Document:

Exhibit 10.1

    

      Memorandum
        of Understanding

      

      This
        is a
        legally binding Memorandum of Understanding (“MOU”), dated September 18,
        2006 by and between Juma Technology, LLC a New York limited liability company,
        with an address at 154 Toledo Street, Farmingdale, NY 11735 (“JUMA”), and X and
        O Cosmetics, Inc, formerly known as Elite Cosmetics, Inc, with an address
        at 107
        St. Patrick's Street Donaldsonville, LA 70346 (“XO”, together with JUMA, the
“Parties”).

      

      Recitals.

      

      WHEREAS,
        JUMA and XO are entering into this MOU to set forth their respective rights
        and
        obligations in connection with a contemplated reverse merger transaction
        pursuant to which JUMA will use its best efforts to cause all of its members
        to
        exchange their interest memberships for shares of Common Stock of XO (the
        “Reverse Merger”);

      

      WHEREAS,
        the Parties acknowledge that
        this
        MOU is binding subject only to (i) the Reverse Merger qualifying as a tax-free
        transaction under section 351 of the internal revenue code (“IRC 351”), (ii) the
        issuance of a favorable tax opinion (the “Tax Opinion”) provided by JUMA’s
        counsel, (iii) the satisfaction of the members of JUMA as to any other tax
        issues resulting from the Reverse Merger, and (iv) the satisfactory completion
        of a due diligence review by each of the Parties of one another, and (v)
        compliance with applicable securities law; and 

       

      WHEREAS,
        the Parties anticipate executing and delivering definitive documents pertaining
        to the Reverse Merger within the next 30 days from the date of the MOU (the
        “Definitive Agreement”);

      

      NOW
        THEREFORE, in consideration of the mutual promises set forth below and other
        good and valuable consideration, the sufficiency and receipt of which is
        hereby
        acknowledged, the parties agree as follows.

      

      1.
        Agreement of the Parties.

       

      The
        Parties agree to the following terms and conditions:

      

      1.1  JUMA
        will
        use its best efforts to cause all of its members to exchange their membership
        interests for shares of XO Common Stock.

      

      1.2  The
        Parties agree that this MOU is binding only if: (i) the exchange of Juma’s
        Membership Interests for XO’s shares qualifies under IRC 351; (ii)
        Juma
        obtains a favorable tax opinion from its counsel regarding the proposed
        transaction; and (iii) all other tax consequences affecting the members of
        Juma
        resulting from the transaction are resolved to the satisfaction of Juma and
        its
        members. 

      

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

       

      1.3 The
        Parties agree to enter into a definitive agreement on commercially reasonable
        terms and costmary representations, warranties and undertakings subject as
        aforesaid to compliance with IRC 351 and without any other adverse tax
        consequences to JUMA or its members (“Definitive Agreement”). In connection with
        the Definitive Agreement, the Parties shall provide to each other the customary
        representations and warranties, including, but not limited to, the
        following:

       

      	a.  	
              That
                the Parties have full power and authority to enter into the Definitive
                Agreement. 

            

      

      	b.  	
              That
                XO is a valid and subsisting corporation in good standing under the
                laws
                of the jurisdiction of its formation and in each jurisdiction in
                which it
                does business. 

            

      

      	c.  	
              That
                neither the execution nor delivery of the Definitive Agreement nor
                the
                consummation of the transactions contemplated by the final contract,
                will
                conflict with, result in the breach of, or accelerate, the performance
                required by any agreement to which it is a
                party.

            

       

      2.
        Binding Effect.

       

      2.1
         This
        MOU
        is intended by the Parties to be a binding contract, notwithstanding that
        some
        specific terms and conditions relating to the performance of the parties
        are
        still to be negotiated and documented.
        Provided
        that the MOU is not terminated by either Party as provided herein, the Parties
        will enter into the Definitive Agreement prior to October 15, 2006.

      

       

      2.2  Upon
        the
        execution of the Definitive Agreement, this MOU shall automatically terminate
        and shall be of no further force or effect. In connection with the Definitive
        Agreement, the Parties shall provide to each other the customary representations
        and warranties, including, but not limited to, the following:

       

      That
        the
        Parties have full power and authority to enter into the Definitive Agreement.
        That XO is a valid and subsisting corporation in good standing under the
        laws of
        the jurisdiction of its formation and in each jurisdiction in which they
        do
        business. 

      That
        neither the execution nor delivery of the Definitive Agreement nor the
        consummation of the transactions contemplated by the final contract, will
        conflict with, result in the breach of or accelerate the performance required
        by
        any agreement to which it is a party.

       

      3.
        Termination.

       

      3.1
         Termination
        for Breach. Either party may terminate this MOU upon ten (10) days’ written
        notice in the event that the other party is in breach of its obligations;
        provided, however, that if the party in breach cures its breach during the
        10-day period, the MOU shall remain in full force and effect.

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

      3.2 Failure
        of the Parties to Execute Definitive Agreement. At the election of either
        Party,
        this MOU may be terminated immediately upon written notice, without liability
        on
        behalf of either party, in the event that the parties do not execute and
        deliver
        the Definitive Agreement on or before October 15, 2006 (the “Termination
        date”).

      

      

      4.
        Standstill.

      

      4.1
         The
        Parties are prohibited from entering into another transaction or negotiations
        with any third party relating to a similar or related transaction prior to
        October 15, 2006.

       

      5.
        Miscellaneous.

       

      5.1  If
        any
        part or parts of this MOU are held to be invalid, the remaining parts of
        it will
        continue to be valid and enforceable.

       

      5.2  This
        MOU
        will be governed by and construed in accordance with the laws of the State
        of
        New York. Venue for any legal dispute shall be in the courts of New York
        State.

       

      5.3  The
        headings in this MOU are for reference purposes only; they will not affect
        the
        meaning or construction of the terms of it.

       

      5.4  This
        MOU
        is the complete and exclusive understanding of the parties with respect to
        the
        matters contained herein. No waiver, alteration or modification of any of
        the
        provisions of this MOU will be binding unless in writing and signed by a
        duly
        authorized representative of the party to be bound. Neither the course of
        conduct between the parties nor trade usage will act to modify or alter the
        provisions of this MOU.

       

      5.5  JUMA
        and
        XO mutually agree not to circumvent each other in accomplishing directly
        or
        indirectly any project or opportunity regarding the Reverse Merger.

      

      IN
        WITNESS WHEREOF, intending to be legally bound by the terms and conditions
        of
        this Memorandum of Understanding, the parties have caused their duly authorized
        agents to execute this memorandum by signing below.

       

      
        
          	
                   Juma
                    Technology,
                    LLC

                	
                  X
                    and O Cosmetics, Inc

                
	
                  By:
                    /s/ David Giangano

                	
                  By:
                    /s/ Glen Landry

                
	
                  David
                    Giangano

                	
                  Glen
                    Landry,
                    CEOExhibit 4.1

                                     (Translation for information purposes only)

                                     BY-LAWS

                                       OF

                        INDUSTRIAS BACHOCO, S.A. DE C.V.,

                                    CHAPTER I

                  CORPORATE NAME, CORPORATE PURPOSE, CORPORATE
                  ---------------------------------------------
                  EXISTENCE, CORPORATE DOMICILE AND NATIONALITY
                  ---------------------------------------------

         ARTICLE ONE. The corporate name of the Corporation shall be "INDUSTRIAS
BACHOCO" and must always be followed by the words "SOCIEDAD ANONIMA DE CAPITAL
VARIABLE" or by the initials "S.A. de C.V."

         ARTICLE TWO. The corporate purpose of the Corporation shall be:

         I.       To promote, incorporate, organize, exploit, acquire and
                  participate in, any shares of the capital stock or equity of
                  any kind of national or foreign mercantile or civil companies,
                  associations or industrial, commercial, service or any other
                  kind of companies, as well as to participate in their
                  management or liquidation.

         II.      To purchase by any legal title all types of shares or
                  corporate participations and any type of titles or securities
                  allowed by law of any type of corporation, as a part of them,
                  or by subsequent acquisition, as well as alienate, dispose and
                  negotiate those shares or corporate participations, including
                  any other instrument. In accordance with the general
                  provisions issued by the National Securities Commission and
                  when the shares of the Company are recorded at the Securities
                  Section of the National Registry of Securities, it may acquire
                  shares of the capital of the Company, subject to what is
                  provided in this by-laws.

         III.     To receive from other entities and persons, as well as to
                  render or provide to other entities and persons, any type of
                  service which may be necessary for the accomplishment of the
                  corporate purposes, such as, among others, legal,
                  administrative, financial, treasury, auditing, marketing,
                  preparation of financial statements and budgets, development
                  of programs and manuals, analysis of operating results,
                  evaluation of productivity information and possible
                  financings, studies relating to the availability of capital,
                  technical assistance, advisory or consulting.

         IV.      To obtain, acquire, develop, commercialize, improve, use,
                  issue and receive licenses, or dispose of, under any title,
                  any patents, certificates of invention, trademarks and trade
                  names, industrial designs, industrial secrets and any other
                  industrial property rights, options and preferences as well as
                  any copyrights whether in Mexico or abroad.

<PAGE>

         V.       To obtain all types of loans or credits, issue obligations,
                  bonds, commercial paper, stock-exchange certificates and any
                  other similar security or instrument, with or without specific
                  security by way of lien, mortgage, trust or other legal title;
                  as well as to grant or issue any type of financing or loan to
                  any civil or commercial company, business or institution with
                  which the Corporation has business relations or social
                  participations, whether secured or unsecured.

         VI.      To issue and receive all type of personal guarantees, whether
                  real or in the form of an "aval" of credit instruments or
                  obligations of companies, associations or institutions in
                  which the Corporation may have an interest or participation,
                  or with which the Corporation has a business relationship,
                  constituting itself as a guarantor and/or aval of such persons
                  or of third parties.

         VII.     To issue, subscribe, accept, endorse and guarantee any
                  negotiable instruments as well as to accept and endorse the
                  same.

         VIII.    To carry out, supervise or contract on the Corporation's own
                  account or on the account of third parties, any kind of
                  construction, building, subdivision of urban areas or
                  installations for commercial purposes.

         IX.      To render, for its own account or for third parties, training
                  and development programs, as well as research work.

         X.       To take or grant in lease or gratuitous loan; acquire,
                  possess, permute, alienate, transmit, dispose or lien the
                  property or possession of any type of real estate or personal
                  property, as well as real rights thereon, when deemed
                  necessary or convenient for its purpose or for the operation
                  or purposes of the mercantile or civil companies, associations
                  and institutions in which the corporation has an interest or
                  participation of any kind.

