Document:

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                                                                    EXHIBIT 4.18

                                    GUARANTEE

GUARANTEE, dated as of May 24, 2001 (the "Guarantee") made by Steelcase Inc., a
Michigan corporation (the "Guarantor"), in favour of Royal Bank of Canada (the
"Bank").

W I T N E S S E T H:
-------------------

WHEREAS, the Bank has entered into a Facility Agreement dated as of May 24, 2001
(as amended and modified from time to time, the "Agreement") with Steelcase
Financial Services Ltd., a corporation organized under the laws of Ontario,
Canada, as borrower (the "Borrower"), pursuant to which the Bank agreed to lend
Cdn$25,352,679.56 to the Borrower, subject to the terms and conditions thereof
(the "Loan");

WHEREAS, it is a condition to the Bank's obligation to make the Loan under the
Agreement that the Guarantor execute this Guarantee in favour of the Bank; and

WHEREAS, all capitalized terms not otherwise defined herein shall have the
respective meanings set forth in the Agreement.

NOW, THEREFORE, in consideration of the premises and to induce the Bank to enter
into the Agreement and as a condition of the advance of the Loan, the Guarantor
hereby agrees as follows:

SECTION 1. Definitions. As used in this Guarantee, the following terms shall
           -----------
have the following meanings (such meanings to be equally applicable to both the
singular and plural form of the term defined). Capitalized terms used herein but
not defined herein shall have the meanings ascribed thereto in the Agreement.

"Additions to Capital" means the 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 plus the aggregate of 25% of
                                                    ----
the after tax gains realized from unusual, extraordinary, and major nonrecurring
items;

"ERISA" means the Employee Retirement Income Security Act of 1974, as amended
from time to time, and the regulations promulgated and rulings issued
thereunder.

"ERISA Affiliate" means any Person who for purposes of Title IV of ERISA is a
member of the Guarantor's controlled group, or under common control with the
Guarantor, within the meaning of Section 414 of the Code and the regulations
promulgated and rulings issued thereunder.

"ERISA Event" means (i) the occurrence of a reportable event, within the meaning
of Section 4043 of ERISA, unless the 30-day notice requirement with respect
thereto has been waived by the PBGC; (ii) the provision by the administrator of
any Pension Plan of a notice of intent to terminate such Pension Plan pursuant
to Section 4041(a)(2) of ERISA (including any such notice with respect to a plan
amendment referred to in Section 4041(e) of ERISA); (iii) the cessation of
operations at a facility by the Guarantor or an ERISA Affiliate in the
circumstances

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described in Section 4062(e) of ERISA; (iv) the withdrawal by the Guarantor or
an ERISA Affiliate from a Multiple Employer Plan during a plan year for which it
was a substantial employer, as defined in Section 4001(a)(2) of ERISA; (v) the
failure by the Guarantor or any ERISA Affiliate to make a payment to a Pension
Plan required under Section 302(f)(1) of ERISA, which Section imposes a lien for
failure to make required payments; (vi) the adoption of an amendment to a
Pension Plan requiring the provision of security to such Pension Plan, pursuant
to Section 307 of ERISA; or (vii) the institution by the PBGC of proceedings to
terminate a Pension Plan, pursuant to Section 4042 of ERISA, or the occurrence
of any event or condition which, in the reasonable judgment of the Guarantor,
might constitute grounds under Section 4042 of ERISA for the termination of, or
the appointment of a trustee to administer, a Pension Plan.

"Fiscal Second Quarter End" means, for each Fiscal Year, the last Friday of each
August;

"Fiscal Year" means the fiscal year of Guarantor and its Subsidiaries;

"Fiscal Year End" means, for each Fiscal Year, the last Friday of February;

"Multiemployer Plan" means a "multiemployer plan" as defined in Section
4001(a)(3) of ERISA to which the Guarantor or any ERISA Affiliate of the
Guarantor is making, or is obligated to make, contributions or has Withdrawal
Liability;

