Document:

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                                                                   EXHIBIT 10.35

                   MANAGEMENT AND COST REIMBURSEMENT AGREEMENT

         THIS AGREEMENT (this "Agreement") is executed and delivered on the 19th
day of March, 2004, with an effective date of October 1, 2003, among AMERALIA,
INC., a Utah corporation ("AmerAlia"), SENTIENT EXECUTIVE GP I, LIMITED, ACTING
ON BEHALF OF THE GENERAL PARTNER OF SENTIENT GLOBAL RESOURCES FUND I, L.P.,
SENTIENT (AUST) PTY. LIMITED, ACTING ON BEHALF OF SENTIENT GLOBAL RESOURCES
TRUST NO. 1 (collectively "Sentient"), NATURAL SODA HOLDINGS, INC., a Colorado
corporation (the "Company"), and NATURAL SODA, INC. (the "Subsidiary").

                                    RECITALS:

         A.       The Company anticipates that AmerAlia will perform managerial
and audit services for the Company and the Subsidiary and will assist with
budgetary services for the Company and the Subsidiary, will incur certain costs
and expenses directly allocable to the Company or the Subsidiary, and will incur
general and administrative expenses (overhead), a portion of which will be
allocable to the Company or the Subsidiary, all on the terms set forth herein.

         B.       Sentient desires to consent to AmerAlia's compensation and
reimbursement for the activities described in Recital A pursuant to this
Agreement.

         C.       AmerAlia, Sentient, the Company and the Subsidiary are also
entering into the Securityholder Agreement as of the date hereof (the
"Securityholder Agreement").

         D.       As a condition to entering into the Debenture Purchase
Agreement dated as of the date hereof between AmerAlia, Sentient, the Subsidiary
and the Company (the "Debenture Purchase Agreement"), the Company has requested
that AmerAlia provide the Company managerial, budgetary and audit services and
Sentient has consented to the provision of such services.

         NOW, THEREFORE, intending to be legally bound and for good and adequate
consideration, the receipt and sufficiency whereof both AmerAlia and Sentient
acknowledge, the parties hereto agree as follows:

         1. MANAGEMENT SERVICES. The Company shall operate through its board of
directors and management. The Subsidiary shall operate through its board of
directors and management. AmerAlia (through its board of directors and
management, principally through its President and Chief Financial Officer) will
generally manage the operations of the Company and the Subsidiary. Through this
managerial role, AmerAlia will not have any power to act on behalf of the
Company or the Subsidiary, but AmerAlia (through its management, principally
through its President and Chief Financial Officer) may raise issues for the
management and board of directors of the Company and the Subsidiary to consider
with respect to their respective operations, contractual compliance, and other
matters. AmerAlia may also, in its discretion, make available to the employees
of the Company and the Subsidiary participation in employee benefit plans,
equity incentive plans, and other plans that AmerAlia has or may in the future
adopt for the benefit of its employees and the employees of its subsidiaries
(including, without limitation, the Company and the Subsidiary).

         2. PAYMENTS TO AMERALIA. The Company shall compensate AmerAlia for its
management services, for assistance with the preparation of the Annual Budget
(as defined in the Securityholder Agreement) and for providing audit services at
the rate of $700,000 per year through September 30, 2005, payable monthly in
arrears, and reimburse AmerAlia for its costs hereunder on an accountable basis
provided the costs are consistent with the Company's budgets as approved by its
board of directors. During the first year of this Agreement, the Company shall
reduce the annual payment to AmerAlia by

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any amounts advanced to AmerAlia prior to the Agreement for these services;
provided that any such reduction shall be prorated over the year. AmerAlia and
the Subsidiary will renegotiate the annual payment for years following September
30, 2005.

         3. BUDGET SERVICES. AmerAlia shall cause the Company and the Subsidiary
to prepare the Annual Budget for the Company and the Subsidiary as set forth in
Section 3.05 of the Securityholder Agreement and shall manage and assist such
preparation. AmerAlia shall also cause the Company and the Subsidiary to revise
the Annual Budget as recommended by the Directors of the Company and the
Subsidiary.

         4. TRANSACTIONS WITH AFFILIATES. If (in acting pursuant to this
Agreement) AmerAlia engages affiliates to provide services hereunder, it shall
do so on terms no less favorable to the Company or the Subsidiary (as
applicable) than would be the case in arm's-length transactions with unrelated
persons and it shall do so only in compliance with any agreements to which the
Company or the Subsidiary is a party.

