Document:

EXHIBIT
        10.3

       

      PROMISSORY
        NOTE

      

        
          	
                  $700,000

                	
                  February
                    23, 2007

                

        

      

       

      FOR
        VALUE RECEIVED,
        Wits
        Basin Precious Minerals Inc., a corporation organized and existing under
        the
        laws of the State of Minnesota (the “Company”),
        hereby unconditionally promises to pay to Andrew Green, a resident of the
        State
        of Ohio, or his successors and assigns (the “Holder”)
        on or
        before March 31, 2007 (the “Maturity
        Date”),
        the
        principal sum of Seven Hundred Thousand Dollars ($700,000.00) (the “Principal”),
        together with accrued and unpaid interest thereon at a rate of six percent
        (6%)
        per annum, calculated on the basis of actual days elapsed in a year of 365
        days. 

       

      Article
        1

      PAYMENTS

       

      1.1 Manner
        of Payment.
        All
        payments of Principal and interest on this Note, whether in cash or upon
        Optional Exercise of Derivative Securities (pursuant to the terms of Section
        2.1
        hereof), shall be made at such place as the Holder shall designate to the
        Company in writing. If any payment of Principal or interest on this Note
        is due
        on a day that is not a Business Day, such payment shall be due on the next
        succeeding Business Day. “Business
        Day”
means
        any day other than a Saturday, Sunday or legal holiday in the State of
        Minnesota.

       

      1.2 Prepayment.
        This
        Note may be prepaid in cash or other immediately available funds, in whole
        or in
        part by the Company at any time and from time to time, without premium or
        penalty. At Holder’s option, any payments on this Note shall be applied first to
        pay Holder for all costs of collection of any kind, including reasonable
        attorneys’ fees and expenses, next to the payment of interest accrued through
        the date of payment, and thereafter to the payment of Principal.

       

       

      Article
        2

      OPTIONAL
        EXERCISE OF DERIVATIVE SECURITIES IN PAYMENT

       

      2.1 Optional
        Exercise of Derivative Securities Upon Maturity.
        In the
        event the Principal and accrued interest under this Note is not paid in full
        on
        or prior to the Maturity Date, until such time that the this Note is satisfied
        in full, the applicable portion of the outstanding balance on this Note,
        including accrued and unpaid interest, as of the end of the day of the Maturity
        Date (the “Maturity
        Balance”)
        may,
        at the option of either the Company or Holder (the “Optional
        Exercise”),
        be
        converted into the payment of the aggregate exercise price relating to the
        “Derivative
        Securities”,
        such
        term to be defined herein as any or all, or a combination of (at the discretion
        of the party exercising the option, of the (i) outstanding warrants (“Warrants”)
        issued in the name of Holder to purchase an aggregate of 3,550,000 shares
        of the
        Company’s common stock, par value $.01 per share (“Common
        Stock”)
        at an
        original exercise price of $0.12 per share, but for which the parties hereby
        agree the exercise price shall be reduced from $0.12 per share to $.09125
        per
        share, and (ii) outstanding rights of Holder to purchase up to 3,000,000
        shares
        of the Common Stock at a purchase price per share of $0.20, as originally
        provided pursuant to that certain Amendment to Secured Convertible Promissory
        Note dated April 1, 2006 by and between Holder and the Company, the term
        of such
        right as extended to March 31, 2007 by that certain Standby Joint Venture
        Financing Agreement dated August 18, 2006 and as further extended by the
        terms
        of this Note to December 31, 2007. Upon the Optional Exercise, the Derivative
        Securities shall be deemed exercised in accordance with their respective
        terms.
        In the event, and to the extent, the Maturity Balance is greater than the
        aggregate exercise price of the Derivative Securities, the difference between
        such amounts shall be due and payable by the Company on the demand of Holder.
        

       

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

       