"Multiple Employer Plan" means a single employer plan, as defined in Section
4001(a)(15) of ERISA, which (i) is maintained for employees of the Guarantor or
an ERISA Affiliate and at least one Person other than the Guarantor and its
ERISA Affiliates or (ii) was so maintained and in respect of which the Guarantor
or an ERISA Affiliate could have liability under Section 4063, 4064 or 4069 of
ERISA in the event such plan has been or were to be terminated;

"PBGC" means the U.S. Pension Benefit Guaranty Corporation;

"Pension Plan" means a Single Employer Plan or a Multiple Employer Plan or both;

"Single Employer Plan" means a single employer plan, as defined in Section
4001(a)(15) of ERISA, which (i) is maintained for employees of the Guarantor or
any ERISA Affiliate and no Person other than the Guarantor and its ERISA
Affiliates or (ii) was so maintained and in respect of which the Guarantor or an
ERISA Affiliate could have liability under Section 4062 or 4069 of ERISA in the
event such plan has been or were to be terminated; and

"Withdrawal Liability" has the meaning given such term under Part I of Subtitle
E of Title IV of ERISA.

SECTION 2. Guarantee. The Guarantor hereby unconditionally and irrevocably
           ---------
guarantees the punctual, full and prompt payment when due, whether by
acceleration or otherwise, of all obligations of the Borrower under the
Agreement (collectively, the "Guaranteed Obligations") owed to the Bank. This
Guarantee is an absolute guarantee of payment and performance and is not a
guarantee of collection.

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SECTION 3. Guarantee Absolute. The Guarantor guarantees that the Guaranteed
           ------------------
Obligations will be paid strictly in accordance with the terms of the Agreement,
regardless of any law, regulation or order now or hereafter in effect in any
jurisdiction affecting any of such terms or the rights of the Bank with respect
thereto. The liability of the Guarantor under this Guarantee shall be absolute
and unconditional irrespective of:

     (a)   any lack of validity or enforceability of the Agreement or any other
           agreement or instrument relating thereto (whether executed by the
           Borrower, the Guarantor or any other party) or avoidance or
           subordination of any of the Guaranteed Obligations;

     (b)   any change in the time, manner or place of payment of, or in any
           other term of, or any increase in the amount of, all or any of the
           Guaranteed Obligations, or any other amendment or waiver of or any
           consent to departure from the Agreement or any other agreement or
           instrument relating thereto (whether executed by the Borrower, the
           Guarantor or any other party);

     (c)   the absence of any attempt to collect the Guaranteed Obligations from
           the Borrower or any other action to enforce the same or the election
           of any remedy by the Bank;

     (d)   the bankruptcy, insolvency, winding-up, or reorganization of or
           similar proceeding involving, the Borrower or the Guarantor;

     (e)   the disallowance under the relevant provisions of any applicable law
           of all or any portion of the claims of the Bank for payment or
           performance of the Guaranteed Obligations;

     (f)   the waiver, consent, extension, forbearance or granting of any
           indulgence by the Bank with respect to any provision of the Agreement
           or any other agreement or instrument relating thereto (whether
           executed by the Borrower, the Guarantor or any other party), or

     (g)   any other circumstance which might otherwise constitute a legal or
           equitable discharge or defense of the Borrower, the Guarantor or any
           other guarantor (other than indefeasible payment in full of the
           Guaranteed Obligations and in respect of any applicable statute of
           limitations).

SECTION 4. Waiver, No Duties of Bank.
           -------------------------

     (a)   The Guarantor hereby waives (i) promptness, diligence, notice of
           acceptance and any and all other notices with respect to any of the
           Guaranteed Obligations and this Guarantee, (ii) any requirement that
           the Bank protect, secure, perfect or insure any security interest in
           or other lien on any property subject thereto or exhaust any right or
           take any action against the Borrower or any other Person or entity or
           any collateral, (iii) filing of proofs of claim with a court in the
           event of

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           receivership or bankruptcy of the Borrower, (iv) protest or notice
           with respect to nonpayment of any or all of the Guaranteed
           Obligations, and (v) all demands whatsoever (and any requirement that
           the same be made on the Borrower as a condition precedent to the
           Guarantor's obligations hereunder). The Guarantor hereby covenants
           that this Guarantee will not be discharged, except according to the
           provisions of Section 14 hereof.

