SEC Form 4

FORM 4		UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934 or Section 30(h) of the Investment Company Act of 1940	OMB APPROVAL OMB Number: 3235-0287 Estimated average burden hours per response: 0.5
	Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).

1. Name and Address of Reporting Person* GRANT WILLIAM B (Last) (First) (Middle) 19 SOUTH SECOND STREET P.O. BOX 9 (Street) OAKLAND MD 215500009 (City) (State) (Zip)	2. Issuer Name and Ticker or Trading Symbol FIRST UNITED CORP/MD/ [ FUNC ]	5. Relationship of Reporting Person(s) to Issuer (Check all applicable) X Director 10% Owner X Officer (give title below) Other (specify below) Chief Executive Officer
	3. Date of Earliest Transaction (Month/Day/Year) 12/18/2003
	4. If Amendment, Date of Original Filed (Month/Day/Year)	6. Individual or Joint/Group Filing (Check Applicable Line) X Form filed by One Reporting Person Form filed by More than One Reporting Person

Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1. Title of Security (Instr. 3)	2. Transaction Date (Month/Day/Year)	2A. Deemed Execution Date, if any (Month/Day/Year)	3. Transaction Code (Instr. 8)		4. Securities Acquired (A) or Disposed Of (D) (Instr. 3, 4 and 5)			5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4)	6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	7. Nature of Indirect Beneficial Ownership (Instr. 4)
			Code	V	Amount	(A) or (D)	Price
Common Stock	12/18/2003		X		4,685.35	A	$0	4,981.458(2)(3)(4)	D
Common Stock	12/18/2003		S		4,685.35(1)	D	$24.87	296.108	D
Common Stock								2,563.193(5)	I(6)	By 401(k)
Common Stock								5(7)	I(8)	By Daughter
Common Stock								178.766(9)	I(10)	By Son
Common Stock								5,214.503(11)	I(12)	By Spouse
Common Stock								166.086(13)	I	By Spouse/Daughter
Common Stock								309.33(14)	I	By Spouse/IRA(12)

Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned (e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security (Instr. 3)	2. Conversion or Exercise Price of Derivative Security	3. Transaction Date (Month/Day/Year)	3A. Deemed Execution Date, if any (Month/Day/Year)	4. Transaction Code (Instr. 8)		5. Number of Derivative Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5)		6. Date Exercisable and Expiration Date (Month/Day/Year)		7. Title and Amount of Securities Underlying Derivative Security (Instr. 3 and 4)		8. Price of Derivative Security (Instr. 5)	9. Number of derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4)	10. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	11. Nature of Indirect Beneficial Ownership (Instr. 4)
				Code	V	(A)	(D)	Date Exercisable	Expiration Date	Title	Amount or Number of Shares
Phantom Stock(15)	$0.000(16)	12/18/2003		X			4,685.35(1)(17)	(18)	(19)	Common Stock	4,685.35	$0	0.000	D

Explanation of Responses:

1. The reporting person engaged in an intra-plan transfer pursuant to which the shares of phantom stock were converted into cash that was invested in alternative investment options available under the First United Corporation deferred compensation plan.

2. Amount includes 6.00 of the 11.00 shares previously reported as held by daughter. These 6.00 shares are held by the reporting person and his daughter as joint tenants.

3. Amount does not include 4313.11 shares of common stock reported in previous reports as being held directly through a non-qualified deferred compensation plan. These deferred compensation shares were listed in error and should have been shown as phantom stock. See footnote 14.

4. Amount includes 9.1578 shares acquired under the First United Dividend Reinvestment Plan.

5. Between December 31, 2002 and the date of this report, the reporting person acquired 79.904 shares of common stock under the 401(k) plan.

6. Shares were previously designated as held directly through an ESOP, which was merged into the First United Corporation 401(k) plan in 2000. These shares should have been reported as being held indirectly.

7. Six of the 11 shares previously reported as held by daughter are held as joint tenants with the reporting person. Therefore, these six shares are included in the reporting person's direct holdings line item.

8. Shares have previously been reported as being held directly by daughter. The reporting person holds these shares as custodian for the benefit of his dauther, and the shares should have been reported as being held indirectly.

9. Amount includes 5.643 shares of common stock acquired under the First United Corporation dividend reinvestment plan.

10. Shares have previously been reported as being held directly by son. The reporting person holds these shares as custodian for the benefit of his son, and these shares should have been reported as being held indirectly.

11. Amount includes 164.591 shares of common stock acquired under the First United Corporation dividend reinvestment plan.

12. Shares have previously been reported as being held directly by spouse. These shares should have been reported as being held indirectly by spouse.

13. Amount includes 5.242 shares of common stock acquired under the First United Corporation dividend reinvestment plan.

14. Amount includes 9.93 shares of common stock acquired under the First United Corporation dividend reinvestment plan.

15. In previous reports, the reporting person has erroneously identified shares of phantom stock as actual shares of common stock held directly in a Non-Qualified Deferred Compensation Plan, including with respect to the acquisition of 1,000 shares on 4/16/1999, 2,000 shares on 3/31/2000, and 1,000 shares on 4/5/2001. These shares are actually deemed investments in shares of common stock, the market value of which is held in a Rabbi Trust. All references in any Form 4 or Form 5, or any amendment thereto, to common stock held directly by a Deferred Compensation Plan, should be deemed references to phantom stock.

16. Each share of phantom stock may be converted into 1 share of First United Corporation common stock.

17. Total includes shares of phantom stock acquired pursuant to the First United Corporation dividend reinvestment plan available to holders of common stock as follows: 43.42 shares acquired on 11/1/01 that were not previously reported; 180.6 shares acquired in 2002 that were not previously reported; and 148.22 shares acquired in 2003.

18. Shares of phantom stock are exercisable Immediately.

19. Shares of phantom stock were payable in cash or stock, at the election of the reporting person, upon the reporting person's termination of service as a director or an executive officer.

Remarks:

	By: /s/ William B. Grant	12/22/2003
	** Signature of Reporting Person	Date
Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
* If the form is filed by more than one reporting person, see Instruction 4 (b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
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