Document:

Exhibit 10.1

PONIARD
PHARMACEUTICALS, INC.

INDEMNIFICATION AGREEMENT

This Indemnification Agreement
(this “Agreement”), dated as of June 26,
2006, is entered into by and between Poniard Pharmaceuticals, Inc., a
Washington corporation (the “Company”),
and Ronald A. Martell (“lndemnitee”).

RECITALS

A.    The Company and lndemnitee recognize the litigation risks
inherent in service as a director and/or officer of a publicly traded company,
including the substantial costs involved in defending such matters.

B.     The Company’s articles of incorporation (the “Articles”) and bylaws (the “Bylaws”) contain certain provisions,
approved by the Company’s shareholders, for indemnification of the Company’s
directors and/or officers to the full extent permitted by the Washington
Business Corporation Act (the “Statute”).

C.     The Articles, the Bylaws and the Statute specifically provide
that they are not exclusive, and contemplate that contracts may be entered into
between the Company and its directors and/or officers with respect to
indemnification.

D.     The lndemnitee has indicated a desire to supplement the
indemnification provisions in the Articles and Bylaws to provide additional
protections against the risks associated with his service to the Company and
further clarify his rights with respect to indemnification in certain
circumstances.

E.     To induce Indemnitee to accept the position or continue service
as a director and/or officer of the Company, the Company and the
Indemnitee now agree that they should enter into this Indemnification
Agreement.

AGREEMENT

1.   Indemnification of Indemnitee

1.1   Scope

Subject to Section 4.1 and
all other terms and conditions of this Agreement, the Company agrees to
indemnify and hold harmless Indemnitee, to the full extent permitted by law,
whether or not specifically authorized by this Agreement, the Articles, the
Bylaws, the Statute or otherwise, for any Indemnifiable Losses (as
defined below) which the Indemnitee is or becomes legally obligated to pay in
connection with any Proceeding. In the
event of any change, after the date of this Agreement, in any applicable law,
statute or rule regarding the right of a Washington corporation to
indemnify a director and/or officer, such changes, to the extent that they
would expand Indemnitee’s indemnification rights, shall be within the purview
of Indemnitee’s rights and the Company’s obligations under this Agreement, and,
to the extent that they would narrow Indemnitee’s indemnification rights, shall
not affect or limit the scope of this Agreement; provided, however, that

 

any
change that is required by applicable laws, statutes or rules to be
applied to this Agreement shall be so applied regardless of whether the effect
of such change is to narrow Indemnitee’s rights.

1.2   Nonexclusivity

The indemnification provided by
this Agreement is not exclusive of any rights to which Indemnitee may be
entitled under the Articles, the Bylaws, any other agreement, any vote of
shareholders or disinterested directors, the Statute, or otherwise, whether as
to action in Indemnitee’s official capacity or otherwise.

1.3   Definition of Indemnifiable Losses

For purposes of this Agreement,
the term “Indemnifiable Losses” shall
include (without limitation) any and all damages (compensatory, exemplary, punitive or otherwise), judgments,
fines, penalties, settlements, costs, attorneys’ fees and disbursements, costs
of attachment or similar bonds, investigations, expenses of establishing a
right to indemnification under this Agreement, and any other losses, claims, liabilities or other expenses
incurred in connection with a Proceeding, subject to the limitations set forth
in Section 4.1 below.

1.4   Definition of Proceeding

For purposes of this Agreement,
the term “Proceeding” shall include
(without limitation) any threatened, pending or completed claim, action,
suit or proceeding, whether brought by or in the right of the Company or
otherwise, and whether of a civil, criminal, administrative or investigative
nature, in which the Indemnitee may be or may have been involved as a party or
otherwise (including without limitation as a witness), (a) by reason of
the fact that Indemnitee is or was, or has agreed to become, a director and/or
officer of the Company, (b) by reason of any actual or alleged error or
misstatement or misleading statement made or suffered by the Indemnitee, (c) by
reason of any action taken by Indemnitee or of any inaction on Indemnitee’s
part while acting as such director and/or officer, or (d) by reason of the
fact that Indemnitee was serving at the request of the Company as a director,
trustee, officer, employee or agent of the Company or another corporation,
partnership, joint venture, trust or other enterprise (including without limitation employee benefit plans and administrative
committees thereof) (which request will be conclusively presumed in the
case of any of the foregoing that are “affiliates” of the Company as defined in
Rule 12b-2 under the Securities Exchange Act of 1934, as amended); provided, however, that, except with respect to
an action to enforce the provisions of this Agreement, the term “Proceeding”
shall not include any action, suit, claim or proceeding instituted by or at the
direction of Indemnitee unless such action, suit, claim or proceeding is or was
authorized or ratified by the Company’s Board of Directors.

