Document:

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                                                                   EXHIBIT 10.33

                           NATURAL SODA HOLDINGS, INC.

                                    DEBENTURE

                               PURCHASE AGREEMENT

                                      WITH

            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.,

                                 AMERALIA, INC.
                                       AND
                               NATURAL SODA, INC.

                                  AS PURCHASERS

                                 MARCH 19, 2004

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                          DEBENTURE PURCHASE AGREEMENT

         THIS DEBENTURE PURCHASE AGREEMENT (the "Agreement") is executed this
19th day of March, 2004, by and among NATURAL SODA HOLDINGS, INC., a Colorado
corporation (the "Company"), AMERALIA, INC., a Utah corporation ("AmerAlia"),
NATURAL SODA, INC., a Colorado corporation (the "Subsidiary") and 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. ("Sentient Entities").

                                R E C I T A L S:

         A.       The Subsidiary acquired the assets of White River Nahcolite
Minerals Ltd. Liability Co. ("WRNM," a limited liability company formed under
Colorado law and operating in the Piceance Creek basin of western Colorado)
pursuant to the Asset Purchase Agreement.

         B.       Currently, and as a result of a recapitalization and amended
and restated articles of incorporation that the Company has filed with the
Colorado Secretary of State, AmerAlia owns 100% of the outstanding capital stock
of the Company. The Company owns 100% of the outstanding capital stock of the
Subsidiary.

         C.       The Sentient Entities have entered into the Closing Agreement
dated February 20, 2003 with AmerAlia and the Company and, pursuant thereto,
have loaned the Company $24,000,000 pursuant to a promissory note dated February
20, 2003 (the "Note"), with which the Company completed the Acquisition
Transaction.

         D.       In consideration for the Sentient Entities waiving the closing
conditions contained in the Closing Agreement, AmerAlia wishes to provide the
Sentient Entities with Warrants and the Company wishes to provide Contingent
Interest on the Series B1 and B2 Debentures issued to the Sentient Entities.

         E.       AmerAlia and the Sentient Entities wish to provide an
additional $5,775,000 investment in the Company in consideration for the
issuance by the Company of Series A Debentures.

         F.       In consideration for the exchange of the Note which shall be
cancelled, the Company wishes to issue the Sentient Entities Series A Debentures
and Series B Debentures.

         G.       AmerAlia wishes to purchase Series A Debentures, Series C
Debentures, Series A Preferred Stock and Common Stock in consideration for the
cancellation of an intercompany loan to the Company.

         H.       The Subsidiary wishes to purchase Series A Debentures in
consideration for increasing an intercompany loan from the Company by $750,000.

         I.       AmerAlia, the Company, the Subsidiary and the Sentient
Entities desire to enter into this Agreement for the purpose of exchanging the
Note, providing additional investment to the Company, canceling the intercompany
loan from AmerAlia and creating an intercompany loan from the Company to the
Subsidiary.

         J.       The parties have agreed to a complex set of agreements because
(i) the Sentient Entities are supplying most of the capital that enabled the
purchase of the assets of White River Nahcolite Minerals Ltd. Liability Co.
pursuant to the Asset Purchase Agreement (the "Business"), (ii) AmerAlia had
made significant investments in a prospect that will not be developed in the
near future as a result of

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the acquisition, and (iii) AmerAlia's desire to own a controlling interest in
the Business while providing the Sentient Entities with the potential for
significant returns on their respective investments through the payment of high
rates of interest coupled with rights to convert into equity of the Subsidiary
or AmerAlia.

                               A G R E E M E N T:

         NOW, THEREFORE, in consideration of the above recitals and the mutual
agreements, covenants, representations and warranties contained below in this
Agreement, the parties agree as follows:

I.       DEFINITIONS.

         "Acquisition Transaction" means the transaction by which the Subsidiary
acquired the assets of WRNM.

         "Adjusted EBITDA" means the Subsidiary's earnings (calculated in
accordance with generally accepted accounting principles, consistently applied)
(A) before any deduction for (i) interest, taxes, depreciation, write downs,
revaluations and amortization and (ii) payments to the Company for payment by
the Company under the Management Cost and Reimbursement Agreement, and (B) but
including amortization of well-field capital expense.

         "Agreement" means, and the words "herein", "hereof", "hereunder" and
words of similar import refer to, this instrument and any amendments hereto.

         "Affiliate" means with respect to any Person, (i) any Person directly
or indirectly controlling, controlled by, or under common control with such
Person, (ii) any Person owning or controlling ten percent (10%) or more of the
outstanding voting interests of such Person, (iii) any officer, director, or
general partner of such Person, or (iv) any Person who is an officer, director,
general partner, trustee, or holder of ten percent (10%) or more of the voting
interests of any Person described in clauses (i) through (iii) of this sentence.
For purposes of this definition, the term "controls," "is controlled by," or "is
under common control with" shall mean the possession, direct or indirect, of the
power to direct or cause the direction of the management and policies of a
Person, whether through the ownership of voting securities, by contract or
otherwise.

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

         "Articles of Incorporation" means the amended and restated articles of
incorporation of the Company attached hereto as Exhibit A as filed with the
Colorado Secretary of State.

         "Asset Purchase Agreement" means that certain agreement between Natural
Soda, Inc., White River Nahcolite Minerals Ltd. Liability Co. and IMC Global,
Inc. dated January 9, 2003, for the completion of the Acquisition Transaction.

         "Closing" has the meaning set forth in Section 2.1(e).

         "Code" is the United States Internal Revenue Code of 1986, as amended.

         "Collateral Holding and Liquidation Agreement" means the agreement
between the Company and the holders of the Series A Debentures, Series B
Debentures and Sentient Resources USA, Inc., as the Collateral Agent, in
substantially the form of Exhibit G.

         "Common Stock" means shares of the authorized $.01 par value common
stock of the Company.

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         "Continuing Guarantee" means the guarantee of the Subsidiary of the
performance of the Company under the Debentures, substantially in the form as
attached hereto as Exhibit E.

         "Controlled Group" means any group of organizations within the meaning
of Section 414(b), (c), (m) or (o) of the Internal Revenue Code of 1986, of
which the Company is a member.

         "Debentures" means the Series A Debentures, the Series B Debentures,
and the Series C Debentures, collectively and individually, as the context may
require.

         "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.

         "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.

         "Exchange Act" means the Securities Exchange Act of 1934, as amended,
or any similar Federal statute that replaces said Exchange Act and the rules and
regulations of the SEC thereunder, all as the same shall be in effect at the
time.

         "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.

         "Indemnification Letter" means that letter signed by the Trust,
Jacqueline B. Mars and AmerAlia dated the date hereof and attached hereto as
Exhibit M.

         "Intellectual Property" means all patents, patent rights, patent
applications, licenses, inventions, trade secrets, know-how, proprietary
techniques (including processes and substances), trademarks, service marks,
trade names and copyrights.

         "Lien" means any lien, 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.

         "Management and Cost Reimbursement Agreement" means the agreement
between AmerAlia, the Sentient Entities, the Subsidiary and the Company in
substantially the form of Exhibit C.

         "Material Adverse Effect" means a material adverse effect upon (a) 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 or (b) the ability of any party other than any Sentient Entities to
perform its obligations under this Agreement or any of the Other Agreements to
which it is a party.

         "Notional Share" shall have the meaning set forth in Section 2.1
hereof.

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         "Other Agreements" means the Management and Cost Reimbursement
Agreement, the Securityholder Agreement, the Security Agreements, the Warrants,
the Debentures and all other agreements, instruments and documents and all
renewals, amendments, modifications and extensions thereof, whether heretofore,
now or hereafter executed and delivered pursuant to transactions described
herein or therein.

         "Party" or "parties" means the Company, AmerAlia and/or any Sentient
Entity.

         "Person" means any individual, sole proprietorship, corporation,
business trust, unincorporated organization, association, company, partnership,
joint venture, governmental authority (whether a national, federal, state,
county, municipality or otherwise, and shall include without limitation any
instrumentality, division, agency, body or department thereof), or other entity.

         "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.

         "Release" shall mean a release of claims substantially in the form of
Exhibit L.

         "Securities Act" means the Securities Act of 1933, as amended, or any
similar Federal statute which replaces such Securities Act and the rules and
regulations of the SEC thereunder, all as the same shall be in effect at the
time.

         "SEC" means the Securities and Exchange Commission.

         "Security Agreements" mean the agreements providing the Sentient
Entities, the Subsidiary and AmerAlia with a security interest in the assets of
the Company and the Subsidiary in substantially the form of Exhibit F.

         "Securityholder Agreement" means the agreement between AmerAlia, the
Subsidiary and the Sentient Entities with respect to management of the Company,
restrictions on the securities of the Company and other rights and
responsibilities in substantially the form of Exhibit B.

         "Sentient Entities" means 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.

         "Series A Debentures" means the Senior Secured Series A 10% Debentures
of the Company in a total principal amount of approximately $9,525,000 to be
issued to the Sentient Entities, to the Subsidiary and to AmerAlia, in
substantially the form of Exhibit I.

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         "Series A Preferred Stock" means 4,949 shares of Series A Preferred
Stock of the Company pursuant to the Articles of Incorporation.

         "Series B1 Debentures" means the Secured Subordinated Series B1
Debentures of the Company in a total principal amount of $11,300,000 to be
issued to the Sentient Entities pursuant to this Agreement, in substantially the
form of Exhibit J-1.

         "Series B2 Debentures" means the Secured Subordinated Series B2
Convertible Debentures of the Company in a total principal amount of $9,700,000
to be issued to the Sentient Entities pursuant to this Agreement, in
substantially the form of Exhibit J-2.

         "Series B Debentures" means the Series B1 Debentures and the Series B2
Debentures, collectively.

         "Series C Debentures" means the Unsecured Subordinated Series C
Debentures of the Company in a total principal amount of $12,000,000 to be
issued to AmerAlia, in substantially the form of Exhibit K.

         "Subsidiary Common Stock" means shares of the authorized $.01 par value
common stock of the Subsidiary.

         "Warrants" means the warrants to purchase an aggregate of 600,000
shares of common stock of AmerAlia in substantially the form of Exhibit H.

II.      SALE AND ISSUANCE OF CAPITAL STOCK AND DEBENTURES.

         2.1      PURCHASE AND SALE.

                  (a)      Subject to the terms and conditions of this
Agreement, the Company sells to each of the Sentient Entities and each of the
Sentient Entities (for itself and not jointly) purchases from the Company,
Series A Debentures, Series B1 Debentures, and Series B2 Debentures for a total
investment as follows (all set forth in U.S. dollars):

<TABLE>
<CAPTION>
                                                SENTIENT EXECUTIVE GP I,
                                              LIMITED, ACTING ON BEHALF OF
                                                 THE GENERAL PARTNER OF        SENTIENT (AUST) PTY. LIMITED,
                             TOTAL TO           SENTIENT GLOBAL RESOURCES      ACTING ON BEHALF OF SENTIENT
                         SENTIENT ENTITIES            FUND I, L.P.             GLOBAL RESOURCES TRUST NO. 1
------------------------------------------------------------------------------------------------------------
<S>                      <C>                  <C>                              <C>
Series A Debentures      $       5,000,000    $                  4,099,493     $                     900,507
------------------------------------------------------------------------------------------------------------
Series B1 Debentures     $      11,300,000    $                  9,265,260     $                   2,034,740
------------------------------------------------------------------------------------------------------------
Series B2 Debentures     $       9,700,000    $                  7,953,365     $                   1,746,635
------------------------------------------------------------------------------------------------------------
Total                    $      26,000,000    $                 21,318,118     $                   4,681,882
------------------------------------------------------------------------------------------------------------
</TABLE>

         In addition, at the Closing, the Company will issue one share of Common
Stock (the "Notional Share") to Sentient Executive GP I, Limited, acting on
behalf of the General Partner of Sentient Global Resources Fund I, L.P. in
consideration of the overall transaction.

                                       5
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                  (b)      Subject to the terms and conditions of this
Agreement, the Company sells to AmerAlia and AmerAlia purchases from the
Company, Series A Debentures and Series C Debentures for a total investment as
follows (all set forth in U.S. dollars):

<TABLE>
<CAPTION>
                         TOTAL TO AMERALIA
------------------------------------------
<S>                      <C>
Series A Debentures      $       3,775,000
------------------------------------------
Series C Debentures      $      12,000,000
------------------------------------------
Total                    $      15,775,000
------------------------------------------
</TABLE>

                  (c)      Subject to the terms and conditions of this
Agreement, the Company sells to AmerAlia and AmerAlia purchases from the
Company, Series A Preferred Stock and Common Stock in the share amounts and the
price per share as follows (all set forth in U.S. dollars):

<TABLE>
<CAPTION>
                            SHARES    PRICE PER SHARE    TOTAL PROCEEDS
-----------------------------------------------------------------------
<S>                          <C>      <C>                <C>
Series A Preferred Stock     4,949    $         1,000    $    4,949,000
-----------------------------------------------------------------------
Common Stock                50,900    $          8.25    $      420,000
-----------------------------------------------------------------------
                                                         $    5,369,000
-----------------------------------------------------------------------
</TABLE>

                  (d)      Subject to the terms and conditions of this
Agreement, the Company sells to the Subsidiary and the Subsidiary purchases from
the Company a Series A Debenture with a principal amount of $750,000.

                  (e)      Subject to the terms and conditions of this
Agreement, AmerAlia sells to Sentient and Sentient purchases from AmerAlia the
Warrants.

                  (f)      The closing of the sale and purchase of the Notional
Share, the Debentures, the Series A Preferred Stock, the Warrants and the Common
Stock pursuant to this Agreement will take place at such times and places as the
parties may mutually agree (the "Closing").

