Document:

<PAGE>

                                                                    EXHIBIT 4.20

                                                                  Execution Copy

                                 LOAN AGREEMENT

                                 US$220,000,000

                                 STEELCASE SAS,
                                       as
                                    Borrower

                                 STEELCASE INC.
                                       as
                                    Guarantor

                                SOCIETE GENERALE
                                 Chicago Branch
                                       as
                                     Lender

                                   dated as of
                                  April 9, 1999

                                Coudert Brothers
                           1114 Avenue of the Americas
                             New York, NY 10036-7703

                                   * * * * * *

<PAGE>

                                TABLE OF CONTENTS

                                                                            Page

1.   DEFINITIONS ...........................................................  1

2.   THE LOAN ..............................................................  8
     2.1   Agreement to Lend ...............................................  8
           -----------------
     2.2   Purpose of the Loan .............................................  9
           -------------------
     2.3   Drawdown ........................................................  9
           --------
     2.4   Repayment of Loan; Equity Repayment Option ......................  9
           ------------------------------------------
     2.5   Prepayment of Loan ..............................................  9
           ------------------
     2.6   Protections with Respect to Repayment Shares .................... 11
           --------------------------------------------
     2.7   Interest on the Loan ............................................ 11
           --------------------
     2.8   Default Interest. ............................................... 12
           ----------------
     2.9   General Provisions as to Payments ............................... 12
           ---------------------------------

3.   YIELD PROTECTION ...................................................... 13
     3.1   Taxes ........................................................... 13
           -----
     3.2   Increased Costs ................................................. 14
           ---------------
     3.3   Illegality of Maintaining the Loan............................... 15
           ----------------------------------
     3.4   Cost Minimization; Adversity Prepayment ......................... 15
           ---------------------------------------
     3.5   Funding Losses .................................................. 16
           --------------

4.   FEES, CHARGES AND INDEMNITY ........................................... 16
     4.1   Fees and Expenses ............................................... 16
           -----------------
     4.2   Lender's Costs and Expenses ..................................... 16
           ---------------------------
     4.3   Indemnification ................................................. 16
           ---------------

5.   REPRESENTATIONS AND WARRANTIES WITH RESPECT TO THE
           BORROWER ........................................................ 17
     5.1   Incorporation and Qualification ................................. 17
           -------------------------------
     5.2   Power and Authority ............................................. 17
           -------------------
     5.3   Authorization of Borrowing ...................................... 17
           --------------------------
     5.4   Agreement Binding ............................................... 18
           -----------------
     5.5   Registrations and Approvals ..................................... 18
           ---------------------------
     5.6   Litigation ...................................................... 18
           ----------
     5.7   Subsidiaries .................................................... 18
           ------------
     5.8   Title to Properties and Assets .................................. 19
           ------------------------------
     5.9   Compliance with Law ............................................. 19
           -------------------
     5.10  Other Obligations ............................................... 19
           -----------------
     5.11  Full Disclosure ................................................. 19
           ---------------
     5.12  No Material Adverse Effect ...................................... 19
           --------------------------

<PAGE>

6.   REPRESENTATIONS AND WARRANTIES WITH RESPECT TO THE
           GUARANTOR ....................................................... 20
     6.1   Incorporation and Qualification ................................. 20
           -------------------------------
     6.2   Power and Authority ............................................. 20
           -------------------
     6.3   Authorization of Borrowing ...................................... 20
           --------------------------
     6.4   Agreement Binding ............................................... 20
           -----------------
     6.5   Litigation ...................................................... 21
           ----------
     6.6   Financial Statements ............................................ 21
           --------------------
     6.7   Title to Properties and Assets .................................. 21
           ------------------------------
     6.8   Compliance with Law ............................................. 21
           -------------------
     6.9   Other Obligations ............................................... 22
           -----------------
     6.10  Capital Structure ............................................... 22
           -----------------
     6.11  Full Disclosure ................................................. 22
           ---------------
     6.12  No Material Adverse Effect ...................................... 22
           --------------------------
     6.13  Year 2000 Issue.................................................. 22
           ---------------
     6.14  Employee Benefit Plans........................................... 23
           ----------------------

7.   AFFIRMATIVE COVENANTS OF THE BORROWER ................................. 23
     7.1   Financial Statements ............................................ 23
           --------------------
     7.2   Other Reporting Requirements. ................................... 24
           ----------------------------
     7.3   Taxes ........................................................... 24
           -----
     7.4   Maintenance and Continuity of Business .......................... 24
           --------------------------------------
     7.5   Continuing Governmental Approvals ............................... 25
           ---------------------------------
     7.6   Further Documents ............................................... 25
           -----------------
     7.7   Inspection ...................................................... 25
           ----------
     7.8   Payment of Obligations .......................................... 25
           ----------------------
     7.9   Pari Passu Ranking............................................... 25
           ------------------

8.   AFFIRMATIVE COVENANTS OF THE GUARANTOR ................................ 26
     8.1   Financial Statements; Other Reports ............................. 26
           -----------------------------------
     8.2   Taxes ........................................................... 26
           -----
     8.3   Maintenance and Continuity of Business .......................... 26
           --------------------------------------
     8.4   Continuing Governmental Approvals ............................... 27
           ---------------------------------
     8.5   Maintenance of Properties ....................................... 27
           -------------------------
     8.6   Year 2000 Issue ................................................. 27
           ---------------
     8.7   ERISA ........................................................... 27
           -----
     8.8   Post-Closing Deliveries ......................................... 28
           -----------------------

9.   NEGATIVE COVENANTS OF THE BORROWER .................................... 28
     9.1   Merger; Sale of Assets .......................................... 28
           ----------------------
     9.2   Indebtedness Limitation ......................................... 29
           -----------------------

10.  NEGATIVE COVENANTS OF THE GUARANTOR ....................................29
     10.1  Negative Pledge ................................................. 29
           ---------------
     10.2  Financial Covenants ............................................. 31
           -------------------

                                       ii

<PAGE>

<TABLE>
<S>                                                                             <C>
11.    CONDITIONS PRECEDENT TO DRAWDOWN .....................................   31
       11.1    Authorizations ...............................................   31
               --------------
       11.2    Note .........................................................   32
               ----
       11.3    Governmental Approvals .......................................   32
               ----------------------
       11.4    Opinions .....................................................   32
               --------
       11.5    Drawdown Certificate .........................................   32
               --------------------
       11.6    Guaranty .....................................................   32
               --------
       11.7    Financial Statements .........................................   33
               --------------------
       11.8    Receipt of Funds .............................................   33
               ----------------
       11.9    Fees..........................................................   33
               ----
       11.10   Other Documents ..............................................   33
               ---------------

12.    EVENTS OF DEFAULT ....................................................   33
       12.1    Events of Default ............................................   33
               -----------------
       12.2    Right to Accelerate on Payment Default .......................   34
               --------------------------------------
       12.3    Right to Accelerate on Event of Default ......................   35
               ---------------------------------------

13.    MISCELLANEOUS ........................................................   35
       13.1    Term .........................................................   35
               ----
       13.2    Entire Agreement .............................................   35
               ----------------
       13.3    Waiver; Cumulative Rights ....................................   35
               -------------------------
       13.4    Assignment and Participation .................................   36
               ----------------------------
       13.5    Governing Law ................................................   36
               -------------
       13.6    Submission to Jurisdiction ...................................   36
               --------------------------
       13.7    Notices ......................................................   37
               -------
       13.8    Severability .................................................   38
               ------------
       13.9    Confidentiality ..............................................   38
               ---------------
       13.10   Counterparts .................................................   38
               ------------
       13.11   Right of Setoff ..............................................   38
               ---------------
       13.12   Survival of Agreement ........................................   39
               ---------------------
       13.13   WAIVER OF JURY TRIAL .........................................   39
               --------------------
</TABLE>

                                       iii

<PAGE>

                          ANNEX, EXHIBITS AND SCHEDULES

Resolutions                                                  Annex A
Promissory Note                                              Exhibit A
Drawdown Certificate                                         Exhibit B
Corporate Guaranty                                           Exhibit C
Opinion of Counsel to the Borrower                           Exhibit D
Opinion of Counsel to the Guarantor                          Exhibit E
Compliance Certificate, Steelcase SAS                        Exhibit F-1
Form of Compliance Certificate, Steelcase Inc.               Exhibit F-2
Repayment Shares                                             Schedule 1.58
Pending or Threatened Litigation of the Guarantor            Schedule 6.5
Indebtedness of the Borrower                                 Schedule 9.2

                                       iv

<PAGE>

THIS LOAN AGREEMENT (the "Agreement") made as of April 9, 1999 by and among:

STEELCASE SAS, a Societe par Actions Simplifiee organized and existing under the
         laws of the Republic of France, with its registered office at Tour
         Aurore 01, 18 Place des Reflets, 92975 Paris La Defense 2 Cedex, France
         (the "Borrower"),

STEELCASE INC., a corporation organized and existing under the laws of the State
         of Michigan (the"Guarantor"), and

SOCIETE GENERALE, a bank organized and existing under the laws of the Republic
         of France, acting through its Chicago Branch (the "Lender"),

sets forth the binding agreement of the parties.

                             SECTION 1. DEFINITIONS

The following terms shall have the meanings set forth below:

1.1      "Additions to Capital" shall mean the aggregate net proceeds, including
         cash and the fair market value of property other than cash, received by
         the Guarantor from the issue or sale of capital stock of the Guarantor
         plus the aggregate of 25% of the after tax gains realized from unusual,
         extraordinary and major nonrecurring items.

1.2      "Affiliate" means (i) any Person that directly, or indirectly through
         one or more intermediaries, controls the Borrower (a "Controlling
         Person") or (ii) any Person (other than the Borrower or a Subsidiary)
         which is controlled by or is under common control with a Controlling
         Person. As used herein, the term "control" means possession, directly
         or indirectly, of the power to direct or cause the direction of the
         management or policies of a Person, whether through the ownership of
         voting securities, by contract or otherwise.

1.3      "Agreement" shall have the meaning set forth in the preamble.

1.4      "Authorized Representative" shall mean for purposes of this Agreement
         the following individuals (it being acknowledged that any such
         individual need not be an officer or employee of such person for other
         purposes) (a) in respect of any Compliance Certificate, the Secretary,
         the Chief Financial Officer, Treasurer or Assistant Treasurer; (b) in
         respect of any other delivery by: (i) the Borrower, any of its
         Chairman, President Directeur General or Chief Financial Officer or
         (ii) the Guarantor, any of its Chief Financial Officer, Treasurer or
         Assistant Treasurer; and (c) in respect of all matters relating to this
         Agreement, the Note and the Guaranty, another person designated in
         writing by any individual specified in clause (a) or clause (b) above
         as duly authorized to act on behalf of the (i) Borrower or (ii) the
         Guarantor, respectively, under and in respect of this Agreement, the
         Note or the Guaranty and any person acting under valid corporate power
         and authority as an officer or director of such person or a valid power
         of attorney on behalf of the Borrower or the Guarantor, as the case may
         be.

<PAGE>

1.5      "Banking Day" shall mean a day other than a Saturday or Sunday on which
         commercial banks are open for business in Chicago, Illinois, U.S.A. and
         Paris, France.

1.6      "Banking Day Adjustment" shall mean, with respect to a day that is not
         a Banking Day, the next succeeding Banking Day.

1.7      "Beneficial Owner" or "Beneficial Ownership" shall have the meaning
         ascribed to such term in Rule 13d-3 of the General Rules and
         Regulations under the Securities Exchange Act of 1934, as amended.

1.8      "Borrower" shall have the meaning set forth in the preamble.

1.9      "Breakage Cost" shall mean any and all losses and expenses incurred by
         the Lender arising from the termination of accrued or actual time
         deposits or other long term funding arrangements made in conjunction
         with funding the Loan during the Initial Period in the event of a
         prepayment of the Loan or acceleration following an Event of Default,
         in either case, for any reason.

1.10     "Change in Control" shall mean: (a) with respect to the Guarantor, (i)
         any Person or two or more Persons acting in concert (other than members
         of the Existing Control Group) shall have acquired Beneficial Ownership
         or the right to acquire Beneficial Ownership, directly or indirectly,
         of securities of the Guarantor (or other securities convertible into
         such securities) representing 35% or more of the combined voting power
         of all securities of the Guarantor entitled to vote in the election of
         directors, other than securities having such power only by reason of
         the happening of a contingency ("Share Acquisition"); or (ii)
         individuals who either (x) have been directors of the Guarantor for the
         prior 24-month period or (y) were nominated or elected by directors in
         office during such period (but prior to any Share Acquisition) shall
         cease for any reason to constitute a majority of the board of directors
         of the Guarantor, or (b) with respect to the Borrower, the Guarantor
         shall cease to hold Beneficial Ownership of a majority equity interest
         in the Borrower.

1.11     "Code" shall mean the Internal Revenue Code of 1986, as amended.

1.12     "Commitment" shall mean the commitment of the Lender to advance a first
         Drawdown in the principal amount of US$100,000,000, plus, subject to
         the approval of the Lender acting in its sole discretion, one or more
         subsequent drawdowns not in excess of US$120,000,000 as agreed from
         time to time among the Borrower, the Lender and the Guarantor.

1.13     "Confidential Information" shall have the meaning set forth in Section
         13.9.2.

1.14     "Consolidated Net Tangible Assets" shall mean, as of any particular
         time, for the Guarantor, the aggregate amount of assets after deducting
         therefrom (a) all current liabilities, (b) any current liability which
         has been reclassified as a long-term liability because such liability
         by its terms is extendable or renewable at the option of the obligor
         thereon to a time more than 12 months after the time as of which the
         amount thereof is being computed, and (c) all goodwill, excess of cost
         over assets acquired, patents,

                                       2

<PAGE>

         copyrights, trademarks, trade names, unamortized debt discount and
         expense and other like intangibles, all as shown in the most recent
         consolidated financial statements of the Guarantor and its
         Subsidiaries prepared in accordance with GAAP.

1.15     "Debt" shall mean (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.

1.16     "Default Interest" shall have the meaning set forth in Section 2.8.

1.17     "Default Interest Rate" shall have the meaning set forth in Section
         2.8.

1.18     "Drawdown" shall mean each borrowing by the Borrower of the Loan or a
         portion thereof.

1.19     "Drawdown Certificate" shall mean the drawdown certificate to be
         delivered by the Borrower to the Lender in connection with each
         Drawdown of the Loan, substantially in the form of Exhibit B attached
                                                            ---------
         hereto.

1.20     "Drawdown Date" shall mean, with respect to any Drawdown, the date of
         the occurrence of such Drawdown, following the fulfillment, to the
         satisfaction of the Lender, of each of the conditions precedent set
         forth in Section 11 hereof.

1.21     "EBITDA" shall mean, 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.

1.22     "Effective Date" shall mean the date on which this Agreement is duly
         executed and delivered by all of the parties hereto.

1.23     "Equity Repayment Option" shall mean the option of the Borrower to
         repay the principal portion of the Loan by issuing the Repayment Shares
         to the Lender as set forth in Section 2.4.2.

1.24     "ERISA" shall mean the Employee Retirement Income Security Act of 1974,
         as the same may be amended from time to time.

1.25     "ERISA Affiliate" shall mean any trade or business (whether or not
         incorporated) that is a member of a group of which the Guarantor is a
         member and which is treated as a single employer under Section 414 of
         the Code.

1.26     "Event of Default" shall have the meaning set forth in Section 12.1.

                                       3

<PAGE>

1.27     "Existing Control Group" shall mean all of the Guarantor's directors
         and executive officers and beneficial owners of the Guarantor's Class B
         common stock as of the date of this Agreement.

1.28     "Final Maturity Date" shall mean the 30th anniversary of the first
         Drawdown Date.

1.29     "financial statements" shall include the consolidated statements of
         income, consolidated balance sheets, consolidated statements of cash
         flows, consolidated statements of shareholders' equity, and the notes
         thereto.

1.30     "First Drawdown Amount" shall mean One Hundred Million United States
         Dollars ($100,000,000), or such other amount as shall be requested by
         the Borrower and agreed by the Lender.

1.31     "First Drawdown Date" shall mean the Drawdown Date for the Drawdown of
         the First Drawdown Amount.

1.32     "Funding Losses" shall mean all costs, expenses and losses actually
         incurred by the Lender as a result of the failure of the Borrower to
         draw down funds which have been made available by the Lender for the
         Borrower pursuant to this Agreement as a result of the failure of the
         satisfaction of any of the conditions precedent to Drawdown after a
         Drawdown Certificate has been delivered, including the present value
         (discounted at the Lender's funding rate) of the loss arising from
         reemployment of such funds for the period from, and including, (i) the
         date on which funds would have been made available by the Lender
         (excluding, as applicable, the funds that would have been provided by
         reason of any participation in the Loan and taking into account the
         nature of the participation) specifically in order to fund the Loan at
         rates lower than the actual return to the Lender to (ii) the date on
         which such funds would have been redeployed by the Lender.

1.33     "GAAP" shall mean generally accepted accounting principles in effect in
         the United States of America or in France, as the case may be, from
         time to time, applied on a consistent basis.

1.34     "Guarantor" shall have the meaning set forth in the preamble.

1.35     "Guaranty" shall mean that certain corporate guaranty provided by the
         Guarantor in favor of the Lender, substantially in the form attached
         hereto as Exhibit C.

1.36     "Increased Costs" shall have the meaning set forth in Section 3.2.1.

1.37     "Indebtedness" shall mean (i) indebtedness for borrowed money, (ii)
         obligations evidenced by bonds, debentures, notes or other similar
         instruments, (iii) obligations to pay the deferred purchase price of
         property or services, (iv) obligations as lessee under leases which
         shall have been or should be, in accordance with GAAP, recorded as
         capital leases, and (v) obligations under direct or indirect guaranties
         in respect of, and obligations (contingent or otherwise) to purchase or
         otherwise acquire, or otherwise to assure a creditor against loss in
         respect of, indebtedness or obligations of others of the kinds

                                       4

<PAGE>

         referred to in clauses (i) through (iv) above. All amounts owed,
         directly or indirectly, by a Subsidiary or Affiliate of the Borrower or
         of the Guarantor (including without limitation, the Borrower) to
         another Subsidiary or Affiliate of the Borrower or of the Guarantor
         shall not constitute Indebtedness of such Subsidiary or Affiliate as
         long as such Subsidiary or Affiliate continues to remain as a
         Subsidiary or Affiliate of the Borrower or of the Guarantor.

1.38     "Initial Period" shall mean the period commencing on the Drawdown Date
         and ending on the seventh anniversary of the Drawdown Date, subject to
         Banking Day Adjustment; provided, however, that if there shall then be
         due and payable any Obligation in respect of the Initial Period Amount,
         or any amount payable to the Lender pursuant to Section 3 or Section 4
         hereof, the Initial Period shall continue beyond such seventh
         anniversary date until such amounts have been paid in full.

1.39     "Initial Period Amount" shall mean, as of any date during the Initial
         Period, the sum of (a) the portion of the principal amount of the Loan
         equal to the present value of the aggregate amount of interest
         scheduled to be paid in respect of the Loan from and including such
         date through and including the last scheduled day of the Initial Period
         (where such present value shall be determined by discounting such
         aggregate amount at the Lender's funding rate), (b) any Default
         Interest due and payable and (c) Breakage, if any.

1.40     "Insolvency Event" means:

         (a)   with respect to the Borrower, the application by the Borrower for
               the appointment of a conciliator (conciliator), the entering into
               by the Borrower of an amicable settlement (accord amiable) with
               its creditors or the cessation by the Borrower of its payments or
               the issuance of a judgment for the Borrower's judicial
               liquidation (liquidation judiciaire) or for a transfer of the
               whole of its business (cession totale de l'entreprise) pursuant
               to Articles 81 et seq. of the French Law of January 25, 1985, or
               the Borrower becoming subject to similar proceedings or, in the
               absence of legal proceedings, the Borrower making a conveyance,
               assignment or other arrangement for the benefit of its creditors
               or entering into a composition with its creditors, or passing a
               resolution for its winding-up or dissolution;

         (b)   with respect to the Guarantor:

               (i)   the Guarantor commences a proceeding or makes an
                     application or petition to a court or other judicial or
                     administrative forum for an order that the Guarantor be
                     declared bankrupt or insolvent or be wound up or that an
                     order be entered for the liquidation, reorganization or for
                     other relief with respect to the debts of such Person or
                     that a provisional liquidator be appointed;

               (ii)  any application is made or any involuntary case or
                     proceeding is commenced against the Guarantor seeking
                     liquidation, reorganization or other relief with respect to
                     it or its debts under any bankruptcy, insolvency

                                       5

<PAGE>

                    or other similar law now or hereafter in effect or seeking
                    the appointment of a trustee, receiver, liquidator,
                    custodian, administrator or other similar official of it or
                    any substantial part of its property, (unless the
                    application is withdrawn, struck out or dismissed, or the
                    case or proceeding is dismissed or terminated, within 60
                    days of it being made); or

         (c)   a liquidator is appointed for the Guarantor.

1.41     "Interest Payment Date" shall mean the last day of each Interest
         Period.

1.42     "Interest Period" shall mean the semi-annual period commencing on the
         date of the first Drawdown and lasting until the date six months
         immediately thereafter (subject to any Banking Day Adjustment) and each
         successive semi-annual period thereafter commencing on the last day of
         the then ending Interest Period and ending on the next date six months
         immediately thereafter (subject to any Banking Day Adjustment) or, with
         respect to the final Interest Period, ending on the date of repayment
         of the Loan, whether by reason of a permitted prepayment, acceleration
         of the Loan following the occurrence of an Event of Default, or
         otherwise.

1.43     "Interest Rate" shall mean 7.5% per annum.

1.44     "Lender" shall have the meaning set forth in the preamble, and shall
         include transferees and assignees, if any, of the Lender pursuant to
         Section 13.4.1.

1.45     "Lien" shall mean any mortgage, pledge, hypothecation, assignment,
         deposit arrangement, encumbrance, lien (statutory or other) or other
         security agreement or preferential arrangement of any kind or nature
         whatsoever (including, without limitation, any conditional sale or
         other title retention agreement, and any lease having substantially the
         same effect as any of the foregoing).

1.46     "Loan" shall mean a loan in the initial principal amount of
         US$100,000,000 plus any subsequent drawdowns not in excess of
         US$120,000,000, in the aggregate, subject to any prepayment or
         repayment by the Borrower from time to time.

1.47     "Material Adverse Effect" shall mean a material adverse effect on (a)
         the financial condition or operations of the Guarantor and its
         consolidated Subsidiaries taken as a whole, (b) the legality, validity
         or enforceability of this Agreement, the Note or the Guaranty or (c)
         the ability of the Borrower or the Guarantor to perform their
         respective obligations under this Agreement, the Note or the Guaranty,
         as the case may be.

