Document:

<PAGE>   1
                                                                    EXHIBIT 10.4

                                     FORM OF
                                WARRANT AGREEMENT

         THIS AGREEMENT is made and entered into as of the __ day of _________,
1999, by and between SUN BANCSHARES, INC., a South Carolina corporation (the
"Corporation"), and _________________________ (the "Warrant Holder").

                               W I T N E S S E T H
                               - - - - - - - - - -

         WHEREAS, the Warrant Holder has served as an organizer in the formation
of the Corporation and the formation and establishment of SunBank (the "Bank"),
the wholly-owned subsidiary of the Corporation; and

         WHEREAS, the Warrant Holder has purchased __________ shares of the
Corporation's common stock, no par value per share (the "Common Stock"), at a
price of $10.00 per share; and

         WHEREAS, the Warrant Holder will provide services to the Corporation as
a director of the Corporation; and

         WHEREAS, the Corporation, in recognition of the financial risk
undertaken by the Warrant Holder in organizing the Bank and in order to
encourage the Warrant Holder's continued involvement in the successful operation
of the Corporation and the Bank, desires to provide the Warrant Holder with the
right to acquire the same number of shares as the Warrant Holder purchased in
the initial stock offering of the Corporation's Common Stock.

         NOW, THEREFORE, in consideration of the premises and other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

         1.       Grant of Warrant. Subject to the terms, restriction,
limitations and conditions stated herein, the Corporation hereby grants to the
Warrant Holder the right (the "Warrant") to purchase all or any part of an
aggregate of _______________ shares of the Common Stock, subject to adjustment
in accordance with Section 7 hereof.

         2.       Term.

                  (a) The term for the exercise of the Warrant begins at 9:00
         a.m., Eastern Time, on the first anniversary of the date that the
         Corporation first issues its common stock (the "Issue Date") and ends
         at 5:00 p.m., Eastern Time, on the earlier of the tenth anniversary of
         the issuance date or 90 days after the Warrant Holder ceases to serve
         as a director of the Corporation (the "Expiration Time"). The Warrant
         will vest at the rate of one-third (1/3)

<PAGE>   2

         per year beginning on the first anniversary of the Issue Date. On each
         successive anniversary of the Issue Date, an additional one-third (1/3)
         of the Warrant shall vest. The vested portion of the Warrant may be
         exercised in whole, or from time to time in part, at any time prior to
         the Expiration Time.

                  (b) Notwithstanding any other provision of this Agreement, if
         the Bank's capital falls below the minimum requirements as determined
         by the primary federal or state regulator of the Corporation or the
         Bank (the "Regulator"), the Regulator may direct the Corporation to
         require the Warrant Holder to exercise or forfeit his or her Warrant.
         The Corporation will notify the Warrant Holder within 45 days from the
         date the Regulator notifies the Corporation in writing that the Warrant
         Holder must exercise or forfeit this Warrant. The Corporation will
         cancel the Warrant if not exercised within 21 days of the Corporation's
         notification to the Warrant Holder. The Corporation agrees to comply
         with any Regulator request that the Corporation invoke its right to
         require the Warrant Holder to exercise or forfeit his or her Warrant
         under the circumstances stated above.

         3. Purchase Price. The price per share to be paid by the Warrant Holder
for the shares of Common Stock subject to this Warrant shall be $10.00, subject
to adjustment as set forth in Section 6 hereof (such price, as adjusted,
hereinafter called the "Purchase Price").

         4. Exercise of Warrant. The Warrant may be exercised by the Warrant
Holder by delivery to the Corporation, at the address of the Corporation set
forth under Section 10(a) hereof or such other address as to which the
Corporation advises the Warrant Holder pursuant to Section 10(a) hereof, of the
following:

                  (a) Written notice of exercise specifying the number of shares
         of Common Stock with respect to which the Warrant is being exercised;
         and

                  (b) A cashier's or certified check payable to the Corporation
         for the full amount of the aggregate Purchase Price for the number of
         shares as to which the Warrant is being exercised.