      2.2 Mechanics
        and Effect of Optional Exercise.
        In the
        event either Holder or the Company shall elect an Optional Exercise, Holder
        shall, within a reasonable time, be required to physically surrender this
        Note
        and, if such election relates to the Warrants, any and all original certificates
        representing the Warrants to the Company; provided that, Holder shall not
        be
        required to physically surrender this Note to the Company unless the entire
        unpaid Principal and interest of this Note, or, after the Maturity Date,
        the
        Maturity Balance (together with accrued and unpaid interest thereon), is
        satisfied in full. The Holder and the Company shall maintain records showing
        the
        outstanding Principal and interest under the Note and the Optional Exercises,
        if
        any, in a manner reasonably satisfactory to the Holder and the Company, so
        as
        not to require physical surrender of this Note upon any payment, in cash
        or
        pursuant to the Optional Exercise, in an amount that does not fully satisfy
        the
        obligations of the Company hereunder. In the event of any dispute or
        discrepancy, such records of the Company shall be controlling and determinative
        in the absence of manifest error. Notwithstanding the foregoing, and further
        subject to the limitation on transfer set forth herein, if any portion of
        this
        Note is paid in cash or by Optional Exercise, the Holder may not transfer
        this
        Note unless the Holder first physically surrenders this Note to the Company,
        whereupon the Company will forthwith issue and deliver upon the order of
        the
        Holder a new Note of like tenor, registered as the Holder (upon payment by
        the
        Holder of any applicable transfer taxes) may request, representing in the
        aggregate the remaining unpaid Principal and any accrued and unpaid interest
        on
        this Note. The Holder and any assignee, by acceptance of this Note, acknowledge
        and agree that, by reason of the provisions of this paragraph, following
        a
        payment or Optional Exercise of a portion of this Note, the unpaid Principal
        amount of this Note may be less than the amount stated on the face hereof.
        

       

      Article
        3

      DEFAULT

       

      3.1 Default.
        The occurrence of any of the following events shall constitute a “Default” under
        this Note:

       

      a. The
        Company’s failure to remit to Holder the Principal or interest hereof as the
        same becomes due hereunder;

       

      b. The
        Company’s assignment for the benefit of creditors, or filing of a petition in
        bankruptcy or for reorganization or to effect a plan or arrangement with
        creditors;

       

      c. The
        Company’s application for, or voluntary permission of, the appointment of a
        receiver of trustee for any or all Company property;

       

      d. any
        action or proceeding described in the foregoing paragraphs b
        and
c
        is
        commenced against the Company and such action or proceeding is not vacated
        within 60 days of its commencement; or

       

      e. The
        Company’s dissolution or liquidation.

       

      3.2 Remedies
        Upon Default. Upon any Default:

       

      a. Holder
        may without further notice declare the entire remaining Principal or Maturity
        Balance of this Note, together with all accrued and unpaid interest thereon,
        immediately due and payable; and Holder’s failure to declare the entire
        remaining Principal or Maturity Balance of this Note, together with all accrued
        and unpaid interest thereon, immediately due and payable shall not constitute
        a
        waiver by Holder of its right to so declare at any other time;

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

      b. Holder
        may employ an attorney to enforce its rights and remedies hereunder and Company
        hereby agrees to pay Holder’s reasonable attorneys’ fees and other reasonable
        expenses incurred by Holder in exercising any of Holder’s rights and remedies
        upon Default. 

       

      c. Holder’s
        rights and remedies provided hereunder shall be cumulative and may be pursued
        singly, successively or together in Holder’s sole discretion; and Holder’s
        failure to exercise any such right or remedy shall not be a waiver or release
        of
        such rights or remedies or the right to exercise any of them at another
        time.

       

      Article
        4

      MISCELLANEOUS

       

      4.1 Transferability.
        Without
        the prior written consent of the Company, Holder is prohibited from transferring
        its right, title and interest in this Note.

       

      4.2 Waiver.
        The
        Company hereby waives presentment, demand, protest and notice of dishonor
        and
        protest. No waiver of any right or remedy of the Holder under this Note shall
        be
        valid unless in a writing executed by the Holder and any such waiver shall
        be
        effective only in the specific instance and for the specific purpose given.
        All
        rights and remedies of the Holder of this Note shall be cumulative and may
        be
        exercised singly, concurrently or successively

       

      4.3 Notices.
        Any
        notice required or permitted to be given hereunder shall be given by the
        Company
        to the Holder or the Holder to the Company in accordance with the Purchase
        Agreement.

       

      4.4 Severability.
        If any
        provision in this Note is held invalid or unenforceable by any court of
        competent jurisdiction, the other provisions of this Note will remain in
        full
        force and effect. Any provision of this Note held invalid or unenforceable
        only
        in part or degree will remain in full force and effect to the extent not
        held
        invalid or unenforceable.

       

      4.5 Governing
        Law.
        This
        Note will be governed by the laws of the State of Minnesota without regard
        to
        conflicts of laws principles. 

       

      4.6 Parties
        in Interest.
        The
        terms and conditions of this Note shall inure to the benefit of and be binding
        upon the respective successors and assigns of the parties. 

       

      4.7 Section
        Headings. Construction.
        The
        headings of Sections in this Note are provided for convenience only and will
        not
        affect its construction or interpretation. All references to “Section” or
“Sections” refer to the corresponding Section or Sections of this Note unless
        otherwise specified. All words used in this Note will be construed to be
        of such
        gender or number as the circumstances require. Unless otherwise expressly
        provided, the words “hereof” and “hereunder” and similar references refer to
        this Note in its entirety and not to any specific section or subsection
        hereof.

