<SEC-DOCUMENT>0001477932-20-003262.txt : 20200609
<SEC-HEADER>0001477932-20-003262.hdr.sgml : 20200609
<ACCEPTANCE-DATETIME>20200608190618
ACCESSION NUMBER:		0001477932-20-003262
CONFORMED SUBMISSION TYPE:	DFAN14A
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20200609
DATE AS OF CHANGE:		20200608
EFFECTIVENESS DATE:		20200609

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:		DFAN14A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-14237
		FILM NUMBER:		20950482

	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:		DFAN14A

	BUSINESS ADDRESS:	
		STREET 1:		250 PARK AVENUE
		STREET 2:		7TH FLOOR
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10177
		BUSINESS PHONE:		212-572-4811

	MAIL ADDRESS:	
		STREET 1:		250 PARK AVENUE
		STREET 2:		7TH FLOOR
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10177
</SEC-HEADER>
<DOCUMENT>
<TYPE>DFAN14A
<SEQUENCE>1
<FILENAME>func_dfan14a.htm
<DESCRIPTION>DFAN14A
<TEXT>
<html><head><title>func_dfan14a.htm</title><!--Document Created by EDGARMaster--></head><body style="TEXT-ALIGN: justify; FONT: 10pt times new roman; MARGIN-LEFT: 7%; MARGIN-RIGHT: 7%"><p style="MARGIN: 0px; text-align:justify;">&nbsp; </p><table style="font-size:1px;width:100%" cellpadding="1"> <tr> <td style="border-bottom:5px solid;padding:1px;"></td></tr> <tr> <td style="border-bottom:2px solid;padding-bottom:1px;padding-top:1px;padding-left:1px;padding-right:1px;padding:1px;"></td></tr></table> <p style="MARGIN: 0px; text-align:justify;">&nbsp;</p><p style="MARGIN: 0px; text-align:center;"><strong><font style="font-size:12pt">UNITED STATES</font></strong></p><p style="MARGIN: 0px; text-align:center;"><strong><font style="font-size:12pt">SECURITIES AND EXCHANGE COMMISSION</font></strong></p><p style="MARGIN: 0px; text-align:center;"><strong><font style="font-size:12pt">Washington, D.C. 20549</font></strong></p><p style="MARGIN: 0px; text-align:center;"><strong>&nbsp;</strong></p><p style="MARGIN: 0px; text-align:center;"><strong><font style="font-size:18pt">SCHEDULE 14A</font><br>(Rule 14a-101)</strong></p><p style="MARGIN: 0px; text-align:center;"><strong>&nbsp; <br>INFORMATION REQUIRED IN PROXY STATEMENT</strong></p><p style="MARGIN: 0px; text-align:center;"><br><strong>SCHEDULE 14A INFORMATION</strong></p><p style="MARGIN: 0px; text-align:center;"><br><strong>Proxy Statement Pursuant to Section 14(a) of the Securities Exchange Act of 1934<br>(Amendment No.&nbsp; )</strong> </p><p style="MARGIN: 0px; text-align:center;">&nbsp;</p><p style="MARGIN: 0px; text-align:justify;">&nbsp;</p><p style="MARGIN: 0px; text-align:justify;">Filed by the Registrant &#9744;</p><p style="MARGIN: 0px; text-align:justify;">&nbsp;</p><p style="MARGIN: 0px; text-align:justify;">Filed by a Party other than the Registrant &#9746;</p><p style="MARGIN: 0px; text-align:justify;">&nbsp;</p><p style="MARGIN: 0px; text-align:justify;">Check the appropriate box:</p><p style="MARGIN: 0px; text-align:justify;">&nbsp;</p><table style="border-spacing:0;text-align:justify;font:10pt times new roman;margin-left:auto;margin-right:auto;width:100%" cellpadding="0"> <tr style="height:15px"> <td style="width:4%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:4%;vertical-align:top;"> <p style="margin:0px">&#9744;</p></td> <td style="vertical-align:top;">Preliminary Proxy Statement</td></tr> <tr style="height:15px"> <td> <p style="margin:0px;text-indent:30px">&nbsp;</p></td> <td> <p style="margin:0px;text-indent:30px">&nbsp;</p></td> <td> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px"> <td> <p style="margin:0px">&nbsp;</p></td> <td style="vertical-align:top;"> <p style="margin:0px">&#9744;</p></td> <td style="vertical-align:top;">Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2))</td></tr> <tr style="height:15px"> <td> <p style="margin:0px;text-indent:30px">&nbsp;</p></td> <td> <p style="margin:0px;text-indent:30px">&nbsp;</p></td> <td> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px"> <td> <p style="margin:0px">&nbsp;</p></td> <td style="vertical-align:top;"> <p style="margin:0px">&#9744;</p></td> <td style="vertical-align:top;">Definitive Proxy Statement</td></tr> <tr style="height:15px"> <td> <p style="margin:0px;text-indent:30px">&nbsp;</p></td> <td> <p style="margin:0px;text-indent:30px">&nbsp;</p></td> <td> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px"> <td> <p style="margin:0px">&nbsp;</p></td> <td style="vertical-align:top;"> <p