Document:

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                                                                    EXHIBIT 10.8

                               SEVERANCE AGREEMENT

     MADE as of this 17th day of October, 2000 by and between Fulton Financial
Corporation, a Pennsylvania corporation with offices at One Penn Square,
Lancaster, Pennsylvania 17602 (together with its subsidiaries and affiliates,
collectively, the "Company") and E. Philip Wenger, an adult individual who
resides at 6 Whitetail Way, Pequea, Pennsylvania 17565 ("Key Employee").

                                   BACKGROUND

     Key Employee is considered to be an employee who has made, and is expected
to continue to make a valuable contribution to the financial performance of the
Company.

     While the Company remains firmly committed to its policy of remaining a
strong, independent regional bank holding company, it recognizes that it might
nevertheless be acquired as a result of an unsolicited takeover attempt or in a
negotiated transaction. It is possible that if the Company would be acquired,
the acquiror would terminate Key Employee in order to realize certain cost
savings and that any severance benefits payable to Key Employee might be
inadequate to compensate Key Employee for loss of employment.

     The Board of Directors of the Company has carefully considered this problem
and has determined that it should be addressed. Specifically, the Board of
Directors has concluded that basic financial protection should be provided to
Key Employee in the form of certain limited severance benefits payable in the
event that Key Employee is discharged or is compelled to resign following, and
for reasons relating to a change in control of the Company.

     The purpose of this Agreement is to define these severance benefits and to
specify the conditions under which they are to be paid. This Agreement is not
intended to affect the terms of Key Employee's employment in the absence of a
change in control of the Company. Accordingly, although this Agreement will take
effect upon execution as a binding legal obligation of the Company, it will
become operative only upon a change in control of the Company, as that concept
is defined below.

                                   WITNESSETH:

     NOW, THEREFORE, in consideration of Key Employee's continuing service to
the Company and of the mutual covenants and undertakings hereinafter set forth,
the parties hereto, intending to be legally bound, hereby agree as follows:

<PAGE>

1.   UNDERTAKING OF THE COMPANY

     The Company shall provide to Key Employee the severance benefits specified
in Paragraph 6 below in the event that any time within eighteen (18) months
following a Change in Control of the Company:

     (a)  Key Employee is discharged by the Company, other than for Cause
          pursuant to Paragraph 3 below or for Disability pursuant to Paragraph
          4 below; or

     (b)  Key Employee resigns from the Company for Good Reason pursuant to
          Paragraph 5 below.

2.   CHANGE IN CONTROL

     (a)  For purposes of this Agreement, a "Change in Control" of the Company
          shall mean a change in control of Fulton Financial Corporation of the
          kind that would be required to be reported in response to Item 1 of
          Securities and Exchange Commission Form 8-K promulgated under the
          Securities Exchange Act of 1934 and as in effect on the date hereof.

     (b)  Without limitation of the foregoing, a Change in Control of the
          Company shall be deemed to have occurred upon the occurrence of any of
          the following events:

               (1)  Any person or group of persons acting in concert, shall have
                    acquired, directly or indirectly, beneficial ownership of 20
                    percent or more of the outstanding shares of the voting
                    stock of Fulton Financial Corporation;

               (2)  The composition of the Board of Directors of Fulton
                    Financial Corporation shall have changed such that during
                    any period of two consecutive years during the term of this
                    Agreement, the persons who at the beginning of such period
                    were members of the Board of Directors, unless the
                    nomination or election of each director who was not a
                    director at the beginning of such period was approved in
                    advance by directors representing not less than two-thirds
                    of the directors then in office who were directors at the
                    beginning of the period; or

               (3)  Fulton Financial Corporation shall be merged or consolidated
                    with or its assets purchased by another corporation and as a
                    result of such merger, consolidation or sale of assets, less
                    than a majority of the outstanding voting stock of the
                    surviving, resulting or purchasing corporation is owned,
                    immediately after the transaction, by the holders of the
                    voting stock of Fulton Financial Corporation outstanding
                    immediately before the transaction.

     (c)  For purposes of Paragraph 2(b)(1) above, a person shall be deemed to
          be the beneficial owner of any shares which he or any of his
          affiliates or associates (i) owns, directly or indirectly, (ii) has
          the right to acquire, or (iii) has the right to vote or direct the
          voting thereof pursuant to any agreement, arrangement or
          understanding.

<PAGE>

3.   DISCHARGE FOR CAUSE

     (a)  The Company may at any time following a Change in Control discharge
          Key Employee for Cause, in which event Key Employee shall not be
          entitled to receive the severance benefits specified in Paragraph 6
          below.

