Document:

ex10_52.htm

    
      

    

    EXHIBIT
10.52

    

    RESTRUCTURING
AGREEMENT

    

    This
Restructuring Agreement
(the “Agreement”) is executed to this 25th day of
September, 2008, by and among AMERALIA, INC., a Utah
corporation (“AmerAlia”), NATURAL SODA HOLDINGS, INC., a
Colorado corporation (“Holdings”), NATURAL SODA, INC., a Colorado
corporation (“Soda”), BILL H.
GUNN (“Gunn”), ROBERT
VAN MOURIK (“van Mourik”), SENTIENT USA  RESOURCES
FUND, L.P., a Delaware limited partnership (“Sentient I”), SENTIENT USA RESOURCES FUND II,
L.P., a Delaware limited partnership (“Sentient II”) and SENTIENT GLOBAL RESOURCES FUND III,
L.P., a Cayman Islands limited partnership (“Sentient III”).

    

    RECITALS

    

    WHEREAS, AmerAlia owns (i)
$4,375,000 principal amount of the Series A Debentures, plus interest accruing
thereon from and after March 31, 2008, (ii) 51,000 shares of Holdings Common
Stock, (iii) $12,000,000 principal amount of Series C Debentures, plus interest
thereon, and (iv) 4,949 shares of Holdings Series A Preferred
Stock;

    

    WHEREAS, Holdings owns 1,242
shares of common stock, no par value per share, of Soda;

    

    WHEREAS, Sentient I owns (i)
$11,300,000 principal amount of the Series B1 Debentures, plus interest thereon,
(ii) $5,750,000 principal amount of the Series A Debentures, plus interest
accruing thereon from and after March 31, 2008, (iii) 1,428 shares of common
stock, no par value per share, of Soda; (iv) the AmerAlia $465,000 Note, plus
interest thereon, and (v) one share of Holdings Common Stock;

     

    WHEREAS, Sentient II owns (i)
7,929,820 shares of AmerAlia Common Stock, (ii) the AmerAlia $350,000 Note, plus
interest thereon, (iii) rights under the following agreements with AmerAlia: a
Third Amended and Restated Guaranty Agreement, a Fourth Amended and Restated
Guaranty Agreement, and an Addendum to the Third And Fourth Amended and Restated
Guaranty Agreements, which are secured by a Series C Debenture Pledge Agreement
concerning $9,921,583 principal amount of Series C Debentures, plus interest
accruing thereon, (iv) the AmerAlia Interest Notes, plus interest thereon, and
(vi) the AmerAlia Residual Note, plus interest thereon;

     

    WHEREAS, Sentient III owns (i)
the AmerAlia $300,000 Note, plus interest thereon; (ii) rights to $3,483,209 of
interest payable on the Series A Debentures, plus interest thereon, and (iii)
the HPD Note, plus any interest thereon; and

     

    WHEREAS, with the consent of
AmerAlia, Holdings and Soda, Sentient II and Sentient III have agreed to convey
the investments described in the two preceding recitals to Sentient I in
exchange for limited partnership interests in Sentient I;

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    WHEREAS, the parties hereto
have agreed to the provisions contained herein in connection with restructuring
their relationships;

    

    NOW, THEREFORE, in
consideration of the foregoing recitals, the agreements contained herein, and
other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties agree as follows:

    

    1.           Definitions.  The
following terms when used herein shall have the meaning set forth
below:

    

    a.        
    “AmerAlia” shall mean
AmerAlia, Inc., a Utah corporation.

    

    b.       
     “AmerAlia $465,000
Note” means the convertible Promissory Note dated May 25, 2008, from
AmerAlia payable to the order of Sentient I in the principal amount of $465,000
due on September 30, 2008, plus any interest thereon.

    

    c.       
     “AmerAlia $350,000
Note” means the convertible Promissory Note dated August 24, 2007, from
AmerAlia payable to the order of Sentient II in the principal amount of $350,000
due on September 30, 2008, plus any interest thereon.

    

    d.        
    “AmerAlia $300,000
Note” means the Promissory Note dated June 24, 2008, from AmerAlia
payable to the order of Sentient III in the principal amount of $300,000 due on
September 30, 2008, plus any interest thereon. Not all amounts may have been
advanced as contemplated by the AmerAlia $300,000 Note.

    

    e.      
      “AmerAlia Common
Stock” means the $.01 par value per share common stock of
AmerAlia.

    

    f.     
        “AmerAlia Interest
Notes” means the promissory notes from AmerAlia with an aggregate
principal amount of approximately $1,966,931 as of June 30, 2008, which were originally
payable to the Jacqueline Badgers Mars Trust and all of which are now owned by
Sentient II as set forth in the Supplemental Disclosure Letter, plus any
interest thereon.

    

    g.     
       “AmerAlia Residual
Note” means a Promissory Note
in the principal amount of $469,628 due December 31, 2005 originally payable to
the Jacqueline Badgers Mars Trust and now owned by Sentient II, plus any
interest thereon.

    

    h.       
     “AmerAlia Release
Parties” means AmerAlia, Holdings, Soda, Bill H. Gunn, and Robert van
Mourik.

    

    i.        
     “AmerAlia Stock
Options” means the authorized, issued and outstanding stock options of
AmerAlia as set forth in the Supplemental Disclosure Letter.

    

    j.        
     “Associated Parties”
means and includes:  (i) the named party’s predecessors, successors,
executors, administrators, heirs and estates; (ii) the named party’s past,
present and future assigns, shareholders, partners, investors, direct and
indirect parents, subsidiaries and affiliates, and all of their officers,
directors, attorneys or legal representatives, agents and other representatives;
(iii) each entity that the named party has the power to bind (by the named
party’s acts or signature) or over which the named party directly or indirectly
exercises control; and (iv) each entity of which the named party owns, directly
or indirectly, at least 50% of the outstanding equity, beneficial, proprietary,
ownership or voting interests.

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    k.       
     “Claims” means and
includes all past, present and future disputes, claims, controversies, demands,
rights, rights to appeal, liens, allegations, obligations, liabilities, actions
and causes of action of every kind and nature (whether in law or equity),
including: (i) any unknown, unsuspected or undisclosed claim; (ii) any claim or
right that may be asserted or exercised by a person providing a release whether
in its individual capacity or in its capacity as a stockholder, director,
officer, borrower, employee or in any other capacity; and (iii) any claim,
counterclaim, right or cause of action based upon any breach of any express,
implied, oral or written contract or agreement.

    

    l.        
     “Closing” shall have
the meaning set forth in Section 5.

    

    m.    
       “Employee Benefit
Plan” means any employee benefit plan, as defined in Section 3(3) of
ERISA, which is, previously has been, or will be established or maintained by
any member of a controlled group.

    

    n.        
    “Environmental Laws”
means all federal, state, or local laws, ordinances, rules, regulations,
interpretations and orders of courts or administrative agencies or authorities
relating to pollution or protection of the environment (including, without
limitation, ambient air, surface water, ground water, land surface, and
subsurface strata), and other laws relating to (a) Polluting Substances or (b)
the manufacture, processing, distribution, use, treatment, handling, storage,
disposal, or transportation of Polluting Substances.

    

    o.     
       “GAAP” means generally
accepted accounting principles, applied on a consistent basis, as set forth in
Opinions of the Accounting Principles Board of the American Institute of
Certified Public Accountants and/or in statements of the Financial Accounting
Standards Board and/or their respective successors and which are applicable in
the circumstances as of the date in question.

    

    p.           “Governmental Body”
means any: (a) nation, state, county, city, town, village, district, or other
jurisdiction of any nature; (b) federal, state, local, municipal, foreign, or
other government; (c) governmental or quasi-governmental authority of any nature
(including any governmental agency, branc  h, department, official, or
entity and any court or other tribunal); (d) multi-national organization or
body; or (e) body exercising, or entitled to exercise, any administrative,
executive, judicial, legislative, police, regulatory, or taxing authority or
power of any nature.

    

    q.            
“Holdings”
means Natural Soda Holdings, Inc., a Colorado corporation.

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    r.        
     “Holdings Common
Stock” means the $.01 par value per share, common stock of
Holdings.

    

    s.       
     “Holdings Series A Preferred
Stock” means the shares of Series A Preferred Stock of
Holdings.

    

    t.     
        “HPD Note” means a
promissory note in the principal amount of $1,200,000 due December 31, 2005 from
AmerAlia payable to the order of US Filter Wastewater Group, Inc., now owned by
Sentient III.

    

    u.       
     “Lien” means any lien,
claim, mortgage, security interest, tax lien, pledge, encumbrance, financing
statement, or conditional sale or title retention agreement, or any other
interest in property designed to secure the repayment of indebtedness or any
other obligation, whether arising by agreement, operation of law, or otherwise,
and including claims of a right to a security interest and encumbrances whether
properly attached, perfected, or recorded.

    

    v.       
     “Material Adverse
Effect” means (a) a material adverse effect on the business, operations,
properties, assets or condition (financial or otherwise) individually or taken
as a whole or (b) the impairment of the ability of any party to perform its
obligations under this Agreement or any of other agreements to which it is a
party.

    

    w.     
      “Polluting Substance”
means all pollutants, contaminants, chemicals, or industrial, toxic or hazardous
substances or wastes and shall include, without limitation, any flammable
explosives, radioactive materials, oil, hazardous materials, hazardous or solid
wastes, hazardous or toxic substances or related materials defined in the
Comprehensive Environmental Response, Compensation and Liability Act of 1980,
the Superfund Amendments and Reauthorization Act of 1986, the Resource
Conservation and Recovery Act of 1976, the Hazardous and Solid Waste Amendments
of 1984, and the Hazardous Materials Transportation Act, as any of the same are
hereafter amended, and in the regulations adopted and publications promulgated
thereto; provided, in the event any of the foregoing Environmental Laws is
amended so as to broaden the meaning of any term defined thereby, such broader
meaning shall apply subsequent to the effective date of such amendment and,
provided, further, to the
extent that the applicable laws of any state establish a meaning for “hazardous
substance,” “hazardous waste,” “hazardous material,” “solid waste,” or “toxic
substance” which is broader than that specified in any of the foregoing
Environmental Laws, such broader meaning shall apply.

    

    x.        
    “Released Claims”
means and includes each and every Claim that (i) releasing party or any person
under the direct or indirect control of the releasing party may have had in the
past, may now have or may have in the future against any of the released parties
or any Associated Party of the released parties, and (ii) has arisen or arises
directly or indirectly out of, or relates directly or indirectly to, any
circumstance, agreement, activity, action, omission, event or matter occurring
or existing on or prior to the date of the release.

    
      
         

      

      
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    y.     
       “SEC” means the United
States Securities and Exchange Commission.

    

    z.       
     “Sentient I” means
Sentient USA Resources Fund, L.P., a Delaware limited partnership.

    

    aa.     
     “Sentient II” means
Sentient USA Resources Fund II, L.P., a Delaware limited
partnership.

    

    bb.    
      “Sentient III” means
Sentient Global Resources Fund III, L.P., a Cayman Islands limited
partnership.

    

    cc.   
       “Sentient Entities”
means Sentient I, Sentient II and Sentient III.

    

    dd.    
      “Series A Debentures”
means the Secured Series A 10% Debentures Due September 30, 2005 issued by
Holdings in a total principal amount of approximately $10,125,000, owned by
Sentient I ($5,750,000, plus interest accruing after March 31, 2008 thereon),
AmerAlia ($4,375,000, plus interest accruing after March 31, 2008 thereon), and
Sentient III (interest accruing prior to March 31, 2008 on all Series A
Debentures, plus any interest accruing thereon).

    

    ee.       
   “Series B1 Debentures”
means the Secured Subordinated Series B1 Debentures Due February 19, 2008
issued by Holdings in a total principal amount of $11,300,000, plus interest
thereon, owned by Sentient I.

    

    ff.          
  “Series C
Debentures” means the Unsecured Subordinated Series C Debentures Due
February 19, 2008 issued by Holdings in a total principal amount of $12,000,000,
plus interest thereon, owned by AmerAlia.

    

    gg.      
    “Soda” means Natural
Soda, Inc., a Colorado corporation.

    

    hh.     
     “Soda Common Stock”
means the no par value per share common stock of Soda.

    

    ii.          
  “Warrants” means
warrants to purchase 600,000 shares of AmerAlia Common Stock.

    

    2.           Conveyances to Sentient
I. Immediately prior to
Closing, Sentient II and Sentient III will contribute the following assets to
Sentient I in exchange for partnership interests in Sentient I:

    

    a.       
     From Sentient II.
Sentient II will contribute to Sentient I:

    

    
      	
               
      

            	
              i.

            	
              7,929,820
      shares of AmerAlia Common Stock,

            

    

    

    
      	
               
      

            	
              ii.

            	
              The
      AmerAlia $350,000 Note,

            

    

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              iii.

            	
              Rights
      under the following agreements with AmerAlia: a Third Amended and Restated
      Guaranty Agreement, a Fourth Amended and Restated Guaranty Agreement, and
      an Addendum to the Third And Fourth Amended and Restated Guaranty
      Agreements, which are secured by a Series C Debenture Pledge Agreement
      concerning $9,921,583 principal amount of Series C Debentures, plus
      interest accruing thereon,

            

    

    

    
      	
               
      

            	
              iv.

            	
              AmerAlia
      Interest Notes,

            

    

    

    
      	
               
      

            	
              v.

            	
              The
      AmerAlia Residual Note; and

            

    

    

    
      	
               
      

            	
              vi.

            	
              Any
      rights, claims or other assets owned by Sentient II and related to
      AmerAlia, Holdings, Soda or their respective
  operations.

            

    

    

    b.            From Sentient III.
Sentient III will contribute to Sentient I:

    

    
      	
               
      

            	
              i.

            	
              AmerAlia
      $300,000 Note;

            

    

    

    
      	
               
      

            	
              ii.

            	
              Rights
      to $3,483,209 of interest payable on the Series A Debentures, or so much
      of that interest as is owned by Sentient
III,

            

    

    

    
      	
               
      

            	
              iii.

            	
              The
      HPD Note, and

            

    

    

    
      	
               
      

            	
              iv.

            	
              Any
      rights, claims or other assets owned by Sentient III and related to
      AmerAlia, Holdings, Soda or their respective
  operations.

            

    

    

    c.        
    Consent to
Conveyance.  AmerAlia, Holdings and Soda each consent to the
foregoing contributions and agree that from and after the effective date of each
such contribution (as reflected in Sentient I’s notice to AmerAlia of the
contributions) Sentient I shall be the registered owner of each asset so
contributed.

    

    
      3.           Purchases of AmerAlia Common
Stock.

    

    

    a.         
   Purchase of AmerAlia Common
Stock.  At the Closing, Sentient I shall purchase 33,000,000
shares of AmerAlia Common Stock at a purchase price of $ 0.36 per share for a
total purchase price of $11,880,000. The foregoing shall be reduced, dollar for
dollar by the amount of any Series A Promissory Notes issued by AmerAlia and
secured by a pledge of some Series A Debentures, that are converted into
AmerAlia Common Stock.  The proceeds from this subscription shall be
used in the following priority: (i) to pay the obligations described in Section
9.a.i that are not converted into AmerAlia Common Stock, (ii) to pay any amounts
that must be paid as a condition of closing, (iii) as a reserve to be used to
solely fund AmerAlia's share of anticipated capital calls of Holdings (in the
amount of $2,880,000), (iv) as working capital reserve for AmerAlia of
$1,000,000, and (v) as additional working capital for AmerAlia (including the
payment of any remaining obligations under Section 9a).  Any deviation
from these priorities will require the prior written consent of Sentient, which
may be withheld by it in its sole discretion. Upon delivery of the purchase
price to AmerAlia such shares shall be issued to Sentient I and shall be fully
paid and non-assessable. In addition, at any time, and from time to time, during
the thirty-six (36) months following Closing, Sentient I shall have the right to
purchase up to a total of 5,500,000 additional shares of
AmerAlia Common Stock at a price of $.36 per share. AmerAlia will not have the
right to force Sentient to purchase all or any part of this amount.  This
right is only to be exercised to resolve obligations of AmerAlia that exist at
Closing and are not discharged as of Closing, and then only if the holders
of such unpaid obligations pursue or, by written demand from counsel or a
collector, threaten to pursue claims against AmerAlia (or its affiliates). Prior
to exercising this option Sentient I will provide AmerAlia with ten days'
prior written notice of its intent to exercise this right to purchase stock, if
AmerAlia doesn't either pay off the obligation or enter into some other
arrangement with the creditor protecting AmerAlia from claims from that creditor
for at least 24 months. If exercised, the proceeds from the purchase are to be
used solely to pay the obligation to the creditor named in the notice (or the
holder of the obligation referenced).

