Document:

EXHIBIT
      10.2

    Wits
      Basin Precious Minerals Inc.

    Stock
      Option Agreement

    (Non-Statutory)

    

    This
      stock option agreement is effective as of March 9, 2007 between Stephen D.
      King
      (“Executive”),
      and
      Wits Basin Precious Minerals Inc., a Minnesota corporation (the “Company”).

    

    Background

    

    A. The
      Company desires to induce Executive to continue to serve the Company as an
      executive.

    

    B. The
      Company has adopted the 2007 Stock Incentive Plan (the “Plan”)
      pursuant to which shares of common stock of the Company have been reserved
      for
      issuance under the Plan.

    

    Now,
      Therefore,
      the
      parties hereto agree as follows:

    

    1. Incorporation
      by Reference.
      The
      terms of the Plan, a copy of which has been delivered to Executive, are hereby
      incorporated herein and made a part hereof by reference as if set forth in
      full.
      In the event of any conflict or inconsistency between the provisions of this
      Agreement and those of the Plan, the provisions of the Plan shall govern and
      control.

    

    2. Grant
      of Option; Purchase Price.
      Subject
      to the terms and conditions herein set forth, the Company hereby irrevocably
      grants from the Plan to Executive the right and option, hereinafter called
      the
“Option”,
      to
      purchase all or any part of an aggregate of 3,000,000 shares of common stock
      of
      the Company (the “Shares”)
      at the
      price per Share of $1.02.

    

    3. Exercise
      and Vesting of Option.
      The
      Option shall be exercisable only to the extent that all, or any portion thereof,
      has vested in the Executive. Except as provided in Paragraphs 4 and 5 below,
      the
      right to purchase the Shares subject to the Option shall vest pro rata in six
      annual installments beginning on March 9, 2008 and continuing each year
      thereafter until the Option is fully vested (the “Annual
      Installments”),
      as
      set forth in the following schedule, so long as Executive continues to be
      employed by the Company (each such date is hereinafter referred to singularly
      as
      a “Vesting
      Date”
and
      collectively as “Vesting
      Dates”):

    

    
      	
              Total
                Shares Subject 

              to
                Vesting Date

            	
               

              Vesting
                Date

            
	
              500,000

            	
              March
                9, 2008

            
	
              500,000

            	
              March
                9, 2009

            
	
              500,000

            	
              March
                9, 2010

            
	
              500,000

            	
              March
                9, 2011

            
	
              500,000

            	
              March
                9, 2012

            
	
              500,000

            	
              March
                9, 2013

            

    

    

    4. Termination
      of Employment.
      In the
      event that the Executive ceases to be employed by the Company, for any reason
      or
      no reason, with or without cause, prior to any Vesting Date, that part of the
      Option scheduled to vest on such Vesting Date, and all parts of the Option
      scheduled to vest in the future, shall not vest and all of Executive's rights
      to
      and under such non-vested parts of the Option shall terminate.

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    

    5. Acceleration
      of Vesting.
      The
      vesting of the Option shall be accelerated, in part, upon the occurrence of
      the
      following events: (a) upon the completion of a merger between the Company (or
      a
      subsidiary of the Company formed for that purpose) and Easyknit
      Enterprises Holdings Limited
      (or a
      subsidiary of Easyknit
      Enterprises Holdings Limited
      formed
      for that purpose) the then last remaining Annual Installment shall immediately
      vest and (b) upon the completion of each material acquisition of mining related
      assets by the Company the then last remaining Annual Installment shall
      immediately vest, provided that, the board of directors of the Company, in
      its
      sole discretion, shall determine whether an acquisition is
“material”. 

     

    6. Term
      of Option.
      To the
      extent vested, and except as otherwise provided in this agreement, the Option
      shall be exercisable for 10 years from the date of this agreement; provided,
      however,
      that in
      the event Executive ceases to be employed by the Company, for any reason or
      no
      reason, with or without cause, Executive or his/her legal representative shall
      have 90 days from the date of such termination of his/her position as an
      executive to exercise any part of the Option then vested. Upon the expiration
      of
      that 90 day period, or, if earlier, upon the expiration date of the Option
      as
      set forth above, the Option shall terminate and become null and
      void.

     

    7. Reduction
      in Shares Due to Listing.
      In the
      event the Company attempts to obtain listing of its common stock on a stock
      exchange and such stock exchange, as a condition to listing (to be determined
      in
      the sole discretion of the board of directors of the Company), requires that
      the
      Company reduce the number of Shares issued to Executive hereunder, the Company
      shall be entitled to reduce the number of Shares issued hereunder accordingly
      to
      obtain listing on that exchange, provided that the Shares are not then vested.
      

