Document:

exv10w17

 

Exhibit 10.17

AMERISTAR CASINOS, INC.

CHANGE IN CONTROL SEVERANCE PLAN

Amended and Restated Effective December 4, 2007

ARTICLE 1

NAME, PURPOSE AND EFFECTIVE DATE

     1.1 Name and Purpose of Plan. The name of this plan is the Ameristar Casinos, Inc.
Change in Control Severance Plan (the “Plan”). The purpose of the Plan is to provide compensation
and benefits to certain senior-level employees of Ameristar Casinos, Inc. (the “Company”) and its
subsidiaries upon certain Change in Control events.

     1.2 Effective Date. The effective date of the Plan is October 26, 2007 (the
“Effective Date”). The compensation and benefits payable under this Plan are payable upon Change
in Control events that occur after the Effective Date.

     1.3 ERISA Status. This Plan is intended to be an unfunded plan that is maintained
primarily to provide severance compensation and benefits to a select group of “management or highly
compensated employees” within the meaning of Sections 201, 301 and 401 of the Employee Retirement
Income Security Act of 1974, as amended (“ERISA”), and therefore to be exempt from the provisions
of Parts 2, 3 and 4 of Title I of ERISA.

ARTICLE 2

Definitions

     For purposes of this Plan, in addition to the terms defined elsewhere in this Plan, the
following words and phrases shall have the following meanings:

     2.1 “Base Salary” shall mean the annual base salary payable to an Eligible Executive
(as defined in Section 3.1) at the time of a Change in Control or a Termination Date, whichever is
greater.

     2.2 “Board” shall mean the Board of Directors of the Company.

     2.3 “Cause,” in the case of any Eligible Executive, shall have the meaning ascribed to
such term in or for purposes of a written employment agreement in effect as of the Termination Date
between the Company or one of its subsidiaries and the Eligible Executive, or if “cause” is not
defined in or for purposes of any such employment agreement or no such employment agreement is in
effect as of the Termination Date, shall mean that the Eligible 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
or one of its subsidiaries;

          (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
Eligible Executive’s performance of his or her duties and responsibilities to the Company or one of
its subsidiaries;

          (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, Company policies or gaming laws, regulations or orders applicable to the
Company or one of its subsidiaries;

          (e) in carrying out his or her duties to the Company or one of its subsidiaries, 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 Eligible Executive of
written notice thereof from the 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 any written agreement between the Company and
the Eligible Executive;

          (g) has through willful or grossly negligent conduct disclosed any “confidential information”
of the Company without authorization except as otherwise permitted by the terms of any
confidentiality agreement between the Eligible Executive and the Company, another agreement between
the parties or any Company policy in effect at the time of disclosure; or

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

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

     2.4 “Change in Control” shall mean the occurrence of any of the following events:

          (a) Individuals who, as of the Effective Date, constitute the entire Board (“Incumbent
Directors”) cease for any reason to constitute a majority of the Board; provided, however, that any
individual becoming a director subsequent to such date whose election, or nomination for election
by the Company’s stockholders, was approved by the vote of a majority of the then Incumbent
Directors (other than an election or nomination of an individual whose

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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;

          (b) Any Person other than a Permitted Holder shall become the beneficial owner (as defined in
Rules 13d-3 and 13d-5 under the Securities Exchange Act of 1934, as amended), 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 common stock of the Company or (ii) the Combined
Voting Power of all then outstanding Voting Securities of the Company; provided, however, that
notwithstanding the foregoing, a Change in Control shall not be deemed to have occurred for
purposes of this clause (b) solely as the result of:

               (i) An acquisition of securities by the Company which, by reducing the number of shares of
common stock of the Company or other Voting Securities outstanding, increases (A) the proportionate
number of shares of common stock of the Company beneficially owned by any Person to fifty percent
(50%) or more of the shares of Company’s common stock then outstanding or (B) the proportionate
voting power represented 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

               (ii) An acquisition of securities directly from the Company, except that this paragraph (ii)
shall not apply to: (A) any conversion of a security that was not acquired directly from the
Company; or (B) 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;

          (c) 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 (i) 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 of the then outstanding Voting Securities of the Surviving Corporation (or of its
ultimate parent corporation, if any) or (ii) 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

          (d) The liquidation or dissolution of the Company.

     2.5 “Combined Voting Power” shall mean the aggregate votes entitled to be cast
generally in the election of directors of a corporation by holders of the then outstanding Voting
Securities of such corporation.

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     2.6 “Disability” shall mean a physical or mental incapacity that prevents the Eligible
Executive from performing, with reasonable accommodation if necessary, 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 Eligible
Executive is a participant; or (b) by a licensed healthcare professional selected by the Company,
in its sole discretion, to determine whether a Disability exists, to whom the Eligible Executive
hereby agrees to submit to medical examinations. In addition, the Eligible 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 Eligible 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 Eligible Executive, and the opinion of such third
licensed healthcare professional shall be dispositive.

     2.7 “Good Reason,” in the case of any Eligible Executive, shall mean and exist if,
without the Eligible Executive’s prior written consent, one or more of the following events occurs
upon or following a Change in Control:

          (a) a material diminution in the Eligible Executive’s authority, duties or responsibilities,
including without limitation, a material diminution in the authority, duties or responsibilities of
the person to whom the Eligible Executive is required to report;

          (b) the Eligible 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 at the
time of the Change in Control;

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

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

          (e) the Eligible Executive is excluded from participation in any employee benefit or incentive
plan or program or his or her benefits under such plans or programs are materially reduced in
violation of any employment or other agreement to which the Eligible Employee is a party;

          (f) the Company fails to pay the Eligible Executive any payments that have become payable
under the Company’s Deferred Compensation Plan or any similar Company plan in which the Eligible
Executive is a participant;

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

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          (h) the Company fails to obtain a written agreement from any assignee of the Company to assume
the Company’s obligations under this Plan and any employment agreement, indemnification agreement
or stock option, restricted stock or other agreement to which the Eligible Executive is a party
upon an assignment of this Plan or any such agreement in a sale of assets constituting a Change in
Control; or

          (i) a material breach by the Company of its obligations to the Eligible Executive under this
Plan, any employment agreement or indemnification agreement to which the Eligible Executive is a
party or any written plan documents or agreements of the Company defining stock option rights,
restricted stock rights, incentive compensation or employee benefit plan rights of the Eligible
Executive;

provided, however, in each case that the Company fails for any reason, within thirty (30) days of
receipt by the Company of written notice thereof from the Eligible Executive (which notice must be
given within ninety (90) days following the initial occurrence of any such event), to correct,
cease or alter any action or omission causing any such event(s) and the Eligible Executive resigns
from employment within ninety (90) days after the expiration of the cure period. If the Company
disputes the existence of Good Reason, the Company shall have the burden of proving the absence of
Good Reason.