     (b)  For purposes of this Agreement, the Company shall have "Cause" to
          discharge Key Employee only under the following circumstances:

          (i)  Key Employee shall have committed an act of dishonesty
               constituting a felony and resulting or intending to result
               directly or indirectly in gain or personal enrichment at the
               expense of the Company; or

          (ii) Key Employee shall have deliberately and intentionally refused
               (for reasons other than incapacity due to accident or physical or
               mental illness) to perform duties to the Company for a period of
               15 consecutive days following the receipt by Key Employee of
               written notice from the Company setting forth in detail the facts
               upon which the Company relies in concluding that Key Employee has
               deliberately and intentionally refused to perform such duties.

4.   DISCHARGE FOR DISABILITY

     (a)  Subject to the provisions of the Americans with Disabilities Act and
          other applicable law, the Company may at any time following a Change
          in Control discharge Key Employee for Disability as provided in this
          Paragraph 4, in which event Key Employee shall not be entitled to
          receive the severance benefits specified in Paragraph 6 below.

     (b)  For purposes of this Agreement, the Company may discharge Key Employee
          for "Disability" only under the following circumstances:

          (i)  Key Employee shall have been unable, for reasons of incapacity
               due to accident or physical or mental illness, for a period of
               six consecutive months to perform duties to the Company.

          (ii) The Company, following the expiration of such period of six
               consecutive months, shall have to give Key Employee 30 days
               written notice of its intention to discharge Key Employee for
               disability and Key Employee shall not within that 30 day period
               have returned to the performance of duties to the Company on a
               full-time basis; and

          (iii) The Company shall provide or cause to be provided to Key
               Employee short-term and long-term disability benefits and fringe
               benefits not less generous than the following: (A) Key Employee
               shall receive each month for six months following the date of
               discharge for Disability Key Employee's full month salary (as in
               effect immediately before discharge for Disability); (B) Key
               Employee shall receive each month thereafter 60 percent of Key
               Employee's monthly salary (as in effect immediately before
               discharge for Disability) until the death of Key Employee or
               until December 31 of the calendar year in which Key Employee
               attains age 65, whichever shall first occur; and (c) Key Employee
               shall receive those fringe benefits customarily provided by the
               Company to disabled former employees, which benefits may include,
               but shall

<PAGE>

               not be limited to, life, medical, health, accident and disability
               insurance and a survivor's income benefit.

     (c)  In the event that Key Employee shall at any time cease to be disabled
          following discharge for Disability, the Company shall do one of the
          following:

          (i)  Reappoint Key Employee to Key Employee position with the Company,
               with full salary and benefits, as they existed immediately before
               discharge for Disability, in which case this Agreement shall
               remain in full force and effect as though Key Employee had never
               been so discharged; or

          (ii) Treat Key Employee as though Key Employee has been discharged for
               reasons other than Cause or Disability, in which case Key
               Employee shall be entitled to receive the severance benefits
               specified in Paragraph 6 below.

     (d)  In the event that Key Employee shall disagree with a determination on
          the part of the Company that Key Employee is disabled or in the event
          that the Company shall disagree with a determination on the part of
          Key Employee that Key Employee is no longer disabled, the matter shall
          be submitted to an impartial and reputable medical doctor to be
          selected by mutual agreement of the parties. In the event that Key
          Employee and the Company are unable to agree, the matter shall be
          submitted to an impartial and reputable medical doctor to be selected,
          upon petition by either party, by the court.

5.   RESIGNATION FOR GOOD REASON

     (a)  Key Employee may at any time following a Change in Control resign from
          the Company for Good Reason, in which event Key Employee shall be
          entitled to receive the severance benefits specified in Paragraph 6
          below.

     (b)  For purposes of this Agreement, Key Employee shall have "Good Reason"
          to resign if the Company, without Key Employee's prior written
          consent, shall have changed in any significant respect the authority,
          duties, compensation, benefits or other terms or conditions of Key
          Employee's employment (including requiring Key Employee to perform a
          substantial portion of duties at a location outside a twenty-five mile
          radius of the location where the Key Employee worked immediately
          before the Change in Control of the Company) in a manner which is
          adverse to Key Employee. It shall not be deemed to be a significant
          change in authority or duties if Key Employee is assigned a different
          title, position or reporting authority after the Change in Control of
          the Company so long as Key Employee continues to perform duties which,
          in aggregate, are similar to some or all of the duties performed by
          Key Employee immediately before the Change in Control of the Company.

