<PAGE>

                                                                     EXHIBIT 4.5

                               GUARANTEE AGREEMENT

                          FULTON FINANCIAL CORPORATION

                                 Dated as of [ ]

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                                TABLE OF CONTENTS

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<S>                                                                         <C>
                                    ARTICLE I

                         DEFINITIONS AND INTERPRETATION

SECTION 1.1   Definitions and Interpretation..............................     1

                                   ARTICLE II

                               TRUST INDENTURE ACT

SECTION 2.1  Trust Indenture Act; Application.............................     4
SECTION 2.2  Lists of Holders of Securities...............................     4
SECTION 2.3  Reports by the Guarantee Trustee.............................     5
SECTION 2.4  Periodic Reports.............................................     5
SECTION 2.5  Evidence of Compliance with Conditions Precedent.............     5
SECTION 2.6  Events of Default; Waiver....................................     5
SECTION 2.7  Notice of Events of Default..................................     6
SECTION 2.8  Conflicting Interests........................................     6

                                   ARTICLE III

               POWERS, DUTIES AND RIGHTS OF THE GUARANTEE TRUSTEE

SECTION 3.1  Powers and Duties of the Guarantee Trustee...................     6
SECTION 3.2  Certain Rights of the Guarantee Trustee......................     8
SECTION 3.3  Not Responsible for Recitals or Issuance of Guarantee........     9

                                   ARTICLE IV

                              THE GUARANTEE TRUSTEE

SECTION 4.1  The Guarantee Trustee; Eligibility...........................    10
SECTION 4.2  Appointment, Removal and Resignation of the Guarantee Trustee    10

                                    ARTICLE V

                                    GUARANTEE

SECTION 5.1  Guarantee....................................................    11
SECTION 5.2  Waiver of Notice and Demand..................................    11
SECTION 5.3  Obligations Not Affected.....................................    11
SECTION 5.4  Rights of Holders............................................    12
SECTION 5.5  Guarantee of Payment.........................................    13
</TABLE>

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SECTION 5.6  Subrogation..................................................    13
SECTION 5.7  Independent Obligations......................................    13

                                   ARTICLE VI

                    LIMITATION OF TRANSACTIONS; SUBORDINATION

SECTION 6.1  Limitation of Transactions...................................    13
SECTION 6.2  Ranking......................................................    14

                                   ARTICLE VII

                                   TERMINATION

SECTION 7.1  Termination..................................................    14

                                  ARTICLE VIII

                                 INDEMNIFICATION

SECTION 8.1  Exculpation..................................................    15
SECTION 8.2  Indemnification..............................................    15
SECTION 8.3  Compensation; Reimbursement of Expenses......................    16

                                   ARTICLE IX

                                  MISCELLANEOUS

SECTION 9.1  Successors and Assigns.......................................    17
SECTION 9.2  Amendments...................................................    17
SECTION 9.3  Notices......................................................    17
SECTION 9.4  Benefit......................................................    18
SECTION 9.5  Governing Law................................................    18
SECTION 9.6  Counterparts.................................................    18
</TABLE>

                                       ii
<PAGE>

                             CROSS REFERENCE TABLE*

<TABLE>
<CAPTION>
Section of Trust
Indenture Act of                                                                   Section of
1939, as amended                                                              Guarantee Agreement
----------------                                                              -------------------
<S>                                                                           <C>
     310(a)        ........................................................          4.1(a)
     310(b)        ........................................................   2.2(b), 2.8, 4.1(c)
     310(c)        ........................................................           N/A
     311(a)        ........................................................          2.2(b)
     311(b)        ........................................................           [ ]
     311(c)        ........................................................           N/A
     312(a)        ........................................................          2.2(a)
     312(b)        ........................................................          2.2(b)
     312(c)        ........................................................           N/A
       313         ........................................................           2.3
     314(a)        ........................................................           2.4
     314(b)        ........................................................           N/A
     314(c)        ........................................................           2.5
     314(d)        ........................................................           N/A
     314(e)        ........................................................      1.1, 2.5, 3.2
     314(f)        ........................................................         2.1, 3.2
     315(a)        ........................................................      3.1(d), 3.2(a)
     315(b)        ........................................................           2.7
     315(c)        ........................................................          3.1(c)
     315(d)        ........................................................   3.1(d), 3.2(a), 8.1
     315(e)        ........................................................           N/A
     316(a)        ........................................................      1.1, 2.6, 5.4
     316(b)        ........................................................         5.3, 5.4
     316(c)        ........................................................        9.2
     317(a)        ........................................................           N/A
     317(b)        ........................................................           N/A
     318(a)        ........................................................          2.1(a)
     318(b)        ........................................................          2.1(b)
     318(c)        ........................................................          2.1(b)
</TABLE>

----------------
*     This Cross-Reference Table does not constitute part of this Guarantee
      Agreement and shall not affect the interpretation of any of its terms or
      provisions.

<PAGE>

                               GUARANTEE AGREEMENT

            This GUARANTEE AGREEMENT, dated as of [ ] (this "Guarantee"), is
executed and delivered by Fulton Financial Corporation, a Pennsylvania
corporation (the "Guarantor"), and Wilmington Trust Company, a Delaware banking
corporation, as trustee (the "Guarantee Trustee"), for the benefit of the
Holders (as defined herein) from time to time of the Capital Securities (as
defined herein) of Fulton Capital Trust I, a Delaware statutory trust (the
"Issuer").

            WHEREAS, pursuant to an Amended and Restated Declaration of Trust,
dated as of [ ] (the "Declaration"), among the trustees of the Issuer named
therein, the Guarantor, as sponsor, the Administrators of the Issuer named
therein and the Holders from time to time of undivided beneficial interests in
the assets of the Issuer, the Issuer is issuing on the date hereof 150,000
capital securities, having an aggregate Liquidation Amount of $150,000,000,
designated in the Declaration as the [ ]% Capital Securities (collectively the
"Capital Securities"); and

            WHEREAS, as incentive for the Holders to purchase the Capital
Securities, the Guarantor desires irrevocably and unconditionally to agree, to
the extent set forth in this Guarantee, to pay to the Holders of Capital
Securities the Guarantee Payments (as defined herein) and to make certain other
payments on the terms and conditions set forth herein.

