Document:

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                                                                    EXHIBIT 4.16

November 9, 2001

Steelcase Inc.
901 44th Street SE
CH-2E-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 April 5, 2000 between Royal Bank
of Canada (the "Bank") and Steelcase Financial Services Ltd., as borrower (the
"Borrower"), as amended as of May 24, 2001 (the "Facilities Agreement") and to
the Guarantee dated as of April 5, 2000, as amended 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 hereby 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:

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          "(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) $150,000,000;"

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 taken 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 is the
          date appearing on the first page hereof.

                                        2

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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
             ------------------
             V.P. & CFO<PAGE>

                                                                    EXHIBIT 4.17

May 24, 2001

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 three year term
credit facility (the "Credit Facility"), subject to the following terms and
conditions. This Credit Facility is in addition to the credit facility made
available pursuant to the facility agreement dated as of April 5, 2000 between
the Bank and the Borrower (the "April 2000 Facility Agreement").

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
          Twenty Five Million Three Hundred Fifty Two Thousand Six Hundred
          Seventy Nine and 56/100 Dollars ($25,352,679.56) 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 has been calculated by
          discounting to the present, at the rate of 6.18 % per annum, all such
          remaining lease payments (excluding taxes).

3.        CREDIT FACILITY:

          The Credit Facility is available in Canadian Dollars by way of a term
          advance (the "Borrowing").

4.        PURPOSE:

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                                       -2-

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

5.        AVAILABILITY:

          The Borrower may borrow by way of a single advance to be made no later
          than May 24, 2001 (or such later date, as the Bank and the Borrower
          may agree) by giving to the Bank two (2) Business Days' notice in
          writing of its intention to draw.

6.        INTEREST RATE:

          The interest rate applicable to the Borrowing will be fixed on the
          date of advance at the CDOR Rate in effect on such date plus the
          Applicable Margin, for the period from, and including, the date of
          advance to, but excluding, the first Payment Date, and shall be
          calculated in advance and payable in arrears on such Payment Date.
          Thereafter, the interest rate will be fixed on each Payment Date at
          the CDOR Rate in effect on such Payment Date plus the Applicable
          Margin, for the period from, and including, such Payment Date to, but
          excluding, the next Payment Date and shall be calculated in advance
          and payable in arrears on each such Payment Date, until the Maturity
          Date, on which Maturity Date all accrued and unpaid interest shall be
          due and payable. Interest on the Borrowing will accrue daily on the
          basis of the actual number of days elapsed and a year of 365 days. The
          interest rate shall change automatically on each Payment Date without
          any notice to the Borrower.

7.        MARGIN:

          The margin applicable to the Borrowing (the "Applicable Margin"),
          expressed in basis points, shall be selected from the following
          matrix, as set forth in the applicable column, based upon the ratio of
          the Guarantor's Funded Debt to EBITDA on the date of determination, as
          evidenced by the Guarantor's most recent quarterly financial
          statements delivered by the Guarantor in accordance with the
          Guarantee, calculated for the period of four consecutive fiscal
          quarters ending on the last day of the fiscal quarter for which the
          financial statements have been delivered. Any change in the Applicable
          Margin shall be effective as of the first day of the month immediately
          next following the fiscal quarter for which the financial statements
          giving rise to the change have been delivered.

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                                       -3-

--------------------------------------------------------------------------------
Ratio of Funded       *  2:1          ** 2:1 and * 2.75:1       ** 2.75:1
Debt to EBITDA

--------------------------------------------------------------------------------
Margin                65 basis points   80 basis points         115 basis points
--------------------------------------------------------------------------------

8.        TIME AND PLACE OF PAYMENT:

          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 on any Payment Date, without penalty, any
          portion of the Borrowing in the minimum amount specified below and
          increments thereof.

          If any payment of principal  is made by the  Borrower  other than on a
          Payment Date, the Borrower shall,  upon demand by the Bank, pay to the
          Bank any amounts  required to compensate  the Bank for any  additional
          losses, costs or expenses which it may reasonably incur as a result of
          such  prepayment,  including,  without  limitation,  any loss, cost or
          expense  incurred  by reason of the  liquidation  or  reemployment  of
          deposits or other funds  acquired by the Bank to fund or maintain such
          Borrowing,  the aggregate of such  compensation not to exceed interest
          at the rate provided for under this Agreement calculated on the amount
          prepaid for the period from and  including  the date of  prepayment to
          but excluding the next following Payment Date.

