Document:

Exhibit 10.1

                           FIRST UNITED BANK AND TRUST
                     SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

                                    RECITALS:

         WHEREAS,  The  Employer  hereby  establishes  the First United Bank and
Trust  Supplemental  Executive  Retirement  Plan  on the  terms  and  conditions
hereinafter set forth; and

         WHEREAS, The Plan is 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.

         NOW THEREFORE, the following shall constitute 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,  such  benefit  as  provided  on the  terms  and
         conditions contained in the Participant's Participation Agreement.

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

                                   ARTICLE II
                                   DEFINITIONS

2.1      Administrator.   Administrator   shall  mean  the  Corporate  Executive
         Committee as defined herein.

2.2      Beneficiary.  Beneficiary  means the person or persons  designated by a
         Participant  as  his  beneficiary  hereunder  in  accordance  with  the
         provisions of Article V and subject to the Participation Agreement.

2.3      Board. Board means the Board of Directors of the Employer.

2.3a     Cause. See Section 4.2.

2.4      Change of Control. Change of Control shall mean the happening of any of
         the following:

                (a)      any person or entity, including a "group" as defined in
                         Section  13(d)(3)  of the  Securities  Exchange  Act of
                         1934,   other  than  the  Employer  or  a  wholly-owned
                         subsidiary  thereof or any employee benefit plan of the
                         Employer  or any  Subsidiary,  becomes  the  beneficial
                         owner of the Employer's  securities  having 20% or more
                         of the combined  voting  power of the then  outstanding
                         securities  of the  Employer  that  may be cast for the
                         election of directors of the Employer  (other than as a
                         result of an issuance of  securities  initiated  by the
                         Employer in the ordinary course of business); or

                (b)      as the  result  of,  or in  connection  with,  any cash
                         tender or  exchange  offer,  merger  or other  business
                         combination,  sale of assets or contested election,  or
                         any combination of the foregoing transactions less than
                         a majority  of the  combined  voting  power of the then
                         outstanding securities of the Employer or any successor
                         corporation or entity entitled to vote generally in the
                         election of the directors of the Employer or such other
                         corporation or entity after such  transaction  are

<PAGE>

                         held in the aggregate by the holders of the  Employer's
                         securities  entitled to vote  generally in the election
                         of directors of the Employer  immediately prior to such
                         transaction; or

                (c)      during any period of two consecutive years, 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.

2.5      Corporate  Executive  Committee.  For the  initial  Plan year,  and for
         subsequent Plan Years until amended,  the Corporate Executive Committee
         shall consist of those Board members elected annually.

2.6      Employer. First United Bank and Trust.

2.7      Executive.  Executive means a management or highly compensated employee
         of  the  Employer  designated  by  the  Administrator  as  eligible  to
         participate in the Plan.

2.8      Normal   Retirement.   Normal   Retirement   means   termination  of  a
         Participant's  employment  with the  Employer for any reason other than
         for Cause after such  Participant  has attained  his Normal  Retirement
         Age. If a Participant  terminates  employment with the Employer for any
         reason other than for Cause after becoming  vested but before  reaching
         his Normal  Retirement  Age,  then he may take Normal  Retirement  upon
         reaching his Normal Retirement Age.

2.9      Normal   Retirement  Age.  Normal   Retirement  Age  means  the  normal
         retirement age set forth in the Participation Agreement.

2.10     Participant.  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.   Participation  Agreement  means  a  written
         agreement between the Employer and a Participant, pursuant to which the
         Employer  agrees to make SERP Benefit  payments 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;

                (c)      the SERP Benefits to which the  Participant is entitled
                         under the Plan and,  the form such  benefits  are to be
                         paid in (i.e. installments or lump sum);

                (e)      the identity of the Participant's Beneficiary; and

                (f)      any other  provisions  which  alter or  supplement  the
                         terms and conditions contained in the Plan.

2.12     Plan. Plan means the First United Bank and Trust Supplemental Executive
         Retirement  Plan,  as the same may be  altered or  supplemented  in any
         validly executed Participation Agreement.

2.13     Plan Year.  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.

<PAGE>

2.14     SERP. Supplemental Executive Retirement Plan of the Employer.

2.15     SERP Benefit. SERP Benefit means, with respect to each Participant,  an
         amount   determined   pursuant  to  Section  8  of  the   Participant's
         Participation Agreement, minus any offset amounts specified therein.

