Document:

exfourone.htm

TRANSFER TECHNOLOGY INTERNATIONAL CORP.

2011 STOCK OPTION PLAN

1.              Purposes of the Plan. The purposes of this Stock Option Plan are to attract and retain the best available personnel for positions of substantial responsibility, to provide additional incentive to the Employees and Consultants of the Company and to promote the success of the Company's business.

Options granted hereunder may be either "incentive stock options,"as defined in Section 422 of the Internal Revenue Code of 1986, as amended with respect to Employees, or "nonstatutory stock options," with respect to Consultants and/or Employees as reflected in the terms of the written Option Agreement.

2.              Definitions. As used herein, the following definitions shall apply

	
(a)

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

(b)              "Code" shall mean the Internal Revenue Code of 1986, as amended.

(c)              "Common Stock" shall mean the Common Stock of the Company.

	
(d)

	
"Company" shall mean Transfer Technology International Corp., a Delaware corporation.

	
(e)

	
"CEO" shall mean the Chief Executive Officer of the Company.

	
(f)

	
"Consultant" shall mean any person who is engaged by the Company or any subsidiary to render consulting services and is compensated for such consulting services, and any director of the Company whether compensated for such services or not.

	
(g)

	
"Continuous Status as an Employee or Consultant" shall mean the absence of any interruption or termination of service as an Employee or Consultant. Continuous Status as an Employee or Consultant shall not be considered interrupted in the case of sick leave, military leave, or any other leave of absence approved by the Board; provided that such leave is for a period of not more than 90 days or reemployment upon the expiration of such leave is guaranteed by contract or statute.

	
(h)

	
"Employee" shall mean any person, including officers and directors, employed by the Company or any Parent or Subsidiary of the Company. The payment of a director's fee by the Company shall not be sufficient to constitute "employment" by the Company.

  

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(i)

	
"Incentive Stock Option" shall mean an Option intended to qualify as an Incentive Stock Option within the meaning of Section 422 of the Code.

(j)              "Option" shall mean a Stock Option granted pursuant to the Plan.

(k)              "Option Stock" shall mean the Common Stock subject to an Option.

	
(l)

	
"Optionee" shall mean an Employee or Consultant who receives an Option.

	
(m)

	
"Parent" shall mean a "parent corporation," whether now or hereafter existing, as defined in Section 425(e) of the Code.

(n)              "Plan" shall mean this 2011 Stock Option Plan.

	
(o)

	
"Share" shall mean a share of the Common Stock, as adjusted in accordance with Section 11 of the Plan.

	
(p)

	
"Subsidiary" shall mean a subsidiary corporation, whether now or hereafter existing, as defined in Section 425(f) of the Code.

	
(q)

	
"Unvested Portion" shall mean any Option with respect to the number of shares of Common Stock for that Option that are not exercisable as of the date of the closing of a Transaction resulting in a Change in Control. In the case of a Change in Control which occurs as the results of a series of transactions, the closing date shall be deemed to be the closing date of the final Transaction affecting the Change in Control.

3.              Stock Subject to the Plan.  The maximum aggregate number of shares which may be optioned and sold under the Plan is fifteen million (15,000,000) shares of Common Stock, which may be authorized, but unissued, Common Stock.

If an Option should expire or become unexercisable for any reason without having been exercised in full, the unpurchased Shares which were subject thereto shall, unless the Plan shall have been terminated, become available for future grant under the Plan.

  

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4.              Administration of the Plan.

	
(a)

	
Procedure. The Plan shall be administered by the CEO of the Company.

	
(b)

	
Powers of the CEO. Subject to the provisions of the Plan, the CEO shall have the authority, in his discretion: (i) to grant Incentive Stock Options to Employees, in accordance with Section 422 of the Code, or "nonstatutory stock options to Consultants and/or Employees;" (ii) to determine, upon review of relevant information and in accordance with Section 8(b) of the Plan, the fair market value of the Common Stock; (iii) to determine the exercise price per share of Options to be granted, which exercise price shall be determined in accordance with Section 8(a) of the Plan; (iv) to determine the Employees or Consultants to whom, and the time or times at which, Options shall be granted and the number of shares to be represented by each Option; (v) to interpret the Plan; (vi) to prescribe, amend and rescind rules and regulations relating to the Plan; (vii) to determine the terms and provisions of each Option granted (which need not be identical) and, with the consent of the holder thereof, modify or amend each Option; (viii) to accelerate or defer (with the consent of the Optionee as to any deferral) the exercise date of any Option consistent with the provisions of Section 5 of the Plan; (ix) to make all other determinations deemed necessary or advisable for the administration of the Plan.

