Document:

exv10w26

 

Exhibit 10.26

Guarantee Agreement 

          This Guarantee Agreement (the “Guaranty”), dated as of October 22, 2007, by
Hayes Lemmerz Fabricated Holdings B.V., a private limited liability company (besloten vennootschap
met beperkte aansprakelijkheid) incorporated under the laws of The Netherlands, with its official
seat in Rotterdam, The Netherlands and registered address at Locatellikade 1 Parnassustoren, 1076
AZ Amsterdam, The Netherlands, registered under company number 24291035 (the “Guarantor”), in favor
of U.S. Bank National Association), as trustee (in such capacity, the “Trustee”, and together with
the holders of the Notes referred to below, each, a “Guarantied Party” and, collectively, the
“Guarantied Parties”). All capitalized terms used herein and not otherwise defined herein shall
have the respective meanings given to such terms in the Indenture referred to below.

          Whereas, pursuant to the Indenture, dated as of May 30, 2007 (as amended, modified or
supplemented from time to time, the “Indenture”) between Hayes Lemmerz Finance LLC -
Luxembourg S.C.A., (the “Issuer”) and the Trustee, the Issuer has issued its 8.25% Senior Notes due
2015 in the aggregate principal amount of €130,000,000 (the “Notes”); and

          Whereas, the Guarantor will receive substantial direct and indirect benefits from the
making issuance of the Notes under the Indenture;

          Now, therefore, in consideration of the premises and for other valuable
consideration, the Guarantor hereby agrees as follows:

          Section 1 Guaranty

          (a) The Guarantor hereby absolutely, unconditionally and irrevocably guarantees, as an
independent obligation and not as surety (borg) or a joint and several debtor (hoofdelijk
medeschuldenaar), to each Guaranteed Party, the full and punctual payment when due, whether at
stated maturity or earlier, by reason of acceleration, mandatory prepayment or otherwise, by
the Issuer of all the Obligations owed to the Guaranteed Parties under the Indenture and the
Notes (the “Guaranteed Obligations”), whether or not from time to time reduced or extinguished
or hereafter increased or incurred, whether or not recovery may be or hereafter may become
barred by any statute of limitations, whether or not enforceable as against the Issuer, whether
now or hereafter existing, and whether due or to become due, including principal, interest,
fees and costs of collection.

          (b) The Guarantor shall on first demand by the Trustee stating that the Issuer has
defaulted in the performance of the Guaranteed Obligations, pay to the Trustee the amounts
specified in the demand in a manner as described therein. The Trustee shall provide the
Guarantor a copy of any notice required to be delivered to the Issuer pursuant to the Indenture
with respect to the default or non-payment of the Issuer.

          (c) The Guarantor further agrees that, if (i) any payment made by the Issuer or any other
person and applied to the Guaranteed Obligations is at any time annulled, avoided, set aside,
rescinded, invalidated, declared to be fraudulent or preferential or otherwise required to be
refunded or repaid, or (ii) the proceeds of any collateral are required to be returned by any
Guarantied Party to the Issuer, its estate, trustee, receiver or any other party, including the
Guarantor, under any bankruptcy law, equitable cause or any other requirement of law, then, to
the extent of such payment or repayment, any the Guarantor’s liability hereunder shall be and
remain in full force and effect, as fully as if the payment had

 

 

never been made. If, prior to any of the foregoing, this Guaranty shall have been
cancelled or surrendered, this Guaranty shall be reinstated in full force and effect, and such
prior cancellation or surrender shall not diminish, release, discharge, impair or otherwise
affect the obligations of the Guarantor in respect of the amount of such payment.

          (d) This Guaranty does not apply to any liability to the extent it would result in this
Guaranty constituting unlawful financial assistance.

          Section 2 Authorization; Other Agreements

          The Trustee is hereby authorized, without notice to, or demand upon, the Guarantor, which
notice and demand requirements each are expressly waived hereby, and without discharging or
otherwise affecting the obligations of the Guarantor hereunder (which obligations shall remain
absolute and unconditional notwithstanding any such action or omission to act), from time to time,
to do each of the following:

          (a) subject to the limitations and requirements of the Indenture, supplement, renew,
extend, accelerate or otherwise change the time for payment of, or other terms relating to, the
Guaranteed Obligations, or any part of them;

          (b) waive or otherwise consent to noncompliance with any provision of any instrument
evidencing the Guaranteed Obligations, or any part thereof, or any other instrument or
agreement in respect of the Guaranteed Obligations now or hereafter executed by the Issuer and
delivered to the Guarantied Parties or any of them;