style="margin:0px">&#9746;</p></td> <td style="vertical-align:top;">Definitive Additional Materials</td></tr> <tr style="height:15px"> <td> <p style="margin:0px;text-indent:30px">&nbsp;</p></td> <td> <p style="margin:0px;text-indent:30px">&nbsp;</p></td> <td> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px"> <td> <p style="margin:0px">&nbsp;</p></td> <td style="vertical-align:top;"> <p style="margin:0px">&#9744;</p></td> <td style="vertical-align:top;">Soliciting Material Under Rule 14a-12</td></tr></table> <p style="MARGIN: 0px; text-align:justify;">&nbsp;</p><table style="border-spacing:0;text-align:left;font:10pt times new roman;margin-left:auto;margin-right:auto;width:60%" cellpadding="0"> <tr style="height:15px"> <td style="BORDER-BOTTOM: #000000 1px solid;"> <p style="MARGIN: 0px; text-align:center;"><font style="font-size:18pt"><strong>FIRST UNITED CORPORATION</strong></font></p></td></tr> <tr style="height:15px"> <td> <p style="MARGIN: 0px; text-align:center;">(Name of Registrant as Specified in Its Charter)</p></td></tr></table> <p style="MARGIN: 0px; text-align:justify;">&nbsp;</p><p style="MARGIN: 0px; text-align:center;"><strong>DRIVER MANAGEMENT COMPANY LLC</strong></p><p style="MARGIN: 0px; text-align:center;"><strong>DRIVER OPPORTUNITY PARTNERS I LP</strong></p><p style="MARGIN: 0px; text-align:center;"><strong>J. ABBOTT R. COOPER</strong></p><p style="MARGIN: 0px; text-align:center;"><strong>MICHAEL J. DRISCOLL, ED.D</strong></p><p style="MARGIN: 0px; text-align:center;"><strong>ETHAN C. ELZEN</strong></p><p style="MARGIN: 0px; text-align:center;"><strong><u>LISA NARRELL-MEAD</u></strong></p><p style="MARGIN: 0px; text-align:center;">(Name of Persons(s) Filing Proxy Statement, if Other Than the Registrant)</p><p style="MARGIN: 0px; text-align:justify;">&nbsp;</p><table style="border-spacing:0;text-align:justify;font:10pt times new roman;margin-left:auto;margin-right:auto;width:100%" cellpadding="0"> <tr style="height:15px"> <td> <p style="margin:0px">&nbsp;</p></td> <td colspan="2"> <p style="MARGIN: 0px; text-align:justify;">Payment of Filing Fee (Check the appropriate box):</p></td></tr> <tr style="height:15px"> <td style="width:4%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:4%;"> <p style="margin:0px">&nbsp;</p></td> <td> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px"> <td> <p style="margin:0px">&nbsp;</p></td> <td> <p style="margin:0px">&#9746;</p></td> <td> <p style="margin:0px">No fee required.</p></td></tr> <tr style="height:15px"> <td> <p style="margin:0px">&nbsp;</p></td> <td> <p style="margin:0px">&nbsp;</p></td> <td> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px"> <td> <p style="margin:0px">&nbsp;</p></td> <td> <p style="margin:0px">&#9744;</p></td> <td> <p style="margin:0px">Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11.</p></td></tr> <tr style="height:15px"> <td> <p style="margin:0px">&nbsp;</p></td> <td> <p style="margin:0px">&nbsp;</p></td> <td> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px"> <td> <p style="margin:0px">&nbsp;</p></td> <td colspan="2"> <p style="MARGIN: 0px; text-align:justify;">Title of each class of securities to which transaction applies:</p></td></tr> <tr style="height:15px"> <td> <p style="margin:0px">&nbsp;</p></td> <td style="BORDER-BOTTOM: #000000 1px solid;" colspan="2"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px"> <td> <p style="margin:0px">&nbsp;</p></td> <td colspan="2"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px"> <td> <p style="margin:0px">&nbsp;</p></td> <td colspan="2"> <p style="margin:0px">Aggregate number of securities to which transaction applies:</p></td></tr> <tr style="height:15px"> <td> <p style="margin:0px">&nbsp;</p></td> <td style="BORDER-BOTTOM: #000000 1px solid;" colspan="2"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px"> <td> <p style="margin:0px">&nbsp;</p></td> <td colspan="2"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px"> <td> <p style="margin:0px">&nbsp;</p></td> <td colspan="2"> <p style="MARGIN: 0px; text-align:justify;">Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11 (set forth the amount on which the filing fee is calculated and state how it was determined):</p></td></tr> <tr style="height:15px"> <td> <p style="margin:0px">&nbsp;</p></td> <td style="BORDER-BOTTOM: #000000 1px solid;" colspan="2"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px"> <td> <p style="margin:0px">&nbsp;</p></td> <td