1.48     "Monthly Management Reports" shall have the meaning set forth in
         Section 6.6.

1.49     "Multiemployer Plan" shall mean a mulitemployer plan as defined in
         Section 4001(a)(3) of ERISA to which the Guarantor or any ERISA
         Affiliate (other than one considered an ERISA Affiliate only pursuant
         to subsection (m) or (o) of Section 414 of the Code) is making or
         accruing an obligation to make contributions, or has within any of the
         preceding five plan years made or accrued an obligation to make
         contributions.

                                       6

<PAGE>

1.50     "Net Income" shall mean net income in accordance with GAAP.

1.51     "Net Worth" shall mean minority interests, preferred stock and common
         stock and other equity, as shown on the consolidated balance sheet of
         the Guarantor and its Subsidiaries, provided, that there shall be
         excluded from the calculation of Net Worth any unrealized gains or
         losses (net of taxes) on securities available for sale.

1.52     "Note" shall mean a promissory note or promissory notes of the Borrower
         evidencing the Loan, being payable to the order of the Lender in the
         amount of the Loan, which note or notes shall be in the form of Exhibit
                                                                         -------
         A attached hereto, or any promissory note(s) delivered by the Borrower
         -
         in extension, renewal or substitution therefor and evidencing all or
         part of such Loan.

1.53     "Obligations" shall mean (a) the unpaid principal of and interest on
         the Loan (including interest accruing at the then applicable rate
         provided in this Agreement (each rate being either the Interest Rate or
         the Default Interest Rate, as the case may be)), (b) all other
         obligations and liabilities of every nature of the Borrower from time
         to time owing to the Lender, in each case whether direct or indirect,
         absolute or contingent, due or to become due, or now existing or
         hereafter incurred (including monetary obligations incurred during the
         pendency of any proceeding based upon or arising out of an Insolvency
         Event, regardless of whether allowed or allowable in such proceeding),
         which may arise under, out of, or in connection with, this Agreement or
         the Note or under any other document made, delivered or given in
         connection with any of the foregoing, in each case whether on account
         of principal, premium, if any, interest, fees, indemnities, costs,
         expenses or otherwise (including all reasonable fees and disbursements
         of counsel to the Lender) that are required to be paid by the Borrower
         pursuant to the terms of this Agreement or the Note and, without
         duplication, (c) all obligations of the Guarantor hereunder and under
         the Guaranty.

1.54     "Payment Default" shall mean an Event of Default arising under Section
         12.1.1 or 12.1.7.

1.55     "Person" or "person" shall mean any natural person, partnership,
         corporation, company, joint venture or other business entity.

1.56     "PBGC" shall mean the Pension Benefit Guarantee Corporation referred to
         and defined in ERISA and any successor thereto.

1.57     "Plan" shall mean any pension plan (other than an Multiemployer Plan)
         subject to the provisions of Title IV of ERISA or Section 412 of the
         Code which is maintained for employees of the Guarantor or any ERISA
         Affiliate.

1.58     "Repayment Shares" shall mean that number of shares of the Borrower as
         is set forth on Schedule 1.58 hereto, subject to Section 2.6.

1.59     "Reportable Event" shall mean any reportable event as defined in
         Section 4043(b) of ERISA or the regulations issued thereunder with
         respect to a Plan (other than a Plan

                                       7

<PAGE>

         maintained by an ERISA Affiliate which is considered an ERISA
         Affiliate only pursuant to subsection (m) or (o) of Section 414 of the
         Code).

1.60     "Subsidiary" shall mean, with respect to any Person, any corporation or
         other business entity of which such Person (or any other shareholding
         corporation referred to in the context in which the term is used)
         directly or indirectly owns more than fifty percent (50%) of the
         outstanding capital stock or other ownership interest having ordinary
         voting power to elect directors, managers or trustees of such
         corporation or other business entity, or any corporation or other
         business entity which is otherwise controlled directly or indirectly by
         such Person (or such shareholding corporation). Collectively, two or
         more subsidiaries of a Person shall be referred to as "Subsidiaries" of
         such Person.

1.61     "Taxes" shall mean any and all present or future taxes, duties,
         excises, levies, imposts, deductions, charges, or withholdings of any
         kind whatsoever levied or imposed by any taxing authority, together
         with any interest, penalties and additions to tax with respect thereto.

1.62     "Transaction Taxes" shall mean, with respect to the Borrower and the
         Guarantor, any and all present or future taxes, duties, excises,
         levies, imposts, deductions, charges, or withholdings of any kind
         whatsoever levied or imposed by any taxing authority with respect to
         any payment by the Borrower or the Guarantor, as the case may be,
         pursuant to this Agreement, the Note, the Guaranty or any other
         agreement pursuant or relating thereto, together with any interest,
         penalties and additions to tax with respect thereto other than Taxes
         imposed on or by reference to the net income of the Lender by any
         taxing jurisdiction.

1.63     "Unaudited Financial Statements" shall have the meaning set forth in
         Section 6.6.

1.64     "US Dollar" and "US$" shall mean the lawful money of the United States
         of America.

1.65     "Withdrawal Liability" shall mean liability to a Multiemployer Plan as
         a result of a complete or partial withdrawal from such Multiemployer
         Plan, as such terms are defined in Part I of Subtitle E of Title IV of
         ERISA.

1.66     "Year 2000 Issue" shall mean the failure of material computer software,
         hardware and firmware systems and equipment containing embedded
         computer chips to properly receive, transmit, process, manipulate,
         store, retrieve, re-transmit or in any other way utilize data and
         information due to the occurrence of the year 2000 or the inclusion of
         dates on or after January 1, 2000.

                              SECTION 2. THE LOAN

2.1      Agreement to Lend
         -----------------

         Subject to the terms and conditions of this Agreement, the Lender
         hereby agrees to lend to the Borrower, and the Borrower agrees to
         borrow from the Lender, the Loan.

                                       8

<PAGE>

2.2      Purpose of the Loan
         -------------------

         The Borrower agrees that the Loan will be used for general corporate
         purposes including, without limitation, the purchase or redemption of
         shares.

2.3      Drawdown
         --------

         The Borrower shall borrow the First Drawdown Amount in a single
         Drawdown on the First Drawdown Date and, subject to the approval of the
         Lender acting in its sole discretion, may borrow any number of
         subsequent Drawdowns at such time or times and in such amounts (but not
         to exceed, in the aggregate, the amount of the Commitment) as agreed
         from time to time among the Borrower, the Lender and the Guarantor.

2.4      Repayment of Loan; Equity Repayment Option
         ------------------------------------------

         2.4.1 Final Maturity Date. The Loan shall be repaid to the Lender in
               -------------------
         one installment payable on the Final Maturity Date, accompanied by
         payment of all interest accrued to the Final Maturity Date and not
         previously paid.

         2.4.2 Manner of Repayment; Equity Repayment Option. From and after the
               --------------------------------------------
         seventh anniversary of the First Drawdown Date (subject to any Banking
         Day Adjustment), the Borrower shall have the right to exercise the
         Equity Repayment Option to repay the Loan by issuance of the Repayment
         Shares in lieu of the repayment of money for the principal portion of
         the Loan; provided that repayment of the principal portion of the Loan
         shall be accompanied by payment of all interest accrued to the Final
         Maturity Date and not previously paid. In the event that the Borrower
         elects the Equity Repayment Option, the Borrower shall issue to the
         entity entitled thereto the Repayment Shares as duly authorized and
         fully-paid and non-assessable shares. The Lender and any affected
         participant shall deliver a receipt acknowledging payment in full of
         the Loan, and the Lender shall surrender the Note for cancellation, and
         the Lender shall take all other actions (at the sole cost and expense
         of the Borrower) reasonably necessary or desirable (including without
         limitation, execution and delivery of a share subscription instrument
         (Bulletin de Souscription)) in order to consummate the Equity Repayment
         Option.

2.5      Prepayment of Loan
         ------------------

         2.5.1 Restricted Prepayment Right. Except as set forth in Section 3.4
               ---------------------------
         in the context of adversity prepayment, no prepayment of the Loan shall
         be permitted from the First Drawdown Date until the Interest Payment
         Date occurring on the seventh anniversary of the First Drawdown Date
         subject to any Banking Day Adjustment. Any prepayment (including,
         without limitation, upon acceleration following an Event of Default)
         prior to the seventh anniversary of the First Drawdown Date subject to
         any Banking Day Adjustment shall be accompanied by accrued interest
         thereon to the date of prepayment and Breakage Cost (if any) applicable
         in respect of such prepayment. Commencing on the Interest Payment Date
         occurring on the seventh anniversary of the First Drawdown Date subject
         to any Banking Day Adjustment and continuing until the Final Maturity
         Date and

                                       9

<PAGE>

provided that there shall not then exist on the date of prepayment any default
specified in Section 12.1.1, the Borrower shall have the right at any time to
either (i) prepay the Loan, in whole or in part, in money or (ii) prepay the
Loan in whole, by exercise of the Equity Repayment Option, in either case
without any reimbursement to the Lender for Breakage Cost or any other penalty
or premium whatsoever.

2.5.2    Voluntary Prepayments.  All voluntary prepayments by the Borrower shall
         ---------------------
be subject to the following:

         (a)      The Borrower will give written notice of prepayment of the
                  Loan (which notice shall be irrevocable, except as provided in
                  clause (c) below) to the Lender not less than 30 nor more than
                  60 days prior to the date fixed for prepayment, specifying (a)
                  such date and (b) the aggregate principal amount of the Loan
                  to be prepaid on such date and a statement indicating whether
                  it is electing to exercise the Equity Repayment Option. Notice
                  of prepayment having been so given, the aggregate principal
                  amount of the Loan specified in such notice, together with the
                  accrued interest thereon shall become due and payable on the
                  prepayment date specified in such notice. Not less than three
                  (3) Banking Days before such prepayment date, the Lender shall
                  deliver to the Borrower a certificate as to the amount of the
                  interest due and payable through such prepayment date on the
                  Loan, together with the amount of Lender's Breakage Cost (if
                  any) due and payable in respect of such prepayment, setting
                  forth the calculation thereof in reasonable detail, which
                  certificate shall be conclusive in the absence of manifest
                  error.

         (b)      If, on or after the Interest Payment Date occurring on the
                  seventh anniversary of the First Drawdown Date subject to any
                  Banking Day Adjustment, the Borrower has elected to exercise
                  the Equity Repayment Option, the Lender shall advise the
                  Borrower of the name of the Person entitled to acquire the
                  Repayment Shares (which shall be (i) the Lender as custodian
                  for the participant or its nominee or (ii) the participant or
                  its nominee).

         (c)      The Borrower shall in no event be required to issue the
                  Repayment Shares to any Person not acceptable to the Borrower,
                  in its discretion, and shall have the right to modify its
                  notice under clause (a) to revoke its election of the Equity
                  Repayment Option if the shareholders of the Repayment Shares
                  would be unacceptable to the Borrower.

2.5.3    Equity Repayment Option. In the event the Borrower elects the Equity
         -----------------------
Repayment Option (as permitted in Section 2.5.1), the Loan shall be repaid by
issuance of the Repayment Shares in lieu of money for the principal portion of
the Loan, together with accrued interest thereon to the prepayment date. The
Borrower shall issue the Repayment Shares as duly authorized and fully-paid and
non-assessable shares. The Lender and any affected participant shall deliver a
receipt acknowledging payment in full of the Loan, the Lender shall surrender
the Note for cancellation, and the Lender shall take all other actions (at the
sole cost and expense of the Borrower) reasonably necessary or desirable
(including

                                       10

<PAGE>

         without limitation, execution and delivery of a share subscription
         instrument (Bulletin de Souscription) in order to consummate the
         Equity Repayment Option.

         2.5.4 Failure to Prepay. If the Borrower fails to prepay the Loan after
               -----------------
         notice has been given to the Lender in accordance with the terms of
         Section 2.5.1, the Borrower shall reimburse the Lender within five (5)
         days after demand for any resulting loss or expense incurred by the
         Lender, including (without limitation) Breakage Cost (if any) for the
         period after any such failure to prepay (after taking into account the
         nature of any participation in the Loan), provided that the Lender
                                                   --------
         shall have delivered to the Borrower a certificate as to the amount of
         such loss or expense, setting forth the calculation thereof in
         reasonable detail, which certificate shall be conclusive in the absence
         of manifest error.

2.6      Protections with Respect to Repayment Shares
         --------------------------------------------

         2.6.1 Antidilution. In the event of any change in the common stock of
               ------------
         the Borrower, or any securities for which the Equity Repayment Option
         becomes exercisable as a result of any adjustment hereinafter provided
         for, by reason of any stock dividend, combination of shares,
         recapitalization (including any extraordinary cash or property dividend
         or distribution in the nature of a recapitalization), stock split or
         other similar event, the number of Repayment Shares shall be
         appropriately and equitably adjusted as may be necessary to prevent
         dilution or enlargement of rights. The existence of the Equity
         Repayment Option shall not limit or affect in any way the right or
         power of the Borrower to engage in any transaction described in this
         Section to the extent otherwise permitted by this Agreement.

         2.6.2 Consolidations and Mergers. In the case of any permitted
               --------------------------
         consolidation, amalgamation or merger of the Borrower with any other
         company (other than a consolidation, amalgamation or merger in which
         the Borrower is the continuing company), the company resulting from
         such consolidation, amalgamation or merger, as the case may be, shall
         be entitled to issue in lieu of the Repayment Shares such new shares
         and other equity securities receivable upon such consolidation,
         amalgamation or merger which will be as nearly equivalent as may be
         practicable to the value of the Repayment Shares immediately prior to
         such consolidation, amalgamation or merger. The existence of the Equity
         Repayment Option shall not limit or affect in any way the right or
         power of the Borrower to engage in any transaction described in this
         Section to the extent otherwise permitted by this Agreement.

2.7      Interest on the Loan.
         --------------------

         2.7.1 Payment of Interest. Interest on the principal amount of the Loan
               -------------------
         shall be due and payable on each Interest Payment Date.

         2.7.2 Computation of Interest. The Loan shall bear interest at the
               -----------------------
         Interest Rate. Interest shall accrue on the basis of 30 day months and
         a year of 360 days and shall accrue from and including the first day of
         an Interest Period to but not including the last day of such Interest
         Period.

                                       11

<PAGE>

2.8      Default Interest.
         ----------------

         Any principal of or interest on the Loan or any other amount payable by
         the Borrower under this Agreement which is not paid when due, whether
         on its stated due date, by acceleration, upon demand or otherwise,
         shall bear interest, to the extent permitted by applicable law, payable
         on demand, for each day from the date any such amount becomes or is
         declared due until paid in full at a rate (the "Default Interest Rate")
         per annum equal to the sum of the Interest Rate plus two percent (2%)
         (the "Default Interest"). Interest accruing under this Section shall be
         computed on the basis of 30 day months and a year of 360 days and
         actual days elapsed and shall be payable from time to time upon demand
         of the Lender.

2.9      General Provisions as to Payments
         ---------------------------------

         2.9.1 Time of Payments. The Borrower shall make each payment of
               ----------------
         interest on, and each payment, if any, of principal of, the Loan and of
         fees hereunder, not later than 12:00 Noon (Chicago, Illinois time) on
         the date when due, in immediately available funds in Chicago, Illinois,
         to the account of the Lender most recently designated by it for such
         purpose by notice to the Borrower. Any change by the Lender of such
         designation shall require at least five (5) Banking Days prior notice.
         Whenever any payment of principal of, or interest on, the Loan or of
         fees or other amounts shall be due on a day which is not a Banking Day,
         the date for payment thereof shall be extended to the next succeeding
         Banking Day unless such Banking Day falls in another calendar month, in
         which case the date for payment thereof, shall be the next preceding
         Banking Day.

         2.9.2 Payments in United States Dollars. The Borrower shall make all
               ---------------------------------
         payments of principal, interest, fees and any other amount due to the
         Lender under this Agreement in United States Dollars in immediately
         available funds on the date such amounts are due.

         2.9.3 Other Currencies. The tender or payment of any amount payable
               ----------------
         under this Agreement (whether or not by recovery under a judgment) in
         any currency other than United States Dollars shall not novate,
         discharge or satisfy the obligation of the Borrower to pay in United
         States Dollars all amounts payable under this Agreement, except to the
         extent the Lender actually receives United States Dollars in its
         account in Chicago.

         2.9.4 Exchange Rate Shortfall. If a currency other than United States
               -----------------------
         Dollars is tendered or paid (or recovered under any judgment) and the
         amount the Lender receives in Chicago, acting in a commercially
         reasonable manner in purchasing United States Dollars with the amount
         of the other currency actually received at a rate of exchange that
         includes any premiums and costs of exchange payable in connection with
         such purchase, falls short of the full amount of United States Dollars
         owed to the Lender, then the Borrower shall continue to owe the Lender
         the amount of such shortfall (regardless of any judgment for any other
         amounts due under this Agreement). To the extent permitted by
         applicable law, this indemnity constitutes a separate and independent
         obligation from the other obligations in this Agreement, will be
         enforceable as a separate and independent cause of action, will apply
         notwithstanding any indulgence granted by the Lender and will not be
         affected by

                                       12

<PAGE>

         judgment being obtained or claim or proof being made for any other sums
         payable in respect of this Agreement together with interest (at the
         Default Interest Rate) in respect of which payment is due.

                          SECTION 3. YIELD PROTECTION

3.1      Taxes
         -----

         3.1.1 Gross-Up Requirements. Provided that the Lender has delivered the
               ---------------------
         forms specified in Section 3.1.4, all sums payable by the Borrower and
         the Guarantor hereunder or pursuant to the Guaranty, whether of
         principal, interest, fees, expenses or otherwise, shall be paid in
         full, free of any Transaction Taxes, all of which shall be paid
         directly to the appropriate taxing authority by the Borrower or the
         Guarantor, as the case may be, for the account of the Lender, and
         subject to Section 3.2.1(d) the Borrower or the Guarantor, as the case
         may be, shall pay such additional amount to or for the benefit of the
         Lender as may be necessary in order that the actual amount received
         after payment of Transaction Taxes (and after payment of any additional
         Transaction Taxes or other charges due as a consequence of the payment
         of such additional amount) shall equal the amount that would have been
         received if such payment of Transaction Taxes were not required.
         Notwithstanding the foregoing, if the Lender is exempt from or subject
         to a reduced rate of withholding tax and becomes subject to Taxes
         because of its failure to deliver the forms specified in Section 3.1.4,
         the Borrower shall take such steps as the Lender may reasonably request
         to assist the Lender to recover such Taxes.

         3.1.2 Payment of Legally Required Taxes. The Borrower and the Guarantor
               ---------------------------------
         shall pay directly to the appropriate taxing authority any and all
         present and future Taxes imposed by law or by any taxing authority on
         or with regard to any aspect of the transaction contemplated by this
         Agreement or the execution and delivery of this Agreement or other
         documentation hereunder. Subject to Section 3.2.1(d), this obligation
         shall not extend to any Taxes imposed on or by reference to the net
         income of the Lender by any taxing jurisdiction. Regardless of who is
         deemed obligated for any Taxes referred to in the first sentence of
         this Section 3.1.2 by a taxing authority, the Borrower and the
         Guarantor shall have the right to actively participate in and control
         the challenge to any such Taxes, subject to the Borrower and the
         Guarantor providing prior written confirmation of their joint and
         several indemnification obligation as provided herein to the Lender.
         The Borrower and the Guarantor shall indemnify and hold the Lender
         harmless from any liability with respect to the delay or failure by the
         Borrower or the Guarantor to pay any such Taxes for which they are
         responsible.

         3.1.3 Tax Receipts. If the Borrower or the Guarantor shall pay any
               ------------
         Transaction Taxes, the Borrower or the Guarantor, as the case may be,
         shall promptly forward to the Lender official receipts or other
         evidence reasonably acceptable to the Lender establishing payment of
         such amounts.

         3.1.4 United States Tax Forms. At or prior to the First Drawdown (and
               -----------------------
         from time to time thereafter if requested in writing by the Borrower or
         the Guarantor to do so, but only

                                       13

<PAGE>

         so long as the Lender remains lawfully able to do so) the Lender shall
         provide the Borrower and the Guarantor with Internal Revenue Service
         form 1001 or 4224, as appropriate, or any successor form prescribed by
         the Internal Revenue Service, certifying that the Lender is entitled to
         benefits under an income tax treaty to which the United States is a
         party which exempts the Lender from United States withholding tax or
         reduces the rate of withholding tax on the payment of interest for the
         account of the Lender or certifying that the income receivable pursuant
         to this Agreement is effectively connected with the conduct of a trade
         or business in the United States.

3.2      Increased Costs
         ---------------

         3.2.1 Indemnity. If, by reason of (a) any change in law, rule or
               ---------
         regulation or in its interpretation or administration and/or (b)
         compliance with any future request from or requirement of any central
         bank or other fiscal, monetary or other authority whether or not having
         the force of law (including, without limitation, a request or
         requirement which affects the manner in which the Lender is required to
         maintain capital resources and, if not having the force of law, only if
         compliance is customary) with regard to the Lender's obligations
         hereunder and to amounts owing to it hereunder:

         (a)  the Lender incurs a cost as a result of the Lender's having
              entered into and/or performing its obligations under this
              Agreement;

         (b)  the Lender incurs a cost by reason of an increase in the amount of
              capital required or expected to be maintained by the Lender and
              the Lender has reasonably determined that a portion of such
              increase is allocable to the Loan or the Commitment;

         (c)  there is any increase in the cost to the Lender of funding or
              maintaining all or any part of the Loan made or to be made by the
              Lender hereunder (excluding amounts participated out); or

         (d)  the Lender becomes liable to make any payment on account of Taxes
              or otherwise (not being a Tax on the net income of the Lender (i)
              imposed by the jurisdiction in which it is incorporated or in
              which its lending office is located or (ii) imposed by a taxing
              authority of France as a direct result of the Lender's business
              activities in France other than the making of the Loan or the
              receipt of payments with respect thereto) on or calculated by
              reference to the amount of the Loan made by the Lender hereunder
              and/or to any sum received or receivable by it hereunder (other
              than as a result of the Lender's failure to deliver the forms
              specified in Section 3.1.4);

         then the Borrower shall, from time to time on demand of the Lender,
         promptly pay to the Lender amounts sufficient to indemnify the Lender
         against, as the case may be, (1) any such cost, (2) any such allocable
         cost, as certified by the Lender in reasonable detail (which shall be
         binding absent manifest error), (3) such increased cost (or such
         proportion of such increased cost as is, in the reasonable opinion of
         the Lender, attributable to its

                                       14

<PAGE>

         funding or maintaining the Loan hereunder) and/or (4) such liability,
         as the case may be, (collectively, "Increased Costs") provided, however
         that Borrower shall not be obligated to indemnify the Lender for any
         Increased Costs to the extent the Lender has actual knowledge of such
         Increased Costs and fails to give the Borrower notice of such amount
         within 90 days of the date the Lender acquires such actual knowledge.