         5. AUDIT SERVICES. Within 90 days after the end of each fiscal year,
AmerAlia shall cause independent certified public accountants selected by
AmerAlia (with the consent of the board of directors of the Company with respect
to the audit conducted of the Company's books and records, and with the consent
of the board of directors of the Subsidiary with respect to the audit conducted
of the books and records of the Subsidiary) to conduct an audit of the books and
records of each of the Company and the Subsidiary. The audit shall be conducted
in accordance with generally accepted auditing standards and shall cover all
books and records maintained by the Company and the Subsidiary, as applicable,
all assets and encumbrances, and all transactions and operations conducted
during such fiscal year, including production and inventory records and all
costs for which AmerAlia sought reimbursement under this Agreement, together
with all other matters customarily included in such audits.

         6. INDEMNIFICATION.

                  (a) In additional consideration for receiving payment for the
services pursuant to this Agreement, AmerAlia will indemnify and hold the
Company, the Subsidiary and Sentient harmless from and against any Claims
arising against the Company, the Subsidiary and Sentient from the following
obligations (the "Indemnified Obligations"):

                           (i)      amounts related to E.E. Kinder Co. incurred
through February 29, 2004;

                           (ii)     Marvin L. Hudson;

                           (iii)    Doug Kemmerer in excess of certain amounts
expressly assumed as set forth in Exhibit D to the Debenture Purchase Agreement
and subject to Section 7.4 of the Debenture Purchase Agreement;

                           (iv)     amounts related to U.S. Filter Wastewater
Group, Inc. in excess of $860,000 paid in settlement to U.S. Wastewater Group,
Inc.;

                           (v)      Obligations to the Bank of America, Charles
D. O'Kieffe, Philip Georgouses, Ralph W. Applegate, Jr., Robert Woolard, and the
JKM Partnership; and

                           (vi)     Any other liabilities that the Company or
the Subsidiary did not expressly assume as set forth in Exhibit D to the
Debenture Purchase Agreement.

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                  (b) For the purposes of this Section 6, the term "Claims"
means any and all money that the Company or the Subsidiary has paid, must pay or
is requested to pay as a result of demands, claims, actions or causes of action,
assessments, losses, damages, costs, expenses, liabilities, judgments, awards,
fines, sanctions, penalties, charges and amounts paid in settlement, including
without limitation, reasonable costs, fees and expenses of attorneys, experts,
accountants, appraisers, consultants, witnesses, investigators and any other
agents or representatives of the Company or the Subsidiary as a result of any
Indemnified Obligations.

                  (c) The Company may withhold payments under this Agreement to
offset against obligations that AmerAlia may owe to the Company pursuant to this
provision, any promissory note to the extent then due and payable, or any other
matured contractual obligation of AmerAlia to the Company.

         7. PLEDGE. Sentient hereby consents to the pledge by AmerAlia of its
benefits under this Agreement to U.S. Filter Wastewater Group, Inc. as security
for AmerAlia's obligation under its promissory note to U.S. Filter Wastewater
Group, Inc. dated February 21, 2003.

         8. NOTICES. All notices, payments and other required or permitted
communications ("NOTICES") to the parties shall be in writing, and shall be
addressed respectively as follows:

             IF TO AMERALIA:  AmerAlia, Inc.
                              Attn: Chairman
                              20971 East Smoky Hill Rd
                              Centennial, CO 80015
                              Tel: 720-876-2373
                              Fax: 720-876-2374

             WITH A COPY TO:  Holland & Hart LLP
                              555 17th Street, Suite 3200
                              Denver, Colorado  80202
                              Attention:  Sandra P. Velasco
                              Tel: 303-295-8000
                              Fax: 303-295-8261

             IF TO SENTIENT:  Sentient Executive GP I, Limited (on behalf of the
                              General Partner of Sentient Global
                              Resources Fund 1, L.P.)
                              Third Floor, Harbour Centre, PO Box 10795APO
                              George Town, Grand Cayman, Cayman Islands
                              Attn: Kim McLaughlin
                              Tel: (345) 946 0933
                              Fax: (345) 946 0921

