Document:

Filed by Automated Filing Services Inc. (604) 609-0244 - NovaGold Resources Inc. - Exhibit 4.1

 NOVAGOLD RESOURCES INC. 

 2004 STOCK OPTION PLAN 

 PART 1  

 INTERPRETATION 

	1.01 	 	Definitions In this Plan the
        following words and phrases shall have the following meanings, namely:

	 	 	 
	 	(a)	"Board" means the board of directors
        of the Company and includes any committee of directors appointed by the
        directors as contemplated by Section 3.01 hereof;

	 	 	 
	 	(b)	"Change of Control" means the
        acquisition by any person or by any person and a Joint Actor, whether
        directly or indirectly, of voting securities as defined in the Securities
        Act) of the Company, which, when added to all other voting securities
        of the Company at the time held by such person or by such person and a
        Joint Actor, totals for the first time not less than fifty percent (50%)
        of the outstanding voting securities of the Company or the votes attached
        to those securities are sufficient, if exercised, to elect a majority
        of the Board of Directors of the Company.

	 	 	 
	 	(c)	"Code" means the U.S. Internal
        Revenue Code of 1986, as amended;

	 	 	 
	 	(d)	"Company" means NovaGold Resources
        Inc.;

	 	 	 
	 	(e)	"Director" means any director
        of the Company or of any of its subsidiaries;

      

	 	 	 
	 	(f)	"Employee" means any individual
        in the employment of the Company or any of its subsidiaries or of a company
        providing management or administrative services to the Company;

	 	 	 
	 	(g)	"Exchange" means The Toronto
        Stock Exchange and any other stock exchange on which the Shares are listed
        for trading;

	 	 	 
	 	(h)	"Exchange Policy" means the policies,
        bylaws, rules and regulations of the Exchange governing the granting of
        options by the Company, as amended from time to time;

	 	 	 
	 	(i)	 "Expiry Date" means not later
        than ten years from the date of grant of the Option or, if Exchange Policy
        does not permit a term of 10 years for Options granted by the Company
        not later than five years from the date the Option is granted;

	 	 	 
	 	(j)	"Fair Market Value" means, with
        respect to any property (including, without limitation, any Shares), the
        fair market value of such property determined by such methods or procedures
        as are established from time to time by the Board. Unless otherwise determined
        by the Board, the fair market value of a Share as of a given date will
        be (a) the price at which the last recorded sale of a board lot of Shares
        took place on the Exchange during the trading day immediately preceding
        the date in question or (b) if there was no such sale, the weighted average
        trading price on the Exchange for the Shares for the five trading days
        immediately preceding the date in question;

	 	 	 
	 	(k)	"Incentive Stock Option" means
        an Option granted to a U.S. Participant that is intended to qualify as
        an "incentive stock option" within the meaning of section 422 of the Code.

	 	 	 
	 	(l) 	"Insider" has the meaning ascribed
        thereto in the Securities Act;

	 	 	 
	 	(m)	"Joint Actor" means a person
        acting "jointly or in concert with" another person as that phrase is interpreted
        in section 96 of the Securities Act;

 - 19 - 

	 	(n)	"Nonqualified Stock Option" means
        an Option granted to a U.S. Participant that is not an Incentive Stock
        Option;

	 	 	 
	 	(o)	"Option" means an option to acquire
        Shares granted under this Plan;

	 	 	 
	 	(p)	"Option Agreement" means the
        written agreement between the Company and an optionee relating to the
        granting of an Option, in the form or substantially in the form of Exhibit
        A or Exhibit B attached to this Plan, and containing such terms
        and conditions as are required by Exchange Policy and Securities Laws;

	 	 	 
	 	(q)	"Option Price" means the price
        at which Options may be granted in accordance with Exchange Policy and
        Securities Laws and means the price at which the last recorded sale of
        a board lot of Shares took place on the Exchange during the trading day
        immediately preceding the date of granting the Option or, if there was
        no such sale, the weighted average trading price on the Exchange for the
        Shares for the five trading days immediately preceding the date of granting
        the Option;

	 	 	 
	 	(r) 	"Officer" means any senior officer
        of the Company or of any of its subsidiaries as defined in the Securities
        Act;

	 	 	 
	 	(s)	 "Outstanding Issue" is determined
        by Exchange Policy and by Securities Laws, and is based on the number
        of Shares that are outstanding immediately prior to the Share issuance
        in question, excluding Shares issued over the preceding one year period
        pursuant to stock options, stock option plans, employee stock purchase
        plans or any other compensation or incentive mechanism involving the issuance
        or potential issuance of Shares including a share purchase from treasury
        which is financial assisted by the Company by way of loan, guarantee or
        otherwise;

	 	 	 
	 	(t)	"Parent" means a "parent corporation"
        as defined in section 424(e) of the Code;

	 	 	 
	 	(u)	"Plan" means this stock option
        plan as from time to time amended;

	 	 	 
	 	(v)	"Securities Act" means the Securities
        Act, as amended, from time to time;

	 	 	 
	 	(w)	"Securities Laws" means the act,
        policies, bylaws, rules and regulations of the securities commissions
        governing the granting of options by the Company, as amended from time
        to time;

	 	 	 
	 	(x)	"Service Provider" means an Employee
        or insider of the Company or any of its subsidiaries and includes any
        other person who is engaged to provide either directly or through a corporation,
        ongoing management or consulting services to the Company or its affiliates;

	 	 	 
	 	(y)	"Shares" means common shares
        of the Company;

	 	 	 
	 	(z)	"Subsidiary" means a "subsidiary
        corporation" as defined in section 424(f) of the Code;

	 	 	 
	 	(aa)	"U.S. Participant" means a Service
        Provider, Officer or Director who is a U.S. citizen or a U.S. resident,
        in each case as defined in the Code;

	 	 	 
	 	(bb)	"Vested" means that an Option
        has become exercisable in accordance with the terms of this Plan and any
        applicable Option Agreement;

	 	 	 
	 	(cc)	"10% Shareholder" means a person
        who owns (taking into account the constructive ownership rules under section
        424(d) of the Code) more than 10% of the total combined voting power of
        all classes of stock of the Company (or of any Parent or Subsidiary of
        the Company).

 1.02               
  Gender Throughout this Plan, words importing the masculine gender shall
  be interpreted as including the female gender. 

 - 20 - 

 PART 2  

 PURPOSE OF PLAN 

 2.01               
  Purpose The purpose of this Plan is to attract and retain Service Providers,
  Officers or Directors to the Company and to motivate them to advance the interests
  of the Company by affording them with the opportunity to acquire an equity interest
  in the Company through Options. 

 PART 3  

 GRANTING OF OPTIONS 

 3.01               
  Administration This Plan shall be administered by the Board or, if the
  Board so elects, by a committee (which may consist of only one person) appointed
  by the Board from its members. 

 3.02               
  Committee's Recommendations The Board may accept all or any part of recommendations
  of the committee or may refer all or any part thereof back to the committee
  for further consideration and recommendation. 