     (b)   The Guarantor hereby assumes responsibility for keeping itself
           informed of the financial condition of the Borrower, and of all other
           circumstances bearing upon the right of nonpayment of the Guaranteed
           Obligations or any part thereof that diligent inquiry would reveal.
           The Guarantor hereby agrees that the Bank shall have no duty to
           advise the Guarantor of information known to the Bank regarding such
           condition or any such circumstances. In the event the Bank in its
           sole discretion undertakes at any time or from time to time to
           provide any such information to the Guarantor, the Bank shall be
           under no obligation (i) to undertake any investigation not a part of
           its regular business routine, (ii) to disclose any information which,
           pursuant to accepted or reasonable banking or commercial finance
           practices, the Bank chooses to maintain as confidential or (iii) to
           make any other or future disclosures of such information or any other
           information to the Guarantor.

If in the exercise of any of its rights and remedies, the Bank shall forfeit any
of its rights or remedies, including its right to enter a deficiency judgment
against the Borrower or any other Person, whether because of any applicable laws
pertaining to "election of remedies" or the like, the Guarantor hereby consents
to such action by the Bank and waives any claim based upon such action, even if
such action by and of the Bank shall result in a full or partial loss of any
rights of subrogation, contribution or reimbursement which the Guarantor might
otherwise have had but for such action by the Bank.

     SECTION 5. Representations and Warranties. The Guarantor represents and
                ------------------------------
warrants to the Bank that as of the date of this Guarantee and unless a
representation or warranty relates solely to an express date, as of the date of
each quarterly certificate in the form of Schedule D of the Agreement to be
delivered to the Bank:

     (a)   it is a corporation duly incorporated and validly existing under the
           laws of the State of Michigan, United States of America, 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 Guarantor;

     (b)   the execution and delivery of this Guarantee has been duly authorized
           by all necessary actions and do not, to the best knowledge of the
           Guarantor after due inquiry, (A) violate any law, regulation or rule
           by which it is bound, (B) violate any provision of its constitutive
           documents or by-laws, (C) result in a breach of, or a default under,
           any material contractual restriction binding on or affecting the

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           Guarantor, or (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 judgements,
           this Guarantee constitutes, a legal, valid and binding obligation of
           the Guarantor, enforceable in accordance with its terms;

     (d)   its most recent audited, consolidated financial statements fairly
           present in accordance with GAAP, the consolidated financial position
           of the Guarantor as of the date thereof and its consolidated results
           of operations and cash flows for the fiscal year covered thereby, and
           since the date of its most recent 10-K filing, there has occurred no
           material adverse change in the business or financial condition of the
           Guarantor in each case taken as a whole;

     (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 pursuant to Section
           18 (e), 18 (f), 18(g) or 18(l) of the Agreement or, with respect to
           the Guarantor, pursuant to Section 18(d), 18(h), 18(i), 18(j) or
           18(k) of the Agreement, the breach by the Guarantor of a
           representation or warranty made hereunder, 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)   there is no action, litigation or legal proceeding pending or
           threatened against the Guarantor or any of its assets or properties
           before any court or administrative agency which, if adversely
           determined, might in the reasonable judgement of the Guarantor (A)
           result in a material adverse change in the financial condition of the
           Guarantor or its business, properties or other assets, or (B)
           materially and adversely affect the ability of the Guarantor to
           perform its obligations under this Guarantee;

     (g)   ERISA.

           (i)   No ERISA Event which would reasonably be anticipated to result
                 in liability of the Guarantor or any of its ERISA Affiliates in
                 excess of US$10,000,000 (or, in the case of an event described
                 in clause (v) of the definition of ERISA Event, US$750,000)
                 (other than for premiums payable under Title IV of ERISA) has
                 occurred or is reasonably expected to occur with respect to any
                 Pension Plan.