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<TABLE>
<S>                                               <C>
Sentient (Aust) Pty Limited                       Sentient Asset Management Canada
Trustee of Sentient Global Resources Trust No. 1  Limited
Level 9, 20 Loftus Street                         1010 Sherbrooke Street West
Sydney, NSW 2000                                  Suite 1512
Australia                                         Montreal, Quebec H3A-2R7 Canada
Attn: Peter Cassidy, Director                     Attn: Mark Jackson, Director
Tel: (612) 8243-2904                              Tel: (514) 223-2578
Fax: (612) 8243-2990                              Fax: (514) 223-2575
</TABLE>

        IF TO THE COMPANY:                 to the Company in care of AmerAlia

        IF TO THE SUBSIDIARY:              to the Subsidiary in care of AmerAlia

All Notices shall be given (a) by personal delivery to the party, (b) by
electronic communication, capable of producing a printed transmission, (c) by
registered or certified mail return receipt requested; or (d) by overnight or
other express courier service. All Notices shall be effective and shall be
deemed given on the date of receipt at the principal address if received during
normal business hours, and, if not received during normal business hours, on the
next business day following receipt, or if by electronic communication, on the
date of such communication. Any party may change its address by Notice to the
other parties.

         9. GENDER. The singular shall include the plural, and the plural the
singular wherever the context so requires, and the masculine, the feminine, and
the neuter genders shall be mutually inclusive.

         10. CURRENCY. All references to "DOLLARS" or "$" herein or in any
budget shall mean lawful currency of the United States of America.

         11. HEADINGS. The subject headings of the Sections and Subsections of
this Agreement and the Paragraphs and Subparagraphs of the Exhibits to this
Agreement are included for purposes of convenience only, and shall not affect
the construction or interpretation of any of its provisions.

         12. TERM. This Agreement will expire on September 30, 2005, except for
Section 6, unless, prior to its expiration, the Company (with the approval of
two-thirds of its directors) agrees by resolution to extend this Agreement on
terms reasonably acceptable to AmerAlia. A majority of the board of directors of
the Company may terminate this Agreement except for Section 6 before the
expiration of its term if:

                  (a) AmerAlia shall commence a voluntary case under the United
States Bankruptcy Code or insolvency laws as now or hereafter in effect or any
successor thereto (the "Bankruptcy Code"); or an involuntary case is commenced
against the Company under the Bankruptcy Code and the petition is not
controverted within 30 days, or is not dismissed within 60 days, after
commencement of such involuntary case; or a "custodian" (as defined in the
Bankruptcy Code) is appointed for, or takes charge of, all or any substantial
part of the property of the Company or the Company commences any other
proceeding under any reorganization, arrangement, adjustment of debt, relief of
debtors, dissolution, insolvency or liquidation or similar law of any
jurisdiction whether now or hereafter in effect relating to the Company or there
is commenced against the Company any such proceeding which remains undismissed
for a period of 60 days; or the Company is adjudicated insolvent or bankrupt; or
any order of relief or other order approving any such case or proceeding is
entered; or the Company suffers any appointment of any custodian or the like for
it or any substantial part of its property which continues undischarged or
unstayed for a period of 60 days; or the Company makes a general assignment for
the benefit of creditors; or the Company shall fail to pay, or shall state that
it is unable to pay its debts generally as they become

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due; or the Company shall call a meeting of all of its creditors with a view to
arranging a composition or adjustment of its debts; or the Company shall by any
act or failure to act indicate its consent to, approval of or acquiescence in
any of the foregoing; or any corporate or other action is taken by the Company
for the purpose of effecting any of the foregoing;

                  (b) AmerAlia defaults under its obligations to Jacqueline B.
Mars, as Trustee of the Jacqueline Badger Mars Trust dated February 5, 1975, as
amended, Charles D. O'Kieffe, Robert Woolard, any holders of the Company's
Secured Promissory Notes secured by the Series A Debentures and Series C
Debentures issued of a date even herewith, and such party exercises its remedies
pursuant to such default;

                  (c) an Event of Default (as defined in the Debentures which
are defined in the Securityholders Agreement) shall have occurred and the
Holders (as defined in the Debentures) of the Debentures shall have exercised
their remedies thereunder;

                  (d) AmerAlia shall sell or transfer its shares of the
Company's common stock.

         13. WAIVER. The failure of any party to insist on the strict
performance of any provision of this Agreement or to exercise any right, power
or remedy upon a breach hereof shall not constitute a waiver of any provision of
this Agreement or limit such party's right thereafter to enforce any provision
or exercise any right.

         14. MODIFICATION. No modification of this Agreement shall be valid
unless made in writing and duly executed by all parties hereto.