          (c) accept partial payments on the Guaranteed Obligations;

          (d) subject to the limitations and requirements of the Indenture, settle, release,
compromise, collect or otherwise liquidate the Guaranteed Obligations or accept, substitute,
release, exchange or otherwise alter, affect or impair any other guaranty for the Guaranteed
Obligations or any part of them, in any manner;

          (e) add, release or substitute any one or more other guarantors of the Guaranteed
Obligations or any part of them and otherwise deal with the Issuer or any other guarantor;

          (f) apply to the Guaranteed Obligations any payment or recovery (x) from the Issuer, from
any other guarantor of the Guaranteed Obligations or any part of them or (y) from the Guarantor
in such order as provided herein, in each case whether such Guaranteed Obligations are
guaranteed or not guaranteed by others;

          (g) refund at any time any payment received by any Guarantied Party in respect of any
Guaranteed Obligation, and payment to such Guarantied Party of the amount so refunded shall be
fully guaranteed hereby even though prior thereto this Guaranty shall have been cancelled or
surrendered, and such prior cancellation or surrender shall not diminish, release, discharge,
impair or otherwise affect the obligations of the Guarantor hereunder in respect of the amount
so refunded;

even if any right of reimbursement or subrogation or other right or remedy of the Guarantor is
extinguished, affected or impaired by any of the foregoing (including any election of remedies by

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reason of any judicial, non-judicial or other proceeding in respect of the Guaranteed Obligations
that impairs any subrogation, reimbursement or other right of the Guarantor).

          Section 3 Guaranty Absolute and Unconditional

          The Guarantor hereby waives any defense of a guarantor on any obligations arising in
connection with or in respect of any of the following and hereby agrees that its obligations under
this Guaranty are absolute and unconditional and shall not be discharged or otherwise affected as a
result of any of the following:

          (a) the invalidity or unenforceability of any of the Issuer’s obligations under the
Indenture or the Notes or any other agreement or instrument relating thereto, or other guaranty
of the Guaranteed Obligations or any part of them;

          (b) the absence of any attempt to collect the Guaranteed Obligations or any part of them
from the Issuer or other action to enforce the same;

          (c) any agreement or stipulation as to the provision of adequate protection in any
bankruptcy proceeding;

          (d) any bankruptcy, suspension of payments, insolvency, reorganization, arrangement,
readjustment of debt, liquidation or dissolution proceeding commenced by or against the Issuer,
the Guarantor or any of the Issuers’ other Subsidiaries, including any discharge of, or bar or
stay against collecting, any Guaranteed Obligation (or any part of them or interest thereon) in
or as a result of any such proceeding;

          (e) failure by any Guarantied Party to file or enforce a claim against the Issuer or its
estate in any bankruptcy or insolvency case or proceeding;

          (f) any action taken by any Guarantied Party if such action is authorized hereby; or

          (g) any other act that might in any manner or to any extent vary the risk of the Guarantor
or any other grounds or circumstances that might otherwise constitute a legal defense or
discharge of a surety or a guarantor.

          Section 4 Waivers and Recourse

          (a) The Guarantor hereby waives diligence, promptness, presentment, demand for payment or
performance and protest and notice of protest, notice of acceptance and any other notice in respect
of the Guaranteed Obligations or any part of them, and any defense arising by reason of any
disability or other defense of the Issuer. The Guarantor shall not, until the Guaranteed
Obligations are irrevocably paid in full, assert any claim or counterclaim it may have against the
Issuer or set off any of its obligations to the Issuer against any obligations of the Issuer to it.
In connection with the foregoing, the Guarantor covenants that its obligations hereunder shall not
be discharged, except by complete performance or by the release of this Guaranty prior thereto in
accordance with the Indenture.

          (b) The Guarantor waives any right to require that a Guarantied Party at any time proceed
against the Issuer.

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          (c) No Guarantor will be entitled to any right of a Guarantied Party by way of subrogation. To
the extent necessary, the Guarantor hereby waives any entitlement to any such right and undertakes
to refrain from exercising to such right.

          (d) The Guarantor waives any right it may have at any time under Articles 6:52, 6:262(1),
6:263(1) and 6:265(1) of the Dutch Civil Code, to the extent applicable.

          (e) To the extent possible, the Guarantor waives all rights and defenses which it has or may
have by or pursuant to operation of law in respect of its obligations pursuant to this Section 4,
including (without limitation) any rights and defences pursuant to Articles 6:139, 6:154 and 7:582
up to and including 7:856 of the Dutch Civil Code.