     2.8 “Permitted Holder” shall mean (a) the Company or any trustee or other fiduciary
holding securities under an employee benefit plan of the Company, (b) to the extent they hold
securities in any capacity whatsoever, the Estate of Craig H. Neilsen, deceased, and the heirs,
ancestors, lineal descendants, stepchildren, legatees and legal representatives of Craig H. Neilsen
or his Estate, and the trustees from time to time of any bona fide trusts of which Craig H. Neilsen
or one or more of the foregoing are the sole beneficiaries or grantors thereof, including but not
limited to The Craig H. Neilsen Foundation, Ray H. Neilsen and his estate, spouse, heirs,
ancestors, lineal descendants, stepchildren, legatees and legal representatives, and the trustees
from time to time 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.

     2.9 “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 (including, without limitation, any private,
charitable or split-interest trust), joint venture, association or governmental body) or group (as
defined in Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended, 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.

     2.10 “Protection Period” shall mean the one-year period commencing with the date of
the Change in Control.

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     2.11 “Target Bonus” shall mean the Eligible Executive’s target annual incentive bonus
for the year in which the Change in Control or the Termination Date occurs, whichever is greater.

     2.12 “Termination Date” shall mean the date the Company or the Eligible Executive
delivers written notice of termination to the other party.

     2.13 “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.

ARTICLE 3

ELIGIBILITY AND BENEFITS

     3.1 Eligible Executives. All Corporate- and property-level employees of the Company
or its subsidiaries in the position of Vice President or higher (including any property General
Manager, Interim or Acting General Manager, Assistant General Manager or Interim or Acting
Assistant General Manager) at the time of a Change in Control are eligible for benefits under this
Plan (the “Eligible Executives”), excepting solely those Eligible Executives who have elected, on
or prior to August 31, 2007, not to participate in the Plan. All compensation and benefits
provided under the Plan shall be in lieu of, and not in addition to, any severance or other
termination pay or benefits payable specifically as a result of a Change in Control or a
termination of employment following a Change in Control and within the Protection Period provided
for in any written employment agreement between the Company or one of its subsidiaries and a
participating Eligible Executive. Participation in this Plan shall not affect any other
compensation or benefits provided for in any written employment agreement between the Company or
one of its subsidiaries and an Eligible Executive and shall not affect an Eligible Executive’s
right to vested benefits such as accrued salary, accrued vacation or paid time off or vested
retirement plan benefits. If an Eligible Executive has elected not to participate in this Plan as
provided hereinabove, such Eligible Executive shall not be entitled to any compensation or benefits
under this Plan. The names of those Eligible Executives who have elected not to participate in
this Plan are set forth on Exhibit A hereto.

     3.2 Single Trigger Change in Control Benefits. Upon the occurrence of a Change in
Control, except to the extent otherwise expressly provided in the applicable plan document or award
agreement, all outstanding and unvested stock options and restricted stock held by each Eligible
Executive shall become vested and non-forfeitable.

     3.3 Double Trigger Change in Control Benefits. In the event that an Eligible
Executive’s employment with the Company or one of its subsidiaries is terminated during the
Protection Period by the Eligible Executive for Good Reason or by the Company or one of its
subsidiaries for any reason other than Cause or the Eligible Executive’s death or Disability, the
Eligible Executive shall be entitled to, in lieu of any other severance or termination pay or
benefits payable specifically as a result of a Change in Control or a termination of employment
following a Change in Control, the following payments and benefits (subject to the terms and
conditions hereof):

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          (a) a lump-sum cash payment, payable, subject to Section 3.5, within ten (10) days following
the Eligible Executive’s last day of employment, equal to:

               (i) if the Eligible Executive is a Corporate executive employed at the time of the Change in
Control in a position above the Senior Vice President level, two (2) times the sum of the Eligible
Executive’s Base Salary and Target Bonus, plus an additional amount equal to the Eligible
Executive’s Target Bonus for the year in which the Termination Date occurs, prorated based on the
number of calendar days in the final year that the Eligible Executive was employed by the Company;

               (ii) if the Eligible Executive is a Corporate executive employed at the time of the Change in
Control at the Senior Vice President level, one and one-half (1.5) times the sum of the Eligible
Executive’s Base Salary and Target Bonus, plus an additional amount equal to the Eligible
Executive’s Target Bonus for the year in which the Termination Date occurs, prorated based on the
number of calendar days in the final year that the Eligible Executive was employed by the Company;

               (iii) if the Eligible Executive is employed at the time of the Change in Control at the
Corporate Chief level or as a property General Manager (including an Interim or Acting General
Manager), one (1) times the sum of the Eligible Executive’s Base Salary and Target Bonus, plus an
additional amount equal to the Eligible Executive’s Target Bonus for the year in which the
Termination Date occurs, prorated based on the number of calendar days in the final year that the
Eligible Executive was employed by the Company; and

               (iv) if the Eligible Executive is employed at the time of the Change in Control at the
Corporate or property Vice President level (including as a property Assistant General Manager or an
Interim or Acting Assistant General Manager), one (1) times the Eligible Executive’s Base Salary.

          (b) For either eighteen (18) months, in the case of Eligible Executives employed at the time
of the Change in Control at the Corporate level as a Senior Vice President or above, or for twelve
(12) months, in the case of all other Eligible Executives, following the Eligible Executive’s last
day of employment, the Eligible Executive and his or her eligible dependents shall be entitled to
continue to participate at the Company’s expense in the Company’s primary and supplemental
executive health benefit plans, as such plans were in effect immediately prior to the Change in
Control, pursuant to the terms of the Consolidated Omnibus Budget Reconciliation Act (commonly
referred to as COBRA).

All payments and benefits provided under this Section 3.3 and under Section 3.4 are conditioned on
the Eligible Executive’s execution, prior to the payment of any such payments and benefits, of a
separation agreement and general and special release of claims in substantially the form attached
as Exhibit A to such Eligible Executive’s employment agreement with the Company or one of its
subsidiaries or, if the Eligible Executive does not have such an employment agreement with the
Company or one of its subsidiaries on the Termination Date, in substantially the form attached as
Exhibit B hereto.

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     3.4 Tax Effect of Payments.