2.2      THE CLOSING.

                  (a)      At the Closing, the Company will deliver to the
Sentient Entities, AmerAlia and the Subsidiary duly issued and executed
Debentures and (in the case of AmerAlia and the Sentient Entities, certificates
for the Series A Preferred Stock and Common Stock, as applicable) registered in
such Person's name, against payment of the purchase price thereof.

                  (b)      At the Closing, the Sentient Entities, AmerAlia and
the Subsidiary will pay for the Debentures, Series A Preferred Stock and Common
Stock as follows:

                           (i)      AmerAlia will pay the purchase price for:
(A) the Series A Debentures by paying certified check, wire transfer,
cancellation of debt or other immediately-available funds to the Company of
$3,775,000; (B) the Series C Debentures, Common Stock and the Series A Preferred
Stock by canceling intercompany indebtedness between AmerAlia and the Company
for the price allocable to the Series C Debentures, Common Stock and the Series
A Preferred Stock.

                           (ii)     The Sentient Entities will pay the purchase
price for the Series A Debentures, the Series B1 Debentures, and the Series B2
Debentures by exchanging the promissory note evidencing the Loan, which shall be
canceled, and by paying an additional $2,000,000 by certified check, wire
transfer, cancellation of debt or other immediately available funds to the
Company.

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                  (c)      The Subsidiary will pay the purchase price for the
Series A Debenture by increasing the intercompany indebtedness between the
Subsidiary and the Company for the price allocable to the Series A Debenture.

                  (d)      At the Closing, AmerAlia will deliver the Warrants to
Sentient in consideration for the waiver of closing conditions in the Closing
Agreement.

         2.3      USE OF PROCEEDS FROM THE PURCHASE. The Company will use the
cash proceeds that it receives from the acquisition of the Debentures in
accordance with the use of proceeds set forth in Exhibit D.

III.     CONDITIONS OF THE SENTIENT ENTITIES', THE SUBSIDIARY'S AND AMERALIA'S
         OBLIGATIONS.

         The obligation of the Sentient Entities (or either of them), the
Subsidiary and AmerAlia to complete the transactions contemplated herein at the
Closing is subject to the satisfaction on or before the date of the Closing of
the following conditions, all or any of which may be waived in writing by the
Sentient Entities, the Subsidiary and AmerAlia as to its obligation to complete
the transactions so contemplated:

         3.1      REPRESENTATIONS AND WARRANTIES. Each of the Company's
representations and warranties contained in this Agreement and in any other
documents delivered by the Company to the Sentient Entities at the Closing will
be true and correct at and as of the date of the Closing as though then made
(except to the extent of changes caused by the transactions expressly
contemplated herein).

         3.2      PERFORMANCE. Each of the Company, AmerAlia and the Subsidiary
shall have duly performed and complied in all material respects with each of the
terms, agreements and conditions required by this Agreement to be performed or
complied with by it prior to or at the Closing; and the Company shall have
delivered a certificate executed by the President or Secretary of the Company to
such effect.

         3.3      CLOSING DOCUMENTS. The Company will have delivered to the
Sentient Entities copies of the following specifically named documents
referenced in this Agreement or the Schedules hereto, including but not limited
to:

                  (a)      Articles of Incorporation as filed with the Colorado
Secretary of State, and bylaws of the Company, certified to such effect on the
date of the Closing by the Secretary of the Company;

                  (b)      A fully executed Management and Cost Reimbursement
Agreement and Securityholders' Agreement;

                  (c)      A fully executed Security Agreement along with
executed deeds of trust to the Rock School lease and UCC-1 financing statements.

                  (d)      Fully-executed Debentures purchased at the Closing in
the appropriate principal amount;

                  (e)      an Officer's Certificate from the Company dated the
date of the Closing stating that all the preconditions specified in this Article
III have been satisfied;

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                  (f)      correct and complete copies of the resolutions
adopted by the board of directors of the Company certified to such effect on the
date of the Closing by the Secretary of the Company authorizing the execution,
delivery and performance of this Agreement and any other agreements contemplated
hereby, and authorizing all other transactions contemplated by this Agreement;

                  (g)      correct and complete copies of the Articles of
Incorporation, Bylaws, and minutes of the shareholders and the board of
directors of the Subsidiary certified to such effect on the date of the Closing
by the Secretary of the Company;

                  (h)      a good standing certificate issued by the Colorado
Secretary of State for each of AmerAlia, the Company and the Subsidiary;

                  (i)      a fully executed Continuing Guarantee of the
Subsidiary and Security Agreement along with a deed of trust in its assets and
UCC-1 financing statements;

                  (j)      the Warrants;

                  (k)      a fully executed Collateral Holding and Liquidation
Agreement by the parties thereto substantially in the form attached as Exhibit
G;

                  (l)      fully executed agreements from each of Bill Gunn and
Robert van Mourik not to declare an event of default under the amounts owed to
them as of the Closing as set forth in such agreements, unless an Event of
Default has been declared under the Debentures;

                  (m)      an opinion from the Company's counsel dated the date
of the Closing, reasonably acceptable to the Sentient Entities; and

                  (n)      such other documents referenced within any Schedule
hereto or relating to the transactions contemplated by this Agreement as the
Sentient Entities may reasonably request.

         3.4      PROCEEDINGS. All corporate and other proceedings taken or to
be taken in connection with the transactions contemplated hereby to be completed
at or prior to each Closing and all documents incident thereto or required to be
delivered prior to or at such Closing will be satisfactory in form and substance
to the Sentient Entities and AmerAlia.

         3.5      SHAREHOLDER VOTING AGREEMENTS. The Sentient Entities shall
have received executed Shareholder Voting Agreements from Jacqueline B. Mars, as
Trustee of the Jacqueline Badger Mars Trust dated February 5, 1975, as amended
(the "Jacqueline Badger Mars Trust") and the directors of AmerAlia satisfactory
in form and substance to the Sentient Entities. The Sentient Entities shall have
also received an executed Agreement to Share Proceeds from the Jacqueline Badger
Mars Trust satisfactory in form and substance to the Sentient Entities.

         3.6      RELEASE OF CLAIMS AND SECURITY INTEREST. The Jacqueline Badger
Mars Trust, Charles D. O'Kieffe and Robert Woolard shall have released their
security interests in the assets of the Company and the Subsidiary. In addition,
the Jacqueline Badger Mars Trust, Charles D. O'Kieffe and Robert Woolard shall
have executed and delivered a Release.

         3.7      SETTLEMENT. The Sentient Entities shall have received evidence
that the Company and AmerAlia shall have settled or paid all matters relating to
the following matters which shall be paid at Closing or pursuant to the terms of
such settlement agreement:

                  (a)      McFarland Dewey

                                       8
<PAGE>

                  (b)      Morgan Lewis

                  (c)      Stephen Keiley v. AmerAlia

         3.8      CONSENTS. The Company shall have obtained any and all consents
(including all governmental or regulatory consents, approvals or authorizations
required in connection with the valid execution and delivery of this Agreement),
permits and waivers necessary or appropriate for consummation of the
transactions contemplated by this Agreement.

IV.      CONDITIONS OF THE COMPANY'S OBLIGATIONS.

         The obligation of the Company to issue the Series A Debentures, the
Series B1 Debentures, and the Series B2 Debentures to the Sentient Entities, the
Series A Debentures, the Series C Debentures, and the Series A Preferred Stock
to AmerAlia and the Series A Debentures to the Subsidiary is subject to the
satisfaction on or before the date of the Closing of the following conditions
with respect to each of the Sentient Entities (individually and not jointly)
AmerAlia and the Subsidiary, all or any of which may be waived in writing by the
Company:

         4.1      PERFORMANCE. Each of the Sentient Entities, AmerAlia and the
Subsidiary shall have duly performed and complied in all material respects with
each of the terms, agreements and conditions required by this Agreement to be
performed or complied with by it prior to or at the Closing. Without limitation
of the foregoing, the Sentient Entities, the Subsidiary and AmerAlia shall have
each purchased and paid for the Debentures to be issued at the Closing, and
AmerAlia shall have purchased the Series A Preferred Stock and Common Stock to
be issued at the Closing.

         4.2      REPRESENTATIONS AND WARRANTIES. The representations and
warranties of the Sentient Entities, the Subsidiary and AmerAlia (and each of
them) contained in this Agreement and in any other documents delivered at or
prior to the Closing shall be true and accurate on and as of the Closing with
the same effect as though made on and as of the date of the Closing.

         4.3      INSTRUMENTS AND DOCUMENTS. All instruments and documents
required to carry out this Agreement or incidental thereto shall be reasonably
satisfactory to the Company and its counsel.

         4.4      WAIVER. AmerAlia shall have received from the Sentient
Entities a fully executed waiver of the closing conditions contained in the
Closing Agreement.

         4.5      AMENDMENT TO PLEDGE AGREEMENT. AmerAlia and the Subsidiary
shall have received a fully executed amendment to the Pledge Agreement dated
February 20, 2003 between the Company and the Sentient Entities adding AmerAlia
and the Subsidiary as parties to such Agreement.

         4.6      COVENANTS. All covenants, agreements and conditions contained
in this Agreement to be performed by the Sentient Entities and AmerAlia (or
either of them) on or prior to the Closing shall have been performed or complied
with in all material respects.

         4.7      RELEASE OF CLAIMS AND SECURITY INTEREST. The Jacqueline Badger
Mars Trust, Charles D. O'Kieffe, and Robert Woolard, shall have released their
security interests in the assets of the Company and the Subsidiary. In addition,
the Jacqueline Badger Mars Trust, Charles D. O'Kieffe and Robert Woolard shall
have executed and delivered a Release.

         4.8      SETTLEMENT. The Company and AmerAlia shall have settled or
paid all matters set forth in Section 3.6 which shall be paid at Closing or
pursuant to the terms of each such settlement agreement.

                                       9
<PAGE>

V.       REPRESENTATIONS AND WARRANTIES OF AMERALIA AND THE COMPANY.

         Except as set forth on any Schedules attached hereto and incorporated
herein by reference, AmerAlia or the Company or both, whichever is applicable,
hereby represents and warrants to the Sentient Entities, AmerAlia and the
Subsidiary, as applicable as of the date hereof and as of the Closing as
follows:

         5.1      CORPORATE EXISTENCE AND AUTHORITY.

                  (a)      The Company (i) is a corporation duly organized,
validly existing, and in good standing under the laws of Colorado; (ii) has all
requisite corporate power and authority to own its assets and carry on its
business as now conducted; and (iii) 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.
The Company has the corporate power and authority to execute, deliver, and
perform its obligations under this Agreement and all Other Agreements to which
it is, or in connection with the transactions contemplated hereby, may become, a
party. The Company's Articles of Incorporation are as filed with the Colorado
Secretary of State.

                  (b)      The Subsidiary (i) is a corporation duly organized,
validly existing, and in good standing under the laws of Colorado; (ii) has all
requisite corporate power and authority to own its assets and carry on its
business as now conducted; and (iii) 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.

                  (c)      AmerAlia (i) is a corporation duly organized, validly
existing, and in good standing under the laws of Utah; (ii) has all requisite
corporate power and authority to own its assets and carry on its business as now
conducted; and (iii) 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. AmerAlia has the corporate
power and authority to execute, deliver, and perform its obligations under this
Agreement and all Other Agreements to which it is, or in connection with the
transactions contemplated hereby, may become, a party.

         5.2      FINANCIAL STATEMENTS AND REPORTS.

                  (a)      Except for the Form 10-KSB for the fiscal year ended
June 30, 2003, the Form 10-QSB for the quarter ended September 30, 2003, the
Form 10-QSB for the quarter ended December 31, 2003, which has not been filed
with the SEC, since March 19, 2003, AmerAlia has timely filed all required
forms, reports, statements and documents with the SEC, all of which have
complied in all material respects with all applicable requirements of the
Exchange Act and the Securities Act, as the case may be. AmerAlia has delivered
or made available to the Sentient Entities true and complete copies of (i)
AmerAlia's Annual Report on Form 10-KSB for the fiscal year ended June 30, 2002,
(ii) AmerAlia's Annual Report on Form 10-KSB for the fiscal year ended June 30,
2003, (iii) all other forms, reports, statements and documents filed by AmerAlia
with the SEC pursuant to the Exchange Act since June 30, 2002, and (iv) all
reports, statements and other information provided by AmerAlia to its
stockholders since July 1, 2002 (collectively, the "SEC Reports").

                  (b)      The Company has provided the Sentient Entities,
through the Closing, with such information regarding its and the Subsidiary's
financial condition, assets (and assets to be acquired in the Acquisition
Transaction), operations and proposed operations, management and proposed
management, and business plan, the Acquisition Transaction, and other
information (collectively, the "Corporate Disclosure") as the Sentient Entities
may have requested. The term "Corporate Disclosure" includes

                                       10
<PAGE>

(without limitation) confidential and non-public information that the Company
has provided to the Sentient Entities with respect to the Acquisition
Transaction.

                  (c)      As of their respective dates, neither the SEC Reports
nor the Corporate Disclosure 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.

                  (d)      Each of the consolidated financial statements of
AmerAlia included or incorporated by reference in the SEC Reports were 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, and except
that the unaudited interim financial statements do not contain all of the
disclosures required by GAAP. Since June 30, 2002 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 SEC Reports. AmerAlia is and has been subject to the
reporting requirements of the Exchange Act and except as set forth in Section
5.2(a), has timely filed with the SEC all periodic reports required to be filed
by it pursuant thereto and all reports required to be filed under Sections 13,
14 or 15(d) of the Exchange Act since March 19, 2003. Since June 30, 2002, the
only change of significance to AmerAlia that has not been included in an SEC
Report has been (i) the removal of the AmerAlia common stock from the Nasdaq
SmallCap Market on or about August 21, 2002, as a result of AmerAlia's failure
to meet the minimum bid price requirement imposed by Nasdaq and (ii) AmerAlia's
continuing accrual of unpaid salaries, fees, expense reimbursement, legal fees,
and accounting fees since the date of the last SEC Report.