         5. Issuance of Shares. Upon receipt of the items set forth in Section
4, and subject to the terms hereof, the Corporation shall cause to be delivered
to the Warrant Holder stock certificates for the number of shares specified in
the notice to exercise, such share or shares to be registered under the name of
the Warrant Holder. Notwithstanding the foregoing, the Corporation shall not be
required to issue or deliver any certificate for shares of the Common Stock
purchased upon exercise of the Warrant or any portion thereof prior to the
fulfillment of the following conditions:

                  (a) The admission of such shares for listing on all stock
         exchanges on which the Common Stock is then listed;

                  (b) The completion of any registration or other qualification
         of such shares which the Corporation shall deem necessary or advisable
         under any federal or state law or under the rulings or regulations of
         the Securities and Exchange Commission or any other governmental
         regulatory body;

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                  (c) The obtaining of any approval or other clearance from any
         federal or state governmental agency or body, which the Corporation
         shall determine to be necessary or advisable; or

                  (d) The lapse of such reasonable period of time following the
         exercise of the Warrant as the Corporation from time to time may
         establish for reasons of administrative convenience.

         The Corporation shall have no obligation to obtain the fulfillment of
these conditions; provided, however, the Warrant Holder shall have one full
calendar year after these conditions have been fulfilled to exercise his or her
warrants granted herein, notwithstanding any other provision herein.

         6.       Antidilution, Etc.

                  (a) If, prior to the Expiration Time, the Corporation shall
         subdivide its outstanding shares of Common Stock into a greater number
         of shares, or declare and pay a dividend of its Common Stock payable in
         additional shares of its Common Stock, the Purchase Price as then in
         effect shall be proportionately reduced, and the number of shares of
         Common Stock then subject to exercise under the Warrant (and not
         previously exercised) shall be proportionately increased.

                  (b) If, prior to the Expiration Time, the Corporation shall
         combine its outstanding shares of the Common Stock into a smaller
         number of shares, the Purchase Price, as then in effect, shall be
         proportionately increased, and the number of shares of Common Stock
         then subject to exercise under the Warrant (and not previously
         exercised), shall be proportionately reduced.

         7.       Reorganization, Reclassification, Consolidation or Merger. If,
prior to the Expiration Time, there shall be any reorganization or
reclassification of the Common Stock (other than a subdivision or combination of
shares provided for in Section 6 hereof), or any consolidation or merger of the
Corporation with another entity, the Warrant Holder shall thereafter be entitled
to receive, during the term hereof and upon payment of the Purchase Price, the
number of shares of stock or other securities or property of the Corporation or
of the successor entity (or its parent company) resulting from such
consolidation or merger, as the case may be, to which a holder of the Common
Stock, deliverable upon the exercise of this Warrant, would have been entitled
upon such reorganization, reclassification, consolidation or merger; and in any
case, appropriate adjustment (as determined by the Board of Directors of the
Corporation in its sole discretion) shall be made in the application of the
provisions herein set forth with respect to the rights and interest thereafter
of the Warrant Holder to the end that the provisions set forth herein (including
the adjustment of the Purchase Price and the number of shares issuable upon the
exercise of this Warrant) shall thereafter be applicable, as near as may
reasonably be practicable, in relation to any shares or other property
thereafter deliverable upon the exercise hereof.

         8.       Notice of Adjustments. Upon any adjustment provided for in
Section 6 or Section 7 hereof, the Corporation, within thirty (30) days
thereafter, shall give written notice thereof to the Warrant Holder at the
address set forth under Section 10(a) hereof or such other address as the

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<PAGE>   4

Warrant Holder may advise the Corporation pursuant to Section 10(a) hereof,
which notice shall state the Warrant Price as adjusted and the increased or
decreased number of shares purchasable upon the exercise of this Warrant,
setting forth in reasonable detail the method of calculation of each.