            NOW, THEREFORE, in consideration of the purchase by each Holder of
the Capital Securities, which purchase the Guarantor hereby agrees shall benefit
the Guarantor, the Guarantor executes and delivers this Guarantee for the
benefit of the Holders.

                                   ARTICLE I

                         DEFINITIONS AND INTERPRETATION

            SECTION 1.1 Definitions and Interpretation.

            In this Guarantee, unless the context otherwise requires:

            (a) capitalized terms used in this Guarantee but not defined in the
preamble above have the respective meanings assigned to them in this Section
1.1;

            (b) a term defined anywhere in this Guarantee has the same meaning
throughout;

            (c) all references to "the Guarantee" or "this Guarantee" are to
this Guarantee as modified, supplemented or amended from time to time;

            (d) all references in this Guarantee to Articles and Sections are to
Articles and Sections of this Guarantee, unless otherwise specified;

            (e) a term defined in the Declaration as of the date of execution of
this Guarantee has the same meaning when used in this Guarantee, unless
otherwise defined in this Guarantee or unless the context otherwise requires;

<PAGE>

            (f) a term defined in the Trust Indenture Act, as defined herein,
has the same meaning when used in this Guarantee, unless otherwise defined in
this Guarantee or unless the context otherwise requires; and

            (g) a reference to the singular includes the plural and vice versa.

            "Common Securities" has the meaning specified in the Declaration.

            "Corporate Trust Office" means the office of the Guarantee Trustee
at which at any particular time its corporate trust business shall be
principally administered, which at all times shall be located within the United
States and at the time of the execution of this Guarantee shall be Rodney Square
North, 1100 North Market Street, Wilmington, DE 19890-0001.

            "Covered Person" means any Holder of Capital Securities.

            "Debt Security Issuer" means Fulton Financial Corporation, or any
permitted successor entity resulting from any consolidation, amalgamation,
merger or other business combination, in its capacity as issuer of the Debt
Securities.

            "Debt Securities" means the junior subordinated debt securities of
the Debt Security Issuer that are designated in the Indenture as the "[ ]%
Junior Subordinated Deferrable Interest Debt Securities due [ ]" and held by the
Institutional Trustee (as defined in the Declaration) of the Issuer.

            "Event of Default" has the meaning set forth in Section 2.6.

            "Extension Period" has the meaning specified in the Indenture.

            "Guarantee Payments" means with respect to the payments or
distributions described in (i) - (iii) below relating to the Capital Securities,
without duplication, to the extent not paid or made by the Issuer: (i) any
accrued and unpaid Distributions (as defined in the Declaration) which are
required to be paid on such Capital Securities to the extent the Issuer has
funds legally available in the Property Account (as defined in the Declaration)
therefor at such time, (ii) the price payable upon the redemption of any Capital
Securities, to the extent the Issuer has funds legally available in the Property
Account therefor at such time, with respect to the redemption of the Capital
Securities by the Issuer in accordance with the terms of such Capital
Securities, and (iii) upon a voluntary or involuntary liquidation, dissolution,
winding-up or termination of the Issuer (other than in connection with the
distribution of Debt Securities to the Holders of the Capital Securities in
exchange therefor as provided in the Declaration), the lesser of (a) the
aggregate of the Liquidation Amount of the Capital Securities and all accrued
and unpaid Distributions on the Capital Securities to the date of payment, to
the extent the Issuer has funds legally available in the Property Account
therefor at such time, and (b) the amount of assets of the Issuer remaining
available for distribution to Holders in liquidation of the Issuer after
satisfaction of liabilities to creditors of the Issuer as required by applicable
law (in the case of either (a) or (b), the "Liquidation Distribution").

                                       2
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            "Guarantee Trustee" means Wilmington Trust Company, until a
Successor Guarantee Trustee has been appointed and has accepted such appointment
pursuant to the terms of this Guarantee and thereafter means each such Successor
Guarantee Trustee.

            "Holder" means any Person in whose name any Capital Securities are
registered on the books and records of the Issuer; provided, however, that, in
determining whether the holders of the requisite percentage of Capital
Securities have given any request, notice, consent or waiver hereunder, "Holder"
shall not include the Guarantor or any Affiliate of the Guarantor.

            "Indemnified Person" means the Guarantee Trustee (including in its
individual capacity), any Affiliate of the Guarantee Trustee, or any officers,
directors, shareholders, members, partners, employees, representatives,
nominees, custodians or agents of the Guarantee Trustee.

            "Indenture" means the Indenture, dated as of [ ], between the Debt
Security Issuer and Wilmington Trust Company, not in its individual capacity but
solely as trustee, and any indenture supplemental thereto pursuant to which the
Debt Securities are to be issued to the Institutional Trustee of the Issuer.

            "Liquidation Distribution" has the meaning set forth in the
definition of "Guarantee Payments" herein.

            "List of Holders" has the meaning set forth in Section 2.2(a).

            "Majority in Liquidation Amount of the Capital Securities" means,
except as provided by the Trust Indenture Act, Holder(s) of outstanding Capital
Securities, voting together as a single class, but separately from the holders
of Common Securities, of more than 50% of the aggregate Liquidation Amount
(including the amount that would be paid upon redemption, liquidation or
otherwise on the date upon which the voting percentages are determined, plus
unpaid Distributions accrued thereon to such date) of all Capital Securities
then outstanding.

            "Officer's Certificate" means, with respect to any Person, a
certificate signed by one Authorized Officer of such Person. Any Officer's
Certificate delivered with respect to compliance with a condition or covenant
provided for in this Guarantee shall include:

            (a) a statement that such officer signing the Officer's Certificate
has read the covenant or condition and the definitions relating thereto;

            (b) a brief statement of the nature and scope of the examination or
investigation undertaken by such officer in rendering the Officer's Certificate;

            (c) a statement that such officer has made such examination or
investigation as, in such officer's opinion, is necessary to enable such officer
to express an informed opinion as to whether or not such covenant or condition
has been complied with; and

            (d) a statement as to whether, in the opinion of such officer, such
condition or covenant has been complied with.

                                       3
<PAGE>

            "Person" means a legal person, including any individual,
corporation, estate, partnership, joint venture, association, joint stock
company, limited liability company, trust, unincorporated association, or
government or any agency or political subdivision thereof, or any other entity
of whatever nature.