         5.3      INDEBTEDNESS.

                  (a)      The Company's indebtedness as of the Closing (and
after application of the proceeds received from the purchase of the Debentures,
the Common Stock and the Series A Preferred Stock), consists of:

                           (i)      No remaining indebtedness between AmerAlia
and the Company in excess of $35,000 and between the Company and the Subsidiary
except for the intercompany loan pursuant to Recital H and the transfer of the
Subsidiary's deferred financing costs to the Company up to $550,000.

                           (ii)     Liabilities assumed by the Company as a
result of the completion of the Acquisition Transaction;

                           (iii)    Liabilities related to the Debentures;

                           (iv)     The Management and Cost Reimbursement
Agreement; and

                           (v)      No other debts or obligations owed by the
Company except for the Debentures and such other obligations as may be set forth
on Exhibit D.

                  (b)      The Subsidiary's indebtedness as of the Closing (and
after application of the proceeds received from the purchases of the Debentures,
the Common Stock and the Series A Preferred Stock), consists of:

                                       11
<PAGE>

                           (i)      No other debts or obligations owed by the
Subsidiary, except those incurred in the ordinary course of business since the
close of the Acquisition Transaction on February 20, 2003.

                           (ii)     Liabilities in connection with the bond
support agreement from the Jacqueline Badger Mars Trust.

         5.4      DEFAULT. After diligent investigation, to their knowledge and
except as disclosed in Sections 5.9 and 5.10, below, neither AmerAlia, neither
the Company nor the Subsidiary is in 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.

         5.5      AUTHORIZATION.

                  (a)      All corporate action on the part of the Company, its
officers, directors and shareholders necessary for the authorization of this
Agreement, the Other Agreements and the other documents and instruments to be
executed and delivered by the Company pursuant hereto and the consummation of
the transactions contemplated hereby and thereby have been taken. This
Agreement, the Other Agreements and the other documents and instruments to be
executed and delivered by the Company pursuant hereto, when executed and
delivered, will constitute, the legal, valid and binding obligations of the
Company, enforceable against Company in accordance with its terms, except as
such enforcement may be limited by the effect of bankruptcy, insolvency,
reorganization, moratorium or other similar laws affecting the rights of
creditors generally and by general principles of equity.

                  (b)      All corporate action on the part of AmerAlia, its
officers, directors and shareholders necessary for the authorization of this
Agreement, the Other Agreements and the other documents and instruments to be
executed and delivered by AmerAlia pursuant hereto and the consummation of the
transactions contemplated hereby and thereby have been taken. This Agreement,
the Other Agreements and the other documents and instruments to be executed and
delivered by AmerAlia pursuant hereto, when executed and delivered, will
constitute, the legal, valid and binding obligations of AmerAlia, enforceable
against AmerAlia in accordance with its terms, except as such enforcement may be
limited by the effect of bankruptcy, insolvency, reorganization, moratorium or
other similar laws affecting the rights of creditors generally and by general
principles of equity.

                  (c)      All corporate action on the part of the Subsidiary,
its officers, directors and shareholders necessary for the authorization of this
Agreement, the Other Agreements and the other documents and instruments to be
executed and delivered by the Subsidiary pursuant hereto and the consummation of
the transactions contemplated hereby and thereby have been taken. This
Agreement, the Other Agreements and the other documents and instruments to be
executed and delivered by the Subsidiary pursuant hereto, when executed and
delivered, will constitute, the legal, valid and binding obligations of the
Subsidiary, enforceable against the Subsidiary in accordance with its terms,
except as such enforcement may be limited by the effect of bankruptcy,
insolvency, reorganization, moratorium or other similar laws affecting the
rights of creditors generally and by general principles of equity.

         5.6      COMPLIANCE WITH LAWS AND MATERIAL AGREEMENTS.

                  (a)      The execution, delivery and performance by the
Company of this Agreement and the Other Agreements to which it is or may in
connection with the transactions contemplated hereby become a party, do not and
will not violate the Articles of Incorporation or Bylaws or any law or any order
of any court, governmental authority or arbitrator, and do not and will not upon
the completion of the transactions contemplated hereby conflict with, result in
a breach of, or constitute a default under, or

                                       12
<PAGE>

result in the imposition of any Lien upon any assets of the Company pursuant to
the provisions of any loan agreement, indenture, mortgage, security agreement,
franchise, permit, license or other instrument or agreement by which the Company
or any of its properties is bound.

                  (b)      Except for the `drag along rights' described in
Section 2.04(c) of the Securityholder Agreement, the execution, delivery and
performance by AmerAlia of its obligations under the Agreement, the Other
Agreements to which it is or may in connection with the transactions
contemplated hereby become a party, do not and will not violate the Articles of
Incorporation or Bylaws of AmerAlia or any law or any order of any court,
governmental authority or arbitrator, and do not and will not upon the
completion of the transactions contemplated hereby conflict with, result in a
breach of, or constitute a default under, or result in the imposition of any
Lien upon any assets of AmerAlia pursuant to the provisions of any loan
agreement, indenture, mortgage, security agreement, franchise, permit, license
or other instrument or agreement by which AmerAlia or any of its properties is
bound (which may require shareholder approval), except for the Lien of U.S.
Filter Corporation, HPD Products, relating to the Confidential Settlement
Agreement and Full and Final Release dated February 21, 2003 and the rights
thereunder regarding the Management and Cost Reimbursement Agreement.

                  (c)      The execution, delivery and performance by the
Subsidiary of its obligations under the Other Agreements to which it is or may
in connection with the transactions contemplated hereby become a party, do not
and will not violate the Articles of Incorporation or Bylaws of the Subsidiary
or any law or any order of any court, governmental authority or arbitrator, and
do not and will not upon the completion of the transactions contemplated hereby
conflict with, result in a breach of, or constitute a default under, or result
in the imposition of any Lien upon any assets of the Subsidiary pursuant to the
provisions of any loan agreement, indenture, mortgage, security agreement,
franchise, permit, license or other instrument or agreement by which the
Subsidiary or any of its properties is bound.

                  (d)      Except as set forth in Section 2.04(c) of the
Securityholder Agreement, no authorization, approval or consent of, and no
filing or registration with, any court, governmental authority or third Person
is necessary for the execution, delivery or performance by AmerAlia, the
Company, or the Subsidiary of this Agreement and the Other Agreements to which
it is a party or the validity or enforceability thereof. Neither AmerAlia, the
Company nor the Subsidiary is in violation of any term of its Articles of
Incorporation or Bylaws or any contract, agreement, judgment, permit, or decree
and is in full compliance with all applicable permits, laws, regulations and
rules where such violation would cause a Material Adverse Effect.

         5.7      AUTHORIZATION OF SECURITIES.

                  (a)      When issued in compliance with this Agreement and the
Articles of Incorporation, the Series A Debentures, the Series B1 Debentures,
the Series B2 Debentures, the Series C Debentures, the Series A Preferred Stock,
the Notional Share and the issuance of the Subsidiary Common Stock upon
conversion of the Series B2 Debentures (the "Conversion Shares"), will be fully
paid and non-assessable, with no personal liability attached to the ownership
thereof, and free of restrictions on transfer other than under applicable state
and federal securities laws and as contained herein and in the Securityholder
Agreement.

                  (b)      When issued in compliance with the Securityholder
Agreement, the AmerAlia common stock issued in exchange for the Series B
Debentures or the Subsidiary Common Stock (the "Exchange Shares") will be fully
paid and non-assessable, with no personal liability attached to the ownership
thereof, and free of restrictions on transfer other than under applicable state
and federal securities laws and as contained herein and in the Securityholder
Agreement.

                                       13
<PAGE>

                  (c)      The Warrants and, when issued in compliance with the
Warrants, the underlying AmerAlia common stock (the "Warrant Shares"), will be
fully paid and non-assessable, with no personal liability attached to the
ownership thereof, and free of restrictions on transfer other than under
applicable state and federal securities laws and as contained herein and in the
Securityholder Agreement.

         5.8      ENVIRONMENTAL CONDITION OF THE PROPERTY.

                  (a)      After diligent investigation, to AmerAlia's and the
Company's knowledge, the location, construction, occupancy, operation and use of
AmerAlia's properties and the Company'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 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 5.8,
collectively, "applicable laws") where such violation could reasonably be
expected to cause a Material Adverse Effect;

                  (b)      Without limitation of clause (a) of this Section 5.8
and to AmerAlia's and the Company's knowledge, neither AmerAlia, the Company,
the Subsidiary nor such properties are subject to any existing, pending or
threatened investigation or inquiry by any governmental authority or subject to
any remedial obligations due to violations of applicable laws;

                  (c)      After diligent investigation, to AmerAlia's and the
Company's knowledge, neither AmerAlia, the Company nor the Subsidiary is 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;

                  (d)      After diligent investigation, to AmerAlia's and the
Company's knowledge, there is no Polluting Substance or other substance that may
pose any risk to safety, health or the environment on, under or about any such
properties that could reasonably be expected to cause a Material Adverse Effect;

                  (e)      AmerAlia and/or the Company, whichever is applicable,
have undertaken a detailed investigation and all other reasonable steps to
determine the environmental condition of such properties, and each hereby
represents and warrants that, to their knowledge, no Polluting Substances have
been disposed of or otherwise released on, onto, into, or from their properties
by AmerAlia, the Company the Subsidiary, or third parties and the use which
AmerAlia, the Company and/or the Subsidiary 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; and

                  (f)      AmerAlia, the Company, and the Subsidiary, whichever
is applicable, have been issued all required federal, state and local licenses,
certificates or permits relating to, and their properties, AmerAlia, the
Company, the Subsidiary and AmerAlia's, the Company's and the Subsidiary'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.

         5.9      LITIGATION AND JUDGMENTS. There is no suit, action, proceeding
or investigation pending or, after reasonable inquiry, to the best knowledge of
AmerAlia, or the Company, threatened against or affecting AmerAlia, the Company
or the Subsidiary, that has not been disclosed in writing to the Sentient

                                       14
<PAGE>

Entities or that the outcome of which, in the reasonable judgment of the
Company, could reasonably be expected to have a Material Adverse Effect, except
for claims by Doug Kemmerer, nor except with respect to (i) the matter entitled
Hudson v. AmerAlia, Inc., et al. (case no. 99-CV-3050, Division 5, El Paso
County, Colorado) in which the court entered judgment against AmerAlia on June
4, 2002 in the amount of $374,100, (ii) the matter entitled Stephen Keiley v.
AmerAlia, Inc. (case no. CL03-172, Circuit Court, Fauquier County, Virginia) in
which the court entered judgment against AmerAlia on August 12, 2003 in the
amount of $47,600, and (iii) the matter entitled Morgan Lewis & Bockius LLP v.
AmerAlia, Inc. (index no. 111546/2003, Supreme Court, New York County, New York)
in the amount of $25,000, is there any judgment, decree, injunction, ruling or
order of any court, governmental, regulatory or administrative department,
commission, agency or instrumentality, arbitrator or any other person
outstanding against AmerAlia, the Company or the Subsidiary, that has not been
disclosed to the Sentient Entities or which could reasonably be expected to have
either individually or in the aggregate, a Material Adverse Effect.

         5.10     RIGHTS IN PROPERTIES; LIENS. AmerAlia, the Company, and the
Subsidiary have good and marketable title to all properties and assets reflected
on their balance sheets, and none of such properties or assets is subject to any
Liens, except for those released at Closing. AmerAlia, the Subsidiary, and the
Company 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, the Company, and the Subsidiary have the
exclusive right to use all of the Intellectual Property necessary to their
business as presently conducted, to the best of AmerAlia's, the Company's and
the Subsidiary's knowledge, and AmerAlia's, the Company's and the Subsidiary's
use of the Intellectual 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 AmerAlia's and the Company's knowledge, no other Person
is infringing the rights of AmerAlia or the Company in any of the Intellectual
Property. Neither AmerAlia, the Company, nor the Subsidiary owes any royalties,
honoraria or fees to any Person by reason of its use of the Intellectual
Property.

         5.11     TAXES. AmerAlia, the Company, and the Subsidiary have timely
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 timely paid all of their tax liabilities, other than
immaterial amounts and taxes that are being contested by AmerAlia, the Company,
or the Subsidiary 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. Neither AmerAlia nor the Company know of any
pending investigation of AmerAlia, the Company, or the Subsidiary by any taxing
authority or pending but unassessed tax liability of AmerAlia, the Company, or
the Subsidiary. AmerAlia, the Company, and the Subsidiary have made no presently
effective waiver of any applicable statute of limitations or request for an
extension of time to file a tax return, and neither AmerAlia, the Company, nor
the Subsidiary is a party to any tax-sharing agreement.

         5.12     USE OF PROCEEDS; MARGIN SECURITIES. Neither AmerAlia, the
Company, nor the Subsidiary is engaged principally, or as one of its important
activities, in the business of extending credit for the purpose of purchasing or
carrying margin stock (within the meaning of Regulations T, U or X of the Board
of Governors of the Federal Reserve System), and no part of the proceeds of any
extension of credit under this Agreement will be used to purchase or carry any
such margin stock or to extend credit to others for the purpose of purchasing or
carrying margin stock. Neither AmerAlia, the Company, the Subsidiary nor any
Person acting on their behalf has taken any action that might cause the
transactions contemplated by this Agreement or any Other Agreements to violate
Regulations T, U or X or to violate the Exchange Act.