         9.       Transfer and Assignment.

                  (a) Neither this Warrant nor any rights hereunder are
         assignable or transferable by the Warrant Holder otherwise than by will
         or under the laws of descent and distribution. During Warrant Holder's
         lifetime, this Warrant is exercisable only by the Warrant Holder (or by
         the Warrant Holder's guardian or legal representative, should one be
         appointed). More particularly, but without limiting the generality of
         the foregoing, this Warrant may not be assigned, transferred (except as
         aforesaid), pledged or hypothecated in any way (whether by operation of
         law or otherwise) and shall not be subject to execution, attachment or
         similar process. Any attempted assignment, transfer, pledge,
         hypothecation or other disposition of this Warrant shall be null and
         void and without legal effect.

                  (b) Shares of Common Stock acquired by exercise of the Warrant
         granted hereby may not be transferred or sold unless the transfer is
         exempt from further regulatory approval or otherwise permissible under
         applicable law, including state and federal securities laws, and will
         bear a legend to this effect.

         10.      Miscellaneous.

                  (a) All notices, requests, demands and other communications
         required or permitted hereunder shall be in writing and shall be deemed
         to have been duly given when delivered by hand, telegram or facsimile
         transmission, or if mailed, by postage prepaid first class mail, on the
         third business day after mailing, to the following address (or at such
         other address as a party may notify the other hereunder):

                  To the Corporation:

                           Sun Bancshares, Inc.

                           ------------------------------------------

                           ------------------------------------------

                           Attention:  Thomas Bouchette, President

                  To the Warrant Holder:

                           ------------------------------------------

                           ------------------------------------------

                           ------------------------------------------

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                  (b) The Corporation covenants that it has reserved and will
         keep available, solely for the purpose of issue upon the exercise
         hereof, a sufficient number of shares of Common Stock to permit the
         exercise hereof in full.

                  (c) No holder of this Warrant, as such, shall be entitled to
         vote or receive dividends with respect to the shares of Common Stock
         subject hereto or be deemed to be a shareholder of the Corporation for
         any purpose until such Common Stock has been issued.

                  (d) This Warrant may be amended only by an instrument in
         writing executed by the party against whom enforcement of amendment is
         sought.

                  (e) This Warrant may be executed in counterparts, each of
         which shall be deemed an original, but all of which shall constitute
         one and the same instrument.

                  (f) This Warrant shall be governed by and construed and
         enforced in accordance with the laws of the State of South Carolina.

            [The remainder of this page is intentionally left blank.]

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         IN WITNESS WHEREOF, the Corporation has caused this Warrant to be
signed by its duly authorized officers and its corporate seal to be affixed
hereto, and the Warrant Holder has executed this Warrant under seal, all as of
the day and year first above written.

                                       SUN BANCSHARES, INC.

                                       By:
                                          -------------------------------------
                                           Thomas Bouchette
                                           President

                                       WARRANT HOLDER

                                                                        (SEAL)
                                       ---------------------------------

                                       6<PAGE>   1
                                                                    EXHIBIT 10.7

                                PROMISSORY NOTE
<TABLE>
<CAPTION>

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<S>              <C>             <C>              <C>           <C>       <C>               <C>           <C>         <C>
 PRINCIPAL       LOAN DATE        MATURITY        LOAN NO       CALL      COLLATERAL        ACCOUNT       OFFICER     INITIALS
$850,000.00      01-26-2000      09-30-2000                                                                 JKG
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Reference in the shaded area are for lender's use only and do not limit the applicability of this document to any particular loan
or item.
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</TABLE>

Borrower:    Sun Bancshares, Inc. (IO)          Lender:  THE BANKERS BANK
             P.O. Box 1359                               2410 PACES FERRY ROAD
             Murrells Inlet, SC  29576                   600 PACES SUMMIT
                                                         ATLANTA, GA 30339
<TABLE>

==============================================================================================
<S>                                 <C>                        <C>
   Principal Amount: $850,000.00    Initial Rate:  8.000%      Date of Note:  January 26, 2000
</TABLE>