            "Responsible Officer" means, with respect to the Guarantee Trustee,
any officer within the Corporate Trust Office of the Guarantee Trustee with
direct responsibility for the administration of any matters relating to this
Guarantee, including any vice president, any assistant vice president, any
secretary, any assistant secretary, the treasurer, any assistant treasurer, any
trust officer or other officer of the Corporate Trust Office of the Guarantee
Trustee customarily performing functions similar to those performed by any of
the above designated officers and also means, with respect to a particular
corporate trust matter, any other officer to whom such matter is referred
because of that officer's knowledge of and familiarity with the particular
subject.

            "Successor Guarantee Trustee" means a successor Guarantee Trustee
possessing the qualifications to act as Guarantee Trustee under Section 4.1.

            "Trust Indenture Act" shall mean the Trust Indenture Act of 1939, as
amended.

            "Trust Securities" means the Common Securities and the Capital
Securities, collectively.

                                   ARTICLE II

                               TRUST INDENTURE ACT

            SECTION 2.1 Trust Indenture Act; Application

            (a) This Guarantee is subject to the provisions of the Trust
Indenture Act that are required to be part of this Guarantee and shall, to the
extent applicable, be governed by such provisions.

            (b) If and to the extent that any provision of this Guarantee
limits, qualifies or conflicts with the duties imposed by Sections 310 to 317,
inclusive, of the Trust Indenture Act, such imposed duties shall control. If any
provision of this Guarantee modifies or excludes any provision of the Trust
Indenture Act that may be so modified or excluded, the modified or excluded
provision of the Trust Indenture Act shall be deemed to apply to this Guarantee
as so modified or excluded, as the case may be.

            SECTION 2.2 Lists of Holders of Securities

            (a) The Guarantor shall provide the Guarantee Trustee (unless the
Guarantee Trustee is otherwise the registrar of the Capital Securities) with a
list, in such form as the Guarantee Trustee may reasonably require, of the names
and addresses of the Holders ("List of Holders") as of such date, (i) within 14
days after each record date for payment of Distributions (as defined in the
Declaration), and (ii) at any other time within 30 days of receipt by the
Guarantor of a written request for a List of Holders as of a date no more than
14 days before such

                                       4
<PAGE>

List of Holders is given to the Guarantee Trustee; provided, however, that the
Guarantor shall not be obligated to provide such List of Holders at any time the
List of Holders does not differ from the most recent List of Holders given to
the Guarantee Trustee by the Guarantor. The Guarantee Trustee may destroy any
List of Holders previously given to it upon receipt of a new List of Holders.

            (b) The Guarantee Trustee shall comply with its obligations under
Sections 310(b), 311(a) and Section 312(b) of the Trust Indenture Act.

            SECTION 2.3 Reports by the Guarantee Trustee

            Within 60 days after the date hereof, and no later than the
anniversary date hereof in each succeeding year, the Guarantee Trustee shall
provide to the Holders such reports as are required by Section 313 of the Trust
Indenture Act, if any, in the form and in the manner provided by Section 313 of
the Trust Indenture Act. The Guarantee Trustee shall also comply with the
requirements of Section 313(d) of the Trust Indenture Act.

            SECTION 2.4 Periodic Reports

            The Guarantor shall provide to the Guarantee Trustee such documents,
reports and information (if any) as are required by Section 314 of the Trust
Indenture Act and the compliance certificate required by Section 314 of the
Trust Indenture Act in the form, in the manner and at the times required by
Section 314 of the Trust Indenture Act. Delivery of such reports, information
and documents to the Guarantee Trustee is for informational purposes only, and
the Guarantee Trustee's receipt of such shall not constitute constructive notice
of any information contained therein or determinable from information contained
therein, including the Guarantor's compliance with any of its covenants
hereunder (as to which the Guarantee Trustee is entitled to rely exclusively on
Officer's Certificates).

            SECTION 2.5 Evidence of Compliance with Conditions Precedent

            The Guarantor shall provide to the Guarantee Trustee such evidence
of compliance with the conditions precedent, if any, provided for in this
Guarantee that relate to any of the matters set forth in Section 314(c) of the
Trust Indenture Act. Any certificate or opinion required to be given by an
officer pursuant to Section 314(c)(1) may be given in the form of an Officer's
Certificate.

            SECTION 2.6 Events of Default; Waiver

            (a) An "Event of Default" under this Guarantee will occur upon the
failure of the Guarantor to perform any of its payment or other obligations
hereunder.

            (b) The Holders of a Majority in Liquidation Amount of the Capital
Securities may, by vote, on behalf of all of the Holders, waive any past Event
of Default and its consequences. Upon such waiver, any such Event of Default
shall cease to exist, and any Event of Default arising therefrom shall be deemed
to have been cured, for every purpose of this Guarantee, but no such waiver
shall extend to any subsequent or other default or Event of Default or impair
any right consequent thereon.

                                       5
<PAGE>

            SECTION 2.7 Notice of Events of Default

            (a) The Guarantee Trustee shall, within 90 days after the occurrence
of an Event of Default with respect to this Guarantee actually known to a
Responsible Officer of the Guarantee Trustee, transmit by mail, first class
postage prepaid, to all Holders, notices of all such Events of Default, unless
such Events of Default have been cured before the giving of such notice;
provided, however, that, except in the case of an Event of Default arising from
the non-payment of any Guarantee Payment, the Guarantee Trustee shall be
protected in withholding such notice if and so long as a Responsible Officer of
the Guarantee Trustee in good faith determines that the withholding of such
notice is in the interests of the Holders.

            (b) The Guarantee Trustee shall not be deemed to have knowledge of
any Event of Default unless the Guarantee Trustee shall have received written
notice, or a Responsible Officer of the Guarantee Trustee charged with the
administration of the Declaration shall have obtained actual knowledge, of such
Event of Default.

            SECTION 2.8 Conflicting Interests

            The Declaration shall be deemed to be specifically described in this
Guarantee for the purposes of clause (i) of the first proviso contained in
Section 310(b) of the Trust Indenture Act.