          (f) Until the Guaranteed Obligations have been irrevocably paid in full the Guarantor shall
not be entitled to any right of recourse (regres) after a claim has been made or by virtue of any
payment by it in respect of the Guaranteed Obligations. .

          Section 5 Reliance

          The Guarantor hereby assumes responsibility for keeping itself informed of the financial
condition of the Issuer and any endorser and other guarantor of all or any part of the Guaranteed
Obligations, and of all other circumstances bearing upon the risk of nonpayment of the Guaranteed
Obligations, or any part thereof, that diligent inquiry would reveal, and the Guarantor hereby
agrees that no Guarantied Party shall have any duty to advise the Guarantor of information known to
it regarding such condition or any such circumstances. In the event any Guarantied Party, in its
sole discretion, undertakes at any time or from time to time to provide any such information to the
Guarantor, such Guarantied Party shall be under no obligation (a) to undertake any investigation
not a part of its regular business routine, (b) to disclose any information that such Guarantied
Party, pursuant to accepted or reasonable commercial finance or banking practices, wishes to
maintain confidential or (c) to make any other or future disclosures of such information or any
other information to the Guarantor.

          Section 6 Subordination

          The Guarantor hereby agrees that any Indebtedness of the Issuer now or hereafter owing to the
Guarantor, whether heretofore, now or hereafter created (the “Guarantor Subordinated Debt”), is
hereby subordinated to all of the Guaranteed Obligations and that, except as permitted under
Section 8.6 (Prepayment and Cancellation of Indebtedness) of the Second Amended and Restated Credit
Agreement, dated as of May 30, 2007, as amended, modified, restated or supplemented in accordance
with the terms thereof, among HLI Operating Company, Inc., the Issuer, Hayes Lemmerz International,
Inc., the lenders and issuers party thereto from time to time, Citibank North America Inc., as
administrative and the other agents party thereto, the Guarantor Subordinated Debt shall not be
paid in whole or in part until the Guaranteed Obligations have been paid in full and this Guaranty
is terminated and of no further force or effect. No Guarantor shall accept any payment of or on
account of the Guarantor Subordinated Debt at any time in contravention of the foregoing. The
Guarantor agrees to file all claims against the Issuer in any bankruptcy or other proceeding in
which the filing of claims is required by law in respect of any Guarantor Subordinated Debt. If
for any reason a Guarantor fails to file such claim at least ten Business Days prior to the last
date on which such claim should be filed, the Guarantor hereby irrevocably appoints the Trustee as
its true and lawful attorney-in-fact and is hereby authorized to act as attorney-in-fact in the
Guarantor’s name to file such claim.

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          Section 7 Default; Remedies

          The obligations of the Guarantor hereunder are independent of and separate from the Guaranteed
Obligations. If any Guaranteed Obligation is not paid when due, or upon any Event of Default or
upon any default by the Issuer as provided in any other instrument or document evidencing all or
any part of the Guaranteed Obligations, the Trustee may, at its sole election, proceed directly and
at once, without notice, against the Guarantor to collect and recover the full amount or any
portion of the Guaranteed Obligations then due, without first proceeding against the Issuer or any
other guarantor of the Guaranteed Obligations, or joining the Issuer or any other guarantor in any
proceeding against the Guarantor. At any time after maturity of the Guaranteed Obligations, the
Trustee may (unless the Guaranteed Obligations have been irrevocably paid in full), without notice
to the Guarantor apply toward the payment of the Guaranteed Obligations (a) any indebtedness due or
to become due from any Guarantied Party to the Guarantor and (b) any moneys, credits or other
property belonging to the Guarantor at any time held by or coming into the possession of any
Guarantied Party or any of its respective Affiliates.

          Section 8 Irrevocability

          This Guaranty shall be irrevocable as to the Guaranteed Obligations (or any part thereof)
until the earlier of such time as (i) all monetary Guaranteed Obligations then outstanding have
been irrevocably repaid in cash, at which time this Guaranty shall automatically be cancelled, or
(ii) this Guaranty is released as provided in the Indenture. Upon such cancellation or release of
this Guaranty and at the written request of the Guarantor or its successors or assigns, and at the
cost and expense of the Guarantor or its successors or assigns, the Trustee shall execute in a
timely manner a satisfaction of this Guaranty and such instruments, documents or agreements as are
necessary or desirable to evidence the termination of this Guaranty.

