Document:

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                                                                    EXHIBIT 4.12

April 5, 2000

Steelcase Financial Services Ltd.
1 Steelcase Road West
Markham, Ontario
L3R 0T3

Attention:  Chief Financial Officer
-----------------------------------

Dear Sirs:

Royal Bank of Canada (the "Bank") is pleased to offer Steelcase Financial
Services Ltd. (the "Borrower") a non-revolving, single advance term credit
facility (the "Credit Facility"), subject to the following terms and conditions.

1.        DEFINITIONS:
          In addition to the terms already defined herein, the definitions
          attached hereto in Schedule "A" are incorporated in this agreement by
          reference as if set out in full herein (collectively this agreement
          and all schedules attached hereto, as amended from time to time, are
          referred to as the "Agreement"). Unless otherwise provided, all
          accounting terms used herein shall be interpreted in accordance with
          GAAP.

2.        AMOUNT:
          The amount (the "Amount") available under the Credit Facility equals
          Forty Five Million Two Hundred Ninety Two Thousand Nine Hundred Thirty
          Three and 28/100 Dollars ($45,292,933.28) and has been determined by
          calculating the present value of all remaining lease payments
          (excluding taxes) owing to the Borrower by the lessees pursuant to the
          Leases. Present value shall be calculated by discounting to the
          present at the Interest Rate (as defined in Section 6 hereof) all such
          remaining lease payments (excluding taxes).

3.        CREDIT FACILITY:
          The Credit Facility is available by way of a fixed rate term advance
          (the "Borrowing").

4.        PURPOSE
          The Borrower shall use the Credit Facility to repay an inter-company
          loan advanced to the Borrower by Steelcase Canada Ltd.

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5.        AVAILABILITY:
          The Borrower may borrow by way of a single advance to be made no later
          than April 28, 2000 (or such later date, as the Bank and the Borrower
          may agree) by giving two (2) Business Days' notice of its intention to
          draw.

6.        INTEREST RATE:
          The per annum interest rate applicable to the Borrowing shall be equal
          to 6.58% (the "Interest Rate"). The Interest Rate shall be calculated
          on the basis of actual number of days elapsed and a year of 365 days.

7.        PAYMENT ADJUSTMENT:
          (a)  If the ratio of the Guarantor's Funded Debt to EBITDA becomes
               greater than 2.0 to 1.0, as evidenced by the Guarantor's
               quarterly financial statements delivered by the Guarantor in
               accordance with the Guarantee, then, the Bank may calculate the
               present value of all the then remaining lease payments (excluding
               taxes) owing to the Borrower by the lessees pursuant to the
               Leases using (i) the Discount Rate, and (ii) the Discount Rate +
               0.15%. Following any such calculation, the Bank may deliver a
               written notice to the Borrower requiring that the Borrower pay
               the Bank an amount equal to the difference obtained when the
               present value as calculated in (i) above is deducted from the
               present value as calculated in (ii) above. Any such requirement
               given by the Bank shall be accompanied by the Bank's supporting
               calculations which shall constitute prima facie evidence of the
               amount required to be paid. Payment shall be made within 5
               Business Days of receipt of such written requirement for payment.

          (b)  If following a payment made pursuant to subsection 7(a) above,
               the ratio of the Guarantor's Funded Debt to EBITDA becomes less
               than or equal to 2.0 to 1.0 as evidenced by the Guarantor's
               quarterly financial statements delivered by the Guarantor in
               accordance with the Guarantee, then the Borrower may calculate
               the present value of all the then remaining lease payments
               (excluding taxes) owing to the Borrower by the lessees pursuant
               to the Leases using (i) the Discount Rate, and (ii) the Discount
               Rate + 0.15%. Following any such calculation, the Borrower may
               deliver a written notice to the Bank requiring that the Bank
               advance a Borrowing at the rate, amortization and other terms
               described herein to the Borrower of an amount equal to the
               difference obtained when the present value as calculated in (i)
               above is deducted from the present value as calculated in (ii)
               above. Any such requirement given by the Borrower shall be
               accompanied by the Borrower's supporting calculations which shall
               constitute prima facie evidence of the amount required to be
               paid. Payment shall be made within five Business Days of receipt
               of such written requirement for payment.

8.        TIME AND PLACE OF PAYMENT:

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                                      -3-

               Payments of principal, interest and all other amounts payable by
               the Borrower pursuant to this Agreement shall be paid at the
               Branch of Account in Canadian Dollars. Each payment under this
               Agreement shall be made for value on the day such payment is due,
               provided that if any such day is not a Business Day such payment
               shall be deemed for all purposes of this Agreement to be due on
               the Business Day next following such day and all interest and
               other fees shall continue to accrue until payment. Interest and
               fees payable under this Agreement are payable both before and
               after any or all of default, demand and judgment.

9.             PREPAYMENT:
               Upon 5 Business Days prior written notice to the Bank, the
               Borrower may voluntarily prepay any portion of the Borrowing in
               the minimum amount of Cdn$1,000,000 and increments thereof. Any
               such prepayment shall be applied in the reverse order of maturity
               and payable pursuant to the Repayment Schedule attached hereto as
               Schedule B.

               If the Bank shall make a claim to the Borrower pursuant to
               Sections 13 (Increased Costs) or 19 (Indemnities) hereof, the
               Borrower, upon 5 Business Days prior written notice to the Bank,
               shall have the option at its sole discretion to voluntarily
               prepay all of the Borrowing without paying breakage costs
               referenced in Section 10 hereof to the Bank.

10.            BREAKAGE COSTS:
               In the event of a voluntary prepayment pursuant to Section 9
               hereof or an acceleration pursuant to Section 18, the Borrower
               shall be subject to breakage costs as described in this Section
               10. Breakage costs shall be assessed in addition to amounts owing
               for principal and accrued interest on the Borrowings. Breakage
               costs shall equal the difference (but only if a positive number)
               between (a) the present value of the scheduled payments of
               principal and interest subject to prepayment (calculated in the
               inverse order of maturity in the case of any partial prepayment
               of the Borrowings), in each case discounted at the Discount Rate
               less (b) the present value of the scheduled payments of principal
               and interest subject to prepayment (calculated in the inverse
               order of maturity in the case of any partial prepayment of the
               Borrowings), in each case discounted at the Interest Rate and in
               each case reasonably determined by the Bank on the Business Day
               following the date of such voluntary prepayment or acceleration
               following an Event of Default.

11.            REPAYMENT OF CREDIT FACILITY:
               Subject to acceleration following an Event of Default, the Amount
               shall be repaid in blended payments of principal and interest in
               the amounts, at the times specified in Schedule "B", and in
               accordance with the following wiring instructions:

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                              Royal Bank of Canada
                           77 King St West, 9th Floor
                               Toronto Ont M5W 1P9
                   For Credit of: Royal Bank of Canada Leasing
                  Account Number: 110-568-3, Transit 05512:003
    Reference: Steelcase Financial Services Ltd. Ref. #33615, Contract #60180

               Any amount payable by the Borrower to the Bank hereunder which is
               not paid when due, shall bear interest, from the due date
               thereof, payable on demand, and calculated and compounded
               monthly, both before and after demand and judgement, at an annual
               rate of interest fluctuating with and at all times equal to 2%
               per annum above the Royal Bank Prime. The rate of interest
               charged hereunder shall change automatically without any notice
               to the Borrower as and when changes in Royal Bank Prime occurs.

12.            EVIDENCE OF INDEBTEDNESS:
               The Bank shall open and maintain at the Branch of Account
               accounts and records evidencing the Borrowing made available to
               the Borrower by the Bank under this Agreement. The Bank shall
               record the principal amount of the Borrowing, the payment of
               principal and interest and all other amounts owing to the Bank.

               The Bank's accounts and records constitute, in the absence of
               manifest error, conclusive evidence of the indebtedness of the
               Borrower to the Bank.

13.            INCREASED COSTS:
               If, in the reasonable opinion of the Bank, the Bank is now or
               hereafter becomes subject to, or there is a change in:

               (a)   any reserve, special deposit, deposit insurance or similar
                     requirement against assets of, or deposits in or for the
                     account of, or credit extended by, or any acquisition of
                     funds by, the Bank,

               (b)   any reserve, special deposit or similar requirement with
                     respect to the Borrowing or the undrawn portion of all or
                     any part of the Credit Facility,

               (c)   taxation of, or the basis of, taxation of any payments due
                     to the Bank hereunder (except for taxes on the overall net
                     income of the Bank),

               (d)   any requirement relating to capital adequacy, or

               (e)   any other condition imposed by Applicable Law or any
                     interpretation of Applicable Law by an entity charged with
                     the administration thereof or any other condition with
                     which financial institutions operating in Canada are
                     accustomed to comply or have generally complied, whether or
                     not having the force of law,

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                                      -5-

               and the result of any of the foregoing, in the reasonable
               determination of the Bank, is to increase the cost to, or to
               reduce any amount received or receivable by, the Bank hereunder,
               or to reduce the Bank's effective return hereunder or on its
               capital to a level below that which the Bank could have otherwise
               achieved (using any reasonable averaging and attribution method),
               the Bank shall determine that amount of money which shall
               compensate it for such increase in cost, or reduction in income,
               or reduction in rate of return on the Bank's capital, and the
               Borrower shall pay such amount of money to the Bank upon demand
               by the Bank, provided that the Borrower shall have no obligation
                            --------
               to pay an additional amount in respect of any increased cost
               attributable to the period before 90 days prior to the date of
               such demand. A certificate as to the amount and manner of
               calculation of such increased cost or reduction, submitted to the
               Borrower shall be conclusive absent manifest error.