                                   ARTICLE III

               POWERS, DUTIES AND RIGHTS OF THE GUARANTEE TRUSTEE

            SECTION 3.1 Powers and Duties of the Guarantee Trustee

            (a) This Guarantee shall be held by the Guarantee Trustee for the
benefit of the Holders of the Capital Securities, and the Guarantee Trustee
shall not transfer this Guarantee to any Person except a Holder of Capital
Securities exercising his or her rights pursuant to Section 5.4(b) or to a
Successor Guarantee Trustee on acceptance by such Successor Guarantee Trustee of
its appointment to act as Successor Guarantee Trustee. The right, title and
interest of the Guarantee Trustee shall automatically vest in any Successor
Guarantee Trustee, and such vesting and cessation of title shall be effective
whether or not conveyancing documents have been executed and delivered pursuant
to the appointment of such Successor Guarantee Trustee.

            (b) If an Event of Default actually known to a Responsible Officer
of the Guarantee Trustee has occurred and is continuing, the Guarantee Trustee
shall enforce this Guarantee for the benefit of the Holders of the Capital
Securities.

            (c) The Guarantee Trustee, before the occurrence of any Event of
Default and after the curing or waiving of all Events of Default that may have
occurred, shall undertake to perform only such duties as are specifically set
forth in this Guarantee, and no implied covenants shall be read into this
Guarantee against the Guarantee Trustee. In case an Event of Default has
occurred (that has not been cured or waived pursuant to Section 2.6(b)) and is
actually known to a Responsible Officer of the Guarantee Trustee, the Guarantee
Trustee shall exercise such of the rights and powers vested in it by this
Guarantee, and use the same degree of care and skill in its

                                       6
<PAGE>

exercise thereof, as a prudent person would exercise or use under the
circumstances in the conduct of his or her own affairs.

            (d) No provision of this Guarantee shall be construed to relieve the
Guarantee Trustee from liability for its own negligent action, its own negligent
failure to act, or its own willful misconduct or bad faith, except that:

                  (i) prior to the occurrence of any Event of Default and after
      the curing or waiving of all Events of Default that may have occurred:

                        (A) the duties and obligations of the Guarantee Trustee
                  shall be determined solely by the express provisions of this
                  Guarantee, and the Guarantee Trustee shall not be liable
                  except for the performance of such duties and obligations as
                  are specifically set forth in this Guarantee, and no implied
                  covenants or obligations shall be read into this Guarantee
                  against the Guarantee Trustee; and

                        (B) in the absence of bad faith on the part of the
                  Guarantee Trustee, the Guarantee Trustee may conclusively
                  rely, as to the truth of the statements and the correctness of
                  the opinions expressed therein, upon any certificates or
                  opinions furnished to the Guarantee Trustee and conforming to
                  the requirements of this Guarantee; provided, however that in
                  the case of any such certificates or opinions furnished to the
                  Guarantee Trustee, the Guarantee Trustee shall be under a duty
                  to examine the same to determine whether or not on their face
                  they conform to the requirements of this Guarantee;

                  (ii) the Guarantee Trustee shall not be liable for any error
      of judgment made in good faith by a Responsible Officer of the Guarantee
      Trustee, unless it shall be proved that such Responsible Officer of the
      Guarantee Trustee or the Guarantee Trustee was negligent in ascertaining
      the pertinent facts upon which such judgment was made;

                  (iii) the Guarantee Trustee shall not be liable with respect
      to any action taken or omitted to be taken by it in good faith in
      accordance with the written direction of the Holders of a Majority in
      Liquidation Amount of the Capital Securities relating to the time, method
      and place of conducting any proceeding for any remedy available to the
      Guarantee Trustee, or exercising any trust or power conferred upon the
      Guarantee Trustee under this Guarantee; and

                  (iv) no provision of this Guarantee shall require the
      Guarantee Trustee to expend or risk its own funds or otherwise incur
      personal financial liability in the performance of any of its duties or in
      the exercise of any of its rights or powers, if the Guarantee Trustee
      shall have reasonable grounds for believing that the repayment of such
      funds is not reasonably assured to it under the terms of this Guarantee,
      or security and indemnity, reasonably satisfactory to the Guarantee
      Trustee, against such risk or liability is not reasonably assured to it.

                                       7
<PAGE>

            SECTION 3.2 Certain Rights of the Guarantee Trustee

            (a) Subject to the provisions of Section 3.1:

                  (i) The Guarantee Trustee may conclusively rely, and shall be
      fully protected in acting or refraining from acting upon, any resolution,
      certificate, statement, instrument, opinion, report, notice, request,
      direction, consent, order, bond, debt security, note, other evidence of
      indebtedness or other paper or document believed by it to be genuine and
      to have been signed, sent or presented by the proper party or parties.

                  (ii) Any direction or act of the Guarantor contemplated by
      this Guarantee shall be sufficiently evidenced by an Officer's
      Certificate.

                  (iii) Whenever, in the administration of this Guarantee, the
      Guarantee Trustee shall deem it desirable that a matter be proved or
      established before taking, suffering or omitting any action hereunder, the
      Guarantee Trustee (unless other evidence is herein specifically
      prescribed) may, in the absence of bad faith on its part, request and
      conclusively rely upon an Officer's Certificate of the Guarantor which,
      upon receipt of such request, shall be promptly delivered by the
      Guarantor.

                  (iv) The Guarantee Trustee shall have no duty to see to any
      recording, filing or registration of any instrument or other writing (or
      any rerecording, refiling or reregistration thereof).

                  (v) The Guarantee Trustee may consult with counsel of its
      selection, and the advice or opinion of such counsel with respect to legal
      matters shall be full and complete authorization and protection in respect
      of any action taken, suffered or omitted by it hereunder in good faith and
      in accordance with such advice or opinion. Such counsel may be counsel to
      the Guarantor or any of its Affiliates and may include any of its
      employees. The Guarantee Trustee shall have the right at any time to seek
      instructions concerning the administration of this Guarantee from any
      court of competent jurisdiction.

