Document:

exh10_14.htm

 

Exhibit 10.14

 

NOVAGOLD RESOURCES INC.

 

 

2009 NON-EMPLOYEE DIRECTORS DEFERRED

SHARE UNIT PLAN

 

 

Effective December 1, 2009, as amended May 29, 2012,

as further amended on February 6, 2014

 

  

  

  

 

 

NOVAGOLD RESOURCES INC.

 

2009 NON-EMPLOYEE DIRECTORS DEFERRED SHARE UNIT PLAN

 

	
1.  

	
PURPOSE OF THE PLAN

 

	
1.1  

	
This Plan has been established by the Corporation to promote the interests of the Corporation by attracting and retaining qualified persons to serve on the Board and to afford such Participants an opportunity to receive a portion of their compensation for serving as a director of the Corporation in the form of securities of the Corporation.

 

	
2.  

	
PLAN DEFINITIONS AND INTERPRETATIONS

 

In this Plan, the following terms have the following meanings:

 

	
(a)  

	
“Account” means an account maintained for each Participant on the books of the Corporation which will be credited with Deferred Share Units, in accordance with the terms of the Plan.

 

	
(b)  

	
“Board” means the Board of Directors of the Corporation.

 

	
(c)  

	
“Committee” means the Compensation Committee of the Board.

 

	
(d)  

	
“Common Shares” means the common shares of the Corporation and “Common Share” shall mean a common share of the Corporation.

 

	
(e)  

	
“Corporation” means NovaGold Resources Inc. and its respective successors and assigns, and any reference in the Plan to action by the Corporation means action by or under the authority of the Board or any person or committee that has been designated for the purpose by the Board including, without limitation, the Committee.

 

	
(f)  

	
“DSU” or “Deferred Share Unit” means a bookkeeping entry equivalent in value to a Common Share credited to a Participant’s Account.

 

	
(g)  

	
“Grant” means any Deferred Share Unit credited to the Account of a Participant.

 

	
(h)  

	
“Notice of Redemption” means written notice, on a prescribed form, by the Participant, or the administrator or liquidator of the estate of the Participant, to the Corporation of the Participant’s wish to redeem his or her Deferred Share Units.

 

	
(i)  

	
“Participant” means a director of the Corporation who is designated by the Committee as eligible to participate in the Plan.

 

	
(j)  

	
“Plan” means this Deferred Share Unit Plan.

 

	
(k)  

	
“Redemption Date” means the date that a Notice of Redemption is received by the Corporation; provided in the case of a U.S. Eligible Participant, however, the Redemption Date will be made the earlier of (i) “separation from service” within the meaning of Section 409A, or (ii) within 90 days of the U.S. Eligible Participant’s death.

 

	
(l)  

	
“Reorganization” means any (i) capital reorganization, (ii) merger, (iii) amalgamation, or (iv) arrangement or other scheme of reorganization.

 

  

  

  

 

	
(m)  

	
“Section 409A” means Section 409A of the U.S. Internal Revenue Code of 1986, as amended, and the Treasury Regulations promulgated thereunder as in effect from time to time.

 

	
(n)  

	
“Security Based Compensation Arrangement” has the meaning defined in the provisions of the TSX Company Manual relating to security based compensation arrangements.

 

	
(o)  

	
“Share Price” means the closing price of a Common Share on the Toronto Stock Exchange averaged over the five (5) consecutive trading days immediately preceding either (a) in the case of a Grant, the last day of the fiscal quarter preceding the date of Grant in respect of a director, or (b) in the case of a redemption, the Redemption Date, as applicable, or in the event such shares are not traded on the Toronto Stock Exchange, the fair market value of such shares as determined by the Committee acting in good faith.

 

	
(p)  

	
“Termination Date” means the date of a Participant’s death, or retirement from, or loss of office or employment with the Corporation, within the meaning of paragraph 6801(d) of the regulations under the Income Tax Act (Canada), including the Participant’s resignation, retirement, removal from the Board, death or otherwise.

 

	
(q)  

	
“U.S. Eligible Participant” refers to a Participant who, at any time during the period from the date Deferred Share Units are granted to the Participant to the date such Deferred Share Units are redeemed by the Participant, is subject to income taxation in the United States on the income received for his or her services as a director of the Corporation and who is not otherwise exempt from U.S. income taxation under the relevant provisions of the U.S. Internal Revenue Code of 1986, as amended,  or the Canada-U.S. Income Tax Convention, as amended from time to time.

 

	
3.  

	
NON-EMPLOYEE DIRECTOR COMPENSATION

 

	
3.1  

	
Establishment of Annual Base Compensation

 

An annual compensation amount (the "Annual Base Compensation") payable to Non-Employee Directors (hereafter "Directors") of the Corporation shall be established from time-to-time by the Board. The amount of Annual Base Compensation will be reported annually in the Corporation’s management information circular.

 

	
3.2  

	
Payment of Annual Base Compensation

 

	
(a)  

	
The Annual Base Compensation shall be payable in quarterly installments, with each installment payable as promptly as practicable following the last business day of the calendar quarter to which it applies. Quarterly payments shall be pro rated if Board service commences or terminates during a calendar quarter.

 

	
(b)  

	
The Annual Base Compensation shall be paid fifty percent (50%) in Deferred Share Units and fifty percent (50%) in cash. The number of DSUs to be paid and the terms of the DSUs shall be determined as provided in the following sections of this Plan.

 

	
(c)  

	
Each Director may also elect to receive in DSUs all or part of that portion of his or her Annual Base Compensation otherwise payable in cash by completing and delivering a written election to the Corporation on or before November 15th of the calendar year ending immediately before the calendar year with respect to which the election is made.  Such election will be effective with respect to compensation payable for fiscal quarters beginning during the calendar year following the date of such election. In addition, so long a Director has not previously participated in a plan that is required to be aggregated with this Plan for purposes of Section 409A, a Director may elect on or before November 15, 2009 to receive his or her compensation for the fiscal quarter beginning December 1, 2009 in DSUs.  Further, where an individual becomes a Director for the first time during a calendar year and such individual has not previously participated in a plan that is required to be aggregated with this Plan for purposes of Section 409A, such individual may elect to participate in the Plan with respect to fiscal quarters of the Corporation commencing after the Corporation receives such individual’s written election, which election must be received by the Corporation no later than 30 days after such individual’s appointment as a Director. For greater certainty, new Directors will not be entitled to receive DSUs pursuant to an election for the quarter in which they submit their first election to the Corporation or any previous quarter.  Elections hereunder shall be irrevocable with respect to compensation earned during period to which such election relates.

