<SEC-DOCUMENT>0001477932-19-001229.txt : 20190328
<SEC-HEADER>0001477932-19-001229.hdr.sgml : 20190328
<ACCEPTANCE-DATETIME>20190328094131
ACCESSION NUMBER:		0001477932-19-001229
CONFORMED SUBMISSION TYPE:	PX14A6G
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20190328
DATE AS OF CHANGE:		20190328
EFFECTIVENESS DATE:		20190328

SUBJECT COMPANY:	

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			FIRST UNITED CORP/MD/
		CENTRAL INDEX KEY:			0000763907
		STANDARD INDUSTRIAL CLASSIFICATION:	NATIONAL COMMERCIAL BANKS [6021]
		IRS NUMBER:				521380770
		STATE OF INCORPORATION:			MD
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		PX14A6G
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-14237
		FILM NUMBER:		19710209

	BUSINESS ADDRESS:	
		STREET 1:		19 S SECOND ST
		CITY:			OAKLAND
		STATE:			MD
		ZIP:			21550
		BUSINESS PHONE:		3013349471

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

FILED BY:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			Driver Management Co LLC
		CENTRAL INDEX KEY:			0001756372
		IRS NUMBER:				831994022
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		PX14A6G

	BUSINESS ADDRESS:	
		STREET 1:		215 EAST 72ND STREET
		STREET 2:		7W
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10021
		BUSINESS PHONE:		9177447758