           (ii)  Schedule B (Actuarial Information) to the most recently
                 completed annual report (Form 5500 Series) for each Pension
                 Plan, which report has been filed with the Internal Revenue
                 Service by the Guarantor or an ERISA Affiliate, is complete
                 and, to the best knowledge of the Guarantor after

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                due inquiry, accurate, and since the date of such Schedule B
                there has been no material adverse change in the funding status
                of any such Pension Plan.

         (iii)  Neither the Guarantor nor any ERISA Affiliate has incurred, or,
                to the best knowledge of the Guarantor after due inquiry, is
                reasonably expected to incur, any Withdrawal Liability to any
                Multiemployer Plan which has not been satisfied or which is or
                might be in excess of US$10,000,000.

         (iv)   Neither the Guarantor nor any ERISA Affiliate has been notified
                by the sponsor of a Multiemployer Plan that such Multiemployer
                Plan is in reorganization or has been terminated, within the
                meaning of Title IV of ERISA, and, to the best knowledge of the
                Guarantor after due inquiry, no Multiemployer Plan is reasonably
                expected to be in reorganization or to be terminated within the
                meaning of Title IV of ERISA, where such reorganization or
                termination has resulted or could reasonably be expected to
                result, through increases in the contribution required to be
                made to such Multiemployer Plan, in a material adverse effect on
                the Guarantor.

   (h)   it is the indirect legal and beneficial owner of at least 50% of the
         shares of the Borrower.

        SECTION 6.  Covenants. The Guarantor covenants and agrees with the Bank,
                    ---------
while the Agreement is in effect or any Borrowing is outstanding:

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

   (b)  to provide or cause to be provided to the Bank the following:

        (i)    quarterly consolidated, unaudited, internally prepared financial
               statements of the Guarantor within 55 days of the end of each
               fiscal quarter, accompanied by a certificate in the form of
               Schedule "D" to the Agreement, executed by a senior financial
               officer of the Guarantor (such as the financial officer,
               treasurer, or assistant treasurer);

        (ii)   annual consolidated, audited financial statements of the
               Guarantor within 100 days of each fiscal year end, accompanied by
               a certificate in the form of Schedule "D" to the Agreement,
               executed by a senior financial officer of the Guarantor (such as
               the financial officer, treasurer, or assistant treasurer);

        (iii)  annual consolidated financial statements of Steelcase Financial
               Services Inc. within 100 days of each fiscal year end of
               Steelcase Financial Services Inc.; and

        (iv)   such other financial and operating statements and reports as the
               Bank may reasonably request;

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             (c)  to maintain

                  (i)      Shareholders' Equity of at least the sum of (I) the
                           Shareholders' Equity as of February 25, 2000, plus
                                                                         ----
                           (ii) 25% of Net Income (if a positive number) from
                           February 25, 2000 to the then most recent Fiscal Year
                           End or Fiscal Second Quarter End, plus (iii) all
                                                             ----
                           Additions to Capital from February 25, 2000 to the
                           then most recent Fiscal Year End or Fiscal Second
                           Quarter End;

                  (ii)     its ratio of Funded Debt to EBITDA for each period
                           consisting of the most recently ended four
                           consecutive fiscal quarters, at not more than 3.25:1,
                           and

                  (iii)    its ratio of EBITDA to Interest Expense in each case
                           for the four fiscal quarters ending on the last day
                           of any fiscal quarter at not less than 4.5:1;

             (d)  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 pursuant to Section 18
                  (e), 18 (f), 18(g) or 18(l) of the Agreement or, with respect
                  to the Guarantor, pursuant to Section 18(d), 18(h), 18(i),
                  18(j) or 18(k) of the Agreement;

             (e)  to provide the Bank with prompt written notice of any material
                  action, suit, litigation or other proceeding, of the type
                  described in Section 5(f) which is commenced against the
                  Guarantor;

             (f)  to maintain directly or indirectly, at least 50% of the legal
                  and beneficial ownership in the issued and outstanding shares
                  of the Borrower;