 

  

  

  

 

	
(d)  

	
All DSUs granted with respect to Annual Base Compensation will be credited to the Director's Account when such Annual Base Compensation is payable (the "Payment Date").

 

	
(e)  

	
The Director's Account will be credited with the number of DSUs calculated to the nearest thousandths of a DSU, determined by dividing the dollar amount of compensation granted in DSUs on the Payment Date by the Share Price.  Fractional Shares will not be issued and any fractional entitlements will be rounded down to the nearest whole number.

 

	
(f)  

	
The Corporation may withhold from any amount payable to a Participant, either under this Plan, or otherwise, such amount as may be necessary so as to ensure that the Corporation will be able to comply with the applicable provisions of any federal, provincial, state or local law relating to the withholding of tax or other required deductions, including on the amount, if any, includable in the income of a Participant. The Corporation shall also have the right in its discretion to satisfy any such withholding tax liability by retaining, acquiring or selling on behalf of a Participant any Common Shares which would otherwise be issued or provided to a Participant hereunder.

 

	
4.  

	
ADMINISTRATION OF DSU ACCOUNTS

 

	
4.1  

	
Administration of Plan

 

The Committee shall have the power, where consistent with the general purpose and intent of the Plan and subject to the specific provisions of the Plan:

 

	
(a)  

	
to establish policies and to adopt rules and regulations for carrying out the purposes, provisions and administration of the Plan and to amend and rescind such rules and regulations from time to time;

 

	
(b)  

	
to interpret and construe the Plan and to determine all questions arising out of the Plan and any such interpretation, construction or determination made by the Committee shall be final, binding and conclusive for all purposes;

 

	
(c)  

	
to prescribe the form of the instruments used in conjunction with the Plan; and

 

	
(d)  

	
to determine which members of the Board are eligible to participate in the Plan.

 

	
4.2  

	
Redemption of Deferred Share Units

 

	
(a)  

	
Each Participant shall be entitled to redeem his or her Deferred Share Units during the period commencing on the business day immediately following the Termination Date and ending on the 90th day following the Termination Date by providing a written Notice of Redemption to the Corporation.  In the event of death of a Participant, the Notice of Redemption shall be filed by the administrator or liquidator of the estate of the Participant.  In the case of a U.S. Eligible Participant, however, the redemption will be deemed to be made on the earlier of (i) “separation from service” within the meaning of Section 409A, or (ii) within 90 days of the U.S. Eligible Participant’s death.

 

  

  

  

 

	
(b)  

	
Upon redemption, the Participant shall be entitled to receive, and the Corporation shall issue or provide:

 

	
(i)  

	
subject to the limitations set forth in Section 6.2 below, a number of Common Shares issued from treasury equal to the number of DSUs in the Participant’s Account, subject to any applicable deductions and  withholdings;

 

	
(ii)  

	
subject to and in accordance with any Applicable Law, a number of Common Shares purchased by an independent administrator of the Plan in the open market for the purposes of providing Common Shares to Participants under the Plan equal in number to the DSUs in the Participant’s Account, subject to any applicable deductions and withholdings;

 

	
(iii)  

	
the payment of a cash amount to a Participant equal to the number of DSUs multiplied by the Share Price, subject to any applicable deductions and withholdings; or

 

	
(iv)  

	
any combination of the foregoing,

 

as determined by the Corporation, in its sole discretion; provided, however that any DSUs issued prior to December 31, 2013 shall be settled in Common Shares in the manner contemplated by Section 4.2(b)(i) or Section 4.2(b)(ii), as determined by the Corporation in its sole discretion.

	
4.3  

	
Payment Notwithstanding

 

Notwithstanding any other provision of this Plan, all amounts payable to, or in respect of, a Participant hereunder shall be paid on or before December 31 of the calendar year commencing immediately after the Participant’s Termination Date.

 

	
5.  

	
ALTERATION OF NUMBER OF SHARES SUBJECT TO THE PLAN

 

	
5.1  

	
Subdivisions or Consolidations

 

In the event that the Common Shares shall be subdivided or consolidated into a different number of Common Shares or a distribution shall be declared upon the Common Shares payable in Common Shares, the number of DSUs then recorded in the Director’s Account shall be adjusted by replacing such number by a number equal to the number of Common Shares which would be held by the Director immediately after the distribution, subdivision or consolidation, should the Director have held a number of Common Shares equal to the number of DSUs recorded in the Director’s Account on the record date fixed for such distribution, subdivision or consolidation.

 

	
5.2  

	
Reorganizations

 

In the event there shall be any change, other than as specified in Section 5.1, in the number or kind of outstanding Common Shares or of any shares or other securities into which such Common Shares shall have been changed or for which they shall have been exchanged, pursuant to a Reorganization or otherwise, then there shall be substituted for each Common Share referred to in the Plan or for each share into which such Common Share shall have been so changed or exchanged, the kind of securities into which each outstanding Common Share shall be so changed or exchanged and an equitable adjustment shall be made, if required, in the number of DSUs then recorded in the Director’s Account, such adjustment, if any, to be reasonably determined by the Committee and to be effective and binding for all purposes.

 

  

  

  

 

	
5.3  

	
Adjustments

 

In the case of any such substitution, change or adjustment as provided for in this Section 5, the variation shall generally require that the number of DSUs then recorded in the Director’s Account prior to such substitution, change or adjustment will be proportionately and appropriately varied.

 

	
6.  

	
MAXIMUM NUMBER OF SHARES TO BE ISSUED

 

	
6.1  

	
Maximum Number of Shares

 

Subject to adjustment in accordance with Section 5, the maximum number of Common Shares which the Corporation may issue from treasury in connection with Deferred Share Units granted under the Plan shall be 150,000 Common Shares, or such greater number as may be approved from time to time by the Corporation’s shareholders.

 

	
6.2  

	
Maximum Number of Shares to Insiders

 

The maximum number of Common Shares issuable to Insiders (as defined in the TSX Company Manual) pursuant to Section 4.2(b)(i) of the Plan, together with any Common Shares issuable pursuant to any other Security Based Compensation Arrangement, at any time, shall not exceed 10% of the total number of outstanding Common Shares.  The maximum number of Common Shares issued to Insiders pursuant to Section 4.2(b)(i) of the Plan, together with any Common Shares issued pursuant to any other Security Based Compensation Arrangement, within any one year period, shall not exceed 10% of the total number of outstanding Common Shares.

 

	
7.  