	MAIL ADDRESS:	
		STREET 1:		215 EAST 72ND STREET
		STREET 2:		7W
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10021
</SEC-HEADER>
<DOCUMENT>
<TYPE>PX14A6G
<SEQUENCE>1
<FILENAME>dmc_px14a6g.htm
<DESCRIPTION>PX14A6G
<TEXT>
<html><head><title>dmc_px14a6g.htm</title><!--Document Created by EDGARMaster--></head><BODY spellcheck="true" style="text-align:justify;font:10pt TIMES NEW ROMAN;margin:0px 7%"><p style="MARGIN: 0px"> <table style="FONT-SIZE: 1px" cellspacing="0" cellpadding="0" width="100%" border="0"> <tr> <td> <div style="HEIGHT: 4px; WIDTH: 100%; BACKGROUND: #000000; MARGIN: 0px 0px 2px" name="hrule"></div> <div style="HEIGHT: 2px; WIDTH: 100%; BACKGROUND: #000000" name="hrule"></div></td></tr></table></p> <p style="MARGIN: 0px">&nbsp;</p> <p style="MARGIN: 0px" align="center"><font size="3"><b>United States Securities and Exchange Commission</b></font></p> <p style="MARGIN: 0px" align="center"><font size="3"><b>Washington, DC 20549</b></font></p> <p style="MARGIN: 0px">&nbsp;</p> <p style="MARGIN: 0px" align="center">NOTICE OF EXEMPT SOLICITATION</p> <p style="MARGIN: 0px">&nbsp;</p> <p style="MARGIN: 0px"><b>NAME OF REGISTRANT: </b>First United Corporation</p> <p style="MARGIN: 0px">&nbsp;</p> <p style="MARGIN: 0px"><b>NAME OF PERSONS RELYING ON EXEMPTION:</b> Driver Management Company LLC</p> <p style="MARGIN: 0px">&nbsp;</p> <p style="MARGIN: 0px"><b>ADDRESS OF PERSON RELYING ON EXEMPTION: </b>215 East 72nd Street, New York, NY 10021</p> <p style="MARGIN: 0px">&nbsp;</p> <p style="MARGIN: 0px"><b>WRITTEN MATERIALS</b>: The attached written materials are submitted pursuant to Rule 14a-6(g)(1) (the &#8220;Rule&#8221;) promulgated under the Securities Exchange Act of 1934. Submission is not required of this filer under the terms of the Rule, but is made voluntarily in the interest of public disclosure and consideration of these important issues.</p> <p style="MARGIN: 0px">&nbsp;</p> <p style="MARGIN: 0px"> <table style="FONT-SIZE: 1px" cellspacing="0" cellpadding="0" width="100%" border="0"> <tr> <td> <div style="HEIGHT: 2px; WIDTH: 100%; BACKGROUND: #000000; MARGIN: 0px 0px 2px" name="hrule"></div> <div style="HEIGHT: 4px; WIDTH: 100%; BACKGROUND: #000000" name="hrule"></div></td></tr></table></p> <p style="MARGIN: 0px"> <table class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"> <tr> <td class="hpbhr">&nbsp;</td></tr> <tr> <td>&nbsp;</td></tr> <tr> <td> <div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div>&nbsp;</td></tr> <tr> <td>&nbsp;</td></tr></table></p> <p style="MARGIN: 0px">&nbsp;</p> <p style="MARGIN: 0px" align="center">ATTENTION FUNC SHAREHOLDERS</p> <p style="MARGIN: 0px">&nbsp;</p> <p style="MARGIN: 0px" align="center"><b><i><u>IT&#8217;S TIME TO HOLD FUNC ACCOUNTABLE</u></i></b><i>:</i></p> <p style="MARGIN: 0px">&nbsp;</p> <p style="MARGIN: 0px" align="center"><b><i><u>DEMAND</u></i></b><i> THAT FUNC IMMEDIATELY HIRE QUALIFIED AND EXPERIENCED FINANCIAL ADVISORS AND EXPLORE A SALE;</i></p> <p style="MARGIN: 0px">&nbsp;</p> <p style="MARGIN: 0px" align="center"><b><i><u>VOTE AGAINST</u></i></b><i> FUNC&#8217;S NOMINEES FOR DIRECTOR; AND</i></p> <p style="MARGIN: 0px">&nbsp;</p> <p style="MARGIN: 0px" align="center"><b><i><u>VOTE AGAINST</u> </i></b><i>APPROVING THE COMPENSATION PAID TO FUNC&#8217;S EXECUTIVE OFFICERS IN 2018</i></p> <p style="MARGIN: 0px">&nbsp;</p> <p style="MARGIN: 0px">Driver Management Company LLC (&#8220;Driver&#8221;) believes that First United Corporation (&#8220;FUNC&#8221;) would be worth significantly more in a sale than remaining independent. Driver further believes that this proposition is readily apparent to any reasonably experienced investor and that it is just as readily apparent that FUNC is committed to avoiding any sale or other value maximizing transaction, regardless of the impact on shareholders. Driver also believes that this avoidance of any sale or other value maximizing transaction has been standard operating procedure at FUNC for some time.</p> <p style="MARGIN: 0px">&nbsp;</p> <p style="MARGIN: 0px">Just how long this anti-shareholder posture has been standard operating procedure for FUNC is demonstrated by the fact that FUNC&#8217;s 2006 Proxy Statement<sup>1</sup> contained a shareholder proposal, made by Dr. Eric Smith<sup>2</sup>, of Hagerstown, Maryland, requesting that FUNC&#8217;s board &#8220;seek to improve shareholder value by sale or merger of the company to another institution.&#8221; The rationale for the proposal was that the proposing shareholder anticipated that FUNC would &#8220;show slow growth in the future&#8221; that would &#8220;be reflected in the stock price and dividends.