                  (vi) The Guarantee Trustee shall be under no obligation to
      exercise any of the rights or powers vested in it by this Guarantee at the
      request or direction of any Holder, unless such Holder shall have provided
      to the Guarantee Trustee such security and indemnity, reasonably
      satisfactory to the Guarantee Trustee, against the costs, expenses
      (including attorneys' fees and expenses and the expenses of the Guarantee
      Trustee's agents, nominees or custodians) and liabilities that might be
      incurred by it in complying with such request or direction, including such
      reasonable advances as may be requested by the Guarantee Trustee;
      provided, however, that nothing contained in this Section 3.2(a)(vi) shall
      be taken to relieve the Guarantee Trustee, upon the occurrence of an Event
      of Default, of its obligation to exercise the rights and powers vested in
      it by this Guarantee.

                  (vii) The Guarantee Trustee shall have no obligation to make
      any investigation into the facts or matters stated in any resolution,
      certificate, statement, instrument, opinion, report, notice, request,
      direction, consent, order, bond, debt security, note, other evidence of
      indebtedness or other paper or document, but the Guarantee

                                       8
<PAGE>

      Trustee, in its discretion, may make such further inquiry or investigation
      into such facts or matters as it may see fit.

                  (viii) The Guarantee Trustee may execute any of the trusts or
      powers hereunder or perform any duties hereunder either directly or by or
      through agents, nominees, custodians or attorneys, and the Guarantee
      Trustee shall not be responsible for any misconduct or negligence on the
      part of any such person appointed with due care by it hereunder.

                  (ix) Any action taken by the Guarantee Trustee or its agents
      hereunder shall bind the Holders of the Capital Securities, and the
      signature of the Guarantee Trustee or its agents alone shall be sufficient
      and effective to perform any such action. No third party shall be required
      to inquire as to the authority of the Guarantee Trustee to so act or as to
      its compliance with any of the terms and provisions of this Guarantee,
      both of which shall be conclusively evidenced by the Guarantee Trustee's
      or its agent's taking such action.

                  (x) Whenever in the administration of this Guarantee the
      Guarantee Trustee shall deem it desirable to receive instructions with
      respect to enforcing any remedy or right or taking any other action
      hereunder, the Guarantee Trustee (A) may request instructions from the
      Holders of a Majority in Liquidation Amount of the Capital Securities, (B)
      may refrain from enforcing such remedy or right or taking such other
      action until such instructions are received and (C) shall be protected in
      conclusively relying on or acting in accordance with such instructions.

                  (xi) The Guarantee Trustee shall not be liable for any action
      taken, suffered, or omitted to be taken by it in good faith, without
      negligence and reasonably believed by it to be authorized or within the
      discretion or rights or powers conferred upon it by this Guarantee.

            (b) No provision of this Guarantee shall be deemed to impose any
duty or obligation on the Guarantee Trustee to perform any act or acts or
exercise any right, power, duty or obligation conferred or imposed on it, in any
jurisdiction in which it shall be illegal or in which the Guarantee Trustee
shall be unqualified or incompetent in accordance with applicable law to perform
any such act or acts or to exercise any such right, power, duty or obligation.
No permissive power or authority available to the Guarantee Trustee shall be
construed to be a duty.

            SECTION 3.3 Not Responsible for Recitals or Issuance of Guarantee

            The recitals contained in this Guarantee shall be taken as the
statements of the Guarantor, and the Guarantee Trustee does not assume any
responsibility for their correctness. The Guarantee Trustee makes no
representation as to the validity or sufficiency of this Guarantee.

                                       9
<PAGE>

                                   ARTICLE IV

                              THE GUARANTEE TRUSTEE

            SECTION 4.1 The Guarantee Trustee; Eligibility

            (a) There shall at all times be a Guarantee Trustee which shall:

                  (i) not be an Affiliate of the Guarantor; and

                  (ii) be a corporation or national association organized and
      doing business under the laws of the United States of America or any state
      thereof or of the District of Columbia, or other Person permitted by the
      Securities and Exchange Commission to act as an indenture trustee under
      the Trust Indenture Act, authorized under such laws to exercise corporate
      trust powers, having a combined capital and surplus of at least fifty
      million U.S. dollars ($50,000,000), and subject to supervision or
      examination by federal, state or District of Columbia authority. If such
      corporation, national association or other Person publishes reports of
      condition at least annually, pursuant to law or to the requirements of the
      supervising or examining authority referred to above, then, for the
      purposes of this Section 4.1(a)(ii), and to the extent permitted by the
      Trust Indenture Act, the combined capital and surplus of such corporation,
      national association or other Person shall be deemed to be its combined
      capital and surplus as set forth in its most recent report of condition so
      published.

            (b) If at any time the Guarantee Trustee shall cease to be eligible
to so act under Section 4.1(a), the Guarantee Trustee shall immediately resign
in the manner and with the effect set forth in Section 4.2(c).

            (c) If the Guarantee Trustee has or shall acquire any "conflicting
interest" within the meaning of Section 310(b) of the Trust Indenture Act, the
Guarantee Trustee and Guarantor shall in all respects comply with the provisions
of Section 310(b) of the Trust Indenture Act.

            SECTION 4.2 Appointment, Removal and Resignation of the Guarantee
Trustee

            (a) Subject to Section 4.2(b), the Guarantee Trustee may be
appointed or removed without cause at any time by the Guarantor except during an
Event of Default.

            (b) The Guarantee Trustee shall not be removed in accordance with
Section 4.2(a) until a Successor Guarantee Trustee has been appointed and has
accepted such appointment by written instrument executed by such Successor
Guarantee Trustee and delivered to the Guarantor.

            (c) The Guarantee Trustee shall hold office until a Successor
Guarantee Trustee shall have been appointed or until its removal or resignation.
The Guarantee Trustee may resign from office (without need for prior or
subsequent accounting) by an instrument in writing executed by the Guarantee
Trustee and delivered to the Guarantor, which resignation

                                       10
<PAGE>

shall not take effect until a Successor Guarantee Trustee has been appointed,
subject to Section 4.1, and has accepted such appointment by an instrument in
writing executed by such Successor Guarantee Trustee and delivered to the
Guarantor and the resigning Guarantee Trustee.

            (d) If no Successor Guarantee Trustee shall have been appointed and
accepted appointment as provided in this Section 4.2 within 60 days after
delivery of an instrument of removal or resignation, the Guarantee Trustee
resigning or being removed may petition any court of competent jurisdiction for
appointment of a Successor Guarantee Trustee. Such court may thereupon, after
prescribing such notice, if any, as it may deem proper, appoint a Successor
Guarantee Trustee.