   PROMISE TO PAY. SUN BANCSHARES, INC. (IO) ("BORROWER") PROMISES TO PAY TO THE
   BANKERS BANK ("LENDER"), OR ORDER, IN LAWFUL MONEY OF THE UNITED STATES OF
   AMERICA, THE PRINCIPAL AMOUNT OF EIGHT HUNDRED FIFTY THOUSAND & 00/100
   DOLLARS ($850,000.00) OR SO MUCH AS MAY BE OUTSTANDING, TOGETHER WITH
   INTEREST ON THE UNPAID OUTSTANDING PRINCIPAL BALANCE OF EACH ADVANCE.
   INTEREST SHALL BE CALCULATED FROM THE DATE OF EACH ADVANCE UNTIL REPAYMENT OF
   EACH ADVANCE.

   PAYMENT. BORROWER WILL PAY THIS LOAN IN ONE PAYMENT OF ALL OUTSTANDING
   PRINCIPAL PLUS ALL ACCRUED UNPAID INTEREST ON SEPTEMBER 30, 2000. IN
   ADDITION, BORROWER WILL PAY REGULAR QUARTERLY PAYMENTS OF ACCRUED UNPAID
   INTEREST BEGINNING APRIL 28, 2000, AND ALL SUBSEQUENT INTEREST PAYMENTS ARE
   DUE ON THE SAME DAY OF EACH QUARTER AFTER THAT. Borrower will pay Lender at
   Lender's address shown above or at such other place as Lender may designate
   in writing. Unless otherwise agreed or required by applicable law, payments
   will be applied first to accrued unpaid interest, then to principal, and any
   remaining amount to any unpaid collection costs and late charges.

   VARIABLE INTEREST RATE. The interest rate on this Note is subject to change
   from time to time based on changes in an index which is the Prime rate as
   published in the Money Rates section of the Wall Street Journal. (the
   "Index"). If two or more rates exist, then the highest rate will prevail.
   Lender will tell Borrower the current Index rate upon Borrower's request.
   Borrower understands that Lender may make loans based on other rates as well.
   The interest rate change will not occur more often than each day. THE INDEX
   CURRENTLY IS 8.500% PER ANNUM. THE INTEREST RATE TO BE APPLIED TO THE UNPAID
   PRINCIPAL BALANCE OF THIS NOTE WILL BE AT A RATE OF 0.500 PERCENTAGE POINTS
   UNDER THE INDEX, RESULTING IN AN INITIAL ANNUAL RATE OF SIMPLE INTEREST OF
   8.000%. NOTICE: Under no circumstances will the interest rate on this Note be
   more than the maximum rate allowed by applicable law.

   PREPAYMENT. Borrower may pay without penalty all or a portion of the amount
   owed earlier than it is due. Early payments will not, unless agreed to by
   Lender in writing, relieve Borrower of Borrower's obligation to continue to
   make payments of accrued unpaid interest. Rather, they will reduce the
   principal balance due.

   LATECHARGE. If a payment is 15 DAYS OR MORE LATE, Borrower will be charged
   $100.00.

   DEFAULT. Borrower will be in default if any of the following happens: (a)
   Borrower fails to make any payment when due. (b) Borrower breaks any promise
   Borrower has made to Lender, or Borrower falls to comply with or to perform
   when due any other term, obligation, covenant, or condition contained in this
   Note or any agreement related to this Note, or in any other agreement or loan
   Borrower has with Lender. (c) Any representation or statement made or
   furnished to Lender by Borrower or on Borrower's behalf is false or
   misleading in any material respect either now or at the time made or
   furnished. (d) Borrower becomes insolvent, a receiver is appointed for any
   part of Borrower's property, Borrower makes an assignment for the benefit of
   creditors, or any proceeding is commenced either by Borrower or against
   Borrower under any bankruptcy or insolvency laws. (e) Any creditor tries to
   take any of Borrower's property on or in which Lender has a lien or security
   interest. This includes a garnishment of any of Borrower's accounts with
   Lender. (f) Any guarantor dies or any of the other events described in this
   default section occurs with respect to any guarantor of this Note. (g) A
   material adverse change occurs in Borrower's financial condition, or Lender
   believes the prospect of payment or performance of the Indebtedness is
   impaired. (h) Lender in good faith deems itself insecure.