colspan="2"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px"> <td> <p style="margin:0px">&nbsp;</p></td> <td colspan="2"> <p style="margin:0px">Proposed maximum aggregate value of transaction:</p></td></tr> <tr style="height:15px"> <td> <p style="margin:0px">&nbsp;</p></td> <td style="BORDER-BOTTOM: #000000 1px solid;" colspan="2"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px"> <td> <p style="margin:0px">&nbsp;</p></td> <td colspan="2"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px"> <td> <p style="margin:0px">&nbsp;</p></td> <td colspan="2"> <p style="margin:0px">Total fee paid:</p></td></tr> <tr style="height:15px"> <td> <p style="margin:0px">&nbsp;</p></td> <td style="BORDER-BOTTOM: #000000 1px solid;" colspan="2"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px"> <td> <p style="margin:0px">&nbsp;</p></td> <td colspan="2"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px"> <td> <p style="margin:0px">&nbsp;</p></td> <td>&#9744;</td> <td> <p style="margin:0px">Fee paid previously with preliminary materials:</p></td></tr> <tr style="height:15px"> <td> <p style="margin:0px">&nbsp;</p></td> <td style="BORDER-BOTTOM: #000000 1px solid;" colspan="2"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px"> <td> <p style="margin:0px">&nbsp;</p></td> <td colspan="2"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px"> <td> <p style="margin:0px">&nbsp;</p></td> <td style="vertical-align:top;">&#9744;</td> <td> <p style="margin:0px">Check box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and identify the filing for which the offsetting fee was paid previously. Identify the previous filing by registration statement number, or the form or schedule and the date of its filing.&nbsp;</p></td></tr> <tr style="height:15px"> <td> <p style="margin:0px">&nbsp;</p></td> <td colspan="2"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px"> <td style="BORDER-BOTTOM: #000000 1px solid;" colspan="3"> <p style="MARGIN: 0px; text-align:justify;">Amount previously paid:</p></td></tr> <tr style="height:15px"> <td> <p style="margin:0px">&nbsp;</p></td> <td colspan="2"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px"> <td style="BORDER-BOTTOM: #000000 1px solid;" colspan="3"> <p style="MARGIN: 0px; text-align:justify;">Form, Schedule or Registration Statement No.:</p></td></tr> <tr style="height:15px"> <td colspan="3"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px"> <td style="BORDER-BOTTOM: #000000 1px solid;" colspan="3"> <p style="margin:0px">Filing Party:</p></td></tr> <tr style="height:15px"> <td colspan="3"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px"> <td style="BORDER-BOTTOM: #000000 1px solid;" colspan="3"> <p style="margin:0px">Date Filed:</p></td></tr></table> <p style="MARGIN: 0px; text-align:justify;">&nbsp;</p><table style="font-size:1px;width:100%" cellpadding="1"> <tr> <td style="border-bottom:2px solid;padding:1px;"></td></tr> <tr> <td style="border-bottom:5px solid;padding-bottom:1px;padding-top:1px;padding-left:1px;padding-right:1px;padding:1px;"></td></tr></table> <table style="border-spacing:0;font:10pt times new roman;width:100%" cellpadding="0"> <tr style="height:15px"> <td class="hpbhr">&nbsp;</td></tr> <tr style="height:15px"> <td style="TEXT-INDENT: 0px;"></td></tr> <tr style="height:15px"> <td><p style='page-break-after: always'></p></td></tr> <tr style="height:15px"> <td>&nbsp;</td></tr></table> <p style="MARGIN: 0px; text-align:justify;">&nbsp;</p><p style="MARGIN: 0px; text-align:justify;">&nbsp;</p><p style="MARGIN: 0px; TEXT-INDENT: 45px; text-align:justify;">Driver Management Company LLC, together with the other participants named herein (collectively, &#8220;Driver&#8221;), has filed a definitive proxy statement and accompanying WHITE proxy card with the Securities and Exchange Commission (the &#8220;SEC&#8221;) to be used to solicit votes for the election of its slate of director nominees at the upcoming annual meeting (the &#8220;2020 Annual Meeting&#8221;) of shareholders of First United Corporation, a Maryland corporation (the &#8220;Company&#8221; or &#8220;First United&#8221;).