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EXHIBIT4.2

AMENDMENT NO.3TOPOST-PETITION LOAN AND SECURITY AGREEMENT

ThisAMENDMENT NO. 3 TO POST-PETITION LOAN AND SECURITY AGREEMENT (this"Amendment") is dated as of December17,  2003, among the Lenders, BANK OF AMERICA, N.A., as agent forthe Lenders ("Agent"), W. R. GRACE & CO.(the "Company") and the Subsidiaries of W. R.Grace & Co. parties hereto (collectively, the"Borrowers").

WHEREAS, the partieshereto are parties to a Post-Petition Loan and Security Agreement datedas of April  1,  2001 (the "LoanAgreement"); and

WHEREAS, the parties hereto desireto amend the Loan Agreement as herein set forth:

NOW, THEREFORE,for and in consideration of the mutual covenants set forth herein andin the Loan Agreement, and for other valuable consideration, thereceipt and sufficiency of which is hereby acknowledged, the partieshereto agree asfollows:

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|  | 1.  | Amendments. |

(a)    AnnexA to the Loan Agreement is hereby amended by amending and restatingclause (h) of the definition of "Restrictedinvestment" in its entirety to read asfollows:

‘‘(h) loans, made while noDefault or Event of Default has occurred and is continuing, in anaggregate amount not to exceed $24,750,000 at any time outstanding madeto ART by W. R. Grace &Co.-Conn.;’’

2.    AmendmentFee.    The Borrowers, jointly and severally, agree to pay theAgent, on the Bankruptcy Court Approval Date (defined below) for theratable benefit of the Lenders who execute this Amendment, anon-refundable amendment fee (the "AmendmentFee") in the amount of$25,000.

3.    Conditions.    This Amendment shallbe effective upon satisfaction of the following conditionsprecedent:

(i)    This Amendment shall havebeen executed by each Borrower, the Agent and Majority Lenders;and

(ii)    The Agent shall have received acopy of the signed order of the Bankruptcy Court approving thisAmendment and the transactions contemplated hereby (the date on whichthe Bankruptcy Court approves this Amendment being referred to hereinas the "Bankruptcy Court ApprovalDate").

4.    Reference to and Effect Uponthe Loan Agreement.

(a)    Except asspecifically amended above, the Loan Agreement and the other LoanDocuments shall remain in full force and effect and are hereby ratifiedand confirmed.

(b)    Upon the effectivenessof this Amendment, each reference in the Loan Agreement to"this Agreement","hereunder","hereof", "herein"or words of similar import shall mean and be a reference to the LoanAgreement as amended hereby.

5.    DefinedTerms.    Except as otherwise defined herein, all defined termsherein shall have the meanings ascribed thereto in the LoanAgreement.

6.    Governing Law.    THISAMENDMENT SHALL BE INTERPRETED AND THE RIGHTS AND LIABILITIES OF THEPARTIES HERETO DETERMINED IN ACCORDANCE WITH THE INTERNAL LAWS(PROVIDED THAT PERFECTION ISSUES WITH RESPECT TO ARTICLE 9 OF THE UCCMAY GIVE EFFECT TO APPLICABLE CHOICE OR CONFLICT OF LAW RULES SET FORTHIN ARTICLE 9 OF THE UCC) OF THE STATE OF NEW YORK TO THE EXTENT NOTPREEMPTED BY FEDERAL BANKRUPTCY LAWS; PROVIDED THAT THE AGENT AND THELENDERS SHALL RETAIN ALL RIGHTS ARISING UNDER FEDERALLAW.

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7.    Headings.    Sectionheadings in this amendment are included herein for convenience ofreference only and shall not constitute a part of this Amendment forany other purposes.

8.    Counterparts.    ThisAmendment may be executed in any number of counterparts, each of whichwhen so executed shall be deemed an original, but all such counterpartsshall constitute one and the sameinstrument.