   LENDER'S RIGHTS. Upon default, Lender may declare the entire unpaid principal
   balance on this Note and all accrued unpaid interest immediately due, without
   notice, and then Borrower will pay that amount. Upon default, including
   failure to pay upon final maturity, Lender, at its option, may also, if
   permitted under applicable law, increase the variable interest rate on this
   Note 3.000 percentage points. The interest rate will not exceed the maximum
   rate permitted by applicable law. Lender may hire or pay someone else to help
   collect this Note if Borrower does not pay. Borrower also will pay Lender
   that amount. This includes, subject to any limits under applicable law,
   Lender's, costs of collection, including court costs and fifteen percent
   (15%) of the principal plus accrued interest as attorneys' fees, if any sums
   owing under this Note are collected by or through an attorney-at-law, whether
   or not there is a lawsuit, and legal expenses for bankruptcy proceedings
   (including efforts to modify or vacate any automatic stay or injunction),
   appeals, and any anticipated post-judgment collection services. If not
   prohibited by applicable law, Borrower also will pay any court costs, in
   addition to all other sums provided by law. THIS NOTE HAS BEEN DELIVERED TO
   LENDER AND ACCEPTED BY LENDER in THE STATE OF GEORGIA. SUBJECT TO THE
   PROVISIONS ON ARBITRATION, THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED IN
   ACCORDANCE WITH THE LAWS OF THE STATE OF GEORGIA.

   DISHONORED ITEM FEE. Borrower will pay a fee to Lender of twenty dollars
   ($20.00) or five percent (5%) of the face amount of the check, whichever is
   greater, if Borrower makes a payment on Borrower's loan and the check or
   preauthorized charge with which Borrower pays is later dishonored.

   RIGHT OF SETOFF. Borrower grants to Lender a contractual possessory security
   interest in, and hereby assigns, conveys, delivers, pledges, and transfers to
   Lender all Borrower's right, title and interest in and to, Borrower's
   accounts with Lender (whether checking, savings, or some other account),
   including without limitation all accounts held jointly with someone else and
   all accounts Borrower may open in the future, excluding however all IRA and
   Keogh accounts, and all trust accounts for which the grant of a security
   interest would be prohibited by law. Borrower authorizes Lender, to the
   extent permitted by applicable law, to charge or setoff all sums owing on
   this Note against any and all such accounts.

<PAGE>   2

01-26-2000                       PROMISSORY NOTE                         PAGE 2
LOAN NO                            (CONTINUED)

===============================================================================

   LINE OF CREDIT. This Note evidences a revolving line of credit. Advances
   under this Note, as well as directions for payment from Borrower's accounts,
   may be requested orally or in writing by Borrower or by an authorized person.
   Lender may, but need not, require that all oral requests be confirmed in
   writing. Borrower agrees to be liable for all sums either: (a) advanced in
   accordance with the instructions of an authorized person or (b) credited to
   any of Borrower's accounts with Lender. The unpaid principal balance owing on
   this Note at any time may be evidenced by endorsements on this Note or by
   Lender's internal records, including daily computer print-outs. Lender will
   have no obligation to advance funds under this Note if: (a) Borrower or any
   guarantor is in default under the terms of this Note or any agreement that
   Borrower or any guarantor has with Lender, including any agreement made in
   connection with the signing of this Note; (b) Borrower or any guarantor
   ceases doing business or is insolvent; (c) any guarantor seeks, claims or
   otherwise attempts to limit, modify or revoke such guarantor's guarantee of
   this Note or any other loan with Lender; (d) Borrower has applied funds
   provided pursuant to this Note for purposes other than those authorized by
   Lender; or (e) Lender in good faith deems itself insecure under this Note or
   any other agreement between Lender and Borrower.