                                       15
<PAGE>

         5.13     ERISA. All members of any Controlled Group have complied with
all applicable minimum funding requirements and all other applicable and
material requirements of ERISA and the 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, all members of any Controlled Group 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 the Company or which will result in the occurrence of a
Reportable Event. No member of any Controlled Group has 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 any member of a
Controlled Group. The term "liability," as referred to in this Section 5.13,
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.

         5.14     DISCLOSURE. No representation, warranty or statement made by
AmerAlia or the Company in this Agreement, any of the Other Agreements, 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, the Company, or the Subsidiary that has not been
disclosed in the documents provided to the Sentient Entities. When used in this
context in this Article 5, "disclosure to the Sentient Entities" includes but is
not limited to disclosure made to The Sentient Group and its representatives as
agents for the Sentient Entities.

         5.15     SUBSIDIARIES AND CAPITALIZATION.

                  (a)      The Company has no subsidiaries, other than the
Subsidiary. AmerAlia has no subsidiaries other than the Company. All the issued
and outstanding shares of capital stock of AmerAlia and the Company are duly
authorized, validly issued, fully paid and nonassessable.

                  (b)      Subject to the completion of the transactions
contemplated in this Agreement, the Other Agreements, and the Acquisition
Transaction, the capitalization of AmerAlia is as represented as of the dates
indicated in the SEC Reports.

                  (c)      Subject to the completion of the transactions
contemplated in this Agreement and the Other Agreements, the capitalization of
the Company is 51,000 shares of outstanding Common Stock.

                  (d)      No violation of any preemptive rights of shareholders
of AmerAlia or the Company has occurred by virtue of the transactions
contemplated under this Agreement or any Other Agreement. Subject to the
completion of the transactions contemplated in this Agreement and the Other
Agreements, there are no outstanding contracts, options, warrants, instruments,
documents or agreements binding upon the Company granting to any Person or group
of Persons any right to purchase or acquire shares of the Company's capital
stock.

                  (e)      Subject to the completion of the transactions
contemplated in this Agreement and the Other Agreements, there are no
outstanding contracts, options, warrants, instruments, documents or agreements
binding upon the Subsidiary granting to any Person or group of Persons any right
to purchase

                                       16
<PAGE>

or acquire shares of the Subsidiary's capital stock except for the conversion
rights associated with the Series B2 Debentures.

         5.16     INVESTMENT COMPANY ACT. Neither the Company, the Subsidiary
nor AmerAlia is required to be registered as an "investment company" within the
meaning of the Investment Company Act of 1940, as amended.

         5.17     PUBLIC UTILITY HOLDING CORPORATION ACT. Neither the Company
nor the Subsidiary is a "holding company" or a "subsidiary company" of a
"holding company" or an "affiliate" of a "holding company" or a "public utility"
within the meaning of the Public Utility Holding Corporation Act of 1935, as
amended.

         5.18     SECURITIES LAWS. Assuming the truthfulness and accuracy of the
representations and warranties in Article 6, AmerAlia and the Company 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, the Series A Preferred Stock, the
Series A Debentures, the Series B Debentures, and the Series C Debentures.

         5.19     NO LABOR DISPUTES. Neither AmerAlia, the Company nor the
Subsidiary is involved in any labor dispute except as set forth in Section 5.9.
Neither AmerAlia, the Company, nor the Subsidiary is a party to any collective
bargaining agreement, and there are no strikes or walkouts or union organization
of any of AmerAlia's, the Company's or the Subsidiary's employees threatened or
in existence and no labor contract is scheduled to expire during the term of
this Agreement.

         5.20     BROKERS. Except with respect to amounts owed to McFarland
Dewey Securities Co. and RBC Dain Rauscher, neither AmerAlia, the Company, the
Subsidiary nor any of its 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, the Company, the
Subsidiary, or any of its shareholders under any obligation to pay any broker's
fee or commission in connection with such transactions.

         5.21     INSURANCE. The amount and types of insurance carried by
AmerAlia, the Company and the Subsidiary, and the terms and conditions thereof,
are substantially similar to the coverage maintained by companies in the same or
similar business as AmerAlia, the Company and the Subsidiary and similarly
situated companies.

VI.      REPRESENTATIONS AND WARRANTIES OF THE SENTIENT ENTITIES, AMERALIA AND
         THE SUBSIDIARY.

         As of the Closing, each of the Sentient Entities, the Subsidiary and
AmerAlia represents and warrants to the Company as to itself (and not as to the
other Sentient Entities, the Subsidiary and AmerAlia) that:

         6.1      INVESTMENT REPRESENTATIONS OF AMERALIA. AmerAlia is acquiring
the Series A Debentures, the Series C Debentures, Common Stock and the Series A
Preferred Stock for investment purposes only for its own account, and not with a
view toward, or for resale in connection with, any distribution thereof, and it
has no present intention of selling or distributing any such securities.
AmerAlia understands that the Series A Debentures, the Series C Debentures,
Common Stock and the Series A Preferred Stock have not been registered under the
Securities Act by reason of a specific exemption from the registration
provisions of the Securities Act which depends upon, among other things, the
bona fide nature of the investment as expressed herein.

                                       17
<PAGE>

         6.2      Investment Representations of the Subsidiary. The Subsidiary
is acquiring the Series A Debentures for investment purposes only for its own
account, and not with a view toward, or for resale in connection with, any
distribution thereof, and it has no present intention of selling or distributing
such securities. The Subsidiary understands that the Series A Debentures have
not been registered under the Securities Act by reason of a specific exemption
from the registration provisions of the Securities Act which depends upon, among
other things, the bona fide nature of the investment as expressed herein.

         6.3      INVESTMENT. Each Sentient Entity is acquiring the Series A
Debentures, the Series B1 Debentures, the Series B2 Debentures, the Warrants,
the Notional Share, and if issued, the Warrant Shares, the Conversion Shares and
the Exchange Shares (collectively, the "Securities"); for investment purposes
only for its own account, and not with a view toward, or for resale in
connection with, any distribution thereof, and it has no present intention of
selling or distributing any such securities. Sentient Entities understands that
the Securities have not been registered under the Securities Act by reason of a
specific exemption from the registration provisions of the Securities Act which
depends upon, among other things, the bona fide nature of the investment as
expressed herein.

         6.4      RULE 144. Each Sentient Entity acknowledges that because the
Securities have not been registered under the Securities Act, the Securities
must be held indefinitely unless subsequently registered under the Securities
Act or an exemption from such registration is available. It is aware of the
provisions of Rule 144 promulgated under the Securities Act, which permits
limited resale of shares purchased in a private placement under certain
circumstances that are not applicable to the Securities because neither class of
securities of the Company is registered under the Exchange Act.

         6.5      ACCESS TO DATA. Each Sentient Entity and its legal, financial,
tax, accounting, and investment advisors have had an opportunity to discuss the
Acquisition Transaction (and all due diligence and other data assembled with
respect to the Acquisition Transaction), the historical and proposed business,
management and financial affairs of AmerAlia, the Company and the Subsidiary
with their respective management to the extent they deemed such consultation
necessary or appropriate and to obtain any additional information necessary or
appropriate for deciding whether or not to purchase the Securities.

         6.6      KNOWLEDGE AND EXPERIENCE. Each Sentient Entity has such
knowledge and experience in financial and business matters, including
investments in other companies that are in a financial condition substantially
similar to the financial condition of AmerAlia and the Company immediately prior
to the Closing, that it (together with its advisors) is capable of evaluating
the merits and risks of the investment in the Securities, and it is able to bear
the economic risk of such investment. Further, the individual executing this
Agreement on behalf of each Sentient Entity has such knowledge and experience in
financial and business matters that it is capable of utilizing the information
made available to it and reviewed by each Sentient Entity in connection with the
offer and purchase of the Securities, of evaluating the merits and risks of an
investment in the Securities, and of making an informed investment decision with
respect to the Securities.

         6.7      REQUISITE POWER. Each Sentient Entity has all requisite power
and authority necessary to enter into and to carry out the provisions of this
Agreement and the transactions contemplated hereby.

6.8      DULY AUTHORIZED.

         (a)      All action on the part of each Sentient Entity necessary for
the purchase of the Securities and the performance of each Sentient Entity's
obligations hereunder has been taken or will be taken prior to the Closing. Upon
their execution and delivery, this Agreement, the Other Agreements and the other
documents and instruments to be executed and delivered by the Sentient Entities
will be legal, valid and binding obligations of each Sentient Entity enforceable
in accordance with their terms, except as

                                       18
<PAGE>

such enforcement may be limited by bankruptcy, insolvency, reorganization,
moratorium or other laws and equitable principles relating to or affecting the
enforcement of creditors' rights in general and by general principles of equity.

         (b)      All action on the part of AmerAlia necessary for the purchase
of the Securities and the performance of AmerAlia's obligations hereunder has
been taken or will be taken prior to the Closing. Upon their execution and
delivery, this Agreement, the Other Agreements and the other documents and
instruments to be executed and delivered by AmerAlia will be legal, valid and
binding obligations of AmerAlia enforceable in accordance with their terms,
except as such enforcement may be limited by bankruptcy, insolvency,
reorganization, moratorium or other laws and equitable principles relating to or
affecting the enforcement of creditors' rights in general and by general
principles of equity.

         (c)      All action on the part of the Subsidiary necessary for the
performance of the Subsidiary's obligations hereunder has been taken or will be
taken prior to the Closing. Upon their execution and delivery, this Agreement,
the Other Agreements and the other documents and instruments to be executed and
delivered by the Subsidiary will be legal, valid and binding obligations of the
Subsidiary enforceable in accordance with their terms, except as such
enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium
or other laws and equitable principles relating to or affecting the enforcement
of creditors' rights in general and by general principles of equity.

         6.9      ACCREDITED INVESTOR. Each Sentient Entity is an "accredited
investor" as that term is defined in Regulation D and Rule 215 promulgated by
the Securities and Exchange Commission.

         6.10     RESIDENT. Each Sentient Entity has its principal residence or
principal executive offices outside of the United States, and is not a U.S.
Person as that term is defined in SEC Regulation S, Rule 902(k).

VII.     COVENANTS.

         7.1      RESTRICTIONS ON TRANSFER OF SECURITIES. The Securities are not
and will not become transferable except upon the conditions specified in this
Article VII and the Securityholder Agreement of even date with this Agreement,
which conditions are intended to ensure compliance with the provisions of the
Securities Act and applicable state securities laws in respect of the transfer
of any of such securities. Each instrument representing the securities (or any
of them) shall be stamped or otherwise imprinted with legends substantially in
the following form until such time as the conditions set forth in such legends
have been met:

                  "THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
                  REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR
                  QUALIFIED UNDER ANY STATE SECURITIES LAW, AND MAY NOT BE SOLD,
                  TRANSFERRED, ASSIGNED OR HYPOTHECATED UNLESS THERE IS AN
                  EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT COVERING SUCH
                  SECURITIES, OR THE HOLDER RECEIVES AN OPINION OF COUNSEL (IN A
                  FORM ACCEPTABLE TO THE CORPORATION) STATING THAT SUCH SALE,
                  TRANSFER, ASSIGNMENT OR HYPOTHECATION IS EXEMPT FROM THE
                  REGISTRATION AND PROSPECTUS DELIVERY REQUIREMENTS OF SUCH ACT
                  AND THE QUALIFICATION REQUIREMENTS UNDER STATE LAW."

                                       19
<PAGE>

         The Company may also impose a legend on the certificates for the
securities as described in the Securityholder Agreement. The Company shall be
entitled to enter stop transfer notices on its stock books with respect to the
securities until the conditions as set forth in the legend above with respect to
the transfer of such securities have been met.

         7.2      WAIVER. By execution of this Agreement, the Sentient Entities
hereby waive all closing conditions contained in the Closing Agreement and agree
to close the Financial Closing (as defined therein).

         7.3      INDEMNIFICATION. The amounts owed by the Company as of the
Closing, pursuant to Section 6(a)(iii) of the Management and Cost Reimbursement
Agreement, and set forth on Exhibit D attached hereto shall be paid from the
proceeds of this transaction; provided, however, that if any such amounts remain
unpaid sixty (60) days after the Closing, all amounts required to discharge that
obligation shall be the sole obligation of AmerAlia.

VIII.    MISCELLANEOUS.

         8.1      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.

         8.2      COURSE OF DEALING NOT AN AMENDMENT. No course of dealing
between the Company and the Sentient Entities (or either of them) or any delay
in exercising any rights hereunder or under the Company's Articles of
Incorporation will operate as a waiver of any rights of the Sentient Entities,
the Subsidiary or the Company.

         8.3      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 two (2) years after the Closing. Any due diligence investigation
by the Sentient Entities shall not limit the representations and warranties
given by AmerAlia, the Subsidiary and the Company.

         8.4      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.

         8.5      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.

         8.6      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.

         8.7      DESCRIPTIVE HEADINGS. The descriptive headings of this
Agreement are inserted for convenience only and do not constitute a part of this
Agreement.

         8.8      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

                                       20
<PAGE>

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 the
Company, AmerAlia, or the Subsidiary, 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.

IF TO THE COMPANY, AMERALIA             c/o AmerAlia, Inc.
OR THE SUBSIDIARY:                      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 Seventeenth Street
                                        Suite 3200
                                        Denver, CO 80202-3979
                                        Attn: Sandra P. Velasco, Esq.
                                        Tel: 303-295-8063
                                        Fax: 303-295-8261

IF TO THE SENTIENT ENTITIES             Sentient Executive GP I, Limited
(OR EITHER OF THEM):                    (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

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

                                       21
<PAGE>

WITH A COPY (WHICH DOES NOT CONSTITUTE NOTICE) TO:

Quinn & Brooks LLP
2803 Valley Way
Houston, TX 77339
Attn: Robert J. Quinn, Esq.
Tel: (281) 359-2661
Fax: (281) 359-2669

         8.9      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 the federal courts for the District of Colorado, or the courts in and for
Arapahoe County, Colorado.