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF, the Company has executed and delivered this Note as of the
        date
        first stated above.

      
        	 	 	 
	 	
                WITS
                  BASIN PRECIOUS MINERALS INC.

              
	 
 	 
 	 
 
	
              	By:  	/s/
                Stephen D King
	 	
                

                Name: Stephen
                  D King

              
	 	
                Title: CEOExhibit
      10.1 

    

    THIS
      NOTE
      HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 OR ANY STATE SECURITIES
      LAWS. IT MAY NOT BE TRANSFERRED, ASSIGNED, SOLD OR OFFERED FOR SALE EXCEPT
      PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER SAID ACT AND ANY
      APPLICABLE STATE SECURITIES LAW OR AN OPINION OF COUNSEL, IN FORM AND SUBSTANCE
      REASONABLY ACCEPTABLE TO THE COMPANY, THAT REGISTRATION IS NOT REQUIRED BECAUSE
      OF AN APPLICABLE EXEMPTION FROM SUCH REGISTRATION REQUIREMENTS.

    

    PROMISSORY
      NOTE

     

    
      	
              $170,000

            	
              February
                14, 2007

            

    

    

    FOR
      VALUE
      RECEIVED, Pure Vanilla eXchange, Inc., a Nevada corporation with an address
      at
      805 Third Avenue, New York NY 10022 ("Maker"),
      promises to pay to the order of Jed
      Schutz
      ("Payee"),
      the
      principal sum of One Hundred Seventy Thousand Dollars ($170,000) plus interest
      on the outstanding principal from the date hereof to and including the day
      when
      principal is paid in full. Interest shall accrue monthly at the annual rate
      of
      two percent (2%) per annum; provided that so long as an Event of Default (as
      hereinafter defined), or any event which with notice or passage of time or
      both
      would constitute an Event of Default, shall exist and be continuing, interest
      shall accrue daily at the rate of five percent (5%) per annum.

    

    1. Payments.
      Maker
      shall pay principal and accrued interest on the earlier of (i) two business
      days
      after the date on which the Company has raised and reported, in the aggregate
      from February 12, 2007 to the date of such report, $20 million of “Net
      Financing”
      (defined below) and (ii) May 15, 2007. For the purposes of this Note,
“Net
      Financing”
means,
      the gross proceeds received by the Company from the sale of any of its
      securities, less any loans that have been outstanding for a term of less than
      six months on the date such financing is closed (regardless of the maturity
      at
      the date of issue) that are repaid from the proceeds of the Financing. Payments
      shall be made at the offices of Maker or at such other place as Payee or any
      subsequent holder may designate to Maker in writing.

    

    2. Prepayment.
      The
      indebtedness evidenced by this Note may be prepaid at any time and from time
      to
      time, without advance notice to Payee, in whole or in part without premium
      or
      penalty, but with accrued and unpaid interest to the date of prepayment on
      the
      amount of principal being prepaid.

     

    3. Events
      of Default.
      If any
      of the following events shall occur and be continuing, Payee may, by notice
      to
      Maker, declare this Note, all accrued and unpaid interest hereon, and all other
      amounts payable hereunder to be due and payable, whereupon the same shall become
      due and payable,10 days after notice to the Maker if during such 10 day period,
      the Maker shall fail to cure the event (an "Event
      of Default"):

    

    
      
         

      

      
        -1-

        
          

        

      

      
         

      

       

    

    a. There
      is
      a failure to make any payment of principal of, interest on, or any other amount
      payable under this Note, or Maker breaches any other obligation to Payee
      hereunder, or the Payee uses the proceeds of this note for any purpose other
      than payroll expenses or payment to consultants in the ordinary course of
      business consistent with agreements in effect with such consultants entered
      into
      prior to February 14, 2007. 

    

    b. Any
      proceedings shall be instituted by or against Maker seeking either (i) an order
      for relief with respect to, or reorganization, arrangement, adjustment or
      composition of, its debts under the United States Bankruptcy Code or under
      any
      other law relating to bankruptcy, insolvency, reorganization or relief of
      debtors, or (ii) appointment of a trustee, receiver or similar official for
      Maker or for any substantial part of its property; and, with respect only to
      a
      proceeding instituted against Maker, such proceeding is not dismissed within
      sixty (60) days thereafter;

     

    c. Maker's
      failure to conduct business in the ordinary course, dissolution or termination
      of existence;

    d. Any
      sale,
      transfer, pledge, lien, grant of a security interest or other disposition,
      outside the ordinary course of business, in or of any material assets or a
      material portion of the assets or business of Maker, except a disposition of
      assets to a wholly owned subsidiary of Maker;