	
AMENDMENT, SUSPENSION OR TERMINATION OF THE PLAN

 

	
7.1  

	
Amendment to the Plan

 

The Board may at any time, and from time to time, and without shareholder approval, amend any provision of the Plan, subject to any regulatory or stock exchange requirement at the time of such amendment, including, without limitation:

 

	
(a)  

	
for the purposes of making formal minor or technical modifications to any of the provisions of the Plan including amendments of a “clerical” or “housekeeping” nature;

 

	
(b)  

	
to correct any ambiguity, defective provision, error or omission in the provisions of the Plan;

 

	
(c)  

	
amendments to the termination provisions of Section 7.2;

 

	
(d)  

	
amendments necessary or advisable because of any change in applicable securities laws;

 

	
(e)  

	
amendments to the transferability of Deferred Share Units provided for in Section 8.9;

 

	
(f)  

	
amendments to Section 4.1 relating to the administration of the Plan;

 

	
(g)  

	
any other amendment, fundamental or otherwise, not requiring shareholder approval under applicable laws or the rules of the Toronto Stock Exchange;

 

provided, however, that:

 

  

  

  

 

	
(h)  

	
no such amendment of the Plan may be made without the consent of each affected Participant in the Plan if such amendment would adversely affect the rights of such affected Participant(s) under the Plan; and

 

	
(i)  

	
shareholder approval shall be obtained in accordance with the requirements of the Toronto Stock Exchange for any amendment:

 

	
(i)  

	
to Section 6.1 in order to increase the maximum number of Deferred Share Units which may be issued under this Plan (other than pursuant to Section 5);

 

	
(ii)  

	
to Section 7.1 in any manner; or

 

	
(iii)  

	
to the definition of “Participant”.

 

	
7.2  

	
Plan Termination

 

The Committee may decide to discontinue granting awards under the Plan at any time in which case no further Deferred Share Units shall be awarded or credited under the Plan.  Any Deferred Share Units which remain outstanding in a Participant’s Account at that time shall continue to be dealt with according to the terms of the Plan.  The Plan shall terminate when all payments owing pursuant to Section 4.2 of the Plan have been made and all Deferred Share Units have been cancelled in all Participants’ Accounts

 

	
8.  

	
GENERAL PROVISIONS

 

	
8.1  

	
Assignability

 

No right to receive payment of deferred compensation or retirement awards, DSUs and other benefits under the Plan shall be transferable or assignable by a Participant except by will or laws of descent and distribution.

 

	
8.2  

	
Unfunded Plan

 

Unless otherwise determined by the Committee, the Plan shall be unfunded.  To the extent any Participant or his or her estate holds any rights by virtue of a grant of Deferred Share Units under the Plan, such rights (unless otherwise determined by the Committee) shall be no greater than the rights of an unsecured creditor of the Corporation.

 

	
8.3  

	
Final Determination

 

Any determination or decision by or opinion of the Committee made or held pursuant to the terms of the Plan shall be final, conclusive and binding on all parties concerned. All rights, entitlements and obligations of Participants under the Plan are set forth in the terms of the Plan and cannot be modified by any other documents, statements or communications, except by Plan amendments referred to in Section 7.1 of the Plan.

 

	
8.4  

	
No Right to Employment

 

Participation in the Plan shall not be construed to give any Participant a right to be retained as a Director.

 

	
8.5  

	
No Other Benefit

 

  

  

  

 

No amount will be paid to, or in respect of, a Participant under the Plan to compensate for a downward fluctuation in the price of Common Shares nor will any other form of benefit be conferred upon, or in respect of, a Participant for such purpose.

 

	
8.6  

	
No Shareholder Rights

 

Under no circumstances shall Deferred Share Units be considered Common Shares nor shall they entitle any Participant to exercise voting rights or any other rights attaching to the ownership of Common Shares nor shall any Participant be considered the owner of Common Shares by virtue of the award of Deferred Share Units.

 

	
8.7  

	
Reorganization of the Corporation

 

The existence of any Deferred Share Units shall not affect in any way the right or power of the Corporation or its shareholders to make or authorize any adjustment, recapitalization, reorganization or other change in the Corporation’s capital structure or its business, or any amalgamation, combination, merger or consolidation involving the Corporation or to create or issue any bonds, debentures, shares or other securities of the Corporation or the rights and conditions attaching thereto or to affect the dissolution or liquidation of the Corporation or any sale or transfer of all or any part of its assets or business, or any other corporate act or proceeding, whether of a similar nature or otherwise.

 

	
8.8  

	
Successors and Assigns

 

The Plan shall be binding on all successors and assigns of the Corporation.

 

	
8.9  

	
General Restrictions and Assignment

 

Except as required by law, the rights of a Participant under the Plan are not capable of being anticipated, assigned, transferred, alienated, sold, encumbered, pledged, mortgaged or charged and are not capable of being subject to attachment or legal process for the payment of any debts or obligations of the Participant.

 

	
8.10  

	
Section 409A

 

It is intended that the provisions of this Plan comply with Section 409A, and all provisions of this Plan shall be construed and interpreted in a manner consistent with the requirements for avoiding taxes or penalties under Section 409A.  Notwithstanding anything in the Plan to the contrary, the following will apply with respect to the rights and benefits of U.S. Eligible Participants under the Plan:

 

	
  

	
(a)

	
Except as permitted under Section 409A, any deferred compensation (within the meaning of Section 409A) payable to or for the benefit of a U.S. Eligible Participant may not be reduced by, or offset against, any amount owing by the U.S. Eligible Participant to the Corporation or any of its affiliates.

 

	
  

	
(b)

	
If a U.S. Eligible Participant becomes entitled to receive payment in respect of any Deferred Share Units as a result of his or her “separation from service” (within the meaning of Section 409A), and the U.S Eligible Participant is a “specified employee” (within the meaning of Section 409A) at the time of his or her separation from service, and the Committee makes a good faith determination that (i) all or a portion of the Deferred Share Units constitute “deferred compensation” (within the meaning of Section 409A) and (ii) any such deferred compensation that would otherwise be payable during the six-month period following such separation from service is required to be delayed pursuant to the six-month delay rule set forth in Section 409A in order to avoid taxes or penalties under Section 409A, then payment of such “deferred compensation” shall not be made to the U.S Eligible Participant before the date which is six months after the date of his or her separation from service (and shall be paid in a single lump sum on the first day of the seventh month following the date of such separation from service) or, if earlier, the U.S Eligible Participant’s date of death.

 

  

  

  

 

	
  

	
(c)

	
A U.S. Eligible Participant’s status as a specified employee shall be determined by the Corporation as required by Section 409A on a basis consistent with the regulations under Section 409A and such basis for determination will be consistently applied to all plans, programs, contracts, agreements, etc. maintained by the Corporation that are subject to Section 409A.

