<PAGE>
Exhibit 99.4
------------
WARRANT
to Purchase up to 1,250,000 Shares of the
Common Stock, No Par Value,
of
DROVERS BANCSHARES CORPORATION
This is to certify that, for value received, FULTON FINANCIAL CORPORATION
("FFC") or any permitted transferee (FFC or such transferee being hereinafter
called the "Holder") is entitled to purchase, subject to the provisions of this
Warrant, from DROVERS BANCSHARES CORPORATION, a Pennsylvania corporation
("DBC"), at any time on or after the date hereof, an aggregate of up to
1,250,000 fully paid and non-assessable shares of common stock, no par value
(the "Common Stock"), of DBC at a price per share equal to $19.75, subject to
adjustment as herein provided (the "Exercise Price").
1. Exercise of Warrant. Subject to the provisions hereof and the
-------------------
limitations set forth in Paragraph 2 of a Warrant Agreement of even date
herewith by and between FFC and DBC (the "Warrant Agreement"), which Warrant
Agreement was entered into in connection with the Merger Agreement of even date
between FFC and DBC (the "Merger Agreement"), this Warrant may be exercised in
whole or in part or sold, assigned or transferred at any time or from time to
time on or after the date hereof. This Warrant shall be exercised by
presentation and surrender hereof to DBC at the principal office of DBC,
accompanied by (i) a written notice of exercise, (ii) payment to DBC, for the
account of DBC, of the Exercise Price for the number of shares of Common Stock
specified in such notice, and (iii) a certificate of the Holder specifying the
event or events which have occurred and entitle the Holder to exercise this
Warrant. The Exercise Price for the number of shares of Common Stock specified
in the notice shall be payable in immediately available funds.
Upon such presentation and surrender, DBC shall issue promptly (and within
one business day if requested by the Holder) to the Holder or its assignee,
transferee or designee the number of shares of Common Stock to which the Holder
is entitled hereunder. DBC covenants and warrants that such shares of Common
Stock, when so issued, will be duly authorized, validly issued, fully paid and
non-assessable, and free and clear of all liens and encumbrances.
If this Warrant should be exercised in part only, DBC shall, upon surrender
of this Warrant for cancellation, execute and deliver a new Warrant evidencing
the rights of the Holder thereof to purchase the balance of the shares of Common
Stock issuable hereunder. Upon receipt by DBC of this Warrant, in proper form
for exercise, and subject to the limitations set forth in paragraph 2 of the
Warrant Agreement, the Holder shall be deemed to be the holder of record of the
shares of Common Stock issuable upon such exercise, notwithstanding that the
stock transfer books of DBC may then be closed or that certificates representing
such shares of Common Stock shall not then be actually delivered to the Holder.
DBC shall pay all expenses, and any and all United States federal, state and
local taxes and other charges, that may be payable in connection with the
preparation,
<PAGE>
issue and delivery of stock certificates pursuant to this Paragraph 1 in the
name of the Holder or its assignee, transferee or designee.
2. Reservation of Shares; Preservation of Rights of Holder.
-------------------------------------------------------
DBC shall at all times, while this Warrant is outstanding and unexercised,
maintain and reserve, free from preemptive rights, such number of authorized but
unissued shares of Common Stock as may be necessary so that this Warrant may be
exercised without any additional authorization of Common Stock after giving
effect to all other options, warrants, convertible securities and other rights
to acquire shares of Common Stock at the time outstanding. DBC further agrees
that (i) it will not, by charter amendment or through reorganization,
consolidation, merger, dissolution or sale of assets, or by any other voluntary
act or omission, avoid or seek to avoid the observance or performance of any of
the covenants, stipulations or conditions to be observed or performed hereunder
or under the Warrant Agreement by DBC, (ii) it will promptly take all action
(including (A) complying with all pre-merger notification, reporting and waiting
period requirements specified in 15 U.S.C. (S)18a and the regulations
promulgated thereunder and (B) in the event that, under Section 3 of the Bank
Holding Company Act of 1956, as amended (12 U.S.C. (S)1842(a)(3)), or the Change
in Bank Control Act of 1978, as amended (12 U.S.C. (S)1817(j)), prior approval
of the Board of Governors of the Federal Reserve System (the "Board") is
necessary before this Warrant may be exercised, cooperating fully with the
Holder in preparing any and all such applications and providing such information
to the Board as the Board may require) in order to permit the Holder to exercise
this Warrant and DBC duly and effectively to issue shares of its Common Stock
hereunder, and (iii) it will promptly take all action necessary to protect the
rights of the Holder against dilution as provided herein.
3. Fractional Shares. DBC shall not be required to issue fractional shares
-----------------
of Common Stock upon exercise of this Warrant but shall pay for any fractional
shares in cash or by check at the Exercise Price.