         3.2.2 Payment of Increased Costs. The Borrower shall pay to the Lender,
               --------------------------
         upon written demand therefor, such additional amounts (in the form of
         an increased rate of, or a different method of calculating, interest or
         otherwise as the Lender shall reasonably determine after consultation
         with the Borrower) as shall be required to compensate the Lender for
         such Increased Costs or reductions in amounts received or receivable
         hereunder (a written notice as to the additional amounts owed to the
         Lender, showing the basis for the calculation thereof, submitted to the
         Borrower by the Lender in good faith shall be conclusive absent
         manifest error) provided, however that Borrower shall not be obligated
         to indemnify the Lender for any Increased Costs to the extent the
         Lender has actual knowledge of such Increased Costs and fails to give
         the Borrower notice of such amount within 120 days of the date the
         Lender acquires such actual knowledge.

3.3      Illegality of Maintaining the Loan.
         ----------------------------------

         If, on or after the date of this Agreement, the adoption of any
         applicable law, rule or regulation, or any change in any applicable
         law, rule or regulation, or any change in the interpretation or
         administration thereof by any governmental authority, central bank or
         comparable agency charged with the interpretation or administration
         thereof, or compliance by the Lender with any request or directive of
         any such authority, central bank or comparable agency shall make it
         unlawful or impossible to maintain the Loan, then the Lender shall be
         entitled to require the Borrower to prepay the Loan upon at least ten
         (10) days notice to the Borrower (or such shorter period as may be
         required in order to allow the Lender to comply with relevant law). The
         Lender shall promptly notify the Borrower of any change in the law of
         which it becomes aware that would result in the Loan becoming illegal
         and, if requested in writing, shall deliver to the Borrower an opinion
         of legal counsel supporting such determination not later than thirty
         (30) days after the date of prepayment. The Borrower shall pay for any
         and all legal fees and expenses incurred by the Lender in obtaining
         such opinion pursuant to this Section.

3.4      Cost Minimization; Adversity Prepayment
         ---------------------------------------

         If, at any time, the Borrower is required to make a payment to the
         Lender or any tax authority pursuant to the provisions of any of
         Sections 3.1, 3.2 or 3.3 and without in any way limiting, reducing or
         otherwise qualifying the Borrower's obligations under such Sections and
         provided that the Lender, in its sole discretion, is satisfied that it
         will not suffer any material economic, legal, regulatory or other
         disadvantage in taking such action, the Lender agrees that it will act
         in good faith to minimize the amount of such payment, provided, that if
         the requirement for such payment is not eliminated, the Borrower shall
         have the right to prepay the Loan in accordance with Section 2.5.1,

                                       15

<PAGE>

         provided, further, that in case of any prepayment pursuant to this
         Section, the Borrower shall not be entitled to the Equity Repayment
         Option.

3.5      Funding Losses
         --------------

         In the event that a Drawdown does not occur as a result of a failure to
         satisfy the conditions precedent to Drawdown or the Borrower declines
         to borrow after delivery of a Drawdown Certificate, the Borrower shall
         reimburse the Lender on demand for all Funding Losses incurred by the
         Lender. The Lender shall act in good faith to minimize its Funding
         Losses and shall certify the amount and a reasonable description
         thereof to the Borrower in the event that Funding Losses are incurred
         for which reimbursement from the Borrower is due hereunder, which
         certificate shall be binding upon the Borrower in the absence of
         manifest error.

                     SECTION 4. FEES, CHARGES AND INDEMNITY

4.1      Fees and Expenses
         -----------------

         The parties agree that the Lender and any of its affiliates, as the
         case may be, will be paid the fees and expenses specified in, and under
         the terms and conditions of, this Agreement, the Note, the Guaranty or
         any other agreement pursuant or relating thereto, and that the
         Guarantor shall pay all fees and expenses of the professional advisors
         to the Lender and any of its affiliates as provided for in such
         agreements.

4.2      Lender's Costs and Expenses
         ---------------------------

         The Borrower shall reimburse the Lender on demand for all costs and
         expenses, including without limitation, fees and expenses of counsel
         and fees and expenses of other professional advisers and all other
         out-of-pocket costs and expenses of the Lender, incurred (i) including
         the reasonable fees and expenses of counsel in connection with the
         preparation, execution and delivery of this Agreement and the other
         agreements entered into in connection herewith any future amendment,
         modification or supplement hereto, (ii) in the enforcement of this
         Agreement, the Note or the Guaranty, (iii) the collection of any of the
         Obligations, (iv) the workout or restructuring thereof and (v) the
         administration of the Loan after the occurrence of an Event of Default,
         whether or not the Lender gives notice of such Event of Default or
         demands acceleration of the Loan or takes other action to enforce this
         Agreement, the Note or the Guaranty.

4.3      Indemnification
         ---------------

         The Borrower agrees to indemnify the Lender and its Subsidiaries and
         their respective directors, officers, employees, advisors,
         representatives, agents and controlling persons (collectively the
         "Indemnified Parties") from and against any and all losses, claims,
         damages, expenses and liabilities, joint or several, to which any of
         the Indemnified Parties may become subject related to, arising out of,
         or in connection with this Agreement, the Note or the Guaranty or any
         of the transactions contemplated herein or therein or any use of the
         proceeds of the Loan by the Borrower; provided that none of the

                                       16

<PAGE>

         Indemnified Parties shall be entitled to any indemnification for any of
         the foregoing that are finally judicially determined to have resulted
         primarily from an Indemnified Party's gross negligence or willful
         misconduct.

         The Borrower further agrees to reimburse each Indemnified Party
         immediately upon request for all expenses (including reasonable counsel
         fees and expenses) as they are incurred in connection with the
         investigation of, preparation for, defense of, or providing evidence
         in, any commenced or threatened action, claim, proceeding or
         investigation (including, without limitation, usual and customary per
         diem compensation for any Indemnified Party's involvement in discovery
         proceedings or testimony), relating to or arising out of any matter
         referred to in this Agreement, including, without limitation, the
         performance by the Indemnified Parties of the services contemplated in
         this Agreement, the Note or the Guaranty, whether or not such
         Indemnified Party is a party and whether or not such action, claim,
         proceeding or investigation is initiated or brought by or on behalf of
         the Borrower or any of its affiliates, except that the Indemnified
         Parties shall not be entitled to any reimbursement for any expenses
         that result from an Indemnified Party's gross negligence or willful
         misconduct.

         If and to the extent that the indemnity or reimbursement obligations of
         the Borrower under this Section may be unenforceable for any reason,
         the Borrower agrees to make the maximum contribution to the payment and
         satisfaction of each of such indemnity or reimbursement obligations
         which is permissible under applicable law.

     SECTION 5. REPRESENTATIONS AND WARRANTIES WITH RESPECT TO THE BORROWER

         The Borrower and the Guarantor each hereby represent and warrant to the
Lender as of the Effective Date with respect to the Borrower as follows:

5.1      Incorporation and Qualification
         -------------------------------

         The Borrower has been duly created as a Societe par Actions Simplifiee
         in accordance with the laws of France, is validly existing under those
         laws and has power and authority to carry on its business as it is now
         being conducted.

5.2      Power and Authority
         -------------------

         The Borrower has power to enter into and observe its obligations under
         this Agreement and the Note. The Borrower has in full force and effect
         the authorizations necessary to enter into this Agreement and the Note,
         observe obligations under them and allow them to be enforced.

5.3      Authorization of Borrowing
         --------------------------

         This Agreement and the Note and the transactions under them do not
         contravene the Borrower's constituent documents or any law, regulation
         or official directive or any of its

                                       17

<PAGE>

         obligations or undertakings by which it is bound or cause a limitation
         on its powers or the powers of its directors to be exceeded.

5.4      Agreement Binding
         -----------------

         This Agreement constitutes, and the Note when executed and delivered
         pursuant hereto will constitute, the legal, valid and binding
         obligations of the Borrower enforceable in accordance with their
         respective terms, except as enforcement may be limited by bankruptcy,
         insolvency, or other similar laws affecting the enforcement of
         creditors' rights in general and by general principles of equity. The
         execution, delivery and performance of this Agreement and the Note and
         the monetary payment of all amounts due on the dates and in the
         currency provided for herein and therein (a) will not violate any
         provision of law or other governmental directive having the force of
         law, (b) will not conflict with the By-Laws or other governing
         documents of the Borrower, (c) will not contravene any material
         governmental guideline or policy statement applicable to the Borrower,
         (d) will not conflict with the By-laws (Statuts) or other governing
         documents of the Borrower, (e) will not conflict with or result in the
         breach of any provision of any material agreement under which the
         Borrower has incurred Indebtedness and will not conflict with or result
         in the breach of any provision of any other material agreement to which
         the Borrower is a party or by which it or any of its properties or
         assets is bound, (f) will not constitute a default or an event that
         with the giving of notice or the passing of time, or both, would
         constitute a default under any such agreement, and (g) will not result
         in the creation or imposition of any lien, charge or encumbrance on any
         of the assets or the property of the Borrower.

5.5      Registrations and Approvals
         ---------------------------

         All governmental approvals, authorizations, consents, licenses,
         opinions, filings or registrations with any government agency in France
         required prior to the execution and delivery of this Agreement and the
         Note and the consummation of the transactions contemplated hereby and
         thereby have been obtained and are in full force and effect. All
         governmental approvals, authorizations, consents, licenses, opinions,
         filings or registrations with any government agency in France necessary
         for the performance by the Borrower of its obligations under this
         Agreement (including, without limitation, foreign exchange permits, if
         any, regarding US Dollar payments due or payable hereunder) shall have
         been obtained and shall be in full force and effect prior to the First
         Drawdown Date.

5.6      Litigation
         -----------

         There are no arbitration or litigation proceedings pending or
         threatened against the Borrower and no proceedings before any court or
         government agency pending or threatened against the Borrower or
         relating to this Agreement or the Note or any of the transactions
         contemplated hereby or thereby which if adversely determined could
         singly or in the aggregate have a Material Adverse Effect.

5.7      Subsidiaries
         ------------

                                       18

<PAGE>

         The Borrower has no Subsidiaries other than Steelcase Strafor S.A., (an
         ownership interest in which will be acquired contemporaneously with the
         First Drawdown Date) and its Subsidiaries.

5.8      Title to Properties and Assets
         ------------------------------

         The Borrower has good and marketable title (whether ownership or
         leasehold) to all the material properties and assets used in its
         business.

5.9      Compliance with Law
         -------------------

         The Borrower is conducting its business and operations in compliance
         with all material applicable laws, rules and regulations and directives
         of governmental authorities having the force of law applicable to it or
         its properties and assets, including but not limited to employment,
         employee benefit, occupational health and safety, superannuation and
         environmental laws, rules and regulations and is in compliance with all
         material applicable government guidelines and policy statements. The
         Borrower has filed all tax returns other than those for which the
         deadline for filing, as may have been extended, has not yet passed, and
         paid all Taxes due in respect of the ownership of its properties and
         assets or the conduct of its business and operations, except to the
         extent that the payment of such Taxes is being contested in good faith
         and by appropriate proceedings, adequate reserves having been provided
         for the payment thereof in accordance with generally accepted
         accounting principles in France, consistently applied. The Borrower is
         not currently subject to audit by any governmental tax authority, which
         could reasonably be expected to result in an assessment for unpaid
         Taxes which would, singly or in the aggregate, have a Material Adverse
         Effect.

5.10     Other Obligations
         -----------------

         The Borrower is not in material default under any agreement relating
         to, or instrument evidencing, Indebtedness to which it is a party or by
         which it is bound.

5.11     Full Disclosure
         ---------------

         The information, reports, exhibits and schedules furnished in writing
         to, by or on behalf of the Borrower to the Lender in connection with
         the negotiation, preparation or delivery of this Agreement and the
         other loan documents referred to or included herein or therein or
         delivered pursuant hereto or thereto, when taken as a whole, do not
         contain any untrue statement of material fact or omit to state any
         material fact necessary to make the statements herein or therein, in
         light of the circumstances under which they were made, not misleading.

5.12     No Material Adverse Effect
         --------------------------

         Since the date of the information, reports, exhibits and schedules
         referred to in Section 5.11, no event has occurred, which could be
         expected to have a Material Adverse Effect.

                                       19

<PAGE>

     SECTION 6. REPRESENTATIONS AND WARRANTIES WITH RESPECT TO THE GUARANTOR

         The Guarantor hereby represents and warrants to the Lender as of the
Effective Date with respect to the Guarantor as follows:

6.1      Incorporation and Qualification
         -------------------------------

         The Guarantor is a company duly organized, validly existing and in good
         standing under the laws of the State of Michigan. The Guarantor is
         qualified or registered to do business in every jurisdiction where the
         failure to be so qualified or registered, singly or in the aggregate,
         could reasonably be expected to have a Material Adverse Effect.

6.2      Power and Authority
         -------------------

         The Guarantor has full legal right, power and authority, including all
         approvals, consents, licenses, permits, opinions, filings,
         registrations and other authorizations of each government agency
         (collectively, "Authorizations") necessary or advisable to carry on its
         business as it is presently conducted and to own its properties and
         assets, except where the failure to possess such Authorizations would
         not have a Material Adverse Effect. All Authorizations necessary for
         the performance by the Guarantor of its obligations under this
         Agreement shall have been obtained and shall be in full force and
         effect prior to the First Drawdown Date. The Guarantor has full legal
         right, power and authority to execute and deliver this Agreement and
         the Guaranty, and to perform its obligations hereunder and under the
         Guaranty.

6.3      Authorization of Borrowing
         --------------------------

         The Guarantor has taken all necessary and appropriate action to
         authorize the execution and delivery of this Agreement and the Guaranty
         and to authorize the performance and observance of the terms hereof and
         thereof.

6.4      Agreement Binding
         -----------------

         This Agreement constitutes, and the Guaranty when executed and
         delivered pursuant hereto will constitute, the legal, valid and binding
         obligations of the Guarantor enforceable in accordance with their
         respective terms, except as enforcement may be limited by bankruptcy,
         insolvency, or other similar laws affecting the enforcement of
         creditors' rights in general and by general principles of equity. The
         execution, delivery and performance of this Agreement and the Guaranty
         and the monetary payment of all amounts due on the dates and in the
         currency provided for herein and therein (a) will not violate any
         provision of law or other governmental directive having the force of
         law, (b) will not conflict with the Certificate of Incorporation or
         By-laws or other governing documents of the Guarantor, (c) will not
         conflict with or result in the breach of any provision of any material
         agreement under which the Guarantor has incurred Indebtedness and will
         not conflict with or result in the breach of any provision of any other
         material agreement to which the Guarantor is a party or by which it or
         any of its properties or

                                       20

<PAGE>

         assets is bound, (d) will not constitute a default or an event that
         with the giving of notice or the passing of time, or both, would
         constitute a default under any such agreement, and (e) will not result
         in the creation or imposition of any lien, charge or encumbrance on any
         of the assets or the property of the Guarantor.

6.5      Litigation
         -----------

         Except as described in Schedule 6.5 hereto, there are no arbitration,
                                ------------
         litigation, governmental, administrative or other proceedings pending
         or threatened against the Guarantor or relating to this Agreement and
         the Guaranty or any of the transactions contemplated hereby or thereby
         which, if adversely determined, could singly or in the aggregate have a
         Material Adverse Effect.

6.6      Financial Statements
         --------------------

         The Guarantor has heretofore delivered to the Lender (i) the audited
         consolidated financial statements of the Guarantor for the fiscal year
         ended February 27, 1998 (the "Audited Financial Statements"), the
         unaudited consolidated financial statements of the Guarantor for the
         fiscal year ended February 26, 1999 (the "Unaudited Financial
         Statements"), and (iii) the consolidated monthly management reports of
         the Guarantor for each of January and February 1999 (the "Monthly
         Management Reports"). The Audited Financial Statements are complete and
         correct and fairly present the financial condition and the results of
         operations of the Guarantor on the date thereof and for the period then
         ended in accordance with GAAP, subject to normal year-end adjustments
         in the case of the Unaudited Financial Statements. There are no
         material liabilities, direct or indirect, fixed or contingent, of the
         Guarantor as of the date of this Agreement that are not reflected or
         reserved against in the Audited Financial Statements, the Unaudited
         Financial Statements or in the notes thereto.

6.7      Title to Properties and Assets
         ------------------------------

         The Guarantor has good and marketable title (whether ownership or
         leasehold) to all the material properties and assets used in its
         business, ownership of which is reflected in its most recent balance
         sheet contained in the Audited Financial Statements and the Unaudited
         Financial Statements referred to in Section 6.6, except for properties
         or assets that have been disposed of in the ordinary course of
         business.

6.8      Compliance with Law
         -------------------

         The Guarantor and each of its Subsidiaries is and are conducting their
         respective businesses and operations in compliance with all applicable
         laws, rules and regulations and directives of governmental authorities
         having the force of law applicable to such Person or its properties and
         assets, including but not limited to employment, employee benefit,
         occupational health and safety, superannuation and environmental laws,
         rules and regulations and are in compliance with all applicable
         government guidelines and policy statements. The Guarantor and each of
         its Subsidiaries have filed all tax returns other

                                       21

<PAGE>

         than those for which the deadline for filing, as may have been
         extended, has not yet passed, and paid all Taxes due in respect of the
         ownership of their respective properties and assets or the conduct of
         their operations except to the extent that the payment of such Taxes is
         being contested in good faith and by appropriate proceedings, adequate
         reserves having been provided for the payment thereof in accordance
         with GAAP, consistently applied. Neither the Guarantor nor any of its
         Subsidiaries is currently subject to audit by any governmental tax
         authority, which could reasonably be expected to result in an
         assessment for unpaid Taxes which could, singly or in the aggregate,
         have a Material Adverse Effect.

6.9      Other Obligations
         -----------------

         Neither the Guarantor nor any of its Subsidiaries is in material
         default under any agreement relating to, or instrument evidencing,
         Indebtedness to which it is a party or by which it is bound.

6.10     Capital Structure
         -----------------

         The Guarantor is the owner, directly or indirectly, of 100% of the
         issued and outstanding equity of the Borrower.

6.11     Full Disclosure
         ---------------

         (a) The annual report of the Guarantor for the year ended February 27,
         1998, (b) the financial statements delivered to the Lender in
         accordance with Section 6.6, and (c) all filings of the Guarantor with
         the Securities and Exchange Commission preceding the date hereof, do
         not contain any untrue statement of material fact or omit to state any
         material fact necessary to make the statements herein or therein, in
         light of the circumstances under which they were made, not misleading.

6.12     No Material Adverse Effect
         --------------------------

         Since the date of the most recent financial statements or Monthly
         Management Reports referred to in Section 6.6, no event has occurred,
         which could reasonably be expected to have a Material Adverse Effect.

6.13     Year 2000 Issue.
         ---------------

         The Guarantor and its Subsidiaries have reviewed the effect of the Year
         2000 Issue on the computer software, hardware and firmware systems and
         equipment containing embedded microchips owned or operated by or for
         the Guarantor and its Subsidiaries or used or relied upon in the
         conduct of their business (including systems and equipment supplied by
         others or with which such computer systems of the Guarantor and its
         Subsidiaries interface). The costs to the Guarantor and its
         Subsidiaries of any reprogramming required as a result of the Year 2000
         Issue to permit the proper functioning of such systems and equipment
         and the proper processing of data, and the testing of such
         reprogramming, and of the reasonably foreseeable consequences of the
         Year 2000 Issue to the Guarantor or

                                       22

<PAGE>

         any of its Subsidiaries (including reprogramming errors and the failure
         of systems or equipment supplied by others) are not reasonably expected
         to result in an Event of Default or to have a Material Adverse Effect.

6.14     Employee Benefit Plans.
         ----------------------

         The Guarantor and each of its ERISA Affiliates is in compliance in all
         material respect with the applicable provisions of ERISA and the
         regulations and published interpretations thereunder. No Reportable
         Event has occurred as to which the Guarantor or any ERISA Affiliate was
         required to file a report with the PBGC, and the present value of all
         benefit liabilities under each Plan (based on those assumptions used to
         fund such Plan) did not, as of the last annual valuation date
         applicable thereto, exceed by a material amount the value of the assets
         of such Plan. Neither the Guarantor nor any ERISA Affiliate has
         incurred any Withdrawal Liability that could result in a Material
         Adverse Effect. Neither the Guarantor nor any ERISA Affiliate has
         received any notification that any Multiemployer Plan is in
         reorganization or has been terminated within the meaning of Title IV of
         ERISA, and no Multiemployer Plan is reasonably expected to be in
         reorganization or to be terminated where such reorganization has
         resulted or could reasonably be expected to result, through increases
         in the contributions required to be made to such Plan, in a Material
         Adverse Effect.

              SECTION 7. AFFIRMATIVE COVENANTS OF THE BORROWER

In addition to the other undertakings herein contained, the Borrower hereby
covenants to the Lender that during the term of this Agreement and until all of
the Obligations are paid in full, the Borrower shall perform the following
obligations:

7.1      Financial Statements
         --------------------

         7.1.1  Delivery of Statutory Accounts. As soon as available but not
                ------------------------------
         later than 120 days after the end of each of its fiscal years, the
         Borrower shall deliver to the Lender a copy of its statutory accounts,
         as at and for the accounting period then ended (prepared in accordance
         with the requirements for such accounts under French law).

         7.1.2  Delivery of Quarterly GAAP Financial Statements. Within 120 days
                -----------------------------------------------
         after the end of each fiscal quarter that is not a fiscal year end, the
         Borrower shall deliver to the Lender a copy of unaudited quarterly
         financial statements for such quarter which shall be based on the
         Steelcase Inc. consolidated unaudited quarterly financial statements
         prepared in accordance with GAAP, appropriately adjusted to reflect the
         operations of the Borrower.

         7.1.3  Compliance Certificate. At the time the statutory accounts are
                ----------------------
         delivered under Section 7.1.1, the Borrower shall deliver to the Lender
         a Compliance Certificate substantially in the form of Exhibit F-1
         hereto, signed by an Authorized Representative of the Borrower
         certifying that the Borrower was during the prior fiscal period in
         compliance with all provisions hereof applicable to the Borrower and
         that no Event of Default or event that with passage of time or notice
         or both would constitute an Event of Default occurred

                                       23

<PAGE>

         during such period and is not continuing on the date of such
         certificate or if any Event of Default or such other event occurred or
         is continuing, a statement to that effect and a statement of the
         actions taken and proposed to be taken with respect thereto.

