Document:

Exhibit 10.14

MAIR HOLDINGS, INC.

AMENDMENT NO. 1 TO MANAGEMENT COMPENSATION AGREEMENT

WITH PAUL F. FOLEY

This Amendment No. 1 to the Management Compensation
Agreement (“Amendment No. 1”) is entered into this 11th day of July, 2007, by
and between MAIR Holdings, Inc. (the “Company”) and Paul F. Foley (the “Executive”)
for the purpose of providing an incentive to Executive to continue his
employment and to continue providing services to the Company.

WHEREAS, the Company’s former
subsidiary, Mesaba Aviation, Inc., 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 one or more disbursements from this Mesaba liquidating
trust (the “Disbursement” or “Disbursements”) sometime in the near future, and

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

WHEREAS,  the Company has approved a Retention Bonus
arrangement for its Officers to be paid out of 
Disbursements, and

WHEREAS, the Company has
approved a Severance Compensation Plan for certain of its Executives, including
the Executive, and

WHEREAS, the Company would like
to provide uniform benefits under the Compensation Plan for all eligible
executives, and

WHEREAS, effective October 1,
2004, the Company and Executive entered into a Management Compensation
Agreement (the “Agreement”) which limits payments to Executive in the event of
his employment termination or a change-in-control to those provided under the
Agreement, and as such precludes any additional payments to Executive under
both the Retention Bonus arrangement and the Severance Compensation Plan, and

WHEREAS, the Agreement may be
amended by mutual consent pursuant to its Section 10.06.

NOW, THEREFORE, the Company and
Executive make the following Amendment No. 1 to the Management Compensation Agreement,
in order to modify it in the following respects:

1.                                       The
Company will establish a retention bonus program for Executive pursuant to the
terms and conditions of a separate agreement, the Retention Bonus Agreement
between the Company and the Executive.

2.                                       A
new Section 4.09 shall be added to read as follows:

Section 409A Exception.
Severance compensation shall be paid under the terms of Paragraph 4,  unless it exceeds the limits of (a), below,
in which case, the excess amount of severance compensation payments shall be
paid-out as provided in (b), and ( c), as applicable.

a.                                       Severance
payments must not total more than two times the lesser of:

i.                                          the
Executive’s annualized compensation, including base pay and bonus, and based on
Executive’s annual rate of pay for his taxable year preceding the year of his
employment termination, or

ii.                                       the
annual maximum amount that may be taken into account under a qualified plan
pursuant to Code Section 401(a)(17) for the year of the Executive’s employment
termination.

b.                                      The
portion of severance payments described in (a) shall be paid to Executive in
equal amounts over the 52 week severance period.

c.                                       All
payments in excess of the limitations of (a) shall be treated as subject to the
short-term deferral rule of Code Section 409A, and shall be paid in full within
two-and-one-half months after the end of the taxable year of the Executive or
the Company, whichever is later, in which the Executive’s termination occurred.

3.                                       Section
5.03 “No Other Payments” shall be deleted in its entirety and replaced
with the following language:

5.03         Benefit Offset.  Should Executive receive severance benefits
under another Company plan or arrangement by reason of the involuntary
termination of his employment without cause, either during or after the
expiration of the Agreement, payments and benefits received under such other
arrangement shall be applied as an offset against payments and benefits he is
entitled to receive under the Agreement. 
Should the Agreement provide for more generous payments or benefits, the
Executive shall be paid the excess of such payment levels pursuant to the
Agreement, after an offset for payments and benefits under any other applicable
Company plan or arrangement has been applied. 
The parties intend that Executive receive those payments to which he is
entitled under this Agreement, but not duplicate benefits which are provided
under the Agreement and under another Company plan or arrangement.

4.                                       Section
6.04 “No Other Payments” shall be deleted in its entirety and replaced
with the following language:

6.04         Benefit Offset.   Should Executive receive severance benefits
under another Company plan or arrangement by reason of the involuntary 

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termination of his
employment due to job elimination or change-in-control, and without cause,
payment and benefits received under such other arrangement or plan shall be
applied as an offset against payments and benefits he is entitled to receive
under the Agreement.  Should the
Agreement provide for more generous payments or benefits, the Executive shall
be paid the excess of such payment levels pursuant to the Agreement, after an
offset for payments and benefits under any other applicable Company plan or
arrangement has been applied.  The
parties intend that Executive receive those payments to which he is entitled
under this Agreement, but not duplicate benefits which are provided under the
Agreement and under another Company plan or arrangement.

5.                                       But
for these changes, the Agreement shall remain in full force and effect.

6.                                       This
Amendment No. 1 shall be effective as of the date executed by both parties.

	
   

  	
  /s/ Paul F. Foley

  	
   

  
	
   

  	
  Paul F.
  Foley, Executive

  
	
   

  	
   

  
	
   

  	
  Date: July
  11, 2007

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MAIR
  Holdings, Inc

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Raymond W.
  Zehr, Jr.

  	
   

  
	
   

  	
  Chair,
  Compensation Committee of

  
	
   

  	
  the
  Board of Directors

  
	
   

  	
   

  
	
   

  	
  Date: July
  11, 2007

  
				

 

 3Exhibit 10.15

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 Paul F. Foley (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 Two and one-half
percent of the first $10,000,000 of the Equity Disbursement, or $250,000.

c.                                       The
Company will pay Executive Two 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 and one-half 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 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-half 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 

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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 the Management Compensation
Agreement dated Oct. 1, 2004 between Executive and the Company or fails to
perform Executive’s duties and responsibilities consistent with the lawful
directions of the Board; provided, however, that the Company shall first have
given Executive written notice of his breach of the terms of the Management
Compensation Agreement 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/ Paul F.
  Foley

  	
   

  
	
   

  	
  Paul F. Foley,
  Executive

  

 

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