         XI.      To act as commission agent, mediator, representative,
                  distributor or intermediary for or on behalf of any person or
                  firm.

         XII.     To carry out the production, transformation, adaptation,
                  import, export and the purchase and sale in whatever manner of
                  equipment, supplies, materials, raw materials, industrial
                  products and other materials of all types and classes.

         XIII.    In general, to carry out all acts, contracts and transactions
                  accidental, accessory or related and other commercial activity
                  necessary or convenient to carry out the purposes specified
                  above.

         ARTICLE THREE. The existence of the Corporation is indefinite.

         ARTICLE FOUR. The domicile of the Corporation is Mexico City, Federal
District. The Corporation may establish agencies, offices and branches anywhere
else in the Mexican Republic or abroad, and to conventionally submit, by any act
or agreement to the application of foreign laws, or to the one of any of the
states of the Mexican Republic, and to the respective jurisdictions of the
courts, or to conventional domiciles at Mexico or abroad, with the finality of
receiving any kind of notification, judicial or extrajudicial citation,
appointing general or specific representatives abroad for such effects or for
any others, without this being understood as a change of its domicile.

                                       2
<PAGE>

         ARTICLE FIVE. The company is of Mexican nationality. The foreign
members of the Corporation whether existing or future shall be obligated to
formally consider themselves Mexican nationals before the Ministry of Foreign
Affairs of the United Mexican States with respect to the shares of the
Corporation acquired by them or of which they are owners, as well as with the
assets, rights, concessions, participations or interests possessed by the
Corporation, as well as with respect to the rights and obligations derived from
the agreements to which the company shall be party with Mexican authorities.
Consequently, foreign members of the Corporation, whether existing or future,
obligate themselves not to invoke the protection of their governments, under
penalty of forfeiting to the Mexican nation their interests in the Corporation.

                                   CHAPTER II

                            CAPITAL STOCK AND SHARES
                            ------------------------

         ARTICLE SIX. The capital stock of the Corporation is variable. The
minimum fixed portion of the capital stock, without a right of withdrawal, has a
value of $150,000,000.00 M.N. (One Hundred Fifty Million Mexican Pesos)
represented by 600,000,000 Class I shares, which are all registered and without
par value.

         The variable portion of the capital shall be represented by Class II
registered shares without par value.

         Shares representing the capital stock, within each class, may be
divided into the following series, according to the terms determined by a
Shareholder Meeting which approves their issue:

         I.       Series "B" which shall be composed of common shares, with full
                  voting rights, and which may correspond to both Class I and
                  Class II, and which shall represent at all times at least 100%
                  (one hundred percent) of all the common shares with full
                  voting rights and at least 75% (seventy-five) of the total
                  shares into which the capital stock is divided. At all times,
                  at least 51% (fifty-one percent) of these common shares shall
                  be subscribed to by natural persons or corporations considered
                  Mexican investors in accordance with the Foreign Investment
                  Act, and in all cases, no more than 49% (forty-nine percent)
                  of the same common shares may be subscribed to or acquired
                  freely and indiscriminately by Mexican or foreign investors.

         II.      Series "L" which shall be composed of shares having limited
                  voting and other corporate rights, pursuant to the terms of
                  these By-laws, which at no time shall represent more than 25%
                  (twenty-five percent) of the total of the shares into which
                  the capital stock shall be divided, unless the shares in
                  question have limited voting rights which are convertible into
                  ordinary shares issued with the authorization of the National
                  Banking and Securities Commission pursuant to the terms of
                  Section II of Article 14 Bis of the Securities Market Law;
                  such shares shall be freely subscribeable, and consequently,
                  may be acquired by Mexican and foreign investors.

                                       3
<PAGE>

                  The Shareholders' Meeting which approves the issuance of
                  shares with limited voting rights and convertible into common
                  shares, or which modifies the characteristics of the
                  outstanding shares, shall determine the form, terms and
                  conditions of such conversion, as well as its characteristics
                  for identification purposes.

                  Series "L" shares, having limited voting rights and other
                  limited corporate rights, shall be considered a neutral
                  investment, which, with the prior approval of the Ministry of
                  the Economy, shall not be counted for the purpose of
                  determining the amount and proportion of foreign investors
                  participating in the capital stock of the Corporation,
                  pursuant to the terms of Articles 18 and 20 of the Foreign
                  Investment Law.

                  The Corporation may issue unsubscribed shares of any Series of
                  the capital stock which, in the case of shares representing
                  the variable portion of the capital, shall be held in the
                  Corporation's Treasury, to be delivered as the subscription is
                  carried out. In addition, the Corporation may issue
                  unsubscribed shares in accordance with the terms and
                  conditions of Article 81 of the Securities Market Law (Ley del
                  Mercado de Valores).

         ARTICLE SEVEN. Except for the right to retire shares, which corresponds
to the shares of Class II representing the variable portion of the capital of
the Corporation, within their respective series and class, each share shall
confer similar rights and obligations to its holders. Each share shall grant to
its holder the same rights whether financial or as to assets, as a result of
which all of the shares shall participate equally, without distinction, in
dividends, reimbursements, amortization or distribution of whatever type under
the terms of these By-Laws. With respect to the right to vote the shares issued
by the Corporation the following shall hold true:

         I.       Each common or ordinary share of Series B with voting rights
                  shall be entitled to one vote at shareholder meetings.

         II.      Shares of Series "L" shall have limited voting and other
                  corporate rights and each of such shares shall provide its
                  holder the following rights:

         1.       Attend and exercise one vote per share only in Meetings of the
                  holders of such Series "L".

         2.       Attend and exercise one vote per share at Extraordinary
                  Shareholders' Meetings with respect to the following matters:

         (a)               transformation of the Corporation;

         (b)               Merger of the Corporation with any other Corporation
                           or Companies, when the Corporation does not survive;

                                       4
<PAGE>

         (c)               Cancellation of the registration of the shares of the
                           Corporation with the Securities Section of the
                           National Registry of Securities and with other
                           national securities markets whether domestic or
                           foreign in which the shares are registered except for
                           quotation systems and other markets not organized as
                           securities exchanges; and

         (d)               Modification of Article 11 of these By-laws with
                           respect to the cancellation of the registration of
                           the shares of the Corporation in the Section of
                           Securities of the National Registry of Securities.

         3.       Designate, substitute and revoke elections of members of the
                  Board of Directors as follows:

         (a)               Pursuant to the terms provided in Section III of
                           Article 14 Bis 3 of the Securities Market Law, all
                           minority shareholders of Series "L" shares which
                           represent at least 10% of the capital, represented by
                           the same series of shares, shall have the right to
                           designate, substitute or revoke at least one director
                           and his respective alternate, which may only
                           substitute the relevant or applicable director. This
                           right shall be exercised by way of written notice
                           addressed to the Chairman of the Board or to the
                           Secretary of the Board at least two Business days in
                           advance of the date on which the Ordinary
                           Shareholders Meeting to designate, ratify and revoke
                           election of directors shall be held.

         (b)               Failing a designation by the minority directors, and
                           by virtue of the fact that the Series "L" shares may
                           not represent more than 25% of the capital of the
                           Corporation, the Series "L" Shares, by resolution
                           adopted by a Special Meeting, shall have the right to
                           designate, substitute or revoke the election of two
                           Directors and their respective alternates;
                           designation, substitution or revocation shall be made
                           by majority vote of the Series "L" shares represented
                           at a Special Meeting for such purpose, the resolution
                           of which shall be notified to the Ordinary Meeting of
                           Shareholders pursuant to the terms agreed upon by the
                           Special Meeting.

         (c)               Failing appointment of one of the two minority
                           directors as indicated, and by virtue of the fact
                           that the Series "L" shares may not represent more
                           than 25% of the capital of the Corporation, the
                           Series "L" Shares, by resolution adopted by a Special
                           Meeting, excluding for purposes of determining
                           whether a quorum exists those Series "L" shares which
                           have exercised their right referred to in (a) above,
                           shall have the right to designate, substitute or
                           revoke the election of one member of the Board and
                           his substitute; such designation, substitution or
                           revocation shall be made by a majority vote of the
                           Series "L" shares represented at the Special Meeting
                           at which such matter shall be dealt with, which
                           resolution shall be notified to the General Ordinary
                           Shareholders' Meeting pursuant to the terms agreed
                           upon by the Special Meeting.

         4.       So long as they are issued, the Series L shares shall be
                  subject to the same rights financially and as to assets as the
                  common and ordinary shares, including, without limitation, the
                  right to participation in income, dividends, repayment as a
                  result of the reduction of capital or by liquidation,
                  amortization with net profit or by way of any other
                  distribution or the preferential right to subscribe
                  proportionately for new shares which may be issued, for
                  payment in cash or in kind, in order to maintain the holder's
                  percentage ownership of such Series "L" and of the capital of
                  the Corporation.

                                        5
<PAGE>

         ARTICLE EIGHT. The Company may acquire shares representing its own
capital through the stock exchange, at the current market price, under the terms
of Article 14 Bis. 3 of the Securities Exchange Act, without the prohibition
established in the first paragraph of Article 134 of the General Law of
Mercantile Stock Corporations (Ley General de Sociedades Mercantiles) being
applicable, provided that:

         I.       The purchase is made charged to capital stock insofar as such
                  shares pertain to the Company itself or, if applicable, to the
                  capital stock in the event that a decision is made to convert
                  them into treasury shares, in which case no decision shall be
                  required by the Meeting of Stockholders.

         II.      The Regular Meeting of Stockholders shall be responsible for
                  expressly agreeing, in each fiscal year, the maximum amount of
                  money that may be used to purchase the Company's own shares,
                  with the only limitation that the sum of the monies that may
                  be used to this end may in no case exceed the total balance of
                  the Company's net profit, including retained earnings. For its
                  part, the Board of Directors shall appoint to that end the
                  person or persons responsible for the acquisition and
                  placement of the company's stock.

         III.     The company stock that belongs to the Company or if applicable
                  the treasury shares, without prejudice to the provisions of
                  General Law of Mercantile Stock Corporations, may be placed
                  among the investor public, without in this latter case a
                  resolution of any sort by the Meeting of Stockholders, nor a
                  decision by the Board of Directors regarding the placement
                  thereof, being required. The acquisition or purchase of
                  company stock and the subsequent placement thereof shall be
                  subject to the provisions of Section I of Article 14 Bis. 3 of
                  the Securities Exchange Act, and it shall be made, reported
                  and disclosed on as part of the financial information, in the
                  manner, under the terms and conditions established by the
                  National Banking and Securities Commission through general
                  provisions, and reported to the corresponding stock exchange
                  and to the public, under the terms of the applicable legal
                  provisions.