         15. DISPUTE RESOLUTION.

                  (a) All claims, disputes or other controversies arising out
of, or relating to, this Agreement and any other claims, disputes or
controversies arising out of or relating to the management or operations of the
Company or the Subsidiary (hereinafter collectively referred to as a "Dispute")
shall initially be submitted to a senior officer or a member of the board of
directors from each party to a Dispute for resolution by mutual agreement
between said officers (which senior officers or director will not be a Person
who is involved in the regular operations of the Company or the Subsidiary). Any
mutual determination by the senior officers shall be reduced to writing and
become final and binding upon the parties. However, should such senior officers
fail to arrive at a mutual decision as to the Dispute within 20 days after
notice to the senior officers of the Dispute, the parties shall then attempt to
resolve such Dispute by mediation in accordance with the terms and provisions
set forth in the following paragraph.

                  (b) The parties agree that if the Senior Officers are unable
to resolve the Dispute pursuant to the preceding paragraph, either party may
submit the Dispute to JAMS, Inc. (WWW.JAMSADR.COM and 949-224-1810, "JAMS"), or
its successor, for mediation, and if the Dispute is not resolved through
mediation, then it shall be submitted to JAMS, or its successor, for final and
binding arbitration. Any party to this Agreement may commence mediation by
providing to JAMS and the other parties 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 promptly, not
later than 20 days after such request for mediation. 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

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evidence that is otherwise admissible or discoverable shall not be rendered
inadmissible or non-discoverable as a result of its use in the mediation. Any
party may initiate arbitration with respect to the Disputes 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.

         16. FURTHER ASSURANCES. Each of the parties shall take, from
time-to-time and without additional consideration, such further actions and
execute such additional instruments as may be reasonably necessary or convenient
to implement and carry out the intent and purpose of this Agreement.

         17. ENTIRE AGREEMENT; SUCCESSORS AND ASSIGNS. This Agreement contains
the entire understanding of the parties and supersedes all prior agreements and
understandings between the parties relating to the subject matter hereof. This
Agreement shall be binding upon and inure to the benefit of the respective
successors and permitted assigns of the parties.

         18. COUNTERPARTS. This Agreement may be executed in any number of
counterparts, and it shall not be necessary that the signatures of more than one
party be contained on any counterpart. Each counterpart shall be deemed an
original, but all counterparts together shall constitute one and the same
instrument.

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         IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the date first written above.

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: Chairman

                                             NATURAL SODA, INC.

                                             By:       /s/ Bill H. Gunn
                                                    ---------------------------
                                             Name:  Bill H. Gunn
                                             Title: Chairman

SENTIENT EXECUTIVE GP I, LIMITED, ON         SENTIENT (AUST) PTY. LIMITED, AS
BEHALF OF THE GENERAL PARTNER OF             TRUSTEE OF  SENTIENT GLOBAL
SENTIENT GLOBAL RESOURCES FUND I, L.P.       RESOURCES TRUST NO. 1

By:    /s/ Mark A. Jackson                   By:    /s/ Peter Cassidy
    ------------------------------------         -------------------------
            Mark A. Jackson, Director                    Peter Cassidy, Director

                  MANAGEMENT AND COST REIMBURSEMENT AGREEMENT

                                       7<PAGE>

                                                                   EXHIBIT 10.36

THIS DEBENTURE HAS NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE
COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN
EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
"SECURITIES ACT"), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT
TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO
AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH
APPLICABLE STATE SECURITIES LAWS.

No. A-                                                  U.S. $__________________
                                                              _________ __, 2004

                                     FORM OF
                         SECURED SERIES A 10% DEBENTURE
                             DUE SEPTEMBER 30, 2005

         THIS SECURED SERIES A DEBENTURE is one of a duly authorized issue of
debentures of NATURAL SODA HOLDINGS, INC., a Colorado corporation, having a
principal place of business at 20971 E. Smoky Hill Rd., Centennial, CO 80015
(Tel: (720) 876-2373; Fax: (720) 876-2374) (the "Company"), designated as its
Senior Series A 10% Debentures (the "Secured Series A Debentures") due on
September 30, 2005 (the "Maturity Date"), in an aggregate principal amount of
$9,525,000 plus accrued but unpaid interest. This Secured Series A Debenture is
purchased by ______________________

Capitalized words used in this Secured Series A Debenture not defined in the
preceding paragraph are defined in Section 1, below.

