Document:

exv10w1

 

Exhibit 10.1

SEVERANCE
AND RELEASE AGREEMENT

     This Severance and Release Agreement (the “Agreement”) is made between (i) Allan J. Marter
(“Mr. Marter”) and (ii) Golden Star Resources Ltd. (the “Company”). Mr. Marter and the Company are
referred to collectively as the “Parties” and individually as a “Party.”

RECITALS

     WHEREAS, Mr. Marter voluntarily resigned his employment with the Company effective October 13,
2006;

     WHEREAS, the Parties wish to resolve fully and finally any potential claims by
Mr. Marter against the Company regarding Mr. Marter’s employment with the Company and
otherwise; and

     WHEREAS, in order to accomplish this end, the Parties are willing to enter into this
Agreement.

     NOW THEREFORE, in consideration of the mutual promises and undertakings contained herein, the
sufficiency of which is acknowledged by the Parties, the Parties to this Agreement agree as
follows:

TERMS

     1. Resignation and Effective Date. Mr. Marter voluntarily resigned his employment
with the Company effective October 13, 2006 (the “Resignation Date”) upon Mr. Marter’s execution of
this Agreement. This Agreement shall become effective (the “Effective Date”) on the eighth
(8th) day after Mr. Marter’s execution of this Agreement, provided Mr. Marter has not
revoked Mr. Marter’s acceptance pursuant to Section 7(f) below.

     2. Severance Package.

          a. Payments.

               (i) On the Effective Date, the Company will pay Mr. Marter for his unpaid base salary, accrued
vacation, outstanding expense reimbursements, and any accrued benefits due and payable under any
benefit plans of the Company in which the Employee was a participant prior to his separation of
employment (in accordance with the provisions of the applicable plan or plans).

This payment, less applicable withholdings and deductions, will be made by check made payable to
“Allan J. Marter” and delivered to Michael T. McDonnell, Mr. Marter’s counsel.

               (ii) On the Effective Date, and on the express condition that Mr. Marter has not revoked this
Agreement, the Company will deliver to Michael T. McDonnell, Mr. Marter’s counsel, (i) evidence of
the transfer of 200,000 shares of the common stock of EURO Ressources S.A. (“EURO”), registered in
the name of Allan J. Marter on and through the French register of shareholders maintained by
BNP-Paribas, and (ii) a

 

 

check made payable to Allan J. Marter in the total gross amount of two
hundred eighty-two thousand, three hundred fifty-four dollars ($282,354), less all applicable
deductions and withholdings.

          b. Health Insurance. Provided Mr. Marter timely elects continuation coverage under the
Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”), the Company shall
reimburse Mr. Marter for the portion of premiums of Mr. Marter’s group health insurance, including
coverage for his spouse, that the Company paid prior to Mr. Marter’s separation of employment with
the Company, and any additional payments required to maintain COBRA coverage for Mr. Marter and his
spouse, for 18 months following the Effective Date. If Mr. Marter is entitled to coverage under
COBRA for any periods following 18 months after the Effective Date, Mr. Marter shall be entitled to
maintain coverage for Mr. Marter and his spouse at Mr. Marter’s sole expense. Mr. Marter will
promptly notify the Company of and provide the Company with appropriate documentation regarding the
premium amounts, and the Company will reimburse Mr. Marter directly for such amounts within five
(5) business days after the Company receives Mr. Marter’s notice by sending the reimbursement to
Mr. Marter’s residence address.

          d. Outplacement. On the Effective Date, the Company shall deliver to Michael T. McDonnell a
check in the amount of ten thousand dollars ($10,000) made payable to “Barry T. Dawson &
Associates, Inc.” for outplacement services for Mr. Marter.

          e. Taxes. Reporting of and withholding on any consideration under this Agreement for tax
purposes shall be at the discretion of the Company in conformance with applicable tax laws. If a
claim is made against the Company for any additional tax or withholding in connection with or
arising out of the consideration provided under this Agreement, Mr. Marter shall pay any such claim
within thirty (30) days of being notified by the Company and agrees to indemnify the Company and
hold it harmless against such claims, including, but not limited to, any taxes, attorneys’ fees,
penalties, and/or interest, which are or become due from the Company.

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     3. Stock Options. On the Effective Date, all options to purchase the stock of the
Company granted to Mr. Marter under the Company’s stock option plans, which options together with
the applicable exercise prices are listed in the attached Schedule 1 (the “Golden Star Options”),
shall become immediately exercisable and vested, and Mr. Marter shall have the right to exercise
the Golden Star Options until the earlier of their expiration date or the close of business in Denver,
Colorado on December 31, 2009. The Company shall use its reasonable best efforts to obtain action
by EURO so that all options to purchase the stock of EURO granted to Mr. Marter under EURO’s stock
option plans, which options together with the applicable exercise price are listed in the attached
Schedule 2 (the “EURO Options”), shall become immediately exercisable and vested, and Mr. Marter
shall have the right to exercise the EURO Options until the earlier of their expiration date or the
close of business in Denver, Colorado on December 31, 2009. The Company shall use its reasonable
best efforts to obtain all necessary regulatory, corporate and shareholders approvals for the
vesting and extension of the exercise of the Golden Star Options and the EURO Options.