 

	
  

	
(d)

	
Each U.S Eligible Participant, any beneficiary or the U.S Eligible Participant’s estate, as the case may be, is solely responsible and liable for the satisfaction of all taxes and penalties that may be imposed on or for the account of such U.S Eligible Participant in connection with this Plan (including any taxes and penalties under Section 409A), and neither the Corporation nor any affiliate shall have any obligation to indemnify or otherwise hold such U.S Eligible Participant or beneficiary or the U.S Eligible Participant’s estate harmless from any or all of such taxes or penalties.

 

	
  

	
(e)

	
In the event that the Committee determines that any amounts payable hereunder will be taxable to a Participant under Section 409A prior to payment to such Participant of such amount, the Corporation may (i) adopt such amendments to the Plan and Deferred Share Units and appropriate policies and procedures, including amendments and policies with retroactive effect, that the Committee determines necessary or appropriate to preserve the intended tax treatment of the benefits provided by the Plan and Deferred Share Units hereunder and/or (ii) take such other actions as the Committee determines necessary or appropriate to avoid or limit the imposition of an additional tax under Section 409A.

 

	
  

	
(f)

	
In the event the Corporation terminates the Plan in accordance with Section 7, the time and manner of payment of amounts that are subject to Section 409A will be made in accordance with the rules under Section 409A.  The Plan will not be terminated except as permitted under Section 409A.

 

	
8.11  

	
Forfeiture Provision

 

If a Participant is subject to tax under the Income Tax Act (Canada) and also is a U.S. Eligible Participant with respect to DSUs, the following special rules regarding forfeiture of such Deferred Share Units will apply if the Participant’s DSUs are subject to Section 409A.  For greater clarity, these forfeiture provisions are intended to avoid adverse tax consequences under Section 409A and/or under paragraph 6801(d) of the regulations under the Income Tax Act (Canada), that may result because of the different requirements as to the time of settlement of Deferred Share Units with respect to a Participant’s “separation from service” (within the meaning of Section 409A) (“Separation From Service”) and his retirement or loss of office (under tax laws of Canada).   If a Participant otherwise would be entitled to payment of DSUs in any of the following circumstances, such DSUs shall instead be immediately and irrevocably forfeited (for greater certainty, without any compensation therefore):

 

	
  

	
(a)

	
a Participant experiences a Separation From Service as a result of a permanent decrease in the level of services provided to less than 20% of his past service in circumstances that do not constitute a retirement from, or loss of office or employment with, the Corporation or an affiliate thereof, within the meaning of paragraph 6801(d) of the regulations under the Income Tax Act (Canada); or

 

	
  

	
(b)

	
a Participant experiences a Separation From Service upon ceasing to be a director while continuing to provide services as an employee in circumstances that do not constitute a retirement from, or loss of office or employment with, the Corporation or an affiliate thereof, within the meaning of paragraph 6801(d) of the regulations under the Income Tax Act (Canada); or

 

  

  

  

 

	
  

	
(c)

	
a Participant experiences a serious disability that continues for more than 29 months in circumstances that constitute a Separation From Service and do not constitute a retirement from, or loss of office or employment with, the Corporation or an affiliate thereof, within the meaning of paragraph 6801(d) of the regulations under the Income Tax Act (Canada); or

 

	
  

	
(d)

	
a Participant experiences a retirement from, or loss of office or employment with, the Corporation or an affiliate thereof, within the meaning of paragraph 6801(d) of the regulations under the Income Tax Act (Canada) by virtue of ceasing employment as both an employee and as a director, but he continues to provide services as an independent contractor such that he has not experienced a Separation From Service.

 

	
8.12  

	
Interpretation

 

In this text, words importing the singular meaning shall include the plural and vice versa, and words importing the masculine shall include the feminine and neuter genders.

 

	
8.13  

	
Governing Law

 

The validity, construction and effect of the Plan and any actions taken or relating to the Plan shall be governed by the laws of the Province of British Columbia and the federal laws of Canada applicable therein.

 

	
8.14  

	
Severability

 

The invalidity or unenforceability of any provision of the Plan shall not affect the validity or enforceability of any other provision and any invalid or unenforceable provision shall be severed from the Plan.

 

	
8.15  

	
Effective Date

 

 

The effective date of this Plan shall be December 1, 2009, as amended May 29, 2012, as further amended February 6, 2014.Unassociated Document

 

Exhibit 10.15

 

EMPLOYMENT AGREEMENT

BETWEEN:

	
  

	
GREG LANG, Business person, of 5 Cobblewood Cove, Sandy, UT, USA, 84092

(the “Executive”)

AND:

	
  

	
NOVAGOLD RESOURCES INC., a company incorporated pursuant to the laws of Nova Scotia, extra-provincially registered and having its registered office in British Columbia at Suite 2300 – 200 Granville Street, Vancouver, British Columbia, V6C 1S4

	
  

	
(the “Company”)

WHEREAS:

A. The Company is a natural resource company currently engaged in the acquisition and exploration of mineral properties;

B. The Company wishes to employ and the Executive wishes to supply his services in the capacity of President & CEO, on the terms and conditions set out in this Agreement;

C. The Company and the Executive desire that this employment relationship and the terms thereof be formally embodied in this Agreement;

D. NovaGold Resources Alaska, Inc. (“NovaGold Alaska’) is a wholly owned subsidiary of the Company;

E. NovaGold Alaska wishes to employ the Executive, and the Executive wishes to supply his services, in the capacity of President & CEO of the NovaGold Alaska, on the terms and conditions set out in a separate employment agreement executed contemporaneously with the execution of this Agreement and dated January 9, 2012 (the “U.S. Agreement”);

F. The Company, NovaGold Alaska and the Executive intend that during the term of this Agreement, the Executive will serve as President and CEO of the Company and as President and CEO of NovaGold Alaska, and that a breach or termination by either party of this Agreement will be considered a breach or termination of the U.S. Agreement, and vice versa;

THEREFORE in consideration of the recitals, the following covenants and the payment of one dollar made by each party to the other, the receipt and sufficiency of which are acknowledged by each party, the parties agree on the following terms:

  

  

  

	
1.  

	
ENGAGEMENT AND DURATION

 

	
1.1  

	
Engagement

 

	
  

	
The Company hereby employs the Executive as President & CEO and the Executive accepts such employment.  The Executive shall also serve as President and CEO of NovaGold Alaska pursuant to the U.S. Agreement.