             (g)  to ensure that its obligations under the Guarantee 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, provided, further that if
                  the Guarantor grants collateral security for the obligations
                  set forth in that certain Credit Agreement (Long Term
                  Multi-currency Revolving Credit Facility) and Credit Agreement
                  (Short Term Multi-currency Revolving Credit Facility), each
                  dated as of April 5, 2001, by and among the Guarantor,
                  Citicorp USA Inc., as Administrative Agent, SG-Chicago Branch,
                  as Syndication Agent, BNP Paribas, Bank One Michigan and Bank
                  of America, N. A., as Co-Documentation Agents, and the several
                  lenders identified on the signatures pages thereto, or any
                  replacement credit facility, the obligations under this
                  Guaranty shall be equally and rateably secured with such
                  obligations;

             (h)  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

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        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 partnership, 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, (i) the Guarantor is the
        surviving entity or (ii) the surviving entity assumes all of the
        Guarantor's obligations under this Guarantee in a manner satisfactory to
        the Bank.

SECTION 7. Amendments. No amendment or waiver of any provision of this Guarantee
           ----------
nor consent to any departure by the Guarantor herefrom shall in any event be
effective unless the same shall be in writing and signed by the Bank. No
amendment, waiver or consent shall, unless in writing and signed by the Bank,
limit the liability of the Guarantor hereunder or postpone any date fixed for
payment hereunder, and then such waiver or consent shall be effective only in
the specific instance and for the specific purpose for which given.

SECTION 8. No Waiver; Remedies, Subrogation
           --------------------------------

    (a)    No failure on the part of the Bank to exercise, and no delay in
           exercising, any right hereunder shall operate as a waiver thereof nor
           shall any single or partial exercise of any right hereunder preclude
           any other or further exercise thereof or the exercise of any other
           right. The remedies herein provided are cumulative and not exclusive
           of any remedies provided by law.

    (b)    Failure by the Bank at any time or times hereafter to require strict
           performance by the Borrower or the Guarantor or any other person of
           any of the provisions. warranties, terms and conditions contained in
           any of the Agreement, or this Guarantee or any of the agreements
           entered into in connection therewith or herewith now or at any time
           or times hereafter executed by the Borrower or the Guarantor and
           delivered to the Bank shall not waive, affect or diminish any right
           of the Bank at any time or times hereafter to demand strict
           performance thereof and such right shall not be deemed to have been
           modified or waived by any act, course of conduct or knowledge of the
           Bank, its respective agents, officers or employees, unless such
           waiver is contained in an instrument in writing specifying such
           waiver signed by the Bank and directed and delivered to the Borrower
           or Guarantor. No waiver by the Bank of any default shall operate as
           a waiver of any other default or the same default on a future
           occasion, and no action by the Bank permitted hereunder shall in any
           way affect or impair any of its rights or the obligations of the
           Guarantor under this Guarantee. Any determination by a court of
           ompetent jurisdiction of the amount of any of the Guaranteed
           Obligations shall be conclusive and binding on the Guarantor
           irrespective of whether the Guarantor was party to the suit or action
           in which such determination was made.

    (c)    Until all Guaranteed Obligations have been paid in full, the
           Guarantor shall not exercise any right of subrogation which it
           may acquire with respect to amounts paid hereunder. In the
           event that the Guarantor shall receive any payment on account
           of any such right of subrogation while any Guaranteed
           Obligations

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             remain outstanding, the Guarantor agrees to pay all such amounts so
             received to the Bank to be applied to payment of the Guaranteed
             Obligations then due and owing in accordance with the terms of the
             Agreement.

SECTION 9. Continuing Guarantee. This Guarantee is a continuing guarantee and
           --------------------
shall (a) remain in full force and effect until terminated in accordance with
Section 14, (b) be binding upon the Guarantor, and its successors and assigns,
and (c) inure to the benefit of and be enforceable by the Bank and its permitted
successors, transferees, and assigns who shall be permitted to, and who shall,
become an assignee of the Bank's interest under the Agreement.