1.5   Determination of Entitlement

In the event that a
determination of Indemnitee’s entitlement to indemnification is required
pursuant to Section 23B.08.550 of the Statute or its successor or pursuant
to other applicable law, the party specified therein as the determining party
shall make such determination; provided, however, (a) that Indemnitee
shall initially be presumed in all cases to be entitled to indemnification, (b) that
Indemnitee may establish a conclusive presumption of any fact necessary to such
a determination by delivering to the Company a declaration made under penalty
of perjury that such fact is true and (c) that, unless the Company shall
deliver to Indemnitee written notice of a determination that Indemnitee is not
entitled to indemnification within twenty (20) days of the Company’s
receipt of

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Indemnitee’s
initial written request for indemnification, such determination shall
conclusively be deemed to have been made in favor of the Company’s provision of
indemnification and Company agrees not to assert otherwise.

1.6   Survival

The indemnification provided
under this Agreement shall apply to any and all Proceedings, notwithstanding
that Indemnitee has ceased to serve in a capacity referred to in Section 1.4(a)-(d).

2.   Expense Advances

2.1   Generally

The right to indemnification for
Indemnifiable Losses conferred by Section 1 shall include the right to
have the Company pay Indemnitee’s expenses in any Proceeding as such expenses
are incurred and in advance of such Proceeding’s final disposition (such right
is referred to hereinafter as an “Expense Advance”),
subject to Sections 2.2, 4 and 5 and all other terms and conditions of this
Agreement.

2.2   Conditions to Expense Advance

The Company’s obligation to
provide an Expense Advance is subject to (a) Indemnitee or his
representative having first executed and delivered to the Company an
undertaking, which need not be secured and shall be accepted without reference
to Indemnitee’s financial ability to make repayment, by or on behalf of
Indemnitee to repay all Expense Advances if and to the extent that it shall
ultimately be determined by a final, unappealable decision rendered by a court
having jurisdiction over the parties and the subject matter of the dispute that
Indemnitee is not entitled to be indemnified under this Agreement or otherwise;
and (b) Indemnitee furnishing, upon request by the Company and if required
under applicable law, a written affirmation of Indemnitee’s good faith belief
that Indemnitee has met any applicable standards of conduct.

2.3   Subrogation

In the event of payment under this Agreement, the
Company shall be subrogated to the extent of such payment to all of the rights
of recovery of the Indemnitee, who shall execute all papers required and shall
do everything that may be necessary to secure such rights, including the
execution of such documents necessary to enable the Company effectively to
bring suit to enforce such rights.

3.   Procedures for Enforcement

3.1   Enforcement

In the event that a claim for
indemnification hereunder is made and is not paid in full within sixty days
after written notice of such claim has been received by the Company, except in
the case of a claim for advance expenses, in which case the applicable period
shall be twenty days, Indemnitee may, but need not, at any time bring suit
against the Company to recover the unpaid amount of the claim (an “Enforcement Action”), subject to all
other terms, conditions and limitations of this Agreement.

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3.2   Presumptions in Enforcement Action

In any Enforcement Action the
following presumptions (and limitation on presumptions) shall apply:

(a)    The Company shall conclusively be presumed to have entered into
this Agreement and assumed the obligations imposed on it to induce Indemnitee
to accept the position of, or to continue as a director and/or officer of the
Company; and

(b)    Neither (i) the failure of the Company (including its Board
of Directors, independent or special legal counsel or the Company’s shareholders)
to have made a determination prior to the commencement of the Enforcement
Action that indemnification of Indemnitee is proper in the circumstances nor (ii) an
actual determination by the Company, its Board of Directors, independent or
special legal counsel or the shareholders that Indemnitee is not entitled to
indemnification shall be a defense to the Enforcement Action or create a
presumption that Indemnitee is not entitled to indemnification.

3.3   Attorneys’ Fees and Expenses for Enforcement
Action

The Company shall indemnify and
hold harmless Indemnitee against all of Indemnitee’s reasonable fees and
expenses in bringing and pursuing any Enforcement Action (including reasonable
attorneys’ fees at any stage, including on appeal); provided, however, that the
Company shall not be required to provide such indemnity (a) if a court of
competent jurisdiction determines that all the material assertions made by
Indemnitee in such Enforcement Action were not made in good faith or were
frivolous or (b) to the extent limited under Section 4.1 below.