    
      
         

      

      
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    b.       
     Exchange of Shares for
Obligations. At the Closing, AmerAlia will issue shares of AmerAlia
Common Stock to Sentient I and Sentient I shall deliver to AmerAlia the
following, free and clear of all liens, claims and encumbrances of any person
claiming rights by, through or under the Sentient Entities:

    

    
      	
               
      

            	
              i.

            	
              The
      AmerAlia $465,000 Note,

            

    

    

    
      	
               
      

            	
              ii.

            	
              The
      AmerAlia $350,000 Note,

            

    

    

    
      	
               
      

            	
              iii.

            	
              The
      AmerAlia $300,000 Note,

            

    

    

    
      	
               
      

            	
              iv.

            	
              The
      HPD Note,

            

    

    

    
      	
               
      

            	
              v.

            	
              Rights
      under a Third Amended and Restated Guaranty Agreement, a Fourth Amended
      and Restated Guaranty Agreement, and an Addendum to the Third And Fourth
      Amended and Restated Guaranty Agreements, which are secured by a Series C
      Debenture Pledge Agreement concerning $9,921,583 principal amount of
      Series C Debentures, plus any accrued interest
  thereon,

            

    

    

    
      	
               
      

            	
              vi.

            	
              AmerAlia
      Interest Notes, and

            

    

    

    
      	
               
      

            	
              vii.

            	
              The
      AmerAlia Residual Note.

            

    

    

    Upon
receipt, AmerAlia will cancel each of the forgoing. In exchange for the
obligations described in items i., ii, iii, and iv , Sentient will receive
shares of AmerAlia Common Stock at the rate of $0.36 per share of AmerAlia
Common Stock for each $1 of principal and accrued interest due on each of the
obligations, provided, however that the obligation describe in item iv will
valued at $1,200,000 (the price paid to HPD for that obligation), plus interest
at 6% per annum from and after June 20, 2008 for the purpose of calculating the
number of shares of AmerAlia Common Stock to be issued. In exchange for the
rights described in items v, vi, and vii above, Sentient I will receive
5,977,800 shares of AmerAlia Common Stock.

    
      
         

      

      
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    4.      
      Transfers to
Holdings. At the Closing, AmerAlia and Sentient I will transfer the
following to Holdings, free and clear of liens, claims and encumbrances, solely
in exchange for shares of Holdings Common Stock, intending to qualify such
transfers under Section 351 of the Internal Revenue Code of 1986, as
amended:

    

    a.        
    AmerAlia. At the
Closing, AmerAlia will deliver to Holdings, free and clear of all liens, claims
and encumbrances:

    

    
      	
               
      

            	
              i.

            	
              4,949
      shares of Holdings Series A Preferred
Stock,

            

    

    

    
      	
               
      

            	
              ii.

            	
              All
      of the Series A Debentures issued to AmerAlia ($4,375,000) plus interest
      accruing after March 31, 2008
thereon,

            

    

    

    
      	
               
      

            	
              iii.

            	
              All
      of the Series C Debentures, plus accrued interest thereon, and issued to
      AmerAlia,

            

    

    

    
      	
               
      

            	
              iv.

            	
              The
      inter-company amounts owed by Holdings to AmerAlia will be extinguished,
      and

            

    

    

    
      	
               
      

            	
              v.

            	
              Any
      other equity in or rights under any obligations of Holdings or Soda and
      issued to or owned by AmerAlia, including, but not limited to any
      inter-company receivables.

            

    

    

    In
exchange for the foregoing, Holdings will issue to AmerAlia, 129,000 shares of
Holdings Common Stock.  Upon receipt of the Series A and C Debentures
from AmerAlia, the debentures and other obligations will be cancelled and the
Holdings Preferred Stock shall be retired.

    

    b.           Sentient I. At the
Closing, Sentient I shall deliver to Holdings, free and clear of all liens,
claims and encumbrances of any person claiming rights by, through or under the
Sentient Entities:

    

    
      	
               
      

            	
              i.

            	
              The
      $5,750,000 principal amount of Series A Debentures (plus interest accruing
      after March 31, 2008 thereon),

            

    

    

    
      	
               
      

            	
              ii.

            	
              The
      $11,300,000 principal amount of Series B1 Debentures (plus accrued
      interest thereon),

            

    

    

    
      	
               
      

            	
              iii.

            	
              The
      1,428 shares of Soda Common
Stock,

            

    

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              iv.

            	
              One
      share of Holdings Common Stock, and

            

    

    

    
      	
               
      

            	
              v.

            	
              Rights
      to $3,483,209 of interest payable on the Series A Debentures, plus any
      interest thereon.

            

    

    

    In
exchange for the foregoing, Holdings will issue to Sentient I, 820,000 shares of
Holdings Common Stock.   Upon receipt of the foregoing from
Sentient I, the Series A Debentures, Series B Debentures, Series C Debentures,
and the shares of Holdings Common Stock will be cancelled.

    

    5.        
    Closing. The Closing will occur on October 27,
2008, at the offices of Holland & Hart, LLP, 8390 E. Crescent Parkway, Suite
400, Greenwood Village, CO 80111, or at such other time and place as the parties
may agree. At the Closing, the steps described in Section 3 and 4 will occur.
All transac­tions occurring at the Closing will be deemed to have taken
place simultaneously as part of a single transaction and no transac­tion
will be deemed to have been completed and no document, certificate, or
instru­ment deemed to have been delivered until all transactions have been
completed and all documents, instruments, and certificates have been
delivered.  The transfers that take place at Closing will be deemed to
be effective as of the opening of business on the Closing

    

    6.        
    Conditions. The obligations of
Sentient I to close the transactions contemplated by this Agreement shall be
subject to the following conditions precedent, any one or more of which may be
waived by Sentient I in its unfettered discretion.

    

    a.       
     Amended Articles of
Incorporation of Holdings. At the Closing, the authorized capital of
Holdings shall be 2,000,000 shares of common stock, $0.01 par value per
share.

    

    b.       
     Filings. AmerAlia
shall have filed its quarterly reports for the 2008 fiscal year with the
SEC.

    

    c.      
      Shareholders
Meeting.  Any shareholders meetings of AmerAlia, Holdings, and
Soda that are required in order to effect the transactions described in this
Agreement shall have been duly called and held and appropriate resolutions shall
have been approved by the vote required.

    

    d.        
    Due
Diligence.  Sentient I shall be satisfied, in its unfettered
discretion, with the results of all investigations related to AmerAlia,
Holdings, and Soda, their respective businesses and assets, including, but not
limited to a review of the corporate record books of AmerAlia and Holdings,
accurate and complete copies of which have been delivered to
Sentient.

    

    e.        
    Opinion of Counsel to
AmerAlia. AmerAlia shall have delivered to Sentient I the opinion of
counsel to AmerAlia, Holdings and Soda reasonably acceptable to Sentient
I.

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    f.         
    Payment of Taxes. All
taxes, penalties and interest owed by AmerAlia and Holdings shall have been paid
or will be paid by the Closing disbursements, except as disclosed in the
Supplemental Disclosure Letter.

    

    g.       
     Shareholder
Agreement. AmerAlia, Holdings and Sentient I shall have executed and
delivered a Shareholder Agreement in the form attached hereto as Exhibit
6.g.

    

    h.             Releases.  At
the Closing, AmerAlia shall deliver to Sentient I releases in a form reasonably
acceptable to it and dated as of the Closing, signed by van Mourik, Gunn,
AmerAlia, and Holdings in the form attached hereto as Exhibit 6.h.

    

    i.     
        Payment of Royalties to
BLM. All past due royalties owed to the United States Bureau of Land
Management shall have been paid or will be paid by the Closing
disbursements.

    

    j.           
  Consent to
Termination of Guarantees and Liens. All guarantees and security
interests securing the Series A Debentures and Series B1 Debentures shall be
terminated and released and AmerAlia will deliver the consent of all
beneficiaries of the collateral documents and subordinate creditors that might
be adversely affected.

    

    k.       
     Lien Searches and Title
Insurance.  Sentient I shall have received assurances from
AmerAlia satisfactory to Sentient I that there are no liens, claims or
encumbrances affecting the title to any real or personal property of AmerAlia,
Holdings or Soda (except for the security interest of Wells Fargo securing a
$2,500,000 facility provided to Soda).

    

    l.          
   Forbearance
Agreements. AmerAlia will deliver Forbearance Agreements in a form
acceptable to Sentient I, signed by each of its officers and directors and their
respective affiliates that or who are owed money by AmerAlia that will not be
paid at closing or converted into stock of AmerAlia at or prior to Closing.

    

    m.     
      Cancellation of
Inter-Company Receivables and Payables. Any obligations from Soda to
AmerAlia or from Holdings to AmerAlia that are not conveyed to Holdings pursuant
to Section 4.a. above will be terminated effective as of Closing.

    

    n.       
     Completion of Stock Purchase
Transactions. AmerAlia shall have completed the sale of 1,402,200 shares
of AmerAlia Common Stock to Karen O.
Woolard Trust dated April 23, 1984 and Restated October 13, 1990, Karen O.
Woolard, trustee, the Charles D. O’Kieffe III Trust U/A dated February 2, 1996,
Charles D. O’Kieffe, trustee and Charles D. O’Kieffe III in exchange for
$2,417,692 of indebtedness (plus interest) owed by such individuals or trusts to
AmerAlia (which indebtedness will be terminated by AmerAlia upon
receipt).

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    o.         
   SEC
Reports.  No less than 5 days prior to the Closing, AmerAlia
shall have delivered to Sentient I true, correct and complete copies of
AmerAlia’s annual reports on Form 10-KSB for the years ended June 30, 2006 and
2007 and the quarterly report on Form 10-QSB for September 30, 2007
(collectively, the “SEC Reports”) and copies of AmerAlia’s quarterly reports on
Form 10-QSB for the quarters ended on December 31, 2007 and March 31, 2008 (the
“New SEC Reports”).

    

    p.       
     EE Kinder
Obligations.  Obligations to EE Kinder Co. that have accrued
prior to the Closing shall have been satisfied by payment, conversion into
AmerAlia Common Stock, or a combination of payment and conversion.

    

    7.        
    Representations and Warranties of
AmerAlia, Holdings, Gunn and van Mourik.  AmerAlia, Holdings,
Gunn and van Mourik (except van Mourik makes no representation or warranty
pursuant to subsection 7.n) represent and warrant to Sentient I, Sentient II,
and Sentient III as of the date of this Agreement as follows:

    

    a.      
      Corporate Existence,
Authority.  AmerAlia is a corporation organized, validly
existing, and in good standing under the laws of Utah. Soda is a corporation
organized, validly existing, and in good standing under the laws of Colorado.
Holdings is a corporation organized, validly existing, and in good standing
under the laws of Colorado. Each of AmerAlia, Holdings and Soda (i) has all
requisite corporate power and authority to own its assets and carry on its
business as now conducted, (ii) is qualified to do business in all jurisdictions
in which the nature of its business makes such qualification necessary and where
failure to so qualify would have a Material Adverse Effect, and (iii) has the
corporate power and authority to execute, deliver, and perform its obligations
under this Agreement.

    

    b.       
     Enforceability; No
Conflict.  This Agreement constitutes the legal, valid and
binding obligation of AmerAlia, Holdings, Soda van Mourik, and Gunn, enforceable
against them in accordance with its terms. Neither the execution and delivery of
this Agreement, nor the consummation of the transactions contemplated hereby
will contravene, conflict with, or result in the violation of, default under, or
give any person the right to declare a default or to exercise any remedy under:
(A) any provision of AmerAlia’s, Holdings’ or Soda’s organizational documents,
or (B) any lease, license, permit or agreement to which AmerAlia, Holdings and
Soda is a party or by which it or any of its properties is subject or
bound.

    

    
      c.    
        Financial Statements and
Reports.

    

    

    
      	
               
      

            	
              i.

            	
              As
      of the date of their respective filings, none of the SEC Reports or other
      filed reports contained any untrue statement of a material fact or omitted
      to state a material fact required to be stated therein or necessary to
      make the statements therein, in the light of the circumstances under which
      they were made, not misleading.

            

    

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              ii.

            	
              Each
      of the financial statements of AmerAlia included or incorporated by
      reference in the SEC Reports was prepared in accordance with GAAP applied
      on a consistent basis (except as otherwise stated in such financial
      statements or, in the case of audited statements, the related report
      thereon of independent certified public accounts), and present fairly the
      financial position and results of operations, cash flows and of changes in
      stockholders’ equity of AmerAlia and its consolidated subsidiaries as of
      the dates and for the periods indicated, subject, in the case of unaudited
      interim financial statements, to normal year-end audit adjustments, which
      taken together are not material in amount (with materiality defined as
      $10,000 individually or in the aggregate), and except that the unaudited
      interim financial statements do not contain all of the disclosures
      required by GAAP.

            

    

    

    d.      
      Books and
Records.  The books of account, minute books, stock record
books, and other records of AmerAlia, Holdings and Soda, all of which have been
made available to the Sentient Entities, are complete and correct. The minute
books of AmerAlia, Holdings and Soda contain accurate and complete records of
all meetings held of, and corporate action taken by, the stockholders, the
Boards of Directors, and committees of the Boards of Directors of AmerAlia,
Holdings and Soda, and no meeting of any such stockholders, Board of Directors,
or committee has been held for which minutes have not been prepared and are not
contained in such minute books.

    

    e.       
     Intentionally
omitted.

    

    f.        
     Capitalization.  Except
as set forth in subsections 7.g, h and i, there are no agreements relating to
the issuance, sale, or transfer of any equity securities or other securities of
AmerAlia, Holdings or Soda.

    

    
      g.            
Capitalization of
AmerAlia. The equity capitalization of AmerAlia
is:

    

    

    
      	
               
      

            	
              i.

            	
              Preferred
      stock: $0.05 par value per share; 1,000,000 authorized; 82 issued and
      outstanding.  These shares have no rights except a liquidation
      preference of $82,000 and the right to received dividends as declared by
      the board of directors of AmerAlia (as of closing, no dividends have been
      or will have been declared by the board of directors of
      AmerAlia).

            

    

    

    
      	
               
      

            	
              ii.

            	
              Common
      stock: $0.01 par value per share; 100,000,000 authorized; 17,298,507 shares issued and
      outstanding.

            

    

    

    
      	
               
      

            	
              iii.

            	
              The
      AmerAlia Stock Options;

            

    

    

    
      	
               
      

            	
              iv.

            	
              The
      Warrants;

            

    

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              v.

            	
              The
      AmerAlia $350,000 Note and the AmerAlia $465,000 Note; the principal
      and interest of which are convertible into shares of AmerAlia at $0.36 per
      share;

            

    

    

    
      h.            
Capitalization of
Holdings. The equity capitalization of Holdings
is:

    

    

    
      	
               
      

            	
              i.

            	
              Preferred
      stock: $0.01 par value per share; 100,000 authorized; 4,949 issued to
      AmerAlia and outstanding, having a $1,000 liquidation value per
      share. There are no other
preferences.

            

    

    

    
      	
               
      

            	
              ii.

            	
              Common
      stock: $0.01 par value per share; 100,000 authorized; 51,001 shares issued
      and outstanding.

            

    

    

    
      i.             
Capitalization of
Soda. The equity capitalization of Soda is:

    

    

    
      	
               
      

            	
              i.

            	
              Preferred
      stock: no par value per share; 5,000 authorized; no shares issued and
      outstanding; and 

            

    

    

    
      	
               
      

            	
              ii.

            	
              Common
      stock: no par value per share; 5,000 authorized; 2,670 shares issued and
      outstanding.

            

    

    

    j.              No Violation of Preemptive
Rights.  No violation of any preemptive rights of shareholders
of AmerAlia or Holdings has occurred by virtue of the transactions contemplated
by this Agreement.

     

    k.             Indebtedness.  Except
as shown in the SEC Reports, there is no indebtedness, liability, or other
material obligation of AmerAlia, Holdings or Soda. After the consummation of the
transactions contemplated by this Agreement there will be no indebtedness of
AmerAlia, Holdings or Soda except:

    

    
      	
               
      

            	
              i.

            	
              AmerAlia: Trade
      creditors, debt, obligations, accrued expenses and provisions no greater
      in aggregate than $2,000,000 as described in the written information
      provided to Sentient.

            

    

    

    
      	
               
      

            	
              ii.

            	
              Holdings:  None.

            

    

    

    l.             
No
Default.  AmerAlia, Holdings, and Soda are not in default under
and there is no circumstance which with the giving of notice, the lapse of time,
or both, would constitute a default under, any loan agreement, indenture,
mortgage, security agreement, lease, franchise, permit, license or other
agreement or obligation to which it is a party or by which any of its properties
may be bound which default could be reasonably expected to cause a Material
Adverse Effect.

    

    m.            Authorization of
Securities.  (i) The shares of Holdings Common Stock to be
issued to Sentient I and AmerAlia, and (ii) the shares of AmerAlia Common
Stock, to be issued to Sentient I, against payment therefore will be fully paid
and non-assessable, with no liability attached to the ownership thereof, free of
restrictions on transfer other than under restrictions related to applicable
federal and state securities laws and as may be set forth in a Shareholders
Agreement signed by Sentient I.