 3.03               
  Grant by Resolution The Board, on its own initiative or, a committee
  of the Board duly appointed for the purpose of administering this Plan, may,
  by resolution, designate all eligible persons who are Service Providers, Officers
  or Directors, or corporations employing or wholly owned by such Service Provider,
  Officer or Director, to whom Options should be granted and specify the terms
  of such Options which shall be in accordance with Exchange Policy and Securities
  Laws. 

 3.04               
  Terms of Option The resolution of the Board shall specify the number
  of Shares that should be placed under Option to each such Service Provider,
  Officer or Director, the exercise price to be paid for such Shares upon the
  exercise of each such Option, and the period during which such Option may be
  exercised. 

 3.05               
  Option Agreement Every Option granted under this Plan shall be evidenced
  by an Option Agreement and, where not expressly set out in the Option Agreement,
  the provisions of such Option Agreement shall conform to and be governed by
  this Plan. In the event of any inconsistency between the terms of any Option
  Agreement and this Plan, the terms of this Plan shall govern. 

 PART 4  

 CONDITIONS GOVERNING THE GRANTING AND EXERCISING OF OPTIONS

 4.01               
  Exercise Price The exercise price of an Option granted under this Plan
  shall not be less than the Option Price at the time of granting the Options.

 4.02               
  Expiry Date Each Option shall, unless sooner terminated, expire on a
  date to be determined by the Board which will not be later than the Expiry Date.

 4.03               
  Different Exercise Periods, Prices and Number The Board may, in its absolute
  discretion, upon granting an Option under this Plan, and subject to the provisions
  of Section 7.03 hereof, specify a particular time period or periods following
  the date of granting the Option during which the optionee may exercise his Option
  to purchase Shares, may designate the exercise price and the number of Shares
  in respect of which such optionee may exercise his Option during each such time
  period and may determine and impose terms upon which each Option shall become
  Vested. 

 4.04               
  Number of Shares To one Person The number of Shares reserved for issuance
  to any one person pursuant to Options granted under this Plan shall not exceed
  5% of the outstanding Shares at the time of granting of the Options. 

 - 21 - 

 4.05               
  Termination of Employment If a Director, Officer or Service Provider
  ceases to be so engaged by the Company for any reason other than death, such
  Director, Officer or Service Provider shall have such rights to exercise any
  Option not exercised prior to such termination within the lesser of six months
  from the date of the termination or the Expiry Date of the Option provided that
  if the termination is for just cause the right to exercise the Option shall
  terminate on the date of termination unless otherwise determined by the Directors.

 4.06               
  Death of Optionee If a Director, Officer or Service Provider dies prior
  to the expiry of his Option, his legal representatives may, within the lesser
  of one year from the date of the optionee's death or the Expiry Date of the
  Option, exercise that portion of an Option granted to the Director, Officer
  or Service Provider under this Plan which remains outstanding. 

 4.07               
  Assignment No Option granted under this Plan or any right thereunder
  or in respect thereof shall be transferable or assignable otherwise than by
  will or pursuant to the laws of succession except that, if permitted by all
  applicable Securities Laws and the rules and policies of the Exchange, an optionee
  shall have the right to assign any Option granted to him hereunder to a trust
  or similar legal entity established by such optionee. 

 4.08               
  Notice Options shall be exercised only by written notice to the Company
  in accordance with the terms and conditions of this Plan and the applicable
  Option Agreement. 

 4.09               
  Payment Options may be exercised in whole or in part at any time prior
  to their lapse or termination. Shares purchased by an optionee on exercise of
  an Option shall be paid for in full at the time of their purchase. 

 4.10               
  Securities Laws Notwithstanding any other provision contained in this
  Plan, no holder may exercise any Option granted under this Plan and no Shares
  may be issued upon exercise of an Option unless such exercise and issuance are
  in compliance with all applicable Securities Laws. 

 PART 5  

 RESERVE OF SHARES FOR OPTIONS 

 5.01               
  Sufficient Authorized Shares to be Reserved Whenever the Memorandum or
  Articles of the Company limit the number of authorized Shares, a sufficient
  number of Shares shall be reserved by the Board to satisfy the exercise of Options
  granted under this Plan. Shares that were the subject of Options that have lapsed
  or terminated shall thereupon no longer be in reserve and may once again be
  subject to an Option granted under this Plan. 

 5.02               
  Maximum Number of Shares to be Reserved Under Plan The aggregate number
  of Shares which may be subject to issuance pursuant to Options granted under
  this Plan shall be 9,000,000 shares. 

 5.03               
  Maximum Number of Shares Reserved Under no circumstances shall this Plan,
  together with all of the Company's other previously established or proposed
  stock options, stock option plans, employee stock purchase plans or any other
  compensation or incentive mechanisms involving the issuance or potential issuance
  of Shares, result, at any time, in: 

	 	(a)	the number of Shares reserved for issuance
        pursuant to stock options granted to Insiders exceeding 10% of the Outstanding
        Issue, subject to increase upon shareholder and Exchange approval;

	 	 	 
	 	(b)	the issuance to Insiders, within a one
        year period, of a number of Shares exceeding 10% of the Outstanding Issue;
        or

	 	 	 
	 	(c)	the issuance to any one Insider and
        such Insider's associates, within a one year period, of a number of Shares
        exceeding 5% of the Outstanding Issue.

 - 22 - 

 PART 6  

 OPTIONS GRANTED TO U.S. PARTICIPANTS 

 6.01               
  Maximum Number of Shares for Incentive Stock Options Notwithstanding
  any other provision of this Plan to the contrary, the number of Shares available
  for granting Incentive Stock Options under the Plan may not exceed 9,000,000,
  subject to adjustment as provided in this Plan and subject to the provisions
  of section 422 and 424 of the Code. 

 6.02               
  Designation of Options The Option Agreement relating to any Option granted
  to a U.S. Participant shall specify whether such Option is an Incentive Stock
  Option or a Nonqualified Stock Option. If no such specification is made, the
  Option will be (a) an Incentive Stock Option if all of the requirements under
  the Code are satisfied or (b) in all other cases, a Nonqualified Stock Option.

 6.03               
  Special Requirements for Incentive Stock Options In addition to the other
  provisions of this Plan (and notwithstanding any other provision of this Plan
  to the contrary), the following limitations and requirements will apply to an
  Incentive Stock Option: 

	 	(a)	An Incentive Stock Option may be granted
        only to employees (including a Director or Officer who is also an employee)
        of the Company (or of any Parent or Subsidiary of the Company). For purposes
        of this Part 6, the term "employee" shall mean a person who is an employee
        for purposes of the Code.

	 	 	 
	 	(b)	The Board will not grant Incentive Stock
        Options in which the aggregate Fair Market Value (determined as of the
        date of grant) of the Shares with respect to which Incentive Stock Options
        are exercisable for the first time by any U.S. Participant during any
        calendar year (under this Plan and all other plans of the Company and
        of any Parent or Subsidiary of the Company) exceeds US$100,000 or any
        limitation subsequently set forth in section 422(d) of the Code.