     4. General Release.

          a. Mr. Marter, for himself and for his affiliates, successors, heirs, subrogees, assigns,
principals, agents, partners, employees, associates, attorneys, and representatives, voluntarily,
knowingly, and intentionally releases and discharges the Company and its predecessors, successors,
parents, subsidiaries, affiliates, and assigns and each of their respective officers, directors,
principals, shareholders, agents, attorneys, board members, and employees from any and all claims,
actions, liabilities, demands, rights, damages, costs, expenses, and attorneys’ fees (including,
but not limited to, any claim of entitlement for attorneys’ fees under any contract, statute, or
rule of law allowing a prevailing party or plaintiff to recover attorneys’ fees) of every kind and
description from the beginning of time through the Effective Date (the “Released Claims”).

          b. The Released Claims include, but are not limited to, those which arise out of, relate to,
or are based upon: (1) Mr. Marter’s employment with the Company or the termination thereof; (2)
statements, acts, or omissions by the Parties whether in their individual or representative
capacities; (3) express or implied agreements between the Parties (except as provided herein) and
claims under any severance or bonus plan; (4) any stock option grant, agreement, or plan (except as
provided herein); (5) all federal, state, and municipal statutes, ordinances, and regulations,
including, but not limited to, claims of discrimination based on race, sex, national origin,
religion, age, disability, whistleblower status, public policy, or any other characteristic of Mr.
Marter under the Age Discrimination in Employment Act, the Older Workers Benefit Protection Act,
the Americans with Disabilities Act, the Fair Labor Standards Act, the Equal Pay Act, Title VII of
the Civil Rights Act of 1964 (as amended), the Employee Retirement Income Security of 1974, the
Rehabilitation Act of 1973, the Employment Relations Act of 1999, or any other federal, state, or
municipal law prohibiting discrimination or termination for any reason; and (6) the common law.

          c. The Parties agree that nothing in this Section 4 shall be interpreted to release any
indemnification provisions applicable to Mr. Marter in the Articles of Incorporation or by-laws of
the Company or any other similar documents, nor to terminate the benefits that would otherwise be
available of any applicable directors’ and officers’ liability insurance policies with respect to
Mr. Marter’s service as an officer of the Company and as an officer or director of any of its
subsidiaries.

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     5. Unknown Facts. This Agreement includes claims of every nature and kind, known or
unknown, suspected or unsuspected. Mr. Marter hereby acknowledges that Mr. Marter may hereafter
discover facts different from, or in addition to, those which Mr. Marter now knows or believes to
be true with respect to this Agreement, and Mr. Marter agrees this Agreement and the releases
contained herein shall be and remain effective in all respects, notwithstanding such different or
additional facts or discovery.

     6. No Admission of Liability. The Parties agree that nothing contained herein, and no
action taken by any Party hereto with regard to this Agreement, shall be construed as an admission
by any Party of liability or of any fact that might give rise to liability for any purpose
whatsoever.

     7. Warranties. Mr. Marter warrants and represents as follows:

          a. He has read this Agreement, and he agrees to the conditions and obligations set forth in
it.

          b. He voluntarily executes this Agreement after having been advised to consult with legal
counsel, after having had opportunity to consult with legal counsel, and without being pressured or
influenced by any statement, representation, or omission of any person acting on behalf of the
Company including, without limitation, the officers, directors, board members, committee members,
employees, agents, and attorneys for the Company.

          c. He has no knowledge of the existence of any lawsuit, charge, or proceeding against the
Company or any of its officers, directors, board members, committee members, employees, or agents
arising out of or otherwise connected with any of the matters herein released.

          d. He has not previously disclosed any information that would be a violation of Section 8 and
9 set forth below if such disclosure were to be made after the execution of this Agreement.

          e. He has full and complete legal capacity to enter into this Agreement.

          f. He understands that he is waiving and releasing any claims he may have under the Age
Discrimination in Employment Act. He may revoke this Agreement for seven (7) days following its
execution, and this Agreement shall not become enforceable and effective until seven (7) days after
such execution. If Mr. Marter chooses to revoke this Agreement, he must provide written notice to
Peter Bradford, President and CEO, Golden Star Resources Ltd., 10901 W. Toller Road, Suite 300,
Littleton, Colorado 80127-6312, facsimile: (303) 894-4614, by hand delivery and by facsimile
within seven (7) calendar days of his execution of this Agreement. If Mr. Marter does not revoke
within the seven-day period, the right to revoke is lost.

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          g. He has had at least twenty-one (21) days in which to consider the terms of this Agreement.
In the event that he executes this Agreement in less time, it is with the full understanding that
he had the full twenty-one (21) days if he so desired and that he was not pressured by the Company,
its representatives, or its agents to take less time to consider the Agreement. In such event, Mr.
Marter expressly intends such execution to be a waiver of any right he had to review the Agreement
for a full twenty-one (21) days.

          h. He admits, acknowledges, and agrees that (1) he is not otherwise entitled to the payments
set forth in Section 2, and (2) such payments are good and sufficient consideration for this
Agreement.

          i. He admits, acknowledges, and agrees that he has received all wages, compensation, bonuses,
stock, stock options, vacation, paid time off, or other benefits from the Company which are or
could be due to him under the terms of employment with the Company or otherwise.

     8. Confidentiality. Mr. Marter agrees that the Confidentiality and Restrictive
Covenant Agreement between Mr. Marter and the Company dated April 30, 2004 shall remain in full
force and effect.

     9. Non-Disparagement and References. Mr. Marter agrees not to make to any person any
statement that disparages the Company or reflects negatively upon the Company or its predecessors,
successors, parents, subsidiaries, officers, directors, employees, or affiliates. The Company
agrees that the Company’s executive officers and directors will not make to any person any
statement that disparages Mr. Marter or reflects negatively upon Mr. Marter. The Company agrees
that, in response to employment inquiries or requests for references concerning Mr. Marter, the
Company will provide solely Mr. Marter’s dates of employment and job titles while with the Company,
along with the statement that it is Company policy not to provide additional information in
response to such inquiries.