	
(c)

	
Effect of CEO's Decision. All decisions, determinations and interpretations of the CEO shall be final and binding on all Optionees and any other holders of any Options granted under the Plan.

5.              Eligibility.

	
(a)

	
Options may be granted only to Employees and Consultants. Incentive Stock Options may be granted only to Employees. An Employee or Consultant who has been granted an Option may, if he is otherwise eligible, be granted an additional Option or Options.

	
(b)

	
No Incentive Stock Option may be granted to an Employee which, when aggregated with all other incentive stock Options granted to such Employee by the Company or any Parent or Subsidiary, would result in Shares having an aggregate fair market value (determined for each Share as of the date of grant of the Option covering such Share) in excess of $100,000 becoming first available for purchase upon exercise of one or more Incentive Stock Options during any calendar year.

	
(c)

	
Section 5(b) of the Plan shall apply only to an Incentive Stock Option evidenced by a written Option agreement which shall expressly identify the Option as an Incentive Stock Option. Section 5(b) of the Plan shall not apply to any Option evidenced by an Option agreement which sets forth the intention of the Company and the Optionee that such Option shall be a nonstatutory Stock Option.

  

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(d)

	
The Plan shall not confer upon any Optionee any right with respect to continuation of employment or consulting relationship with the Company, nor shall it interfere in any way with his right or the Company's right to terminate his employment or consulting relationship at any time.

6.              Term of Plan. The Plan shall become effective upon the filing of Form S-8 with the United States Securities and Exchange Commission registering the Plan. It shall continue in effect for a term of ten (10) years unless sooner terminated under Section 13 of the Plan.

7.              Term of Option. The term of each Incentive Stock Option shall be ten (10) years from the date of grant thereof or such shorter term as may be provided in the Stock Option agreement. The term of each Option that is not an Incentive Stock Option shall be (10) years and one (1) day from the date of grant thereof or such shorter term as may be provided in the Stock Option agreement. However, in the case of an Option granted to an Optionee who, at the time the Option is granted, owns stock representing more than ten percent (10%) of the voting power of all classes of stock of the Company or any Parent or Subsidiary, (a) if the Option is an Incentive Stock Option, the term of the Option shall be five (5) years from the date of grant thereof or such shorter time as may be provided in the Stock Option agreement, or (b) if the Option is not an Incentive Stock Option, the term of the Option shall be five (5) years and one (1) day from the date of grant thereof or such shorter term as may be provided in the Stock Option agreement.

	
8.  

	
Exercise Price and Consideration.

	
(a)

	
The per Share exercise price for the Shares to be issued pursuant to exercise of an Option shall be such price as is determined by the CEO, but shall be subject to the following:  (i)  In the case of an Incentive Stock Option:  (A)  granted to an Employee who, at the time of the grant of such Incentive Stock Option, owns stock representing more than ten percent (10%) of the voting power of all classes of stock of the Company or any Parent or Subsidiary, the per Share exercise price shall be no less than 110% of the fair market value per Share on the date of grant,  (B) granted to an Employee, the per Share exercise price shall be no less than 100% of the fair market value per Share on the date of grant;  (ii) In the case of a nonstatutory Stock Option, the per Share exercise price shall be no less than the price per Share set by the CEO on the date of grant.

	
(b)

	
The fair market value shall be determined in the following manner. If the stock is unlisted, the fair market value shall be determined by the CEO, in his discretion. If listed, the value shall be the Closing Sales Price of the Company's Common Stock as reported on the NASDAQ National Market System on the business day immediately preceding the date of grant. In the event the Common Stock is listed on a stock exchange, the fair market value per share shall be the closing price on such exchange on the business day immediately preceding the date of grant, as reported in the Wall Street Journal.

  

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(c)

	
The consideration to be paid for the Shares to be issued upon exercise of an Option, including the method of payment shall be determined by the CEO and may consist entirely of cash, check, promissory note, surrender of shares of Common Stock of the Company acquired pursuant to the exercise of the Option, other Shares of Common Stock having a fair market value on the date of surrender equal to the aggregate exercise price of the Shares as to which said Option shall be exercised, or any combination of such methods of payment, or such other consideration and method of payment for the issuance of Shares to the extent permitted under Nevada Corporation Law. In making its determination as to the type of consideration to accept, the CEO shall consider if acceptance of such consideration may be reasonably expected to benefit the Company.

