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CONFORMED COPY 
 
LOAN NUMBER 7523-BR 
 
Guarantee Agreement 
 
(Teresina Enhancing Municipal Governance and Quality of Life Project 
–
Lagoas do Norte) 
 
between 
 
FEDERATIVE REPUBLIC OF BRAZIL 
 
and 
 
INTERNATIONAL BANK FOR RECONSTRUCTION 
AND DEVELOPMENT 
 
Dated July 24, 2008 
 
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LOAN NUMBER 7523-BR 
GUARANTEE AGREEMENT 
 
AGREEMENT, dated July 24, 2008, entered into between the FEDERATIVE 
REPUBLIC OF BRAZIL (
“Guarantor”) and the INTERNATIONAL BANK FOR 
RECONSTRUCTION AND DEVELOPMENT (“Bank”) (“Guarantee Agreement”) in 
connection with the Loan Agreement of same date between the Bank and the 
Municipality of Teresina (“Borrower”) (“Loan Agreement”).  The Guarantor and the 
Bank hereby agree as follows: 
 
ARTICLE I 
–
GENERAL CONDITIONS; DEFINITIONS 
 
Section 1.01. The General Conditions (as defined in the Appendix to the Loan 
Agreement) constitute an integral part of this Agreement. 
 
Section 1.02. Unless the context requires otherwise, the capitalized terms used in 
this Agreement have the meanings ascribed to them in the General Conditions or in the 
Loan Agreement. 
 
ARTICLE II – GUARANTEE 
 
Section 2.01. Without limitation or restriction upon any of its other obligations 
under the Guarantee Agreement, the Guarantor hereby unconditionally guarantees, as 
primary obligor and not as surety merely, the due and punctual payment of all Loan 
Payments payable by the Borrower pursuant to the Loan Agreement. 
 
ARTICLE III –REPRESENTATIVE; ADDRESSES 
 
Section 3.01. The Guarantor’s Representative is the Minister of Finance. 
 
Section 3.02. The Guarantor’s Address is: 
 
Ministério da Fazenda 
 
Procuradoria Geral da Fazenda Nacional 
 
Esplanada dos Ministérios, Bloco "P" - 8º andar 
 
70048-900 Brasília, DF 
 
Brazil 
Facsimile: 55-61-3412-1740 
 
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-2- 
Section 3.03.  The Bank’s Address is: 
 
International Bank for 
 
Reconstruction and Development 
 
1818 H Street, N.W. 
 
Washington, D.C. 20433 
 
United States of America 
 
Cable: 
  Telex: 
  Facsimile: 
 
INTBAFRAD 
 
248423 (MCI) or 
(202) 477-6391 
 
Washington, D.C. 
  64145 (MCI) 
 
AGREED at the District of Columbia, United States of America, as of the day 
and year first above written. 
 
FEDERATIVE REPUBLIC OF BRAZIL 
 
By /s/ Wannine Lima 
Authorized Representative 
 
INTERNATIONAL BANK FOR 
 
RECONSTRUCTION AND DEVELOPMENT 
 
By /s/ Pamela Cox 
 
Authorized Representative