4.   Limitations

4.1   Limitation on Indemnity

Notwithstanding any other provision of this Agreement, the Company shall
not be obligated to provide indemnification pursuant to this Agreement:

(a)    on account of any suit in which a final, unappealable decision is
rendered by a court having jurisdiction over the parties and the subject matter
of the dispute for an accounting of profits made from the purchase or sale by
Indemnitee of securities of the Company in violation of the provisions of Section 16(b) of
the Securities Exchange Act of 1934 and amendments thereto;

(b)    for Indemnifiable Losses that have been paid directly to
Indemnitee by an insurance carrier under a policy of insurance maintained by
the Company;

(c)    on account of Indemnitee’s conduct which is finally adjudged with
no further right of appeal to have been intentional misconduct, a knowing
violation of law, a violation of RCW 23B.08.310 or any successor provision
of the Statute, or a transaction from which Indemnitee derived personal benefit
in money, property or services to which Indemnitee was not legally entitled;

(d)    to the extent that the Indemnitee is indemnified and
actually paid otherwise than pursuant to this Agreement;

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(e)    if a final, unappealable decision is rendered by a court having
jurisdiction over the parties and the subject matter of the dispute finding
that paying such indemnification is prohibited by applicable law;

(f)     to the extent that attorneys’ fees, costs and disbursements, or
similar expenses, that otherwise would constitute Indemnifiable Losses
hereunder are determined to be unreasonable by a final, unappealable decision
rendered by a court having jurisdiction over the parties and the subject matter
of the dispute, provided that the burden of proof that any Indemnifiable Losses
are unreasonable shall be on the Company; or

(g)    to the extent such Indemnifiable Losses have been incurred by
Indemnitee in violation of the terms of Section 5 below.

4.2   Partial Indemnification

If Indemnitee is entitled under
any provision of this Agreement to indemnification by the Company for some or a
portion of any Indemnifiable Losses in connection with a Proceeding, but not,
however, for the total amount thereof, the Company shall nevertheless indemnify
Indemnitee for the portion of such Indemnifiable Losses to which Indemnitee is
entitled.

4.3   Mutual Acknowledgment

The Company and Indemnitee
acknowledge that, in certain instances, federal law or public policy may
override applicable state law and prohibit the Company from indemnifying
Indemnitee under this Agreement or otherwise. For example, the Company and
Indemnitee acknowledge that the Securities and Exchange Commission has taken
the position that indemnification is not permissible for liabilities arising
under certain federal securities laws, and federal legislation prohibits
indemnification for certain ERISA violations. Furthermore, Indemnitee
understands and acknowledges that the Company has undertaken or may be required
in the future to undertake with the Securities and Exchange Commission to
submit the question of indemnification to a court in certain circumstances for
a determination of the Company’s right under public policy to indemnify
Indemnitee.

5.   Notification and Defense of Claim

5.1   Notification

Promptly after receipt by
Indemnitee of notice of the commencement of any Proceeding, Indemnitee will, if
a claim is to be made against the Company under this Agreement, notify an
officer of the Company in writing of the nature and status of the Proceeding;
provided, however, that the omission so to notify an officer of the Company
will not relieve the Company from any obligation which it may have to
Indemnitee under this Agreement or otherwise unless and only to the extent that
such omission can be shown to have prejudiced the Company.

If, at the time of the receipt
of a notice of a claim pursuant to this Section 5.1, the Company has
director and officer liability insurance in effect, the Company shall give
prompt notice of the commencement of such Proceeding to the insurers in
accordance with the procedures set forth in the respective policies (unless the
Indemnitee’s involvement in such Proceeding is solely as a witness or there is
otherwise no basis for asserting coverage). The Company shall take all
necessary action to

 5
 

 

cause
such insurers to pay, on behalf of the Indemnitee, all amounts payable as a
result of such Proceeding in accordance with the terms of such policies.

