Document:

Exhibit 10.43 MOU between AALA and Series C security holders

    
      EXHIBIT
        10.43

        Memorandum
          of Understanding

        11
          September 2006

        

        AmerAlia,
          Inc. 

        The
          Jacqueline B. Mars Trust 

        Robert
          C. Woolard & Charles D. O’Kieffe

        

        Pursuant
          to our recent discussion and negotiation regarding the proposed Recapitalization
          of Natural Soda Holdings, Inc. (“NSHI”) and its associated companies, Natural
          Soda, Inc. and AmerAlia, Inc. (“NSI” and “AmerAlia”), we wish to memorialize the
          key points we have agreed to date so as to demonstrate to the Sentient
          entities
          our level of commitment and intent to finalize the recapitalization of
          NSHI and
          related companies as set out below.

        

        Preamble

        

        
          	 	
                  1)

                	
                  Sentient
                    has agreed to convert all of (i) its Series A debentures and
                    all accrued
                    interest thereon, (ii) its Series B1 and B2 debentures and all
                    accrued
                    interest thereon, (iii) its entitlement to contingent interest,
                    and (iv)
                    the outstanding $1,000,000 working capital loan provided to NSI
                    and
                    interest thereon, into an approximate 49% direct equity interest
                    in
                    NSI.

                

        

        

        
          	 	
                  2)

                	
                  In
                    the event of a sale of NSI, to protect Sentient from an unfavorable
                    sale
                    price, Sentient will be granted an option to increase its share
                    of the
                    sale proceeds at the time of sale. This option will be capped
                    at the
                    lesser of (a) 66% of the sale proceeds or (b) a maximum additional
                    realized value to Sentient of $18,000,000 as a result of the
                    sale. By way
                    of illustration, the Sentient option would result in an increase
                    of
                    Sentient’s share of proceeds to 66% only if a sale price were negotiated
                    at or below approximately $105,900,000 since this is the number
                    at which
                    Sentient’s 66% has its maximum $18 MM value.  Any sale price above
                    this level caps the value of Sentient’s increased share of proceeds at $18
                    MM. 

                

        

        

        
          	 	
                  3)

                	
                  AmerAlia
                    is requesting that Sentient redeem the principal amount of the
                    NSHI Series
                    A Debenture held by AmerAlia. As an incentive to Sentient to
                    provide this
                    additional funding, the $18,000,000 cap described in item 2 above
                    may be
                    increased to $22,000,000. 

                

        

        

        
          	 	
                  4)

                	
                  To
                    protect all shareholders of NSI, both NSHI and Sentient will
                    have drag
                    along and tag along rights in similar form to those rights defined
                    in the
                    Securityholder agreement between the Sentient entities, NSHI
                    and AmerAlia
                    and described in AmerAlia’s SEC filings - included here as Exhibit
                    A.

                

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        
          	 	
                  5)

                	
                  An
                    integral part of the recapitalization plan is the replacement
                    of the BLM
                    land reclamation bonds currently guaranteed by Mars Trust. This
                    is an
                    obligation of NSI even though the Mars Trust guaranty is currently
                    secured
                    by a Series A Debenture issued by NSHI to NSI.

                

        

        

        
          	 	
                  6)

                	
                  NSHI
                    will be the sole shareholder of all NSI shares not held by
                    Sentient.

                

        

        

        
          	 	
                  7)

                	
                  The
                    value of the NSHI holding in NSI must be determined and also
                    the resulting
                    value of equity in NSHI. Sentient has placed a value of approximately
                    $60,000,000 on its exchange of debt for a 49% interest in NSI
                    (see item 1
                    above). This implies an overall value slightly in excess of $120,000,000
                    for all of NSI. After the exchange of the Sentient obligations
                    for equity
                    in NSI, it is expected that there will not be any remaining inter-company
                    loans between NSHI and NSI. Also, that the net balance of any
                    remaining
                    loan accounts between AmerAlia and NSHI will not be materially
                    significant. Consequently, for purposes of this recapitalization
                    an
                    overall value of NSI shall be deemed to be $100,000,000 and NSHI’s share
                    of this value shall be deemed to be
                    $51,000,000.

                

        

        

        
          	 	
                  8)

                	
                  NSHI
                    currently has 420,000 shares of common stock issued and
                    outstanding.

                

        

        

        

        General
          Statements of Agreement: 

        

        
          	 	
                  9)

                	
                  The
                    Jacqueline B. Mars Trust (the “Trust”) has advanced funds to AmerAlia and
                    guaranteed a loan from the Bank of America as
                    follows:

                

        

        
          	 	
                  ·

                	
                  Promissory
                    Note dated March 1, 2004 for
                    $469,628;

                

        

        
          	 	
                  ·

                	
                  A
                    number of additional promissory notes issued under a guaranty
                    agreement;

                

        

        
          	 	
                  ·

                	
                  Advances
                    for travel and legal fees of approximately
                    $16,800;

                

        

        
          	 	
                  ·

                	
                  Loan
                    from the Bank of America for
                    $9,921,583;

                

        

        
          	 	
                  ·

                	
                  The
                    estimated total amount of these obligations due to the Trust
                    and the Bank
                    of America together with accrued interest, collectively known
                    as “the
                    Trust Debts”, as at September 30, 2006 will be approximately
                    $11,930,000.

                

        

        
          	 	
                  ·

                	
                  The
                    Trust has agreed to repay the Bank of America loan and convert
                    the Trust
                    Debts into a direct common equity interest in NSHI. The replacement
                    of the
                    BLM bonding currently guaranteed by the Trust is a pre-condition
                    to the
                    conversion of the Trust Debts into NSHI common stock.
                    

                

        

        

        
          	 	
                  10)

                	
                  The
                    Trust shall retain its common shares representing approximately
                    46% of
                    AmerAlia and agree to a waiver of its voting rights on these
                    shares for
                    some time mutually agreed by the Trust and AmerAlia.
                    

                

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        
          	 	
                  11)

                	
                  Messrs
                    Woolard and O’Kieffe hold Series C Debenture Secured Promissory notes and
                    an additional unsecured promissory note, also issued by AmerAlia,
                    which
                    have a total balance owing of principal and accrued interest
                    estimated to
                    be approximately $2,739,000 as at September 30, 2006. These obligations
                    are collectively known as the “W/OK notes”. Woolard and O’Kieffe have
                    agreed to convert their W/OK notes into NSHI common
                    stock.

                

        

        

        
          	 	
                  12)

                	
                  AmerAlia
                    holds NSHI Series A Preferred stock with a liquidation value
                    estimated to
                    be $6,355,000 as at September 30, 2006. AmerAlia agrees to hold
                    a meeting
                    of NSHI stockholders to authorize an amendment to NSHI’s Articles of
                    Incorporation to enable the conversion of the preferred stock
                    into common
                    stock on the same basis as the Trust Debts and the W/OK
                    notes.

                

        

        

        
          	 	
                  13)

                	
                  NSHI
                    has issued Series A Debentures for $4,375,000 to AmerAlia and
                    accrued
                    interest thereon is estimated to be approximately $751,000 as
                    at September
                    30, 2006. AmerAlia has used its NSHI Series A Debenture (“Series A
                    Debentures”) to secure promissory notes (known as “Series A Notes”) issued
                    to various investors. 