    

    8. Rights
      of Option Holder.
      Executive, as holder of the Option, shall not have any of the rights of a
      shareholder with respect to the Shares covered by the Option except to the
      extent that one or more certificates for such Shares shall be delivered to
      him
      or her upon the due exercise of all or any part of the Option.

    

    9. Transferability.
      The
      Option shall not be transferable except to the extent permitted by the
      Plan.

    

    10. Securities
      Law Matters.
      Executive acknowledges that the Shares to be received by him upon exercise
      of
      the Option may have not been registered under the Securities Act of 1933 or
      the
      Blue Sky laws of any state (collectively, the “Securities
      Acts”).
      If
      such Shares have not been so registered, Executive acknowledges and understands
      that the Company is under no obligation to register, under the Securities Acts,
      the Shares received by him or to assist him in complying with any exemption
      from
      such registration if he should at a later date wish to dispose of the Shares.
      Executive acknowledges that if not then registered under the Securities Acts,
      the Shares shall bear a legend restricting the transferability thereof, such
      legend to be substantially in the following form:

    

    “The
      shares represented by this certificate have not been registered or qualified
      under federal or state securities laws. The shares may not be offered for sale,
      sold, pledged or otherwise disposed of unless so registered or qualified, unless
      an exemption exists or unless such disposition is not subject to the federal
      or
      state securities laws, and the Company may require that the availability or
      any
      exemption or the inapplicability of such securities laws be established by
      an
      opinion of counsel, which opinion of counsel shall be reasonably satisfactory
      to
      the Company.”

    

    11. Executive
      Representations.
      Executive hereby represents and warrants that Executive has reviewed with his
      or
      her own tax advisors the federal, state, and local tax consequences of the
      transactions contemplated by this agreement. Executive is relying solely on
      such
      advisors and not on any statements or representation of the Company or any
      of
      its agents. Executive understands that he or she will be solely responsible
      for
      any tax liability that may result to him or her as a result of the transactions
      contemplated by this agreement. The Option, if exercised, will be exercised
      for
      investment and not with a view to the sale or distribution of the Shares to
      be
      received upon exercise thereof.

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    12. Notices.
      All
      notices and other communications provided in this agreement will be in writing
      and will be deemed to have been duly given when received by the party to whom it
      is directed at the following addresses:

     

    
      	
              If
                to the Company:

               

              Wits
                Basin Precious Minerals Inc.

              900
                IDS Center

              80
                South 8th
                Street

              Minneapolis,
                MN 55402-8773 

              Attn:
                Chief Financial Officer

            	
              If
                to Executive:

               

              Stephen
                D. King

              4243
                Dunwoody Club Dr

              Atlanta,
                GA 30350

            

    

    

    13. General.
      

    

    (a) The
      Option is granted pursuant to the Plan and is governed by the terms thereof.
      The
      Company shall at all times during the term of the Option reserve and keep
      available such number of Shares as will be sufficient to satisfy the
      requirements of this agreement. 

    

    (b) Nothing
      herein expressed or implied is intended or shall be construed as conferring
      upon
      or giving to any person, firm, or corporation other than the parties hereto,
      any
      rights or benefits under or by reason of this agreement.

    

    (c) Each
      party hereto agrees to execute such further documents as may be necessary or
      desirable to effect the purposes of this agreement.

    

    (d) This
      agreement may be executed in any number of counterparts, each of which shall
      be
      deemed an original, but all of which shall constitute one and the same
      agreement.

    

    (e) This
      agreement, in its interpretation and effect, shall be governed by the laws
      of
      the State of Minnesota applicable to contracts executed and to be performed
      therein.

    

    IN
      WITNESS WHEREOF, the undersigned have executed this agreement as of the date
      first written above.

    

    
      	 	
              EXECUTIVE:

               

              /s/
                Stephen D. King   

              Name:
                Stephen D. King

            
	 	
              WITS
                BASIN PRECIOUS MINERALS INC.

               

              By:
                /s/
                Mark D. Dacko   

              Its:
                Chief Financial Officer

            

    

    

    

    
      
         

      

        3Unassociated Document

    
      SECOND
        AMENDMENT

      

        TO

      

       

      
        CREDIT
          AGREEMENT

        

          Among

        

        AURORA
          ANTRIM
          NORTH,
          L.L.C.

        
          as
            Borrower,

        

        

        AURORA
          ENERGY,
          LTD.
          AND

        AURORA
          OIL
          &
          GAS
          CORPORATION,

        
          as  Guarantors,

        

         

        
          BNP PARIBAS,

        

        as
          Administrative Agent,

        

        and

        

        The
          Lenders Signatory Hereto

         

        Effective
          as of December 21, 2006

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

      