     10. Return of Company Property and Information. Mr. Marter represents and warrants
that he has returned to the Company any and all property, documents, and files, including any
documents (in any recorded media, such as papers, computer disks, copies, photographs, maps,
transparencies, and microfiche) that relate in any way to the Company or the Company’s business.
Mr. Marter agrees that, to the extent that he possessed any files, data, or information relating in
any way to the Company, the Company’s business, or the Company’s customers on any personal
computer, he has deleted those files, data, or information (and will retain no copies in any form).
Mr. Marter has returned any Company tools, equipment, calling cards, credit cards, access cards or
keys, any keys to any filing cabinets, combinations, access codes, computer passwords, vehicles,
vehicle keys, and all other Company property in any form; provided, however, that Mr.
Marter shall be permitted to retain the laptop computer and the cellular telephone provided to Mr.
Marter by the Company on the express conditions that
(1) Mr. Marter will assume all expenses related to the laptop and cellular telephone (including any
related services) effective October 13, 2006, (2) the Company, at its election and cost, will
replace or wipe clean the hard disk drive for the computer on or before October 13, 2006, and (3) the cellular telephone number will be changed to a new number on or
before October 13, 2006, so the Company may retain the number within its cell phone plan.

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     11. Severability. If any provision of this Agreement is held illegal, invalid, or
unenforceable, such holding shall not affect any other provisions hereof. In the event any
provision is held illegal, invalid, or unenforceable, such provision shall be limited so as to
effect the intent of the Parties to the fullest extent permitted by applicable law. Any claim by
Mr. Marter against the Company shall not constitute a defense to enforcement by the Company.

     12. Assignment. The Company may assign its rights under this Agreement. Mr. Marter
cannot assign his rights under this Agreement without the written consent of the Company.

     13. Enforcement. The releases contained herein do not release any claims for
enforcement of the terms, conditions, or warranties contained in this Agreement. The Parties shall
be free to pursue any remedies available to them to enforce this Agreement.

     14. Entire Agreement. This Agreement, the Confidentiality and Restrictive Covenant
Agreement dated April 30, 2004, and the stock option agreements referenced herein, represent the
entire agreement between the Parties. This Agreement supersedes any and all prior oral or written
promises or agreements between the Parties, including all provisions in the Amended and Restated
Employment Agreement dated April 30, 2004. Mr. Marter acknowledges that he has not relied on any
promise, representation, or statement other than those set forth in this Agreement. This Agreement
cannot be modified except in writing signed by all Parties.

     15. Waiver. The Company hereby waives any provision in the Amended and Restated
Employment Agreement dated April 30, 2004 or the Confidentiality and Restrictive Covenant Agreement
dated April 30, 2004, that would prevent Mr. Marter from acting as a director or providing services
in any other capacity for EURO. The Company shall not attempt to influence EURO’s officers,
directors, or shareholders with respect to any services Mr. Marter may provide to EURO, except as
may be necessary to comply with its statutory, legal, or fiduciary obligations.

     16. Venue and Applicable Law. This Agreement shall be interpreted and construed in
accordance with the laws of the State of Colorado, without regard to its conflicts of law
provisions. Venue shall be in the federal or state courts in Colorado.

[Signature page follows]

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     IN WITNESS WHEREOF, the Parties have executed this Severance and Release Agreement on the
dates written below.

	 	 	 	 	 
	ALLAN J. MARTER

	 	GOLDEN STAR RESOURCES LTD.	 	 
	 
	 	 	 	 
	/s/ Allan J. Marter

	 	/s/ Jill M. Thompson	 	 
	 

Allan J. Marter

	 	 

Jill M. Thompson
	 	 
	 

	 	Administrative Manager	 	 
	06 Oct 13
	 	10/13/2006	 	 
	 

	 	 	 	 
	Date

	 	Date	 	 

7exv10w2

 

Exhibit 10.2

EMPLOYMENT AGREEMENT

     THIS EMPLOYMENT AGREEMENT, made as of the 17th day of June 2006 or such earlier date that the
parties agree (the “Effective date”) (the “Agreement”) by and between GOLDEN STAR
RESOURCES LTD. or its nominee (the “Company”) and COLIN BELSHAW (the “Employee”).

     WHEREAS the Company wishes to have the benefit of the Employee’s services; and

     WHEREAS the Employee wishes to be so employed.

     NOW, THEREFORE, in consideration of the foregoing and the mutual covenants herein contained,
THE PARTIES HERETO AGREE AS FOLLOWS:

1. Employment

(a) The Company shall employ the Employee, and the Employee shall serve in the employ of the
Company and render exclusive and full-time services to the Company in such other offices of the
Company or its affiliates as may be designated by the Board of Directors or the President and Chief
Executive Officer, on the terms and conditions set forth in this Agreement and subject to the
direction of the President and Chief Executive Officer.

(b) Initially the Employee shall be employed as Vice President, Operations and then, upon the
earlier of (i) the commencement of a Vice President Operations (Ghana), and (ii) the Employee
having obtained a visa allowing him to work in the United States and relocated to Denver, Colorado,
shall be employed as Chief Operating Officer.

(c) The Employee shall not serve as a director, general partner or manager of any other entity
without the prior written consent of the Board of Directors.

(d) The Employees principal place of business with respect to his services to the Company shall be
the Bogoso/Prestea mine in Ghana and, subject to the Employee’s confirmation as Chief Operating
Officer, in the Company’s head office in Denver Colorado. The Employee acknowledges that he will be
required from time to time to travel and perform his duties in other locations and the Employee
shall undertake such amount of travel away from his principal place of employment as may reasonably
be necessary for the business of the Company.