7.2      Other Reporting Requirements. The Borrower shall furnish the Lender:
         ----------------------------

         7.2.1  as soon as possible and in any event within five (5) days after
         the occurrence of each Event of Default set forth in Section 12 (other
         than Section 12.1.1) and each event which, with the giving of notice or
         lapse of time, or both, would constitute such an Event of Default, a
         statement of the chief financial officer of the Borrower setting forth
         details of such Event of Default or event and the action which the
         Borrower has taken and proposes to take with respect thereto;

         7.2.2  promptly after the sending or filing thereof, copies of any
         other documents or reports relating to the conduct of its business and
         the results of its operations which are distributed to other creditors
         of the Borrower or which they shall reasonably request from time to
         time;

         7.2.3  promptly after (a) the occurrence thereof, notice of the
         institution of or any material adverse development in any material
         action, suit or proceeding or any governmental investigation or any
         arbitration, before any court or arbitrator or any governmental or
         administrative body, agency or official, against the Borrower or any of
         its material property, or (b) actual knowledge thereof, notice of the
         threat of any such action, suit, proceeding, investigation or
         arbitration; and

         7.2.4  any other documents or reports relating to the conduct of the
         Borrower's business and the results of its operations which the Lender
         shall reasonably request from time to time.

7.3      Taxes
         -----

         The Borrower shall, and shall cause each of its Subsidiaries to, pay
         and discharge all Taxes and other governmental charges upon it or
         against any of its properties or assets prior to the date after which
         penalties attach for failure to pay, except to the extent that the
         Borrower or such Subsidiary shall be contesting in good faith by
         appropriate proceedings its obligation to pay such Taxes or charges,
         adequate reserves having been set aside for the payment thereof in
         accordance with customary practice in France. The Borrower shall, and
         shall cause each of its Subsidiaries to, make timely filings of all
         material tax returns and governmental reports required to be filed or
         submitted under any applicable laws or regulations. The Borrower shall
         give written notice to the Lender in accordance with Section 13.7
         hereof within five Banking Days of any (i) tax audit or (ii) notice of
         deficiency with respect to any French tax payable that may concern the
         Loan.

7.4      Maintenance and Continuity of Business
         --------------------------------------

                                       24

<PAGE>

         The Borrower shall, and shall cause each of its Subsidiaries to,
         maintain its valid existence under, and in compliance with, all
         applicable laws, rules and regulations and shall maintain all necessary
         licenses and the present character of its business, except where such
         noncompliance or failure to maintain licenses or the present character
         of business could not have a Material Adverse Effect. The Borrower
         shall, and shall cause its Subsidiaries to, conduct its business in
         compliance with all applicable laws, rules and regulations binding on
         it or any of its operations or properties, including but not limited to
         employment, employee benefit, occupational health and safety,
         superannuation and environmental laws, rules and regulations, except
         where such noncompliance could not have a Material Adverse Effect.

7.5      Continuing Governmental Approvals
         ---------------------------------

         The Borrower agrees to take all measures which are necessary to
         continue in full force and effect all governmental approvals, filings
         or registrations, if any, obtained or made in connection with this
         Agreement and the Note. The Borrower further agrees to take all
         necessary or advisable measures to obtain any new or additional
         governmental approvals as become necessary or advisable for the
         performance of all of the terms and conditions of this Agreement and
         the Note.

7.6      Further Documents
         -----------------

         The Borrower shall execute all such other documents and instruments and
         perform all such other acts as the Lender may reasonably require to
         carry out the transactions contemplated herein or in the documents
         required to be delivered hereunder.

7.7      Inspection
         ----------

         The Borrower shall from time to time upon receipt of at least five (5)
         Banking Days advance written notice, with reasonable promptness, for
         purposes pertinent to this Agreement or to a credit decision relating
         to this Agreement, permit the Lender or any agents or representatives
         thereof, at their own expense, to visit the properties of the Borrower
         and its Subsidiaries during normal business hours and to discuss the
         affairs, finances and accounts of the Borrower with any of its
         appropriate officials. Any information obtained by the Lender shall be
         kept confidential as required by Section 13.9 hereof.

7.8      Payment of Obligations
         ----------------------

         The Borrower shall generally pay and discharge all its monetary
         obligations of whatever nature and kind as and when due in accordance
         with their terms, where the failure to pay any one or more such
         obligations individually or in the aggregate would have a Material
         Adverse Effect, unless such obligations are being contested in good
         faith in appropriate legal proceedings.

7.9      Pari Passu Ranking.
         ------------------

                                       25

<PAGE>

     The Borrower covenants that the Obligations, including the Note, does and
     will rank at all times during the term of the Loan as direct, senior
     obligations of the Borrower, at least pari passu with all of the Borrower's
     other present and future senior Indebtedness.

          SECTION 8. AFFIRMATIVE COVENANTS OF THE GUARANTOR

     For so long as the Guaranty shall remain in effect, the Guarantor shall
comply with the covenants set forth in this Section 8.

8.1  Financial Statements; Other Reports
     -----------------------------------

     8.1.1 Delivery of Financial Statements. As soon as available (a) but not
           --------------------------------
     later than 120 days after the end of each of the Guarantor's fiscal years,
     the Guarantor shall deliver to the Lender a copy of the Guarantor's audited
     financial statements, as at and for the fiscal year then ended (prepared in
     accordance with the requirements of GAAP) and (b) no later than 60 days
     after the end of each of the first three quarters of the fiscal year of the
     Guarantor, the Guarantor shall deliver a copy of the Guarantor's unaudited
     quarterly financial statements for the quarter then ended to the Lender.

     8.1.2 Compliance Certificate. At the time the financial statements are
           ----------------------
     delivered under Section 8.1.1, the Guarantor shall deliver to the Lender a
     Compliance Certificate substantially in the form of Exhibit F-2 hereto,
     signed by an Authorized Representative of the Guarantor certifying that the
     Guarantor and the Borrower were during the prior period in compliance with
     all provisions hereof applicable and that no Event of Default or event that
     with passage of time or notice or both would constitute an Event of Default
     occurred during such period and is not continuing on the date of such
     certificate or if any Event of Default or such other event occurred or is
     continuing, a statement to that effect and a statement of the actions taken
     and proposed to be taken with respect thereto. The compliance certificate
     shall be accompanied by calculations in reasonable detail showing
     compliance (or non-compliance) with the covenant in Section 10.2, during
     such period of the term of the Loan as such covenants remain in effect.

8.2  Taxes
     -----

     The Guarantor shall pay and discharge all Taxes and governmental charges
     upon it or against any of its properties or assets prior to the date after
     which penalties attach for failure to pay, except to the extent that the
     Guarantor shall be contesting in good faith by appropriate proceedings its
     obligations to pay such Taxes or charges, adequate reserves having been set
     aside for the payment thereof in accordance with GAAP. The Guarantor shall
     further make timely filings of all material tax returns and governmental
     reports required to be filed or submitted under any applicable laws or
     regulations.

8.3  Maintenance and Continuity of Business
     --------------------------------------

     The Guarantor shall maintain its existence in good standing under, and in
     compliance with, all applicable laws, rules and regulations and shall
     maintain all necessary licenses and the present character of its business,
     except where such noncompliance or failure to

                                       26

<PAGE>

     maintain licenses or the present character of business would not have a
     Material Adverse Effect. The Guarantor shall conduct its business in
     compliance with all applicable laws, rules and regulations binding on it or
     any of its operations or properties, including but not limited to
     employment, employee benefit, occupational health and safety,
     superannuation and environmental laws, rules and regulations, except where
     such noncompliance could not have a Material Adverse Effect.

8.4  Continuing Governmental Approvals
     ---------------------------------

     The Guarantor shall take all measures which are necessary to continue in
     full force and effect all governmental approvals, filings or registrations,
     if any, obtained or made in connection with its businesses and operations,
     except where the failure to do so could not have a Material Adverse Effect.

8.5  Maintenance of Properties
     -------------------------

     The Guarantor shall cause all of its properties used or useful in the
     conduct of its business or the business of any of its Subsidiaries to be
     maintained and kept in good condition, repair and working order and
     supplied with all necessary equipment and will cause to be made all
     necessary repairs, renewals, replacements, betterments and improvements
     thereof, all as in the judgment of the Guarantor may be necessary so that
     the business carried on in connection therewith may be properly and
     advantageously conducted at all times; provided, however, that nothing in
     this Section shall prevent the Guarantor from discontinuing the operation
     or maintenance of any such properties if such discontinuance is, in the
     judgment of the Guarantor, desirable in the conduct of its business and not
     disadvantageous in any material respect to the Lender.

8.6  Year 2000 Issue.
     ---------------

     The Guarantor shall take, and shall cause each of its Subsidiaries to take,
     all necessary action to complete in all material respects, the
     reprogramming of computer software, hardware and firmware systems and
     equipment containing embedded microchips owned or operated by or for the
     Guarantor and its Subsidiaries or used or relied upon in the conduct of
     their business (including systems and equipment supplied by others or with
     which such systems of the Guarantor or any of its Subsidiaries interface)
     required as a result of the Year 2000 Issue to permit the proper
     functioning of such computer systems and other equipment and the testing of
     such systems and equipment, as so reprogrammed, except where the failure to
     take such action could not reasonably be expected to have a Material
     Adverse Effect. At the request of the Lender, the Guarantor shall provide,
     and shall cause each of its Subsidiaries to provide, to the Lender
     reasonable assurance of its compliance with this Section.

8.7  ERISA.
     -----

     (a) The Guarantor shall comply in all material respects with the applicable
     provisions of ERISA and (b) furnish the Lender (i) as soon as possible, and
     in any event within 30 days

                                       27

<PAGE>

     after any Authorized Representative of the Guarantor or any ERISA Affiliate
     either knows or has reason to know that any Reportable Event has occurred
     that alone or together with any other Reportable Event could reasonably be
     expected to result in liability of the Guarantor and its ERISA Affiliates
     to the PBGC in an aggregate amount exceeding US$500,000, a statement of an
     Authorized Representative setting forth details as to such Reportable Event
     and the action proposed to be taken with respect thereto, together with a
     copy of the notice, if any, of such Reportable Event given to the PBGC,
     (ii) promptly after receipt thereof, a copy of any notice the Borrower or
     any ERISA Affiliate may receive from the PBGC relating to the intention of
     the PBGC to terminate any Plan or Plans (other than a Plan maintained by an
     ERISA Affiliate which is considered an ERISA Affiliate only pursuant to
     subsection (m) or (o) of Section 412 of the Code) or to appoint a trustee
     to administer any Plan or Plans, (iii) within 30 days after a filing with
     the PBGC pursuant to Section 412(n) of the Code of a notice of failure to
     make a required installment or other payment with respect to a Plan, a
     statement of an Authorized Representative setting forth details as to such
     failure and the action proposed to be taken with respect thereto, together
     with a copy of such notice given to the PBGC and (iv) promptly and in any
     event within 30 days after receipt thereof by the Guarantor or any ERISA
     Affiliate from the sponsor of a Multiemployer Plan, a copy of each notice
     received by the Guarantor or any ERISA Affiliate concerning (A) the
     imposition of Withdrawal Liability by a Multiemployer Plan in an amount
     exceeding US$500,000 or (B) a determination that a Multiemployer Plan is,
     or is expected to be, terminated or in reorganization, in each case within
     the meaning of Title IV of ERISA, an which, in each case, is expected to
     result in an increase in annual contributions of the Guarantor or an ERISA
     Affiliate to such Multiemployer Plan in an amount exceeding US$500,000.

8.8  Post-Closing Deliveries.
     -----------------------

     The Guarantor hereby covenants that not later than ten (10) days after the
     Guarantor's next Board of Directors' meeting (currently scheduled for June
     23, 1999), the Guarantor shall deliver, and cause the Borrower to deliver,
     a certificate of an Authorized Representative of each party certifying that
     the Guarantor's Board of Directors and the Borrower's shareholders,
     respectively, have adopted and approved resolutions substantially in the
     form of Annex A hereto.

          SECTION 9. NEGATIVE COVENANTS OF THE BORROWER

     In addition to the other undertakings in this Agreement the Borrower hereby
covenants to the Lender that during the term of this Agreement and until all of
the Obligations are paid in full, the Borrower shall not permit any of the
following to occur:

9.1  Merger; Sale of Assets
     ----------------------

     The Borrower shall not effect any merger, consolidation or reorganization
     (whether in one transaction or in a series of transactions) with any other
     person unless (i) either the Borrower is the surviving entity or the
     surviving entity, if other than the Borrower, shall have expressly assumed
     in writing all of the obligations of the Borrower under this

                                       28

<PAGE>

       Agreement and (ii) at the time of effecting the merger, consolidation or
       reorganization no Event of Default shall have occurred or be continuing
       or would result therefrom.

9.2    Indebtedness Limitation
       -----------------------

       The Borrower shall not create, incur, assume or suffer to exist any
       Indebtedness other than:

          (i)    Indebtedness under this Agreement;

          (ii)   unsecured Indebtedness resulting from accounts payable and
                 accrued liabilities for goods and services, incurred in the
                 ordinary course of business;

          (iii)  Indebtedness in existence on the date hereof and listed on
                 Schedule 9.2 hereto;
                 ------------
          (iv)   Indebtedness owed to Affiliates of the Borrower; and
          (v)    Indebtedness which does not, without the prior written approval
                 of the Lender (such approval not to be unreasonably withheld)
                 exceed such debt-to-equity ratios as are, from time to time,
                 permitted under applicable French law and thin capitalization
                 rules.

           SECTION 10. NEGATIVE COVENANTS OF THE GUARANTOR

       For so long as the Guaranty shall remain in effect and except to the
extent expressly consented to in writing by the Lender, the Guarantor shall
comply with the negative covenants set forth in this Section 10.

10.1   Negative Pledge
       ---------------

       10.1.1 Liens, Etc. The Guarantor shall not create or suffer to exist, or
              ----------
       permit any of its Subsidiaries to create or suffer to exist, any Lien
       upon or with respect to any of its properties, whether now owned or
       hereafter acquired, or assign, or permit any of its Subsidiaries to
       assign, any right to receive income, in each case to secure or provide
       for the payment of any Indebtedness of any Person, if the aggregate
       amount of the Indebtedness so secured (or for which payment has been
       provided) would at any time exceed an amount equal to 10% of Consolidated
       Net Tangible Assets of the Guarantor, provided, however, that the
       foregoing shall not apply to: (i) Liens for current Taxes not delinquent
       or for Taxes being contested in good faith and by appropriate
       proceedings, adequate reserves having been provided for the payment
       thereof in accordance with GAAP, consistently applied, (ii) Liens arising
       in the ordinary course of business or by operation of law for sums being
       contested in good faith and by appropriate proceedings, adequate reserves
       having been provided for the payment thereof in accordance with GAAP,
       consistently applied, or for sums not due, and in either case not
       involving any deposits or advances for borrowed money or the deferred
       purchase price of property or services, (iii) Liens in connection with
       the acquisition of fixed assets after the date hereof and attaching only
       to the property being acquired, (iv) Liens incurred in the ordinary
       course of business in connection with workers' compensation, unemployment
       insurance or other forms of governmental insurance or benefits, (v)
       mechanics', workers', materialmen's and other like Liens arising in the
       ordinary

                                       29

<PAGE>

       course of business in respect of obligations which are not delinquent or
       which are being contested in good faith and by appropriate proceedings,
       adequate reserves having been provided for the payment thereof in
       accordance with GAAP, consistently applied, (vi) Liens on assets of any
       Subsidiary of the Borrower existing at the time such Person becomes a
       Subsidiary (other than any such Lien created in contemplation of becoming
       a Subsidiary); (vii) any Lien securing Indebtedness that was incurred
       prior to or during construction or improvement of property for the
       purpose of financing all or part of the cost of such construction or
       improvement, provided that the amount of Indebtedness secured by such
       Lien does not exceed 100% of the fair market value of such property after
       giving effect to such construction or improvement; (viii) any Lien
       securing Indebtedness of a Subsidiary owing to the Borrower, (ix) Liens
       resulting from any extension, renewal or replacement (or successive
       extensions, renewals or replacements), in whole or in part, of any
       Indebtedness secured by any Lien referred to in clauses (vi) and (vii)
       above so long as (A) the aggregate principal amount of such Indebtedness
       shall not increase as a result of such extension, renewal or replacement
       and (B) Liens resulting from any such extension, renewal or replacement
       shall cover only such property which secured the Indebtedness that is
       being extended, renewed or replaced, or (x) Liens on accounts receivable
       resulting from the sale of such accounts receivable by the Borrower or a
       Subsidiary of the Borrower, so long as, at any time, the aggregate
       outstanding amount of such cash advanced to the Borrower or such
       Subsidiary, as the case may be, and attributable to the sale of such
       accounts receivable does not exceed: (A) in fiscal year 2000,
       US$200,000,000 or (B) in fiscal years after 2000, such greater amount as
       the Lender and the Guarantor may agree from time to time.

       10.1.2 Mergers, Etc. The Guarantor shall not (i) merge or consolidate
              ------------
       with or into any Person, or permit any of its Subsidiaries to do so, or
       (ii) convey, transfer, lease or otherwise dispose of (whether in one
       transaction or in a series of transactions) all or substantially all of
       its assets (whether now owned or hereafter acquired) to any Person, or
       (iii) together with one or more of its consolidated Subsidiaries, convey,
       transfer, lease or otherwise dispose of (whether in one transaction or in
       a series of transactions) all or substantially all of the assets of the
       Guarantor and its consolidated Subsidiaries (whether now owned or
       hereafter acquired) to any Person; except that any Subsidiary of the
       Guarantor may merge or consolidate with or into, or transfer assets to,
       or acquire assets of, any other Subsidiary of the Guarantor and except
       that any Subsidiary of the Guarantor may merge into or transfer assets to
       the Guarantor and except that the Guarantor may effect any merger,
       consolidation or reorganization (whether in one transaction or in a
       series of transactions) with any other Person if: (A) either the
       Guarantor is the surviving entity or (B) (i) the surviving entity, if
       other than the Guarantor, shall have expressly assumed in writing all of
       the obligations of the Guarantor under this Agreement and the Guaranty,
       pursuant to documentation in form and substance satisfactory to the
       Lender (ii) such surviving entity shall meet or exceed the financial
       covenants set forth in Section 10.2.3 (as conformed to take account of
       the fiscal year of such surviving entity) and (iii) immediately after
       giving effect to such merger, consolidation or reorganization, no Event
       of Default or

                                       30

<PAGE>

         event which, with the giving of notice or lapse of time, or both, would
         constitute an Event of Default, would exist.

10.2     Financial Covenants
         -------------------

         10.2.1 Minimum Net Worth. The Guarantor shall not permit at any time
                -----------------
         Net Worth to be less than the sum of (i) Net Worth as of February 27,
         1998, plus (ii) 25% of Net Income (if a positive number) from February
         27, 1998 to the then most recent August 31 or February 28, plus (iii)
         all Additions to Capital from February 27, 1998 to the then most recent
         August 31 or February 28.

         10.2.2 Maximum Debt Ratio. The Guarantor will not permit at any time
                ------------------
         the ratio of (i) Debt to (ii) EBITDA, for each period consisting of the
         most recently ended four consecutive fiscal quarters of the Borrower,
         to exceed 3.00 to 1.00.

         10.2.3 Minimum Interest Coverage Ratio. The Guarantor shall not permit
                -------------------------------
         at any time the ratio of (a) EBITDA to (B) interest expense of the
         Guarantor and its Subsidiaries, in each case for the four fiscal
         quarters ending on the last day of any fiscal quarter of the Guarantor
         to be less than 5.00 to 1.00.

                  SECTION 11. CONDITIONS PRECEDENT TO DRAWDOWN

         The obligation of the Lender to make available the Loan at each
Drawdown Date is subject to the fulfillment, as determined by the Lender and its
counsel, of the following conditions precedent:

11.1     Authorizations
         --------------

         The Lender shall have received (except to the extent previously
         delivered to the Lender), for the benefit of the Lender in form and
         substance satisfactory to the Lender, the following:

         (a)   copies of the constituent documents as then in effect of the
               Borrower and the Guarantor certified by an Authorized
               Representative to be true copies and currently in full force and
               effect;

         (b)   a certificate of an Authorized Representative certifying the
               resolutions (i) of the Borrower's shareholders authorizing the
               execution, delivery and performance of this Agreement and the
               Note and (ii) the Guarantor's Board of Directors authorizing the
               execution, delivery and performance of this Agreement and the
               Guaranty;

         (c)   a certified copy of the K-Bis for the Borrower recently issued by
               the appropriate Registry of Commerce;

         (d)   an incumbency certificate setting forth the true and correct
               signatures of the officers or other persons executing this
               Agreement and the other documents to be

                                       31

<PAGE>

                delivered in connection herewith and in connection with each
                Drawdown for each of the Borrower and the Guarantor, in each
                case certified by an Authorized Representative; and

         (e)    a copy of the power of attorney of the Borrower, if applicable,
                appointing an attorney-in-fact of the Borrower for purposes of
                executing and delivering this Agreement, the Note, the Drawdown
                Certificate and other documents and certificates to be given by
                the Borrower in connection with the making of the Loan and each
                Drawdown; and

         (f)    such other documents of authority as shall be reasonably
                requested by, and in form and substance satisfactory to, the
                Lender and its counsel.

11.2     Note
         ----

         The Lender shall have received a duly executed copy of the Note,
         substantially in the form of Exhibit A attached hereto, evidencing the
         amount of such Drawdown.     ---------

11.3     Governmental Approvals
         ----------------------

         The Lender shall have received copies certified by an Authorized
         Representative of the Borrower (together with English translations
         thereof) of any governmental consent or approval necessary in
         connection with the execution and delivery of this Agreement and the
         Note and all related documentation.