4. Exchange or Loss of Warrant. This Warrant is exchangeable, without
---------------------------
expense, at the option of the Holder, upon presentation and surrender hereof at
the principal office of DBC for other warrants of different denominations
entitling the Holder to purchase in the aggregate the same number of shares of
Common Stock issuable hereunder. The term "Warrant" as used herein includes any
warrants for which this Warrant may be exchanged. Upon receipt by DBC of
evidence reasonably satisfactory to it of the loss, theft, destruction or
mutilation of this Warrant, and (in the case of loss, theft or destruction) of
reasonably satisfactory indemnification, and upon surrender and cancellation of
this Warrant, if mutilated, DBC will execute and deliver a new Warrant of like
tenor and date.
5. Repurchase. The Holder shall have the right to require DBC to repurchase
----------
all or any shares of Common Stock for which this Warrant was exercised or all or
any portion of this Warrant under the terms and subject to the conditions of
Paragraph 7 of the Warrant Agreement.
6. Adjustment. The number of shares of Common Stock issuable upon the
----------
exercise of this Warrant and the Exercise Price shall be subject to adjustment
from time to time as provided in this Paragraph 6.
-2-
<PAGE>
(A) Stock Dividends, etc.
---------------------
(1) Stock Dividends. In case DBC shall pay or make a dividend or
---------------
other distribution on any class of capital stock of DBC in Common Stock, the
number of shares of Common Stock issuable upon exercise of this Warrant shall be
increased by multiplying such number of shares by a fraction of which the
denominator shall be the number of shares of Common Stock outstanding at the
close of business on the day immediately preceding the date of such distribution
and the numerator shall be the sum of such number of shares and the total number
of shares of Common Stock constituting such dividend or other distribution, such
increase to become effective immediately after the opening of business on the
day following such distribution.
(2) Subdivisions. In case outstanding shares of Common Stock
------------
shall be subdivided into a greater number of shares of Common Stock, the number
of shares of Common Stock issuable upon exercise of this Warrant at the opening
of business on the day following the day upon which such subdivision becomes
effective shall be proportionately increased, and, conversely, in case
outstanding shares of Common Stock shall each be combined into a smaller number
of shares of Common Stock, the number of shares of Common Stock issuable upon
exercise of this Warrant at the opening of business on the day following the day
upon which such combination becomes effective shall be proportionately
decreased, such increase or decrease, as the case may be, to become effective
immediately after the opening of business on the day following the date upon
which such subdivision or combination becomes effective.
(3) Reclassifications. The reclassification of Common Stock into
-----------------
securities (other than Common Stock) and/or cash and/or other consideration
shall be deemed to involve a subdivision or combination, as the case may be, of
the number of shares of Common Stock outstanding immediately prior to such
reclassification into the number or amount of securities and/or cash and/or
other consideration outstanding immediately thereafter and the effective date of
such reclassification shall be deemed to be "the day upon which such subdivision
becomes effective," or "the day upon which such combination becomes effective,"
as the case may be, within the meaning of clause (2) above.
(4) Optional Adjustments. DBC may make such increases in the
--------------------
number of shares of Common Stock issuable upon exercise of this Warrant, in
addition to those required by this subparagraph (A), as shall be determined by
its Board of Directors to be advisable in order to avoid taxation so far as
practicable of any dividend of stock or stock rights or any event treated as
such for federal income tax purposes to the recipients.
(5) Adjustment to Exercise Price. Whenever the number of shares
----------------------------
of Common Stock issuable upon exercise of this Warrant is adjusted as provided
in this Paragraph 6(A), the Exercise Price shall be adjusted by a fraction in
which the numerator is equal to the number of shares of Common Stock issuable
prior to the adjustment and the denominator is equal to the number of shares of
Common Stock issuable after the adjustment.
-3-
<PAGE>
(B) Certain Sales of Common Stock.
-----------------------------
(1) Adjustment to Shares Issuable. If and whenever DBC sells or
-----------------------------
otherwise issues (other than under circumstances in which Paragraph 6(A) applies
or pursuant to options to purchase Common Stock that are outstanding on the date
hereof or subsequently issued pursuant to DBC stock option or stock purchase
plans (including the dividend reinvestment plan in effect on the date hereof),
any shares of Common Stock, the number of shares of Common Stock issuable upon
exercise of this Warrant shall be increased by multiplying such number of shares
by a fraction, the denominator of which shall be the number shares of Common
Stock outstanding at the close of business on the day immediately preceding the
date of such sale or issuance and the numerator of which shall be the sum of
such number of shares and the total number of shares constituting such sale or
other issuance, such increase to become effective immediately after the opening
of business on the day following such sale or issuance.