         IV.      While the shares belong to the Company they may not be
                  represented in Meetings of Stockholders of any type, nor may
                  the corporate or beneficial rights they grant be exercised,
                  nor shall they be deemed in circulation for the effects of
                  determining the attendance or voting quorums in Meetings of
                  Stockholders.

         V.       In no case may shares representing the capital stock be
                  acquired such that the number of Series "L" limited voting
                  shares in circulation exceeds the maximum cited in Paragraph
                  II of Article Sixth of these bylaws, or the percentages
                  authorized by the National Banking and Securities Commission
                  pursuant to Section I of Article 14 Second 3 of the Securities
                  Exchange Act, in the case of non-voting stock, as well as with
                  the limitation of other corporate rights, or of restricted
                  voting stock other than that stipulated by Article 113 of the
                  General Law of Mercantile Stock Corporations (Ley General de
                  Sociedades Mercantiles).

                                        6
<PAGE>

         VI.      Reductions or increases in the capital stock derived from the
                  purchase and placement of stock cited by this article, shall
                  not require a resolution by a Meeting of Stockholders of any
                  class, nor a resolution of the Board of Directors.

         Likewise, upon express authorization from the National Banking and
Securities Commission, the Company may issue unsubscribed stock for placement
with the public, provided that it is kept in custody in a securities depositary
institution and the conditions stipulated to that end in Article 81 of the
Securities Exchange Act, are complied with.

         In the Special Meeting of Stockholders wherein the order to issue
unsubscribed stock is decreed, an express waiver shall be made of the right of
preference cited by Article 132 of the General Law of Mercantile Stock
Corporations (Ley General de Sociedades Mercantiles).

         If there is a quorum under the terms of the corporate bylaws, the
decision taken shall have full force and effect, being applicable to
stockholders who did not attend the Meeting, wherefore the Company shall be free
to place the stock among the public, without making the publication cited in the
article mentioned in the preceding paragraph. When a minority representing at
least 25% (twenty-five percent) of the voting capital stock votes against the
issuance of unsubscribed stock, such issuance may not take place.

         In the notification convening the Special General Meeting of
Stockholders, express mention shall be made that it is meeting for the purposes
established in Article 81 of the Securities Exchange Act, making especial
mention of the provisions of Section X of that same article.

         Any stockholder voting against resolutions in the Meeting shall have a
right to demand that the Company place his shares at the same price as the stock
covered by the issuance is offered to the public. The Company shall have the
obligation to place the stock pertaining to stockholders in disagreement first.

         ARTICLE NINE. The Corporation shall keep a Stock Register book in
accordance with Articles 128 (one hundred twenty-eight) and 129 (one hundred
twenty-nine) of the General Law of Mercantile Stock Corporations (Ley General de
Sociedades Mercantiles). Said book may be kept by the Secretary of the Board of
Directors of the Corporation, by an institution for the deposit of securities or
by a credit institution, or by the person appointed by the Board of Directors to
act as Recording Agent.

         The Stock Register book shall be kept closed from and including the
third working day preceding the holding of any Shareholders' Meeting up to and
including the date of that Meeting. During such periods no registration shall be
made in such Register.

         However, the Board of Directors may determine to close such Register
when it considers that convenient, with a longer previous term, and when it is
specified at the notice of the Meeting.

                                        7
<PAGE>

         The Corporation shall only consider as legitimate shareholders those
who may be identified as such in the Stock Register pursuant to Article 129 (one
hundred twenty-nine) of the General Law of Mercantile Stock Corporations or
pursuant to Article 68 (sixty-eight) of the Securities Market Law.

         Under the terms and effects of Article 130 of the General Law of
Mercantile Stock Corporations, it is established that the transfer of stock
issued by the Company, or of securities or instruments issued based on such
stock, may only be done upon authorization from the Board of Directors of if the
number of shares whose transfer is sought, in one act or in successive acts,
without limit of time, or from one group of interrelated stockholders or
stockholders who act in concert, equals ten percent (10%) or more of the voting
stock issued by the company. If the Board of Directors, under the terms of the
present article, denies the authorization, it shall appoint one or more
purchasers of the stock, who shall pay the interested party the prevailing price
on the stock exchange. In the case of stock not listed in the National Registry
of Securities and Brokers, the price paid shall be calculated pursuant to the
Aforementioned Article 130 itself.

         Each of the persons who participate in any manner in acts which violate
the provisions of the last paragraph, shall be obligated to pay a contractual
penalty to the Company in an amount equivalent to the price of all the stock,
securities or instruments representing the capital stock of the Company of which
they were, directly or indirectly, owners, or which had been subject to the
prohibited transaction, in the case of persons who have participated in the
transaction but who are not owners of the stock issued by the Company. If the
transactions that led to the acquisition of a percentage of stock, securities or
instruments representing the capital stock of the Company in excess of 10% (ten
percent) of the capital stock, were made under gratuitous title, the contractual
penalty shall be equivalent to the market price of such stock, securities or
instruments, provided that the authorization cited in the preceding paragraph
did not exist.

         While the Company holds the stock which it has issued, registered in
the National Securities Registry, the foregoing requirement, in the case of
transactions which are made through the securities market, shall also be subject
to such rules as may be established by the Securities Market Law or such as, in
accordance thereto, are issued by the National Banking and Securities
Commission. In addition, the persons or group of acquirers who obtain or
increase a material interest in the Company, without having first made an offer
pursuant to the provisions established in the general Rules applicable to
acquisitions of securities that must be disclosed and public offerings to
purchase securities, issued by the National Banking and Securities Commission,
may not exercise the corporate rights derived from the respective voting
securities, and the Company shall refrain from recording such stock in the
registry cited in Articles 128 and 129 of the General Law of Mercantile Stock
Corporations.

         In addition to the foregoing, a majority of the members of the Board of
Directors who have been elected to such position prior to the occurrence of any
circumstance which might imply a change of Control, shall grant his
authorization in writing through a resolution taken in a board meeting expressly
convened to that end under the terms of these bylaws, for a change of Control of
the Company to take effect.

                                        8
<PAGE>

         "Control" or "To Control" mean (i) to be the owner of the majority of
the common voting stock representing the capital stock of the Company or of
securities or instruments issued based on such stock; (ii) the authority to
make, directly or indirectly, management and policy decisions for the Company or
its subsidiaries; or (iii) the authority to veto important decisions on the
policies of the Company or its subsidiaries, either through ownership of voting
securities, by contract or in any other manner.

         The Board of Directors shall have a right to determine whether persons
are acting jointly or in a coordinated fashion for the purposes regulated in
this article. If the Board of Directors makes such a determination, the persons
in question shall be deemed a single person for the effects of this article.

         ARTICLE TEN. Those subsidiaries of the Corporation, according to the
such term defined in the generally accepted accounting in Mexico, should not,
directly or indirectly, invest in the capital stock of this Corporation or of
any other company in which the Corporation is a subsidiary, except in a case
that such companies in which the Corporation holds the majority of shares,
acquire shares of this Corporation, in order to comply with any options or plans
for the sale of shares granted or designed, or to be granted or designed for the
benefit of the employees or officers of said companies or this Corporation,
provided that the number of those shares does not exceed 25% (twenty-five
percent) of all outstanding shares of this Corporation.

         Transactions that depart from the ordinary course of business and which
would be entered into by and between subsidiaries of the Company and its
stockholders, with persons who form part of the management of the Company's
subsidiaries or with those with whom such persons maintain monetary ties or, if
applicable, have a family relationship of consanguinity or affinity up to the
second degree, a spouse or concubine; which represent the purchase or sale of
10% (ten percent) or more of assets; the granting of guaranties in an amount in
excess of 30% (thirty percent) of assets, as well as transactions other than the
foregoing which represent more than 1% (one percent) of the Company's assets,
shall be submitted for the opinion of the Company's Audit Committee and for
approval by the Company's Board of Directors.

                                   CHAPTER III

                   CANCELLATION OF THE REGISTRATION OF SHARES
                   ------------------------------------------
                    WITH THE NATIONAL REGISTRY OF SECURITIES
                    ----------------------------------------

         ARTICLE ELEVEN. While the Company's shares remain listed in the
Securities Section of the National Securities Registry, under the terms of the
Securities Market Law and the generally applicable rules of National Banking and
Securities Commission, in case of cancellation of the listing of the Company's
stock in the Securities Section of such Registry, shareholders who own the
majority of the common stock or who have the ability, under any title, to impose
decisions in the General Ordinary Meeting of Stockholders or to name a majority
of the members of the Company's Board of Directors, undertake to make a public
offer to purchase, prior to the cancellation, and in this case must follow the
provisions of Article 8, Section III of the "Provisions Applicable to Issuers of
Securities and Other Participants in the Securities Market," issued by the
National Banking and Securities Commission.

                                        9
<PAGE>

         The shareholders cited in the preceding paragraph shall have the
obligation to place in a trust for a minimum period of six months, the funds
required to purchase at the same price as the offer, the stock of shareholders
who did not participate in it, in the event that once the public offer to
purchase has taken place and prior to the cancellation of the listing in the
National Securities Registry, the aforementioned shareholders do not manage to
acquire 100% (one hundred percent) of the paid-in capital stock.

                                   CHAPTER IV

                   INCREASE AND DECREASE IN THE CAPITAL STOCK
                   ------------------------------------------

         ARTICLE TWELVE. Except for the provisions of Article Eight, Section VII
of these By-laws, the increases in the minimum fixed portion of the capital
stock of the Corporation without a right of withdrawal shall be carried out by
resolutions adopted at General Extraordinary Shareholders' Meetings, thereby
necessitating an amendment to Article Six of these By-laws. Increases in the
variable portion of the capital stock of the Corporation, within the limits
established in Article Six, shall be carried out by resolutions adopted in a
General Ordinary Meeting of the Shareholders. The documents containing
agreements to increase capital shall in all cases be notarized before a Notary
Public, except in the case of reductions in capital to exercise any
shareholder's right of withdrawal, or in cases of increases or decreases derived
from the acquisition of the company's own stock as cited in Section I of Article
14 Bis. 3 of the Securities Market Law, without a need, in the case of an
increase in the variable portion of the capital stock, to amend the corporate
bylaws, nor to record the corresponding notarized document in the Public
Property and Commercial Registry. Once the corresponding resolutions have been
adopted, the Shareholders' Meeting which votes on the increase, or in the case
of omission or delegation of such Meeting, the Board of Directors shall fix the
terms and conditions pursuant to which the increase in capital shall be
undertaken.

