Document:

<PAGE>
                                                                    EXHIBIT 4.1D

                                                                  EXECUTION COPY

                                 AMENDMENT NO. 4

         AMENDMENT NO. 4 dated as of December 20, 2002 to the Amended and
Restated Credit Agreement dated as of April 6, 2000, as amended by Amendment No.
1 and Waiver dated as of October 30, 2000, Amendment No. 2 dated as of January
26, 2001 and Amendment No. 3 dated as of March 1, 2002, and as supplemented by
two Credit Agreement Supplements dated as of August 25, 2000 and October 31,
2000, respectively (as so amended and supplemented, and as otherwise amended,
supplemented and otherwise modified to the date hereof, the "CREDIT AGREEMENT"),
each among SOVEREIGN SPECIALTY CHEMICALS, INC., a Delaware corporation (the
"DOMESTIC BORROWER"), the Offshore Borrowers party thereto, the banks, financial
institutions and other institutional lenders party thereto (the "LENDERS"), J.P.
MORGAN SECURITIES INC., as joint lead arranger, joint book-running manager and
documentation agent, and JPMORGAN CHASE BANK (formerly THE CHASE MANHATTAN
BANK), as administrative agent (the "ADMINISTRATIVE AGENT"), and as Offshore
Currency Agent, Initial Issuing Bank and Swing Line Bank and certain others.
Capitalized terms not otherwise defined in this Amendment No. 4 have the same
meanings as specified in the Credit Agreement.

                             PRELIMINARY STATEMENTS:

         (a) The Domestic Borrower has requested that the Credit Agreement be
amended on the terms set forth below; and

         (b) the undersigned Lenders are willing to so amend the Credit
Agreement on the terms and conditions of this Amendment No. 4;

         NOW, THEREFORE, it is hereby agreed as follows:

         SECTION 1. Amendments. The Credit Agreement is, effective as of the
Amendment No. 4 Effective Date (as hereinafter defined), amended as follows:

         (a) The recital of parties to the Credit Agreement is amended in its
entirety and replaced by the following:

                  "AMENDED AND RESTATED CREDIT AGREEMENT dated as of April 6,
         2000, among SOVEREIGN SPECIALTY CHEMICALS, INC., a Delaware corporation
         (the "DOMESTIC BORROWER"), the Offshore Borrowers (as hereinafter
         defined), the banks, financial institutions and other institutional
         lenders listed on the signature pages hereof as the Initial Lenders
         (the "INITIAL LENDERS"), the Swing Line Lenders (as hereinafter
         defined), and J.P. MORGAN SECURITIES INC. ("J.P. MORGAN"), as sole lead
         arranger and sole book-running manager (the "LEAD ARRANGER" and the
         "BOOK MANAGER", as the case may be) for the Facilities (as hereinafter
         defined), and JPMORGAN CHASE BANK ("JPMC"), as administrative agent
         (together with any successor administrative agent appointed pursuant to
         Article VII, the "ADMINISTRATIVE AGENT") for the Lender Parties (as
         hereinafter defined), as documentation agent for the Facilities (the
         "DOCUMENTATION AGENT"), as offshore currency agent (the "OFFSHORE
         CURRENCY AGENT") for the Revolving

<PAGE>

                                       2

         Credit Lenders (as hereinafter defined), as the Initial Issuing Bank
         (the "INITIAL ISSUING BANK" and, together with the Initial Lenders, the
         "INITIAL LENDER PARTIES") and as the Domestic Swing Line Lender (as
         hereinafter defined).";

         (b) All references to "Amendment Effective Date" contained in the
Credit Agreement are amended by adding "No. 3" immediately after the word
"Amendment";

         (c) Other than in Article III, Section 8.01 and in the definition of
"Joint Lead Arranger" in Schedule II, all references to "the Joint Lead
Arrangers" contained in the Credit Agreement are amended by replacing them with
the words "the Lead Arranger";

         (d) All references to "a Joint Lead Arranger" contained in the Credit
Agreement are amended by replacing the words "a Joint" with the word "the";

         (e) All references to "Joint Book Managers" contained in the Credit
Agreement are amended by replacing them with the words "Book Manager";

         (f) Other than in Article III and Schedule II, all references to
"Syndication Agent" contained in the Credit Agreement are amended by replacing
them with the words "Administrative Agent and Lead Arranger";

         (g) Clause (ii) of Section 2.01(a) is amended in its entirety and
replaced with the following:

                  "Each Lender's agreement to make advances to any Offshore
                  Borrower in US Dollars (each, an "OFFSHORE ACQUISITION
                  ADVANCE") terminated on the date which was eighteen (18)
                  months after the Initial Closing Date. No further Offshore
                  Acquisition Advances may be reborrowed under this Agreement.";

         (h) Section 2.01(b) is amended in its entirety and replaced by the
following:

                  "Term B Advances. Immediately following the consummation of
         the Term B Conversion, each New Term B Lender severally agrees, on the
         terms and conditions hereinafter set forth, to make a single advance
         (each, together with each Converted Term B Advance, a "TERM B ADVANCE")
         in an amount not to exceed such Lender's New Term B Commitment at such
         time. Notwithstanding anything to the contrary contained in the
         preceding sentence, each New Term B Lender shall be deemed to have
         satisfied its obligations under this Section 2.01(b) by deducting from
         the advances required to be made, an amount equal to the amount of any
         fee separately agreed with the Domestic Borrower in connection with the
         making of such Lender's New Term B Commitment. The Term B Borrowing
         shall consist of (i) the Term B Conversion and (ii) the New Term B
         Advances made by the New Term B Lenders ratably according to their New
         Term B Commitments. The initial Term B Advance shall be made by one or
         more existing Lenders under the Facilities. Amounts borrowed under this
         Section 2.01(b) and repaid or prepaid may not be reborrowed.";

         (i) Clause (ii) of Section 2.04(a) is amended in its entirety and
replaced with the following:

<PAGE>

                                       3

                  "As of the Amendment No. 4 Effective Date, there are no
         outstanding Offshore Acquisition Advances.";

         (j) Section 2.04(b) is amended in its entirety and replaced with the
following:

                  "The Domestic Borrower shall repay to the Administrative Agent
         for the ratable account of the Term B Lenders the aggregate outstanding
         principal amount of the Term B Advances on the last day of each fiscal
         quarter of the Domestic Borrower, commencing with the fiscal quarter
         ending March 31, 2003 and continuing through the Termination Date, in
         an amount for each quarter equal to 0.25% of the initial aggregate
         principal amount of all Term B Advances (which installment amounts
         shall be reduced as a result of the application of prepayments in
         accordance with Section 2.06) provided, however, that the final
         principal installment shall be repaid on the Termination Date and shall
         be in an amount equal to the aggregate principal amount of the Term B
         Advances outstanding on such date.";