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

    
      n.      
      Environmental Condition of
the Property.

    

     

    
      	
               
      

            	
              i.

            	
              To
      the knowledge of AmerAlia, Holdings, and Gunn, the location, construction,
      occupancy, operation and use of AmerAlia’s, Holdings’ and Soda’s
      properties do not violate any applicable permit, law, statute, ordinance,
      rule, regulation, order or determination of any governmental authority or
      other body exercising similar functions, or any restrictive covenant or
      deed or lease restriction (recorded or otherwise) affecting such
      properties, including, without limitation, all applicable zoning
      ordinances and building codes, flood disaster, occupational health and
      safety laws and Environmental Laws and regulations (as referred to in this
      Section collectively “applicable laws”) where such violation could
      reasonably be expected to cause a Material Adverse
  Effect;

            

    

     

    
      	
               
      

            	
              ii.

            	
              To
      the knowledge of AmerAlia, Holdings, and Gunn, AmerAlia, Holdings, and
      Soda and each of their properties are not subject to any existing or
      threatened investigation or inquiry by any governmental authority or
      subject to any remedial obligations due to violations of applicable
      laws;

            

    

    

    
      	
               
      

            	
              iii.

            	
              To
      the knowledge of AmerAlia, Holdings, and Gunn, AmerAlia, Holdings and Soda
      are not subject to any liability or obligation relating to (i) the
      environmental conditions on, under or about such properties, including,
      without limitation, the soil and ground water conditions at such
      properties, or (ii) the use, management, handling, transport,
      treatment, generation, storage, disposal, release or discharge of any
      Polluting Substance which could reasonably be expected to cause a Material
      Adverse Effect;

            

    

    

    
      	
               
      

            	
              iv.

            	
              To
      AmerAlia’s, Holdings’, and Gunn’s knowledge, there is no Polluting
      Substance or other substance on, under or about any property owned, leased
      or otherwise used by AmerAlia, Holdings or Soda that may pose any material
      risk to safety, health or the environment and that could reasonably be
      expected to cause a Material Adverse
Effect;

            

    

    

    
      	
               
      

            	
              v.

            	
              To
      the knowledge of AmerAlia, Holdings, and Gunn, no Polluting Substances
      (for the purposes of this Subsection 7.n Polluting Substances shall not
      include sodium bicarbonate) have been disposed of or otherwise released
      on, onto, into, or from their properties by AmerAlia, Holdings Soda, or
      any third parties in violation of any permit, law, statute, ordinance,
      rule, regulation, order or determination of any governmental authority or
      other body exercising similar functions where such disposal or release
      could reasonably be expected to have a Material Adverse Effect and the use
      which AmerAlia, Holdings and/or Soda makes and intends to make of such
      properties does not and will not result in the disposal or other release
      of any Polluting Substances on, onto, into or from such properties in
      violation of any permit, law, statute, ordinance, rule, regulation, order
      or determination of any governmental authority or other body exercising
      similar functions where non-compliance could reasonably be expected to
      have a Material Adverse Effect;
and

            

    

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              vi.

            	
              To
      the knowledge of AmerAlia, Holdings, and Gunn, AmerAlia, Holdings, and
      Soda, whichever is applicable, have been issued all required federal,
      state and local licenses, certificates or permits relating to, and their
      properties, AmerAlia, Holdings, Soda and AmerAlia’s, Holdings’ and Soda’s
      facilities, business, assets, leaseholds and equipment are all in
      compliance in all material respects with all applicable federal, state and
      local laws, rules and regulations relating to, air emissions, water
      discharge, noise emissions, solid or liquid waste disposal, Polluting
      Substances, or other environmental, health or safety matters where
      non-compliance could reasonably be expected to have a Material Adverse
      Effect.

            

    

     

    o.       
     Litigation and
Judgments.  There is no suit, action, proceeding or
investigation pending or, after reasonable inquiry, to the best of his or its
knowledge, threatened against or affecting AmerAlia, Holdings or Soda, that has
not been disclosed in writing to the Sentient Entities or that the outcome of
which could reasonably be expected to have a Material Adverse
Effect.

     

    p.      
      Rights in Properties;
Liens.  AmerAlia, Holdings, and Soda have good and marketable
title to all properties and assets reflected on their balance sheets, and as of
the Closing none of such properties or assets of AmerAlia, Holdings or Soda will
be subject to any Liens except for the security interest of Wells Fargo securing
a $2,500,000 facility provided to Soda.  AmerAlia, Soda, and Holdings
enjoy peaceful and undisturbed possession under all leases necessary for the
operation of their other properties, assets, and businesses and all such leases
are valid and subsisting and are in full force and effect.  There
exists no default under any provision of any lease which would permit the lessor
thereunder to terminate any such lease or to exercise any rights under such
lease which, individually or together with all other such defaults, could have a
Material Adverse Effect.  AmerAlia, Holdings, and Soda have the
exclusive right to use all property necessary to their business as presently
conducted, to the best of his or its knowledge, and AmerAlia’s, Holdings’ and
Soda’s use of its property does not infringe on the rights of any other Person
where such nonexclusively or infringement would have a Material Adverse
Effect.  To the best of his or its knowledge, no other Person is
infringing the rights of AmerAlia or Holdings in any of the intellectual
property owned, licensed or used by it.  AmerAlia, Holdings, and Soda
do not owe any royalties, honoraria or fees to any person, except royalties not
yet payable to the United States Bureau of Land Management and to EE
Kinder.

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

    q.      
      Taxes.  Except
as has been disclosed in the supplemental disclosure letter, AmerAlia, Holdings,
and Soda have filed or caused to be filed all tax returns (federal, state, and
local) required to be filed, including, without limitation, all income,
franchise, employment, property, and sales taxes, and have paid or at closing
will pay all of their tax liabilities, other than immaterial amounts and taxes
that are being contested by AmerAlia, Holdings, or Soda in good faith by
appropriate actions or proceedings diligently pursued, and for which adequate
reserves in conformity with GAAP with respect thereto have been established and
as to which full written disclosure is contained on an Exhibit to this
Agreement.  To the best of his or its knowledge, there is no pending
investigation of AmerAlia, Holdings, or Soda by any taxing authority or pending
but unassessed tax liability of AmerAlia, Holdings, or
Soda.  AmerAlia, Holdings, and Soda have made no presently effective
waiver or extension of any applicable statute of limitations or request for an
extension of time to file a tax return, and AmerAlia, Holdings, or Soda is not a
party to any tax-sharing agreement.

     

    r.       
      ERISA.  AmerAlia,
Holdings and Soda have complied with all applicable minimum funding requirements
and all other applicable and material requirements of ERISA and the Internal
Revenue Code, applicable to the Employee Benefit Plans it or they sponsor or
maintain, and there are no existing conditions that would give rise to material
liability thereunder.  With respect to any Employee Benefit Plan,
AmerAlia, Holdings and Soda have made all contributions or payments to or under
each Employee Benefit Plan required by law, by the terms of such Employee
Benefit Plan or the terms of any contract or agreement.  No
Termination Event has occurred in connection with any Pension Plan, and there
are no unfunded benefit liabilities, as defined in Section 4001(a)(18) of ERISA,
with respect to any pension plan which poses a risk of causing a Lien to be
created on the assets of AmerAlia, Holdings or Soda or which will result in the
occurrence of a Reportable Event.  AmerAlia, Holdings or Soda have not
been required to contribute to a multiemployer plan, as defined in Section
4001(a)(3) of ERISA, since September 2, 1974.  No material liability
to the Pension Benefit Guaranty Corporation has been, or is expected to be,
incurred by AmerAlia, Holdings or Soda. The term “liability,” as
referred to in this Section, includes any joint and several
liability.  No prohibited transaction under ERISA or the Code has
occurred with respect to any Employee Benefit Plan which could have a Material
Adverse Effect or a material adverse effect on the condition, financial or
otherwise, of an Employee Benefit Plan.

     

    s.        
    Disclosure.  No
representation, warranty or statement made by AmerAlia, Holdings, van Mourik or
Gunn in this Agreement or in any of the documents, instruments, exhibits or
Schedules attached to such agreements or delivered in connection herewith or
therewith, contains or will contain any untrue statement of a material fact or
omits or will omit to state any material fact necessary to make any statements
made herein or therein not misleading.  There is no fact that does, or
with the passage of time, could reasonably be expected to materially and
adversely affect the condition (financial or otherwise), results of operations,
business, properties, or prospects of AmerAlia, Holdings, or Soda that has not
been disclosed in the documents described herein and provided to the Sentient
Entities.

    
      
         

      

      
        16

        
          

        

      

      
         

      

    

    t.       
      Subsidiaries.
Holdings has no wholly or partially owned subsidiaries, other than
Soda.  AmerAlia has no wholly or partially owned subsidiaries other
than Holdings.  All the issued and outstanding shares of capital stock
of AmerAlia and Holdings are duly authorized, validly issued, fully paid and
nonassessable.

     

    u.      
      Government
Approval.  No approval or action by, and no notice to or
filings with any Governmental Body or person (other than those that have been or
on the Closing will be, duly obtained or made and which are, or as of the
Closing will be, in full force and effect) is required for the due execution,
delivery or performance by AmerAlia, Holdings or Soda.

     

    v.    
        Securities
Laws.  AmerAlia and Holdings have each complied with or is
exempt from the registration and/or qualification requirements of all federal
and state securities or blue sky laws applicable to the issuance or sale of the
Common Stock contemplated by this Agreement, including any shares of AmerAlia
common stock offered or issued to any creditor of AmerAlia or of Holdings. All
disclosures made by or on behalf of AmerAlia to any person or entity offered or
sold stock of AmerAlia were true, accurate and complete at the time of the
transaction (including the offer and sale to the Sentient Entities hereunder)
and did not and do not violate the provisions of Rule 10b-5 or similar
provisions of any state or foreign law, rule or regulation.

     

    w.       
     No Labor
Disputes.  None of AmerAlia, Holdings or Soda is involved in
any labor dispute.  None of AmerAlia, Holdings, or Soda is a party to
any collective bargaining agreement, and there are no strikes or walkouts or
union organization of any of AmerAlia’s, Holdings’ or Soda’s employees
threatened or in existence and no labor contract is scheduled to expire during
the term of this Agreement.

     

    x.         
   Brokers.  None
of AmerAlia, Holdings, or Soda nor any of its directors or shareholders has
dealt with any broker, finder, commission agent or other Person in connection
with the transactions referenced in or contemplated by this Agreement, nor is
AmerAlia, Holdings, Soda, or any of their directors or shareholders under any
obligation to pay any broker’s fee or commission in connection with such
transactions.

     

    y.      
      Insurance.  The
amount and types of insurance carried by AmerAlia, Holdings and Soda, and the
terms and conditions thereof, are substantially similar to the coverage
maintained by companies in the same or similar business as AmerAlia, Holdings
and Soda and similarly situated companies.

     

    z.         
    Long Term
Agreements.  Except as described in AmerAlia’s Supplemental
Disclosure Letter, neither AmerAlia nor Holdings is subject to any long
term agreements not terminable by it on less than ninety (90) days prior written
notice without a monetary penalty.

    

    aa.           Royalties. Except for
royalties payable to (i) the United States of America, and (ii) EE Kinder, none
of the interests in real property owned by AmerAlia, Holdings, or Soda is
subject to any minimum royalty, advance royalty, production royalty, net smelter
return obligation, net profit payment or any similar
arrangement.

    
      
         

      

      
        17

        
          

        

      

      
         

      

    

    bb.           No Material Adverse
Change.  Since June 30, 2007, there has not been any event,
change or circumstance applicable to AmerAlia, Holdings or Soda that could
reasonably be expected to have a Materially Adverse Effect on either of them or
on all of them taken as a whole.

    

    8.           Representations of Sentient
I.  Sentient I represents and warrants to Holdings and AmerAlia
that:

    

    a.      
      The AmerAlia Common Stock and the Holdings
Common Stock are being acquired for investment purposes only and not with a view
toward the resale or distribution thereof. Such shares may only be sold or
transferred by Sentient I if such sale or transfer is registered or exempt from
registration under the Securities Act of 1933, as amended and any similar
provisions of state law. Such exemption must be established to the reasonable
satisfaction of the issuer of the shares. Notwithstanding the foregoing,
AmerAlia and Holdings each consent to the transfer of its common stock from
Sentient I to Sentient II and/or Sentient III (and their owners and the
investors in the owners of any of the Sentient Entities) at any time following
the Closing.

    

    b.       
     Sentient I is a limited partnership organized,
validly existing, and in good standing under the laws of
Delaware.  Sentient I has all requisite limited partnership power and
authority to own its assets and carry on its business as now conducted, and has
the limited partnership power and authority to execute, deliver, and perform its
obligations under this Agreement.

    

    c.     
       This Agreement constitutes the legal,
valid and binding obligation of Sentient I, enforceable against it in accordance
with its terms. Neither the execution and delivery of this Agreement, nor the
consummation of the transactions contemplated hereby, will contravene, conflict
with, or result in the violation of, default under, or give any person the right
to declare a default or to exercise any remedy under any provision of Sentient
I’s organizational documents.

    

    9.           Covenants.

    

    a.         
   Solicitation of
Creditors. Commencing within ten (10) days after the date of this
Agreement and ending within twenty (20) days, after the date of this Agreement,
AmerAlia will use commercially reasonable efforts to cause: (i) the holders of
any obligations secured by a pledge or security interest in any equity or debt
issued by Holdings, (ii) any officer or director or any affiliate of any officer
or director of AmerAlia, Holdings or Soda holding any secured or unsecured claim
against AmerAlia, Holdings, or Soda, (iii) the holders of shares of AmerAlia
preferred stock, (iv) EE Kinder Co., and (v) any other creditors of AmerAlia or
Holdings, to convert such obligations into shares of common stock of AmerAlia at
$.36 per share. In doing so, AmerAlia will prepare and use a written disclosure
document that materially complies with the disclosure requirements of federal
and applicable state securities laws. Any obligations described in clauses (i)
and (iv) not so converted shall be paid off with the proceeds of the
subscription described in Section 3.a.

    
      
         

      

      
        18

        
          

        

      

      
         

      

    

    b.        
    Intentionally
omitted.

    

    c.      
      Directors and
Officers.  The Holdings board of directors will consist of five
(5) directors, initially Peter Cassidy, Stephen Dunn, Johanna Druez, Brad
Bunnett, and Bill H. Gunn will be elected to serve as directors.

    

    d.     
       AmerAlia Shareholder
Meeting.  AmerAlia will use commercially reasonable efforts to
hold a shareholders meeting on or before December 1, 2008 and to propose for
approval by its shareholders:

    

    
      	
               
      

            	
              i.

            	
              that
      its Articles of Incorporation be amended to increase the number of shares
      of AmerAlia Common Stock to
350,000,000;

            

    

    

    
      	
               
      

            	
              ii.

            	
              That
      the provisions of section 2.3 of the Shareholders Agreement (in the form
      attached hereto as Exhibit 6.g, including any changes to that form that
      are approved by the parties thereto) be approved and ratified by the
      shareholders; and

            

    

    

    
      	
               
      

            	
              iii.

            	
              That
      Peter Cassidy, and up to three additional persons named by Sentient I be
      elected as directors of AmerAlia (the “Sentient Nominee(s)”). Sentient I
      shall provide the Secretary of AmerAlia within 10 days after AmerAlia
      notifies Sentient I that AmerAlia is preparing its proxy statement with
      (i) the required background information required under Regulation 14A
      of the Securities Exchange Act of 1934 or the rules of any security
      exchange that the AmerAlia Common Stock is then listed, and (ii) such
      other information regarding such individual and their affiliations and
      background as AmerAlia may reasonably request. Each Sentient Nominee shall
      be an individual that shall have such business or technical experience,
      stature and character as is commensurate with service on the board of
      directors of a public company and that shall be reasonably acceptable to
      AmerAlia, it being agreed that Peter Cassidy is an acceptable
      nominee.  It is understood that any individual will be required
      to make disclosure under Item 401(f) of Regulation S-K in connection with
      AmerAlia’s proxy statement under Regulation 14A of the Securities Exchange
      Act of 1934, and any individual that refuses shall not be an acceptable
      nominee. Sentient I shall not designate any individual as a Sentient
      Nominee if such individual is then an officer, director, employee,
      consultant or stockholder (then holding more than 1% percent of any
      company’s issued and outstanding capital stock or other equity interests)
      of any business that is a competitor of
  AmerAlia.

            

    

    
      
         

      

      
        19

        
          

        

      

      
         

      

    

    e.       
      Insurance.  AmerAlia
will use commercially reasonable efforts to obtain errors and omissions coverage
for its directors.