         8.10     SCHEDULES AND EXHIBITS. All schedules and exhibits are an
integral part of this Agreement.

         8.11     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.

         8.12     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 agreements and understandings related thereto.

         8.13     CONFIDENTIALITY. The Sentient Entities (and each of them as to
itself) agrees to keep confidential any information delivered by AmerAlia, the
Company or the Subsidiary under this Agreement that AmerAlia, the Company or the
Subsidiary or any other person on the behalf of AmerAlia, the Company, or the
Subsidiary clearly indicates in writing to be confidential information;
provided, however, that nothing in this Section will prevent the Sentient
Entities from disclosing such information (a) to any Affiliate of such Sentient
Entity or any actual or potential purchaser, participant, assignee, or permitted
transferee of such Sentient Entity's rights or obligations hereunder that agrees
to be bound by the terms of this Section, (b) upon order of any court or
administrative agency, (c) upon the request or demand of any regulatory agency
or authority having jurisdiction over such Sentient Entity, (d) that is in the
public domain, (e) that has been obtained from any Person that is not a party to
this Agreement or an Affiliate of any such party without breach by such Person
of a confidentiality obligation known to such Sentient Entity, (f) if necessary
and only to the extent necessary for the exercise of any remedy under this
Agreement, (g) to the certified public accountants for such Sentient Entity or
(h) that has been independently developed by such Sentient Entity without use or
reference to any confidential information of AmerAlia, the Company or the
Subsidiary and such independent development can be shown by documentary
evidence. The Sentient Entities further agree that, to the extent the Sentient
Entities (or either of them) have received any confidential information from any
other source relating to AmerAlia, the Company, the Subsidiary, or the
Acquisition Transaction, it or they (as applicable) will maintain the
confidentiality and non-public nature of the information in accordance with any
other confidentiality or non-disclosure agreements entered into.

         8.14     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 Sentient Entities

                                       22
<PAGE>

acknowledge that AmerAlia must make appropriate announcements to comply with its
obligations under the Exchange Act. AmerAlia agrees that it will provide the
Sentient Entities with a copy of any proposed announcement relating to the
subject matter of this Agreement not less than two business days prior to
AmerAlia's planned release of such announcement to the public, and that AmerAlia
will endeavor to conform the announcement to the Sentient Entities' reasonable
comments, provided AmerAlia can do so and still provide the information to the
public that, in AmerAlia's reasonable opinion, is required by law or regulation.
If the Sentient Entities do not provide comments to AmerAlia within such period,
they will not be deemed to have accepted the announcement in substantially the
form proposed by AmerAlia.

                                       23
<PAGE>

         IN WITNESS WHEREOF, the Company, AmerAlia and the Subsidiary and the
Sentient Entities have caused this Agreement to be executed and delivered by
their respective officers thereunto duly authorized.

                                        NATURAL SODA HOLDINGS, INC.

                                        By: /s/ BILL H. GUNN
                                           -------------------------------------
                                             Bill H. Gunn, Chairman

                                        AMERALIA, INC.

                                        By: /s/ BILL H. GUNN
                                           -------------------------------------
                                             Bill H. Gunn, President

                                        NATURAL SODA, INC.

                                        By: /s/ BILL H. GUNN
                                           -------------------------------------
                                             Bill H. Gunn, Chairman

                               SENTIENT ENTITIES:

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

By: /s/ MARK A. JACKSON                 By: /s/ PETER CASSIDY
   ------------------------------------    -------------------------------------
     Mark A. Jackson, Director                Peter Cassidy, Director

                          DEBENTURE PURCHASE AGREEMENT
<PAGE>

Exhibit A    Amended and Restated Articles of Incorporation

Exhibit B    The Securityholder Agreement between AmerAlia and the Sentient
             Entities with respect to the Company.

Exhibit C    The Management and Cost Reimbursement Agreement among AmerAlia, the
             Sentient Entities and the Company.

Exhibit D    Debts of the Company following the Closing and Use of Proceeds

Exhibit E    Continuing Guarantee

Exhibit F    Form of Security Agreement

Exhibit G    Collateral Holding and Liquidation Agreement

Exhibit H    Warrant Agreement

Exhibit I    Series A Debenture

Exhibit J-1  Series B1 Debenture

Exhibit J-2  Series B2 Debenture

Exhibit K    Series C Debenture

Exhibit L    Release

Exhibit M    Indemnification Letter

                                       25<PAGE>

                                                                   EXHIBIT 10.34

                            SECURITYHOLDER AGREEMENT

         THIS SECURITYHOLDER AGREEMENT (this "Agreement") is made and entered
into as of the 19th day of March 2004, among AMERALIA, INC., a Utah corporation
("AmerAlia"), NATURAL SODA, INC., a Colorado corporation (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. (collectively the "Sentient
Entities") (collectively AmerAlia, the Subsidiary and the Sentient Entities are
referred to herein as the "Securityholders"), , and NATURAL SODA HOLDINGS, INC.,
a Colorado corporation (the "Company").

                                    RECITALS:

         A.       AmerAlia owns 100 shares of the Company's Common Stock, and is
purchasing a principal amount of $3,775,000 Series A Debentures, 4,949 shares of
the Series A Preferred Stock, 50,900 shares of the Company's Common Stock, and
Series C Debentures with a principal amount of $12,000,000, pursuant to the
Debenture Purchase Agreement.

         B.       The Sentient Entities are purchasing Series A Debentures with
a principal amount of $5,000,000, Series B1 Debentures with a total principal
amount of $11,300,000, Series B2 Debentures with a total principal amount of
$9,700,000, and 1 share of Common Stock of the Company, pursuant to the
Debenture Purchase Agreement.

         C.       The Subsidiary is purchasing Series A Debentures with a
principal amount of $750,000 pursuant to the Debenture Purchase Agreement.

         D.       AmerAlia has agreed to pledge its Series A Debentures, Series
C Debentures and Series A Preferred Stock to its creditors. The Subsidiary has
agreed to pledge its Series A Debentures to its creditors.

         E.       The Securityholders desire to enter into this Agreement to set
forth certain understandings they each have with respect to the future operation
of the Company, corporate governance of the Company, rights and restrictions on
their securities in the Company and their respective voting rights and
responsibilities.

         NOW, THEREFORE, intending to be legally bound and for good and adequate
consideration, the receipt and sufficiency of which the Company and AmerAlia,
the Subsidiary and each of the Sentient Entities acknowledge, the parties hereto
agree as follows:

ARTICLE I CERTAIN DEFINITIONS. For purposes of this Agreement:

Section 1.01 Affiliate means, with respect to any Person, (i) any Person
directly or indirectly controlling, controlled by, or under common control with
such Person, (ii) any Person owning or controlling ten percent (10%) or more of
the outstanding voting interests of such Person, (iii) any officer, director, or
general partner of such Person, or (iv) any Person who is an officer, director,
general partner, trustee, or holder of ten percent (10%) or more of the voting
interests of any Person described in clauses (i) through (iii) of this sentence.
For purposes of this definition, the term "controls," "is controlled by," or "is
under common control with" shall mean the possession, direct or indirect, of the
power to direct or

Securityholder Agreement

                                                                    Page 1 of 19
<PAGE>

cause the direction of the management and policies of a Person, whether through
the ownership of voting securities, by contract or otherwise.

Section 1.02 Adjusted EBITDA means the Subsidiary's earnings (calculated in
accordance with generally accepted accounting principles, consistently applied)
(A) before any deduction for (i) interest, taxes, depreciation, write downs,
revaluations and amortization and (ii) payments to the Company for payment by
the Company under the Management Cost and Reimbursement Agreement dated as of
the date hereof and to be effective as of October 1, 2003 (the "Management Cost
and Reimbursement Agreement"), and (B) but including amortization of well-field
capital expense.

Section 1.03 AmerAlia Common Stock means the $.01 par value common stock issued
or issuable by AmerAlia.

Section 1.04 Annual Budget shall have the meaning set forth in Section 3.05.

Section 1.05 CBCA shall mean Colorado Business Corporation Act (as amended from
time-to-time), which is currently found at Title 7 of the Colorado Revised
Statutes, Articles 101 through 117.

Section 1.06 Chargee shall have the meaning set forth in Section 2.02.

Section 1.07 Company Securities means the Debentures, the shares of Series A
Preferred Stock, the shares of the Company's Common Stock, including the one
share of the Company's Common Stock issued to the Sentient Entities,
collectively and individually.

Section 1.08 Debenture Purchase Agreement shall mean that agreement dated March
19, 2004 by which the Sentient Entities are purchasing Series A Debentures,
Series B Debentures, Warrants and 1 share of Common Stock of the Company,
AmerAlia is purchasing Series A Debentures, Series C Debentures, and Series A
Preferred Stock and the Subsidiary is purchasing Series A Debentures.

Section 1.09 Debentures mean collectively the Senior Secured Series A 10%
Debentures due September 30, 2005, the Secured Subordinated Series B1 Debentures
due February 19, 2008, ("Series B1 Debentures"), the Secured Subordinated Series
B2 Convertible Debentures due February 19, 2008 ("Series B2 Debentures"), the
Unsecured Subordinated Series C Debentures due February 19, 2008 Debentures (the
"Series C Debentures"), or any of them as the context may require.

Section 1.10 Directors mean the members of the board of directors of the Company
or the Subsidiary, as appropriate.

Section 1.11 Encumbrance means any charge, claim, community property interest,
condition, equitable interest, lien, option, pledge, security interest,
mortgage, right of way, easement, encroachment, servitude, right of first
refusal, or restriction of any kind, including any restriction on use, voting,
transfer, receipt of income, or exercise of any other attribute of ownership.

Section 1.12 Exchange Date shall have the meaning set forth in Section
3.15(b)(v).

Section 1.13 Exchange Price shall equal 85% of the average between the bid and
asked prices of the AmerAlia Common Stock as quoted by the OTC Bulletin Board,
Nasdaq Stock Market or the principal exchange on which AmerAlia Common Stock is
then trading during the 30 calendar days preceding the date of the written
notice required by Section 3.15(b)(v). If the AmerAlia Common Stock is not
quoted

Securityholder Agreement

                                                                    Page 2 of 19
<PAGE>

on the OTC Bulletin Board, the Nasdaq Stock Market or trading on a stock
exchange at that time, the average price will be established by the board of
directors of AmerAlia in its good faith judgment.

Section 1.14 Exchange Rights shall have the meaning set forth in Section
3.15(b).

Section 1.15 Expiration Date shall mean December 31, 2011; or sooner if the
Parties agree.

Section 1.16 Management shall mean the president, any vice president, secretary
or treasurer of the Company or the Subsidiary, as applicable, acting within the
scope of their authority on behalf of the Company or the Subsidiary, as
applicable.

Section 1.17 Minimum Price shall mean the repayment amount of the Series B2
Debentures that the Company would have paid if those Series B2 Debentures had
not been converted to NSI Common Stock, including Contingent Interest.

Section 1.18 NSI Common Stock shall mean the $.01 par value per share common
stock of the Subsidiary authorized by its articles of incorporation.

Section 1.19 NSI Share Value shall have the meaning set forth in Section
3.15(b)(ii).

Section 1.20 Person shall mean any individual, sole proprietorship, corporation,
business trust, unincorporated organization, association, company, partnership,
joint venture, governmental authority (whether a national, federal, state,
county, municipality or otherwise, and shall include without limitation any
instrumentality, division, agency, body or department thereof), or other entity
of any type or nature.

Section 1.21 Pledged Securities shall have the meaning set forth in Section
2.01(b).

Section 1.22 Rock School Lease shall mean the sodium lease that the U.S. Bureau
of Land Management (Department of the Interior) issued to the Company on June
29, 2001 (serial no. C-0119985), and further includes the permits and other
government approvals related to that sodium lease.

Section 1.23 Selling Securityholder shall have the meaning set forth in Section
2.04(a). When one or both of the Sentient Entities is a Selling Securityholder,
the term shall include both Sentient Entities.

Section 1.24 Sentient Entities shall have the meaning set forth in the preamble,
and it shall also include their Affiliates and investors to the extent that any
Affiliate of or an investor in one or both of the Sentient Entities acquires a
direct interest in the Debentures or the NSI Common Stock.

Section 1.25 Series A Preferred Stock shall mean the Series A Preferred Stock of
the Company.

Section 1.26 Transfer. A Person shall be deemed to have effected a "Transfer" of
a designated security if such Person directly or indirectly: (i) sells, pledges,
encumbers, grants an option with respect to, transfers or disposes of such
security or any interest in such security, or (ii) enters into an agreement or
commitment providing for the sale of, pledge of, encumbrance of, grant of an
option with respect to, transfer of or disposition of such security or any
interest therein.

Section 1.27 Two-Thirds Director Approval shall mean the approval of not less
than two-thirds of the members of the board of directors of the Company or the
Subsidiary, as applicable, at the time such approval is sought. When the board
of directors consists of five members, Two-Thirds Director Approval requires the
approval of at least four members of the applicable board of directors.

Securityholder Agreement

                                                                    Page 3 of 19
<PAGE>

Section 1.28 Warrants shall mean the warrants to purchase an aggregate of
600,000 shares of common stock of AmerAlia.

ARTICLE II.       TRANSFER OF COMPANY SECURITIES.

Section 2.01 Transferee of Company Securities to be Bound by This Agreement.

     (a)  Each Securityholder agrees that, during the period from the date of
          this Agreement through the Expiration Date, each Securityholder shall
          Transfer Company Securities only in accordance with the terms of this
          Agreement, and each Securityholder shall not cause or permit any
          Transfer of any Company Securities to be effected unless prior to any
          such Transfer the Person to which any of such Company Securities, or
          any interest in any of such Company Securities, is or may be
          Transferred shall have: (i) executed a counterpart of this Agreement
          (with such modifications as the Company may reasonably request) and
          (ii) agreed in writing to hold such Company Securities (or interest in
          such Company Securities) subject to all of the terms and provisions of
          this Agreement. Transfers not completed strictly in accordance with
          clauses (i) and (ii) of this Section 2.01 and Section 2.04 below,
          shall be ineffective against the Company or any other Securityholder.