2. Term of Employment

The Agreement shall become effective on the Effective Date. Unless the Employee’s employment is
terminated as provided in Section 5, the term of the Employee’s employment under this Agreement
(the “Term”) shall be for one (1) year from the Effective Date. The Term shall be extended
automatically for successive one-year periods on each successive anniversary of the Effective Date,
unless the Employee or the Company provides written notice to the other at least three (3) months
prior to the anniversary of the Effective Date of his or its intention not to extend the Term, in
which case the Term shall end on that anniversary of the Effective Date.

 

 

Belshaw Employment Contract 2006-06-17

 

If the Company notifies the Employee of its intent not to extend the Term, the Agreement and the
Employee’s employment shall be deemed to have been terminated without cause pursuant to Section
5(b)(ii) and the Employee shall be entitled to the payments and other benefits set forth in Section
5(b)(ii).

3. Services

The Employee shall devote his entire business time, best efforts, skills and attention to the
Company in fulfilling his duties and responsibilities hereunder faithfully and diligently. The
Employee shall assume and perform to the best of his abilities the responsibilities of Vice
President Operations or Chief Operating Officer of the Company (as set forth in the Bylaws of the
Company), as the case applies, as well as such other responsibilities as may be assigned to him by
the President and Chief Executive Officer of the Company and as are appropriate to the offices he
holds. The Employee will engage in no other business or activity for compensation except for the
management of his personal investments and any business or activity with respect to which he has
received the prior written consent of the Board of Directors. The Employee shall report to the
President and Chief Executive Officer.

4. Compensation and Benefits

4.1 The Employee shall be entitled to the following permanent benefits:

(a) The Company shall pay to the Employee, and the Employee hereby accepts, a salary (the “Base
Salary”) at the rate of U.S.$250,000 per annum. The Employee’s salary may be increased from
time to time by the Board of Directors of the Company during the term of the Agreement and, upon
any increase, such increased salary shall then become the Base Salary. The Base Salary shall be
payable in equal monthly installments in arrears;

(b) The Employee shall be entitled to participate in the Company’s Amended and Restated Stock
Option Plan and in any successor option plan. Subject to the approval of the Board of Directors,
the Employee shall be awarded a grant of options. The number of options to be granted shall be that
number of options determined by dividing U.S.$150,000 (60% of increase in salary) by the value of
one option on the day of grant. The value of each option shall be determined using a Black Scholes
valuation;

(c) The Employee shall be entitled to participate in the Company’s Executive Management Performance
Bonus Plan and in any successor bonus plan. The target bonus level shall be 40% of Base Salary but
this may vary between 0% and 80% depending on results and performance; and

(d) The Company shall reimburse the Employee for all reasonable and documented travel,
entertainment and other business expenses actually and properly incurred by him in connection to
his duties hereunder. The Employee shall render expense accounts requesting reimbursements of his
expenses hereunder within a reasonable period of time following such expense and in accordance with
such documentation and verification as the President and Chief Executive Officer of the Company may
from time to time require.

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Belshaw Employment Contract 2006-06-17

 

4.2 During Appointment As Vice President Operations

While based in Ghana as Vice President Operations and until the Employee’s confirmation as Chief
Operating Officer and relocation to Denver, the Employee shall, in addition to the permanent
benefits detailed in Section 4.1, be entitled to the following benefits:

(a) Furnished and equipped accommodation at the Bogoso/Prestea mine of a type and standard
commensurate with the position. Any domestic employees would be at the cost of the Employee;

(b) Vehicle for the Employee’s work related and personal use commensurate with the position;

(c) Golden Star expatriate medical and dental health plans (subject to any limitations or
conditions of the plan or any limitations posed by law);

(d) Golden Star expatriate life and disability insurance plans (subject to any limitations or
conditions of the plan or any limitations posed by law); and

(e) The Employee shall be entitled to paid vacation at the rate of 60 calendar days per year during
each year of employment hereunder at such time or times as may be selected by the Employee and
approved by the President and Chief Executive Officer in accordance with the Company’s policies and
reasonable operating requirements. The Employee will qualify for two business class return airfares
to the Employee’s point of engagement for the Employee and the Employees spouse per year of
employment.

While based in Accra, Ghana, the employment shall also be governed by the General Conditions of
Contract, dated January 1, 2005, which apply to the Company’s expatriate employees. In the event of
a conflict between the conditions in this Employment Contract and the General Conditions of
Contract, dated January 1, 2005, the latter shall take precedence.

4.3 Denver Based Benefits

Upon the Employee’s confirmation as Chief Operating Officer and relocation to Denver, Colorado, the
Employee shall, in addition to the permanent benefits detailed at Section 4.1, be entitled to the
following benefits:

(a) The Company shall reimburse the Employee for all reasonable and documented travel,
entertainment and other business expenses actually and properly incurred by him in connection to
his duties hereunder. The Employee shall render expense accounts requesting reimbursements of his
expenses hereunder within a reasonable period of time following such expense and in accordance with
such documentation and verification as the President and Chief Executive Officer of the Company may
from time to time require;

(b) Relocation of the Employee and his spouse and personal effects from United Kingdom/Ghana to the
United states. Both the Employee and the Employee’s spouse would travel business class;

(c) The Employee shall be entitled to participate in such of the Company’s benefit and deferred
compensation plans as are from time to time available to executive officers of the Company,
including medical and dental health plans, life and disability insurance plans, supplemental