          Section 9 Setoff

          (a) Upon the occurrence and during the continuance of an Event of Default, each Guarantied
Party and each Affiliate of a Guarantied Party may, without notice to the Guarantor, appropriate
and apply toward the payment of all or any part of the Guaranteed Obligations then due and payable
(a) any indebtedness due or to become due from such Guarantied Party or Affiliate to the Guarantor
and (b) any moneys, credits or other property belonging to the Guarantor, at any time held by, or
coming into, the possession of such Guarantied Party or Affiliate.

          (b) All sums payable by a Guarantor under this Guaranty, whether in respect of principal,
interest, fees or otherwise, shall be paid free and clear and without set-off or counterclaim or
any deduction or withholding, for or on account of any present or future taxes of, duties or
governmental charges of whatever nature imposed. If any such deduction or withholding shall be
required to be made the Guarantor shall be obligated pursuant to the provisions of this sub-Section
to pay to the Guarantied Parties the same net amount as the Guarantied Parties would have been
entitled to receive in the absence of such deduction or withholding.

          Section 10 Enforcement; Amendments; Waivers

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          No delay on the part of any Guarantied Party in the exercise of any right or remedy arising
under this Guaranty, the Indenture, the Notes or otherwise with respect to all or any part of the
Guaranteed Obligations, or any other guaranty of all or any part of the Guaranteed Obligations
shall operate as a waiver thereof, and no single or partial exercise by any such Person of any such
right or remedy shall preclude any further exercise thereof. No modification or waiver of any
provision of this Guaranty shall be binding upon any Guarantied Party, except as expressly set
forth in a writing duly signed and delivered by the Guarantor. Failure by any Guarantied Party at
any time or times hereafter to require strict performance by the Issuer, the Guarantor, any other
guarantor of all or any part of the Guaranteed Obligations or any other Person of any provision,
warranty, term or condition contained in the Indenture or the Notes shall not waive, affect or
diminish any right of any Guarantied Party at any time or times hereafter to demand strict
performance thereof and such right shall not be deemed to have been waived by any act or knowledge
of any Guarantied Party, or its respective agents, officers or employees, unless such waiver is
contained in an instrument in writing, directed and delivered to the Issuer or such Guarantor, as
applicable, specifying such waiver, and is signed by the party or parties necessary to give such
waiver under the Indenture and the Notes. No waiver of any Event of Default by any Guarantied
Party shall operate as a waiver of any other Event of Default or the same Event of Default on a
future occasion, and no action by any Guarantied Party permitted hereunder shall in any way affect
or impair any Guarantied Party’s rights and remedies or the obligations of the Guarantor under this
Guaranty. Any determination by a court of competent jurisdiction of the amount of any principal or
interest owing by the Issuer to a Guarantied Party shall be conclusive and binding on the Guarantor
irrespective of whether such Guarantor was a party to the suit or action in which such
determination was made.

          Section 11 Successors and Assigns

          This Guaranty shall be binding upon the Guarantor and upon the successors and assigns of the
Guarantor and shall inure to the benefit of the Guarantied Parties and their respective successors
and assigns; all references herein to the Issuer and to the Guarantor shall be deemed to include
their respective successors and assigns. The successors and assigns of the Guarantor and the Issuer
shall include, without limitation, their respective receivers, trustees and debtors-in-possession
(as applicable).

          Section 12 Representations and Warranties; Covenants

          The Guarantor hereby agrees to take, or refrain from taking, as the case may be, each action
necessary to be taken or not taken, as the case may be, so that no Default or Event of Default is
caused by the failure to take such action or to refrain from taking such action by such Guarantor.

          Section 13 Governing Law

          This Guaranty and the rights and obligations of the parties hereto shall be governed by, and
construed and interpreted in accordance with, the laws of The Netherlands.

          Section 14 Submission to Jurisdiction

          (a) The Guarantor agrees that the competent courts of Amsterdam in The Netherlands shall
have jurisdiction with regard to any and all disputes which may arise out of or in connection
with this Guaranty.

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          (b) Nothing contained in this Section 14 (Submission to Jurisdiction) shall affect the
right of the Trustee or any other Guarantied Party to serve process in any other manner
permitted by law or commence legal proceedings or otherwise proceed against a Guarantor in any
other jurisdiction.

          Section 15 Changes to the Parties

          The Guarantied Party has the right to assign or otherwise transfer any of its rights
(overdracht van vorderingen) under or in connection with this Guaranty and the Guarantor agrees and
consents to any assignment or transfer in advance. Any such transfer may include a transfer of the
right to invoke this Guaranty.