         All increases in the capital stock must be made by issuing shares in
such a way that the proportion of shares of each corresponding Series is
preserved, unless only shares with restricted voting rights or no voting rights
are issued subject to the authorization of the National Banking and Securities
Commission, or only Series "L" shares are issued, provided that at no time may
Series "L" shares exceed the maximum referred to in Article Six of these
By-Laws.

         Shares issued representing the variable portion of the capital stock or
the minimum fixed portion of the capital stock based upon the provisions of
Article 81 of the Securities Market Law, in the latter case and which, by
resolution adopted at a Shareholders' Meeting which approves their issuance,
should remain deposited in the Corporation's treasury to be delivered as the
subscription therefore is completed; such shares may be offered for subscription
and payment by the Board of Directors, or as the case may be, the Executive
Committee of the Board, subject to the procedures determined by the
Shareholders' Meeting and the provisions of this Article. In any event, the
preferential right described in the following paragraph of this Article must be
granted to the Corporation's shareholders, unless: (i) the offer of the shares
is subject to the provisions of Article 81 of the Securities Market Law, (ii) a
merger of the Corporation exists, (iii) it involves the issuance of shares from
the treasury for the conversion of bonds pursuant to Article 210 Bis of the
General Law of Negotiable Instruments and Credit Transactions (Ley General de
Titulos y Operaciones de Credito), or, in the cases of placement of shares
acquired pursuant to Article 14 Bis. 3 of the Securities Market Law.

                                       10
<PAGE>

         Increases in capital stock may be implemented under any of the cases
referred to in Article 16 of the General Law of Mercantile Stock Corporations
(Ley General de Sociedades Mercantiles), by means of payment in cash or in kind,
or through the capitalization of the Corporation's liabilities or any other
capital account. Since the share certificates of the Corporation's capital stock
have no par value, it will not be necessary to issue new certificates in the
case of increases in the capital resulting from the capitalization of premiums
on stock, capitalization of retained earnings or capitalization of valuation or
revaluation reserves. In the event of capital increases by means of payment in
cash or in kind or by capitalization of the Corporation's liabilities, the
shareholders holding outstanding existing paid-up shares shall have preemptive
rights to subscribe to a number of any new shares issued or put into circulation
to represent such increase, in proportion to the number of shares held by them
within the respective Series or, in the event of capital increases solely
through shares with restricted voting rights, without voting rights or preferred
stock, or with limited voting rights, shall have preemptive rights to subscribe
to the new shares which may be issued or put into circulation to represent such
increase, in order to maintain the proportion of the number of shares of which
they are holders within the capital stock, for a term of fifteen days commencing
on the date of publication of the corresponding notice in the Official Gazette
of the Federation or the official gazette of the domicile of the Corporation, or
commencing on the date of the Shareholders' Meeting in the case in which all of
the shares into which the Corporation's capital stock is divided would have been
represented at such Meeting.

         In the case of shares representing the variable portion of the capital
stock which by resolution adopted by the Shareholders' Meeting would have
remained deposited in the Corporation's treasury for subscription and payment at
a later date, the shareholders shall have a preferential right to subscribe to
them once the same have been offered for subscription and payment, unless the
shareholders were granted a preferential right at the time the increase was
approved and such right was not exercised by the shareholders or in the case
stipulated in Article 81 of the Securities Market Law.

         No new shares may be issued until all outstanding shares shall have
been fully paid.

         In the event that after the expiration of the term during which the
shareholders could have exercised the preemptive right granted to them in this
Article there are still shares pending subscription, such shares may be offered
for subscription and payment to any natural person or corporation pursuant to
the conditions and terms determined by the Meeting which decreed the increase in
the capital stock, or according to the terms provided for by the Board of
Directors or Delegates designated by the Meeting for such purposes, provided
that the offering price for the shares to third parties may not be less than
that which was offered to the shareholders of the Corporation for subscription
and payment.

         All increases in the capital stock must be registered in the capital
variations book which is kept for said purpose by the Corporation.

                                       11
<PAGE>

         With respect to any increase in capital by subscription and payment in
cash or in kind, the Company shall not be obligated to have registered the
shares of any series, the joint units which group them or any foreign securities
which represent either type, with authorities other than authorities for the
financial system of the Mexican United States and, accordingly, the Company
shall not be obligated to accept the subscription and payment made by
shareholders if said acceptance results in an obligation for the Company.

         ARTICLE THIRTEEN. The capital stock may be decreased by resolution of a
General Ordinary Shareholders' Meeting, acting in accordance with the terms of
this Article, such as: (i) in the event any holder of shares of the variable
portion of the capital stock of the Corporation wishes to exercise the right of
withdrawal mentioned in Articles 213 and 220 of the General Law of Mercantile
Stock Corporations (Ley General de Sociedades Mercantiles), or (ii) in the case
of separation referred to in Article 206 of such law, or (iii) as a consequence
of the purchase of shares pursuant to Section I of Article 14 Bis. of the
Securities Market Act. Decreases or reductions in the minimum fixed capital of
the Corporation shall require a resolution adopted at a General Extraordinary
Shareholders' Meeting and the related amendment to Article Six of these By-laws,
in which case the matters set forth in Article 9 of the General Law of
Mercantile Stock Corporations (Ley General de Sociedades Mercantiles) must be
satisfied unless the reduction in capital is implemented in order to absorb
losses only. Decreases in the variable portion of the Corporation's capital may
be accomplished by resolution of a General Ordinary Shareholders' Meeting with
the only formality required being that the resolution be protocolized before a
Notary Public or Public Broker but without the necessity of recording the
respective deed in the Commercial Public Registry.

         Reductions of capital stock may be made to absorb losses, to reimburse
shareholders for their capital contributions or to exempt or free such capital
from obligations not implemented or realized, as well as for the reasons
provided in Articles 206 (two hundred and six) and 220 (two hundred and twenty)
of the General Law of Mercantile Stock Corporations (Ley General de Sociedades
Mercantiles) and in Section I of Article 14 (fourteen) Bis of the Securities
Market Law.

         In the event that, under the terms of Section 1 of Article 14
(fourteen) Bis of the Securities Market Law, the Corporation had acquired the
stock exchange shares representing its own capital, the Corporation shall
proceed to the resulting reduction of its capital on the same date as the
acquisition, in conformity with the terms of such Article.

         Reductions of capital to absorb losses or pursuant to reimbursement of
shareholders shall be effectuated on a proportional basis between the fixed and
variable portions of the Corporation's capital, with the purpose of ensuring
equality among the shareholders without being necessary to cancel the relevant
stock certificates since the shares of the capital stock do not have per value.
However, in the event that the General Ordinary Shareholders Meeting so resolves
in the event of a reduction of capital in connection with the reimbursement of
shareholders, the designation of the shares to be redeemed shall be selected by
lot before a Notary Public or a public broker, including in such drawing all of
the shares of the fixed minimum portion of the capital and variable portion of
the capital.

                                       12
<PAGE>

         No approval of the General Ordinary Shareholders' Meeting shall be
required in those cases where capital is reduced as a consequence of the
exercise by a shareholder owning a portion of the variable capital of his right
to withdraw totally or partially his capital contributions in accordance with
Articles 220 (two hundred and twenty) and 221 (two hundred twenty-one) of the
General Law of Mercantile Stock Corporations (Ley General de Sociedades
Mercantiles). The withdrawal will take effect on the last day of the fiscal year
in progress, if notice of the exercise of such right is given prior to the end
of the third quarter of such year, or on or before the end of the next fiscal
year if such notice is given at any time after the end of the third quarter. The
reimbursement of the stock subject to withdrawal shall be made that the lower of
the following prices: 95% (ninety-five percent) of the quoted market price,
obtained from the average of transactions that have been executed during the 30
(thirty) days in which the Company's stock has effectively been traded, prior to
the date on which the withdrawal should take effect, or if the number of days on
which the Company's stock has effectively traded is less than 30 (thirty) days,
the days on which the stock had effectively been traded shall be taken; or, (ii)
the book value of the stock, pursuant to the corresponding general balance sheet
approved by the Regular Meeting of Stockholders corresponding to the fiscal year
immediately prior to the withdrawal's taking effect.

         The payment of the reimbursement shall be enforceable against the
Company starting on the day after the date the Regular Meeting of Shareholders
that approved the general balance sheet corresponding to the corporate fiscal
year in which the withdrawal took effect, took place.

         In no event may the capital be reduced to less than the minimum
required by law and all reductions of capital shall be registered in Stock
Variation Book, which shall be maintained by the Corporation for such purpose.

         ARTICLE FOURTEEN. The Corporation may redeem shares with distributable
proceeds without decreasing its capital stock. The General Extraordinary
Shareholders' Meeting which adopts a resolution approving the redemption shall
comply with the following rules, in addition to those set forth in Article 136
(one hundred thirty-six) of the General Law of Mercantile Stock Corporations
(Ley General de Sociedades Mercantiles):

         I.       The Meeting may agree to redeem shares of all the shareholders
                  proportionately, provided that after giving effect to such
                  redemption, the shareholders shall have the same percentages
                  with regard to the capital stock and stock participation as
                  before such redemption, without the necessity of canceling
                  stock certificates since they do not express their par value
                  and without the necessity of designating the shares to be
                  redeemed to be selected by lot, notwithstanding that the
                  Meeting may have set a fixed price.

         II.      When the redemption of shares is implemented through
                  acquisition on a stock exchange, the Shareholders' Meeting or
                  the Board of Directors or the Executive Committee, as the case
                  may be, will determine the manner of redeeming the shares, the
                  number of shares which shall be redeemed and the person
                  appointed as purchasing agent or broker at the stock exchange.

         III.     Except as provided in Section II above, in the event that the
                  Shareholders' Meeting shall have fixed a price for the
                  redemption, the shares to be redeemed shall be designated in
                  all events by means of lot before a notary public or a public
                  broker, which drawings shall be separately conducted with
                  respect to each series of stock in such a way that shares from
                  each series of stock shall be proportionately redeemed in such
                  a way that the percentage of each series shall remain the same
                  before and after such redemption. The certificates evidencing
                  the shares redeemed in the case referred to in this Section
                  III shall be canceled.

                                       13
<PAGE>

         At no time may shares be redeemed in such a way that circulating Series
"L" shares exceed the maximum to which Article Six of these By-laws refers.