(2) Adjustment to Exercise Price. If and whenever DBC sells or
----------------------------
otherwise issues any shares of Common Stock (excluding any stock dividend or
other issuance not for consideration to which Paragraph 6(A) applies or pursuant
to options to purchase Common Stock that are outstanding on the date hereof or
subsequently issued pursuant to DBC stock option or stock purchase plans
(including the dividend reinvestment plan) in effect on the date hereof), for a
consideration per share which is less than the Exercise Price at the time of
such sale or other issuance, then in each such case the Exercise Price shall be
forthwith changed (but only if a reduction would result) to the price
(calculated to the nearest cent) determined by dividing: (i) an amount equal to
the sum of (aa) the number of shares of Common Stock outstanding immediately
prior to such issue or sale, multiplied by the then effective Exercise Price,
plus (bb) the total consideration, if any, received and deemed received by DBC
upon such issue or sale, by (ii) the total number of shares of Common Stock
outstanding immediately after such issue or sale.
(C) Definition. For purposes of this Paragraph 6, the term "Common
----------
Stock" shall include (1) any shares of DBC of any class or series which has no
preference or priority in the payment of dividends or in the distribution of
assets upon any voluntary or involuntary liquidation, dissolution or winding up
of DBC and which is not subject to redemption by DBC, and (2) any rights or
options to subscribe for or to purchase shares of Common Stock or any stock or
securities convertible into or exchangeable for shares of Common Stock (such
convertible or exchangeable stock or securities being hereinafter called
"Convertible Securities"), whether or not such rights or options or the right to
convert or exchange any such Convertible Securities are immediately exercisable.
For purposes of any adjustments made under Paragraph 6(A) or 6(B) as a result of
the distribution, sale or other issuance of rights or options or Convertible
Securities, the number of Shares of Common Stock outstanding after or as a
result of the occurrence of events described in Paragraph 6(A)(1) or 6(B)(1)
shall be calculated by assuming that all such rights, options or Convertible
Securities have been exercised for the maximum number of shares issuable
thereunder. If an adjustment is made at any time because of the subsequent
issuance of any right or option described in clause (2) of the first sentence of
this Section (C), no adjustment shall be made when shares are subsequently
issued; provided further, that no adjustment shall be made for issuances
pursuant to options to purchase Common Stock that are outstanding on the date
hereof or
-4-
<PAGE>
subsequent issuances of Common Stock pursuant to DBC stock option or stock
purchase plans (including the dividend reinvestment plan) in effect on the date
hereof.
7. Notice. (A) Whenever the number of shares of Common Stock for which this
------
Warrant is exercisable is adjusted as provided in Paragraph 6, DBC shall
promptly compute such adjustment and mail to the Holder a certificate, signed by
the principal financial officer of DBC, setting forth the number of shares of
Common Stock for which this Warrant is exercisable as a result of such
adjustment having become effective.
(B) Upon the occurrence of any event which results in the Holder having
the right to require DBC to repurchase shares of Common Stock for which this
Warrant was exercised or this Warrant, as provided in Paragraph 7 of the Warrant
Agreement, DBC shall promptly notify the Holder of such event; and DBC shall
promptly compute the Redemption Price or the Warrant Repurchase Price and
furnish to the Holder a certificate, signed by the principal financial officer
of DBC, setting forth the Redemption Price or the Warrant Repurchase Price, as
applicable, and the basis and computation thereof.
8. Rights of the Holder. (A) Without limiting the foregoing or any remedies
--------------------
available to the Holder, it is specifically acknowledged that the Holder would
not have an adequate remedy at law for any breach of the provisions of this
Warrant and shall be entitled to specific performance of DBC's obligations
under, and injunctive relief against any actual or threatened violation of the
obligations of any Person (as defined in Paragraph 7 of the Warrant Agreement)
subject to, this Warrant.
(B) The Holder shall not, by virtue of its status as Holder, be entitled
to any rights of a shareholder in DBC.
9. Termination. This Warrant and the rights conferred hereby shall
-----------
terminate (i) upon the Effective Time of the Merger provided for in the Merger
Agreement, (ii) upon a valid termination of the Merger Agreement (except a
termination pursuant to Section 8.1(b)(iii) of the Merger Agreement) unless an
event described in Paragraph 2 of the Warrant Agreement (including the
occurrence of an event described in paragraph (iv)(A) therein) occurs prior to
such termination in which case this Warrant and the rights conferred hereby,
shall not terminate until 12 months after the occurrence of such event, or (iii)
to the extent this Warrant has not previously been exercised, 12 months after
the occurrence of an event described in Paragraph 2 of the Warrant Agreement
(unless termination of the Merger Agreement in accordance with its terms (other
than under Section 8.1(b)(iii) thereof) occurs prior to the occurrence of such
event, in which case (ii) above shall apply).
10. Governing Law. This Warrant shall be deemed to have been delivered in,
-------------
and shall be governed by and interpreted in accordance with the substantive laws
of, the Commonwealth of Pennsylvania. In the event of any inconsistency between
this Warrant and the terms of the Warrant Agreement, the terms of the Warrant
Agreement shall govern.
-5-
<PAGE>
Dated: December 27, 2000
DROVERS BANCSHARES CORPORATION
By:
--------------------------------------
A. Richard Pugh, Chairman, President
and Chief Executive Officer
Attest:
--------------------------------------
John D. Blecher, Secretary
