Document:

<page>

                                                               Exhibit 10.62

                           WEXFORD AIR HOLDINGS INC.
                            (FKA WEXFORD III CORP.)

                          11.5% NOTE DUE MAY 15, 2002

     16,882,520.34                                             May 14, 2001

     FOR THE VALUE RECEIVED of full satisfaction of principal and interest
due WexAir, LLC by Wexford Air Holdings Inc. (FKA Wexford III Corp.) under
its 11.5% Note due May 15, 2001, the undersigned, Wexford Air Holdings Inc.
(FKA Wexford III Corp.) (herein called the "Company"), a corporation
organized and existing under the laws of the State of Delaware, hereby
promises to pay to the order of WexAir, LLC the principal sum of Sixteen
Million Eight Hundred Eighty Two Thousand, Five Hundred Twenty Dollars and
Thirty Four Cents on May 15, 2002, or if such day is a Saturday, Sunday or
any day in which banks located in the State of New York are authorized or
obligated to close, then on the next day which is not a Saturday, Sunday or
day in which banks located in the State of New York are authorized or
obligated to close, or on such earlier date as the Company may specify in
written notice to WexAir, LLC, with interest (computed on the basis of a
360-day year of twelve 30-day months and compounded semiannually) (a) on the
unpaid balance thereof at the rate of 11.5% per annum from the date hereof,
payable at maturity which interest rate reflects the increased cash flow
needs of the Company and its subsidiaries, and (b) to the extent permitted by
law, on any overdue payment (including any overdue prepayment) of principal
and any overdue payment of interest, payable as aforesaid (or, at the option
of the holder hereof, on demand), at a rate per annum from time to time equal
to the greater of (i) 15% or (ii) 5% over the rate of interest publicly
announced by the Chase Manhattan Bank from time to time in New York, New York
as its "base" or "prime" rate.

     Payments of principal of and interest on this Note are to be made in
lawful money of the United States of America at the office of the Company or
at such other place as the Company shall have designated by written notice to
the holder of this Note.

     The Company agrees, and the holder agrees, that the indebtedness
evidenced by this Note is subordinate in right of payment, to the extent and
in the manner provided in this paragraph, to the prior payment in full of all
Senior Debt, and that the subordination is for the benefit of the holders of
Senior Debt. "Senior Debt" means any indebtedness for borrowed money, or any
guarantee of such indebtedness, of the Company outstanding at any time except
debt that by its terms is not senior in right of payment to this Note. Upon
any distribution to creditors of the Company in a liquidation or dissolution
of the Company or in a bankruptcy, reorganization, insolvency, receivership
or similar proceeding relating to the Company or its property, (1) holders of
Senior Debt shall be entitled to receive payment in full in cash of the
principal of and interest (including interest accruing after the commencement
of any such proceeding) to the date of payment on the Senior Debt before the
holder shall be entitled to receive any payment of principal of or interest
on this Note; and (2) until the Senior Debt is paid in full in cash, any
distribution to which the holder would be entitled but for this paragraph
shall be made to holders of Senior Debt as their interests may appear. The
Company may not pay principal of or interest on this Note and may not acquire
this Note for cash or property other than capital stock of the Company if a
default on Senior Debt occurs and is continuing that permits holders of such
Senior Debt to accelerate its maturity, and if a distribution is made to the
holder that because of this paragraph should not have been made to it, the
holder who receives the distribution shall hold it in trust for holders of
Senior Debt and pay it over to them as their interests may appear. After all
Senior Debt is paid in full and until this Note is paid in full, the holder
shall be subrogated to the rights of holders of Senior Debt to receive
distributions applicable to Senior Debt to the extent that distributions
otherwise payable to the holders have been applied to the payment of Senior
Debt. Nothing in this paragraph shall impair, as between the Company and the
holder, the obligation of the Company, which is absolute and unconditional,
to pay principal of and interest on this Note in accordance with its terms.