5.2   Defense of Claim

With respect to any such Proceeding as to which Indemnitee notifies the
Company of the commencement thereof or otherwise seeks indemnification
hereunder:

(a)    The Company may participate at its own expense in such
Proceeding;

(b)    The Company, jointly with any other indemnifying party similarly
notified, may assume the defense of the Proceeding with counsel reasonably
satisfactory to Indemnitee. After notice from the Company to Indemnitee of its
election to assume the defense, the Company shall not be liable to Indemnitee
under this Agreement or otherwise for any legal or other expenses of counsel
(other than reasonable costs of investigation) subsequently incurred by
Indemnitee in connection with the defense of such Proceeding, unless (i) the
employment of counsel by Indemnitee has been authorized in advance by the
Company in writing, (ii) Indemnitee shall have reasonably concluded that there
may be a conflict of interest between the Company and Indemnitee in the conduct
of the defense of such action and notified the Company in writing to that
effect in advance of the expense, (iii) the Company shall not in fact have
employed counsel to assume the defense of such action, or (iv) the Company
is not financially or legally able to perform its indemnification obligations,
in each of which cases the fees and expenses of counsel shall be at the expense
of the Company. The Company shall not be entitled to assume the defense of any
action, suit or proceeding brought by or on behalf of the Company or as to
which Indemnitee shall have made the conclusion provided for in (ii) or (iv) above;

(c)    The Company shall not settle any action or claim in any manner
which would impose any penalty or limitation on Indemnitee that would not be an
Indemnifiable Loss hereunder for which indemnification would be provided by the
Company without Indemnitee’s written consent.

6.   Miscellaneous

6.1   Entire Agreement

This Agreement is the entire
agreement of the parties regarding its subject matter and supersedes all prior
written or oral communications or agreements.

6.2   Severability

Nothing in this Agreement is
intended to require or shall be construed as requiring the Company to do or
fail to do any act in violation of applicable law. The Company’s inability,
pursuant to court order, to perform its obligations under this Agreement shall
not constitute a breach of this Agreement. The provisions of this Agreement
shall be severable. If this Agreement or any portion shall be invalidated on
any ground by any court of competent jurisdiction, then the Company shall
nevertheless indemnify Indemnitee to the full extent permitted by any portion
of this Agreement not invalidated, and the balance of this Agreement shall be
enforceable in accordance with its terms.

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6.3   Notices

Notices given pursuant to this
Agreement shall be deemed duly given on the date of personal delivery, on the
date sent by fax or three days after mailing if mailed by certified or
registered mail, return receipt requested, postage prepaid, to the party at its
address below or such other address of which the addressee may subsequently
notify the other parties in writing.

6.4   Governing Law

This Agreement and the rights
and obligations of the parties shall be governed by and construed in accordance
with the laws of the state of Washington, without giving effect to principles
of conflicts of law.

6.5   Counterparts

This Agreement may be executed
in two or more counterparts, each of which shall be deemed an original, but all
of which together shall constitute one instrument.

6.6   Amendments; Waivers

Neither this Agreement nor any
provision may be amended except by written agreement signed by the parties. No
waiver of any breach or default shall be considered valid unless in writing,
and no such waiver shall be deemed a waiver of any subsequent breach or
default.

6.7   Successors and Assigns

This Agreement shall be binding
upon the Company and its successors (including, without limitation, any direct
or indirect successors by purchase, merger, consolidation or otherwise to all
or substantially all of the business and assets of the Company) and assigns,
and inure to the benefit of Indemnitee and Indemnitee’s heirs, legal representatives
and assigns.

(Signature page follows)

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

	
  

  	
   

  	
  COMPANY:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  PONIARD PHARMACEUTICALS,
  INC.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/GERALD MCMAHON

  
	
   

  	
   

  	
   

  	
   

  	
  Gerald McMahon

  President and Chief Executive Officer

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Address:

  	
   

  	
  300 Elliott Avenue West,
  Suite 500

  Seattle, Washington 98991

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  INDEMNITEE:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/RONALD A. MARTELL

  
	
   

  	
   

  	
  Ronald A. Martell

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Address:

  	
   

  	
  25 Queensbury Way

  Basking Ridge, NJ 07920

  
							

 

 8Exhibit
10.17

 

Execution
Version

 

AGREEMENT

 

THIS AGREEMENT (“Agreement”)
dated as of April 18, 2006 between MAIR Holdings, Inc., a Minnesota corporation
(“MAIR”), and UMB Bank, N.A. as trustee for the $14,000,000 Kenton
County Airport Board Special Facilities Revenue Bonds,1999 Series A (Mesaba
Aviation, Inc. Project) (the “Trustee”).