(Signature PagesFollow)

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INWITNESS WHEREOF, this Amendment has been duly executed as of the datefirst written above.

|  | BANK OF AMERICA, N.A., asAgent and Lender |
|--|-------------------------------------------|

|  | By: /s/ Edmundo KahnName:Edmundo KahnTitle: VicePresident |
|--|-----------------------------------------------------------|

|  | BORROWERS: |
|--|------------|

|  | W. R. Grace& Co.A-1 Bit & Tool Co., Inc. Alewife BostonLtd.Alewife Land Corporation Amicon, Inc.CB Biomedical,Inc.CCHP, Inc.Coalgrace, Inc.Coalgrace II,Inc.Creative Food 'N Fun Company Darex Puerto Rico,Inc. Del Taco Restaurants, Inc. Ecarg, Inc.Five AlewifeBoston Ltd.G C Limited Partners I, Inc. G C Management,Inc.GEC Management Corporation GN Holdings, Inc.GPCThomasville Corp.Gloucester New Communities Company, Inc.Grace A-B Inc.Grace A-B II Inc.Grace Chemical Company ofCubaGrace Culinary Systems, Inc. Grace Drilling CompanyGrace Energy Corporation Grace Environmental, Inc. GraceEurope, Inc.Grace H-G Inc.Grace H-G II Inc.Grace HotelServices CorporationGrace International Holdings, Inc.GraceOffshore Company Grace PAR CorporationGrace Petroleum LibyaIncorporatedGrace Tarpon Investors, Inc. Grace VenturesCorp.Grace Washington, Inc.W. R. Grace CapitalCorporation W. R. Grace & Co.-Conn. W. R. Grace LandCorporation Gracoal, Inc.Gracoal II,Inc. |
|--|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

[Signature Page to Amendment No. 3 toPost-Petition Loan and Security Agreement]

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|  | Guanica-Caribe Land DevelopmentCorporationHanover Square Corporation Homco International,Inc. Kootenai Development Company L B Realty,Inc.Litigation Management, Inc. Monolith Enterprises,IncorporatedMonroe Street, Inc.MRA Holdings Corp.MRAIntermedco, Inc.MRA Staffing Systems, Inc. Remedium Group,Inc.Southern Oil, Resin & Fiberglass, Inc.Water StreetCorporation, each as a Debtor and aDebtor-in-Possession |
|--|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | By: /s/ Robert M.TarolaIts Senior Vice President or VicePresident |
|--|-------------------------------------------------------------------|

[Signature Page to Amendment No. 3to Post-Petition Loan and SecurityAgreement]

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|  | CC Partners, as a Debtor andDebtor-in-Possession |
|--|--------------------------------------------------|

|  | By: MRA Staffing Systems, Inc., aGeneral Partner |
|--|--------------------------------------------------|

|  | By: /s/ Robert M.TarolaIts: Vice President & Treasurer |
|--|------------------------------------------------------------|

|  | By:CCHP, Inc., a General Partner |
|--|----------------------------------|

|  | By: /s/ RobertM.  TarolaIts: Vice President &Treasurer |
|--|------------------------------------------------------------|

|  | Axial Basin Rand Company, as a Debtor and    Debtor-in-Possession |
|--|---------------------------------------------------------------------------------------|

|  | By: Grace A-B II, Inc., aGeneral Partner |
|--|------------------------------------------|

|  | By: /s/ Robert M.TarolaIts: Vice President & Treasurer |
|--|------------------------------------------------------------|

|  | By:Grace A-B, Inc., a General Partner |
|--|---------------------------------------|

|  | By: /s/ RobertM.  TarolaIts: Vice President &Treasurer |
|--|------------------------------------------------------------|

|  | Hayden-Gulch West Coal Company, as a Debtorand     Debtor-in-Possession |
|--|---------------------------------------------------------------------------------------------|

|  | By: Grace H-G, Inc., aGeneral Partner |
|--|---------------------------------------|

|  | By: /s/ Robert M.TarolaIts: Vice President & Treasurer |
|--|------------------------------------------------------------|

|  | By:Grace H-G II, Inc., a General Partner |
|--|------------------------------------------|