 

	
1.2  

	
Term

 

	
  

	
The Executive's employment pursuant to the terms of this Agreement shall commence effective January 9, 2012 and shall continue indefinitely, unless and until terminated as set forth herein.

	
2.  

	
DUTIES

 

	
2.1  

	
Performance of Duties

 

	
  

	
The Executive shall act as President & CEO, and the Executive shall perform such services and duties as are normally provided by a President & CEO of a company in a business and of a size similar to the Company’s, and such other services and duties as may reasonably be assigned from time to time.  Without in anyway limiting the foregoing, the Executive will be responsible for providing leadership and strategic direction.

	
2.2  

	
Other Boards or Committees

 

	
  

	
The Executive’s performance of reasonable personal, civic or charitable activities or the Executive’s service on any boards or committees of any private or public companies shall not be deemed to interfere with the performance of the Executive’s services and responsibilities to the Company pursuant to this Agreement, so long as there is no conflict between the business of the Company and the business of the private or public companies.  The Executive agrees to inform the Board of Directors of the Company (“Board”) forthwith upon the Executive being nominated to any such board or committee.  The Executive’s right to participate on such boards or committees shall be subject to approval of the Board, which approval will not be unnecessarily withheld.

	
2.3  

	
Reporting

 

	
  

	
The Executive shall report directly to the Board.

	
2.4  

	
Instructions

 

	
  

	
The Executive will, subject to the terms of this Agreement, comply promptly and faithfully with the reasonable and lawful instructions, directions, requests, rules and regulations of the Board.

  

- 2 -

  

	
3.  

	
REMUNERATION AND BENEFITS

 

	
3.1  

	
Salary

 

	
  

	
The Company shall pay to the Executive for his services under this Agreement an annual salary of US$180,000, subject to all applicable statutory deductions and payable in substantially equal installments on the dates that the Company has established for paying wages to its employees.

	
3.2  

	
Annual Review

 

	
  

	
The annual salary referred to in section 3.1 shall be reviewed at least annually by the Board in consultation with the Executive.  The compensation committee of the Board ("Compensation Committee") shall make recommendations to the Board regarding appropriate salary adjustments.  The annual salary referred to in section 3.1 shall be increased by such amount as is determined by the Board of Directors or the Compensation Committee in its sole discretion taking into consideration the performance of the Executive and the performance of the Company provided, however, that in no event shall the annual salary be less than the annual salary payable in the previous fiscal year.

	
3.3  

	
Reimbursement of Expenses

 

	
  

	
The Company shall reimburse the Executive for all reasonable expenses incurred by him in the performance of this Agreement provided that the Executive provides the Company with written expense accounts with respect to each calendar month.  The Company will provide the Executive with, or reimburse the Executive for, services and fees necessary for the performance of the Executive's duties including, but not limited to, membership in the Executive's professional institute, stock information accounts and fax lines.

	
3.4  

	
Directors and Officers Liability Insurance

 

	
  

	
The Company shall provide the Executive with directors’ and officers’ liability insurance appropriate to the nature of his responsibilities under this Agreement.  The directors’ and officers’ liability insurance will be subject to the terms and conditions of the insurance policy’s coverage.

	
3.5  

	
Equipment

 

The Company shall provide the Executive with such equipment as the Executive and Board agree is necessary for performance of the Executive's duties which shall include a computer, fax machine, personal digital assistant and a cell phone for use in carrying out Company business.

 

  

- 3 -

  

	
3.6  

	
Annual Incentive Program

 

The Executive shall be entitled to participate in the Company’s Annual Incentive Program (the “Annual Incentive Program”) according to the terms of the Annual Incentive Program which Annual Incentive Program the Company may, in the Company’s discretion, change or amend from time to time.  Any payments made to the Executive by affiliates of the Company, including NovaGold Alaska, shall be taken into consideration when assessing payments made pursuant to the Annual Incentive Plan.

	
4.  

	
CONFIDENTIALITY AND NON-DISCLOSURE

 

	
4.1  

	
“Confidential Information”

 

The term “Confidential Information” means any and all information concerning any aspect of the Company not publicly disclosed, which the Executive may receive or develop as a result of his engagement by or involvement with the Company, and including all technical data, concepts, reports, programs, processes, technical information, trade secrets, systems, business strategies, financial information and other information unique to the Company.  All Confidential Information, including notes, diagrams, maps, reports, notebook pages, memoranda, sample materials and any excerpts thereof that include Confidential Information are the property of the Company or parties for whom the Company acts as agent or who are customers of the Company, as the case may be, and are strictly confidential to the Company and/or such parties.  The Executive shall not make any unauthorized disclosure or use of and shall use his best efforts to prevent unauthorized disclosure or use of such Confidential Information. This section shall not affect any damages or other remedies to which the Company may be entitled under this Agreement, at law or in equity, arising from any breaches of such liabilities or obligations by Executive, including but not limited to all remedies at law.

 

	
4.2  

	
Equitable Remedies

 

The Executive acknowledges that any unauthorized disclosure or use of such Confidential Information by the Executive may result in material damages to the Company and that the Company shall be entitled to seek injunctive relief or any other legal or equitable remedy to prohibit, prevent or enjoin unauthorized disclosure or use of Confidential Information by the Executive.  The Executive acknowledges and agrees that his unauthorized disclosure or use of Confidential Information will cause irreparable harm to the Company that could not be adequately compensated by damages.

 

	
4.3  

	
Use of Confidential Information

 

Except as authorized by the Company, the Executive will not:

 

	
(a)  

	
duplicate, transfer or disclose nor allow any other person to duplicate, transfer or disclose any of the Company’s Confidential Information; or

 

  

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(b)  

	
use the Company’s Confidential Information without the prior written consent of the Company.

 

	
4.4  

	
Protection of Confidential Information

 

The Executive will safeguard all Confidential Information at all times so that it is not exposed to or used by unauthorized persons, and will exercise at least the same degree of care used to protect the Executive’s own Confidential Information.

 

	
4.5  

	
Exception

 

The restrictive obligations set forth above shall not apply to the disclosure or use of any information which:

 

	
(a)  

	
is or later becomes publicly known under circumstances involving no breach of this Agreement by the Executive;

 

	
(b)  

	
is already known to the Executive at the time of receipt of the Confidential Information;

 

	
(c)  

	
is lawfully made available to the Executive by a third party;

 

	
(d)  

	
is disclosed by the Executive pursuant to a requirement of a governmental department or agency or disclosure is otherwise required by operation of law, provided that the Executive gives notice in writing to the Company of the required disclosure immediately upon his becoming advised of such required disclosure and provided also that the Executive delays such disclosure so long as it is reasonably possible in order to permit the Company to appeal or otherwise oppose such required disclosure and provides the Company with such assistance as the Company may reasonably require in connection with such appeal or other opposition;

 

	
(e)  

	
is disclosed to a third party under an approved confidentiality agreement; or

 

	
(f)  

	
is disclosed in the course of the Executive's proper performance of the Executive's duties under this Agreement.

