Document:

<PAGE>
                                                                    EXHIBIT 4.40

                                                           [RBC ROYAL BANK LOGO]

--------------------------------------------------------------------------------
GERRY DIMAKOPOULOS                       INDUSTRIAL PRODUCTS, COMMERCIAL MARKETS
Senior Account Manager                   2nd Floor Link, 6880 Financial Drive
                                         Mississauga, ON L5N 7Y5
                                         Tel: (905) 286-7236 Fax: (905) 286-7262
                                         E-MAIL: GERRY.DIMAKOPOULOS@RBC.COM

May 2, 2003

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 0T3
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, as amended by an amending letter agreement dated November 9, 2001,
and as further amended by an amending letter agreement dated October 3, 2002 (as
amended, the "Facility Agreement"), and to the Guarantee dated as of May 24,
2001, as amended by an amending letter agreement dated November 9, 2001, and as
further amended by an amending letter agreement dated October 3, 2002 (as
amended, 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 Facility Agreement. We hereby confirm our agreement, and each of you
hereby agrees, to amend the Facility 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 Facility Agreement and the Guarantee.

      2.  AMENDMENTS:

         (a)      The definition of "Shareholders' Equity" in Schedule "A" to
                  the Facility Agreement is hereby deleted in its entirety and
                  replaced with the following:

<PAGE>

                  ""SHAREHOLDERS' EQUITY" means the aggregate of stated capital,
                  retained earnings and Subordinated Debt; provided that for
                  purposes of the calculation of Shareholders' Equity there
                  shall be added to such aggregate any non-recurring non-cash
                  charges attributable to the implementation by the Guarantor of
                  SFAS 142 not in excess of $230,000,000;"

         (b)      Section 18 of the Facility Agreement entitled "Events of
                  Default" is amended by adding to Event of Default (d) after
                  the phrase "November 9, 2001" the following: "October 3, 2002
                  and May 2, 2003 and as it may be thereafter amended in
                  accordance with its terms."

     3.  WAIVER:

         The Bank hereby waives any Event of Default that exists as a result of
         the Guarantor's failure to observe Section 6(c)(i) of the Guarantee as
         of the end of its fiscal quarter ending November 22, 2002 and waives
         compliance with Section 6(c)(i) of the Guarantee for the period from
         November 23, 2002 through the date hereof.

      4.  RESERVATION OF RIGHTS:

         Save and except as specifically waived in Section 3 hereof, the Bank
         reserves all rights and remedies pursuant to each of the Facility
         Agreement and the Guarantee, in each case, as amended hereby.

      5.  CONSENT:

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

      6.  RESTRUCTURE FEE:

         A restructure fee of $7,572.63 is payable by, or on behalf of, the
         Borrower upon acceptance of this amending agreement. This fee is
         non-refundable and is deemed to be earned by the Bank upon acceptance
         of this amending agreement, to compensate for time, effort and expense
         incurred by the Bank in approving the amendments to the Facility
         Agreement and the Guarantee.

      7.  CONDITIONS:

         This amending agreement is conditional upon the receipt by the Bank, in
         form and substance satisfactory to the Bank:

         (a)      prior to the effectiveness hereof, of duly executed copies of
                  this amending agreement and the amending agreement in respect
                  of the facility agreement dated April 5, 2000, as amended,
                  between the Bank and the Borrower; and

         (b)      subsequent to the effectiveness hereof, of such certificates
                  and resolutions in respect of the Borrower as the Bank may
                  reasonably require and legal opinions of

<PAGE>

                  counsel to the Guarantor in respect of this amending agreement
                  substantially in the form of Exhibits E-1 and E-2 of the
                  Facility Agreement, within 22 days of the date of this
                  amending agreement.