6.   SEVERANCE BENEFITS

     The severance benefits to be provided to Key Employee by the Company under
this Agreement are as follows:

     (a)  Salary Continuation: The Company shall pay to Key Employee each month
          during the Severance Benefit Period an amount equal to one-twelfth of
          Key Employee's base annual

<PAGE>

          salary. Key Employee's base annual salary shall be deemed to be an
          amount equal to the aggregate salary paid to Key Employee by or on
          behalf of the Company during the most recent taxable year ending
          before the Change of Control shall occur. The payment to be made in
          respect of each month shall be made on or before the 15th day of the
          next following month. In the event that the Severance Benefit Period
          begins or ends on other than, respectively, the first or last day of a
          calendar month, the payment to be made in respect of that month shall
          be prorated accordingly. It is understood that the Company shall
          withhold from each monthly payment such amounts as may be required
          under any applicable federal, state or local income tax law.

     (b)  Fringe Benefits: The Company shall at its expense provide to Key
          Employee throughout Severance Benefit Period life, medical, health,
          accident and disability insurance and a survivor's income benefit in
          form, substance and amount which is, in each case, substantially
          equivalent to that provided to Key Employee immediately before the
          Change in Control or immediately before the commencement of the
          Severance Benefit Period, whichever Key Employee shall, in each case,
          select.

7.   SEVERANCE BENEFIT PERIOD

     The "Severance Benefit Period" shall commence upon the effective date of
Key Employee's discharge (for reasons other than Cause or Disability) or
resignation (for Good Reason) and shall terminate upon the first to occur of the
following events:

     (a)  The expiration of eighteen (18) months following the effective date of
          Key Employee's discharge or resignation;

     (b)  The expiration of the calendar year in which Key Employee attains age
          65;

     (c)  Key Employee's death; or

     (d)  The election of Key Employee to terminate the Severance Benefit Period
          pursuant to Paragraph 8(b) below.

8.   COVENANT NOT TO COMPETE

     (a)  Key Employee agrees that Key Employee will not without the prior
          written consent of the Company at any time during the Severance
          Benefit Period become an officer, director, or employee of or
          consultant to any bank, bank holding company or other financial
          services institution with an office located within a twenty-five mile
          radius of the office of the Company where Key Employee worked
          immediately before the Change in Control of the Company.

     (b)  Key Employee may elect at any time to terminate the Severance Benefit
          Period by delivering written notice to the Company in which event the
          covenant not to compete set forth in Paragraph 8(a) above shall expire
          and have no further force or effect.

     (c)  In the event of any breach by Key Employee of the covenant not to
          compete set forth in Paragraph 8(a) above, the parties agree that the
          exclusive remedy of the Company shall be to obtain an injunction,
          order for specific performance, or other form of equitable

<PAGE>

          relief from a court of competent jurisdiction and that the Company
          shall not under any circumstances be entitled to recover monetary
          damages from Key Employee by reason of any such breach.

9.   MITIGATION AND SETOFF

     (a)  Key Employee shall not be required to mitigate the amount of any
          payment or benefit provided for in Paragraph 6 above by seeking
          employment or otherwise and the Company shall not be entitled to
          setoff against the amount of any payment or benefit provided for in
          Paragraph 6 above any amounts earned by Key Employee in other
          employment during the Severance Benefit Period.

     (b)  The Company hereby waives any and all rights to set off in respect to
          any claim, debt, obligation or other liability of any kind whatsoever,
          against any payment or benefit provided for in Paragraph 6 above.

10.  ATTORNEYS' FEES AND RELATED EXPENSES

     All attorneys' fees and related expenses incurred by Key Employee in
connection with or relating to enforcement by Key Employee of rights under this
Agreement shall be paid for in full by the Company.

11.  SUCCESSORS AND PARTIES IN INTEREST

     (a)  This Agreement shall be binding upon and shall inure to the benefit of
          the Company and its successors and assigns, including, without
          limitation, any corporation which acquires, directly or indirectly, by
          purchase, merger, consolidation or otherwise, all or substantially all
          of the business or assets of the Company. Without limitation of the
          foregoing, the Company shall require any such successor, expressly
          assume and agree to perform this Agreement in the same manner and to
          the same extent that it is required to be performed by the Company.

     (b)  This Agreement is binding upon and shall inure to the benefit of Key
          Employee and the heirs and personal representatives of Key Employee.

12.  RIGHTS UNDER OTHER PLANS

     This Agreement is not intended to reduce, restrict or eliminate any benefit
to which Key Employee may otherwise be entitled at the time of discharge or
resignation under any employee benefit plan of the Company then in effect.