          Section 16 Notices

          (a) All notices which must be sent to the Guarantor under this Guaranty, except if
provided otherwise, shall be made by certified letter with acknowledgment of receipt. For
purposes of this Guaranty, the address of the Guarantor for such notices, summons and other
required formalities shall be the following:

For the Guarantor:

HAYES LEMMERZ FABRICATED HOLDINGS B.V.

Locatellikade 1 Parnassustoren

1076 AZ Amsterdam,

The Netherlands

Attention: Managing Director

With a copy to:

HAYES LEMMERZ INTERNATIONAL, INC.

15300 Centennial Drive

Northville, Michigan 48167

Fax : +1 734-737-2069

Attention : General Counsel

          (b) Any change in the abovementioned addresses must be communicated to the Trustee by post
with acknowledgment of receipt, and shall only take effect ten (10) calendar days after the
date on which the Trustee receives the notice.

          Section 17 Severability

          Wherever 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.

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          Section 18 Costs and Expenses

          The Guarantor agrees to pay or reimburse the Trustee upon demand for all out-of-pocket costs
and expenses, including reasonable attorneys’ fees (including allocated costs of internal counsel
and costs of settlement), incurred by the Trustee in enforcing this Guaranty or exercising or
enforcing any other right or remedy available in connection herewith or therewith.

[Signature Pages Follow]

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          The undersigned has caused this Guaranty to be duly executed and delivered as of the date
first above written.

	 	 	 	 	 
	 	GUARANTOR:

HAYES LEMMERZ FABRICATED HOLDINGS B.V.

 	 
	 	/s/ Anneke Hooiveld
                
            /s/ Peggy Gunn
 	 
	 	Name:  	Executive Management Trust B.V. 	 
	 	Title:  	Directorexv10w27

 

Exhibit 10.27

GUARANTY

(“CONTRATO DE FIANÇA”)

Borlem Alumínio S.A., a corporation duly organized and existing under the laws of Brazil, with head
office at Avenida Alexandre Gusmão, No. 834, Parque Capuava, in the City of Santo André, State of
São Paulo, Brazil, enrolled with National Registry of Public Entities (CNPJ) under No.
02.234.234/0001-29 (“Guarantor”) herein duly represented by its undersigned legal representative.

WHEREAS:

	I.	 	Pursuant to the Indenture, dated as of May 30, 2007 (as amended, modified or supplemented
from time to time, the “Indenture”) between Hayes Lemmerz Finance LLC — Luxembourg
S.C.A., (the “Issuer”) and U.S. Bank, National Association, as Trustee (in such capacity,
the “Trustee”), the Issuer has issued its 8.25% Senior Notes due 2015 in the aggregate
principal amount of €130,000,000 (the “Notes”);

	II.	 	As a member of the same economic group as the Issuer, the Guarantor shall receive substantial
direct and indirect economic and non-economic benefits from the issuance of the Notes by the
Issuer pursuant to the Indenture and it is in the corporate interest of the Guarantor party
hereto to make this Guaranty;

	III.	 	The Guarantor has agreed to execute and deliver this Guaranty (“Contrato de Fiança”) in order
to guarantee the payment and performance of the obligations of the Issuer under the Notes and
the Indenture.

NOW, THEREFORE, based upon the foregoing and other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the Guarantor hereby agrees as follows:

     Defined Terms.

     Capitalized terms used and not otherwise defined in this Guaranty are used herein with the
same meanings ascribed to such terms in the Indenture. All terms defined in this Guaranty
shall have the defined meanings contained herein when used in any certificate or other document
made or delivered pursuant hereto.

     Any reference in this Guaranty to “continuing” in relation to an Event of Default shall be
construed as meaning that the relevant Event of Default has not been remedied (if capable of
remedy), cured (if capable of cure), waived (in which case such waiver shall be in writing) or
otherwise terminated.

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     1. Guaranty. The Guarantor irrevocably and unconditionally guarantees, as primary
obligor (principal pagador) and not merely as surety, waiving any benefit of order, the
due and punctual payment in full of all Guaranteed Obligations (as hereinafter defined)
when the same shall become due, whether at stated maturity, by acceleration, demand or
otherwise. The term “Guaranteed Obligations” is used herein in its most comprehensive
sense and includes any and all obligations of every nature
of the Issuer from time to time owed under the Indenture or the Notes, whether for
principal, interest, reimbursement of amounts drawn under fees, expenses,
indemnification or otherwise, and all other obligations of the Issuer under such
document, whether absolute or contingent, liquidated or unliquidated, and however
arising under or in connection with the Indenture, the Notes or this Guaranty.