                

        

        

        
          	 	
                  14)

                	
                  Should
                    Sentient not fund the redemption of the remaining Series A Debentures
                    due
                    to AmerAlia in exchange for an increase in the $18 MM as proposed
                    in item
                    2. above, AmerAlia will convert the Series A Debenture and its
                    accrued
                    interest into NSHI common stock on the same basis as the Trust
                    Debts and
                    W/OK notes and raise new capital to fund the repayment of its
                    Series A
                    Notes.

                

        

        

        
          	 	
                  15)

                	
                  AmerAlia
                    will assume all responsibility to fund the repayment of NSHI’s current
                    creditors for past due amounts still
                    outstanding.

                

        

        

        
          	 	
                  16)

                	
                  Discrete
                    share certificates of NSHI’s common stock reflecting each party’s direct
                    ownership interest will be held by AmerAlia, the Trust, and Robert
                    C.
                    Woolard/Charles D. O’Kieffe and a definitive shareholder agreement will be
                    executed by all shareholders. The shareholder agreement shall
                    determine
                    the conduct of the parties and the management of NSHI concerning,
                    amongst
                    other things:

                

        

        
          	 	
                  ·

                	
                  The
                    appointment of a Board of Directors representative of the relative
                    ownership of the company held by each
                    shareholder.

                

        

        
          	 	
                  ·

                	
                  The
                    distribution of free cash flow to shareholders whether by dividends
                    or
                    from funds of any other nature representing profits paid by NSI
                    to
                    NSHI.

                

        

        
          	 	
                  ·

                	
                  The
                    obligations of shareholders to contribute additional capital
                    to NSHI to
                    support NSHI’s share of any additional capital investment in NSI.
                    

                

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        
          	 	
                  ·

                	
                  NSHI
                    shares must be convertible into NSI shares at some future date
                    upon the
                    occurrence of specific triggering events. These events are the
                    bankruptcy
                    of AmerAlia or the failure of NSI to remit its free cash flow
                    to its
                    shareholders according to criteria still to be determined.
                    

                

        

        
          	 	
                  ·

                	
                  AmerAlia’s
                    first right of refusal to acquire NSHI shares offered for sale
                    by other
                    shareholders.

                

        

        

        
          	 	
                  17)

                	
                  NSI
                    shall execute a formal management contract with AmerAlia and
                    AmerAlia
                    shall be compensated for these services directly by NSI. Such
                    funds shall
                    not be flowed through NSHI nor be subject to any claim by NSHI
                    shareholders.

                

        

        

        
          	 	
                  18)

                	
                  The
                    resulting equity value of NSHI must be apportioned to the three
                    shareholder entities consisting of AmerAlia, the Trust, and
                    Woolard/O’Kieffe by some equitable and justifiable means.
                    

                

        

        

        
          	 	
                  19)

                	
                  NSI
                    and NSHI may both have to be re-incorporated as LLCs to provide
                    workable
                    tax treatment of funds flowing from NSI operations to Sentient
                    and the
                    NSHI shareholders. This issue shall be left to the company taxation
                    advisors for final determination.

                

        

        

        
          	 	
                  20)

                	
                  All
                    parties to this Memorandum acknowledge that there may be final
                    fine tuning
                    of the dollars and percentages contained herein based upon their
                    determination as of September 30, 2006; and once determined shall
                    form the
                    basis for calculating the number of shares of common stock issued
                    in
                    satisfaction of those obligations.

                

        

        

         

        Apportionment
          of shares within NSHI: 

        

        21) 
The
          method of apportioning the shares of ownership in NSHI shall be such as
          to
          retain dollar for dollar the value of the principal amount and accrued
          interest.
          The allocation of shares to the Trust and Woolard/O’Kieffe shall be based upon
          the percentage that their total principal and accrued interest represents
          of the
          $51,000,000 valuation of the NSHI holdings in NSI. 

        

        22) 
Subject
          to final determination and accruals, the value of the Woolard/O’Kieffe C notes
          and accrued interest will be approximately $2,739,000.

        

        23) 
Subject
          to final determination and accruals, the value of the Trust Debts will
          be
          approximately $11,930,000.

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        24) 
Subject
          to final determination, the liquidation preference of AmerAlia’s preferred stock
          will be approximately $6,355,000.

        

        25) 
The
          Series A Debentures and accrued interest due to AmerAlia will be approximately
          $4,375,000 + 751,000 = $5,126,000.

        

        26) 
Using
          these numbers (once again subject to final adjustment) and the $51 MM valuation,
          the resulting post-recapitalization allocation for the determination of
          the
          ownership of NSHI, assuming all obligations are exchanged for common stock,
          will
          be:

        

        

        
          	 	
                  Estimated

                  obligation

                	
                  Outcome
                    if all converted to common stock

                
	 	
                  #
                    Shares

                	
                  %

                
	
                  Series
                    A Debentures

                	
                  $
                    4,375,000

                	
                  73,885

                	
                  8.6

                
	
                  Series
                    A Interest

                	
                  751,000

                	
                  12,683

                	
                  1.5

                
	
                  Mars
                    Trust 

                	
                  11,930,000

                	
                  201,473

                	
                  23.4

                
	
                  Woolard/O’Kieffe

                	
                  2,739,000

                	
                  46,256

                	
                  5.4

                
	
                  AmerAlia
                    - preferred stock

                	
                  6,355,000

                	
                  106,987

                	
                  12.4

                
	
                  AmerAlia
                    current shareholding

                	
                  24,850,000

                	
                  420,000

                	
                  45.9

                
	 	
                  $51,000,000

                	
                  861,283

                	
                  100.0

                

        

        

        

                   
          On this basis, AmerAlia’s fully converted shareholding in NSHI (assuming the
          entire conversion of the Series A Debentures and interest) will be 613,555
          shares equal to 71.2% of the company.

        

        The
          Trust’s continuing 46% interest in AmerAlia (its common share holding)
          translates to a 32.8% indirect interest in NSHI (46% x 71.2 %). When combined
          with its direct interest of 23.4%, its total interest in NSHI (both direct
          and
          indirect combined) will be 56.2%. 

        

        On
          this
          basis, NSHI will issue a further 441,283 shares of its common stock at
          $59.214
          per share.

         

        27)  However,
          if NSI is sold and the sale proceeds are less than the threshold of $105,900,000
          identified in item 2 above, the share of sale proceeds attributable to
          the Trust
          and Woolard/O‘Kieffe on the basis of the percentage ownership shown in the table
          in item 26 above will be determined as though no additional share of the
          proceeds is payable to Sentient. 

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

                  
          The parties identified below hereby acknowledge by signature below their
          agreement with the provisions of this Memorandum of Understanding as set
          forth
          above:

        

        For
          AmerAlia, Inc.:

        

        

        /s/
          Bill H Gunn________________

        Bill
          H.
          Gunn

        

        

        

        For
          the
          Jacqueline B. Mars Trust:

        

        

        /s/
          Roderick M Hills____________

        Roderick
          M. Hills

        

        

        

        For
          Robert C. Woolard:

        

        

        /s/
          Robert C Woolard_________

        Robert
          C.
          Woolard

        

        

        

        For
          Charles D. O’Kieffe:

        

        

        /s/
          Charles D O’Kieffe__________

        Charles
          D. O’Kieffe

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        EXHIBIT
          A

        

        Drag
          Along & Tag Along Rights

        

        The
          drag
          along and tag along rights apply to the Sentient Entities and to AmerAlia
          if the
          Sentient Entities own NSI common stock and the remaining Series B1 Debentures
          have been repaid. They are defined in the Securityholder Agreement.

