Document:

Exhibit 10.16

MAIR Holdings, Inc.

Executive Retention Bonus Agreement

This Agreement is entered
into this 11th day of July, 2007, by and between MAIR Holdings, Inc. (the “Company”)
and Robert E. Weil (the “Executive”) for the purpose of providing an incentive
to Executive to continue his employment and his valued services to the Company.

WHEREAS,
the Company’s former subsidiary, Mesaba Aviation, Inc., dba Mesaba Airlines,
recently received confirmation of a Chapter 11 plan for reorganization which
established a liquidating trust for purposes of distributions thereunder, and

WHEREAS,
the Company anticipates that it will receive on a periodic basis disbursements
from this Mesaba liquidating trust based on its equity interest in Mesaba after
the payment of all Mesaba creditor claims (the “ Equity Disbursement” or “Equity
Disbursements”), and

WHEREAS,
the Company wants to encourage Executive to continue in employment until all of
the Equity Disbursements are received, and to take all actions possible to
facilitate and to maximize the Equity Disbursements, and

NOW,
THEREFORE, the Company and Executive make the following
agreement:

1.                                       The
Company shall pay a bonus (the “Retention Bonus”) to Executive if Executive
remains in active employment with the Company through the date the Company
receives Equity Disbursements from the Mesaba liquidating trust which exceed
the threshold amount described below, qualifying him for a payment.

2.                                       Alternatively,
Executive shall qualify for a Retention Bonus even if no longer employed by the
Company in the event that Executive’s employment is involuntarily terminated
without Cause after the Company experiences a “Change-in-Control” as defined in
the Company’s Severance Compensation Plan.

3.                                       Executive’s
Retention Bonus shall be paid in cash in one or more payments within forty-five
days of any Equity Disbursement to the Company from the Mesaba liquidating
trust which exceeds the threshold payment amount as determined by the
Compensation Committee and triggers a Retention Bonus as provided in Section 5.

4.                                       The
Company shall withhold federal and state income, FICA and Medicare taxes from
each Retention Bonus payment as required by law.

5.                                       The
amount allocated Executive shall be determined by applying certain percentages
to the aggregate amount of the Equity Disbursements, under the following
formula:

a.                                       No
Retention Bonus will be paid until the aggregate Equity Disbursements by the
Mesaba liquidating trust reach the threshold amount of $10,000,000.

b.                                      Once
that threshold is achieved, the Company will pay Executive One and two-third
percent of the first $10,000,000 of the Equity Disbursement, or $166,666.

c.                                       The
Company will pay Executive One and one-third percent of any Equity Disbursement
which, when aggregated with previous Equity Disbursements, totals from
$10,000,001 up to $15,000,000.

d.                                      The
Company will pay Executive One percent of any Equity Disbursement which, when
aggregated with previous Equity Disbursements, totals from $15,000,001 up to
$20,000,000.

e.                                       The
Company will pay Executive two-third of a percent of any Equity Disbursement
which, when aggregated with previous Equity Disbursements, totals from
$20,000,001 up to $25,000,000.

f.                                         The
Company will pay Executive one-third of a percent of any Equity Disbursement
which, when aggregated with previous Equity Disbursements, totals $25,000,001
or more.

6.                                       The
Retention Bonus shall be calculated by applying the formula set forth in
paragraph 5 to the Equity Disbursements. 
For clarification, the Equity Disbursements exclude payments for (a)
MAIR’s unsecured claim of approximately $6.2 million to resolve (i) unpaid fees
under the management services agreement and tax allocation agreement between
MAIR and Mesaba and (ii) the Cincinnati hangar arrangement, and (b) the
unsecured claim of Northwest which was assigned to MAIR of $7.3 million for
pre-petition amounts that Mesaba owed Northwest at the time of Mesaba’s
bankruptcy.

7.                                       Executive’s
payment of any portion of this Retention Bonus is conditional upon his meeting
all of the requirements or conditions set forth above.

8.                                       For
purposes of this Agreement, Cause shall be defined as any of the following
events:

a.                                       Executive
embezzles funds or otherwise misappropriates the assets of the Company, is
convicted in a court of law of or pleads guilty or no contest to a felony or
any criminal activity involving dishonesty, fraud, breach of trust or involving
money or property

 2
 

of the Company, or
engages in any public conduct that has a material detrimental effect on the
Company; or

b.                                      Executive
materially breaches any of the provisions of any employment agreement between Executive
and the Company, engages in willful misconduct or fails to perform or performs
with gross negligence his duties and responsibilities consistent with the
lawful directions of the Board and the Chief Executive Office; provided,
however, that the Company shall first have given Executive written notice of
his breach of the terms of such agreement, of his misconduct or failure to
perform and Executive shall have failed to remedy such violation within 30
calendar days of the receipt of such notice.

9.                                       The
Compensation Committee of the Company’s Board of Directors shall administer
this Agreement and has full and sole authority and discretion to interpret
it.  The Compensation Committee shall
determine whether a Change-in-Control has occurred, and also shall interpret
and apply the definition of Cause in determining whether an employment
termination is for Cause.

This
Agreement shall be effective as of July 11, 2007.

	
   

  	
  MAIR Holdings, Inc.

  
	
   

  	
   

  
	
   

  	
  /s/ Raymond W.
  Zehr, Jr.

  
	
   

  	
  By Chair,
  Compensation Committee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Robert E.
  Weil

  
	
   

  	
  Robert E. Weil,
  Executive

  

 

 3Exhibit 10.17

MAIR
Holdings, Inc.