   ARBITRATION. LENDER AND BORROWER AGREE THAT ALL DISPUTES, CLAIMS AND
   CONTROVERSIES BETWEEN THEM, WHETHER INDIVIDUAL, JOINT, OR CLASS IN NATURE,
   ARISING FROM THIS NOTE OR OTHERWISE, INCLUDING WITHOUT LIMITATION CONTRACT
   AND TORT DISPUTES, SHALL BE ARBITRATED PURSUANT TO THE RULES OF THE AMERICAN
   ARBITRATION ASSOCIATION, UPON REQUEST OF EITHER PARTY. No act to take or
   dispose of any collateral securing this Note shall constitute a waiver of
   this arbitration agreement or be prohibited by this arbitration agreement.
   This includes, without limitation, obtaining injunctive relief or a temporary
   restraining order; invoking a power of sale under any deed of trust or
   mortgage; obtaining a writ of attachment or imposition of a receiver; or
   exercising any rights relating to personal property, including taking or
   disposing of such property with or without judicial process pursuant to
   Article 9 of the Uniform Commercial Code. Any disputes, claims, or
   controversies concerning the lawfulness or reasonableness of any act, or
   exercise of any right, concerning any collateral securing this Note,
   including any claim to rescind, reform, or otherwise modify any agreement
   relating to the collateral securing this Note, shall also be arbitrated,
   provided however that no arbitrator shall have the right or the power to
   enjoin or restrain any act of any party. Judgment upon any award rendered by
   any arbitrator may be entered in any court having jurisdiction. Nothing in
   this Note shall preclude any party from seeking equitable relief from a court
   of competent jurisdiction. The statute of limitations, estoppel, waiver,
   laches, and similar doctrines which would otherwise be applicable in an
   action brought by a party shall be applicable in any arbitration proceeding,
   and the commencement of an arbitration proceeding shall be deemed the
   commencement of an action for these purposes. The Federal Arbitration Act
   shall apply to the construction, interpretation, and enforcement of this
   arbitration provision.

   ACCRUAL METHOD.  interest will be calculated on an Actual/360 basis.

   GENERAL PROVISIONS. Lender may delay or forgo enforcing any of its rights or
   remedies under this Note without losing them. Borrower and any other person
   who signs, guarantees or endorses this Note, to the extent allowed by law,
   waive presentment, demand for payment, protest and notice of dishonor. Upon
   any change in the terms of this Note, and unless otherwise expressly stated
   in writing, no party who signs this Note, whether as maker, guarantor,
   accommodation maker or endorser, shall be released from liability. All such
   parties waive any right to require Lender to take action against any other
   party who signs this Note as provided in O.C.G.A. Section 10-7-24 and agree
   that Lender may renew or extend (repeatedly and for any length of time) this
   loan, or release any party or guarantor or collateral; or impair, fail to
   realize upon or perfect Lender's security interest in the collateral; and
   take any other action deemed necessary by Lender without the consent of or
   notice to anyone. All such parties also agree that Lender may modify this
   loan without the consent of or notice to anyone other than the party with
   whom the modification is made.

   IN WITNESS WHEREOF, THIS NOTE HAS BEEN SIGNED AND SEALED BY THE UNDERSIGNED,
   WHO ACKNOWLEDGES A COMPLETED COPY HEREOF.

   BORROWER:

   Sun Bancshares, Inc. (IO)

   By:   /s/ Thomas Bouchette                        (SEAL)
      -----------------------------------------------
       Thomas Bouchette, President

   LENDER:

   THE BANKERS BANK

   By:
      -----------------------------------------------
      Authorized Officer

===============================================================================
Variable Rate. Line of Credit. LASER PRO, Reg. U.S. Pat. & T.M. Off., Ver.
3.24a(c) 1999 CFI ProServices, Inc. All rights reserved. [GA-D20 E3.24
FUTURUS.LN C1.OVL]

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