13.  TERMINATION

     This Agreement may not be terminated except by mutual consent of the
parties, as evidenced by a written instrument duly executed by the Company and
by Key Employee.

<PAGE>

14.  NOTICES

     All notices and other communications required to be given hereunder shall
be in writing and shall be deemed to have been given or made when hand delivered
or when mailed, certified mail, return receipt requested, to the Company or to
Key Employee, as the case may be, at their respective addresses set forth above.

15.  SEVERABILITY

     In the event that any provision of this Agreement shall be held to be
invalid or unenforceable by any court of competent jurisdiction, such provision
shall be deemed severable from the remainder of the Agreement and such holding
shall not invalidate or render unenforceable any other provision of this
Agreement.

16.  GOVERNING LAW, JURISDICTION AND VENUE

     This Agreement shall be governed by and construed in accordance with the
laws of the Commonwealth of Pennsylvania. In the event that either party shall
institute any suit or other legal proceeding, whether in law or in equity,
arising from or relating to this Agreement, the courts of the Commonwealth of
Pennsylvania shall have exclusive jurisdiction and venue shall lie exclusively
in the Court of Common Pleas of Lancaster County.

17.  ENTIRE AGREEMENT

     This Agreement constitutes the entire agreement between the Company and Key
Employee concerning the subject matter hereof and supersedes all prior written
or oral agreements or understandings between them. No term or provision of this
Agreement may be changed, waived, amended or terminated, except by written
instrument duly executed by the Company and by Key Employee.

     IN WITNESS WHEREOF, this Agreement is executed as of the day and year first
above written.

ATTEST:                                 FULTON FINANCIAL CORPORATION

By:                                     By:
    ---------------------------------       ------------------------------------
Title: Secretary                        Title: President and
                                               Chief Executive Officer

(CORPORATE SEAL)

WITNESS:

-------------------------------------   ----------------------------------------
                                        E. Philip Wenger

<PAGE>

                        AMENDMENT OF SEVERANCE AGREEMENT

     THIS AMENDMENT, dated as of July 23, 2002 is made by and between Fulton
Financial Corporation, a Pennsylvania corporation with offices at One Penn
Square, Lancaster, Pennsylvania 17602 (together with its subsidiaries and
affiliates, collectively, the "Company") and E. PHILIP WENGER, an adult
individual who resides at 6 Whitetail Way, Pequea, PA 17565 ("Key Employee").

     WHEREAS, Company and Key Employee entered into a severance agreement dated
October 17, 2000 which provided to the Key Employee certain limited severance
benefits payable in the event the Key Employee is discharged or is compelled to
resign following, and for reasons relating to a change in control of the Company
("Severance Agreement").

     WHEREAS, the Company in reviewing the form of the severance agreement in
connection with providing such agreement to other key employees recently
discovered that certain language is missing in Paragraph 2 (b)(2) of the
Severance Agreement provided to the Key Employee.

     WHEREAS, it is the intention of the Company and the Key Employee to correct
this error and amend the Severance Agreement by replacing the current paragraph
2 (b)(2) in its entirety with a new paragraph 2 (b)(2).

     NOW, THEREFORE, in consideration of Key Employee's continuing service to
the Company and other good and valuable consideration, the parties hereto,
intending to be legally bound, hereby agree as follows:

     The existing paragraph 2(b) (2) of the Severance Agreement by and between
the Company and the Key Employee is hereby replaced in its entirety by the
following paragraph 2(b)(2):

          The composition of the Board of Directors of Fulton Financial
          Corporation shall have changed such that during any period of two
          consecutive years during the term of this Agreement, the persons who
          at the beginning of such period were members of the Board of Directors
          cease for any reason to constitute a majority of the Board of
          Directors, unless the nomination or election of each director who was
          not a director at the beginning of such period was approved in advance
          by directors representing not less than two-thirds of the directors
          then in office who were directors at the beginning of the period; or

     Except as otherwise expressly modified by this Amendment, the Severance
Agreement remains in full force and effect, without modification.

     IN WITNESS WHEREOF, this Amendment is executed as of the day and year first
above written.

<PAGE>

ATTEST:                                 FULTON FINANCIAL CORPORATION

By:                                     By:
    ---------------------------------       ------------------------------------
Title: Secretary                        Title: President and Chief Operating
                                               Officer

(CORPORATE SEAL)

WITNESS:

-------------------------------------   ----------------------------------------exv10w54

 

Exhibit 10.54

CONTRIBUTION AGREEMENT

Between

FIRST STATES GROUP, L.P.