     (b)  Notwithstanding the foregoing, the Sentient Entities each consent to
          (i) AmerAlia's collateral pledge of its Series C Debentures, Series A
          Debentures, and its Series A Preferred Stock to Jacqueline B. Mars, as
          Trustee of the Jacqueline Badger Mars Trust dated February 5, 1975, as
          amended (the "Jacqueline Badger Mars Trust"), to Blue Capital LLC, to
          Charles D. O'Kieffe, to Robert Woolard and any other accredited
          investors subscribing for AmerAlia's Series A Debentures and (ii) the
          Subsidiary's pledge of it's Series A Debentures to the Jacqueline
          Badger Mars Trust (collectively the "Pledged Securities"). The Pledged
          Securities are not subject to the terms of this Agreement except to
          the extent that AmerAlia or the Subsidiary reacquires possessory
          rights with respect to the Pledged Securities, or any of them. (c)
          Notwithstanding the foregoing, AmerAlia and the Subsidiary consents to
          (i) a Transfer by the Sentient Entities among or between a Person
          included within the definition of the Sentient Entities provided that
          such transferee becomes a party to this Agreement and (ii) a Transfer
          by the Sentient Entities to the Jacqueline Badger Mars Trust pursuant
          to the Agreement to Share Proceeds, dated as of the date hereof.

     (d)  Even though this provision and the provisions of Section 2.04 may
          apply to the Pledged Securities, any Transfer of the Pledged
          Securities (or any interest therein) is subject to compliance with all
          of the requirements of applicable securities laws.

Section 2.02 Encumbrances. If a Securityholder Transfers its Company Securities
(or any portion thereof) by granting an Encumbrance to secure a loan or other
indebtedness of the Securityholder in a bona fide transaction, such Transfer
shall be subject to the terms of this Agreement. This provision may be waived by
Two-Thirds Director Approval. Any such Transfer shall be further subject to the
condition that the holder of such Encumbrance ("Chargee") first enter into a
written agreement with the other Securityholders in form satisfactory to such
Securityholders, acting reasonably and in good faith, binding upon the Chargee,
to the effect that:

Securityholder Agreement

                                                                    Page 4 of 19
<PAGE>

     (a)  except as set forth below, the Chargee shall not enter into possession
          or institute any proceedings for foreclosure or partition of the
          encumbering Securityholder's Company Securities; and

     (b)  the Chargee's remedies under the Encumbrance shall be limited to the
          sale of the whole (but only of the whole) of the encumbering
          Securityholder's Company Securities to the other Securityholders, or,
          failing such a sale, at a public auction to be held at least 60 days
          after prior notice to the other Securityholders, such sale to be
          subject to the purchaser entering into a written agreement with the
          other Securityholders whereby such purchaser assumes all obligations
          of the encumbering Securityholder under the terms of this Agreement.
          The price of any preemptive sale to the other Securityholders shall be
          the remaining principal amount of the loan (or other obligation
          collateralized by such Encumbrance) plus accrued interest and related
          expenses on the terms set forth in the documents evidencing such loan
          or other obligation, and such preemptive sale shall occur within 60
          days of the Chargee's notice to the other Securityholders of its
          intent to sell the encumbering Securityholder's Company Securities.
          Failure of a sale to the other Securityholders to close by the end of
          such period, unless such failure is caused by the encumbering
          Securityholder or by the Chargee, shall permit the Chargee to sell the
          encumbering Securityholder's Company Securities at a public sale to
          the extent permitted by and in accordance with applicable law.

Section 2.03 Limited Transfer of Voting Rights. Each Securityholder agrees that,
during the period from the date of this Agreement through the Expiration Date,
no Securityholder shall deposit (or permit the deposit of) any shares of NSI
Common Stock or the Company's Common Stock in a voting trust or grant any proxy
or enter into any voting agreement or similar agreement in contravention of the
obligations of such Securityholder under this Agreement with respect to any of
the shares of NSI Common Stock or the Company's Common Stock.

Section 2.04 Restrictions on Transferability. Each Securityholder agrees that it
will not Transfer any of the Company Securities, whether now owned or hereafter
acquired, whether voluntarily or involuntarily, except through a Transfer which
meets the requirements of this Article II, and each Securityholder further
agrees that any Transfer which does not meet the requirements of this Article II
shall be null and void.

     (a)  VOLUNTARY SALES. If a Securityholder (the "Selling Securityholder")
          wishes to dispose of all or a portion of its Company Securities (the
          "Offered Company Securities") through a voluntary sale or other
          disposition of the Common Stock or Debentures owned by the Selling
          Securityholder, the Selling Securityholder will first offer the
          Offered Company Securities to the other Securityholders in writing.
          The Selling Securityholder and the other Securityholders will, in good
          faith, engage in negotiations to complete the purchase and sale of the
          Offered Company Securities on terms reasonably acceptable to the
          Selling Securityholder and the other Securityholders. It is the
          parties' current intent that if Series B2 Debentures are converted
          into NSI Common Stock and no liquidity event, such as a public
          offering involving the Subsidiary's shares, has occurred, that
          AmerAlia will use commercially reasonable efforts, within a reasonable
          period of time after the Maturity Date of the Series B Debentures, to
          (i) purchase such shares, (ii) seek another investor to purchase such
          shares, or (iii) solicit acquisition offers from third party entities.
          If AmerAlia offers to buy the shares within 90 days of conversion,
          AmerAlia shall offer to purchase such shares at the greater of (i) the
          NSI Share Value multiplied by the number of shares of NSI Common Stock
          held by Sentient or (ii) the Minimum Price.

     (b)  OFFER BEFORE PAYMENT OF THE SERIES B DEBENTURES. If the Sentient
          Entities desire to sell all (and not less than all) of the Company
          Securities they then own prior to the repayment in full of the

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                                                                    Page 5 of 19
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          Series B Debentures, the Sentient Entities shall make a written offer
          to sell the Offered Company Securities to AmerAlia naming a price and
          the terms of purchase (the "Written Offer"). If AmerAlia does not
          irrevocably and in writing elect to purchase the Offered Company
          Securities before the expiration of 30 days following its receipt of
          the Written Offer, the Sentient Entities may complete the sale of the
          Offered Company Securities to a third party on the same price and at
          the same terms set forth in the Written Offer within the 90 days
          following AmerAlia's receipt of the Written Offer.

     (c)  OFFER IF THE SENTIENT ENTITIES OWN NSI COMMON STOCK AND THE REMAINING
          SERIES B DEBENTURES HAVE BEEN REPAID. If the Sentient Entities desire
          to sell all (and not less than all) of the shares of NSI Common Stock
          they own, the Sentient Entities shall make a written offer to sell the
          Offered Company Securities to AmerAlia naming a price and the terms of
          purchase (the "Written Offer"). If AmerAlia does not elect irrevocably
          and in writing to purchase the Offered Company Securities before the
          expiration of 30 days following its receipt of the Written Offer, the
          Sentient Entities may complete the sale of the Offered Company
          Securities to a third party on the same price and at the same terms
          set forth in the Written Offer within the 90 days following AmerAlia's
          receipt of the Written Offer. The Sentient Entities may further
          require that AmerAlia or the Company sell all the shares of NSI Common
          Stock it then owns to the third party on the same per share price
          provided that (1) AmerAlia or the Company, as applicable, shall only
          be required to make customary representations, warranties and
          covenants which shall also be made by Sentient and (2) AmerAlia or the
          Company, as applicable, shall only bear its proportionate share of any
          escrow, holdback or price adjustment.

          If the AmerAlia Shareholders are required to approve the sale of NSI
          Common Stock by AmerAlia, and fail to do so, the Sentient Entities may
          (i) appoint additional directors of the Subsidiary so that the
          directors nominated by the Sentient Entities constitute two-thirds of
          the members of the Board of Directors of the Subsidiary (which
          appointment shall constitute an expansion of the Board) and (ii) the
          Sentient Entities will have the right to purchase for $0.10 per share
          additional shares of NSI Common Stock so that the Sentient Entities
          will have a majority of the vote at any meeting of the shareholders.
          The Sentient Entities shall then have 90 days to complete the sale of
          its Company Securities to a third party. If the Sentient Entities are
          unable to complete the sale of Company Securities within such time,
          the Sentient Entities will rescind the actions above.

          AMERALIA'S RIGHT TO OFFER COMPANY SECURITIES IF THE SENTIENT ENTITIES
          OWN NSI COMMON STOCK AND THE REMAINING SERIES B DEBENTURES HAVE BEEN
          REPAID. If AmerAlia desires to sell all (and not less than all) of the
          Company Securities it owns, and if the Sentient Entities hold NSI
          Common Stock and the remaining Series B Debentures have been repaid,
          AmerAlia shall make a written offer to sell the Offered Company
          Securities to the Sentient Entities naming a price and the terms of
          purchase (the "Written Offer"). If the Sentient Entities do not elect
          irrevocably and in writing to purchase the Offered Company Securities
          before the expiration of 30 days following its receipt of the Written
          Offer, AmerAlia may complete the sale of the Offered Company
          Securities to a third party on the same price and at the same terms
          set forth in the Written Offer within the 90 days following the
          Sentient Entities' receipt of the Written Offer; provided, however
          that the Sentient Entities may require that the purchaser purchase its
          Company Securities in the transaction on the same terms as AmerAlia;
          provided, further, that if the purchaser will not purchase the Company
          Securities held by the Sentient Entities, AmerAlia may not sell its
          Company Securities unless AmerAlia purchases the Company Securities
          held by the Sentient Entities on the same terms and conditions.

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     (d)  The Company and the other Securityholders shall cooperate with
          reasonable requests for due diligence investigations by prospective
          purchasers, provided, however:

          (i)  The purchaser provides the Company, the Subsidiary and the other
          Securityholders information reasonably satisfactory to the Company and
          to the other Securityholders that it is financially capable (directly
          or with borrowings) of completing the purchase of all of the
          outstanding Company Securities; and

          (ii) The purchaser enters into confidentiality and non-use agreements
          as to any confidential or non-public information about the Company
          and/or the Subsidiary that the purchaser may receive in its due
          diligence investigation, which confidentiality and non-use agreements
          must be satisfactory to the Company and to the other Securityholders
          in their reasonable discretion.

     (e)  As a condition precedent to the effectiveness of any Transfer of the
          Offered Company Securities to any Person that is not a party to this
          Agreement, such transferee shall agree in writing to be bound by all
          of the terms and conditions of this Agreement and to be included as a
          "Securityholder" pursuant to the terms hereof. The purchaser of the
          Offered Company Securities of either AmerAlia or the Sentient Entities
          will enjoy all of the rights and be subject to the obligations under
          this Agreement of the seller of those securities.

     (f)  Sections 2.04(a) and (b) do not apply to a voluntary sale where the
          Person acquiring the Company Securities is an Affiliate of, or
          otherwise under the control of, the Selling Securityholder or is
          included within the definition of the term "Sentient Entities," and
          where the Person acquiring the Company Securities pursuant to this
          Section 2.04(f) does not propose to change the Directors designated by
          the Selling Securityholder.

ARTICLE III. AGREEMENTS BETWEEN THE SECURITYHOLDERS.

Section 3.01 Agreement with Respect to Board Representation of the Company. The
Securityholders agree to vote their Company Securities so that the Board of
Directors of the Company will consist of five Persons as follows:

     (a)  (i)   Two Persons nominated by the Sentient Entities voting as a
          separate group who shall be reasonably acceptable to AmerAlia,

          (ii) Two Persons nominated by AmerAlia voting as a separate group who
          shall be reasonably acceptable to the Sentient Entities, and

          (iii) One Person who shall be an industry representative not
          affiliated with the Company, AmerAlia or the Sentient Entities (the
          "Independent Director") who shall be nominated by any Securityholder
          and reasonably acceptable to AmerAlia, the Subsidiary and the Sentient
          Entities.

     (b)  Initially the Company's board of directors will consist of: (i) Bill
          H. Gunn and Robert van Mourik (as Directors nominated by AmerAlia),
          and (ii) Mark A. Jackson and Peter Cassidy (as Directors nominated by
          the Sentient Entities). When he becomes available to serve on the
          Board, the Securityholders agree to elect Steve Smith as the initial
          Independent Director. If Steve Smith is not available to serve on the
          Board of Directors within a reasonable time period or the Independent
          Director position becomes vacant for any reason, the Securityholders
          shall use their best efforts to find and elect a new Independent
          Director pursuant to Section 3.01 in good faith.

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     (c)  Either the Sentient Entities or AmerAlia may remove any Director
          nominated by it or them with or without cause upon notice in writing
          sent to the Company, that Director, and the remaining Securityholders.
          Any vote taken to fill any vacancy created by the resignation, removal
          or death of a director elected pursuant to Section 3.01(a) shall be
          subject to the provisions of Section 3.01.

     (d)  If either of the Sentient Entities declares an Event of Default under
          any of the Debentures (as the term "Event of Default" is defined in
          the Debentures), the Sentient Entities may, in their discretion: (i)
          appoint additional directors of the Company so that the directors
          appointed or nominated by the Sentient Entities constitute two-thirds
          of the members of the Board of Directors (which appointment will
          constitute an expansion of the Board), or (ii) the Sentient Entities
          will have the right to purchase for $0.10 per share, shares of the
          Company's common stock so that the Sentient Entities will have a
          majority of the vote at any meeting of the shareholders of the
          Company, for the purpose of curing the Event of Default. Upon the cure
          or its written waiver of such Event of Default, the Sentient Entities
          will resign the additional directors appointed pursuant to clause (i)
          above and resell the shares of the Company's common stock to the
          Company purchased pursuant to clause (ii) above.