SECTION 10. Reinstatement. This Guarantee shall remain in full force and effect
            -------------
and continue to be effective should any petition be filed by or against the
Guarantor or the Borrower (each a "Loan Party" and, collectively, the "Loan
Parties") for liquidation or reorganization, should any Loan Party become
insolvent or make an assignment for the benefit of creditors or should a
receiver or trustee be appointed for all or any significant part of any Loan
Party's assets, and shall, to the fullest extent permitted by law, continue to
be effective or be reinstated, as the case may be, if at any time payment and
performance of the Guaranteed Obligations or any part thereof, is, pursuant to
applicable law, rescinded or reduced in amount. or must otherwise be restored or
returned by any obligee of the Guaranteed Obligations, whether as a "voidable
preference", "fraudulent conveyance", or otherwise, all as though such payment
or performance had not been made. In the event that any payment, or any part
thereof, is rescinded, reduced, restored, or returned, the Guaranteed
Obligations shall, to the fullest extent permitted by law, be reinstated and
deemed reduced only by such amount paid and not so rescinded, reduced, restored
or returned.

SECTION 11. Governing Law. This Guarantee shall be governed by, and construed in
            -------------
accordance with, the laws of the State of New York (including, without
limitation, Sections 5-1401 and 5-1402 of the New York General Obligations Law),
without regard to the provisions thereof relating to conflicts of laws.

SECTION 12. Severability. Whenever possible, each provision of this Guarantee
            ------------
shall be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this Guarantee shall be prohibited by or
invalid under such law, such provision shall be ineffective to the extent of
such prohibition or invalidity without invalidating the remainder of such
provision or the remaining provisions of this Guarantee.

SECTION 13. Consent to Jurisdiction. The Guarantor hereby consents to the
            -----------------------
non-exclusive jurisdiction of any state court or any federal court located in
New York City and agrees that all service of process may be made by registered
mail directed to the Guarantor at the address and in the manner specified in the
Agreement. The Guarantor waives any objection based on forum non conveniens and
any objection to venue of any action instituted hereunder and consents to the
granting of such legal or equitable relief as is deemed appropriate by the
court. Nothing contained in this paragraph shall affect the right of the Bank to
serve legal process in any other manner permitted by law or affect its right to
bring any action or proceeding against the Guarantor or its property in the
courts of any other competent jurisdiction.

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SECTION 14. Termination. So long as no Event of Default shall have occurred and
            -----------
then be continuing, this Guarantee shall terminate and, except to the extent
expressly provided in Section 2 above with respect to survival of Guaranteed
Obligations all obligations hereunder shall be discharged and released upon the
payment in full of all of the Guaranteed Obligations.

SECTION 15. Currency.
            --------

   (a)      Payment shall be in Canadian Dollars or if collected in a different
            currency at the option of the Bank, such other currency shall be
            converted into Canadian Dollars at the spot rate of exchange of the
            Bank (as conclusively determined by the Bank) for purchasing such
            currency with Canadian Dollars prevailing on the date of actual
            payment and the Guarantor hereby agrees to indemnify the Bank
            against the full Canadian Dollar cost incurred by the Bank for such
            purpose.

   (b)      No payment to the Bank (whether under any judgment or court order or
            otherwise) shall discharge the Guaranteed Obligations unless and
            until the Bank shall have received payment in full in the currency
            in which such Guaranteed Obligations were incurred or which the Bank
            has elected to accept under paragraph (a) of this Section 15 and to
            the extent that the amount of such payment shall on actual
            conversion into such currency fall short of the amount of the
            Guaranteed Obligations, actual or contingent, expressed in that
            currency, the Bank shall have a further separate cause of action
            against the Guarantor to recover the amount of the shortfall.

   (c)      If and to the extent that the Guarantor fails to pay the amount due
            on demand, the Bank may in its absolute discretion without notice to
            the Guarantor purchase at any time thereafter so much of any
            currency as the Bank considers necessary or desirable to cover the
            Guaranteed Obligations in such currency hereby guaranteed at the
            then prevailing spot rate of exchange of the Bank (as conclusively
            determined by the Bank) for purchasing such currency with Canadian
            Dollars and the Guarantor hereby agrees to indemnify the Bank
            against the full Canadian Dollar cost incurred by the Bank for such
            purpose.