2.16     Vesting.  The Participant's  ownership rights in the SERP Benefit shall
         arise,  or vest, with the occurrence of those  conditions  precedent to
         Vesting as contained in the Participation Agreement.

2.17     Years of Service.  Years of Service shall have the meaning as set forth
         in 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 Benefit. Each Participant,  subject to the terms and conditions of
         his Participation Agreement, shall become entitled to receive such SERP
         Benefit as set forth in the executed Participation Agreement.

4.2      No  Benefits  Payable  Upon  Termination  for  Cause.   Notwithstanding
         anything  herein to the contrary,  no benefits  shall be payable to any
         Participant  who is  terminated  from  his or her  employment  with the
         Employer for Cause,  regardless of whether the Participant has attained
         Normal Retirement Age or is vested.  For purposes hereof, a Participant
         whose  employment is terminated for any of the following  reasons shall
         be regarded as having been terminated for Cause:

                (a)      engaging  in willful or  grossly  negligent  misconduct
                         that is materially injurious to the Employer;

                (b)      embezzlement or  misappropriation  of funds or property
                         of the Employer;

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

                (d)      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;

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

                (f)      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.

                                    ARTICLE V
                                  BENEFICIARIES

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

<PAGE>

                                   ARTICLE VI
                               Plan Administration

6.1      Administration.

                (a)      General.   The  Plan  shall  be   administered  by  the
                         -------
                         Administrator.  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
                         and to make  any  determinations  with  respect  to the
                         benefits   payable  under  the  Plan  and  the  persons
                         entitled  thereto as may be necessary  for the purposes
                         of the Plan. The  Administrator's  determination of the
                         rights of any  employee  or former  employee  hereunder
                         shall be final and binding on all persons, subject only
                         to the claims procedures outlined in Article 7 hereof.

                (b)      Delegation of Duties.  The  Administrator  may delegate
                         --------------------
                         any of its administrative  duties,  including,  without
                         limitation,  duties  with  respect  to the  processing,
                         review, investigation, approval and payment of benefits
                         payable   hereunder,   to  a  named   administrator  or
                         administrators.

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 (or to recover from such
         person)  any excess  payment or  underpayment  previously  made to such
         person.

6.4      Amendment. The Board may at any time amend any or all of the provisions
         of  this  Plan.  Any  amendment  shall  be in  the  form  of a  written
         instrument  executed  by an  officer  of  the  Employer  pursuant  to a
         resolution adopted by the Board. Subject to the foregoing provisions of
         this Section 6.4, such amendment shall become  effective as of the date
         specified in such  instrument or, if no such date is specified,  on the
         date of its  execution.  Notwithstanding  the  preceding,  no amendment
         shall  reduce any vested  benefits  which the  Participant  has already
         become entitled to at the time of the amendment,  including benefits to
         which the Participant became entitled due to a Change of Control.

6.5      Termination. The Board, in its discretion, may terminate this Plan at
         any time and for any reason whatsoever, except that no such termination
         may (i) reduce the amount of the 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 or (ii) change the time or
         form of distribution of the amount of the Participant's benefit as of
         the date of such termination, without the prior written consent of such
         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. Subject to the foregoing provisions of
         this Section 6.5, 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.

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

<PAGE>

                                   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 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; and

                (d)      an  explanation  of  the  provisions  of  this  Article
                         appropriate  information as to the steps to be taken if
                         the  Participant  or  Beneficiary  wishes to submit his
                         claim for review.

7.3      Right of Appeal.  A claimant who has a claim  denied under  Section 7.2
         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 duly authorized  representative may
         (i) request a review upon written  application to the Plan; (ii) 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
         below.  The  decision  shall be  written in a manner  calculated  to be
         understood by the claimant and shall specifically state its reasons and
         pertinent  Plan  provisions  on which it  relies.  The  Administrator's
         decision  shall be issued  within  sixty  (60) days after the appeal is
         filed,  except  that if a hearing  is held the  decision  may be issued
         within one hundred twenty (120) days after the appeal is filed.