    

    e. Any
      declaration or payment by Maker of any dividend or distribution with respect
      to
      its capital stock; any payment with respect to any stock appreciation right,
      phantom stock or similar plan; or redemption of any shares of its capital stock,
      or of options, warrants, or other rights to acquire, or securities convertible
      into its capital stock; 

    

    f. A
      final
      judgment or order for the payment of money in excess of $100,000 shall be
      rendered against the Maker and such judgment or order shall continue
      unsatisfied, in effect and unstayed for a period of thirty (30) consecutive
      days

    

    g. The
      failure of Maker to comply in all material respects with all applicable laws,
      rules, regulations or orders, including, without limitation, (i) paying before
      same become due all taxes, assessments and governmental charges imposed upon
      it,
      upon its income and profits or upon its property, except to the extent contested
      in good faith and covered by adequate reserves, and (ii) compliance with all
      applicable environmental and toxic substance laws, rules and regulations; or
      

    4. No
      Waiver, etc.
      No delay
      or omission on the part of Payee in exercising any right hereunder shall operate
      as a waiver of such right or of any other right of Payee, nor shall any delay,
      omission or waiver on any one occasion be deemed a bar to or waiver of the
      same
      or any other right on any future occasion. Maker and every endorser of this
      Note, regardless of the time, order or place of signing, waives presentment,
      demand, protest and notices of every kind with respect to this Note and assents
      (i) to any extension or postponement of the time of payment and to any other
      indulgence, (ii) to the addition or release of, or any compromise or settlement
      with, any endorser or other party or person primarily or secondarily liable
      hereunder, and (iii) to the addition or release of, the failure to take or
      perfect an interest in, any compromise or settlement with respect to, or any
      delay in proceeding or failure to proceed against, any collateral or other
      security for this Note.

    

    
      
         

      

      
        -2-

        
          

        

      

      
         

      

       

    

    5. Governing
      Law.
      This
      Note shall be governed by and construed in accordance with the laws of the
      State
      of New York applicable to contracts made and to be performed wholly within
      New
      York State, without giving effect to conflict of laws principles.

    

    7. Notices.
      Any
      notice or other communication required or permitted under this Note shall be
      in
      writing and shall be deemed to have been duly given (i) upon hand delivery,
      or
      (ii) on the third day following delivery to the U.S. Postal Service as certified
      or registered mail, return receipt requested and postage prepaid, or (iii)
      on
      the first day following delivery to a nationally recognized United States
      overnight courier service, fee prepaid, return receipt or other confirmation
      of
      delivery requested, or (iv) when telecopied or sent by facsimile transmission
      if
      an additional notice is also delivered or mailed, as set forth under (i), (ii)
      or (iii) above, within three days thereafter. Any such notice or communication
      shall be delivered or directed to a party at its address set forth above or,
      as
      to each such party or any holder hereof, at such other address as may be
      designated by such party or holder in a notice given to the other parties hereto
      in accordance with the provisions of this paragraph.

    

    8. Maximum
      Interest.
      Notwithstanding any other provisions of this Note, Payee does not intend to
      charge, and Maker shall not be required to pay, any interest or other fees
      or
      charges in excess of the maximum permitted by applicable law. Any payments
      in
      excess of such maximum shall be refunded to Maker or credited against unpaid
      principal.

     

    9. Modifications;
      Waiver.
      No
      modification or waiver of this Note or any part hereof shall be effective unless
      in writing and signed by Maker and Payee. No waiver of any breach or condition
      of this Note shall be deemed to be a waiver of any other or subsequent breach
      or
      condition, whether of like kind or different nature. No course of dealing
      between Maker and Payee, or between Payee and any other party, will be deemed
      effective to modify, amend, waive or discharge any part of this Note or of
      the
      rights or obligations of Maker hereunder.

    

    10-. Jurisdiction
      and Venue.
      In the
      event that any legal proceedings are commenced in any court with respect to
      any
      matter arising under this Note, Maker specifically consents and agrees that:
      (i)
      the courts of the State of New York and/or the United States Federal Courts
      located in the State of New York shall have exclusive jurisdiction over Maker
      and over the subject matter of any such proceedings; and (ii) the venue of
      any
      such action shall be in New York County, New York and/or the United States
      District Court for the Southern District of New York.

    

    IN
      WITNESS WHEREOF, Pure Vanilla eXchange has executed this Note as of the date
      first above written.

    
      	 	 	 
	 	Pure Vanilla eXchange, Inc.
	 	Maker
	 
 	 
 	 
 
	 	By:  	/s/
              Steven Yevoli
	 	
              
Steven
              Yevoli
	 	
              Its
                Chief Executive Officer

            

    

     

     

    
      
         

      

      
        -3-

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