 

WITNESSETH:

 

WHEREAS, the
Trustee is the successor trustee for those certain $14,000,000 Kenton County
Airport Board Special Facilities Revenue Bonds,1999 Series A (Mesaba Aviation,
Inc. Project) (the “Bonds”) and has claims on the Bonds that are
evidenced by various documents (the “Bond Documents”) including, without
limitation, (i) that certain Trust Indenture by and between the Kenton County
Airport Board and Norwest Bank Minnesota, National Association, as trustee,
dated as of July 1, 1999 (the “Indenture”); and (ii) that certain Lease
Agreement by and Between Kenton County Airport Board and Mesaba Aviation, Inc.
dated as of July 1, 1999 (the “Lease Agreement”); and

 

WHEREAS, MAIR
guarantees obligations of its wholly-owned subsidiary, Mesaba Aviation, Inc. (“Mesaba”)
with respect to the Bond Documents pursuant to that certain Guaranty Agreement
dated as of July 1, 1999 (the “Guaranty”), including, without limitation
the full and prompt payment of the principal, premium, if any, and interest,
when and as the same shall become due and payable as provided in the Indenture
and Mesaba’s full and prompt performance of all obligations under the Lease
Agreement, all as more fully provided for in the Guaranty; and

 

WHEREAS, MAIR
has been making certain payments to the Trustee since October 13, 2005, the
date on which Mesaba filed for bankruptcy protection under Chapter 11 of the
United States Bankruptcy Code including: $91,927.61 on November 2, 2005,
$91,927.55 on December 6, 2005, $91,927.61 on December 30, 2005, $91,927.61 on
January 31, 2006, $91,927.61 on February 27, 2006 and $91,927.61 on March 1,
2006; and

 

WHEREAS, on
February 15, 2006, the Trustee declared the liability of MAIR for all sums owed
to the Trustee under the Bond Documents and Guaranty to be immediately due and
payable, demanded the immediate payment in full in cash of all such sums, and
demanded arrangements for the payment of any other charges due under the Bond Documents
and Guaranty (including the Trustee’s costs of collection), all as more fully
set forth in that certain demand letter dated February 15, 2006; and

 

WHEREAS, the
Trustee has agreed to forbear the acceleration and payment of amounts due under
the Bond Documents and Guaranty in exchange for MAIR delivering a letter of
credit for the benefit of the Trustee and certain other agreements between the
parties, and the parties have agreed to memorialize the terms and conditions of
their agreement,

 

NOW, THEREFORE,
in consideration of the premises and of the covenants herein contained, and for
other good and valuable consideration, the receipt and adequacy of which are
hereby acknowledged, the parties hereto hereby agree as follows:

 

1.             Execution
and Delivery of Letter of Credit. Contemporaneously with the
execution of this Agreement, MAIR shall deliver to the Trustee a letter of
credit (the “LOC”) from a bank acceptable to the Trustee (the “Issuing
Bank”), effective as of the date of this Agreement, in form and substance
acceptable to the Trustee, that names the Trustee as beneficiary, and in
substantially the form attached hereto. The LOC shall be in the amount of
$13,110,000 representing: (i) the $13,015,000 principal amount of the Bonds as
of the date of this Agreement; (ii) the approximate amount of the payments for
one month

 

 

described in Section 4.03(a)(y) and (a)(z) of
the Lease Agreement; and (iii) an additional amount to cover the Trustee’s
collection costs of the LOC.

 

2.             Obligation
to Maintain Letter of Credit. From and after the date of this
Agreement, MAIR shall ensure that until all obligations required by the Bond
Documents and Guaranty are indefeasibly satisfied in full, in cash, MAIR shall
maintain an LOC meeting the requirements described in this Agreement.

 

3.             Payment
of Amounts Under Bond Documents. From and after the date of this
Agreement, MAIR shall pay the Trustee, in cash, all amounts required under the
Bond Documents when and as the same would become due absent a default under any
of the Bond Documents, including, without limitation, all amounts required
under Section 4.03 of the Lease Agreement. MAIR shall also pay the Trustee, in
cash, the Trustee’s costs, attorney’s fees, charges and expenses as required by
the Bond Documents and Guaranty.