	 	 	 
	 	(c)	The exercise price payable per Share
        upon exercise of an Incentive Stock Option will not be less than 100%
        of the Fair Market Value of a Share on the date of grant of such Incentive
        Stock Option; provided, however, that, in the case of the grant of an
        Incentive Stock Option to a U.S. Participant who, at the time such Incentive
        Stock Option is granted, is a 10% Shareholder, the exercise price payable
        per Share upon exercise of such Incentive Stock Option will be not less
        than 110% of the Fair Market Value of a Share on the date of grant of
        such Incentive Stock Option.

	 	 	 
	 	(d)	An Incentive Stock Option will terminate
        and no longer be exercisable no later than 10 years after the date of
        grant of such Incentive Stock Option; provided, however, that in the case
        of a grant of an Incentive Stock Option to a U.S. Participant who, at
        the time such Incentive Stock Option is granted, is a 10% Shareholder,
        such Incentive Stock Option will terminate and no longer be exercisable
        no later than 5 years after the date of grant of such Incentive Stock
        Option.

	 	 	 
	 	(e)	If a U.S. Participant who has been granted
        Incentive Stock Options ceases to be employed by the Company (or by any
        Parent or Subsidiary of the Company) for any reason, whether voluntary
        or involuntary, other than death, permanent disability or just cause,
        such Incentive Stock Option shall be exercisable by the U.S. Participant
        (to the extent such Incentive Stock Option was Vested on the date of cessation
        of employment) at any time prior to the earlier of (i) the date that is
        three months after the date of cessation of employment or (ii) the expiration
        of the term of such Incentive Stock Option. If a U.S. Participant who
        has been granted Incentive Stock Options ceases to be employed by the
        Company (or by any Parent or Subsidiary of the Company) because of the
        death or permanent disability of such U.S. Participant, such U.S. Participant,
        such U.S. Participant's personal representatives or administrators, or
        any person or persons to whom such Incentive Stock Option is transferred
        by will or the applicable laws of descent and distribution, may exercise
        such Incentive Stock Option (to the extent such Incentive Stock Option
        was vested on the date of death or permanent disability, as the case may
        be) at any time prior to the earlier of (i) the date that is six (6) months
        after the date of death or permanent disability, as the case may be, or
        (ii) the expiration of the term of such Incentive Stock Option. If a U.S.
        Participant who has been granted Incentive Stock Options ceases to

 - 23 - 

	 	 	be employed by the Company (or by any Parent or Subsidiary
        of the Company) for cause, the right to exercise such Incentive Stock
        Option will terminate on the date of cessation of employment, unless otherwise
        determined by the Board. For purposes of this Part 6, the term "permanent
        disability" has the meaning assigned to that term in section 22(e)(3)
        of the Code.

	 	 	 
	 	(f) 	An Incentive Stock Option granted to a U.S. Participant
        may be exercised during such U.S. Participant's lifetime only by such
        U.S. Participant.

	 	 	 
	 	(g)	An Incentive Stock Option granted to a U.S. Participant
        may not be transferred, assigned or pledged by such U.S. Participant,
        except by will or by the laws of descent and distribution.

PART 7

 CHANGES IN OPTIONS 

 7.01               
  Share Consolidation or Subdivision In the event that the Shares are at
  any time subdivided or consolidated, the number of Shares reserved for granting
  of Options and the price payable for any Shares that are then subject to Options
  shall be adjusted accordingly.

 7.02               
  Stock Dividend In the event that the Shares are at any time changed as
  a result of the declaration of a stock dividend thereon, the number of Shares
  reserved for granting of Options and the price payable for any Shares that are
  then subject to Options may be adjusted by the Board to such extent as they
  deem proper in their absolute discretion.

 7.03               
  Effect of a Take-Over Bid If a bona fide offer (an "Offer") for
  Shares is made to the optionee or to shareholders of the Company generally or
  to a class of shareholders which includes the optionee, which Offer, if accepted
  in whole or in part, would result in the offeror becoming a control person of
  the Company, within the meaning of subsection 1(1) of the Securities Act, the
  Company shall, immediately upon receipt of notice of the Offer, notify each
  optionee of full particulars of the Offer, whereupon all Shares subject to such
  Option will become Vested and the Option may be exercised in whole or in part
  by the optionee so as to permit the optionee to tender the Shares received upon
  such exercise, pursuant to the Offer. However, if:

	 	(a)	the Offer is not completed within the
        time specified therein; or

	 	 	 
	 	(b)	all of the Shares tendered by the optionee
        pursuant to the Offer are not taken up or paid for by the offeror in respect
        thereof,

then the Shares received upon such exercise, or in the case
  of clause (b) above, the Shares that are not taken up and paid for, may be returned
  by the optionee to the Company and reinstated as authorized but unissued Shares
  and with respect to such returned Shares, the Option shall be reinstated as
  if it had not been exercised and the terms upon which such Shares were to become
  Vested pursuant to this section shall be reinstated. If any Shares are returned
  to the Company under this section 7.03, the Company shall immediately refund
  the exercise price to the optionee for such Shares.

 7.04               
  Acceleration of Expiry Date If an Offer is made by an offeror at any
  time when an Option granted under the Plan remains unexercised, in whole or
  in part the Directors may, upon notifying each optionee of full particulars
  of the Offer, declare all Shares issuable upon the exercise of Options granted
  under the Plan, Vested, and declare that the Expiry Date for the exercise of
  all unexercised Options granted under the Plan is accelerated so that all Options
  will either be exercised or will expire prior to the date upon which Shares
  must be tendered pursuant to the Offer.

 7.05               
  Effect of a Change of Control If a Change of Control occurs, all Shares
  subject to each outstanding Option will become Vested, whereupon such Option
  may be exercised in whole or in part by the optionee.

 - 24 - 

 PART 8  

 EXCHANGE'S RULES AND POLICIES APPLY 

 8.01               
  Exchange's Rules and Policies Apply This Plan and the granting and exercise
  of any Options hereunder are also subject to such other terms and conditions
  as are set out from time to time in the rules and policies on stock options
  of the Exchange and any securities commission having authority and such rules
  and policies shall be deemed to be incorporated into and become a part of this
  Plan. In the event of an inconsistency between the provisions of such rules
  and policies and of this Plan, the provisions of such rules and policies shall
  govern. 

 PART 9  

 AMENDMENT OF PLAN 

 9.01               
  Board May Amend The Board may, by resolution, amend or terminate this
  Plan, but no such amendment or termination shall, except with the written consent
  of the optionees concerned, affect the terms and conditions of Options previously
  granted under this Plan which have not then been exercised or terminated. 

 9.02               
  Exchange Approval Any amendment to this Plan or Options granted pursuant
  to this Plan shall not become effective until such Exchange and shareholder
  approval as is required by Exchange Policy and Securities Laws has been received.

 PART 10  

 MISCELLANEOUS 

 10.01               
  Other Plans Not Affected This Plan is in addition to any other existing
  plans and shall not in any way affect the policies or decisions of the Board
  in relation to the remuneration of Directors, Officers and Service Providers.

 10.02               
  No Rights Until Option Exercised An optionee shall be entitled to the
  rights pertaining to share ownership, such as to dividends, only with respect
  to Shares that have been fully paid for and issued to him upon exercise of an
  Option. 