 

	
4.6  

	
Removal of Information

 

The Executive will not, without the written consent of the Board, remove any information relating to the Company, or any third party with which the Company is conducting business from the premises where the Executive is working, unless required in the normal course of his duties.

 

  

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4.7  

	
New Discoveries

 

Any inventions, discoveries or improvements in systems, methods and processes made by the Executive in the course of his employment and any mineral discoveries and opportunities to acquire mineral assets or interests therein which come to the Executive will be disclosed to the Company forthwith and shall belong to and be the absolute property of the Company.

	
4.8  

	
Survival

 

The provisions of this Article 4 shall survive the termination of this Agreement.

 

	
4.9  

	
Non-Solicitation

 

The Executive shall not, for a period of six (6) months following the termination of the Executive’s employment for any reason, without the prior written consent of the Board, for his/her account or jointly with another, either directly or indirectly, for or on behalf of himself/herself or any individual, partnership, corporation or other legal entity, as principal, agent, employee or otherwise, solicit, influence, entice or induce, attempt to

solicit, influence, entice or induce:

	
(a)  

	
any person who is employed by the Company or any affiliated company to leave such employment; or

 

	
(b)  

	
any person, firm or corporation whatsoever, who or which has at any time in the last two (2) years of his/her employment with the Company or any predecessor of the Company, been a customer of the Company, an affiliate company, or of any of their respective predecessors, provided that this subsection shall not prohibit the Executive from soliciting business from any such customer if the business is in no way similar to the business carried on by the Company, an affiliated company, any of their respective predecessors, subsidiaries or associates to cease its relationship with the Company or any affiliated company.

 

The Executive agrees that all restrictions contained in this Agreement are reasonable and valid and all defenses to the strict enforcement thereof by the Company are waived by the Executive.

 

	
4.10  

	
Equitable Relief

 

The Executive agrees that, in the event he/she violates any of the restrictions referred to in this Article 4 the Company shall suffer irreparable harm and shall be entitled to preliminary and permanent injunctive relief and any other remedies in law or in equity which the court deems fit. This section 4.10 shall not affect any damages or other remedies to which the Company may be entitled under this Agreement, at law or in equity, arising from any breaches of such liabilities or obligations by Executive, including but not limited to all remedies at law.

 

  

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5.  

	
DELIVERY OF RECORDS

 

Upon the termination of the employment of the Executive by the Company, or at any time the Company requests, the Executive will deliver to the Company all books, records, lists, brochures and other property, including any Confidential Information, belonging to the Company or developed in connection with the business of the Company, and will execute such transfer documentation as is necessary to transfer such property or intellectual property to the Company.

	
6.  

	
TERMINATION

 

	
6.1  

	
The Executive’s Right to Terminate

 

The Executive may terminate his obligations under this Agreement:

	
(a)  

	
at any time upon providing three months’ notice in writing to the Company; or

 

	
(b)  

	
upon a material breach or default of any material term of this Agreement by the Company provided that the Executive advises the Company in writing of such breach or default within ninety (90) days of the date the Executive has become aware (or reasonably should have become aware) of the breach or default, and the Company has not cured such breach or default within 30 days from the receipt of such written notice.

 

The Company may waive the notice requirements set out in subsection (a) above in whole or in part and if it does so, the Executive's entitlement to remuneration and benefits as set out in section 6.4 will apply as of the date the Company waives such notice.

 

	
6.2  

	
Company’s Right to Terminate

 

	
  

	
The Company may terminate the Executive’s employment under this Agreement at any time:

	
(a)  

	
for just cause which shall include, without limitation, any of the following events:

 

	
(i)  

	
theft, dishonesty or fraud by the Executive with respect to the business of the Company;

 

	
(ii)  

	
the conviction of the Executive for a criminal offence that gives rise or is likely to give rise to the Company's stock becoming ineligible for listing on any stock exchange or market or the Company's stock being subject to a cease-trade order by a Canadian or US securities regulatory authority; or

 

  

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(iii)  

	
any and all other omissions, commissions or other conduct which would constitute just cause at law; or

 

	
(b)  

	
upon the Executive dying or becoming permanently disabled or disabled for a period exceeding 180 consecutive days or 180 non-consecutive days calculated on a cumulative basis over any two year period during the term of this Agreement.  The Executive shall be deemed to have become disabled if, because of ill health, physical, mental disability or for other causes beyond the control of the Executive, the Executive has been unable or unwilling or has failed to perform the Executive's duties under this Agreement; or

 

	
(c)  

	
for any other reason, after which the Company will pay the Executive the severance payment contemplated in section 6.3 to the Executive, subject to the terms of this Agreement.  For greater certainty, no severance payments under Section 6.3 will be made following termination by the Company for just cause under Section 6.2(a).

 

	
6.3  

	
Severance Payment

 

	
  

	
In the event of the termination of the Executive's employment:

	
(a)  

	
by the Executive pursuant to subsection 6.1(b) of this Agreement; or

 

	
(b)  

	
by the Company pursuant to subsection 6.2(c) or by the Company in breach of this Agreement;

 

	
  

	
the Company shall pay to the Executive within 10 days of such termination a severance payment equal to:

	
(c)  

	
an amount equal to the Executive’s annual salary at the time of termination of the Executive’s employment plus the Executive’s annual incentive target for the fiscal year pursuant to the Company’s Annual Incentive Program, multiplied by two in the event that such termination occurs before the first anniversary of this Agreement; or

 

	
(d)  

	
an amount equal to the Executive’s annual salary at the time of termination of the Executive’s employment plus the Executive’s annual incentive earned in the previous fiscal year pursuant to the Company’s Annual Incentive Program, multiplied by two in the event that such termination occurs on or after the first anniversary of this Agreement.

 

	
  

	
In addition, the Company shall reimburse the Executive within 10 days of such termination for all expenses as contemplated by section 3.3.