11.4     Opinions
         --------

         The Lender shall have received, for the benefit of and addressed to the
         Lender, in each case dated the Drawdown Date, the favorable opinions
         (a) under New York and French law of Coudert Brothers, counsel to the
         Lender, in form and substance satisfactory to the Lender and (b) (i)
         under New York and French law of Baker & McKenzie, counsel to the
         Borrower and (ii) under New York and Michigan law of Baker & McKenzie
         and Jon O. Botsford, General Counsel of the Guarantor, addressed to the
         Lender and dated the Drawdown Date, substantially in the form attached
         hereto as Exhibit D and Exhibits E-1 and E-2, respectively.
                   ---------     ------------     ---

11.5     Drawdown Certificate
         --------------------
         The Lender shall have received, for the benefit of the Lender, on or
         prior to the Drawdown Date, a Drawdown Certificate of the Borrower
         substantially in the form of Exhibit B attached hereto.
                                      --------
11.6     Guaranty
         --------
         The Lender shall have received a duly executed copy of the Guaranty
         with respect to the Loan and the Note, which the Borrower shall cause
         the Guarantor to deliver substantially in the form attached hereto as
         Exhibit C.
         ----------

                                       32

<PAGE>

11.7     Financial Statements
         --------------------

         The Lender shall have received a copy of the Borrower's most recently
         filed statutory accounts.

11.8     Receipt of Funds
         ----------------

         The Lender shall have received in immediately available funds any
         monies to be advanced to the Lender on or prior to the Drawdown Date
         pursuant to the terms of any participation agreement entered into by
         the Lender in connection with the Loan and the terms and conditions of
         any such participation agreement shall be unconditional and binding on
         the parties thereto in all respects.

11.9     Fees.
         ----

         All fees payable pursuant to Section 4 hereof and any amounts due and
         payable under Section 3 hereof shall have been received by the Person
         entitled thereto.

11.10    Other Documents
         ---------------

         The Lender shall have received such other approvals, opinions and
         documents as it may have reasonably requested in writing prior to
         Drawdown.

                         SECTION 12. EVENTS OF DEFAULT

12.1     Events of Default
         -----------------

         Each of the following events shall constitute an Event of Default under
         this Agreement:

         12.1.1 Payment Default. The Borrower fails to make payment (a) on the
                ---------------
         date when due and payable of any amount of principal of the Loan or (b)
         of any interest on the Loan within three (3) Banking Days after such
         item has become due or (c) of any other fee or other amount payable by
         it hereunder within ten (10) Banking Days after such item has become
         due.

         12.1.2 Representation and Warranty Default. Any representation or
                -----------------------------------
         warranty made by or on behalf of the Borrower or the Guarantor or in
         this Agreement, the Guaranty or any other document executed and
         delivered in connection with the Loan shall have been incorrect in any
         material respect when made or confirmed, or any certificate furnished
         under this Agreement or the Guaranty proves to have been incorrect as
         of its date in any material respect.

         12.1.3 Other Defaults. (a) The Borrower shall violate or fail to
                --------------
         perform any covenant or other undertaking of this Agreement (other than
         a default or a violation referred to elsewhere in this Section), (b)
         the Guarantor shall violate or fail to perform any covenant or other
         undertaking hereunder or under the Guaranty, in either case where such
         failure or violation is not remediable or, if remediable, continues
         unremedied for a period of 30 days

                                       33

<PAGE>

         after notice from the Lender delivered according to Section 13.7 hereof
         or (c) there shall occur a Change in Control of the Borrower or the
         Guarantor.

         12.1.4 Government Permits. Any governmental registration, license or
                ------------------
         approval required in connection with the entering into of this
         Agreement or the maintenance or repayment of the Loan expires and is
         not renewed or is terminated or revoked or modified in any manner and
         is not reinstated:(i) within 30 days, or (ii) the next succeeding
         Interest Payment Date, whichever is sooner unless such expiration,
         nonrenewal, termination, revocation, modification or failure of
         reinstatement does not, or could not reasonably be expected to, have a
         Material Adverse Effect.

         12.1.5 Illegality. It becomes unlawful for the Borrower to perform any
                ----------
         material obligation hereunder or for the Guarantor to perform any
         material obligation under the Guaranty.

         12.1.6 Cross Defaults. (a) The Borrower fails to pay when due any
                --------------
         amount due in excess of US$ 50,000,000 individually or in the
         aggregate, or its equivalent in any other currency, in respect of
         Indebtedness of the Borrower (other than amounts due under this
         Agreement and the Note) or there occurs any other event of default
         under any agreement or instrument relating to Indebtedness in excess of
         US$50,000,000 individually or in the aggregate, or its equivalent in
         any other currency, of the Borrower, which results in the acceleration
         of payment in respect of such Indebtedness and such acceleration is not
         revoked within three (3) Banking Days or (b) the Guarantor fails to pay
         when due any amount due in excess of US$50,000,000 individually or in
         the aggregate, or its equivalent in any other currency, in respect of
         Indebtedness of the Guarantor or there occurs any other event of
         default under any agreement or instrument relating to Indebtedness in
         excess of US$50,000,000 individually or in the aggregate, or its
         equivalent in any other currency, of the Guarantor, which results in
         the acceleration of payment in respect of such Indebtedness and in each
         case such acceleration is not revoked within three (3) Banking Days.

         12.1.7 Insolvency. The occurrence of an Insolvency Event with respect
                ----------
         to either the Borrower or the Guarantor.

         12.1.8 Judgment Default. (a) Any final non-appealable judgments or
                ----------------
         decrees for money damages or for fines or penalties individually or in
         the aggregate at any one time outstanding in excess of US$1,000,000 or
         its equivalent in any other currency, which are not covered by
         insurance are entered against the Borrower and are not paid, discharged
         or stayed within 30 days or (b) any final non-appealable judgments or
         decrees for money damages or for fines or penalties individually or in
         the aggregate at any one time outstanding in excess of US$5,000,000 or
         its equivalent in any other currency, which are not covered by
         insurance are entered against the Guarantor and are not paid,
         discharged or stayed within 30 days

12.2     Right to Accelerate on Payment Default
         --------------------------------------

         If a Payment Default shall occur, the Lender shall have the right, by
         notice delivered in accordance with Section 13.7 hereof to (i) the
         Borrower, or if the Lender so elects, (ii) the

                                       34

<PAGE>

         Guarantor, to declare the entire Loan together with accrued interest
         (including any interest payable at the Default Interest Rate) and all
         other sums payable hereunder (including, without limitation, Breakage
         Costs) and under the Guaranty to be immediately due and payable and the
         Loan shall thereupon become due and payable without presentment,
         demand, protest or notice of any kind, other than the notice
         specifically required by this Section or the terms of the Guaranty, all
         of which are expressly waived by the Borrower and the Guarantor.

12.3     Right to Accelerate on Event of Default
         ---------------------------------------

         If an Event of Default (other than a Payment Default) shall occur
         during the Initial Period, the Lender shall have the right, by notice
         to either the Borrower or the Guarantor delivered in accordance with
         Section 13.7 hereof to declare the Initial Period Amount to be
         immediately due and payable in cash, and such amount shall thereupon
         become immediately due and payable without presentment, demand, protest
         or notice of any kind other than the notice specifically required by
         this section, all of which are expressly waived by the Borrower and the
         Guarantor.

                           SECTION 13. MISCELLANEOUS

13.1     Term
         ----

         The term of this Agreement shall commence on the date first set forth
         above and shall end on the date of payment in full of all principal,
         interest and other sums payable by the Borrower hereunder and under the
         Note in accordance with the terms of this Agreement and the Note.

13.2     Entire Agreement
         ----------------

         This Agreement and the 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 transaction. Any amendment hereto
         shall be in writing, signed by or on behalf of the parties to this
         Agreement.

13.3     Waiver; Cumulative Rights
         -------------------------

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

         13.3.2 Effect of Waiver. Failure by the Lender at any time or times
                ----------------
         hereafter to require strict performance by the Borrower or the
         Guarantor or any other person of any of the provisions, warranties,
         terms and conditions contained in the Loan Agreement, the Note, the
         Guaranty or any other related documents now or at any time or times
         hereafter executed by the Borrower, the Guarantor or any other person
         and delivered to the Lender

                                       35

<PAGE>

         shall not waive, affect or diminish any right of the Lender at any time
         or times hereafter to demand strict performance thereof, and such right
         shall not be deemed to have been modified or waived by any act, course
         of conduct or knowledge of the Lender, its agents, officers or
         employees, unless such waiver is contained in an instrument in writing
         specifying such waiver signed by the Lender and directed and delivered
         to the Borrower. No waiver by the Lender of any default shall operate
         as a waiver of any other default or the same default on a future
         occasion, and no action by the Lender permitted hereunder shall in any
         way effect or impair any of their rights or the obligations of the
         Guarantor under the Guaranty or of the Borrower hereunder.

13.4     Assignment and Participation
         ----------------------------

         13.4.1 Assignment. This Agreement shall be binding upon and shall be
                ----------
         enforceable by the Borrower, the Lender and their respective permitted
         successors and assigns; provided that the Borrower shall have no right
         to assign or transfer its rights or obligations hereunder without the
         prior written consent of the Lender. The Lender may assign, transfer or
         participate all or any portion of its rights or entitlements hereunder
         without the consent of the Borrower or Guarantor. Upon any transfer or
         assignment by the Lender, the term "Lender" as used herein shall be
         deemed to refer to such new transferee or assignee, respectively.

         13.4.2 Rights of Participants. Except as otherwise expressly provided
                ----------------------
         herein, all participants shall be entitled to share the benefits of all
         indemnities, tax reimbursements, and other rights of the Lender
         pursuant to this Agreement as fully as if a party hereto to the extent
         of their indirect interest in the Loan provided through the
         participation.

13.5     Governing Law
         -------------

         This Agreement shall be governed by and construed in accordance with
         the laws of the State of New York (including without limitation
         Sections 5-1401 and 5-1402 of the New York General Obligations Law),
         without giving effect to the principles of conflicts of law.

13.6     Submission to Jurisdiction
         --------------------------

         13.6.1 Consent to the New York Courts. Each of the Borrower and the
                ------------------------------
         Guarantor hereby irrevocably consents that any legal action or
         proceedings against it or any of its property with respect to this
         Agreement, the Note or the Guaranty may be brought in any state or
         Federal court located in the City of New York, United States of America
         or both, as the Lender may elect, and by execution and delivery of this
         Agreement each of the Borrower and the Guarantor hereby submits to and
         accepts with regard to any such action or proceeding, for itself and in
         respect of its property, generally and unconditionally, the
         jurisdiction of the aforesaid courts. Each of the Borrower and the
         Guarantor irrevocably consents to the service of process in any such
         action or proceeding by the mailing of copies thereof by registered or
         certified airmail, postage prepaid, to the Borrower or the Guarantor at
         its address set forth in Section 13.7 or its Process Agent specified in
         this

                                       36

<PAGE>

         Section. Such service of process shall be effective upon receipt. The
         foregoing, however, shall not limit the rights of the Lender to serve
         process in any other manner permitted by law or to bring any legal
         action or proceeding or to obtain execution of judgment in any
         jurisdiction, including without limitation, France. The Borrower hereby
         appoints the Guarantor as its agent for service of process in New York
         and hereby covenants and agrees to maintain the effectiveness of such
         appointment throughout the term of this Agreement. The Borrower hereby
         agrees that service of process on the Guarantor shall constitute good
         and sufficient service of process for the purpose of any action or
         proceeding in the State of New York in connection with this Agreement,
         the Note or the Guaranty.

         13.6.2 Waiver of Forum Non-Conveniens. Each of the Borrower and the
                ------------------------------
         Guarantor hereby irrevocably waives any objection which it may now or
         hereafter have to the laying of the venue of any suit, action or
         proceeding arising out of or relating to this Agreement, the Note or
         the Guaranty in the State of New York and hereby further irrevocably
         waives any claim that the State of New York is not a convenient forum
         for any such suit, action or proceedings.

13.7     Notices
         -------

         Any notice required or permitted to be given hereunder shall be in
         writing and shall be (a) personally delivered, (b) delivered by a
         recognized courier service, (c) transmitted by postage prepaid
         registered mail (airmail if international), or (d) transmitted by
         telecopier (with postage prepaid mail confirmation-airmail if
         international) to the parties as follows (as elected by the party
         giving such notice):

         To the Borrower:                 Steelcase SAS
                                          c/o Steelcase Inc.
                                          901 44th Street, S.E.
                                          Grand Rapids, MI  49508
                                          Tel:  (616) 246-9600
                                          Fax:  (616) 248-7010
                                          Attn: General Counsel

         To the Guarantor:                Steelcase Inc.
                                          901 44th Street, S.E.
                                          Grand Rapids, MI  49508
                                          Tel:  (616) 246-9600
                                          Fax:  (616) 248-7010
                                          Attn: General Counsel

         To the Lender:                   Societe Generale, Chicago Branch
                                          181 West Madison
                                          Chicago, Illinois 60602
                                          Tel:  (312) 578-5000
                                          Fax:  (312) 578-5099
                                          Attn:  Editha Paras, Vice President

                                       37

<PAGE>

         Except as otherwise specified herein, all notices and other
         communications shall be deemed to have been duly given on (a) the date
         of receipt if delivered personally or by courier service, (b) the date
         five days after posting if transmitted by mail or (c) the date of
         transmission if transmitted by telecopier, whichever shall first occur.
         Any party may change its address for purposes hereof by notice to the
         other party.

13.8     Severability
         ------------

         If any one or more of the provisions contained in this Agreement or the
         Note shall be invalid, illegal or unenforceable in any respect under
         any applicable law, the validity, legality and enforceability of the
         remaining provisions contained herein and therein shall not in any way
         be affected or impaired. Anything in this Agreement to the contrary
         notwithstanding, the obligation of the Borrower to pay interest on the
         Loan and the Note shall be subject to the limitation that no payment of
         such interest shall be required to the extent that receipt of such
         payment would be contrary to the applicable penal laws of the State of
         New York relating to usury.

13.9     Confidentiality
         ---------------

         13.9.1 Generally. The Lender covenants and agrees not to disclose to
                ---------
         any person or entity any Confidential Information (as defined below),
         except (a) as may be necessary or required by law, rule, regulation or
         court order or legal process or order or request of any banking
         authority having jurisdiction over the Lender, (b) to its officers,
         directors, employees, attorneys and other advisors and (c) in
         connection with any action or proceeding arising out of or in
         connection with this Agreement, the Note or the Guaranty or in
         connection with the enforcement or collection of the Obligations or the
         exercise of any right or remedy under any such agreement or instrument.

         13.9.2 Definition of Confidential Information. "Confidential
                --------------------------------------
         Information" shall mean any information with respect to the Borrower
         and the Guarantor, this Agreement, the Note, the Guaranty, any
         participation agreement or other related document or matter other than
         (a) information previously filed, or required to be filed with any
         governmental agency and available to the public; (b) information
         previously published in any public medium and (c) information
         previously disclosed by the Borrower or the Guarantor to any person or
         entity not associated with the Borrower or the Guarantor free of any
         restrictions as to further disclosure.

13.10    Counterparts
         ------------

         This Agreement may be signed in any number of counterparts. Any single
         counterpart or set of counterparts signed, in either case, by all the
         parties hereto shall constitute a full and original agreement for all
         purposes.

13.11    Right of Setoff
         ---------------

                                       38

<PAGE>

         If an Event of Default shall have occurred and be continuing, the
         Lender is hereby authorized at any time and from time to time, without
         notice to the Borrower or the Guarantor, to the fullest extent
         permitted by law, to set off and apply any and all deposits and any and
         all indebtedness or other amounts at any time owing by the Lender to or
         for the credit or the account of the Borrower or the Guarantor against
         any of and all the Obligations now or hereafter existing under this
         Agreement, the Guaranty or the Note held by the Lender, irrespective of
         whether or not the Lender shall have made any demand under this
         Agreement, the Guaranty or the Note and although such obligations may
         be unmatured. The rights of the Lender under this Section are in
         addition to other rights and remedies (including other rights of
         setoff) which the Lender may have.

13.12    Survival of Agreement
         ---------------------

         All covenants, agreements, representations and warranties made by the
         Borrower and the Guarantor herein, in the Note and in the certificates
         or other instruments prepared or delivered in connection with or
         pursuant to this Agreement or the Note shall be considered to have been
         relied upon by the Lender and shall survive the making by the Lender of
         the Loan, the execution and delivery to the Lender of this Agreement
         and the Note regardless of any investigation made by the Lender, and
         shall continue in full force and effect as long as any Obligation is
         outstanding. Without prejudice to the survival of any other agreements
         contained herein and related agreements and instruments, the
         obligations under Sections 3 and 4 hereof shall survive payment in full
         of the Obligations and termination of this Agreement, unless otherwise
         agreed.

13.13    WAIVER OF JURY TRIAL
         --------------------

         EACH OF THE PARTIES HERETO HEREBY WAIVES, TO THE FULLEST EXTENT
         PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY
         IN RESPECT OF ANY LITIGATION ARISING DIRECTLY OR INDIRECTLY UNDER OR IN
         CONNECTION WITH THIS AGREEMENT, THE GUARANTY OR THE NOTE.

                                       39

<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this Loan Agreement
to be executed by their respective duly authorized representatives as of the day
and year first written above.

BORROWER                     STEELCASE SAS

                             By: /s/ A. Rougier-Chapman
                                 ----------------------
                                 Name: Alwyn Rougier-Chapman

                                 being duly authorized to enter into this Loan
                                 Agreement on behalf of Steelcase SAS pursuant
                                 to a resolution of the shareholders of
                                 Steelcase SAS adopted by such shareholders at
                                 an ordinary shareholders' meeting thereof in
                                 April 1999.

GUARANTOR                    STEELCASE INC.

                             By: /s/ A. Rougier-Chapman
                                 ----------------------
                                 Name: Alwyn Rougier-Chapman
                                 Title: Senior Vice President-Finance, Chief
                                        Financial Officer and Treasurer

LENDER                       SOCIETE GENERALE, CHICAGO BRANCH

                             By: /s/ Editha N. Paras
                                 -------------------
                                 Name: Editha N. Paras
                                 Title: Vice President

                                       40

<PAGE>

                                                                         ANNEX A

                      RESOLUTIONS OF THE BOARD OF DIRECTORS
                                OF THE GUARANTOR

     RESOLVED, that the Company hereby ratifies and approves in all respects the
guaranty dated as of April 9, 1999 (the "Guaranty"), made by the Company in
favor of Societe Generale (the "Lender") in connection with the loan agreement
dated as of April 9, 1999 (the Loan Agreement") evidencing indebtedness in the
aggregate principal amount not exceeding Two Hundred Twenty Million United
States Dollars ($220,000,000) among Steelcase SAS, as borrower, the Company, as
guarantor and the Lender, as lender.

                         RESOLUTIONS OF THE SHAREHOLDERS
                                 OF THE BORROWER

                             [To be mutually agreed]

                                       A-1

<PAGE>

                                                                       EXHIBIT A

                                 PROMISSORY NOTE

Amount: US$[      ]                                          Date:
                                                             Chicago, Illinois

FOR VALUE RECEIVED, STEELCASE SAS (the "Borrower"), hereby promises to pay to
the order of Societe Generale, Chicago Branch (the "Lender"), at Societe
Generale, Chicago Branch, 181 West Madison, Chicago, Illinois 60602, the
principal sum of [    ] Million United States Dollars (US$[     ]) (the "Loan"),
pursuant to the terms of a Loan Agreement dated as of April 9, 1999 (the "Loan
Agreement") by and among the Borrower, the Lender and Steelcase Inc. (the
"Guarantor"), and to which reference is hereby made and which is incorporated
herein by reference, in one installment on the Final Maturity Date (as defined
in the Loan Agreement), subject to the penultimate paragraph of this Note.
Capitalized terms not otherwise defined herein shall have the respective
meanings set forth in the Loan Agreement.

The Borrower further promises to pay interest to the Lender on the Loan until
paid in full at the rates, at the times, in the manner and calculated in
accordance with the provisions of the Loan Agreement.

The interest on this Loan shall be payable in United States Dollars in same day
funds and without set-off or counterclaim, free and clear of and without
deduction for any present or future Taxes, restrictions or conditions of any
nature, except as provided in the Loan Agreement. If the Borrower is required to
make any such deduction or withholding from any such payment, the Borrower shall
pay such additional amounts in the manner set forth in the Loan Agreement.

In case an Event of Default (including a Payment Default) shall occur, the
outstanding principal of, and accrued interest on, this Loan may be declared due
and payable in the manner and with the effect provided in the Loan Agreement,
presentment, demand, protest or notice of any kind being expressly waived by the
Borrower, except as provided in the Loan Agreement.

The Borrower has the right to prepay this Note in whole or in part in accordance
with the terms of the Loan Agreement. Commencing on the Interest Payment Date
occurring on the seventh anniversary of the First Drawdown Date subject to any
Banking Day Adjustment as provided in the Loan Agreement, the Borrower, at the
Borrower's option, shall have the right to prepay (and repay at the Final
Maturity Date) all of the principal of the Loan with the Repayment Shares as set
forth in the Loan Agreement; provided, however, that there shall not exist on
the date of prepayment any default specified in Section 12.1.1 of the Loan
Agreement of a monetary amount owed to the Lender under the Loan Agreement
accruing up to and including the seventh anniversary of the First Drawdown Date,
subject to any Banking Day Adjustment.

This Note shall be governed by and construed in accordance with the laws of the
State of New York (including without limitation Sections 5-1401 and 5-1402 of
the New York General Obligations Law), without giving effect to the principles
of conflicts of law.

                                       A-1

<PAGE>

                                        STEELCASE SAS

                                        By: ____________________________________
                                            Name:

                                        being duly authorized to execute this
                                        Promissory Note on behalf of Steelcase
                                        SAS pursuant to a resolution of the
                                        shareholders of Steelcase SAS adopted by
                                        such shareholders at an ordinary
                                        shareholders' meeting thereof in April
                                        1999.

                                       A-2

<PAGE>

                                                                       EXHIBIT B

                              DRAWDOWN CERTIFICATE

                                                                           Date:

Societe Generale
Chicago Branch
181 West Madison
Chicago, Illinois 60602

                                  STEELCASE SAS
                    Loan Agreement dated as of April 9, 1999

Ladies and Gentlemen:

STEELCASE SAS (the "Borrower") hereby requests that the principal amount of
[] United States Dollars (US$     ) be advanced to the Borrower on [     ] (the
"Drawdown Date") under the Loan (as defined in the Loan Agreement referred to
below) and certifies that as of the date hereof and as of the Drawdown Date:

1.   No event has occurred which constitutes, or which, with the giving of
     notice or the passing of time, or both, would constitute, an Event of
     Default under the Loan Agreement dated as of April 9, 1999 (the "Loan
     Agreement") among the Borrower, Steelcase Inc., as Guarantor and
     yourselves, as Lender.

2.   All the representations and warranties of the Borrower and the Guarantor
     contained in the Loan Agreement are true and correct as if restated in
     their entirety on the date hereof.

3.   The Borrower and the Guarantor have complied, and are in compliance, with
     all of their respective covenants set forth in the Loan Agreement.