    

    f.         
    Efforts to Close.
Each of AmerAlia and Sentient I will use commercially reasonable efforts to
consummate the transactions contemplated by this Agreement including, without
limitation, commercially reasonable efforts to remove all conditions precedent
to the other party’s obligation to close.

    

    g.        
    Certificate.  At
the Closing, AmerAlia, Holdings, van Mourik and Gunn shall deliver to the
Sentient Entities a certificate certifying the following:

    

    
      	
               
      

            	
              i.

            	
              the
      representations and warranties each of them made in this Agreement and in
      the Supplemental Disclosure Letter remain true, accurate and complete in
      all material respects at and as of the
Closing.

            

    

    

    
      	
               
      

            	
              ii.

            	
              all
      reports required to be filed with the SEC for AmerAlia’s 2008 Fiscal Year
      and the 2009 Fiscal Year up to the date of Closing have been filed with
      the SEC;

            

    

    

    
      	
               
      

            	
              iii.

            	
              as
      of the date of their respective filings, none of the New SEC Reports or
      other filed reports (including, but not limited to the annual report for
      2008 on form 10-KSB) contained any untrue statement of a material fact or
      omitted to state a material fact required to be stated therein or
      necessary to make the statements therein, in the light of the
      circumstances under which they were made, not
  misleading;

            

    

    

    
      	
               
      

            	
              iv.

            	
              Each
      of the financial statements of AmerAlia included or incorporated by
      reference in the New SEC Reports was prepared in accordance with GAAP
      applied on a consistent basis (except as otherwise stated in such
      financial statements or, in the case of audited statements, the related
      report thereon of independent certified public accounts), and present
      fairly the financial position and results of operations, cash flows and of
      changes in stockholders’ equity of AmerAlia and its consolidated
      subsidiaries as of the dates and for the periods indicated, subject, in
      the case of unaudited interim financial statements, to normal year-end
      audit adjustments, which taken together are not material in amount (with
      materiality defined as $10,000 individually or in the aggregate), and
      except that the unaudited interim financial statements do not contain all
      of the disclosures required by
GAAP;

            

    

    

    
      	
               
      

            	
              v.

            	
              Since
      March 31, 2008, there has been no change in any of the significant
      accounting (including tax accounting) policies, practices, or procedures
      of AmerAlia or any of its consolidated subsidiaries except as disclosed in
      the New SEC Reports; and

            

    

    
      
         

      

      
        20

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              vi.

            	
              Neither
      Soda nor Holdings has any outstanding options, warrants or any other
      contractual right to acquire (whether by purchase, exchange or any other
      method) any shares of any class of capital stock and AmerAlia does not
      have any outstanding options, warrants or any other contractual right to
      acquire (whether by purchase, exchange or any other method) any shares of
      any class of capital stock except for the AmerAlia Stock
      Options.

            

    

    

    
      	
               
      

            	
              vii.

            	
              All
      of the books and records of AmerAlia, Holdings and Soda are in the
      possession or control of the AmerAlia, Holdings and
  Soda.

            

    

    

    h.         
   Waiver of
Claims.  Van Mourik and Gunn are and will be making
representations and warranties to the Sentient Entities in connection with the
transactions described in this Agreement. To the extent that either or both of
them incurs any liability with respect to any such representation or warranty,
van Mourik and Gunn each waive and release any Claims to contribution,
reimbursement, indemnification (whether contractual, statutory, pursuant to
bylaw, or otherwise), subrogation or otherwise from AmerAlia, Holdings, and
Soda, regardless of whether any asserted right now exists or is created in the
future unless the instrument creating any such right specifically mentions this
waiver and release.

    

    i.          
   Termination of
Securityholder Agreement. Effective as of the Closing, the ongoing
obligations under the Securityholder Agreement dated March 19, 2004 shall be
terminated.

    

    10.           Release; Limitation of
Liability.

    

    a.          
  Effective as of the date of this Agreement, the AmerAlia Release
Parties for themselves and each person under AmerAlia Release Parties’ direct or
indirect control, hereby generally, irrevocably, unconditionally and completely
release and forever discharge each of the Sentient Entities and each of the
Sentient Entities’ Associated Parties from, and the AmerAlia Release Parties for
themselves and each person under AmerAlia Release Parties’ direct or indirect
control, hereby irrevocably, unconditionally and completely waives and
relinquishes, each of the Released Claims.

    

    b.       
     In addition, the parties have agreed to limit van
Mourik’s and Gunn’s personal liability resulting from any representation or
warranty made by either in their personal capacity under Section 7, or the
closing certificate described in Section 9.g to the extent such certificate
updates such representations and warranties, to claims for which Sentient I
delivers a written notice to the party against whom such liability is asserted
on or before the second anniversary of the Closing. Any personal liability
resulting from any representation or warranty made in his personal capacity
under Section 7 or the closing certificate described in Section 9.g to the
extent such certificate updates such representations and warranties, shall be
limited to $500,000 for each of van Mourik and Gunn. The limitations set forth
in this Section 10.b. shall only apply to the representations made by van Mourik
and Gunn in their personal capacities that are contained in Section 7 or the
closing certificate described in Section 9.g to the extent such certificate
updates such representations and warranties.

    
      
         

      

      
        21

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              11.

            	
              TERMINATION OF
      AGREEMENT

            

    

    

    a.      
      Termination by Lapse of
Time.  Either Sentient I or AmerAlia shall have the right (but
not the obligation) to terminate this Agreement if the Closing Date has not
occurred ninety (90) days from the date hereof (the “Outside Date”);
provided that, such termination right shall not be available to any party whose
breach of a representation, warranty, covenant or agreement, or failure to
satisfy a condition precedent under this Agreement caused the failure of the
Closing to occur by the Outside Date.  The Outside Date may be
extended only by the written agreement of Sentient I and AmerAlia.

    

    b.     
       Termination for Failure to
Cure.  In the event that either party fails to cure a breach of
such party’s obligations or duties under this Agreement for a period of more
than fifteen (15) days, the non-breaching party shall have the right (but not
the obligation) to terminate this Agreement.

    

    c.       
     Any termination of this
Agreement shall not affect the release described in Section 10.a, nor
shall it affect any rights or remedies resulting from the breach of any
agreement contained herein.

    

    

    12.           Miscellaneous.

    

    a.         
   Currency. All amounts
are in US dollars unless otherwise indicated.

    

    b.       
     Remedies.  Any
Person having any rights under any provision of this Agreement will be entitled
to enforce such rights specifically, to recover damages by reason of any breach
of any provision of this Agreement, and to exercise all other rights granted by
law, which rights may be exercised cumulatively and not
alternatively.

    

    c.        
    Course of Dealing Not an
Amendment.  No course of dealing between any two or more of the
parties or any delay in exercising any rights will operate as a waiver of any
rights of the Sentient Entities.

    

    d.      
      Survival of Representations
and Warranties.  All representations and warranties contained
herein or made in writing by any party in connection herewith will survive the
execution and delivery of this Agreement for a period of three (3) years after
the Closing.  Any due diligence investigation by the Sentient Entities
shall not limit the representations and warranties given by AmerAlia, Holdings,
van Mourik or Gunn.

    

    e.        
    Successors and
Assigns.  Except as otherwise expressly provided herein, all
covenants and agreements contained in this Agreement by or on behalf of any of
the parties hereto shall bind and inure to the benefit of the respective
successors and assigns of the parties hereto whether so expressed or
not.

    
      
         

      

      
        22

        
          

        

      

      
         

      

    

    f.       
     Severability.  Each
provision of this Agreement shall be interpreted in such manner as to be
effective and valid under applicable law, but if any provision of this Agreement
is held to be prohibited by or invalid under applicable law, such provision
shall be ineffective only to the extent of such prohibition or invalidity,
without invalidating the remainder of this Agreement.

    

    g.       
     Counterparts.  This
Agreement may be executed in two or more counterparts, any one of which need not
contain the signatures of more than one party, but all such counterparts when
taken together shall constitute one and the same Agreement.

    

    h.       
     Descriptive
Headings.  The descriptive headings of this Agreement are
inserted for convenience only and do not constitute a part of this
Agreement.

    

    i.         
    Notices.  Except
as otherwise expressly provided herein, all communications provided for
hereunder shall be in writing and delivered by Federal Express or other
overnight international commercial courier service, (a) if to the Sentient
Entities, addressed to the respective Sentient Entity at the address specified
below, or to such other address as such Sentient Entity may in writing
designate, or (b) if to Holdings, AmerAlia, or Soda, addressed to the
address set forth below or to such other address as any of them in writing may
designate.  Notices shall be deemed to have been validly served, given
or delivered (and “the date” of such notice or words of similar effect shall
mean the date) one day after deposit with Federal Express or other overnight
international commercial courier service, with all charges for next business day
delivery prepaid, or upon actual receipt thereof (whether by noncertified mail,
telecopy, telegram, facsimile, or otherwise), whichever is
earlier.

    
      
         

      

      
        23

        
          

        

      

      
         

      

    

     

    
      	
              If
      to Holdings, AmerAlia

            	
              c/o
      AmerAlia, Inc.

            
	
              or
      Soda:

            	
              Attn:  Chairman

            
	 
      	
              9233
      Park Meadows Dr., Suite 431

            
	 
      	
              Lone
      Tree, CO 80124

            
	 
      	
              Tel:      720-876-2373

            
	 
      	
              Fax:     
      720-876-2374

            
	 
      	 
      
	
              With
      a Copy to:

            	
              Robert
      van Mourik

            
	 
      	
              PO
      Box 880

            
	 
      	
              Toowong  QLD  4066

            
	 
      	
              Australia

            
	 
      	
              Tel:      +617-3870-8041

            
	 
      	
              Fax:      +617-3870-5887

            
	 
      	 
      
	 
      	
              Holland
      & Hart, LLP

            
	 
      	
              8390
      E. Crescent Parkway

            
	 
      	
              Suite
      400

            
	 
      	
              Greenwood
      Village, CO 80111

            
	 
      	
              Attn:  Michael
      Weiner, Esq.

            
	 
      	
              Tel:      303-290-1638

            
	 
      	
              Fax:     
      303-672-6511

            
	 
      	 
      
	
              If
      to the Sentient Entities

            	
              Sentient
      USA Resources Fund, L.P.

            
	
              (or
      either of them):

            	
              Sentient
      USA Resources Fund II, L.P.

            
	 
      	
              Third
      Floor, Harbour Centre

            
	 
      	
              PO
      Box 10795APO

            
	 
      	
              George
      Town, Grand Cayman

            
	 
      	
              Cayman
      Islands

            
	 
      	
              Attn:   Susanne
      Sesselmann

            
	 
      	
              Tel:      (345)
      946 0933

            
	 
      	
              Fax:  
         (345) 946 0921

            
	 
      	 
      
	
              With a copy (which does not
      constitute notice) to:

            	 
      
	 
      	
              Sentient
      USA Resources Fund, L.P.

            
	 
      	
              Sentient
      USA Resources Fund II, L.P.

            
	 
      	
              Suite
      2401, Level 24, Australia Square Tower

            
	 
      	
              264George
      Street, Sydney NSW 2000, Australia

            
	 
      	
              Attn:  Peter
      Cassidy, Director

            
	 
      	
              Tel:      (612)
      8243-2904

            
	 
      	
              Fax:     
      (612) 8243-2990

            
	 
      	 
      
	 
      	
              Quinn
      & Brooks LLP

            
	 
      	
              9800
      Mt. Pyramid Court, Suite 400

            
	 
      	
              Englewood,
      CO 80112

            
	 
      	
              Attn:  Gregory
      A. Smith, Esq.

            
	 
      	
              Tel:      (303)
      298-8443

            
	 
      	
              Fax:    
       (720) 294-8374

            

    

    
      
         

      

      
        24

        
          

        

      

      
         

      

    

    j.          
  Governing
Law.  The validity, meaning and effect of this Agreement shall
be determined in accordance with the laws of Colorado applicable to contracts
made and to be performed entirely in Colorado as if by and between Colorado
residents.  Venue for any dispute arising under this Agreement will be
in Arapahoe County, Colorado.

    

    k.        
    Schedules and
Exhibits.  All schedules and exhibits are an integral part of
this Agreement.

    

    l.      
       Litigation
Costs.  If any legal action, arbitration or other proceeding is
brought for the enforcement of this Agreement, or because of an alleged dispute,
breach, default, or misrepresentation in connection with any of the provisions
of this Agreement, the successful or prevailing party or parties therein shall
be entitled to recover reasonable attorneys’ fees and other costs incurred in
that action or proceeding, in addition to any other relief to which it or they
may be entitled.

    

    m.            Final
Agreement.  This Agreement and the exhibits and schedules
attached hereto constitute the only agreement of the parties concerning the
matters herein, and supersedes, merges and renders void all prior written/oral,
and/or contemporaneous discussions, agreements and understandings related
thereto. The parties acknowledge that there have been discussions about
converting all of the Sentient Entities’ ownership in Holdings into shares of
AmerAlia Common Stock. The parties agree that there is no obligation or
agreement to accomplish that conversion.

    

    n.   
         Representation by
Counsel.  AmerAlia, Holdings and Soda have been represented by
Holland and Hart, LLP in connection with the negotiation, execution and delivery
of this Agreement. The Sentient entities have been represented by Quinn &
Brooks, LLP in connection with the negotiation, execution and delivery of
this Agreement.

    

    o.        
    Public
Disclosure.  Except as may be required to comply with
applicable law, no party shall make or cause to be made any press release or
similar public announcement.  The parties acknowledge that AmerAlia
and the Sentient Entities must make appropriate announcements and filings to
comply with obligations under the Securities Exchange Act.  Each party
agrees that it will provide the other with a copy of any proposed announcement
or filing relating to the subject matter of this Agreement prior to the planned
release or filing of such announcement, and that the releasing or filing party
agrees to endeavor to conform the announcement to the other’s reasonable
comments, provided that the announcing or filing party can do so and still
provide the information to the public that, in filing or announcing party’s
reasonable opinion, is required by law or regulation. Notwithstanding the
foregoing, the party not making the filing or announcement shall not assume any
responsibility for the announcement or filing by providing or not providing any
comments.

    
      
         

      

      
        25

        
          

        

      

      
         

      

    

    p.       
     Dispute
Resolution.  Any dispute, claim or controversy arising out of
or relating to this Agreement or the breach, termination, enforcement,
interpretation or validity thereof, including the determination of the scope or
applicability of this agreement to arbitrate, shall be determined by arbitration
in Douglas County, Colorado, before three arbitrators. The arbitration shall be
administered by JAMS pursuant to its Comprehensive Arbitration Rules and
Procedures. Judgment on the Award may be entered in any court having
jurisdiction. This clause shall not preclude parties from seeking provisional
remedies in aid of arbitration from a court of appropriate
jurisdiction.  The arbitrator shall, in the Award, allocate all or
part of the costs of the arbitration, including the fees of the arbitrator and
the reasonable attorneys’ fees of the prevailing party.

    

    The
parties agree that any and all ­disputes, claims or controversies arising
out of or relating to this Agreement shall be submitted to JAMS, or its
successor, for mediation, and if the matter is not resolved through mediation,
then it shall be submitted to JAMS, or its successor, for final and binding
arbitration pursuant to the arbitration clause set forth above. Either party may
commence mediation by providing to JAMS and the other party a written request
for mediation, setting forth the subject of the dispute and the relief
requested. The parties will cooperate with JAMS and with one another in
selecting a mediator from JAMS panel of neutrals, and in scheduling the
mediation proceedings. The parties covenant that they will participate in the
mediation in good faith, and that they will share equally in its costs. All
offers, promises, conduct and statements, whether oral or written, made in the
course of the mediation by any of the parties, their agents, employees, experts
and attorneys, and by the mediator or any JAMS employees, are confidential,
privileged and inadmissible for any purpose, including impeachment, in any
arbitration or other proceeding involving the parties, provided that evidence
that is otherwise admissible or discoverable shall not be rendered inadmissible
or non-discoverable as a result of its use in the mediation. Either party may
initiate arbitration with respect to the matters submitted to mediation by
filing a written demand for arbitration at any time following the initial
mediation session or 45 days after the date of filing the written request for
mediation, whichever occurs first. The mediation may continue after the
commencement of arbitration if the parties so desire. ­Unless otherwise
agreed by the parties, the mediator shall be disqualified from serving as
arbitrator in the case. The provisions of this Clause may be enforced by any
Court of competent jurisdiction, and the party seeking enforcement shall be
entitled to an award of all costs, fees and expenses, including attorneys’ fees,
to be paid by the party against whom enforcement is ordered.

    

    [SIGNATURE
PAGE FOLLOWS]

    
      
         

      

      
        26

        
          

        

      

      
         

      

    

    IN
WITNESS WHEREOF, the parties have executed this Agreement to be effective as of
the date set forth in the introductory paragraph.