         ARTICLE FIFTEEN. Share certificates or provisional certificates
representing the shares may cover one or more shares and shall contain the
mention referred to in Article 125 of the General Law of Mercantile Stock
Corporations (Ley General de Sociedades Mercantiles) and any applicable
provisions; said certificates shall indicate the corresponding Series and Class
and shall contain the text of Article Five of these By-laws. The share
certificates or provisional certificates shall be signed by two members of the
Board of Directors.

         The signatures of the above-mentioned directors may be in original or
facsimile form, provided, in the latter case, that the originals of the
respective signatures are deposited at the Public Registry of Commerce of the
corporate domicile. In the case of share certificates, the numbered registered
dividend coupons determined by the Board of Directors must be attached thereto
to cover the payment of dividends or the exercise of other rights, as determined
by a Shareholders' Meeting or the Board of Directors.

         A General Extraordinary Shareholders' Meeting may establish that
certain or all of the Company's shares, of any series, be covered by joint
units, which, without being certified as participating non-redeemable common
shares, represent units and contain only Series "B" shares or Series "B" shares
and Series "L" shares. With respect to the above-mentioned, the Company's
capital stock may be represented by "BB" joint units, which shall represent the
number of shares, to be determined by a Shareholders' Meeting, from Series "B"
and "BL" joint units, which shall cover the number of Series "B" shares and
Series "L" shares to be determined in a Shareholders' Meeting. The Company shall
only record in the shareholders' registry the shares representing the joint
units which, as the case may be, are issued.

         The holders of joint units may, at their choice, starting on the tenth
year as of the date of payment of the first public offering of joint units,
request the Company to separate the joint units. With respect to the foregoing,
once the above-mentioned term expires, the Company may deliver to the holders of
joint units which request in writing from the Company, the certificates
representing the shares which represent the joint units. Any holder of joint
units which may have exercised the conferred right may request the Company to
regroup the shares, provided that the regrouping of shares be in the same
proportion as the joint units.

                                    CHAPTER V

                             SHAREHOLDERS' MEETINGS
                             ----------------------

         ARTICLE SIXTEEN. The General Shareholders' Meetings shall be
Extraordinary or Ordinary. All other meetings shall be Special Meetings of the
Shareholders.

                                       14
<PAGE>

         General Extraordinary Meetings shall be those called: (i) to deal with
any of the matters indicated in Article 182 (one hundred eighty two) of the
General Law of Mercantile Stock Corporations (Ley General de Sociedades
Mercantiles), (ii) to resolve the cancellation of the listing of the shares of
the Corporation or the securities that represent them in the Securities Section
of the National Registry of Securities and in other Mexican stock exchanges or
foreign securities exchange markets where they are registered except for
quotation systems or other markets not organized as stock exchanges; and (iii)
to agree to the amendment of Article Eleven of these By-laws. All other General
Meetings will be Ordinary Meetings.

         Special Meetings shall be those held to deal with matters that may
affect the rights of a single Series of shares and shall be subject to the
provisions applicable to Extraordinary Meetings.

         Likewise, Special Meetings will be those held by Series "L"
shareholders in order to choose two members of the Board of Directors pursuant
to the terms of clause 3 of Section II of Article Seven of these By-laws. These
and those called to approve the cancellation of the registration of the Series
"L" shares of the Corporation in the Securities Section of the National Registry
of Securities and in other national and international stock exchanges in which
they are registered, except quotation systems or other marks not organized as
stock exchanges, shall be governed by the provisions of these By-laws and the
General Corporate Law, and by the General Ordinary Meetings upon second notice
with respect to quorum requirements, adoption of resolutions and other relevant
aspects.

         ARTICLE SEVENTEEN. The notices for Shareholders' Meetings shall be made
by the Board of Directors, by the President or the Secretary of the Board of
Directors, or by the Examiner or, by legal authority. In any event, the holders
with the right to vote, including the limited form or the restricted form
representing at least 10% (ten percent) of the capital stock, shall be able to
request that a General Meeting of Shareholders is held pursuant to the article
184 of the General Corporate Law. If the request is not complied with within the
fifteen days following the date of the request, a Civil or District Judge of the
domicile of the Corporation shall do it at the petition of the interested
parties representing the 10% (ten percent) of the relevant capital, who shall
display their share certificates for this purpose.

         Any shareholder holding a single common or ordinary share and any
Series "L" shareholder on matters relating to the designation of directors
pursuant to subsection 3 of Section II of Article Seven of the By-laws, may
solicit the holding of a General Ordinary Shareholders Meeting upon the terms of
Articles 168 and 185 of the General Corporate Law.

         ARTICLE EIGHTEEN. Notices of the Meetings shall be published by the
means of notice in the Official Gazette of the Federation or in one of the
dailies with major circulation in the domicile of the Corporation, at least
fifteen calendar days before the date settled for the Meeting. The Notices shall
contain the date and the place of the meeting, Agenda for the Meeting and shall
be signed by the person or persons effecting the Notice, it being understood
that if the Board of Directors gives the Notice, the signature of the President
or of the Secretary or of the Alternate Secretary or of the person designated by
the Board of Directors among its members, or of the Examiner, to call the
Meeting shall suffice. Since the publication of the notice to hold the
Shareholder Assembly, the information and available documents relating to each
of the points established at the Agenda of the Meeting shall be available
immediately and free of charge to the shareholders. The meetings may be held
without notice in the case in which all of the shares representing the capital
of the Corporation shall be present to vote. When meetings are held to vote upon
matters in which holders of Series "L" Shares are not entitled to vote such
meetings may be held without prior notice if all of the ordinary and common
shares are represented at the time of voting.

                                       15
<PAGE>

         If at a Meeting, be it Ordinary, Extraordinary or Special, all the
shareholders are gathered, such Meeting shall be able to make decisions by
unanimous vote with respect to matters of any kind, including those not included
in the respective Agenda.

         ARTICLE NINETEEN. Shareholders registered in the Stock Registry Book
maintained by the Corporation as holders of one or more shares thereof shall be
the only shareholders admitted to the Meeting. Said Registry shall be closed
three days before the date fixed for the holding of the Meeting.

         To attend the Meetings, the shareholders must display their respective
admission cards which will be issued at the request of holders of shares; the
request must be submitted at least twenty-four hours before the time fixed for
the holding of the Meeting, together with the deposit, in the Secretary's Office
of the Corporation, of the respective share certificates or the deposit
certificates issued by an institution for the deposit of securities, by a credit
institution, either Mexican or foreign, or by brokerage houses upon the terms
provided in the Securities Market Act. Shares deposited in order to be entitled
to attend Meetings shall not be returned until after the Meetings have been
held, by way of the delivery of the certificate which shall be issued to the
shareholder in exchange therefor.

         ARTICLE TWENTY. Shareholders may be represented at the Meetings by the
person or persons they may appoint by means of a proxy signed before two
witnesses. In addition, the shareholders may be represented at the Meetings by
means of agents appointed through power granted by forms prepared by the
Corporation that (i) show the name of the Corporation, same as the Order of the
Day, without including under the heading of the general matters the points to
which the articles 181 and 182 of the General Law of Mercantile Stock
Corporations (Ley General de Sociedades Mercantiles) refer to, and (ii) contain
space for the instructions pointed out by the person for the exercise of power.

         The Corporation should maintain the disposal of intermediaries of the
securities market who count with the shareholders representation of the
Corporation, during the period referred to in the article 173 of the General Law
of Mercantile Stock Corporations (Ley General de Sociedades Mercantiles), the
forms of the powers, with the purpose of delivering them with opportunities to
its representatives.

         The Secretary of the Board of Directors of the Corporation shall be
obligated to assure the observance of what was arranged previously and shall
inform the Shareholders' Assembly about this, which in turn shall mention it in
the respective minutes.

         ARTICLE TWENTY-ONE. The minutes of the Shareholders Meetings shall be
kept in a "Book of Minutes of Meetings of Shareholders" maintained by the
Corporation for such purpose and shall be signed by the Chairman and the
Secretary of the Meeting as well as by the attending Statutory Auditors.

                                       16
<PAGE>

         ARTICLE TWENTY-TWO. The Meetings shall be presided over by the Chairman
of the Board of Directors and in his absence, by the Vice-Chairman of the Board,
or if there is more than one Vice Chairman by the one designated by the Meeting.
In their absence, the Meetings shall be presided over by the person appointed by
the shareholders present, by majority vote.

         The Secretary of the Board of Directors shall act as Secretary at the
Shareholders' Meetings and in his absence, the person appointed for such purpose
by the shareholders in attendance by majority vote shall act as such. The
Chairman shall appoint two or more Examiners from among those present to count
the attending shares.

         Voting at shareholders meetings shall be economic unless upon motion of
some shareholder, the Meeting by majority vote of those present shall resolve
that votes computed be taken by voting ballot.

         Stockholders with voting shares, including limited or restricted voting
shares, which represent at least 10% (ten percent) of the stock represented in a
Meeting of Stockholders, may request adjournment of a vote on any manner with
respect to which they do not consider themselves sufficiently informed, pursuant
to the terms and conditions indicated in Article 199 of the General Law of
Mercantile Stock Corporations (Ley General de Sociedades Mercantiles).

         Stockholders with voting shares, including limited or restricted voting
shares, which represent at least 20% (twenty percent) of the capital stock, may
legally challenge the resolutions of General Meetings of Stockholders, with
respect to which they have voting rights, provided that the requirements of
Article 201 of the General Law of Mercantile Stock Corporations (Ley General de
Sociedades Mercantiles) have been satisfied, Article 202 of such act being
equally applicable.

         Likewise, stockholders representing at least 15% (fifteen percent) of
the capital stock, may take direct action for civil liability against directors,
provided that the requirements established in Article 163 of the General Law of
Mercantile Stock Corporations (Ley General de Sociedades Mercantiles), are
satisfied. Such action may also be taken with respect to the Trustees and
members of the Audit Committee, in accordance with the aforementioned legal
precept.

         ARTICLE TWENTY-THREE. General Ordinary Shareholders' Meetings shall be
held at least once a year within the four months following the end of each
fiscal year. In addition to addressing the matters contained in the Agenda,
Meetings must: (1) discuss, approve or amend and resolve everything related to
the report of the Board of Directors regarding the financial position of the
Corporation and all other accounting documents, including the report of the
Examiner, under the terms of Article 172 of the General Corporate Law
considering the report of the Examiners; (2) resolve on the application of
profits, if any; and (3) appoint the members of the Board of Directors, the
Examiners and their Alternates and the members of the Executive Committee, and
determine their compensation.

                                       17
<PAGE>

         Extraordinary Meetings shall meet whenever any of the matters that it
is authorized to act upon must be addressed.