     In the event that any portion of the Guaranteed Obligations is paid by the Issuer, the obligations
of the Guarantor hereunder shall continue and remain in full force and effect until the full
payment of all Guaranteed Obligations.

     Subject to the other provisions of this Section 1, upon the failure of the Issuer to pay any of the
Guaranteed Obligations when and as the same shall become due, the Guarantor will upon demand pay,
or cause to be paid, in cash, to the Trustee for the benefit of the holder of the Notes, an amount
equal to the aggregate of the unpaid Guaranteed Obligations.

     2. Guaranty Absolute; Continuing Guaranty. Except as otherwise provided in the
Indenture with respect to the release of guaranties, the obligations of the Guarantor
hereunder are irrevocable, absolute, independent and unconditional and shall not be
affected by any circumstance which constitutes a legal or equitable discharge of a
guaranty or surety other than payment in full of the Guaranteed Obligations. In
furtherance of the foregoing and without limiting the generality thereof, the Guarantor
agrees that: (a) this Guaranty is a guaranty of payment when due and not of
collectibility; (b) the obligations of the Guarantor hereunder are independent of the
obligations of the Issuer under the Indenture and the Notes and the obligations of any
other guarantor and a separate action or actions may be brought and prosecuted against
each guarantor whether or not any action is brought against the Issuer or any of such
other guarantors and whether or not the Issuer is joined in any such action or actions;
and (c) a payment of a portion, but not all, of the Guaranteed Obligations by the
Guarantor or the Issuer or any third party shall in no way limit, affect, modify or
abridge the liability of the Guarantor for any portion of the Guaranteed Obligations
that has not been paid. This Guaranty is a continuing guaranty and shall be binding
upon the Guarantor and its successors and assigns except as otherwise provided in the
Indenture.

     3. Actions by the Guaranteed Parties. The Trustee and the holders of the Notes
(collectively, the “Guaranteed Parties”) may from time to time, without notice or
demand and without affecting the validity or enforceability of this Guaranty or

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giving
rise to any limitation, impairment or discharge of the Guarantor’s liability hereunder,
in accordance with the terms and conditions of the Indenture and the Notes, (a) 
accelerate the Guaranteed Obligations, (b) settle, compromise, release or discharge, or
accept or refuse any offer of performance with respect to, or substitutions for, the
Guaranteed Obligations or any agreement relating thereto and/or subordinate the payment
of the same to the payment of any other obligations, (c) request and accept other
guaranties of the Guaranteed Obligations, (d) release, exchange, compromise, subordinate or modify, with or without
consideration, any other guaranties of the Guaranteed Obligations, or any other
obligation of any Person with respect to the Guaranteed Obligations, and (e)  exercise
any other rights available to the Guaranteed Parties under the Indenture or the Notes.

     4. No Discharge. This Guaranty and the obligations of the Guarantor hereunder
shall be valid and enforceable and shall not be subject to any limitation, impairment
or discharge for any reason (other than payment in full of the Guaranteed Obligations),
including without limitation the occurrence of any of the following, whether or not the
Guarantor shall have had notice or knowledge of any of them: (a) any failure to assert
or enforce or agreement not to assert or enforce, or the stay or enjoining, by order of
court, by operation of law or otherwise, of the exercise or enforcement of, any claim
or demand or any right, power or remedy with respect to the Guaranteed Obligations or
any agreement relating thereto, or with respect to any other guaranty of the Guaranteed
Obligations, (b) any waiver or modification of, or any consent to departure from, any
of the terms or provisions of the Indenture or the Notes or any agreement or instrument
executed pursuant thereto, or of any other guaranty of the Guaranteed Obligations,
(c) the application of payments received from any source to the payment of indebtedness
other than the Guaranteed Obligations, even though the Guaranteed Parties might have
elected to apply such payment to any part of the Guaranteed Obligations, and (d) any
other act or thing or omission, or delay to do any other act or thing, which may or
might in any manner or to any extent vary the risk of the Guarantor as an obligor in
respect of the Guaranteed Obligations.