 

4.             Dollar
Amount of Letter of Credit. So long as no Event of Default (as
defined below) exists, each July 15 commencing July 15, 2006, MAIR may reduce
the dollar amount of the LOC by the amount described in Schedule 4.0 (attached
to this Agreement). MAIR shall ensure that notwithstanding any provision of
this Agreement, the dollar amount of the LOC shall at all times meet or exceed
the mandatory minimum remaining dollar amounts described in Schedule 4.0. In
the event that any applicable LOC does not contain terms that automatically
reduce the dollar amount of the LOC by the amount described in Schedule 4.0,
then MAIR shall give the Trustee notice (in the manner described below) not
less than fifteen days before any change in the dollar amount of the LOC
becomes effective. For the avoidance of doubt, the terms of the LOC shall not
otherwise be changed without the Trustee’s express written consent.

 

5.             Forbearance
of Acceleration. In consideration for MAIR delivering the LOC
and complying with the other requirements of this Agreement, for so long as no
Event of Default (as defined below) exists, the Trustee shall not demand
acceleration and payment of the amounts due from MAIR to the Trustee under the
Bond Documents and/or Guaranty.

 

6.             Events of
Default. The occurrence of any of the following events shall
constitute an “Event of Default”:

 

(a)           MAIR
fails to make any payment when due to the Trustee under the Bond Documents or
the Guaranty;

 

(b)           MAIR
fails to provide the Trustee satisfactory evidence that the LOC has been
renewed within forty-five (45) days prior to any expiration of the LOC then in
effect;

 

(c)           The
LOC is not renewed within forty-five (45) days prior to any expiration of the
LOC then in effect;

 

(d)           The
Issuing Bank for the LOC notifies the Trustee (in the manner required by the
LOC) of the Issuing Bank’s intent not to renew the LOC;

 

(e)           All
Bonds then outstanding become subject to mandatory redemption under the
Indenture;

 

(f)            MAIR
fails to comply with any other term of this Agreement; and/or

 

(g)           MAIR
commits any “Event of Default” as that term is used in the Guaranty.

 

2

 

7.             Remedies
on Default. Upon the occurrence of an Event of Default, the
Trustee, may, in its sole discretion, without any further action required under
this Agreement or otherwise, and without notice to MAIR or any opportunity to
cure:

 

(a)                                  make an immediate draw on the LOC;

 

(b)                                 without terminating this Agreement, treat the
Trustee’s obligations to MAIR under this Agreement as terminated (while
retaining all rights against MAIR);

 

(c)                                  pursue any other remedy provided by the Bond
Documents and/or the Guaranty; and/or

 

(d)                                 pursue any remedy provided by applicable law.

 

8.             Notices.
All notices, requests, claims, demands and other communications hereunder
shall be in writing and shall be given (and shall be deemed to have been duly
received if so given) by hand delivery, facsimile (with receipt confirmed by
telephone), or by any courier service, such as Federal Express, providing proof
of delivery. All communications hereunder shall be delivered to the respective
parties at the following addresses:

 

	
  If
  to Trustee:

  	
   

  	
  UMB Bank, N.A., as Trustee

  
	
   

  	
   

  	
  Corporate Trust Division

  
	
   

  	
   

  	
  2401 Grand Blvd., Suite
  200

  
	
   

  	
   

  	
  Kansas City, MO 64108

  
	
   

  	
   

  	
  Facsimile: (816) 860-3029

  
	
   

  	
   

  	
  Attention: Anthony Hawkins

  
	
   

  	
   

  	
   

  
	
  With
  copies to:

  	
   

  	
  Mintz,
  Levin, Cohn, Ferris, Glovsky and Popeo, P.C.

  
	
   

  	
   

  	
  One
  Financial Center

  
	
   

  	
   

  	
  Boston,
  MA 02111

  
	
   

  	
   

  	
  Facsimile:
  (617) 542-2241

  
	
   

  	
   

  	
  Attention: Kevin J. Walsh

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  And

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Oppenheimer Funds, Inc.

  
	
   

  	
   

  	
  350 Linden Oaks

  
	
   

  	
   

  	
  Rochester, NY 14625

  
	
   

  	
   

  	
  Attention:
  Angela Uttaro

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  And

  

 

3

 

	
   

  	
   

  	
  Merrill
  Lynch Investment Managers

  
	
   

  	
   

  	
  800
  Scudders Mill Road

  
	
   

  	
   

  	
  Section
  1B

  
	
   

  	
   

  	
  Plainsboro,
  NJ 08536

  
	
   

  	
   

  	
  Attention: Christopher Fornal

  
	
   

  	
   

  	
   

  
	
  If to MAIR:

  	
   

  	
  MAIR
  Holdings, Inc.