  (d)       All moneys received or held by the Bank from the Borrower or under
            this Guarantee may from time to time after demand has been made by
            the Bank be converted into such other currency as the Bank considers
            necessary or desirable to cover the Guaranteed Obligations, actual
            or contingent, of the Borrower in that other currency at the then
            prevailing spot rate of exchange of the Bank (as conclusively
            determined by the Bank) for purchasing that other currency with the
            existing currency.

SECTION 16. Miscellaneous. All references herein to the Borrower and to the
            -------------
Guarantor shall be deemed to include their respective permitted successors and
assigns, including, without limitation, a receiver, trustee or
debtor-in-possession of or for the Borrower or the Guarantor. All references to
the singular shall be deemed to include the plural where the context so
requires.

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IN WITNESS WHEREOF, the Guarantor has caused this Guarantee to be duly executed
and delivered by its officer thereunto duly authorized as of the date first
above written.

                                    STEELCASE INC.
                                    By:    /s/  Gary P. Malburg
                                           -------------------------------------
                                           Gary P. Malburg

                                    Its:   Vice President, Finance and Treasurer
                                           -------------------------------------

                                       11<PAGE>

                                                                    EXHIBIT 4.19

November 9, 2001

Steelcase Inc.
901 44th Street SE
CH-23-06
Grand Rapids, MI 4508
Attention: Chief Financial Officer

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 May 24, 2001 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 May
24, 2001 (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 hereby confirm our agreement, and each of you
hereby agrees, to amend the Facilities Agreement and the Guarantee, 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 and the Guarantee.

2.       AMENDMENTS:

         (a)      The definition of "Shareholders' Equity" in the Facilities
                  Agreement is deleted in its entirety and replaced with the
                  following:

                  ""Shareholders' Equity" means the aggregate of stated capital,
                  retained earnings and Subordinated Debt; provided that there
                                                           --------
                  shall be excluded from the calculation of Shareholders' Equity
                  non-recurring non-cash charges attributable to the
                  implementation of SFAS 142 not in excess of $150,000,000 in
                  the aggregate for any Fiscal Year;"

         (b)      Covenant (c)(i) of Section 6 of the Guarantee is deleted in
                  its entirety and replaced with the following:

         (c)

<PAGE>

                  "(i) its Shareholders' Equity as at the end of each fiscal
                  quarter in an amount not less than the difference between (a)
                  the sum of (i) the Shareholders' Equity as of February 25,
                  2000, plus (ii) 25% of Net Income (if a positive number) from
                  February 25, 2000 to the then most recent Fiscal Year End or
                  Fiscal Second Quarter End, plus (iii) all Additions to Capital
                  from February 25, 2000 to the then most recent Fiscal Year End
                  or Fiscal Second Quarter End, and (b) $1,500,000,000;"

3.       CONSENT:

         Each of the Borrower and the Guarantor confirms its agreement and
         consents to all the terms and conditions of this amending agreement.

4.       GENERAL:

         (a)      Each of the Borrower and the Guarantor 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)      Each of the Facilities Agreement and the Guarantee, as amended
                  hereby, is hereby ratified and confirmed and remains in full
                  force and effect, binding upon the parties in accordance with
                  their respective terms.

         (c)      This amendment shall be construed in accordance with and
                  governed by the laws of Ontario, insofar as it relates to the
                  amendment of the Facilities Agreement, and the laws of New
                  York, insofar as it relates to the amendment of the Guarantee.

         (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 as
                  the date appearing on the first page hereof.

                                        2

<PAGE>

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, Sr. Account Manager

By:  /s/ John Race
     -------------

Name/Title: JOHN RACE
            Sr. Acc. Mgr.

We acknowledge and accept the terms and conditions of this amending agreement as
of the 9th day of November, 2001, which acceptance is effective as of the date
first above written.

STEEL CASE INC.

By: /s/ Gary P. Malburg
    -------------------

Name/Title: GARY P. MALBURG
            ----------------
            VICE PRESIDENT & TREASURER

STEELCASE FINANCIAL SERVICES LTD.

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

Name/Title: Thomas P. Sullivan
            -------------------
            VP & CFO

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