         FOR VALUE RECEIVED, the Company promises to pay to the Holder

         (i)      on or before the Maturity Date the principal sum stated above,
                  and

         (ii)     interest to the Holder on the principal sum at the rate of 10%
                  per annum ("Interest"). Interest shall be paid from the date
                  hereof, quarterly in arrears beginning June 30, 2004 (each
                  such date an "Interest Payment Date").

Interest shall be calculated for the actual number of days elapsed for any
period less than a full quarter. The principal of, and Interest on, this Secured
Series A Debenture are payable in such coin or currency of the United States of
America as at the time of payment is legal tender for payment of public and
private debts, at the address of the Holder last appearing on the Company's
records on the date such amounts become due.

         This Secured Series A Debenture is subject to the terms of the
Debenture Purchase Agreement, the Securityholder Agreement and the following
additional provisions.

         Section 1. Definitions. For the purposes hereof, the following terms
shall have the following meanings:

                  "AmerAlia" means AmerAlia, Inc., a Utah corporation.

Series A Debenture

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                  "Business Day" means any day except Saturday, Sunday and any
day which shall be a legal holiday or a day on which banking institutions in the
State of Colorado are authorized or required by law or other government action
to close.

                  "Collateral" is as defined in Section 2(b).

                  "Collateral Agent" means, Sentient Resources USA, Inc., a
Colorado corporation.

                  "Debentures" means the Secured Series A Debentures, the Series
B Debentures, the Series C Debentures, or any of them, as the context may
require.

                  "Deeds of Trust" means both the Deed of Trust given by the
Company to the Public Trustee and for the benefit of the Collateral Agent for
the holders of the Debentures and the Sentient Entities of even date herewith
and Deed of Trust given by the Subsidiary to the Public Trustee and for the
benefit of the Collateral Agent for the holders of the Debentures and the
Sentient Entities of even date herewith.

                  "Holder" means any Person who is a registered holder of this
Debenture as listed in the books of the Company.

                  "Majority of the Holders" is as defined in Section 6(b).

                  "Material Adverse Effect" means a material adverse effect upon
the business, operations, properties, assets or condition (financial or
otherwise) of the Company or, as the case may be, of the Company and the
Subsidiary taken as a whole.

                  "Maturity Date" means the date defined in the first paragraph
or (if earlier) the date of any prepayment or acceleration.

                  "Other Debentures" means the Series B Debentures and the
Series C Debentures.

                  "Person" means a corporation, an association, a partnership,
organization, a business, an individual, a government or political subdivision
thereof or a governmental agency.

                  "Pledge Agreement" means the Pledge Agreement dated February
20, 2003, between the Company and the Sentient Entities and Sentient Resources
USA, Inc., as Pledgees' Agent, as amended.

                  "Debenture Purchase Agreement" means that certain Debenture
Purchase Agreement dated as of the date hereof between the Company, AmerAlia,
the Subsidiary, Sentient Executive GP I, Limited, acting on behalf of the
General Partner of Sentient Global Resources Fund I, L.P., and Sentient (Aust)
Pty. Limited, acting on behalf of Sentient Global Resources Trust No. 1.

                  "Security Agreements" means the Security Agreement between the
Company and the Collateral Agent for the benefit of AmerAlia, the Subsidiary and
Sentient dated as of the date hereof and the Security Agreement between the
Subsidiary and the Collateral Agent for the benefit of AmerAlia, the Subsidiary
and Sentient dated as of the date hereof.

                  "Securityholder Agreement" means the Securityholder Agreement,
dated as of the date hereof between the Company, AmerAlia, the Subsidiary and
Sentient.

Series A Debenture

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                  "Sentient" means any of Sentient Executive GP I, Limited,
acting on behalf of the General Partner of Sentient Global Resources Fund I,
L.P., or Sentient (Aust) Pty. Limited, acting on behalf of Sentient Global
Resources Trust No. 1.

                  "Series B Debentures" means the Company's Secured Subordinated
Series B1 Debentures, due February 19, 2008, Secured Subordinated Series B2
Convertible Debentures, due February 19, 2008.

                  "Series C Debentures" means the Company's Unsecured
Subordinated Series C Debentures, due February 19, 2008.

                  "Subsidiary" means Natural Soda, Inc., a Colorado corporation
that is wholly-owned by the Company.

         Section 2. Seniority, Collateral, and Pari Passu.