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      Administrator. The Administrator:

                (a)      is expressly  empowered  to  interpret  the Plan and to
                         determine all questions arising in the  administration,
                         interpretation,  and application of the Plan; to employ
                         actuaries,  accountants,  counsel, and other persons it
                         deems necessary in connection  with the  administration
                         of 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;   and  to  take  all  other
                         necessary  and proper  actions to fulfill its duties as
                         Administrator;

                (b)      shall not be liable  for any  actions  by it  hereunder
                         unless  due to its  own  gross  negligence  or  willful
                         misconduct; and

                (c)      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
<PAGE>
                         expenses  reasonably  incurred  in its  defense  in the
                         event the  Employer  fails to provide such defense upon
                         the request of the Administrator.  The Administrator is
                         relieved of all  responsibility  in connection with its
                         duties  hereunder  to the fullest  extent  permitted by
                         law,  except any breach of duty to the  Participants or
                         Beneficiaries.

8.2      No Assignment. No benefit under the Plan shall 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 Plan.  No benefit shall in any manner be subject to the
         debts, contracts, liabilities, engagements, or torts of any person, nor
         shall it be  subject  to  attachments  or other  legal  process  for or
         against any person, except to such extent as may be required by law.

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

8.4      Incompetence. If the Administrator determines that any person to whom a
         benefit is payable under this Plan 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, the Trustee, and their representatives.

8.5      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 Benefit of the affected Participant.

8.6      No  Liability.  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.

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

8.8      Amendment  and  Termination.  Except  as  otherwise  provided  in  this
         section,  the Employer shall have the sole authority to modify,  amend,
         or terminate this Plan.  Notwithstanding  the  preceding,  no amendment
         shall  reduce any vested  benefits  which the  Participant  has already
         become entitled to at the time of the amendment,  including benefits to
         which the Participant became entitled to due to a Change of Control.

8.9      Employer Determinations.  Any determinations,  actions, or decisions of
         the Employer  (including  but not limited to, Plan  amendments and Plan
         termination)  shall  be  made  by the  Board  in  accordance  with  its
         established  procedures  or  by  such  other  individuals,  groups,  or
         organizations  that have been  properly  delegated by the Board to make
         such determination or decision.

8.10     Construction.   All  questions  of   interpretation,   construction  or
         application arising under or concerning the terms of this Plan shall be
         decided by the Administrator,  in its sole and final discretion,  whose
         decision shall be final, binding and conclusive upon all persons.

8.11     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, without regard to any principles of conflicts of law
         of such State.

<PAGE>

8.12     Severability.  Should  any  provision  of the  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.

8.13     Headings.  The headings  contained  in the 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.

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

8.15     Ownership of Assets;  Relationship  with Employer.  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.  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. To the extent that any person acquires a right to receive
         payments  from the  Employer  under this Plan,  such right  shall be no
         greater  than  the  right  of an  unsecured  general  creditor  of  the
         Employer.

8.16     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.  The trust may be a  springing
         trust. The Employer in its sole discretion may make deposits to augment
         the principal of such trust.

8.17     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.

Executed this 1st day of November, 2001.

FIRST UNITED BANK AND TRUST

By: /s/ William B. Grant
    -------------------------------------

Title: Chairman & CEO
       ----------------------------------

ATTESTED:

By: _____________________________________

Title: __________________________________Exhibit 10.2

                           FIRST UNITED BANK AND TRUST
                     SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

                             PARTICIPATION AGREEMENT

         THIS PARTICIPATION AGREEMENT (the "Participation Agreement") is entered
into this ___ day of _________,  2002 by and between FIRST UNITED BANK AND TRUST
(the "Employer"), and , an employee of the Employer (the "Participant").

                                    RECITALS:

         WHEREAS,  the Employer has adopted the Plan effective as of November 1,
2001, and the Administrator has determined, and the Participant has agreed, that
the  Participant  shall be eligible to  participate in the Plan on the terms and
conditions set forth in this Participation Agreement.

         NOW,  THEREFORE,  in  consideration of the foregoing and the agreements
and covenants set forth herein, the parties agree as follows:

1.       Definitions.  Except  as  otherwise  provided,  or unless  the  context
otherwise  requires,  the terms used in this Participation  Agreement shall have
the same meanings as in the Plan.