14.            ILLEGALITY:
               If the introduction of or any change in Applicable Law makes it
               unlawful or prohibited for the Bank, in its reasonable opinion,
               to perform its obligations under this Agreement, the Bank may, by
               written notice to the Borrower, terminate its obligations under
               this Agreement, and the Borrower shall prepay the Borrowing
               immediately or at the end of such period as the Bank may agree,
               together with all interest and fees which are accrued to the date
               of payment.

15.            CONDITIONS PRECEDENT TO BORROWING:
               (a)   The obligation of the Bank to make available the Borrowing
                     is subject to and conditional upon the receipt, in form and
                     substance satisfactory to the Bank, of:

                     (i)    a duly executed copy of this Agreement;

                     (ii)   a certified copy of the constating documents and
                            by-laws of the Borrower;

                     (iii)  a certified copy of a resolution of the board of
                            directors of the Borrower relating to the Borrower's
                            authority to execute, deliver and perform its
                            obligations under this Agreement and the manner in
                            which and by whom such agreements are to be executed
                            and delivered;

                     (iv)   a certificate of an officer of the Borrower setting
                            forth specimen signatures of the individuals
                            authorized to execute this Agreement as of the date
                            of execution hereof;

                     (v)    a spreadsheet outlining the lessees and payments, by
                            amount and date, due pursuant to the Leases which
                            shall be attached hereto as Schedule F;

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                                      -6-

               (vi)     an opinion of legal counsel to the Borrower
                        substantially in the form of Schedule "C";

               (vii)    a guarantee from the Guarantor;

               (viii)   a certified copy of the constitutive documents and
                        by-laws of the Guarantor;

               (ix)     a standing resolution of the board of directors of the
                        Guarantor relating to the Guarantor's general authority
                        to perform its obligations under the Guarantee and the
                        manner in which and by whom such Guarantee is to be
                        signed and delivered;

               (x)      a certificate of an officer of the Guarantor setting
                        forth specimen signatures of the individuals authorized
                        to execute the Guarantee as of the date of execution
                        thereof;

               (xi)     the opinions of legal counsel to the Guarantor
                        substantially in the form of Schedules "E-1 and E-2".

     (b)       The obligation of the Bank to make available the Borrowing is
               further subject to the following:

               (i)      no event has occurred which constitutes, or which with
                        the giving of notice, lapse of time, or both, or the
                        satisfaction of any other condition, would constitute an
                        Event of Default; and

               (iii)    the receipt by the Bank of such other documents as the
                        Bank may reasonably request.

16.  REPRESENTATIONS AND WARRANTIES:
               The Borrower represents and warrants to the Bank, which
     representations and warranties are repeated as of the time at which each
     payment is due hereunder, that:

               (a)      it is a corporation duly incorporated and validly
                        existing under the laws of the Province of Ontario,
                        Canada, and that it is duly registered or qualified to
                        carry on business under the laws of each jurisdiction in
                        which failure to be so registered or qualified would
                        have a material adverse effect on the Borrower;

               (b)      the execution, delivery and performance of the Agreement
                        has been duly authorized by all necessary actions and
                        does not, to the best knowledge of the Borrower, (A)
                        violate any law, regulation or rule by

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                                       -7-

                        which it is bound, (B) violate any provision of its
                        constating documents, by-laws, (C) result in a breach
                        of, or a default under, any material contractual
                        restriction binding on or affecting the Borrower (D)
                        result in the creation of any encumbrance on any of its
                        properties or assets;

               (c)      subject to applicable bankruptcy, insolvency,
                        moratorium, reorganization and other similar laws
                        affecting creditors' rights generally, and to the
                        equitable and statutory powers of courts to stay
                        proceedings before them and to stay the execution of
                        judgments, the Agreement constitutes a legal, valid and
                        binding obligation of the Borrower, enforceable in
                        accordance with its terms;

               (d)      there is no action, litigation or legal proceeding
                        pending or threatened against the Borrower or any of its
                        assets or properties before any court or administrative
                        agency which, if adversely determined, might in the
                        reasonable judgement of the Borrower (A) result in a
                        material adverse change in the financial condition of
                        the Borrower or its business, properties or other
                        assets, in each case taken as a whole, or (B) materially
                        and adversely affect the ability of the Borrower to
                        perform its obligations under this Agreement;

               (e)      no event has occurred which constitutes, or which with
                        the giving of notice, lapse of time, or both, or the
                        satisfaction of any other condition, would constitute,
                        an Event of Default, or a default having a material
                        adverse effect on its financial condition, under or in
                        respect of any agreement, undertaking or instrument to
                        which it or any of its properties or assets may be
                        subject;

               (f)      to the best of its knowledge, the Borrower is in
                        compliance with all Applicable Laws; and

17.  COVENANTS:

     The Borrower covenants and agrees with the Bank, while this Agreement is in
     effect or the Borrowing is outstanding:

               (a)      to maintain its corporate existence as a validly
                        existing corporate entity;

               (b)      as soon as possible and in any event within five days of
                        the occurrence of such event, to give the Bank notice of
                        any event which constitutes, or which, with the giving
                        of notice, lapse of time, or both, or the satisfaction
                        of any other condition, would constitute an Event of
                        Default;

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                                      -8-

          (c)  to comply with all Applicable Laws except where failure to so
               comply would not have a material adverse effect on the business
               of the Borrower;

          (d)  to ensure that its obligations hereunder rank pari passu with the
               claims of all its other unsecured and unsubordinated creditors
               save those whose claims are preferred solely by any bankruptcy,
               insolvency, liquidation or other similar laws of general
               application; and

          (e)  not to, merge or consolidate with or into, or convey, transfer,
               lease or otherwise dispose of (whether in one transaction or in a
               series of transactions) all or a substantial portion of its
               assets (whether now owned or hereafter acquired) to any Person
               (except in the ordinary course of business and on commercially
               reasonable terms), or enter into any joint venture, syndicate,
               pool or other combination, unless no Event of Default has
               occurred and is continuing or would result therefrom and, in the
               case of a merger or consolidation of the Borrower the new entity
               assumes all of the Borrower's obligations under this Agreement in
               a manner satisfactory to the Bank.

18.  EVENTS OF DEFAULT:

     If any one or more of the following events has occurred and is continuing:

     (a)  the Borrower fails to make payment of (i) principal or interest within
          three Business Days of the date due or (ii) any other amounts due
          under this Agreement within five Business Days of the date due;

     (b)  the Borrower shall fail to perform or observe (i) an term, covenant or
          agreement contained in this Agreement (other than any term, covenant
          or agreement contained in Section 17(a), 17(b) or 17(e)) on its part
          to be performed or observed and the failure to perform or observe such
          other term, covenant or agreement shall remain unremedied for 30 days
          after the Borrower obtains knowledge of such breach or (ii) any term,
          covenant or agreement contained in Section 17(a), 17(b) or 17(e);

     (c)  the Borrower defaults in the payment of any of its Indebtedness in
          excess of Cdn$ 1,000,000 or in the performance or observance of any
          agreement or condition in respect of such Indebtedness where, as a
          result of such default, the maturity of the Indebtedness is or may be
          accelerated;

     (d)  the Guarantor, with respect to the Guarantee, shall fail to perform or
          observe (i) an term, covenant or agreement contained in the Guarantee
          (other than any term, covenant or agreement contained in Section 6(a),
          6(c), 6(d) or 6(h) of the Guarantee) on its part to be performed or
          observed and the failure to perform or observe such other term,
          covenant or agreement shall remain unremedied for 30 days after the
          Guarantor obtains knowledge of such breach or (ii) any

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                                      -9-

          term, covenant or agreement contained in Section 6(a), 6(c), 6(d) or
          6(h) of the Guarantee;

     (e)  the Guarantor defaults in the payment of any of its Indebtedness in
          excess of US$ 25,000,000 or its equivalent in Cdn$ or in the
          performance or observance of any agreement or condition in respect of
          such Indebtedness where, as a result of such default, the maturity of
          the Indebtedness is or may be accelerated;