&#8221;</p> <p style="MARGIN: 0px">&nbsp;</p> <p style="MARGIN: 0px">Not only did FUNC&#8217;s board urge stockholders to vote against Dr. Smith&#8217;s proposal, but they castigated his supporting rationale as being &#8220;made up of groundless predictions&#8221; and &#8220;irresponsible.&#8221; FUNC also stated that:</p> <p style="MARGIN: 0px">&nbsp;</p> <p style="MARGIN: 0px 0px 0px 45px">The Board has never foreclosed the possibility of any strategic transaction that is in the best interests of [FUNC] and its shareholders, and it regularly reviews any and all initiatives that could be implemented to maximize value for shareholders. [FUNC] maintains relationships with nationally recognized investment banking firms and other advisors and receives their advice on financial and strategic matters from time to time. [FUNC] is fully committed to enhancing shareholder value and continuing to undertake initiatives to achieve that objective.</p> <p style="MARGIN: 0px">___________</p> <p style="MARGIN: 0px"><sup>1</sup> Available at http://www.sec.gov/Archives/edgar/data/763907/000114420406010793/v038157_def14a.htm</p> <p style="MARGIN: 0px"><sup>2</sup> At the time he made the proposal, Dr. Smith owned 8,000 FUNC shares, more than fourteen of FUNC s eighteen directors and executive officers.</p> <p style="MARGIN: 0px">&nbsp;</p> <p style="MARGIN: 0px"> <table id="pagebreak7e06e778-4508-458a-a5f7-abcf0a02e2c5" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"> <tr> <td class="hpbhr">&nbsp;</td></tr> <tr> <td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">2</td></tr> <tr> <td> <div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div>&nbsp;</td></tr> <tr> <td>&nbsp;</td></tr></table></p> <p style="MARGIN: 0px">&nbsp;</p> <p style="MARGIN: 0px">While the accuracy of FUNC&#8217;s statements regarding their commitment to &#8220;enhancing shareholder value&#8221; is questionable at best, Dr. Smith&#8217;s predictions, contrary to FUNC&#8217;s assertations at the time, have been proven to be extremely accurate, as demonstrated by the table below.</p> <p style="MARGIN: 0px">&nbsp;</p> <p style="MARGIN: 0px"> <table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"> <tr height="15"> <td style="BORDER-BOTTOM: 1px solid" valign="top" width="45%"> <p style="MARGIN: 0px 0px 0px 0in" align="center">Selected Indexes and Banks</p></td> <td width="10%"> <p style="MARGIN: 0px">&nbsp;</p></td> <td style="BORDER-BOTTOM: black 1px solid" valign="top" width="45%"> <p style="MARGIN: 0px 0px 0px 0in" align="center">Total Return (3/24/2006 to 3/26/2019)<sup>3</sup></p></td></tr> <tr height="15" bgcolor="#cceeff"> <td valign="top"> <p style="MARGIN: 0px" align="left">SNL U.S. Bank and Thrift Index</p></td> <td> <p style="MARGIN: 0px">&nbsp;</p></td> <td valign="top"> <p style="MARGIN: 0px" align="center">17.10%</p></td></tr> <tr height="15" bgcolor="#ffffff"> <td valign="top"> <p style="MARGIN: 0px">Russell 2000 Index</p></td> <td> <p style="MARGIN: 0px">&nbsp;</p></td> <td valign="top"> <p style="MARGIN: 0px" align="center">142.11%</p></td></tr> <tr height="15" bgcolor="#cceeff"> <td valign="top"> <p style="MARGIN: 0px">CHCO</p></td> <td> <p style="MARGIN: 0px">&nbsp;</p></td> <td valign="top"> <p style="MARGIN: 0px" align="center">220.92%</p></td></tr> <tr height="15" bgcolor="#ffffff"> <td valign="top"> <p style="MARGIN: 0px">OLBK</p></td> <td> <p style="MARGIN: 0px">&nbsp;</p></td> <td valign="top"> <p style="MARGIN: 0px" align="center">167.14%</p></td></tr> <tr height="15" bgcolor="#cceeff"> <td valign="top"> <p style="MARGIN: 0px">WSBC</p></td> <td> <p style="MARGIN: 0px">&nbsp;</p></td> <td valign="top"> <p style="MARGIN: 0px" align="center">96.97%</p></td></tr> <tr height="15" bgcolor="#ffffff"> <td valign="top"> <p style="MARGIN: 0px">STBA</p></td> <td> <p style="MARGIN: 0px">&nbsp;</p></td> <td valign="top"> <p style="MARGIN: 0px" align="center">61.77%</p></td></tr> <tr height="15" bgcolor="#cceeff"> <td valign="top"> <p style="MARGIN: 0px">UBSI</p></td> <td> <p style="MARGIN: 0px">&nbsp;</p></td> <td valign="top"> <p style="MARGIN: 0px" align="center">60.24%</p></td></tr> <tr height="15" bgcolor="#ffffff"> <td valign="top"> <p style="MARGIN: 0px">UBSH</p></td> <td> <p style="MARGIN: 0px">&nbsp;</p></td> <td valign="top"> <p style="MARGIN: 0px" align="center">43.25%</p></td></tr> <tr height="15" bgcolor="#cceeff"> <td valign="top"> <p style="MARGIN: 0px"><b>FUNC</b></p></td> <td> <p style="MARGIN: 0px">&nbsp;</p></td> <td valign="top"> <p style="MARGIN: 0px 0px 0px 0in" align="center"><b>-2.11%</b></p></td></tr></table></p> <p style="MARGIN: 0px">&nbsp;</p> <p style="MARGIN: 0px">During the period in which FUNC&#8217;s shareholders were experiencing a <u>negative</u> total return, those same directors who adamantly recommended against Dr. Smith&#8217;s proposal who remain on FUNC&#8217;s board have done quite well indeed:</p> <p style="MARGIN: 0px">&nbsp;</p> <p