        

        Under
          the
          drag along rights, if the Sentient Entities wish 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 shares to AmerAlia naming a price and
          the terms
          of purchase. If AmerAlia does not elect irrevocably and in writing to purchase
          the shares within 30 days, the Sentient Entities may complete the sale
          of the
          shares to a third party at the same price and on the same terms within
          90 days
          of AmerAlia’s receipt of the written offer. The Sentient Entities may further
          require that AmerAlia or NSHI sell all the shares of NSI common stock they
          own
          to the third party on the same terms. If the AmerAlia shareholders are
          required
          to approve the sale of the NSI common stock by AmerAlia and fail to do
          so, then
          there is a mechanism whereby the Sentient Entities can gain a majority
          of the
          board and a majority of the common stock of NSHI. Thereafter, the Sentient
          Entities shall have 90 days to complete the sale of the shares to the third
          party. If the Sentient Entities are unable to complete the sale within
          that
          time, the Sentient Entities will rescind the actions that gave them
          control.

        

        Alternatively,
          under the tag along rights, if AmerAlia wishes to sell the NSI shares of
          common
          stock it owns, AmerAlia shall make a written offer to the Sentient Entities
          naming a price and terms. If the Sentient Entities do not elect irrevocably
          and
          in writing to purchase the shares within 30 days, AmerAlia may complete
          the sale
          of the shares to a third party at the same price and on the same terms
          within 90
          days of the Sentient Entities receipt of the written offer, provided that
          the
          Sentient Entities may require the purchaser to purchase its shares at the
          same
          price and on the same terms. If the purchaser will not buy the shares held
          by
          the Sentient Entities, AmerAlia may not sell its shares unless AmerAlia
          buys the
          Sentient Entities shares on the same terms and conditions.Account Purchase Agreement with Wells Fargo Bank NA

    
      

    

    

      EXHIBIT
        10.44

      

      ACCOUNT
        PURCHASE AGREEMENT

      

      This
        Agreement is dated as of Nov.
        3,
        2005
        between Wells Fargo Bank, National Association, acting through its
        Wells
        Fargo Business Credit operating division ("WFBC"), and Natural Soda, Inc.
        ("Customer"). The Customer and WFBC
        agree as follows:

      

      ARTICLE
        I

      Purpose
        of Agreement

      

      1.01 Purpose
        of Agreement. The
        Customer desires to sell and assign to WFBC acceptable accounts receivable
        and
WFBC
        desires to purchase such accounts on the terms and conditions set forth herein.
        The purpose of this Agreement is commercial
        in nature and not for household, family and/or personal use. This Agreement
        sets
        forth the terms and conditions
        on which WFBC will consider purchasing accounts receivable from the
        Customer.

      

      ARTICLE
        II

      Definitions

      

      2.01 "Account"
        means
        any
        right of payment of the net amount for goods sold, or leased and delivered
        or
        services rendered
        in the ordinary course of Customer's business which is not evidenced by an
        instrument or chattel paper.

      

      2.02 "Acceptable
        Account" means
        an
        Account, in an amount not to be less than $100, acceptable to WFBC, which
        conforms
        to the warranties and terms set forth herein, net of any credits or allowances
        of any nature and is not an Unacceptable
        Account as defined below.

      

      2.03 "Account
        Debtor" means
        Customer's customer or any other person or entity owing money to the Customer
        with respect
        to the Account.

      

      2.04 "Account
        Debtor Dispute" means
        a
        claim by Account Debtor against Customer, of any kind whatsoever, that reduces
        or may reduce the amount collectible from Account Debtor by WFBC which arises
        at
        anytime, whether before or after
        signing of this Agreement or the purchase of any Account.

      

      2.05 "Collateral"
        means
        the
        intangible or tangible property given as security to WFBC by Customer for
        any
obligations
        and liabilities of Customer to WFBC under this Agreement.

      

      2.06 "Collected
        Reserve Account" means
        the
        account established by WFBC for Customer to which from time to time
        credits will be made, debits taken and disbursements made in accordance with
        this Agreement. Provided there is no Event of Default hereunder, or any event
        which with the passage of time or notice would be an Event of Default, any
        available
        balance held in the Collected Reserve Account shall be released to the Customer
        on a weekly basis. Any fee, charge
        or
        other obligation of the Customer under this Agreement may be charged against
        this account in WFBC's sole discretion.

      

      2.07 "Customer"
        means
        the
        seller and assignor of the Accounts.

      

      2.08 "Event
        of Default" shall
        mean the existence of a default pursuant to Article VII hereunder, or a default
        under any
        documents given to WFBC in connection with this Agreement.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      2.09 "Initial
        Payment"
        shall
        mean with respect to a given Account an amount equal to the gross face amount
        of
        such Account less stated trade discounts offered by the Customer to the Account
        Debtor less ten (10%) percent. This percentage
        may be adjusted by WFBC at any time at WFBC's sole discretion.

      

      2.10 "Minimum
        Fee"
        shall
        mean the minimum fee paid per month by the Customer as stated in Section
        6.06
below.

      

      2.11 "Net
        Purchase Price"
        for any
        Account means an amount equal to the gross face amount of such Account less
        WFBC's
        Discount and other charges with respect to such Account and less any amount
        of
        any trade discounts, credits or allowances,
        or any other reductions or adjustments to such Account taken by the Account
        Debtor.

      

      2.12 "Origination
        Fee"
        shall
        mean the fee payable on closing of this Agreement, and
        on each renewal of this Agreement, as
        set
        forth in Section 6.06 below.

      

      2.13 "Part
        Payment"
        for any
        Account means any payment made by WFBC to the Customer with respect to such
        Account which is less than the full Net Purchase Price as more fully described
        in Article III below.

      

      2.14 "Repurchase
        Price"
        for any
        Account means the Net Purchase Price less any amounts collected from the
        Account
        Debtor on the Account plus all fees, costs or expenses associated with the
        repurchase or collection of such Account. In any event where repurchase is
        required under this Agreement, WFBC, at its discretion, may charge the
Repurchase
        Price to Customer's Collected Reserve Account which may create a deficit
        balance
        under Section 3.06 below.

      

      2.15 "Unacceptable
        Account"
        shall
        mean Accounts which are not acceptable in WFBC's sole discretion including
        but
        not
        limited to the following Accounts:

      

      2.15(a)
        Accounts
        owed by any unit of government, whether foreign or domestic (provided, however,
        that there shall be included in Acceptable Accounts that portion of Accounts
        owed by such units of government for which the Customer has provided evidence
        satisfactory to WFBC that (i) WFBC has a first priority perfected security
        interest and (ii) such Accounts may be enforced by WFBC directly against
        such
        unit of government under all applicable
        laws);

      2.15(b)
        Accounts
        owed by an Account Debtor located outside the United States which are not
        (i)
        backed by a bank letter of credit naming WFBC as beneficiary or assigned
        to
        WFBC, in WFBC's possession and acceptable to
        WFBC
        in all respects, in its sole discretion, (ii) covered by a foreign receivables
        insurance policy acceptable to WFBC
        in
        its sole discretion; 

      2.15(c)
        Accounts
        owed by an Account Debtor that is insolvent, the subject of bankruptcy
        proceedings or have gone out of business;

      2.15(d)
        Accounts
        owed by a shareholder, subsidiary, affiliate, officer or employee of the
        Customer;

      2.15(e)
        Accounts
        not subject to a duly perfected security interest in WFBC's favor or which
        are
        subject to any lien,
        security interest or claim in favor of any Person other than WFBC including
        without limitation any payment or performance bond;

      2.15(f)
        Accounts
        that have been restructured, extended, amended or modified;

      2.15(g)
        That
        portion of Accounts that constitutes advertising, finance charges, service
        charges or sales or excise taxes;

      2.15(h)
        Accounts
        that have been invoiced, paid or partially paid in advance of the full delivery
        and acceptance of goods or the performance and acceptance of services or
        in
        advance of the submission of the Account to WFBC.