          (a) Excise Tax Gross-Up. Subject to Section 3.4(c), if, as a result of payments provided for
under or pursuant to this Plan together with all other payments in the nature of compensation
provided to or for the benefit of an Eligible Executive under any other agreement, plan or program
in connection with a Change in Control (the “Total Payments”), the Eligible Executive becomes
subject to the excise tax under Section 4999 of the Internal Revenue Code of 1986, as amended, and
the regulations thereunder (the “Code”) or any successor or comparable provision (the “Excise
Tax”), then, in addition to any other benefits provided under or pursuant to this Plan or
otherwise, the Company (including any successor to the Company) shall pay to the Eligible Executive
at the time any such payments are made an amount equal to the amount of any such taxes imposed or
to be imposed on the Eligible Executive (the amount of any such payment, the “Parachute Tax
Reimbursement”). In addition, the Company (including any successor to the Company) shall “gross
up” such Parachute Tax Reimbursement by paying to the Eligible Executive at the same time an
additional amount equal to the aggregate amount of any additional taxes (whether income taxes,
excise taxes, special taxes, employment taxes or otherwise) that are or will be payable by the
Eligible Executive as a result of the Parachute Tax Reimbursement being paid or payable to the
Eligible Executive and/or as a result of the additional amounts paid or payable to the Eligible
Executive pursuant to this sentence, such that after payment of such additional taxes the Eligible
Executive shall have been paid on a net after-tax basis an amount equal to the Parachute Tax
Reimbursement.

          (b) Determination by Tax Preparation Firm. All mathematical determinations and all
determinations of whether any of the Total Payments are “parachute payments” (within the meaning of
Section 280G of the Code) that are required to be made under this Section 3.4 shall be made by the
certified public accounting firm retained by the Company immediately prior to the Change in Control
to assist the Company with the preparation of its federal income tax returns (the “Tax Preparation
Firm”), who shall provide their determination (the “Determination”), together with detailed
supporting calculations, both to the Company and to the Eligible Executive promptly following the
Eligible Executive’s Termination Date, if applicable, or such earlier time as is requested by the
Company. Any Determination by the Tax Preparation Firm shall be binding upon the Company and the
Eligible Executive, absent a binding determination by a governmental taxing authority that a
greater or lesser amount of taxes is payable by the Eligible Executive. The Company shall pay the
fees and costs of the Tax Preparation Firm. If the Tax Preparation Firm does not agree to perform
the tasks contemplated by this Section 3.4, the Company and the Eligible Executive shall promptly
mutually select another qualified certified public accounting firm with tax expertise to perform
such tasks.

          (c) Notwithstanding the foregoing provisions of this Section 3.4, if the Company determines
that an Eligible Executive would be entitled to a Parachute Tax Reimbursement, but that the Total
Payments do not exceed the amount that could be paid to the Eligible Executive without giving rise
to any Excise Tax (such amount, the “Safe Harbor Amount”) by the lesser of (i) 10% of the Safe
Harbor Amount or (ii) $100,000, then no Parachute Tax Reimbursement shall be paid to the Eligible
Executive, and the Total Payments payable under this Plan to such Eligible Executive shall be
reduced so that the Total Payments,

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in the aggregate, are equal to the Safe Harbor Amount. The Company shall notify the Eligible
Executive of any intent to reduce the amount of any Total Payments in accordance with this
Section 3.4(c) (which notice, if practicable, shall be given prior to the occurrence of an event
that would give rise to a Total Payment), and the Eligible Executive shall have the right to
designate which of the Total Payments shall be reduced and to what extent, provided that the
Eligible Executive may not so elect to the extent that, in the determination of counsel to the
Company, such election would cause the Eligible Executive to be subject to the excise tax under
Section 4999 of the Code.

     3.5 Section 409A. Notwithstanding anything in this Plan to the contrary, to the
extent that the Company reasonably determines in good faith, after receiving a written legal
opinion from the primary outside tax counsel retained by the Company immediately prior to the
Change in Control, that any payments or benefits to be provided hereunder to or for the benefit of
an Eligible Executive who is also a “specified employee” (as such term is defined under Section
409A(a)(2)(B)(i) of the Code or any successor or comparable provision) would be subject to the
additional tax imposed under Section 409A(a)(1)(B) of the Code or any successor or comparable
provision, the commencement of such payments and/or benefits shall be delayed until the earlier of
(x) the date that is six months following the Eligible Executive’s last day of employment or
(y) the date of the Eligible Executive’s death.

ARTICLE 4

ADMINISTRATION

     4.1 Administrator. The Plan shall be administered by the Compensation Committee of
the Board (the “Committee”).

     4.2 Powers. The Committee shall have full power, discretion and authority to
interpret, construe and administer the Plan, and the Committee’s good faith interpretation and
construction hereof, and any actions hereunder, shall, in the absence of manifest error, be binding
on all Persons for all purposes. The Committee shall provide for the keeping of reasonably
detailed written minutes of its actions. The Committee, in fulfilling its responsibilities, may
(by way of illustration and not of limitation) do any or all of the following:

          (a) allocate among its members, and/or delegate to one or more other persons selected by it,
responsibility for fulfilling some or all of its responsibilities under the Plan in accordance with
Section 405(c) of ERISA;

          (b) designate one or more of its members to sign on its behalf directions, notices and other
communications to any entity or other person;

          (c) establish rules and regulations with regard to its conduct and the fulfillment of its
responsibilities under the Plan;

          (d) designate other Persons to render advice with respect to any responsibility or authority
pursuant to the Plan being carried out by it or any of its delegates under the Plan; and

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          (e) employ legal counsel, accountants, consultants and agents as it may deem desirable in the
administration of the Plan and rely on the opinion of such counsel, accountants, consultants and
agents as to matters within the area of their respective expertise.

ARTICLE 5

CLAIM FOR BENEFITS UNDER THIS PLAN

     5.1 Claims for Benefits under this Plan. If an individual believes that he or she
should have been eligible to participate in the Plan or disputes the amount of benefits payable
under the Plan, such individual may submit a claim for benefits in writing to the Committee within
sixty (60) days after the individual’s termination of employment. If such claim for benefits is
wholly or partially denied, the Committee shall within a reasonable period of time, but no later
than thirty (30) days after receipt of the written claim, notify the individual of the denial of
the claim. If a claim is wholly or partially denied, the denial notice: (a) shall be in writing,
(b) shall be written in a manner calculated to be understood by the individual and (c) shall
contain (i) the reasons for the denial, including specific reference to those Plan provisions on
which the denial is based; (ii) a description of any additional information necessary to complete
the claim and an explanation of why such information is necessary; (iii) an explanation of the
steps to be taken to appeal the adverse determination; and (iv) a statement of the individual’s
right to bring a civil action under Section 502(a) of ERISA following an adverse decision after
appeal. The Committee shall have full discretion to deny or grant a claim in whole or in part. If
notice of denial of a claim is not furnished in accordance with this section, the claim shall be
deemed denied and the claimant shall be permitted to exercise his or her rights to review pursuant
to Sections 5.2 and 5.3.

