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CONFORMED COPY
LOAN NUMBER 4626-BR
Guarantee Agreement
(Rural Poverty Reduction Project - Ceará)
between
FEDERATIVE REPUBLIC OF BRAZIL
and
INTERNATIONAL BANK FOR RECONSTRUCTION
AND DEVELOPMENT
Dated October 29, 2001
LOAN NUMBER 4626-BR
GUARANTEE AGREEMENT
AGREEMENT, dated October 29, 2001, between FEDERATIVE REPUBLIC OF BRAZIL (the 
Guarantor) and INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT (the Bank).
WHEREAS (A) the Guarantor and the State of Ceará (the Borrower), having been 
satisfied as to the feasibility and priority of the Project described in Schedule 2 to 
the Loan Agreement, have requested the Bank to assist in the financing of the Project; 
and
(B)
by the Loan Agreement of even date herewith between the Bank and the 
Borrower, the Bank has agreed to extend to the Borrower a loan in an amount equal to 
thirty seven million five hundred thousand dollars ($37,500,000), on the terms and 
conditions set forth in the Loan Agreement, but only on condition that the Guarantor 
agree to guarantee the obligations of the Borrower in respect of such loan as provided 
in this Agreement; and
WHEREAS the Guarantor, in consideration of the Bank’s entering into the Loan 
Agreement with the Borrower, has agreed so to guarantee such obligations of the 
Borrower;
NOW THEREFORE the parties hereto hereby agree as follows:
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ARTICLE I
General Conditions; Definitions
Section 1.01. The "General Conditions Applicable to Loan and Guarantee 
Agreements for Single Currency Loans" of the Bank, dated May 30, 1995 (as amended 
through October 6, 1999) (the General Conditions) constitute an integral part of this 
Agreement.
Section 1.02. Unless the context otherwise requires, the several terms defined in the 
General Conditions and in the Preamble to this Agreement, and in the Preamble to and 
Section 1.02 of the Loan Agreement, have the respective meanings therein set forth.
ARTICLE II
Guarantee
Section 2.01. The Guarantor declares its commitment to the objectives of the 
Project as set forth in Schedule 2 to the Loan Agreement, and, to this end, 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 the principal of, and interest and 
other charges on, the Loan, and the premium, if any, on the prepayment of the Loan, 
all as set forth in the Loan Agreement.
ARTICLE III
Representative of the Guarantor; Addresses
Section 3.01. The Minister of Finance of the Guarantor is designated as 
representative of the Guarantor for the purposes of Section 11.03 of the General 
Conditions.
Section 3.02. The following addresses are specified for the purposes of Section 
11.01 of the General Conditions:
For the Guarantor:
Ministério da Fazenda
Procuradoria Geral da Fazenda Nacional
Esplanada dos Ministérios, Bloco "P" - 8º andar
70048-900 Brasília, DF
Brazil
Facsimile:
55-61-226-2502
For the Bank:
International Bank for
  Reconstruction and Development
1818 H Street, N.W.
Washington, D.C. 20433
United States of America
Cable address:
Telex:
Facsimile:
INTBAFRAD
248423 (MCI) or
(202) 477-6391
Washington, D.C.
 64145 (MCI)
IN WITNESS WHEREOF, the parties hereto, acting through their duly authorized 
representatives, have caused this Agreement to be signed in their respective names in 
the city of Fortaleza, State of Ceará, Brazil, as of the day and year first above 
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written.
FEDERATIVE REPUBLIC OF BRAZIL
By /s/ Luiz Dias Martins Filho
Authorized Representative
INTERNATIONAL BANK FOR
  RECONSTRUCTION AND DEVELOPMENT
By /s/ Vinod Thomas
Authorized Representative