      2.15(i)
        Accounts, or portions thereof, that fail to conform to the representation
        and
        warranties contained herein or
        are
        otherwise deemed unacceptable by WFBC in its sole discretion.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      2.16 "WFBC
        Discount"
        means
        the amount to be paid by the Customer according to the following
        schedule:

      

      
        	
                Days

              	
                Rate

              
	
                (for
                  payment

                of
                  Account)

              	 
	
                1-10

              	
                1.0%
                  of the gross face amount of each Account purchased by
                  WFBC.

              
	
                +11

              	
                .07
                  of 1% additionally per day until the Account is paid in
                  full.

              

      

      

      If
        any
        Event of Default exists, as defined below, this discount may increase in
        an
        amount to be determined by WFBC at its sole discretion. WFBC may, upon prior
        written notice to Customer, change the amount of any fee or
        charge
        at its sole discretion or if WFBC's cost of funds increases for any reason.
        Such
        change shall be effective
        upon delivery of the notice.

      

      ARTICLE
        III

      Purchase
        of Accounts

      

      3.01 Pursuant
        to the terms herein, Customer hereby sells, transfers and assigns to WFBC,
        its
        successors and assigns, as
        absolute owner, and WFBC hereby purchases and accepts from the Customer all
        of
        the Customer's right, title and interest in and to:

      

      3.01(a)
        all of
        the Customer's Accounts together with all rights of action accrued or to
        accrue
        thereon, including, without
        limitation, full power to collect, sue for, compromise, assign, in whole
        or in
        part, or in any other manner enforce
        collection thereof in Customer's name or otherwise; and

      3.0l(b)
        all
        right, title and interest of the Customer in and to the books and records
        evidencing or relating to the Accounts, all deposits, or other security for
        the
        obligation of any person under or relating to the Accounts, all goods relating
        to, or which by sale have resulted in, the Accounts, including goods returned
        by
        any Account Debtor, debtor or obligor in any way obligated on or in connection
        with the Account including, without limitation, the Account Debtor, all rights
        of stoppage in transit, replevin, repossession and reclamation and all other
        rights of action of an unpaid vendor or lienor; and

      3.01(c)
        proceeds
        of the foregoing in any form.

      

      3.02 Approval:
        WFBC
        shall not purchase an Account unless such Account is first submitted to WFBC
        by
        Customer for approval. WFBC is not obligated to buy any Account from a Customer
        that WFBC does not deem acceptable in its sole
        discretion.

      

      3.03 Purchase:
        Upon
        approval and acceptance by WFBC of an Account for the assignment and sale
        of an
        Account to WFBC, WFBC shall purchase and Customer shall assign and sell to
        WFBC
        such Account.

      

      3.04 Purchase
        Price:
        As
        consideration for the assignment and sale of an Account to WFBC, WFBC shall
        pay
        to the
        Customer the Net Purchase Price for such Account on the terms and conditions
        as
        stated herein.

      

      3.05 Payment
        of Purchase Price:
        If no
        Default exists hereunder, WFBC shall pay for each Account purchased hereunder
        the Net Purchase Price for such Account to Customer as follows:

      

      3.05(a)
        Upon
        assignment or sale of an Account to WFBC, and receipt of all documents and
        forms
        described in Section
        3.07 below and upon fulfillment of all terms precedent to such sale or
        assignment as more fully described below,
        WFBC shall pay to the Customer, or advance to the Collected Reserve Account
        as
        appropriate, the Initial Payment with respect to such Account.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      3.05(b)
        After
        collection of an Account by WFBC, WFBC shall credit the Customer's Collected
        Reserve Account
        with the amount collected on the Account less: (i) the Initial Payment, (ii)
        Part Payment(s), and (iii) any fees,
        expenses or charges owed to WFBC as more fully described herein.

      3.05(c)
        Upon
        an
        Event of Default hereunder (or an event which with the passage of time or
        notice
        would become an
        Event
        of Default), WFBC may hold any balance in the Collected Reserve Account as
        Collateral for any obligations
        of the Customer to WFBC and WFBC may charge any such obligations against
        the
        Collected Reserve Account
        in its sole discretion.

      3.05(d)
        In
        the
        event WFBC receives payment on an Account which has not been purchased, such
        payment will be credited to the Customer's Collected Reserve Account and
        released in accordance with this Agreement.

      

      3.06 Reporting
        and Statement of Account:
        On a
        weekly basis, or as otherwise determined by WFBC at its sole discretion,
        WFBC shall prepare, and make available to the Customer, an accounting of
        the
        purchases, collections, and amounts
        credited to and/or charged against the Collected Reserve Account during that
        week or other period. Should such
        a
        statement of account indicate a deficit balance, such balance shall be due
        and
        payable and the Customer shall immediately pay to WFBC the amount of such
        deficit plus accrued interest on such deficit balance. Interest shall accrue
        on
        any deficit balance at the annual rate of eighteen percent (18%), calculated
        on
        a daily basis, not to exceed the applicable
        legal limit, until such deficit is paid in full.

      

      3.07 Required
        Forms:
        When
        Customer offers Accounts to WFBC for sale, WFBC shall receive (a) an assignment
        of Accounts,
        in a form satisfactory to WFBC and signed by an authorized representative
        of
        Customer, (b) an original invoice or such other document acceptable to WFBC
        in
        its sole discretion, (c) a copy of the Bill of Lading, (d) proof of delivery,
        (e) contract, purchase order, or purchase order number which corresponds
        with
        such invoice(s), as appropriate to the business of Customer, (f) notification
        of
        assignment and waiver of offset signed by the Account Debtor in a form
        acceptable to WFBC in its sole discretion and (g) and any other document
        which
        WFBC may require.

      

      3.08 Notification:
        Prior to
        purchasing any Accounts, WFBC will notify all Account Debtors of the assignment
        of Accounts
        and instruct the Account Debtor to make payments directly to WFBC.

      

      3.09 Notation
        of Assignment:
        Customer
        shall make a notation on each original invoice (or the electronic equivalent
        of
        an
        invoice) or other such documentation accepted by WFBC for each Account which
        indicates that the Account has been assigned and/or sold to WFBC with the
        following language:

      

      This
        invoice has been assigned to

      and
        is
        payable to:

      Wells
        Fargo Business Credit, Inc.

      Dept.
        1494

      Denver,
        Colorado 80291-1494

      For
        information call 303/433-9300

      

      In
        the
        event any invoice (or the electronic equivalent of an invoice) is sent or
        transmitted to any Account Debtor without the
        required notation, a fee equal to 2.5% of the face amount of such invoice
        shall
        be assessed.