9.              Exercise of Option.

	
(a)

	
Procedure for Exercise; Rights as a Stockholder. Any Option granted hereunder shall be exercisable at such times and under such conditions as determined by the CEO, including performance criteria with respect to the Company and/or the Optionee, and as shall be permissible under the terms of the Plan. An Option may not be exercised for a fraction of a Share.  An Option shall be deemed to be exercised when written notice of such exercise has been given to the Company in accordance with the terms of the Option by the person entitled to exercise the Option and full payment for the Shares with respect to which the Option is exercised has been received by the Company. Full payment may, as authorized by the CEO, consist of any consideration and method of payment allowable under Section 8(c) of the Plan. Until the issuance (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company) of the Stock Certificate evidencing such shares, no right to vote or receive dividends or any other rights as a stockholder shall exist with respect to the Optioned Stock, notwithstanding the exercise of the Option. No adjustment will be made for a dividend or other right for which the record date is prior to the date the Stock Certificate is issued, except as provided in Section 11 of the Plan. Exercise of an Option in any manner shall result in a decrease in the number of Shares which thereafter may be available, both for purposes of the Plan and for sale under the Option, by the number of Shares as to which the Option is exercised.

	
(b)

	
Termination of Status as an Employee or Consultant. If an Employee or Consultant ceases to serve as an Employee or Consultant (as the case may be), he may, but only within three (3) months (or such other period of time not exceeding three (3) months as is determined by the CEO at the time of grant of the Option) after the date he ceases to be an Employee or Consultant (as the case may be) of the Company, exercise his Option to the extent that he was entitled to exercise it at the date of such termination. To the extent that he was not entitled to exercise the Option at the date of such termination, or if he does not exercise such Option (which he was entitled to exercise) within the time specified herein, the Option shall terminate.

  

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(c)

	
Disability of Optionee. Notwithstanding the provisions of Section 9(b) above, in the event an Employee or Consultant is unable to continue his employment or consulting relationship (as the case may be) with the Company as a result of his total and permanent disability (as defined in Section 22(e) (3) of the Internal Revenue Code), he may, but only within six (6) months (or such other period of time not less then six (6) months nor more than twelve (12) months as is determined by the Board at the time of grant of the Option) from the date of termination, exercise his Option to the extent he was entitled to exercise it at the date of such termination (or to such greater extent as the CEO may provide). To the extent that he was not entitled to exercise the Option at the date of termination, or if he does not exercise such Option (which he was entitled to exercise) within the time specified herein, the Option shall terminate.

	
(d)

	
Death of Optionee. In the event of the death of an Optionee:  (i) during the term of the Optionee who is at the time of his death an Employee or Consultant of the Company and who shall have been in Continuous Status as an Employee or Consultant since the date of grant of the Option, the Option may be exercised, at any time within twelve (12) months following the date of death, by the Optionee's estate or by a person who acquired the right to exercise the Option by bequest or inheritance, but only to the extent of the right to exercise that has accrued as of the date of death (or to such greater extent as the CEO may provide); or (ii) after the termination of Continuous Status as an Employee or Consultant, the Option may be exercised, at any time within six (6) months following the date of death, by the Optionee's estate or by a person who acquired the right to exercise the Option by bequest or inheritance, but only to the extent of the right to exercise that had accrued at the date of termination (or to such greater extent as the CEO may provide).

10.              Nontransferability of Options. The Option may not be sold, pledged, assigned, hypothecated, transferred, or disposed of in any manner other than by will or by the laws of descent or distribution and may be exercised, during the lifetime of the Optionee, only by the Optionee.

11.              Adjustments Upon Certain Changes.

	
(a)

	
Stock Split or Reclassification.  The number of Shares of Common Stock covered by each outstanding Option as well as the price per Share of Common Stock covered by each such outstanding Option, shall be proportionately adjusted for any increase or decrease in the number of shares of Common Stock resulting from a stock split, reverse stock split, stock dividend, combination or reclassification of the Common Stock, recapitalization, reorganization, or any other increase or decrease in the number of issued shares of Common Stock effected without receipt of consideration by the Company; provided, however, that conversion of any convertible securities of the Company shall not be deemed to have been "effected without receipt of consideration." Such adjustment shall be made by the CEO, whose determination in that respect shall be final, binding and conclusive.  Except as expressly provided herein, no issuance by the Company of shares of stock of any class, or securities convertible into Shares of stock of any class, shall affect, and no adjustment by reason thereof shall be made with respect to, the number or price of Shares of Common Stock subject to an Option. The Company shall provide to the optionee notice of any adjustment pursuant to this section 11(a) immediately.  No event described in this Section 11(a) or elsewhere in this document shall have the effect of changing the number of options and/or common shares subject to the Plan as set forth in Section 3 herein.