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Belshaw Employment Contract 2006-06-17

 

retirement programs and other fringe benefit plans (provided, however, that the Employee’s benefits
may be modified or the Employee may be denied participation in any such plan because of a condition
or restriction imposed by law or regulation or third-party insurer or other provider relating to
participation);

(d) The Employee shall be entitled to participate in any and all applicable group savings or
retirement plans, or other fringe benefits of the Company as established by the Company from time
to time in which executive officers are eligible to participate, provided that the Employee
shall have fulfilled all eligibility requirements for such benefits;

(e) The Employee shall be entitled to four weeks of paid vacation during each year of employment
hereunder at such time or times as may be selected by the Employee and approved by the President
and Chief Executive Officer, and as are in accordance with the Company’s policies and reasonable
operating requirements; and

(f) The Employee shall be entitled to all statutory holidays applicable to all employees of the
Company in Denver (ten holidays per year).

5. Termination

The Agreement and Employee’s employment may be terminated in the following manner. In each case,
the Company shall have no obligations to the Employee following termination pursuant to Section 5,
other than as set forth in this Agreement and as provided in any benefit plans in which the
Employee is a participant at the date of termination.

(a) Upon Retirement:

	 	(i)	 	Except as provided otherwise in Section 5(a)(ii), Employee’s employment shall
automatically terminate upon the Employee’s sixty-fifth birthday.
	 
	 	(ii)	 	Upon recommendation from the President and Chief Executive Officer, the Board of
Directors may, on or before the Employee’s sixty-fifth birthday and each subsequent
birthday, approve the extension of his employment and this Agreement for one year, until
his next birthday.
	 
	 	(iii)	 	At the time of termination, the Employee shall be paid in a lump sum payment all
accrued salary, any benefits then due and payable under any plans of the Company in which
the Employee is a participant (in accordance with the provisions of the applicable plan),
accrued vacation pay and reimbursement of any appropriate business expenses incurred by the
Employee in connection with his duties hereunder, all to the effective date of termination
(“Accrued Compensation”).

(b) By the Company:

	 	(i)	 	for cause, immediately upon notice in writing from the Company to the Employee.
For purposes of this Agreement, “cause” shall mean: (1) unless resulting from
disability as defined in Section 5(b)(iv), the Employee’s material breach of any terms of
this Agreement, if such material breach has not been cured within thirty (30) days
following

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Belshaw Employment Contract 2006-06-17

 

	 	 	 	written notice of such breach to the Employee from the Company setting forth with
specificity the nature of the breach or, if cure cannot reasonably be effected within
such 30 day period, if the Employee does not commence to cure the breach within such
30-day period and thereafter pursue such cure continuously and with due diligence until
cure has been fully effected; (2) the Employee’s willful dishonesty towards, fraud upon,
crime against, bad faith action with respect to, deliberate or attempted injury to, or
gross misconduct or material noncompliance with the Company’s policies and procedures
which is materially injurious to the Company; (3) the Employee’s conviction for any
felony crime (whether in connection with the Company’s affairs or otherwise); or (4) the
Employee’s failure to comply with any lawful directive of the Board of Directors, the
failure to comply with which is stated in such directive to be grounds for termination.
At the time of termination, the Company shall pay the Accrued Compensation to the
Employee.
	 
	 	(ii)	 	without cause, at any time upon the giving of seven days prior written notice
by the Company to the Employee or the Company’s election not to extend the Term of the
Agreement pursuant to Section 2. The Company shall pay to the Employee in cash or cash
equivalent acceptable to the Employee, in a lump sum at the time of termination, Accrued
Compensation plus severance compensation (“One Year Severance Compensation”) in an amount
equal to one times the sum of (1) the Employee’s then current Base Salary, (2) the average
of the target bonus for the Employee for the current year and the bonus paid to the
Employee for the previous year, (3) the amount of employer contributions contributed to the
Employee’s account for the most recent plan year before the termination date, under
Administaff Retirement Services (ARS) 401k Plan or any successor plan and (4) the amount
paid by the Company for welfare benefits on behalf of the Employee for the most recent
year.
	 
	 	(iii)	 	immediately and without notice upon the death of the Employee, in which case
the Company shall have no further obligation to the Employee’s estate or representatives
other than to pay Accrued Compensation up to and including the end of the month in which
death occurred.
	 
	 	(iv)	 	at any time upon 90-day notice in writing from the Company to the Employee, if the
Employee shall by reason of disability have failed to perform his duties under the
Agreement. During the 90-day notice period, the Employee shall be considered a full-time
employee of the Company. The Employee’s disability means his incapacity due to physical or
mental illness such that he is unable to perform his previously assigned duties where (1)
such incapacity has been determined to exist by either (x) the Company’s disability
insurance carrier or (y) the concurring opinions of two licensed physicians (one selected
by the Company and one by the Employee) or (2) the Employee has failed for any three
consecutive months in any calendar year or for six months in the aggregate in any two
successive calendar years to have performed substantially all of his duties under this
Agreement by reason of physical or mental illness, as determined by the Board of Directors.
Any such separation for disability shall be only as not prohibited by the Americans with
Disabilities Act. The Company shall pay to the Employee in a lump sum at the time of
termination (x) Accrued Compensation, (y) such other payments as may be then due under any
disability insurance policy of the Company in accordance with the terms of such policy and
(z) payment to the Employee of an amount equal to the cost of

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Belshaw Employment Contract 2006-06-17

 

	 	 	 	COBRA coverage for the Employee to continue to participate in applicable benefit plans
for one year.