     (f)  any judgment or order for the payment of money in excess of
          US$25,000,000 or its equivalent in Cdn$ shall be rendered against the
          Guarantor and either (i) enforcement proceedings shall have been
          commenced by any creditor upon a final or nonappealable judgment or
          order or (ii) there shall be any period of 10 consecutive days during
          which a stay of enforcement of such judgment or order, by reason of a
          pending appeal or otherwise, shall not be in effect;

     (g)  any representation or warranty made or deemed to have been made herein
          by the Borrower or in the Guarantee by the Guarantor shall be
          incorrect in any materially adverse respect when made;

     (h)  the Borrower or the Guarantor is unable to pay debts as such debts
          become due, or is, or is adjudged or declared to be, or admits to
          being, bankrupt or insolvent;

     (i)  any notice of intention is filed or any voluntary or involuntary case
          or proceeding is filed or commenced by or against Borrower or
          Guarantor under any Applicable Law for the:

          (i)   bankruptcy, liquidation, winding-up, dissolution or suspension
                of general operations,

          (ii)  composition, re-scheduling, reorganization, arrangement or
                readjustment of, or other relief from, or stay of proceedings to
                enforce, some or all of the debts,

          (iii) appointment of a trustee, receiver, receiver and manager,
                liquidator, administrator, custodian or other official for, a
                significant part of the assets, or

          (iv)  possession, foreclosure or retention, or sale or other
                disposition of, or other proceedings to enforce security over, a
                significant part of the assets

          and in the case of any involuntary proceeding against Borrower or the
          Guarantor, such involuntary proceeding shall remain undismissed or
          unstayed for a period of 60 days;

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                                      -10-

     (j)  any secured creditor, encumbrancer or lienor, or any trustee,
          receiver, receiver and manager, agent, bailiff or other similar
          official appointed by or acting for any secured creditor, encumbrancer
          or lienor, takes possession of, or forecloses or retains, or sells or
          otherwise disposes of, or otherwise proceeds to enforce security over
          a significant part of the assets of the Borrower or the Guarantor or
          gives notice of its intention to do any of the foregoing; and

     (k)  the Guarantee is or becomes unenforceable for any reason whatsoever,

     then, in such event the Bank shall have no obligation to honour any cheques
     or other orders for payment and the Bank may, by written notice to the
     Borrower, declare the outstanding Borrowing to be immediately due and
     payable and may without notice apply any amounts outstanding to the credit
     of the Borrower to repayment of the outstanding Borrowing. Upon receipt of
     such written notice, the Borrower shall immediately pay to the Bank all
     amounts of the outstanding Borrowing together with any breakage costs as
     determined by the Bank in accordance with Section 10 hereof.

19.  INDEMNITIES:
     The Borrower hereby agrees to indemnify and hold the Bank and its
     directors, officers and employees harmless from and against any and all
     claims, suits, actions, debts, damages, costs, losses, obligations,
     judgments, charges, expenses and liabilities of any nature whatsoever
     (including reasonable legal fees on a solicitor and client basis) which are
     sustained or incurred as a consequence of:

     (a)  any breach by the Borrower under any of the provisions of this
          Agreement or in any document or instrument delivered in connection
          herewith; or

     (b)  the Bank acting upon instructions given or agreements made over the
          telephone or by electronic transmission of any type (either relating
          only to the Borrower and the Bank or involving crediting the accounts
          of third parties) with Persons reasonably believed by the Bank to have
          been acting on the Borrower's behalf.

     It is the intention of the Borrower and the Bank that the provisions of
     this section shall supersede any other provisions in this Agreement which
     in any way limit the liability of the Borrower; and that the Borrower shall
     be liable for any obligations arising under this section even if the amount
     of the liability incurred exceeds the amount of the Borrowing. The
     obligations of the Borrower arising under this section are absolute and
     unconditional and shall not be affected by any act, omission, or
     circumstance whatsoever, whether or not occasioned by the fault of the Bank
     except in respect of bad faith, gross negligence or wilful misconduct by
     the Bank. This section shall survive the repayment of the Borrowing and
     shall survive the

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                                      -11-

     transfer of any or all right, title and interest in and to the Borrower's
     property by the Borrower to any party, whether or not affiliated with the
     Borrower.

20. SUCCESSORS; ASSIGNS; ASSIGNMENT; AND PARTICIPATION:
    This Agreement shall be binding upon and enure to the benefit of the Bank,
    the Borrower and their respective successors and permitted assigns. The
    Borrower cannot assign or transfer all or any of its rights and obligations
    hereunder without the prior written consent of the Bank.

     (a)  The Bank may assign or transfer all or any portion of its rights and
          obligations under the Credit Facility to any Person; provided, that
          for so long as no Event of Default has occurred and is continuing, the
          Bank's assignment or transfer hereunder shall require the prior
          written consent of the Borrower and the Guarantor, such consent not to
          be unreasonably withheld. After any such assignment or transfer, such
          Person shall be deemed to be the "Bank" to the extent of the rights
          and obligations assigned and transferred to it, shall be entitled to
          the full benefit of this Agreement and shall be subject to the rights
          and obligations assigned to it, and the Bank shall be irrevocably
          released and discharged accordingly to the same extent. To the extent
          that such assignment would, at any time after such assignment, result
          in increased costs under Section 13 above those being applicable to
          and otherwise charged by the assigning Bank, then the Borrower shall
          not be obligated to pay such increased costs.

     (b)  The Bank may, without the consent of the Borrower or the Guarantor,
          grant a participation in all or any portion of the Credit Facility to
          any Person (a "Participant"); provided, however, that (i) the Bank's
                                        --------  -------
          obligations under this Agreement shall remain unchanged, (ii) the Bank
          shall remain solely responsible to the Borrower for the performance of
          such obligations; (iii) the Borrower and the Guarantor shall continue
          to deal solely and directly with the Bank in connection with the
          Bank's rights and obligations under the Agreement, (iv) the Bank shall
          notify the Borrower of the sale of the participation, (v) the Bank
          shall not grant any participation under which the Participant shall
          have rights to require such Bank to take or omit to take any action
          hereunder or under the Guarantee or approve any amendment to or waiver
          of this Agreement or the Guarantee, except to the extent such
          amendment or waiver would: (A) extend the Maturity Date; or (B) reduce
          the interest rate or the amount of principal applicable to Borrowing
          in which such Participant is participating or change the date on which
          interest or principal applicable to the Borrowing in which such
          Participant is participating are payable, and (vii) the Person
          purchasing such participation shall agree to customary provisions
          relating to the confidentiality of non-public information received by
          such Person in connection with its purchase of the participation.

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                                      -12-

     (c)  The Bank may, in connection with any assignment or participation or
          proposed assignment or participation pursuant to this Section,
          disclose to the assignee or Participant or proposed assignee or
          Participant, any information relating to the Borrower furnished to the
          Bank by the Borrower or the Guarantor; provided that, prior to any
                                                 --------
          such disclosure, the assignee or Participant or proposed assignee or
          Participant shall agree to preserve the confidentiality of any
          confidential information relating to the Borrower or the Guarantor
          received by it from the Bank.

21.  MISCELLANEOUS:
     (a)  Expenses. The Borrower shall pay the reasonable fees and expenses
          --------
          incurred by the Bank in connection with the operation of the Credit
          Facility including the enforcement of the Bank's rights hereunder and
          under any other document delivered pursuant to this Agreement, whether
          or not any amounts are advanced hereunder.

     (b)  Limit on Rate of Interest. The Borrower shall not be obligated to pay
          -------------------------
          any interest under or in connection with this Agreement to the extent
          such interest exceeds the effective annual rate of interest on the
          credit advanced hereunder that would be lawfully permitted under the
          Criminal Code. For purposes of this section, "interest" and "credit
          -------------
          advanced" have the meanings ascribed to such terms in the Criminal
                                                                    --------
          Code, and the "effective annual rate of interest" shall be calculated
          ----
          in accordance with generally accepted actuarial practices and
          principles.

     (c)  Notices. Any notice or demand hereunder shall be given in writing by
          -------
          telecopier or letter, at the addresses listed below. A telecopier
          communication shall be deemed received on the date of transmission
          provided such transmission is received prior to 5:00 p.m. on a day on
          which the receiving party's office is open for normal business, and
          otherwise on the next such day. A letter shall be deemed received when
          hand-delivered to the receiving party, at the address shown herein or
          at such other address as the receiving party may notify the other from
          time to time. Each party shall be bound by any notice given hereunder
          and entitled to act in accordance therewith, unless otherwise agreed.
          The addresses of the parties for the purpose hereof shall be:

          as to the Borrower:

                               Steelcase Financial Services Ltd.
                               1 Steelcase Road West
                               Markham, Ontario  L3R 0T3

                               Attention:        Thomas P. Sullivan,
                                                 Vice President
                               Telecopier:       (616) 698-3863

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                                      -13-

          With a copy to the Guarantor:
                             Steelcase Inc.
                             901 44th Street SE
                             CH-2E-06
                             Grand Rapids, MI  49508

                             Attention:   General Counsel
                             Telecopier:  (616) 248 7010

          as to the Bank:    Royal Bank of Canada
                             33 City Centre Drive
                             Mississauga, Ontario   L5B 2N5

                             Attention:   Senior Manager
                             Telecopier:  (905) 897-8114

          or such other address for delivery as each party from time to time may
          notify the other as aforesaid.