  

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(b)

	
Change in Control.  In the event of a Change of Control, then to the extent permitted by applicable law, with respect to half (50%) of the unvested Options (the "Primary Accelerated Amount") held by persons then performing services as Employees, Directors, or Consultants, then immediately prior to the consummation of such Change of Control such Primary Accelerated Amount shall be fully vested and exercisable and such Options shall be terminated if not exercised prior to the consummation of the Change of Control.  With respect to the remaining portion of such unvested Options (the "Remaining Amount"), any surviving corporation or an Affiliate of such surviving corporation shall assume or continue the Remaining Amount, or substitute similar Options for the Remaining Amount.  If the surviving corporation or an Affiliate of such surviving corporation refuses to assume or continue the Remaining Amount, or substitute similar Options for the Remaining Amount, then with respect to any person who was providing services as an Employee, Director or Consultant immediately prior to the consummation of the Change of Control, then immediately prior to the consummation of the Change of Control such Remaining Amount shall be fully vested and exercisable and such Options shall be terminated if not exercised prior to the consummation of the Change of Control.   If, following a Change of Control, the surviving corporation or its Affiliates choose to assume or continue the Remaining Amount, or substitute similar Options for the remaining amount and any person then performing services as an Employee, Director, or Consultant is involuntarily terminated for reason other than Cause or voluntarily terminates for Good Reason within one (1) year of such Change of Control, then upon such termination any Options still outstanding shall be fully vested and exercisable and such Options shall be terminated if not exercised within thirty (30) days of such termination (or to such greater extent as the CEO may provide).

	
  

	
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               For the purposes of this plan:  (i) "Change in Control" means: (1) a dissolution, liquidation or sale of substantially all of the assets of the Company; (2) a merger or consolidation in which the Company is not the surviving corporation (other than a merger solely for the purpose of changing the state of incorporation); or (3) a reverse merger in which the Company is the surviving corporation but the shares of the Company's common stock outstanding immediately preceding the merger are converted by virtue of the merger into other property, whether in the form of securities, cash or otherwise; (ii) "Cause" means: (1) an optionee's willful dishonesty towards, fraud upon, crime against, deliberate or attempted injury or bad faith action with respect to the Company; or (2) Optionee's conviction for any felony crime; (iii) "Good Reason" means: (1) a material reduction in compensation; (2) a relocation of the Optionee's principal worksite to a location more than sixty (60) miles from Optionee's pre-Change of Control worksite; or (3) for an executive officer, a material reduction in responsibilities or authority as in effect before the Change in Control.

12.              Time of Granting Options. The date of grant of an Option shall, for all purposes, be the date on which the CEO makes the determination granting such Option. Notice of the determination shall be given to each Employee or Consultant to whom an Option is so granted within a reasonable time after the date of such grant.

13.              Conditions Upon Issuance of Shares. Shares shall not be issued pursuant to the exercise of an Option unless the exercise of such Option and the issuance and delivery of such Shares pursuant thereto shall comply with all relevant provisions of law, including, without limitation, the Securities Act of 1933, as amended, the Securities and Exchange Act of 1934, as amended, the rules and regulations promulgated thereunder, state securities laws, and the requirements of any stock exchange upon which the Shares may then be listed, and shall be further subject to the approval of counsel for the Company with respect to such compliance.

As a condition to the exercise of an Option, the Company may require the person exercising such Option to render to the Company a written statement containing such representations and warranties as, in the opinion of counsel for the Company, may be required to ensure compliance with any of the aforementioned relevant provisions of law, including a representation that the Shares are being purchased only for investment and without any present intention to sell or distribute such Shares, if, in the opinion of counsel for the Company, such representation is required.

14.              Reservation of Shares. The Company, during the term of this Plan, will at all times reserve and keep available such number of Shares as shall be sufficient to satisfy the requirements of the Plan.

15.              Option Agreement. Options shall be evidenced by written option agreements or option certificates in such form as the CEO shall approve.

  

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16.              Stockholder Approval.  If Incentive Stock Options are to be issued under the Plan, continuance of the Plan shall be subject to approval by the stockholders of the Company within twelve (12) months before or after the date the Plan is adopted. If such Stockholder approval is obtained at a duly held Stockholders' Meeting, it may be obtained by the affirmative vote of the holders of a majority of the Share of the Company present or represented and entitled to vote thereon.  In the case of approval by written consent, it must be obtained by the written consent of all stockholders of the Company, or by written consent of a smaller percentage of stockholders but only if the Board determines, on the basis of advice of the Company's legal counsel, that the written consent of such a smaller percentage of stockholders will comply with all applicable laws and will not adversely affect the qualifications of the Plan under Section 422 of the Code.

