Exhibit 10.1

FIRST AMENDMENT TO LOAN AGREEMENT

     This First Amendment to Loan Agreement (the “Amendment”) is dated as of
November 1, 2004, among Bank of America, N. A. (the “Bank”), Mercury Air Group,
Inc., a Delaware corporation (Borrower 1”); Maytag Aircraft Corporation, a
Colorado corporation (“Borrower 2”); Mercury Air Cargo, Inc., a California
corporation (“Borrower 3”); MercFuel, Inc., a Delaware corporation (“Borrower
4”); Hermes Aviation, Inc., a California corporation (“Borrower 5”), and Mercury
Air Center — Long Beach, Inc., a California corporation (Borrower 6”); (Borrower
1, Borrower 2, Borrower 3, Borrower 4, Borrower 5, and Borrower 6 are sometimes
referred to, collectively as the “Borrowers” and individually as the
“Borrower”).

RECITALS

     A. The Borrowers and the Bank are parties to that certain Loan Agreement
dated as of July 29, 2004 (the “Agreement”).

     B. The Borrowers and the Bank desire to amend certain terms and provisions
of the Agreement.

AGREEMENT

     1. Definitions. Capitalized terms used but not defined in this Amendment
shall have the meaning given to them in the Agreement.

     2. Amendments. The Agreement is hereby amended as follows:

                  2.1 The definitions of “Basic Fixed Charge Coverage Ratio”,
“Borrowing Base” and “Tangible Net Worth” set forth in Section 1 of the
Agreement are amended in their entirety to read as follows:

          “Basic Fixed Charge Coverage Ratio” means the ratio of (a) the sum of
EBITDA plus lease expense and rent expense, minus income tax, minus dividends
(excluding cash dividends paid during the twelve month period ending June 30,
2005 not exceeding $17,500,000), withdrawals, and other distributions, to
(b) the sum of interest expense (excluding capitalized debt costs classified as
interest expense and already paid), lease expense, rent expense, the current
portion of long term debt, excluding any amounts due under this Agreement, and
the current portion of capitalized lease obligations.

          “Borrowing Base” means 80% of the balance due on Domestic Acceptable
Receivables minus $2,000,000. After calculating the Borrowing Base, the Bank
may, upon notice to the Borrower, deduct such reserves as the Bank may establish
from time to time in its reasonable credit judgment, including, without
limitation, reserves for 100% of outstanding letters of credit, reserves for
dilution (any non-cash reduction of accounts receivable), and the amount of
estimated maximum exposure, as determined by the Bank from time to time, under
any interest rate contracts which the Borrower enters into with the Bank
(including interest rate swaps, caps, floors, options thereon, combinations
thereof, or similar contracts).

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          “Tangible Net Worth” means (a) total assets, less the amount of the
following to the extent included in total assets: (i) goodwill; (ii) patents;
(iii) trademarks; (iv) trade names; (v) deferred or capitalized organization
costs; (vi) capitalized or deferred research and development costs;
(vii) deferred marketing costs; (viii) amounts due from officers, directors,
employees, shareholders, and affiliates; plus (b) an amount that will be the
lesser of $800,000 or the total of any non-cash charge and asset impairment
associated with MercMed LLC; less (c) total liabilities, less the non-current
portion of Subordinated Liabilities to the extent included in total
liabilities.”

                  2.2 In Section 1 of the Agreement, clause (j) of definition of
“Acceptable Receivable” is amended to add subclause (iv) to read as follows:

"(iv) any person or entity with a billing address outside of the United States.”

                  2.3 The definitions of “Availability”, “Domestic Acceptable
Receivable”, “Foreign Acceptable Receivable” and “Liquidity” set forth in
Section 1 of the Agreement are deleted in their entirety.

                  2.4 In Section 9.3 of the Agreement, the figure “Nine Million
Five Hundred Thousand Dollars ($9,500,000) is substituted for the figure “Twenty
Four Million Dollars ($24,000,000).”