         (a) The Secured Series A Debentures are senior to all amounts payable
to the holders of the Other Debentures issued by the Company. No principal or
interest may be paid on the Other Debentures while any Event of Default exists
with respect to this Secured Series A Debenture and the other Secured Series A
Debentures. No principal may be paid on the Other Debentures until the principal
and Interest owing with respect to all outstanding Secured Series A Debentures
have been paid in full.

         (b) Pursuant to the terms of a Collateral Holding and Liquidation
Agreement, the Security Agreements, the Pledge Agreement and the Deeds of Trust,
Collateral Agent holds a security interest, as collateral for repayment of all
of the Secured Series A Debentures as well as (on a subordinated basis) the
obligations under the Series B Debentures, in all of the outstanding shares of
common stock of the Subsidiary plus all other assets of the Company and the
Subsidiary (the "Collateral"). The Collateral Holding and Liquidation Agreement
is incorporated herein as if fully set forth, and the rights of the Holder are
subject to the terms of said agreements.

         (c) No payments will be made to the holder of this Secured Series A
Debenture unless a proportional payment (based on outstanding principal amount)
is made with respect to all other Secured Series A Debentures. This Secured
Series A Debenture will be treated in pari passu with all other Secured Series A
Debentures.

         (d) Notwithstanding Section 2(a) above, if the Secured Series A
Debentures issued to AmerAlia are (i) not subject to any pledge agreement or
other security arrangement with a third party or (ii) not held by a third party,
the Secured Series A Debentures shall be pari passu with the Series B Debentures
for all purposes.

         Section 3. No Sale or Transfer. This Secured Series A Debenture may not
be sold, transferred, assigned, hypothecated or divided into two or more
Debentures of smaller denominations except to the extent such sale, transfer,
assignment, hypothecation or division has been approved pursuant to the terms of
the Securityholder Agreement. Subject to the foregoing, transfers of this
Debenture shall be registered upon registration books maintained for such
purpose by or on behalf of Company. Prior to presentation of this Secured Series
A Debenture for registration of transfer, Company shall treat the registered
holder hereof as the owner and holder of this Secured Series A Debenture for the
purpose of receiving all payments of principal and interest hereon and for all
other

Series A Debenture

                                       3
<PAGE>

purposes whatsoever, whether or not this Secured Series A Debenture shall be
overdue and Company shall not be affected by notice to the contrary.

         Section 4. Provisions Regarding Payment of Interest. Interest hereunder
will be paid to the Holder on each Interest Payment Date; provided, however,
that the Interest payable shall not be higher than the maximum interest
allowable under applicable law. If the Interest payable is higher than the
maximum amount payable under applicable law, the Company shall only pay the
amount allowable under applicable law.

         Section 5. Trade Sale. Except as provided in the Securityholder
Agreement, if the Company should assign, transfer or sell its interest in the
Subsidiary to a Person unaffiliated with the Company, or should the Subsidiary
sell, assign or transfer, all or substantially all of its assets, the Company
shall be obligated to prepay this Secured Series A Debenture including accrued
and unpaid Interest pari passu with the other Secured Series A Debentures, but
prior to any payment to the obligations under the Other Debentures, to the
extent of the consideration received by the Company or the Subsidiary in such a
transaction.

         Section 6. (a) "Event of Default" wherever used herein, means any one
of the following events (whatever the reason and whether it shall be voluntary
or involuntary or effected by operation of law or pursuant to any judgment,
decree or order of any court, or any order, rule or regulation of any
administrative or governmental body):

                           (i)      Any default in the payment of the principal
                                    of or Interest on this Secured Series A
                                    Debenture as and when the same shall become
                                    due and payable, (whether on the Maturity
                                    Date or by acceleration or otherwise);

                           (ii)     The Company shall fail to observe or perform
                                    any other covenant, agreement or warranty
                                    contained in, or otherwise commit any breach
                                    of, this Secured Series A Debenture or and
                                    such failure or breach shall not have been
                                    remedied within 30 days after the date on
                                    which notice of such failure or breach shall
                                    have been given;

                           (iii)    The occurrence or existence of any condition
                                    that constitutes an event of default or that
                                    would constitute an event of default with
                                    the giving of notice, the passage of time,
                                    or both, under the terms of any of the
                                    Debentures, or any other material
                                    indebtedness of the Company or the
                                    Subsidiary;