     5.2 Right to Request Review of Benefit Denial. Within sixty (60) days of the
individual’s receipt of the written notice of denial of the claim, the individual may file a
written request for a review of the denial of the individual’s claim for benefits. In connection
with the individual’s appeal of the denial of his or her benefits, the individual may submit
comments, records, documents, or other information supporting the appeal, regardless of whether
such information was considered in the prior benefits decision. Upon request and without charge,
the individual will be provided reasonable access to and copies of all documents, records and other
information relevant to the claim.

     5.3 Disposition of Claim. The Committee shall deliver to the individual a written
decision on the claim promptly, but not later than thirty (30) days after the receipt of the
individual’s written request for review. If the appeal is wholly or partially denied, the denial
notice shall: (a) be written in a manner calculated to be understood by the individual; (b) contain
references to the specific Plan provision(s) upon which the decision was based; (c) contain a
statement that, upon request and without charge, the individual will be provided reasonable access
to and copies of all documents, records and other information relevant to the claim for benefits;
and (d) contain a statement of the individual’s right to bring a civil action under Section 502(a)
of ERISA.

     5.4 Exhaustion. An individual must exhaust the Plan’s claims procedures prior to
bringing any claim for benefits under the Plan in a court of competent jurisdiction.

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     5.5 Attorneys’ Fees. If an individual is required to retain counsel or bring legal
action to enforce the individual’s rights under this Plan following a Change in Control, the
Company (including any successor to the Company) shall advance to the Eligible Executive the legal
fees and expenses and other costs incurred by the individual, as they are incurred, upon the
individual’s delivery to the Company of an unsecured written undertaking to repay such fees,
expenses and costs to the Company if it is ultimately determined, in a final and binding
arbitration proceeding or by a court of competent jurisdiction in a final and non-appealable
judgment, that the individual did not have a reasonable basis for the individual’s claim.

ARTICLE 6

MISCELLANEOUS

     6.1 Successors.

          (a) Any successor (whether direct or indirect and whether by purchase, lease, merger,
consolidation, liquidation or otherwise) to all or substantially all of the Company’s business
and/or assets shall be obligated under this Plan in the same manner and to the same extent as the
Company would be required to perform it in the absence of a succession.

          (b) This Plan and all rights of the Eligible Executive hereunder shall inure to the benefit
of, and be enforceable by, the Eligible Executive’s personal or legal representatives, executors,
administrators, successors, heirs, distributees, devisees and legatees.

     6.2 Creditor Status of Eligible Executives. In the event that any Eligible Executive
acquires a right to receive payments or benefits from the Company under the Plan, such right shall
be that of an unsecured general creditor of the Company.

     6.3 Facility of Payment. If it shall be found that (a) an Eligible Executive entitled
to receive any payment or benefits under the Plan is physically or mentally incompetent to receive
such payment or benefits and to give a valid release therefor and (b) another individual or an
institution is then maintaining or has custody of such Eligible Executive, and no guardian,
committee or other representative of the estate of such Eligible Executive has been duly appointed
by a court of competent jurisdiction, the payment may be made to such other individual or
institution referred to in (b) above, and the release shall be a valid and complete discharge for
the payment.

     6.4 Notice of Address. Any communication, statement or notice properly addressed and
delivered to an Eligible Executive at the then-current mailing address included in his or her
Company personnel file, or any other mailing address of which the Eligible Executive notifies the
Company in writing following his or her termination of employment, shall be deemed sufficient for
all purposes of the Plan, and there shall be no obligation on the part of the Company to search for
or to ascertain the location of such Eligible Executive.

     6.5 Headings. The headings of the Plan are inserted for convenience and reference
only and shall have no effect upon the meaning of the provisions hereof.

11

 

     6.6 Choice of Law. THE PLAN SHALL BE CONSTRUED, REGULATED AND ADMINISTERED UNDER THE
LAWS OF THE STATE OF NEVADA (EXCLUDING THE CHOICE OF LAW RULES THEREOF), EXCEPT THAT IF ANY SUCH
LAWS ARE SUPERSEDED BY ANY APPLICABLE FEDERAL LAW, SUCH FEDERAL LAW SHALL APPLY.

     6.7 Construction. Whenever used herein, a masculine pronoun shall be deemed to
include the feminine and neuter genders and a singular word shall be deemed to include the plural
and vice versa, in all cases where the context requires.

     6.8 Termination; Amendment; Waiver.

          (a) The Board or the Committee may amend or terminate the Plan at any time and from time to
time; provided, however, that (i) termination or amendment of the Plan shall not affect any
obligation of the Company under the Plan that has accrued and is unpaid as of the effective date of
the termination or amendment and (ii) no provision of the Plan may be modified, waived, amended,
discharged or terminated at any time in any manner adverse to an Eligible Executive without the
prior written consent of the Eligible Executive, it being understood that from and after the
Effective Date, the rights of each current and future Eligible Executive under the Plan shall be
deemed to be vested. If the Plan is hereafter amended to provide more generous payments or
benefits to Eligible Executives than those in effect on the Effective Date, those Eligible
Executives who have previously elected in writing, pursuant to Section 3.1, not to participate in
the Plan shall have thirty (30) days from the effective date of such amendment to withdraw their
previous election and thereby to elect to participate in the Plan as so amended.

          (b) No waiver by the Company or any Eligible Executive of any breach of, or of compliance
with, any condition or provision of this Plan by the other party shall be considered a waiver of
any other condition or provision or of the same condition or provision at another time.

     6.9 Whole Agreement. This Plan contains all the legally binding understandings and
agreements between each participating Eligible Executive and the Company pertaining to the subject
matter hereof and supersedes any and all negotiations, agreements and understandings, whether oral
or in writing, previously entered into between the Company and each participating Eligible
Executive.

     6.10 Withholding Taxes. All payments made under this Plan shall be subject to
reduction to reflect taxes required to be withheld by law.

     6.11 No Assignment. The rights of an Eligible Executive to payments or benefits
under this Plan shall not be made subject to option or assignment, either by voluntary or
involuntary assignment or by operation of law, including (without limitation) bankruptcy,
garnishment, attachment or other creditor’s process, and any action in violation of this Section
6.11 shall be void; provided, however, that an Eligible Executive shall have the right at any time
to designate, on a form provided by the Company, his or her beneficiary(ies) (both primary and

12

 

contingent) to receive any benefits payable under the Plan following the Eligible Employee’s
death.

     6.12 Adoption and Term. This Plan was adopted by the Committee on and effective as of
the Effective Date and was amended and restated on December 4, 2007. The Plan shall continue in
effect until terminated as provided in Section 6.8.