     The Company may prepay this Note, in whole or in part, at any time
together with interest accrued to the date of such prepayment. Upon any sale,
assignment, transfer or other disposition of any stock of Chautauqua
Airlines, Inc., or upon any issuance or sale by the Company of any capital
stock, the Company shall prepay principal and interest on this Note in an
amount equal to the cash proceeds of any such disposition, issuance or sale,
net of reasonable costs and expenses and net of any repayments of
indebtedness secured by a lien on any such stock of Chautauqua Airlines, Inc.

     If the Company defaults in the payment of any amount due hereon when
due, and payable, the principal of this Note together with all accrued and
unpaid interest hereon may be declared due and payable by the holder by
notice to the Company.

     This Note, and the rights associated herewith, may be transferred by the
Holder only by surrender to the Maker for reissuance along with appropriate
transfer instructions, The Maker shall reissue this Note as and when
requested by the Holder at any time prior to its maturity in accordance with
those instructions.

                                        WEXFORD AIR HOLDINGS INC.
                                        (FKA WEXFORD III CORP.)

                                        By: JAY MAYMUDES
                                            -------------------------
                                        Name:  Jay Maymudes
                                        Title: Vice President<Page>

                                                                  Exhibit 10.63

                              EMPLOYMENT AGREEMENT

THIS AGREEMENT is made and entered into as of June 25, 1999, by and between
CHAUTAUQUA AIRLINES, INC. (hereinafter referred to as the "Company"), a New York
corporation, and BRYAN K. BEDFORD (hereinafter referred to as the "Executive").

                                 R E C I T A L S

         WHEREAS, the Company desires to employ the Executive, and the Executive
is desirous of accepting such employment by the Company, upon the terms and
conditions hereinafter set forth,

         NOW, THEREFORE, in consideration of the foregoing and the mutual
covenants hereinafter set forth, the parties hereto agree as follows:

         1. EMPLOYMENT. Subject to the satisfaction of the conditions set forth
in this Section 1, the Company agrees to employ the Executive, and the Executive
agrees to render his services to the Company, as its President and Chief
Executive Officer, during the Term (as defined below). In connection with his
employment as President and Chief Executive Officer, the Executive shall be
appointed to serve as a member as the Board of Directors of the Company. The
Executive shall render his services at the direction of the Board of Directors
of the Company at the Company's offices in Indianapolis, Indiana. The Executive
agrees to use his best efforts to promote and further the business, reputation
and good name of the Company and the Executive shall promptly and faithfully
comply with all instructions, directions, requests, rules and regulations made
or issued from time to time by the Company. This Agreement shall be subject to
the satisfaction of a satisfactory drug test (which the Company shall promptly
arrange) by the Executive.

         2. TERM. The term of employment pursuant to this Agreement (the "Term")
shall commence on July 6, 1999 and continue until June 30, 2003; provided that
either party may terminate this Agreement by providing the other with 30 days
prior written notice of such termination. Notwithstanding the foregoing, this
Agreement may be terminated by the Company or by the Executive in the event that
"Cause" for such termination exists as provided in Section 7 below. In the event
(i) the Company terminates this Agreement or the Executive's employment other
than for Cause, or (ii) the Executive terminates this Agreement or the
Executive's employment for Cause, the Company shall pay the Executive Severance
Compensation as provided in Section 3(c) hereof. In the event the Company
terminates this Agreement or the Executive's employment for Cause, or in the
event the Executive terminates this Agreement or his employment other than for
Cause, the Executive shall not be entitled to any Severance Compensation or
other compensation of any kind following the effective date of such termination.

         3. COMPENSATION. As full and complete compensation for all the
Executive's services hereunder, the Company shall pay the Executive the
compensation described below.

                                       1
<PAGE>

(a)      CASH COMPENSATION.

                  (i) During the Term, the Company shall pay the Executive an
         annual base salary of $280,000 ("Base Salary"). In the event this
         Agreement is terminated prior to the expiration of the Term, the
         Company shall pay to the Executive, in addition to any Severance
         Compensation payable under Section 3(c), any accrued but unpaid Base
         Salary through the termination date.

