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EXHIBIT4.1

AMENDMENT NO. 2 AND LIMITED WAIVERTOPOST-PETITIONLOAN AND SECURITY AGREEMENT

This AMENDMENT NO. 2 AND LIMITEDWAIVER TO POST-PETITION LOAN AND SECURITY AGREEMENT (this"Amendment") dated as of August28,  2003, is among the Lenders, BANK OF AMERICA, N.A., as agentfor the Lenders ("Agent"), W.R. GRACE &CO. and the Subsidiaries of W.R. Grace and Co. parties hereto(collectively, the"Borrowers").

WHEREAS, theparties hereto are parties to a Post-Petition Loan and SecurityAgreement dated as of April  1,  2001 (as previouslyamended, the "Loan Agreement");and

WHEREAS, the parties hereto desire to amend the LoanAgreement as herein set forth:

NOW, THEREFORE, for and inconsideration of the mutual covenants set forth herein and in the LoanAgreement, and for other valuable consideration, the receipt andsufficiency of which is hereby acknowledged, the parties hereto agreeasfollows:

1.    Amendments.    Section9.1(k) of the Loan Agreement is hereby amended and restated in itsentirety to read as follows.

(k)(i) an ERISAEvent shall occur with respect to a Pension Plan or Multi-employer Planwhich has resulted or would reasonably be expected to result inliability of any Borrower under Title IV of ERISA to the Pension Plan,Multi-employer Plan or the PBGC and such liability would reasonably beexpected to cause a Material Adverse Effect; or (ii) any Borrower orany ERISA Affiliate shall fail to pay when due, after the expiration ofany applicable grace period, any installment payment with respect toits withdrawal liability under Section 4201 of ERISA under aMulti-employer Plan in an aggregate amount in excess of$25,000,000;

2.    Limited Waiver.    Subject tothe conditions precedent set forth below, the Agent and the Lendershereby waive any breach or violation of Section 9.1(k)(ii) of the LoanAgreement (prior to giving effect to this Amendment) arising on orprior to the date hereof caused solely by the Borrowers' PensionPlans having an aggregate amount of Unfunded Pension Liability inexcess of $25,000,000. This waiver shall be limited precisely aswritten and shall not be deemed to (i) be a consent to any amendment,waiver or modification of any other term or condition of the LoanAgreement or any other Loan Document, except to the extent set forthherein or (ii) prejudice any right or remedy that the Agent or theLenders may have or may have in the fixture under or in connection withthe Loan Agreement or any other LoanDocument.

3.    Representations and Warranties ofBorrower.    Each Borrower represents and warrantsthat:

(a)    The execution, delivery andperformance by each Borrower of this Amendment has been duly authorizedby all necessary corporate action required on its part and thisAmendment is a legal, valid and binding obligation of each Borrowerenforceable against each Borrower in accordance with its terms exceptas the enforcement thereof may be subject to (i) the effect of anyapplicable bankruptcy, insolvency, reorganization, moratorium orsimilar laws affecting creditors' rights generally and (ii)general principles of equity (regardless of whether enforcement issought in a proceeding in equity or atlaw).

(b)    Each of the representationsand warranties contained in the Loan Agreement and the Loan Documentsis true and correct in all material respects on and as of the datehereof as if made on the date hereof (except to the extent stated torelate to a specific earlier date, in which case such representationsand warranties shall be true and correct in all material respects as ofsuch earlier date).

(c)    Upon theeffectiveness of this Amendment, no Event of Default shall haveoccurred and be continuing.

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4.    Conditions.    ThisAmendment shall be effective upon execution by each Borrower, the Agentand the Majority Lenders.

5.    Reference to and EffectUpon the Loan Agreement.

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

(b)    Upon theeffectiveness of this Amendment, each reference in the Loan Agreementto "this Agreement","hereunder","hereof",‘‘herein’’ or words of similar import shallmean and be a reference to the Loan Agreement as amendedhereby.

6.    Defined Terms.    Except asotherwise defined herein, all defined terms herein shall have themeanings ascribed thereto in the LoanAgreement.

7.    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.

8.    Headings.    Section headingsin this amendment are included herein for convenience of reference onlyand shall not constitute a part of this Amendment for any otherpurposes.

9.    Counterparts.    This Amendmentmay be executed in any number of counterparts, each of which when soexecuted shall be deemed an original, but all such counterparts shallconstitute one and the same instrument.