Section 3.02 Agreement with Respect to Board Representation of the Subsidiary.
The Securityholders agree that the board of directors of the Subsidiary shall be
comprised of the individuals who are serving as the Company's Board of Directors
in accordance with Section 3.01. Each Securityholder agrees to vote its shares
of common stock of the Company or other Company Securities and to cause its
representatives or the Company's Board of Directors, subject to their fiduciary
duties, to vote and take other appropriate action to effect this Section 3.02.

Section 3.03 Agreement with Respect to Appointment of Management

     (a)  The Directors of the Company shall appoint a chairman of the board,
          and the Directors of the Subsidiary shall appoint a chairman of the
          board, in each case by Two-Thirds Director Approval.

     (b)  The Directors of the Company and the Subsidiary, respectively, shall
          appoint officers, including, to the extent deemed appropriate: a
          president, chief executive officer, chief operating officer, and chief
          financial officer, for each of the Company and the Subsidiary by a
          Two-Thirds Director Approval. The officers of the Subsidiary do not
          have to be the same Persons as the officers of the Company unless the
          Directors of the Subsidiary determine it appropriate to appoint the
          same Persons to the same offices.

Section 3.04 Market Stand-Off Agreement. The Securityholders shall not sell,
dispose of, transfer, make any short sale of, grant any option for the purchase
of, or enter into any hedging or similar transaction with the same economic
effect as a sale, any NSI Common Stock held by Securityholder, for a period of
time specified by the managing underwriter(s) (not to exceed ninety (90) days)
following the effective date of a registration statement of the Subsidiary filed
under the Securities Act of 1933, as amended, related to the Subsidiary's
initial firm commitment underwritten public offering of NSI Common Stock.
Securityholder agrees to execute and deliver such other agreements as may be
reasonably requested by the Subsidiary and/or the managing underwriter(s) which
are consistent with the foregoing or which are necessary to give further effect
thereto. To enforce the foregoing covenant, the Subsidiary may impose
stop-transfer instructions with respect to such NSI Common Stock until the end
of such period. The underwriters of the Subsidiary's stock are intended third
party beneficiaries of this Section 3.04 and shall have the right, power and
authority to enforce the provisions hereof as though they were a party hereto.

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Section 3.05 Agreement with Respect to Budget Approvals.

     (a)  Management shall prepare for the approval of the Directors each
          calendar year (no later than 90 days prior to the end of the
          then-current calendar year) capital and operating budgets and
          three-year operating plan for each of the Company and the Subsidiary
          for the next calendar year (each an "Annual Budget"). Each Annual
          Budget shall set forth for each of the Company and the Subsidiary at a
          minimum: (i) the estimated receipts and revenue (including loan
          proceeds and anticipated investment); (ii) the estimated expenditures
          and obligations (capital, operating and other) of each of the Company
          and the Subsidiary; and (iii) estimated Adjusted EBITDA (as defined in
          Section 3.15(b)(iii)) of the Company and the Subsidiary.

          Each respective Annual Budget shall set forth information in
          sufficient detail to provide an estimate of cash flow, capital
          proceeds and other financial requirements of the Company and the
          Subsidiary for such year. Any such Annual Budget shall also include
          such other information or other matters related to the Company's
          business and the Subsidiary's business to enable the Directors to make
          an informed decision with respect to their approval of such Annual
          Budget. Any such Annual Budget shall also comply with the requirements
          of any other agreement to which the Company or the Subsidiary (as
          applicable) is a party.

     (b)  The Directors shall review any proposed Annual Budget and shall offer
          any revisions thereto within 45 days of their receipt of the draft.
          The Directors shall also ensure that the Annual Budget is consistent
          with the requirements of any agreement to which the Company or the
          Subsidiary may be a party.

     (c)  The Directors must approve the Annual Budget and any amendment thereto
          for each of the Company and the Subsidiary by a Two-Thirds Director
          Approval.

     (d)  Management shall implement the Annual Budget for each of the Company
          and the Subsidiary after approval by the Directors. In implementing
          the Annual Budget, Management shall be authorized to make only the
          expenditures and incur only the obligations provided for therein.

     (i)  Notwithstanding the foregoing, Management may make any reasonably
          necessary expenditure or incur any reasonably necessary obligation,
          whether or not such expenditure or obligation is provided for in the
          then-applicable Annual Budget, which is the legal obligation of the
          Company or the Subsidiary and not within the reasonable control of
          Management (including (without limitation) real or personal property
          taxes), or which may be reasonably necessary to protect the assets of
          the Company or the Subsidiary. If Management becomes aware of an
          expenditure or obligation described in the preceding sentence, it will
          notify the members of the board of directors prior to making such
          expenditure or obligation.

     (ii) If the Directors are not able to agree on an Annual Budget for any
          year for either the Company or the Subsidiary (or both), each line
          item in the Annual Budget for the prior year shall be increased by the
          percentage increase in the CPI Index from the first day for which the
          previous Annual Budget was in effect to the first day for which the
          new Annual Budget is to be in effect. As used herein, "CPI Index"
          shall mean the Consumer Price Index for All Items All Urban Consumers
          (CPI-U) (1982-84 = 100) for the United States, as published by the
          United States Department of Labor's Bureau of Labor Statistics (the
          "Bureau") for the region that includes Denver, Colorado. Should the
          Bureau discontinue the publication of the above index, or publish the
          index less frequently, or alter the index in some other material
          manner, then the president of the Company shall, from time to time,
          adopt a substitute index or substitute

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                                                                    Page 9 of 19
<PAGE>

          procedure that reasonably reflects and monitors adjustments in
          consumer prices in the region that includes Denver, Colorado.

     (e)  The Directors may consider and approve amendments, additions to, and
          changes of the Annual Budget of either the Company or the Subsidiary
          (or both) from time-to-time as such may be presented to the Directors
          by Management. Any approval of amendments, additions to, and changes
          of the Annual Budget must be approved by the Directors in the same
          manner and by the same vote as the Directors must approve the Annual
          Budget initially.

     (f)  Management will provide the Securityholders cash and other reports as
          any of them may reasonably require.

Section 3.06 Limitations on Actions of the Company. Except as set forth in
Section 3.08, in addition to the other requirements of the CBCA, the Company may
not take any of the following actions without Two-Thirds Director Approval.

     (a)  Merge, reorganize, or consolidate with or into another Person;

     (b)  Sell the Company's interest in the Rock School Lease or its interest
          in the Subsidiary, or otherwise Transfer 5% or more of the value of
          the Company's assets (which limitation does not prevent the Company
          from selling its inventory in the ordinary course of business);

     (c)  Borrow funds in a material amount;

     (d)  Enter into any material agreement with an Affiliate, regardless of the
          terms of such agreement;

     (e)  Declare or pay any dividends on its capital stock;

     (f)  Approve amendments to any other agreement entered into between the
          Company, AmerAlia and the Subsidiary;

     (g)  Issue any shares of Common Stock, any other series of preferred stock
          or Debentures (or options, rights, or warrants to acquire Common
          Stock, or any other series of preferred stock or Debentures) to any
          Person;

     (h)  Approve amendments to agreements with any lender other than those
          administrative or ministerial in nature;

     (i)  Approve a filing under the United States Bankruptcy Code or seek a
          receivership under any state law;

     (j)  Vote the capital stock of the Subsidiary;

     (k)  Make prepayments of the Debentures (or any of them);

     (l)  Vote to amend the articles of incorporation or bylaws of the Company,
          or vote to liquidate or dissolve the Company;

     (m)  Vote to redeem any outstanding capital stock of the Company;

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     (n)  Vote to change the terms of any employee benefits, or the change the
          terms of any employment contract between the Company and any officer
          of the Company; and

     (o)  Waive any corporate opportunity presented to the Board.

Section 3.07 Limitations on Actions of the Subsidiary. Except as set forth in
Section 3.08, in addition to the other requirements of the CBCA, the Subsidiary
may not take any of the following actions without Two-Thirds Director Approval
by the Directors of the Subsidiary.

     (a)  Merge, reorganize, or consolidate with or into another Person;

     (b)  Transfer 5% or more of the value of the Subsidiary's assets outside of
          the ordinary course of business (which limitation does not prevent the
          Subsidiary from selling its inventory or replacing or upgrading its
          equipment in the ordinary course of business);

     (c)  Borrow funds in any material amount;

     (d)  Enter into any material agreement with an Affiliate, regardless of the
          terms of such agreement;

     (e)  Declare or pay any dividends on its capital stock;

     (f)  Approve amendments to any other agreement entered into between the
          Company, AmerAlia and the Subsidiary;

     (g)  Issuance of any shares of common stock or any series of preferred
          stock of the Subsidiary (or options, rights, or warrants to acquire
          common stock, or any series of preferred stock) to any Person;

     (h)  Approve amendments to agreements with any lender other than those
          administrative or ministerial in nature;

     (i)  Approve a filing under the United States Bankruptcy Code or seek a
          receivership under any state law;

     (j)  Vote to amend the articles of incorporation or bylaws of the
          Subsidiary, or vote to liquidate or dissolve the Subsidiary;

     (k)  Vote to redeem any outstanding capital stock of the Subsidiary;

     (l)  Vote to change the terms of any employee benefits, or the change the
          terms of any employment contract between the Subsidiary and any
          officer of the Subsidiary; and

     (m)  Waive any corporate opportunity presented to the Board.

Section 3.08 Exceptions to Sections 3.06 and 3.07. Notwithstanding the above
Sections 3.06 and 3.07, the Securityholders agree that (i) the Company shall be
able to issue capital stock to AmerAlia and (ii) the Subsidiary shall be able to
declare and pay dividends on its capital stock, upon approval of a majority of
the members of the Board of Directors, if all the net proceeds of such
transactions are used to repay the Company Securities, or the interest thereon,
in full or in part, according to the terms of the Debentures, the Debenture
Purchase Agreement or the Articles of Incorporation. Further, notwithstanding
the above, the Subsidiary may borrow money on a secured or unsecured basis and
the

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                                                                   Page 11 of 19
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Company may borrow money on a secured basis, for the purpose of repaying the
Company Securities, or interest thereon, in full. Following the conversion of
the Series B2 Debentures, the Sentient entities shall cause the members of the
Board of Directors of the Subsidiary representing the Sentient Entities to
abstain from any actions by the Subsidiary's Board of Directors with respect to
the cancellation, forgiveness or any other method of terminating, loans, if any,
made by the Subsidiary to the Company to allow the Company to repay any of the
Debentures or any amounts owed under the Management Cost and Reimbursement
Agreement, so long as there are no adverse tax consequences to the Subsidiary.
Section 3.09 Intentionally Omitted.

Section 3.10 Intentionally Omitted.

Section 3.11 Intentionally Omitted.

Section 3.12 Intentionally Omitted.

Section 3.13 Agreement with Respect to Indemnification and Advancement of
Expenses.

     (a)  Each Securityholder agrees that it will use its best efforts to cause
          the Company or the Subsidiary, as applicable, to indemnify Persons who
          are or who were directors, officers, authorized agents, and employees
          of the Company or the Subsidiary, as applicable, to the maximum extent
          permitted by the CBCA for acts taken by such Persons on behalf of the
          Company or the Subsidiary, as applicable.

     (b)  Each Securityholder further agrees that it will use its best efforts
          to cause the Company to advance expenses for the defense of any Person
          for whom indemnification is contemplated under the preceding
          subsection to the maximum extent that the advancement of expenses is
          permitted under the CBCA.

     (c)  Each Securityholder further agrees that it will use its best efforts
          to cause the Company and Subsidiary to maintain directors' and
          officers' liability insurance to the extent that such insurance is
          available to the Company and Subsidiary on commercially reasonable
          terms.

Section 3.14 Intentionally Omitted.

Section 3.15 Agreements With Respect to the Debentures.

     (a)  Forbearance Agreement.

          (i)  The Sentient Entities agree that if the Company is not able to
               pay interest accruing on all of the Series A Debentures, and if
               the Series A Debentures held by AmerAlia remain subject to a
               pledge to third parties, then the Sentient Entities hereby direct
               the Company to pay interest on the Series A Debentures held by
               persons other than the Sentient Entities.

          (ii) If there is a Holder of the Series A Debentures other than
               AmerAlia or the Subsidiary, the Sentient Entities each agree that
               through September 30, 2004, neither of them will declare an Event
               of Default on any Debentures they hold solely for the basis of
               non-payment of amounts due under the Debentures unless one or
               more other holders of Series A Debentures other than AmerAlia or
               the Subsidiary declares an Event of Default under the Series A
               Debentures such persons hold. If any other person gives the
               Company notice of the existence of an Event of

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               Default under the Series A Debentures, the Sentient Entities will
               have all of the rights granted to them under any and all of the
               Debentures they then hold, the security agreement pursuant to
               which the Company and the Subsidiary have granted a security
               interest to collateralize the Debentures, as well as their rights
               under any other agreement relating to that indebtedness.

          (iii) AmerAlia agrees that if it refinances its obligations that are
               collateralized by the Series A Debentures, so that the Series A
               Debentures are released from any pledge or other similar
               obligation, AmerAlia will not declare an Event of Default on the
               Series A Debentures unless and until the Sentient Entities first
               declares an Event of Default with respect thereto. Nothing in
               this paragraph prevents AmerAlia from granting a security
               interest in the Series A Debentures it holds at any time
               (provided that such grant complies with the provisions of Section
               2.04 hereof), upon which grant the agreements set forth in this
               paragraph are suspended until such time as the Series A
               Debentures are released from such arrangement

          (iv) The Subsidiary agrees that it will not declare an Event of
               Default on the Series A Debentures unless and until the Sentient
               Entities first declare an Event of Default with respect thereto.
               Nothing in this paragraph prevents the Subsidiary from granting a
               security interest in the Series A Debentures it holds at any time
               (provided that such grant complies with the provisions of Section
               2.04 hereof), upon which grant the agreements set forth in this
               paragraph are suspended until such time as the Series A
               Debentures are released from such arrangement.