    

     

    
      
        SECOND
          AMENDMENT TO
          CREDIT
          AGREEMENT

      

    

    

    
      This
        Second
        Amendment to Credit Agreement
        (this
“Second
        Amendment”)
        executed effective as of the 21st of December, 2006 (the “Second
        Amendment Effective Date”)
        is
        among Aurora
        Antrim North, L.L.C., a
        Michigan limited liability company (the “Borrower”);
        each
        of Aurora
        Energy, Ltd.,
        a
        Nevada corporation and Aurora
        Oil & Gas Corporation (formerly
        known as Cadence Resources Corporation),
        a Utah
        corporation (the “Guarantors”,
        and
        together with the Borrower, the “Obligors”);
        each
        of the Lenders that is a signatory hereto; and BNP
        Paribas,
        as
        administrative agent for the Lenders (in such capacity, together with its
        successors, the “Administrative
        Agent”).

      

      Recitals

       

      A. The
        Borrower, the Guarantors, the Administrative Agent and the Lenders are parties
        to that certain Credit Agreement dated as of January 31, 2006, as amended
        by the
        First Amendment to Credit Agreement, dated July 14, 2006 (as amended, the
        “Credit
        Agreement”),
        pursuant to which the Lenders have made certain credit available to and on
        behalf of the Borrower.

       

      B. The
        Borrower has requested and the Administrative Agent and the Lenders have
        agreed
        to amend certain provisions of the Credit Agreement.

      

      C. NOW,
        THEREFORE, in consideration of the premises and the mutual covenants herein
        contained, for good and valuable consideration, the receipt and sufficiency
        of
        which are hereby acknowledged, the parties hereto agree as follows:

      

      Section
        1. Defined
        Terms.
        Each
        capitalized term which is defined in the Credit Agreement, but which is not
        defined in this Second Amendment, shall have the meaning ascribed to such
        term
        in the Credit Agreement. Unless otherwise indicated, all section references
        in
        this Second Amendment refer to the Credit Agreement.

      

      Section
        2. Amendments
        to Credit Agreement.

      

      2.1 Definitions.
        Section
        1.02 is hereby amended by adding or amending and restating the following
        definitions:

      

      “
        ‘Agreement’
means
        this Credit Agreement, as amended by that certain First Amendment to Credit
        Agreement, dated as of July 14, 2006 and that certain Second Amendment to
        Credit
        Agreement, dated as of December 21, 2006, and as the same may from time to
        time
        be further amended, modified, supplemented or restated.”

      

      “
        ‘Cadence’
means
        Aurora Oil and Gas Corporation, a Utah corporation formerly known as Cadence
        Resources Corporation.”

       

      
        
          
          

        

        
          Page
            2

          
            

          

        

        
          
          

        

      

       

      2.2 Section
        9.01(a). Section
        9.01(a) is hereby amended and restated in its entirety as follows:

      

      “(a) Interest
        Coverage Ratio.
        Aurora
        and the Borrower, on a consolidated basis, will not, (i) as of the last day
        of
        the fiscal quarter ending March 31, 2007, permit their ratio of EBITDAX for
        the
        period of such fiscal quarter then ending to Interest Expense for such period
        to
        be less than 2.0 to 1.0, (ii) as of the last day of the fiscal quarter ending
        June 30, 2007, permit their ratio of EBITDAX for the period of such fiscal
        quarter then ending to Interest Expense for such period to be less than 2.25
        to
        1.0 and (iii) as of the last day of any fiscal quarter ending on or after
        September 30, 2007, permit their ratio of EBITDAX for the fiscal quarter
        then
        ending to Interest Expense for such period to be less than 2.5 to 1.0. This
        interest coverage ratio covenant shall not be required for the fiscal quarter
        ending December 31, 2006.”

      

      Section
        3. Conditions
        Precedent.
        The
        effectiveness of this Second Amendment is subject to the receipt by the
        Administrative Agent of the following documents and satisfaction of the other
        conditions provided in this Section 3, each of which shall be reasonably
        satisfactory to the Administrative Agent in form and substance:

      

      3.1 Payment
        of Outstanding Invoices.
        Payment
        by the Borrower to the Administrative Agent of all fees and other amounts
        due
        and payable on or prior to the Second Amendment Effective Date, including,
        to
        the extent invoiced, reimbursement or payment of all out-of-pocket expenses
        required to be reimbursed or paid by the Borrower. 

      

      3.2 Second
        Amendment.
        The
        Administrative Agent shall have received multiple counterparts as requested
        of
        this Second Amendment from each Lender.

      

      3.3 No
        Default.
        No
        Default or Event of Default shall have occurred and be continuing as of the
        Second Amendment Effective Date.