Failure to obtain shareholder approval of the Plan as set forth in the preceding paragraph shall not invalidate the Plan but will rather serve to automatically amend the Plan so that no Incentive Stock Options may be issued under the Plan.

17.              Information to Optionees. The Company shall provide to each Optionee, during the period for which such Optionee has one or more Options outstanding, copies of all annual reports and other information which are provided to all stockholders of the Company. The Company shall not be required to provide such information if the issuance of Options under the Plan is limited to key employees whose duties in connection with the Company assure their access to equivalent information.

IN WITNESS THEREOF, the Company hereto has executed this 2011 Stock Option Plan as of the 20th day of April, 2011.

 

Transfer Technology International Corp.

By:           /s/ Chris Trina

           Chris Trina, CEO

  

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Exhibit 10.1

SEPARATION AGREEMENT

     This Separation Agreement (this “Agreement”) is made as of April 25, 2011 by and between Ray
H. Neilsen, an individual (the “Executive”) and Ameristar Casinos, Inc., a Nevada corporation (the
“Company”), with respect to separation payments to be paid to Executive conditioned in part on a
complete release by Executive of any and all claims against the Company and its affiliated
entities, their respective directors, managers, officers, employees, agents, accountants,
attorneys, representatives, successors and assigns.

1. Resignation: Separation Date; Separation Payment; Benefits.

     (a) Executive hereby resigns his employment with the Company and all of his positions as an
employee, officer, manager and a member of the Board of Directors of the Company and of any and all
subsidiaries and affiliates of the Company, each effective as of the close of business (Las Vegas
time) on May 5, 2011 (the “Separation Date”).

     (b) Executive and the Company acknowledge and agree that, except as provided in Section 5 of
this Agreement, effective as of the Separation Date, the Executive Employment Agreement by and
between the Executive and the Company dated as of May 31, 2008 (the “Employment Agreement”) is
terminated and shall be of no further force or effect. In consideration of Executive’s execution
of this Agreement and in compliance with Executive’s obligations hereunder and the provisions of
the Employment Agreement that are incorporated into this Agreement and shall survive termination of
the Employment Agreement, including, but not limited to, continued compliance with Sections 8 and 9
of the Employment Agreement (as modified by this Agreement), the Company agrees to pay to Executive
the total sum of One Million Four Hundred Thousand Dollars ($1,400,000) (the “Separation Payment”).
Subject to Section 8.3 of the Employment Agreement and Section 1(h) of this Agreement, the
Separation Payment shall be paid to Executive in equal installments over twenty-four (24) months
following the Separation Date at the same frequency as the Company’s regular payroll payments;
provided, however, that (i) the first payment shall not be made until the first regular payroll
payment date that occurs in January 2012 and (ii) such payment shall include a lump-sum payment of
that portion of the Separation Payment that would have been paid on or prior to such date, but for
the application of the preceding clause (i). The Company also agrees to pay to Executive, not
later than fourteen (14) days following the Separation Date, any earned but unpaid base salary
through the Separation Date and an amount corresponding to the amount of unused PTO that Executive
has established in Executive’s PTO account in accordance with Company policy. All sums payable and
benefits provided to Executive in accordance with this Agreement shall be reported on an IRS Form
W-2 and shall be subject to all deductions and withholdings required by applicable law.

     (c) In accordance with Company policy and the Employment Agreement, Executive will be entitled
to continued medical benefits (in accordance with Executive’s current coverage) through the
Separation Date. In addition, pursuant to the terms of the Employment Agreement, in consideration
of Executive’s execution of this Agreement and compliance with Executive’s obligations hereunder
and under the Employment Agreement, Executive and his eligible dependents will be entitled to
continuation of coverage under the Company’s group health insurance (including MERP or substitute
benefits), at the Company’s expense, for eighteen (18)

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months after the Separation Date; provided that Executive expressly acknowledges that it is
Executive’s obligation to properly elect COBRA coverage by timely submitting appropriate
documentation. In addition, upon Executive’s proper election, Executive shall be entitled to
receive a distribution of his vested account balance under the Company’s 401(k) Plan in accordance
with the terms thereof. In addition, Executive shall be entitled to such other rights to benefits
as may be contained in applicable written plan documents and agreements of the Company, including,
without limitation, documents and agreements defining equity awards and applicable employee benefit
plans and programs (including, without limitation, the Company’s Deferred Compensation Plan)
according to the terms of such agreements and documents. The Company agrees to reimburse Executive
for unreimbursed business expenses (in accordance with usual Company policies and practice), to the
extent not paid prior to the Separation Date. The Company acknowledges and agrees that after the
date hereof, Executive will continue to be entitled to any rights to contribution, advancement of
expenses, defense or indemnification he may have under the Company’s organizational documents, any
separate indemnification agreement or applicable law. For a period of six (6) years following the
Separation Date, Company agrees to continue to provide coverage to Executive, in his capacity as a
former officer and director, under its Directors and Officers insurance to the same extent as
coverage is provided to its then existing directors and officers.