                  2.5 Section 9.4 of the Agreement is deleted in its entirety
and the following substituted therefor:

     “9.4 Intentionally Omitted”

                  2.6 Section 9.6 of the Agreement is amended in its entirety to
read as follows:

     “9.6 Capital Expenditures. Not to spend or incur obligations (including the
total amount of any capital leases) to acquire fixed assets for more than Two
Million Dollars ($2,000,000) in any fiscal year on a consolidated basis.
Compliance with this covenant will be determined annually, commencing with the
fiscal year ending June 30, 2005.”

                  2.7 Section 9.7 of the Agreement is deleted in its entirety
and the following substituted therefor:

     “9.7 Intentionally Omitted.”

                  2.8 Section 9.10 of the Agreement is amended in its entirety
to read as follows:

     “9.10 Cash Dividends and Stock Repurchases. Not to (a) declare or pay any
cash dividends, except for cash dividends in an amount not exceeding $17,500,000
to be paid by June 30, 2005, on any of the

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Borrowers’ issued and outstanding stock, (b) repurchase any of the Borrowers’
previously issued and outstanding stock for cash, or (c) create any sinking
fund(s) in relation to the transactions noted in (a) or (b) above.”

     3. Representations and Warranties. Each Borrower hereby represents and
warrants to Bank that: (i) no default specified in the Agreement and no event
which with notice or lapse of time or both would become such a default has
occurred and is continuing and has not been previously waived, (ii) except as
set forth on Schedule 1 attached hereto, the representations and warranties of
each Borrower pursuant to the Agreement and all schedules thereto are true on
and as of the date hereof as if made on and as of said date, (iii) the making
and performance by each Borrower of this Amendment have been duly authorized by
all necessary action, and (iv) no consent, approval, authorization, permit or
license is required in connection with the making or performance of the
Agreement as amended hereby.

     4. Conditions. This Amendment will be effective when the Bank receives the
following items, in form and content acceptable to the Bank.

                  4.1 This Amendment duly executed by all parties hereto.

                  4.2 Payment of an amendment fee in the amount of $30,000.

                  4.3 Payment of all out-of-pocket expenses, including
attorneys’ fees, incurred by the Bank in connection with the preparation of this
Amendment.

     5. Effect of Amendment. Except as provided in this Amendment, the Agreement
shall remain in full force and effect and shall be performed by the parties
hereto according to its terms and provisions.

[Signatures on Following Page]

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     This Amendment is executed as of the date stated at the top of the first
page.

             
Bank of America, N.A.
  Mercury Air Group, Inc.
 
           
By:
  /s/ Frances Martinez        

 

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Typed Name: Frances R. Martinez
  By:   /s/ Joseph Czyzyk
Title: Vice President
     

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      Typed Name: Joseph A. Czyzyk
 
      Title: Chief Executive Officer
 
           
 
      Mercury Air Cargo, Inc.
 
           

      By:   /s/ Joseph Czyzyk

         

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      Typed Name: Joseph A. Czyzyk
 
      Title: Chief Executive Officer
 
           

      MercFuel, Inc.
 
           

      By:   /s/ Joseph Czyzyk

         

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      Typed Name: Joseph A. Czyzyk
 
      Title: Chief Executive Officer
 
           
 
      Maytag Aircraft Corporation
 
           

      By:   /s/ Joseph Czyzyk

         

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      Typed Name: Joseph A. Czyzyk
 
      Title: Chief Executive Officer
 
           
 
      Hermes Aviation, Inc.
 
           

      By:   /s/ Joseph Czyzyk

         

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      Typed Name: Joseph A. Czyzyk
 
      Title: Chief Executive Officer
 
           
 
      Mercury Air Center-Long Beach, Inc.
 
           

      By:   /s/ Joseph Czyzyk

         

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      Typed Name: Joseph A. Czyzyk
 
      Title: Chief Executive Officer

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