      8.  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 Facility 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 amending agreement shall be construed in accordance with
                  and be governed by (i) the laws of the Province of Ontario and
                  of Canada applicable therein, insofar as it relates to the
                  amendment of the Facility Agreement, and (ii) the laws of the
                  State 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. This amending agreement may be delivered, and
                  be binding on the party so delivering, upon the provision of
                  telefaxed execution pages. The party delivering such telefaxed
                  execution pages shall as soon as possible thereafter (and in
                  any event within 5 days) deliver to the other party an
                  originally executed copy.

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

                            [signature page follows]

<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/ GERRY DIMAKOPOULOS
    ----------------------------------------

Name/Title: Gerry Dimakopoulos, Senior Account Manager

By:      /s/ M.R. LORDON
     ---------------------------------------

Name/Title: M.R. Lordon, Senior Account Manager

We acknowledge and accept the terms and conditions of this amending agreement as
of the 2nd day of May, 2003, which acceptance is effective as of the date first
above written.

STEELCASE INC.

By:      /s/ GARY P. MALBURG
    --------------------------------

Name/Title: Gary P. Malburg, Vice President, Finance & Treasurer

STEELCASE FINANCIAL SERVICES LTD.

By:      /s/ GARY P. MALBURG
     -------------------------------

Name/Title: Gary P. Malburg, President<PAGE>
                                                                    EXHIBIT 4.41

                  SECOND AMENDMENT TO PARTICIPATION AGREEMENT
                          (STEELCASE TRUST NO. 2000-1)

         THIS SECOND AMENDMENT TO PARTICIPATION AGREEMENT (Steelcase Trust No.
2000-1), dated as of May 16, 2003 (this "Amendment"), is by and among (i)
STEELCASE INC., a Michigan corporation (herein, together with its successors and
assigns permitted hereunder, called "Lessee"), (ii) WELLS FARGO BANK NORTHWEST,
N.A. (formerly known as First Security Bank, National Association), a national
banking association (the "Trust Company"), not in its individual capacity except
as expressly provided herein, but solely as Certificate Trustee under the Trust
Agreement (herein in such capacity, together with its successors and permitted
assigns, called the "Certificate Trustee"), (iii) WELLS FARGO BANK NEVADA, N.A.
(formerly known as First Security Trust Company of Nevada), not in its
individual capacity, except as expressly stated herein, but solely as
Administrative Agent ("Administrative Agent"), (iv) BANC OF AMERICA LEASING &
CAPITAL, LLC and SCOTIABANC INC. (each herein, together with its successors and
permitted assigns, called a "Certificate Holder" and collectively, the
"Certificate Holders"), (v) HATTERAS FUNDING CORPORATION, a Delaware corporation
(the "CP Lender") and (vi) BANK OF AMERICA, NATIONAL ASSOCIATION, FIFTH THIRD
BANK (f/k/a Old Kent Bank), THE NORTHERN TRUST COMPANY, and THE BANK OF NOVA
SCOTIA (each herein, together with its successors and permitted assigns, as a
Facility Lender called a "Facility Lender" and collectively, the "Facility
Lenders" and as a Liquidity Bank under the LAPA, a "Liquidity Bank" and
collectively, the "Liquidity Banks").

                              W I T N E S S E T H:

         WHEREAS, Lessee, Certificate Trustee, Administrative Agent, the
Certificate Holders, the CP Lender, the Facility Lenders and Bank of America,
National Association, not in its individual capacity but solely as
Administrator, are parties to that certain Participation Agreement (Steelcase
Trust No. 2000-1) dated as of May 26, 2000 (as amended, restated, supplemented
or otherwise modified and in effect, the "Participation Agreement"), pursuant to
which Certificate Trustee has purchased the Aircraft and has concurrently leased
the Aircraft to Lessee;

         WHEREAS, the parties hereto desire to amend the Participation Agreement
in certain respects;

         NOW, THEREFORE, in consideration of the mutual agreements contained
herein and other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties hereto agree as follows:

SECTION 1.  DEFINITIONS.

