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                                                                 EXHIBIT 10.1(g)

                         EXECUTIVE EMPLOYMENT AGREEMENT

      THIS EXECUTIVE EMPLOYMENT AGREEMENT (this "AGREEMENT") is made and entered
into as of the 5th day of June 2002, by and between AMERISTAR CASINOS, INC., a
Nevada corporation, with its principal offices located at 3773 Howard Hughes
Parkway, Suite 490S, Las Vegas, Nevada 89109 (the "COMPANY"), and ANGELA R.
BAKER (the "EXECUTIVE").

                                    RECITALS

      WHEREAS, the Company conducts a business in the gaming industry, including
the operation of casinos, hotels, restaurants and other similar amenities, and
the Executive has substantial expertise and experience in the gaming industry;
and

      WHEREAS, the Company currently employs the Executive on an at-will basis
and desires to employ the Executive pursuant to the terms and conditions of this
Agreement, and the Executive has agreed to be employed by the Company on the
terms and conditions set forth herein.

      NOW, THEREFORE, in consideration of the promises and mutual covenants
contained herein and for other good and valuable consideration, the Company and
the Executive (each individually a "PARTY" and together the "PARTIES") agree as
follows:

                              TERMS AND CONDITIONS

      1. DEFINITIONS. In addition to certain terms defined elsewhere in this
Agreement, the following terms shall have the following respective meanings:

            1.1 "AFFILIATE" shall mean any Person that directly, or indirectly
      through one or more intermediaries, controls or is controlled by or is
      under common control with the Person specified. For purposes of this
      definition, control of a Person means the power, direct or indirect, to
      direct or cause the direction of the management and policies of such
      Person whether by contract or otherwise and, in any event and without
      limitation of the previous sentence, any Person owning ten percent (10%)
      or more of the voting securities of another Person shall be deemed to
      control that Person.

            1.2 "BASE SALARY" shall mean the salary provided for in Section 3.1
      of this Agreement.

            1.3 "BOARD" shall mean the Board of Directors of the Company.

            1.4 "CAUSE" shall mean that the Executive:

                  (a) has been formally charged with or convicted of a felony or
            any crime involving fraud, theft, embezzlement, dishonesty or moral
            turpitude;

                  (b) has participated in fraud, embezzlement, or other act of
            dishonesty involving the Company;

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                  (c) has been found unsuitable to hold a gaming license or has
            failed in a timely manner to seek or obtain any finding of
            suitability or other approval by any gaming regulatory authority
            whose license, finding of suitability or other approval is legally
            required as a condition of the Executive's performance of his or her
            duties and responsibilities under this Agreement;

                  (d) has failed to fulfill or maintain all suitability and
            character requirements for continued employment by the Company as
            from time to time may be imposed pursuant to the Company's Gaming
            Compliance Program, written Company policies or gaming laws,
            regulations or orders applicable to the Company or one of its
            Affiliates;

                  (e) in carrying out his or her duties under this Agreement,
            has engaged in acts or omissions constituting gross negligence or
            willful misconduct resulting in, or which, in the good faith opinion
            of the Company could be expected to result in, material economic
            harm to the Company;

                  (f) has failed for any reason, within ten (10) days of receipt
            by the Executive of written notice thereof from Company, to correct,
            cease or alter any action or omission that (i) in the good faith
            opinion of the Company does or may materially and adversely affect
            its business or operations, (ii) violates or does not conform with
            the Company's policies, standards or regulations, or (iii)
            constitutes a material breach of this Agreement;

                  (g) has through willful or grossly negligent conduct disclosed
            any Confidential Information without authorization except as
            otherwise permitted by this Agreement, any other agreement between
            the Parties or any policy of the Company in effect at the time of
            disclosure; or

                  (h) has failed for any reason, within ten (10) days of receipt
            by the Executive of written notice thereof from the Company, to
            correct, cease or alter any action or omission by which the
            Executive has breached his or her duty of loyalty to the Company.

            The Company shall have the burden of proving Cause in any dispute
            proceeding between the Company and the Executive.

            1.5 A "CHANGE IN CONTROL" shall be deemed to have occurred if:

                  (a) individuals who, as of the date of this Agreement,
            constitute the entire Board of Directors of the Company ("INCUMBENT
            DIRECTORS") cease for any reason to constitute at least a majority
            of the Board of Directors of the Company; provided, however, that
            any individual becoming a director subsequent to such date whose
            election, or nomination for election by the


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            Company's stockholders, was approved by a vote of at least a
            majority of the then Incumbent Directors (other than an election or
            nomination of an individual whose assumption of office is the result
            of an actual or threatened election contest relating to the election
            of directors of the Company), also shall be an Incumbent Director;
            or

                  (b) the stockholders of the Company shall approve (A) any
            merger, consolidation, or recapitalization of the Company (or, if
            the capital stock of the Company is affected, any subsidiary of the
            Company) or any sale, lease, or other transfer (in one transaction
            or a series of transactions contemplated or arranged by any party as
            a single plan) of all or substantially all of the assets of the
            Company (each of the foregoing being an "ACQUISITION TRANSACTION")
            where (1) the stockholders of the Company immediately prior to such
            Acquisition Transaction would not immediately after such Acquisition
            Transaction beneficially own, directly or indirectly, shares
            representing in the aggregate more than fifty percent (50%) of (a)
            the then outstanding common stock of the corporation surviving or
            resulting from such merger, consolidation or recapitalization or
            acquiring such assets of the Company, as the case may be (the
            "SURVIVING CORPORATION") (or of its ultimate parent corporation, if
            any) and (b) the Combined Voting Power (as defined below) of the
            then outstanding Voting Securities (as defined below) of the
            Surviving Corporation (or of its ultimate parent corporation, if
            any) or (2) the Incumbent Directors at the time of the initial
            approval of such Acquisition Transaction would not immediately after
            such Acquisition Transaction constitute a majority of the Board of
            Directors of the Surviving Corporation (or of its ultimate parent
            corporation, if any) or (B) any plan or proposal for the liquidation
            or dissolution of the Company; or

                  (c) any Person (as defined below) other than a Permitted
            Holder (as defined below) shall become the beneficial owner (as
            defined in Rules 13d-3 and 13d-5 under the Securities Exchange Act
            of 1934, as amended (THE "EXCHANGE ACT")), directly or indirectly,
            of securities of the Company representing in the aggregate fifty
            percent (50%) or more of either (i) the then outstanding shares of
            the Company Common Stock or (ii) the Combined Voting Power of all
            then outstanding Voting Securities of the Company; provided,
            however, that notwithstanding the foregoing, a Change of Control
            shall not be deemed to have occurred for purposes of this clause (c)
            solely as the result of:

                        (A) an acquisition of securities by the Company which,
                  by reducing the number of shares of the Company Common Stock
                  or other Voting Securities outstanding, increases (i) the
                  proportionate number of shares of the Company Common Stock
                  beneficially owned by any Person to fifty percent (50%) or
                  more of the shares of the Company Common Stock then
                  outstanding or (ii) the proportionate voting power represented


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                  by the Voting Securities beneficially owned by any Person to
                  fifty percent (50%) or more of the Combined Voting Power of
                  all then outstanding Voting Securities; or

                        (B) an acquisition of securities directly from the
                  Company except that this paragraph (B) shall not apply to:

                        (1)   any conversion of a security that was not acquired
                              directly from the Company; or

                        (2)   any acquisition of securities if the Incumbent
                              Directors at the time of the initial approval of
                              such acquisition would not immediately after (or
                              otherwise as a result of) such acquisition
                              constitute a majority of the Board of Directors of
                              the Company.