         (k) Section 2.05(a) is amended by (i) inserting the words ", the Term B
Commitments" immediately following the words "the Offshore Acquisition
Commitments" and (ii) deleting the parenthetical at the end of the section;

         (l) Clause (i)(A) of Section 2.05(b) is amended by inserting the
following immediately prior to the end thereof:

                  "The outstanding Term A Advances of each Term A Lender who has
         made a Term B Commitment, as set forth in Part 1 of Schedule I-A
         attached hereto, shall, to the extent of and in such amount equal to
         such Term B Commitment, be converted into Term B Advances (each a
         "CONVERTED TERM B ADVANCE"), to be effective upon the Amendment No. 4
         Effective Date (the "TERM B CONVERSION"). Upon the occurrence of the
         Term B Conversion, the Term A Commitment of each Term A Lender that
         makes a Converted Term B Advance shall be automatically and permanently
         reduced, by an amount equal to the sum of such Lender's Converted Term
         B Advances";

         (m) Clause (i)(B) of Section 2.05(b) is amended in its entirety and
replaced with the following:

         "All the Offshore Acquisition Commitments of the Offshore Acquisition
         Lenders have terminated.";

         (n) Clause (ii) of Section 2.05(b) is amended in its entirety and
replaced with the following:

                  "On the Amendment No. 4 Effective Date, after giving effect to
         any Term B Borrowing on such date, and from time to time thereafter
         upon each repayment or prepayment of the Term B Advances, the aggregate
         Term B Commitments of the Term B Lenders shall be automatically and
         permanently reduced, on a pro rata basis, by an amount equal to the
         amount by which the aggregate Term B Commitments immediately prior to
         such reduction exceed the aggregate unpaid principal amount of the Term
         B Advances then outstanding.";

<PAGE>

                                       4

         (o) Section 2.06(a) is amended by (i) inserting the number "(i)"
immediately before the words "accrued interest" and (ii) inserting the following
immediately before the semicolon following the words "aggregate principal amount
prepaid":

         ", (ii) in the case of any such prepayment of Term B Advances prior to
         the first anniversary of the Amendment No. 4 Effective Date, a premium
         of 2% of the aggregate principal amount so prepaid, and (iii) in the
         case of any such prepayment of Term B Advances on or after the first
         anniversary of the Amendment No. 4 Effective Date, but prior to the
         second anniversary of the Amendment No. 4 Effective Date, a premium of
         1% of the aggregate principal amount so prepaid"

         (p) Clause (i) of Section 2.06(b) is amended in its entirety and
replaced with the following:

                  "Excess Cash Flow. The Domestic Borrower shall, on the 100th
         day following the end of each Fiscal Year prepay an aggregate principal
         amount of the Advances comprising part of the same Borrowings (or cause
         the applicable Offshore Borrowers to prepay Offshore Acquisition
         Advances) as follows: (A) commencing following the Domestic Borrower's
         Fiscal Year ending on December 31, 2000 through and including the
         prepayment required under Section 2.06(b)(i) in respect of the Fiscal
         Year ending December 31, 2002, in an aggregate amount equal to fifty
         percent (50%) of the amount of Excess Cash Flow for such Fiscal Year;
         provided that the aggregate amount of any prepayment of Advances
         otherwise required under this clause (A) shall not exceed the amount
         which is $1 greater than the smallest aggregate prepayment of Advances
         that would be required in order to cause the Total Debt/EBITDA Ratio as
         of the last day of the Fiscal Year in respect of which such payment is
         to be made to be equal to or less than 3.0:1 (after giving effect to
         such prepayment), and provided further that if the Total Debt/EBITDA
         Ratio as of the last day of the Fiscal Year in respect of which such
         payment is to be made is less than 3.0:1, then no such prepayment shall
         be required under this clause (A), and (B) commencing following the
         Domestic Borrower's Fiscal Year ending on December 31, 2003, if the
         Total Debt/EBITDA Ratio as of the last day of the Fiscal Year in
         respect of which such payment is to be made is equal to or greater than
         4.25:1, in an aggregate amount equal to seventy five percent (75%) of
         the amount of Excess Cash Flow for such Fiscal Year, and if the Total
         Debt/EBITDA Ratio as of the last day of the Fiscal Year in respect of
         which such payment is to be made is less than 4.25:1, in an aggregate
         amount equal to fifty percent (50%) of the amount of Excess Cash Flow
         for such Fiscal Year.";

         (q) Clause (ii)(B) of Section 2.06(b) is amended by deleting the
reference to the figure "90%" contained therein and replacing it with the figure
"100%";

         (r) Clause (ii)(C) of Section 2.06(b) is amended by (i) inserting
immediately after the words "sales or issuances to" in the first parenthetical
"(1) to the extent permitted by Section 5.02(g), the Domestic Borrower or any
other Loan Party, or (2)", (ii) deleting the reference to the figure "50%"
contained therein and replacing with the figure "100%", and (iii) deleting the
proviso contained at the end thereof;

         (s) Clause (v)(A) of Section 2.06(b) is amended in its entirety and
replaced with the following:

<PAGE>
                                       5

                  "Each prepayment of Advances pursuant to subsections (i) and
         (ii) of this Section 2.06(b) (and optional prepayments of Term Advances
         pursuant to Section 2.06(a)) shall be applied (1) first, pro rata
         between the scheduled amortization installments of the Term Facilities
         until all the Term A Advances, the Amortization Amount of the Offshore
         Acquisition Advances and the Term B Advances are prepaid in full, (2)
         second, to any other outstanding Offshore Acquisition Advances until
         such Advances are prepaid in full, and (3) third, to the Revolving
         Credit Facility as set forth in clause (vi) below.";

         (t) Clause (v)(B) of Section 2.06(b) is amended by inserting the
following immediately before the period at the end thereof:

                  "; provided, however that all proceeds of the New Term B
         Advances, net of the aggregate amount of the Transaction Costs, shall
         be applied to the prepayment of the scheduled amortization installments
         of the Remaining Term A Advances in direct order of maturity until
         either (x) all the Remaining Term A Advances are prepaid in full, or
         (y) the entire proceeds of the New Term B Advances (net of the
         aggregate amount of the Transaction Costs) have been applied to such
         prepayment";

         (u) Section 2.14 is amended in its entirety and replaced with the
following:

                  "Use of Proceeds. (a) The proceeds of the Advances (other than
         the New Term B Advances) and issuances of Letter of Credit shall be
         available (and the Domestic Borrower and each Offshore Borrower each
         agrees that it shall use such proceeds and Letters of Credit) solely
         for general corporate purposes other than to make Investments (except
         for Investments permitted under Section 5.02(g)(ii) and (iii), (v) and
         (vi), (viii) and (ix) through (xi)).

