maxoccurs/minoccurs where to specify?

Hi we have xsd as follows

<xsd:elementname="books"><xsd:complexType><xsd:sequenceminOccurs="1"maxOccurs="unbounded"><xsd:elementref="book1"minOccurs="1"maxOccurs="unbounded"/>
<xsd:elementref="book2"minOccurs="1"maxOccurs="unbounded"/>
</xsd:sequence>
</xsd:complexType></xsd:element>
Will this be complied as 
<books><book1/><book2><book1/><book2/><book1/><book2/><book1/><book2/>..</books>
OR 
<books><book1/><book2></books>
<books><book1/><book2></books>
pl specify the correct result & why?