          Any  prepayment  made by the Borrower  must be in a minimum  amount of
          Cdn$1,000,000  and  increments  thereof  and shall be  applied  in the
          reverse order of maturity on account of the amounts  payable  pursuant
          to the Repayment Schedule attached hereto as Schedule "B".

10.       REPAYMENT OF CREDIT FACILITY:

 * less than or equal to
** more than

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                                       -4-

          Subject to acceleration following an Event of Default, the Amount
          shall be repaid by monthly payments on each of the dates specified in
          Schedule "B" (each a "Payment Date") in the principal amounts
          specified in Schedule "B", plus interest as provided for herein, and
          the balance of Borrowings outstanding plus all accrued and unpaid
          interest, shall be repaid in full on the Maturity Date. The monthly
          payments provided for herein and the balance due on the Maturity Date
          shall be paid to the Bank at:

                  Royal Bank of Canada
                  77 King St West, 9th Floor
                  Toronto Ontario, M5W 1P9

          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 occur. Any change in Royal Bank Prime shall be
          effective as of the opening of business on the day such change takes
          place.

11.       EXTENSION REQUEST:

          The Borrower may, during the period between 90 and 60 days prior to
          the Maturity Date, request an extension of the Maturity Date. The Bank
          may, in its discretion, accept or reject any request for an extension
          or offer to extend the Maturity Date, subject to such other terms and
          conditions as shall be acceptable to the Bank at that time.

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:

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                                       -5-

     (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,

     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 which is accrued to the date of
     payment and all other amounts payable by the Borrower hereunder.

15.  CONDITIONS PRECEDENT TO BORROWING:

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                                       -6-

     (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 Leases that are the subject matter
                of this Credit Facility identifying the Leases by the Borrower's
                contract or file number and setting forth in satisfactory detail
                the names of the lessees and all payments due in respect
                thereof, by amount and date, which spreadsheet shall be attached
                hereto as Schedule F;

          (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 execute,
                deliver and 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".

<PAGE>
                                       -7-

     (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

          (ii) 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
          which it is bound, (B) violate any provision of its constating
          documents or 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;

<PAGE>
                                       -8-

     (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; and

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

17.  COVENANTS:

     The Borrower covenants and agrees with the Bank, while this Agreement is in
     effect or any part of 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;

     (c)  to comply in all material respects with all Applicable Laws;

     (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;

     (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; and

     (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

<PAGE>
                                       -9-

          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.

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) 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);

     (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)  an Event of Default occurs under the April 2000 Facility Agreement 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 Guarantor and the Bank;

     (e)  the Guarantor, with respect to the Guarantee, shall fail to perform or
          observe (i) any 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 term, covenant or
          agreement shall remain unremedied for 30 days after the Guarantor
          obtains knowledge of such breach or (ii) any term, covenant or
          agreement contained in Section 6(a), 6(c), 6(d) or 6(h) of the
          Guarantee;

     (f)  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;

<PAGE>
                                       -10-

     (g)  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 non-appealable 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;

     (h)  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;

     (i)  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;

     (j)  any notice of intention is filed or any voluntary or involuntary case
          or proceeding is filed or commenced by or against the 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,

          of the Borrower or Guarantor, as the case may be, and in the case of
          any involuntary proceeding against the Borrower or Guarantor, such
          involuntary proceeding shall remain undismissed or unstayed for a
          period of 60 days, provided that during such period the Borrower or
          the Guarantor, as the case may be, is actively and diligently
          defending such proceeding in good faith;

     (k)  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

<PAGE>

                                       -11-

          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;
          or

     (l)  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 and all other amounts owing to the
     Bank hereunder.

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 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:

<PAGE>

                                      -12-

     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 to any
          Person, 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 the 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.

     (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

<PAGE>

                                      -13-

          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 preparation, negotiation,
          documentation and 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

          With a copy to the Guarantor:

<PAGE>

                                      -14-

                                    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
                                    6880 Financial Drive, 2/nd/ Floor, Mezzanine
                                    Mississauga, Ontario, L5N 7Y5
                                    Attention:       Senior Manager
                                    Telecopier:      (905) 286-7262

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

<PAGE>

                                       -15-

     (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.

