Participant’s participation in the Plan
      and the receipt of SERP Benefits hereunder, and the Employer shall have the
      right to deduct from any distributions hereunder any such taxes or other amounts
      required by law to be withheld therefrom.

    

    7. Beneficiaries.
      

    

    
      	 	
              (a)

            	
              Pre-Retirement
                Death Benefit.
                The
                Participant may designate a Beneficiary for the Pre-Retirement Death
                Benefit in accordance with rules established by the Administrator.
                A
                Participant may change any prior Beneficiary designation, without
                notice
                to or consent of any previously designated Beneficiary, in accordance
                with
                rules established by the Administrator. In the absence of a Beneficiary
                designation or if the Beneficiary predeceases the Participant, the
                Beneficiary will be the death beneficiary designated by the Participant
                for purposes of the life insurance policy owned by the Employer on
                the
                life of the Participant or, if no such beneficiary is named or no
                life
                insurance policy exists, the Participant’s estate. If more than one person
                is the Beneficiary, each Beneficiary will receive equal divisible
                amounts
                of any death benefit payable, unless otherwise indicated on the applicable
                form.

            

    

    

    
      	 	
              (b)

            	
              Post-Retirement
                Survivor Benefit.
                If the Participant elects a joint and survivor annuity or a Guaranteed
                Payment Lifetime Annuity, he or she shall designate, in accordance
                with
                rules established by the Administrator, a Beneficiary to receive
                the
                Post-Retirement Survivor Benefit, if any, upon his
                death.

            

    

    

    
      	 	
              (c)

            	
              Lost
                Beneficiary.

            

    

    

    
      	(i)  	
              The
                Participant and his Beneficiaries shall have the obligation to keep
                the
                Administrator informed of their current address until such time as
                all
                benefits due have been paid.

            

    

    
      
        
        

      

      
        6

        
          

        

      

       

    

    

    
      	(ii)  	
              If
                a Participant or Beneficiary cannot be located by the Administrator
                exercising diligence, then, in its sole discretion, the Administrator
                may
                presume that the Participant or Beneficiary is deceased for purposes
                of
                the Participation Agreement and all unpaid amounts (net of due diligence
                expenses) owed to the Participant or Beneficiary shall be paid
                accordingly, or, if a Beneficiary cannot be so located, then such
                amounts
                may be forfeited. Any such presumption of death shall be final,
                conclusive, and binding on all
                parties.

            

    

    

    8. Forfeiture
      of SERP Benefits. 

    

    
      	 	
              (a)

            	
              No
                Benefits Payable Upon Termination for Cause.
                Notwithstanding anything contained herein to the contrary, no SERP
                Benefits shall be payable to the Participant if his employment with
                the
                Employer is terminated for Cause, regardless of whether the Participant
                would otherwise be vested in his SERP Benefit. For purposes hereof,
                a
                Participant whose employment is terminated for any of the following
                reasons shall be regarded as having been terminated for “Cause”:
                

            

    

    

    
      	 	
              (i)

            	
              willful
                or grossly negligent misconduct that is materially injurious to the
                Employer; 

            

    

    

    
      	 	
              (ii)

            	
              embezzlement
                or misappropriation of funds or property of the
                Employer;

            

    

    

    
      	 	
              (iii)

            	
              conviction
                of a felony or the entrance of a plea of guilty or nolo contendere
                to a
                felony;

            

    

    

    
      	 	
              (iv)

            	
              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; 

            

    

    

    
      	 	
              (v)

            	
              failure
                or refusal by the Participant to devote full business time and attention
                to the performance of his duties and responsibilities if such breach
                has
                not been cured within fifteen (15) days after notice is given to
                the
                Participant; or 

            

    

    

    
      	 	
              (vi)
                

            	
              issuance
                of a final non-appealable order or other direction by a Federal or
                state
                regulatory agency prohibiting the Participant’s employment in the business
                of banking.