    

    
      
        	
                AMERALIA,
      INC

              	 
      	
                NATURAL
      SODA HOLDINGS, INC.

              
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	
                By:

              	
                /s/ Bill H. Gunn

              	 
      	
                By:

              	
                /s/ Bill H. Gunn

              
	
                Name:

              	
                  Bill H. Gunn

              	 
      	
                Name:

              	
                  Bill H. Gunn

              
	
                Title:

              	
                  President

              	 
      	
                Title:

              	
                  President

              
	 
      	 
      	 
      	 
      	 
      
	
                NATURAL
      SODA, INC.

              	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	
                By:

              	
                /s/
      Bill H. Gunn

              	 
      	 
      	 
      
	
                Name:

              	
                 
      Bill H. Gunn

              	 
      	 
      	 
      
	
                Title:

              	
                 
      President

              	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	
                VAN
      MOURIK

              	 
      	
                GUNN

              
	 
      	 
      	 
      	 
      	 
      
	 
      	
                /s/
      Robert van Mourik

              	 
      	 
      	
                /s/
      Bill H. Gunn

              
	 
      	
                Robert
      van Mourik, individually

              	 
      	 
      	
                Bill
      H. Gunn, individually

              
	 
      	 
      	 
      	 
      	 
      
	
                SENTIENT
      USA  RESOURCES FUND, L.P.

              	 
      	
                SENTIENT
      USA  RESOURCES FUND II, L.P.

              
	
                By:

              	
                Sentient
      Executive MLP 1, Limited, General Partner

              	 
      	
                By:

              	
                Sentient
      Executive MLP 1, Limited, General Partner

              
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	
                By:

              	
                /s/
      Peter Cassidy

              	 
      	
                By:

              	
                /s/
      Peter Cassidy

              
	
                Name:

              	
                 
      Peter James Cassidy

              	 
      	
                Name:

              	
                 
      Peter James Cassidy

              
	
                Title:

              	
                 
      Director

              	 
      	
                Title:

              	
                  Director

              
	 
      	 
      	 
      	 
      	 
      
	
                SENTIENT
      GLOBAL RESOURCES FUND III, LP

              	 
      	 
      	 
      
	
                By:

              	
                Sentient
      GP III, L.P., General Partner

              	 
      	 
      	 
      
	 
      	
                By:
      Sentient Executive GP III,

              	 
      	 
      	 
      
	 
      	
                  
      Limited, General Partner

              	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	
                By:

              	
                /s/
      Peter Cassidy

              	 
      	 
      	 
      
	
                Name:

              	
                 
      Peter James Cassidy

              	 
      	 
      	 
      
	
                Title:

              	
                 
      Director

              	 
      	 
      	 
      

      

       

    

    
      
         

      

      
        27

        
          

        

      

      
         

      

    

    

    
      	
              Exhibit
      6.g

            	
              Form
      of Shareholders Agreement

            
	 
      	 
      
	
              Exhibit
      6.h

            	
              Form
      of Release

            

    

     

    

      
        
           

        

        
          28

          
            

          

        

        
           

        

      

      
         

        
          Exhibit
6.g

          

          SHAREHOLDERS
AGREEMENT

          

          This
Agreement is made and entered into to be effective as of the _____ day of   , 2008 by and
between Natural Soda Holdings, Inc., a Colorado corporation (“Holdings”),
AmerAlia, Inc., a Utah corporation (AmerAlia”), Sentient USA Resources Fund,
L.P., a Delaware limited partnership (“Sentient”), and any persons who hereafter
own shares of Holdings which are subject to this Agreement, all of whom shall be
referred to collectively as the “Shareholders” and individually as a
“Share­holder.”

          

          R
E C I T A L S

          

          WHEREAS, the Shareholders are
the owners of all the issued and outstanding shares of capital stock of Holdings
with each Shareholder (as of the date set forth in the introductory paragraph of
this Agreement), owning the number and percentage shown below:

          

          
            	
                    Shareholder

                  	 	
                    Number
      of Shares Owned

                  	 	 	
                    Percentage
      of Total Shares Owned

                  	 
	 	 	 	 	 	 	 	 	 
	
                    AmerAlia

                  	 	 	180,000	 	 	 	18	%
	 	 	 	 	 	 	 	 	 
	
                    Sentient

                  	 	 	820,000	 	 	 	82	%
	 	 	 	 	 	 	 	 	 
	 
      	 	 	1,000,000	 	 	 	100	%

          

          

          WHEREAS, the Shareholders
believe it to be in their best interests and in the best interests of Holdings
to document their arrangements and understandings with respect to the
disposi­tion of shares of Holdings, now owned or hereafter acquired by the
Shareholders (collectively referred to as the “Shares”).

          

          NOW, THEREFORE, in
consideration of the foregoing premises and the mutual representations,
warranties, covenants and conditions contained herein, the parties hereto agree
as follows:

           

          ARTICLE
1

          Restriction
on Transfer of Shares By AmerAlia

          

          1.1            Restriction on Transfer
.  A Shareholder shall not transfer any right, title or
interest in all or any part of its Shares, whether now owned or hereafter
acquired, except in compliance with the terms, covenants, and conditions of this
Agreement.  For purposes of this Agreement, the term “transfer” shall
include any sale, assignment, transfer, pledge, conveyance, encumbrance, gift,
hypothecation or any other disposition of any Share or Shares of
Holdings.

          
            
               

            

            
              29

              
                

              

            

            
               

            

          

          1.2            Certificates.  The
certificates representing shares that are issued and outstanding as of the date
of this Agreement shall be surrendered to Holdings for the purpose of endorsing,
and any certificates representing shares newly issued by Holdings shall be
endorsed, with a legend as follows:

          

          “THE
SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AND HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A
VIEW TO, OR IN CONNECTION WITH, THE SALE OR DISTRIBUTION THEREOF.  NO
SUCH TRANSFER MAY BE EFFECTED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT
RELATED THERETO OR AN OPINION OF COUNSEL IN A FORM SATISFACTORY TO THE COMPANY
THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT OF
1933.”

           

          

          In
addition, the shares represented by this certificate are transferable only upon
compli­ance with the provisions of a Shareholder Agreement dated  , 2008, a copy
of which is on file with the Secretary of Holdings.

          

          After
endorsement, the certificates shall be returned or delivered to the registered
owner, which shall be entitled to exercise all rights of ownership therein,
except as limited by this Agreement.  All certificates issued after
the date of this Agreement, which represent Shares subject to this Agreement
(including any shares that are permitted to be transferred after compliance with
the terms of this Agreement), shall be endorsed as set forth above.

          

          1.3            Capital
Adjustments.  In the event that during the term of this
Agreement any share dividend or other distribution is made with respect to all
or any of the Shares (payable in securi­ties of Holdings), or any
reclassification, readjustment, split, reverse split or other change is declared
or made in the capital structure of Holdings, all new, substitute or additional
shares or other securities issued by reason of such change shall be held by the
registered owner and any permitted successor or assign of the registered owner
under and restricted by the terms of this Agreement and certificates
representing such shares shall bear the foregoing legend.

          

          ARTICLE
2

          Transfers

          

          2.1            Right of First
Refusal.  Upon receipt by AmerAlia (including any successor or
assign of AmerAlia) of a bona fide offer for the purchase of any or all its
Shares of Holdings which such Shareholder desires to accept, AmerAlia (including
any successor or assign of AmerAlia) (“Offering Shareholder”) shall offer to
sell such Shares (the “Offered Shares”) to Holdings and Sentient, as
follows:

          
            
               

            

            
              30

              
                

              

            

            
               

            

          

          2.1.1         Notice.  The
Offering Shareholder shall deliver a written notice to Holdings and Sentient
(the “Notice”).  The Notice shall state that the Offering Shareholder
offers to sell the Offered Shares to Holdings and/or Sentient for the same price
and upon the same terms and condi­tions offered by the bona fide prospective
purchaser. Such prospective purchaser’s offer shall include a cash earnest money
deposit of at least 10% of the proposed purchase price to be held in trust by
Holdings pursuant to the terms of this Section. The earnest money deposit must
be delivered to the Treasurer of Holdings contemporaneous with the transmission
of the Notice to Sentient. Included in the Notice shall be a statement of the
Offering Shareholder’s agreement to transfer to the prospective purchaser if the
Notice is not accepted, the name and address of the prospective transferee, the
number of Shares involved in the proposed transfer, and the price, terms and
conditions of the proposed transfer.  The Offering Shareholder shall
transmit the Notice to the Secretary of Holdings and Sentient by certified mail
or personal delivery, furnishing a copy of the aforesaid written offer to
purchase from the prospective purchaser together with proof the earnest money
deposit has been made.  If the proposed purchase is to be on terms
other than cash and/or deferred payments, and the parties cannot agree on a
“cash equivalent” value, the certified public accountant of Holdings will
determine the “cash equivalent” value of the offer, which determination shall be
controlling for the purposes of this Agreement.

          

          2.1.2         Exercise of Right of First
Refusal.  Within twenty (20) days after the Secretary of
Holdings receives the Notice together with the cash deposit, Holdings may elect
to purchase all or part of the Offered Shares by delivering to the Shareholders
a written notice of its election to purchase all or part of the Offered
Shares.  If Holdings does not purchase all or part of the Offered
Shares, within thirty (30) days thereafter (50 days after receipt by the
Secretary of Holdings of the Notice), Sentient may elect to purchase the
remaining Offered Shares by providing the Offering Sharehold­er a written
notice of its election to purchase.  Neither Holdings nor Sentient
exercising the right of first refusal shall be bound to perform any non-monetary
terms contained in the prospective purchaser’s offer which cannot reasonably be
performed by it.

          

          2.1.3         Closing.  Closing
of the sale of any Shares for the prices and under the terms and conditions
described in this Section shall be held in the principal office of Holdings at
10:00 A.M., Mountain Time on the later of the closing date described in the bona
fide offer, or the date following receipt by Holdings of the Notice by sixty
(60) days.

          

          2.1.4         Sale to Third
Party.  If neither Sentient nor Holdings exercises its right of
first refusal within the prescribed time, the Offering Shareholder shall make a
bona fide transfer in strict accordance with the terms and conditions stated in
the Notice; and the person acquiring such Shares shall be a “Share­holder”
subject to all the terms and covenants of this Agreement.  In such
case, the Offering Shareholder shall not be obligated to transfer any of the
Offered Shares to Holdings or any of the Shareholders, since their right to
purchase is dependent upon the Offering Sharehold­er receiving notice of
intent to purchase all of the Offered Shares.  However, if the
Offering Shareholder shall fail to make such transfer within thirty (30) days
following the expiration of the time period given to Holdings and Sentient to
exercise their respective rights of first refusal, the Offering Shareholder
shall repeat the procedure in the foregoing paragraphs before transferring any
Shares in Holdings.

          
            
               

            

            
              31

              
                

              

            

            
               

            

          

          2.2            Optional Right to Purchase
Shares by Corporation.  Holdings may purchase all Shares of
AmerAlia (also herein referred to as the “Sale Shares”) for the Purchase Price
(established pursuant to Section 2.5) and under the terms and conditions set
forth in this Section if:

          

          2.2.1         Unauthorized
Transfer.  AmerAlia (including any successor or assign of
AmerAlia) transfers or attempts to transfer any of his, her or its shares
without compliance with the terms of this Agreement, after ten (10) days’
written notice of such noncompliance is given by Holdings or AmerAlia (including
any successor or assign of AmerAlia) and such noncompliance is not remedied
within such ten (10) day period;

          

          2.2.2         Levy or
Execution.  Any levy or execution is made on any Shares of
AmerAlia (including any successor or assign of AmerAlia),

          

          2.2.3         Bankruptcy.  AmerAlia
(including any successor or assign of AmerAlia) makes an assignment for the
benefit of creditors, files for protection from creditors pursuant to the United
States Bankruptcy Code or any similar state or federal law, or fails to obtain
the discharge of any involuntary filing under any bankruptcy or similar law
within 30 days after such filing; or

          

          2.2.4         Breach of Contract.
AmerAlia (including any successor or assign of AmerAlia) materially breaches any
written agreement among Shareholders, including but not limited to this
Agree­ment, and fails to remedy such breach within the remedy period
provided by such agreement.  Holdings may exercise its right to
purchase Sale Shares under this Section by delivery to AmerAlia (including any
successor or assign of AmerAlia), and any other appropri­ate party, of a
notice of election to purchase within thirty (30) days after it first is
entitled to exercise its rights under this Section, and Holdings shall become
obligated to purchase such Shares upon delivery of the notice of
election.  The purchase price and other terms of the sale shall be
established by the provisions of Section 2.5 of this
Agree­ment.

          

          2.3            Drag-Along
Right.  Subject to the receipt of any required approval by the
shareholders of AmerAlia, Inc., if Sentient receives an offer to purchase all of
its shares and it elects to accept the offer as to all of its Shares, then
Sentient have the right to require AmerAlia and any successor or assign of
AmerAlia (a “Dragged Seller”) sell all of its Shares on the same terms and
conditions (on a per share basis) as the third party is purchasing the shares of
Sentient.

          
            
               

            

            
              32

              
                

              

            

            
               

            

          

          2.4            Tag-Along
Right.  If Sentient desire to sell or otherwise dispose of all
of its Shares pursuant to an offer from a third party, then Sentient shall
provide AmerAlia with a notice of the proposed sale, describing in detail the
terms and conditions of the proposed sale.  AmerAlia shall have the
right, exercisable for a period of fifteen (15) days after receipt of the notice
of proposed sale, to require the third party purchaser to purchase all of the
Shares owned by AmerAlia on the same terms and conditions as the Shares being
purchased from Sentient. If the third party purchaser refuses to purchase all of
the Shares of AmerAlia on the same terms and conditions, then Sentient may not
sell any of its shares to such purchaser. If AmerAlia fails to exercise the
rights described in this Section within fifteen days after receipt of the notice
from Sentient, then Sentient may transfer its Shares to the purchaser on the
same terms and conditions as set forth in the notice of proposed sale and the
Tag-Along rights described in this section shall terminate and shall no longer
be enforceable. If the shareholders of AmerAlia have not approved of the
Drag-Along rights described in Section 2.3 on or before December 31, 2008, then
this Tag-Along right shall terminate and shall not be enforceable.

          

          2.5            Valuation.  The
purchase price of any Share sold pursuant to this Agreement, except as provided
with respect to the right of first refusal or drag along rights shall be
determined in the following manner:

          

          2.5.1         By
Agreement.  The fair market value of the Shares will be that
price that is mutually agreed upon by the seller and the purchaser. If seller
and the purchaser are unable to agree mutually on the fair market value of the
Shares within ten (10) days from the date of the deemed offer, the fair market
value of the Shares will be determined by one (1) or more Qualified Appraisers,
selected under the procedures in this Section.

          

          2.5.2         By
Appraisal.  If the fair market value of the Shares is to be
determined by Qualified Appraisers, the seller and purchaser will each have the
opportunity to appoint, at his, her, or its own expense, a Qualified Appraiser,
within five (5) days following the expiration of the ten (10)-day period within
which the Seller and purchaser could not mutually agree on the fair market
value. If either party shall fail to appoint a Qualified Appraiser within this
five (5)-day period, the other Qualified Appraiser shall unilaterally establish
the fair market value of the Shares by a written opinion.  If both
parties appoint Qualified Appraisers within this five (5)-day period, these two
(2) Qualified Appraisers shall establish the fair market value of the Shares in
a single written opinion agreed to by both of them.  If these two (2)
Qualified Appraisers cannot agree on the fair market value of the Shares within
ten (10) days of the appointment of the latter of them, these two (2) appointed
Qualified Appraisers shall together appoint a third Qualified Appraiser whose
sole written opinion shall establish the fair market value of the
Shares.  Any action to be taken by Holdings under this section shall
be taken by Holdings’ Board of Directors, except that the Seller shall not vote,
either as a director or Stockholder, and either directly or through an agent or
subordinate, with respect to such actions. The fees and reimbursed expenses
charged by the Qualified Appraisers in the valuation under this section shall be
borne solely equally by the purchaser and seller. Holdings will provide such
data as any Qualified Appraiser deems necessary or useful to make such
determination of the fair market value of the Shares. The parties agree that the
Shares owned by AmerAlia (or any of its successors or assigns) shall be subject
to any minority interest discount as may be deemed appropriate by the
Appraiser.

          
            
               

            

            
              33

              
                

              

            

            
               

            

          

          2.5.3         Definition of a Qualified
Appraiser.  A “Qualified Appraiser” is a professional appraiser
or independent certified public accountant who is qualified by experience and
ability to appraise the Shares. The appointment of a Qualified Appraiser shall
be made by a written instrument delivered to each of the other parties to the
purchase and Holdings.