     5. Waivers. The Guarantor waives, for the benefit of the Guaranteed Parties:
(a) any right to require the Guaranteed Parties, as a condition of payment or
performance by the Guarantor, to (i) proceed against the Issuer, any other guarantor of
the Guaranteed Obligations or any other Person, (ii) proceed against held from the
Issuer, any other guarantor of the Guaranteed Obligations or any other Person,
(iii) proceed against or have resort to any balance of any deposit account or credit on
the books of the Guaranteed Parties in favor of the Issuer or any other Person, or
(iv) pursue any other remedy in the power of the Guaranteed Parties; (b) (i) any rights
to set-offs, recoupments and counterclaims, and (ii) promptness or diligence;
(c) notices, demands, presentments, protests, notices of protest, notices of dishonor
and notices of any action or inaction, including acceptance of this Guaranty, notices
of default or early termination under this Guaranty, the Indenture or the Notes or any
agreement or instrument related thereto, notices of any renewal, extension or
modification of the Guaranteed Obligations or any agreement related thereto, notices of

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any extension of credit to the Issuer and notices of any of the matters referred to in
Sections 3 and 4 and any right to consent to any thereof; and (d) any benefit of order
or right set forth in
articles 366, 827, 834 to 839 of the Brazilian Civil Code, and articles 77 and 595 of
the Brazilian Civil Procedure Code.

     6. The Guarantor’ Rights of Subrogation, Contribution, etc.; Subordination of
Other Obligations. The Guarantor waives any claim, right or remedy, direct or indirect,
that the Guarantor now has or may hereafter have against the Issuer or any of its
assets in connection with this Guaranty or the performance by the Guarantor of its
obligations hereunder, in each case whether such claim, right or remedy arises in
equity, under contract, by statute, under common law or otherwise and including without
limitation (a) any right of subrogation, reimbursement or indemnification that the
Guarantor now has or may hereafter have against the Issuer, and (b) any right to
enforce, or to participate in, any claim, right or remedy that the Guaranteed Parties
now have or may hereafter have against the Issuer. The Guarantor further agrees that,
to the extent the waiver or agreement to withhold the exercise of its rights of
subrogation, reimbursement, indemnification and contribution as set forth herein is
found by a court of competent jurisdiction to be void or voidable for any reason, any
rights of subrogation, reimbursement or indemnification the Guarantor may have against
the Issuer, and any rights of contribution that the Guarantor may have against any such
other guarantor, shall be junior and subordinate to any rights that the Guaranteed
Parties may have against the Issuer, , and to any right that the Guaranteed Parties may
have against such other guarantor.

     Except for labor, social security or tax related debts, any indebtedness of the Issuer now or
hereafter held by the Guarantor is subordinated in right of payment to the Guaranteed Obligations,
and any such indebtedness of the Issuer to the Guarantor collected or received by the Guarantor
after an Event of Default has occurred and is continuing, and any amount paid to the Guarantor on
account of any subrogation, reimbursement, indemnification or contribution rights referred to in
the preceding paragraph when all Guaranteed Obligations have not been paid in full, shall be held
in trust for the Guaranteed Parties on behalf of the Guaranteed Parties and shall forthwith be paid
over to the Trustee for the benefit of the holders of the Notes to be credited and applied against
the Guaranteed Obligations.

     7. Expenses. The Guarantor agrees to pay, or cause to be paid, on demand, and to
save the Guaranteed Parties harmless against liability for (i) any and all reasonable
costs and expenses (including registration fees, fees, costs of settlement, and
disbursements of counsel and allocated costs of internal counsel) incurred or expended
by the Guaranteed Parties in connection with the enforcement of or preservation of any
rights under this Guaranty and (ii) any and all reasonable costs and expenses
(including those arising from rights of indemnification) required to be paid by the
Guarantor under the provisions of the Indenture or the Notes.

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     8. Financial Condition of the Issuer. The Guaranteed Parties shall have no
obligation, and the Guarantor waives any duty on the part of the Guaranteed Parties, to
disclose or discuss with the Guarantor its assessment, or the Guarantor’s assessment,
of the financial condition of the Issuer or any matter or fact relating to the business, operations or condition of
the Issuer. The Guarantor has adequate means to obtain information from the Issuer on a
continuing basis concerning the financial condition of the Issuer and its ability to
perform its obligations under the Indenture and the Notes, and the Guarantor assumes the
responsibility for being and keeping informed of the financial condition of the Issuer
and of all circumstances bearing upon the risk of nonpayment of the Guaranteed
Obligations.