And

THE PARTNERS IN

FIRST STATES PARTNERS II, LP

Dated as of October 26, 2005

IN MAKING AN INVESTMENT DECISION INVESTORS MUST RELY ON THEIR OWN EXAMINATION OF THE ISSUER AND THE
TERMS OF THE OFFERING, INCLUDING THE MERITS AND RISKS INVOLVED. THE SECURITIES REFERENCED HEREIN
HAVE NOT BEEN RECOMMENDED BY ANY FEDERAL OR STATE SECURITIES COMMISSION OR REGULATORY AUTHORITY.
FURTHERMORE, THE FOREGOING AUTHORITIES HAVE NOT CONFIRMED THE ACCURACY OR ADEQUACY OF THIS
DOCUMENT. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.

THESE SECURITIES ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY NOT BE
TRANSFERRED OR RESOLD EXCEPT AS PERMITTED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND THE
APPLICABLE STATE SECURITIES LAWS, PURSUANT TO REGISTRATION OR EXEMPTION THEREFROM. INVESTORS
SHOULD BE AWARE THAT THEY MAY BE REQUIRED TO BEAR THE FINANCIAL RISK OF THIS INVESTMENT FOR AN
INDEFINITE PERIOD OF TIME

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CONTRIBUTION AGREEMENT

     THIS CONTRIBUTION AGREEMENT (this “Agreement”) is made and entered into as of the
26th day of October, 2005 (the “Contract Date”), by and among each holder of a
partnership interest in FIRST STATES PARTNERS II, LP, a Delaware limited partnership (the “Owner”),
as named on Exhibit A hereto (each such holder is a “Contributor” and, collectively, are the
“Contributors”) and FIRST STATES GROUP, L.P., a Delaware limited partnership (the “FSG”).

Background

     A. Owner is the owner of a property commonly referred to as 123 S. Broad St., Philadelphia,
Pennsylvania.

     B. By letter dated October 14, 2005, FSG made on an offer to each Contributor to purchase all
of the limited partnership interest in the Owner that it did not already own (the “Contributed
Interests”).

     C. FSG and the Contributors desire to enter into this Agreement relating to the contribution
and conveyance of the Contributed Interests to FSG in exchange for OP Units (as defined below).

Agreement

     NOW, THEREFORE, for and in consideration of the mutual covenants and agreements contained in
this Agreement, and for other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, intending to be legally bound, the parties agree as follows:

1. DEFINITIONS.

          All terms which are not otherwise defined in this Agreement shall have the meaning set forth
in this Section 1.

     1.1 “Accredited Investor” shall have the meaning set forth in Regulation D promulgated under
the Securities Act of 1933, as amended.

     1.2 “General Partner” shall mean First States Group, LLC, the sole general partner of FSG, the
operating partnership of the REIT.

     1.3 “Partnership Agreement” shall mean the Amended and Restated Agreement of Limited
Partnership of FSG dated September 10, 2002, as amended from time to time prior to and including
the Contract Date.

     1.4 “REIT” means American Financial Realty Trust, a publicly-traded Maryland real estate
investment trust.

     1.5 “SEC” shall mean the Securities and Exchange Commission.

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     1.6 “Securities Act” shall mean the Securities Act of 1933, as amended.

2. CONTRIBUTION.

          The Contributors agree to contribute and convey to FSG, and FSG shall accept and take from the
Contributors, on the terms and conditions set forth in this Agreement, all of the Contributor’s
right, title and interest in and to the Contributed Interests.

3. PURCHASE PRICE.

     3.1 Payment of Purchase Price. In consideration of the contribution of the
Contributed Interests to FSG, and subject to the terms of this Agreement, FSG shall pay the total
purchase price of 303,425 units of limited partnership interest in FSG (“OP Units”) to the
Contributors (the “Purchase Price”) for all of the Contributed Interests.

          3.1.1 The payment of the Purchase Price by FSG shall be made through the issuance to each
Contributor the number of OP Units set forth on Exhibit A next to the name of such Contributor in
exchange for their contribution to the FSG of the portion of the Contributed Interests that they
own. FSG and the Contributors stipulate and agree that a true and correct calculation of the
Purchase Price is set forth on Exhibit A hereto.

4. OP UNITS; INVESTOR MATERIALS.

     4.1 OP Units.

          4.1.1 The OP Units shall be redeemable for shares of beneficial interest of the REIT or cash
(or a combination thereof) at the discretion of the General Partner and in accordance with the
procedures described herein and in the Partnership Agreement.