         The Special Meetings of the Series "L" shareholders which shall
designate two members of the Board of Directors shall meet at least once each
year.

         The other Special Shareholders' Meetings of whatever shares the capital
of the Corporation may be divided into shall meet on the occasions specified in
Article 195 of the General Corporate Law.

         ARTICLE TWENTY-FOUR. In order for a General Ordinary Shareholders'
Meeting to be legally held by virtue of the first notice therefore, not less
than 50% (fifty percent) of the ordinary and common shares into which the
capital of the Corporation is divided must be represented at such meeting; and
resolutions adopted at such meeting shall be valid when adopted by a majority of
the common and ordinary shares.

         In the case of second notice, the General Ordinary Shareholders'
Meetings may be validly held whatever the number of common or ordinary shares
represented at the Meeting and the resolutions of such meeting shall be valid if
they are adopted by a majority of the common and ordinary shares voting at such
meeting.

         ARTICLE TWENTY-FIVE. For Extraordinary or Special Shareholders'
Meetings the following rules will apply:

         I.       In order for an Extraordinary Shareholders' Meeting to deal
                  with matters in which Series "L" shares shall have no right to
                  vote, such meeting shall be legally convened on first notice
                  if at least 75% of the common and ordinary shares are
                  represented and resolutions of such Meeting shall be legally
                  adopted if approved by not less than 50% of the common and
                  ordinary shares into which the capital of the Corporation is
                  divided. In the case of a second or subsequent notice, the
                  Extraordinary Shareholders Meeting to deal with matters upon
                  which the Series "L" shares do not vote, such meetings shall
                  be legally convened if at least 50% of the common and ordinary
                  shares are represented at such meeting and resolutions of such
                  meeting shall be legally adopted if approved by not less than
                  50% of the common and ordinary shares of the capital stock.

         II.      In order for a General Extraordinary Shareholders' Meeting to
                  be validly convened to deal with any matter upon which the
                  Series "L" shares do have the right to vote, in the case of a
                  first notice, not less than 75% of the capital of the
                  Corporation shall be represented and in addition to that
                  provided for in Section III below, resolutions shall be
                  adopted at such meeting if adopted by shares representing not
                  less than 50% of the Corporation's capital. In the case of
                  second and subsequent notices, Extraordinary General
                  Shareholders' Meetings convened to deal with matters upon
                  which Series "L" shares may vote shall be duly convened if not
                  less than 50% of the Corporation's capital shall be
                  represented, and resolutions shall be adopted by such meeting
                  if adopted by not less than 50% of the Corporation's capital
                  subject to the provisions of Section III below.

                                       18
<PAGE>

         III.     In order for resolutions adopted at Extraordinary
                  Shareholders' Meetings called by virtue of the first or
                  subsequent notices to deal with matters for which Series "L"
                  shares have the right to vote to be valid it shall be required
                  that in addition to that set forth in Section II above that
                  such resolutions be approved by a majority of the common and
                  ordinary shares into which the capital of the corporation is
                  divided. Similarly, the approval of the Special Series "L"
                  Shareholders' Meeting shall be required with respect to the
                  cancellation of the registration of the Series "L" Shares in
                  the Securities Section of the National Registry of Securities
                  and of the securities exchanges whether foreign or national in
                  which such shares are registered, except with respect to
                  quotation systems or other markets which are not organized
                  exchanges.

         IV.      For Special Meetings of Shareholders, other than those
                  indicated in Section V below, the same rule provided in
                  Section I above of this Article will be applied but with
                  reference to the special category of shares involved.

         V.       Special Meetings of Shareholders held by the Series "L"
                  Shareholders, with the purpose of:

                  1.       Elect the two members of the Board of Directors
                           pursuant to the provisions of these By-laws; and

                  2.       Approve the cancellation of the registration of the
                           Series "L" shares in the Securities Section of the
                           National Registry of Securities and on the stock
                           exchanges whether national or foreign in which such
                           securities are registered, other than quotation
                           systems and other markets which are not organized
                           exchanges;

                  shall be governed by the matters set forth in these By-laws
                  and in the General Corporate Law, and by the General Ordinary
                  Shareholders' Meeting on second notice with respect to quorum,
                  adoption of resolutions and other matters.

                                   CHAPTER VI

                          MANAGEMENT OF THE CORPORATION
                          -----------------------------

         ARTICLE TWENTY-SIX. The administration of the Corporation shall be
entrusted to a Board of Directors, consisting of an odd number of members, not
less than 15 (fifteen), to be determined by the General Ordinary Shareholders'
Meeting. Such Meeting may appoint alternate members equal to the number of
regular members that it may appoint and, if the Meeting appoints alternate
members, it shall have the power to determine the manner in which the alternates
may substitute for the regular members; unless otherwise provided by the
Meeting, any alternate member may substitute for any of the regular members
except for those alternates appointed by Series "L" shareholders, who shall only
be able to replace the regular members appointed by holders of such Series.

                                       19
<PAGE>

         The appointment or election of the members of the Board of Directors
shall be made by the Ordinary Shareholders' Meeting by majority of votes and two
members and their respective alternates designated by the majority of Series "L"
Shares will be added to the number of members designated by the holders of
common or ordinary shares.

         Shareholders representing at least twenty percent of the outstanding
capital stock represented by common or ordinary shares shall have the right to
designate one member and one alternate, who shall only be permitted to replace
such member; provided however, that such percentage shall be 10% (ten percent)
of the common or ordinary shares in the event that the shares of the Corporation
are registered on a stock exchange. Once such minority designations have been
made, the Meeting shall determine the total number of members which shall
constitute the Board of Directors and shall designate the remaining members of
the Board by simple majority of votes of the common or ordinary shares, without
counting the votes corresponding to those shareholders having exercised the
minority voting right referred to in this paragraph.

         ARTICLE TWENTY-SEVEN. Members of the Board of Directors may or may not
be shareholders; they shall hold the position for one year; they may be
reelected or have their appointment revoked at any time and, even in the case of
members designated by the Series "L" shareholders or shareholders exercising
their minority voting rights, they shall receive payment as determined by the
General Ordinary Shareholders' Meeting.

         Notwithstanding the foregoing, they shall continue carrying out their
functions, even when the term of their appointment has ended, until new
appointments have been made and the persons named as new members have taken
office.

         Neither the members of the Board of Directors and their Alternates, the
Statutory Auditors and Alternates, the members of the Executive Committee nor
the administrators and managers shall furnish guarantees to secure the
fulfillment of responsibilities in which they may incur in the performance of
their duties, unless the Shareholders' Meeting that appointed them establishes
such an obligation.

         For the effects of the Securities Market Law, and without prejudice to
its not requiring the inclusion in the corporate bylaws of the requirements
indicated below, in terms of the Board of Directors the following shall also be
performed:

         I.       The Board of Directors shall be comprised of at least 5 (five)
                  and no more than 20 (twenty) full directors.

         II.      At least 25% (twenty five percent) of the members of the board
                  of directors shall be independent in terms of the provisions
                  of Article 14 Bis. 3 of the Securities Market Law.

         III.     For each board member shall be designated a respective
                  substitute, with the understanding that the substitute board
                  members of the independent board members, should be of the
                  same nature.

         IV.      The report of the Audit Committee shall be presented at the
                  shareholders' meeting.

                                       20
<PAGE>

         ARTICLE TWENTY SEVENTH SECOND. Notwithstanding the obligation of the
Company to comply with the principles established in the fourth paragraph and
its sections, of Article Twenty-Seventh of the present bylaws, and while such
Article remains in effect, failure to follow the provisions in such paragraph
and its sections, for any reason, shall not cause or grant a right to third
parties to challenge the lack of validity, in terms of legal acts, contracts,
resolutions, agreements or any other act entered into by the Company by means of
or through its Board of Directors or any other intermediate organ, delegate,
mandatory or agent, nor shall they be deemed requirements for the validity or
existence of such acts.

         ARTICLE TWENTY-EIGHT. Unless expressly appointed by the Shareholders'
Meeting, the Board of Directors, in its first Session immediately following the
Shareholders' Meeting which appointed its members, shall appoint from among its
members a Chairman, who shall under all circumstances be of Mexican nationality
and, if considered convenient, one or more Vice-Chairmen. The Board of Directors
shall also, if the Shareholders' Meeting fails to do so, appoint a Secretary and
an alternate Secretary, who need not be members of the Board of Directors. The
Board may also appoint such persons to occupy such offices as it shall deem
necessary in order to best perform its functions. The temporary or permanent
absence of members of the Board of Directors shall be covered by the respective
alternates as determined by the General Ordinary Shareholders' Meeting, except
the alternates appointed by the Series "L" shareholders, which shall only
replace the members appointed by such Series.

         The Chairman of the Board shall preside over the Shareholders' Meetings
and the sessions of the Board of Directors and Executive Committee,
respectively; and shall carry out and execute the agreements of the
Shareholders' Meetings, the sessions of the Board of Directors and of the
Executive Committee, respectively, without the need for any special resolution.
In the absence of the Chairman, such meetings and sessions shall be presided
over by one of the Vice-Chairmen in order of election or, in the absence of all
of these, by a member of the Board chosen by majority vote of those present. In
case all Board members are absent from a Shareholders' Meeting, such meeting
shall be presided over by the person designated by such meeting by a simple
majority of votes. The person presiding over the Shareholders' Meetings shall
appoint one or more counters to make a count of the shares represented. The
entity referred to herein shall also be permitted to appoint other special
delegates for such reasons, which may be persons with no ties whatsoever to the
Corporation.

         The Secretary of the Board of Directors shall act as Secretary of the
Shareholders' Meetings and, in his absence, his alternate shall occupy such
position. In the absence of both, the person who, at the suggestion of the
person presiding at the meeting, the meeting shall designate by a simple
majority of votes, shall act as Secretary. This shall apply equally to sessions
of the Board of Directors and of the Executive Committee, as the case may be.

         Copies of the minutes of the Board of Directors, of the Executive
Committee and of the Shareholders' Meetings, as well as of the entries contained
in the books and social registers and, in general, of any archival document of
the Corporation, may be authorized and certified by the Secretary or his
alternate, who will have the titles of Secretary and Alternate Secretary of the
Corporation, and will be permanently empowered to appear before the Notary
Public of their choice to protocolize the agreements contained in the minutes of
the sessions or meetings of such entities, without need for express
authorization. The Secretary shall be in charge of editing and setting forth in
the respective books the minutes containing the agreements of the Shareholders'
Meetings, sessions of the Board of Directors and of the Executive Committee, as
well as issuing certifications of the same and of the appointments, signatures
and powers of the officers and agents of the Corporation.