4.   All of the conditions precedent specified in Section 11 of the Loan
     Agreement have been (or will be as of the Drawdown Date) satisfied and all
     documents heretofore delivered in satisfaction of the conditions precedent
     remain accurate and correct and continue in full force and effect.

5.   The Borrower hereby requests that Lender wire transfer the proceeds of the
     Loan requested hereby as follows:

                                        For:
                                        Amount:
                                        To:
                                        Account:
                                        Account No.:

                                       B-1

<PAGE>

                                   STEELCASE SAS

                                   By:  _____________________________
                                        Name:

                                        [being duly authorized to execute this
                                        Drawdown Certificate on behalf of
                                        Steelcase SAS pursuant to a resolution
                                        of the shareholders of Steelcase SAS
                                        adopted by such shareholders at an
                                        ordinary shareholders' meeting thereof
                                        in April 1999.]

CONFIRMED:

STEELCASE INC.

By:  ___________________________
     Name:
     Title:

                                       B-2

<PAGE>

                                                                       EXHIBIT C

                               CORPORATE GUARANTY

         CORPORATE GUARANTY, dated as of April 9, 1999, (the "Guaranty") made by
Steelcase Inc., a Michigan corporation (the "Guarantor"), in favor of Societe
Generale, Chicago Branch (the "Lender").

                              W I T N E S S E T H :

         WHEREAS, the Lender is entering into a Loan Agreement dated as of April
9, 1999 (the "Loan Agreement") with Steelcase SAS, as borrower (the "Borrower")
and the Guarantor, as guarantor, pursuant to which the Lender agreed to lend
US$220,000,000 to the Borrower, subject to the terms and conditions thereof (the
"Loan");

         WHEREAS, it is a condition to the Lender's obligation to make the Loan
under the Loan Agreement that the Guarantor execute this Guaranty in favor of
the Lender; and

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

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

         SECTION 1. Guaranty. The Guarantor hereby unconditionally and
                    --------
irrevocably guarantees the punctual, full and prompt payment when due, whether
by acceleration or otherwise, of all obligations of the Borrower under the Loan
Agreement in respect of the period from and including the First Drawdown Date
through and including the end of the Initial Period (the "Guaranty Period"),
together with any obligations of the Borrower in respect of the Guaranty Period
which survive the expiration thereof (collectively, the "Guaranteed
Obligations") owed to the Lender. This Guaranty is an absolute guaranty of
payment and performance and is not a guaranty of collection.

         SECTION 2. Guaranty Absolute. The Guarantor guarantees that the
                    -----------------
Guaranteed Obligations will be paid strictly in accordance with the terms of the
Loan Agreement, regardless of any law, regulation or order now or hereafter in
effect in any jurisdiction affecting any of such terms or the rights of the
Lender with respect thereto. The liability of the Guarantor under this Guaranty
shall be absolute and unconditional irrespective of:

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

                                       C-1

<PAGE>

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

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

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

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

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

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

         SECTION 3.  Waiver; No Duties of Lender.
                     ---------------------------

         (a)    The Guarantor hereby waives (i) promptness, diligence, notice of
acceptance and any and all other notices with respect to any of the Guaranteed
Obligations and this Guaranty, (ii) any requirement that the Lender protect,
secure, perfect or insure any security interest in or other lien on any property
subject thereto or exhaust any right or take any action against the Borrower or
any other person or entity or any collateral, (iii) filing of claims with a
court in the event of receivership or bankruptcy of the Borrower, (iv) protest
or notice with respect to nonpayment of any or all of the Guaranteed
Obligations, and (v) all demands whatsoever (and any requirement that the same
be made on the Borrower as a condition precedent to the Guarantor's obligations
hereunder). The Guarantor hereby covenants that this Guaranty will not be
discharged, except according to the provisions of Section 11 hereof.

         (b)    The Guarantor hereby assumes responsibility for keeping itself
informed of the financial condition of the Borrower, and of all other
circumstances bearing upon the right of nonpayment of the Guaranteed Obligations
or any part thereof, that diligent inquiry would reveal. The Guarantor hereby
agrees that the Lender shall have no duty to advise the Guarantor of information
known to the Lender regarding such condition or any such circumstances. In the
event the Lender in its sole discretion undertakes at any time or from time to
time to provide any

                                       C-2

<PAGE>

such information to the Guarantor, the Lender shall be under no obligation (i)
to undertake any investigation not a part of its regular business routine, (ii)
to disclose any information which, pursuant to accepted or reasonable banking or
commercial finance practices, the Lender chooses to maintain as confidential or
(iii) to make any other or future disclosures of such information or any other
information to the Guarantor.

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

         SECTION 4. Amendments. No amendment or waiver of any provision of this
                    ----------
Guaranty nor consent to any departure by the Guarantor herefrom shall in any
event be effective unless the same shall be in writing and signed by the Lender.
No amendment, waiver or consent shall, unless in writing and signed by the
Lender, limit the liability of the Guarantor hereunder or postpone any date
fixed for payment hereunder, and then such waiver or consent shall be effective
only in the specific instance and for the specific purpose for which given.

         SECTION 5.  No Waiver; Remedies; Subrogation.
                     --------------------------------

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

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

                                       C-3

<PAGE>

         (c) Until all Guaranteed Obligations have been paid in full, the
Guarantor shall not exercise any right of subrogation which it may acquire with
respect to amounts paid hereunder. In the event that the Guarantor shall receive
any payment on account of any such right of subrogation while any Guaranteed
Obligations remain outstanding, the Guarantor agrees to pay all such amounts so
received to the Lender to be applied to payment of the Guaranteed Obligations
then due and owing in accordance with the terms of the Loan Agreement.

         SECTION 6.  Continuing Guaranty. This Guaranty is a continuing guaranty
                     -------------------
and shall (a) remain in full force and effect until terminated in accordance
with Section 11, (b) be binding upon the Guarantor, and its permitted successors
and assigns, and (c) inure to the benefit of and be enforceable by the Lender
and its permitted successors, transferees, and assigns who shall be permitted
to, and who shall, become an assignee of the Lender's interest under the Loan
Agreement.

         SECTION 7.  Reinstatement. This Guaranty shall remain in full force and
                     -------------
effect and continue to be effective should any petition be filed by or against
the Guarantor or the Borrower (each a "Loan Party" and, collectively, the "Loan
Parties") for liquidation or reorganization, should any Loan Party become
insolvent or make an assignment for the benefit of creditors or should a
receiver or trustee be appointed for all or any significant part of any Loan
Party's assets, and shall, to the fullest extent permitted by law, continue to
be effective or be reinstated, as the case may be, if at any time payment and
performance of the Guaranteed Obligations, or any part thereof, is, pursuant to
applicable law, rescinded or reduced in amount, or must otherwise be restored or
returned by any obligee of the Guaranteed Obligations, whether as a "voidable
preference", "fraudulent conveyance", or otherwise, all as though such payment
or performance had not been made. In the event that any payment, or any part
thereof, is rescinded, reduced, restored, or returned, the Guaranteed
Obligations shall, to the fullest extent permitted by law, be reinstated and
deemed reduced only by such amount paid and not so rescinded, reduced, restored
or returned.

         SECTION 8.  Governing Law. This Guaranty shall be governed by, and
                     -------------
construed in accordance with, the laws of the State of New York (including,
without limitation, Sections 5-1401 and 5-1402 of the New York General
Obligations Law), without regard to the provisions thereof relating to conflicts
of laws.

         SECTION 9.  Severability. Whenever possible, each provision of this
                     ------------
Guaranty shall be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this Guaranty shall be prohibited by or
invalid under such law, such provision shall be ineffective to the extent of
such prohibition or invalidity without invalidating the remainder of such
provision or the remaining provisions of this Guaranty.

         SECTION 10. Consent to Jurisdiction. The Guarantor hereby consents to
                     -----------------------
the non-exclusive jurisdiction of any state court or any federal court located
in New York City and agrees that all service of process may be made by
registered mail directed to the Guarantor at the address and in the manner
specified in the Loan Agreement. The Guarantor waives any objection based on
forum non conveniens and any objection to venue of any action instituted
----- --- ----------
hereunder and consents to the granting of such legal or equitable relief as is
deemed appropriate by the

                                       C-4

<PAGE>

court. Nothing contained in this paragraph shall affect the right of the Lender
to serve legal process in any other manner permitted by law or affect its right
to bring any action or proceeding against the Guarantor or its property in the
courts of any other competent jurisdiction.

         SECTION 11. Termination. So long as no Event of Default shall have
                     -----------
occurred and then be continuing, this Guaranty shall terminate and, except to
the extent expressly provided in Section 1 above with respect to survival of
Guaranteed Obligations, all obligations hereunder shall be discharged and
released upon the earlier to occur of: (a) the payment in full of all of the
Guaranteed Obligations or (b) the expiration of the Guaranty Period.

         SECTION 12. Currency. The Guarantor shall pay all amounts due hereunder
                     --------
in Dollars in immediately available funds to the Lender, at such account as the
Lender may designate to the Guarantor from time to time (the "Designated Place
of Payment") and shall be solely responsible for obtaining all required foreign
exchange and other approvals required for the making of such payments in such
currency. The Guarantor's failure to obtain any such approvals shall not relieve
it of its obligation to make payments in Dollars. In the event the Guarantor
makes a payment in any currency other than Dollars or at any place other than
the Designated Place of Payment, such payment shall not constitute payment for
purposes of calculation of interest or otherwise constitute satisfaction of the
requirements set forth herein unless and until the sums so paid are converted
into Dollars and transferred to the Designated Place of Payment. The Guarantor
shall bear all risk of currency fluctuation which occurs at any time between the
date the non-conforming payments are made by the Guarantor and the date when
such payments are converted into Dollars and transferred to the Designated Place
of Payment. The Lender shall have a separate cause of action for any shortfall
in the amount of Dollars when transferred to the Designated Place of Payment. To
the extent permitted by applicable law, the Guarantor hereby further undertakes
to maintain such foreign currency holdings and/or conversion availability from
time to time as is necessary to meet the Guarantor's obligations hereunder.

         SECTION 13. Miscellaneous. All references herein to the Borrower and to
                     -------------
the Guarantor shall be deemed to include their respective permitted successors
and assigns, including, without limitation, a receiver, trustee or
debtor-in-possession of or for the Borrower or the Guarantor. All references to
the singular shall be deemed to include the plural where the context so
requires.

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

                                               STEELCASE INC.

                                               By: __________________________

                                                   Name:
                                                   Title:

                                       C-5

<PAGE>

                                                                       EXHIBIT D

[Opinion under New York and French law of Baker & McKenzie, counsel to the
Borrower]

[date]

Societe Generale, Chicago Branch
181 West Madison
Chicago, Illinois 60602

                            Re:   Loan Agreement dated as of [     ], 1999 among
                                  Steelcase SAS, Steelcase Inc., and
                                  Societe Generale, Chicago Branch
                                  --------------------------------

Ladies and Gentlemen:

         We have acted as counsel to Steelcase SAS, a Societe par Actions
Simplifiee organized under the laws of the Republic of France, in connection
with the preparation, execution and delivery of the Loan Agreement dated as of
[         ], 1999 (the "Loan Agreement") among Steelcase SAS, as borrower (the
"Borrower"), Steelcase Inc., as guarantor (the "Guarantor") and Societe
Generale, Chicago Branch, as lender (the "Lender"). Capitalized terms used and
not otherwise defined herein shall have the respective meanings ascribed to such
terms in the Loan Agreement.

         In rendering this opinion, we have examined originals or copies,
certified or otherwise identified to our satisfaction, of the following
documents:

         (i)   the Loan Agreement;

         (ii)  the Note to be dated the First Drawdown Date;

         (iii) the Guaranty  (collectively  with the Loan Agreement and the Note
hereinafter  referred to as the "Loan Documents");

         (iv)  the Participation Agreement dated of even date with the Loan
Agreement between Steelcase Europe LLC as participant (the "Participant") and
the Lender (the "Participation Agreement");

and such other instruments and documents, and we have made such other inquiries
and investigations, as we have deemed necessary or appropriate for rendering the
opinions set forth herein. In rendering this opinion we have also, with your
permission, relied upon, among

                                       D-1

<PAGE>

other things, the legal opinion dated on or about the date hereof of Jon O.
Botsford, General Counsel of the Guarantor and Participant with respect to
certain Michigan law matters.

       In rendering this opinion, we have assumed, other than with respect to
the Borrower [, the Guarantor and the Participant]:

       (a)    the capacity, power and authority of each of the parties to the
              Loan Documents and Participation Agreement to enter into, execute,
              deliver and perform their respective obligations under each of
              such documents;

       (b)    the due authorization of each signatory to the Loan Documents and
              Participation Agreement to execute and deliver such documents on
              behalf of the parties thereto and the due execution and delivery
              of each of such documents;

       (c)    that each party to the Loan Documents and Participation Agreement
              has taken all necessary action to authorize the execution,
              delivery and performance of each of such documents to which it is
              a party;

       (d)    that each party to the Loan Documents and Participation Agreement
              is duly organized and validly existing under the laws of its place
              of organization;

       (e)    the authenticity of all Loan Documents, the Participation
              Agreement and other documents submitted to us as originals and
              the conformity with the originals of all documents submitted
              to us as copies or certified copies thereof;

       (f)    the genuineness of all signatures and seals on all of the Loan
              Documents, the Participation Agreement and other documents
              submitted to us, and that all such documents have been duly
              executed by the persons authorized.

Nothing has come to our attention that would lead us to conclude that reliance
on any of the foregoing assumptions is not reasonable.

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

1.     The Borrower has been duly created as a Societe par Actions Simplifiee
       in accordance with the laws of France, is validly existing under those
       laws and has power and authority to carry on its business as it is now
       being conducted.

2.     No approval, consent, license, permit, opinion, filing, registration
       with or other authorization of any governmental authority of the United
       States of America, the State of New York or the Republic of France is
       required on the part of the Borrower for the

                                       D-2

<PAGE>

         executionor delivery by the Borrower of, or the performance or
         incurrence by the Borrower of any obligations or liabilities under, the
         Loan Agreement.

3.       The Borrower has taken all necessary and appropriate action to
         authorize the execution and delivery of the Loan Agreement and to
         authorize the performance and observance of the terms thereof.

4.       The Loan Agreement constitutes the legal, valid and binding obligation
         of the Borrower enforceable in accordance with its terms, except as
         enforcement may be limited by bankruptcy, insolvency, or other similar
         laws affecting the enforcement of creditors' rights in general and by
         general principles of equity.

5.       The execution, delivery and performance of the Loan Agreement and the
         monetary payment of all amounts due on the dates and in the currency
         provided for therein (a) will not violate any provision of law or other
         governmental directive having the force of law to which the Borrower is
         subject, (a) will not conflict with the By-Laws (Statuts) or other
         governing documents of the Borrower, (b) to the best of our knowledge,
         will not conflict with or result in the breach of any provision of any
         material agreement under which the Borrower has incurred Indebtedness
         and will not conflict with or result in the breach of any provision of
         any other material agreement to which the Borrower is a party or by
         which it or any of its properties or assets is bound, (c) to the best
         of our knowledge, will not constitute a default or an event that with
         the giving of notice or the passing of time, or both, would constitute
         a default under any such agreement, and (d) to the best of our
         knowledge, will not result in the creation or imposition of any lien,
         charge or encumbrance on any of the assets or the property of the
         Borrower.

6.       To the best of our knowledge, there are no arbitration, litigation,
         governmental, administrative or other proceedings pending or threatened
         against the Borrower or relating to the Loan Documents or any of the
         transactions contemplated thereby.

7.       The Guarantor is the owner, directly or indirectly, of 100% of the
         issued and outstanding equity of the Borrower.

8.       The execution and delivery by the Borrower of, the performance and
         incurrence by the Borrower of its obligations and liabilities under,
         and the consummation by the Borrower of the transactions contemplated
         by, the Loan Agreement do not and will not violate any law, rule or
         regulation of the United States of America, the State of New York or
         the Republic of France applicable to the Borrower.

9.       The Borrower is subject to French civil and commercial law with respect
         to its obligations under the Loan Agreement. The entry into and
         performance of the Loan Agreement by the Borrower constitute private
         and commercial acts and neither the Borrower nor any of its assets
         enjoy any right of immunity from set-off or execution or other legal
         process in respect of its obligations under the Loan Agreement.

                                       D-3

<PAGE>

10.    The choice of New York law to govern the Loan Agreement would be
       recognized and upheld by courts of the State of New York and Federal
       courts located in the State of New York and by courts of the Republic of
       France, and the submission by the Borrower to the jurisdiction of such
       New York courts is valid and binding on the Borrower.

11.    The submission by the Borrower to the jurisdiction of the courts of the
       State of New York provided for in the Loan Agreement would be recognized
       by the courts of France as valid and binding on the Borrower and not
       subject to revocation.

12.    A final and binding judgement obtained in the courts of the State of New
       York in respect of the Loan Agreement would be enforced by the courts of
       France without re-examination of the merits of the case.

       We are attorneys admitted to the Bar of the State of New York and the
Republic of France. The opinions set forth herein are limited to matters
governed by the laws of the State of New York, the Federal laws of the United
States of America, and the laws of the Republic of France and we express no
opinion as to any other laws.

                                Very truly yours,

                                       D-4

<PAGE>

                                                                     EXHIBIT E-1

   [Opinion under New York law of Baker & McKenzie, counsel to the Guarantor]

[date]

Societe Generale, Chicago Branch
181 West Madison
Chicago, Illinois 60602

                        Re:   Loan Agreement dated as of [       ], 1999
                              among Steelcase SAS, Steelcase Inc., as
                              Guarantor and Societe Generale, Chicago Branch
                              ----------------------------------------------

Ladies and Gentlemen:

         We have acted as counsel to Steelcase Inc., a Michigan corporation, and
Steelcase Europe LLC, a limited liability company organized under the laws of
the State of Michigan, in connection with the preparation, execution and
delivery of the Loan Agreement dated as of [      ], 1999 (the "Loan Agreement")
among Steelcase SAS, as borrower (the "Borrower"), Steelcase Inc., as guarantor
(the "Guarantor") and Societe Generale, Chicago Branch, as lender (the
"Lender"). Capitalized terms used and not otherwise defined herein shall have
the respective meanings ascribed to such terms in the Loan Agreement.

         In rendering this opinion, we have examined originals or copies,
certified or otherwise identified to our satisfaction, of the following
documents:

         (i)   the Loan Agreement;

         (ii)  the Note to be dated the First Drawdown Date;

         (iii) the Guaranty  (collectively  with the Loan Agreement and the Note
hereinafter referred to as the "Loan Documents");

         (iv)  the Participation Agreement dated of even date with the Loan
Agreement between Steelcase Europe LLC as participant (the "Participant") and
the Lender (the "Participation Agreement");

and such other instruments and documents, and we have made such other inquiries
and investigations, as we have deemed necessary or appropriate for rendering the
opinions set forth herein. In rendering this opinion we have also, with your
permission, relied upon, among other things, the legal opinion dated on or about
the date hereof of Jon O. Botsford, General Counsel of the Guarantor and
Participant with respect to certain Michigan law matters.

                                      E1-1

<PAGE>

     In rendering this opinion, we have assumed, other than with respect to the
Guarantor and Participant:

     (a)  the capacity, power and authority of each of the parties to the Loan
          Documents and Participation Agreement to enter into, execute, deliver
          and perform their respective obligations under each of such documents;

     (b)  the due authorization of each signatory to the Loan Documents and
          Participation Agreement to execute and deliver such documents on
          behalf of the parties thereto and the due execution and delivery of
          each of such documents;

     (c)  that each party to the Loan Documents and Participation Agreement has
          taken all necessary action to authorize the execution, delivery and
          performance of each of such documents to which it is a party;

     (d)  that each party to the Loan Documents and Participation Agreement is
          duly organized and validly existing under the laws of its place of
          organization;

     (e)  the authenticity of all Loan Documents, the Participation Agreement
          and other documents submitted to us as originals and the conformity
          with the originals of all documents submitted to us as copies or
          certified copies thereof;

     (f)  the genuineness of all signatures and seals on all of the Loan
          Documents, the Participation Agreement and other documents submitted
          to us, and that all such documents have been duly executed by the
          persons authorized.

Nothing has come to our attention that would lead us to conclude that reliance
on any of the foregoing assumptions is not reasonable.

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

1.   No approval, consent, license, permit, opinion, filing, registration with
     or other authorization of any governmental authority of the United States
     of America or the State of New York is required on the part of the
     Guarantor or the Participant for the execution or delivery by the Guarantor
     or Participant, of, or the performance or incurrence by the Guarantor or
     Participant, as the case may be, of any obligations or liabilities under,
     any of the Loan Documents or Participation Agreement.

2.   The Loan Documents constitute, the legal, valid and binding obligations of
     the Guarantor enforceable in accordance with their respective terms, except
     as

                                      E1-2

<PAGE>

     enforcement may be limited by bankruptcy, insolvency, or other similar laws
     affecting the enforcement of creditors' rights in general and by general
     principles of equity.

3.   The Participation Agreement constitutes the legal, valid and binding
     obligation of the Participant enforceable in accordance with its terms,
     except as enforcement may be limited by bankruptcy, insolvency, or other
     similar laws affecting the enforcement of creditors' rights in general and
     by general principles of equity.

4.   The execution, delivery and performance of the Loan Documents and the
     Participation Agreement and the monetary payment of all amounts due on the
     dates and in the currency provided for therein (a) will not violate any
     provision of law or other governmental directive having the force of law to
     which the Guarantor or Participant are subject, (b) to the best of our
     knowledge, will not conflict with or result in the breach of any provision
     of any material agreement under which the Guarantor or Participant has
     incurred Indebtedness and will not conflict with or result in the breach of
     any provision of any other material agreement to which the Guarantor or
     Participant is a party or by which they or any of their properties or
     assets is bound, (c) to the best of our knowledge, will not constitute a
     default or an event that with the giving of notice or the passing of time,
     or both, would constitute a default under any such agreement, and (d) to
     the best of our knowledge, will not result in the creation or imposition of
     any lien, charge or encumbrance on any of the assets or the property of the
     Guarantor.

5.   Except as described in Schedule 6.5 to the Loan Agreement and to the best
                            ------------
     of our knowledge, there are no arbitration, litigation, governmental,
     administrative or other proceedings pending or threatened against the
     Guarantor or the Participant or relating to the Loan Documents, the
     Participation Agreement or any of the transactions contemplated thereby.

6.   The Guarantor is the owner, directly or indirectly, of 100% of the issued
     and outstanding equity of the Borrower and the Participant, to the best of
     our knowledge, free and clear of all liens.