                  (ii) In addition to the Base Salary, during the Term, the
         Company shall pay to the Executive an annual bonus (a "Bonus") in the
         amount of $140,000 or such greater amount as the board of directors of
         the Company shall determine in its discretion. The Bonus shall be paid
         each year during the Term at the end of the calendar year and shall be
         prorated (x) for the 1999 calendar year for the period from the
         commencement date of the Executive's employment through the end of such
         calendar year, and (y) for the 2003 calendar year for the period from
         January 1, 2003 through the end of the Term. In the event this
         Agreement or the Executive's employment is terminated (x) by the
         Company for Cause or (y) by the Executive other than for Cause, the
         Executive shall not be entitled to any Bonus Compensation for such year
         or any subsequent period. In the event this Agreement or the
         Executive's employment is terminated (x) by the Company other than for
         Cause, or (y) by the Executive for Cause, the Executive's right with
         respect to a Bonus for the year in which such termination occurs shall
         be governed by Section 3(c).

(b)      EQUITY COMPENSATION.

                  (i) Concurrently with the execution and delivery of this
         Agreement, the Company shall issue to the Executive, as compensation
         and without cost to the Executive, options (the "Options") to purchase
         120,000 shares of the Company's Common Stock, par value $.01 per share
         (the "Common Stock"), representing 6% of the shares of Common Stock
         that are currently issued and outstanding. The Options shall have an
         exercise price per share of $26.75, which is equivalent to an
         enterprise value of $53.5 million. The Options shall vest and become
         immediately exercisable as to 1/48 of the shares subject to the Options
         on the last day of each month during the Term, subject to termination
         as provided below. The Executive shall have the right to exercise any
         vested Options at any time within 5 years after the date that such
         Options became vested and any Options not exercised within such
         deadline shall be deemed terminated and void.

                  (ii) In the event this Agreement or the Executive's employment
         is terminated (x) by the Company for Cause, or (y) by the Executive
         other than for Cause, the Options shall cease vesting as of the date
         that the Company or the Executive provides notice of such termination,
         and any unvested Options shall immediately terminate and become void.
         In the event this Agreement or the Executive's employment is terminated
         (x) by the Company other than for Cause, or (y) by the Executive for
         Cause, the Options shall vest as and to the extent provided in Section
         3(c) hereof.

                                       2
<PAGE>

                  (iii) Notwithstanding anything to the contrary otherwise
         contained herein, if at any time during the Term the Company shall, by
         stock dividend, stock split, combination, reclassification or exchange,
         or through merger, consolidation or otherwise, change its shares of
         Common Stock into a different number, kind or class of shares or other
         securities or property, then the Board of Directors may, in its sole
         discretion, either make the Options immediately exercisable or arrange
         for a successor or surviving corporation, if any, to grant replacement
         options, or to adjust the number of shares covered by the Options and
         the price of each share. The determination of the Board of Directors
         shall be conclusive.

                  (iv) Notwithstanding anything to the contrary otherwise
         contained herein, if at any time during the Term the Company shall
         issue additional shares of Common Stock to any party that is affiliated
         with Wexford Management LLC (an "Affiliate"), the Executive shall have
         the right, but not the obligation, to purchase for the same
         consideration and on the same terms that such shares of Common Stock
         shall be issued to such Affiliate up to 6% of the shares issued to such
         Affiliate. The grant of any stock options to any director or officer of
         the Company shall not provide the Executive with any rights under this
         Section 3(b)(iv).

                  (v) In the event Wexford Management LLC or any Affiliate has
         the right to sell all or a portion of the shares of Common Stock of the
         Company held by them in an public offering (whether an initial offering
         or a subsequent offering), a private sale or other transaction, or to
         register all or a portion of the shares of Common Stock of the Company
         held by them, the Executive shall be offered the right to sell or
         register as the case may be pro rata with Wexford and such Affiliate
         all or a portion of the Shares of Common Stock for which he holds
         vested Options.