13

 

Exhibit A

Non-Participating
Eligible Executives

Thomas M. Steinbauer

Troy A. Stremming

J. Todd Stewart

14

 

Exhibit B

Form of Separation Agreement and General and Special Release

     This Separation Agreement and General and Special Release (“Agreement”) is made by and between
[name of eligible executive] (the “Executive”) and Ameristar Casinos, Inc., a
Nevada corporation (“Company”), with respect to severance payments and benefits to be provided 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 the Ameristar Casinos, Inc. Change in Control
Severance Plan effective as of October 26, 2007 (the “Plan”), 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 or programs, 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 and against 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 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,

15

 

superseding all other prior and contemporaneous oral and written agreements with respect to
the termination or separation of the Executive’s employment excepting only the Plan and the
Company’s Confidentiality and Non-Disclosure Policy and Insider Trading Policy, which the
Executive and the Company reaffirm and incorporate herein by this reference and which shall survive
indefinitely. 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
Plan or this Agreement.

     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                                                             ,                                         

	 	 	 	 	 
	 
	 

	 	 

[Name of Executive]
	 	 

     Dated                                         ,                      at                                                             ,                                         

	 	 	 	 	 	 	 
	 	 	AMERISTAR CASINOS, INC.
	 
	 	 	 	 	 	 
	 

	 	By
	 	 
 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Its
	 	 
 

	 	 

16exv10w18

 

Exhibit 10.18

AMERISTAR CASINOS, INC.

CHANGE IN CONTROL SEVERANCE PLAN FOR DIRECTOR-LEVEL EMPLOYEES

ARTICLE 1

NAME, PURPOSE AND EFFECTIVE DATE

     1.1 Name and Purpose of Plan. The name of this plan is the Ameristar Casinos, Inc.
Change in Control Severance Plan for Director-Level Employees (the “Plan”). The purpose of the
Plan is to provide compensation and benefits to Director-level employees of Ameristar Casinos, Inc.
(the “Company”) and its subsidiaries upon certain Change in Control events.

     1.2 Effective Date. The effective date of the Plan is December 4, 2007 (the
“Effective Date”). The compensation and benefits payable under this Plan are payable upon Change
in Control events that occur after the Effective Date.

     1.3 ERISA Status. This Plan is intended to be an unfunded plan that is maintained
primarily to provide severance compensation and benefits to a select group of “management or highly
compensated employees” within the meaning of Sections 201, 301 and 401 of the Employee Retirement
Income Security Act of 1974, as amended (“ERISA”), and therefore to be exempt from the provisions
of Parts 2, 3 and 4 of Title I of ERISA.

ARTICLE 2

Definitions

     For purposes of this Plan, in addition to the terms defined elsewhere in this Plan, the
following words and phrases shall have the following meanings:

     2.1 “Base Salary” shall mean the annual base salary payable to an Eligible Executive
(as defined in Section 3.1) at the time of a Change in Control or a Termination Date, whichever is
greater.

     2.2 “Board” shall mean the Board of Directors of the Company.

     2.3 “Cause,” in the case of any Eligible Executive, shall have the meaning ascribed to
such term in or for purposes of a written employment agreement in effect as of the Termination Date
between the Company or one of its subsidiaries and the Eligible Executive, or if “cause” is not
defined in or for purposes of any such employment agreement or no such employment agreement is in
effect as of the Termination Date, shall mean that the Eligible 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
or one of its subsidiaries;

 

 

          (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
Eligible Executive’s performance of his or her duties and responsibilities to the Company or one of
its subsidiaries;

          (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, Company policies or gaming laws, regulations or orders applicable to the
Company or one of its subsidiaries;

          (e) in carrying out his or her duties to the Company or one of its subsidiaries, 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 Eligible Executive of
written notice thereof from the 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 any written agreement between the Company and
the Eligible Executive;

          (g) has through willful or grossly negligent conduct disclosed any “confidential information”
of the Company without authorization except as otherwise permitted by the terms of any
confidentiality agreement between the Eligible Executive and the Company, another agreement between
the parties or any Company policy in effect at the time of disclosure; or

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

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

     2.4 “Change in Control” shall mean the occurrence of any of the following events:

          (a) Individuals who, as of the Effective Date, constitute the entire Board (“Incumbent
Directors”) cease for any reason to constitute a majority of the Board; provided, however, that any
individual becoming a director subsequent to such date whose election, or nomination for election
by the Company’s stockholders, was approved by the vote of 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;

2

 

          (b) Any Person other than a Permitted Holder shall become the beneficial owner (as defined in
Rules 13d-3 and 13d-5 under the Securities Exchange Act of 1934, as amended), 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 common stock of the Company or (ii) the Combined
Voting Power of all then outstanding Voting Securities of the Company; provided, however, that
notwithstanding the foregoing, a Change in Control shall not be deemed to have occurred for
purposes of this clause (b) solely as the result of:

               (i) An acquisition of securities by the Company which, by reducing the number of shares of
common stock of the Company or other Voting Securities outstanding, increases (A) the proportionate
number of shares of common stock of the Company beneficially owned by any Person to fifty percent
(50%) or more of the shares of Company’s common stock then outstanding or (B) the proportionate
voting power represented 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

               (ii) An acquisition of securities directly from the Company, except that this paragraph (ii)
shall not apply to: (A) any conversion of a security that was not acquired directly from the
Company; or (B) 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;

          (c) 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 (i) 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 of the then outstanding Voting Securities of the Surviving Corporation (or of its
ultimate parent corporation, if any) or (ii) 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

          (d) The liquidation or dissolution of the Company.

     2.5 “Combined Voting Power” shall mean the aggregate votes entitled to be cast
generally in the election of directors of a corporation by holders of the then outstanding Voting
Securities of such corporation.

     2.6 “Disability” shall mean a physical or mental incapacity that prevents the Eligible
Executive from performing, with reasonable accommodation if necessary, the essential functions of
his or her position with the Company for a period of ninety (90) consecutive days as

3

 

determined:
(a) in accordance with any long-term disability plan provided by the Company of which the Eligible
Executive is a participant; or (b) by a licensed healthcare professional selected by the Company,
in its sole discretion, to determine whether a Disability exists, to whom the Eligible Executive
hereby agrees to submit to medical examinations. In addition, the Eligible 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 Eligible 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 Eligible Executive, and the opinion of such third
licensed healthcare professional shall be dispositive.