                  (d) For purposes of this Section 1.5:

                        (i) "PERSON" shall mean any individual, entity
                  (including, without limitation, any corporation (including,
                  without limitation, any charitable corporation or private
                  foundation), partnership, limited liability company, trust,
                  joint venture, association or governmental body) or group (as
                  defined in Section 13(d)(3) or 14(d)(2) of the Exchange Act
                  and the rules and regulations thereunder); provided, however,
                  that "Person" shall not include the Company, any of its
                  subsidiaries, any employee benefit plan of the Company or any
                  of its majority-owned subsidiaries or any entity organized,
                  appointed or established by the Company or such subsidiary for
                  or pursuant to the terms of any such plan;

                        (ii) "VOTING SECURITIES" shall mean all securities of a
                  corporation having the right under ordinary circumstances to
                  vote in an election of the Board of Directors of such
                  corporation;

                        (iii) "COMBINED VOTING POWER" shall mean the aggregate
                  votes entitled to be cast generally in the election of
                  directors of a corporation by holders of then outstanding
                  Voting Securities of such corporation; and

                        (iv) "PERMITTED HOLDER" shall mean (A) the Company or
                  any trustee or other fiduciary holding securities under an
                  employee benefit plan of the Company and (B) to the extent
                  they hold securities in any capacity whatsoever, Craig H.
                  Neilsen and Ray Neilsen and their respective estates, spouses,
                  heirs, ancestors, lineal descendants,


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                  stepchildren, legatees and legal representatives, and the
                  trustees of any bona fide trusts of which one or more of the
                  foregoing are the sole beneficiaries or grantors thereof and
                  (C) any Person controlled, directly or indirectly, by one or
                  more of the foregoing Persons referred to in the immediately
                  preceding clause (B), whether through the ownership of voting
                  securities, by contract, in a fiduciary capacity, through
                  possession of a majority of the voting rights (as directors
                  and/or members) of a not-for-profit entity, or otherwise.

            1.6 "CODE" shall mean the Internal Revenue Code of 1986, as amended,
      or any succeeding provisions of law. Any references herein to specific
      sections of the Code shall extend to and include the applicable succeeding
      provisions of law, if any.

            1.7 "COMPANY PROPERTY" shall mean all items and materials provided
      by the Company to the Executive, or to which the Executive has access, in
      the course of his or her employment, including, without limitation, all
      Confidential Information and all other files, records, documents,
      drawings, specifications, memoranda, notes, reports, studies, manuals,
      equipment, computer disks, videotapes, blueprints and other documents and
      similar items relating to the Company, its Affiliates or their respective
      customers, whether prepared by the Executive or others, and any and all
      copies, abstracts and summaries thereof.

            1.8 "COMPENSATION COMMITTEE" shall mean the Compensation Committee
      of the Board.

            1.9 "COMPETING BUSINESS" shall mean any Person engaged in the casino
      gaming industry directly or through an Affiliate or subsidiary.

            1.10 "CONFIDENTIAL INFORMATION" shall mean all Confidential
      Information as defined in the Company's Confidentiality and Non-Disclosure
      Policy as in effect from time to time, the current version of which has
      been delivered to the Executive.

            1.11 "DEFERRED COMPENSATION PLAN" shall mean the Company's Deferred
      Compensation Plan, as in effect on the date of this Agreement and as it
      may be amended from time to time. The terms and conditions of such Plan
      shall be substantially similar during the Executive's employment under
      this Agreement as terms and conditions of comparable deferred compensation
      arrangements for other senior executive officers of the Company in effect
      from time to time.

            1.12 "DISABILITY" shall mean a physical or mental incapacity that
      prevents the Executive from performing, with or without reasonable
      accommodation, the essential functions of his or her position with the
      Company for a period of ninety (90) consecutive days as determined: (a) in
      accordance with any long-term disability plan provided by the Company of
      which the Executive is a participant; or (b) by a licensed


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      healthcare professional selected by the Company, in its sole discretion,
      to determine whether a Disability exists, to whom the Executive hereby
      agrees to submit to medical examinations. In addition, the Executive may
      submit to the Company documentation of a Disability, or lack thereof, from
      a licensed healthcare professional of his or her choice. Following a
      determination of a Disability or lack of Disability by the Company's or
      the Executive's licensed healthcare professional, the other Party may
      submit subsequent documentation relating to the existence of a Disability
      from a licensed healthcare professional selected by such other Party. In
      the event that the medical opinions of such licensed healthcare
      professionals conflict, such licensed healthcare professionals shall
      appoint a third licensed healthcare professional to examine the Executive,
      and the opinion of such third licensed healthcare professional shall be
      dispositive.

            1.13 "ERISA" shall mean the Employee Retirement Income Security Act
      of 1974, as amended.

            1.14 "GOOD REASON" as used in this Agreement shall mean and exist
      if, without the Executive's prior written consent, one or more of the
      following events occurs and the Company fails for any reason, within ten
      (10) days of receipt by the Company of written notice thereof from the
      Executive, to correct, cease or alter any action or omission causing any
      such event(s):

                  (a) the Executive is assigned any significant duties or
            responsibilities that are inconsistent with the scope of duties and
            responsibilities associated with the Executive's position as
            described in Section 2.3 including without limitation the
            requirement that the Executive report to any person other than the
            Chief Executive Officer or Chief Operating Officer of the Company;

                  (b) the Executive is required to relocate from, or maintain
            his or her principal office outside of, a twenty-five (25) mile
            radius of his or her principal office location as of the date of
            this Agreement;

                  (c) the Executive's Base Salary is decreased by the Company;

                  (d) during the first twelve (12) months following a Change in
            Control, the failure of the Company to award the Executive an annual
            bonus equal to at least seventy-five percent (75%) of the average
            amount of the annualized bonus paid to the Executive for the last
            two (2) full years;

                  (e) the Executive is excluded from participation in any
            employee benefit or short-term incentive plan or program or his or
            her benefits under such plans or programs are materially reduced in
            violation of Section 4.1 or any other provision of this Agreement;


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                  (f) the Company fails to pay the Executive any deferred
            payments that have become payable under the Deferred Compensation
            Plan;

                  (g) the Company fails to reimburse the Executive for business
            expenses properly incurred in accordance with the Company's
            policies, procedures or practices;

                  (h) the Company fails to obtain a written agreement from any
            assignee of the Company to assume the obligations under this
            Agreement, the Indemnification Agreement and any and all stock
            option and restricted stock agreements between the Executive and the
            Company (or a substantially equivalent replacement for such stock
            option and restricted stock agreements) upon an assignment of this
            Agreement in a sale of assets constituting a Change in Control; or

                  (i) a material breach by the Company of its obligations under
            this Agreement, the Indemnification Agreement, or any written plan
            documents or agreements of the Company defining stock option rights,
            restricted stock rights or employee benefit plans rights of the
            Executive.

            If the Company disputes the existence of Good Reason, the Company
            shall have the burden of proving the absence of Good Reason.

            1.15 "INDEMNIFICATION AGREEMENT" means that certain Indemnification
      Agreement of even date herewith by and between the Company and the
      Executive.

            1.16 "PERSON" shall mean any individual, firm, partnership,
      association, trust, company, corporation, limited liability company or
      other entity.

            1.17 "RESTRICTED AREA" shall mean the areas within a fifty (50) mile
      radius of any specifically identified location at which the Company or one
      of its Affiliates operates a casino, or has publicly announced in good
      faith an intention to operate a casino, on the date of termination or
      expiration of the Executive's employment; provided, however, that (i) if
      the Company or one of its Affiliates operates a casino, or has publicly
      announced in good faith an intention to operate a casino, in the Las Vegas
      Strip and/or Las Vegas Downtown market areas but not in the Las Vegas
      Locals market area, then the Restricted Area in respect of such casino or
      casinos shall be applicable only to Las Vegas Strip and Las Vegas Downtown
      market area casinos, and (ii) if the Company or one of its Affiliates
      operates a casino, or has publicly announced in good faith an intention to
      operate a casino, in the Las Vegas Locals market area but not in the Las
      Vegas Strip and/or Las Vegas Downtown market areas, then the Restricted
      Area in respect of such casino or casinos shall be applicable only to Las
      Vegas Locals market area casinos.