 10.03               
  No Right to Employment This Plan will not confer upon any optionee any
  right with respect to continuation of such optionee's employment, consulting
  or other service relationship with the Company, and will not interfere in any
  way with the Company's right to terminate such optionee's employment, consulting
  or other service relationship at any time, with or without cause. 

 10.04               
  U.S. Tax Withholding In order to comply with all applicable federal or
  state income tax laws or regulations, the Company may take such action as it
  deems appropriate to ensure that all applicable U.S. federal or state payroll,
  withholding, income or other taxes that are the sole and absolute responsibility
  of a U.S. Participant are withheld or collected from such U.S. Participant.
  For the purposes of assisting a U.S. Participant in paying all or a portion
  of the U.S. federal and state taxes to be withheld or collected upon exercise
  of an Option, the Board, in its discretion and subject to such additional terms
  and conditions as it may adopt, may permit a U.S. Participant, subject to applicable
  laws, to satisfy such tax obligation by (a) electing to have the Company withhold
  a portion of the Shares otherwise to be delivered upon exercise of such Option
  having a Fair Market Value equal to the amount of such taxes or (b) delivering
  to the Company Shares (other than Shares issuable upon exercise of such Option)
  having a Fair Market Value equal to the amount of such taxes. The election,
  if any, must be made on or before the date that the amount of tax to be withheld
  is determined. 

 10.05               
  No Trust Fund Neither this Plan nor any Option will create or be construed
  to create a trust or separate fund of any kind or a fiduciary relationship between
  the Company and an optionee or any other person. To the extent that any optionee
  acquires a right to receive payments from the Company pursuant to an Option,
  such right will be no greater than the right of any unsecured general creditor
  of the Company. 

 - 25 - 

 10.06               
  Governing Law The validity, construction and effect of this Plan and
  any Option Agreement will be determined in accordance with the internal laws,
  and not the law of conflicts, of the Province of British Columbia and the laws
  of Canada applicable therein. 

 10.07               
  Effective Date This Plan shall become effective upon the later of the
  date of acceptance for filing of this Plan by the Exchange and the approval
  of this Plan by the shareholders of the Company; provided, however, that Options
  may be granted under this Plan prior to the receipt of approval of the Exchange.
  In the event that this Plan is not adopted by the shareholders of the Company
  within 12 months after approval by the Board, this Plan will remain effective;
  provided, however, that any Incentive Stock Options granted under the Plan shall
  be deemed to be Nonqualified Stock Options. 

 10.08               
  Term of Plan No Options shall be granted under the Plan after 10 years
  from the earlier of the date of adoption of the Plan by the Board or the date
  of shareholder approval of the Plan. However, unless otherwise expressly provided
  in the Plan or in an applicable Option Agreement, any Option theretofore granted
  may extend beyond the end of such 10-year period, and the authority of the Board
  provided for hereunder with respect to the Plan and any Options, and the authority
  of the Board to amend the Plan, shall extend beyond the end of such 10-year
  period. 

 EFFECTIVE DATE OF PLAN: May 11, 2004 

 - 26 - 

 Exhibit A  

 NOVAGOLD RESOURCES INC. OPTION AGREEMENT  

                This
  Option Agreement is entered into between NovaGold Resources Inc. (the "Company")
  and the Optionee named below pursuant to the 2004 Stock Option Plan (the "Plan"),
  a copy of which is attached hereto, and confirms that: 

	1. 	on [insert grant date] (the "Grant Date"); 
	 	 
	2. 	[insert name] (the "Optionee"); 
	 	 
	3. 	was granted the option (the "Option") to purchase [insert # of
      shares] common shares (the "Option Shares") of the Company; 
	 	 
	4. 	for the price (the "Option Price") of $• per Option Share;
    
	 	 
	5. 	which shall be exercisable ("Vested") on • , 200•;
    
	 	 
	6.	terminating on the [insert date] (the "Expiry Date"); 

all on the terms and subject to the conditions set out in the
  Plan. For greater certainty, once Option Shares have become Vested, they continue
  to be exercisable until the termination or cancellation thereof as provided
  in this Option Agreement and the Plan. 

                This
  Option shall be exercisable by delivery of an Exercise Notice in the form attached
  as Appendix 1, duly completed and signed by the Optionee. 

                By
  signing this Option Agreement, the Optionee acknowledges that the Optionee has
  read and understands the Plan and agrees to the terms and conditions of the
  Plan and this Option Agreement. 

                IN
  WITNESS WHEREOF the parties hereto have executed this Option Agreement as of
  the • day of •, 200•. 

	 	 	 	NOVAGOLD RESOURCES INC.
	 	 	  	 
	 	 	Per:	 
	OPTIONEE	 	 	Authorized Signatory

 - 27 - 

 Exhibit B  

 NOVAGOLD RESOURCES INC. OPTION AGREEMENT FOR U.S. PARTICIPANT
   

                This
  Option Agreement is entered into between NovaGold Resources Inc. (the "Company")
  and the Optionee named below pursuant to the 2004 Stock Option Plan (the "Plan"),
  a copy of which is attached hereto, and confirms that: 

	1. 	on •, 200• (the
        "Grant Date"); 

	 	 	 
	2.	• (the "Optionee");
      

	 	 
	3. 	was granted the option (the
        "Option") to purchase • common shares (the "Option Shares")
        of the Company; 

	 	 
	4. 	for the price (the "Option
        Price") of $• per Option Share; 

	 	 
	5. 	which shall be exercisable
        ("Vested") as to • [if any vesting provisions apply];

	 	 
	6. 	terminating on the •,
        200• (the "Expiry Date"); and 

	 	 
	7. 	the Option is intended to
        qualify for U.S. federal income tax purposes as 

	 	 
	 	____
	an Incentive Stock Option 

	 	 	 
	 	____
	a Nonqualified Stock Option 

all on the terms and subject to the conditions set out in the Plan. For greater
  certainty, once Option Shares have become Vested, they continue to be exercisable
  until the termination or cancellation thereof as provided in this Option Agreement
  and the Plan. 

                This
  Option shall be exercisable by delivery of an Exercise Notice in the form attached
  as Appendix 1, duly completed and signed by the Optionee. 

                By
  signing this Option Agreement, the Optionee acknowledges that the Optionee has
  read and understands the Plan and agrees to the terms and conditions of the
  Plan and this Option Agreement. 

                IN
  WITNESS WHEREOF the parties hereto have executed this Option Agreement as of
  the • day of •, 200•. 

	 	 	NOVAGOLD RESOURCES INC.
	 	 	 	 
	 	 	Per:	 
	OPTIONEE	 	 	Authorized Signatory

 - 28 - 

 APPENDIX 1  

 EXERCISE NOTICE  

 NovaGold Resources Inc. 