(c) By the Employee:

	 	(i)	 	for material breach of this Agreement by the Company, immediately upon notice
in writing from the Employee to the Company, in which case the Employee shall have no
further obligation to the Company, and the Company shall make a lump sum payment to the
Employee in cash or cash equivalent acceptable to the Employee at the time of termination,
of Accrued Compensation plus One Year Severance Compensation. For purposes of this clause,
“material breach” shall include:

	 	(aa)	 	the reduction by the Company of the Employee’s Base Salary or other
benefits;
	 
	 	(bb)	 	the non-payment of compensation and provision of benefits when, as and
if due within 10 business days of written notice to the Company by the Employee
that such payment was not made when due;
	 
	 	(cc)	 	the material reduction by the Company of the Employee’s
responsibilities or title; and
	 
	 	(dd)	 	the failure of a successor entity to adopt this Agreement.

	 	(ii)	 	voluntarily, if Sections 5(b)(i), 5(b)(ii), 5(c)(i) or 6 are not applicable, at
any time upon three months’ notice in writing to the Company, in which case the Company
shall pay to the Employee in a lump sum at the time of termination Accrued Compensation up
to and including the date of termination. The Company may waive the requirement of written
notice or the notice period in whole or in part, in which case the Company shall pay to the
Employee in a lump sum at the time of termination an amount equal to Accrued Compensation
through the date on which termination would have occurred had the notice not been waived.

(d) Upon any termination of employment as set forth in this Section 5 or 6, the Employee shall,
unless otherwise advised by the Company, do the following:

	 	(i)	 	immediately resign all offices held (including directorships, if any) in the Company
(and any subsidiary or other affiliated company of the Company and any entity in which
Employee holds office at the direction of the Company) and, except as provided in this
Agreement, the Employee shall not be entitled to receive any additional severance payment
or additional compensation for loss of office or otherwise by reason of the resignation. If
the Employee fails to resign as described herein, the Company is irrevocably authorized to
appoint any other person in his name and on his behalf to sign any documents or do any
things necessary or requisite to give effect to such resignation; and
	 
	 	(ii)	 	promptly return to the Company all books of account, computer files, maps, records,
reports and other documents, materials and property of the Company in the possession or
control of the Employee.

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Belshaw Employment Contract 2006-06-17

 

(e) All amounts payable in cash or cash equivalent acceptable to Employee under this Section 5
shall, within seven days of termination, at the option of the Company be delivered to the Employee
personally or be mailed to the Employee at the address referred to in Section 11(d).

6. Change of Control

     (a) In the event of a Termination Upon a Change in Control, the Company shall immediately pay
to the Employee in a lump sum payment Accrued Compensation and Change of Control Severance. For the
avoidance of doubt, a Termination Upon a Change of Control shall not constitute a termination under
Section 5 of this Agreement, and the Employee shall not be entitled to any payment or benefits
under Section 5. The Company shall have no further obligation to the Employee except as provided
under this Agreement and in any benefit plans in effect at the date of termination which are
applicable to Employee.

     (i) “Termination Upon a Change in Control” shall mean a termination of the Employee
without cause within 12 months following a Change in Control (as defined below) or a
termination by the Employee for Good Reason within 12 months following a Change in Control.

     (ii) “Good Reason” shall mean any of the following (without the Employee’s express
written consent):

     (1) the assignment to the Employee by the Company of duties inconsistent with,
or a substantial alteration in the nature or status of, the Employee’s
responsibilities immediately prior to a Change in Control;

     (2) a reduction by the Company in the Employee’s compensation or benefits as in
effect on the date of a Change in Control;

     (3) a relocation of the Company’s principal offices to a location outside the
Denver, Colorado metropolitan area, or the Employee’s relocation to any place other
than the Denver, Colorado offices of the Company, except for reasonably required
travel by the Employee on the Company’s business provided that this clause shall
have no effect while the Employee is based in Accra, Ghana and until such time that
the Employee is required to, and relocates to Denver, Colorado;

     (4) any material breach by the Company of any provision of this Agreement, if
such material breach has not been cured within thirty (30) days following written
notice of such breach by the Employee to the Company setting forth with specificity
the nature of the breach; or

     (5) any failure by the Company to obtain the assumption and performance of this
Agreement by any successor (by merger, consolidation or otherwise) or assign of the
Company.

     (iii) A “Change in Control” shall be deemed to have occurred if (1) any “person” or
“group” (within the meaning of Sections 13(d) and 14(d)(2) of the Securities Exchange Act of
1934), other than a trustee or other fiduciary holding securities under an employee

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Belshaw Employment Contract 2006-06-17

 

benefit plan of the Company, is or becomes the “beneficial owner” (as defined in Rule 13d-3
under the 1934 Act), directly or indirectly, of more than thirty percent (30%) of the then
outstanding voting stock of the Company; or (2) persons who are Incumbent Directors cease to
constitute a majority of the Board of Directors; or (3) the stockholders of the Company
approve a merger, consolidation or amalgamation of the Company with any other corporation,
other than a merger, consolidation or amalgamation which would result in the voting
securities of the Company outstanding immediately prior thereto continuing to represent
(either by remaining outstanding or by being converted into voting securities of the
surviving entity) at least fifty percent (50%) of the combined voting power of the voting
securities of the Company or such surviving entity outstanding immediately after such
merger, consolidation or amalgamation, or (4) the stockholders approve a plan of complete
liquidation of the Company or the sale or disposition by the Company of all or substantially
all of the Company’s assets in one or a series of related transactions.