 

  

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6.4  

	
Compensation Otherwise Due to the Executive on Termination

 

	
  

	
In the event of the termination of the Executive's employment under this Agreement in circumstances other than those set out in section 6.3 of this Agreement, the Company shall pay the following amounts to the Executive within 10 days of the termination:

	
(a)  

	
if terminated pursuant to subsections 6.1(a) or 6.2(a) of this Agreement, the Company shall pay to the Executive his then-current annual salary accrued pursuant to section 3.1 of this Agreement as of the date of termination or effective date of resignation, as applicable; or

 

	
(b)  

	
if terminated pursuant to subsection 6.2(b) of this Agreement, the Company shall pay to the Executive:

 

	
(i)  

	
his then-current annual salary accrued pursuant to this Agreement as of the date of termination; and

 

	
(ii)  

	
a lump sum equal to the Executive’s annual salary at the time of termination of the Executive’s employment.  Such payment will be made no later than March 15 of the year following the year of such termination.

 

	
6.5  

	
Property Interests

 

If the Executive's employment with the Company is terminated, and within three years of such termination, the Executive acquires directly or indirectly other than from the Company or its subsidiaries any present or future interest in any mining claims or properties or mineral interests within 10 kilometers of the external boundaries of any mineral property held by the Company during the time the Executive was employed by the Company, the Executive will offer the Company, in writing the right to acquire such interest in exchange for reimbursement of his direct and indirect acquisition costs.  The Company shall have 30 days after receipt of such offer to accept the offer and 90 days after receipt of such offer to reimburse such costs.

	
6.6  

	
Resignations

 

Upon termination of the Executive for whatever reason the Executive shall forthwith execute and deliver to the Company his written resignation from any and all offices of the Company and its affiliates, without claim for compensation for loss of office.

	
6.7  

	
Payments in Full Settlement

 

The Executive acknowledges and agrees that the payments pursuant to this Article 6 shall be in full satisfaction of all claims, losses, costs, damages or expenses in connection with the termination of his employment, including termination pay and severance pay pursuant to any applicable labour laws as amended from time to time.  Except as provided in this Article, the Executive shall not be entitled to any further termination payments, damages or compensation whatsoever in connection with the employment of the Executive and the termination thereof.  As a condition precedent to any payment pursuant to this Article, the Executive agrees to deliver to the Company, prior to any such payment, a full and final release from all actions and claims in connection with the termination of his employment or any losses, costs, damages or expenses resulting there from in favour of the Company, its affiliates, subsidiaries, directors, officers, employees and agents in a form satisfactory to the Company and the Executive.

 

  

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7.  

	
CHANGE OF CONTROL

 

	
7.1  

	
Termination By Company.

 

In the event that within the twelve (12) month period immediately following a Change of Control (as defined in section 7.2 of this Agreement), any of the following occur:

 

	
(a)  

	
a material change (other than a change that is clearly and exclusively consistent with a promotion) in the Executive’s position, duties, responsibilities, title or office in effect immediately prior to any Change of Control;

 

	
(b)  

	
a material reduction in the Executive’s Base Salary in effect immediately prior of any Change of Control; or

 

	
(c)  

	
any material breach by the Company of any material provision of this Agreement;

 

then, if the Executive advises the Company in writing of the condition set forth above within ninety (90) days of the date the Executive has become aware (or reasonably should have become aware) of the condition, and the Company has thirty (30) days from the receipt of written notice to cure the condition, the Executive’s employment shall be deemed to have been terminated by the Company and the Company will, immediately upon such termination, pay to the Executive an amount equal to the Executive’s annual salary at the time of termination of the Executive’s employment plus the Executive’s annual incentive earned in the previous fiscal year pursuant to the Company’s Annual Incentive Program, multiplied by two, provided that if such termination occurs during the first year of employment, the amount will be equal to the Executive’s annual salary at the time of termination of the Executive’s employment plus the Executive’s annual incentive target pursuant to the Company’s Annual Incentive Program, multiplied by two.  The Executive further agrees that compensation payable pursuant to this section 7.1 is in lieu of the severance package payable under Article 6 of this Agreement and shall be the maximum compensation to which the Executive is entitled to receive in lieu of reasonable notice, and the Company will have no further obligations to the Executive with respect to the termination of this Agreement or his/her employment, including, without limitation, further severance pay or damages.

 

  

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7.2  

	
Change of Control.

 

For the purposes of this agreement, a “Change of Control” means any of the following:

 

	
(a)  

	
at least 50% in fair-market value of all the assets of the Company are sold to a party or parties acting jointly or in concert (as determined pursuant to the Ontario Securities Act, R.S.O. 1990, c.S.5, as amended (the “OSA”), mutatis mutandis) in one or more transactions occurring within a period of two (2) years; or

 

	
(b)  

	
there is a direct or indirect acquisition by a person or group of persons acting jointly or in concert of voting shares of the Company that when taken together with any voting shares owned directly or indirectly by such person or group of persons at the time of the acquisition, constitutes 40% or more of the outstanding voting shares of the Company, provided that the direct or indirect acquisition by Electrum Strategic Resources LLC (“Electrum”) of voting shares of the Company shall not constitute a “Change of Control” unless the acquisition of such additional voting shares when taken together with any voting shares or securities convertible into voting shares (“Convertible Securities”) held directly or indirectly by Electrum at the time of acquisition constitutes 50% or more of the outstanding voting shares of the Company.  For purposes of this subsection (b), all Convertible Securities owned by Electrum will be deemed to be fully converted or exercised and the number of outstanding voting shares of the Company will be adjusted to reflect such conversion or exercise and Electrum includes all persons acting jointly or in concert with Electrum; or

 

	
(c)  

	
a majority of the then-incumbent Board of Directors’ nominees for election to the Board of Directors of the Company are not elected at any annual or special meeting of shareholders of the Company; or

 

	
(d)  

	
the Company is merged, amalgamated, consolidated or reorganized into or with another body corporate or other legal person and, as a result of such business combination, more than 40% of the voting shares of such body corporate or legal person immediately after such transaction are beneficially held in the aggregate by a person or body corporate (or persons or bodies corporate acting jointly or in concert) and such person or body corporate (or persons or bodies corporate acting jointly or in concert) beneficially held less than 40% of the voting shares of the Company immediately prior to such transaction.