  Suite 3454, Bentall IV 

  1055 Dunsmuir Street 

  PO Box 49215 

  Vancouver, British Columbia, Canada V7X 1K8 

  Attention: Chief Financial Officer 

                Effective
  as of today, ___________ , 20__, the undersigned optionee hereby elects to exercise
  optionee's option to purchase ________ common shares (the "Shares") of
  NovaGold Resources Inc. (the "Company") at $ _______________ per share
  under and pursuant to the 2004 Stock Option Plan (the "Plan") and the
  Stock Option Agreement dated ________ , _____ (the "Option Agreement").
  I enclose herewith a certified cheque or bank draft for $ . In connection with
  such exercise, the undersigned optionee represents, warrants and covenants to
  the Company (and acknowledges that the Company is relying thereon) that (check
  one): 

	____	 1.	The undersigned is not a U.S. person (the definition
        of which includes, but is not limited to, a person resident in the United
        States, a partnership or corporation organized or incorporated under the
        laws of the United States, and a trust or estate of which any trustee,
        executor or administrator is a U.S. person), the undersigned was not offered
        the Shares in the United States and the options are not being exercised
        within the United States or for the account or benefit of a U.S. person.
        The terms "United States" and "U.S. person" are as defined by Rule 902
        of Regulation S under the United States Securities Act of 1933, as amended
        (the "1933 Act"); or 

	 	 	 
	____	2. 	Paragraph 1 does not apply. 

The foregoing representations, warranties and covenants are
  made by the undersigned with the intent that they be relied upon in determining
  whether the Shares may be issued under applicable securities laws. The undersigned
  undertakes to notify the Company immediately of any change in any representation,
  warranty or other information relating to the undersigned set forth herein which
  takes place prior to the date of issuance of the Shares. 

 Registration of the stock certificate to the following
  name and address:  

	Name:	 	 
	 	 	 
	Address:	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 

 Delivery of the stock certificate to the following address: 

		Same as above or: 	 
	 	 	 
	Delivery	 	   
	 	 	 
	Address:	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	Attention:	 	 

	 	 
	 	(Signature of Optionee) 
	 	 
	 	(Name of Optionee - please print)<PAGE>

                                                                EXHIBIT 10.1

                 AGREEMENT FOR PURCHASE AND SALE OF PROPERTY

                                June 24, 2003

President Casinos, Inc.
800 N. First Street
St. Louis, MO 63102
Attn:  Mr. John S. Aylsworth

Re:   President Broadwater Tower
      2110 Beach Boulevard

      Biloxi, MS
Gentlemen:

This Offer to Purchase (the "Letter") constitutes a proposal from Site
Realty Inc., a California corporation, a subsidiary of Morgan Niko, Inc., a
California corporation (the "Buyer") to purchase from President Broadwater
Hotel, LLC, a Mississippi limited liability company (the "Seller") and an
indirectly owned subsidiary of President Casinos, Inc., a 100% fee simple
interest in the property commonly referred to as the President Broadwater
Tower, a 179-room hotel, situated on 10 acres 25 feet north of the U.S.
Highway 90 right-of-way (except for the southeasterly ten (10) feet of the
Property where the Property shall abut the U.S. Highway 90 right-of-way)
known as 2110 Beach Boulevard, Biloxi, Harrison County, Mississippi (the
"Property"), as more particularly described in Exhibit A, attached hereto
and by reference incorporated herein, and an access and utility easement
over the 25-foot strip separating most of the Property from U.S. Highway 90,
and the furniture, fixtures and equipment located on the Property and owned
by Seller (the "Personal Property"). This proposal supersedes any other
previous written or oral proposals or communications between the parties.

  1.  Purchase Price and Terms

  The Purchase Price for the Property and the Personal Property shall be Six
Million Five Hundred Thousand Dollars ($6,500,000) (the "Purchase Price"),
payable as follows:

  1.1  An earnest money deposit of Sixty-Five Thousand Dollars ($65,000) to
       be deposited in escrow within five (5) business days of opening
       escrow, as provided for herein;

  1.2  An additional earnest money deposit of Sixty-Five Thousand Dollars
       ($65,000) to be deposited in escrow upon approval of contingencies
       for a total deposit in escrow of One Hundred Thirty Thousand Dollars
       ($130,000);

  1.3  The remainder of the purchase price to be deposited in escrow in the
       amount of Six Million Three Hundred Seventy Thousand Dollars
       ($6,370,000), five (5) days prior to the anticipated close of escrow.

  2.  Agreement to Convey

  Seller agrees to convey, and Buyer agrees to accept, on the Date of
Closing: (a) title to the Property, subject to the Permitted Exceptions (as
hereinafter

<PAGE> 41

defined) by Special Warranty Deed; and (b) title to the Personal Property by
Bill of Sale. Such Deed shall expressly state that no interest is conveyed
in the U.S. Highway 90 right-of-way nor in the area south of such
right-of-way nor in a 25-foot strip north of said right-of-way extending
from the west side of the Property to a point 10 feet east of the east side
of the Property, and that Seller and its successors and assigns retain such
rights and the exclusive right to lease all uplands, tidelands and fastlands
south of the Property, that Buyer acquires no littoral or riparian rights,
nor other property rights of any kind in such area, all of which are
retained by Seller, and that, if requested by Seller, Buyer will grant to
Seller, its successors and assigns an exclusive perpetual easement over such
area for all lawful uses.

  3.  Contingency Period

  Commencing upon execution of this Letter, Buyer shall have a 90-day period
(the "Contingency Period") and a right of entry to the Property that shall
continue through close or termination of escrow. Seller shall cooperate with
Buyer during the Contingency Period by supplying Buyer with any title
policies or reports, surveys, legal description of the property, aerial
photos, environmental or geo-technical reports, CC&R's, all applicable
leases and leasing information, governmental notices of any type or
character in Seller's possession, all at no cost to Buyer.

  3.1  If Buyer, in Buyer's sole and absolute determination, during the
       Contingency Period finds the development of the Property not to be
       feasible, or any contingency items are disapproved, then and in that
       event Buyer may cancel this transaction without penalty and will
       provide written notice of such disapproval or termination of the
       contract to Seller and thereafter Buyer's deposit shall be returned
       and neither party shall have any further rights or responsibilities
       to the other.

  3.2  Seller shall make available to Buyer all books, records, legal
       documents and other information accessible to or known by Seller to
       be available within thirty (30) days from the date of the Agreement,
       all at no expense to Buyer. Buyer may copy any records, property
       infrastructure data, and plans prepared by Seller or in Seller's
       possession.

  4.  Contingencies

  Buyer's obligation to close escrow will be subject to, but not limited to,
Buyer's approval or waiver of the following contingencies, during the
Contingency Period. Approval or waiver shall be in the sole and absolute
discretion of Buyer. If Buyer does not approve or waive and make the
additional deposit provided by Section 1.2 by the end of the Contingency
Period, Buyer shall be deemed to have disapproved, Buyer's initial deposit
shall be refunded, and neither party shall have any further obligation to
the other.