2.       Plan.  Plan means First  United Bank and Trust  Supplemental  Executive
Retirement  Plan, as amended,  as the same may be altered or supplemented in any
validly executed Participation Agreement.

3.       Incorporation of Plan. The Plan, a copy of which is attached as Exhibit
A, is hereby  incorporated  into this  Participation  Agreement  as if fully set
forth herein,  and the parties  hereby agree to be bound by all of the terms and
provisions  contained in the Plan,  except as such terms and  conditions  may be
altered,  amended or  supplemented in this  agreement.  The  Participant  hereby
acknowledges  receipt  of a copy of the  Plan  and,  subject  to the  foregoing,
confirms  his or her  understanding  and  acceptance  of  all of the  terms  and
conditions contained therein.

4.       Effective   Date  of   Participation.   The   effective   date  of  the
Participant's  participation  in  the  Plan  shall  be  November  1,  2001  (the
"Participation Date").

5.       Normal  Retirement  Age. The  Participant's  Normal  Retirement Age for
purposes of this Plan shall be the attainment of sixty (60) years of age and the
completion of ten (10) Years of Service.

6.       Normal   Retirement.   Normal   Retirement   means   termination  of  a
Participant's  employment  with the Employer for any reason other than for Cause
after such Participant has attained his Normal Retirement Age.

7.       Prohibition  Against  Funding.  Should any  investment  be  acquired in
connection  with the  liabilities  assumed  under  this  Plan and  Participation
Agreement,  it is  expressly  understood  and agreed that 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.  It is the express  intention  of the parties
hereto that this arrangement shall be unfunded for tax purposes and for purposes
of Title I of ERISA.  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.  The
Employer  shall be  designated  the  owner  and  beneficiary  of any  investment
acquired in connection with its obligation under this Plan.

8.       Provisions Related to SERP Benefit.

         (a)      Normal  Retirement  SERP Benefit.  Upon  Participant's  Normal
                  Retirement,  Participant  shall  be  entitled  to  the  Normal
                  ------------------------------  Retirement  SERP Benefit.  The
                  Normal  Retirement  SERP  Benefit  shall  be two and  one-half
                  percent  (2.5%) of Final Pay for each Year of  Service up to a
                  maximum of twenty-four (24) Years of

<PAGE>

                  Service,  plus one percent  (1%) of Final Pay for each Year of
                  Service  above  twenty-four  (24)  and  up  to  a  maximum  of
                  twenty-nine (29) Years of Service.  For purposes of this Plan,
                  a Participant's  Final Pay shall mean the average of the three
                  (3)  highest  annual  pay  periods  over the  five  (5)  years
                  preceding   the   Participant's   Normal   Retirement.    This
                  calculation  shall take into effect  those  Employer  provided
                  amounts of remuneration  considered  Participant's W-2 pay for
                  services provided while employed by the Employer.  Participant
                  shall be responsible for the payment of all applicable  local,
                  state  and  federal  taxes   associated   with   Participant's
                  participation in this Plan.

         (b)      Change of Control SERP Benefit. In the event there is a Change
                  of  Control,  as  defined  in the  Plan,  and  termination  of
                  Participant   pursuant  to  a  subsequent   Triggering  Event,
                  Participant shall be deemed to have terminated employment as a
                  consequence  of Normal  Retirement and will be fully vested in
                  his benefit under the Plan (including the pre-retirement death
                  benefit).  Upon such an event, if this Participation Agreement
                  was executed  before March 15, 2002,  the  Participant's  SERP
                  Benefit will be the greater of (1) 60% of Final Pay or (2) the
                  Benefit   already   earned  under   Section   8(a).   If  this
                  Participation  Agreement  was  executed  on or after March 15,
                  2002,  the  Participant's  SERP  Benefit  will be the  Benefit
                  already  earned under  Section 8(a). In no event will the SERP
                  Benefit  payable on account of a Change of Control  exceed the
                  maximum  amount that can be paid without  triggering a loss of
                  Employer deduction under Code Section 280G or imposition of an
                  excise tax under Code Section 4999. All rights and liabilities
                  associated with  Participant's  Normal Retirement SERP Benefit
                  shall not be adversely affected, limited or reduced in any way
                  due to a Change of Control and Triggering Event.