            

    

    

    
      	 	
              (b)

            	
              Competitive
                Employment.
                Notwithstanding
                anything contained herein to the contrary, and regardless of whether
                the
                Participant would otherwise be vested in his SERP Benefit, the
                Employer’s obligation to make payments to the Participant or a Beneficiary
                under this Participation Agreement will be conditioned upon (i) the
                Participant refraining from Competitive Employment for a period of
                three
                (3) years following his Separation from Service with the Employer,
                (ii)
                the Participant refraining from injurious disclosure of confidential
                information concerning the Employer, and (iii) the Participant remaining
                available, at the Employer’s reasonable request, to provide at least six
                (6) hours’ of transition services per month for twelve (12) months
                following his Separation from Service (except in the case of a Separation
                from Service due to death or Disability); provided, however, that
                only
                condition (ii) of this paragraph
                shall
                apply if the Participant has a Separation from Service following
                a Change
                of Control and subsequent Triggering Event. If the Participant violates
                any of the foregoing conditions, then the Participant will forfeit
                all
                then-unpaid amounts under this Participation Agreement and be obligated
                to
                reimburse the Employer for all amounts paid hereunder, plus interest
                thereon at the rate of 10% per year. If the Employer engages an attorney
                that is not its employee to collect any amounts owed by the Participant
                pursuant to this paragraph,
                then the Participant will be obligated to reimburse the Employer
                for any
                associated attorney’s fees and other costs of
                collection.

            

    

    

    
      	
              9.

            	
              General
                Provisions

            

    

    

    
      	 	
              (a)

            	
              No
                Assignment.
                SERP Benefits under this Participation Agreement shall not be subject
                in
                any manner to anticipation, alienation, sale, transfer, assignment,
                pledge, encumbrance, or charge, and any such action shall be void
                for all
                purposes of the Participation Agreement. SERP Benefits shall not
                in any
                manner be subject to the debts, contracts, liabilities, engagements,
                or
                torts of any person, nor shall they be subject to attachments or
                other
                legal process for or against any person, except to such extent as
                may be
                required by law. This paragraph
                (a)
                does not prohibit the transfer or assignment to the Participant’s spouse,
                former spouse or child of the right to receive all or a portion of
                the
                benefits payable to the Participant under this Participation Agreement,
                if
                such transfer or assignment is made pursuant to a domestic relations
                order
                issued by a court that is legally binding on the Participant. Payment
                of
                SERP Benefits pursuant to such an order may not be made before the
                earlier
                of (i) when SERP Benefits are actually paid to the Participant or
                (ii) a
                date specified in the order that is not before the earliest date
                that SERP
                Benefits could actually begin being paid to the Participant if he
                or she
                terminated employment. Any provision of an order for payment of SERP
                Benefits upon the election of the spouse, former spouse or child
                cannot be
                given effect. Any payment of SERP Benefits pursuant to a domestic
                order
                will be subject to tax withholding as provided by law. If a domestic
                relations order is served on the Employer, it will be processed in
                accordance with the Employer’s rules for processing qualified domestic
                relations orders established pursuant to Section 414(p) of the Code.
                

            

    

    
      
        
        

      

      
        7

        
          

        

      

       

    

    

    
      	 	
              (b)

            	
              No
                Employment Rights.
                Participation in the Plan, and the execution of this Participation
                Agreement, shall not be construed to confer upon the Participant
                the legal
                right to be retained in the employ of the Employer, or give the
                Participant or any Beneficiary, or any other person, any right to
                any
                payment whatsoever, except to the extent of the benefits provided
                for
                hereunder. The Participant shall remain subject to discharge to the
                same
                extent as if this Plan had never been
                adopted.

            

    

    

    
      	 	
              (c)

            	
              Incompetence.
                If the Administrator determines that any person to whom a benefit
                is
                payable under this Participation Agreement is incompetent by reason
                of
                physical or mental disability, the Administrator shall have the power
                to
                cause the payments becoming due to such person to be made to another
                individual for the Participant’s benefit without responsibility of the
                Administrator or the Employer to see to the application of such payments.
                Any payment made pursuant to such power shall, as to such payment,
                operate
                as a complete discharge of the Employer, the Administrator, and their
                representatives.