Yours truly,

ROYAL BANK OF CANADA

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

By:       /s/ G C Fox           G.C. Fox Senior Asst. Mgr. Business Development
          ------------------

<PAGE>
                                      -16-

          We acknowledge and accept the terms and conditions of this Agreement
as of the 24th day 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
             ----------------------------------

<PAGE>

Schedule "A" to the Agreement dated as of the 24/th/ day of May, 2001 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 6880 Financial Drive, 2/nd/
Floor, Mezzanine, Mississauga, Ontario, L5N 7Y5, 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;

"CDOR Rate" means, on any day, the annual rate of interest which is the Bank's
"BA 1 month" rate applicable to Canadian Dollar bankers' acceptances identified
as such on the Reuters Screen CDOR Page at approximately 10:00 a.m. on such day
(as adjusted by the Bank after 10:00 a.m. to reflect any error in the posted
rate). If the rate does not appear on the Reuters Screen CDOR Page as
contemplated above, then the CDOR Rate on any day shall be the discount rate
applicable to one month Canadian Dollar bankers' acceptances of, and as quoted
by, the Bank as of 10:00 a.m. on the day, or if the day is not a Business Day,
then on the immediately preceding Business Day.

"Criminal Code" means the Canada Criminal Code.

"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;

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

<PAGE>

                                       2

"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 May 3, 2004, being the last payment date as set forth in
the Repayment Schedule attached hereto as Schedule "B", on which date the
outstanding balance of the Borrowing is repayable in full, unless the Credit
Facility has been extended by the Bank pursuant to Section 11, in which case it
shall be the date to which the Credit Facility has been extended;

"Payment Date" has the meaning given to such term in Section 10 entitled
Repayment of Credit Facility.

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

Reuters Screen CDOR Page means the display designated as page CDOR on the
Reuters Monitor Money Rates Service or other page as may, from time to time,
replace that page on that service for the purpose of displaying bid quotations
for bankers' acceptances accepted by leading Canadian banks.

"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;

<PAGE>

                                       3

"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 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>

Schedule "B" to the Agreement dated as of the 24/th/ day of May, 2001 between
Steelcase Financial Services Ltd. as the Borrower and Royal Bank of Canada as
the Bank.