  
	
   

  	
   

  	
  150
  South 5th Street

  
	
   

  	
   

  	
  Suite
  1360

  
	
   

  	
   

  	
  Minneapolis,
  MN 55402

  
	
   

  	
   

  	
  Facsimile:
  (612) 333-0590

  
	
   

  	
   

  	
  Attention: General Counsel

  

 

or
to such other address as the person to whom notice is given may have previously
furnished to the others in writing in the manner set forth above.

 

9.             Assignability
and Binding Effect. MAIR’s obligations under this Agreement
shall not be assigned absent the Trustee’s express written consent, which
consent shall be given or refused in the Trustee’s sole discretion. This
Agreement shall inure to the benefit of and shall be binding upon the parties
hereto and their respective successors and assigns.

 

10.           Complete Understanding;
Amendment. This Agreement constitutes the complete understanding
between the parties with respect to the subject matter hereof and supersedes
all prior agreements, whether oral or written, by or among the parties hereto. This
Agreement shall not be altered, modified, amended or terminated except by
written instrument signed by each of the parties hereto.

 

11.           Governing Law; Jury Waiver.
THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF MASSACHUSETTS WITHOUT REGARD TO ITS CONFLICT OF LAWS
PRINCIPLES. THE PARTIES HEREBY IRREVOCABLY WAIVE ANY RIGHT TO A JURY TRIAL IN
ANY SUIT INVOLVING THE CONSTRUCTION OR ENFORCEMENT OF THIS AGREEMENT.

 

12.           Section Headings.
The Section headings contained in this Agreement are for reference purposes
only and shall not affect in any way the meaning or interpretation of this
Agreement.

 

13.           Severability. If
any provision of this Agreement or the application of any such provision to any
party or circumstances shall be determined by any court of competent
jurisdiction to be invalid and unenforceable to any extent, the remainder of
this Agreement or the application of such provision to such person or
circumstances other than those to which it is so determined to be invalid and
unenforceable, shall not be affected thereby, and each provision hereof shall
be validated and shall be enforced to the fullest extent permitted by law.

 

14.           Counterparts. This
Agreement may be executed in one or more counterparts, each of which shall be
deemed an original, but all of which together shall constitute one and the same
agreement.

 

15.           Representations.
MAIR represents that this Agreement has been duly authorized by MAIR and that
MAIR has full corporate power and authority to undertake the requirements of
this Agreement. The Trustee represents that this Agreement has been duly
authorized by the Trustee and that the Trustee has full corporate power and
authority to undertake the requirements of this Agreement.

 

4

 

16.           Time of the Essence.
The parties agree to strictly observe the time limits described in this
Agreement, and that time is of the essence of this Agreement.

 

17.           Mutual Negotiation.
Each party has been represented by counsel of its choice in negotiating
this Agreement. This Agreement shall therefore be deemed to have been
negotiated and prepared at the joint request, direction and construction of the
parties, at arm’s length, with the advice and participation of counsel, and
will be interpreted in accordance with its terms without favor to any party.

 

18.           Non-Waiver.
The parties acknowledge that notwithstanding any other provision of this
Agreement: the provisions of this Agreement reflect only the Trustee’s
agreement to forebear from exercising certain rights of the Trustee against
MAIR under the Guaranty; nothing in this Agreement shall be deemed to amend or
modify the Bond Documents, or the Guaranty; and nothing in this Agreement shall
restrict any rights of the Trustee under the Bond Documents, the Guaranty
and/or under applicable law against any other party. The parties further agree
that waiver by either party hereto of any breach hereunder by the other party
shall not operate as a waiver of any other breach, whether similar to or
different from the breach waived.

 

19.           Cumulative Remedies. All rights
and remedies of either party hereto are cumulative of each other and of every
other right or remedy such party may otherwise have at law or in equity, and
the exercise of one or more rights or remedies shall not prejudice or impair
the concurrent or subsequent exercise of other rights or remedies.

 

20.           Further Acts.
If at any time after this Agreement is signed any further action by any party
to this Agreement is reasonably necessary or desirable to carry out the
purposes of this Agreement, such party shall promptly take all such necessary
or desirable action or use such party’s best efforts to cause such action to be
taken.

 

IN WITNESS WHEREOF, the parties hereto set their hands as of the day and year first above
written.

 

 

	
  MAIR
  HOLDINGS, INC.