      

      Section
        4. Representations
        and Warranties; Etc.
        Each
        Obligor hereby affirms: (a) that as of the date of execution and delivery
        of
        this Second Amendment, all of the representations and warranties contained
        in
        each Loan Document to which such Obligor is a party are true and correct
        in all
        material respects as though made on and as of the Second Amendment Effective
        Date (unless made as of a specific earlier date, in which case, was true
        as of
        such date); and (b) that after giving effect to this Second Amendment and
        to the
        transactions contemplated hereby, no Defaults exist under the Loan Documents
        or
        will exist under the Loan Documents.

      

      Section
        5. Miscellaneous.

      

      5.1 Confirmation.
        The
        provisions of the Credit Agreement (as amended by this Second Amendment)
        shall
        remain in full force and effect in accordance with its terms following the
        effectiveness of this Second Amendment.

       

      
        
          
          

        

        
          Page
            3

          
            

          

        

        
          
          

        

      

       

      5.2 Ratification
        and Affirmation of Obligors.
        Each of
        the Obligors hereby expressly (i) acknowledges the terms of this Second
        Amendment, (ii) ratifies and affirms its obligations under the Guarantee
        Agreement and the other Security Instruments to which it is a party, (iii)
        acknowledges, renews and extends its continued liability under the Guarantee
        Agreement and the other Security Instruments to which it is a party and agrees
        that its guarantee under the Guarantee Agreement and the other Security
        Instruments to which it is a party remains in full force and effect with
        respect
        to the Indebtedness as amended hereby.

      

      5.3 Counterparts.
        This
        Second Amendment may be executed by one or more of the parties hereto in
        any
        number of separate counterparts, and all of such counterparts taken together
        shall be deemed to constitute one and the same instrument.

      

        5.4 No
          Oral Agreement.
          THIS
          WRITTEN SECOND
          AMENDMENT,
          THE CREDIT
          AGREEMENT
          AND THE OTHER LOAN
          DOCUMENTS
          EXECUTED IN CONNECTION HEREWITH AND THEREWITH REPRESENT THE FINAL AGREEMENT
          BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR,
          CONTEMPORANEOUS, OR UNWRITTEN ORAL AGREEMENTS OF THE PARTIES. THERE ARE
          NO
          SUBSEQUENT ORAL AGREEMENTS BETWEEN THE PARTIES.

      

      

        5.5 Governing
          Law.
          THIS
          SECOND
          AMENDMENT
          (INCLUDING, BUT NOT LIMITED TO, THE VALIDITY AND ENFORCEABILITY HEREOF)
          SHALL BE
          GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE
          OF
TEXAS.

         

      

      
        
          
          

        

        
          Page
            4

          
            

          

        

        
          
          

        

      

       

      IN
        WITNESS WHEREOF, the parties hereto have caused this Second Amendment to
        be duly
        executed effective as of the date first written above.

       

      
        	 	 	 
	BORROWER:
                	AURORA
                ANTRIM NORTH, L.L.C.
	 	 
	 
 	By:
                Aurora Energy, Ltd., its sole manager 

	 	
                By:  

              	/s/
                William W. Deneau
	 	 	
                
William
                W. Deneau, President

        	 	 	 
	GUARANTORS:	
                AURORA
                  ENERGY, LTD.

              
	 	 	 
	 	
                By:  

              	/s/ William W. Deneau
	 	 	
                
William
                W. Deneau, President

      

       

      
        	 	 	 
	 	
                AURORA
                  OIL & GAS CORPORATION

              
	 	 	 
	 	
                By:  

              	/s/ William W. Deneau
	 	 	
                
William
                W. Deneau, President

      

       

      
        
          
          

        

        
           Page5

          
            

          

        

        
          
          

        

         

        
          	 	 	 
	 ADMINISTRATIVE
                  AGENT:	BNP
                  PARIBAS,
	 	as Administrative Agent and Lender
	 	 
	 	By:  	
                  /s/ Douglas R.Liftman

                
	 	
                   

                  Name: 

                	
                  
                    

                  

                    Douglas R.Liftman

                
	 	Title:	 
                  Managing Director

        

      

       

      
        	 	 	 
	 	By:  	
                /s/
                  Betsy Jocher

              
	 	
                 

                Name: 

              	
                
 
Betsy
                Jocher
	 	Title:	 
                Director

      

      

      
        	 	 	 
	 LENDERS:	COMERICA
                BANK
	 	 
	 	By:  	
                /s/
                  Peter L. Sefzik

              
	 	
                 

                Name: 

              	
                
                  

                
  Peter L. Sefzik
	 	Title:	 
                Vice President

      

       

      
        
          
          

        

        
           Page
            6

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