     9. Representations and Warranties. The Guarantor makes, for the benefit of the
Guaranteed Parties, the following representations and warranties:

     (i) the Guarantor is a corporation (sociedade por ações) duly organized and validly
existing under the laws of Brazil, and that has all requisite power and authority to
own and operate its properties, to carry on its business as now conducted and as
proposed to be conducted;

     (ii) the Guarantor has all requisite power and authority, corporate and otherwise,
to execute, deliver and perform this Guaranty in favor of the Guaranteed Parties;

     (iii) the execution, delivery, and performance of this Guaranty have been duly
authorized by all necessary corporate actions on the part of the Guarantor, and do not
and will not (a) violate any provision of its By-laws, or (b) conflict with, result in
a breach of, or constitute (or, with the giving of notice or lapse of time or both,
would constitute) a default under, or, except for consents and approvals that have been
obtained and are in full force and effect, require the approval or consent of any
person pursuant to any material contractual obligation of the Guarantor, or (c) violate
any applicable law binding on the Guarantor;

     (iv) the execution, delivery and performance by the Guarantor of this Guaranty does
not require any Governmental authorization;

     (v) this Guaranty constitutes a legal, valid, and binding obligation, enforceable
in accordance with its terms against the Guarantor, except as enforcement may be
limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws
relating to creditors’ rights generally; and

     (vi) the Guarantor has full knowledge of all terms and conditions of the Indenture
and the Notes, including but not limited to the basic terms of the Guaranteed
Obligations.

     10. [RESERVED].

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     11. Amendments and Waivers. No amendment, modification, termination or waiver of
any provision of this Guaranty, and no consent to
any departure by the Guarantor therefrom, shall in any event be effective without the
written concurrence of the Trustee and, in the case of any such amendment or
modification, the Guarantor. Any such waiver or consent shall be effective only in the
specific instance and for the specific purpose for which it was given.

     12. Miscellaneous. It is not necessary for the Guaranteed Parties to inquire into
the capacity or powers of the Guarantor or the Issuer or the officers, directors or any
agents acting or purporting to act on behalf of any of them.

     The rights, powers and remedies given to the Guaranteed Parties by this Guaranty are cumulative and
shall be in addition to and independent of all rights, powers and remedies given to the Guaranteed
Parties by virtue of any statute or rule of law or in the Indenture or the Notes or in any
agreement between the Guarantor and the Guaranteed Parties or between the Issuer and the Guaranteed
Parties. Any forbearance or failure to exercise, and any delay by the Guaranteed Parties in
exercising, any right, power or remedy hereunder shall not impair any such right, power or remedy
or be construed to be a waiver thereof, nor shall it preclude the further exercise of any such
right, power or remedy.

     In case any provision in or obligation under this Guaranty shall be invalid, illegal or
unenforceable in any jurisdiction, the validity, legality and enforceability of the remaining
provisions or obligations, or of such provision or obligation in any other jurisdiction, shall not
in any way be affected or impaired thereby.

     THIS GUARANTY AND THE RIGHTS AND OBLIGATIONS OF THE GUARANTOR AND THE GUARANTEED PARTIES HEREUNDER
SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH BRAZILIAN LAW.

     This Guaranty shall inure to the benefit of the Guaranteed Parties and their respective successors
and assigns.

     ALL JUDICIAL PROCEEDINGS BROUGHT AGAINST THE GUARANTOR ARISING OUT OF OR RELATING TO THIS GUARANTY
MAY BE BROUGHT IN COURT OF COMPETENT JURISDICTION IN THE CITY OF SÃO PAULO, AND BY EXECUTION AND
DELIVERY OF THIS GUARANTY, THE GUARANTOR ACCEPTS FOR ITSELF AND IN CONNECTION WITH ITS PROPERTIES,
GENERALLY AND UNCONDITIONALLY, THE NONEXCLUSIVE JURISDICTION OF THE AFORESAID COURTS AND WAIVES ANY
DEFENSE OF FORUM NON CONVENIENS AND IRREVOCABLY AGREES TO BE BOUND BY ANY JUDGMENT RENDERED THEREBY
IN CONNECTION WITH THIS GUARANTY.

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The Guarantor has caused this Guaranty to be duly executed in four (4) identical counterparts, in
the presence of the two (2) undersigned witnesses.

São Paulo, October 18, 2007.

	 	 	 
	/s/ David Kasul

	 	/s/ Giovanni Sesso
	 
	Borlem Alumínio S.A.

	Name:David Kasul

	 	Name: Giovanni Sesso
	Title: President

	 	Title: Vice President

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