     (d)  Set Off. Upon the occurrence and during the continuance of an Event of
          -------
          Default, the Bank may, at any time and without notice, apply any
          credit balance (whether or not then due) to which the Borrower is then
          beneficially entitled on any account (in any currency) at any branch
          or office of the Bank in or towards satisfaction of the obligations
          and liabilities of the Borrower due to the Bank under this Agreement.
          For that purpose, the Bank is irrevocably authorized to use all or any
          part of any such credit balance to buy such other currencies as may be
          necessary to effect such application.

     (e)  Amendments and Waivers. No amendment, modification or waiver of any
          ----------------------
          provision of this Agreement or consent to any departure by the
          Borrower from any provision of this Agreement will in any event be
          effective unless it is in writing signed by the Borrower and the Bank,
          and then the amendment, modification, waiver or consent will be
          effective only in the specific instance, for the specific purpose and
          for the specific length of time for which it is agreed between the
          Borrower and the Bank. No failure to exercise and no delay in
          exercising on the part of the Bank, any right, power or privilege
          hereunder shall operate as a waiver thereof, nor shall any single or
          partial exercise of any right, power or privilege preclude any other
          right, power or privilege.

     (f)  Further Assurances. The Borrower shall from time to time promptly upon
          ------------------
          the request of the Bank take such action and execute and deliver such
          further

<PAGE>

                                      -14-

          documents, as shall be reasonably required in order to fully perform
          the terms of, and to carry out the intention of, this Agreement.

     (g)  Severability. If any provision of this Agreement is or becomes
          ------------
          prohibited or unenforceable in any jurisdiction, such prohibition or
          unenforceability shall not invalidate or render unenforceable the
          provision concerned in any other jurisdiction nor invalidate, affect
          or impair any of the remaining provisions hereof.

     (h)  Governing Law and Submission to Jurisdiction. This Agreement shall be
          --------------------------------------------
          construed in accordance with and governed by the laws of the Province
          of Ontario and of Canada applicable therein. The Borrower irrevocably
          submits to the non-exclusive jurisdiction of the courts of such
          Province and acknowledges the competence of such courts and
          irrevocably agrees to be bound by a judgement of any such court.

     (i)  Whole Agreement. This Agreement and any agreements delivered pursuant
          ---------------
          to or referred to in this Agreement constitute the whole and entire
          agreement between the parties in respect of the Credit Facility, and
          cancel and supersede any prior written or verbal agreements including
          undertakings, declarations or representations made with respect
          thereto.

     (j)  Time. Time shall be of the essence in all provisions of this
          ----
          Agreement.

     (k)  Counterparts. This Agreement may be executed in any number of
          ------------
          counterparts, each of which when executed and delivered is an original
          but all of which taken together constitute one and the same
          instrument, and any party may execute this Agreement by signing any
          counterpart of it.

     (l)  Effective Date. Except as otherwise provided in this Agreement, the
          --------------
          date on which this Agreement becomes effective is the date appearing
          on the first page hereof.

Please acknowledge your acceptance of the above terms and conditions by signing
the attached copy of this letter in the space provided below and returning it to
the undersigned.

         [The remainder of this page has been left blank intentionally.]

<PAGE>

Yours truly,

ROYAL BANK OF CANADA

By:  /s/ John Liddy
    ----------------------------------------
Name/Title:   John D. Liddy
              Senior Market Manager & Group Head

By:  /s/ W. B. Flick
    ----------------------------------------
Name/Title:   W. B. Flick
              Senior Manager

We acknowledge and accept the terms and conditions of this Agreement on the
5/th/ day of April, 2000 which acceptance is effective as of the date first
above written.

STEELCASE FINANCIAL SERVICES LTD.

By:  /s/ John D. Botsford
    ----------------------------------------
Name/Title: John D. Botsford, Secretary
            --------------------------------

<PAGE>

                                      -16-

Schedule "A" to the Agreement dated as of the 5/th/ day of April, 2000 between
Steelcase Financial Services Ltd. as the Borrower and Royal Bank of Canada as
the Bank.

                                   DEFINITIONS
                                   -----------

"Applicable Law" means, in respect of any Person, property, transaction or
event, all present or future applicable laws, statutes, regulations, treaties,
judgments and decrees and (whether or not having the force of law) all
applicable official directives, rules, guidelines, orders, by-laws, approvals,
permits, consents and policies of any governmental or regulatory body, stock
exchange or securities commission having jurisdiction;

"Branch of Account" means the Bank's branch at Mississauga, Ontario;

"Business Day" means a day, excluding Saturday, Sunday and any other day which
shall be in the City of Toronto a legal holiday or a day on which banking
institutions are closed;

"Canadian Dollars" and the symbols "Cdn$" and "$" each means lawful money of
Canada;

"Criminal Code" means the Canada Criminal Code.

"Discount Rate" means, at any time, the lesser of (a) the Interest Rate less one
half of one percent (.5%) and (b) the bid rate at such time, expressed as a
percentage per annum, on Government of Canada bonds or notes falling due on the
date closest to the weighted average maturity of the payments subject to
discounting.

"EBITDA" means, for any period, consolidated net income plus provision for taxes
of the Guarantor and its Subsidiaries (excluding extraordinary, unusual, or
nonrecurring gains or losses), plus interest expense of the Guarantor and its
Subsidiaries, plus depreciation expense of the Guarantor and its Subsidiaries,
plus amortization of intangibles of the Guarantor and its Subsidiaries, as
determined on a consolidated basis in conformity with GAAP;

"Event of Default" means each of the events listed in the section entitled
"Events of Default";

"Funded Debt" means (i) indebtedness for borrowed money or for the deferred
purchase price of property or services, (ii) obligations as lessee under capital
leases, or (iii) obligations under guarantees in respect of indebtedness or in
respect of obligations of others of the kinds referred to in clause (i) or (ii)
above;

"GAAP" means generally accepted accounting principles in effect from time to
time, in the case of the Borrower, in Canada, and in the case of the Guarantor,
the United States of America, in each case applied in a consistent manner from
period to period;

<PAGE>

                                      -17-

"Guarantor" means Steelcase Inc., a corporation incorporated under the laws of
the state of Michigan, United States of America;

"Indebtedness" means (a) indebtedness for borrowed money or for the deferred
purchase price of goods or services (including trade obligations), (b)
obligations under leases which are or should be reported, in accordance with
GAAP, as capital leases, (c) obligations under letters of credit or guarantee,
whether issued for the benefit of the Borrower or another or others, (d)
obligations arising pursuant to bankers' acceptance facilities, (e) obligations
under guarantees, endorsements (other than for collection or deposit in the
ordinary course of business) and other obligations to purchase, provide funds
for payment, provide funds for investment in or otherwise provide financial
assistance to any other entity but "Indebtedness" does not include (x) deferred
                                                  ---- --- -------
taxes or (y) Subordinated Debt (including the current portion of Subordinated
Debt);

"Interest Expense" has the meaning set forth by GAAP;

"Leases" means those leases identified in Schedule "F";

"Maturity Date" means the last payment date as set forth in the Repayment
Schedule attached hereto as Schedule B as such Schedule B may be modified
pursuant to a prepayment by the Borrower, unless the Credit Facility has been
extended by the Bank, in which case it shall be the date to which the Credit
Facility has been extended;

"Person" means any individual, firm, partnership, company, corporation,
government, governmental body or agency, instrumentality and unincorporated body
of persons or association;

"Royal Bank Prime" means the annual rate of interest announced by the Bank from
time to time as being a reference rate then in effect for determining interest
rates on Canadian Dollar commercial loans made in Canada;

"Shareholders' Equity" means the aggregate of stated capital, retained earnings
and Subordinated Debt;

"Subordinated Debt" of a Person means indebtedness for borrowed money fully
subordinated, both as to principal and interest, on terms satisfactory to the
Bank, to such Person's obligations to the Bank;

"Subsidiary" of a Person means (i) any corporation of which the Person and/or
any one or more of its Affiliates holds, directly or beneficially, other than by
way of security only, securities to which are attached more than 50% of the
votes that may be cast to elect directors, managers or trustees thereof or (ii)
a corporation, association, partnership or other business entity of which the
Person and/or any one or more of its Affiliates has, through operation of law or
otherwise, the ability to elect or cause the election of a majority

<PAGE>

                                      -18-

of the directors, managers or trustees thereof and "Subsidiaries" of such Person
mean all such corporations; and

"US Dollars" and "US$" each means lawful money of the United States of America
in same day immediately available funds or, if such funds are not available, the
form of money of the United States of America that is customarily used in the
settlement of international banking transactions on the day payment is due
hereunder.