                               REPAYMENT SCHEDULE
                               ------------------
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------
Period        Payment Dates        Principal Balance O/s                                      Principal Balance O/s
                                   Before Principal Payment        Total Payment              After Principal Payment
<S>           <C>                  <C>                             <C>                        <C>
-----------------------------------------------------------------------------------------------------------------------------
     0             24-May-01       $------                         $------                    $25,352,679.56
-----------------------------------------------------------------------------------------------------------------------------
     1             01-Jun-01       $25,352,679.56                  $598,789.51                $24,788,230.78
-----------------------------------------------------------------------------------------------------------------------------
     2             03-Jul-01       $24,788,230.78                  $598,789.51                $24,323,745.94
-----------------------------------------------------------------------------------------------------------------------------
     3             01-Aug-01       $24,323,745.94                  $598,789.51                $23,844,389.35
-----------------------------------------------------------------------------------------------------------------------------
     4             04-Sep-01       $23,844,389.35                  $598,789.51                $23,382,865.13
-----------------------------------------------------------------------------------------------------------------------------
     5             01-Oct-01       $23,382,865.13                  $598,789.51                $22,890,970.55
-----------------------------------------------------------------------------------------------------------------------------
     6             01-Nov-01       $22,890,970.55                  $598,789.51                $22,412,330.41
-----------------------------------------------------------------------------------------------------------------------------
     7             03-Dec-01       $22,412,330.41                  $598,789.51                $21,934,972.75
-----------------------------------------------------------------------------------------------------------------------------
     8             02-Jan-02       $21,934,972.75                  $593,278.90                $21,453,111.49
-----------------------------------------------------------------------------------------------------------------------------
     9             01-Feb-02       $21,453,111.49                  $593,278.90                $20,968,802.65
-----------------------------------------------------------------------------------------------------------------------------
     10            01-Mar-02       $20,968,802.65                  $593,278.90                $20,474,933.10
-----------------------------------------------------------------------------------------------------------------------------
     11            01-Apr-02       $20,474,933.10                  $590,686.30                $19,991,714.96
-----------------------------------------------------------------------------------------------------------------------------
     12            01-May-02       $19,991,714.96                  $588,301.61                $19,504,960.31
-----------------------------------------------------------------------------------------------------------------------------
     13            03-Jun-02       $19,504,960.31                  $588,301.61                $19,025,640.66
-----------------------------------------------------------------------------------------------------------------------------
     14            02-Jul-02       $19,025,640.66                  $588,301.61                $18,530,757.55
-----------------------------------------------------------------------------------------------------------------------------
     15            01-Aug-02       $18,530,757.55                  $588,301.61                $18,036,582.04
-----------------------------------------------------------------------------------------------------------------------------
     16            03-Sep-02       $18,036,582.04                  $588,301.61                $17,549,057.98
-----------------------------------------------------------------------------------------------------------------------------
     17            01-Oct-02       $17,549,057.98                  $588,301.61                $17,043,953.32
-----------------------------------------------------------------------------------------------------------------------------
     18            01-Nov-02       $17,043,953.32                  $588,301.61                $16,545,111.46
-----------------------------------------------------------------------------------------------------------------------------
     19            02-Dec-02       $16,545,111.46                  $552,626.51                $16,079,326.38
-----------------------------------------------------------------------------------------------------------------------------
     20            02-Jan-03       $16,079,326.38                  $551,523.71                $15,612,199.31
-----------------------------------------------------------------------------------------------------------------------------
     21            03-Feb-03       $15,612,199.31                  $551,523.71                $15,145,263.78
-----------------------------------------------------------------------------------------------------------------------------
     22            03-Mar-03       $15,145,263.78                  $548,102.39                $14,668,962.39
-----------------------------------------------------------------------------------------------------------------------------
     23            01-Apr-03       $14,668,962.39                  $527,547.13                $14,213,441.88
-----------------------------------------------------------------------------------------------------------------------------
     24            01-May-03       $14,213,441.88                  $517,758.64                $13,767,879.73
-----------------------------------------------------------------------------------------------------------------------------
     25            02-Jun-03       $13,767,879.73                  $508,829.87                $13,333,645.37
-----------------------------------------------------------------------------------------------------------------------------
     26            02-Jul-03       $13,333,645.37                  $508,143.03                $12,893,229.95
-----------------------------------------------------------------------------------------------------------------------------
     27            01-Aug-03       $12,893,229.95                  $467,414.94                $12,491,305.55
-----------------------------------------------------------------------------------------------------------------------------
     28            02-Sep-03       $12,491,305.55                  $419,815.21                $12,139,169.26
-----------------------------------------------------------------------------------------------------------------------------
     29            01-Oct-03       $12,139,169.26                  $417,754.80                $11,781,019.45
-----------------------------------------------------------------------------------------------------------------------------
     30            03-Nov-03       $11,781,019.45                  $415,652.19                $11,431,192.49
-----------------------------------------------------------------------------------------------------------------------------
     31            01-Dec-03       $11,431,192.49                  $375,503.39                $11,109,880.35
-----------------------------------------------------------------------------------------------------------------------------
     32            02-Jan-04       $11,109,880.35                  $375,505.39                $10,794,569.20
-----------------------------------------------------------------------------------------------------------------------------
     33            02-Feb-04       $10,794,569.20                  $370,757.18                $10,480,470.20
-----------------------------------------------------------------------------------------------------------------------------
     34            01-Mar-04       $10,480,470.20                  $370,493.90                $10,159,662.35
-----------------------------------------------------------------------------------------------------------------------------
     35            01-Apr-04       $10,159,662.35                  $370,020.11                $ 9,842,786.94
-----------------------------------------------------------------------------------------------------------------------------
     36            03-May-04       $ 9,842,786.94                  Nil
-----------------------------------------------------------------------------------------------------------------------------
</TABLE>

                                       2

<PAGE>

Schedule "C" to the Agreement dated as of the 24/th/ day of May, 2001 between
Steelcase Financial Services Ltd. as the Borrower and Royal Bank of Canada as
the Bank.