(c) SEVERANCE COMPENSATION. In the event (i) the Company terminates this
Agreement or the Executive's employment other than for Cause, or (ii) the
Executive terminates this Agreement or his employment for Cause, the Company
shall pay to the Executive as Severance Compensation $560,000, provided that in
the event the remainder of the Term is less than 24 months, such Severance
Compensation shall be prorated for the remainder of the Term, but shall not be
less than $140,000. For example, if the Company terminates this Agreement other
than for Cause with 20 months remaining in the Term, the Company shall pay the
Executive Severance Compensation of $466,667. The Executive shall also receive
as Severance Compensation (i) subject to the next following sentence, an
immediate vesting of those Options that would have vested during the 24 months
after such termination, or such lesser period through the end of the Term, if
the Executive's employment had not been terminated, and (ii) continuation of
medical benefits for the lesser of 12 months or the remainder of the Term.
Notwithstanding the foregoing, in the event the Executive terminates this
Agreement or his employment for Cause as a result of a Change of Control (as
defined herein), all unvested Options shall immediately vest.

         4. NO OTHER COMPENSATION. Except as otherwise expressly provided
herein, or in any other written document executed by the Company and the
Executive, no other compensation or other

                                       3
<PAGE>

consideration shall become due or payable to the Executive on account of the
services rendered hereunder. The Company shall have the right to deduct and
withhold from the compensation payable to the Executive hereunder any amounts
required to be deducted and withheld under the provisions of any statute,
regulation, ordinance, order or any other amendment thereto, heretofore or
hereafter enacted, requiring the withholding or deduction of compensation.

         5.       BENEFITS.

(a) MEDICAL & 401K BENEFITS. The Company agrees that the Executive shall be
entitled to participate in any retirement, 401K, disability, medical, pension,
profit sharing, group insurance, or any other plan or arrangement, or in any
other benefits now or hereafter generally available to executives of the
Company, in each case to the extent that the Executive shall be eligible under
the general provisions thereof, provided that the Company shall waive any
waiting period for participation in any such plan.

(b) REIMBURSEMENT OF LIVING EXPENSES. Prior to the Executive's relocation to
Indianapolis, Indiana, which shall take place no later than August 15, 1999, the
Company will pay for or reimburse the Executive for all travel, hotel and other
documented out-of-pocket expenses reasonably incurred by him and his immediate
family in connection with the performance of his duties hereunder in
Indianapolis.

(c) RELOCATION EXPENSES. The Company shall pay for or reimburse the Executive
for all out-of-pocket relocation expenses reasonably incurred by him and his
immediate family in connection with his relocation to Indianapolis, including,
without limitation, moving costs, brokerage commission costs, any loss incurred
on the sale of the Executive's current home not to exceed $25,000, and a state
and federal tax "gross up" on such relocation expenses, provided that such
expenses shall not exceed $125,000 in the aggregate.

         6. VACATION. The Executive shall be entitled to take three weeks of
paid vacation which shall accrue monthly during each 12 months of the
Executive's employment hereunder, and which vacation shall be taken on dates to
be selected by mutual agreement of the Company and the Executive.

         7.       TERMINATION FOR CAUSE.

(a) TERMINATION FOR CAUSE BY THE COMPANY. The Company, by written notice to the
Executive, may immediately terminate this Agreement and the Executive's
employment hereunder for Cause. As used herein, a termination by the Company
"for Cause" shall mean that the Executive has (i) willfully or materially
refused to perform a material part of his duties hereunder, (ii) materially
breached the provisions of Sections 8, 9 or 10 hereof, (iii) acted fraudulently
or dishonestly in his relations with the Company, (iv) committed larceny,
embezzlement, conversion or any other act involving the misappropriation of
Company funds or assets in the course of his employment, or (v) been indicted or
convicted of any felony or other crime involving an act of moral turpitude.