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            1.18 "RESTRICTION PERIOD" shall mean the period ending twelve (12)
      months after the termination or expiration of the Term of Employment,
      regardless of the reason for such termination or expiration.

            1.19 "TERM OF EMPLOYMENT" shall mean the period specified in Section
      2.2.

      2. TERM OF EMPLOYMENT, POSITION AND RESPONSIBILITIES.

            2.1 EMPLOYMENT ACCEPTED. The Company hereby employs the Executive,
      and the Executive hereby accepts employment with the Company, for the Term
      of Employment, in the position and with the duties and responsibilities
      set forth in Section 2.3, and upon such other terms and subject to such
      other conditions as are stated in this Agreement.

            2.2 TERM OF EMPLOYMENT. The initial Term of Employment shall
      commence on June 5, 2002, and unless earlier terminated pursuant to the
      provisions of this Agreement, the initial Term of Employment shall
      terminate at the close of business on June 4, 2003; provided, however,
      that the initial Term of Employment shall automatically be extended for
      successive one-year terms, unless either Party gives written notice of
      termination in accordance with Section 13 not less than ninety (90) days
      prior to the expiration of the then-present Term of Employment. In the
      event that such notice is given, the Executive's employment shall
      terminate at the close of business on the last day of then current Term of
      Employment and in that event that date shall be the Executive's last day
      of employment.

            2.3 TITLE AND RESPONSIBILITIES.

                  (a) During the Term of Employment, the Executive shall be
            employed as Senior Vice President of Operations of the Company and
            will perform such other duties and services as, from time to time,
            are reasonably required by the Company's Chief Executive Officer,
            Chief Operating Officer or Board. The Executive shall be responsible
            for supervision of certain General Managers of the Company's
            operating properties and certain Corporate departments of the
            Company, as determined from time to time by the Company's Chief
            Executive Officer or Chief Operating Officer. The Executive shall be
            appointed by the Board as a corporate executive officer of the
            Company at all times during the Term of Employment. The Executive
            will report directly to the Chief Executive Officer or the Chief
            Operating Officer of the Company, as determined from time to time by
            the Company. During the Term of Employment, the Company will not
            reduce the title or responsibilities of the Executive.

                  (b) Except as set forth below, during the Term of Employment,
            the Executive shall devote substantially all of his or her business
            time and attention


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            to the business and affairs of the Company and its subsidiaries and
            Affiliates and shall use his or her best efforts, skills and
            abilities to promote the Company's interests. Notwithstanding the
            foregoing, the Executive shall not be precluded from engaging in
            charitable and community affairs and managing his or her personal
            investments, as long as such activities do not materially detract
            from the Executive's performance of his or her duties under this
            Agreement. The Executive may serve as a member of the board of
            directors (or the equivalent) of corporations and limited liability
            companies, subject to the approval of a majority of the Board.

      3. COMPENSATION.

            3.1 BASE SALARY. During the Term of Employment, the Executive shall
      be entitled to receive a base salary (the "BASE SALARY") payable in
      monthly or more frequent installments as shall be established by the
      Company as its normal payroll practice from time to time or as required by
      applicable law at an annualized rate of no less than Three Hundred
      Thousand Dollars and 00/100 ($300,000.00), subject to reduction for any
      and all applicable federal, state, and local withholding, social security
      and unemployment taxes. Such Base Salary shall be reviewed annually as of
      the anniversary of the date of this Agreement for increase (but not
      decrease) in the discretion of the Company. In conducting any such annual
      review, the Company shall consider any change in the Executive's
      responsibilities, the performance of the Executive and/or other factors
      deemed pertinent by the Company. Such increased Base Salary shall then
      constitute the Executive's "Base Salary" for purposes of this Agreement.

            3.2 ANNUAL BONUS. Based on merit and the financial performance of
      the Company, the Executive will be eligible to receive a discretionary
      bonus for each fiscal year of the Company equal to up to fifty percent
      (50%) of the Executive's weighted average Base Salary for such fiscal year
      ("ANNUAL BONUS"). Any Annual Bonus that may be awarded to the Executive
      shall be paid at the same time as annual bonuses are paid to other
      similarly situated management personnel of the Company, unless the
      Executive has elected to defer receipt of all or part of the bonus amounts
      to which he or she is entitled in respect of any such calendar year, in
      accordance with the terms and provisions of any Deferred Compensation Plan
      maintained by the Company.

            3.3 DEFERRED COMPENSATION. Subject to the approval of the
      Compensation Committee, the Executive shall be eligible to participate in
      the Company's Deferred Compensation Plan pursuant to the terms of that
      plan.


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      4. EMPLOYEE BENEFIT PROGRAMS.

            4.1 PENSION AND WELFARE BENEFIT PLANS. In addition to the benefits
      provided for in Sections 3.3 and 3.4, during the Term of Employment, the
      Executive shall be entitled to participate in all employee benefit plans
      and programs made available to similarly situated senior management
      personnel of the Company generally, as such programs may be in effect from
      time to time, including, without limitation, pension and other retirement
      plans, profit sharing plans, group life insurance, group health insurance,
      group health supplemental insurance coverage through the Company's
      Exec-U-Care Medical Plan or a substitute plan, accidental death and
      dismemberment insurance, long-term disability, sick leave (including
      salary continuation arrangements), vacations, paid time off, holidays and
      other employee benefit programs as such plans and programs are exclusively
      described in written plan and program documents, subject to the
      eligibility criteria, rules, plan provisions and regulations applicable to
      such plans and programs and to the provisions of ERISA and the Code.
      Nothing contained herein shall be construed as negating or limiting the
      ability of the Company to amend, modify or terminate any employee benefit
      programs or plans, in its sole discretion. The Executive's wage income
      subject to income taxation will include certain imputed amounts in respect
      of the life insurance benefits and primary group health plan benefits
      provided by the Company without cost to the Executive, but the Executive
      will not be required to contribute to the cost of these programs except as
      set forth in the last sentence of this Section. The amount of imputed
      income in respect of these benefits will be measured by the premium
      contribution that otherwise would be due from the Executive under the
      provisions of the plan but for the Company's waiver of the Executive's
      contribution requirements. The Executive will be responsible for making
      payment through payroll deduction of premiums for group long-term
      disability coverage if the Executive elects to enroll for such coverage;
      provided, however, that in such event, the gross amount of each payroll
      installment received by the Executive will be increased by an amount equal
      to any long-term disability premium deducted from such installment.

            4.2 RESPONSIBILITY FOR TAX LIABILITIES. Except as may otherwise be
      expressly provided in this Agreement, the Company shall not be responsible
      in any way for any income or other tax liabilities of the Executive due in
      connection with the receipt by the Executive of any compensation, benefits
      or perquisites from the Company.

      5. BUSINESS EXPENSE REIMBURSEMENT AND PERQUISITES.

            5.1 EXPENSE REIMBURSEMENT. During the Term of Employment, the
      Executive shall be entitled to receive reimbursement by the Company for
      all reasonable out-of-pocket expenses incurred by him or her in performing
      services under this Agreement, including any relocation expenses in
      accordance with Company policies, subject to


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      providing the proper documentation of said expenses and to Company
      policies in effect from time to time with respect thereto.