                                       21
<PAGE>

         ARTICLE TWENTY-NINE. In case that the General Ordinary Shareholders
Meeting resolved it, the Corporation may count, as an intermediary
administrative organ, with an Executive Committee formed by an odd number of
members and alternates appointed by the General Ordinary Shareholders' Meeting
among the members or alternates of the Board of Directors of the Corporation,
which shall always act as a "collegial body". The members of the Executive
Committee shall hold their positions for one year, but in any event, they shall
continue holding office until the persons appointed to substitute them take
office; they may be reelected and shall receive fees determined by the General
Ordinary Shareholders' Meeting.

         The Executive Committee shall meet on the dates and with the frequency
that it determines in the first session held during each fiscal year, without
being necessary to summon its members to each meeting if such meeting was
previously scheduled according to the calendar of meetings approved by the
Committee.

         Additionally, the Executive Committee shall meet as determined by the
Chairman, any two of its members or the Statutory Auditor, by a previous 3
(three) days' notice to all members of the Committee and to the necessary
alternates, the attendance of the Statutory Auditor, who shall attend with the
right to speak but without the right to vote, shall be required in order to
convene such meeting. The notice of the meeting shall be sent by mail, telegram,
telefax, courier or any other method which assures that the members of the
Committee receive notice at least three days in advance. The notice of the
meeting may be signed by the Chairman or the Secretary of the Board of Directors
of the Corporation, or by the alternate Secretary, who shall hold such positions
on the Executive Committee as well. The Executive Committee may meet at any
time, without prior notice, if all of its members are present.

         In order for the sessions of the Executive Committee to be considered
legally convened, the attendance of at least the majority of its members shall
be required. The resolutions of the Executive Committee must be approved by the
favorable vote of the totality of its members present at each session. In case
of a tie, the presiding member shall cast the deciding vote. If it is impossible
to take a resolution of proposed to the Executive Committee it will be submitted
to the Board of Directors.

         The Executive Committee shall have the authorities granted to the Board
of Directors under items I, II, III, V, VI, VII, XI, XIII and XIV of Article
Thirty-Three of these By-laws.

         The Executive Committee shall not carry out those activities reserved
by law or by these By-laws to the Shareholders' Meeting or to the Board of
Directors. The Executive Committee may not, in turn, delegate its authorities to
any person, but it may grant general and special powers-of-attorney when deemed
convenient and appoint the persons to carry out its resolutions. The Chairman
and, as the case may be, the Vice-Chairman shall be authorized to carry them out
individually without the need for express authorization.

                                       22
<PAGE>

         The Executive Committee must inform the Board of Directors annually
about its activities, or when in its opinion acts or facts of importance to the
Corporation arise. Minutes, which shall be transcribed in a special book, must
be drafted for every Meeting of the Executive Committee. The minutes must
evidence the attendance of the members of the Committee and the resolutions
passed, and the persons who acted as Chairman and Secretary must sign such
minutes.

         ARTICLE THIRTY. The Board of Directors shall meet at least every three
(3) months at the corporate domicile or at any other location in the Mexican
Republic chosen for this purpose and on the dates determined by the Board,
without the necessity to convene its members on each occasion or session which
is being held according to the calendar of sessions approved by the Board. These
sessions shall be called by at least 25% (twenty-five percent) of the members of
the Board of Directors, by the Chairman, by the Vice-Chairman or by any of the
Commissioners of the Company, or by the Secretary or by the Alternate Secretary
of aforementioned group.

         Additionally, the Board of Directors shall always meet whenever they
are requested to, notified to them either by a written or electronic
notification no less than five (5) days, by the Chairman, Vice-Chairman, or at
least 25% of the Directors or by one of the Commissioners, Secretary or
Alternate Secretary of the aforementioned group. The Commissioners shall be
summoned to all the Sessions of the Board of Directors, to which they have the
authority to speak but not to vote.

         The Board of Directors shall meet at any time, without previous notice,
in the case in which all the members are present.

         The meetings for the Sessions of the Board of Directors shall contain
the Order of the Day, which the respective meeting shall abide. For the sessions
of the Board of Directors to be considered legal, the majority of its members
shall be present and its resolutions shall be valid when all the votes of the
members present in the Session are taken into account. In case of a tie, the
Chairman of the Board of Directors, or the Vice-Chairman, will have the vote.

         The meetings of the Board of Directors shall be held at the corporate
domicile or in any other place previously authorized by the Board of Directors,
except in the event of an accident or an Act of God.

         The minutes containing the agreements of the Board of Directors shall
be authorized by those who acted as Chairman and Secretary of the corresponding
meeting and such minutes shall be registered in a specific book kept by the
Corporation for such reason.

         ARTICLE THIRTY-ONE. In accordance with the last paragraph of Article
143 (one hundred forty three) of the General Law of Mercantile Stock
Corporations (Ley General de Sociedades Mercantiles), the Board of Directors may
validly declare resolutions without the need for a formal, personal meeting of
its members; the Executive Committee may also act in this way. The agreements
made out of session shall be approved, in all cases, by the favorable vote of
all members of the relevant organ or, in case of definitive absence or
incapacity of any of them, with the favorable vote of the corresponding
alternate member, in accordance with the following provisions:

                                       23
<PAGE>

         I.       The Chairman, by his own initiative or at the request of the
                  Statutory Auditor or any two members of the Board of Directors
                  or of the Executive Committee shall notify, orally or in
                  writing and in the manner he deems convenient, all members or,
                  if necessary, alternates of the relevant organ and the
                  Examiner of the agreements intended to be taken out of session
                  and the reasons justifying such agreements. Likewise, the
                  Chairman shall give all of them, if requested, all
                  documentation and clarifications required with respect
                  thereto. The Chairman may, in his discretion, be assisted by
                  one or more members of the Board or the Committee or by the
                  Secretary or his alternate in order to carry out such
                  notifications.

         II.      In the case that all members of the Board or of the Executive
                  Committee or as the case may be if relevant, the alternates
                  whose votes are required, orally declare to the Chairman or to
                  the members assisting him, their consent to the agreements or
                  resolutions submitted for consideration, they shall confirm
                  such consent in writing by the second business day following
                  the date on which they declared in the form established in the
                  following Section III. The written confirmation shall be sent
                  to the Chairman and the Secretary by mail, telex, telefax,
                  telegram or courier, or by any other means that will guaranty
                  receipt of the notice within the next two business days.

         III.     With respect to Section II above, the Chairman shall send to
                  each of the members of the relevant organ, in writing, either
                  directly or through the persons assisting him, a formal draft
                  of the minutes containing the agreements or resolutions
                  intended to be adopted out of session and any other
                  documentation deemed necessary so that, as soon as the
                  required modifications are made, the draft of the relevant
                  minutes is returned to the Chairman and to the Secretary, duly
                  signed as of conformity on the bottom by each of the members
                  of the Board of Directors or the Executive Committee, as the
                  case may be.

         IV.      As soon as the Chairman and the Secretary receive the written
                  confirmations from all members of the relevant organ, they
                  will immediately proceed to place the approved minutes in the
                  respective minute books, which shall contain all resolutions
                  taken, which shall be legalized with the signature of the
                  Chairman and the Secretary. The date of such minutes shall be
                  the date on which the verbal or written consent of all
                  relevant members was obtained, even though at such time
                  written confirmations have not been received. Such written
                  confirmations, once received, shall be placed in files which
                  the Corporation shall keep for such reasons. Likewise, any
                  written observations made by the Examiner to the respective
                  resolutions shall be placed in such files.

         ARTICLE THIRTY-TWO. The operation and daily direction of business of
the Corporation may be under the direction of a General Director, appointed by
the Board of Directors, who shall enjoy the powers conferred upon him by such
Board.

         The General Director may or may not be a shareholder or a member of the
Board of Directors and shall maintain his position indefinitely until the Board
of Directors revokes his appointment or accepts his resignation.

                                       24
<PAGE>

         ARTICLE THIRTY-THREE. The Board of Directors shall have the following
powers and duties:

         I.       Power-of-attorney for lawsuits and collections with all
                  general and special powers requiring a special clause in
                  accordance with the Law, without any limitation, in accordance
                  with the provisions of the first paragraph of Article 2554 of
                  the Civil Code for the Federal District, the first paragraph
                  of the Article 2831 (two thousand eight hundred thirty one) of
                  the Civil Code of the Federal District and the corresponding
                  Articles in the Civil Codes for all other States of the
                  Republic. The Board of Directors shall have the following
                  powers, as examples but not as a limitation: to withdraw from
                  the actions it may file and from "amparo" proceedings; to
                  settle, to submit to arbitration; to take and answer
                  deposition; to assign goods; to challenge judges; to receive
                  payments and carry out all other acts expressly determined by
                  the Law, among which are included, to represent the
                  Corporation before judicial and administrative, civil,
                  criminal or other authorities, with the power to file criminal
                  claims and complaints and to grant pardons, to become the
                  offended party or an assistant with the Public Ministry in
                  criminal procedures, before labor authorities and labor
                  courts.

         II.      Power-of-attorney for acts of administration in accordance
                  with the provisions of the second paragraph of Article 2554 of
                  the Civil Code for the Federal District, second paragraph of
                  the Article 2831 (two thousand eight hundred thirty one) of
                  the Civil Code of the Federal District and the corresponding
                  Articles in the Civil Codes for the States of the Republic.

         III.     Power-of-attorney to appoint and remove the General Director
                  or any other Directors and General or Special Managers, as
                  well as any other officers, attorneys, agents and employees of
                  the Corporation; and to determine their powers,
                  responsibilities, working conditions and remuneration.

         IV.      To acquire and dispose of shares and corporate participations
                  in other companies.

         V.       Power-of-attorney for acts of ownership, under the terms of
                  the third paragraph of Article 2554 of the Civil Code for the
                  Federal District, the third paragraph of the Article 2831 (two
                  thousand eight hundred thirty one) of the Civil Code of the
                  State of Federal District and the corresponding articles of
                  the Civil Codes for all other States in the Republic.

         VI.      To subscribe, execute, endorse, accept and in any other manner
                  negotiate all types of credit instruments under the terms of
                  Article 9 (nine) of the General Law of Negotiable Instruments
                  and Credit Transactions.

         VII.     To open and cancel accounts with banks or with any other
                  financial intermediary, as well as to make deposits and draw
                  therefrom.

         VIII.    To call general ordinary meetings, extraordinary meetings or
                  special meetings of shareholders in all events provided for by
                  these By-laws or by the General Law of Mercantile Stock
                  Corporations, or when deemed convenient, and to fix the date
                  and time to hold such Meetings and to carry out the
                  resolutions.