</p><p style="MARGIN: 0px; TEXT-INDENT: 45px; text-align:justify;">&nbsp;</p><p style="MARGIN: 0px; TEXT-INDENT: 45px; text-align:justify;"><strong>Item 1: On June 8, 2020, Driver issued the following open letter to shareholders:</strong></p><p style="MARGIN: 0px; text-align:justify;">&nbsp;</p><p style="MARGIN: 0px; text-align:right;">June 8, 2020</p><p style="MARGIN: 0px; text-align:justify;">First United Shareholders,</p><p style="MARGIN: 0px; text-align:justify;">&nbsp;</p><p style="MARGIN: 0px; text-align:justify;"><strong><u>FACT:</u></strong><strong> First United dramatically underperformed all its peers and relevant equity market benchmarks over an array of time horizons prior to Driver publicly calling for a sale in 2019. </strong></p><p style="MARGIN: 0px; text-align:justify;">&nbsp;</p><table style="border-spacing:0;text-align:justify;font:10pt times new roman;margin-left:auto;margin-right:auto;width:100%" cellpadding="0"> <tr style="height:15px"> <td style="width:4%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:4%;vertical-align:top;"> <p style="margin:0px"><font style="font-family:symbol">&#183;</font></p></td> <td style="vertical-align:top;">In terms of Total Shareholder Returns (&#8220;TSR&#8221;), First United has dramatically underperformed the broader bank indexes over the last one and three years and, over the long term, chronically underperformed all relevant peers sets and indexes.</td></tr></table> <p style="MARGIN: 0px; text-align:justify;">&nbsp;</p><table style="border-spacing:0;text-align:justify;font:10pt times new roman;margin-left:auto;margin-right:auto;width:100%" cellpadding="0"> <tr style="height:15px"> <td style="width:12%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:4%;vertical-align:top;"> <p style="margin:0px">&#9675; </p></td> <td style="vertical-align:top;"><em>Shareholders who purchased First United&#8217;s shares prior to the 2008-09 Crisis and held them through today have actually lost money. </em></td></tr></table> <p style="MARGIN: 0px; text-align:justify;">&nbsp;</p><table style="border-spacing:0;text-align:justify;font:10pt times new roman;margin-left:auto;margin-right:auto;width:100%" cellpadding="0"> <tr style="height:15px"> <td style="width:4%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:4%;vertical-align:top;"> <p style="margin:0px"><font style="font-family:symbol">&#183;</font></p></td> <td style="vertical-align:top;">In terms of Price to Tangible Book Value (&#8220;P/TBV&#8221;), First United has traded a consistent discount to peers&#8217; valuation over every pertinent time horizon dating back 20 years.</td></tr></table> <p style="MARGIN: 0px; text-align:justify;">&nbsp;</p><table style="border-spacing:0;text-align:justify;font:10pt times new roman;margin-left:auto;margin-right:auto;width:100%" cellpadding="0"> <tr style="height:15px"> <td style="width:12%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:4%;vertical-align:top;"> <p style="margin:0px">&#9675; </p></td> <td style="vertical-align:top;"><em>There have been times in which First United&#8217;s P/TBV is below liquidation value. </em></td></tr></table> <p style="MARGIN: 0px; text-align:justify;">&nbsp;</p><table style="border-spacing:0;text-align:justify;font:10pt times new roman;margin-left:auto;margin-right:auto;width:100%" cellpadding="0"> <tr style="height:15px"> <td style="width:4%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:4%;vertical-align:top;"> <p style="margin:0px"><font style="font-family:symbol">&#183;</font></p></td> <td style="vertical-align:top;">Over the long-term, First United has consistently underperformed peers based on three important metrics regarding profitability, asset quality and operating leverage:</td></tr></table> <p style="MARGIN: 0px; text-align:justify;">&nbsp;</p><table style="border-spacing:0;text-align:justify;font:10pt times new roman;margin-left:auto;margin-right:auto;width:100%" cellpadding="0"> <tr style="height:15px"> <td style="width:12%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:4%;vertical-align:top;"> <p style="margin:0px">&#9675; </p></td> <td style="vertical-align:top;"><em>Weak Core Return on Assets</em></td></tr> <tr style="height:15px"> <td> <p style="margin:0px">&nbsp;</p></td> <td style="vertical-align:top;"> <p style="margin:0px">&#9675; </p></td> <td style="vertical-align:top;"><em>High Non-Performing Assets to Assets</em></td></tr> <tr style="height:15px"> <td> <p style="margin:0px">&nbsp;</p></td> <td style="vertical-align:top;"> <p style="margin:0px">&#9675; </p></td> <td style="vertical-align:top;"><em>Poor Efficiency Ratio</em></td></tr></table> <p style="MARGIN: 0px; text-align:justify;">&nbsp;</p><table style="border-spacing:0;text-align:justify;font:10pt times new