          

          2.6            Closing.  Except
as expressly provided to the contrary herein, a closing of the purchase and sale
of any Shares subject to transfer pursuant to the provisions of this Article
shall be held within thirty (30) days after notice of exercise has been given
(the “Closing”).  If the parties cannot mutually agree on a Closing
date, time and place, the Closing shall be held on the thirtieth (30th) day
following notice of exercise or on the next business day that is not a bank
holiday in Denver, Colorado immediately following the thirtieth (30th)
day.  Absent an agreement to the contrary, the Closing shall occur at
10:00 o’clock A.M., Mountain Time, at the principal offices of
Holdings.

          

          2.7            Payment
Provisions.  The purchase price under this Agreement shall be
paid in cash, except as may otherwise be provided in the provisions of the offer
subject to the right of first refusal.

          

          2.8            Cooperation.  If
Holdings does not have sufficient surplus or other authority to permit it to
lawfully purchase all of the Shares it has the right to purchase pursuant to
this Article, all the Shareholders hereby agree to promptly take such measures
to vote their respective Shares to reduce the capital of Holdings or to take
such other steps as may be appropri­ate or necessary to enable Holdings to
purchase and pay for all of the Shares to be purchased.  If Holdings
shall, nevertheless, be unable to or refuse to purchase all of the Shares it has
agreed to purchase, then, with respect to the Shares which Holdings shall be
unable to or shall refuse to purchase, the remaining Shareholder(s) may purchase
such Shares ratably in accordance with their then respective holdings in
Holdings in accordance with the provisions of this Article as though such
Shareholders were named instead of Holdings.

          

          2.9            Duty to
Sell.  In the event either Holdings or a Shareholder becomes
obligated to purchase shares pursuant to this Agreement, AmerAlia (including any
successor or assign of AmerAlia), or any heir, assign, transferee,
successor-in-interest, trustee or personal representative of AmerAlia (including
any successor or assign of AmerAlia), shall sell the Shares for the purchase
price under the terms and conditions set forth in this
Agreement.

          
            
               

            

            
              34

              
                

              

            

            
               

            

          

          ARTICLE
3

          Other
Terms

          

          3.1            Additional Funding
Requirements.  The Shareholders have discussed the potential
capital requirements of Holdings and its wholly owned subsidiary, Natural Soda,
Inc. If the Board of Directors of Holdings determines that additional capital is
appropriate for Holdings (including capital needed to fund its subsidiary,
Natural Soda, Inc.), each of the Shareholders shall have the right for a period
of no less than thirty days to contribute its pro rata share of any additional
such additional capital.  AmerAlia agrees that Sentient shall have no
obligations to make any capital contributions to AmerAlia, whether to fund such
capital needs or otherwise. If AmerAlia is unable to or elects not to timely
fund its pro rata share of any such additional capital, Sentient may fund more
than its pro rata share with the result being that AmerAlia’s percentage
interest in Holdings will be reduced as a result. AmerAlia for itself and its
shareholders waives any claims against Sentient (including any of its successors
and assigns) resulting from (i) any inability of AmerAlia to raise additional
capital or to be able to make any contributions to the capital of Holdings, or
(ii) any contributions to Holdings made by Sentient which result in a reduction
in AmerAlia’s percentage ownership of Holdings because AmerAlia was unable to or
elects not to make its pro rata share of the contribution within thirty days
after receiving the notice described above.

          

          

          ARTICLE
4

          Termination
of Agreement

          

          4.1            Termination of
Agreement.  This Agreement shall terminate upon the occurrence
of any of the following events:

          

          4.1.1        
By
Agreement.  By written agreement to terminate this Agreement
signed by all the Share­holders of Holdings;

          

          4.1.2        
Ownership by a Sole
Shareholder.  If any one shareholder acquires all of the shares
of capital stock of Holdings;  or

          

          4.1.3        
Liquidation or
Dissolution.  The liquidation or dissolution of
Holdings.

          

          ARTICLE
5

          Miscellaneous

          

          5.1            Notices.  Any
and all offers, notices, designations, consents, acceptances, or other
communications provided for in this Agreement (collectively the “Notices”),
shall be given in writing by registered or certified mail.  Notices to
Holdings shall be addressed to the Secretary of Holdings at its principal
business office, with a copy to the other shareholders.  Notices to
any Shareholder shall be addressed to his, her or its address appearing on the
books of Holdings.  Each such notice shall be deemed given and
delivered at the time it is personally delivered or properly addressed and
mailed with sufficient postage prepaid in any post office or branch post office
regularly maintained by the United States Government.  If not provided
in accordance with the provisions of this Section, a notice shall be ineffective
for all purposes under this Agreement, even if actually
received.

          
            
               

            

            
              35

              
                

              

            

            
               

            

          

          5.2            Execution of
Documents.  Each Shareholder hereby agrees for himself, herself
or itself, and his, her or its successors and assigns, to execute and deliver
any and all documents or legal instruments which may be necessary or proper to
carry out the provisions of this Agreement.

          

          5.3            Damages.  The
Shareholders hereby declare that it is impossible to measure in money the
damages which will accrue to any Shareholder by reason of Holdings’ or any
Shareholder’s failure to perform any of the obligations under this
Agreement.  Therefore, if any Shareholder shall institute any action
or proceeding to enforce the provisions herein, any person (including Holdings)
against whom such action or proceeding is brought hereby waives the claim or
defense therein that such Shareholder has an adequate remedy at law, and such
person shall not urge in any such action or proceeding the claim or defense that
such remedy at law exists.  Each of the parties hereto expressly
agrees that the equitable remedy of specific performance is the appropriate
remedy in addition to any monetary damages or other remedies that may be
awarded.

          

          5.4            Invalidity.  The
invalidity or inability to enforce of any provision or provisions of this
Agreement shall not affect the other provisions of this Agreement, and this
Agreement shall be construed in all respects as if any invalid or unenforceable
provisions were omitted.

          

          5.5            Amendment of
Agreement.  No change, termination, or modification of this
Agreement shall be valid unless the same be in writing and executed by all the
parties hereto.

          

          5.6            Parties Bound by
Agreement.  This Agreement shall be binding upon Holdings and
the Shareholders and their respective heirs, personal representatives,
successors and assigns.  This Agreement shall be construed in
accordance with Colorado law.

          

          5.7            Execution.  This
Agreement may be executed in any number of counterparts, each of which shall be
deemed to be an original and all of which shall constitute one and the same
agreement.

          

          5.8            Integration.  This
Agreement contains the entire agreement between the parties with respect to the
subject matter hereof and supersedes all prior or contemporane­ous
discussions, negotiations and agreements, whether written or oral.

          

          5.9            Attorneys’ Fees and
Costs.  In the event of any litiga­tion to enforce any
provision of this Agreement, the prevailing party shall be entitled to recovery
attorneys’ fees and costs incurred in such litigation in addition to any other
damages awarded or other determinations made.

          
            
               

            

            
              36

              
                

              

            

            
               

            

          

          5.10          Independent
Covenants.  Each of the agreements or covenants contained in
this Agreement shall be deemed to be independent of each of the others and to be
supported by good and adequate consideration.

          

          5.11          Time of the
Essence.  Time shall be of the essence in performing the
obligations contained in this Agreement.

          

          5.12          Dispute
Resolution.  Any dispute, claim or controversy arising out of
or relating to this Agreement or the breach, termination, enforcement,
interpretation or validity thereof, including the determination of the scope or
applicability of this agreement to arbitrate, shall be determined by arbitration
in Douglas County, Colorado, before three arbitrators. The arbitration shall be
administered by JAMS pursuant to its Comprehensive Arbitration Rules and
Procedures. Judgment on the Award may be entered in any court having
jurisdiction. This clause shall not preclude parties from seeking provisional
remedies in aid of arbitration from a court of appropriate
jurisdiction.  The arbitrator shall, in the Award, allocate all or
part of the costs of the arbitration, including the fees of the arbitrator and
the reasonable attorneys’ fees of the prevailing party.

          

          The
parties agree that any and all ­disputes, claims or controversies arising
out of or relating to this Agreement shall be submitted to JAMS, or its
successor, for mediation, and if the matter is not resolved through mediation,
then it shall be submitted to JAMS, or its successor, for final and binding
arbitration pursuant to the arbitration clause set forth above. Either party may
commence mediation by providing to JAMS and the other party a written request
for mediation, setting forth the subject of the dispute and the relief
requested. The parties will cooperate with JAMS and with one another in
selecting a mediator from JAMS panel of neutrals, and in scheduling the
mediation proceedings. The parties covenant that they will participate in the
mediation in good faith, and that they will share equally in its costs. All
offers, promises, conduct and statements, whether oral or written, made in the
course of the mediation by any of the parties, their agents, employees, experts
and attorneys, and by the mediator or any JAMS employees, are confidential,
privileged and inadmissible for any purpose, including impeachment, in any
arbitration or other proceeding involving the parties, provided that evidence
that is otherwise admissible or discoverable shall not be rendered inadmissible
or non-discoverable as a result of its use in the mediation. Either party may
initiate arbitration with respect to the matters submitted to mediation by
filing a written demand for arbitration at any time following the initial
mediation session or 45 days after the date of filing the written request for
mediation, whichever occurs first. The mediation may continue after the
commencement of arbitration if the parties so desire. ­Unless otherwise
agreed by the parties, the mediator shall be disqualified from serving as
arbitrator in the case. The provisions of this Clause may be enforced by any
Court of competent jurisdiction, and the party seeking enforcement shall be
entitled to an award of all costs, fees and expenses, including attorneys’ fees,
to be paid by the party against whom enforcement is ordered.

          

          [Signature
Page Follows]

          
            
               

            

            
              37

              
                

              

            

            
               

            

          

          IN WITNESS WHEREOF, the
parties hereto have executed this Agreement to be effective as of the date set
forth in the initial paragraph hereof, notwithstanding the actual date of
execution.

           

          
            
              
                	
                        NATURAL
      SODA HOLDINGS, INC.

                      	
                        AMERALIA,
      INC.

                      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	
                        By:

                      	 
      	 
      	
                        By:

                      	 
      
	
                        Name:

                      	 
      	 
      	
                        Name:

                      	 
      
	
                        Title:

                      	 
      	 
      	
                        Title:

                      	 
      
	 
      	 
      	 
      	 
      	 
      
	
                        SENTIENT
      USA  RESOURCES FUND, L.P.

                      	 
      	 
      	 
      
	
                        By:

                      	
                        Sentient
      Executive MLP 1, Limited, General Partner

                      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	
                        By:

                      	 
      	 
      	 
      	 
      
	
                        Name:

                      	 
      	 
      	 
      	 
      
	
                        Title:

                      	 
      	 
      	 
      	 
      

              

            

          

           

        

        
          
          

        

        
          38

          
            

          

        

        
          
          

        

      

      Exhibit
6.h

      

      GENERAL
RELEASE

      

      This General Release (“General
Release”) is being executed and delivered on October __, 2008, by and among
AmerAlia, Inc., a Utah corporation (“AmerAlia”), Natural Soda Holdings, Inc., a
Colorado corporation (“NSHI”), Natural Soda, Inc., a Colorado corporation
(“NSI”), Robert van Mourik (“van Mourik”), and Bill H. Gunn (“Gunn”)(AmerAlia,
NSHI, NSI, van Mourik and Gunn are referred to herein as the “AmerAlia Parties”)
and is for the benefit of Sentient USA Resources Fund, L.P. (“Sentient LP ”),
Sentient USA Resources Fund II, L.P. (“Sentient II LP”), Sentient Global
Resources Fund III, LP (“Fund III”) and each of their Associated Parties
(Sentient LP,  Sentient II LP and Fund III are referred to herein as
the “Sentient Parties”).

      

      Recitals

      

      WHEREAS, the AmerAlia Parties
and the Sentient Parties have entered into a Restructuring Agreement dated
September ___, 2008 (the “Restructuring Agreement”);

      

      WHEREAS, each of the AmerAlia
Parties represents and warrants that he or it will receive direct and indirect
benefits as a result of closing of the Restructuring Agreement and the
transactions described therein and in order to induce the Sentient Parties to
close those transactions, the AmerAlia Parties have agreed to provide this
Release;

       

      WHEREAS, the AmerAlia Parties
are delivering this Release pursuant to the Restructuring
Agreement;

       

      WHEREAS, the AmerAlia Parties
intend to waive and release all claims they or any of them has against the
Sentient Parties and each of the other AmerAlia Parties; and

       

      WHEREAS, notwithstanding the
provisions of the preceding Recital, the parties to this General Release do not
intend to release any of the Retained Rights (defined below).

      

      Agreement

      

      In
consideration of the recitals, the covenants contained herein and in the
Restructuring Agreement, and for other valuable consideration (the receipt and
sufficiency of which are hereby acknowledged by the parties), the parties hereby
covenant and agree as follows:

      

      1.       
     Releases; Retained
Rights.

       

      (a)           Except
for the Retained Rights, each of the AmerAlia Parties for themselves and each
person under any of the AmerAlia Parties’ direct or indirect control, hereby
generally, irrevocably, unconditionally and completely release and forever
discharge each of the Sentient Parties and each of their Associated Parties
(specifically including, but not limited to, Peter Cassidy, Mark Jackson,
Sentient Resources USA, Inc., and Sentient Asset Management USA, Inc.) from, and
each of the AmerAlia Parties hereby irrevocably, unconditionally and completely
waives and relinquishes, each of the Released Claims.

       

      (b)           In
addition, except for the Retained Rights, van Mourik and Gunn for themselves and
each person or entity under the each of their direct or indirect control, hereby
generally, irrevocably, unconditionally and completely release and forever
discharge each of AmerAlia, NSHI and NSI and each of their Associated Parties
from, and van Mourik and Gunn hereby irrevocably, unconditionally and completely
waives and relinquishes, each of the Released Claims.

      
        
           

        

        
          39

          
            

          

        

        
           

        

      

      (c)           Each
of the AmerAlia Parties generally, irrevocably, unconditionally and completely
release, waive, and relinquish any and all rights of contribution, exoneration
or any other similar right or claim to cause any of the other AmerAlia Parties
to pay or reimburse any amounts owed as a result of this Release.

       

      (d)           Nothing
in this General Release, including the releases set forth in Sections 1(a), 1(b)
and 1(c) above, is intended to or shall be construed as a release, acquittal,
discharge, covenant not to sue or indemnity of any and all claims related to or
arising from the Retained Rights.

       

      2.       
     Definitions.

       

      (a)           The
term “Associated Parties” when used herein shall mean and
include:  (i) the named party’s predecessors, successors, executors,
administrators, heirs and estate; (ii) the named party’s past, present and
future assigns, shareholders, partners, owners of partners, investors, direct
and indirect parents, subsidiaries and affiliates, and all of their officers,
directors, attorneys or legal representatives, agents and representatives; (iii)
each entity that the named party has the power to bind (by the named party’s
acts or signature) or over which the named party directly or indirectly
exercises control; and (iv) each entity of which the named party owns, directly
or indirectly, at least 50% of the outstanding
equity, beneficial, proprietary, ownership or voting interests.

       

      (b)           The
term “Claims” shall mean and include all past, present and future disputes,
claims, controversies, demands, rights, rights to appeal, liens, allegations,
obligations, liabilities, actions and causes of action of every kind and nature
(whether in law or equity), including: (i) any unknown, unsuspected or
undisclosed claim; (ii) any claim or right that may be asserted or exercised by
a Releasor in Releasor’s capacity as a stockholder, director, officer or
employee or in any other capacity; and (iii) any claim, counterclaim, right or
cause of action based upon any breach of any express, implied, oral or written
contract or agreement.

       

      (c)           The
term “Releasee” means each party named in Section 1 as being generally,
irrevocably, unconditionally and completely released and forever
discharged.

       

      (d)           The
term “Released Claims” shall mean and include each and every Claim that (i)
Releasor or any person under the direct or indirect control of the Releasor may
have had in the past, may now have or may have in the future against any of the
Releasees or any Associated Party of the Releasee, and (ii) has arisen or arises
directly or indirectly out of, or relates directly or indirectly to, any
circumstance, agreement, activity, action, omission, event or matter occurring
or existing on or prior to the date of this General Release. Notwithstanding the
breadth of the definition of Claims and Released Claims, the parties do not
intend to include any of the Retained Rights as part of the Released
Claims.

       

      (e)            The
term “Releasor” means each party named in Section 1 as generally, irrevocably,
unconditionally and completely releasing and forever discharging one or more
Releasees.

       

      (f)     
       The term “Retained Rights” shall mean
and include: (i) any rights or obligations arising under this General Release,
(ii) any rights or obligations arising under the Restructuring Agreement, (iii)
rights under the Shareholders Agreement (iv) rights of indemnification under
AmerAlia’s, NSHI’s and NSI’s charter documents, and (v) rights under the stock
options and written obligations reflected on the financial statements of
AmerAlia, NSHI and NSI which have been delivered to the Sentient Parties prior
to the execution and delivery of this Release (e.g., rights as holders of
debentures, notes, stock options and accrued but unpaid
compensation).