         IX.      To formulate internal work rules.

                                       25
<PAGE>

         X.       To appoint and remove external auditors of the Corporation.

         XI.      To establish branches and agencies of the Corporation anywhere
                  in the Mexican Republic or abroad.

         XII.     To grant and revoke general or special powers-of-attorney and
                  grant powers in substitution thereof, except those powers
                  whose exercise corresponds exclusively to the Board of
                  Directors under law or these By-laws, always reserving the
                  exercise of its powers.

         XIII.    To carry out all acts and operations authorized by these
                  By-laws or which are consequential thereto.

         XIV.     To authorize, pursuant to Article 14 (fourteen) Bis of the
                  Securities Market Law, the acquisition via stock exchange of
                  shares representing the capital of the Corporation under
                  applicable provisions, as well as their later placement, in
                  accordance with Article Eight of these By-laws. This authority
                  shall not be delegated.

         XV.      To establish Special Committees that it considers necessary
                  for the development of the Corporation's operations,
                  determining the powers and obligations of such Committees;
                  provided that such Committees shall not have powers which,
                  according to the Law or these By-laws correspond only to the
                  General Shareholders' Meetings or to the Board of Directors.

         XVI.     It is an indelegable authority of the Board of Directors to
                  approve transactions that depart from the ordinary course of
                  business and which would be entered into by and between the
                  Company and its stockholders, with persons who form part of
                  the management of the Company or with those with whom such
                  persons maintain monetary ties or, if applicable, have a
                  family relationship of consanguinity or affinity up to the
                  second degree, a spouse or concubine; or which its
                  subsidiaries seek to enter into with the aforementioned
                  persons, which represent the purchase or sale of 10% (ten
                  percent) or more of assets; the granting of guaranties in an
                  amount in excess of 30% (thirty percent) of assets, as well as
                  transactions other than the foregoing which represent more
                  than 1% (one percent) of the Company's assets. The members of
                  the Board of Directors shall be responsible for the
                  resolutions referred to in this section, except in cases
                  established by the Article 159 of the General Law of
                  Mercantile Stock Corporations (Ley General de Sociedades
                  Mercantiles).

         XVII.    To establish an audit committee, which shall be established in
                  the manner and under the terms indicated below:

                  1.       The Audit Committee shall be comprised of directors,
                           of which the Chairman and the majority thereof shall
                           be independent, and it shall have the presence of the
                           Company's trustees, who shall attend its meeting in
                           the capacity as guests with a right to speak but not
                           to vote.

                                       26
<PAGE>

                  2.       The Audit Committee shall have the following
                           functions, among others:

                  a)       To prepare an annual report on its activities and to
                           present it to the Board of Directors;

                  b)       To state an opinion on transactions with related
                           parties as cited in Section XVI of the present
                           Article Thirty-Third; and

                  c)       To propose the hiring of independent specialists in
                           the cases when it deems appropriate, in order for
                           them to state their opinions with respect to the
                           transactions cited in Section XVI of the present
                           Article Thirty-Third.

         The Audit Committee may establish rules to govern its operations.

                                   CHAPTER VII

                         SUPERVISION OF THE CORPORATION
                         ------------------------------

         ARTICLE THIRTY-FOURTH. Supervision of the Corporation shall be the
responsibility of the Trustee or Trustees and corresponding alternates who by a
majority vote of common stock are elected by the General Meeting of
Stockholders. Trustees need not be stockholders and they shall have the
authorities and obligations set forth in the Law and shall remain in office for
one year, with the understanding that they shall continue in office until those
appointed to replace them take possession of their offices. Trustees may be
reelected. Alternate Trustees shall replace their Full Trustees when the latter
cannot perform, for any reason, the duties inherent to their commission.

         In addition, holders of voting or nonvoting shares representing at
least 10% (ten percent) of the capital stock, may appoint a trustee. The
appointments of the Trustees appointed by minority stockholders may only been
revoked when those of all others are revoked.

                                  CHAPTER VIII

                      FISCAL YEAR AND FINANCIAL INFORMATION
                      -------------------------------------

         ARTICLE THIRTY-FIVE. The fiscal year of the Corporation shall run from
January 1 to December 31 of each year. In the event that the Corporation enters
into liquidation proceedings or is merged and is not the surviving company or
ceases to exist as a consequence of a spin-off, its fiscal year shall end on the
date on which it undergoes liquidation proceedings, is merged or ceases to exist
due to its spin-off and it shall be considered that there shall be a fiscal year
during all the time the Corporation is under liquidation.

         ARTICLE THIRTY-SIX. Within the three months following the end of each
fiscal year, the Board of Directors shall prepare, at least, the following
financial information:

         I.       A report on the progress of the Corporation during the fiscal
                  year, as well as the policies followed by the Board itself,
                  and the Corporation's principal existing projects;

                                       27
<PAGE>

         II.      A report stating and explaining the main accounting and
                  information procedures criteria and policies followed in the
                  preparation of the financial information;

         III.     A statement showing the financial condition of the Corporation
                  as at the end of the fiscal year;

         IV.      A statement showing, duly explained and classified, the
                  results of the Corporation during the fiscal year;

         V.       A statement showing the changes in the financial condition of
                  the Corporation during the fiscal year;

         VI.      A statement showing the changes in the items forming the
                  corporate assets of the Corporation which occurred during the
                  fiscal year; and

         VII.     Notes that may be necessary to complete and clarify the
                  information contained in the above mentioned statements.

         The reports mentioned in this Article, together with the report of the
Examiner, shall be made available to the owners of ordinary or common shares,
who shall have the right to have a copy delivered to them, at least fifteen days
before the date of the General Ordinary Shareholders' Meeting at which they will
be discussed.

                                   CHAPTER IX

                               PROFITS AND LOSSES
                               ------------------

         ARTICLE THIRTY-SEVEN. Net profits of the Corporation for each preceding
fiscal year, as set forth in the Corporation's financial statements duly
approved by the General Ordinary Shareholders' Meeting, shall, after deducting
any amounts necessary to (i) make the payments or the provisions to pay the
respective taxes; (ii) set aside any reserves that may be compulsory by
operation of law; and (iii) amortize losses of previous fiscal years, if any, be
applied as set forth below:

         I.       Five percent shall be separated to create, increase or
                  eventually replenish, the legal reserve, until the amount of
                  such reserve equals twenty percent of the Corporation's
                  capital stock.

         II.      Amounts shall be separated as determined by the Meeting to
                  apply to create or increase general or special reserves,
                  including, if necessary, a reserve to repurchase shares as set
                  forth in Section I of Article 14 Bis of the Securities Market
                  Law (Ley del Mercado de Valores).

         III.     From what is left, the sum decreased by the Meeting shall be
                  distributed to all the shareholders, equally, as dividends.

                                       28
<PAGE>

         IV.      The surplus, if any, shall be at the disposal of the Meeting,
                  or, if authorized by the Meeting, the Board of Directors. The
                  Meeting or the Board, if authorized by the Meeting, may apply
                  the surplus in any manner it considers appropriate and in the
                  interests of the Corporation and its shareholders.

         ARTICLE THIRTY-EIGHT. Losses, if any, shall be borne by all
shareholders in proportion to the number of their shares, and until the
corporate capital represented by them.

                                    CHAPTER X

                           DISSOLUTION AND LIOUIDATION
                           ---------------------------

         ARTICLE THIRTY-NINE. The Corporation shall be dissolved in any of the
events provided for by Article 229 (two hundred twenty nine) of the General Law
of Mercantile Stock Corporations (Ley General de Sociedades Mercantiles), by
means of an agreement of the General Extraordinary Shareholders' Meeting.

         ARTICLE FORTY. Once the Corporation has been dissolved, it shall enter
liquidation proceedings. The General Extraordinary Shareholders' Meeting shall
appoint one or more liquidators, being able to appoint alternates if it so
wishes, who shall have the powers that the law or the Shareholders Meeting
appointing them shall determine.

         ARTICLE FORTY-ONE. The liquidator or liquidators shall carry out the
liquidation according to the procedure determined by the Meeting, if any, and in
the absence thereof, in accordance with the following rules and in accordance
with the provisions of Chapter XI of the General Corporate Law:

         I.       They shall conclude business matters in the manner they
                  consider appropriate;

         II.      They shall pay the Corporation's debts, by disposing of the
                  assets of the Corporation that may be necessary to sell for
                  such purpose;

         III.     They shall prepare the final liquidation balance sheet; and

         IV.      Once the final liquidation balance sheet is approved, they
                  shall distribute cash assets equally among all the
                  shareholders proportionately to the number of shams held by
                  each shareholder. In case there is a discrepancy among the
                  liquidators, the Examiner will convene the General
                  Extraordinary Shareholders' Meeting in order to resolve the
                  questions as to which there is discrepancy.

         ARTICLE FORTY-TWO. During the liquidation proceedings, the Meeting
shall be held in the manner provided for by these By-laws, and the liquidators
shall carry out functions equivalent to those corresponding to the Board of
Directors during the normal existence of the Corporation; the Examiner shall
continue fulfilling, with respect to the liquidator(s), the functions he had
carried out during the existence of the corporation, regarding the Board of
Directors.

                                       29
<PAGE>

                                   CHAPTER XI

                         APPLICABLE LAW AND JURISDICTION
                         -------------------------------

         ARTICLE FORTY-THREE. In case of any dispute between the Company and its
stockholders, or among stockholders regarding matters related to the Company, or
for the interpretation and performance of the present bylaws, the Company and
the stockholders expressly subject themselves to the applicable laws in, and the
competency and jurisdiction of the competent courts of Mexico City, Federal
District, wherefore they waive any other venue which for reason of domicile or
for any other reason may pertain to them.

THE SIGNED REPRESENTATIVE OF THE GENERAL EXTRAORDINARY ASSEMBLY OF THE
SHAREHOLDERS OF BACHOCO, S.A. DE C.V. DATED DECEMBER 9, 2003, CERTIFIES THAT
THIS IS A TRUE COPY OF ITS ORIGINAL.

MEXICO, FEDERAL DISTRICT, DECEMBER 9, 2003.

CLAUDIA ATENEA DEL CARMEN LOPEZ RAMIREZ

                                       30
<PAGE>

                                   TRANSITORY

         ARTICLE ONE. While the shares issued by the corporation are not
registrated at the securities section of the National Registry of Securities and
the Public Offer of such shares is carried out, the Board of Director of the
Corporation shall be composed by twelve members.

                                       31

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