Fulton Financial (FULT)

SEVERANCE AGREEMENTS AND SURVIVORS' BENEFITS

Fulton Financial Corporation has entered into severance agreements with Messrs. Smith, Ashby and Nugent (the "Executives")² .  Under the terms of those agreements, certain limited severance benefits are payable in the event an Executive resigns or is discharged other than for cause following, and for reasons relating to, a change in control of Fulton Financial Corporation.  Specifically, in the event of such a discharge or resignation, the Executive would be entitled to receive from Fulton Financial Corporation an annual benefit consisting of his then effective base salary, certain fringe benefits in lieu of coverage under employee benefit plans and a supplemental retirement benefit in lieu of his continuing participation in the Fulton Financial Corporation employee retirement plans.  Such benefits would be payable, in the cases of Messrs. Smith, Ashby and Nugent, for a period of three years, beginning on the date of the Executive's discharge or resignation and continuing until (i) he elects to terminate benefits in order to accept employment with another financial services institution; (ii) the end of the year in which he attains the age of 65; or (iii) he dies, whichever first occurs.

Officers of Fulton Financial Corporation and certain of its bank subsidiaries as of April 1, 1992, who had been employed by the Corporation for at least five years as of that date, are eligible to participate in a survivors' benefit program.  This program provides the employee's spouse, in the event of the employee's death prior to retirement, with an annual income equal to the lesser of $25,000 or 25 percent of the employee's final annual salary.  This benefit is paid from the date of death until the employee's 65th birthday with a minimum of ten annual payments.  Messrs. Smith and Ashby participate in this program.

¹ The charter for the Executive Compensation Committee is available on Fulton Financial Corporation’s website: www.fult.com

² Messrs. Shreiner, Wenger and Hill, who became executive officers on January 1, 2006 also have severance agreements.  Messrs. Shreiner and Wenger have agreements that provide for payment for 18 months.  Mr. Hill’s severance agreement provides for payment for 12 months.

19