            

    

    

    (d) Identity.
      If, at
      any time, any doubt exists as to the identity of any person entitled to any
      payment hereunder or the amount or time of such payment, the Administrator
      shall
      be entitled to hold such sum until such identity or amount or time is determined
      or until an order of a court of competent jurisdiction is obtained. The
      Administrator shall also be entitled to pay  such
      sum
      into court in accordance with the appropriate rules of law. Any expenses
      incurred by the Employer or Administrator incident to such proceeding or
      litigation shall be charged against the SERP Benefits of the Participant.

    

    
      	 	
              (e)

            	
              Amendment
                and Termination.
                Except as prohibited by applicable law, the Employer may unilaterally
                modify, amend or terminate this Participation Agreement; provided,
                however, that no modification, amendment or termination shall reduce
                any
                vested SERP Benefit to which the Participant has already become entitled
                at the time of the modification, amendment or termination, including,
                without limitation, SERP Benefits to which a Participant became entitled
                due to a Change of Control, unless the Participant consents in writing
                to
                such modification, amendment or termination. Any modification,
                amendment or termination shall be evidenced by a written instrument
                executed by the Employer and delivered to the Participant.
                

            

    

    

    
      	 	
              (f)

            	
              Compliance
                with Law.
                Notwithstanding any other provision of this Participation Agreement
                to the
                contrary, the Employer may amend, modify or terminate this Participation
                Agreement, without the consent of the Participant, as the Employer
                deems
                necessary or appropriate to ensure compliance with any law, rule,
                regulation or other regulatory pronouncement applicable to the Plan,
                including, without limitation, Section 409A of the Code and any related
                regulations or other guidance promulgated with respect to Section
                409A of
                the Code.

            

    

    
      
        
        

      

      
        8

        
          

        

      

       

    

    

    
      	 	
              (f)

            	
              Governing
                Law.
                To the extent not preempted by federal law, this Participation Agreement
                shall be governed by, construed and administered under, the laws
                of the
                State of Maryland, exclusive of the conflict of laws principles of
                that
                State.

            

    

    

    
      	 	
              (g)

            	
              Severability.
                Should any provision of this Participation Agreement be deemed or
                held to
                be unlawful or invalid for any reason, such fact shall not adversely
                affect the other provisions hereof unless such invalidity shall render
                impossible or impractical the functioning of this Participation Agreement
                and, in such case, the Employer shall immediately adopt a new provision
                to
                take the place of the one held illegal or
                invalid.

            

    

    

    
      	 	
              (h)

            	
              Headings.
                The headings contained in this Participation Agreement are inserted
                only
                as a matter of convenience and for reference and in no way define,
                limit,
                enlarge, or describe the scope or intent of this Plan nor in any
                way shall
                they affect this Participation Agreement or the construction of any
                provision thereof.

            

    

    

    
      	 	
              (i)

            	
              Terms.
                Singular nouns shall be read as plural and masculine pronouns shall
                be
                read as feminine, and vice versa, as
                appropriate.

            

    

    

    
      	 	
              (j)

            	
              Successors.
                This Participation Agreement shall be binding upon each of the parties
                and
                shall also be binding upon their respective successors or assigns.
                

            

    

    

    
      	 	
              (k)

            	
              Application
                of the Plan; Entire Agreement.
                The
                Participant acknowledges, by executing this Participation Agreement,
                that
                (i) this Participation 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, (ii)
                that a
                copy of the Plan and all amendments thereto through the date hereof
                were
                provided to the Participant on the date hereof, and (iii) he or she
                understands and accepts of all of the terms and conditions of the
                Plan.
                This
                Participation 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.

            

    

    

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

     

    
      	ATTEST:	 	     FIRST
              UNITED BANK
              AND TRUST:
	 	 	 	 
	 	 	 	 
	/s/ 	 	
               By:
                

            	/s/
              Robert W. Kurtz
	
              

            	 	 	
              
                

              

              Name: Robert
                W. Kurtz

              Title: President/Chief
                Risk Officer

            

       

      
        	WITNESS:	 	     PARTICIPANT
	 	 	 	 
	 	 	 	 
	/s/ 	 	
                 By:
                  

              	/s/
                William B.
                Grant
	
                

              	 	 	
                
                  

                

                Name: William
                  B. Grant

              

      

    

    
      
        
        

      

      
        9

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