     2.7 “Good Reason,” in the case of any Eligible Executive, shall mean and exist if,
without the Eligible Executive’s prior written consent, one or more of the following events occurs
upon or following a Change in Control:

          (a) a material diminution in the Eligible Executive’s authority, duties or responsibilities,
including without limitation, a material diminution in the authority, duties or responsibilities of
the person to whom the Eligible Executive is required to report;

          (b) the Eligible 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 at the
time of the Change in Control;

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

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

          (e) the Eligible Executive is excluded from participation in any employee benefit or incentive
plan or program or his or her benefits under such plans or programs are materially reduced in
violation of any employment or other agreement to which the Eligible Employee is a party;

          (f) the Company fails to pay the Eligible Executive any payments that have become payable
under the Company’s Deferred Compensation Plan or any similar Company plan in which the Eligible
Executive is a participant;

          (g) the Company fails to reimburse the Eligible Executive for any 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 Company’s obligations under this Plan and any employment agreement, indemnification agreement
or stock option, restricted stock or other agreement to which the

          
4

 

Eligible Executive is a party
upon an assignment of this Plan or any such agreement in a sale of assets constituting a Change in
Control; or

               (i) a material breach by the Company of its obligations to the Eligible Executive under this
Plan, any employment agreement or indemnification agreement to which the Eligible Executive is a
party or any written plan documents or agreements of the Company defining stock option rights,
restricted stock rights, incentive compensation or employee benefit plan rights of the Eligible
Executive;

provided, however, in each case that the Company fails for any reason, within thirty (30) days of
receipt by the Company of written notice thereof from the Eligible Executive (which notice must be
given within ninety (90) days following the initial occurrence of any such event), to correct,
cease or alter any action or omission causing any such event(s) and the Eligible Executive resigns
from employment within ninety (90) days after the expiration of the cure period. If the Company
disputes the existence of Good Reason, the Company shall have the burden of proving the absence of
Good Reason.

     2.8 “Permitted Holder” shall mean (a) the Company or any trustee or other fiduciary
holding securities under an employee benefit plan of the Company, (b) to the extent they hold
securities in any capacity whatsoever, the Estate of Craig H. Neilsen, deceased, and the heirs,
ancestors, lineal descendants, stepchildren, legatees and legal representatives of Craig H. Neilsen
or his Estate, and the trustees from time to time of any bona fide trusts of which Craig H. Neilsen
or one or more of the foregoing are the sole beneficiaries or grantors thereof, including but not
limited to The Craig H. Neilsen Foundation, Ray H. Neilsen and his estate, spouse, heirs,
ancestors, lineal descendants, stepchildren, legatees and legal representatives, and the trustees
from time to time 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.

     2.9 “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 (including, without limitation, any private,
charitable or split-interest trust), joint venture, association or governmental body) or group (as
defined in Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended, 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.

     2.10 “Protection Period” shall mean the one-year period commencing with the date of
the Change in Control.

5

 

     2.11 “Target Bonus” shall mean the Eligible Executive’s target annual incentive bonus
for the year in which the Change in Control or the Termination Date occurs, whichever is greater.

     2.12 “Termination Date” shall mean the date the Company or the Eligible Executive
delivers written notice of termination to the other party.

     2.13 “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.

ARTICLE 3

ELIGIBILITY AND BENEFITS

     3.1 Eligible Executives. All Corporate- and property-level employees of the Company
or its subsidiaries in the position of Director at the time of a Change in Control are eligible for
benefits under this Plan (the “Eligible Executives”). All compensation and benefits provided under
the Plan shall be in lieu of, and not in addition to, any severance or other termination pay or
benefits payable specifically as a result of a Change in Control or a termination of employment
following a Change in Control and within the Protection Period provided for in any written
employment agreement between the Company or one of its subsidiaries and a participating Eligible
Executive. Participation in this Plan shall not affect any other compensation or benefits provided
for in any written employment agreement between the Company or one of its subsidiaries and an
Eligible Executive and shall not affect an Eligible Executive’s right to vested benefits such as
accrued salary, accrued vacation or paid time off or vested retirement plan benefits.

     3.2 Single Trigger Change in Control Benefits. Upon the occurrence of a Change in
Control, except to the extent otherwise expressly provided in the applicable plan document or award
agreement, all outstanding and unvested stock options and restricted stock held by each Eligible
Executive shall become vested and non-forfeitable.

     3.3 Double Trigger Change in Control Benefits. In the event that an Eligible
Executive’s employment with the Company or one of its subsidiaries is terminated during the
Protection Period by the Eligible Executive for Good Reason or by the Company or one of its
subsidiaries for any reason other than Cause or the Eligible Executive’s death or Disability, the
Eligible Executive shall be entitled to, in lieu of any other severance or termination pay or
benefits payable specifically as a result of a Change in Control or a termination of employment
following a Change in Control, the following payments and benefits (subject to the terms and
conditions hereof):

          (a) a lump-sum cash payment, payable, subject to Section 3.5, within ten (10) days following
the Eligible Executive’s last day of employment, equal to one (1) times the Eligible Executive’s
Base Salary.

          (b) For twelve (12) months following the Eligible Executive’s last day of employment, the
Eligible Executive and his or her eligible dependents shall be entitled to continue to participate
at the Company’s expense in the Company’s primary health benefit plan

6

 

and, to the extent he or she was so eligible immediately prior to his or her termination of
employment, the Company’s supplemental executive health benefit plan, as such plans were in effect
immediately prior to the Change in Control, pursuant to the terms of the Consolidated Omnibus
Budget Reconciliation Act (commonly referred to as COBRA).

All payments and benefits provided under this Section 3.3 and under Section 3.4 are conditioned on
the Eligible Executive’s execution, prior to the payment of any such payments and benefits, of a
separation agreement and general and special release of claims in substantially the form attached
as Exhibit A to such Eligible Executive’s employment agreement with the Company or one of its
subsidiaries or, if the Eligible Executive does not have such an employment agreement with the
Company or one of its subsidiaries on the Termination Date, in substantially the form attached as
Exhibit A hereto.

     3.4 Tax Effect of Payments.

          (a) Excise Tax Gross-Up. Subject to Section 3.4(c), if, as a result of payments provided for
under or pursuant to this Plan together with all other payments in the nature of compensation
provided to or for the benefit of an Eligible Executive under any other agreement, plan or program
in connection with a Change in Control (the “Total Payments”), the Eligible Executive becomes
subject to the excise tax under Section 4999 of the Internal Revenue Code of 1986, as amended, and
the regulations thereunder (the “Code”) or any successor or comparable provision (the “Excise
Tax”), then, in addition to any other benefits provided under or pursuant to this Plan or
otherwise, the Company (including any successor to the Company) shall pay to the Eligible Executive
at the time any such payments are made an amount equal to the amount of any such taxes imposed or
to be imposed on the Eligible Executive (the amount of any such payment, the “Parachute Tax
Reimbursement”). In addition, the Company (including any successor to the Company) shall “gross
up” such Parachute Tax Reimbursement by paying to the Eligible Executive at the same time an
additional amount equal to the aggregate amount of any additional taxes (whether income taxes,
excise taxes, special taxes, employment taxes or otherwise) that are or will be payable by the
Eligible Executive as a result of the Parachute Tax Reimbursement being paid or payable to the
Eligible Executive and/or as a result of the additional amounts paid or payable to the Eligible
Executive pursuant to this sentence, such that after payment of such additional taxes the Eligible
Executive shall have been paid on a net after-tax basis an amount equal to the Parachute Tax
Reimbursement.