                           (b) The proceeds of the New Term B Advances shall be
         available (and the Domestic Borrower agrees that it shall use such
         proceeds) solely to (i) pay the Transaction Costs and (ii) prepay
         Remaining Term A Advances.";

         (v) Section 2.16(a) is amended by (i) replacing the words "and/or an
Offshore Swing Line Note" with the words ", an Offshore Swing Line Note and/or a
Term B Note" and (ii) replacing the words "and A-4" with the words ", A-4 and
A-5";

         (w) Article III is amended by adding the following new section in
proper numerical order:

                  "SECTION 3.03B Conditions Precedent to Term B Advances. The
         obligation of each Term B Lender to make a Term B Advance to the
         Domestic Borrower is subject to the occurrence of the Amendment No. 4
         Effective Date prior to or concurrently with the making of such Term B
         Advance and to the conditions set forth in Section 3.04.";

         (x) The proviso at the end of clause (xiii) of Section 5.02(g) is
amended in its entirety and replaced with the following:

                  "provided, however, that any Investment made pursuant to this
         clause (xiii) on or after the Amendment Effective Date shall consist
         solely of Equity Interests of the Domestic Borrower and shall not
         include any assumption of Debt except to the extent that (x) at any
         time after March 31, 2003, such Debt is permitted by clauses (ii),
         (vi), (vii)

<PAGE>

                                       6

         and (viii) of Section 5.02(b) or (y) the portion of such Investment
         that consists of consideration other than Equity Interests of the
         Domestic Borrower (including assumed Debt) does not exceed in the
         aggregate $2,500,000 in respect of Investments made after the Amendment
         No. 4 Effective Date.";

         (y) Section 5.03(c) is amended by (i) deleting the number "(i)" at the
beginning thereof, (ii) replacing the letters "(A)" , "(B)" and "C" in clause
(i) thereof with the numbers "(i)" , "(ii)" and "(iii)" respectively, and (iii)
deleting clause (ii) thereof in its entirety;

         (z) Section 5.04 is amended by deleting subsections (a) through (e)
thereof and replacing them with the following:

                  "(a) Total Debt/EBITDA. Maintain at the end of each fiscal
         quarter of the Domestic Borrower a Total Debt/EBITDA Ratio of not more
         than the amount set forth below for each period set forth below:

<Table>
<Caption>
                             DURING QUARTER ENDING                  RATIO
                             ---------------------                  -----
<S>                                                                 <C>
                             December 31, 2002                      6.00:1
                             March 31, 2003                         6.00:1
                             June 30, 2003                          6.00:1
                             September 30, 2003                     6.00:1
                             December 31, 2003                      5.75:1
                             March 31, 2004                         5.75:1
                             June 30, 2004                          5.50:1
                             September 30, 2004                     5.25:1
                             December 31, 2004                      5.00:1
                             March 31, 2005                         5.00:1
                             June 30, 2005                          4.75:1
                             September 30, 2005                     4.50:1
                             December 31, 2005                      4.50:1
                             March 31, 2006                         4.25:1
                             June 30, 2006                          4.00:1
                                and thereafter
</Table>

                  (b) Senior Debt/EBITDA Ratio. Maintain at the end of each
         fiscal quarter of the Domestic Borrower a Senior Debt/EBITDA Ratio of
         not more than the amount set forth below for each period set forth
         below:

<PAGE>

                                       7

<Table>
<Caption>
                             DURING QUARTER ENDING                  RATIO
                             ---------------------                  -----
<S>                                                                 <C>
                             December 31, 2002                      2.25:1
                             March 31, 2003                         2.25:1
                             June 30, 2003                          2.25:1
                             September 30, 2003                     2.25:1
                             December 31, 2003                      2.00:1
                             March 31, 2004                         2.00:1
                             June 30, 2004                          2.00:1
                             September 30, 2004                     1.75:1
                             December 31, 2004                      1.75:1
                             March 31, 2005                         1.75:1
                             June 30, 2005                          1.50:1
                             September 30, 2005                     1.50:1
                             December 31, 2005                      1.50:1
                             March 31, 2006                         1.50:1
                             June 30, 2006                          1.25:1
                             and thereafter
</Table>

                  (c) Asset Coverage Ratio. Maintain at the end of each fiscal
         quarter of the Domestic Borrower ending on or after the Amendment No. 4
         Effective Date an Asset Coverage Ratio equal to or greater than 1.25:1.

                  (d) Interest Coverage Ratio. Maintain at the end of each
         fiscal quarter of the Domestic Borrower an Interest Coverage Ratio of
         not less than the amount set forth below for each period set forth
         below:

<Table>
<Caption>
                           DURING QUARTER ENDING                    RATIO
                           ---------------------                    -----
<S>                                                                 <C>
                             December 31, 2002                      1.65:1
                             March 31, 2003                         1.65:1
                             June 30, 2003                          1.65:1
                             September 30, 2003                     1.65:1
                             December 31, 2003                      1.65:1
                             March 31, 2004                         1.65:1
                             June 30, 2004                          1.70:1
                             September 30, 2004                     1.75:1
                             December 31, 2004                      1.75:1
                             March 31, 2005                         1.75:1
                             June 30, 2005                          1.85:1
                             September 30, 2005                     1.95:1
                             December 31, 2005                      2.00:1
                             March 31, 2006                         2.00:1
                             June 30, 2006                          2.25:1
                             September 30, 2006                     2.25:1
                             December 31, 2006                      2.25:1
                             March 31, 2007                         2.50:1
                                and thereafter
</Table>

<PAGE>
                                       8

         (aa) Section 7.03 is amended in its entirety and replaced by the
following:

         "SECTION 7.03. J.P. Morgan, JPMC and Affiliates. With respect to its
Commitments or the Commitments of its Affiliates, the Advances made by it or the
Advances made by its Affiliates and the Notes issued to it or to its Affiliates,
J.P. Morgan and JPMC and their Affiliates shall have the same rights and powers
under the Loan Documents as any other Lender Party and may exercise the same as
though it or its Affiliate were not an Agent; and the term "Lender Party" or
"Lender Parties" shall, unless otherwise expressly indicated, include JPMC and
J.P. Morgan in their respective individual capacities. JPMC and J.P. Morgan and
their respective Affiliates may accept deposits from, lend money to, act as
trustee under indentures of, accept investment banking engagements from and
generally engage in any kind of business with, any Loan Party, any of its
Subsidiaries and any Person that may do business with or own securities of any
Loan Party or any such Subsidiary, all as if J.P. Morgan and JPMC were not
Agents and without any duty to account therefor to the Lender Parties.";

         (bb) Section 8.02 is amended in its entirety and replaced by the
following:

         "SECTION 8.02. Notices, Etc. All notices and other communications
provided for hereunder shall be in writing (including telegraphic, telecopy or
telex communication) and mailed, telegraphed, telecopied, telexed or delivered,
if to the Domestic Borrower, at its address at 225 West Washington Street, Suite
2200, Chicago, IL 60606, Telecopy Number: (312) 419-4034, Attention: Terry
Smith; if to an Offshore Borrower or any other Loan Party, to it c/o the
Domestic Borrower with a copy to the address provided on Schedule I to the
Credit Agreement Supplement executed and delivered by such Offshore Borrower; if
to any Initial Lender Party, at its Domestic Lending Office specified opposite
its name on Schedule I hereto; if to any other Lender Party (other than any
Offshore Swing Line Lender), at its Domestic Lending Office specified in the
Assignment and Acceptance pursuant to which it became a Lender Party; if to any
Offshore Swing Line Lender, to the Offshore Currency Agent, with a copy to the
notice address specified in the Joinder Agreement pursuant to which it became an
Offshore Swing Line Lender; if to JPMC, in its capacity as the Administrative
Agent, Documentation Agent or Offshore Currency Agent, at its address at 270
Park Avenue, 4th Floor, New York, New York 10017, Telecopy Number: (212)
270-4584, Attention: Lawrence Palumbo; if to J.P. Morgan in its capacity as a
Lead Arranger or Book Manager, at its address at 270 Park Avenue, 4th Floor, New
York, New York 10017, Telecopy Number: (212) 270-4584, Attention: Lawrence
Palumbo; or, as to the Domestic Borrower or the Administrative Agent, at such
other address as shall be designated by such party in a written notice to the
other parties and, as to each other party, at such other address as shall be
designated by such party in a written notice to the Domestic Borrower and the
Administrative Agent. All such notices and other communications shall, when
mailed, telegraphed, telecopied or telexed, be effective when deposited in the
mails, delivered to the telegraph company, transmitted by telecopier or
confirmed by telex answerback, respectively, except that notices and
communications to any Agent pursuant to Article II, III or VII shall not be
effective until received by such Agent. Delivery by telecopier of an executed
counterpart of any amendment or waiver of any provision of this Agreement or the
Notes or of any Exhibit hereto to be executed and delivered hereunder shall be
effective as delivery of an original executed counterpart thereof.";

<PAGE>

                                       9

         (cc) Section 8.07(e) is amended by deleting the words "or A-4" and
replacing them with the words ", A-4 or A-5";

         (dd) Sections 8.12, 8.13, 8.14, 8.15 and 8.16 are amended by being
renumbered as Sections 8.13, 8.14, 8.15, 8.16 and 8.17, respectively, and all
cross references to Sections 8.12, 8.13, 8.14, 8.15, and 8.16 contained in the
Credit Agreement are amended by replacing them with references to Sections 8.13,
8.14, 8.15, 8.16 and 8.17, respectively;

         (ee) A new Section 8.12 is inserted in proper numerical order as
follows:

                  "SECTION 8.12. Term B Amendments. (a) The provisions of
         Section 8.01(b) shall apply to any amendment, waiver or consent that
         directly affects any Lender that has a commitment under the Term B
         Facility;

                  (b) no amendment, waiver or consent shall, unless in writing
         and signed by Lenders holding more than 50% of the aggregate
         Commitments under the Term B Facility, change the order of application
         of any reduction in the Commitments or any prepayment of Advances among
         the Term A Facility, the Offshore Acquisition Facility and the Term B
         Facility from the application thereof set forth in the applicable
         provisions of Section 2.06(b)(v) in any manner that materially affects
         the Lenders under the Term B Facility or require the permanent
         reduction of the Revolving Credit Facility at any time when all or a
         portion of the Term B Facility remains in effect;

                  (c) no amendment, waiver or consent shall, unless in writing
         and signed by all of the Term B Lenders, amend this Section 8.12.";

         (ff) The Credit Agreement is amended by inserting Schedule I-A - Term B
Commitments, attached hereto as Schedule I-A, in proper numerical order;

         (gg) Schedule II is amended by adding the following new definitions in
proper alphabetical order:

                  " "AMENDMENT NO. 4" means Amendment No. 4 to the Credit
         Agreement dated as of December 20, 2002, among the Domestic Borrower,
         the Offshore Borrowers, the Lender Parties party thereto and the
         Administrative Agent.

                  "AMENDMENT NO. 4 EFFECTIVE DATE" has the meaning specified in
         Section 3 of Amendment No. 4.

                  "ASSET COVERAGE RATIO" means, at any date of determination,
         the ratio of (a) the sum of (i) all inventory in all of its forms, (ii)
         all accounts receivable, (iii) all real property (including leasehold
         interests and fixtures), and (iv) all equipment in all of its forms, in
         each case of Domestic Borrower and its Subsidiaries on a consolidated
         basis as of such date, to (b) the aggregate outstanding amount of all
         Advances under the Facilities as of such date (after giving effect to
         all Borrowings, payments or prepayments of Advances made on such date).

                  "CONVERTED TERM B ADVANCE" has the meaning specified in
         Section 2.05(b).

<PAGE>

                                       9

                  "CONVERTED TERM B COMMITMENT" means that portion of each Term
         B Lender's Term B Commitment that consists of Converted Term B
         Advances.

                  "NEW TERM B ADVANCE" means that portion of the Term B Advances
         that are not Converted Term B Advances.

                  "NEW TERM B LENDERS" means those Term B Lenders that have New
         Term B Commitments.

                  "NEW TERM B COMMITMENT" means those Term B Commitments that
         are not Converted Term B Commitments.

                  "REMAINING TERM A ADVANCES" means those Term A Advances that
         are not converted to Term B Advances pursuant to the Conversion.

                  "TERM B CONVERSION" has the meaning specified in Section
         2.05(b).

                  "TRANSACTION COSTS" means the aggregate amount (which amount
         shall in no event exceed $4,000,000 in the aggregate) of fees,
         expenses, discounts or costs reasonably incurred in connection with the
         negotiation, execution, delivery and consummation of Amendment No. 4
         and with the other instruments and documents to be delivered in
         connection with Amendment No. 4.: provided however that the aggregate
         amount of Transaction Costs shall be reduced by an amount equal to the
         sum of any amounts deducted from the advances required to be made by
         New Term B Lenders, pursuant to Section 2.01(b).";

         (hh) The definition of "Agents" in Schedule II is amended by (i)
inserting the word "and" immediately prior to the words "the Documentation
Agent" and (ii) deleting the words "and the Syndication Agent";

         (ii) The definition of "Facility" in Schedule II is amended by
inserting the words "Term B Facility," immediately after the words "Offshore
Acquisition Facility,";

         (jj) The definition of "Information Memorandum" in Schedule II is
amended by inserting the words "and Merrill Lynch, Pierce, Fenner & Smith
Incorporated" immediately following the word "Arranger" at each place it appears
therein;

         (kk) The definition of "Lenders" in Schedule II is amended by deleting
the words "pursuant to Section 8.07";