roman;margin-left:auto;margin-right:auto;width:100%" cellpadding="0"> <tr style="height:15px"> <td style="width:4%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:4%;vertical-align:top;"> <p style="margin:0px"><font style="font-family:symbol">&#183;</font></p></td> <td style="vertical-align:top;">Rather than heed the public calls of Driver and other shareholders to explore a sale when First United&#8217;s shares reached an all-time high of ~$24 per share in 2019, the Board rebuffed investors in favor of a standalone path and the Company&#8217;s shares now trade ~50% lower. First United&#8217;s shares have underperformed all of its peers and benchmarks since the pandemic rally began &#8211; signifying the market&#8217;s lack of confidence in the Board and its oversight of management.</td></tr></table> <p style="MARGIN: 0px; text-align:justify;">&nbsp;</p><table style="border-spacing:0;text-align:justify;font:10pt times new roman;margin-left:auto;margin-right:auto;width:100%" cellpadding="0"> <tr style="height:15px"> <td> <p style="margin:0px">&nbsp;</p></td> <td colspan="2"> <p style="MARGIN: 0px; text-align:justify;"><strong><u>FACT:</u> First United has an anti-shareholder, over-tenured Board that hides behind Maryland Corporate Law to try to disenfranchise shareholders.</strong></p></td></tr> <tr style="height:15px"> <td> <p style="margin:0px">&nbsp;</p></td> <td> <p style="margin:0px">&nbsp;</p></td> <td> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px"> <td style="width:4%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:4%;vertical-align:top;"> <p style="margin:0px"><font style="font-family:symbol">&#183;</font></p></td> <td style="vertical-align:top;">The elven-member Board&#8217;s average director tenure is more than 15 years, which far exceeds the &#8220;stale&#8221; criteria set by major institutions.</td></tr> <tr style="height:15px"> <td> <p style="margin:0px">&nbsp;</p></td> <td> <p style="margin:0px;text-indent:30px">&nbsp;</p></td> <td> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px"> <td> <p style="margin:0px">&nbsp;</p></td> <td style="vertical-align:top;"> <p style="margin:0px"><font style="font-family:symbol">&#183;</font></p></td> <td style="vertical-align:top;">More than 75% of the Board has no prior experience in the banking.</td></tr> <tr style="height:15px"> <td> <p style="margin:0px">&nbsp;</p></td> <td> <p style="margin:0px;text-indent:30px">&nbsp;</p></td> <td> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px"> <td> <p style="margin:0px">&nbsp;</p></td> <td style="vertical-align:top;"> <p style="margin:0px"><font style="font-family:symbol">&#183;</font></p></td> <td style="vertical-align:top;">The Board does not allow shareholders to amend the bylaws.</td></tr> <tr style="height:15px"> <td> <p style="margin:0px">&nbsp;</p></td> <td> <p style="margin:0px;text-indent:30px">&nbsp;</p></td> <td> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px"> <td> <p style="margin:0px">&nbsp;</p></td> <td style="vertical-align:top;"> <p style="margin:0px"><font style="font-family:symbol">&#183;</font></p></td> <td style="vertical-align:top;">The Board will not let shareholders vote to declassify the board, even though a prior proposal received support from more than 60% of the outstanding shares.</td></tr></table> <p style="MARGIN: 0px; text-align:justify;">&nbsp;</p><table style="border-spacing:0;text-align:justify;font:10pt times new roman;margin-left:auto;margin-right:auto;width:100%" cellpadding="0"> <tr style="height:15px"> <td style="width:12%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:4%;vertical-align:top;"> <p style="margin:0px">&#9675; </p></td> <td style="vertical-align:top;">First United&#8217;s super-majority voting threshold prevented the declassification proposal from passing, as did First United insiders who we believe voted against the proposal. </td></tr></table> <p style="MARGIN: 0px; text-align:justify;">&nbsp;</p><table style="border-spacing:0;font:10pt times new roman;width:100%" cellpadding="0"> <tr style="height:15px"> <td class="hpbhr">&nbsp;</td></tr> <tr style="height:15px"> <td style="BORDER-BOTTOM: black 1px solid; TEXT-INDENT: 0px;text-align:center;">2</td></tr> <tr style="height:15px"> <td><p style='page-break-after: always'></p></td></tr> <tr style="height:15px"> <td>&nbsp;</td></tr></table> <p style="margin:0px">&nbsp;</p><table style="border-spacing:0;text-align:justify;font:10pt times new roman;margin-left:auto;margin-right:auto;width:100%" cellpadding="0"> <tr style="height:15px"> <td style="width:4%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:4%;vertical-align:top;"> <p style="margin:0px"><font style="font-family:symbol">&#183;</font></p></td> <td style="vertical-align:top;">The Board sought to create an un-level playing field in this election contest by withholding standard shareholder lists and information from Driver (despite numerous normal-course requests) that prevented Driver from directly communicating with shareholders.