          (b) Determination by Tax Preparation Firm. All mathematical determinations and all
determinations of whether any of the Total Payments are “parachute payments” (within the meaning of
Section 280G of the Code) that are required to be made under this Section 3.4 shall be made by the
certified public accounting firm retained by the Company immediately prior to the Change in Control
to assist the Company with the preparation of its federal income tax returns (the “Tax Preparation
Firm”), who shall provide their determination (the “Determination”), together with detailed
supporting calculations, both to the Company and to the Eligible Executive promptly following the
Eligible Executive’s Termination Date, if applicable, or such earlier time as is requested by the
Company. Any Determination by the Tax Preparation Firm shall be binding upon the Company and the
Eligible Executive, absent a binding determination by a governmental taxing authority that a
greater or lesser amount of taxes is payable by the Eligible Executive. The Company shall pay the
fees and costs of the Tax

7

 

Preparation Firm. If the Tax Preparation Firm does not agree to perform the tasks
contemplated by this Section 3.4, the Company and the Eligible Executive shall promptly mutually
select another qualified certified public accounting firm with tax expertise to perform such tasks.

          (c) Notwithstanding the foregoing provisions of this Section 3.4, if the Company determines
that an Eligible Executive would be entitled to a Parachute Tax Reimbursement, but that the Total
Payments do not exceed the amount that could be paid to the Eligible Executive without giving rise
to any Excise Tax (such amount, the “Safe Harbor Amount”) by the lesser of (i) 10% of the Safe
Harbor Amount or (ii) $100,000, then no Parachute Tax Reimbursement shall be paid to the Eligible
Executive, and the Total Payments payable under this Plan to such Eligible Executive shall be
reduced so that the Total Payments, in the aggregate, are equal to the Safe Harbor Amount. The
Company shall notify the Eligible Executive of any intent to reduce the amount of any Total
Payments in accordance with this Section 3.4(c) (which notice, if practicable, shall be given prior
to the occurrence of an event that would give rise to a Total Payment), and the Eligible Executive
shall have the right to designate which of the Total Payments shall be reduced and to what extent,
provided that the Eligible Executive may not so elect to the extent that, in the determination of
counsel to the Company, such election would cause the Eligible Executive to be subject to the
excise tax under Section 4999 of the Code.

     3.5 Section 409A. Notwithstanding anything in this Plan to the contrary, to the
extent that the Company reasonably determines in good faith, after receiving a written legal
opinion from the primary outside tax counsel retained by the Company immediately prior to the
Change in Control, that any payments or benefits to be provided hereunder to or for the benefit of
an Eligible Executive who is also a “specified employee” (as such term is defined under Section
409A(a)(2)(B)(i) of the Code or any successor or comparable provision) would be subject to the
additional tax imposed under Section 409A(a)(1)(B) of the Code or any successor or comparable
provision, the commencement of such payments and/or benefits shall be delayed until the earlier of
(x) the date that is six months following the Eligible Executive’s last day of employment or
(y) the date of the Eligible Executive’s death.

ARTICLE 4

ADMINISTRATION

     4.1 Administrator. The Plan shall be administered by the Compensation Committee of
the Board (the “Committee”).

     4.2 Powers. The Committee shall have full power, discretion and authority to
interpret, construe and administer the Plan, and the Committee’s good faith interpretation and
construction hereof, and any actions hereunder, shall, in the absence of manifest error, be binding
on all Persons for all purposes. The Committee shall provide for the keeping of reasonably
detailed written minutes of its actions. The Committee, in fulfilling its responsibilities, may
(by way of illustration and not of limitation) do any or all of the following:

8

 

          (a) allocate among its members, and/or delegate to one or more other persons selected by it,
responsibility for fulfilling some or all of its responsibilities under the Plan in accordance with
Section 405(c) of ERISA;

          (b) designate one or more of its members to sign on its behalf directions, notices and other
communications to any entity or other person;

          (c) establish rules and regulations with regard to its conduct and the fulfillment of its
responsibilities under the Plan;

          (d) designate other Persons to render advice with respect to any responsibility or authority
pursuant to the Plan being carried out by it or any of its delegates under the Plan; and

          (e) employ legal counsel, accountants, consultants and agents as it may deem desirable in the
administration of the Plan and rely on the opinion of such counsel, accountants, consultants and
agents as to matters within the area of their respective expertise.

ARTICLE 5

CLAIM FOR BENEFITS UNDER THIS PLAN

     5.1 Claims for Benefits under this Plan. If an individual believes that he or she
should have been eligible to participate in the Plan or disputes the amount of benefits payable
under the Plan, such individual may submit a claim for benefits in writing to the Committee within
sixty (60) days after the individual’s termination of employment. If such claim for benefits is
wholly or partially denied, the Committee shall within a reasonable period of time, but no later
than thirty (30) days after receipt of the written claim, notify the individual of the denial of
the claim. If a claim is wholly or partially denied, the denial notice: (a) shall be in writing,
(b) shall be written in a manner calculated to be understood by the individual and (c) shall
contain (i) the reasons for the denial, including specific reference to those Plan provisions on
which the denial is based; (ii) a description of any additional information necessary to complete
the claim and an explanation of why such information is necessary; (iii) an explanation of the
steps to be taken to appeal the adverse determination; and (iv) a statement of the individual’s
right to bring a civil action under Section 502(a) of ERISA following an adverse decision after
appeal. The Committee shall have full discretion to deny or grant a claim in whole or in part. If
notice of denial of a claim is not furnished in accordance with this section, the claim shall be
deemed denied and the claimant shall be permitted to exercise his or her rights to review pursuant
to Sections 5.2 and 5.3.

     5.2 Right to Request Review of Benefit Denial. Within sixty (60) days of the
individual’s receipt of the written notice of denial of the claim, the individual may file a
written request for a review of the denial of the individual’s claim for benefits. In connection
with the individual’s appeal of the denial of his or her benefits, the individual may submit
comments, records, documents, or other information supporting the appeal, regardless of whether
such information was considered in the prior benefits decision. Upon request and without charge,
the

9

 

individual will be provided reasonable access to and copies of all documents, records and
other information relevant to the claim.