  	
  UMB BANK,
  N.A., AS TRUSTEE

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/
  Robert E. Weil

  	
   

  	
  By:

  	
  /s/
  Anthony P. Hawkins

  	
   

  
	
   

  	
  Name:
  Robert E. Weil

  	
   

  	
  Name:

  	
  Anthony
  P. Hawkins

  
	
   

  	
  Title:

  	
  Vice
  President, Finance and

  	
   

  	
  Title:

  	
  Vice
  president

  
	
   

  	
   

  	
  Chief
  Financial Officer

  	
   

  	
   

  
								

 

5

 

Schedule 4.0

 

	
  Date on Which MAIR May Reduce Dollar

  Amount of Letter of Credit (subject to

  compliance with other requirements of the

  Agreement)

  	
   

  	
  Dollar Amount by Which

  LOC May Be Reduced

  	
   

  	
  Mandatory Remaining Minimum

  Dollar Amount of LOC After Any

  Reduction Described in Column

  to Left is Taken

  	
   

  
	
  July 15, 2006

  	
   

  	
  $

  	
  235,000.00

  	
   

  	
  $

  	
  12,875,000.00

  	
   

  
	
  July 15, 2007

  	
   

  	
  $

  	
  250,000.00

  	
   

  	
  $

  	
  12,625,000.00

  	
   

  
	
  July 15, 2008

  	
   

  	
  $

  	
  265,000.00

  	
   

  	
  $

  	
  12,360,000.00

  	
   

  
	
  July 15, 2009

  	
   

  	
  $

  	
  285,000.00

  	
   

  	
  $

  	
  12,075,000.00

  	
   

  
	
  July 15, 2010

  	
   

  	
  $

  	
  305,000.00

  	
   

  	
  $

  	
  11,770,000.00

  	
   

  
	
  July 15, 2011

  	
   

  	
  $

  	
  325,000.00

  	
   

  	
  $

  	
  11,445,000.00

  	
   

  
	
  July 15, 2012

  	
   

  	
  $

  	
  345,000.00

  	
   

  	
  $

  	
  11,100,000.00

  	
   

  
	
  July 15, 2013

  	
   

  	
  $

  	
  370,000.00

  	
   

  	
  $

  	
  10,730,000.00

  	
   

  
	
  July 15, 2014

  	
   

  	
  $

  	
  395,000.00

  	
   

  	
  $

  	
  10,335,000.00

  	
   

  
	
  July 15, 2015

  	
   

  	
  $

  	
  420,000.00

  	
   

  	
  $

  	
  9,915,000.00

  	
   

  
	
  July 15, 2016

  	
   

  	
  $

  	
  445,000.00

  	
   

  	
  $

  	
  9,470,000.00

  	
   

  
	
  July 15, 2017

  	
   

  	
  $

  	
  475,000.00

  	
   

  	
  $

  	
  8,995,000.00

  	
   

  
	
  July 15, 2018

  	
   

  	
  $

  	
  510,000.00

  	
   

  	
  $

  	
  8,485,000.00

  	
   

  
	
  July 15, 2019

  	
   

  	
  $

  	
  540,000.00

  	
   

  	
  $

  	
  7,945,000.00

  	
   

  
	
  July 15, 2020

  	
   

  	
  $

  	
  575,000.00

  	
   

  	
  $

  	
  7,370,000.00

  	
   

  
	
  July 15, 2021

  	
   

  	
  $

  	
  615,000.00

  	
   

  	
  $

  	
  6,755,000.00

  	
   

  
	
  July 15, 2022

  	
   

  	
  $

  	
  655,000.00

  	
   

  	
  $

  	
  6,100,000.00

  	
   

  
	
  July 15, 2023

  	
   

  	
  $

  	
  700,000.00

  	
   

  	
  $

  	
  5,400,000.00

  	
   

  
	
  July 15, 2024

  	
   

  	
  $

  	
  745,000.00

  	
   

  	
  $

  	
  4,655,000.00

  	
   

  
	
  July 15, 2025

  	
   

  	
  $

  	
  795,000.00

  	
   

  	
  $

  	
  3,860,000.00

  	
   

  
	
  July 15, 2026

  	
   

  	
  $

  	
  850,000.00

  	
   

  	
  $

  	
  3,010,000.00

  	
   

  
	
  July 15, 2027

  	
   

  	
  $

  	
  910,000.00

  	
   

  	
  $

  	
  2,100,000.00

  	
   

  
	
  July 15, 2028

  	
   

  	
  $

  	
  970,000.00

  	
   

  	
  $

  	
  1,130,000.00

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00106-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00106-of-00352.parquet"}]]