7.   To the best of our knowledge, the annual report of the Guarantor for the
     year ended February 27, 1998, (b) the financial statements delivered to the
     Lender in accordance with Section 6.6, and (c) all filings of the Guarantor
     with the Securities and Exchange Commission preceding the date hereof, do
     not contain any untrue statement of material fact or omit to state any
     material fact necessary to make the statements therein, in light of the
     circumstances under which they were made, not misleading.

8.   The execution and delivery by each of the Guarantor and the Participant of,
     the performance and incurrence by each of the Guarantor or the Participant,
     as the case may be, of its obligations and liabilities under, and the
     consummation by each of the Guarantor or the Participant, as the case may
     be, of the transactions contemplated by, the Loan Documents and the
     Participation Agreement do not and will not violate any

                                      E1-3

<PAGE>

     law, rule or regulation of the United States of America or the State of New
     York applicable to the Guarantor or the Participant.

9.   The choice of New York law to govern the Loan Documents and the
     Participation Agreement would be recognized and upheld by courts of the
     State of New York and Federal courts located in the State of New York, and
     the submission by the Guarantor and the Participant to the jurisdiction of
     those courts is valid and binding on the Guarantor and the Participant.

     We are attorneys admitted to the Bar of the State of New York. The opinions
set forth herein are limited to matters governed by the laws of the State of New
York and the Federal laws of the United States of America, and we express no
opinion as to any other laws.

                                                     Very truly yours,

                                      E1-4

<PAGE>

                                                                     EXHIBIT E-2

     [Opinion under Michigan law of Jon O. Botsford, General Counsel of the
Guarantor]

[date]

Societe Generale, Chicago Branch
181 West Madison
Chicago, Illinois 60602

                    Re:   Loan Agreement dated as of [    ], 1999
                          among Steelcase SAS, Steelcase Inc., as
                          Guarantor and Societe Generale,
                          Chicago Branch
                          -----------------------------------------

Ladies and Gentlemen:

     I have acted as counsel to Steelcase Inc., a Michigan corporation, and
Steelcase Europe LLC, a limited liability company organized under the laws of
the State of Michigan, in connection with the preparation, execution and
delivery of the Loan Agreement dated as of [ ], 1999 (the "Loan Agreement")
among Steelcase SAS, as borrower (the "Borrower"), Steelcase Inc., as guarantor
(the "Guarantor") and Societe Generale, Chicago Branch, as lender (the
"Lender"). Capitalized terms used and not otherwise defined herein shall have
the respective meanings ascribed to such terms in the Loan Agreement.

     In rendering this opinion, I have examined originals or copies, certified
or otherwise identified to my satisfaction, of the following documents:

     (i)   the Loan Agreement;

     (ii)  the Note to be dated the First Drawdown Date;

     (iii) the Guaranty (collectively with the Loan Agreement and the Note
hereinafter referred to as the "Loan Documents");

     (iv)  the Participation Agreement dated of even date with the Loan
Agreement between Steelcase Europe LLC as participant (the "Participant") and
the Lender (the "Participation Agreement");

and such other instruments and documents, and I have made such other inquiries
and investigations, as I have deemed necessary or appropriate for rendering the
opinions set forth herein. In rendering this opinion I have also, with your
permission, relied upon, among other

                                      E2-1

<PAGE>

things, legal opinions dated on or about the date hereof from Baker & McKenzie,
counsel to the Borrower, Guarantor and Participant with respect to certain New
York and French law matters.

     In rendering this opinion, I have assumed, other than with respect to the
Guarantor and Participant:

     (a)  the capacity, power and authority of each of the parties to the Loan
          Documents and Participation Agreement to enter into, execute, deliver
          and perform their respective obligations under each of such documents;

     (b)  the due authorization of each signatory to the Loan Documents and
          Participation Agreement to execute and deliver such documents on
          behalf of the parties thereto and the due execution and delivery of
          each of such documents;

     (c)  that each party to the Loan Documents and Participation Agreement has
          taken all necessary action to authorize the execution, delivery and
          performance of each of such documents to which it is a party;

     (d)  that each party to the Loan Documents and Participation Agreement is
          duly organized and validly existing under the laws of its place of
          organization;

     (e)  the authenticity of all Loan Documents, the Participation Agreement
          and other documents submitted to me as originals and the conformity
          with the originals of all documents submitted to me as copies or
          certified copies thereof;

     (f)  the genuineness of all signatures and seals on all of the Loan
          Documents, the Participation Agreement and other documents submitted
          to me, and that all such documents have been duly executed by the
          persons authorized.

Nothing has come to my attention that would lead us to conclude that reliance on
any of the foregoing assumptions is not reasonable.

     Based upon the foregoing examinations and assumptions, and subject to the
other qualifications and limitations 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. The Guarantor is
     qualified or registered to do business in every jurisdiction where the
     failure to be so qualified or registered, singly or in the aggregate, could
     reasonably be expected to have a Material Adverse Effect.

                                      E2-2

<PAGE>

2.       The Participant is a limited liability company duly organized and in
         good standing under the laws of the State of Michigan.

3.       No approval, consent, license, permit, opinion, filing, registration
         with or other authorization of any governmental authority of the United
         States of America or the State of Michigan is required on the part of
         the Guarantor or the Participant for the execution or delivery by the
         Guarantor or Participant, of, or the performance or incurrence by the
         Guarantor or Participant, as the case may be, of any obligations or
         liabilities under, any of the Loan Documents or Participation
         Agreement.

4.       The Guarantor and Participant have taken all necessary and appropriate
         action to authorize the execution and delivery of the Loan Documents
         and the Participation Agreement and to authorize the performance and
         observance of the terms thereof.

5.       The execution, delivery and performance of the Loan Documents and the
         Participation Agreement and the monetary payment of all amounts due on
         the dates and in the currency provided for therein (a) will not violate
         any provision of law or other governmental directive having the force
         of law to which the Guarantor or Participant are subject, (b) to the
         best of our knowledge, will not conflict with the Certificate of
         Incorporation or By-laws or other governing documents of the Guarantor
         or the Participant, (c) to the best of our knowledge, will not conflict
         with or result in the breach of any provision of any material agreement
         under which the Guarantor or Participant has incurred Indebtedness and
         will not conflict with or result in the breach of any provision of any
         other material agreement to which the Guarantor or Participant is a
         party or by which they or any of their properties or assets is bound,
         (d) will not constitute a default or an event that with the giving of
         notice or the passing of time, or both, would constitute a default
         under any such agreement, and (e) to the best of my knowledge, will not
         result in the creation or imposition of any lien, charge or encumbrance
         on any of the assets or the property of the Guarantor.

6.       Except as described in Schedule 6.5 to the Loan Agreement and to the
                                ------------
         best of my knowledge, there are no arbitration, litigation,
         governmental, administrative or other proceedings pending or threatened
         against the Guarantor or relating to the Loan Documents or any of the
         transactions contemplated thereby.

7.       The Guarantor is the owner, directly or indirectly, of 100% of the
         issued and outstanding equity of the Borrower and the Participant.

8.       To the best of my knowledge, the annual report of the Guarantor for the
         year ended February 27, 1998, (b) the financial statements delivered to
         the Lender in accordance with Section 6.6, and (c) all filings of the
         Guarantor with the Securities and Exchange Commission preceding the
         date hereof, do not contain any untrue statement of material fact or
         omit to state any material fact necessary to make the statements herein
         or therein, in light of the circumstances under which they were made,
         not misleading.

                                       E2-3

<PAGE>

9.       The execution and delivery by the Guarantor and the Participant of, the
         performance and incurrence by the Guarantor or the Participant, as the
         case may be, of its obligations and liabilities under, and the
         consummation by the Guarantor or the Participant, as the case may be,
         of the transactions contemplated by, the Loan Documents and the
         Participation Agreement do not and will not violate any law, rule or
         regulation of the United States of America or the State of Michigan
         applicable to the Guarantor or the Participant.

10.      The choice of New York law to govern the Loan Documents and the
         Participation Agreement would be recognized and upheld by courts of the
         State of Michigan and Federal courts located in the State of Michigan,
         and the submission by the Guarantor and the Participant to the
         jurisdiction of those courts is valid and binding on the Guarantor and
         the Participant.

         I am an attorney admitted to the Bar of the State of Michigan. The
opinions set forth herein are limited to matters governed by the laws of the
State of Michigan and the Federal laws of the United States of America, and I
express no opinion as to any other laws.

         This opinion is specific to the transactions and documents referred to
herein and may not be relied upon, used, published, quoted or referred to by you
for any other purpose and should not be assumed to express general principles of
law applicable to transactions of this kind.

                                Very truly yours,

                                       E2-4

<PAGE>

                                                                     EXHIBIT F-1

                             COMPLIANCE CERTIFICATE
                                  STEELCASE SAS

Date:

To:    Societe Generale, Chicago Branch

       This Compliance Certificate is furnished pursuant to that certain Loan
Agreement dated as of April 9, 1999 (the "Loan Agreement") among Steelcase SAS
(the "Borrower"), Steelcase Inc., as Guarantor (the "Guarantor") and Societe
Generale, Chicago Branch (the "Lender"). Capitalized terms used and not
otherwise defined herein shall have the respective meanings ascribed to such
terms in the Loan Agreement.

                     THE UNDERSIGNED HEREBY CERTIFIES THAT:

       1.   I am the duly elected [________] of the Borrower and an Authorized
Representative of the Borrower.

       2.   I have reviewed the terms of the Loan Agreement and I have made, or
have caused to be made under my supervision, a detailed review of the business
and financial condition of the Borrower [and its Subsidiaries] during the fiscal
period from _____ through and including ________ covered by the attached
statutory accounts.

       3.   During the fiscal period covered by the attached statutory accounts,
the Borrower was in compliance with all provisions of the Loan Agreement
applicable to the Borrower and as of the end of such period there occurred no
Event of Default or event that with passage of time or notice or both would
constitute an Event of Default and no such Event of Default or event is
continuing on the date hereof. [If any Event of Default or such other event
occurred or is continuing, a statement to that effect and a statement of the
actions taken and proposed to be taken with respect thereto.]

       The foregoing certifications are hereby certified to be true and
correct and the statutory accounts delivered with this Certificate in support
hereof are delivered as of the date first written above.

                                  STEELCASE SAS

                                  By: _______________________________________
                                      Name:
                                      Title:

                                      F1-1

<PAGE>

                                                                     EXHIBIT F-2

                             COMPLIANCE CERTIFICATE
                                 STEELCASE INC.

Date:

To:    Societe Generale, Chicago Branch

       This Compliance Certificate is furnished pursuant to that certain Loan
Agreement dated as of April 9, 1999 (the "Loan Agreement") among Steelcase SAS
(the "Borrower"), Steelcase Inc., as Guarantor (the "Guarantor") and Societe
Generale, Chicago Branch (the "Lender"). Capitalized terms used and not
otherwise defined herein shall have the respective meanings ascribed to such
terms in the Loan Agreement.

                     THE UNDERSIGNED HEREBY CERTIFIES THAT:

       1.   I am the duly elected [________] of the Guarantor and an Authorized
Representative of the Guarantor.

       2.   I have reviewed the terms of the Loan Agreement and I have made, or
have caused to be made under my supervision, a detailed review of the business
and financial condition of the Guarantor and its Subsidiaries during the fiscal
period from ________ through and including _______ covered by the attached
financial statements.

       3.   During the fiscal period covered by the attached financial
statements, the Guarantor was in compliance with all provisions of the Loan
Agreement applicable to the Guarantor and as of the end of such period there
occurred no Event of Default or event that with passage of time or notice or
both would constitute an Event of Default and no such Event of Default or event
is continuing on the date hereof. [If any Event of Default or such other event
occurred or is continuing, a statement to that effect and a statement of the
actions taken and proposed to be taken with respect thereto.]

       The foregoing certifications are hereby certified to be true and
correct and the financial statements delivered with this Certificate in support
hereof are delivered as of the date first written above.

                                 STEELCASE INC.

                                 By: _____________________________________
                                     Name:
                                     Title:

                                      F2-1<PAGE>

                                                                    EXHIBIT 4.21

                                                                  Execution Copy

                             PARTICIPATION AGREEMENT

     This Participation Agreement ("Agreement") entered into as of April 9,
1999, by and between STEELCASE EUROPE LLC, a limited liability company organized
under the laws of the State of Michigan ("Participant"), and SOCIETE GENERALE,
Chicago Branch, a banking institution organized under the laws of the Republic
of France acting through its Chicago branch ("Bank"), sets forth the binding
agreement of the parties.

                                 R E C I T A L S
                                 - - - - - - - -

     A.   Simultaneously herewith, Bank, as lender, is entering into a Loan
Agreement (as the same may be amended, supplemented and otherwise modified from
time to time, the "Loan Agreement") dated as of the date hereof with Steelcase
SAS, an affiliate of Participant, organized as a Societe par Actions Simplifiee
under the laws of the Republic of France, with its registered office at Tour
Aurore 01, 18 Place des Reflets, 92975 Paris La Defense 2 Cedex, France (the
"Borrower"), pursuant to which Bank has agreed to advance a loan (the "Loan") to
Borrower in the principal amount of up to US$220,000,000 subject to the terms
and conditions set forth in the Loan Agreement and in this Agreement.

     B.   Bank and Participant mutually desire that Bank shall grant to
Participant a participation interest (the "Participation Interest") in the Loan
on the terms set forth herein, with each party having an interest in the Loan
such that Participant will be entitled, subject to the terms and conditions
hereof and of the Loan Agreement, to 100% of the Loan Agreement's benefits and
rights during the Participation Period (as defined below).

1.   PARTICIPATION

          1.1  Definitions
               -----------

          Unless otherwise defined herein, all capitalized terms used in this
Agreement shall have the respective meanings set forth in the Loan Agreement.

          1.2  Agreement to Purchase and Sell
               ------------------------------

          Bank hereby agrees to sell to Participant, and Participant hereby
agrees to purchase from Bank, the Participation Interest (including all related
payments and recoveries to which Participant is entitled pursuant to Section 2
below), and Bank hereby transfers the Participation Interest to Participant in
consideration of the obligation undertaken herein by Participant to pay to Bank
a participation purchase price in the amount set forth on Schedule 1.2 hereto,
to be completed and attached at least two days prior to the First Drawdown Date
(as defined in the Loan Agreement), plus an additional amount with respect to
any drawdown

<PAGE>

subsequent to the first Drawdown of the Loan by the Borrower as may be agreed
from time to time among Bank and Participant (the "Participation Purchase
Price"). Participant and Bank acknowledge that Participant is purchasing the
Participation Interest as of the First Drawdown Date.

          1.3  Disclosure of Terms of Loan Agreement. Participant acknowledges
               -------------------------------------
that it has received a copy of the Loan Agreement as executed and in effect as
of the date hereof. Bank agrees that it will furnish to Participant a copy of
each Drawdown Certificate of the Loan promptly after such Drawdown Certificate
is delivered by Borrower.

          1.4  Manner of Payment of Participation Purchase Price. Participant
               -------------------------------------------------
agrees to provide immediately available funds to the account designated by Bank
in sufficient time to permit such funds to be advanced as part of the relevant
Drawdown in satisfaction of the obligation of Bank pursuant to its Commitment
under the Loan Agreement. The advance of the Participation Purchase Price in
such manner shall constitute payment in full for the Participation Interest.

          1.5  Nature of Transaction. The transaction contemplated by this
               ---------------------
Agreement is a purchase and sale of an undivided interest in the Loan in
consideration for Participant's payment of the Participation Purchase Price. The
Participation Interest will be without restriction and Participant will have the
same benefits as the Bank with regard to yield protection and increased costs
and provision of information on the Borrower. The transfer of funds by
Participant to Bank in accordance with Section 1.2 shall not constitute a loan
by Participant to Bank, or constitute the making of a loan agreement between
Borrower and Participant or a sale of securities by Bank to Participant, and
shall not result in the creation of a joint venture between Bank and
Participant. The purchase shall be without recourse to Bank, and Participant
assumes all risks of non-payment and any other default by Borrower. Bank shall
owe Participant no duty except as specifically set forth in this Agreement.

2.   PAYMENTS

          2.1  Collections and Remittances.
               ---------------------------

               2.1.1  Payments Held in Trust. During the Participation Period
                      ----------------------
(as defined below), Bank shall hold in trust for the benefit of Participant all
amounts paid to Bank by Borrower in respect of the Loan pending payment of such
amounts to Participant in accordance with Section 2.1.2.

               2.1.2  Payment Allocation. Commencing on the first day of the
                      ------------------
Interest Period immediately following the Interest Payment Date that occurs on
the seventh anniversary of the first Drawdown Date under the Loan Agreement
subject to any Banking Day Adjustment (the "Payment Commencement Date"), and
continuing until such date on which the Loan is repaid in full in accordance
with its terms (such period being referred to as the "Participation Period"),
Bank shall pay to Participant 100% of all consideration accruing and paid by
Borrower to Bank on the Loan from and after the Payment Commencement Date
including, without limitation, all amounts of principal of and interest on the
Loan; provided, however, that if Bank

<PAGE>

has not been paid all amounts due and owing to Bank under the Loan Agreement up
to the Payment Commencement Date, any and all amounts paid on the Loan shall be
retained by Bank to the extent necessary to satisfy such amounts before any
payment is made to Participant hereunder. Prior to the Payment Commencement
Date, Participant shall have no right to receive any payments, except as
provided in this section in the case of permitted prepayments or an acceleration
of the Loan following the occurrence of an Event of Default, with regard to
payments of principal of and interest on the Loan payable to Bank pursuant to
the Loan Agreement. Participant hereby acknowledges and agrees that the yield
protection provisions in favor of Bank set forth in Section 3 of the Loan
Agreement, and the fee payment and indemnification provisions in favor of Bank
set forth in Section 4 of the Loan Agreement, respectively, shall survive the
commencement of the Participation Period with respect to events occurring and
liabilities incurred during the Initial Period, and that prior to the
commencement of the Participation Period Participant shall not have any right or
claim to participate in the benefits thereof. In the event that the Loan is
prepaid prior to the commencement of the Period, whether by acceleration
following an Event of Default or by any permitted prepayment in accordance with
the terms of the Loan Agreement or otherwise, Bank shall pay Participant an
amount equal to the amount received less the Initial Period Amount.

               2.1.3  Drawdown. If on any Drawdown Date, Participant shall fail
                      --------
to fund its portion of the Drawdown in a timely manner so as to enable Bank to
confirm the availability of funds for the Drawdown prior to the time of the
Drawdown, then Bank shall have no obligation to advance its own funds in respect
of such portion of the Loan. Participant acknowledges its obligation to pay the
relevant portion of the Participation Purchase Price to Bank prior to or
concurrently with the making by Bank of each Drawdown and agrees to indemnify
and hold harmless Bank against any demand, claim or proceeding asserted or
brought by Borrower based upon, arising out of or in connection with
Participant's failure to advance funds as set forth herein and Participant
agrees to reimburse Bank for all costs and expenses (including any costs of
funding Participant's portion of the Drawdown itself and attorneys fees and
expenses) incurred in connection with Participant's failure to advance funds as
set forth herein.

          2.2  Payment Returns and Adjustments
               -------------------------------

               2.2.1  If, for any reason, Bank makes any payment to Participant
of any amounts prior to receiving the related amount from Borrower and
Borrower's related payment is not received by Bank within one Banking Day after
such payment by Bank to Participant, then promptly upon demand by Bank,
Participant shall return the payment to Bank with interest at the Applicable
Rate (as defined below) for the period from (and including) the date Participant
received such payment to (but excluding) the date such payment is returned in
same day funds.

               2.2.2  If, as a result of a miscalculation or other mistake, Bank
pays an amount to Participant that is less than or greater than the amount then
payable to Participant in respect of its Participation Interest, then, promptly
upon becoming aware of such discrepancy, Bank shall pay to Participant the
amount of the deficiency or Participant shall return to Bank the amount of the
excess, as the case may be, together with interest at the floating rate
generally available on overnight deposits for funds in the currency received by
Participant or Bank, as

<PAGE>

applicable, in the place where such amount was paid, as determined by Bank in
its discretion (the "Applicable Rate").

               2.2.3  If Bank determines at any time that any amount received or
collected by Bank in respect of the Loan must be returned to Borrower or paid to
any other person or entity pursuant to any insolvency law or otherwise, then,
notwithstanding any other provision of this Agreement, Bank shall not be
required to distribute any portion thereof to Participant and Participant shall
promptly, on demand by Bank, repay any portion thereof that Bank has distributed
to Participant, together with interest thereon at such rate and for such period,
if any, as and in respect of which Bank is required to pay interest to Borrower
or such other person or entity.

               2.2.4  If Bank fails to make any payment to Participant of any
amounts due to Participant within three (3) Banking Days after receiving the
related amount from Borrower or if Bank is subject to any insolvency and/or
bankruptcy related proceedings (which shall include the entering of any decree
or order of a court for the appointment of a receiver or liquidator or trustee
or assignee in bankruptcy or insolvency of Bank or of any of its property, or
for the liquidation or winding-up of Bank), then Bank agrees that Participant
may give notice of such failure of payment or insolvency or bankruptcy
proceedings to Borrower and may direct Borrower, to which direction Bank hereby
irrevocably consents, to set off and reduce the amount of any payments owed and
payable to Bank in respect of the Loan by the amount of the payment owed to
Participant and Participant may direct Borrower to make any further payments in
respect of the Loan, during the continuance of the failure of payment by Bank or
any such insolvency or bankruptcy proceedings, directly to Participant. In the
event that, following the commencement of the Participation Period, Bank is
subject to any insolvency and/or bankruptcy proceedings and Bank receives during
the pendency of such proceedings any funds from Borrower under or in connection
with the Loan Agreement, subject to any restrictions under then applicable laws,
regulations, rules or orders, Bank will use reasonable efforts to place, or
cause to be placed, such funds in a segregated account in trust for the benefit
of Participant. Participant agrees promptly to notify Bank after it has given
such notice and direction to Borrower of the amount demanded from Borrower and
of each direct payment made by Borrower to Participant, provided, however, that
any failure by Participant to give such notice to Bank shall not affect the
validity of such direction by Participant to Borrower. The rights of Participant
under this section are in addition to any other rights and remedies which
Participant may have against Bank by reason of any failure of payment by Bank.
The parties intend that this provision will satisfy the requirements of (i) the
Financial Accounting Standards Board (FASB) Interpretation No. 39 with respect
to off-setting of assets and liabilities for financial statement purposes, and
(ii) the Statement of Financial Accounting Standards No. 125 with respect to
accounting for transfers and servicing of financial assets and extinguishments
of liabilities relating to loan participations.