     5.3 Disposition of Claim. The Committee shall deliver to the individual a written
decision on the claim promptly, but not later than thirty (30) days after the receipt of the
individual’s written request for review. If the appeal is wholly or partially denied, the denial
notice shall: (a) be written in a manner calculated to be understood by the individual; (b) contain
references to the specific Plan provision(s) upon which the decision was based; (c) contain a
statement that, upon request and without charge, the individual will be provided reasonable access
to and copies of all documents, records and other information relevant to the claim for benefits;
and (d) contain a statement of the individual’s right to bring a civil action under Section 502(a)
of ERISA.

     5.4 Exhaustion. An individual must exhaust the Plan’s claims procedures prior to
bringing any claim for benefits under the Plan in a court of competent jurisdiction.

     5.5 Attorneys’ Fees. If an individual is required to retain counsel or bring legal
action to enforce the individual’s rights under this Plan following a Change in Control, the
Company (including any successor to the Company) shall advance to the Eligible Executive the legal
fees and expenses and other costs incurred by the individual, as they are incurred, upon the
individual’s delivery to the Company of an unsecured written undertaking to repay such fees,
expenses and costs to the Company if it is ultimately determined, in a final and binding
arbitration proceeding or by a court of competent jurisdiction in a final and non-appealable
judgment, that the individual did not have a reasonable basis for the individual’s claim.

ARTICLE 6

MISCELLANEOUS

     6.1 Successors.

          (a) Any successor (whether direct or indirect and whether by purchase, lease, merger,
consolidation, liquidation or otherwise) to all or substantially all of the Company’s business
and/or assets shall be obligated under this Plan in the same manner and to the same extent as the
Company would be required to perform it in the absence of a succession.

          (b) This Plan and all rights of the Eligible Executive hereunder shall inure to the benefit
of, and be enforceable by, the Eligible Executive’s personal or legal representatives, executors,
administrators, successors, heirs, distributees, devisees and legatees.

     6.2 Creditor Status of Eligible Executives. In the event that any Eligible Executive
acquires a right to receive payments or benefits from the Company under the Plan, such right shall
be that of an unsecured general creditor of the Company.

     6.3 Facility of Payment. If it shall be found that (a) an Eligible Executive entitled
to receive any payment or benefits under the Plan is physically or mentally incompetent to receive
such payment or benefits and to give a valid release therefor and (b) another individual or an
institution is then maintaining or has custody of such Eligible Executive, and no guardian,

10

 

committee or other representative of the estate of such Eligible Executive has been duly
appointed by a court of competent jurisdiction, the payment may be made to such other individual or
institution referred to in (b) above, and the release shall be a valid and complete discharge for
the payment.

     6.4 Notice of Address. Any communication, statement or notice properly addressed and
delivered to an Eligible Executive at the then-current mailing address included in his or her
Company personnel file, or any other mailing address of which the Eligible Executive notifies the
Company in writing following his or her termination of employment, shall be deemed sufficient for
all purposes of the Plan, and there shall be no obligation on the part of the Company to search for
or to ascertain the location of such Eligible Executive.

     6.5 Headings. The headings of the Plan are inserted for convenience and reference
only and shall have no effect upon the meaning of the provisions hereof.

     6.6 Choice of Law. THE PLAN SHALL BE CONSTRUED, REGULATED AND ADMINISTERED UNDER THE
LAWS OF THE STATE OF NEVADA (EXCLUDING THE CHOICE OF LAW RULES THEREOF), EXCEPT THAT IF ANY SUCH
LAWS ARE SUPERSEDED BY ANY APPLICABLE FEDERAL LAW, SUCH FEDERAL LAW SHALL APPLY.

     6.7 Construction. Whenever used herein, a masculine pronoun shall be deemed to
include the feminine and neuter genders and a singular word shall be deemed to include the plural
and vice versa, in all cases where the context requires.

     6.8 Termination; Amendment; Waiver.

          (a) The Board or the Committee may amend or terminate the Plan at any time and from time to
time; provided, however, that (i) termination or amendment of the Plan shall not affect any
obligation of the Company under the Plan that has accrued and is unpaid as of the effective date of
the termination or amendment and (ii) no provision of the Plan may be modified, waived, amended,
discharged or terminated at any time in any manner adverse to an Eligible Executive without the
prior written consent of the Eligible Executive, it being understood that from and after the
Effective Date, the rights of each current and future Eligible Executive under the Plan shall be
deemed to be vested.

          (b) No waiver by the Company or any Eligible Executive of any breach of, or of compliance
with, any condition or provision of this Plan by the other party shall be considered a waiver of
any other condition or provision or of the same condition or provision at another time.

     6.9 Whole Agreement. This Plan contains all the legally binding understandings and
agreements between each participating Eligible Executive and the Company pertaining to the subject
matter hereof and supersedes any and all negotiations, agreements and understandings, whether oral
or in writing, previously entered into between the Company and each participating Eligible
Executive.

11

 

     6.10 Withholding Taxes. All payments made under this Plan shall be subject to
reduction to reflect taxes required to be withheld by law.

     6.11 No Assignment. The rights of an Eligible Executive to payments or benefits
under this Plan shall not be made subject to option or assignment, either by voluntary or
involuntary assignment or by operation of law, including (without limitation) bankruptcy,
garnishment, attachment or other creditor’s process, and any action in violation of this Section
6.11 shall be void; provided, however, that an Eligible Executive shall have the right at any time
to designate, on a form provided by the Company, his or her beneficiary(ies) (both primary and
contingent) to receive any benefits payable under the Plan following the Eligible Employee’s death.

     6.12 Adoption and Term. This Plan was adopted by the Committee on and effective as of
the Effective Date, and shall continue in effect from the Effective Date until terminated as
provided in Section 6.8.

12

 

Exhibit A

Form of Separation Agreement and General and Special Release

     This Separation Agreement and General and Special Release (“Agreement”) is made by and between
[name of eligible executive] (the “Executive”) and Ameristar Casinos, Inc., a
Nevada corporation (“Company”), with respect to severance payments and benefits to be provided 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 the Ameristar Casinos, Inc. Change in Control
Severance Plan for Director-Level Employees effective as of December 13, 2007 (the “Plan”), 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
or programs, 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 and against
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 executing this release, which
if known by the Executive must or might have materially affected his or her settlement with the
Company.

13

 

     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 the Plan and the Company’s Confidentiality
and Non-Disclosure Policy and Insider Trading Policy, which the Executive and the Company reaffirm
and incorporate herein by this reference and which shall survive indefinitely. 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 Plan or this Agreement.

     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                                                             ,                                         

	 	 	 	 	 
	 
	 	 	 	 
	 

	 	 

[Name of Executive]
	 	 

     Dated                                         ,                      at                                                             ,                                         

	 	 	 	 	 	 	 
	 	 	AMERISTAR CASINOS, INC.
	 
	 	 	 	 	 	 
	 

	 	By
	 	 
 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Its
	 	 
 

	 	 

14

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