            5.2 PERQUISITES. During the Term of Employment, the Executive shall
      also be entitled to the Company's perquisites provided to executive
      officers generally, including vacations and other paid time off, in
      accordance with the written terms and provisions of the documents
      exclusively defining applicable policies as in effect from time to time,
      including, without limitation:

                  (a) the Executive will receive hotel, food and beverage
            complimentary privileges for business and personal use at the
            properties operated by the Company's subsidiaries, including for the
            benefit of guests of the Executive whether or not the Executive is
            present; and

                  (b) the Executive will be eligible for complimentary use of
            the Company's condominiums in Sun Valley, Idaho, for so long as the
            Company retains such leased condominiums.

      6. TERMINATION OF EMPLOYMENT.

            6.1 TERMINATION DUE TO DEATH OR DISABILITY. The Executive's
      employment shall be terminated immediately in the event of his or her
      death or Disability. In the event of a termination due to the Executive's
      death or Disability, the Executive or his or her beneficiary designated
      pursuant to Section 16, or if none, his or her estate, as the case may be,
      shall be entitled, in consideration of the Executive's obligations under
      Section 10 and in lieu of any other compensation whatsoever, to:

                  (a) earned but unpaid Base Salary at the time of his or her
            death or Disability;

                  (b) any Annual Bonus earned pursuant to Section 3.2, in
            respect of employment during the entire calendar year preceding the
            calendar year in which death or Disability occurs, but not yet paid;

                  (c) reimbursement for expenses incurred but not paid prior to
            such termination of employment pursuant to Section 5.1;

                  (d) an amount equal to any accrued but unused vacation or
            other paid time off as of the termination of employment;

                  (e) such rights to other benefits as may be provided in
            applicable written plan documents and agreements of the Company,
            including, without limitation, documents and agreements defining
            stock option rights, restricted


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                        stock rights and applicable employee benefit plans and
                        programs, according to the terms and conditions of such
                        documents and agreements; and

                  (f)   any and all amounts owed by the Company under Sections
                        6.1(a), 6.1(b), 6.1(c) and 6.1(d) shall be paid by the
                        Company within sixty (60) days of the date of
                        termination of employment. Any and all amounts owed by
                        the Company under Section 6.1(e) shall be paid at the
                        later of sixty (60) days following the date of
                        termination or the date(s) specified under the
                        applicable written plan documents or agreements.

            6.2 TERMINATION BY THE COMPANY FOR CAUSE. The Company may terminate
      the Executive's employment for Cause at any time during the Term of
      Employment by giving written notice to the Executive that the Company
      intends to terminate his or her employment for Cause and setting forth the
      basis of the Cause with reasonable specificity. In the event of a
      termination for Cause, the Executive shall be entitled, in consideration
      of the Executive's obligations under Section 10 and in lieu of any other
      compensation whatsoever, to:

                  (a) earned but unpaid Base Salary through the date of
            termination of employment;

                  (b) any Annual Bonus earned pursuant to Section 3.2, in
            respect of employment during the entire calendar year preceding the
            calendar year in which termination occurs, but not yet paid;

                  (c) reimbursement for expenses incurred but not paid prior to
            such termination of employment pursuant to Section 5.1;

                  (d) an amount equal to any accrued but unused vacation or
            other paid time off as of the termination of employment;

                  (e) such rights to other benefits as may be provided in
            applicable written plan documents and agreements of the Company,
            including, without limitation, documents and agreements defining
            stock option rights, restricted stock rights and applicable employee
            benefit plans and programs, according to the terms and conditions of
            such documents and agreements; and

                  (f) any and all amounts owed by the Company under Sections
            6.2(a), 6.2(b), 6.2(c) and 6.2(d) shall be paid by the Company
            within sixty (60) days of the date of termination of employment. Any
            and all amounts owed by the Company under Section 6.2(e) shall be
            paid at the later of sixty (60) days following the date of
            termination or the date(s) specified under the applicable written
            plan documents or agreements.


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      No termination for Cause and nothing in this Agreement shall waive or be
      deemed to waive any rights or claims or remedies as may be available to
      the Company arising out of the facts giving rise to such termination for
      Cause.

            6.3 TERMINATION BY THE EXECUTIVE WITHOUT GOOD REASON. The Executive
      may terminate his or her employment without Good Reason on his or her own
      initiative for any reason or no reason upon thirty (30) days' prior
      written notice to the Company. Such termination shall have the same
      consequences as a termination by the Company for Cause under Section 6.2.

            6.4 TERMINATION BY THE EXECUTIVE FOR GOOD REASON. Notwithstanding
      any other provision of this Agreement, the Executive may terminate his or
      her employment hereunder at any time during the Term of Employment for
      Good Reason (as defined in Section 1.14 of this Agreement) by giving
      thirty (30) days' written notice to the Company that the Executive intends
      to terminate his or her employment for Good Reason. In the event of a
      termination by the Executive for Good Reason, the Executive shall be
      entitled, in consideration of the Executive's obligations under Section 10
      and in lieu of any other compensation and benefits whatsoever, to:

                  (a) an amount equal to one (1) times the Executive's
            annualized Base Salary at the rate in effect at the time of his or
            her termination, which shall be paid out in equal installments for
            the duration of the Restriction Period at the same frequency as the
            Company's regular payroll payments;

                  (b) earned but unpaid Base Salary through the date of
            termination of employment;

                  (c) any Annual Bonus earned pursuant to Section 3.2, in
            respect of employment during the entire calendar year preceding the
            calendar year in which termination occurs, but not yet paid;

                  (d) reimbursement for expenses incurred but not paid prior to
            such termination of employment pursuant to Section 5.1;

                  (e) an amount equal to any accrued but unused vacation or
            other paid time off as of the termination of employment;

                  (f) such rights to other benefits as may be provided in
            applicable written plan documents and agreements of the Company,
            including, without limitation, documents and agreements defining
            stock option rights, restricted stock rights and applicable employee
            benefit plans and programs, according to the terms and conditions of
            such documents and agreements;


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                  (g) continuation of the Executive's group health insurance
            (including Exec-U-Care or substitute benefits), at the Company's
            expense, for eighteen (18) months after the termination of
            employment or, at the Company's option, payment to the Executive of
            the economic equivalent thereof, which shall constitute the
            provision of COBRA benefits to the Executive; and

                  (h) any and all amounts owed by the Company under Sections
            6.4(b), 6.4(c), 6.4(d) and 6.4(e) shall be paid by the Company
            within sixty (60) days of the date of termination of employment. Any
            and all amounts owed by the Company under Sections 6.4(f) and 6.4(g)
            shall be paid at the later of sixty (60) days following the date of
            termination or the date(s) specified under the applicable written
            plan documents or agreements.

            6.5 TERMINATION BY THE COMPANY WITHOUT CAUSE. Notwithstanding any
      other provision of this Agreement, the Company may terminate the
      Executive's employment without Cause, other than due to death or
      Disability, at any time during the Term of Employment by giving written
      notice to the Executive that the Company intends to terminate his or her
      employment without Cause. In the event that the Company terminates the
      Executive's employment without Cause, the Executive shall be entitled, in
      consideration of the Executive's obligations under Section 10 and in lieu
      of any other compensation and benefits whatsoever, to:

                  (a) a payment amount equal to one (1) times the Executive's
            annualized Base Salary, at the rate in effect at the time of his or
            her termination, which shall be paid out in equal installments for
            the duration of the Restriction Period at the same frequency as the
            Company's regular payroll payments;

                  (b) earned but unpaid Base Salary through the date of
            termination of employment;

                  (c) any Annual Bonus earned pursuant to Section 3.2, in
            respect of employment during the entire calendar year preceding the
            calendar year in which termination occurs, but not yet paid;

                  (d) reimbursement for expenses incurred but not paid prior to
            such termination of employment pursuant to Section 5.1;

                  (e) an amount equal to any accrued but unused vacation or
            other paid time off as of the termination of employment;

                  (f) such rights to other benefits as may be provided in
            applicable written plan documents and agreements of the Company,
            including, without limitation, documents and agreements defining
            stock option rights, restricted


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            stock rights and applicable employee benefit plans and programs,
            according to the terms and conditions of such documents and
            agreements;

                  (g) continuation of the Executive's group health insurance
            (including Exec-U-Care or substitute benefits), at the Company's
            expense, for eighteen (18) months after the termination of
            employment or, at the Company's option, payment to the Executive of
            the economic equivalent thereof, which shall constitute the
            provision of COBRA benefits to the Executive; and

                  (h) any and all amounts owed by the Company under Sections
            6.5(b), 6.5(c), 6.5(d) and 6.5(e) shall be paid by the Company
            within sixty (60) days of the date of termination of employment. Any
            and all amounts owed by the Company under Sections 6.5(f) and 6.5(g)
            shall be paid at the later of sixty (60) days following the date of
            termination or the date(s) specified under the applicable written
            plan documents or agreements.

