shareholders’agreementtheagreement，madethisdayof20__byandbetweenxxx，acorporationdulyorganizedandexistingunderthelawsofmexicoandhavingitsprincipalofficeat________mexico（hereinafterreferredtoas“x”），representedby_________andyyy，acorporationdulyorganizedandex－istingunderthelawsof_____________andhavingitsprincipalofficeat（hereinafterreferredtoas“y”），repre－sentedby__________.
witnesseth
whereas，xhasbeenestablishedwiththepurpose_________amongotherthings，ofinvesting___________business，andisnowdesirousofbecomingengagedinthemanufacturingandsellingcontractbusiness；
whereas，yhasformanyyearsbeenengagedin_______________，amongotherthings，research，developmentandproductionofcertaincontractproductsandinthesaleofsuchproductsinvariouspartsoftheworld；whereas，yhasexperienceinmanufacturingcontractproductsinoverseascountriesandisthereforecapableoffurnishingtechnicalassistanceformanufacturingsuchproducts.
whereas，xandyaredesirousofcooperatingwitheachotherinjointlysetting-upanewcompanyinmexicotomanufacturecontractproductshereinaftermoreparticularlydescribed；andwhereas，xandyaredesirousthatsaidnewcompanywillobtaintechnicalassistancefromyformanufacturingsuchproductsandyiswillingtofurnishsuchtechnicalassistancetothenewcompany；now，thereforeinconsiderationofthepremisesandthemutualcovenantshereincontained，itisherebymutuallyagreedasfollows：
clause1.incorporationofnewcompany：
1.1forthepurposeofforminganewcompanytoengageinmanufacturingandsellingtheproductsdefinedin2.1ofclause2，bothpartiesherebyagreetoincorporatejointlyinmexicoastockcorporationofvariablecapitalunderthecommercialcodeofmexico，withsuchcorporation’sarticlesofincorporationtobeintheformattachedheretoasexhibita，whichshallbeanintegralpartofthisagreement，suchnewcorporationtobehereinafterreferredtoasfcam.
thenameoffcamshallbe：subjecttotheprovisionsofarticlesofincorporationoffcam.
1.2thepercentageownershipoftherespectivepartiesheretointhecapitalstockoffcamshallbe，xanditsthreedesigneesanaggregateoffifty-onepercent（51%），andyanditsthreedesignees，anaggregateofforty-ninepercent（49%），whichpercentageshallbemaintainedwithoutchangeatalltimesduringthetermofthisagreement，unlessother-wiseexpresslyagreedinwritingbybothpartieshereto.inordertoconformtotherequirementsofmexicanlawthatastockcorporationshallatalltimeshaveatleastfive（5）shareholders.eachofxandymayappointthree（3）designees，eachofwhomshallownone（1），butnotmorethanone（1），shareoffcamoutoftheirrespectiveshareholdingsduringthetermofthisagreement.xandyshallatalltimesberesponsiblefortheirrespectivedesigneescompliancewiththeprovisionsofthisagreementandthearticlesofincorporationoffcamapplicabletoxandysolongasanyofthemortheirsuccessorsorassignsholdsaidsharesoffcam，priortotheappointmentofthemortheirsuccessorsorassignsholdsaidsharesoffcam，priortotheappointmentofsuchdesignees.xandyshallconsultwitheachother.