               2.2.5  Bank covenants to Participant that all amounts it receives
from Borrower under the Loan during the Participation Period shall be forwarded
to Participant free and clear of all taxes, levies, deductions or withholdings
imposed on payments from Bank to Participant hereunder and that Bank shall pay
such additional amount to Participant as may be necessary in order that the
actual amount received after payment of taxes, levies, deductions or
withholdings (and after payment of any additional taxes or other charges due as
a consequence of

<PAGE>

the payment of such additional amount) shall equal the amount that would have
been received if such taxes, levies, deductions or withholdings were not
required; provided, however, that Bank shall be entitled to deduct or withhold
all such taxes, levies, deductions and withholdings and shall not be required to
pay such additional amount if amounts paid to Participant hereunder would be
subject to a U.S. tax, levy, deduction or withholding (including without
limitation, pursuant to a change in U.S. tax law) if Bank were a bank chartered
or established under the laws of the United States or any state thereof.

               2.2.6  The obligations of Participant and Bank under this Section
2.2 shall survive the termination of this Agreement and the Loan Agreement.

          2.3  Place and Manner of Payments. All payments pursuant hereto shall
               ----------------------------
be made by wire transfer of immediately available funds, not later than 12:00
p.m. (Chicago, Illinois time) on the day in question (i) in the case of payments
to Bank, to the account of Bank specified to Participant from time to time, (ii)
in the case of payments to Participant, to the account of Participant, the
details of which Participant shall provide to Bank prior to the Payment
Commencement Date and thereafter from time to time or, (iii) to such other
person or place as Participant or Bank, as the case may be, may designate in
writing from time to time.

3.   LOAN ADMINISTRATION BY BANK AS AGENT

          3.1  Appointment and Authorization of Bank as Agent. Participant
               ----------------------------------------------
hereby appoints and authorizes Bank as its agent ("Agent") to take such action
as Agent on its behalf and to exercise such powers under this Agreement as are
delegated to Agent by the terms hereof, together with all such powers as are
reasonably incidental thereto.

          3.2  Agent and Affiliates. Notwithstanding its appointment as Agent
               --------------------
with respect to the Loan and without any obligation to provide notice to
Participant, Agent and its Affiliates may accept deposits from, lend money to,
and generally engage in any kind of business with Borrower or Participant or any
Subsidiary or Affiliate of Borrower or Participant as if it were not Agent.

          3.3  Action by Agent. The obligations of Agent hereunder are only
               ---------------
those expressly set forth herein. Without limiting the generality of the
foregoing, Agent shall not be required to take any action with respect to any
Event of Default, except as expressly provided in section 2.1.1.

          3.4  Sole Administration by Agent.
               ----------------------------

               3.4.1  During the term of this Agreement, Agent shall maintain in
accordance with its usual practice records and accounts in respect of the
amounts paid by, and the amounts distributed to, Participant hereunder, and the
computation of interest payable to Participant, which records and accounts shall
be available for inspection by Participant during customary banking hours upon
not less than three (3) Banking Days prior notice, and which shall be binding
upon Participant absent manifest error.

<PAGE>

               3.4.2  Except as expressly set forth in Section 3.4.3, Agent,
will administer and manage the Loan in accordance with the Loan Agreement in the
ordinary course of business and in accordance with Agent's usual practices,
modified from time to time as Agent deems appropriate under the circumstances.
Except as expressly set forth in Section 3.4.3, Agent shall be entitled, at any
time prior to the Payment Commencement Date, to use its discretion in taking or
refraining from taking any actions in connection with the Loan and any related
documents, including, without limitation, actions relating to any waiver or
amendment of any term thereof, as if Agent were the sole party involved in the
Loan and no participation existed; provided, however, to the extent possible
under the circumstances, Agent will use its best efforts to give prior notice to
Participant pursuant to Section 6.1 hereof and to consult with Participant
before taking such action. Notwithstanding the foregoing, Agent shall be fully
justified in failing or refusing to take any action in connection with the Loan
and any related documents unless Agent shall first receive such advice or
concurrence of Participant as Agent shall deem appropriate.

               3.4.3  Notwithstanding the foregoing, Agent, shall not, at any
time prior to the Payment Commencement Date, without the prior consent of
Participant, (i) waive any default by Borrower involving the payment of money to
Bank pursuant to the Loan Agreement; (ii) extend the time of payment of any of
Borrower's obligations with respect to the Loan; (iii) increase the principal
amount of the Loan; (iv) reduce the principal amount of, or the rate at which
interest accrues on, the Loan or (v) change the manner of payment of the Loan.
If Agent requests Participant's consent to any such action and does not receive
a written approval thereof from Participant within ten (10) Banking Days (or
such shorter period as may be requested or required by Borrower) after making
such request, then Participant shall be deemed to have not given such consent.
From and after the Payment Commencement Date, Agent agrees that it shall act
solely on behalf of Participant in administering the Loan and shall, if
requested by Participant, from time to time, enter into with Borrower any
amendment, modification or waiver of any terms or provisions of the Loan
Agreement or the Note, or any other related agreement or instrument reasonably
requested by Participant; provided, however, that Participant agrees to
reimburse Agent for all reasonable out-of-pocket costs and expenses (including,
without limitation, reasonable attorneys' fees and expenses) of Agent incurred
by Agent in connection with a request by Participant to enter into any such
amendment, modification or waiver. During the Participation Period, the Agent
hereby agrees that it will not amend the Loan, waive any provision thereof,
accelerate the Loan or otherwise exercise any remedies without the prior written
consent of Participant.

               3.4.4  If Bank is subject to any insolvency and/or bankruptcy
related proceedings (which shall include the entering of any decree or order of
a court for the appointment of a receiver or liquidator or trustee or assignee
in bankruptcy or insolvency of Bank or of any of its property, or for the
liquidation or winding-up of Bank), Bank agrees that Participant may either
direct Bank (i) to assign all its rights and interest under the Loan Agreement
(including, without limitation, all rights with respect to the Repayment Shares)
relating to the Participation Period (but not its rights and interest under the
Loan Agreement arising before the Participation Period) or (ii) in consideration
of payment by Participant of the then outstanding Initial Period Amount, to
assign all its rights and interest under the Loan Agreement (including, without
limitation, all rights with respect to the Repayment Shares), in

<PAGE>

each case, either directly to Participant or to another financial institution of
Participant's choice, to which assignment Bank hereby irrevocably consents and
waives all right of setoff, and upon which assignment Bank's obligations as
Agent under this Agreement shall cease.

               3.4.5  In no event shall Bank be entitled to own or hold the
Repayment Shares and, concurrently with the issuance of the Repayment Shares,
shall immediately take all action necessary, including, without limitation,
notice to Borrower, to cause the Repayment Shares to be registered in the name
of Participant or its nominee. So long as Bank has been paid all amounts due and
owing to it under the Loan Agreement, at no time shall Bank hold or exercise any
rights in the Repayment Shares, whether in the nature of dividends, voting
rights or other rights; all such rights shall be and remain rights of
Participant or its nominee.

          3.5  Agency Fee. During the Participation Period, Participant shall
               ----------
pay to Bank in consideration of services Bank provides in its capacity as Agent
under this Section 3 a fee (the "Agency Fee"), such fee to be paid annually on
the Payment Commencement Date (as defined in Section 2.1.2 herein) and every
anniversary thereof. The Agency Fee shall be US$25,000 for the first year of the
Participation Period and for succeeding years shall be subject to an adjustment
for inflation by an amount determined by reference to the Producer Price Index
published by the Bureau of Labor Statistics of the United States Department of
Labor (the "PPI"), or a successor index appropriately adjusted. The adjustment
of the Agency Fee in each year following the first year of the Participation
Period shall be calculated by multiplying the amount of the Agency Fee for the
immediately preceding year by a fraction the numerator of which is the PPI of
the then current year and the denominator of which is the PPI of the immediately
preceding year. Participant's obligation to pay the Agency Fee under this
Section shall terminate upon either (i) termination or prepayment of the Loan
pursuant to the Loan Agreement or (ii) assignment of the rights and benefits of
Bank pursuant to Section 3.4.4.

          3.6  Agent Not Liable to Participant in Administering the Loan;
               ----------------------------------------------------------
Representations of Bank.
-----------------------

               3.6.1  Except as expressly provided herein, Agent shall have no
liability or responsibility to Participant for any action or inaction by Agent
in connection with the administration of the Loan other than to act in good
faith and to exercise the same care in the administration of the Loan as Agent
exercises with respect to loans for its own account. Except as expressly
provided herein, Agent shall not be liable to Participant for any action taken
or not taken by Agent in connection with the enforcement of the Loan or any
related documents, except for any actual losses (other than consequential
damages) suffered or incurred by Participant that are determined by a final
court of competent jurisdiction to have resulted from Agent's gross negligence
or willful misconduct. Without limiting the foregoing, Agent (i) may consult
with legal counsel, independent public accountants, appraisers and other
experts, selected by Agent, and shall not be liable for any action taken or
omitted to be taken in good faith by it in accordance with the advice of such
persons, (ii) shall be entitled to rely on, and shall incur no liability by
acting upon, any conversation, notice, consent, certificate, statement, order,
or any document or other writing (including, without limitation, telegraph,
telex, facsimile, or other telecommunication device) believed by Agent to be
genuine and correct and to have been signed, sent, or made by the proper person,
(iii) except as expressly stated herein, makes no

<PAGE>

representation or warranty of any kind or character relating to Borrower and
shall not be responsible for any representation or warranty made in or in
connection with the Loan, (iv) makes no representation or warranty as to, and
shall not be responsible for the correctness as to form, the due execution,
legality, validity, enforceability, genuineness, sufficiency, or collectibility
of the Loan or any other document relating thereto, or for any failure by
Borrower to perform its obligations thereunder, or for Borrower's use of the
proceeds therefrom, (v) makes no representation or warranty as to, and assumes
no responsibility for, the authenticity, validity, accuracy, or completeness of
any notice, financial statement, or other document or information received by
Agent in connection with, or otherwise referred to in, the Loan Agreement and
(vi) shall not be required to make any inquiry concerning the observance or
performance of any agreements contained in, or conditions of, the Loan Agreement
or the Note or to inspect the property, books or records of Borrower.

               3.6.2  Bank, as Agent, represents and warrants to Participant
that, except insofar as Bank has previously notified Participant pursuant to
Section 6.1, as of the date hereof and each Drawdown Date (i) the sale of the
Participation Interest in the Loan by Bank to Participant has been duly
authorized and approved by all necessary action on the part of Bank, (ii) Bank
is entitled to the rights and benefits granted to it under the Loan Agreement
free and clear of all consensual liens and encumbrances, and Bank has the right,
power and authority to sell such Participation Interest to Participant and (iii)
Bank has not consented to any amendment or modification in any respect of any of
the Loan Agreement, the Note and Drawdown Certificate supplied to Participant.

          3.7  Notices to Participant. Bank, as Agent, shall use reasonable
               ----------------------
efforts to:

               (i)    notify Participant of any Event of Default (as defined in
and under the Loan Agreement) or any material breach of any representation,
covenant, warranty, or obligation of Borrower coming to the attention of the
officers of Bank responsible for the administration of the Loan Agreement
whether pursuant to written notice by Borrower to Bank under the Loan Agreement
or otherwise; provided, however, no failure to give Participant such notice
shall result in any liability of Bank to Participant or relieve Participant of
any obligation hereunder;

               (ii)   except as otherwise required by law or by an obligation of
confidentiality to which Bank is subject, periodically provide Participant with
copies of all material written reports, notices, and other documents that Bank
receives pursuant to the terms of the Loan Agreement, provided that Bank shall
have no responsibility for the authenticity, validity, accuracy or completeness
of any such document; and

               (iii)  notify Participant of each request for any modification to
the terms of the Loan Agreement that requires Participant's consent pursuant to
3.4.3 hereof.

4.   REPRESENTATIONS, WARRANTIES AND COVENANTS OF PARTICIPANT

          4.1  Authorization; Binding Nature. Participant hereby represents and
               -----------------------------
warrants that this Agreement (i) has been duly authorized by all necessary
corporate and other action, (ii)

<PAGE>

constitutes the legal, valid and binding obligation of Participant, enforceable
in accordance with its terms, and (iii) does not violate or contravene the
certificate of incorporation or by-laws or other constitutive documents of
Participant or any law, rule, regulation, order or judgment applicable to it.

          4.2  Independent Investigation by Participant. Participant
               ----------------------------------------
acknowledges (a) that Participant has received a copy of the Loan Agreement and
has been provided with related documentation and access to all such financial
data and other information pertaining to Borrower and all other related Persons
that Participant has requested in order to enable it to make an independent and
informed judgment with respect to the desirability of purchasing the
Participation Interest, (b) that, except as expressly stated herein, neither
Bank nor any Person on its behalf has made any representations or warranties to
Participant and that no prior or future act by Bank or any Person on its behalf,
including, without limitation, any review of the affairs of Borrower or any
other related Persons shall be deemed to constitute a representation or warranty
of Bank or any such Person and (c) that Participant has independently, without
reliance upon Bank, and based on such information as Participant has deemed
appropriate, made its own appraisal of and investigation into the business,
operations, property, financial condition, and general credit worthiness of
Borrower and all other Persons it deemed necessary and made its own decision to
execute this Agreement and thereby purchase the Participation Interest.
Participant agrees that, independently and without reliance upon Bank or any
representations or statements of Bank, and based on such information as
Participant deems appropriate at the time, Participant will continue to make and
rely upon its own credit analysis and decisions in taking or not taking any
action in connection with this Agreement, the Loan Agreement or the related
documents.

          4.3  Status of Participant's Interest in the Loan. Participant hereby
               --------------------------------------------
represents and warrants to Bank that the purchase of Participant's participation
in the Loan is made for investment for Participant's own account and not with a
view to any resale, distribution, transfer or conveyance thereof.

          4.4  Indemnification of Certain Costs and Expenses. Participant agrees
               ---------------------------------------------
to indemnify (and Bank is authorized to debit Participant's account, if any,
with Bank, or set off against any payments due to Participant from Bank
hereunder for the same) Bank and its Subsidiaries and their respective
directors, officers, employees, advisors, representatives, agents and
controlling persons (collectively the "Indemnified Parties") from and against
any and all losses, claims, damages, expenses and liabilities, joint or several,
to which any of the Indemnified Parties may become subject related to, arising
out of, or in connection with this Agreement or any of the transactions
contemplated herein; provided that none of the Indemnified Parties shall be
entitled to any indemnification for any of the foregoing that are finally
judicially determined to have resulted primarily from an Indemnified Party's
gross negligence or willful misconduct. The Borrower further agrees to reimburse
each Indemnified Party immediately upon request for all expenses (including
reasonable counsel fees and expenses) as they are incurred in connection with
the investigation of, preparation for, defense of, or providing evidence in, any
commenced or threatened action, claim, proceeding or investigation (including,
without limitation, usual and customary per diem compensation for any
Indemnified Party's involvement in discovery proceedings or testimony), relating
to or arising out of any matter referred to in this

<PAGE>

Agreement, including, without limitation, the performance by the Indemnified
Parties of the services contemplated in this Agreement, whether or not such
Indemnified Party is a party and whether or not such action, claim, proceeding
or investigation is initiated or brought by or on behalf of Participant or any
of its Affiliates, except that the Indemnified Parties shall not be entitled to
any reimbursement for any expenses that result from an Indemnified Party's gross
negligence or willful misconduct. If and to the extent that the indemnity or
reimbursement obligations of the Borrower under this Section may be
unenforceable for any reason, Participant agrees to make the maximum
contribution to the payment and satisfaction of each of such indemnity or
reimbursement obligations which is permissible under applicable law. The
covenants contained in this Section shall survive the termination of this
Agreement.

5.   CONFIDENTIALITY

          5.1  Bank covenants and agrees not to disclose to any Person any
Confidential Information (as defined below), except (i) as may be necessary or
advisable under or required by law, rule or regulation or legal process or order
or request of any governmental authority, (ii) to its officers, directors,
employees, attorneys and other advisors and (iii) in connection with any action
or proceeding arising out of or in connection with this Agreement, the Note, the
Loan Agreement or the Guaranty or in connection with the enforcement or
collection of the Obligations or the exercise of any right and remedy under any
such agreement or instrument.

          5.2  "Confidential Information" shall mean any information with
respect to Borrower, the Loan Agreement and the existence of this Agreement
other than (i) information previously filed with any governmental agency and
available to the public, (ii) information previously published in any public
medium and (iii) information previously disclosed by Borrower or Participant to
any Person not associated with Borrower or Participant free of any restrictions
as to further disclosure.

6.   MISCELLANEOUS

          6.1  Notices. Any notice required or permitted to be given hereunder
               -------
shall be in writing and shall be (a) personally delivered, (b) delivered by a
recognized courier service, (c) transmitted by postage prepaid registered mail
(airmail if international), or (d) transmitted by telecopier (with postage
prepaid mail confirmation airmail if international) to the parties as follows
(as elected by the party giving such notice):

          To Participant:   Steelcase Europe LLC
                            c/o Steelcase Inc.
                            901 44th Street, S.E.
                            Grand Rapids, MI  49508
                            Tel:  (616) 246-9600
                            Fax:  (616) 248-7010
                            Attn: General Counsel

          To Bank:          Societe Generale, Chicago Branch
                            181 West Madison

<PAGE>

                              Chicago, Illinois 60602
                              Tel:  (312) 578-5000
                              Fax:  (312) 578-5099
                              Attn: Editha Paras, Vice President

Except as otherwise specified herein, all notices and other communications shall
be deemed to have been duly given on (a) the date of receipt if delivered
personally or by courier service, (b) the date five days after posting if
transmitted by mail or (c) the date of transmission if transmitted by
telecopier, whichever shall first occur. Any party may change its address for
purposes hereof by notice to the other party.

          6.2  Headings. Headings are for reference only and are not to be used
               --------
in interpreting this Agreement.

          6.3  Governing Law. This Agreement shall be governed by and construed
               -------------
in accordance with the laws of the State of New York (including without
limitation Sections 5-1401 and 5-1402 of the New York General Obligations Law),
without giving effect to the principles of conflicts of law.

          6.4  Counterparts. This Agreement may be executed in counterparts,
               ------------
each of which shall be deemed an original, and all of which taken together shall
constitute one and the same instrument.

          6.5  Amendment and Termination. This Agreement may not be modified,
               -------------------------
amended or terminated except upon the written consent of both parties.

          6.6  Severability. Any provision of this Agreement that is invalid or
               ------------
unenforceable in any jurisdiction shall, as to that jurisdiction, be ineffective
to the extent of such invalidity or unenforceability without rendering invalid
or unenforceable the remaining provisions of this Agreement or affecting the
validity or enforceability of any provisions of this Agreement in any other
jurisdiction.

          6.7  Successors and Assigns.
               ----------------------

              (a)   This Agreement and all its provisions shall be binding upon
and inure to the benefit of the parties and their respective successors and
permitted assigns.

              (b)   Participant shall be permitted to transfer and assign some
or all of its rights and benefits, but not its obligations, under this Agreement
(including without limitation, a subparticipation), to any Subsidiary or
Affiliate and agrees that prior to or concurrently with such transfer,
assignment or subparticipation, Participant shall notify Bank in writing of the
same and provide Bank with the name of the transferee and the account to which
the transferee will receive payments hereunder; provided that (i) no such
assignment shall subject Bank to any increased costs in connection with this
Agreement and (ii) such transferee shall first agree to be bound by the terms of
this Agreement in a written instrument delivered to Participant and Bank in form
and

<PAGE>

substance satisfactory to Bank. Bank shall be permitted to transfer and assign
its rights, benefits and obligations under this Agreement to a Person only if
(i) Bank concurrently therewith assigns all of its rights, benefits and
obligations under the Loan, the Loan Agreement, the Note, the Guaranty and
related documentation to the same Person and provided that it is permitted to do
so by the terms of the Loan Agreement, (ii) no such assignment shall subject
Participant to any increased cost in connection with this Agreement and (iii)
such Person shall agree to be bound by the terms of this Agreement in a written
instrument delivered to Bank in form and substance satisfactory to Participant.

          6.8   Consent to New York Courts; Waiver of Forum Non-Conveniens.
                ----------------------------------------------------------

              (a)   Participant and Bank hereby irrevocably consent that any
legal action or proceedings against them or any of their property with respect
to this Agreement may be brought in any state or Federal court located in the
City of New York, United States of America or both, as Bank may elect, and by
execution and delivery of this Agreement, Participant and Bank hereby each
submit to and accept with regard to any such action or proceeding, for itself
and in respect of its property, generally and unconditionally, the jurisdiction
of the aforesaid courts. Participant and Bank irrevocably consent to the service
of process in any such action or proceeding by the mailing of copies thereof by
registered or certified airmail, postage prepaid, to them at the address set
forth in Section 6.1 above. Such service of process shall be effective upon
receipt. The foregoing, however, shall not limit the rights of Participant and
Bank to serve process in any other manner permitted by law or to bring any legal
action or proceeding or to obtain execution of judgment in any jurisdiction,
including without limitation, France.

              (b)   Participant and Bank hereby irrevocably waive any objection
which they may now or hereafter have to the laying of the venue of any suit,
action or proceeding arising out of or relating to this Agreement in the State
of New York and hereby further irrevocably waive any claim that the State of New
York is not a convenient forum for any such suit, action or proceedings.

          6.9   Process Agent. Participant hereby appoints the Guarantor as its
                -------------
agent for service of process in New York and hereby covenants and agrees to
maintain the effectiveness of such appointment throughout the term of this
Agreement. Participant hereby agrees that service of process on the Guarantor
shall constitute good and sufficient service of process for the purpose of any
action or proceeding in the State of New York in connection with this Agreement.

          6.10  WAIVER OF JURY TRIAL. EACH OF THE PARTIES HERETO HEREBY WAIVES,
                --------------------
TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A
TRIAL BY JURY IN RESPECT OF ANY LITIGATION ARISING DIRECTLY OR INDIRECTLY UNDER
OR IN CONNECTION WITH THIS AGREEMENT.

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed by their respective duly authorized representatives as of the day and
year first written above.

<PAGE>

PARTICIPANT:                   STEELCASE EUROPE, L.L.C.

                               By:  /s/ Alwyn Rougier-Chapman
                                    --------------------------
                                    Name:  Alwyn Rougier-Chapman
                                    Title: Manager

BANK:                          SOCIETE GENERALE, CHICAGO BRANCH

                               By:  /s/ Editha N. Paras
                                    -----------------------------
                                    Name:  Editha N. Paras
                                    Title: Vice President

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