  Except as otherwise specified in this Section 4, Buyer shall have not less
than sixty (60) days from receipt of data applicable to each contingency
item to be supplied by Seller, but with respect to items to be obtained by
Buyer no more than ninety (90) days from acceptance of this Letter, to
approve or disapprove each contingency called for herein. The contingencies
are:

                                      2

<PAGE> 42

  4.1  Buyer's approval of a title insurance commitment and extended
       coverage supplemental title report, if available, covering the
       Property and all underlying exceptions to be provided by Seller at
       Seller's expense within fifteen (15) days of the commencement of the
       Contingency Period. Buyer shall give Seller notice of objection in
       respect of any title exceptions unacceptable to Buyer within thirty
       (30) days of the commencement of the Contingency Period. Seller shall
       have the right but not the obligation to cure Buyer's title
       objections within sixty (60) days after receiving Buyer's notice of
       objection.

  4.2  Buyer acknowledges receipt of a Phase I Environmental Site Assessment
       prepared by Hazclean Environmental Consultants of Jackson,
       Mississippi. Within thirty (30) days of execution of this letter,
       Seller shall obtain at Seller's cost a letter updating such
       Assessment and permitting Buyer and Buyer's lender to rely thereon.
       Thereafter Seller shall obtain at Seller's expense such Phase II
       and/or Phase III studies as may be called for in the Phase I
       assessment. Seller shall provide any environmental, biological,
       airport or traffic studies in its possession.

  4.3  Within thirty (30) days of execution of this Letter Seller shall
       obtain at Seller's cost a current ALTA qualifying survey of the
       Property.

  4.4  Within ninety (90) days from execution of this Letter, and at no cost
       to Seller, Buyer shall complete and approve or disapprove of
       engineering and feasibility studies for Buyer's intended use of the
       Property as a hotel consisting of 75 hotel rooms, approximately
       25,000 square feet of commercial space and approximately 150
       condominiums to be built on the rear of the Property. Should Buyer
       disapprove of the costs or conditions involved, Buyer shall deliver
       to Seller all of Buyer's work product at no charge to Seller.

  4.5  Buyer's approval of any existing or proposed assessments to the
       property or planned dedications of streets or utility easements.

  4.6  Buyer's approval of all documentation: affecting the Property,
       including but not limited to, review of all documents set forth on
       Exhibit B, attached hereto and by reference incorporated herein.

  4.7  Site inspections by Buyer's personnel or other professionals engaged
       by Buyer at no cost to Seller.

  4.8  Seller shall deliver the subject property to Buyer free and clear of
       any liens, leases or encumbrances of any kind except those approved
       in writing by Buyer.

  4.9  Estoppel certificates in form and substance satisfactory to Buyer
       signed by 90 percent of the tenants of the Property; and

  4.10 Upon the approval of items 4.1 to 4.9 during the Contingency Period,
       the close of escrow shall be contingent upon all such items being
       substantially unchanged at the time of close of escrow.

  5.  Warranties

  5.1  Buyer acknowledges that Seller has not made and does not make and is

                                      3

<PAGE> 43

       unwilling to make any express or implied representations or
       warranties as to the present, past or future physical condition,
       income, expenses, operation, legality of occupancy or any other
       matter affecting or related to the Project, except for the warranties
       specifically set forth in this Letter. Buyer agrees to purchase the
       Project in its "AS IS" condition. Buyer has not relied upon, and
       Seller is not liable or bound in any manner, by any verbal or written
       statements, representations, real estate brokers' "setups" or
       information pertaining to the Project furnished by any real estate
       broker, agent, employee, or other persons unless the same are
       expressly set forth in this Letter. The delivery of the deed by
       Seller, and the acceptance of the deed by Buyer, shall be deemed to
       be the full performance and discharge of every obligation of Seller
       to be performed under this Letter prior to the Closing Date and the
       truth or waiver of every representation or warranty made by Seller in
       this Letter or in any Exhibit attached hereto or in any document,
       certificate, affidavit or other instrument delivered by Seller or its
       agents at or in connection with the Closing.

  5.2  Express Warranties.  Seller warrants as follows:

    5.2.1  Leases. The Property is subject to no leases except as listed on
           Exhibit C, attached hereto and incorporated by reference herein.

    5.2.2  Service Agreements. There are no service agreements which are not
           terminable at or before Closing except as listed on Exhibit D,
           attached hereto and incorporated by reference herein.

    5.2.3  Litigation. To the knowledge of Seller, no litigation is pending
           or threatened which affects the Property, except as listed on
           Exhibit E, attached hereto and incorporated by reference herein.

    5.2.4  Code Violations. To the knowledge of Seller, Seller has received
           no notices of uncorrected zoning or building violations or
           notices of violation or other material notices or communications
           from governmental or quasi-governmental authorities or insurance
           underwriting agencies in respect of the Property, except as
           listed on Exhibit F, attached hereto and incorporated by
           reference herein.

    5.2.5  Environmental. Seller has no knowledge of the existence or prior
           existence on the Property of any Hazardous Substance, except as
           described in the environmental assessment and update letter
           described above. "Hazardous Substance" is defined as any
           substance whose nature and/or quantity of existence, use,
           manufacture, disposal or effect, render it subject to Federal,
           state or local regulations, investigation, remediation or removal
           as potentially injurious to public health or welfare.

    5.2.6  Lender Release. Seller will use commercially reasonable efforts
           to obtain the agreement of the holder of the first deed of trust
           encumbering the Property to release the Property at Closing upon
           receipt of the Purchase Price, less commissions, adjustments and
           prorations.

    5.2.7  Knowledge. The knowledge of Seller means the knowledge of Craig
           Adams.

                                      4

<PAGE> 44

    5.2.8  Survival.  The foregoing warranties shall survive the Closing by
           eighteen (18) months.

  6.  Escrow

  Within five (5) business days after Seller provides evidence to Buyer that
the holder of the first deed of trust encumbering the Property has agreed to
release such deed of trust at Closing upon receipt of the Purchase Price,
less commissions, prorations and adjustments, the Parties shall open Escrow
(the "Escrow") for the purchase and sale of the property. First American
Title Insurance Company, , , (the "Title Company") shall be escrow holder
and shall provide Preliminary and Final Title reports and issue a Title
Policy. If such agreement is not received within forty-five (45) days after
execution of this Letter by both parties, this Letter shall be of no further
effect and neither party shall have any obligation to the other.

  7.  Closing

  Subject to the provisions of this Letter, the Closing Documents (as
hereinafter defined) shall be delivered by 12:00 noon, central time, on the
business day that is fifteen (15) days after the approval of all
contingencies set forth herein (the "Approval Date"). The "Date of Closing"
or "Closing" shall take place within thirty (30) days thereafter at the
office of an agent of the Title Company, unless otherwise agreed upon in
writing. Contact for all title insurance requirements should be made through
the following office: Rowan H. Taylor, Jr., P.A., 3670 Lakeland Lane,
Jackson, Mississippi 39216, (601) 366-8200.