         (c)      Offset Provision.  There will be a dollar-for-dollar offset of
                  the SERP Benefit that the Participant may be entitled to under
                  this Plan and pursuant to this  Participation  Agreement.  The
                  SERP Benefit shall be offset, dollar-for-dollar,  by an amount
                  equal  to  fifty-percent  (50%)  of the  Participant's  Social
                  Security  and one  hundred-percent  (100%) of the First United
                  Bank and Trust Pension Plan benefits received. For purposes of
                  this Plan and offset calculation,  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 and Trust Pension Plan, cause an increase to
                  any offset amount under this Participation Agreement and Plan.

         (d)      Vesting.  A Participant shall become 100% vested in his Normal
                  Retirement SERP Benefit upon the  Participant's  attainment of
                  Normal  Retirement  Age,  as set  forth in this  Participation
                  Agreement, as set forth in Section 8(b) (Change of Control) or
                  Section 8(k)  (Disability),  upon completion of ten (10) Years
                  of Service or upon death. There shall be no partial vesting of
                  Participant's Normal Retirement SERP Benefit.

         (e)      Triggering  Event.  For  purposes of this Plan,  a  Triggering
                  Event  shall  be the  occurrence  of any one of the  following
                  subsequent to a Change of Control, as defined in the Plan:

                  1)      Participant's receipt of a letter of intent to dismiss
                          without Cause; or

                  2)      termination of Participant's employment without Cause;
                          or

                  3)      termination of Plan; or

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

                  5)      at least a 10% reduction in total pay (meaning regular
                          pay plus any  bonus or  incentive  compensation),  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 Change of
                          Control occurs; or

                  6)      a  reduction  of  position  to one of a non  executive
                          nature.

         (f)      Form of Normal  Retirement SERP Benefit  Payment.  Participant
                  may elect any one (1) of the following actuarially  equivalent
                  distribution methods:

<PAGE>

                  1)      lump  sum  payment  made as  soon as  administratively
                          possible after the Participant's Normal Retirement; or

                  2)      lifetime annuity; or

                  3)      lifetime annuity with ten (10) years certain; or

                  4)      50% joint and survivor annuity; or

                  5)      75% joint and survivor annuity; or

                  6)      100% joint and survivor annuity.

                  In the event the  Participant  fails to elect any of the above
                  forms  of  SERP   Benefit   distribution   methods   prior  to
                  termination of employment, such Participant shall be deemed to
                  have  chosen a lifetime  annuity and  benefits  shall begin as
                  soon as administratively possible following Normal Retirement.
                  All  distributions  under this Section 8(f), except for a lump
                  sum  distribution,  shall  be made  on a  monthly  basis.  The
                  monthly  amount  shall be derived  from the Normal  Retirement
                  SERP  Benefit  divided by twelve (12)  months.  In the event a
                  Participant  elects any one of the joint and survivor  annuity
                  methods  of  payment,   as   addressed   herein,   Participant
                  acknowledges  and  accepts  the  reduction  of  their  monthly
                  distribution  to  actuarially  accommodate  such  distribution
                  election.

                  If the  Participant  elects  a form of  benefit  other  than a
                  lifetime annuity,  the actuarial equivalent will be determined
                  using the same actuarial equivalent  assumptions  contained in
                  the Employer's pension plan referenced in Section 8(c).

         (g)      Post  Retirement  Survivor  Benefit.  A  Participant's  Normal
                  Retirement SERP Benefit under this Plan shall only continue in
                  the event of  Participant's  death if Participant  had elected
                  one of the  following  forms  of  SERP  Benefit  distributions
                  methods:

                  1)      50% joint and survivor annuity; or

                  2)      75% joint and survivor annuity; or

                  3)      100% joint and survivor annuity; or

                  4)      ten (10) year certain with payments  continuing to the
                          participant's  beneficiary  until one  hundred  twenty
                          (120) monthly payments in total have been made.