     (iv) “Incumbent Director” means any person who serves on the Board of Directors of the
Company as of the date of this Agreement and any person who is added to the Board thereafter
with the approval of a majority of the persons who are then Incumbent Directors.

     (v) “Change of Control Severance” means an amount equal to (a) two times the sum of (1)
the Employee’s Base Salary for the calendar year in which the termination became effective,
(2) the average of the target bonus for the Employee for the current calendar year and the
bonus paid to the Employee for the previous year, (3) the amount of employer contributions
contributed to the Employee’s account for the most recent plan year before the termination
date, under Administaff Retirement Services (ARS) 401k Plan or any successor plan, and (4)
the amount paid by the Company for welfare benefits on behalf of the Employee for the most
recent year, plus (b) a portion of the target bonus for the Employee for the current
calendar year which is pro rata to the portion of such year prior to the Employee’s Change
of Control Termination.

(b) Anything in this Agreement to the contrary notwithstanding, in the event it shall be determined
that any payment or distribution by the Company to or for the benefit of the Employee (whether paid
or payable or distributed or distributable pursuant to the terms of this Agreement or otherwise,
but determined without regard to any additional payments required under this Section 6(b)) (a
“Payment”) would be subject to the excise tax imposed by Section 4999 of the U.S. Tax Code or any
interest or penalties are incurred by the Employee with respect to such excise tax (such excise
tax, together with any such interest and penalties, are hereinafter collectively referred to as the
“Excise Tax”), then the Employee shall be entitled to receive an additional payment (a “Gross-Up
Payment”) in an amount such that after payment by the Employee of all taxes imposed upon the
Gross-Up Payment (including any state and federal income taxes and Excise Taxes, and interest and
penalties imposed with respect to such taxes), the Employee retains an amount of the Gross-Up
Payment equal to the Excise Tax imposed upon the Payment. Notwithstanding the foregoing provisions
of this Section 6(b), if it shall be determined that the Employee is entitled to a Gross-Up
Payment, but that the Payments do not exceed by more than $50,000 the greatest amount (the “Reduced
Amount”) that could be paid to the Employee such that the receipt of Payments could not give rise
to any excise tax, then no Gross-Up Payment shall be made to the Employee and the Payments, in the
aggregate, shall be reduced to the Reduced Amount.

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Belshaw Employment Contract 2006-06-17

 

If the Employee receives a Gross-Up Payment pursuant to Section 6(b), the Employee shall take any
position requested by the Company on the Employee’s federal income tax return with respect to the
treatment of the Payment from the Company and any Gross-up Payment (such position being, a
“Requested Position”), provided the Company shall, at the request of the Employee, provide the
Employee with an opinion from a nationally recognized accounting or law firm that there is
“substantial authority” for the Requested Position within the meaning of IRC Section 6662. The
Company shall indemnify the Employee for any tax, penalty and interest incurred by the employee as
a result of taking the Requested Position. The amount for which the Employee is indemnified under
the preceding sentence (the “Indemnified Amount”) shall be computed on an after-tax basis, taking
into account any income or other taxes. The Employee shall keep the Company informed of all
developments in any audit with respect to a Requested Position. Upon payment of the Indemnified
Amount, or (if the Indemnified Amount is not yet payable) upon the Company’s written affirmation,
in form and substance reasonably satisfactory to the Employee, of the Company’s obligation to
indemnify the Employee with respect to the Requested Position, the Company shall be entitled, at
its sole expense, to control the contest regarding the disallowance or proposed disallowance of the
Requested Position, and the Employee agrees to cooperate in connection with such contest,
including, without limitation, executing powers of attorney and other documents at the reasonable
request of the Company. The Indemnified Amount shall be payable whenever an amount is payable to
the Internal Revenue Service as a result of the disallowance of a Requested Opinion. Following
payment by the Company of the Indemnified Amount, if the Requested Position is sustained by the
Internal Revenue Service or the courts, the Company shall be entitled to any resulting refund of
taxes, interest and penalties that were properly attributable to the Indemnified Amount.

(c) In the event of a Termination Upon a Change of Control, the Company shall, at its sole expense,
provide the Employee with outplacement services, the scope and provider of which shall be selected
by the Employee in his sole discretion and the cost of which shall not exceed an amount equal to
10% of the Employee’s then current Base Salary.

7. Acceleration and Vesting of Stock Options

All of the stock options granted to the Employee under the stock option plan of the Company or any
of its subsidiary companies shall become immediately exercisable and vested and shall remain
exercisable for a period of 12 months from the date of termination of the Employee (a) upon a
Change of Control or (b) if after the first anniversary of the Effective Date (i) the Board of
Directors of the Company shall fail at any given time to elect the Employee as a Vice-President of
the Company or to an executive position possessing comparable duties and responsibilities or (ii)
should the Company terminate the Agreement or the employment of the Employee without cause.
Notwithstanding any of the foregoing, under no circumstances shall an option remain exercisable for
more than 10 years after the date it was granted.

8. Confidentiality and Restrictive Covenant

The Employee acknowledges that as a condition of his employment he is required to maintain the
confidentiality of the Company’s confidential and proprietary information and, accordingly,
acknowledges that he is a party to and continues to be bound by the Confidentiality and Restrictive
Covenant Agreement dated as of June 17, 2005 between the Company and the Employee.

9

 

Belshaw Employment Contract 2006-06-17

 

9. Company Policies

The Employee agrees to comply with the written policies of the Company, including the Code of
Ethics for Directors, Senior Executive and Financial Officers and other Executive Officers and the
Business Conduct and Ethics Policy (including the Insider Trading Policy). The Company shall
promptly notify the Employee of any modifications to its policies.