     (d) In addition to the above, pursuant to the terms of the Employment Agreement, in
consideration of Executive’s execution of this Agreement and compliance with Executive’s
obligations hereunder and under the Employment Agreement, (i) all stock options granted to
Executive that are outstanding but not vested as of the Separation Date shall vest on the
Separation Date and (ii) all of Executive’s outstanding stock options (including those vesting
pursuant to clause (i) above), shall remain outstanding and exercisable for a period of twelve (12)
months following the Separation Date. In addition, all unvested restricted stock units and
performance share units held by Executive as of the Separation Date shall vest on the Separation
Date and the shares issuable thereunder shall be delivered to Executive within thirty (30) days
following the Separation Date. Except as otherwise provided in this Agreement, the terms and
provisions of the award agreements and Company plans governing Executive’s stock options,
restricted stock units and performance share units shall remain in full force and effect.

     (e) The provisions of Section 8.2(d) of the Employment Agreement shall not apply to the hiring
by Executive of any of the children of Executive or Executive’s wife or their spouses; provided,
however, Executive shall provide the Company with at least ninety (90) days’ (or such shorter
notice as the Company may agree) prior written notice before hiring any such persons.

     (f) In consideration of Executive’s execution of this Agreement and the covenants and
agreements of the Company and Executive hereunder, the Company will continue to permit Executive to
have use of his current office at Ameristar Casino Vicksburg until the first (1st)
anniversary of the Separation Date. During this period, at Executive’s reasonable request, the
Company shall provide Executive with reasonable administrative assistance at the Company’s expense.

     (g) Further in consideration of Executive’s execution of this Agreement and the covenants and
agreements of the Company and Executive hereunder, the Company shall arrange, in coordination with
Executive and at the Company’s sole cost and expense, a series of events at

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each of the Company’s properties to recognize and celebrate Executive’s contributions to the
Company.

     (h) Executive acknowledges that Executive has had twenty-one (21) days within which to
consider this Agreement and the Release described in Section 2 of this Agreement if Executive has
wished to do so, that Executive has seven (7) days from the date of Executive’s acceptance of the
Release within which to revoke Executive’s acceptance and that Executive has been and hereby is
advised by the Company to consult with counsel concerning this Agreement and the Release and
Executive has had an opportunity to do so. Executive further acknowledges that payment of the
Separation Payment will not commence until after such seven (7) days and until Executive shall have
provided thereafter reasonable assurances on request that Executive has not revoked Executive’s
acceptance of the Release within such seven (7) days.

2. Payments and Benefits Conditioned on Release of Claims

     All payments and benefits to the Executive set forth in Section 1 of this Agreement shall be
subject to the condition precedent that Executive accepts, executes and delivers to the Company,
without subsequent revocation, a release of claims, dated as of the Separation Date, substantially
in the form attached hereto as Exhibit A (the “Release”):

3. Cooperation

     Executive agrees that upon any reasonable request, Executive will fully cooperate with and
assist the Company and its subsidiaries in connection with any and all claims, disputes,
negotiations, investigations, lawsuits, administrative proceedings or other disputes in which the
Company or any of its affiliates or other business relations are involved, so long as any such
matter was in any manner related to Executive’s duties and activities conducted on behalf of the
Company or its subsidiaries or affiliates; provided, however, that any such request by the Company
shall not be unduly burdensome or unreasonably interfere with Executive’s personal schedule or
ability to engage in gainful employment. The Company agrees to reimburse Executive for actual and
reasonable out of pocket expenses, including, but not limited to travel and other necessary
expenses, directly incurred in connection with any such cooperation and/or assistance.

4. Entire Agreement

     Executive and the Company represent, understand and expressly agree that this Agreement and,
when executed, the Release set forth all of the agreements, covenants and understandings of the
parties, superseding all other prior and contemporaneous oral and written agreements with respect
to Executive’s employment or its termination, excepting only (i) Executive’s covenants set forth in
Sections 8 (as modified by paragraph 1(e) of this Agreement) and 9 (which shall survive for the
periods stated in the Employment Agreement), 13, 21 and 22 of the Employment Agreement, which
Executive and the Company reaffirm and incorporate herein by this reference and which shall survive
termination of the Employment Agreement and (ii) the terms and provisions of the award agreements
and Company plans governing Executive’s stock options, restricted stock units and performance share
units, which, as modified by this Agreement, shall remain in full force and effect. 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

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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.
Executive and the Company each affirms that no promises have been made to or by either to the other
except as set forth in this Agreement and the Release. Notwithstanding the foregoing, this
Agreement and the Release shall not be deemed to supersede or otherwise affect that certain Stock
Purchase Agreement, dated as of March 25, 2011, between the Company and the Estate of Craig H.
Neilsen.