            (e) No Guarantee Trustee shall be liable for the acts or omissions
to act of any Successor Guarantee Trustee.

            (f) Upon termination of this Guarantee or removal or resignation of
the Guarantee Trustee pursuant to this Section 4.2, the Guarantor shall pay to
the Guarantee Trustee all amounts owing to the Guarantee Trustee under Sections
8.2 and 8.3 accrued to the date of such termination, removal or resignation.

                                   ARTICLE V

                                   GUARANTEE

            SECTION 5.1 Guarantee

            (a) The Guarantor irrevocably and unconditionally agrees to pay in
full to the Holders the Guarantee Payments (without duplication of amounts
theretofore paid by the Issuer), as and when due, regardless of any defense
(except defense of payment by the Issuer), right of set-off or counterclaim that
the Issuer may have or assert. The Guarantor's obligation to make a Guarantee
Payment may be satisfied by direct payment of the required amounts by the
Guarantor to the Holders or by causing the Issuer to pay such amounts to the
Holders.

            SECTION 5.2 Waiver of Notice and Demand

            The Guarantor hereby waives notice of acceptance of this Guarantee
and of any liability to which it applies or may apply, presentment, demand for
payment, any right to require a proceeding first against the Issuer or any other
Person before proceeding against the Guarantor, protest, notice of nonpayment,
notice of dishonor, notice of redemption and all other notices and demands.

            SECTION 5.3 Obligations Not Affected

            The obligations, covenants, agreements and duties of the Guarantor
under this Guarantee shall in no way be affected or impaired by reason of the
happening from time to time of any of the following:

                                       11
<PAGE>

            (a) the release or waiver, by operation of law or otherwise, of the
performance or observance by the Issuer of any express or implied agreement,
covenant, term or condition relating to the Capital Securities to be performed
or observed by the Issuer;

            (b) the extension of time for the payment by the Issuer of all or
any portion of the Distributions, the price payable upon the redemption of the
Capital Securities, the Liquidation Distribution or any other sums payable under
the terms of the Capital Securities or the extension of time for the performance
of any other obligation under, arising out of, or in connection with, the
Capital Securities (other than an extension of time for the payment of the
Distributions, the price payable upon the redemption of the Capital Securities,
the Liquidation Distribution or other sums payable that results from the
extension of any interest payment period on the Debt Securities);

            (c) any failure, omission, delay or lack of diligence on the part of
the Holders to enforce, assert or exercise any right, privilege, power or remedy
conferred on the Holders pursuant to the terms of the Capital Securities, or any
action on the part of the Issuer granting indulgence or extension of any kind;

            (d) the voluntary or involuntary liquidation, dissolution, sale of
any collateral, receivership, insolvency, bankruptcy, assignment for the benefit
of creditors, reorganization, arrangement, composition or readjustment of debt
of, or other similar proceedings affecting, the Issuer or any of the assets of
the Issuer;

            (e) any invalidity of, or defect or deficiency in, the Capital
Securities;

            (f) the settlement or compromise of any obligation guaranteed hereby
or hereby incurred; or

            (g) any other circumstance whatsoever that might otherwise
constitute a legal or equitable discharge or defense of a guarantor, it being
the intent of this Section 4.3 that the obligations of the Guarantor hereunder
shall be absolute and unconditional under any and all circumstances.

            There shall be no obligation of the Holders to give notice to, or
obtain consent of, the Guarantor with respect to the happening of any of the
foregoing.

            SECTION 5.4 Rights of Holders

            (a) The Holders of a Majority in Liquidation Amount of the Capital
Securities have the right to direct the time, method and place of conducting any
proceeding for any remedy available to the Guarantee Trustee in respect of this
Guarantee or to direct the exercise of any trust or power conferred upon the
Guarantee Trustee under this Guarantee; provided, however, that (subject to
Sections 3.1 and 3.2) the Guarantee Trustee shall have the right to decline to
follow any such direction if the Guarantee Trustee shall determine that the
actions so directed would be unjustly prejudicial to the Holders not taking part
in such direction or if the Guarantee Trustee being advised by legal counsel
determines that the action or proceeding so directed may not lawfully be taken
or if the Guarantee Trustee in good faith by its board of directors or trustees,
executive committee or a trust committee of directors or trustees and/or
Responsible

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<PAGE>

Officers shall determine that the action or proceeding so directed would involve
the Guarantee Trustee in personal liability.

            (b) Any Holder of Capital Securities may institute a legal
proceeding directly against the Guarantor without first instituting a legal
proceeding against the Issuer, the Guarantee Trustee or any other Person. The
Guarantor waives any right or remedy to require that any such action be brought
first against the Issuer, the Guarantee Trustee or any other Person before so
proceeding directly against the Guarantor.

            SECTION 5.5 Guarantee of Payment

            This Guarantee creates a guarantee of payment and not of collection.

            SECTION 5.6 Subrogation

            The Guarantor shall be subrogated to all (if any) rights of the
Holders of Capital Securities against the Issuer in respect of any amounts paid
to such Holders by the Guarantor under this Guarantee; provided, however, that
the Guarantor shall not (except to the extent required by applicable provisions
of law) be entitled to enforce or exercise any right that it may acquire by way
of subrogation or any indemnity, reimbursement or other agreement, in all cases
as a result of payment under this Guarantee, if, after giving effect to any such
payment, any amounts are due and unpaid under this Guarantee. If any amount
shall be paid to the Guarantor in violation of the preceding sentence, the
Guarantor agrees to hold such amount in trust for the Holders and to pay over
such amount to the Holders.

            SECTION 5.7 Independent Obligations

            The Guarantor acknowledges that its obligations hereunder are
independent of the obligations of the Issuer with respect to the Capital
Securities and that the Guarantor shall be liable as principal and as debtor
hereunder to make Guarantee Payments pursuant to the terms of this Guarantee
notwithstanding the occurrence of any event referred to in subsections (a)
through (g), inclusive, of Section 5.3 hereof.