                                       4
<PAGE>

(b) TERMINATION FOR CAUSE BY THE EXECUTIVE. The Executive, by 20 business days
prior written notice to the Company, may terminate this Agreement and his
employment hereunder for Cause, provided that the Company shall have the right
to cure such Cause within such 20 business day period. As used herein, a
termination by the Executive "for Cause" shall mean that (i) the Company has
materially diminished the duties and responsibilities of the Executive, (ii) the
Company has required the Executive to relocate his residence from Indianapolis
to another location without the consent of the Executive or (iii) a Change of
Control has occurred. As used herein, a "Change of Control" shall mean a
transaction, other than a public offering (whether an initial offering or a
subsequent offering) of Common Stock of the Company, as a result of which the
number of shares of Common Stock of the Company collectively owned by Wexford
and its Affiliates is not greater than the number of shares of Common Stock
owned by any other shareholder of the Company.

         8. CONFIDENTIAL INFORMATION. The Executive recognizes and acknowledges
that he shall receive in the course of his employment hereunder certain
confidential information and trade secrets concerning the Company's business and
affairs which may be of great value to the Company. The Executive therefore
agrees that he will not disclose any such information relating to the Company,
the Company's personnel or its operations other than in the ordinary course of
business or in any way use such information in any manner which could adversely
affect the Company's business. For purposes of this Agreement, the terms "trade
secrets" and "confidential information" shall include any and all information
concerning the business and affairs of the Company and any division, subsidiary
or other affiliate of the Company that is not generally available to the public.

         9. NON-COMPETITION. The Executive agrees that without the prior written
consent of Wexford Management LLC ("Wexford") during the Term and for a period
of 12 months following the termination or expiration of this Agreement, he will
not participate as an advisor, partner, joint venturer, investor, lender,
consultant or in any other capacity in any business transaction or proposed
business transaction (a) with respect to which the Executive had a material
personal involvement on behalf of the Company during the last 12 months of his
employment with the Company, or (b) that could reasonably be expected to
interfere with the Company's business or operations as of the date of such
termination or expiration. For these purposes, the mere ownership by the
Executive of securities of a public company not in excess of 2% of any class of
such securities shall not be considered to be competition with the Company.

         10. NON-SOLICITATION. The Executive agrees that during the Term, and
for a period of 12 months following the termination or expiration of this
Agreement, he shall not, without the prior written consent of the Company,
directly or indirectly, employ or retain, or have or cause any other person or
entity to employ or retain, any person who was employed by the Company or any of
it subsidiaries or affiliates while the Executive was employed by the Company,
provided that this provision shall not apply to any employee of the Company with
whom the Executive had a prior business relationship, who was recruited by the
Executive and whose employment with the Company commenced during the period from
the date of this Agreement through September 30, 1999.

                                       5
<PAGE>

         11. BREACH OF THIS AGREEMENT. If the Executive commits a breach, or
threatens to commit a breach, of any of the provisions of Sections 8, 9 or 10 of
this Agreement, then the Company shall have the right and remedy to have those
provisions specifically enforced by any court having equity jurisdiction, it
being acknowledged and agreed by the Executive that the rights and privileges of
the Company granted in Sections 8, 9 and 10 are of a special, unique and
extraordinary character and any such breach or threatened breach will cause
great and irreparable injury to the Company and that money damages will not
provide an adequate remedy to the Company.

         12. NOTICES. All notices and other communications required or permitted
hereunder shall be in writing (including facsimile, telegraphic, telex or cable
communication) and shall be deemed to have been duly given when delivered by
hand, faxed or mailed, certified or registered mail, return receipt requested
and postage prepaid:

         If to the Company:         Chautauqua Airlines, Inc.
                                    c/o Wexford Management LLC
                                    411 West Putnam Avenue
                                    Greenwich, CT 06830
                                    Fax: (203) 862-7312
                                    Attention: Joseph Jacobs, fax 203-862-7320
                                           and Arthur Amron, fax 203-862-7312

         If to the Executive:       Bryan K. Bedford
                                    11495 Bluestem Lane
                                    Eden Prairie, MN  55347
                                    Fax:  (612) 914-9044

         13. APPLICABLE LAW. This Agreement was negotiated and entered into
within the State of Indiana. All matters pertaining to this Agreement shall be
governed by the laws of the State of Indiana applicable to contracts made and to
be performed wholly therein. Nothing in this Agreement shall be construed to
require the commission of any act contrary to law, and wherever there is any
conflict between any provision of this Agreement and any material present or
future statute, law, governmental regulation or ordinance as a result of which
the parties have no legal right to contract or perform, the latter shall
prevail, but in such event the provision(s) of this Agreement affected shall be
curtailed and limited only to the extent necessary to bring it or them within
the legal requirements.