         1.1 Definitions. Capitalized terms used herein but not otherwise
defined herein shall have the meaning set forth in the Participation Agreement.
In the case of any conflict between the provisions of this Amendment and the
provisions of the Operative Documents, the provisions of this Amendment shall
control construction of the terms.

<PAGE>

SECTION 2.  AMENDMENT TO PARTICIPATION AGREEMENT.

         2.1 Amendment to Appendix A. Effective as of June 2, 2003 the
definition of "Applicable Percentage" in Appendix A to the Participation
Agreement is amended by deleting the table therein and replacing it in its
entirety with the following:

<TABLE>
<CAPTION>
   Pricing                                                            LIBOR      Certificate     Facility
    Level                Senior Unsecured Credit Rating               Loan          Amount         Fee

<S>           <C>                                                    <C>         <C>            <C>
      I        A or higher from S&P and A2 or higher from Moody's     0.40%         2.00%         0.17%

     II        A- from S&P and A3 from Moody's                        0.50%         2.00%         0.20%

     III       BBB+ from S&P and Baa1 from Moody's                    0.60%         2.00%         0.25%

     IV        BBB from S&P and Baa2 from Moody's                     0.70%         2.00%         0.30%

      V        BBB -- from S&P and Baa3 from Moody's                  1.15%         2.00%         0.40%

     VI        None of the above                                      1.55%         2.00%         0.45%
</TABLE>

SECTION 3.  REPRESENTATIONS AND WARRANTIES OF LESSEE.

                  3.1 Representations and Warranties of Lessee. In order to
induce the parties hereto to enter into this Amendment, Lessee hereby represents
and warrants to the parties hereto that:

                  (a) Power; Authority. It is validly existing under the laws of
         the State of Michigan; it has the power and authority to enter into
         this Amendment; and this Amendment constitutes its legal, valid and
         binding obligations and is enforceable against it in accordance with
         its terms.

                  (b) No Default. No Event of Default has occurred and is
         continuing.

SECTION 4.  MISCELLANEOUS.

         4.1 Continued Effectiveness of Operative Documents. Except as
specifically amended hereby, each of the Participation Agreement and the other
Operative Documents shall remain unchanged and continue in full force and
effect. After the execution of this Amendment by the parties hereto, any
reference to the Participation Agreement (including Appendix A thereto) in any
Operative Document shall be to the Participation Agreement, as amended hereby.

                                       2
<PAGE>

         4.2 Release. In consideration of entering into this Amendment, except
with respect to obligations expressly set forth in the Operative Documents,
Lessee releases the other parties hereto and each of their respective
Affiliates, Subsidiaries, officers, employees, representatives, agents, counsel
and directors from any and all actions, causes of action, claims, demands,
damages and liabilities of whatever kind or nature, in law or in equity, now
known or unknown, suspected or unsuspected to the extent that any of the
foregoing arises from any action or failure to act with respect to this
Amendment or any other Operative Document, on or prior to the date hereof.

         4.3 Governing Law. THIS AMENDMENT SHALL HAS BEEN DELIVERED IN, AND
SHALL IN ALL RESPECTS BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH THE
INTERNAL LAWS OF, THE STATE OF NEW YORK, WITHOUT REGARD TO THE CONFLICTS OF LAWS
PRINCIPLES OF SUCH STATE (EXCEPT TITLE 14 OF ARTICLE 5 OF THE NEW YORK GENERAL
OBLIGATIONS LAW).

         4.4 Counterparts. This Amendment may be executed by the parties hereto
in separate counterparts, each of which when so executed and delivered shall be
an original, but all such counterparts shall together constitute but one and the
same agreement.

         4.5 Direction. The Certificate Holders direct the Certificate Trustee
and the Facility Lenders hereby direct the Administrative Agent to enter into
this Amendment.