      

      3.10 Sole
        Property:
        Once
        WFBC has purchased an Account, any and all payments from the Account Debtor
        as
        to that Account are the sole property of WFBC.

      

      3.12 Book
        Entry:
        Customer
        shall, immediately upon sale of Accounts to WFBC, make proper entries on
        its
        books and
        records disclosing the absolute sale of said Accounts to WFBC, including
        the
        proper inclusion of the language stated in Section 3.09 above, on said books
        and
        records and other documents as so directed by WFBC.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      ARTICLE
        IV

      Customer's
        Representations, Warranties and Covenants

      

      4.01 Representations
        and Warranties. Customer
        hereby represents and warrants and as follows:

      

      4.01
        (a) Customer
        is properly licensed, qualified and authorized to operate the business of
        Natural Soda, Inc. under
        the
        trade name(s) of and Customer's trade name(s) have been properly filed and
        published as required by applicable law. Customer, and the persons executing
        this document, are duly authorized to execute and deliver this
        Agreement and all other documents required to be executed and delivered
        hereunder.

      4.01
        (b) Customer
        is solvent, is not a Debtor under the United States Bankruptcy Code or under
        the
        direction of a receiver, and Customer has made and shall continue to make
        timely
        payment on deposit of any tax required to be deducted
        and withheld by Customer from the wages of any of its employees.

      4.01
        (c) Customer
        is, at the time of purchase of each Account by WFBC, the lawful owner of
        and has
        good and undisputed
        title to such Account. Each Account, at the time of purchase is free from
        any
        liens, mortgages, restrictions or encumbrances. Each Account offered for
        sale to
        WFBC is an Acceptable Account as defined in Section
        2.02 above.

      4.01
        (d) Each
        Account Debtor's business is solvent to the best of Customer's information
        and
        knowledge at the time
        of
        this Agreement and at the time each Account is presented to WFBC for
        purchase.

      4.01
        (e) Each
        Account offered for sale to WFBC is an accurate and undisputed statement
        of
        indebtedness owed by Account Debtor to Customer for a certain sum which is
        due
        and payable in 30 days or less, or within such time as is agreed to in writing
        by WFBC and Customer, is for a bona fide sale, delivery and acceptance of
        merchandise or performance of services which have been received and finally
        accepted by the Account Debtor. Customer has all rights to transfer or sell
        such
        Accounts to WFBC and such Accounts are payable by Account Debtor without
        offset,
        deduction or counterclaim.

      4.01
        (f) Customer
        does not own, control or exercise dominion over, in any way whatsoever, the
        Account Debtor or the business of any Account Debtor for whom Accounts are
        to be
        sold by Customer to WFBC.

      4.01
        (g) All
        financial records, statements, books or other documents shown to WFBC by
        Customer at anytime, either before or after the signing of this Agreement
        are
        true and accurate.

      4.01
        (h) Customer
        has not transferred, pledged or granted a security interest in Customer's
        Accounts or other personal
        property to any other party which Customer has not fully disclosed in writing
        to
        WFBC.

      4.01
        (i) There
        is
        no action, suit or proceeding at law or in equity or by or before any
        governmental instrumentality or other agency now pending, or to the knowledge
        of
        Customer, threatened against or affecting Customer, which if adversely
        determined, would have a material adverse effect on the business, operations,
        property, assets or condition, financial or otherwise, of Customer.

      4.01
        (j)
        The
        execution and performance by Customer of the terms and provisions of this
        Agreement and the execution and delivery of any other documents required
        to be
        executed and delivered hereunder have been duly authorized by all requisite
        company action, and neither the execution nor the performance of this Agreement
        or any
        other
        documents required to be delivered hereunder, will violate any provision
        of law,
        any order of any court or
        other
        agency of government, the governing documents of Customer, or any agreement
        or
        other instrument to which Customer is a party, or by which Customer is bound,
        or
        be in conflict with, result in breach of, or constitute (with due notice
        or
        lapse of time or both) a default under, or result in the creation or imposition
        of any lien, charge or encumbrance of any nature whatsoever upon any of the
        property or assets of Customer, pursuant to
        any
        such agreement or instrument, except as provided hereunder. Customer agrees
        that
        it will execute and perform
        all terms hereunder.

      

      4.02 Negative
        Covenants. Customer
        agrees as follows:

      

      4.02
        (a)
        Customer
        will not under any circumstances or in any manner whatsoever, interfere with
        any
        of WFBC's rights
        under this Agreement.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      4.02
        (b)
        For the
        duration of this Agreement and for any period thereafter for as long as any
        obligation to repurchase
        or indebtedness whatsoever remains owing by Customer to WFBC, Customer will
        not
        sell or assign Accounts except to WFBC.

      4.02
        (c)
        Customer
        shall not pledge, transfer or grant a security interest in any personal property
        or Accounts of Customer
        nor shall Customer consent to the transfer, pledge or grant a security interest
        in or the placement of any lien or encumbrance, by any other party on any
        personal property or Accounts belonging to the Customer for the term of this
        Agreement and for as long as Customer may be required to repurchase any Account
        or is indebted to WFBC
        hereunder without the written consent of WFBC. Customer shall provide written
        notice to WFBC within five business days of Customer obtaining any knowledge,
        from any source, of the assertion, filing, recording or perfection by any
        means,
        of any non-consensual lien, claim or encumbrance against the property of
        Customer. 4.02 (d) Customer will not change or modify the terms of the original
        invoice or agreement with the Account Debtor or the order of payment on Accounts
        sold to WFBC unless WFBC first consents to such change or modification in
        writing.

      4.02
        (e)
        Customer
        shall not be involved in a material dispute of any kind with an Account Debtor,
        regardless of validity,
        during the term of this Agreement.

      4.02
        (f) Customer
        shall not breach any warranties or promises in this Agreement with regard
        to any
        unpaid Account or Account Debtor from whom payment on any such Account is
        due.

      4.02
        (g)
        Customer
        shall not intentionally contribute to, or aggravate any Credit Problem of
        any
        Account Debtor.

      

      4.03 Affirmative
        Covenants.
        Customer
        agrees as follows:

      

      4.03
        (a)
        With
        respect to misdirected payments, whenever any payment on any Account comes
        into
        Customer's possession, Customer shall hold such payment in trust and
        safekeeping, as the property of WFBC, and immediately turn over to WFBC such
        payment in the same form as it was received by Customer to WFBC. Customer
        shall
        pay a misdirected payment fee in the amount of fifteen percent (15%) of the
        amount of any payment on account of a Purchased Account which has been received
        by Customer and not delivered in kind to WFBC on the next business day following
        the date of receipt by Customer. Further, Customer shall segregate and
        hold
        in trust and safekeeping, as the property of WFBC, and immediately turn over
        to
        WFBC, any goods or inventory returned to, reclaimed or repossessed by the
        Customer which are covered by an Account purchased by WFBC.

      4.03
        (b)
        Customer
        will maintain such insurance covering Customer's business and/or the property
        of
        the Account Debtors as is customary and adequate for businesses similar to
        the
        business of Customer in an amount as is sufficient to compensate for reasonably
        foreseeable loss, and promptly pay all premiums with respect to the policies
        covering such insurance. Further, the Customer shall have WFBC named as loss
        payee for such insurance.