10. Miscellaneous

(a) The failure to insist upon strict compliance with any of the terms, covenants or conditions of
this Agreement shall not be deemed a waiver of such terms, covenants or conditions, and the waiver
by either party of a breach of any provision of this Agreement shall not operate as or be construed
as a waiver of any subsequent breach thereof.

(b) Should a court or other body of competent jurisdiction determine that any provision of this
Agreement is invalid or unenforceable, such provision shall be adjusted rather than voided, if
possible, so that it is enforceable to the maximum extent possible, and all other provisions of the
Agreement shall be deemed valid and enforceable to the extent possible.

(c) This Agreement shall be governed by and construed in accordance with the laws of the State of
Colorado, without reference to principles of conflict of laws, and each of the parties submits to
the non-exclusive jurisdiction of the courts of the State of Colorado.

(d) Any and all notices referred to herein shall be in writing and may be delivered by mail, by
facsimile transmission or by hand. Notice shall be deemed given five days after mailing, if mailed
in the United States by registered mail, on the date of actual receipt if given by facsimile
transmission, or on the date of delivery, if delivered by hand.

Address for mailing, telecopy or delivery by hand shall be as follows:

	 	•	 	To the Employee:

	 
	 	 	 	Mr. Colin Belshaw

The Carriage House

Killiow Park, Kea

Truro

Cornwall TR3 6AG

United Kingdom

	 
	 	 	 	Fax: TBA

	 	•	 	To the Company:

	 
	 	 	 	10901 W. Toller Drive, Suite 300

Littleton CO 80127

UNITED STATES

Attention: President and CEO

	 
	 	 	 	Fax: +1-303-830-9094

or such other address as either party may from time to time designate in writing.

10

 

Belshaw Employment Contract 2006-06-17

 

(e) The parties hereby agree that any dispute or controversy arising out of or relating to this
Agreement, the Employee’s employment with the Company, or the termination or cancellation of that
employment or this Agreement, including without limitation any claim by the Employee under any
federal, state or local law or statute regarding discrimination in employment, shall be settled by
arbitration by a single arbitrator in accordance with the Commercial Arbitration Rules of the
American Arbitration Association from time to time in force. The hearing on any such arbitration
shall be held in Denver, Colorado. If such Commercial Arbitration Rules and practices shall
conflict with the Colorado Rules of Civil Procedure or any other provisions of Colorado law then in
force, such Colorado rules and provisions shall govern. Arbitration of any such dispute or
controversy shall be a condition precedent to any legal action thereon. This submission and
agreement to arbitration shall be specifically enforceable.

Within thirty (30) days after the receipt by one party of a written notice to arbitrate delivered
by the other party, the parties shall mutually select the arbitrator. If the parties cannot agree
on such arbitrator, the selection of the arbitrator shall be made in accordance with the procedures
of the American Arbitration Association.

Awards shall be final and binding on all parties to the extent and in the manner provided by
Colorado law. Each award shall expressly entitle the prevailing party to recover such party’s
attorneys’ fees and costs, and the award shall specifically allocate such fees and costs between
the parties. All awards may be filed by any party with the Clerk of the District Court in the City
and County of Denver, Colorado, and an appropriate judgment entered thereon and execution issued
therefore. At the election of any party, said award may also be filed, and judgment entered thereon
and execution issued therefore, with the clerk of one or more other courts, state or federal,
having jurisdiction over the party against whom such an award is rendered or its property.

(f) This Agreement is personal to the Employee and without the prior written consent of the Company
shall not be assignable by the Employee, provided that a deceased Employee’s right to payment
hereunder may be assigned by will or the laws of descent and distribution.

This Agreement shall inure to the benefit of and be binding upon the Company and its successors and
assigns.

The Company will require any successor (whether direct or indirect, by purchase, merger,
consolidation or otherwise) to all or substantially all of the business and/or assets of the
Company to assume expressly and agree to perform this Agreement in the same manner and to the same
extent that the Company would be required to perform it if no such succession had taken place. As
used in this Agreement, “Company” shall mean the Company as hereinbefore defined and any successor
to its business and/or assets that assumes and agrees to perform this Agreement by operation of
law, or otherwise.

(g) This Agreement supersedes any and all prior written and oral employment agreements between the
Company and the Employee and, together with the Confidentiality and Restrictive Covenant Agreement
between the Company and Employee dated November 21, 2005, represents the entire agreement between
the parties and may be amended, modified, superseded, or cancelled, and any of the terms hereof may
be waived, only by a written instrument executed by each party hereto or, in the case of a waiver,
by the party waiving compliance. The failure of any party at any time or

11

 

Belshaw Employment Contract 2006-06-17

 

times to require performance of any provisions hereof shall not affect the right at a later time to
enforce the same.

(h) This Agreement may be executed by the parties hereto in counterparts, each of which shall be
deemed an original, but all such counterparts shall together constitute one and the same
instrument.

(i) All compensation and benefits to the Employee hereunder shall be reduced by all federal, state,
local and other withholdings and similar taxes and payments required by applicable law.

IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the day and year
appearing on page one of this Agreement.

GOLDEN STAR RESOURCES LTD.

	 	 	 	 	 
	By:
	 	/s/ Peter Bradford	 	/s/ Allan Marter
	 

	 	 
	 	 
	Name:

	 	Peter Bradford
	 	Witness
	Title:

	 	President and Chief Executive Officer	 	 
	 
	 
	/s/ Colin Belshaw	 	 
	 	 	 
	Colin Belshaw	 	 Witness

12

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