            6.6 TERMINATION DUE TO EXPIRATION OF THE TERM OF EMPLOYMENT. If
      either Party elects not to extend the initial Term of Employment or any
      successive Term of Employment, the Executive shall not be entitled to any
      additional compensation after the expiration thereof except as may be
      expressly provided for herein, but such termination of employment shall
      not otherwise affect accrued but unpaid compensation or benefits provided
      under this Agreement or pursuant to any Company plan or program.
      Notwithstanding the foregoing, if the Company elects not to extend the
      initial Term of Employment or any successive Term of Employment, such
      election shall have the same consequences as a termination of the
      Executive's employment without Cause, effective as of the last day of the
      then current Term of Employment, unless the Executive's employment is
      otherwise terminated prior to the last day of the then current Term of
      Employment, in which case the consequences of such termination of
      employment shall be dependent upon the basis for such termination of
      employment as provided in this Agreement.

      7. CHANGE IN CONTROL.

            7.1 CHANGE IN CONTROL PAYMENT. Immediately upon a Change in Control,
      in addition to any other compensation or benefits payable pursuant to this
      Agreement or otherwise, the Executive shall be entitled to a payment in
      cash equal to one (1) times his or her annualized Base Salary, without
      regard to continued employment or termination thereof under this
      Agreement. Unless otherwise provided for in this Agreement, the
      Executive's rights under a Change in Control to benefits under programs,
      plans and policies of the Company shall be determined according to the
      written terms and provisions of documents exclusively defining such
      programs, plans and policies.


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            7.2 TERMINATION BY THE COMPANY WITHOUT CAUSE OR BY THE EXECUTIVE FOR
      GOOD REASON AFTER A CHANGE IN CONTROL. If within twelve (12) months
      following a Change in Control, the Executive's employment is terminated by
      the Company without Cause or by the Executive for Good Reason, the
      Executive shall be entitled, in addition to any payment paid or payable
      pursuant to Section 7.1, but in lieu of any other compensation and
      benefits whatsoever (including but not limited to the compensation and
      benefits pursuant to Sections 6.4 and 6.5), to:

                  (a) an amount equal to one (1) times the Executive's
            annualized Base Salary at the rate in effect at the time (i) of his
            or her termination or (ii) immediately preceding the Change in
            Control, whichever is greater, which shall be paid out in equal
            installments for the duration of the Restriction Period at the same
            frequency as the Company's regular payroll payments;

                  (b) earned but unpaid Base Salary through the date of
            termination of employment;

                  (c) any Annual Bonus earned pursuant to Section 3.2, in
            respect of employment during the entire calendar year preceding the
            calendar year in which termination occurs, but not yet paid;

                  (d) reimbursement for expenses incurred but not paid prior to
            such termination of employment pursuant to Section 5.1;

                  (e) an amount equal to any accrued but unused vacation or
            other paid time off as of the termination of employment;

                  (f) such rights to other benefits as may be provided in
            applicable written plan documents and agreements of the Company,
            including, without limitation, documents and agreements defining
            stock option rights, restricted stock rights and applicable employee
            benefit plans and programs, according to the terms and conditions of
            such documents and agreements;

                  (g) continuation of the Executive's group health insurance
            (including Exec-U-Care or substitute benefits), at the Company's
            expense, for eighteen (18) months after the termination of
            employment or, at the Company's option, payment to the Executive of
            the economic equivalent thereof, which shall constitute the
            provision of COBRA benefits to the Executive; and

                  (h) any and all amounts owed by the Company under Sections
            7.2(b), 7.2(c), 7.2(d) and 7.2(e) shall be paid by the Company
            within sixty (60) days of the date of termination of employment. Any
            and all amounts owed by the Company under Sections 7.2(f) and 7.2(g)
            shall be paid at the later of sixty (60)


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            days following the date of termination or the date(s) specified
            under the applicable written plan documents or agreements.

            7.3 TERMINATION FOR OTHER REASONS AFTER A CHANGE IN CONTROL. If the
      Executive's employment is terminated after a Change in Control for any
      reason not otherwise provided for in this Section 7 (including without
      limitation a termination by the Company without Cause or a termination by
      the Executive for Good Reason more than twelve (12) months following the
      Change in Control), his or her rights shall be determined in accordance
      with the applicable subsection in Section 6.

      8. CONDITIONS TO PAYMENTS UPON TERMINATION.

            8.1 TIMING OF PAYMENTS. Unless otherwise provided herein, any
      payments to which the Executive shall be entitled under Sections 6 and 7
      shall be payable upon the satisfaction of the conditions set forth in this
      Agreement.

            8.2 NO MITIGATION; NO OFFSET. In the event of any termination of the
      Executive's employment under Section 6 or 7, the Executive shall be under
      no obligation to seek other employment, and there shall not be offset
      against amounts due to the Executive any remuneration attributable to any
      subsequent employment that the Executive may obtain. Notwithstanding any
      contrary provision contained herein, in the event of any termination of
      employment of the Executive, the exclusive remedies available to the
      Executive shall be the amounts due under Section 6 or 7, which are in the
      nature of liquidated damages, and are not in the nature of a penalty. In
      the event of a termination of this Agreement, neither Party shall publish
      in any way or make public any negative comment or statement about the
      other Party or concerning the reasons for such termination; provided,
      however, that this sentence shall not apply to written or oral testimony
      by either Party or their respective employees or agents or representatives
      in litigation, arbitration or administrative proceedings in which the
      Parties are adverse. The provisions of this Section 8.2 shall survive the
      expiration or earlier termination of this Agreement.

            8.3 COMPLIANCE WITH THE AGREEMENT. No payments or benefits payable
      to the Executive upon the termination of his or her employment pursuant to
      Section 6 or 7 shall be made to the Executive if he or she fails to comply
      with all of the terms and conditions of this Agreement, including, without
      limitation, any provisions requiring the Executive to pay any amounts to
      the Company and Sections 10 and 11.

            8.4 PAYMENTS UPON TERMINATION CONDITIONED ON RELEASE OF CLAIMS. Any
      payments to the Executive under Section 6 or 7 shall be subject to the
      condition that the Executive accepts and executes, without subsequent
      revocation, a release of claims substantially in the form attached hereto
      as Exhibit A.


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            8.5 CONTINUING OBLIGATIONS OF THE EXECUTIVE. No act or omission by
      the Executive in breach of this Agreement, shall be deemed to permit the
      Executive to forego or waive such payments in order to avoid his or her
      obligations under Section 10 or 11.