5. Arbitration

     Executive and the Company agree that any and all disputes, controversies or claims arising out
of this Agreement or the Release or concerning Executive’s employment or its termination or
treatment by the Company shall, except as otherwise provided by the Employment Agreement, be
determined exclusively by final and binding arbitration as follows:

     (a) Arbitration shall be before a single arbitrator in accordance with the National Rules for
the Resolution of Employment Disputes of the American Arbitration Association, or successor rules
then in effect, and judgment upon the award of the arbitrator may be rendered in any court of
competent jurisdiction.

     (b) Claims subject to exclusive final and binding arbitration under this Agreement and the
Release include, without limitation, claims that otherwise could be tried in court to a jury in the
absence of this Agreement and the Release.

     (c) Executive and the Company expressly waive all rights to a jury trial in court on all
statutory or other claims including, without limitation, those identified in this Agreement and the
Release.

     (d) The arbitration shall be held in Las Vegas, Nevada and shall be conducted pursuant to the
Federal Arbitration Act and under the procedures applicable to arbitrations in that jurisdiction.

     (e) The arbitration shall be administered by the American Arbitration Association, and the
arbitrator shall be selected from a list of arbitrators provided by the American Arbitration
Association following a request by any party to the arbitration for a list of five retired or
former jurists with substantial professional experience in employment matters.

     (f) The arbitrator’s authority and jurisdiction shall be limited to determining the dispute in
arbitration in conformity with law, to the same extent as if such dispute were determined as to
liability and any remedy by a court without a jury. The arbitrator shall render an award which
shall include a written statement of opinion setting forth the arbitrator’s findings of fact and
conclusions of law.

     (g) To the extent permitted by law and to the extent the enforceability of this Agreement
and/or the Release are not thereby impaired, each party shall pay its own costs of arbitration
including, without limitation, attorneys’ fees and costs and fees and costs of any experts.
However, if any party prevails on a statutory claim that entitles the prevailing party to a
reasonable attorneys’ fee (with or without expert fees) as part of the costs, the arbitrator may

Employee’s Initials      RHN     

Company’s Initials      LAH     

4

 

award reasonable attorneys’ fees (with or without expert fees) to the prevailing party in
accord with such statute.

     (h) Any controversy over whether a dispute is an arbitrable dispute or as to the
interpretation or enforceability of this Agreement or the Release with respect to such arbitration
shall be determined by the arbitrator.

     (i) Executive and the Company agree that the foregoing provisions concerning arbitration do
not waive any right Executive or the Company may have to seek and obtain otherwise available
injunctive relief, including ancillary monetary relief, in court for any breaches of obligations
concerning confidential information or trade secrets or other breaches of obligations that cannot
adequately be remedied at law or in arbitration.

6. Miscellaneous

     Executive agrees that the existence and terms of this Agreement and the Release are
confidential and until made public by the Company, Executive will not disclose the existence or
terms of this Agreement or the Release to any person other than Executive’s legal and tax advisors
and immediate family members. Executive further represents that he has not made any disclosures
prior to the signing of this Agreement or the Release which would have violated this promise of
confidentiality had those disclosures been made after the signing of this Agreement and the
Release. Prior to any public announcement by the Company with respect to this Agreement, the
Company shall provide Executive with a reasonable opportunity to review and comment on the language
of such announcement. From and after the Separation Date, Executive shall not hold himself out to
the public as a representative of the Company or any affiliate of the Company. Executive agrees to
direct all inquiries concerning Executive’s employment with the Company to the Company’s General
Counsel, who will represent that Executive resigned to pursue other opportunities.

7. Absence of Existing Claims

     The Company hereby represents and warrants to Executive that, as of the date hereof, there are
no facts or circumstances known to the Company that would give rise to a cause of action or claim
by the Company against Executive.

8. Voluntary Agreement

     Executive affirms that Executive enters into this Agreement freely and voluntarily.

[signature page follows]

Employee’s Initials      RHN     

Company’s Initials      LAH     

5

 

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

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

     Dated April 25, 2011 at 5:26 CST.