style="MARGIN: 0px"> <table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"> <tr height="15"> <td style="BORDER-BOTTOM: black 1px solid" valign="top" width="45%"> <p style="MARGIN: 0px 0px 0px 0in" align="center">Directors Remaining in Office Since 2006 Meeting</p></td> <td width="10%"> <p style="MARGIN: 0px">&nbsp;</p></td> <td style="BORDER-BOTTOM: black 1px solid" valign="top" width="45%"> <p style="MARGIN: 0px 0px 0px 0in" align="center">Total Compensation Since 2006 Meeting<sup>4</sup></p></td></tr> <tr height="15" bgcolor="#cceeff"> <td valign="top"> <p style="MARGIN: 0px 0px 0px 0in" align="center">M. Kathryn Burkey</p></td> <td> <p style="MARGIN: 0px">&nbsp;</p></td> <td valign="top"> <p style="MARGIN: 0px 0px 0px 0in" align="center">$510,524</p></td></tr> <tr height="15" bgcolor="#ffffff"> <td valign="bottom"> <p style="MARGIN: 0px 0px 0px 0in" align="center">Robert W. Kurtz</p></td> <td> <p style="MARGIN: 0px">&nbsp;</p></td> <td valign="top"> <p style="MARGIN: 0px 0px 0px 0in" align="center">$357,761<sup>5</sup></p></td></tr> <tr height="15" bgcolor="#cceeff"> <td valign="top"> <p style="MARGIN: 0px 0px 0px 0in" align="center">Elaine L. McDonald</p></td> <td> <p style="MARGIN: 0px">&nbsp;</p></td> <td valign="top"> <p style="MARGIN: 0px 0px 0px 0in" align="center">$476,747</p></td></tr> <tr height="15" bgcolor="#ffffff"> <td valign="top"> <p style="MARGIN: 0px 0px 0px 0in" align="center">Gary R. Ruddell</p></td> <td> <p style="MARGIN: 0px">&nbsp;</p></td> <td valign="top"> <p style="MARGIN: 0px 0px 0px 0in" align="center">$463,209</p></td></tr> <tr height="15" bgcolor="#cceeff"> <td valign="top"> <p style="MARGIN: 0px 0px 0px 0in" align="center">I. Robert Rudy</p></td> <td> <p style="MARGIN: 0px">&nbsp;</p></td> <td valign="top"> <p style="MARGIN: 0px 0px 0px 0in" align="center">$455,821</p></td></tr> <tr height="15" bgcolor="#ffffff"> <td valign="top"> <p style="MARGIN: 0px 0px 0px 0in" align="center">Robert G. Stuck</p></td> <td> <p style="MARGIN: 0px">&nbsp;</p></td> <td valign="top"> <p style="MARGIN: 0px 0px 0px 0in" align="center">$478,269</p></td></tr></table></p> <p style="MARGIN: 0px">&nbsp;</p> <p style="MARGIN: 0px">Despite their claims regarding their commitment to enhancing shareholder value, it appears that FUNC is far more concerned with (and committed to) enhancing directors&#8217; personal wealth.</p> <p style="MARGIN: 0px">&nbsp;</p> <p style="MARGIN: 0px">It is time to hold FUNC accountable: (i) <u>demand</u> FUNC immediately hire qualified and experienced financial advisors and explore a sale; (ii) <u>vote against</u> FUNC&#8217;s nominees for director; and (iii) <u>vote against</u> approving the compensation paid to FUNC&#8217;s executive officers in 2018.</p> <p style="MARGIN: 0px">&nbsp;</p> <p style="MARGIN: 0px" align="center">* * *</p> <p style="MARGIN: 0px">___________</p> <p style="MARGIN: 0px"><sup>3</sup> Source: S&amp;P Global Market Intelligence</p> <p style="MARGIN: 0px"><sup>4</sup> Based on aggreagating &#8220;Total&#8221; column for Director Compensation table in FUNC&#8217;s proxy statements</p> <p style="MARGIN: 0px"><sup>5</sup> Was a management director until 2010</p> <p style="MARGIN: 0px">&nbsp;</p> <p style="MARGIN: 0px"> <table id="pagebreak94e7be0c-8442-42b4-a94f-44a5f84d6766" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"> <tr> <td class="hpbhr">&nbsp;</td></tr> <tr> <td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">3</td></tr> <tr> <td> <div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div>&nbsp;</td></tr> <tr> <td>&nbsp;</td></tr></table></p> <p style="MARGIN: 0px">&nbsp;</p> <p style="MARGIN: 0px"><b>IMPORTANT NOTICE</b>: This communication is NOT a solicitation of proxies and Driver is not seeking authority to vote any proxy in connection with FUNC&#8217;s 2019 annual meeting of shareholders. Driver is not asking for your proxy card and will not accept proxy cards if sent.</p> <p style="MARGIN: 0px">&nbsp;</p> <p style="MARGIN: 0px" align="center">* * *</p> <p style="MARGIN: 0px">&nbsp;</p> <p style="MARGIN: 0px">March 28, 2019</p> <p style="MARGIN: 0px">&nbsp;</p> <p style="MARGIN: 0px">Contact&nbsp;</p> <p style="MARGIN: 0px">Abbott Cooper</p> <p style="MARGIN: 0px">Driver Management Company LLC</p> <p style="MARGIN: 0px">(917) 744-7758</p> <p style="MARGIN: 0px">&nbsp;</p> <p style="MARGIN: 0px">&nbsp;</p> <p style="MARGIN: 0px"> <table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cols="1" cellpadding="0" width="100%" align="center" border="0"> <tr> <td style="BORDER-BOTTOM: black 1px solid"> <p style="MARGIN: 0px" align="center">4</p></td></tr></table></p> <p style="MARGIN: 0px">&nbsp;</p></BODY><!--Document Created by EDGARMaster--></html>
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</DOCUMENT>
</SEC-DOCUMENT>