          4.1.2 Each Contributor hereby directs FSG to deliver the OP Units as a book entry in its stock
ledger issued in the names of, and for distribution to, those Contributors set forth on Exhibit A
attached hereto. Each Contributor shall receive the number and type of OP Units set forth on said
Exhibit.

          4.1.3
Each Contributor shall provide or cause to be provided to FSG any information and
documentation as may reasonably be requested by the FSG in furtherance of the issuance of the OP
Units as contemplated hereby, including any representation letter
affirming the Contributor’s status as an Accredited Investor (the “Investor Materials”).

          4.1.4 Each Contributor hereby covenants and agrees that it shall deliver or shall cause each
of its partners, shareholders and members to deliver to FSG, or

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to any other party designated by FSG, any documentation that may be required under the
Partnership Agreement or any charter document of the REIT, and such other information and
documentation as may reasonably be requested by FSG, at such time as any OP Units are redeemed for
common shares of beneficial interest of the REIT (“Conversion Shares”).

     4.2 Certain Informational Materials. Each Contributor hereby acknowledges and agrees
that the ownership of OP Units by them and their respective rights and obligations as limited
partners of FSG (including their right to transfer, encumber, pledge and exchange OP Units) shall
be subject to all of the express limitations, terms, provisions and restrictions set forth in this
Agreement and in the Partnership Agreement. In that regard, each Contributor hereby covenants and
agrees that it shall execute any and all documentation reasonably required by FSG and the REIT to
formally memorialize the foregoing. Each Contributor acknowledges that it has received and
reviewed copies of the Partnership Agreement, as amended to date, the declaration of trust and
bylaws of the REIT and the REIT’s Annual Report to Shareholders for the year ended December 31,
2004. Each Contributor also acknowledges that Form 10-Qs for the quarters ended March 31, 2005
and June 30, 2005, all Form 8-Ks that have been filed by the REIT with the SEC since June 25, 2003
and copies of all material press releases, proxy statements and reports to shareholders issued
since June 25, 2003 have been made available through the REIT’s website at www.afrt.com and the
SEC’s website at www.sec.gov, and has otherwise had an opportunity to conduct a due diligence
review of the affairs of FSG and the REIT and has been afforded the opportunity to ask questions
of, and receive additional information from, the REIT regarding the business, operations,
conditions (financial or otherwise) and the current prospects of the REIT and FSG.

     4.3 Transfer Requirements. Each Contributor may only sell, transfer, assign, pledge
or encumber, or otherwise convey any or all of the OP Units delivered to it and, if applicable, any
Conversion Shares, in strict compliance with this Agreement, the Partnership Agreement, the charter
documents of the REIT, the Securities Act (and the rules
promulgated thereunder), any state securities laws and the rules of the New York Stock Exchange, in each case as may be applicable. A legend may be placed on
the face of the certificates evidencing the Conversion Shares to notify the holder of the
restrictions on transfer under applicable federal or state securities laws.

5. CONTRIBUTORS’ DELIVERIES. Each Contributor shall make available to FSG, at reasonable
times and upon reasonable notice, all documents, contracts, information, Records and exhibits that
are in the possession of, or under the control of, Contributor that are pertinent to the
transaction that is the subject of this Agreement.

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6. REPRESENTATIONS AND WARRANTIES OF CONTRIBUTORS.

     6.1 Each Contributor confirms that there exists no financing statements, tax liens (or other
liens), encumbrances or judgments against such Contributor encumbering the Contributed Interests
which will not be released on or prior to October 26, 2005.

7. REPRESENTATIONS AS TO SECURITIES AND RELATED MATTERS.

     7.1 Contributors. Each Contributor represents and warrants to FSG that the following
matters are true and correct as of the date of this Agreement, and covenant as follows:

          7.1.1 Each Contributor represents that its OP Units are being acquired by it with the present
intention of holding such OP Units for purposes of investment, and not with a view towards sale or
any other distribution. Each Contributor recognizes that it may be required to bear the economic
risk of an investment in the OP Units for an indefinite period of time. Each Contributor is an
Accredited Investor. Each Contributor has such knowledge and experience in financial and business
matters so as to be fully capable of evaluating the merits and risks of an investment in the OP
Units. No OP Units will be issued, delivered or distributed to any person or entity who is other
than an Accredited Investor. Each Contributor has been furnished with the informational materials
described in Section 4.2 above (collectively, the “Informational Materials”), and has read and
reviewed the Informational Materials and understands the contents thereof. The Contributors have
been afforded the opportunity to ask questions of those persons they consider appropriate and to
obtain any additional information they desire in respect of the OP Units and the business,
operations, conditions (financial and otherwise) and current prospects of FSG and the REIT. The
Contributors have consulted their own financial, legal and tax advisors with respect to the
economic, legal and tax consequences of delivery of the OP Units and have not relied on the
Informational Materials, FSG, the REIT or any of their officers, directors, affiliates or
professional advisors for such advice as to such consequences. No Contributor requires the consent
of any other party to consummate the transactions contemplated by this Agreement. Exhibit A
accurately sets forth the direct ownership interest of each Contributor in the Owner.