</td></tr></table> <p style="MARGIN: 0px; text-align:justify;">&nbsp;</p><table style="border-spacing:0;text-align:justify;font:10pt times new roman;margin-left:auto;margin-right:auto;width:100%" cellpadding="0"> <tr style="height:15px"> <td style="width:12%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:4%;vertical-align:top;"> <p style="margin:0px">&#9675; </p></td> <td style="vertical-align:top;">First United used these same lists to communicate with shareholders themselves and disparage Driver and its nominees. </td></tr></table> <p style="MARGIN: 0px; text-align:justify;">&nbsp;</p><table style="border-spacing:0;text-align:justify;font:10pt times new roman;margin-left:auto;margin-right:auto;width:100%" cellpadding="0"> <tr style="height:15px"> <td style="width:4%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:4%;vertical-align:top;"> <p style="margin:0px"><font style="font-family:symbol">&#183;</font></p></td> <td style="vertical-align:top;">The Board keeps the Chairman and Chief Executive Officer roles combined despite shareholder concerns. Based on documents obtained through a Maryland Public Information Act request, we learned the Board instigated and sought to direct a state regulator&#8217;s investigation &#8211; which resulted in no violation of law &#8211; regarding Driver&#8217;s 2019 share purchases.</td></tr></table> <p style="MARGIN: 0px; text-align:justify;">&nbsp;</p><table style="border-spacing:0;text-align:justify;font:10pt times new roman;margin-left:auto;margin-right:auto;width:100%" cellpadding="0"> <tr style="height:15px"> <td style="width:12%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:4%;vertical-align:top;"> <p style="margin:0px">o </p></td> <td style="vertical-align:top;">The Board repeatedly lied to shareholders in proxy solicitation materials when it said First United did not instigate the investigation. </td></tr> <tr style="height:15px"> <td> <p style="margin:0px;text-indent:30px">&nbsp;</p></td> <td> <p style="margin:0px;text-indent:30px">&nbsp;</p></td> <td> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px"> <td> <p style="margin:0px">&nbsp;</p></td> <td style="vertical-align:top;"> <p style="margin:0px">o </p></td> <td style="vertical-align:top;">When no violation of law was found by the regulator, Frist United turned around and sued Driver in state court. </td></tr></table> <p style="MARGIN: 0px; text-align:justify;">&nbsp;</p><table style="border-spacing:0;text-align:justify;font:10pt times new roman;margin-left:auto;margin-right:auto;width:100%" cellpadding="0"> <tr style="height:15px"> <td> <p style="margin:0px">&nbsp;</p></td> <td colspan="2"> <p style="margin:0px"><strong><u>FACT:</u> There is an urgent need to refresh the First United Board with our slate of three highly-qualified and unaffiliated nominees, who are committed to restoring a shareholder-first mentality in the boardroom.</strong></p></td></tr> <tr style="height:15px"> <td style="width:4%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:4%;"> <p style="margin:0px">&nbsp;</p></td> <td></td></tr> <tr style="height:15px"> <td> <p style="margin:0px">&nbsp;</p></td> <td style="vertical-align:top;"> <p style="margin:0px"><font style="font-family:symbol">&#183;</font></p></td> <td style="vertical-align:top;">Our nominees &#8211; Michael J. Driscoll, Ed.D, Ethan C. Elzen and Lisa Narrell-Mead &#8211; are industry veterans and independent thinkers that can bring the following sorely-needed skills and perspectives to an out-of-touch Board:</td></tr></table> <p style="MARGIN: 0px; text-align:justify;">&nbsp;</p><table style="border-spacing:0;text-align:justify;font:10pt times new roman;margin-left:auto;margin-right:auto;width:100%" cellpadding="0"> <tr style="height:15px"> <td style="width:12%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:4%;vertical-align:top;"> <p style="margin:0px"><strong>&#9675;</strong> </p></td> <td