 

Notwithstanding the foregoing provisions of subsections 7.2(a), (b) and (d), unless otherwise determined in a specific case by majority vote of the Board of Directors, a “Change of Control” shall not be deemed to have occurred for the purposes of subsections (a), (b), and (d) solely because the Company, an entity in which the Company directly or indirectly beneficially owns 50% or more of the outstanding voting shares (a “Subsidiary”), or any Company sponsored employee stock ownership plan or any other employee benefit plan of the Company or any Subsidiary either files or becomes obligated to file a report or a proxy statement under National Instruments NI 51-102 (Continuous Disclosure), NI 62-103 (Early Warning) or NI 81-102 (Mutual Funds) (or any successor schedule, form or report or item therein) under the OSA, or in any other fashion authorized by a regulatory authority having due jurisdiction, disclosing beneficial ownership by it of voting shares of the Company, whether in excess of forty percent (40%) or otherwise, or because the Company reports that a change in control of the Company has occurred or will occur in the future by reason of such beneficial ownership; nor if the Company is a party to any amalgamation, merger or similar transaction involving only the Company and its Subsidiaries and which does not result in any change of beneficial ownership of any shares of the Company or of the shares received by former shareholders of the Company in any new entity resulting from that transaction.

 

  

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7.3           Limit on Benefits.

 

Notwithstanding anything to the contrary in this Agreement, to the extent Executive receives any payments and benefits, whether payable or distributed or distributable pursuant to the terms of this Agreement or otherwise (including, but not limited to, any payments and benefits subject to any plan, program, arrangement, agreement, or award), in connection with a Change of Control, which would be subject to the excise tax under U.S. Code section 4999 but for the operation of this Section 6.5, the Company shall reduce the aggregate amount of such payments and benefits such that the present value thereof (as determined under the U.S. Code and the applicable regulations) is equal to 2.99 times the Executive’s “base amount” as defined in U.S. Code section 280G

 

	
8.  

	
U.S. AGREEMENT

 

Subject to section 8 of the U.S. Agreement, in the event NovaGold Alaska breaches the U.S. Agreement, such breach shall also be considered a fundamental breach by the Company of this Agreement and the Executive shall be entitled to all the rights and remedies provided for herein upon such a breach.  Subject to Article 8 of this Agreement, in the event the Executive’s employment under the U.S. Agreement is terminated, Executive’s employment under this Agreement also will be deemed terminated in the same manner and the Executive shall be entitled to all the rights and remedies provided for herein upon such termination.

	
9.  

	
INDEMNIFICATION

 

The Company and the Executive agree to execute the attached Indemnity Agreement.

	
10.  

	
PERSONAL NATURE

 

The obligations and rights of the Executive under this Agreement are personal in nature, based upon the singular skill, qualifications and experience of the Executive.

 

  

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11.  

	
RIGHT TO USE EXECUTIVE’S NAME AND LIKENESS

 

During the term of this Agreement, the Executive hereby grants to the Company the right to use the Executive’s name, likeness and/or biography in connection with the services performed by the Executive under this Agreement and in connection with the advertising or exploitation of any project with respect to which the Executive performs services for the Company.

	
12.  

	
LEGAL ADVICE

 

The Executive hereby represents, warrants and acknowledges to the Company that he has had the opportunity to receive independent legal advice prior to the execution and delivery of this Agreement.

	
13.  

	
WAIVER

 

No consent or waiver, express or implied, by any party to this Agreement of any breach or default by any other party in the performance of its obligations under this Agreement or of any of the terms, covenants or conditions of this Agreement shall be deemed or construed to be a consent or waiver of any subsequent or continuing breach or default in such party’s performance or in the terms, covenants and conditions of this Agreement.  The failure of any party to this Agreement to assert any claim in a timely fashion for any of its rights or remedies under this Agreement shall not be construed as a waiver of any such claim and shall not serve to modify, alter or restrict any such party’s right to assert such claim at any time thereafter.

	
14.  

	
NOTICES

 

	
14.1  

	
Delivery of Notice

 

	
  

	
Any notice relating to this Agreement or required or permitted to be given in accordance with this Agreement shall be in writing and shall be personally delivered or mailed by registered mail, postage prepaid to the address of the parties set out on the first page of this Agreement.  Any notice shall be deemed to have been received if delivered, when delivered, and if mailed, on the fifth day (excluding Saturdays, Sundays and holidays) after the mailing thereof.  If normal mail service is interrupted by strike, slowdown, force majeure or other cause, a notice sent by registered mail will not be deemed to be received until actually received and the party sending the notice shall utilize any other services which have not been so interrupted or shall deliver such notice in order to ensure prompt receipt thereof.

 

	
14.2  

	
Change of Address

 

	
  

	
Each party to this Agreement may change its address for the purpose of this Article 14 by giving written notice of such change in the manner provided for in section 14.1.

 

  

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15.  

	
APPLICABLE LAW

 

This Agreement shall be governed by and construed in accordance with the laws of the province of British Columbia and the federal laws of Canada applicable therein, which shall be deemed to be the proper law hereof.  The parties hereto hereby submit to the jurisdiction of the courts of British Columbia.  All obligations of the parties under this Agreement are subject to receipt of all necessary approvals of the applicable securities regulatory authorities.  This Agreement is intended to fall within the exception in U.S. Treasury Regulation 1-409A-1(b)(4) for short term deferrals and will be interpreted and administered accordingly.

	
16.  

	
SEVERABILITY

 

If any provision of this Agreement for any reason be declared invalid, such declaration shall not affect the validity of any remaining portion of the Agreement, which remaining portion shall remain in full force and effect as if this Agreement had been executed with the invalid portion thereof eliminated, and it is hereby declared the intention of the parties that they would have executed the remaining portions of this Agreement without including therein any such part, parts or portion which may, for any reason, be hereafter declared invalid.

	
17.  

	
ENTIRE AGREEMENT

 

This Agreement constitutes the entire agreement between the parties hereto and there are no representations or warranties, express or implied, statutory or otherwise other than set forth in this Agreement and there are no agreements collateral hereto other than as are expressly set forth or referred to herein.  This Agreement cannot be amended or supplemented except by a written agreement executed by all parties hereto.

	
18.  

	
NON-ASSIGNABILITY

 

This Agreement shall not be assigned by any party to this Agreement without the prior written consent of the other parties to this Agreement.

	
19.  

	
BURDEN AND BENEFIT

 

This Agreement shall enure to the benefit of and be binding upon the parties hereto and their respective heirs, executors, administrators, successors and permitted assigns.

	
20.  

	
TIME

 

Time is of the essence of this Agreement.

 

  

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21.  

	
COUNTERPARTS

 

This Agreement may be executed in counterparts and such counterparts together shall constitute one and the same instrument.

IN WITNESS WHEREOF the parties hereto have executed this Agreement effective as of the 9th day of January, 2012.

	
NOVAGOLD RESOURCES INC.

 

 

 

 

________________________________

Per:          TONY GIARDINI

	  

	
By: /s/ Gregory A. Lang  

Gregory A. Lang

Chief Executive Officer

 

- 15 -

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