     7.2 FSG. FSG represents and warrants to Contributor that the following matters are
true and correct as of the date of this Agreement:

          7.2.1 FSG is a limited partnership duly authorized and validly existing under Delaware law.
The performance of this Agreement by FSG has been duly authorized by the General Partner in
accordance with the Partnership Agreement, this Agreement will be binding on FSG and enforceable
against it in accordance with its terms. FSG has been at all times, and presently intends to
continue to be, classified as a partnership or a publicly traded partnership taxable as a
partnership for federal income

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tax purposes and not an association taxable as a corporation or a publicly traded partnership
taxable as a corporation.

          7.2.2 The General Partner is a limited liability company duly authorized and validly existing
under Delaware law. The performance of this Agreement by the General Partner, as general partner
of FSG, has been duly authorized by the REIT, and this Agreement is binding on the General Partner,
as general partner of FSG, and enforceable against it, as general partner of FSG, in accordance
with its terms.

8. FSG COVENANTS. Each Contributor acknowledges that is has received a copy of the
Partnership Agreement, and upon receipt of the OP Units agrees to be subject to and bound by all of
the provisions of the Partnership Agreement, including those provisions of the Partnership
Agreement applicable to limited partners. In accordance with Section 9.03(a)(v) of the Partnership
Agreement and upon receipt of the OP Units, each Contributor irrevocably appoints the General
Partner as its true and lawful attorney-in-fact, who may act for each Contributor and in its name,
place and stead, and for its use and benefit, to sign, acknowledge, swear to, deliver, file or
record, at the appropriate public offices, any and all documents, certificates and instruments as
may be deemed necessary or desirable by the General Partner to carry out fully the provisions of
the Partnership Agreement and the Delaware Revised Uniform Limited Partnership Act in accordance
with their terms, including amendments thereto. This provision for power of attorney is coupled
with an interest and shall survive the dissolution of the Contributor, or the transfer by the
Contributor of any part or all of its OP Units.

9. SUCCESSORS AND ASSIGNS. The terms, conditions and covenants of this Agreement shall be
binding upon and shall inure to the benefit of the parties and their respective nominees,
successors, beneficiaries and permitted assigns. Neither party hereto shall have any right to
assign this Agreement or its rights hereunder; provided, however, that FSG shall have the right to
designate one or more subsidiaries or affiliate entities to take title to the Project.

10. NO BROKERAGE. FSG and the Contributors represent to the other that it has not dealt
with any broker or agent in connection with this transaction.

11. MISCELLANEOUS.

     11.1 Entire Agreement. This Agreement constitutes the entire understanding between
the parties with respect to the transaction contemplated herein, and all prior or contemporaneous
oral agreements, understandings, representations and statements, and all prior written agreements,
understandings, letters of intent and proposals are merged into this Agreement. Neither this
Agreement nor any provisions hereof may be waived, modified, amended, discharged or terminated
except by an instrument in writing signed by the party against which the enforcement of such
waiver, modification, amendment, discharge or termination is sought, and then only to the extent
set forth in such instrument.

5

 

     11.2 Governing Law. This Agreement shall be governed by and construed in accordance
with the laws of the State of Delaware.

     11.3 Partial Invalidity. The provisions hereof shall be deemed independent and
severable, and the invalidity or partial invalidity or enforceability of any one provision shall
not affect the validity of enforceability of any other provision hereof.

     11.4 Expenses. Except and to the extent as otherwise expressly provided to the
contrary herein, each party shall each bear its own respective costs and expenses relating to the
transactions contemplated hereby, including fees and expenses of legal counsel or other
representatives for the services used, hired or connected with the proposed transactions mentioned
above.

     11.5 Counterparts. This Agreement may be executed in any number of identical
counterparts, any of which may contain the signatures of less than all parties, and all of which
together shall constitute a single agreement.