style="vertical-align:top;"><strong><em><u>Strong Financial Services Backgrounds</u></em></strong> &#8211; Each member of our slate has at least two decades of experience working at top financial institutions, investment firms and banks. Michael Driscoll also has strong local ties as the Dean of the business school at Mt. Saint Mary&#8217;s University in Maryland. </td></tr> <tr style="height:15px"> <td> <p style="margin:0px;text-indent:30px">&nbsp;</p></td> <td> <p style="margin:0px;text-indent:30px">&nbsp;</p></td> <td> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px"> <td> <p style="margin:0px">&nbsp;</p></td> <td style="vertical-align:top;"> <p style="margin:0px"><strong>&#9675;</strong> </p></td> <td style="vertical-align:top;"><strong><em><u>Robust Risk Management Experience</u></em></strong> &#8211; The members of our slate have significant experience working with bank leadership teams to limit and mitigate excessive loan portfolio risks. </td></tr> <tr style="height:15px"> <td> <p style="margin:0px;text-indent:30px">&nbsp;</p></td> <td> <p style="margin:0px;text-indent:30px">&nbsp;</p></td> <td> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px"> <td> <p style="margin:0px">&nbsp;</p></td> <td style="vertical-align:top;"> <p style="margin:0px"><strong>&#9675;</strong> </p></td> <td style="vertical-align:top;"><strong><em><u>Significant Governance Expertise</u></em></strong><strong> &#8211; </strong>The members of our slate have served on various organizational boards &#8211; and worked with bank leadership teams to establish best-in-class protocols for executive compensation, conflict mitigation and transaction/M&amp;A situations. </td></tr> <tr style="height:15px"> <td> <p style="margin:0px;text-indent:30px">&nbsp;</p></td> <td> <p style="margin:0px;text-indent:30px">&nbsp;</p></td> <td> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px"> <td> <p style="margin:0px">&nbsp;</p></td> <td style="vertical-align:top;"> <p style="margin:0px"><strong>&#9675;</strong> </p></td> <td style="vertical-align:top;"><strong><em><u>Strategic Planning Proficiency</u></em></strong><strong> &#8211; </strong>As a result of their leadership backgrounds in the banking worlds, our slate understands how to optimize First United&#8217;s outdated brick-and-mortar footprint, reduce its high capital expenditures, upgrade its use of sub-optimal technology and improve its M&amp;A assessment approach.</td></tr> <tr style="height:15px"> <td> <p style="margin:0px;text-indent:30px">&nbsp;</p></td> <td> <p style="margin:0px;text-indent:30px">&nbsp;</p></td> <td> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px"> <td> <p style="margin:0px">&nbsp;</p></td> <td style="vertical-align:top;"> <p style="margin:0px"><strong>&#9675;</strong> </p></td> <td style="vertical-align:top;"><strong><em><u>Collaborative, Independent Mindsets</u></em></strong><strong> &#8211; </strong>Our nominees have no pre-conceived biases regarding a sale of First United and are fully committed to working with the incumbent directors in a collegial, open manner to deliver the best outcomes for shareholders. </td></tr></table> <p style="MARGIN: 0px; text-align:justify;">&nbsp;</p><table style="border-spacing:0;font:10pt times new roman;width:100%" cellpadding="0"> <tr style="height:15px"> <td class="hpbhr">&nbsp;</td></tr> <tr style="height:15px"> <td style="BORDER-BOTTOM: black 1px solid; TEXT-INDENT: 0px;"> <p style="MARGIN: 0px; text-align:center;">3</p></td></tr> <tr style="height:15px"> <td><p style='page-break-after: always'></p></td></tr> <tr style="height:15px"> <td>&nbsp;</td></tr></table> <p style="margin:0px">&nbsp;</p><table style="border-spacing:0;text-align:justify;font:10pt times new roman;margin-left:auto;margin-right:auto;width:100%" cellpadding="0"> <tr style="height:15px"> <td colspan="3"> <p style="margin:0px"><strong><u>FACT:</u></strong><strong> This election contest is not just about the future of First United, but ensuring publicly-traded banks and companies in Maryland know they cannot undermine corporate democracy and shareholders&#8217; rights without repercussion.</strong></p></td></tr> <tr style="height:15px"> <td> <p style="margin:0px">&nbsp;</p></td> <td> <p style="margin:0px">&nbsp;</p></td> <td> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px"> <td style="width:4%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:4%;vertical-align:top;"> <p style="margin:0px"><font style="font-family:symbol">&#183;</font></p></td> <td style="vertical-align:top;">Every investor with exposure to a Maryland-based company should view First United&#8217;s disenfranchisement of Driver as a flashing red light.