         (ll) The definition of "Loan Documents" in Schedule II is amended by
inserting the phrase ", in each case as amended," immediately after the word
"means";

         (mm) The definition of "Material Adverse Change" in Schedule II is
amended by deleting the phrase "since September 30, 1999" therefrom;

         (nn) The definition of "Termination Date" in Schedule II is amended by
(i) deleting the word "and" immediately prior to the number "(iii)" and
replacing it with a comma, and (ii) inserting the following immediately before
the period at the end thereof "and (iv) for the purposes of the Term B Facility,
December 31, 2007";

<PAGE>

                                       11

         (oo) The following definitions in Schedule II are amended in their
entirety and replaced as follows:

                  " "APPLICABLE MARGIN" means a percentage per annum as set
         forth below:

<Table>
<Caption>
TERM A AND REVOLVING CREDIT FACILITIES             TERM B FACILITY
--------------------------------------     ------------------------------------
 EURODOLLAR MARGIN  BASE RATE MARGIN       EURODOLLAR MARGIN   BASE RATE MARGIN
------------------  ------------------     -----------------   ----------------
<S>                 <C>                    <C>                 <C>
       3.75%              2.75%                     4.50%            3.50 %
</Table>

                  For purposes of this definition, the Swing Line Advances are
         extended pursuant to subfacilities of the Revolving Credit Facility.";

                  "JOINT LEAD ARRANGER" means the Lead Arranger.

                  "SYNDICATION AGENT" means the Administrative Agent and the
     Lead Arranger.

                  "TERM ADVANCE" means a Term A Advance, an Offshore Acquisition
     Advance or a Term B Advance.

                  "TERM B ADVANCE" has the meaning specified in Section 2.01(b).

                  "TERM B BORROWING" means a borrowing consisting of
     simultaneous Term B Advances of the same Type made by the Term B Lenders.

                  "TERM B COMMITMENT" means, with respect to any Term B Lender
     at any time, the amount set forth opposite such Lender's name on Schedule
     I-A hereto under the caption "Term B Commitment" or, if such Lender has
     entered into one or more Assignment and Acceptances, set for such Lender in
     the Register maintained by the Administrative Agent pursuant to Section
     8.07(d) as such Lender's "Term B Commitment", as such amount may be reduced
     at or prior to such time pursuant to Section 2.05.

                  "TERM B FACILITY" means, at any time, the aggregate amount of
     the Term B Lenders' Term B Commitments at such time. As of the date hereof,
     the Term B Facility is equal to $47,500,000.

                  "TERM B LENDER" means any Lender that has a Term B Commitment.

                  "TERM B NOTE" means a promissory note of the Domestic Borrower
     payable to the order of any Term B Lender, in substantially the form of
     Exhibit A-5 attached hereto, evidencing the indebtedness of the Domestic
     Borrower to such Lender resulting from the Term B Advances made by such
     Lender, as amended.

                  "TERM BORROWING" means any Term A Borrowing, Offshore
     Acquisition Borrowing or Term B Borrowing.

                  "TERM COMMITMENT" means any Term A Commitment, Offshore
     Acquisition Commitment, or Term B Commitment.

                  "TERM FACILITY" means the Term A Facility, the Offshore
     Acquisition Facility or the Term B Facility.

                  "TERM LENDER" means any Term A Lender, Offshore Acquisition
     Lender or Term B Lender.

<PAGE>

                                       12

                  "TERM NOTE" means any Term A Note, Offshore Acquisition Note
     or Term B Note.";

         (pp) Schedule II is amended by moving the definitions of "Lead
Arranger" and "Book Manager" to their proper alphabetical position; and

         (qq) The Credit Agreement is amended by inserting Exhibit A-5 - Form of
Term B Note, attached hereto as Exhibit A, in proper numerical order;

         SECTION 2. Conditions of Effectiveness. This Amendment No. 4 shall
become effective as of the date first above written (but in no event shall such
date occur after January 2, 2003) (the "AMENDMENT NO. 4 EFFECTIVE DATE") when,
and only when,

         (a) the Administrative Agent shall have received the following in form
and substance satisfactory to the Administrative Agent and in sufficient copies
for each Lender Party:

         (i)      counterparts of this Amendment No. 4 executed by the
                  undersigned and each Required Lender;

         (ii)     the Consent attached hereto, executed by each Subsidiary
                  Guarantor;

         (iii)    a certificate of the Domestic Borrower and each Domestic
                  Subsidiary Guarantor, signed on behalf of each such Loan Party
                  by a Responsible Officer, dated the Amendment No. 4 Effective
                  Date (the statements made in which certificate shall be true
                  on and as of the Amendment No. 4 Effective Date), certifying
                  as to

                           (A) an attached true, complete and correct copy of a
                  certificate of the Secretary of State of the jurisdiction of
                  each such Loan Party, dated reasonably near the Amendment No.
                  4 Effective Date, certifying (A) as to a true and correct copy
                  of the charter of such Loan Party and each amendment thereto
                  on file in such Secretary of State's Office and (B) that such
                  amendments are the only amendments to such Loan Party's
                  charter on file in such Secretary of State's Office,

                           (B) an attached, true, correct and complete copy of
                  the bylaws of such Loan Party as in effect on the date on
                  which the resolutions referred to in Section 2(a)(iii)(C) were
                  adopted and on the Amendment No. 4 Effective Date,

                           (C) an attached, true, correct and complete copy of
                  the resolutions of the Board of Directors of such Loan Party
                  authorizing the execution, delivery and performance by such
                  Loan Party of each of the foregoing Loan Documents to which it
                  is a party,

                           (D) the due incorporation and good standing or valid
                  existence of such Loan Party as a corporation organized under
                  the laws of the jurisdiction of its incorporation, and the
                  absence of any proceeding for the dissolution or liquidation
                  of such Loan Party,

<PAGE>
                                       13

                           (E) the names and true signatures of the officers of
                  such Loan Party authorized to sign each Loan Document to which
                  it is or is to be a party,

                           (F) the truth in all material respects of the
                  representations and warranties contained in the Loan Documents
                  as though made on and as of the Amendment No. 4 Effective
                  Date, and

                           (G) the absence of any event occurring and
                  continuing, or resulting from the making of such Term B
                  Advance, that constitutes a Default;

         (iv)     a Notice of Borrowing relating to such Term B Advance;

         (v)      a favorable opinion of Fried, Frank, Harris, Shriver &
                  Jacobson, counsel for the Loan Parties as to the valid
                  existence and good standing of the New York and Delaware Loan
                  Parties, their due power and authority to execute this
                  Amendment No. 4, and this Amendment No. 4 representing the
                  legal, valid, and binding obligation of the Domestic Borrower
                  (it being acknowledged and agreed that these opinions will be
                  subject to customary assumptions and limitations), and as to
                  such additional matters as may arise and be reasonably
                  requested by the Administrative Agent;