      9. SPECIAL REIMBURSEMENT.

            9.1 GROSS-UP PAYMENT. If any payment or benefit paid or payable, or
      received or to be received, by or on behalf of the Executive in connection
      with a Change in Control pursuant to Section 7.1 or the termination of the
      Executive's employment pursuant to Section 7.2, whether any such payments
      or benefits are pursuant to the terms of this Agreement or any other plan,
      arrangement or agreement with the Company, any Affiliate of the Company,
      any Person, or otherwise (the "TOTAL PAYMENTS"), will or would be subject
      to the excise tax imposed under Section 4999 of the Code (the "EXCISE
      TAX"), the Company shall pay to the Executive an additional amount (the
      "GROSS-UP PAYMENT") such that, after payment by the Executive of all taxes
      (including any interest or penalties imposed with respect to such taxes)
      imposed upon or in respect of the Gross-Up Payments, including, without
      limitation, any income taxes (and any interest and penalties imposed with
      respect thereto) and any Excise Tax imposed thereon, the Executive retains
      an amount of the Gross-Up Payment equal to the Excise Tax imposed upon the
      Total Payments.

            9.2 DETERMINATION OF EXCISE TAX LIABILITY. For purposes of
      determining whether any of the Total Payments will be subject to the
      Excise Tax and the amount of such Excise Tax, the Total Payments shall be
      treated as "parachute payments" within the meaning of Section 280G(b)(2)
      of the Code, and all "excess parachute payments" within the meaning of
      Section 280G(b)(1) of the Code shall be treated as subject to the Excise
      Tax, unless it is reasonably determined by tax counsel or another
      professional adviser selected by the Company (which determination shall be
      provided to the Executive) that (i) such Total Payments (in whole or in
      part) do not constitute parachute payments, including (without limitation)
      by reason of Section 280G(b)(4)(A) of the Code, (ii) such excess parachute
      payments (in whole or in part) represent reasonable compensation for
      services actually rendered, within the meaning of Section 280G(b)(4)(B) of
      the Code, or (iii) such Total Payments (in whole or in part) are not
      otherwise subject to the Excise Tax.

            9.3 REPAYMENT OBLIGATION. In the event that the Excise Tax is
      subsequently determined to be less than the amount taken into account
      hereunder, the Executive shall repay to the Company, at the time that the
      amount of such reduction in Excise Tax is finally determined, the portion
      of the Gross-Up Payment attributable to such reduction plus interest on
      the amount of such repayment at the rate provided in Section 1274(b)(2)(B)
      of the Code. In the event that the Excise Tax is determined to exceed the
      amount taken into account hereunder as of either the date of the Change in


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      Control or the date of actual payment, whichever is applicable (including
      by reason of any payment the existence or amount of which cannot be
      determined at the time of the initial Gross-Up Payment), the Company shall
      make an additional Gross-Up Payment in accordance with Section 9.1 in
      respect of such excess Excise Tax (plus any interest, penalties or
      additions payable by the Executive with respect to such excess Excise Tax)
      at the time that the amount of such excess Excise Tax is finally
      determined. The Executive and the Company shall each reasonably cooperate
      with each other in connection with any administrative or judicial
      proceedings concerning the existence or amount of any such subsequent
      liability for Excise Tax with respect to the Total Payments.

      10. COVENANT NOT TO ENGAGE IN CERTAIN ACTS.

            10.1 GENERAL. The Parties understand and agree that the purpose of
      the restrictions contained in this Section 10 is to protect the goodwill
      and other legitimate business interests of the Company, and that the
      Company would not have entered into this Agreement in the absence of such
      restrictions. The Executive acknowledges and agrees that the restrictions
      are reasonable and do not, and will not, unduly impair his or her ability
      to make a living after the termination of his or her employment with the
      Company. The provisions of this Section 10 shall survive the expiration or
      sooner termination of this Agreement.

            10.2 NON-ASSISTANCE; NON-DIVERSION. In consideration for this
      Agreement to employ the Executive and the other valuable consideration
      provided hereunder, the Executive agrees and covenants that during the
      Term of Employment and during the Restriction Period, and except when
      acting on behalf of the Company or on behalf of any Affiliate of the
      Company, the Executive shall not, directly or indirectly, for himself or
      herself or any third party, or alone or as a member of a partnership or
      limited liability company, or as an officer, director, shareholder, member
      or otherwise, engage in the following acts:

                  (a) divert or attempt to divert any existing business of the
            Company or any Affiliate of the Company;

                  (b) accept any position or affiliation or assignment with, or
            render any services (whether as an independent contractor or
            employee) on behalf of, any Competing Business within the Restricted
            Area;

                  (c) accept any position or affiliation or assignment or render
            any services (whether as an independent contractor or employee)
            within the corporate, divisional or regional headquarters or
            corporate, divisional or regional management group of any Competing
            Business whose operations and properties include one or more casinos
            within the Restricted Area; or


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                  (d) hire or retain any employee of the Company or any
            Affiliate of the Company to provide services for any other Person,
            or induce, solicit, attempt to solicit, encourage, divert, cause or
            attempt to cause any employee or prospective employee of the Company
            or any Affiliate of the Company to (i) terminate and/or leave such
            employment or (ii) accept employment with anyone other than the
            Company or an Affiliate of the Company.

            10.3 CESSATION/REIMBURSEMENT OF PAYMENTS. If the Executive violates
      any provision of this Section 10, the Company may, upon giving written
      notice to the Executive, immediately cease all payments and benefits that
      it may be providing to the Executive pursuant to Section 3, Section 4,
      Section 6 and Section 7.2, and the Executive shall be required to
      reimburse the Company for any payments received from, and the cash value
      of any benefits provided by, the Company between the first day of the
      violation and the date such notice is given; provided, however, that the
      foregoing shall be in addition to such other remedies as may be available
      to the Company and shall not be deemed to permit the Executive to forego
      or waive such payments in order to avoid his or her obligations under this
      Section 10; and provided, further, that any release of claims by the
      Executive pursuant to Section 8.4 shall continue in effect.

            10.4 SURVIVAL. The Executive agrees that the provisions of this
      Section 10 shall survive the termination of this Agreement and the
      termination of the Executive's employment.

      11. CONFIDENTIAL INFORMATION AND COMPANY PROPERTY.

            11.1 CONFIDENTIAL INFORMATION. The Executive understands and
      acknowledges that Confidential Information constitutes a valuable asset of
      the Company and its Affiliates and may not be converted to the Executive's
      own or any third party's use. Accordingly, the Executive hereby agrees to
      comply with the terms of the Company's Confidentiality and Non-Disclosure
      Agreement as in effect from time to time, the current version of which has
      been delivered to the Executive.

            11.2 COMPANY PROPERTY. All Company Property is and shall remain
      exclusively the property of the Company. Unless authorized in writing to
      the contrary, the Executive shall promptly, and without charge, deliver to
      the Company on the termination of employment hereunder, or at any other
      time the Company may so request, all Company Property that the Executive
      may then possess or have under his or her control.

            11.3 PROHIBITION ON INSIDER TRADING. The Executive hereby agrees to
      comply with and be bound by the Company's Insider Trading Policy as in
      effect from time to time, the current version of which has been delivered
      to the Executive.


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            11.4 SURVIVAL. The Executive agrees that the provisions of this
      Section 11 shall survive the termination of this Agreement and the
      termination of the Executive's employment.