  8.  Adjustments and Prorations

  All taxes, including, without limitation, real estate taxes and personal
property taxes, collected rents, charges for utilities, including water,
sewer, and fuel oil, and for utility services, maintenance services,
maintenance and service contracts, all operating costs and expenses, and all
other rents, income, costs, and charges of every kind which in any manner
relate to the ownership of the Property (but not including insurance
premiums) shall be prorated to the Date of Closing, except that, if Seller
does not receive the Purchase Price (by receipt of wired funds or by receipt
in hand of an official bank cashier's check) on the Date of Closing, all
prorations shall be made as of the following business day. If the amount of
said taxes, assessments, or rents is not known on the Date of Closing, they
shall be apportioned on the basis of the amounts for the preceding year,
with a reapportionment as soon as the new amounts can be ascertained. If
such taxes and assessments shall thereafter be reduced by abatement, the
amount of such abatement, less the reasonable cost of obtaining the same,
shall be apportioned between the parties, provided that neither party shall
be obligated to institute or prosecute proceedings for an abatement unless
otherwise agreed. Buyer shall be responsible for the payment of any
assessments or notice of assessments made after the date of Date of Closing
hereof for any public improvement, provided Buyer takes title hereunder.
With respect to security deposits, if any, made by tenants at the Property
and actually received in hand by Seller, Buyer shall receive credit
therefore. Any deposits on utilities paid by Seller shall be returned to
Seller. The foregoing provisions of this Section 8 shall not apply to any
taxes, assessments, or other payments, which are directly payable by tenants
under

                                      5

<PAGE> 45

their leases (if any) or reimbursable by such tenants to the owner of the
Property, as landlord, under their leases (if any). On the Date of Closing,
Seller shall deliver to Buyer all inventories of supplies on hand at the
Property owned by Seller, if any, at no additional cost to Buyer. Seller
shall be responsible for and discharge as and when due all obligations
related to the Property which had accrued at or prior to the Date of
Closing.

  9.  Deliveries

  The parties shall deliver through escrow the following:

  9.1  Seller's Deliveries. Conditioned upon performance by Buyer hereunder,
       Seller shall execute and deliver to Buyer at Closing the following
       documents ("Seller's Closing Documents"):

    9.1.1  Deed.  A special warranty deed conveying marketable title to the
           Property subject to the Permitted Exceptions;

    9.1.2  Bill of Sale.  A bill of sale, assigning and transferring to Buyer
           all of the right, title, and interest of Seller in and to the
           Personal Property;

    9.1.3  Assignment of Leases. (i) the Leases which are still in effect as
           of Closing and any new Leases entered into pursuant to Section
           7.3; (ii) a current listing of any tenant security deposits and
           prepaid rents held by Seller with respect to the Property; and
           (iii) an assignment of such Leases and security deposits, which
           will include an indemnification by Seller of Buyer for all
           landlord obligations accruing prior to the Date of Closing;

    9.1.4  Assignment of Contracts. (i) copies of all Contracts relating to
           the Property which Buyer has elected to assume; and (ii) an
           assignment of such Contracts, which will include an
           indemnification by Seller of Buyer for all owner obligations
           accruing prior to the Date of Closing;

    9.1.5  Non-Foreign Certificate. A certification that Seller is not a
           non-resident alien (a foreign corporation, partnership, trust, or
           estate as defined in the Internal Revenue Code and Treasury
           Regulations promulgated thereunder);

    9.1.6  Assignment of Warranties and Guaranties. An assignment of all
           transferable warranties and guaranties then in effect, if any,
           with respect to the Improvements or any repairs or renovations to
           such Improvements and the Personal Property being conveyed
           hereunder;

    9.1.7  Books and Records. All books and records relating exclusively to
           the Property or in the possession of Seller (other than any
           privileged, proprietary or confidential records), including
           without limitation plans and specifications and lease
           applications, as available; and

    9.1.8  Owner's Affidavit. An owner's affidavit and such other similar
           documents as are reasonably required from Seller pursuant to the
           Title Commitment as a condition precedent to the issuance of an
           owner's title insurance policy pursuant to the terms thereof.

                                      6

<PAGE> 46

    9.1.9  Other Documentation.  All other documentation reasonably necessary
           to facilitate the Close of Escrow.

  9.2  Buyer's Deliveries.  Conditioned upon performance by Seller hereunder,
       Buyer shall execute and deliver to Seller at Closing the following
       documents ("Buyer's Closing Documents"):

    9.2.1  Assumption of Leases.  An Assumption of the Leases and Security
           Deposits, which will include an indemnification by Buyer of Seller
           for all landlord obligations accruing on or after the Date of
           Closing; and

    9.2.2  Assumption of Service Contracts. An assumption of the Contracts
           which Buyer has elected to assume, which will include an
           indemnification by Buyer of Seller for all owner obligations
           accruing on or after the Date of Closing.

  9.3  Other Closing Documents. Each party shall deliver to the other party
       or the Title Company such duly executed and acknowledged or verified
       certificates, affidavits, and other usual closing documents
       respecting the power and authority to perform the obligations
       hereunder and as to the due authorization thereof by the appropriate
       corporate, partnership, or other representatives acting for it, as
       counsel for the other party or the Title Company may reasonably
       request.

    9.3.1  Closing Documents. Seller's Closing Documents, Buyer's Closing
           Documents and the documents to be delivered pursuant to this
           Letter shall hereinafter be referred to as the "Closing
           Documents."

  10.  Failure to Close Escrow

  IF, AFTER APPROVAL OF CONTINGENCIES AS PROVIDED HEREIN, BUYER FAILS TO
CLOSE ESCROW FOR ANY REASON OTHER THAN THE FAULT OF SELLER OR THE FAILURE TO
APPROVE THE CONTINGENCIES SET FORTH HEREIN, THE DEPOSIT SHALL BE KEPT BY THE
SELLER AS LIQUIDATED DAMAGES.

//s//JSA    //s//MM     [Seller's and Buyer's initials]
Should Seller fail to close as provided herein, Buyer may pursue all rights
and remedies available to Buyer under applicable laws including specific
performance or such damages as may be adjudicated by a court of law,
provided that damages shall not exceed One Hundred Thirty Thousand Dollars
($130,000.00).

  11.  Escrow Instructions

  Escrow instructions shall provide for the following:

  11.1  Buyer and Buyer's agents shall have the right of entry into the
        Property during the Term of the Contract to perform tests and
        inspections of the Property as are deemed reasonable to Buyer, but
        shall keep the Property in a lien free condition and hold the Seller
        harmless from any claims that may result from Buyer's or Buyer's
        agent's actions in this regard. Unless extended as provided herein,
        Escrow shall close, the Purchase Price shall be tendered, and title
        to the Property shall be transferred not later than thirty (30) days
        after the Contingency Period, and closing shall be subject to the

                                      7

<PAGE>  47

        following conditions:

    11.1.1  Title to the Property shall be free and clear of all liens and
            encumbrances except the Permitted Exceptions.

    11.1.2  All secured claims pertaining to the Property will have been
            discharged to the reasonable satisfaction of Buyer's counsel.

  11.2  Buyer's approval and/or waver of all contingencies set forth herein
        in Buyer's sole and absolute discretion.