         (vi)     6-year pro forma consolidated and consolidating projections,
                  including pro forma income statements, cash flow statements
                  and balance sheets, as well as a balance sheet as of September
                  30, 2002, after giving pro forma effect to Amendment No. 4;
                  and

         (vii)    a certificate from the chief financial officer of the Domestic
                  Borrower with respect to the solvency (on a consolidated
                  basis) of the Domestic Borrower and its Subsidiaries both
                  immediately before and immediately after the consummation of
                  the transactions to occur with the making of such Term B
                  Advance;

         and

         (b)      the following events shall have occurred:

         (i)      the conditions set forth in Section 2(a) above have been
                  satisfied;

         (ii)     the Total Term B Commitment shall be equal to or greater than
                  $30 million;

         (iii)    on the date of such Term B Advance, after giving effect to
                  Amendment No. 4:

                           (A) Consolidated EBITDA of the Domestic Borrower for
                  the twelve month period ended September 30, 2002 calculated on
                  a pro forma basis after giving effect to such Term B Advance,
                  shall not be less than $41 million;
<PAGE>

                                       14

                           (B) the ratio of Consolidated total Debt for Borrowed
                  Money of the Domestic Borrower and its Subsidiaries as of
                  September 30, 2002, to Consolidated EBITDA ended September 30,
                  2002, calculated on a pro forma basis after giving effect to
                  such Term B Advance, shall be equal to or less than 5.75:1;

                           (C) the ratio of the sum of (1) Consolidated total
                  Debt for Borrowed Money of the Domestic Borrower and its
                  Subsidiaries less (2) Subordinated Debt, in each case as of
                  September 30, 2002, to Consolidated EBITDA ended September 30,
                  2002, calculated on a pro forma basis after giving effect to
                  such Term B Advance, shall be equal to or less than 2.15:1;

                           (D) neither Moody's nor Standard & Poor's shall have
                  lowered its credit rating or outlook for the Facility, or any
                  other obligations of the Domestic Borrower, from ratings in
                  effect on September 30, 2002;

         (iv)     there shall not have occurred or become known any Material
                  Adverse Change since December 31, 2001; and

         (v)      the payment to the Administrative Agent of all accrued and
                  unpaid fees, costs and expenses of the Administrative Agent
                  including, without limitation, the accrued and unpaid fees and
                  expenses of counsel to the Administrative Agent and Lead
                  Arranger, and the fees, costs and expenses payable pursuant to
                  Section 4 below.

         SECTION 3. Effect on Credit Agreement. (a) On and after the
effectiveness of this Amendment No. 4, each reference in the Credit Agreement to
"this Agreement", "hereunder", "hereof" or words of like import referring to the
Credit Agreement, and each reference in the Notes and each of the other Loan
Documents to "the Credit Agreement", "thereunder", "thereof" or words of like
import referring to the Credit Agreement, shall mean and be a reference to the
Credit Agreement, as amended by this Amendment No. 4. The execution, delivery
and effectiveness of this Amendment No. 4 shall not, except as expressly
provided herein, operate as a waiver of any right, power or remedy of any Lender
or the Agent under any of the Loan Documents, nor constitute a waiver of any
provision of any of the Loan Documents.

         (b) Each party hereto hereby acknowledges and consents to the amendment
to the Credit Agreement and the terms and provisions thereof on the terms set
forth in this Amendment No. 4. Each party hereto hereby reaffirms the covenants
and agreements contained in each Loan Document and confirms that each Loan
Document, as specifically amended by Amendment No. 4 in the case of the Credit
Agreement, is and shall continue to be in full force and effect and the same are
hereby ratified and confirmed in all respects, except that upon the
effectiveness of this Agreement, all references contained therein to the "Credit
Agreement" shall mean the Credit Agreement as amended by Amendment No. 4.

         SECTION 4. Payment of Fees. The Domestic Borrower agrees to pay on
demand all reasonable fees, costs and expenses (including, without limitation,
as separately agreed to in writing) of the Administrative Agent in connection
with the preparation, execution,

<PAGE>

                                       15

delivery and administration, modification and amendment of this Amendment No. 4
and the other instruments and documents to be delivered hereunder (including,
without limitation, the reasonable fees and expenses of counsel for the
Administrative Agent) in accordance with the terms of Section 8.04 of the Credit
Agreement.

         SECTION 5. Execution in Counterparts. This Amendment No. 4 may be
executed in any number of counterparts and by different parties hereto in
separate counterparts, each of which when so executed shall be deemed to be an
original and all of which taken together shall constitute one and the same
agreement. Delivery of an executed counterpart of a signature page to this
Amendment No. 4 by telecopier shall be effective as delivery of a manually
executed counterpart of this Amendment No. 4.

         SECTION 6. Governing Law. This Amendment No. 4 shall be governed by,
and construed in accordance with, the laws of the State of New York.

<PAGE>

                  IN WITNESS WHEREOF, the undersigned have caused this Amendment
No. 4 to be executed and delivered by their duly authorized officer as of the
date first above written.

Domestic Borrower:                  SOVEREIGN SPECIALTY CHEMICALS, INC.

                                    By     /s/ Terry D. Smith
                                      ------------------------------------------
                                        Name:  Terry D. Smith
                                        Title:  Vice President

Offshore Borrowers:                 SOVEREIGN SPECIALTY CHEMICALS LIMITED

                                    By     /s/ Louis M. Pace
                                      ------------------------------------------
                                        Name:  Louis M. Pace
                                        Title:  Director

                                    SOVEREIGN SPECIALTY CHEMICALS (S) PTE. LTD.

                                    By     /s/ Louis M. Pace
                                      ------------------------------------------
                                        Name: Louis M. Pace
                                        Title:  Director

<PAGE>

Agreed as of the date first above written:

J.P. MORGAN SECURITIES INC.,
     as Lead Arranger

By
   ------------------------------------------
     Title:

JPMORGAN CHASE BANK,
     as Administrative Agent and as a Lender

By /s/  Lawrence Palumbo, Jr.
   ------------------------------------------
        Name:  Lawrence Palumbo, Jr.
        Title:  Vice President

BLACK DIAMOND INTERNATIONAL FUNDING, LTD

By /s/  Alan Corkish
   ------------------------------------------
        Name:  Alan Corkish
        Title:  Director

BLACK DIAMOND CLO 1998-1 LTD.

By /s/  Alan Corkish
   ------------------------------------------
        Name:  Alan Corkish
        Title:  Director

BLACK DIAMOND CLO 2000-1 LTD.