<PAGE>

                                      -19-

Schedule "B" to the Agreement dated as of the 5/th/ day of April, 2000 between
Steelcase Financial Services Ltd. as the Borrower and Royal Bank of Canada as
the Bank.

                               REPAYMENT SCHEDULE
                               ------------------

          Schedule "B"
          Repayment of Credit Facility
          ----------------------------

                     Date               Payments              Balance O/S
                     ----               --------              -----------
                     May 1, 2000        1,073,388.03          51,586,554.97
                    June 1, 2000        1,072,963.67          50,513,591.30
                    July 1, 2000        1,069,067.53          49,444,523.77
                  August 1, 2000        1,058,740.10          48,385,783.67
               September 1, 2000        1,058,740.10          47,327,043.57
                 October 1, 2000        1,058,335.30          46,268,708.27
                November 1, 2000        1,054,219.15          45,214,489.12
                December 1, 2000        1,052,907.53          44,161,581.59
                 January 1, 2001        1,038,775.63          43,122,805.96
                February 1, 2001        1,032,599.68          42,090,206.28
                   March 1, 2001        1,024,248.98          41,065,957.30
                   April 1, 2001        1,012,563.25          40,053,394.05
                     May 1, 2001        1,010,129.18          39,043,264.87
                    June 1, 2001          996,088.27          38,047,176.60
                    July 1, 2001          990,209.18          37,056,967.42
                  August 1, 2001          983,894.41          36,073,073.01
               September 1, 2001          981,333.87          35,091,739.14
                 October 1, 2001          978,413.92          34,113,325.22
                November 1, 2001          975,569.30          33,137,755.92
                December 1, 2001          968,313.42          32,169,442.50
                 January 1, 2002          964,471.58          31,204,970.92
                February 1, 2002          959,191.60          30,245,779.32
                   March 1, 2002          957,608.88          29,288,170.44
                   April 1, 2002          953,940.73          28,334,229.71
                     May 1, 2002          927,227.43          27,407,002.28
                    June 1, 2002          918,531.47          26,488,470.81
                    July 1, 2002          907,127.78          25,581,343.03
                  August 1, 2002          886,470.54          24,694,872.49
               September 1, 2002          850,384.47          23,844,488.02
                 October 1, 2002          844,195.46          23,000,292.56
                November 1, 2002          826,002.30          22,174,290.26
                December 1, 2002          816,778.87          21,357,511.39
                 January 1, 2003          804,924.83          20,552,586.56

<PAGE>

                                      -20-

                February 1, 2003          790,670.77         19,761,915.79
                   March 1, 2003          789,925.74         18,971,990.05
                   April 1, 2003          769,838.60         18,202,151.45
                     May 1, 2003          766,799.00         17,435,352.45
                    June 1, 2003          757,274.53         16,678,077.92
                    July 1, 2003          741,020.00         15,937,057.92
                  August 1, 2003          721,808.35         15,215,249.57
               September 1, 2003          720,314.98         14,494,934.59
                 October 1, 2003          712,195.17         13,782,739.42
                November 1, 2003          705,046.84         13,077,692.58
                December 1, 2003          704,607.66         12,373,084.92
                 January 1, 2004          690,476.68         11,682,608.24
                February 1, 2004          649,748.10         11,032,860.14
                   March 1, 2004          645,568.43         10,387,291.71
                   April 1, 2004          632,368.15          9,754,923.56
                     May 1, 2004          623,282.18          9,131,641.38
                    June 1, 2004          615,631.20          8,516,010.18
                    July 1, 2004          601,604.71          7,914,405.47
                  August 1, 2004          592,280.84          7,322,124.63
               September 1, 2004          564,907.88          6,757,216.75
                 October 1, 2004          552,274.74          6,204,942.01
                November 1, 2004          544,368.17          5,660,573.84
                December 1, 2004          526,778.87          5,133,794.97
                 January 1, 2005          496,622.70          4,637,172.27
                February 1, 2005          459,499.15          4,177,673.12
                   March 1, 2005          454,992.08          3,722,681.04
                   April 1, 2005          443,817.32          3,278,863.72
                     May 1, 2005          431,473.66          2,847,390.06
                    June 1, 2005          410,194.90          2,437,195.16
                    July 1, 2005          389,012.40          2,048,182.76
                  August 1, 2005          378,330.11          1,669,852.65
               September 1, 2005          366,491.98          1,303,360.67
                 October 1, 2005          191,433.08          1,111,927.59
                November 1, 2005          122,032.60            989,894.99
                December 1, 2005          113,241.74            876,653.25
                 January 1, 2006          112,825.51            763,827.74
                February 1, 2006          104,141.53            659,686.21
                   March 1, 2006          101,502.83            558,183.38
                   April 1, 2006           99,306.03            458,877.35
                     May 1, 2006           87,855.96            371,021.39
                    June 1, 2006           64,326.67            306,694.72
                    July 1, 2006           63,139.45            243,555.27
                  August 1, 2006           62,309.32            181,245.95

<PAGE>

                                      -21-

               September 1, 2006          181,245.95                  0.00

          Gross Payments               52,659,943.00

<PAGE>

                                      -22-

Schedule "C" to the Agreement dated as of the 5/th/ day of April, 2000 between
Steelcase Financial Services Ltd. as the Borrower and Royal Bank of Canada as
the Bank.

                                                                 [ ______], 2000

Royal Bank of Canada
[ADDRESS]

Attention: [    ]
-----------------

Dear Sirs:

Re:      Credit Facility Provided by Royal Bank of Canada to Steelcase Financial
         -----------------------------------------------------------------------
         Services Ltd.
         -------------

     We are special Canadian counsel to Steelcase Financial Services Ltd. (the
"Borrower") and have represented the Borrower in connection with the
authorization, execution, and delivery by the Borrower of a letter credit
agreement issued by Royal Bank of Canada (the "Bank") and dated as of the [ ]
day of [ ], 2000 and acknowledged and accepted by the Borrower on the [ ] day of
[ ], 2000(the "Credit Agreement").

Scope of Inquiry
----------------

     In connection with the foregoing, we have considered such statutes and
regulations of the Province of Ontario and of Canada of general application to
the Borrower as at the date of this opinion, and have conducted such
examinations and investigations as we have considered necessary as a basis for
the opinions expressed herein. For the purposes of providing this opinion we
have reviewed:

         (a)      copies of the articles of incorporation and amendment thereto,
                  general by-law, minutes of meetings of each of the board of
                  directors and the sole shareholder and directors' and sole
                  shareholder's resolutions in lieu of such meetings, and
                  shareholders' register of the Borrower (collectively, the
                  "Corporate Records");

         (b)      a certificate of status (the "Certificate of Status") in
                  respect of the Borrower issued under the authority of the
                  Director of Companies Branch, Ministry of

<PAGE>

                                      -23-

                  Consumer and Commercial Relations (Ontario) dated
                  the 24/th/ day of March, 2000 (a copy of which is attached
                  hereto as Exhibit "A");

         (c)      a certificate of the [name of officer/director] of the
                  Borrower dated the [ ] day of [ ], 2000 respecting various
                  corporate and other matters relevant to the Credit Agreement
                  (the "Officer's Certificate") (a copy of which is being
                  delivered herewith); and

         (d)      a signed copy of the Credit Agreement forwarded to us by
                  telefax.

     Except with respect to limited matters, we have not acted as counsel to the
Borrower in a capacity other than as stated above and in particular, have not
generally acted as corporate counsel to the Borrower. Furthermore, we have not
been involved in the preparation, drafting, or negotiation of the Credit
Agreement.

     We are solicitors qualified in the Province of Ontario, Canada and
accordingly no opinion is expressed herein as to the laws of any jurisdiction
other than Ontario and the laws of Canada applicable therein.

Assumptions
-----------

     For purposes of providing this opinion, we have relied solely on the
reviews, investigations and documents as described above and have assumed:

         (a)      the genuineness of all signatures, the authenticity of all
                  documents submitted to us as originals and the conformity
                  to authentic original documents of all documents submitted to
                  us as copies;

         (b)      that the Corporate Records of the Borrower provided to us,
                  together with the resolution of the board of directors
                  attached as Exhibit "D" to the Officer's Certificate, are true
                  and complete copies of all of the articles of incorporation
                  and all amendments thereto, all by-laws which are in full
                  force and effect, all minutes of meetings of each of the board
                  of directors and the sole shareholder and directors' and sole
                  shareholder's resolutions in lieu of such meetings, and all
                  shareholders' registers of the Borrower;

         (c)      that the Credit Agreement has been properly authorized,
                  executed and delivered by the Bank and that as of the date of
                  this opinion no steps or actions have been taken to revoke,
                  rescind or modify any such authorizations;

         (d)      that the Credit Agreement has been executed and delivered to
                  the Bank by a director or officer of the Borrower;

         (e)      that the Certificate of Status continues to be accurate as of
                  the date hereof;

<PAGE>

                                      -24-

                  and

         (f)      that all facts set forth in official public records and
                  certificates and other documents supplied by public officials
                  or otherwise conveyed to us by public officials are complete,
                  true and accurate.