      12. MUTUAL ARBITRATION AGREEMENT.

            12.1 ARBITRABLE CLAIMS. All disputes between the Executive (and his
      or her attorneys, successors, and assigns) and the Company (and its
      trustees, beneficiaries, officers, directors, members, managers,
      Affiliates, employees, agents, successors, attorneys, and assigns)
      relating in any manner whatsoever to the employment of or termination of
      employment of the Executive, including, without limitation, all disputes
      arising under this Agreement ("ARBITRABLE CLAIMS"), shall be resolved by
      binding arbitration as set forth in this Section 12, except for claims set
      forth in Section 12.4 (the "MUTUAL ARBITRATION AGREEMENT"). Arbitrable
      Claims shall include, but are not limited to: claims brought under Title
      VII of the Civil Rights Acts of 1964, the Civil Rights Act of 1991, the
      Age Discrimination in Employment Act of 1967 (including the Older Workers
      Benefit Protection Act), the Americans with Disabilities Act, the Fair
      Labor Standards Act, the Equal Pay Act, the Family and Medical Leave Act,
      ERISA, the Nevada Fair Employment Practices Act (NRS 613.010 et seq.), any
      state statutory wage claim under Chapter 608 of the Nevada Revised
      Statutes, or any other applicable federal, state or local labor or fair
      employment law, all as amended from time to time; claims for compensation;
      claims for breach of any contract or covenant (express or implied); tort
      claims of all kinds; and all claims based on any federal, state, or local
      law, statute or regulation. Arbitration shall be final and binding upon
      the parties and shall be the exclusive remedy for all Arbitrable Claims.
      THE PARTIES HEREBY WAIVE ANY RIGHTS THEY MAY HAVE TO TRIAL BY JUDGE OR
      JURY IN REGARD TO ARBITRABLE CLAIMS, EXCEPT AS PROVIDED BY SECTION 12.4.

            12.2 PROCEDURE. Arbitration of Arbitrable Claims shall be in
      accordance with the National Rules for the Resolution of Employment
      Disputes of the American Arbitration Association, as amended, and as
      augmented in this Agreement. Either Party may bring an action in court to
      compel arbitration under this Agreement and to enforce an arbitration
      award. Otherwise, neither Party shall initiate or prosecute any court
      action in any way related to an Arbitrable Claim. All arbitration hearings
      under this Agreement shall be conducted in Las Vegas, Nevada. Unless
      otherwise required by law or as may be required to uphold the
      enforceability of this Mutual Arbitration Agreement, the fees and costs of
      the arbitrator and of the American Arbitration Association shall be
      divided equally between both Parties.

            12.3 CONFIDENTIALITY. All proceedings and all documents prepared in
      connection with any Arbitrable Claim shall be confidential and, unless
      otherwise required by law, the subject matter and content thereof shall
      not be disclosed to any


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      Person other than the parties to the proceedings, their counsel, witnesses
      and experts, the arbitrator and, if involved, the court and court staff.

            12.4 APPLICABILITY. This Section 12 shall apply to all disputes
      under this Agreement other than disputes relating to the enforcement of
      the Company's rights under Sections 10 and 11 of this Agreement and the
      Company's right to seek injunctive relief as provided in Section 15.

            12.5 ACKNOWLEDGMENT. The Executive acknowledges that he or she:

                  (a) has carefully read this Section 12;

                  (b) understands its terms and conditions; and

                  (c) has entered into this Mutual Arbitration Agreement
            voluntarily and not in reliance on any promises or representations
            made by the Company other than those contained in this Mutual
            Arbitration Agreement.

      13. NOTICES. All notices, demands and requests required or permitted to be
given to either Party under this Agreement shall be in writing and shall be
deemed to have been given when delivered personally or sent by certified or
registered mail, postage prepaid, return receipt requested, duly addressed to
the Party concerned at the address indicated below or to such changed address as
such Party may subsequently give notice of:

            If to the Company:     Ameristar Casinos, Inc.
                                   3773 Howard Hughes Parkway
                                   Suite 490 South
                                   Las Vegas, Nevada  89109

                                   Attention:  Craig H. Neilsen
                                   President and Chief Executive Officer

            With a copy to:        Ameristar Casinos, Inc.
                                   3773 Howard Hughes Parkway
                                   Suite 490 South
                                   Las Vegas, Nevada 89109
                                   Attention:  Peter C. Walsh
                                   Senior Vice President and General Counsel

            If to the Executive:   Angela R. Baker
                                   280 Helmsdale Drive
                                   Henderson, Nevada  89014


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      14. RIGHT TO SEEK INJUNCTIVE RELIEF. The Executive acknowledges that a
violation on his or her part of any of the covenants contained in Sections 10
and 11 would cause immeasurable and irreparable damage to the Company. The
Executive accordingly agrees and hereby grants his or her consent that, without
limiting the remedies available to the Company, any actual or threatened
violation of such covenants may be enforced by injunctive relief or by other
equitable remedies issued or ordered by any court of competent jurisdiction.

      15. EMPLOYEE BENEFIT PLAN DOCUMENTS. In the event that any terms or
provisions of this Agreement conflict with the terms and provisions of any
employee benefit plan document, the terms and provisions of such employee
benefit plan document shall govern; and the Company shall take any and all
actions that may be necessary, including amendment of any plan document, to the
extent necessary to effect the provision of benefits expressly provided upon
termination of the Executive's employment pursuant to Sections 6 and 7.

      16. BENEFICIARIES/REFERENCES. The Executive shall be entitled to select a
beneficiary or beneficiaries to receive any compensation or benefit payable
hereunder following the Executive's death, and may change such election, by
giving the Company written notice thereof. In the event of the Executive's death
or a judicial determination of his or her incompetence, reference in this
Agreement to the Executive shall be deemed, where appropriate, to refer to his
or her beneficiary, estate or other legal representative.

      17. SURVIVORSHIP. The respective rights and obligations of the Parties
hereunder shall survive the expiration or any earlier termination of this
Agreement to the extent necessary to the intended preservation of such rights
and obligations. The provisions of this Section 17 are in addition to the
survivorship provisions of any other Section of this Agreement.

      18. REPRESENTATIONS AND WARRANTIES. Each Party represents and warrants
that he or she or it is fully authorized and empowered to enter into this
Agreement and that the performance of his or her or its obligations under this
Agreement will not violate any agreement between that Party and any other
Person.

      19. ENTIRE AGREEMENT. This Agreement and the Indemnification Agreement and
any contemporaneous documents expressly setting forth an agreement between the
Parties and expressly identified in this Agreement contain the entire agreement
between the Parties concerning the subject matter hereof and supersede all prior
agreements, understandings, discussions, negotiations and undertakings, whether
written or oral, express or implied, between the Parties with respect hereto. No
representations, inducements, promises or agreements not embodied herein shall
be of any force or effect.

      20. ASSIGNABILITY; BINDING NATURE. This Agreement shall be binding upon
and inure to the benefit of the Parties and their respective successors, heirs
and assigns; provided, however, that no rights or obligations of the Executive
under this Agreement may be


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assigned or transferred by the Executive, other than rights to compensation and
benefits hereunder, which may be transferred only by will or operation of law
and subject to the limitations of this Agreement.

      21. AMENDMENT OR WAIVER. No provision in this Agreement may be amended or
waived unless such amendment or waiver is agreed to in writing and signed by
both Parties. No waiver by one Party of any breach by the other Party of any
condition or provision of this Agreement to be performed by such other Party
shall be deemed a waiver of a similar or dissimilar condition or provision at
the same or any prior or subsequent time. No failure of either Party to exercise
any power given to such Party hereunder or to insist upon strict compliance by
the other Party with any obligation hereunder, and no custom or practice at
variance with the terms hereof, shall constitute a waiver of the right of such
Party to demand strict compliance with the terms hereof.

      22. SEVERABILITY. In the event that any provision or portion of this
Agreement shall be determined to be invalid or unenforceable for any reason, in
whole or in part, the remaining provisions of this Agreement shall be unaffected
thereby and shall remain in full force and effect to the fullest extent
permitted by law. Without limiting the foregoing, if any portion of Section 10
is held to be unenforceable, the maximum enforceable restriction of time, scope
of activities and geographic area will be substituted for any such restrictions
held unenforceable.