      4.03
        (c)
        Customer
        will immediately notify WFBC of any material disputes between Account Debtor
        and
        Customer or the return of any product by Account Debtor to
        Customer.

      4.03
        (d)
        Customer
        will notify WFBC in writing prior to any change in the location of any of
        its
        places of business, including the location of the Customer's inventory or,
        if
        Customer has or intends to acquire any additional
        place of business. Customer will not change its chief executive office or
        the
        office or offices where Customer's books and records concerning Accounts
        are
        kept without prior notice to WFBC.

      4.03
        (e)
        Customer
        will immediately notify WFBC in writing of any proposed change of Customer's
        name, identity,
        legal entity, corporate structure, business dissolution, use of any additional
        trade name, or any proposed change
        in
        any of the officers, principals, partners, shareholders and/or owners of
        Customer and will not effect any such change without WFBC's written
        consent.

      4.03
        (f)
        Customer
        will immediately notify WFBC in writing of the commencement of any legal
        proceeding or service of any legal document affecting the Customer including,
        but not limited to, any judgments, liens, attachments,
        garnishments, complaints, or the filing of a voluntary petition under the
        United
        States Bankruptcy Code,
        if
        any involuntary bankruptcy petition is filed against Customer or if a receiver
        is appointed to manage the property
        of Customer.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      4.03
        (g) At
        least
        once per quarter, or once per month if Customer is in default, Customer will
        furnish to WFBC financial statements, including but not limited to a statement
        of profit and loss and a balance sheet, satisfactory proof of payment and
        compliance with all federal, state and local tax requirements and any other
        information requested
        by WFBC.

      4.03
        (h) Customer
        will immediately notify WFBC of the return of any product by Account Debtor
        to
        Customer.

      4.03
        (i) Customer
        shall immediately notify WFBC of any claim or loss or offset of any kind
        against
        Customer or WFBC asserted by Account Debtor during any time period covered
        by
        this Agreement.

      4.03
        (j) Upon
        the
        occurrence of an Account Debtor Dispute, Customer shall immediately pay to
        WFBC
        the Repurchase Price for any and all Accounts so disputed.

      

      ARTICLE
        V

      Security
        Interest

      

      5.01 Security
        Interest/Collateral: As
        further inducement for WFBC to enter into this Agreement, Customer grants
        to
        WFBC, as collateral for the repayment of any and all obligations and liabilities
        whatsoever of Customer to WFBC, a security
        interest, under the Uniform Commercial Code, in the following described
        property, as defined under the Uniform Commercial
        Code, hereinafter collectively called "Collateral": All presently existing
        or
        hereafter arising, now owned or hereafter
        acquired property including, but not limited to, accounts, general intangibles,
        contract rights, investment property, deposit accounts, the Collected Reserve
        Account established hereunder, inventory, instruments, chattel paper, documents,
        insurance proceeds, and all books and records pertaining to accounts and
        all
        proceeds and products of the foregoing
        property.

      

      5.02 Security
        Documents: Customer
        shall execute all and deliver to WFBC any and all documents and instruments
        as
        WFBC may request from time to time, including, without limitation, UCC financing
        statements or amendments. Customer
        authorizes WFBC to file a financing statement with any appropriate authority
        reflecting its security interest and further
        authorizes WFBC to file other filings including amendments (other than
        amendments adding collateral) or terminations, as WFBC deems
        appropriate.

      

      ARTICLE
        VI Operational
        Provisions

      

      6.01 Repurchase:
        Upon
        the
        occurrence of an Account Debtor Dispute, Customer shall repurchase the Account
        subject to
        the
        Account Debtor Dispute immediately. Regardless of whether there is an Account
        Debtor Dispute, in the event that an
        Account is outstanding 75 days from the invoice date, Customer shall immediately
        repurchase such Account. In either event,
        if
        the Repurchase Price is not paid immediately, WFBC may (but is not required
        to)
        deduct the Repurchase Price from
        funds available to Customer under Article III hereof.

      

      6.02 Power
        of Attorney: In
        order
        to carry out this Agreement and avoid unnecessary notification of Account
        Debtors, Customer
        irrevocably appoints WFBC, or any person designated by WFBC, as its special
        attorney in fact, or agent, with power
        to:

      

      6.02(a)
        strike
        out Customer's address on all invoices delivered to Account Debtors and note
        WFBC's address on all
        invoices.

      6.02(b)
        receive,
        open and dispose of all mail addressed to Customer (including any trade name
        of
        Customer) sent to WFBC's
        address.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      6.02(c)
        endorse
        the name of Customer or Customer's trade name on any checks or other evidences
        of payment that may
        come
        into the possession of WFBC on Accounts , and on any other documents relating
        to
        any of the Accounts or to Collateral.

      6.02(d)
        in
        Customer's name, or otherwise, demand, sue for, collect, and give releases
        for
        any and all monies due to or
        become
        due on Accounts.

      6.02(e)
        compromise,
        prosecute, or defend any action, claim or proceeding as to said
        Accounts.

      6.02(f)
        In the
        Event
        of Default, offer a trade discount to Customer's Account Debtor exclusive
        of
        Customer's normal
        business custom with said Account Debtor.

      6.02(g)
        initiate
        electronic debit or credit entries through the ACH system to Customer's account
        or any other deposit
        account maintained by Customer wherever located.

      6.02(h)
        sign
        Customer's name on any notice of assignment, financing statement, amendment
        to
        any financing statement and on any notices to Account Debtors.

      6.02(i)
        do
        any
        and all things necessary and proper to carry out the purposes intended by
        this
        Agreement.

      

      The
        authority granted to WFBC under this provision shall remain in full force
        and
        effect until all assigned Accounts are
        paid
        in full and any indebtedness of Customer to WFBC is discharged.

      

      6.03 Double
        Payments: Should
        WFBC receive a double payment on an Account or other payment which is not
        identified,
        WFBC shall carry these sums as open items in its accounting and shall return
        any
        double payment to the payor or
        apply
        such unidentified payment pursuant to the terms hereof upon proper
        identification and documentation.

      

      6.04 Hold
        Harmless: Customer
        shall hold WFBC harmless against any Account Debtor ill will arising from
        WFBC's
        collecting or attempting to collect on any Accounts, provided that WFBC acts
        in
        a commercially reasonable manner.

      

      6.05 Taxes:
        Should
        any excise, sale, use or other tax be imposed by any federal, state or local
        authority requiring a deduction
        or withholding from the proceeds of sale of Accounts, or if the Account Debtor
        is authorized to withhold and deduct such tax or levy, then the Customer
        shall
        immediately pay WFBC the amount of the tax or levy so withheld, and the
        Customer shall indemnify and hold WFBC harmless from any loss or expense
        on
        account of such tax.

      

      6.06 Minimum
        and Origination Fee: Customer
        shall pay a Minimum Fee per month in the amount of $6,000 during the term
        of
        this Agreement (and any extension hereof) and Customer shall pay any deficiency
        between the Minimum Fee and the
        fees
        calculated under Section 2.16 hereof on the 15th day of the next calendar
        month.
        Customer shall pay an origination
        fee in the amount of $6,000.00 upon closing of this Agreement, and
        at the anniversary date upon each renewal,
        in
        the
        amount of $6,000.00. WFBC agrees, however, that if, after the expiration
        of the
        first 12 months hereof, Customer
        obtains financing from any Wells Fargo & Co. entity, that is utilized for
        paying off all obligations to WFBC, and
        ceases selling Accounts hereunder, Minimum Fees for the remainder of the
        then
        current term shall be waived from the
        date
        of the full pay off to WFBC or the date selling of Accounts ceases, whichever
        is
        later.