     (b)  The Sentient Entities' Exchange Rights. Following the approval of a
          majority of the shares of AmerAlia Common Stock voting at a meeting of
          shareholders at which a quorum is present, the Holder will have the
          right (and AmerAlia hereby grants such right to the Holder) to
          exchange all of the Series B1 Debentures or all of the Series B2
          Debentures, together with all of the certificates representing shares
          of NSI Common Stock they hold or both for shares of AmerAlia Common
          Stock as follows (the "Exchange Rights"):

          (i)  Right to Exchange. The Sentient Entities may exchange all (but
               not less than all) of the principal amount of the Series B1
               Debentures or the Series B2 Debentures or both, plus accrued and
               unpaid interest on such Series B1 Debentures or Series B2
               Debentures they then hold (or if the Sentient Entities have
               converted the Series B2 Debentures into shares of NSI Common
               Stock, the remaining Series B Debentures and all shares of NSI
               Common Stock they then hold) and Contingent Interest on such
               Series B1 Debentures or Series B2 Debentures (as defined therein)
               at any time after the earlier of:

                    1) the Company provides notice that it intends to prepay the
                    Series B1 Debentures or the Series B2 Debentures, as
                    appropriate; and

                    2) September 30, 2004.

          (ii) Exchange Rate for the Debenture. AmerAlia will issue shares of
               AmerAlia Common Stock to the Sentient Entities when both of the
               Sentient Entities present all of the Series B1 Debentures or all
               of the Series B2 Debentures, or both, together with all of the
               certificates representing shares of NSI Common Stock they hold at
               the office of AmerAlia or any transfer agent for the AmerAlia
               Common Stock, for that number of shares of AmerAlia Common Stock
               that is equal to the quotient obtained by dividing the unpaid
               principal amount of the Series B1 Debentures and/or Series B2
               Debentures (plus accrued but unpaid interest and Contingent
               Interest, if owed) by the Exchange Price.

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          (iii)Exchange Rate for the NSI Common Stock. AmerAlia will issue
               shares of AmerAlia Common Stock to the Sentient Entities when
               both of the Sentient Entities present all of the shares of NSI
               Common Stock they own together with all of the Series B2
               Debentures they then hold to AmerAlia or any transfer agent for
               the AmerAlia Common Stock, into that number of shares of AmerAlia
               Common Stock that is equal to the quotient obtained by dividing
               the NSI Share Value (as defined below), by the Exchange Price.
               For the purposes of the preceding sentence, the "NSI Share Value"
               means the product of:

                    -    the number of shares of NSI Common Stock to be
                         exchanged

                    -    divided by the total number of shares of the NSI Common
                         Stock issued and outstanding

                    -    multiplied by the Subsidiary's Adjusted EBITDA

                    -    multiplied by 5.

               For purposes of this section, the Subsidiary's Adjusted EBITDA
               shall be the higher of (i) the Subsidiary's Adjusted EBITDA for
               the 12-month period prior to the exchange or (ii) the average of
               the two 12-month periods prior to the exchange.

          (iv) Adjusted EBITDA. If Sentient disagrees with the Adjusted EBITDA
               amounts provided by the Subsidiary, Sentient shall provide notice
               to the Subsidiary within 15 calendar days of receiving such
               information that it disagrees with the Adjusted EBITDA amounts.
               After providing notice, Sentient may then have the Subsidiary's
               auditor audit the Adjusted EBITDA amounts at Sentient's expense.

          (v)  Mechanics of Exchange. In order to complete the exchange for
               AmerAlia Common Stock, the Sentient Entities shall: (i) surrender
               all of the Series B1 Debentures or all of the Series B2
               Debentures and (if issued) the NSI Common Stock, or both, duly
               endorsed, at the office of AmerAlia, or of any transfer agent for
               the AmerAlia Common Stock, and (ii) give written notice to the
               Subsidiary at such office that Sentient Entities elect to
               exchange all of the Series B1 Debentures or all of the Series B2
               Debentures and (if issued) the NSI Common Stock, or both, and
               shall state therein the dollar amount of all of the Series B1
               Debentures or all of the Series B2 Debentures or the NSI Share
               Value of the NSI Common Stock being exchanged. Thereafter,
               AmerAlia shall issue and deliver at such office to Sentient
               Entities a certificate or certificates for the number of shares
               of AmerAlia Common Stock to which each of the Sentient Entities
               is entitled. Such exchange shall be deemed to have been made
               immediately prior to the close of business on the date (the
               "Exchange Date") that the Sentient Entities have accomplished
               both the surrender of the certificate or certificates required by
               clause (i) and the written notice required by clause (ii), and
               the person entitled to receive the shares of AmerAlia Common
               Stock issuable upon such exchange shall be treated for all
               purposes as the record holder of such shares from that date
               forward.

          (vi) Cancellation of Exchanged Shares or Debentures. Upon exchange of
               all of the Series B1 Debentures or all of the Series B2
               Debentures and the NSI Common Stock, or both, for AmerAlia Common
               Stock, the Series B Debentures or NSI Common Stock, as the case
               may be, so exchanged will be cancelled and no longer outstanding.

          (vii)Fractional Shares. No fractional shares of AmerAlia Common Stock
               shall be issued in exchange for the Series B1 Debentures or
               Series B2 Debentures or the NSI Common Stock. In lieu of any
               fractional share to which the Sentient Entities would otherwise
               be entitled, AmerAlia shall pay cash based on the Exchange Price.

Securityholder Agreement

                                                                   Page 14 of 19
<PAGE>

        (viii) Obligation to Reserve Shares. AmerAlia shall reserve out of its
               authorized but unissued shares of AmerAlia Common Stock
               52,000,000 shares of AmerAlia Common Stock issuable upon exchange
               of all of the Series B1 Debentures or all of the Series B2
               Debentures, or both.

                    1) AmerAlia may reduce the number of reserved shares to that
                    amount reasonably deemed to be sufficient to satisfy the
                    exchange right under the Series B1 Debentures or Series B2
                    Debentures and the NSI Common Stock, based on the average
                    price of AmerAlia Common Stock during any 30 day period.

                    2) AmerAlia will increase the number of reserved shares at
                    the written request of the Sentient Entities if the average
                    price of AmerAlia Common Stock during any 30 day period
                    reduces to a price where the number of reserved shares is
                    not sufficient to meet the Exchange Rights.

Section 3.16 Agreement with Respect to Loans

On each of the dates below, at the request of the Sentient Entities, the Company
shall lend to Sentient Global Resources Fund I, L.P. up to the following maximum
amount:

<TABLE>
<CAPTION>
                                 $
                              -------
<S>                           <C>
March 19, 2004                180,000
February 20, 2005             160,000
February 20, 2006             140,000
February 20, 2007             120,000
</TABLE>

These loans shall be made at zero percent interest and shall be due February 19,
2008. To the extent that the Company makes a payment of principal pursuant to
the Debentures held by Sentient Global Resources Fund I, L.P., Sentient Global
Resources Fund I, L.P. shall repay a proportional amount of these loans and the
allowable loan amounts in subsequent years will be proportionately reduced. To
the extent there is an Event of Default under the Debentures, any amounts
outstanding under these loans shall be set off against amounts owed to the
Sentient Entities pursuant to the Debentures; provided, that such set off shall
first apply against the amounts owed to the Debentures held by Sentient Global
Resources Fund I, L.P. and subsequently against the amounts owed to the
Debentures held by Sentient Global Resources Trust No. I, if necessary.

ARTICLE IV. ADDITIONAL DOCUMENTS. Each Securityholder hereby covenants and
agrees to execute and deliver any additional documents necessary or desirable,
in the reasonable opinion of any Securityholder or two-thirds of the Directors
of the Company, to carry out the intent of this Agreement.

ARTICLE V. TERMINATION. This Agreement shall terminate and shall have no further
force or effect as of the Expiration Date, without further action or notice of
any Securityholder.

ARTICLE VI. MISCELLANEOUS.

Section 6.01 Severability. If any term, provision, covenant or restriction of
this Agreement is held by a court of competent jurisdiction to be invalid, void
or unenforceable, then the remainder of the terms, provisions, covenants and
restrictions of this Agreement shall remain in full force and effect and shall
in no way be affected, impaired or invalidated.

Securityholder Agreement

                                                                   Page 15 of 19
<PAGE>

Section 6.02 Binding Effect and Assignment. This Agreement and all of the
provisions hereof shall be binding upon and inure to the benefit of the parties
hereto and their respective successors and permitted assigns, but, except as
otherwise specifically provided herein, neither this Agreement nor any of the
rights, interests or obligations of the parties hereto may be assigned by any of
the parties without prior written consent of the others.

Section 6.03 Amendments and Modifications. This Agreement may not be modified,
amended, altered or supplemented except upon the execution and delivery of a
written agreement executed by the parties hereto.

Section 6.04 Specific Performance; Injunctive Relief. The parties hereto
acknowledge that the Company and the Securityholders shall be irreparably harmed
and that there shall be no adequate remedy at law for a violation of any of the
covenants or agreements of a Securityholder set forth herein. Therefore, it is
agreed that, in addition to any other remedies that may be available to the
Company and the other Securityholders upon such violation, the Company and the
other Securityholders shall each have the right to enforce such covenants and
agreements by specific performance, injunctive relief or by any other means
available to the Company or the other Securityholders at law or in equity.

Section 6.05 Dispute Resolution.

     (a)  Senior Officers to Resolve. 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)  Mediation Followed by Binding Arbitration. 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
          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

Securityholder Agreement

                                                                   Page 16 of 19
<PAGE>

          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.

Section 6.06 Notices. All notices and other communications pursuant to this
Agreement shall be in writing and deemed to be sufficient if contained in a
written instrument and shall be deemed given if delivered personally,
telecopied, sent by a nationally-recognized overnight courier or mailed by
registered or certified mail (return receipt requested), postage prepaid, to the
parties at the following addresses (or at such other address for a party as
shall be specified by like notice to the other parties hereto):

IF TO THE COMPANY:                      IF TO AMERALIA

Natural Soda Holdings, Inc.             AmerAlia, Inc.
20971 E. Smoky Hill Rd                  20971 E. Smoky Hill Rd
Centennial, CO 80015                    Centennial, CO 80015
Attn: President                         Attn: President
Tel: (720) 876-2373                     Tel: (720) 876-2373
Fax: (720) 876-2374                     Fax: (720) 876-2374

IF TO SUBSIDIARY:

Natural Soda, Inc.
20971 E. Smoky Hill Rd
Centennial, CO 80015
Attn: President
Tel: (720) 876-2373
Fax: (720) 876-2374

WITH A COPY (WHICH DOES NOT CONSTITUTE NOTICE) TO:

Holland & Hart, LLP
555 E. Seventeenth Street, Suite 2700
Denver, CO 80123
Attn: Sandra P. Velasco, Esq.
Tel: (303) 295-8000
Fax: (720) 295-8261

If to the Sentient Entities (or either of them):

                           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

Securityholder Agreement

                                                                   Page 17 of 19
<PAGE>

                           Attn: Kim McLaughlin
                           Tel: (345) 946 0933
                           Fax: (345) 946 0921

Sentient (Aust) Pty Limited             Sentient Asset Management Canada Limited
Trustee of Sentient Global Resources
Trust No. 1
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

WITH A COPY (WHICH DOES NOT CONSTITUTE NOTICE) TO:

Quinn & Brooks LLP
2803 Valley Way
Houston, TX 77339
Attn: Robert J. Quinn, Esq.
Tel: (281) 359-2661
Fax: (281) 359-2669

If any party sends any notice to the Company, it will also send a copy of such
notice to the other parties in order for such notice to be effective.

Section 6.07 Governing Law. This Agreement shall be governed by the laws of the
State of Colorado, without reference to rules of conflicts of law.

Section 6.08 Entire Agreement. This Agreement contains the entire understanding
of the parties in respect of the subject matter hereof, and supersedes all prior
negotiations and understandings between the parties with respect to such subject
matter.

Section 6.09 Effect of Headings. The section headings are for convenience only
and shall not affect the construction or interpretation of this Agreement.

Section 6.10 Counterparts. This Agreement may be executed in several
counterparts, each of which shall be an original, but all of which together
shall constitute one and the same agreement.

Section 6.11 Authority. Each of the signatories on behalf of the Parties hereto
represents and warrants to each of the other parties that he has executed this
Agreement on behalf of the party for whom such signature appears with all
necessary corporate, partnership, trust, or other authority (as the case may
be).

Securityholder Agreement

                                                                   Page 18 of 19
<PAGE>

         IN WITNESS WHEREOF, the parties have caused this Agreement to be duly
executed on the day and year first above written.

NATURAL SODA HOLDINGS, INC.                                  AMERALIA, INC.

By: /s/ BILL H GUNN                              By: /s/ BILL H GUNN
   -------------------------                        --------------------------
     Bill H Gunn, Chairman                           Bill H Gunn, Chairman

NATURAL SODA, INC.

By: /s/ BILL H GUNN
   -------------------------
     Bill H Gunn, Chairman

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

                                         By /s/ PETER CASSIDY
By: /s/ MARK A. JACKSON                     -------------------------------
    ---------------------------             Peter Cassidy, Director
    Mark A. Jackson, Director

                            SECURITYHOLDER AGREEMENT

                                 Page 19 of 19

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