Ameristar Casinos, Inc. 2005 Performance-Based Bonus Plan for Craig H. Neilsen
Ameristar Casinos, Inc. established a 2005 bonus plan for Craig H. Neilsen, setting a target bonus of $850,000 based on the company's EBITDA performance. If EBITDA is below 90% of the $259,400,000 target, no bonus is paid. If EBITDA meets or exceeds the target, the bonus increases, with a maximum of $1,700,000 if EBITDA reaches at least 110% of the target. The plan outlines specific calculations for bonus amounts depending on the company's financial results for the year.
Exhibit 10.1
AMERISTAR CASINOS, INC.
PERFORMANCE-BASED BONUS PLAN
FOR CRAIG H. NEILSEN
PERFORMANCE CRITERIA FOR 2005
Adopted by the Compensation Committee
of the Board of Directors
March 24, 2005
For purposes of the Performance-Based Bonus Plan for Craig H. Neilsen (this “Plan”) for 2005, Mr. Neilsen’s target bonus shall be $850,000 (the “Target Bonus”) and the target level of Company EBITDA against which Company performance will be measured shall be $259,400,000 (the “EBITDA Target”).
The Earned Bonus shall be calculated in accordance with the following formula:
| • | If EBITDA is less than 90.0% of the EBITDA Target, then the Earned Bonus shall equal zero. |
| • | If EBITDA is at least 90.0% of the EBITDA Target but less than 100.0% of the EBITDA Target, then the Earned Bonus shall be calculated as follows: |
| • | Earned Bonus = $850,000 — $0 ###-###-#### for every $1.00 by which Company EBITDA is less than $259,400,000. |
| • | If EBITDA equals exactly 100.0% of the EBITDA Target, then the Earned Bonus shall equal the Target Bonus (i.e., $850,000). |
| • | If EBITDA is greater than 100.0% of the EBITDA Target but less than 110.0% of the EBITDA Target, then the Earned Bonus shall be calculated as follows: |
| • | Earned Bonus = $850,000 + $0 ###-###-#### for every $1.00 of EBITDA achieved by the Company in excess of $259,400,000. |
| • | If EBITDA is 110.0% of the EBITDA Target or greater, then the Earned Bonus shall equal 200% of the Target Bonus (i.e., $1,700,000). |