      

      6.07 Reports:
        Except
        as
        provided by Section 3.06, and in the event Customer requests information
        from
        WFBC regarding
        Customer's account hereunder, such requests shall be subject to the schedule
        of
        fees provided by WFBC which schedule may be adjusted by WFBC from time to
        time
        in its discretion.

      

      6.08 WFBC
        Settlement of Accounts: WFBC
        may
        settle any Account Debtor Dispute with any Account Debtor. Such settlement
        does not relieve Customer of any obligation (including any repurchase
        obligation) under this Agreement with respect
        to any Accounts.

      

      6.09 Customer
        Settlement of Accounts: If
        Customer does not fully and promptly settle any Account Debtor Dispute, the
        Customer shall repurchase each Account that is subject to such Account Debtor
        Dispute from WFBC for its Repurchase
        Price.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      6.10 Documents:
        If
        documents submitted by Customer to WFBC for the purchase of any Account are
        materially mistaken,
        fraudulent, materially incorrect or erroneous, or if the Customer fails to
        submit any document required by WFBC
        under this Agreement for the purchase of any Account, then Customer shall
        repurchase such Account and pay the Repurchase
        Price as stated herein.

      

      6.11 Information:
        In the
        event WFBC provides financial information to Customer regarding third parties,
        whether by setting
        credit limits, at the request of Customer or otherwise, Customer understands
        that WFBC is not making any representations or warranties or expressing an
        opinion as to the creditworthiness of any such third party.

      

      ARTICLE
        VII

      Default

      

      7.01 Any
        one
        or more of the following shall be an Event of Default hereunder:

      

      7.01
        (a)
        Customer
        shall fail to pay any indebtedness to WFBC when due or repurchase any Account
        when required
        hereunder.

      7.01
        (b)
        Customer
        shall breach any term, provision, promise, warranty, representation or covenant
        under this Agreement, or under any other agreements, contracts, between Customer
        and WFBC or obligation to WFBC.

      7.01
        (c) The
        appointment of any receiver or trustee of all or a substantial portion of
        the
        assets of Customer.

      7.01
        (d) Customer
        shall become insolvent or unable to pay debts as they mature, shall make
        a
        general assignment for
        the
        benefit of creditors or shall voluntarily file a petition under the United
        States Bankruptcy Code or any similar
        law.

      7.01
        (e)
        Any
        involuntary petition in bankruptcy shall be filed against Customer and is
        not
        dismissed within 60 days or an order for relief is entered against Customer
        under the United States Bankruptcy Code.

      7.01
        (f)
        Any
        levies, attachment, executions, liens or similar process shall be issued
        against
        the Collateral.

      7.01
        (g)
        Any
        financial statements, profit and loss statements, or schedules, other statements
        or documents furnished by Customer to WFBC are false or incorrect in any
        material respect.

      7.01
        (h)
        Any
        documents submitted by Customer to WFBC for the purchase of an Account are
        mistaken, fraudulent,
        incorrect and/or erroneous, or if the Customer fails to submit any document
        required by WFBC under this
        Agreement for the purchase of that Account.

      7.01
        (i)
        Any
        Account Debtor shall assert a claim or offset of any kind against Customer
        or
        WFBC during any time
        period covered by this Agreement.

      7.01
        (j)
        Any
        guarantor of Customer's obligations hereunder is in default under the guaranty
        or if any guarantor withdraws
        or revokes the guaranty as to future sales of Accounts or
        otherwise.

      

      ARTICLE
        VIII

      Remedies

      

      8.01 In
        the
        event of an occurrence of an Event of Default, WFBC may do any one or more
        of
        the following:

      

      8.01
        (a)
        Declare
        immediately due and payable, and to charge back, all indebtedness of Customer
        to
        WFBC, including
        without limitation (i) outstanding purchased Accounts, (ii) any unpaid Minimum
        Fees and (iii) all other fees,
        costs and expenses as required hereunder.

      8.01
        (b)
        Cease
        purchasing Accounts under this Agreement.

      8.01
        (c)
        Notify
        any Account Debtor and take possession of Collateral and collect any Accounts
        without judicial process.

      8.01
        (d)
        Require
        Customer to assemble the Collateral and the records pertaining to Accounts
        and
        make them available to WFBC at a place designated by WFBC.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      8.01
        (e) Enter
        the
        premises of Customer and take possession of the Collateral and of the records
        pertaining to the Accounts and any other Collateral.

      8.01
        (f) Grant
        extensions, compromise claims and settle Accounts for less than face value,
        all
        without prior notice
        to
        Customer.

      8.01
        (g) Use,
        in
        connection with any assembly or disposition of the Collateral, any trademark,
        trade name, trade style, copyright, patent right or technical process used
        or
        utilized by Customer.

      8.01
        (h) Initiate
        electronic credit or debit entries through the ACH system to and from Customer's
        deposit account
        maintained by Customer wherever located.

      8.01
        (i) Hold
        Customer liable for any deficiency for any amounts due and owing to
        WFBC.

      8.01
        (j) Require
        the Customer to repurchase any and all Accounts, whether disputed or undisputed,
        and pay the Repurchase Price for those Accounts as provided herein, and,
        in the
        event the Repurchase Price is not promptly paid, WFBC may continue to collect
        such Accounts and charge a reasonable fee in connection with such collection
        activities in addition to any other fees or charges provided for
        herein.

      8.01
        (k) Cease
        making reports or accountings to the Customer as otherwise required by this
        Agreement.

      

      ARTICLE
        IX

      Term
        and Termination

      

      9.01 This
        Agreement shall continue in full force and effect until the earliest of (a)
        one
        year from the date of this Agreement; (b) any date agreed to in writing by
        the
        parties hereto, (c) upon at least 60 days written notice by Customer; or
        (d) any
        date set by WFBC upon the occurrence of an Event of Default. This Agreement
        shall automatically continue for the following twelve-month period unless
        sixty
        days prior to the termination date, the Customer notifies WFBC in writing
        that the Customer wishes to terminate this Agreement. On the date of
        termination, all obligations owing by the Customer
        to WFBC, including any unpaid Minimum Fees for the year term, shall be
        accelerated and become immediately due
        and
        payable in full without further notice or demand.

      

      9.02 Upon
        termination, Customer shall repurchase any and all Accounts, whether disputed
        or
        undisputed, as may be requested
        by WFBC, and shall pay the Repurchase Price for those Accounts as provided
        herein as well as any other indebtedness or obligations owed to WFBC by Customer
        including any unpaid Minimum Fee for the term of this Agreement.
        WFBC continues and shall continue to have a security interest in the Collateral
        of Customer until all amounts
        owed to WFBC by Customer are paid in full or are satisfied.