                                   ARTICLE VI

                    LIMITATION OF TRANSACTIONS; SUBORDINATION

            SECTION 6.1 Limitation of Transactions

            So long as any Capital Securities remain outstanding, if at any time
(1) there shall have occurred and be continuing an Event of Default, or (2) the
Debt Security Issuer shall have selected an Extension Period as provided in the
Indenture and such period, or any extension thereof, shall have commenced and be
continuing, then the Guarantor may not (x) declare or pay any dividends or
distributions on, or redeem, purchase, acquire, or make a liquidation payment
with respect to, any of the Guarantor's capital stock, (y) make any payment of
principal of or interest or premium, if any, or interest on or repay, repurchase
or redeem any debt securities of the Guarantor that rank in all respects pari
passu with or junior in interest to the Debt Securities or (z) make any payment
under any guarantees of the Guarantor that rank in all respects pari

                                       13
<PAGE>

passu with or junior in interest to this Guarantee (other than (i) repurchases,
redemptions or other acquisitions of shares of capital stock of the Guarantor
(A) in connection with any employment contract, benefit plan or other similar
arrangement with or for the benefit of one or more employees, officers,
directors, or consultants, (B) in connection with a dividend reinvestment or
stockholder stock purchase plan or (C) in connection with the issuance of
capital stock of the Guarantor (or securities convertible into or exercisable
for such capital stock), as consideration in an acquisition transaction entered
into prior to the occurrence of the Event of Default or the applicable Extension
Period, (ii) as a result of any exchange or conversion of any class or series of
the Guarantor's capital stock (or any capital stock of a subsidiary of the
Guarantor) for any class or series of the Guarantor's capital stock or of any
class or series of the Guarantor's indebtedness for any class or series of the
Guarantor's capital stock, (iii) the purchase of fractional interests in shares
of the Guarantor's capital stock pursuant to the conversion or exchange
provisions of such capital stock or the security being converted or exchanged,
(iv) any declaration of a dividend in connection with any stockholder's rights
plan, or the issuance of rights, stock or other property under any stockholder's
rights plan, or the redemption or repurchase of rights pursuant thereto, or (v)
any dividend in the form of stock, warrants, options or other rights where the
dividend stock or the stock issuable upon exercise of such warrants, options or
other rights is the same stock as that on which the dividend is being paid or
ranks pari passu with or junior in interest to such stock).

            SECTION 6.2 Ranking

            This Guarantee will constitute an unsecured obligation of the
Guarantor and will rank subordinate and junior in right of payment to all
present and future Senior Indebtedness (as defined in the Indenture) to the same
extent and in the same manner that the Debt Securities are subordinated to
Senior Indebtedness pursuant to the Indenture, it being understood that the
terms of Article XV of the Indenture shall apply to the obligations of the
Guarantor. By their acceptance thereof, each Holder of Capital Securities agrees
to the foregoing provisions of this Guarantee and the other terms set forth
herein.

                                  ARTICLE VII

                                  TERMINATION

            SECTION 7.1 Termination

            This Guarantee shall terminate as to the Capital Securities upon (i)
full payment of the price payable upon redemption of all Capital Securities then
outstanding, (ii) the distribution of all of the Debt Securities to the Holders
of all of the Capital Securities, or (iii) full payment of the amounts payable
in accordance with the Declaration upon dissolution of the Issuer. This
Guarantee will continue to be effective or will be reinstated, as the case may
be, if at any time any Holder of Capital Securities must restore payment of any
sums paid under the Capital Securities or under this Guarantee.

                                       14
<PAGE>

                                  ARTICLE VIII

                                 INDEMNIFICATION

            SECTION 8.1 Exculpation

            (a) No Indemnified Person shall be liable, responsible or
accountable in damages or otherwise to the Guarantor or any Covered Person for
any loss, damage or claim incurred by reason of any act or omission of such
Indemnified Person in good faith in accordance with this Guarantee and in a
manner that such Indemnified Person reasonably believed to be within the scope
of the authority conferred on such Indemnified Person by this Guarantee or by
law, except that an Indemnified Person shall be liable for any such loss, damage
or claim incurred by reason of such Indemnified Person's negligence, willful
misconduct or bad faith with respect to such acts or omissions.

            (b) An Indemnified Person shall be fully protected in relying in
good faith upon the records of the Issuer or the Guarantor and upon such
information, opinions, reports or statements presented to the Issuer or the
Guarantor by any Person as to matters the Indemnified Person reasonably believes
are within such other Person's professional or expert competence and who, if
selected by such Indemnified Person, has been selected with reasonable care by
such Indemnified Person, including information, opinions, reports or statements
as to the value and amount of the assets, liabilities, profits, losses, or any
other facts pertinent to the existence and amount of assets from which
Distributions to Holders of Capital Securities might properly be paid.

            SECTION 8.2 Indemnification

            (a) The Guarantor agrees to indemnify each Indemnified Person for,
and to hold each Indemnified Person harmless against, any and all loss,
liability, damage, claim or expense incurred without negligence, willful
misconduct or bad faith on the part of the Indemnified Person, arising out of or
in connection with the acceptance or administration of the trust or trusts
hereunder, including but not limited to the costs and expenses (including
reasonable legal fees and expenses) of the Indemnified Person defending itself
against, or investigating, any claim or liability in connection with the
exercise or performance of any of the Indemnified Person's powers or duties
hereunder. The obligation to indemnify as set forth in this Section 8.2 shall
survive the resignation or removal of the Guarantee Trustee and the termination
of this Guarantee.