Executive Retention Bonus Agreement

This Agreement is entered
into this 11th day of July, 2007, by and between MAIR
Holdings, Inc. (the “Company”) and Ruth M. Timm (the “Executive”) for the
purpose of providing an incentive to Executive to continue her employment and
her valued services to the Company.

WHEREAS,
the Company’s former subsidiary, Mesaba Aviation, Inc., dba Mesaba Airlines,
recently received confirmation of a Chapter 11 plan for reorganization which
established a liquidating trust for purposes of distributions thereunder, and

WHEREAS,
the Company anticipates that it will receive on a periodic basis disbursements
from this Mesaba liquidating trust based on its equity interest in Mesaba after
the payment of all Mesaba creditor claims (the “ Equity Disbursement” or “Equity
Disbursements”), and

WHEREAS,
the Company wants to encourage Executive to continue in employment until all of
the Equity Disbursements are received, and to take all actions possible to
facilitate and to maximize the Equity Disbursements, and

NOW,
THEREFORE, the Company and Executive make the following
agreement:

1.                                       The
Company shall pay a bonus (the “Retention Bonus”) to Executive if Executive
remains in active employment with the Company through the date the Company
receives Equity Disbursements from the Mesaba liquidating trust which exceed
the threshold amount described below, qualifying her for a payment.

2.                                       Alternatively,
Executive shall qualify for a Retention Bonus even if no longer employed by the
Company in the event that Executive’s employment is involuntarily terminated
without Cause after the Company experiences a “Change-in-Control” as defined in
the Company’s Severance Compensation Plan.

3.                                       Executive’s
Retention Bonus shall be paid in cash in one or more payments within forty-five
days of any Equity Disbursement to the Company from the Mesaba liquidating
trust which exceeds the threshold payment amount as determined by the
Compensation Committee and triggers a Retention Bonus as provided in Section 5.

4.                                       The
Company shall withhold federal and state income, FICA and Medicare taxes from
each Retention Bonus payment as required by law.

5.                                       The
amount allocated Executive shall be determined by applying certain percentages
to the aggregate amount of the Equity Disbursements, under the following
formula:

a.                                       No
Retention Bonus will be paid until the aggregate Equity Disbursements by the
Mesaba liquidating trust reach the threshold amount of $10,000,000.

b.                                      Once
that threshold is achieved, the Company will pay Executive five-sixth of a
percent of the first $10,000,000 of the Equity Disbursement, or $83,333.

c.                                       The
Company will pay Executive two-third of a percent of any Equity Disbursement
which, when aggregated with previous Equity Disbursements, totals from
$10,000,001 up to $15,000,000.

d.                                      The
Company will pay Executive one-half of a percent of any Equity Disbursement
which, when aggregated with previous Equity Disbursements, totals from
$15,000,001 up to $20,000,000.

e.                                       The
Company will pay Executive one-third of a percent of any Equity Disbursement
which, when aggregated with previous Equity Disbursements, totals from
$20,000,001 up to $25,000,000.

f.                                         The
Company will pay Executive one-sixth of a percent of any Equity Disbursement
which, when aggregated with previous Equity Disbursements, totals $25,000,001
or more.

6.                                       The
Retention Bonus shall be calculated by applying the formula set forth in
paragraph 5 to the Equity Disbursements. 
For clarification, the Equity Disbursements exclude payments for (a)
MAIR’s unsecured claim of approximately $6.2 million to resolve (i) unpaid fees
under the management services agreement and tax allocation agreement between
MAIR and Mesaba and (ii) the Cincinnati hangar arrangement, and (b) the
unsecured claim of Northwest which was assigned to MAIR of $7.3 million for
pre-petition amounts that Mesaba owed Northwest at the time of Mesaba’s
bankruptcy.

7.                                       Executive’s
payment of any portion of this Retention Bonus is conditional upon her meeting
all of the requirements or conditions set forth above.

8.                                       For
purposes of this Agreement, Cause shall be defined as any of the following
events:

a.                                       Executive
embezzles funds or otherwise misappropriates the assets of the Company, is
convicted in a court of law of or pleads guilty or no contest to a felony or
any criminal activity involving dishonesty, fraud, breach of trust or involving
money or property

 2
 

of the Company, or
engages in any public conduct that has a material detrimental effect on the
Company; or

b.                                      Executive
materially breaches any of the provisions of any employment agreement between
Executive and the Company, engages in willful misconduct or fails to perform or
performs with gross negligence her duties and responsibilities consistent with
the lawful directions of the Board and the Chief Executive Office; provided,
however, that the Company shall first have given Executive written notice of
her breach of the terms of such agreement, of her misconduct or failure to
perform and Executive shall have failed to remedy such violation within 30
calendar days of the receipt of such notice.

9.                                       The
Compensation Committee of the Company’s Board of Directors shall administer
this Agreement and has full and sole authority and discretion to interpret
it.  The Compensation Committee shall
determine whether a Change-in-Control has occurred, and also shall interpret
and apply the definition of Cause in determining whether an employment
termination is for Cause.

This
Agreement shall be effective as of July 11, 2007.

	
   

  	
  MAIR Holdings, Inc.

  
	
   

  	
   

  
	
   

  	
  /s/ Raymond W.
  Zehr, Jr.

  
	
   

  	
  By Chair,
  Compensation Committee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Ruth M. Timm

  
	
   

  	
  Ruth M. Timm,
  Executive

  

 

 3

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