Qualifications
--------------

         Our opinions expressed herein are also subject to the following
qualifications:

         (a)      the Credit Agreement is only enforceable to the extent that
                  monies have been advanced by the Bank to the Borrower;

         (b)      enforceability of the Credit Agreement may be limited by
                  applicable bankruptcy, insolvency, reorganization, moratorium
                  or other similar laws affecting the enforceability of
                  creditors' rights generally;

         (c)      equitable remedies, including the remedies of specific
                  performance and injunction, may only be granted in the
                  discretion of a court of competent jurisdiction;

         (d)      the Bank may not be able to enforce provisions of the Credit
                  Agreement which purport to derogate from or waive
                  defences available to the Borrower;

         (e)      a court may decline to enforce rights of indemnity under the
                  Credit Agreement which are found to be contrary to
                  public policy;

         (f)      enforcement of the Credit Agreement might be affected by or
                  limited by any collateral agreements or arrangements relating
                  thereto entered into among the parties thereto, of which we
                  are not aware; this is to confirm that we are not aware of any
                  such agreement;

         (g)      provisions in the Credit Agreement purporting to sever invalid
                  and unenforceable provisions may not be enforceable as an
                  Ontario court may reserve itself a decision as to whether any
                  provision is severable or otherwise of no force or effect;

         (h)      the failure of the Bank to exercise or delay in exercising a
                  right of action or remedy under the Credit Agreement may act
                  as a bar to the enforcement at any time thereafter, or waiver
                  of, such rights;

         (i)      the Bank may be precluded by a court of competent jurisdiction
                  from enforcing the Credit Agreement until after the Borrower
                  has been given a reasonable time to make payment of any amount
                  demanded under the

<PAGE>

                                      -25-

                  Credit Agreement;

         (j)      no opinion is given as to whether it may be necessary in
                  connection with the enforcement of the rights under the Credit
                  Agreement for the Bank or any other persons proposing to
                  acquire, own or operate all or any part of the assets of the
                  Borrower to obtain or affect any license, franchise, permit,
                  consent, approval, registration or other authorization or
                  exemption in connection therewith;

         (k)      the Bank may not be able to enforce the provisions purporting
                  to limit the set-off rights of the Borrower;

         (l)      a certificate, determination, notification, or opinion of the
                  Bank as to any matter may be held by an Ontario court not to
                  be conclusive if it can be shown to have any unreasonable or
                  arbitrary basis or in the event of manifest error;

         (m)      we express no opinion as to the enforceability of any
                  provision that could be construed as a "penalty" as opposed to
                  liquidated damages, including without limitation, the breakage
                  costs referred to in section 10 of the Credit Agreement; if a
                  contractual term requiring payment or specific performance in
                  the event of default is characterized as a "penalty" as
                  opposed to liquidated damages, the same would not be
                  enforceable on public policy grounds; in as much as the
                  determination of this issue is subjective and factual in
                  nature, we are unable to express an opinion as to same;

         (n)      We express no opinion as to whether the "interest" payable
                  pursuant to the Credit Agreement is or is not a criminal rate
                  of interest within the meaning of the Canada Criminal Code and
                  any resultant implications if such rate of interest is in fact
                  a criminal rate;

         (o)      counsel fees and disbursements are subject to taxation; in
                  addition, the costs of and incidental to all proceedings taken
                  in court or before a judge are within the discretion of the
                  court or judge before which such proceedings are brought and a
                  court or judge has full power to determine by whom and to what
                  extent the costs of such proceedings shall be paid; and

         (p)      any action on the Credit Agreement may, with the effluxion of
                  time, be prescribed by the Limitations Act (Ontario).

Opinions
--------

         Based upon and subject to the foregoing assumptions and qualifications,
and relying

<PAGE>

                                      -26-

upon the Officer's Certificate with respect to factual matters set
out therein, we are of the opinion that:

         1.     The Borrower is a corporation incorporated and existing under
                the laws of the Province of Ontario.

         2.     The Borrower has the full corporate power and authority to enter
                into, execute, and deliver the Credit Agreement and to observe
                and perform the obligations on its part to be observed and
                performed thereunder.

         3.     The execution and delivery of the Credit Agreement on behalf of
                the Borrower and performance by the Borrower of its obligations
                thereunder do not (a) violate any provision of its articles or
                by-laws, or (b) contravene any existing law, regulation or
                authorization of general application applicable in the Province
                of Ontario to which the Borrower is subject.

         4.     The Credit Agreement has been duly authorized by all necessary
                corporate action on the part of the Borrower and constitutes a
                valid and legally binding obligation of the Borrower enforceable
                by the Bank against the Borrower in accordance with its terms.

         5.     There are no consents, approvals, orders, authorizations,
                licences, exemptions or designations or registrations,
                qualifications, declarations or filings of or by any
                governmental or regulatory body or person having jurisdiction in
                the Province of Ontario, which are necessary or advisable in
                order for the Borrower (a) to execute and deliver the Credit
                Agreement and (b) to perform its obligations thereunder.

         The opinions expressed herein are limited to matters governed by the
laws of the Province of Ontario and the applicable laws of Canada. Furthermore,
the opinions expressed herein are provided solely for your benefit in connection
with the transactions contemplated in the Credit Agreement and may not be used
or relied on by any other person or for any other purpose.

                                                              Yours very truly,

                                                              BAKER & McKENZIE

<PAGE>

                                      -27-

Schedule "D" to the Agreement dated as of the 5/th/ day of April, 2000 between
Steelcase Financial Services Ltd. as the Borrower and Royal Bank of Canada as
the Bank.

                        OFFICER'S COMPLIANCE CERTIFICATE
                        --------------------------------

I, ___________________________________, of the City of __________________ in the
State of _________________, hereby certify as follows:

1.        That I am the [_________________________] of Steelcase Inc. (the
          "Guarantor").

2.        That I am familiar with and have examined the provisions of the
          Guarantee (the "Agreement") dated [______________] entered into by the
          Guarantor for the benefit of Royal Bank of Canada (the "Bank") and
          have made reasonable investigations of corporate records and inquiries
          of other officers and senior personnel of the Borrower. Terms defined
          in the Agreement have the same meanings where used in this
          certificate. As of the date of this certificate:

          (a)   the representations and warranties of the Guarantor contained in
                the Agreement are true and correct;

          (b)   no event has occurred which constitutes, or which with the
                giving of notice, lapse of time, or both, or the satisfaction of
                any other condition, would constitute an Event of Default by
                reason of the Guarantor's performance under the Agreement; and

3.        That as of the end of the (fiscal quarter or fiscal year) to which
          this certificate applies, on a consolidated basis:

A.        Shareholder's Equity
          For the Guarantor and its Subsidiaries:

          1.       Shareholders' Equity as of the February
                   27, 1998                                        $_________

          2.       Net Income (if a positive number) from February
                   27, 1998 to most recent Fiscal Year End or
                   Fiscal Second Quarter End                       $_________

          3.       25% of Net Income [0.25 * (2)]                  $_________

<PAGE>

                                      -28-

     4.   aggregate net proceeds, including cash and the fair
          market value of property other than cash, received by the
          Guarantor from the issue or sale of capital stock of the
          Guarantor from February 27, 1998 to the most recent Fiscal
          Year End or Fiscal Second Quarter End

                                                                      $_________

     5.   aggregate of 25% of the after tax gains realized from
          unusual, extraordinary, and major nonrecurring items from
          February 27, 1998 to the most recent Fiscal Year End or
          Fiscal Second Quarter End                                   $_________

     6.   Additions to Capital [(4) plus (5)]                         $_________

     7.   Shareholders Equity                                         $_________

     8.   Minimum Shareholders Equity required under Guarantee        $_________

B.   Funded Debt Ratio.
     For the Guarantor and its Subsidiaries (for each period
     consisting of the most recently ended four consecutive
     fiscal quarters of the Guarantor):

     1.   indebtedness for borrowed money or for the deferred
          purchase price of property or services                      $_________

     2.   obligations as lessee under leases which shall have been
          or should be, in accordance with GAAP, recorded as capital
          leases                                                      $_________

     3.   obligations under guarantees in respect of indebtedness
          or obligations of others of the kinds referred to in
          clauses (1) and (2) of this Section B                       $_________

     4.   Debt [(1) plus (2) plus (3)]                                $_________

     5.   consolidated net income plus provision for taxes
          (exclusive of extraordinary, unusual, or non-recurring
          gains or losses)                                            $_________

     6.   interest expense                                            $_________

     7.   depreciation expense and amortization of intangibles        $_________

     8.   EBITDA [(5) plus (6) plus (7)]                              $_________

<PAGE>

                                      -29-

     9.   Ratio of Funded Debt to EBITDA [(4):(8)]                 $_________

     10.  Maximum Funded Debt Ratio required under Guarantee       $_________

C.   Minimum Interest Coverage Ratio

     For the Guarantor and its Subsidiaries (for each period
     consisting of the most recently ended four consecutive
     fiscal quarters of the Borrower)

     1.   EBITDA [B(8), above]                                     $_________

     2.   Interest expense                                         $_________

     3.   Interest Coverage Ratio [(1)/(2)]                        $_________

     4.   Minimum Interest Coverage Ratio                           5.00:1.00

DATED this ________ day of _____________, 2000.