      

      9.03 In
        the
        event WFBC is required to repay any Account Debtor for a payment received
        by
        WFBC on an Account, and non-payment of that Account would have required
        repurchase by Customer under this Agreement, the amount of the repayment
        by WFBC shall be an obligation of Customer to WFBC notwithstanding the
        termination of this Agreement. In the
        event
        the Customer receives a payment from WFBC to which the Customer has no rights,
        repayment of the funds to WFBC
        is
        an obligation of the Customer to WFBC whether or not the Agreement has been
        terminated. In either event, if the
        obligation is not paid upon five (5) days notice of the obligation to pay
        from
        WFBC to Customer, WFBC may file a financing
        statement in connection with the security interest granted herein (if necessary)
        and exercise any and all rights it has
        under
        this Agreement to collect the amounts due.

      

      ARTICLE
        X

      Miscellaneous
        Provisions

      

      10.01 Binding
        on Future Parties: This
        Agreement inures to the benefit of and is binding upon the heirs, executors,
        administrators,
        successors and assigns of the parties hereto except that the Customer shall
        not
        have the right to assign its rights
        hereunder or any interest herein without WFBC's prior written
        consent.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      10.2 Cumulative
        Rights:
        No
        failure or delay by WFBC in exercising any right, power or remedy under the
        Agreement or documents given in connection with the Agreement shall operate
        as a
        waiver thereof; nor shall any single or partial exercise of any such right,
        power or remedy preclude any other or further exercise thereof or the exercise
        of any other right, power or remedy under the Agreement. The remedies provided
        herein are cumulative and not exclusive of any remedies
        provided by law.

      

      10.3 Waiver:
        WFBC may
        not waive its rights and remedies unless the waiver is in writing and signed
        by
        WFBC. A waiver
        by
        WFBC of a right or remedy under this Agreement on one occasion is not a waiver
        of the right or remedy on any subsequent occasion.

      

      10.4 Choice
        of Law:
        This
        Agreement shall be governed by and construed in accordance with the laws
        of the
        State of Colorado.

      

      10.5 Invalid
        Provisions:
        Any
        provision of this Agreement which is prohibited or unenforceable shall be
        ineffective to the
        extent of such prohibition or unenforceability without invalidating the
        remaining provisions hereof.

      

      10.06: Entire
        Agreement:
        This
        instrument contains the entire Agreement between the parties. This Agreement,
        together with
        the
        documents given in connection herewith, comprises the complete and integrated
        agreement of the parties on the subject matter hereof and supersedes all
        prior
        agreements, written or oral, on the subject matter hereof.

      

      10.07 Amendment:
        Except
        as
        otherwise provided herein, any addendum or modification hereto must be signed
        by
        both parties.

      

      10.08 Effective:
        This
        Agreement becomes effective when it is accepted and executed by an authorized
        officer of WFBC.

      

      10.09 Information:
        Without
        limiting WFBC's right to share information regarding the Customer and its
        affiliates with WFBC's agents, accountants, lawyers and other advisors, Wells
        Fargo & Co., and all direct and indirect subsidiaries of Wells
        Fargo & Co. and other persons WFBC deems appropriate may exchange, discuss
        or otherwise utilize any and all information they may have in their possession
        regarding the Customer and its Affiliates, and the Customer waives any right
        of
        confidentiality it may have with respect to such exchange of such
        information.

      

      10.10 Indemnification:
        Customer
        agrees to indemnify and hold WFBC harmless from any and all liability, claims
        and damages,
        including attorneys' fees, costs of suit and interest which WFBC may incur
        as a
        result of the failure of Customer
        to pay withholding taxes due and payable to any taxing authority.

      

      10.11 Notices
        hereunder:
        All
        notices and communications hereunder shall be given or made to the parties
        at
        their respective
        addresses set forth below, or at such other address as the addressee may
        hereafter specify for the purpose of written
        notice to the other party hereto. Such notices and communications shall be
        effectively given by WFBC when and if
        given
        in writing and delivered to the address set forth herein, delivered by facsimile
        or duly deposited in the mails with first-class postage prepaid.

      

      10.12 Costs
        and Expenses:
        Except
        as is prohibited by law, the Customer agrees to pay on demand all costs and
        expenses,
        including (without limitation) attorneys' fees, incurred by WFBC in connection
        with this Agreement and any other
        related document or agreement, and the transactions contemplated hereby,
        including without limitation all such costs,
        expenses and fees incurred in connection with the negotiation, due diligence,
        preparation, execution, amendment, administration, performance, collection
        and
        enforcement of the obligations and all such documents and agreements and
        the
        creation, perfection, protection, satisfaction, foreclosure or enforcement
        of
        any security interest granted hereunder, the collection of any Account or
        any
        obligation owed by Customer to WFBC.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      10.13 Audit:
        The
        Customer hereby agrees to pay WFBC, on demand, audit fees in connection with
        any
        audits or inspections
        conducted by WFBC of any Collateral or the Customer's operations or business
        at
        the rates established from time to time by WFBC as its audit fees, together
        with
        all actual out-of-pocket costs and expenses incurred in conducting any
        such
        audit or inspection.

      

      10.14 Jurisdiction:
        The
        parties hereby (a) consent to the personal jurisdiction of the state and
        federal
        courts located in the
        State
        of Colorado in connection with any controversy related to this Agreement;
        (b)
        waive any argument that venue in any such forum is not convenient, (c) agree
        that any litigation initiated by WFBC or the Customer in connection with
        this
Agreement
        shall be venued in either the State Courts of the City and County of Denver,
        Colorado or the United States District Court, District of Colorado, and (d)
        agree that a final judgment in any such suit, action or proceeding shall
        be
        conclusive and may be enforced in other jurisdictions by suit on the judgment
        or
        in any other manner provided by law.

      

      10.15 Waiver
        of Jury Trial:
        THE CUSTOMER HEREBY IRREVOCABLY WAIVES ALL RIGHTS TO TRIAL BY
        JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF, BASED ON OR
        PERTAINING
        TO THIS AGREEMENT.

      

      
        	
                Executed
                  and accepted this

              	
                3

              	
                day
                  of

              	
                November

              	
                at

              	
                Rifle,
                  CO.

              
	 	 	 	
                Month/Year

              	 	
                City/State

              

      

      

      

      
        	
                Natural
                  Soda, Inc.

              	 	
                WELLS
                  FARGO BANK, NATIONAL ASSOCIATION

              
	
                3200
                  County Road 31

              	 	
                1740
                  Broadway MAC C7300-060

              
	
                Rifle,
                  CO 81650

              	 	
                Denver,
                  CO 80274

              
	 	 	 	 	 
	
                By:

              	
                /s/
                  Bill H. Gunn

              	 	
                By:

              	
                /s/
                  Kei Lehigh

              
	 	
                Signature

              	 	 	
                Signature

              
	 	 	 	 	 
	
                By:

              	
                Bill
                  H. Gunn

              	 	
                By:

              	
                Kei
                  Lehigh

              
	 	
                Name

              	 	 	
                Name

              
	 	 	 	 	 
	
                Its:

              	
                President

              	 	
                Its:

              	
                Vice
                  President

              
	 	
                Title

              	 	 	
                Title

              

      

      

      
        	
                Sworn
                  and subscribed before me this

              	
                3

              	
                day

              	 	
                Witnessed
                  by:

              
	
                of

              	
                November,
                  2005.

              	 	 	 	 
	 	 	 	
                Signature

              
	
                /s/
                  Ruth N. Koenig

              	 	 
	
                NOTARY
                  PUBLIC

              	 	
                NAME
                  AND TITLE

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