       

      3.        
    Representations and
Warranties.  Each Releasor represents and warrants
that:

      
        
           

        

        
          40

          
            

          

        

        
           

        

      

      (a)           No
promise, representation, inducement, or agreement that is not expressed in this
General Release has been made to any of the Releasors; none of the Releasors is
relying on any promise, representation, inducement, or agreement in entering
into this General Release except as expressly set forth in this General Release;
and each of the Releasors has consulted with counsel of its own choosing prior
to entering into this General Release and knowingly and freely enters this
General Release without duress;

       

      (b)           Releasor
has not assigned, transferred, conveyed or otherwise disposed of any of its
Released Claims against any of the Releasees, or any direct or indirect interest
in any such Released Claims, in whole or in part;

       

      (c)           to
the best of the Releasor’s knowledge, no other person or entity has any interest
in any of its Released Claims;

       

      (d)           no
person under the direct or indirect control of Releasor has or had any Claim
against any of its Releasees or their Associated Parties;

       

      (e)           no
person under the direct or indirect control of Releasor will in the future have
any Claim against its Releasees or their Associated Parties that arises directly
or indirectly from or relates directly or indirectly to any circumstance,
agreement, activity, action, omission, event or matter occurring or existing on
or before the date of this General Release;

       

      (f)           this
General Release has been duly and validly executed and delivered by
Releasor;

       

      (g)           this
General Release is a valid and binding obligation of the Releasor and persons
under its direct or indirect control, and is enforceable against Releasor and
each person under the Releasor’s control in accordance with its
terms;

       

      (h)           there
is no action, suit, proceeding, dispute, litigation, claim, complaint or
investigation by or before any court, tribunal, governmental body, governmental
agency or arbitrator pending or, to the best of the knowledge of Releasor,
threatened against Releasor or any person under Releasor’s direct or indirect
control that challenges or would challenge the execution and delivery of this
General Release or the taking of any of the actions required to be taken by
Releasor under this General Release;

       

      (i)           neither
the execution and delivery of this General Release nor the performance hereof
will (i) result in any violation or breach of any agreement or other instrument
to which Releasor or any person under Releasor’s direct or indirect control is a
party or by which Releasor or any person under Releasor’s direct or indirect
control is bound, or (ii) result in a violation or any law, rule, regulation,
treaty, ruling, directive, order, arbitration award, judgment or decree to which
Releasor or any person under Releasor’s direct or indirect control is subject;
and

       

      (j)           the
persons executing this General Release on behalf of the Releasors have full and
complete authority to do so, and to make and give the promises, releases and
covenants set forth in this General Release and no authorization, instruction,
consent or approval of any person or entity is required to be obtained by
Releasor or any person under Releasor’s direct or indirect control in connection
with the execution and delivery of this General Release or the performance
hereof.

       

      4.       
     Indemnification.  Without
in any way limiting any of the rights or remedies otherwise available to any
Releasee, each Releasor, severally, shall indemnify and hold harmless each
Releasee against and from any loss, damage, injury, harm, detriment, lost
opportunity, liability, exposure, claim, demand, settlement, judgment, award,
fine, penalty, tax, fee, charge or expense (including attorneys’ fees) that is
directly or indirectly suffered or incurred at any time by such Releasee, or to
which such Releasee otherwise becomes subject at any time, and that arises
directly or indirectly out of or by virtue of, or relates directly or indirectly
to, (a) any failure on the part of Releasor to observe, perform or abide by, or
any other breach of, any restriction, covenant, obligation, representation,
warranty or other provision contained herein, or (b) the assertion or purported
assertion of any of the Released Claims by Releasor or any of Releasor’s
Associated Parties.

      
        
           

        

        
          41

          
            

          

        

        
           

        

      

      5.        
    Miscellaneous.

       

      (a)           This
General Release sets forth the entire understanding of the parties relating to
the subject matter hereof and supersedes all prior agreements and understandings
among or between the Releasor and any of the Releasees relating to the subject
matter hereof.  No modification of this General Release shall be
binding, unless evidenced in writing and signed by an authorized representative
of the person against which such modification is being asserted.  No
breach of any provision of this General Release can be waived except in
writing.  Waiver of any one breach shall not be deemed to be a waiver
of any other breach of the same or any other provisions hereof.

      

      (b)           If
any provision of this General Release or any part of any such provision is held
under any circumstances to be invalid or unenforceable in any jurisdiction, then
(i) such provision or part thereof shall, with respect to such circumstances and
in such jurisdiction, be deemed amended to conform to applicable laws so as to
be valid and enforceable to the fullest possible extent, (ii) the invalidity or
unenforceability of such provision or part thereof under such circumstances and
in such jurisdiction shall not affect the validity or enforceability of such
provision or part thereof under any other circumstances or in any other
jurisdiction, and (iii) such invalidity or enforceability of such provision or
part thereof shall not affect the validity or enforceability of the remainder of
such provision or the validity or enforceability of any other provision of this
General Release.  Each provision of this General Release is separable
from every other provision of this General Release, and each part of each
provision of this General Release is separable from every other part of such
provision.

      

      (c)           This
General Release shall be construed in accordance with, and governed in all
respects by, the laws of the State of Colorado (without giving effect to
principles of conflicts of laws).

      

      (d)           Any
dispute, controversy, or claim arising under this General Release, including
alleged breaches hereof and defaults hereunder, shall be resolved by arbitration
in accordance with the comprehensive arbitration rules and procedures of JAMS
then in effect.  Arbitration proceedings shall be held in Denver,
Colorado, or some other mutually acceptable location, and arbitration awards may
be enforced in any court of competent jurisdiction.  Arbitration shall
be conducted by a single arbitrator selected by the parties who shall be
qualified by training and experience to pass upon the matter of the dispute and
shall not have to power to add to, ignore or modify any term or condition of
this Agreement.  In the event the parties are unable to agree upon a
single arbitrator within a thirty (30) day period, the arbitrator shall be
selected by JAMS. The arbitration decision shall not go beyond what is necessary
for the interpretation and application of this Agreement and shall be in writing
and shall set forth findings of fact and conclusions of law, as appropriate,
supported by a reasoned opinion.  The cost of such arbitration shall
be borne as determined by the arbitrator; provided however, each party shall
bear the costs of preparing and presenting its own case.

      
        
           

        

        
          42

          
            

          

        

        
           

        

      

      (e)           This
General Release may be executed in several counterparts, each of which shall
constitute an original and all of which, when taken together, shall constitute
one agreement.

      

      (f)           Releasor
shall execute and/or cause to be delivered to each Releasee such instruments and
other documents, and shall take such other actions, as such Releasee may
reasonably request for the purpose of carrying out or evidencing any of the
actions contemplated by this General Release.

      

      (g)           If
any legal action or other legal proceeding relating to this General Release or
the enforcement of any provision hereof is brought by Releasor or any Releasee,
the prevailing party shall be entitled to recover reasonable attorneys’ fees,
costs and disbursements to the extent actually incurred (in addition to any
other relief to which the prevailing party may be entitled).

      

      (h)           This
General Release shall inure to the benefit of the Releasees and their Associated
Parties, their successors, representatives, agents, officers, directors,
employees and assigns and shall be effective with respect to, and binding upon
and enforceable against the Releasors and their Associated Parties.

      

      (i)           Whenever
required by the context, the singular number shall include the plural, and vice
versa; the masculine gender shall include the feminine and neuter genders; and
the neuter gender shall include the masculine and feminine genders.

      

      (j)           Any
rule of construction to the effect that ambiguities are to be resolved against
the drafting party shall not be applied in the construction or interpretation of
this General Release.

      

      (k)           As
used in this General Release, the words “include” and “including” and variations
thereof, shall not be deemed to be terms of limitation, and shall be deemed to
be followed by the words “without limitation.”

      

      

      [SIGNATURE
PAGE FOLLOWS]

      
        
           

        

        
          43

          
            

          

        

        
           

        

      

      In Witness Whereof, the
parties have caused this General Release to be executed as of the date first
above written.

      

      

      
        	
                AMERALIA,
      INC

              	 
      	
                NATURAL
      SODA HOLDINGS, INC.

              
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	
                By:

              	 
      	 
      	
                By:

              	 
      
	
                Name:

              	 
      	 
      	
                Name:

              	 
      
	
                Title:

              	 
      	 
      	
                Title:

              	 
      
	 
      	 
      	 
      	 
      	 
      
	
                NATURAL
      SODA, INC.

              	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	
                By:

              	 
      	 
      	 
      	 
      
	
                Name:

              	 
      	 
      	 
      	 
      
	
                Title:

              	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	
                Robert
      van Mourik, individually

              	 
      	 
      	
                Bill
      H. Gunn, individually

              

      

      

       

      44EXHIBIT
      10.1

     

    CGSI
      AEQUITAS UNSECURED BRIDGE NOTE
      PURCHASE AGREEMENT

     

    THIS
      CGSI
      AEQUITAS UNSECURED BRIDGE NOTE PURCHASE AGREEMENT (“Agreement”) is made as of
      September 29, 2008, by and between Capital
      Growth Systems, Inc.,
      a
      Florida corporation (the “Company” or “Borrower”) and Aequitas Catalyst Fund,
      LLC -Series B (“Lender”). Capitalized terms not otherwise defined in this
      Agreement shall have the meanings ascribed to them in Section 1
      below.

     

    WHEREAS,
      reference is hereby made to that certain Securities Purchase Agreement, dated
      March 11, 2008 (the “March Purchase Agreement”), among the Company and the
      Holders signatory thereto (or their respective predecessors in interest),
      pursuant to which the Holders purchased from the Company (or from a predecessor
      holder of securities from the March Purchase Agreement) securities from an
      aggregate placement of $19,000,000 in principal amount of Variable Rate Secured
      Convertible Debentures of the Company (the “March Debentures”) and were issued
      warrants exercisable for shares of Common Stock (the “March
      Warrants”).

     

    WHEREAS,
      Lender intends to fund a $500,000 unsecured loan to the Company (the “Loan”), to
      be evidenced by the Note which will either: (i) if the Financing Conditions
      have
      not been met on or before the Outside Date, automatically convert to a secured
      loan evidenced by a Variable Rate Secured Convertible Debenture substantially
      in
      the form of the March Debenture, but will be an unsecured instrument and
      subordinate to the March Debentures (such new instrument being the “New
      Unsecured Debenture”) or (ii) if the Financing Conditions have been met on or
      prior to the Outside Date, then on the date of the Subsequent Financing,
      automatically convert into the Subsequent Debenture.

     

    NOW,
      THEREFORE, THE PARTIES HEREBY AGREE AS FOLLOWS:

     

    1. Definitions.

     

    (a) “Financing
      Conditions”
shall
      mean the Company completing a Subsequent Financing of which the Loan becomes
      a
      part of less than 10% of the subsequent secured financing.

     

    (b) “Knowledge”
shall
      mean the actual knowledge of any officer of the Company.

     

    (c) “March
      Security Agreement”
shall
      mean the Security Agreement entered into by the Company in connection with
      the
      March Purchase Agreement.

     

    (d) “Note”
shall
      mean the promissory note issued to Lender pursuant to Section 2
      below,
      the form of which is attached hereto as Exhibit A.

     

    (e) “Outside
      Date”
shall
      mean October 31, 2008.

     

    (f) “Subsequent
      Debenture”
shall
      mean a Variable Rate Secured Convertible Debenture issued pursuant to a
      Subsequent Financing, having a face amount of $500,000 plus any interest accrued
      on the Note through the date of issuance of the Subsequent Debenture (unless
      such interest is paid by the Company). 

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (g) “Subsequent
      Financing”
shall
      mean the placement by the Company of not less than $7 million in principal
      amount of Variable Rate Secured Convertible Debentures after the date hereof
      but
      prior to the Outside Date pursuant to a Subsequent Securities Purchase Agreement
      substantially in accordance with the Term Sheet, dated August 6, issued by
      Midsummer Investment Ltd. to the Company, which was previously provided to
      Lender.

     

    (h) “Subsequent
      Securities Purchase Agreement”
shall
      mean the security purchase agreement entered into by the Company and those
      purchasers of Subsequent Debentures (“Subsequent Purchasers”) pursuant to which
      Subsequent Purchasers purchase Subsequent Debentures.

     

    (i) “Subsequent
      Security Agreement”
shall
      mean the Security Agreement entered into by the Company pursuant to a Subsequent
      Financing

     

    (j) “Subsequent
      Warrants”
shall
      mean the form of warrant issued to the Subsequent Purchasers in connection
      with
      a Subsequent Financing. 

     

    2. Terms.
      In
      return for the Loan, the Company shall sell and issue to Lender, upon funding
      of
      the Loan, the Note, bearing simple interest at five percent (5%) per annum,
      which shall not call for any payment prior to the Outside Date, and which shall
      automatically convert to a Subsequent Debenture or a New Unsecured Debenture
      no
      later than the Outside Date.

     

    If
      a
      Subsequent Financing has occurred on or before the Outside Date, then
      immediately upon completion of the Subsequent Financing, the Note shall
      automatically, without any further action on the part of Lender or the Company,
      convert into a Subsequent Debenture and shall be replaced by the form of
      debenture evidencing the Subsequent Debenture. In such a case, Lender hereby
      agrees to become a party to the Subsequent Securities Purchase Agreement as
      a
      Subsequent Purchaser (and execute a counterpart copy thereof as well as such
      other ancillary documents and agreements to be executed by the other lenders
      participating as parties to the Subsequent Securities Purchase Agreement),
      and
      the Company hereby agrees to grant to Lender a security interest in any
      collateral listed in the Subsequent Security Agreement and to list Lender as
      a
      Secured Party thereto, and to issue to Lender warrants to purchase such number
      of shares of the Company’s common stock in the form of the Subsequent Warrants
      issued to the Subsequent Purchasers based upon the pro rata allocation available
      for lenders funding $500,000 of Subsequent Debentures. Lender acknowledges
      that
      notwithstanding anything to the contrary contained herein, the Company shall
      not
      be obligated to specifically reserve shares of common stock underlying any
      debentures or warrants issuable to Lender under the Subsequent Securities
      Purchase Agreement or the Subsequent Financing until such point in time that
      the
      Company is obligated to do so under such agreements, as applicable.

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    If
      a
      Subsequent Financing has not occurred by the Outside Date, then on the day
      immediately following the Outside Date, the Note shall automatically, without
      any further action on the part of Lender or the Company, convert into a New
      Unsecured Debenture, substantially in the form of the March Debenture, as
      prepared by the Company in its good faith discretion, having a maturity date
      which shall be 30 days following the maturity date of the March Debentures,
      and
      which shall also differ from the March Debentures in the following manners:
      it
      shall be an unsecured note, it shall have events of default comparable to those
      contained in this Agreement, its date shall be the Outside Date, all rights
      associated with it shall accrue starting on the Outside Date and the Trigger
      Date (as defined in the March Debentures) shall be October 11, 2008. At the
      time
      of issuance of the New Unsecured Debenture, the Company agrees to issue to
      Lender warrants to purchase 500,000 shares of the Company’s common stock in the
      form of the March Warrants, subject to Lender’s understanding that the Company’s
      obligation to reserve shares of Common Stock underlying said warrant shall
      not
      come into effect until 180 days following the date of the issuance of the
      warrant. Lender acknowledges and agrees that: (i) until the issuance of either
      the Subsequent Debenture or the New Unsecured Debenture, the Lender will not
      take any action to enforce its loan evidenced by the Note; and (ii) in the
      event
      of the issuance of the New Unsecured Debenture, the Lender agrees: (a) stand
      still in seeking to enforce its rights until its or maturity or it shall enter
      into such form of intercreditor agreement as may be acceptable between it and
      the holders of a majority of the outstanding March Debentures; and (b) should
      the March Debentures either be replaced through a refinancing or subordinated
      as
      to priority of payment with another secured lender (any such lenders
      collectively being the “Replacement Lender”), then in such event, the Lender
      agrees to standstill as to the enforcement of its rights under the New Unsecured
      Debenture until such time as it enters into an intercreditor agreement in form
      and substance satisfactory to the Replacement Lender.

     

    Notwithstanding
      anything to the contrary contained herein or in the March Purchase Agreement,
      Lender shall be permitted to hold in excess of 10% of the beneficial ownership
      of the capital stock of the Company.

     

    3. Closing.
      The
      closing for the purchase of the Note shall take place at the offices of the
      Company at 12:00 p.m., on the date of execution of this Agreement or such other
      date mutually agreed to by the parties.