                                                       By:_____________________

                                                       Its:____________________

<PAGE>

                                      -30-

Schedules "E-1 and E-2" to the Agreement dated as of the 5/th/ day of April,
2000 between Steelcase Financial Services Ltd. as the Borrower and Royal Bank of
Canada as the Bank.

                     FORM OF OPINION FOR GUARANTOR'S COUNSEL
                     ---------------------------------------

April 7, 2000

Royal Bank of Canada
33 City Centre Drive
Mississauga, Ontario L5B 2N5

Dear Sirs:

Subject:  GUARANTEE PROVIDED TO ROYAL BANK
          OF CANADA BY STEELCASE INC.
          ---------------------------

In my capacity as Senior Corporate Counsel to Steelcase Inc., a Michigan
corporation ("the Guarantor"), I have reviewed a Guarantee dated as of April 5,
2000 (the "Guarantee"), made by the Guarantor for the benefit of Royal Bank of
Canada (the "Bank"), relating to the indebtedness of Steelcase Financial
Services Ltd. (the "Borrower") to the Bank under a Credit Facility Agreement
dated April 5, 2000, between the Borrower and the Bank.

In addition to the Guarantee, I reviewed such other records and documents, and
have given consideration to such other matters of law and fact (in accordance
with the principles set forth herein) as I have deemed appropriate, in my
professional judgement, to enable me to express the opinions set forth below. In
my review of the Guarantee and such other records and documents, I have assumed
with your permission and without independent investigation the genuineness of
all signatures, the authenticity of documents submitted to me as originals, and
the conformity to originals of all documents submitted to me as copies. In
rendering the opinions expressed in this letter, I have also, with your
permission, relied upon the accuracy of legal opinions dated on or about the
date of this letter from Baker & McKenzie, counsel to the Guarantor and the
Borrower, and the opinions set forth below are subject to all applicable
limitations and qualifications contained therein. The law covered by this
opinion letter is limited to the present law of the State of Michigan, and I
express no opinion with respect to the laws of any other jurisdiction.

Based upon the foregoing, and subject to the qualifications set forth below, I
am of the opinion that:

1.   The Guarantor is a corporation duly organized, validly existing and in good
     standing under the laws of the State of Michigan, United States of America.

2.   The Guarantor has full corporate power and authority to enter into the
     Guarantee and to observe and perform the obligations on its part to be
     observed and performed

<PAGE>

                                      -31-

     thereunder.

3.   The execution, delivery and performance of the Guarantee by the Guarantor
     will not (a) violate any provision of its articles or by-laws, or (b)
     contravene any existing law, rule or regulation of the State of Michigan
     applicable to transactions of the type contemplated by the Guarantee, or
     (c) to the best of my knowledge, constitute a default under any agreement
     or other instrument to which it is a party or by which it is bound.

4.   The Guarantee has been duly authorized by all necessary corporate action on
     the part of the Guarantor and has been duly executed and delivered on
     behalf of the Guarantor.

5.   There are no consents, approvals, orders, authorizations, licences,
     exemptions or designations or registrations, qualifications, declarations
     or filings of or by any governmental or regulatory body or person which are
     necessary or advisable in order for the Guarantor (a) to execute and
     deliver the Guarantee, and (b) to perform its obligations thereunder.

This opinion letter is being delivered to you in connection with the
transactions contemplated by the Guarantee, and may not be relied upon by you
for any other purpose. This opinion letter may not be relied on by any other
person or entity without my prior written consent. Copies of this opinion letter
may not be furnished to any other person or entity, nor may any portion of this
opinion letter be quoted, circulated or referred to in any other document,
without my prior written consent. This opinion letter is based solely upon
current laws and regulations and I have not undertaken any obligation to update
this opinion letter in the event of changes thereto or the passage of additional
legislation.

Yours truly,

Daniel J. Brondyk
Senior Corporate Counsel

<PAGE>

                                      -32-

                                 April __, 2000

Royal Bank of Canada

Re:  Guarantee (the "Guarantee") dated as of April 5, 2000 entered into by
     Steelcase Inc. (the "Guarantor") for the benefit of Royal Bank of Canada
     (the "Bank")

Ladies and Gentlemen:

     We have acted as special counsel to the Guarantor in connection with the
negotiation, execution and delivery of the Guarantee. Terms defined in the
Guarantee and not otherwise defined herein shall have the meanings given to such
terms in the Guarantee.

     This opinion is delivered to you pursuant to Section 15(a)(xi) of the
Credit Facility Agreement, dated as of April 5, 2000 by and between Steelcase
Financial Services Ltd. and the Bank (the "Credit Agreement").

     We have reviewed the Guarantee and such other records and documents, and
have given consideration to such other matters of law and fact (in accordance
with the principles set forth herein), as we have deemed appropriate, in our
professional judgment, to express the opinions expressed herein under the laws
specified below.

     In our review of the Guarantee and such other records and documents, we
have assumed with your permission and without independent investigation (i) that
the signatures of persons signing the Guarantee are genuine, (ii) the
authenticity of all documents submitted to us as originals, and (iii) the
conformity to originals of all documents submitted to us as copies. We have also
assumed the due authorization, execution and delivery of the Guarantee and the
validity, binding effect and enforceability thereof by or on behalf of the
parties thereto other than the Guarantor. As to factual matters material to this
opinion letter, we have relied upon the factual representations and warranties
of the Guarantor contained in the Guarantee and upon originals (or copies
certified or otherwise identified to our satisfaction) of such records,
documents, certificates and other written information as in our judgment are
necessary or appropriate to enable us to render the opinions expressed below. In
rendering this opinion letter, we have relied on and assumed the accuracy of the
opinion letter of Daniel J. Brondyk, Senior Corporate Counsel of the Guarantor,
delivered pursuant to Section 15(a)(xi) of the Credit Agreement, and the
opinions set forth herein are subject to all applicable limitations and
qualifications contained therein.

<PAGE>

                                      -33-

     Based upon the foregoing and subject to the qualifications set forth below,
we are of the opinion that:

1.   The execution, delivery and performance by the Guarantor of the Guarantee
     will not violate any Applicable Law. "Applicable Law" shall mean, for this
     purpose, those laws, rules and regulations of the State of New York and of
     the United States of America that, in our experience, are normally
     applicable to transactions of the type contemplated by the Guarantee.

2.   There are no consents, approvals, orders, authorizations, licenses,
     exemptions, designations, registrations, qualifications, declarations or
     filings of or by any governmental or regulatory body or person which are
     necessary or advisable under the laws of the State of New York in order for
     the Guarantor (a) to execute and deliver the Guarantee and (b) to perform
     its obligations thereunder.

3.   The Guarantee constitutes the legal, valid and binding obligation of the
     Guarantor enforceable against the Guarantor in accordance with its terms.

     The above opinions are subject to the following qualifications:

     (a)  The enforceability of obligations of the Guarantor under the Guarantee
          is subject to bankruptcy, insolvency, reorganization, fraudulent
          conveyance, moratorium, and similar laws affecting the rights and
          remedies of creditors generally and the application of principles of
          equity, whether in an action at law or a proceeding in equity.

     (b)  The laws of the State of New York generally impose an obligation of
          good faith and reasonableness in the performance and enforcement of
          contracts, and, in this regard, we have assumed that you will exercise
          your rights and remedies in good faith and in circumstances and in a
          manner which is commercially reasonable.

     (c)  We express no opinion with respect to the validity, binding effect or
          enforceability of any provisions of the Guarantee that (i) require the
          Guarantor to make payments without set-off, deduction, counterclaim or
          the exercise of any other right that the Guarantor may have against
          the Bank, (ii) provide for rights of indemnification or contribution
          that are contrary to public policy, (iii) purport to bind the parties
          to conclude an agreement at a future date, (iv) provide for an
          absolute and unconditional obligation to perform the Guarantee or any
          provision thereof even though the Guarantee or such provision may be
          determined to be invalid, terminated or such performance would be
          illegal or that provide a waiver or any other defense to or releases
          from performance cannot, as a matter of law, be effectively waived or
          (v) waive any right to a trial by jury.