	 	 	 	 	 
	 	Executive:

 	 
	 	                                              /s/ Ray H. Neilsen
 	 
	 	 	 
	 	 	 
	 

     Dated April 25. 2011 at Las Vegas, Nevada.

	 	 	 	 	 
	 	Ameristar Casinos, Inc.

 	 
	 	By:  	/s/ Larry A. Hodges
 	 
	 	 	Name:  	Larry A. Hodges 	 
	 	 	Title:  	President and Chief Operating Officer 	 
	 

[Signature Page
to Separation Agreement]

 

Exhibit A

GENERAL RELEASE

     This General Release (this “Release”) is made by Ray H. Neilsen, an individual (the
“Executive”) in connection with that certain Separation Agreement, dated as of April 25, 2011 (the
“Separation Agreement”), by and between Executive and Ameristar Casinos, Inc., a Nevada corporation
(the “Company”).

     For valuable and sufficient consideration, receipt of which is hereby acknowledged, and with
the sole exception of those obligations expressly recited herein or to be performed under the
Separation Agreement and of Executive’s claims to vested interests Executive may have in employee
benefit plans, stock options or other equity-based awards as defined exclusively in written
documents, and to the extent permitted by law, Executive and 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, managers, 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 Release (all such claims are
referred to in this Agreement as “Released Claims”). Released Claims include but are not limited
to the following, and Executive agrees that Executive will not commence or maintain any civil
proceeding to pursue any of the Released Claims:

     (a) Any claim arising out of Executive’s employment with the Company or any of its
subsidiaries or affiliates or termination of employment, including any claims that arose or
might arise under the Employment Agreement (as defined in the Separation Agreement); claims
for breach of contract, breach of implied covenant, breach of oral or written promise,
allegedly unpaid compensation, wrongful termination, retaliation, infliction of emotional
distress, defamation, interference with contract relations or prospective economic
advantage, negligence, misrepresentation or employment discrimination;

     (b) Any claim for 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, any state statutory wage claim under the state laws
of Mississippi, or any other federal, state or local labor, fair employment or other law
under which a claim might be brought were it not released here, all as amended from time to
time; and

     (c) Any claim (irrespective of the theory or nature thereof) arising out of or relating
to Executive’s role, service or status as an officer, director, manager, stockholder (but
solely in Executive’s individual capacity as a stockholder and not as fiduciary,
representative or executor of any other stockholder) (including all direct or derivative
claims of any nature), optionholder, holder of restricted stock units or performance share
units, agent or representative of the Company or any of its subsidiaries or affiliates, but

1

 

excluding any claims that Executive has or may have, in his capacity as an officer,
director, employee, agent, representative or manager, against the Company for
indemnification, contribution or advancement of expenses pursuant to any contractual
arrangements between Executive and the Company or under the Company’s organizational
documents or applicable law.

     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 Executive’s favor at the time of executing this Release, which
if known by Executive must or might have materially affected Executive’s settlement with the
Company.

     Executive acknowledges that there is a possibility that subsequent to the execution of this
Release, he will discover facts or incur or suffer claims which were unknown or unsuspected at the
time this Release was executed, and which if known by him at that time may have materially affected
his decision to execute this Release. Executive acknowledges and agrees that by reason of this
Release and the release of Released Claims contained herein he is assuming any risk of such unknown
facts and such unknown and unsuspected claims. Executive knowingly and voluntarily waives the
provisions of any statute, law or rule that limits the effectiveness of a release that purports to
waive claims that are not then known by the releasing party (such as Section 1542 of the California
Civil Code or any analogous provision of Mississippi or other applicable law), and acknowledges and
agrees that this waiver is an essential and material term of this Release, and without the
requirement of this waiver the Separation Agreement would not have been executed by the Company.
The Executive hereby represents that he has been advised by his legal counsel, understands and
acknowledges the significance and consequence of this Release.

     Executive acknowledges that Executive has had twenty-one (21) days within which to consider
this Release if Executive has wished to do so, that Executive has seven (7) days from the date of
Executive’s acceptance of this Release within which to revoke Executive’s acceptance and that
Executive has been and hereby is advised by the Company to consult with counsel concerning this
Release and Executive has had an opportunity to do so. Executive further acknowledges that payment
of the Separation Payment will not commence until after such seven (7) days and until Executive
shall have provided thereafter reasonable assurances on request that Executive has not revoked
Executive’s acceptance of this Release within such seven (7) days.

     Executive affirms that Executive enters into this Release freely and voluntarily.

     Dated: May 5, 2011 at ___________________.

	 	 	 	 	 
	 	Executive:

 	 
	 	 	 
	 	Ray H. Neilsen 	 
	 	 	 
	 

2

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