                                                                 [ ______], 2001

Royal Bank of Canada
[ADDRESS]

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

McMillan Binch
[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 [ ], 2001 and acknowledged and accepted by the Borrower on the [ ] day of
[ ], 2001 (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 Consumer and Business Services (Ontario) dated the
          . day of May, 2001 (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 [ ], 2001 respecting various corporate and other
          matters relevant to the Credit

<PAGE>

                                       2

          Agreement (the "Officer's Certificate") (a copy of which is being
          delivered herewith); and

      (d) a signed copy of the Credit Agreement.

          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 Certificate of Status continues to be accurate as of the date
          hereof; and

      (e) 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.

<PAGE>

                                       3

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 or arrangement;

      (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
          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

<PAGE>

                                       4

          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; 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) 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

      (o) 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 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

<PAGE>

                                       5

      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.

          Notwithstanding that our fee for this opinion will be paid by the
Borrower and that we have acted for the Borrower, we acknowledge that the Bank
is relying upon the opinions expressed herein in connection with the Credit
Agreement. We authorize McMillan Binch to attach a copy of this opinion to any
opinion it may give to the Bank in connection with the Credit Agreement and
consent to reliance by the Bank, its successors and assigns, and McMillan Binch
on the opinions expressed herein.

                                                Yours very truly,

<PAGE>

Schedule "D" to the Agreement dated as of the 24/th/ day of May, 2001 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 Facility
     Agreement (the "Agreement") dated as of May 24, 2001, between Royal Bank of
     Canada (the "Bank") and Steelcase Financial Services Ltd. (the "Borrower")
     and the Guarantee (the "Guarantee") dated May 24, 2001 entered into by the
     Guarantor for the benefit of the Bank as a condition of the Agreement and
     have made reasonable investigations of corporate records and inquiries of
     other officers and senior personnel of the Guarantor and the Borrower.
     Terms defined in the Agreement or the Guarantee 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
          Guarantee 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 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; 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 25, 2000             $________

     2.   Net Income (if a positive number) from February 25, 2000 to
          most recent  Fiscal Year End or Fiscal Second Quarter End    $________

     3.   25% of Net Income [0.25 times (2)]                           $________

<PAGE>

                                       2

     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 25, 2000 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 25, 2000 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 to EBITDA Ratio.

     For the Guarantor and its Subsidiaries (for the 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.   Funded 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         $________

<PAGE>

                                       3

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

     9.   Ratio of Funded Debt to EBITDA [(4) : (8)]                   ______:1

     10.  Maximum Funded Debt Ratio required under Guarantee           3.25:1

C.   Interest Coverage Ratio

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

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

     2.   Interest Expense                                             $________

     3.   Interest Expense to EBITDA Ratio [(1) : (2)]                 ______:1

     4.   Minimum Interest Expense to EBITDA Ratio                     4.5:1

DATED this ________ day of _____________, 2001.

                                                   By:  ________________________

                                                   Its: ________________________

<PAGE>

Schedules "E-1 and E-2" to the Agreement dated as of the 24/th/ day of May, 2001
between Steelcase Financial Services Ltd. as the Borrower and Royal Bank of
Canada as the Bank.

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

May ., 2001

Royal Bank of Canada
[ADDRESS]

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

McMillan Binch
[ADDRESS]

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

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
May 24/th/ , 2001 (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 May 24, 2001, 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.

<PAGE>

                                       2

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 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 person or
entity other than the addressees of this letter and their successors and
assigns, 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,

<PAGE>

                                   May ., 2001
Royal Bank of Canada

McMillan Binch

Re:      Guarantee (the "Guarantee") dated as of May 24, 2001 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 Section15(a)(xi)
of the Credit Facility Agreement, dated as of May 24, 2001, 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 [insert name] of the Guarantor, delivered
pursuant to Section15(a)(xi) of the Credit Agreement, and the opinions set forth
herein are subject to all applicable limitations and qualifications contained
therein.

<PAGE>
                                       2

                  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
                  other defense to or releases from performance that cannot, as
                  a matter of law, be effectively waived or (v) waive any right
                  to a trial by jury.

<PAGE>
                                       3

     (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 Person other than the
addresses and their successors and assigns, 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,

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