         14. ENTIRE AGREEMENT; MODIFICATION; CONSENTS AND WAIVERS. This
Agreement contains the entire agreement of the parties with respect to the
subject matter hereof and supersedes any and all prior agreements or
understandings, written or oral, between the parties with respect to the subject
matter hereof. No interpretation, change, termination or waiver of or extension
of time for performance under any provision of this Agreement shall be binding
upon any party unless in writing and signed by the party intended to be bound
thereby. Except as otherwise provided in this Agreement, no waiver of or other
failure to exercise any right under or default or extension of time for
performance under any provision or this Agreement shall affect the right of
any party to exercise

                                       6
<PAGE>

any subsequent right under or otherwise enforce said provision or any other
provision hereof or to exercise any right or remedy in the event of any other
default, whether or not similar.

         15. SEVERABILITY. The parties acknowledge that, in their view, the
terms of this Agreement are fair and reasonable as of the date signed by them,
including as to the scope and duration of post-termination activities.
Accordingly, if any one or more of the provisions contained in this Agreement
shall for any reason, whether by application of existing law or law which may
develop after the date of this Agreement, be determined by an arbitrator or
court of competent jurisdiction to be excessively broad as to scope of activity,
duration or territory, or otherwise unenforceable, the parties hereby jointly
request such court to construe any such provision by limiting or reducing it so
as to be enforceable to the maximum extent in favor of the Company compatible
with then-applicable law. If any one or more of the terms, provisions, covenants
or restrictions of this Agreement shall nonetheless be determined by an
arbitrator or court of competent jurisdiction to be invalid, void or
unenforceable, then the remainder of the terms, provisions, covenants and
restrictions of this Agreement shall remain in full force and effect and shall
in no way be affected, impaired or invalidated.

         16. ASSIGNMENT. The Company may, at its election, assign this Agreement
or any of its rights hereunder. This Agreement may not be assigned by the
Executive.

         17. COUNTERPARTS. This Agreement may be executed in counterparts, each
of which shall be deemed an original but all of which together shall constitute
one and the same instrument.

         18. ARBITRATION. Each of the parties hereby irrevocably and
unconditionally consents to arbitrate any dispute arising out of or relating in
any manner to this Agreement or the employment relationship contemplated hereby
or the termination thereof, or any alleged breach of any term or provision of
this Agreement. Such arbitration shall be conducted by a single arbitrator in
accordance with the rules of the American Arbitration Association then in
effect. Judgement may be entered on the arbitrator's award in any federal or
state court in Indiana (and the parties expressly consent to the jurisdiction of
such court), or in any other court having jurisdiction. Each of the Parties
agrees that in any arbitration arising out of or relating to this Agreement or
the employment relationship contemplated hereby or the termination thereof, or
any alleged breach of any term or provision of this Agreement or in any action
to enter judgment on an award in such arbitration each party shall bear its own
fees and expenses.

         19. SURVIVAL. The provisions of Sections 8 through 18 of this Agreement
shall survive any expiration or termination of this Agreement.

                                       7
<PAGE>

         IN WITNESS WHEREOF, that parties hereto have executed this Employment
Agreement as of the date first above written.

                                              CHAUTAUQUA AIRLINES, INC.

                                              By:
                                                 ------------------------
                                                 Name:
                                                 Title:

                                              BRYAN K. BEDFORD

                                               /s/ Bryan K. Bedford
                                              ---------------------------

                                       8

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00034-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00034-of-00352.parquet"}]]