(Signature PagesFollow)

2

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IN WITNESSWHEREOF, this Amendment has been duly executed as of the date firstwritten above.

|  | BANK OF AMERICA, N.A., as Agent andLender |
|--|-------------------------------------------|

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

|  | 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 Corporation |
|--|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

[Signature Page toAmendment No. 2 and Limited Waiver toPost-Petition Loan andSecurity Agreement]

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|  | Grace International Holdings,Inc.Grace Offshore CompanyGrace PAR CorporationGracePetroleum Libya IncorporatedGrace Tarpon Investors, Inc.Grace Ventures Corp.Grace Washington, Inc.W. R. Grace CapitalCorporationW. R. Grace & Co.-Conn.W. R. Grace LandCorporation Gracoal, Inc.Gracoal II, Inc.Guanica-CaribeLand Development Corporation Hanover Square CorporationHomcoInternational, Inc.Kootenai Development CompanyL B Realty,Inc.Litigation Management, Inc. Monolith Enterprises,Incorporated Monroe 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/ RobertM.  TarolaIts Senior Vice President or VicePresident        or AuthorizedSignatory |
|--|------------------------------------------------------------------------------------------------------------------------------------------|

[Signature Page toAmendment No. 2 and Limited Waiver toPost-Petition Loan andSecurity Agreement]

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

|  | By:    MRA Staffing Systems,Inc., a General Partner |
|--|-------------------------------------------------------------------------|

|  |        |                                                   |
|--|--------|---------------------------------------------------|
|  |   | By: /s/ RobertM.  TarolaIts: Authorized Signatory |

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

|  |        |                                                  |
|--|--------|--------------------------------------------------|
|  |   | By: /s/ RobertM.  TarolaIts: AuthorizedSignatory |

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

|  | By: Grace A-B II, Inc., a GeneralPartner |
|--|------------------------------------------|

|  |        |                                                  |
|--|--------|--------------------------------------------------|
|  |   | By: /s/ Robert M.TarolaIts: Authorized Signatory |

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

|  |        |                                                  |
|--|--------|--------------------------------------------------|
|  |   | By: /s/ RobertM.  TarolaIts: AuthorizedSignatory |

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

|  | By: Grace H-G, Inc., a GeneralPartner |
|--|---------------------------------------|

|  |        |                                                  |
|--|--------|--------------------------------------------------|
|  |   | By: /s/ Robert M.TarolaIts: Authorized Signatory |

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

|  |        |                                                  |
|--|--------|--------------------------------------------------|
|  |   | By: /s/ RobertM.  TarolaIts: AuthorizedSignatory |

[Signature Page to Amendment No. 2and Limited Waiver toPost-Petition Loan and SecurityAgreement]

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

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

|  |        |                                                   |
|--|--------|---------------------------------------------------|
|  |   | By: /s/ RobertM.  TarolaIts: Authorized Signatory |

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

|  |        |                                                  |
|--|--------|--------------------------------------------------|
|  |   | By:/s/ Robert M.  TarolaIts: AuthorizedSignatory |

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

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

|  |        |                                                  |
|--|--------|--------------------------------------------------|
|  |   | By: /s/Robert M.  TarolaIts: AuthorizedSignatory |

[Signature Page to Amendment No. 2and Limited Waiver toPost-Petition Loan and SecurityAgreement]

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

|  | By: /s/ Kysha A.White            Kysha A. WhiteTitle: AssistantVice PresidentAddress: Two Tower CenterBlvd. |
|--|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

|  | By: /s/JosephFratusTitle: Joseph Fratus, First Vice President Address:565 5th Avenue |
|--|--------------------------------------------------------------------------------------|

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

|  | AMSOUTH BANK |
|--|--------------|

|  | By:/s/ Frank D. MarsicanoTitle: Attorney in FactAddress:350 Park Avenue |
|--|-------------------------------------------------------------------------|

|  | New York, New York10022Attention: Frank Marsicano |
|--|---------------------------------------------------|

|  | AmSouthCapital Corp.Facsimile: (212)935-7458 |
|--|----------------------------------------------|

[Signature Page to Amendment No. 2 andLimited Waiver toPost-Petition Loan and SecurityAgreement]

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|  | TRANSAMERICA BUSINESSCAPITALCORPORATION |
|--|-----------------------------------------|

|  | /s/ Michael S.BurnsBy: Michael S. BurnsSVP — RegionManagerAddress: 555 Theodore FremdAve. |
|--|-------------------------------------------------------------------------------------------------|

|  | Suite C301Rye, NY 10580Attention:Brian Joyce |
|--|----------------------------------------------|

|  | Facsimile: (914)921-5883 |
|--|--------------------------|

[Signature Page to Amendment No. 2and Limited Waiver toPost-Petition Loan and SecurityAgreement]

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