</td></tr> <tr style="height:15px"> <td> <p style="margin:0px">&nbsp;</p></td> <td> <p style="margin:0px;text-indent:30px">&nbsp;</p></td> <td> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px"> <td> <p style="margin:0px">&nbsp;</p></td> <td style="vertical-align:top;"> <p style="margin:0px"><font style="font-family:symbol">&#183;</font></p></td> <td style="vertical-align:top;">If First United is rewarded for its abuse of shareholders&#8217; rights, we believe Maryland incorporated banks &#8211; including First United &#8211; may trade at a &#8220;bad governance discount&#8221; in the future.</td></tr></table> <p style="MARGIN: 0px; text-align:justify;">&nbsp;</p><table style="border-spacing:0;text-align:justify;font:10pt times new roman;margin-left:auto;margin-right:auto;width:100%" cellpadding="0"> <tr style="height:15px"> <td style="width:12%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:4%;vertical-align:top;"> <p style="margin:0px">&#9675; </p></td> <td style="vertical-align:top;">A Board that seeks to entrench itself through legislative and/or regulatory disenfranchisement should not be supported by shareholders.</td></tr></table> <p style="MARGIN: 0px; text-align:justify;">&nbsp;</p><table style="border-spacing:0;text-align:justify;font:10pt times new roman;margin-left:auto;margin-right:auto;width:100%" cellpadding="0"> <tr style="height:15px"> <td style="width:4%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:4%;vertical-align:top;"> <p style="margin:0px"><font style="font-family:symbol">&#183;</font></p></td> <td style="vertical-align:top;">This is why we firmly believe that a vote on First United&#8217;s blue card amounts to an endorsement of one of the most anti-shareholder Boards in all of Corporate America.</td></tr> <tr style="height:15px"> <td> <p style="margin:0px">&nbsp;</p></td> <td> <p style="margin:0px;text-indent:30px">&nbsp;</p></td> <td> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px"> <td> <p style="margin:0px">&nbsp;</p></td> <td style="vertical-align:top;"> <p style="margin:0px"><font style="font-family:symbol">&#183;</font></p></td> <td style="vertical-align:top;">Voting the <strong><u>WHITE</u> Proxy Card</strong> ahead of the Annual Meeting of Shareholders on June 11, 2020 will:</td></tr></table> <p style="MARGIN: 0px; text-align:justify;">&nbsp;</p><table style="border-spacing:0;text-align:justify;font:10pt times new roman;margin-left:auto;margin-right:auto;width:100%" cellpadding="0"> <tr style="height:15px"> <td style="width:12%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:4%;vertical-align:top;"> <p style="margin:0px">&#9675; </p></td> <td style="vertical-align:top;">Send a message to all Maryland companies that the state&#8217;s laws should not be used as entrenchment life rafts when investors want to hold derelict boards accountable; and</td></tr> <tr style="height:15px"> <td> <p style="margin:0px">&nbsp;</p></td> <td> <p style="margin:0px">&nbsp;</p></td> <td> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px"> <td> <p style="margin:0px">&nbsp;</p></td> <td style="vertical-align:top;"> <p style="margin:0px">&#9675; </p></td> <td style="vertical-align:top;">Ensure that three highly-qualified and independent individuals are added to First United&#8217;s boardroom &#8211; <strong>Michael J. Driscoll, Ed.D, Ethan C. Elzen and Lisa Narrell-Mead vow to always make sure First United shareholders are the top priority.</strong></td></tr></table> <p style="MARGIN: 0px; text-align:justify;">&nbsp;&nbsp;</p><p style="MARGIN: 0px; text-align:justify;">Sincerely,</p><p style="MARGIN: 0px; text-align:justify;">Abbott Cooper</p><p style="MARGIN: 0px; text-align:justify;">Managing Member</p><p style="MARGIN: 0px; text-align:justify;">Driver Management Company LLC</p><p style="MARGIN: 0px; text-align:justify;">&nbsp;</p><table style="border-spacing:0;font:10pt times new roman;width:100%" cellpadding="0"> <tr style="height:15px"> <td class="hpbhr">&nbsp;</td></tr> <tr style="height:15px"> <td style="BORDER-BOTTOM: black 1px solid; TEXT-INDENT: 0px;text-align:center;">4</td></tr></table> <p style="MARGIN: 0px; text-align:justify;">&nbsp;</p><body>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