By /s/  Alan Corkish
   ------------------------------------------
        Name:  Alan Corkish
        Title:  Director

THE BANK OF NOVA SCOTIA

By /s/  Mara Sparrow
   ------------------------------------------
        Name:  Mara Sparrow
        Title:  Director

<PAGE>

MERRILL LYNCH CAPITAL CORPORATION

By /s/  Lawrence Temlock
   ------------------------------------------
        Name:  Lawrence Temlock
        Title:  Vice President

NATIONAL CITY BANK

By /s/  Dexter L. James
   ------------------------------------------
        Name:  Dexter L. James
        Title:

TRS 1 LLC

By /s/
   ------------------------------------------
        Name:
        Title:

GENERAL ELECTRIC CAPITAL CORPORATION

By /s/  Robert M. Kadlick
   ------------------------------------------
        Name:  Robert M. Kadlick
        Title:  Duly Authorized Signatory

<PAGE>

                                  SCHEDULE I-A

                TERM B COMMITMENTS AND APPLICABLE LENDING OFFICES

<Table>
<Caption>

NAME OF INITIAL LENDER             TERM B COMMITMENT      DOMESTIC LENDING OFFICE      EURODOLLAR LENDING OFFICE
----------------------             -----------------      -----------------------      -------------------------
<S>                                <C>                    <C>                           <C>
JPMorgan Chase Bank                  $30,000,000.00       270 Park Avenue               270 Park Avenue
                                                          4th Floor                     4th Floor
                                                          New York, NY 10017            New York, NY 10017
                                                          Attn: Lawrence Palumbo        Attn: Lawrence Palumbo
                                                          Tel: 212-270-7525             Tel: 212-270-7525
                                                          Fax: 212-275-4584             Fax: 212-275-4584
</Table>

<PAGE>

                                    EXHIBIT A

                               FORM OF TERM B NOTE

US$_______________                                      Dated:  ________________

                  FOR VALUE RECEIVED, the undersigned, SOVEREIGN SPECIALTY
CHEMICALS, INC., a Delaware corporation (the "Domestic Borrower"), HEREBY
PROMISES TO PAY _________________________ or its registered assigns (the
"Lender") for the account of its Applicable Lending Office (as defined in the
Credit Agreement referred to below) the aggregate principal amount of the Term B
Advances (as defined below) owing to the Lender by the Domestic Borrower
pursuant to the Amended and Restated Credit Agreement dated as of April 6, 2000
as amended by Amendment No. 1 and Waiver dated as of October 30, 2000, Amendment
No. 2 dated as of January 26, 2001, Amendment No. 3 dated as of March 1, 2002,
and Amendment No. 4 dated as of December 20, 2002 (as further amended, amended
and restated, supplemented or otherwise modified from time to time, the "Credit
Agreement"; terms defined therein, unless otherwise defined herein, being used
herein as therein defined), each among the Domestic Borrower, the Lender and
certain other lender parties party thereto, and JPMorgan Chase Bank, as
Administrative Agent for the Lender and such other lender parties on the dates
and in the amounts specified in the Credit Agreement.

                  The Domestic Borrower promises to pay to the Lender interest
on the unpaid principal amount of each Term B Advance from the date of such Term
B Advance until such principal amount is paid in full, at such interest rates,
and payable at such times, as are specified in the Credit Agreement.

                  Both principal and interest are payable in lawful money of the
United States of America to the Administrative Agent, at the Administrative
Agent's Account in same day funds. The Term B Advances owing to the Lender by
the Domestic Borrower and the maturity thereof, and all payments made on account
of principal thereof, shall be recorded by the Lender and, prior to any transfer
hereof, endorsed on the grid attached hereto, which is part of this Promissory
Note; provided, however, that the failure of the Lender to make any such
recordation or endorsement shall not affect the Obligations of the Domestic
Borrower under this Promissory Note.

                  This Promissory Note is one of the Term B Notes referred to
in, and is entitled to the benefits of, the Credit Agreement. The Credit
Agreement, among other things, (i) provides for the making of Term B Advances by
the Lender to the Domestic Borrower in an aggregate amount not to exceed the
U.S. dollar amount first above mentioned, the indebtedness of the Domestic
Borrower resulting from such Term B Advances being evidenced by this Promissory
Note, and (ii) contains provisions for acceleration of the maturity hereof upon
the happening of certain stated events and also for prepayments on account of
principal hereof prior to the maturity hereof upon the terms and conditions
therein specified. The obligations of the Domestic Borrower under this
Promissory Note and the other Loan Documents, and the obligations of the other
Loan Parties under the Loan Documents, are secured by the Collateral as provided
in the Loan Documents.

<PAGE>

                  This Promissory Note and the obligations evidenced hereby may
not be transferred or assigned in whole or in part, except pursuant to and in
accordance with the provisions of Section 8.07 of the Credit Agreement,
including, without limitation, the requirement that the Administrative Agent
shall have accepted and recorded each such transfer or assignment in the
Register.

                                             SOVEREIGN SPECIALTY CHEMICALS, INC.

                                             By
                                                --------------------------------
                                                Title:

<PAGE>

                       ADVANCES AND PAYMENTS OF PRINCIPAL

<Table>
<Caption>
                                        Amount of Principal    Unpaid Principal   Notation
          Date    Amount of Advance       Paid or Prepaid           Balance        Made By
          ----    -----------------     -------------------    ----------------   --------
<S>               <C>                   <C>                    <C>                 <C>

</Table>

<PAGE>

                                     CONSENT

         CONSENT dated as of December 20, 2002 (this "CONSENT"), to the
foregoing Amendment No. 4 dated as of the date (the "AMENDMENT") hereof to
Amended and Restated Credit Agreement dated as of April 6, 2000, as amended,
supplemented or otherwise modified to the date hereof (the "CREDIT AGREEMENT"),
among Sovereign Specialty Chemicals, Inc., as Domestic Borrower, and the
Offshore Borrowers, Lender Parties and the Agents referred to therein.
Capitalized terms used in this Consent without definition shall have the
respective meanings provided in the Credit Agreement.

         Each of the undersigned, as a Subsidiary Guarantor under one or more of
the Guaranties in favor of the Secured Parties, hereby consents to the foregoing
Amendment and hereby confirms and agrees that notwithstanding the effectiveness
of such Amendment, the Guaranties are, and shall continue to be, in full force
and effect and each is hereby ratified and confirmed in all respects, except
that, on and after the effectiveness of such Amendment, each reference in each
Guaranty to the "Credit Agreement", "thereunder", "thereof" or words of like
import shall mean and be a reference to the Credit Agreement, as amended by such
Amendment.

         IN WITNESS WHEREOF, the undersigned have caused this Consent to be
executed and delivered by their duly authorized officers as of the date first
above written.

IMPERIAL ADHESIVES, INC.                        SOVEREIGN PACKAGING GROUP, INC.

By /s/ Terry D. Smith                           By /s/ Terry D. Smith
   -----------------------------------             -----------------------------
     Name: Terry D. Smith                           Name: Terry D. Smith
     Title: Vice President                          Title: Vice President

SIA ADHESIVES, INC.                             OSI SEALANTS, INC.