            (b) Promptly after receipt by an Indemnified Person under this
Section 8.2 of notice of the commencement of any action, such Indemnified Person
will, if a claim in respect thereof is to be made against the Guarantor under
this Section 8.2, notify the Guarantor in writing of the commencement thereof;
but the failure so to notify the Guarantor (i) will not relieve the Guarantor
from liability under paragraph (a) above unless and to the extent that the
Guarantor did not otherwise learn of such action and such failure results in the
forfeiture by the Guarantor of substantial rights and defenses and (ii) will
not, in any event, relieve the Guarantor from any obligations to any Indemnified
Person other than the indemnification obligation provided in paragraph (a)
above. The Guarantor shall be entitled to appoint counsel of the

                                       15
<PAGE>

Guarantor's choice at the Guarantor's expense to represent the Indemnified
Person in any action for which indemnification is sought (in which case the
Guarantor shall not thereafter be responsible for the fees and expenses of any
separate counsel retained by the Indemnified Person or Persons except as set
forth below); provided, however, that such counsel shall be satisfactory to the
Indemnified Person. Notwithstanding the Guarantor's election to appoint counsel
to represent the Indemnified Person in any action, the Indemnified Person shall
have the right to employ separate counsel (including local counsel), and the
Guarantor shall bear the reasonable fees, costs and expenses of such separate
counsel, if (i) the use of counsel chosen by the Guarantor to represent the
Indemnified Person would present such counsel with a conflict of interest, (ii)
the actual or potential defendants in, or targets of, any such action include
both the Indemnified Person and the Guarantor and the Indemnified Person shall
have reasonably concluded that there may be legal defenses available to it
and/or other Indemnified Persons which are different from or additional to those
available to the Guarantor, (iii) the Guarantor shall not have employed counsel
satisfactory to the Indemnified Person to represent the Indemnified Person
within a reasonable time after notice of the institution of such action or (iv)
the Guarantor shall authorize the Indemnified Person to employ separate counsel
at the expense of the Guarantor. The Guarantor will not, without the prior
written consent of the Indemnified Persons, settle or compromise or consent to
the entry of any judgment with respect to any pending or threatened claim,
action, suit or proceeding in respect of which indemnification or contribution
may be sought hereunder (whether or not the Indemnified Persons are actual or
potential parties to such claim or action) unless such settlement, compromise or
consent includes an unconditional release of each Indemnified Person from all
liability arising out of such claim, action, suit or proceeding.

            SECTION 8.3 Compensation; Reimbursement of Expenses

            The Guarantor agrees:

            (a) to pay to the Guarantee Trustee from time to time such
compensation for all services rendered by it hereunder as the parties shall
agree to from time to time (which compensation shall not be limited by any
provision of law in regard to the compensation of a trustee of an express
trust); and

            (b) except as otherwise expressly provided herein, to reimburse the
Guarantee Trustee upon request for all reasonable expenses, disbursements and
advances incurred or made by it in accordance with any provision of this
Guarantee (including the reasonable compensation and the expenses and
disbursements of its agents and counsel), except any such expense, disbursement
or advance as may be attributable to the negligence, willful misconduct or bad
faith of the Guarantee Trustee.

            The provisions of this Section 8.3 shall survive the resignation or
removal of the Guarantee Trustee and the termination of this Guarantee.

                                       16
<PAGE>

                                   ARTICLE IX

                                  MISCELLANEOUS

            SECTION 9.1 Successors and Assigns

            All guarantees and agreements contained in this Guarantee shall bind
the successors, assigns, receivers, trustees and representatives of the
Guarantor and shall inure to the benefit of the Holders of the Capital
Securities then outstanding. Except in connection with any merger or
consolidation of the Guarantor with or into another entity or any sale, transfer
or lease of the Guarantor's assets to another entity, in each case to the extent
permitted under the Indenture, the Guarantor may not assign its rights or
delegate its obligations under this Guarantee without the prior approval of the
Holders of a Majority in Liquidation Amount of the Capital Securities.

            SECTION 9.2 Amendments

            Except with respect to any changes that do not adversely affect the
powers, preferences, rights or interests of Holders of the Capital Securities in
any material respect (in which case no approval of Holders will be required),
this Guarantee may be amended only with the prior approval of the Holders of a
Majority in Liquidation Amount of the Capital Securities. The provisions of the
Declaration with respect to amendments thereof shall apply equally with respect
to amendments of the Guarantee.

            SECTION 9.3 Notices

            All notices provided for in this Guarantee shall be in writing, duly
signed by the party giving such notice, and shall be delivered, telecopied or
mailed by first class mail, as follows:

            (a) if given to the Guarantee Trustee, at the Guarantee Trustee's
mailing address set forth below (or such other address as the Guarantee Trustee
may give notice of to the Holders of the Capital Securities):

            Wilmington Trust Company
            Rodney Square North, 1100 North Market Street
            Wilmington, Delaware 19890-0001
            Attention: Corporate Capital Markets
            Telecopy: (302) 636-4140
            Telephone:  (302) 651-1000

            (b) if given to the Guarantor, at the Guarantor's mailing address
set forth below (or such other address as the Guarantor may give notice of to
the Holders of the Capital Securities and to the Guarantee Trustee):

                                       17
<PAGE>

            Fulton Financial Corporation
            One Penn Square
            P.O. Box 4887
            Lancaster, Pennsylvania 17604
            Attention: Chief Financial Officer
            Telecopy: (717) 295-5312
            Telephone: (717) 291-2411; or

            (c) if given to any Holder of the Capital Securities, at the address
set forth on the books and records of the Issuer.

            All such notices shall be deemed to have been given when received in
person, telecopied with receipt confirmed, or mailed by first class mail,
postage prepaid, except that if a notice or other document is refused delivery
or cannot be delivered because of a changed address of which no notice was
given, such notice or other document shall be deemed to have been delivered on
the date of such refusal or inability to deliver.

            SECTION 9.4 Benefit

            This Guarantee is solely for the benefit of the Holders of the
Capital Securities and, subject to Section 3.1(a), is not separately
transferable from the Capital Securities.

            SECTION 9.5 Governing Law

            THIS GUARANTEE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE
WITH, THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO CONFLICT OF LAW
PRINCIPLES OF SAID STATE OTHER THAN SECTION 5-1401 OF THE NEW YORK GENERAL
OBLIGATIONS LAW.

            SECTION 9.6 Counterparts

            This Guarantee may contain more than one counterpart of the
signature page and this Guarantee may be executed by the affixing of the
signature of the Guarantor and the Guarantee Trustee to any of such counterpart
signature pages. All of such counterpart signature pages shall be read as though
one, and they shall have the same force and effect as though all of the signers
had signed a single signature page.

                                       18
<PAGE>

      THIS GUARANTEE is executed as of the day and year first above written.

                                        FULTON FINANCIAL CORPORATION,
                                        as Guarantor

                                        By: ____________________________________
                                            [NAME]
                                            [TITLE]

                                        WILMINGTON TRUST COMPANY,
                                        as Guarantee Trustee

                                        By: ____________________________________
                                            Name:
                                            Title:

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