|  | By: /s/Robert M.  TarolaIts: Vice President &Treasurer |
|--|------------------------------------------------------------|

|  | H-G Coal Company, as a Debtor and    Debtor-in-Possession |
|--|-------------------------------------------------------------------------------|

|  | By: Coalgrace, Inc., aGeneral Partner |
|--|---------------------------------------|

|  | By: /s/ Robert M.TarolaIts: Vice President & Treasurer |
|--|------------------------------------------------------------|

|  | By:Coalgrace II, Inc., a General Partner |
|--|------------------------------------------|

|  | By: /s/Robert M.  TarolaIts: Vice President &Treasurer |
|--|------------------------------------------------------------|

|  | Dewey and Almy, LLC, as a Debtor and    Debtor-in-Possession |
|--|----------------------------------------------------------------------------------|

|  | By: W. R. Grace &Co.-Conn., its sole member |
|--|-------------------------------------------------|

|  | By: /s/ RobertM.  TarolaIts: Senior Vice President |
|--|----------------------------------------------------|

[Signature Page to Amendment No. 3 toPost-Petition Loan and SecurityAgreement]

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|  | GMAC COMMERCIAL CREDIT LLC(successor by merger to GMAC Commercial Credit LLC) |
|--|-------------------------------------------------------------------------------|

|  | By:/s/ David DuffyTitle: Senior VicePresidentAddress:   1290 Avenue of the Americas |
|--|----------------------------------------------------------------------------------------------------|

|  | 3rd FloorNew York, New York10104 Attention: Harvey Winter Facsimile: (212)884-7384 |
|--|------------------------------------------------------------------------------------|

|  | THE CIT GROUP/BUSINESSCREDIT |
|--|------------------------------|

|  | By: /s/ John ThomasTitle:AVPAddress:   1211 Avenue of theAmericas |
|--|----------------------------------------------------------------------------------|

|  | New York, New York 10036 Attention: Monique Fuller Facsimile:(212) 536-1293 |
|--|-----------------------------------------------------------------------------|

|  | PNC BANK, NATIONALASSOCIATION |
|--|-------------------------------|

|  | By: /s/ ParameswarSivaramakrishnan |
|--|------------------------------------|

|  | ParameswarSivaramakrishnan |
|--|----------------------------|

|  | Title: Assistant VicePresidentAddress: Two Tower CenterBlvd. |
|--|--------------------------------------------------------------|

|  | 8th FloorEast Brunswick, New Jersey08816Attention: Josephine GriffinFacsimile: (732)220-4393 |
|--|----------------------------------------------------------------------------------------------|

|  | BANK OFSCOTLAND |
|--|-----------------|

|  | By: /s/ Susan E.Hay |
|--|---------------------|

|  | Susan E. HayDirector, BusinessServices |
|--|----------------------------------------|

|  | Address: 565 5thAvenue |
|--|------------------------|

|  | New York, NY 10017 Attention:Shirley VargasFacsimile: (212)479-2807 |
|--|---------------------------------------------------------------------|

|  | AMSOUTH CAPITALCORP. |
|--|----------------------|

|  | By: /s/ Stephen V.MangianteTitle: Attorney in FactAddress: 350 ParkAvenue |
|--|---------------------------------------------------------------------------|

|  | New York, New York10022Attention:____________                  Facsimile: (212)935-7458 |
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[Signature Page to AmendmentNo. 3 toPost-Petition Loan and SecurityAgreement]

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|  | TRANSAMERICA BUSINESSCAPITAL CORPORATION |
|--|------------------------------------------|

|  | By: /s/ Michael S.BurnsTitle: Michael S. Burns          SVP– Region ManagerAddress: 555 Theodore FremdAve. |
|--|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | Suite C301Rye, NY10580Attention: Brian JoyceFacsimile: (914)921-5883 |
|--|----------------------------------------------------------------------|

[Signature Page to AmendmentNo. 3 toPost-Petition Loan and SecurityAgreement]

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