<PAGE>

                                      -34-

(d)  We express no opinion as to (i) whether a federal court of the United
     States of America would have subject matter jurisdiction over any action
     brought against the Guarantor pursuant to the Guarantee, or (ii) whether a
     federal or New York state court would recognize any claim that any action
     brought against the Guarantor is brought in an inconvenient forum or
     whether such court might determine in its own discretion that another forum
     is a more appropriate forum for such action.

(e)  Our opinions are limited to questions arising under the laws of the State
     of New York and the federal laws of the United States of America, and we
     express no opinion with respect to the laws of any other jurisdiction.

     This opinion letter is being delivered to you in connection with the above
described transaction and may not be relied on by you for any other purpose.
This opinion letter may not be relied on by any other Person without our prior
written consent. Copies of this opinion letter may not be furnished to any other
Person (other than to bank examiners and other regulatory authorities should
they so request or in connection with their normal examination), nor may any
portion of this opinion letter be quoted, circulated or referred to in any other
document, without our prior written consent. This opinion letter is based solely
upon current laws and regulations and we have not undertaken any obligation to
update this opinion letter in the event of changes thereto or additional
legislation.

                                                Very truly yours,<PAGE>

                                                                    EXHIBIT 4.13

May 24, 2001

Steelcase Financial Services Ltd.
1 Steelcase Road West
Markham, Ontario
L3R OT3
Attention: Chief Financial Officer

Dear Sirs:

We refer to the facility agreement dated as of April 5, 2000 between Royal Bank
of Canada (the "Bank") and Steelcase Financial Services Ltd. (the "Borrower"),
as borrower, (the "Facilities Agreement") and to the Guarantee dated as of April
5, 2000 (the "Guarantee") made by Steelcase Inc. (the "Guarantor") for the
benefit of the Bank relating to the indebtedness of the Borrower to the Bank
under the Facilities Agreement. We confirm our agreement to amend the Facilities
Agreement, subject to the following terms and conditions.

1.   DEFINITIONS:

     Capitalized terms used and not defined herein have the meanings ascribed to
     such terms in the Facilities Agreement.

2.   PAYMENT ADJUSTMENT:

     Section 7 of the Facilities Agreement entitled Payment Adjustment is
     amended to add the following provisions thereto:

     "(c) If the ratio of the Guarantor's Funded Debt to EBITDA becomes greater
          than 2.75 to 1.0, as evidenced by the Guarantor's quarterly financial
          statements delivered by the Guarantor in accordance with the
          Guarantee, then, in addition to the rights granted to the Bank
          pursuant to Section 7(a) above, the Bank may calculate the present
          value of all the then remaining lease payments (excluding taxes) owing
          to the Borrower by the lessees pursuant to the Leases using (i) the
          Discount Rate + 0.15%, and (ii) the Discount Rate + 0.50%. Following
          any such calculation, the Bank may deliver a written notice to the
          Borrower requiring that the Borrower pay the Bank an amount equal to
          the difference obtained when the present value as calculated in (i)
          above is deducted from the present value as calculated in (ii) above.
          Any such requirement given by the Bank shall be accompanied by the
          Bank's supporting calculations, which shall constitute prima facie
          evidence of the amount required to be paid, payment shall be

<PAGE>

          made within 5 Business Days of receipt of such written requirement for
          payment.

     (d)  If following a payment made pursuant to subsection 7(c) above, the
          ratio of the Guarantor's Funded Debt to EBITDA becomes less than or
          equal to 2.75 to 1.0 as evidenced by the Guarantor's quarterly
          financial statements delivered by the Guarantor in accordance with the
          Guarantee, then, in addition to the rights granted to the Borrower
          pursuant to Section 7(b) above, the Borrower may calculate the present
          value of all the then remaining lease payments (excluding taxes) owing
          to the Borrower by the lessees pursuant to the Leases using (i) the
          Discount Rate + 0.15%, and (ii) the Discount Rate + 0.50%. Following
          any such calculation, the Borrower may deliver a written notice to the
          Bank requiring that the Bank advance a Borrowing at the rate,
          amortization and other terms described herein to the Borrower of an
          amount equal to the difference obtained when the present value as
          calculated in (i) above is deducted from the present value as
          calculated in (ii) above. Any such requirement given by the Borrower
          shall be accompanied by the Borrower's supporting calculations, which
          shall constitute prima facie evidence of the amount required to be
          paid. Payment shall be made within five Business Days of receipt of
          such written requirement for payment.

     The calculation of the ratio of Funded Debt to EBITDA shall in all
     instances be calculated for a period of four consecutive fiscal quarters."

3.   COVENANTS:

     Section 17 of the Facilities Agreement entitled Covenants is amended to add
     the following provisions thereto:

     "(f) not to, without the prior written consent of the Bank, (i) sell,
          transfer, convey or otherwise dispose of the Leases or any rights or
          interest of the Borrower therein, save and except on a lease by lease
          basis in connection with the Borrower's ongoing administration and
          management of the Leases in the ordinary course of business or (ii)
          grant, create, assume or suffer to exist any mortgage, charge, lien,
          pledge, security interest or other encumbrance affecting the Leases or
          any rights or interest of the Borrower therein;"

4.   EVENTS OF DEFAULT:

     Section 18 of the Facilities Agreement entitled Events of Default is
     amended as follows:

     (a)  to delete Event of Default (b) thereof and to substitute therefor the
          following:

                                        2

<PAGE>

          "(b) the Borrower shall fail to perform or observe (i) any term,
               covenant or agreement contained in this Agreement (other than any
               term, covenant or agreement contained in section 17(a), 17(b),
               17(e) or 17(f) on its part to be performed or observed and the
               failure to perform or observe such term, covenant or agreement
               shall remain unremedied for 30 days after the Borrower obtains
               knowledge of such breach or (ii) any term, covenant or agreement
               contained in Section 17(a), 17(b), 17(e) or 17(f);"

     (b)  to add the words "of the Borrower or Guarantor, as the case may be,"
          to Event of Default (i) after subparagraph (iv) thereof and
          immediately before the words "and in the case of any involuntary
          proceeding"; and

     (c)  to add a new Event of Default (1) as follows:

          "(l) an Event of Default occurs under the facility agreement between
               the Borrower and the Bank dated May 24, 2001 or a breach or
               default occurs and is continuing after the giving of any required
               notice and passage of any applicable grace period under any other
               agreement between the Borrower or the Guarantor and the Bank;"

5.   SCHEDULE "D":

     The reference to the date February 27, 1998 in the four places it appears
     in section 3 of the officer's certificate set forth as Schedule "D" to the
     Facility Agreement is amended to refer to the date February 25, 2000, to
     correspond to an amendment being made to the Guarantee by an amending
     agreement between the Bank and the Guarantor dated the same date hereof;

6.   CONSENT:

     The Borrower confirms its agreement and consents to all the terms and
     conditions of this amending agreement and to the amendments to the
     Guarantee made by an amending agreement between the Bank and the Guarantor
     dated the same date hereof.

7.   GENERAL:

     (a)  The Borrower agrees to take such action and execute and deliver such
          further documents as shall be reasonably required by the Bank in order
          to give effect to and carry out the intentions of this amending
          agreement.

     (b)  The Facility Agreement, as amended hereby, is hereby ratified and
          confirmed and remains in full force and effect, binding upon the
          parties in accordance with its terms.

                                       3

<PAGE>

     (c)  This amending agreement shall be construed in accordance with and be
          governed by the laws of the Province of Ontario and of Canada
          applicable therein.

     (d)  This amending agreement may be executed and delivered in counterparts,
          each of which when executed and delivered is an original, but both of
          which together constitute one and the same agreement.

     (e)  The date on which this amending agreement becomes effective is the
          date appearing on the first page hereof.

Please acknowledge your acceptance of the above terms and conditions by signing
the attached copy of this letter in the space provided below and returning it to
the undersigned.

Yours truly,

ROYAL BANK OF CANADA

By: /s/ B.R. Baker
   --------------
Name/Title: B.R. Baker, Senior Manager

By: /s/ G.C. Fox
   -------------
Name/Title: SR Asst. Mgr, Business Development
            G.C. Fox

                                       4

<PAGE>

We acknowledge and accept the terms and conditions of this amending agreement as
of the 23rd of May, 2001, which acceptance is effective as of the date first
above written.

STEELCASE FINANCIAL SERVICES LTD.

By: /s/ Thomas P. Sullivan
    ----------------------

Name/Title: Thomas P. Sullivan, Vice President
            ----------------------------------

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