  11.3 At close of escrow the parties shall bear their own customary costs.

    11.3.1  Seller shall pay for;
      11.3.1.1  Seller's Counsel

      11.3.1.2 All Recording Fees necessary to release liens 11.3.1.3 Sale
      Commission 11.3.1.4 Any and all Transfer Taxes 11.3.1.5 One-half of
      escrow fees 11.3.1.6 Basic title insurance premium and one-half cost
      of title

                insurance extended coverage
      11.3.1.7  Current survey

    11.3.2  Buyer shall pay for:
      11.3.2.1  Buyer's counsel.

      11.3.2.2 All costs related to Buyer's inspection reports 11.3.2.3
      Recording of Deed 11.3.2.4 One-half cost of extended coverage 11.3.2.5
      One-half of escrow fees

    11.3.3  The following items shall be prorated as of the date of closing:
      11.3.3.1  All expenses, including property taxes.
      11.3.3.2  All rental income.

    11.3.4  All security deposits of any nature are to be transferred to
            Buyer.
      11.3.4.1  If any of the conditions set forth herein are not satisfied
                as of the close of escrow and as a result of this fact,
                Buyer elects to cancel, the Deposit shall be returned to
                Buyer and the escrow shall be canceled. Thereafter, neither
                party shall have any rights or responsibilities to the
                other. Should Buyer elect not to cancel, then and in that
                event, Buyer may seek all remedies available under
                applicable law including specific performance, provided that
                monetary damages shall be limited to $130,000.

      11.3.4.2  Purchase Price includes the Property and the Personal
                Property, including all plans, specifications, warranties,
                permits, marketing data and materials and other
                documentation pertaining exclusively to the Property to
                which the Seller may have access or have in its possession.
                At close of escrow, Seller shall deliver to Buyer an
                assignment of the documentation, a bill of sale for the
                personal property, and a special warranty deed of the
                Property.

                                      8

<PAGE> 48

  12. Casualties or Condemnation.

  In the event that prior to the Date of Closing either the Improvements are

damaged or destroyed, in whole or in part, by fire or other cause, or any
portion of the Property becomes the subject of a condemnation proceeding by
a public or quasi-public authority having the power of eminent domain, then
either (a) the parties shall proceed with the transaction contemplated
herein, in which event Buyer shall be entitled to receive any insurance
proceeds or condemnation awards, or (b) in the event such damage,
destruction, or condemnation involves, in the reasonable estimation of
Seller, a loss in an amount in excess of ten per cent (10%) of the Purchase
Price, or loss of all or a material portion of access to the Property, Buyer
then, at its option, may terminate this Letter by notice to the Seller
within ten (10) days of Buyer's receipt of Seller's notice of such damage or
proceeding, in which case the Deposit shall be refunded, and thereafter
neither party shall have any further obligation or liability to the other by
virtue of this Letter, except as otherwise expressly provided herein.

  13. Notices.

  All notices required or permitted to be given hereunder shall be in
writing and sent by overnight delivery service (such as Federal Express), in
which case notice shall be deemed given on the day after the date sent, or
by personal delivery, in which case notice shall be deemed given on the date
received, or by certified mail, in which case notice shall be deemed given
three (3) days after the date sent, or by fax (with copy by overnight
delivery service), in which case notice shall be deemed given on the date
sent, to the appropriate address indicated below or at such other place or
places as either Buyer or Seller may, from time to time, respectively,
designate in a written notice given to the other in the manner described
above.

          To Seller:        President Casinos, Inc.
                            800 N. First Street
                            St. Louis, MO 63102
                            Attn:  Mr. John S. Aylsworth
                            Facsimile No.:  314-622-3172
                            Telephone No.: 314-622-3140

          With Copy To:     Mr. Ralph Vaclavik

                           President Casinos, Inc.

                             800 N. First Street

                            St. Louis, MO 63102 Telephone No.: 314-622-3140

          With Copy To:     Gerard K. Sandweg, Esq.
                            Thompson Coburn LLP
                            One US Bank Plaza
                            St. Louis, MO  63101
                            Facsimile No.:  314-552-7104
                            Telephone No.:  314-552-6104

                                      9

<PAGE> 49

          To Buyer:         Morgan Niko, Inc.
                            6151 West Century Boulevard
                            Los Angeles, CA 90045-5314
                            Attn:  Mr. Michael D. Mayer
                            Facsimile No.:  310-577-0992
                            Telephone No.:  310-642-1996

          With Copy To:     Patrick A. Sheehan, Attorney at Law
                             179 Leneuse Street

                            Biloxi, MS 39530
                            Facsimile No.:  228-432-1107
                            Telephone No.:  228-432-1112

  14. Confidentiality.

  During the pendency of the Contingency Period and escrow, Seller shall not
enter into any agreement pertaining to the Property regarding marketing or
sale of the Property or any agreement regarding rental, management,
maintenance, repair, or other matter affecting the Property outside the
ordinary course of business without the prior written consent of Buyer.
Buyer's consent shall not be unreasonably withheld or delayed.

  15. Commission.

  Seller shall be responsible for the payment of real estate commissions or
fees, if any, incurred as a result of this transaction. Seller's liability
for commissions shall be limited to $50,000. Seller warrants that it has not
dealt with any agents or brokers other than Rob Daniels or Bill Fleischman
and Buyer shall hold Seller harmless from claims by any other agent or
broker with whom it has dealt. Buyer warrants that it has dealt with no
other broker or agent regarding this transaction other than Rob Daniels or
Bill Fleischman and Seller shall hold Buyer harmless from the claims by any
other agent with whom it has dealt.

  16. Entire Agreement.

  This Letter, executed in duplicate, sets forth the entire agreement
between the parties and may not be canceled, modified, or amended except by
a written instrument executed by both Seller and Buyer.

  17. Counterparts.

  This Letter may be executed and delivered in any number of counterparts,
each of which so executed and delivered shall be deemed to be an original
and all of which shall constitute one and the same instrument.

  18. No Reservation.

  No rights shall exist between the parties until Buyer and Seller execute
this Letter.

  This Letter is intended to be a binding statement of the general terms of
an Agreement for Purchase and Sale. It is subject to reasonable modification
as provided for in the preparation of the Escrow Instructions by the
parties, and their respective counsel.

                                     10

<PAGE> 50
  19.  Confidentiality.

  This Letter shall be between the signed parties and be maintained in
strict confidence to the general public and employees of Seller.

  20. Governing Law.

  This Letter shall be governed, interpreted and construed in accordance
with the laws of the State of Mississippi.

  21. Assignability.

  This Letter may be assigned to a limited liability company, a managing
member of which is Buyer or Michael D. Mayer. Buyer shall not be released
from any obligations hereunder by such assignments.

                                    Very truly yours,

                                    SITE REALTY, INC.

                                    By: /s/ Michael D. Mayer
                                            ---------------------------------
                                            Michael D. Mayer
                                            Chief Executive Officer

This Letter shall become a legally binding agreement when executed by the
parties hereto.

AGREED AND ACCEPTED AS TO THE ABOVE:

SELLER:

PRESIDENT BROADWATER HOTEL, LLC

BY:  BROADWATER HOTEL, INC., MEMBER MANAGER

     By: /s/  John S. Aylsworth
              ---------------------------------
     Name:    John S. Aylsworth
     Title:   President & C.O.O.
     Date:    June 24, 2003

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