By /s/ Terry D. Smith                           By /s/ Terry D. Smith
   -----------------------------------             -----------------------------
     Name: Terry D. Smith                           Name: Terry D. Smith
     Title: Vice President                          Title: Vice President

SOVEREIGN HOLDINGS, LLC                         TANNER CHEMICALS, INC.

By /s/ Terry D. Smith                           By /s/ Terry D. Smith
   -----------------------------------             -----------------------------
     Name: Terry D. Smith                           Name: Terry D. Smith
     Title: Vice President                          Title: Vice President

By /s/ Robert B. Covalt
   -----------------------------------
     Name: Robert B. Covalt
     Title: President

SOVEREIGN SPECIALTY CHEMICALS LIMITED

By /s/ Louis M. Pace
   -----------------------------------
     Name: Louis M. Pace
     Title: Director<PAGE>
                                                                    EXHIBIT 4.3B

                                 AMENDMENT NO.1
                                     TO THE
                     AMENDED AND RESTATED SHAREHOLDERS AGREEMENT

                  AMENDMENT NO.1, dated as of December 31, 2002 (this
"Amendment"), to the Amended and Restated Shareholders Agreement, dated as of
May 12, 2000 (the "Shareholders Agreement"), by and among SOVEREIGN SPECIALITY
CHEMICALS, INC. a Delaware corporation (the "Company"), SSCI INVESTORS LLC, a
Delaware limited liability company (the "Buyer"), and the shareholders listed on
Schedule I to the Shareholders Agreement (the "Employees"). Capitalized terms
used but not otherwise defined herein shall have the meanings ascribed to such
terms in the Shareholders Agreement.

         WHEREAS, Robert B. Covalt ("Covalt") no longer serves as the Company's
Chief Executive Officer;

         WHEREAS, pursuant to the Employee Modification Agreement, dated as of
July 24, 2002, by and between the Company and Covalt, the Company agreed to make
certain revisions to the Shareholders Agreement;

         WHEREAS, the parties desire to amend the Shareholders Agreement and
related arrangements as provided herein;

         NOW, THEREFORE, in consideration of the premises, covenants,
representations, warranties and mutual agreements herein set forth, the parties
hereto agree as follows:

         SECTION 1. Amendment.

                  1.1. Section 3.2(b) of the Shareholders Agreement is hereby
amended and restated as follows:

                  "(b) Investors LLC hereby covenants to Covalt (and not to the
                  other Employee Parties) that: prior to the consummation of the
                  IPO if and so long as the Covalt Family Group beneficially
                  owns at least 5% of the Shares then outstanding on a fully
                  diluted basis (excluding stock options) then Covalt
                  (personally and with no right of substitution) shall be
                  designated to serve on the board of directors of the Company
                  and the board of directors of any Subsidiary of the Company
                  (provided that so long as he is employed by the Company he
                  shall be Chairman of the Board of the Company and Chairman of
                  the Board of each domestic Subsidiary of the Company) and at
                  each meeting of shareholders at which the election of
                  directors is on the agenda, the Company shall recommend to the
                  shareholders of the Company Covalt's election as director and
                  the Investors LLC Parties shall vote their Shares in favor of
                  such election. Notwithstanding the foregoing, at such time

<PAGE>

                  as Covalt shall no longer be employed by the Company, Covalt
                  will be removed from the Board of Directors and all boards of
                  any Subsidiary of the Company and shall no longer have any
                  rights pursuant to this Section 3.2 if either (X) Covalt is
                  Terminated by the Company for Cause or (Y) Covalt is in
                  Competition."

                  1.2. Section 6.4 of the Shareholders Agreement is hereby
amended and restated as follows:

                  "Section 6.4. Amendment. This Agreement may be amended by the
                  parties hereto at any time, provided that no amendment shall
                  be made which by law requires the further approval of
                  stockholders of the Company without obtaining such further
                  approval (provided that each Employee Party accepts and agrees
                  that Covalt may enter into additional agreements with the
                  Company and Investors LLC which may modify his rights and
                  obligations hereunder.) This Agreement may not be amended or
                  modified except by an instrument in writing signed by or on
                  behalf of the Company, Investors LLC (or if Investors LLC is
                  not a shareholder of the Company, Investors LLC Parties
                  constituting a majority of the Shares held by the Investors
                  LLC Parties) and Persons representing a majority of the Shares
                  held by the Employee Parties other than Covalt."

         SECTION 2. Effect of Amendment. Except as and to the extent expressly
modified by this Amendment, the Shareholders Agreement shall remain in full
force and effect in all respects.

         SECTION 3. Governing Law. This Amendment shall be governed by and
construed in accordance with the laws of the State of Delaware without regard to
its rules of conflict of laws. Each of the Employee Parties hereby irrevocably
and unconditionally consents to submit to the exclusive jurisdiction of the
courts of the State of Delaware and of the United States of America located in
the State of Delaware for any litigation arising out of or relating to this
Amendment and the transactions contemplated hereby (and agrees not to commence
any litigation relating thereto except in such courts), waives any objection to
the laying of venue of any such litigation in such Delaware courts and agrees
not to plead or claim that such litigation brought in any such Delaware court
has been brought in an inconvenient forum.

         SECTION 4. Counterparts. This Amendment may be executed by the parties
hereto in separate counterparts, each of which when so executed and delivered
shall be an original, but all such counterparts shall together constitute one
and the same instrument. Each counterpart may consist of a number of copies of
this Amendment, each of which may be signed by less than all of the parties
hereto, but together all such copies are signed by all of the parties hereto.

         SECTION 5. Headings. Headings of the Sections of this Amendment are for
the convenience of the parties only and shall be given no substantive or
interpretive effect whatsoever.

                                      -2-
<PAGE>

         IN WITNESS WHEREOF, the parties have duly executed this Amendment as of
the date first written above.

                                      SOVEREIGN SPECIALTY CHEMICALS,
                                      INC.

                                      By:
                                      Name:
                                      Title:

                                      SSCI INVESTORS LLC

                                      By:
                                      Name:
                                      Title:

                                      /s/ Robert B. Covalt
                                      ------------------------
                                      Robert B. Covalt

                                       3
<PAGE>

         IN WITNESS WHEREOF, the parties have duly executed this Amendment as of
the date first written above.

                                      SOVEREIGN SPECIALTY CHEMICALS,
                                      INC.

                                      By: /s/ Terry D. Smith
                                         -------------------------
                                      Name:  Terry D. Smith
                                      Title: VP & Chief Financial Officer

                                      SSCI INVESTORS LLC
                                      By: SSCI Investors LP
                                          By: AEA SSC Investors Inc.,
                                              its General Partner

                                      By: /s/ Christine J. Smith
                                         --------------------------
                                      Name:  Christine J. Smith
                                      Title: Vice President

                                      -----------------------------
                                      Robert B. Covalt

                                       4

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