         (h)      Pre-Retirement  Death  Benefit.  Upon  a  Participant's  death
                  before Normal Retirement,  the Participant's  Beneficiary will
                  be entitled to receive the Participant's  SERP Benefit payable
                  as a lump sum. For this purpose,  the SERP Benefit  equals the
                  Participant's Normal Retirement SERP Benefit earned to date of
                  death  under  Section  8(a),  reduced by the offset in Section
                  8(c) and any death  benefit  payable  to the  beneficiary(ies)
                  designated  by the  Participant  for  purposes of any Employer
                  owned  life  insurance  covering  the life of the  Participant
                  (disregarding any group term life insurance). Benefits will be
                  paid as soon as practicable after the Participant's  death. In
                  no circumstances will the sum of (1) the Pre-Retirement  Death
                  Benefit  payable  under this  Section  8(h) plus (2) the death
                  benefit  payable  to the  beneficiary(ies)  designated  by the
                  Participant  for purposes of any Employer owned life insurance
                  covering the life of the Participant  (disregarding  any group
                  term  life  insurance)  exceed  (3) the  Participant's  Normal
                  Retirement  SERP Benefit earned to date of death under Section
                  8(a).

         (i)      Years of Service.  A Participant  shall receive credit for one
                  (1) Year of Service for each twelve (12) consecutive months of
                  full time employment  with Employer.  There will be NO partial
                  credit  given for a Year of Service  for less than twelve (12)
                  consecutive months of employment with Employer.

         (j)      Final Pay. For purposes of this Plan,  a  Participant's  Final
                  Pay shall mean the average of the three (3) highest annual pay
                  periods over the five (5) years  preceding  the  Participant's
                  effective date of retirement.
<PAGE>

                  This  calculation  shall  take into  effect  those  amounts of
                  remuneration  considered  Participant's  W-2 pay for  services
                  while employed by the Employer.

         (k)      Disability Termination. In the event Participant is terminated
                  from  employment  with the Employer  due to the  Participant's
                  Disability,  Participant  shall  be 100%  vested  in his  SERP
                  Benefit   already   earned  at  the  date  of  termination  of
                  employment and shall be deemed to have  terminated  employment
                  by Normal  Retirement.  Disability shall have the same meaning
                  as found under the First United Bank and Trust's  current Long
                  Term  Disability  Plan  as  in  effect  at  the  time  of  the
                  termination  of  employment.  All benefits  derived from,  and
                  pursuant to, a Participant's  Normal  Retirement  through this
                  Plan  and  Participation  Agreement,  shall  not be  adversely
                  affected  by the  Participant's  Disability  termination,  and
                  shall be distributed accordingly.  Furthermore, in addition to
                  the benefit  offset as provided  for in 8(c) above,  an amount
                  equal to any Employer  provided  disability  insurance payment
                  will offset,  dollar-for-dollar,  the amount of  Participant's
                  Normal   Retirement  SERP  Benefit  received   pursuant  to  a
                  Disability   termination.   For  purposes  of  this   Section,
                  disability  insurance is considered  Employer provided even if
                  the  Participant  is taxed  on  premium  payments  made by the
                  Employer.

         (l)      Forfeiture.   Notwithstanding   the  above,   the   Employer's
                  obligation  to  pay  the   Participant  or   Beneficiary,   as
                  applicable,  any payments  under the Plan will be  conditioned
                  upon  (i)  the   Participant   refraining   from   Competitive
                  Employment,  (ii) the  Participant  refraining  from injurious
                  disclosure  of   confidential   information   concerning   the
                  Employer,  and (iii) the Participant  remaining  available for
                  consultation   services   with   the   Employer.   Competitive
                  Employment means the Participant  engaging in any business (i)
                  which  provides  goods or  services  substantially  similar to
                  those  provided by the Employer and (ii) which is located in a
                  county in which the Employer has a branch.

                  If the Participant engages in Competitive Employment,  makes a
                  prohibited  disclosure,  or refuses  to  provide  consultation
                  services  as are  reasonably  required  by the  Employer,  the
                  Participant  will forfeit all  then-unpaid  amounts  under the
                  Plan and must  reimburse  the  Employer,  plus interest at the
                  rate of 10% per year,  any amounts  previously  paid under the
                  Plan.  The  Participant  must  reimburse  the Employer for any
                  attorney's fees it incurs to enforce this repayment provision.