     

    4. Representations
      and Warranties of the Company.
      In
      connection with the transactions provided for herein, the Company hereby
      represents and warrants to Lender that:

     

    
      	 	
              4.1

            	
              Authorization.
                The Company has the requisite corporate power and authority to enter
                into
                and to consummate the transactions contemplated by this Agreement
                and
                otherwise to carry out its obligations hereunder. The execution and
                delivery of this Agreement by the Company and the consummation by
                it of
                the transactions contemplated hereby have been duly authorized by
                all
                necessary action on the part of the Company and no further action
                is
                required by the Company, its board of directors or its stockholders
                in
                connection therewith. This Agreement has been duly executed by the
                Company
                and, when delivered in accordance with the terms hereof will constitute
                the valid and binding obligation of the Company enforceable against
                the
                Company in accordance with its terms except (i) as limited by general
                equitable principles and applicable bankruptcy, insolvency,
                reorganization, moratorium and other laws of general application
                affecting
                enforcement of creditors’ rights generally, (ii) as limited by laws
                relating to the availability of specific performance, injunctive
                relief or
                other equitable remedies and (iii) insofar as indemnification and
                contribution provisions may be limited by applicable
                law.

            

    

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    
      	 	
              4.2

            	
              No
                Conflicts.
                The execution, delivery and performance of this Agreement by the
                Company
                and the consummation by the Company of the transactions contemplated
                hereby do not and will not: (i) conflict with or violate any provision
                of
                the Company’s certificate or articles of incorporation, bylaws or other
                organizational or charter documents, or (ii) conflict with, or constitute
                a default (or an event that with notice or lapse of time or both
                would
                become a default) under, result in the creation of any lien upon
                any of
                the properties or assets of the Company, or give to others any rights
                of
                termination, amendment, acceleration or cancellation (with or without
                notice, lapse of time or both) of, any material agreement, credit
                facility, debt or other material instrument (evidencing a Company
                debt or
                otherwise) or other material understanding to which the Company is
                a party
                or by which any property or asset of the Company is bound or affected,
                or
                (iii) conflict with or result in a violation of any law, rule, regulation,
                order, judgment, injunction, decree or other restriction of any court
                or
                governmental authority to which the Company is subject (including
                federal
                and state securities laws and regulations), or by which any property
                or
                asset of the Company is bound or affected; except in the case of
                each of
                clauses (ii) and (iii), such as could not have or reasonably be expected
                to result in a material adverse effect on the financial prospects
                of the
                Company.

            

    

     

    4.3 No
      Event of Default; Consent and Waiver.
      No
      Event of Default (as defined in the March Debentures) under the March Debentures
      exists or is continuing as of the date hereof. Each of the Holders of the March
      Debentures and the Company has executed, delivered and become bound by that
      certain Consent and Waiver, of even date herewith, by and among the Company
      and
      the Holders.

     

    4.4 Private
      Placement.
      Assuming the accuracy of the Lender’s representations and warranties set forth
      in this Agreement, no registration under the Securities Act of 1933 is required
      for the offer and sale of the securities offered hereby (“Securities”) by the
      Company to the Lender as contemplated hereby. The issuance and sale of the
      Securities hereunder does not contravene the rules and regulations of the
      trading market on which the Company’s Common Stock is traded.

     

    4.5 Disclosure.
      Except
      with respect to the material terms and conditions of the transactions
      contemplated by this Agreement, the New Debentures and the transaction
      associated with the issuance of the New Debentures, the Company confirms that
      neither it nor any other Person acting on its behalf has provided Lender or
      its
      agents or counsel with any information that it believes constitutes or might
      constitute material, nonpublic information. The Company understands and confirms
      that the Lender will rely on the foregoing representation in effecting
      transactions in securities of the Company. All disclosure furnished by or on
      behalf of the Company to the Lender regarding the Company, its business and
      the
      transactions contemplated hereby, including the Disclosure Schedules to this
      Agreement, is true and correct and does not contain any untrue statement of
      a
      material fact or omit to state any material fact necessary in order to make
      the
      statements made therein, in light of the circumstances under which they were
      made, not misleading. The press releases disseminated by the Company during
      the
      twelve months preceding the date of this Agreement taken as a whole do not
      contain any untrue statement of a material fact or omit to state a material
      fact
      required to be stated therein or necessary in order to make the statements
      therein, in light of the circumstances under which they were made and when
      made,
      not misleading. The Company acknowledges and agrees that Lender does not make
      and has not made any representations or warranties with respect to the
      transactions contemplated hereby other than those specifically set forth in
      this
      Agreement.

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    4.6 Seniority.
      As of
      the Closing Date, no Indebtedness or other claim against the Company other
      than
      the $19,000,000 of original principal amount (and all associated indebtedness
      therewith) of March Debentures and those additional items set forth on Schedule
      4.6 hereto is senior to the financing provided by Lender hereunder in right
      of
      payment, whether with respect to interest or upon liquidation or dissolution,
      or
      otherwise, other than indebtedness secured by purchase money security interests
      (which is senior only as to underlying assets covered thereby) and capital
      lease
      obligations (which is senior only as to the property covered
      thereby).

     

    5. Representations
      and Warranties of Lender.
      In
      connection with the transactions provided for herein, Lender hereby represents
      and warrants to the Company that:

     

    
      	 	
              5.1

            	
              Authorization.
                This Agreement constitutes Lender’s valid and legally binding obligation,
                enforceable in accordance with its terms, except as may be limited
                by (i)
                applicable bankruptcy, insolvency, reorganization, or similar laws
                relating to or affecting the enforcement of creditors’ rights and (ii)
                laws relating to the availability of specific performance, injunctive
                relief or other equitable remedies. Lender represents that the execution,
                delivery and performance of this Agreement has been duly authorized
                and
                approved by such Lender.

            

    

     

    
      	 	
              5.2

            	
              Purchase
                Entirely for Own Account.
                Lender acknowledges that this Agreement is made with Lender in reliance
                upon such Lender’s representation to the Company that the Note and any
                capital stock issuable upon exercise of either the New Warrant or
                the
                Subsequent Warrant (collectively, the “Securities”) will be acquired for
                investment for Lender’s own account, as principal and not as a nominee or
                agent, and not with a view to the resale or distribution of any part
                thereof, and that Lender has no present intention of selling, granting
                any
                participation in, or otherwise distributing the same. By executing
                this
                Agreement, Lender further represents that Lender does not have any
                contract, undertaking, agreement or arrangement with any person to
                sell,
                transfer or grant participations to such person or to any third person,
                with respect to the Securities.

            

    

     

    
      	 	
              5.3

            	
              Disclosure
                of Information.
                Lender acknowledges that he or it has received and/or been provided
                full
                access to all the information, documents and materials he or it considers
                necessary or appropriate for deciding whether to acquire the Securities
                and has been provided access to all public filings of the Company
                with the
                Securities & Exchange Commission. Lender confirms that he or it has
                made such further investigation of the Company and its subsidiaries
                as was
                deemed appropriate to evaluate the merits and risks of this investment.
                Lender further represents that he or it has had an opportunity to
                ask
                questions and receive answers from the Company regarding the terms
                and
                conditions of the offering of the
                Securities.

            

    

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

    
      	 	
              5.4

            	
              Investment
                Experience; State of Residence.
                Lender is an investor in securities of companies in the development
                stage
                and acknowledges that it is able to fend for itself, can bear the
                economic
                risk of its investment and has such knowledge and experience in financial
                or business matters that it is capable of evaluating the merits and
                risks
                of the investment in the Securities. Lender also represents it has
                not
                been organized solely for the purpose of acquiring the Securities.
                

            

    

     

    
      	 	
              5.5

            	
              Accredited
                Investor.
                Lender is an “accredited investor” within the meaning of Rule 501 of
                Regulation D of the Securities Act of 1933, as presently in effect
                (the
                “Securities Act”).

            

    

     

    
      	 	
              5.6

            	
              Restricted
                Securities.
                Lender understands that the Securities are characterized as “restricted
                securities” under the federal securities laws inasmuch as they are being
                acquired from the Company in a transaction not involving a public
                offering
                and that under such laws and applicable regulations such securities
                may
                not be resold except through a valid registration statement or pursuant
                to
                a valid exemption from the registration requirements under the Securities
                Act and applicable state securities laws. Lender represents that
                it is
                familiar with Rule 144 of the Securities Act, and understands the
                resale
                limitations imposed thereby and by the Securities Act and applicable
                state
                securities laws.

            

    

     

    
      	 	
              5.7

            	
              Further
                Limitations on Disposition.
                Without in any way limiting the representations and warranties set
                forth
                above, Lender further agrees not to make any disposition of all or
                any
                portion of the Note except as such may be converted pursuant to the
                terms
                thereof.

            

    

     

    
      	
            	6.	
              Defaults
                and Remedies.

            

    

     

    
      	 	
              6.1

            	
              Events
                of Default.
                The occurrence of an Event of Default under the March Debentures
                shall be
                considered an Event of Default hereunder. In addition, the occurrence
                of
                any of the following shall be considered an Event of Default
                hereunder:

            

    

     

    (a) The
      Company shall make an assignment for the benefit of creditors, or shall admit
      in
      writing its inability to pay its debts as they become due, or shall file a
      voluntary petition for bankruptcy, or shall file any petition or answer seeking
      for itself any reorganization, arrangement, composition, readjustment,
      dissolution or similar relief under any present or future statute, law or
      regulation, or shall file any answer admitting the material allegations of
      a
      petition filed against the Company in any such proceeding, or shall seek or
      consent to or acquiesce in the appointment of any trustee, receiver or
      liquidator of the Company, or of all or any substantial part of the properties
      of the Company, or its directors, officers or shareholders shall take any action
      looking to the dissolution or liquidation of the Company; or

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

     

    (b) Within
      sixty (60) days after the commencement of any proceeding against the Company
      seeking any bankruptcy, reorganization, arrangement, composition, readjustment,
      liquidation, dissolution or similar relief under any present or future statute,
      law or regulation, such proceeding shall not have been dismissed, or within
      sixty (60) days after the appointment without the consent or acquiescence of
      the
      Company of any trustee, receiver or liquidator of the Company or of all or
      any
      substantial part of the properties of the Company, such appointment shall not
      have been vacated.

     

    
      	 	
              6.2

            	
              Remedies.
                Upon the occurrence of an Event of Default under Section 6.1
                hereof, at the option and upon the declaration of Lender, the entire
                unpaid principal and accrued and unpaid interest on the Note shall,
                without presentment, demand, protest, or notice of any kind, all
                of which
                are hereby expressly waived, be forthwith due and payable, and Lender
                may,
                immediately and without expiration of any period of grace, enforce
                payment
                of all amounts due and owing under the Note and exercise any and
                all other
                remedies granted to it at law; provided,
                however,
                Lender agrees to not enforce any rights it may have with respect
                to the
                Collateral until after the Outside Date, and further agrees that
                should it
                receive any payments from the Company or its subsidiaries prior to
                the
                Outside Date, it shall hold those payments in trust for the benefit
                of the
                holders of the March Debentures, and in the event of the bankruptcy
                of the
                Company within 90 days following the date of receipt of any of such
                payments, the Company shall pay those sums over to the holders of
                the
                March Debentures upon demand.

            

    

     

    
      	
            	7.	
              Miscellaneous.

            

    

     

    
      	 	
              7.1

            	
              Successors
                and Assigns.
                Except as otherwise provided herein, the terms and conditions of
                this
                Agreement shall inure to the benefit of and be binding upon the respective
                successors and assigns of the parties, provided, however, that the
                Company
                may not assign its obligations under this Agreement without the written
                consent of Lender and Lender may not, without the written consent
                of the
                Company (which shall not be unreasonably withheld), assign all or
                any
                portion of the Note to any person or entity, except an affiliate of
                Lender. Nothing in this Agreement, express or implied, is intended
                to
                confer upon any party other than the parties hereto or their respective
                successors and assigns any rights, remedies, obligations or liabilities
                under or by reason of this Agreement, except as expressly provided
                in this
                Agreement.

            

    

     

    
      	 	
              7.2

            	
              Governing
                Law.
                This Agreement and the Note shall be governed by and construed under
                the
                laws of the State of Illinois as applied to agreements among Illinois
                residents, made and to be performed entirely within the State of
                Illinois.
                Any action to enforce this Agreement or any of the rights or obligations
                hereunder shall be litigated by bench trial, with all parties hereto
                waiving their right to trial by
                jury.

            

    

     

    
      	 	
              7.3

            	
              Counterparts,
                Power of Attorney.
                This Agreement, and any of the other agreements, documents and instruments
                contemplated hereby, may be executed in two or more counterparts,
                whether
                by original, photocopy, facsimile or email pdf, each of which shall
                be
                deemed an original, but all of which together shall constitute one
                and the
                same instrument. Delivery of an executed signature page to this Agreement,
                and any of the other agreements, documents and instruments contemplated
                hereby, by facsimile transmission shall be effective as delivery
                of a
                manually signed counterpart hereof or thereof.

            

    

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

     

    
      	 	
              7.4

            	
              Titles
                and Subtitles.
                The titles and subtitles used in this Agreement are used for convenience
                only and are not to be considered in construing or interpreting this
                Agreement.

            

    

     

    
      	 	
              7.5

            	
              Notices.
                All notices and other communications given or made pursuant hereto
                shall
                be in writing and shall be deemed effectively given: (i) upon personal
                delivery to the party to be notified, (ii) when sent by confirmed
                electronic mail if sent during normal business hours of the recipient,
                if
                not so confirmed, then on the next business day, (iii) five (5) days
                after
                having been sent by registered or certified mail, return receipt
                requested, postage prepaid or (iv) one (1) business day after deposit
                with
                a nationally recognized overnight courier, specifying next day delivery,
                with written verification of receipt. All communications shall be
                sent to
                the respective parties at the following addresses (or at such other
                addresses as shall be specified by notice given in accordance with
                this
                Section 8.5):

            

    

     

    
      	
              If
                to the Company:

            	 	
              Capital
                Growth Systems, Inc.

              Attention: Patrick
                Shutt, CEO

              500
                West Madison, Suite 2060

              Chicago,
                IL 60661

            
	 	 	 
	 	 	
              with
                a copy to:

            
	 	 	 
	 	 	
              Shefsky
                & Froelich Ltd.

              Attention: Mitchell
                D. Goldsmith

              111
                East Wacker Drive - Suite 2800

              Chicago,
                IL 60601

            
	 	 	 
	
              If
                to Lender:

            	 	
              At
                the address shown on the signature page
                hereof.

            

    

    

    
      	 	
              7.6

            	
              Expenses.
                If any action at law or in equity is necessary to enforce or interpret
                the
                terms of this Agreement, the prevailing party shall be entitled to
                reasonable attorneys’ fees, costs and necessary disbursements in addition
                to any other relief to which such party may be entitled. The Company
                shall
                pay all reasonable out of pocket costs and expenses that Lender incurs
                with respect to the negotiation, execution, delivery and performance
                of
                this Agreement, including the regular hourly rates of the in house
                counsel
                of Lender with respect to time spent by said counsel with respect
                to the
                foregoing.

            

    

     

    
      	 	
              7.7

            	
              Entire
                Agreement; Amendments and Waivers.
                This Agreement and the Exhibits hereto and the other documents delivered
                pursuant hereto constitute the full and entire understanding and
                agreement
                between the parties with regard to the subject matter hereof and
                thereof.
                Any term of this Agreement or the Note may be amended by the written
                consent of the Company and Lender. 

            

    

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

     

    
      	 	
              7.8

            	
              Severability.
                If one or more provisions of this Agreement are held to be unenforceable
                under applicable law, such provision shall be excluded from this
                Agreement
                and the balance of the Agreement shall be interpreted as if such
                provision
                were so excluded and shall be enforceable in accordance with its
                terms.

            

    

     

    
      	 	
              7.9

            	
              Exculpation
                Among Lenders.
                Lender acknowledges that it is not relying upon any person, firm,
                corporation or stockholder, other than the Company and its officers
                and
                directors in their capacities as such, in making its investment or
                decision to invest in the Company. 

            

    

     

     

    [THE
      REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    IN
      WITNESS WHEREOF, the parties have executed this CGSI Bridge Note Purchase
      Agreement as of the date first above written.

     

    
      	
              COMPANY:

            	 
	 	 
	
              Capital
                Growth Systems, Inc.

            	 
	 	 
	 	 
	
              By:

            	 	 
	
              Its:

            	 	 
	 	 
	 	 
	LENDER:	 
	 	 
	
              AEQUITAS
                CATALYST FUND, LLC—Series B

            	 
	 	 
	
              By:

            	
              AEQUITAS
                INVESTMENT MANAGEMENT, LLC

            	 
	
              Its:

            	
              MANAGER

            	 

    

     

    
      	 	
              BY:

            	
               

            	 
	 	 	
              ROBERT
                JESENIK

            	 
	 	 	 	 
	 	
              ITS:

            	
              PRESIDENT

            	 

    

     

    
      	
              Address:
                5300 Meadows Road, Suite 400

              Lake
                Oswego, Oregon 97035

              ATTN:
                Legal Department

            	 

    

    

      
        
           

        

        
          10

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