      23. GOVERNING LAW. This Agreement shall be governed by and construed and
interpreted in accordance with the laws of the State of Nevada without reference
to the principles of conflict of laws thereof. In the event of any dispute or
controversy arising out of or relating to this Agreement that is brought to a
court, the Parties mutually and irrevocably consent to, and waive any objection
to, the exclusive jurisdiction of any federal or state court of competent
jurisdiction sitting in Clark County, Nevada, to resolve such dispute or
controversy; provided, however, that nothing in this Section 23 shall affect the
Parties' agreement in Section 12 hereinabove that arbitration under Section 12
shall apply to all disputes under this Agreement other than as provided in
Section 12.4.

      24. INDEMNIFICATION. To the extent not otherwise required by law or the
Indemnification Agreement, the Company will consider in good faith, and
consistent with the Company's past practices, requests by the Executive for
indemnification against claims arising from the Executive's conduct in the
course and scope of the Executive's employment under this Agreement and for
advancement of expenses reasonably incurred in defending against such claims.

      25. HEADINGS. The headings of the Sections and Subsections contained in
this Agreement are for convenience only and shall not be deemed to control or
affect the meaning or construction of any provision of this Agreement.


                                      -24-

                                                     Executive's Initials ______
                                                       Company's Initials ______
<PAGE>

      26. COUNTERPARTS. This Agreement may be executed in counterparts, each of
which shall be deemed an original and all of which shall constitute one and the
same Agreement with the same effect as if all Parties had signed the same
signature page. Any signature page of this Agreement may be detached from any
counterpart of this Agreement and reattached to any other counterpart of this
Agreement identical in form hereto but having attached to it one or more
additional signature pages.

      27. ACKNOWLEDGMENT. The Executive represents and acknowledges the
following:

                  (a) he or she has carefully read this Agreement in its
            entirety;

                  (b) he or she understands the terms and conditions contained
            herein;

                  (c) he or she has had the opportunity to review this Agreement
            with legal counsel of his or her own choosing, and either has done
            so or has intentionally elected not to do so, and in any event he or
            she has not relied on any statements made by the Company or its
            legal counsel as to the meaning of any term or condition contained
            herein or in deciding whether to enter into this Agreement; and

                  (d) he or she is entering into this Agreement knowingly and
            voluntarily.

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

      THIS AGREEMENT CONTAINS A BINDING ARBITRATION PROVISION WHICH MAY BE
ENFORCED BY THE PARTIES.

                             AMERISTAR CASINOS, INC.

Date: 1-20-03                             By: /s/ GORDON R. KANOFSKY
     ------------------                      -----------------------------------
                                       Name:  Gordon R. Kanofsky
                                       Title: Executive Vice President

                                       EXECUTIVE:

Date: 1-14-03                            /s/ ANGELA R. BAKER
     ------------------                  ---------------------------------------
                                              ANGELA R. BAKER


                                      -25-

                                                     Executive's Initials ______
                                                       Company's Initials ______
<PAGE>

                                    EXHIBIT A

                              SEPARATION AGREEMENT
                                       AND
                           GENERAL AND SPECIAL RELEASE

      This Separation Agreement and General and Special Release ("Agreement") is
made by and between ANGELA R. BAKER (the "Executive") and AMERISTAR CASINOS,
INC., a Nevada corporation ("Company"), with respect to separation payments to
be paid to the Executive conditioned in part on a complete release by the
Executive of any and all claims against the Company and its affiliated entities,
their respective directors, officers, employees, agents, accountants, attorneys,
representatives, successors and assigns.

      In consideration of delivery to the Executive of the severance payments
and benefits by the Company conditionally promised by the Company in that
certain Executive Employment Agreement by and between the Executive and the
Company dated as of June 5, 2002 (the "Employment Agreement") and with the sole
exception of those obligations expressly recited herein or to be performed
hereunder and of the Executive's claims to vested interests the Executive may
have in employee benefit plans, stock options or restricted stock as defined
exclusively in written documents, the Executive and the Executive's heirs,
successors and assigns do hereby and forever release and discharge the Company
and its affiliated entities and their past and present directors, officers,
employees, agents, accountants, attorneys, representatives, successors and
assigns from any and all causes of action, actions, judgments, liens,
indebtedness, damages, losses, claims, liabilities and demands of whatsoever
kind and character in any manner whatsoever arising prior to the date of this
Agreement, including but not limited to any claim for breach of contract, breach
of implied covenant, breach of oral or written promise, allegedly unpaid
compensation, wrongful termination, infliction of emotional distress,
defamation, interference with contract relations or prospective economic
advantage, negligence, misrepresentation or employment discrimination, and
including without limitation, to the extent permitted by law, alleged violations
of Title VII of the Civil Rights Act of 1964 prohibiting discrimination based on
race, color, religion, sex or national origin, the Civil Rights Act of 1991, the
Age Discrimination in Employment Act of 1967 (including the Older Workers
Benefit Protection Act) prohibiting discrimination based on age over 40, the
Americans With Disabilities Act prohibiting discrimination based on disability,
the Fair Labor Standards Act, the Equal Pay Act, the Family and Medical Leave
Act, the Employee Retirement Income Security Act of 1974, the Nevada Fair
Employment Practices Act (NRS 613.010 et seq.), any state statutory wage claim
under Chapter 608 of the Nevada Revised Statutes, and any other federal, state
or local labor or fair employment law under which a claim might be brought were
it not released here, all as amended from time to time.

      The Executive assumes the risk of any mistake of fact and of any facts
which are unknown, and thereby waives any and all claims that this release does
not extend to claims which the Executive does not know or suspect to exist in
his or her favor at the time of


                                      -1-

                                                     Executive's Initials ______
                                                       Company's Initials ______
<PAGE>

executing this release, which if known by the Executive must or might have
materially affected his or her settlement with the Company.

      The Executive and the Company represent, understand and expressly agree
that this Agreement sets forth all of the agreements, covenants and
understandings of the parties, superseding all other prior and contemporaneous
oral and written agreements with respect to the termination or separation of the
Executive's employment excepting only those written agreements set forth or
referred to in the Employment Agreement between the Executive and the Company.
The Executive and the Company agree that no other agreements or covenants will
be binding upon the parties unless set forth in a writing signed by the parties
or their authorized representatives, and that each of the parties is authorized
to make the representations and agreements herein set forth by or on behalf of
each such party. The Executive and the Company each affirms that no promises
have been made to or by either to the other except as set forth in the
Employment Agreement or this Agreement.

      The Executive and the Company agree that any and all disputes,
controversies or claims arising out of this Agreement or concerning his or her
employment or its termination shall be determined exclusively by final and
binding arbitration pursuant to the terms of the Employment Agreement.


                                      -2-

                                                     Executive's Initials ______
                                                       Company's Initials ______
<PAGE>

      The Executive acknowledges that he or she has had twenty-one (21) days
within which to consider this Agreement if he or she has wished to do so, that
he or she has seven (7) days from the date of his or her acceptance of this
Agreement within which to revoke his or her acceptance, that he or she has been
and hereby is advised by the Company to consult with counsel concerning this
Agreement and has had an opportunity to do so, and that no payments will be made
to the Executive by the Company hereunder until after such seven (7) days and
until the Executive shall have provided thereafter reasonable assurances on
request that he or she has not revoked his or her acceptance of this Agreement
within such seven (7) days. The Executive affirms that he or she enters into
this Agreement freely and voluntarily.

      Dated ______________, _____ at ____________________________, _____________

                                     ___________________________________________
                                                      the Executive

      Dated ______________, _____ at ____________________________, _____________

                                     AMERISTAR CASINOS, INC.

                                     By ________________________________________

                                     Its _______________________________________

                                      -3-