         4.6 Successors and Assigns. This Amendment shall be binding upon and
shall be enforceable by the parties hereto and their respective permitted
successors and assigns. The terms and provisions of this Amendment are for the
purpose of defining the relative rights and obligations of Lessee, Certificate
Trustee and the other parties hereto with respect to the transactions
contemplated hereby and there shall be no third party beneficiaries of any of
the terms and provisions of this Amendment.

         4.7 Entire Agreement. This Amendment and all documents referred to
herein constitute the entire agreement of the parties hereto with respect to the
subject matter hereof and supersede any prior expressions of intent or
understandings with respect to this Amendment.

         4.8 Headings. Section headings in this Amendment are included herein
for convenience of reference only and shall not constitute a part of this
Amendment for any other purpose.

         4.9 Severability. Wherever possible, each provision of this Amendment
shall be interpreted in such a manner as to be effective and valid under
applicable law, but if any provision of this Amendment shall be prohibited by or
invalid under applicable 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 Amendment.

            [The remainder of this page is intentionally left blank.]

                                       3
<PAGE>

         IN WITNESS WHEREOF, this Amendment has been duly executed as of the
date first written above.

                                      STEELCASE INC.,
                                      as Lessee

                                      By:      /s/ GARY P. MALBURG
                                         -----------------------------

                                      Name: Gary P. Malburg

                                      Title: Vice President, Finance & Treasurer

                                      WELLS FARGO BANK NORTHWEST,
                                      N.A., not in its individual
                                      capacity but solely as
                                      Certificate Trustee

                                      By:      /s/ VAL T. ORTON
                                         -----------------------------

                                      Name: Val T. Orton

                                      Title: Vice President

                                      WELLS FARGO BANK NEVADA, N.A., not
                                      in its individual capacity but solely as
                                      Administrative Agent

                                      By:      /s/ VAL T. ORTON
                                         -----------------------------

                                      Name: Val T. Orton

                                      Title: Trust Officer

                                      HATTERAS FUNDING CORPORATION,
                                      as CP Lender

                                      By:      /s/ CHRISTOPHER T. BURT
                                         -----------------------------

                                      Name: Christopher T. Burt

                                      Title: Vice President

                                       4
<PAGE>

                                      BANC OF AMERICA LEASING &
                                      CAPITAL, LLC, as a Certificate Holder

                                      By:      /s/ ALBERT Z. NORONA
                                         -----------------------------

                                      Name: Albert Z. Norona

                                      Title: Principal

                                      SCOTIABANC INC.,
                                      as a Certificate Holder

                                      By:      /s/ WILLIAM E. ZARRETT
                                         -----------------------------

                                      Name: William E. Zarrett

                                      Title: Managing Director

                                      BANK OF AMERICA, NATIONAL
                                      ASSOCIATION, as a Facility Lender

                                      By:      /s/ JACK WILLIAMS
                                         -----------------------------

                                      Name: Jack Williams

                                      Title: Managing Director

                                      FIFTH THIRD BANK (f/k/a Old Kent Bank),
                                      as a Facility Lender

                                      By:      /s/ SETH W. WATSON, III
                                         -----------------------------

                                      Name: Seth W. Watson, III

                                      Title: Vice President

                                      THE NORTHERN TRUST COMPANY,
                                      as a Facility Lender

                                      By:      /s/ PETER R. MARTINETS
                                         -----------------------------

                                      Name: Peter R. Martinets

                                      Title: Vice President

                                       5
<PAGE>

                                      THE BANK OF NOVA SCOTIA,
                                      as a Facility Lender

                                      By:      /s/ MARK SPARROW
                                         -----------------------------

                                      Name: Mark Sparrow

                                      Title: Director

                                      BANK OF AMERICA NATIONAL
                                      ASSOCIATION, as Administrator

                                      By:      /s/ M. RANDALL ROSS
                                         -----------------------------

                                      Name: M. Randall Ross

                                      Title: Principal

                                       6

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