                           (iv)     The occurrence of any event that would, upon
                                    passage of time or otherwise, have a
                                    Material Adverse Effect on the Company, or
                                    the Subsidiary; or

                           (v)      The Company, or the Subsidiary shall
                                    commence a voluntary case under the United
                                    States Bankruptcy Code or insolvency laws as
                                    now or hereafter in effect or any successor
                                    thereto (the "Bankruptcy Code"); or an
                                    involuntary case is commenced against the
                                    Company under the Bankruptcy Code and the
                                    petition is not controverted within 30 days,
                                    or is not dismissed within 60 days, after
                                    commencement of such involuntary case; or a
                                    "custodian" (as defined in the Bankruptcy

Series A Debenture

                                       4
<PAGE>

                                    Code) is appointed for, or takes charge of,
                                    all or any substantial part of the property
                                    of the Company or the Company commences any
                                    other proceeding under any reorganization,
                                    arrangement, adjustment of debt, relief of
                                    debtors, dissolution, insolvency or
                                    liquidation or similar law of any
                                    jurisdiction whether now or hereafter in
                                    effect relating to the Company or there is
                                    commenced against the Company any such
                                    proceeding which remains undismissed for a
                                    period of 60 days; or the Company is
                                    adjudicated insolvent or bankrupt; or any
                                    order of relief or other order approving any
                                    such case or proceeding is entered; or the
                                    Company suffers any appointment of any
                                    custodian or the like for it or any
                                    substantial part of its property which
                                    continues undischarged or unstayed for a
                                    period of 60 days; or the Company makes a
                                    general assignment for the benefit of
                                    creditors; or the Company shall fail to pay,
                                    or shall state that it is unable to pay its
                                    debts generally as they become due; or the
                                    Company shall call a meeting of all of its
                                    creditors with a view to arranging a
                                    composition or adjustment of its debts; or
                                    the Company shall by any act or failure to
                                    act indicate its consent to, approval of or
                                    acquiescence in any of the foregoing; or any
                                    corporate or other action is taken by the
                                    Company for the purpose of effecting any of
                                    the foregoing.

         (b) Remedies. The Holder may declare a default under Section 6(a)(i)
upon not less than 15 days' written notice to the Company. For so long as
Sentient holds any of the Secured Series A Debentures, only Sentient may declare
an Event of Default under Sections 6(a)(ii) through (v), and it may do so only
after 15 days' written notice to the Company. If Sentient does not hold any of
the Secured Series A Debentures, the Holder, together with all other holders of
Secured Series A Debentures based on a majority vote by principal amount of the
Holders of all other Secured Series A Debentures (a "Majority of the Holders")
may declare an Event of Default under Sections 6(a)(ii) through (v) on 15 days'
written notice to the Company. If the Company fails to cure an Event of Default
within such period (or if the cure cannot be reasonably completed within such
period, commence the cure of the Event of Default and diligently pursue such
cure), Sentient or (if applicable) a Majority of the Holders may:

                           (i)      Declare all amounts due under the Secured
                                    Series A Debentures (and, if Sentient
                                    declares such default, all other Debentures
                                    then held by the Sentient) immediately due
                                    and owing and exercise all rights with
                                    respect thereto permitted by law;

                           (ii)     Subject to the terms of the Collateral
                                    Holding and Liquidation Agreement, the
                                    Security Agreements and the Pledge
                                    Agreement, cause the Company and the
                                    Subsidiary to transfer ownership of the
                                    Collateral on its books to Sentient on
                                    behalf of the Holder and all other holders
                                    of the Secured Series A Debentures and
                                    Series B Debentures, and exercise all rights
                                    to vote with respect to the Pledged Shares
                                    (including the right to elect the board of
                                    directors of the Subsidiary by shareholder
                                    consent);

                           (iii)    Apply to a court with its seat in Colorado
                                    that has jurisdiction over the Company or
                                    the Subsidiary for the appointment of a
                                    receiver to

Series A Debenture

                                       5
<PAGE>

                                    manage the assets and operations of the
                                    Company or the Subsidiary; or

                           (iv)     Assert any other remedy available at law or
                                    in equity.

         Section 7. Prepayment. The Company may prepay this Secured Series A
Debenture in whole or in part at any time prior to the Maturity Date upon not
less than 30 days' written notice to the Holder. Any prepayment shall include
payment of accrued and unpaid Interest.