9.       Beneficiary.

         (a)      Pre-Retirement Death Benefits. A Participant may designate his
         Beneficiary  for the  Pre-Retirement  Death  Benefit in Section 8(h) 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  (if any).  If there is still no  Beneficiary,
         then the Beneficiary will be 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  Death  Benefits.  A Participant who elects a
         joint and  survivor  annuity or a lifetime  annuity with ten (10) years
         certain shall  designate,  in accordance with rules  established by the
         Administrator,  a Beneficiary who will receive  benefits,  if any, upon
         his death.

10.      Lost Beneficiary.

         (a)      All Participants and  Beneficiaries  shall have the obligation
                  to keep the  Administrator  informed of their current  address
                  until such time as all benefits due have been paid.

         (b)      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.

<PAGE>

11.      General Provisions

         (a)      The Administrator:

                  1)      is expressly  empowered to interpret the Participation
                          Agreement  and the Plan and to determine all questions
                          arising  in the  administration,  interpretation,  and
                          application  of the  Participation  Agreement  and the
                          Plan; to employ actuaries,  accountants,  counsel, and
                          other persons it deems  necessary in  connection  with
                          the administration of the Participation  Agreement; 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; and to take all other necessary and proper
                          actions to fulfill its duties as Administrator;

                  2)      shall not be liable for any  actions  by it  hereunder
                          unless  due to its own  gross  negligence  or  willful
                          misconduct; and

                  3)      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  Participation  Agreement,  including all expenses
                          reasonably  incurred  in its  defense in the event the
                          Employer  fails  to  provide  such  defense  upon  the
                          request of the  Administrator.  The  Administrator  is
                          relieved of all  responsibility in connection with its
                          duties  hereunder to the fullest  extent  permitted by
                          law, except any breach of duty to the  Participants or
                          Beneficiaries.

         (b)      No Assignment.  No benefit under the  Participation  Agreement
                  shall 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.  No  benefit  shall in any manner be
                  subject to the debts, contracts, liabilities,  engagements, or
                  torts of any person, nor shall it be subject to attachments or
                  other legal process for or against any person,  except to such
                  extent as may be required by law.

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

         (d)      Incompetence.  If the Administrator determines that any person
                  to whom a benefit is payable under this Plan and 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, the Trustee, and
                  their representatives.

         (e)      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  Benefit of the
                  affected Participant.

         (f)      No Liability.  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 and Participation Agreement, 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

<PAGE>

                  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, and execution of this Participation Agreement.

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

         (h)      Termination. Except as otherwise provided in this section, the
                  Employer shall have the sole authority to terminate this Plan,
                  thus  voiding  any  obligations  or  liabilities   under  this
                  Participation  Agreement.  Notwithstanding  the preceding,  no
                  Amendment  may  eliminate  a   Participant's   accrued  vested
                  interest in this Plan which was already  earned by the date of
                  the  amendment,  including  benefits  already  earned due to a
                  Change of Control.

         (i)      Employer  Determinations.  Any  determinations,   actions,  or
                  decisions of the Employer  (including but not limited to, Plan
                  termination) shall be made by the Board in accordance with its
                  established  procedures or by such other individuals,  groups,
                  or  organizations  that have been  properly  delegated  by the
                  Board to make such determination or decision.

         (j)      Construction. All questions of interpretation, construction or
                  application arising under or concerning the terms of this Plan
                  and   Participation   Agreement,   shall  be  decided  by  the
                  Administrator,   in  its  sole  and  final  discretion,  whose
                  decision  shall be  final,  binding  and  conclusive  upon all
                  persons.

         (k)      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.

         (l)      Severability.   Should  any  provision  of  the  Participation
                  Agreement 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  Participation  Agreement 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.

         (m)      Headings.   The  headings   contained  in  the   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.

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

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

         (p)      Amendments.  This  Agreement  may not be  modified  or amended
                  except by a duly executed  instrument in writing signed by the
                  Employer and approved the Board.  No amendment may eliminate a
                  Participant's  accrued vested  interest in this Plan which was
                  already  earned  by  the  date  of  the  amendment,  including
                  benefits already earned due to a Change of Control.

         (q)      Entire Agreement.  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.

PARTICIPANT:                                FIRST UNITED BANK AND TRUST:

<PAGE>

______________________________              By:  _______________________________

                                            Title: _____________________________
------------------------------
Printed Name of Participant

ATTESTED:                                   ATTESTED:

By: ____________________________            By: ________________________________

Title: ___________________________          Title: _____________________________

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