     11.6 Partial Execution. If this Agreement is executed by FSG and one or more, but
less than all, of the Contributors, this Agreement shall nevertheless be effective and binding upon
FSG and such Contributors as are parties to this Agreement as to the Contributed Interests held by
such Contributors, and the lack of joinder by one or more non-executing Contributors shall not
alter or impair the effectiveness of this Agreement upon the executing parties.

6

 

     IN WITNESS WHEREOF, the parties hereto have caused this Contribution Agreement to be executed
as of the day and year first above written.

	 	 	 	 	 	 	 	 	 
	 

	 	FSG:	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	FIRST STATES GROUP, L.P.	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	FIRST STATES GROUP, LLC,
its general partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 

Edward J. Matey Jr., Executive Vice

President and General Counsel
	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	CONTRIBUTORS:	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	Nicholas S. Schorsch	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	Irvin G. Schorsch, III	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	Peter A. Schorsch	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	Jeffrey C. Kahn	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	Charles Kahn	 	 

7

 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	Jeffrey Perelman	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	Allen Spivak	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	MEADOW COURT TRUST	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	Its:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	IRREVOCABLE AGREEMENT OF TRUST OF ROGER R. KEHR	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	Its:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	ESTATE OF HENRY FAULKNER, III	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	Its:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	L.D.D. INVESTMENT COMPANY	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	Its:	 	 	 	 	 	 
	 	 	 	 	 	 	 

8

 

	 	 	 	 	 	 	 	 	 
	 	 	HIDDEN GLEN TRUST	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	Its:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	ARLINGTON CEMETERY GROUP	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	Its:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 

9

 

Exhibit A

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Purchase Price per Contribution Agreement, net of True-Up	 	$24,549,815
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Partnership	 	Percent of	 	Allocation of	 	 	 	 	 	 	 	 	 	Conversion to
	 	 	Interest	 	Retained Interest	 	Purchase Price	 	Multiplier	 	Cash Value	 	OP Units (at $10.00)
	 	 	 
	Nicholas S. Schorsch
	 	 	5.01	%	 	 	45.50	%	 	$	11,171,169	 	 	 	0.1235955	 	 	$	1,380,706.30	 	 	 	138,071	 
	Meadow Court Trust
	 	 	0.81	%	 	 	7.36	%	 	 	1,806,117	 	 	 	0.1235955	 	 	 	223,227.96	 	 	 	22,323	 
	Irvin G. Schorsch
	 	 	0.43	%	 	 	3.91	%	 	 	958,803	 	 	 	0.1235955	 	 	 	118,503.73	 	 	 	11,850	 
	Peter A. Schorsch
	 	 	0.39	%	 	 	3.54	%	 	 	869,612	 	 	 	0.1235955	 	 	 	107,480.13	 	 	 	10,748	 
	Irrevocable Agreement of
Trust of Roger R. Kehr
	 	 	0.72	%	 	 	6.54	%	 	 	1,605,437	 	 	 	0.1235955	 	 	 	198,424.86	 	 	 	19,842	 
	Estate of Henry Faulkner, III
	 	 	0.74	%	 	 	6.72	%	 	 	1,650,033	 	 	 	0.1235955	 	 	 	203,936.66	 	 	 	20,394	 
	Jeffrey C. Kahn
	 	 	0.48	%	 	 	4.36	%	 	 	1,070,292	 	 	 	0.1235955	 	 	 	132,283.24	 	 	 	13,228	 
	Charles Kahn
	 	 	0.32	%	 	 	2.91	%	 	 	713,528	 	 	 	0.1235955	 	 	 	88,188.83	 	 	 	8,819	 
	L.D.D. Investment Company
	 	 	0.25	%	 	 	2.27	%	 	 	557,444	 	 	 	0.1235955	 	 	 	68,897.52	 	 	 	6,890	 
	Hidden Glen Trust
	 	 	0.73	%	 	 	6.63	%	 	 	1,627,735	 	 	 	0.1235955	 	 	 	201,180.76	 	 	 	20,118	 
	Jeffrey Perelman
	 	 	0.20	%	 	 	1.82	%	 	 	445,955	 	 	 	0.1235955	 	 	 	55,118.02	 	 	 	5,512	 
	Allen Spivak
	 	 	0.63	%	 	 	5.72	%	 	 	1,404,758	 	 	 	0.1235955	 	 	 	173,621.75	 	 	 	17,362	 
	Arlington Cemetery Group
	 	 	0.30	%	 	 	2.72	%	 	 	668,932	 	 	 	0.1235955	 	 	 	82,677.02	 	 	 	8,268	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	11.01	%	 	 	100.00	%	 	$	24,549,815	 	 	 	 	 	 	$	3,034,247	 	 	 	303,425

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