         Section 8. No Impairment. Except as expressly provided herein, no
provision of this Secured Series A Debenture shall alter or impair the
obligation of the Company, which is absolute and unconditional, to pay the
principal of, and Interest on, this Secured Series A Debenture at the time,
place, and rate, and in the coin or currency, herein prescribed. This Secured
Series A Debenture is a direct obligation of the Company.

         Section 9. No Rights as a Shareholder. This Secured Series A Debenture
shall not entitle the Holder to any of the rights of a stockholder of the
Company, including without limitation, the right to vote, to receive dividends
and other distributions, or to receive any notice of, or to attend, meetings of
stockholders or any other proceedings.

         Section 10. Mutilated, Lost or Stolen Debentures. If this Secured
Series A Debenture shall be mutilated, lost, stolen or destroyed, the Company
shall execute and deliver, in exchange and substitution for and upon
cancellation of a mutilated Debenture, or in lieu of or in substitution for a
lost, stolen or destroyed debenture, a new Debenture for the principal amount of
this Secured Series A Debenture so mutilated, lost, stolen or destroyed but only
upon receipt of evidence of such loss, theft or destruction of such Debenture,
and of the ownership hereof, and adequate indemnity, if requested, all
reasonably satisfactory to the Company.

         Section 11. Governing Law. This Secured Series A Debenture shall be
governed by and construed in accordance with the laws of the State of Colorado.
Each of the parties consents to the exclusive jurisdiction of the federal courts
whose districts encompass any part of Denver, Colorado, or the state courts of
the State of Colorado sitting in Arapahoe County, Colorado in connection with
any dispute arising under this Agreement and hereby waives, to the maximum
extent permitted by law, any objection, including any objection based on forum
non coveniens, to the bringing of any such proceeding in such jurisdictions. To
the extent determined by such court, the Company shall reimburse the Holder for
any reasonable legal fees and disbursements incurred by the Holder in
enforcement of or protection of any of its rights under any of this Secured
Series A Debenture.

         Section 12. Waiver of Jury Trial; No Other Waivers. The Company and the
Holder hereby waive the right to a trial by jury in any action, proceeding or
counterclaim in respect of any matter arising out or in connection with this
Debenture. Any waiver by the Company or the Holder of a breach of any provision
of this Secured Series A Debenture shall not operate as or be construed to be a
waiver of any other breach of such provision or of any breach of any other
provision of this Secured Series A Debenture. The failure of the Company or the
Holder to insist upon strict adherence to any term of this Secured Series A
Debenture on one or more occasions shall not be considered a waiver or deprive
that party of the right thereafter to insist upon strict adherence to that term
or any other term of this Secured Series A Debenture. Any waiver must be in
writing.

         Section 13. Severability. If any provision of this Secured Series A
Debenture is invalid, illegal or unenforceable, the balance of this Secured
Series A Debenture shall remain in effect, and if

Series A Debenture

                                       6
<PAGE>

any provision is inapplicable to any Person or circumstance, it shall
nevertheless remain applicable to all other Persons and circumstances.

         Section 14. Obligations Due on a Business Day. Whenever any payment or
other obligation hereunder shall be due on a day other than a Business Day, such
payment shall be made on the next succeeding Business Day (or, if such next
succeeding Business Day falls in the next calendar month, the preceding Business
Day in the appropriate calendar month).

         Section 15. Notices. Any notice, request or other communication
required or permitted hereunder shall be in writing and shall be deemed to have
been duly given if personally delivered or mailed by registered or certified
mail, postage prepaid, or by recognized overnight courier or personal delivery
at the respective addresses of the parties as set forth in the Debenture
Purchase Agreement or on the register maintained by Company. Notice shall
conclusively be deemed to have been given when received.

Series A Debenture

                                       7
<PAGE>

         IN WITNESS WHEREOF, the Company has caused this instrument to be duly
executed by an officer duly authorized for such purpose, as of the date first
above indicated.

                                                     NATURAL SODA HOLDINGS, INC.

                                                     By ________________________
                                                     Name:  Bill H. Gunn
                                                     Title: President

Attest:

By: _________________________________
    Robert C.J. van Mourik, Secretary

         Accepted this _____ day of __________, 2004 by the undersigned,
thereunto duly authorized, in accordance with the terms of the Debenture
Purchase Agreement.

                                              AMERALIA, INC.

                                              By: ______________________________
                                                         Bill H. Gunn, President

                               Series A Debenture

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